Credit Store Posts 3Q FY 2000 Results; Core Revenues Increase; Reports Loss for Quarter.Business Editors SIOUX FALLS Sioux Falls, city (1990 pop. 100,814), seat of Minnehaha co., SE S.Dak., on the Big Sioux River; settled 1856, inc. as a village 1877, as a city 1883. Settlers abandoned the site in 1862 because of Native American raids, but with the establishment (1865) of Fort , S.D.--(BUSINESS WIRE)--May 25, 2000 The Credit Store, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : PLCR) released its results for the third quarter and first nine months of its fiscal year 2000, ended February February: see month. 29, 2000. Net revenue for the quarter ended February 29, 2000 was $7.69 million, a 20.5% decrease from the $9.68 million recorded during the quarter ended February 28, 1999. Gains from portfolio sales decreased 83.0% from $3.28 million in the quarter ended February 28, 1999 to $.56 million in the quarter ended February 29, 2000 due to the completion of a 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. in the quarter ended February 28, 1999 and no securitizations or portfolio sales in the quarter ended February 29, 2000. Core revenue (including interest, fees and interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
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 increasing 49.7% from $1.56 million in the quarter ended February 28, 1999 to $2.34 million in the quarter ended February 29, 2000. This increase is a result of a higher amount of funded credit card receivables during the period. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter ended February 29, 2000 were $9.53 million, a 1.5% increase from $9.38 million in the quarter ended February 28, 1999. The net loss was $1.84 million for the quarter ended February 29, 2000 compared to net income of $.30 million in the quarter ended February 28, 1999. After providing for preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) of $.50 million in the third quarter of fiscal year 2000, the net loss applicable to common shareholders was $2.34 million, or $(.07) per common share, compared to preferred dividends of $.50 million and a net loss of $.20 million, or $(.01) per common share, in the third quarter of fiscal year 1999. Net revenue for the nine months ended February 29, 2000 was $26.81 million, a 1.8% decrease from the $27.30 million recorded during the nine months ended February 28, 1999. Gains from portfolio sales and 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. decreased 22.8% from $8.93 million in the nine months ended February 28, 1999 to $6.89 million in the nine months ended February 29, 2000. This decrease is the result of the Company selling its retained interests in securitizations during the second quarter of fiscal year 2000, and conducting no sales in the first or third quarter of fiscal year 2000, as compared to the Company recording gains from portfolio sales and securitizations in the first, second and third quarters of fiscal year 1999. All other core revenue components increased 13.1% as a group during the first three quarters of fiscal year 2000 as compared to the first three quarters of fiscal 1999. Total operating expenses for the nine months ended February 29, 2000 increased 1.5% to $26.83 million from $26.44 million in the nine months ended February 28, 1999. The net loss was $1.31 million for the nine months ended February 29, 2000 compared to net income of $.87 million in the nine months ended February 28, 1999. After providing for preferred dividends of $1.50 million in the first three quarters of fiscal year 2000, the net loss applicable to common shareholders was $2.81 million, or $(.08) per common share, compared to preferred dividends of $1.30 million and a net loss of $.43 million, or $(.01) per common share in the first three quarters of fiscal year 1999. Martin J. Burke The name Burke (from Irish Gaelic de Burca, of Norman origin). In English the meaning of the name Burke is "fortified hill." See also Berkley. Places Australia
v. 1. To bring into being; create. 2. To come into being; start. receivables, expand core revenues and stabilize stabilize See peg. expenses. In the short term, we anticipate that quarterly results will continue to fluctuate based on the timing and amounts of portfolio sales and securitizations. However, over time, we expect that core revenue from credit card operations will begin to provide stability in quarterly results."
Three Months Results
FY 2000, 3 mths. FY 1999, 3 mths.
ended 2/29/00 ended 2/28/99
Total Revenues $8.8 million $10.6 million
Core Revenues $8.2 million $7.3 million
Gain on Portfolio Sales
& Securitizations $0.6 million $3.3 million
Provision for Losses $1.1 million $0.9 million
Total Expenses $9.5 million $9.4 million
Net Income (Loss) $(1.8) million $0.3 million
Preferred Dividends $0.5 million $0.5 million
Net Income (Loss) Applicable
to Common Shareholders $(2.3) million $(0.2) million
Income (Loss) per
Common Share $ (0.07) $ (0.01)
Weighted Average Shares Outstanding 34,761,965 34,761,965
-0-
Nine Months Results
FY 2000, 9 mths. FY 1999, 9 mths.
ended 2/29/00 ended 2/28/99
Total Revenues $31.6 million $30.8 million
Core Revenue $24.7 million $21.9 million
Gain on Portfolio Sales
& Securitizations $6.9 million $8.9 million
Provision for Losses $4.8 million $3.5 million
Total Expenses $26.8 million $26.4 million
Income Tax Benefit (Expense) $ 1.3 million --
Net Income (Loss) $(1.3) million $0.9 million
Preferred Dividends $1.5 million $1.3 million
Net Income (Loss) Applicable To
Common Shareholders $(2.8) million $(0.4)million
Income (Loss) per
Common Share $ (0.08) $ (0.01)
Weighted Average Shares Outstanding 34,761,965 34,761,965
Comparative results for the third quarter and nine months of fiscal year 1999 have been adjusted to reflect changes in accounting procedures which were previously announced. The Credit Store, Inc. is a technology based 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 that provides credit card products to consumers who may otherwise fail to qualify for a traditional unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. bank credit card. The Company reaches these consumers by acquiring portfolios of non-performing consumer receivables and offering a new credit card to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan amount. After appropriate seasoning, the Company seeks to sell or securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. the credit card receivables generated by this business strategy. This press release contains certain 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. regarding anticipated trends in quarterly results, core revenues, total revenues and total expenses and other matters that involve risk and uncertainties. Future trends or results may differ materially from those discussed in this press release. Because actual results may differ, readers are cautioned not to place undue reliance on forward-looking statements. Factors that may cause our actual results to differ from those projected include, among others, the following: Our credit card portfolio may not perform as well as we expect and may not generate sufficient cash flows to fund our operations. We may not be able to finance our operations if we are unable to sell our credit card receivables, if we are unable to secure future financing, or if we are unable to control our expenses. The market for the sale or securitization of our credit card receivables is limited and could be further limited if there is an increase in competition or regulatory 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. burdens on the industry or if the economy declines. If competition increases or if the economy fluctuates, we may not be able to acquire enough credit card receivables on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms to operate profitably. We may also be subject to adverse legal determinations in lawsuits pending against us or filed in the future. Certain of these risk factors are more fully discussed in Amendment No. 1 to our Registration Statement on Form 10 filed with the Securities and Exchange Commission on April 6, 2000 and in our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended February 29, 2000. We caution you, however, that the list of factors above may not be exhaustive and that those or other factors, many of which are outside of our control, could have a material adverse effect on us and our results of operations. |
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