Advanta Has Outstanding First Quarter.SPRING HOUSE, Pa. -- Advanta Advanta is an American banking company. Currently, it controls two banks, Advanta Bank Corp and Advanta National Bank. The banking corporation is not associated with Advanta Energy Corp., an energy consulting practice based in California. Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ) today reported first quarter 2006 consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income of $21.9 million or $0.73 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for Class A and Class B shares combined. Advanta Business Cards earned net income of $21.7 million as compared to $11.2 million for first quarter 2005. Advanta Business Cards ended the quarter with managed receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed at $4.0 billion, growing 20% over the $3.3 billion reported at March 31, 2005. Owned Business Card receivables were $982 million at March 31, 2006, growing 25% over the $784 million reported at March 31, 2005. Transaction volume for the quarter of $2.7 billion exceeded volume for first quarter 2005 by 26%. "We anticipated an outstanding first quarter when we shared our expectations for the full year 2006 last November November: see month. ," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the Alter, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We had high earnings, low losses and delinquencies, and strong growth in new customers and transaction volume. This is a good start to what we believe will be a very good year." Conference Call Details Advanta management will hold a conference call with analysts and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. today, April 26, at 9:00 a.m. Eastern time. The call can be accessed by dialing 719-457-2659 and referring to pass code 8045208. The call will also be webcast simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics via a Vcall link on the Company's website, www.advanta.com, or at www.vcall.com. Those interested in listening to the webcast should go to the website at least fifteen minutes before the call to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary software. Replays of the call will be available beginning at noon today on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.advanta.com or www.vcall.com or by dialing 719-457-0820 and referring to confirmation code 8045208. The conference call may include a discussion of non-GAAP financial measures, which are reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measure in the press releases or the statistical supplements available at www.advanta.com in the "Corporate Info INFO Information INFO Information (logging abbreviation) INFO Inform(ed/ation) INFO Ionic Difluoroamino Oxidizer " section. Advanta focuses on the small business market and related community, providing funding and support to the nation's small businesses and business professionals through innovative products and services. Using its direct marketing and information-based expertise, Advanta identifies potential customers and provides a high level of service tailored to the needs of small businesses. Advanta is one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and business credit cards to small businesses. Since 1951, Advanta has pioneered many of the marketing techniques common in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry today, including remote lending, and direct mail, affinity The relationship that a person has to the blood relatives of a spouse by virtue of the marriage. The doctrine of affinity developed from a Maxim of Canon Law that a Husband and Wife were made one by their marriage. There are three types of affinity. and relationship marketing. Learn more about Advanta at www.advanta.com. This Press Release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . In addition to the GAAP results provided throughout this document, the Company has provided managed receivable data and other non-GAAP financial measurements. Management believes that the non-GAAP financial measures used to manage the business may provide users additional useful information. The tables attached to this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure and a description of why the non-GAAP financial measures are useful to investors.
