CompuCredit Reports First Quarter Results.Business Editors ATLANTA--(BUSINESS WIRE)--May 15, 2002 CompuCredit 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 : 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 2002 earnings of $2.1 million, or $0.02 per share. "This quarter we focused on account management and cost control, in addition to the potential purchase of other credit card portfolios," said David Hanna Han·na , Marcus Alonzo Known as "Mark." 1837-1904. American financier and politician who managed the 1896 and 1900 presidential campaigns of William McKinley and served as a U.S. senator from Ohio (1897-1904). , Chief Executive Officer. "We are pleased that despite a decline in 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 , we were able to maintain a 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 of less than 15%. We remain unwilling to grow at the expense of credit quality or liquidity." The net charge-off rate was 14.7 percent in the first quarter of 2002 as compared to 15.3 percent for the fourth quarter of 2001 and 14.8 percent for the first quarter of 2001. The operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: was 9.0 percent as compared to 9.8 percent in the fourth quarter of 2001 and 9.1 percent in the first quarter of 2001. At March 31, 2002, the 60+ 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 12.2 percent as compared to 11.1 percent as of December December: see month. 31, 2001 and 9.4 percent as of March 31, 2001. Further details regarding CompuCredit's first quarter financial performance will be discussed during management's conference call on Thursday Thursday: see week. , May 16, 2002 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 , including sophisticated computer models, to market general-purpose gen·er·al-pur·pose adj. Designed for or suitable to more than one use; broadly useful: a general-purpose loan. general-purpose Adjective credit cards and related fee-based products and services. Through its Aspire brand and others, the company currently serves over 2 million customers nationwide. Credit cards marketed by CompuCredit are 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. All statements in this press release concerning our future performance (including those using words such as "believe," "estimate," "project," "anticipate" or "predict"), are 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. . These forward-looking statements are not guarantees of future performance and are subject to various assumptions, risks, uncertainties and other factors that could cause our actual results to differ materially from those that are suggested by these forward-looking statements. These factors include, among others, the following risks and others set forth under the caption "Risk Factors" in CompuCredit's 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. for the year ended December 31, 2001: Our financial performance is significantly dependent upon the collectibility of the credit card receivables that we originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. or purchase; we are substantially dependent upon securitizations and other borrowed funds in order to fund the credit card receivables that we originate or purchase; our financial performance is, in part, a function of the aggregate amount of credit card receivables that are outstanding; many of our expenses are fixed and are not easily reduced or easily increased, if needed; we operate in a heavily regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. industry; and we routinely explore various opportunities to grow our business, including the purchase of credit card receivable portfolios and other businesses. Moreover, as a consequence of those or other factors, CompuCredit's plans or expectations may change. CompuCredit expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CompuCredit Corporation (CCRT)
Financial and Statistical Summary
(Unaudited)
At or For the Three Months Ended
March 31, December 31, March 31,
2002 2001 2001
---------------------------------------------
(In thousands, except percentages
and per share data)
Common Share Statistics
EPS - Basic $ 0.02 $ (0.72) $ 0.14
EPS - Diluted $ 0.02 $ (0.72) $ 0.14
Book Value Per Common
Share Outstanding
(period end)(1) $ 8.78 $ 8.77 $ 8.83
Stock Price Per Share
(period end) $ 5.72 $ 11.76 $ 7.53
Total Market
Capitalization
(period end) $ 266,318 $ 547,536 $ 350,311
Shares Outstanding
(period end) 46,559 46,559 46,515
Weighted Average Shares
O/S - Basic 46,559 46,559 46,515
Weighted Average Shares
O/S - Diluted 46,566 46,566 46,598
Average Managed Loans Statistics (2)
Average Managed Loans $ 1,860,209 $ 1,838,873 $ 1,574,554
Average Shareholders'
Equity $ 447,451 $ 443,784 $ 407,107
Net Interest Margin 16.9% 19.0% 21.6%
Return on Average
Managed Loans 0.5% -7.2% 1.6%
Return on Average
Equity (ROE) 1.9% -29.9% 6.3%
Net Charge-Off Rate 14.7% 15.3% 14.8%
Net Charge-Offs $ 68,407 $ 70,207 $ 58,126
Risk Adjusted Margin 9.7% 12.5% 15.5%
Operating Ratio 9.0% 9.8% 9.1%
Period-End Managed Loans Statistics (2)
Total Managed Loans $ 1,809,070 $ 1,891,842 $ 1,589,584
Delinquency Rate
(60+ days) 12.2% 11.1% 9.4%
Number of Accounts 2,057 2,185 2,256
Shareholders' Equity $ 448,425 $ 446,479 $ 410,557
Equity to Managed Loans
Ratio 24.8% 23.6% 25.8%
Gross new accounts added 36 125 199
(1) Assumes preferred shares are converted into common shares at
December 31, 2001 and March 31, 2002.
