CompuCredit Announces First Quarter Results.Business Editors ATLANTA--(BUSINESS WIRE)--May 5, 2003 CompuCredit (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 : CCRT CCRT Core Conflictual Relationship Theme CCRT Conseil Canadien de la Réadaptation et du Travail (Canadian Council on Rehabilitation and Work) CCRT Cape Cod Rail Trail (Massachusetts, USA) ) reported first quarter 2003 net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common shareholders of $33.2 million, or $0.67 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 as compared to $16.7 million, or $0.35 per diluted share for the fourth quarter of 2002. The net interest margin was 15.5 percent in the first quarter of 2003 as compared to 17.1 percent for the fourth quarter of 2002. The adjusted net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. rate was 10.2 percent in the first quarter of 2003 as compared to 9.2 percent for the fourth quarter of 2002. At March 31, 2003, the 60 plus day managed delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rate was 13.3 percent as compared to 13.9 percent as of December December: see month. 31, 2002. Various references within this press release are to the managed credit card 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 underlying our off balance sheet securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. facilities. Performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. and data based on these managed receivables are key to any evaluation of the Company's performance in managing (including underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , valuing purchased receivables, servicing and collecting) the portfolios of receivables underlying our off balance sheet securitization facilities. Indeed, we allocate To reserve a resource such as memory or disk. See memory allocation. resources within our Company and manage our Company using financial data and results prepared on a so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. "managed basis." It is also important to analysts, investors and others that we provide selected metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and data on a managed basis because it is through our reporting on this basis that they are able to compare our Company to others within the specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. finance industry. Moreover, our Company's management, analysts, investors and others believe it is critical that they understand the credit performance of our entire portfolio of managed credit card receivables because it reveals information concerning the quality of loan originations 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. and the related credit risks inherent within the securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. portfolios and our retained interests Retained interest (also colloquially known as a payout penalty) is future, currently unpaid, interest that some lenders add to the remaining principal of a loan to determine a payout figure in the event that the loan is terminated before the completion of the original term. in the respective securitization facilities. Managed receivables data assumes that we have not sold the credit card receivables underlying our off balance sheet securitization facilities and presents the net credit losses and delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. balances on the receivables as if we had still owned the receivables. Reconciliation of the managed receivables data to our GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial statements requires recognition that all of our credit card receivables have been sold in securitization transactions; this reconciliation requires the removal of all of the managed receivables data from our books and records to yield zero credit card receivables and associated statistics under GAAP, coupled with the recording under GAAP of retained interests in various securitization structures. Further details regarding CompuCredit's first quarter financial performance will be discussed during management's conference call on Tuesday Tuesday: see week. , May 6, 2003 at 8:30 a.m. Eastern Standard Time. The media and public are invited to listen to the live webcast of the call, accessible 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 http://www.CompuCredit.com. The conference call will be archived at the above web site for those interested parties that are unable to attend at this time. CompuCredit Corporation (Nasdaq: CCRT) is a credit card company that uses analytical techniques An analytical technique is a method that is used to determine the concentration of a chemical compound or chemical element. There are a wide variety of techniques used for analysis, from simple weighing (gravimetric) to titrations (titrimetric)to very advanced techniques using to serve consumers who we believe are underserved by traditional grantors of credit. Credit cards marketed by CompuCredit are generally issued by Columbus Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. Bank and Trust Company under an agreement with CompuCredit. For more information about CompuCredit, visit http://www.CompuCredit.com.
CompuCredit Corporation (CCRT)
Financial and Statistical Summary
(Unaudited)
At or For the Three Months Ended
March 31, December 31, March 31,
2003 2002 2002
---------------------------------
(In thousands, except percentages
and per share data)
Common Share Statistics
EPS - Basic $0.67 $0.35 $0.02
EPS - Diluted $0.67 $0.35 $0.02
Book Value Per Common Share
Outstanding (period end)(1) $9.47 $8.82 $8.78
Stock Price Per Share (period end) $6.28 $7.07 $5.72
Total Market Capitalization (period
end) $288,478 $325,052 $266,318
Shares Outstanding (period end) 45,936 45,976 46,559
Weighted Average Shares O/S - Basic 50,827 50,633 46,559
Weighted Average Shares O/S -
Diluted 50,971 50,703 46,566
Average Managed Loans Statistics (2)
Average Managed Loans $2,636,728 $2,912,482 $1,860,209
Average Equity $462,539 $440,007 $447,451
Net Interest Margin 15.5% 17.1% 16.9%
Return on Average Managed Loans 5.2% 2.4% 0.5%
Return on Average Equity (ROE) 29.7% 16.2% 1.9%
Net Charge-Off Rate 20.3% 17.0% 14.7%
Adjusted Net Charge-Off Rate 10.2% 9.2% 14.7%
Adjusted Net Charge-Offs $67,180 $67,193 $68,407
Risk Adjusted Margin 14.1% 12.8% 9.7%
Operating Ratio 8.4% 8.3% 9.0%
Other Credit Card Income Ratio 9.1% 6.0% 7.6%
Period-End Selected Credit Card Data (2)
Total Managed Loans $2,470,041 $2,795,888 $1,809,070
Delinquency Rate (60+ days) 13.3% 13.9% 12.2%
Number of Accounts 3,169 3,562 2,057
Shareholders' Equity $482,008 $447,868 $448,425
Equity to Managed Loans Ratio 19.5% 16.0% 24.8%
(1) Assumes preferred shares are converted into common shares as of
March 31, 2003, December 31, 2002 and March 31, 2002.
