SOURCE: CompuCredit

August 05, 2008 16:21 ET

CompuCredit Reports Second Quarter 2008 Results

ATLANTA, GA--(Marketwire - August 5, 2008) - CompuCredit (NASDAQ: CCRT) reported a second quarter 2008 GAAP net loss of $44.9 million, or $0.96 per fully diluted common share, versus a second quarter 2007 GAAP net loss of $11.0 million, or $0.23 per fully diluted common share. The second quarter 2008 GAAP net loss from continuing operations was $42.8 million, or $0.91 per fully diluted common share, as compared to a GAAP net loss of $6.6 million, or $0.14 per fully diluted common share, for the second quarter of 2007.

CompuCredit also reported a second quarter 2008 managed loss of $101.0 million, or $2.16 per fully diluted common share, versus second quarter 2007 managed income of $12.3 million or $0.25 per fully diluted common share. The second quarter 2008 managed loss from continuing operations was $98.9 million, or $2.11 per fully diluted common share, as compared to managed income of $15.8 million from continuing operations, or $0.32 per fully diluted common share, for the second quarter of 2007.

"Our results so far this year have been significantly impacted by our reduced marketing levels from mid-2007," said David G. Hanna, CompuCredit's Chairman and Chief Executive Officer. He added that, "As expected, a significant number of credit card accounts added in 2007 reached their peak vintage charge off levels in the first and second quarters of this year. At the end of the second quarter, our 60-plus day delinquency rate stood at its lowest level in two years."

Reflecting peak charge off vintages of accounts added in mid-2007, CompuCredit's net interest margin was 12.9 percent in the second quarter of 2008, as compared to 18.9 percent for the second quarter of 2007 and 13.6 percent in the previous quarter, and its adjusted charge-off rate was 19.2 percent in the second quarter of 2008, as compared to 9.0 percent for the second quarter of 2007 and 18.5 percent in the previous quarter. As of June 30, 2008, the 60-plus day delinquency rate was 12.6%, versus its historical peak of 18.4 percent at December 31, 2007 and its 13.4% level at June 30, 2007.

Various references within this press release and the accompanying financial information are to CompuCredit's "managed" results, which include the results of its non-securitized receivables, together with the receivables underlying its off-balance-sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of CompuCredit's performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the portfolios of receivables reflected on CompuCredit's balance sheet and underlying its securitization facilities. In allocating CompuCredit's resources and managing its 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 CompuCredit provides selected metrics and data on a managed basis because this allows a comparison of CompuCredit to others within the specialty finance industry. Moreover, CompuCredit's management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of CompuCredit's managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and CompuCredit's retained interests in its securitization facilities.

Managed receivables data assume that none of the credit card receivables underlying CompuCredit's off-balance-sheet securitization facilities was ever transferred to securitization facilities and present the net credit losses and delinquent balances on the receivables as if CompuCredit still owned the receivables. Reconciliation of the managed receivables data to CompuCredit's GAAP financial statements requires: (1) recognition that substantially all of CompuCredit's credit card receivables had been sold in securitization transactions as of June 30, 2008; (2) an understanding that CompuCredit's managed receivables data are based on billings and actual charge-offs as reported to it through underlying systems of record (i.e., without regard to an allowance for uncollectible loans and fees receivable); (3) a look-through to CompuCredit's economic share of (or equity interest in) the receivables that it manages for its equity-method investees; (4) removal of CompuCredit's minority interest holders' interests in the managed receivables underlying CompuCredit's GAAP consolidated results; and (5) recognition that CompuCredit's Fingerhut managed receivables were recorded at a $0 basis in CompuCredit's GAAP financial statements prior to CompuCredit's re-securitization of these receivables in September 2006.

Further details regarding CompuCredit's second quarter 2008 financial performance will be discussed during management's conference call on Tuesday, August 5, 2008 at 5:00 p.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 Corporation and Subsidiaries
              Financial, Operating and Statistical Measures
                                (Unaudited)
        (In thousands, except for per share data and percentages)


                                     As Of And For The Three Months Ended
                                       June 30,    March 31,     June 30,
                                         2008         2008         2007
                                     -----------  -----------  -----------
Common Share Statistics
Net (Loss) Income From Continuing
 Operations Per Common Share:
    Basic                             $    (0.91) $      0.12  $     (0.14)
    Diluted                           $    (0.91) $      0.12  $     (0.14)
Loss On Discontinued Operations Per
 Common Share:
    Basic                             $    (0.05) $     (0.07) $     (0.09)
    Diluted                           $    (0.05) $     (0.07) $     (0.09)
Net (Loss) Income Per Common Share:
    Basic                             $    (0.96) $      0.05  $     (0.23)
    Diluted                           $    (0.96) $      0.05  $     (0.23)