(2) Excludes receivables at or near charge-off at the time of
purchase.
CompuCredit Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2002 2001
-----------------------------------
(Dollars in thousands)
Assets
Cash and cash equivalents $48,060 $55,746
Restricted cash 10,000 -
Retained interests in credit card
receivables securitized 349,000 358,889
Accrued interest and fees 29,961 32,928
-----------------------------------
Net credit card receivables 378,961 391,817
Amounts due from securitization 15,049 20,996
Deferred costs, net 14,400 17,862
Software, furniture, fixtures and
equipment, net 33,021 34,522
Prepaid expenses 1,407 1,540
Other assets 11,765 13,974
-----------------------------------
Total assets $512,663 $536,457
===================================
Liabilities
Accounts payable and accrued
expenses $22,473 $28,321
Notes payable - 16,517
Deferred revenue 13,306 13,820
Income tax liability 28,459 31,320
-----------------------------------
Total liabilities 64,238 89,978
Shareholders' equity
Preferred stock, no par value,
10,000,000 shares authorized:
Series A preferred stock, 30,000 and
30,000 shares issued and outstanding
at March 31, 2002 and December 31,
2001, respectively 30,103 29,512
Series B preferred stock, 10,000 and
10,000 shares issued and
outstanding at March 31, 2002 and
December 31, 2001, respectively 10,247 10,000
Common stock, no par value,
150,000,000 shares authorized;
46,559,165 and 46,559,165 issued
and outstanding at March 31, 2002
and December 31, 2001, respectively - -
Additional paid-in capital 240,352 240,352
Note issued to purchase stock (500) (500)
Retained earnings 168,223 167,115
-----------------------------------
Total shareholders' equity 448,425 446,479
-----------------------------------
Total liabilities and shareholders'
equity $512,663 $536,457
===================================
CompuCredit Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2002 2001 2001
---------------------------------------------
(Dollars in thousands, except per share data)
Net Interest income $305 $114 $1,009
Other operating income:
Securitization income, net - (9,475) 266
Income from retained
interests in credit card
receivables securitized 5,702 (44,554) 15,445
Servicing income 1,285 1,372 1,687
Other credit card fees 24,840 26,096 18,713
Interchange fees 3,957 5,666 5,361
Ancillary products 4,483 6,919 7,570
---------------------------------------------
Total other operating income 40,267 (13,976) 49,042
Other operating expense:
Salaries and benefits 3,596 3,788 2,283
Credit card servicing 20,070 17,544 14,129
Marketing and solicitation 2,624 2,403 12,131
Professional fees 783 1,012 982
Data processing 1,600 3,691 2,841
Net occupancy 1,192 1,356 805
Ancillary product expense 1,999 1,983 3,967
Other 5,458 5,383 3,104
---------------------------------------------
Total other operating
expense 37,322 37,160 40,242
Income (loss) before
income taxes 3,250 (51,022) 9,809
Income taxes (1,138) 17,860 (3,433)
---------------------------------------------
Net income (loss) $2,112 ($33,162) $6,376
=============================================
Net income (loss)
attributable to common
shareholders $1,108 ($33,306) $6,376
=============================================
Average shares outstanding
- basic 46,559 46,559 46,515
=============================================
Average shares outstanding
- diluted 46,566 46,566 46,598
=============================================
Earnings (loss) per share
- basic (1) $ 0.02 ($ 0.72) $0.14
=============================================
Earnings (loss) per share
- diluted (1) $ 0.02 ($ 0.72) $0.14
=============================================
(1) The effect of the preferred stock, which are convertible into
common shares, were excluded from the EPS computations because their
inclusion would have been anti-dilutive.
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