(2) Excludes receivables at or near charge-off at the time of
purchase.
CompuCredit Corporation and Subsidiaries
Consolidated Balance Sheets
March 31,
2003 December 31,
(Unaudited) 2002
----------------------
(Dollars in thousands)
Assets
Cash and cash equivalents $113,870 $120,416
Restricted cash 10,147 10,112
Retained interests in credit card receivables
securitized 308,498 275,635
Accrued interest and fees 15,001 15,804
----------------------
Net credit card receivables 323,499 291,439
Amounts due from securitization 15,847 7,235
Deferred costs, net 7,047 8,314
Software, furniture, fixtures and equipment, net 28,623 29,296
Investment in equity method investee 10,315 15,593
Investment in debt security 16,921 18,819
Prepaid expenses and other assets 23,564 17,691
----------------------
Total assets $549,833 $518,915
======================
Liabilities
Accounts payable and accrued expenses $32,329 $32,570
Deferred revenue 9,210 8,979
Income tax liability 26,286 29,498
----------------------
Total liabilities 67,825 71,047
Shareholders' equity
Preferred stock, no par value, 10,000,000 shares
authorized:
Series A preferred stock, 30,000 shares issued
and outstanding
at March 31, 2003 and December 31, 2002,
respectively 33,293 32,466
Series B preferred stock, 10,000 shares issued
and outstanding
at March 31, 2003 and December 31, 2002,
respectively 11,311 11,035
Common stock, no par value, 150,000,000 shares
authorized;
45,936,265 and 45,976,265 shares issued and
outstanding at
March 31, 2003 and December 31, 2002,
respectively - -
Additional paid-in capital 241,400 241,400
Treasury stock, at cost, 872,900 and 832,900
shares
at March 31, 2003 and December 31, 2002,
respectively (4,586) (4,338)
Deferred compensation (908) (1,013)
Note issued to purchase stock (500) (500)
Retained earnings 201,998 168,818
----------------------
Total shareholders' equity 482,008 447,868
----------------------
Total liabilities and shareholders' equity $549,833 $518,915
======================
CompuCredit Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2003 2002 2002
--------------------------------
(Dollars in thousands, except per share data)
Net interest (expense) income $(2,089) $(725) $305
Other operating income:
Income from retained interests
in credit card receivables securitized 36,307 8,462 5,702
Servicing income 27,666 31,125 1,285
Other credit card fees and other income 33,774 30,472 33,280
Equity in income of equity method
investee 14,296 21,621 --
------------------------------
Total other operating income 112,043 91,680 40,267
Other operating expense:
Salaries and benefits 4,341 6,227 3,596
Credit card servicing 38,047 43,048 20,070
Marketing and solicitation 1,587 2,505 2,624
Depreciation 3,865 3,861 3,570
Other 8,539 7,961 7,462
------------------------------
Total other operating expense 56,379 63,602 37,322
Income before income taxes 53,575 27,353 3,250
Income taxes (19,287) (9,573) (1,138)
------------------------------
Net income $34,288 $17,780 $2,112
==============================
Net income attributable to common
shareholders $33,180 $16,699 $1,108
==============================
Average shares outstanding - basic 50,827 50,633 46,559
==============================
Average shares outstanding - diluted 50,971 50,703 46,566
==============================
Net income per share - basic (1) $0.67 $0.35 $0.02
==============================
Net income per share - diluted (1) $0.67 $0.35 $0.02
==============================
(1) For the three months ended March 31, 2002, the effects of the
preferred stock, which are convertible into common shares, were
excluded from the EPS computations because their inclusion would have
been anti-dilutive.
(2) Other operating expense includes ancillary product expenses of
$683, $770 and $1,999 (in thousands) for the three months ended March
31, 2003, December 31, 2002, and March 31, 2002, respectively.
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