CompuCredit
05.05.05 16:32
#1
Parocorp
CompuCredit
Wieder Angriff aufs Hoch!
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CompuCredit Corp
245 Perimeter Center Parkway, Suite 600
Atlanta, GA 30346
Phone: (770) 206-6200
Fax: (770) 901-5815
Email: corpinfo@compucredit.com
Web Site: http://www.compucredit.com
REUTERS ABRIDGED BUSINESS SUMMARY
CompuCredit Corporation operates primarily within one industry consisting of four reportable segments through which it manages the business. The four segments include: Credit Cards; Investments in Previously Charged Off Receivables; Retail Micro-Lending and Servicing, and Other. The company made a 50% investment interest in CSG, LLC (CSG) during the year ended December 31, 2002; 62.5% investment interest in Embarcadero Holdings, LLC (Embarcadero) during the year ended December 31, 2003; 75.1% investment interest in Bluestem Holdings, LLC (Bluestem) and 33.3% investment interest in Transistor Holdings, LLC (Transistor) during the year ended December 31, 2004 (2004), and 47.5% investment interest in Rapid City Holdings, LLC (Rapid City) in January 2005.
Wednesday May 4, 4:22 pm ET
Confirms 2005 EPS Guidance of Over $3.00 per Share
ATLANTA, GA--(MARKET WIRE)--May 4, 2005 -- CompuCredit (NasdaqNM:CCRT - News) reported first quarter 2005 net income attributable to common shareholders of $49.2 million, or $0.94 per diluted share, as compared to its first quarter 2004 net income attributable to common shareholders of $17.7 million, or $0.36 per diluted share.
The net interest margin was 20.8 percent in the first quarter of 2005, as compared to 19.9 percent for the first quarter of 2004. The adjusted charge-off rate was 6.9 percent in the first quarter of 2005, as compared to 8.2 percent for the first quarter of 2004. Also, as of March 31, 2005, the 60-plus day delinquency rate was 8.7 percent, as compared to 10.5 percent as of March 31, 2004.
"Continued strength in the credit quality of our originated and acquired portfolios contributed to a terrific first quarter for us," said David Hanna, CompuCredit Chairman and Chief Executive Officer. He added, "We are most encouraged by the organic growth that we have experienced, the performance of our three acquisitions completed during the first quarter, as well as the prospects for our new auto lending segment that we added on April 1st. We continue to see 2005 as somewhat of a breakthrough year for us as we expect to exceed $3.00 per share of earnings for the first time in our company's history."
Various references within this press release and the accompanying financial information are to the Company's managed receivables, which include the Company's non-securitized receivables, as well as the receivables underlying the Company's off balance sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of the Company's performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the aggregate of the portfolios of receivables reflected on the Company's balance sheet and underlying the Company's securitization facilities. In allocating the Company's resources and managing the Company's business, management relies heavily upon financial, operating and statistical data prepared on a so-called "managed basis." It is also important to analysts, investors and others that the Company provides selected metrics and data on a managed basis because this allows a comparison of CompuCredit to others within the specialty finance industry. Moreover, the Company's management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of the Company's managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and the Company's retained interests in its securitization facilities.
Managed receivables data assume that none of the credit card receivables underlying the Company's off balance sheet securitization facilities were ever transferred to securitization facilities and present the net credit losses and delinquent balances on the receivables as if the Company still owned the receivables. Reconciliation of the managed receivables data to the Company's GAAP financial statements requires: (1) recognition that a significant majority of the Company's loans and fees receivable (i.e., all but $135.1 million of GAAP loans and fees receivables at gross face value) had been sold in securitization transactions as of March 31, 2005; (2) a look-through to the Company's economic share of the receivables that it manages for its two equity-method investees; (3) removal of the Company's minority interest holders' interests in the managed receivables underlying the Company's GAAP consolidated results; and (4) recognition that the de-securitized Fingerhut managed receivables are recorded at a $0.0 basis in the Company's GAAP financial statements.
Our expectation with regard to earnings per share is a forward-looking statement. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond CompuCredit's control. Actual results may differ materially from those suggested by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the factors set forth in "Item 1. Business -- Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2004, changes in the general economy that might make originated and acquired receivables more difficult to collect (and future receivables less profitable), our ability to transfer acquired receivables to our systems and effectively collect them, and our ability to successfully integrate and grow acquired businesses. CompuCredit expressly disclaims any obligation to update any forward-looking statements except as may be required by law.
Further details regarding CompuCredit's first quarter 2005 financial performance will be discussed during management's conference call on Thursday, May 5, 2005, at 8:00 a.m., Eastern Time. The media and public are invited to listen to the live webcast of the call, accessible on the Internet at www.CompuCredit.com. A replay of the conference call also will be available on the web site.
CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit www.CompuCredit.com.
CompuCredit Corp
245 Perimeter Center Parkway, Suite 600
Atlanta, GA 30346
Phone: (770) 206-6200
Fax: (770) 901-5815
Email: corpinfo@compucredit.com
Web Site: http://www.compucredit.com
REUTERS ABRIDGED BUSINESS SUMMARY
CompuCredit Corporation operates primarily within one industry consisting of four reportable segments through which it manages the business. The four segments include: Credit Cards; Investments in Previously Charged Off Receivables; Retail Micro-Lending and Servicing, and Other. The company made a 50% investment interest in CSG, LLC (CSG) during the year ended December 31, 2002; 62.5% investment interest in Embarcadero Holdings, LLC (Embarcadero) during the year ended December 31, 2003; 75.1% investment interest in Bluestem Holdings, LLC (Bluestem) and 33.3% investment interest in Transistor Holdings, LLC (Transistor) during the year ended December 31, 2004 (2004), and 47.5% investment interest in Rapid City Holdings, LLC (Rapid City) in January 2005.
Wednesday May 4, 4:22 pm ET
Confirms 2005 EPS Guidance of Over $3.00 per Share
ATLANTA, GA--(MARKET WIRE)--May 4, 2005 -- CompuCredit (NasdaqNM:CCRT - News) reported first quarter 2005 net income attributable to common shareholders of $49.2 million, or $0.94 per diluted share, as compared to its first quarter 2004 net income attributable to common shareholders of $17.7 million, or $0.36 per diluted share.
The net interest margin was 20.8 percent in the first quarter of 2005, as compared to 19.9 percent for the first quarter of 2004. The adjusted charge-off rate was 6.9 percent in the first quarter of 2005, as compared to 8.2 percent for the first quarter of 2004. Also, as of March 31, 2005, the 60-plus day delinquency rate was 8.7 percent, as compared to 10.5 percent as of March 31, 2004.
"Continued strength in the credit quality of our originated and acquired portfolios contributed to a terrific first quarter for us," said David Hanna, CompuCredit Chairman and Chief Executive Officer. He added, "We are most encouraged by the organic growth that we have experienced, the performance of our three acquisitions completed during the first quarter, as well as the prospects for our new auto lending segment that we added on April 1st. We continue to see 2005 as somewhat of a breakthrough year for us as we expect to exceed $3.00 per share of earnings for the first time in our company's history."
Various references within this press release and the accompanying financial information are to the Company's managed receivables, which include the Company's non-securitized receivables, as well as the receivables underlying the Company's off balance sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of the Company's performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the aggregate of the portfolios of receivables reflected on the Company's balance sheet and underlying the Company's securitization facilities. In allocating the Company's resources and managing the Company's business, management relies heavily upon financial, operating and statistical data prepared on a so-called "managed basis." It is also important to analysts, investors and others that the Company provides selected metrics and data on a managed basis because this allows a comparison of CompuCredit to others within the specialty finance industry. Moreover, the Company's management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of the Company's managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and the Company's retained interests in its securitization facilities.
Managed receivables data assume that none of the credit card receivables underlying the Company's off balance sheet securitization facilities were ever transferred to securitization facilities and present the net credit losses and delinquent balances on the receivables as if the Company still owned the receivables. Reconciliation of the managed receivables data to the Company's GAAP financial statements requires: (1) recognition that a significant majority of the Company's loans and fees receivable (i.e., all but $135.1 million of GAAP loans and fees receivables at gross face value) had been sold in securitization transactions as of March 31, 2005; (2) a look-through to the Company's economic share of the receivables that it manages for its two equity-method investees; (3) removal of the Company's minority interest holders' interests in the managed receivables underlying the Company's GAAP consolidated results; and (4) recognition that the de-securitized Fingerhut managed receivables are recorded at a $0.0 basis in the Company's GAAP financial statements.
Our expectation with regard to earnings per share is a forward-looking statement. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond CompuCredit's control. Actual results may differ materially from those suggested by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the factors set forth in "Item 1. Business -- Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2004, changes in the general economy that might make originated and acquired receivables more difficult to collect (and future receivables less profitable), our ability to transfer acquired receivables to our systems and effectively collect them, and our ability to successfully integrate and grow acquired businesses. CompuCredit expressly disclaims any obligation to update any forward-looking statements except as may be required by law.
Further details regarding CompuCredit's first quarter 2005 financial performance will be discussed during management's conference call on Thursday, May 5, 2005, at 8:00 a.m., Eastern Time. The media and public are invited to listen to the live webcast of the call, accessible on the Internet at www.CompuCredit.com. A replay of the conference call also will be available on the web site.
CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit www.CompuCredit.com.
