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Regional Management Corp. (RM - Snapshot Report) announced fourth-quarter 2012 operating earnings of 52 cents, missing the Zacks Consensus Estimate by a penny. Earnings per share also lagged the year-ago quarter’s earnings of 66 cents.

Net income amounted to $6.6 million, up 3.7% over $6.4 million earned in the prior-year quarter.

Total revenue amounted to $37 million, up 25.7% over $29.4 million generated in the fourth quarter of 2011. Same store revenues increased 17% during the reported quarter.

Total expenses were $26.8 million, increasing from $19.4 million in the year-ago quarter. General and administrative expenses amounted to $14.9 million, surging 49.6% over $10 million incurred in the year-ago quarter.

Regional Management opened 8 branches during the reported quarter, taking the total number of branches at the end of 2012 to 221. Further, the company entered Ga. with the opening of a branch in Jan 2013.

Full Year Highlights

For 2012, Regional Management’s operating earnings amounted to $27 million or $2.12 per share. Earnings per share lagged the Zacks Consensus estimate of $2.25. However, operating earnings increased 27.2% over 2011.

Operating income excludes the impact of the initial public offer related expenses and debt repayment. Including these one-time items, net income for 2012 came in at $25.4 million or $2.12 per share. Net income increased 19.4% over $21.2 million earned in 2011.

Total revenue in 2012 came in at $136 million, up 29.3% over $105.2 million earned in 2011. Total expenses amounted to $96.1 million, increasing from $71.8 million in 2011.

Balance Sheet and Capital Structure

Regional Management exited 2012 with a cash balance of $3.3 million, declining from $4.8 million as of Dec 31, 2011. The company had total assets of $431.2 million and shareholders’ equity of $130.6 million as of Dec 31, 2012

Finance receivables at the end of 2012 amounted to $437.6 million, up 42.7% from Dec 31, 2011. Regional Management had $292.4 million debt outstanding under its $325 million senior revolving credit facility and $1.5 million other notes payable line of credit as of Dec 31, 2012.

Results at Other Consumer Loan Companies

Discover Financial Services (DFS - Analyst Report) reported fourth-quarter 2012 earnings per share of $1.07, lagging the Zacks Consensus Estimate of $1.13. However, earnings per share surpassed the year-ago quarter’s earnings of 95 cents.

Encore Capital Group Inc. (ECPG - Snapshot Report) delivered operating earnings of 80 cents per share in the fourth quarter of 2012, surpassing the Zacks Consensus Estimate by a penny. Results were 19% ahead of 67 cents earned in the year-ago quarter.

SLM Corporation (SLM - Analyst Report) reported its fourth-quarter earnings of 55 cents per share, beating the Zacks Consensus Estimate by 2 cents and the year-ago earnings by 4 cents.

Zacks Rank

Regional Management carries a Zacks Rank #4 (Sell).

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