Advanta Provides Earnings Guidance for 2004.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--Dec. 18, 2003 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. Corporation (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 announced that it expects its 2004 earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to be between $1.40 and $1.60 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. Consistent with prior periods, this estimate assumes no gains or losses associated with the Company's venture capital portfolio as such amounts are based on future market conditions that cannot be reliably forecasted. During 2004, 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 are expected to grow 10% to 20%. "For 2004, our plan is to continue creating and deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound relationships with high credit quality small business customers," said Dennis 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. . "As a result of our exclusive focus on this market, we have become one of the nation's largest issuers of small business credit cards." 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, December 18, at 9:00 a.m. Eastern time. The call will be broadcast simultaneously for the public over 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 through www.advanta.com or www.vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, 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. , and install any necessary audio software. Replays of the call will be available beginning at noon today on the Internet at www.advanta.com or www.vcall.com or by dialing (719) 457-0820 and referring to confirmation code 125252. The conference call may include a discussion of non-GAAP financial measures, which are reconciled to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measure in this press release or the statistical supplements available at www.advanta.com in the "Corporate Info" section. About Advanta Advanta is a highly focused 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. company serving the small business market. Advanta leverages direct marketing and information based expertise to identify potential customers and new target markets and to provide a high level of service tailored to the unique needs of small business. Using these distinctive capabilities, Advanta has become one of the nation's largest issuers of MasterCard business credit cards to small businesses. Since 1951, Advanta has pioneered many of the marketing techniques common in the financial services industry today, including remote lending and direct mail, 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. The most significant among these risks and uncertainties are: (1) the Company's managed net interest income including changes resulting from fluctuations in the volume of receivables and the range and timing of pricing offers to cardholders; (2) competitive pressures; (3) political, social and/or general economic conditions that affect the level of new account originations, customer spending, delinquencies and charge-offs; (4) factors affecting fluctuations in the number of accounts or receivable balances, including the retention of cardholders after promotional pricing periods have expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. ; (5) interest rate fluctuations; (6) the level of expenses; (7) the timing of the securitizations of the Company's receivables; (8) factors affecting the value of investments held by the Company; (9) the effects of government regulation, including restrictions and limitations imposed by banking laws, regulators, examinations; (10) effect of, and changes in, tax laws, rates, regulations and policies; (11) relationships with customers, significant vendors and business partners; (12) difficulties or delays in the development, production, testing and marketing of products or services; (13) the amount and cost of financing available to the Company; (14) the ratings on the debt of the Company and its subsidiaries; (15) revisions to estimates associated with the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of the Company's mortgage and leasing businesses; and (16) the impact of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Additional 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. .
ADVANTA
($ in thousands)
RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial performance of the Advanta
Business Cards segment under generally accepted accounting principles
(GAAP), we evaluate Advanta Business Cards' performance on a managed
basis. Our managed receivable portfolio is comprised of both owned and
securitized business credit card receivables. We sell business credit
card receivables through securitizations accounted for as sales under
GAAP. We continue to own and service the accounts that generate the
securitized receivables. Managed data presents performance as if the
securitized receivables had not been sold. We believe that performance
on a managed basis provides useful supplemental information 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. Data on the managed portfolio provides
additional information useful in understanding the performance of the
retained interests in securitizations.
Return on managed assets is a non-GAAP financial measure for which the
return on average owned receivables is the most directly comparable
GAAP financial measure. A reconciliation of our long-term target for
return on managed assets to the most directly comparable GAAP
financial measure is not accessible on a forward looking basis because
it is not possible to reliably forecast the average managed
receivables on which this return would be earned making it impossible
to forecast the average owned receivables necessary to compute the
return on average owned receivables.
The examples in the table below provide a reconciliation of managed
principal charge-offs as a percent of average managed receivables (a
non-GAAP financial measure) to owned principal charge-offs to average
owned receivables (the most directly comparable GAAP financial
measure). In the table below, the Low End of Range column assumes the
average receivable balances multiplied by our the Low End of Range
charge-off expectations. The High End of Range column in the table
below assumes the average receivable balances multiplied by our High
End of Range charge-off expectations. The examples in the table below
depict only two possibilities out of a large set of possible scenarios
that could result in this range of charge-off rates.
Year Ended December 31,
2004
----------------------
Forward Looking Average Receivable Balances
Owned $ 600,000
Securitized 2,650,000
----------
Managed 3,250,000
----------------------------------------------------------------------
Forward Looking Credit Data Low End High End
of of
Range Range
---------- --------
Owned net principal charge-offs $ 37,800 $ 42,000
As a percentage of average receivables 6.3 % 7.0 %
Securitized net principal charge-offs $ 189,700 $208,250
As a percentage of average receivables 7.2 % 7.9 %
Managed net principal charge-offs $ 227,500 $250,250
As a percentage of average receivables 7.0 % 7.7 %
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion