Regional Management Corp. Announces Stock Repurchase Program and Growth Outlook
Regional Management Corp. (NYSE: RM) has announced a $30 million stock repurchase program through December 2026 and outlined its growth outlook for 2025. The company expects 10-12% growth in ending net receivables for 2025, up from approximately 6% in 2024. Since 2020, RM has expanded into eight new states, increasing its addressable market by over 80%. The company plans to open 10 new branches in Q4 2024/Q1 2025, with up to 10 additional branches in H2 2025. Growth strategy focuses on auto-secured and higher-margin small loan portfolios, leveraging improved consumer health and stronger macroeconomic conditions.
Regional Management Corp. (NYSE: RM) ha annunciato un programma di riacquisto di azioni da $30 milioni da qui a dicembre 2026 e ha delineato le sue previsioni di crescita per il 2025. L'azienda prevede una crescita del 10-12% nei crediti netti finali per il 2025, in aumento rispetto a circa il 6% nel 2024. Dal 2020, RM ha ampliato la sua operatività in otto nuovi stati, aumentando così il suo mercato indirizzabile di oltre l'80%. L'azienda prevede di aprire 10 nuove filiali nel quarto trimestre del 2024/primo trimestre del 2025, con ulteriori 10 filiali programmate per il secondo semestre del 2025. La strategia di crescita si concentra su portafogli di prestiti a piccole somme, garantiti da auto e a margine più elevato, sfruttando il miglioramento della salute dei consumatori e condizioni macroeconomiche più solide.
Regional Management Corp. (NYSE: RM) ha anunciado un programa de recompra de acciones de $30 millones hasta diciembre de 2026 y ha esbozado su perspectiva de crecimiento para 2025. La compañía espera un crecimiento del 10-12% en cuentas por cobrar netas finales para 2025, en comparación con aproximadamente el 6% en 2024. Desde 2020, RM se ha expandido a ocho nuevos estados, aumentando su mercado direccionable en más del 80%. La compañía planea abrir 10 nuevas sucursales en el cuarto trimestre de 2024/primer trimestre de 2025, con hasta 10 sucursales adicionales en el segundo semestre de 2025. La estrategia de crecimiento se centra en carteras de préstamos pequeños respaldados por automóviles y de mayor margen, aprovechando la mejora en la salud del consumidor y las condiciones macroeconómicas más fuertes.
Regional Management Corp. (NYSE: RM)은 2026년 12월까지 3천만 달러 규모의 자사주 매입 프로그램을 발표하고 2025년 성장 전망을 제시했습니다. 회사는 2025년에 대해 최종 순채권에서 10-12%의 성장을 예상하고 있으며, 이는 2024년의 약 6%에서 증가한 수치입니다. RM은 2020년 이후 8개의 새로운 주로 사업을 확장하여 주소able 시장을 80% 이상 증가시켰습니다. 회사는 2024년 4분기/2025년 1분기에 10개의 새로운 지점을 개설할 계획이며, 2025년 하반기에는 최대 10개의 추가 지점을 열 예정입니다. 성장 전략은 자동차 담보 및 마진이 더 높은 소액 대출 포트폴리오에 중점을 두며, 개선된 소비자 건강과 강한 거시 경제 상황을 활용하고 있습니다.
Regional Management Corp. (NYSE: RM) a annoncé un programme de rachat d'actions de 30 millions de dollars jusqu'en décembre 2026 et a exposé ses perspectives de croissance pour 2025. La société s'attend à une croissance de 10-12% des créances nettes finales pour 2025, contre environ 6% en 2024. Depuis 2020, RM s'est étendue à huit nouveaux États, augmentant ainsi son marché adressable de plus de 80%. La société prévoit d'ouvrir 10 nouvelles succursales au quatrième trimestre 2024/premier trimestre 2025, avec jusqu'à 10 succursales supplémentaires dans la seconde moitié de 2025. La stratégie de croissance se concentre sur des portefeuilles de petits prêts sécurisés par des automobiles et à plus forte marge, tirant parti de l'amélioration de la santé des consommateurs et de conditions macroéconomiques renforcées.
Regional Management Corp. (NYSE: RM) hat ein Aktienrückkaufprogramm über 30 Millionen Dollar bis Dezember 2026 angekündigt und seinen Wachstumsausblick für 2025 umrissen. Das Unternehmen erwartet ein Wachstum von 10-12% bei den endlichen Nettoschulden für 2025, was im Vergleich zu etwa 6% im Jahr 2024 einen Anstieg darstellt. Seit 2020 hat RM in acht neue Bundesstaaten expandiert und sein adressierbares Marktvolumen um über 80% erhöht. Das Unternehmen plant, im 4. Quartal 2024/1. Quartal 2025 10 neue Filialen zu eröffnen, mit bis zu 10 weiteren Filialen im 2. Halbjahr 2025. Die Wachstumsstrategie konzentriert sich auf auto-sichere und margenstärkere Kleinkreditportfolios und nutzt die verbesserte Gesundheit der Verbraucher sowie stärkere makroökonomische Bedingungen.
- Authorization of $30 million stock repurchase program through 2026
- Projected increase in net receivables growth from 6% in 2024 to 10-12% in 2025
- 80% expansion in addressable market since 2020
- Planned opening of up to 20 new branches through 2025
- Seasonally low loan demand expected in Q1 2025 during tax season
Insights
This
The geographic expansion strategy has increased Regional Management's addressable market by
“Having executed well throughout the economic cycle, we carry strong momentum and a healthy balance sheet into the new year, with significant funding for continued execution on our long-term growth strategy and the return of excess capital to shareholders,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “To that end and based on our consistently strong performance, liquidity profile, capital position, and confidence in our future, we are pleased to announce the authorization by our Board of Directors of a
“In addition, we will allocate capital in 2025 to accelerate our portfolio growth,” added Mr. Beck. “We expect our ending net receivables to grow by
“We have expanded to eight new states since 2020, increasing our addressable market by more than
Stock Repurchase Program
The company’s Board of Directors has authorized a stock repurchase program allowing for the repurchase of up to
Share repurchases under the stock repurchase program may be made in the open market at prevailing market prices, through privately negotiated transactions, or through other structures in accordance with applicable federal securities laws, at times and in amounts as management deems appropriate. The timing and the amount of any common stock repurchases will be determined by the company’s management based on its evaluation of market conditions, the company’s liquidity needs, legal and contractual requirements and restrictions (including covenants in the company’s credit agreements), share price, and other factors. Repurchases of common stock may be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program does not obligate the company to purchase any particular number of shares and may be suspended, modified, or discontinued at any time without prior notice.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 19 states across
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, and opening new branches as planned; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.
The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241202079225/en/
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Source: Regional Management Corp.
FAQ
What is the size and duration of Regional Management's new stock repurchase program?
What is Regional Management's expected net receivables growth for 2025?
How many new branches does Regional Management plan to open in 2024-2025?
How much has Regional Management expanded its addressable market since 2020?