ADVANTA
SEGMENT INCOME STATEMENT
(in thousands)
Three Months Ended
March 31, 2006
----------------------------------------------------------------------
Advanta
Business
Cards Other (A) Total
--------- --------- ---------
Interest income $ 32,810 $ 5,458 $ 38,268
Interest expense 10,024 5,931 15,955
--------- --------- ---------
Net interest income 22,786 (473) 22,313
Provision for credit losses 9,334 (50) 9,284
--------- --------- ---------
Net interest income after provision
for credit losses 13,452 (423) 13,029
Noninterest revenues:
Interchange income 44,393 0 44,393
Securitization income 33,578 0 33,578
Servicing revenues 13,682 0 13,682
Business credit card rewards (14,117) 0 (14,117)
Other revenues, net 3,802 898 4,700
--------- --------- ---------
Total noninterest revenues 81,338 898 82,236
Operating expenses 59,497 142 59,639
--------- --------- ---------
Income before income taxes 35,293 333 35,626
Income tax expense 13,588 128 13,716
--------- --------- ---------
Net income $ 21,705 $ 205 $ 21,910
========= ========= =========
Three Months Ended
March 31, 2005
----------------------------------------------------------------------
Advanta
Business
Cards Other (A) Total
--------- --------- ---------
Interest income $ 28,866 $ 3,313 $ 32,179
Interest expense 8,521 4,064 12,585
--------- --------- ---------
Net interest income 20,345 (751) 19,594
Provision for credit losses 10,419 25 10,444
--------- --------- ---------
Net interest income after provision
for credit losses 9,926 (776) 9,150
Noninterest revenues:
Interchange income 35,696 0 35,696
Securitization income 30,396 0 30,396
Servicing revenues 12,599 0 12,599
Business credit card rewards (10,795) 0 (10,795)
Gain on transfer of consumer credit
card business 0 67,679 67,679
Other revenues, net 2,969 (57) 2,912
--------- --------- ---------
Total noninterest revenues 70,865 67,622 138,487
Operating expenses 62,374 246 62,620
--------- --------- ---------
Income before income taxes 18,417 66,600 85,017
Income tax expense 7,183 5,164 12,347
--------- --------- ---------
Net income $ 11,234 $ 61,436 $ 72,670
========= ========= =========
(A) Other includes venture capital operations as well as investment
and other activities not attributable to segments.
ADVANTA
HIGHLIGHTS
(in thousands, except per share data)
Percent Change
Three Months Ended From
----------------------------
Mar. 31, Dec. 31, Mar. 31, Prior Prior
EARNINGS 2006 2005 2005 Quarter Year
----------------------------------------------------------------------
Basic income from
continuing operations
per common share:
Class A $ 0.79 $ 0.48 $ 2.82 64.6 % (72.0)%
Class B 0.82 0.51 2.85 60.8 (71.2)
Combined (A) 0.81 0.50 2.84 62.0 (71.5)
Diluted income from
continuing operations
per common share:
Class A 0.73 0.45 2.54 62.2 (71.3)
Class B 0.74 0.46 2.55 60.9 (71.0)
Combined (A) 0.73 0.46 2.55 58.7 (71.4)
Basic net income per
common share:
Class A 0.79 0.56 2.82 41.1 (72.0)
Class B 0.82 0.59 2.85 39.0 (71.2)
Combined (A) 0.81 0.58 2.84 39.7 (71.5)
Diluted net income per
common share:
Class A 0.73 0.52 2.54 40.4 (71.3)
Class B 0.74 0.53 2.55 39.6 (71.0)
Combined (A) 0.73 0.53 2.55 37.7 (71.4)
Return on average common
equity 16.63 % 12.28 % 67.30 % 35.4 (75.3)
COMMON STOCK DATA
----------------------------------------------------------------------
Weighted average common
shares used to compute:
Basic earnings per
common share
Class A 8,846 8,837 8,812 0.1 % 0.4 %
Class B 18,107 17,992 16,705 0.6 8.4
-------- -------- --------
Total 26,953 26,829 25,517 0.5 5.6
Diluted earnings per
common share
Class A 8,846 8,837 8,812 0.1 0.4
Class B 20,876 20,535 19,670 1.7 6.1
-------- -------- --------
Total 29,722 29,372 28,482 1.2 4.4
Ending shares
outstanding:
Class A 9,607 9,607 9,607 0.0 0.0
Class B 18,890 18,756 18,399 0.7 2.7
-------- -------- --------
Total 28,497 28,363 28,006 0.5 1.8
Stock price:
Class A
High $ 34.74 $ 31.30 $ 22.80 11.0 52.4
Low 28.82 22.62 20.23 27.4 42.5
Closing 34.09 30.13 20.80 13.1 63.9
Class B
High 37.44 33.06 24.70 13.2 51.6
Low 30.84 24.76 21.84 24.6 41.2
Closing 36.87 32.44 23.00 13.7 60.3
Cash dividends declared:
Class A 0.1134 0.1134 0.0945 0.0 20.0
Class B 0.1361 0.1361 0.1134 0.0 20.0
Book value per common
share 19.44 18.74 17.72 3.7 9.7
(A) Combined represents income available to common stockholders
divided by the combined total of Class A and Class B weighted
average common shares outstanding.