Book Value Per Common Share
 Outstanding (Period End)            $     15.69  $     16.60  $     17.20
Stock Price Per Common Share (Period
 End)                                $      6.00  $      8.87  $     35.02
Total Market Capitalization (Period
 End)                                $   288,024  $   425,157  $ 1,722,564
Shares Outstanding (Period End)(1)        48,004       47,933       49,188
Weighted Average Shares
 Outstanding--Basic                       46,785       46,742       48,485
Weighted Average Shares
 Outstanding--Diluted                     46,785       46,839       48,485

Average Managed Receivables
 Statistics (2)
Average Managed Receivables          $ 3,673,251  $ 3,986,532  $ 3,781,505
Average Shareholders' Equity         $   774,486  $   794,116  $   847,573
GAAP Return On Average Managed
 Receivables                                -4.7%         0.6%        -0.7%
GAAP Return On Average Equity (ROE)        -22.1%         2.8%        -3.1%
Net Interest Margin                         12.9%        13.6%        18.9%
Other Income Ratio                           6.1%         4.8%        11.8%
Net Charge-Off Rate                         20.5%        20.1%        16.3%
Adjusted Charge-Off Rate                    19.2%        18.5%         9.0%
Risk Adjusted Margin                        -0.8%        -0.6%        21.5%
Operating Ratio                             13.9%        13.1%        13.6%

Period-End Managed Receivables
 Statistics (2)
Total Managed Receivables            $ 3,581,277  $ 3,813,040  $ 3,869,922
Delinquency Rate (60+ days)                 12.6%        16.5%        13.4%
Number of Accounts                         4,590        4,983        4,969
Shareholders' Equity                 $   753,320  $   795,652  $   846,169
Equity to Managed Receivables Ratio         21.0%        20.9%        21.9%


(1) Shares outstanding balances exclude 3,651,069 shares that are
    outstanding at June 30, 2008 and March 31, 2008 and 5,677,950 shares
    that are outstanding at June 30, 2007 but that are returnable to
    CompuCredit under the terms of a share lending arrangement.

(2) Receivables-based statistics are based on continuing operations only.






                CompuCredit Corporation and Subsidiaries
                  Condensed Consolidated Balance Sheets
                          (Dollars in thousands)

                                                    June 30,   December 31,
                                                      2008        2007
                                                  -----------  -----------
                                                  (Unaudited)

Assets
Cash and cash equivalents (including restricted
 cash of $19,497 at June 30, 2008 and $29,128 at
 December 31, 2007)                               $   152,847  $   137,526
Securitized earning assets                            936,799    1,015,579
Non-securitized earning assets, net:
  Loans and fees receivable, net (of $29,119 and
   $27,199 in deferred revenue and $56,325 and
   $51,489 in allowances for uncollectible loans
   and fees receivable at June 30, 2008 and
   December 31, 2007, respectively)                   383,428      357,027
  Investments in previously charged-off
   receivables                                         25,122       14,523
  Investments in securities                             5,899       27,714
Deferred costs, net                                    11,994       14,923
Property at cost, net of depreciation                  63,023       84,466
Investments in equity-method investees                 59,764       63,023
Intangibles, net                                        6,998        8,248
Goodwill                                               96,016       97,169
Prepaid expenses and other assets                      63,621       45,247
Assets held for sale                                    3,643        8,735
                                                  -----------  -----------
Total assets                                      $ 1,809,154  $ 1,874,180
                                                  ===========  ===========


Liabilities
Accounts payable and accrued expenses             $   123,534  $   159,396
Notes payable and other borrowings                    236,855      235,591
Convertible senior notes                              500,000      550,000
Deferred revenue primarily from forward flow
 agreement                                             23,723       33,277
Current and deferred income tax liabilities           140,783       70,232
Liabilities related to assets held for sale               172          373
                                                  -----------  -----------
Total liabilities                                   1,025,067    1,048,869

Minority interests                                     30,767       32,732

Shareholders' equity
Common stock, no par value, 150,000,000 shares
 authorized: 60,415,700 shares issued and
 51,655,556 shares outstanding at June 30, 2008
 (including 3,651,069 loaned shares to be
 returned); and 61,938,533 shares issued and
 53,055,505 shares outstanding at December 31,
 2007 (including 5,677,950 loaned shares,
 2,026,881 of which were returned subsequent
 to December 31, 2007 and the remainder of
 which are to be returned in the future)                    -            -
Additional paid-in capital                            409,881      409,964
Treasury stock, at cost, 8,760,144 and 8,883,028
 shares at June 30, 2008 and December 31,
 2007, respectively                                  (222,876)    (225,457)
Accumulated other comprehensive income                  1,454        1,637
Retained earnings                                     564,861      606,435
                                                  -----------  -----------

