Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced a $30 million stock repurchase
program and growth expectations for 2025.
“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 $30 million stock repurchase program. The
program will enable us to be opportunistic in repurchasing our
common stock at a time when we believe it to be undervalued.”
“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 10% to 12% in 2025, up from a roughly 6%
growth rate in 2024. We are increasing our pace of growth due to
our confidence in our credit performance, improving consumer
health, and strengthening macroeconomic conditions, including lower
inflation, real wage growth, low unemployment, and a large number
of open jobs, particularly for our customer set. Our portfolio
growth will ramp up over the course of next year, following
seasonally low loan demand during the first quarter tax
season.”
“We have expanded to eight new states since 2020, increasing our
addressable market by more than 80% over that time period, and we
expect to continue our new state entry in the future,” continued
Mr. Beck. “Our 2025 portfolio growth will be driven in part by our
continued focus on our auto-secured and higher-margin small loan
portfolios. We also will continue to grow our presence in new
branches opened over the past several quarters, open a total of 10
new branches in the fourth quarter of 2024 and first quarter of
2025, and add up to another 10 new branches in the second half of
2025. Through these branch expansion investments, we are moving
aggressively to capture market share in our newer geographies,
which will provide a meaningful contribution to portfolio and
revenue growth in 2025 and beyond.”
Stock Repurchase Program
The company’s Board of Directors has authorized a stock
repurchase program allowing for the repurchase of up to $30 million
of its outstanding common stock. The authorization is effective
immediately and will continue through December 31, 2026.
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 the United States. Most of its loan products are
secured, and each is structured on a fixed-rate, fixed-term basis
with fully amortizing equal monthly installment payments, repayable
at any time without penalty. Regional Management sources loans
through its multiple channel platform, which includes branches,
centrally managed direct mail campaigns, digital partners, and its
consumer website. For more information, please visit
www.RegionalManagement.com.
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
Regional Management (NYSE:RM)
過去 株価チャート
から 11 2024 まで 12 2024
Regional Management (NYSE:RM)
過去 株価チャート
から 12 2023 まで 12 2024
