In line with its business expansion strategy, Regional Management Corp. (RM) inaugurated its first full-service locations in Georgia. Regional Management Corp. will conduct its operations in the Georgian cities of Savannah and Brunswick.
The new units represent the 224th and 225th locations of the company. The units will provide all the services provided by Regional Management Corp., which includes small and large installment loans, automobile purchase loans, and furniture and appliance loans. Regional Management Corp had previously forayed into the Georgian market in Jan 2013, with a new AutoCredit Source (:ACS) branch in Atlanta.
The new units in Georgia are in sync with the company’s strategy to open new facilities and acquire small-to-mid-sized operations. Towards this end, Regional Management Corp. launched an AutoCredit Source store in Austin, Texas in Jan 2013.
Through its extensive business expansion the company had enhanced revenues. In 2012, revenues improved 29.3% year over year from the year-ago numbers. We expect the new facilities to bolster revenues further. The Zacks Consensus Estimate for the first quarter of 2013 is pegged at $38 million.
Other operators in this area are also not sitting idle. They are also expanding their operations. Towards business expansion, Discover Financial Services (DFS) also announced a long-term agreement with Nigeria-based Interswitch Limited in Mar 2013. The deal allows Discover and Diners Club International (:DCI) cards to be accepted at all ATMs and point-of-sale (:POS) terminals at the Interswitch network in Nigeria.
One of its peers, Security National Financial (SNFCA) closed a coinsurance transaction in Dec 2012, with Mothe Life Insurance located in Gretna, Louisiana and DLE Life Insurance Company, located in Bogalusa, Louisiana. The deal will allow Security National to expand its operations in Louisiana and the Southeast.
Regional Management Corp. currently carries a Zacks Rank #4 (Sell). Other stocks like Encore Capital Group Inc. (ECPG) and Discover carry a Zacks Rank #2 (Buy) and are worth noting.