ADVANTA
BUSINESS CREDIT CARD STATISTICS
($ in thousands)
Percent Change
Three Months Ended From
------------------------------------
Mar. 31, Dec. 31, Mar. 31, Prior Prior
2006 2005 2005 Quarter Year
----------------------------------------------------
New account
originations 82,617 64,206 44,781 28.7 % 84.5 %
Average number of
active accounts
(A) 649,384 621,966 577,301 4.4 12.5
Ending number of
accounts 921,841 877,114 786,967 5.1 17.1
Transaction
volume $2,733,922 $2,693,908 $2,176,809 1.5 25.6
Securitization
volume increase
excluding
replenishment
sales $ 165,000 $ 100,000 $ 0 65.0 N/M
Average
receivables:
Owned $ 929,795 $1,011,684 $ 779,176 (8.1) 19.3
Securitized 2,957,309 2,694,391 2,548,739 9.8 16.0
---------- ---------- ----------
Managed (B) 3,887,104 3,706,075 3,327,915 4.9 16.8
Ending
receivables:
Owned $ 982,251 $ 879,468 $ 783,916 11.7 25.3
Securitized 3,045,600 2,880,401 2,565,085 5.7 18.7
---------- ---------- ----------
Managed (B) 4,027,851 3,759,869 3,349,001 7.1 20.3
----------------------------------------------------------------------
CREDIT QUALITY -
OWNED
------------------
Receivables 30
days or more
delinquent $ 26,335 $ 23,595 $ 27,507
Receivables 90
days or more
delinquent 11,637 10,837 12,775
As a percentage of
gross
receivables:
Receivables 30
days or more
delinquent 2.68 % 2.68 % 3.51 % 0.0 % (23.6)%
Receivables 90
days or more
delinquent 1.18 1.23 1.63 (4.1) (27.6)
Net principal
charge-offs:
Amount $ 8,084 $ 15,768 $ 10,419
As a percentage
of average
gross
receivables
(annualized) 3.48 % 6.23 % 5.35 % (44.1) (35.0)
CREDIT QUALITY -
SECURITIZED
------------------
Receivables 30
days or more
delinquent $ 91,029 $ 87,610 $ 110,069
Receivables 90
days or more
delinquent 40,131 40,223 51,318
As a percentage of
gross
receivables:
Receivables 30
days or more
delinquent 2.99 % 3.04 % 4.29 % (1.6)% (30.3)%
Receivables 90
days or more
delinquent 1.32 1.40 2.00 (5.7) (34.0)
Net principal
charge-offs:
Amount $ 27,095 $ 46,151 $ 35,270
As a percentage
of average
gross
receivables
(annualized) 3.66 % 6.85 % 5.54 % (46.6) (33.9)
CREDIT QUALITY -
MANAGED (B)
------------------
Receivables 30
days or more
delinquent $ 117,364 $ 111,205 $ 137,576
Receivables 90
days or more
delinquent 51,768 51,060 64,093
As a percentage of
gross
receivables:
Receivables 30
days or more
delinquent 2.91 % 2.96 % 4.11 % (1.7)% (29.2)%
Receivables 90
days or more
delinquent 1.29 1.36 1.91 (5.1) (32.5)
Net principal
charge-offs:
Amount $ 35,179 $ 61,919 $ 45,689
As a percentage
of average
gross
receivables
(annualized) 3.62 % 6.68 % 5.49 % (45.8) (34.1)
(A) Active accounts are defined as accounts with a balance at month-
end. Active account statistics do not include charged-off
accounts. The statistics reported above are the average number of
active accounts for the periods presented.
(B) Managed statistics are non-GAAP financial measures and represent
the sum of owned (GAAP) business credit card statistics and
securitized business credit card statistics. We believe that
performance on a managed basis provides useful supplemental
information to investors because we retain interests in the
securitized receivables and, therefore, we have a financial
interest in and exposure to the performance of the securitized
receivables.
N/M - Not Meaningful
- Statistical supplement available at www.advanta.com -
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