Total shareholders' equity                            753,320      792,579
                                                  -----------  -----------

Total liabilities and shareholders' equity        $ 1,809,154  $ 1,874,180
                                                  ===========  ===========





                  CompuCredit Corporation and Subsidiaries
              Condensed Consolidated Statements of Operations
                                (Unaudited)
                  (In thousands, except per share data)

                                                       For the Six Months
                       For the Three Months Ended             Ended
                     ===============================  ====================
                     June 30,   March 31,  June 30,   June 30,   June 30,
                       2008       2008       2007       2008       2007
                     ---------  ---------  ---------  ---------  ---------

Interest income:
  Consumer loans,
   including past
   due fees          $  24,866  $  22,916  $  94,123  $  47,782  $ 174,509
  Other                  1,390      2,083      6,847      3,473     12,344
                     ---------  ---------  ---------  ---------  ---------
Total interest
 income                 26,256     24,999    100,970     51,255    186,853
Interest expense       (10,375)   (11,474)   (17,079)   (21,849)   (32,863)
                     ---------  ---------  ---------  ---------  ---------
  Net interest income
   before fees and
   related income on
   non-securitized
   earning assets and
   provision for loan
   losses               15,881     13,525     83,891     29,406    153,990
  Fees and related
   income on non-
   securitized
   earning assets       50,680     55,289    162,650    105,969    326,890
  Provision for
   loan losses         (16,103)   (20,406)  (199,690)   (36,509)  (331,314)
                     ---------  ---------  ---------  ---------  ---------
Net interest income,
 fees and related
 income on
 non-securitized
 earning assets         50,458     48,408     46,851     98,866    149,566

Other operating
 income:
  Fees and related
   income on
   securitized
   earning assets      (61,115)    42,491     71,988    (18,624)    91,690
  Servicing income      44,868     48,286     27,191     93,154     46,086
  Ancillary and
   interchange
   revenues             15,710     15,421     18,563     31,131     30,324
  Gain on repurchase
   of convertible
   senior notes          28,424          -          -     28,424          -
  Equity in income of
   equity-method
   investees             6,982      8,474      9,580     15,456     19,299
                     ---------  ---------  ---------  ---------  ---------
  Total other
   operating income     34,869    114,672    127,322    149,541    187,399

Other operating
 expense:
  Salaries and
   benefits             17,908     18,779     17,616     36,687     35,929
  Card and loan
   servicing            69,989     76,438     74,655    146,427    140,725
  Marketing and
   solicitation         17,081     15,859     49,873     32,940     85,662
  Depreciation           7,405      9,954     10,093     17,359     19,687
  Other                 36,307     29,131     31,562     65,438     60,658
                     ---------  ---------  ---------  ---------  ---------
Total other
 operating expense     148,690    150,161    183,799    298,851    342,661
                     ---------  ---------  ---------  ---------  ---------
(Loss) income from
 continuing
 operations before
 minority interests
 and income taxes      (63,363)    12,919     (9,626)   (50,444)    (5,696)
Minority interests         518     (2,019)      (794)    (1,501)    (1,506)
                     ---------  ---------  ---------  ---------  ---------
(Loss) income from
 continuing
 operations before
 income taxes          (62,845)    10,900    (10,420)   (51,945)    (7,202)
Income tax benefit
 (expense)              20,070     (5,387)     3,819     14,683      2,732
                     ---------  ---------  ---------  ---------  ---------
(Loss) income from
 continuing
 operations            (42,775)     5,513     (6,601)   (37,262)    (4,470)
Discontinued
 operations:
  Loss from
   discontinued
   operations before
   income tax benefit   (3,300)    (4,685)    (6,793)    (7,985)   (13,942)
  Income tax
   benefit               1,155      1,640      2,378      2,795      4,880
                     ---------  ---------  ---------  ---------  ---------
Loss from
 discontinued
 operations             (2,145)    (3,045)    (4,415)    (5,190)    (9,062)
                     ---------  ---------  ---------  ---------  ---------
Net (loss) income    $ (44,920) $   2,468  $ (11,016) $ (42,452) $ (13,532)
                     =========  =========  =========  =========  =========

(Loss) income from
 continuing
 operations per
 common
 share--basic        $   (0.91) $    0.12  $   (0.14) $   (0.80) $   (0.09)
                     =========  =========  =========  =========  =========
(Loss) income from
 continuing
 operations per
 common
 share--diluted      $   (0.91) $    0.12  $   (0.14) $   (0.80) $   (0.09)
                     =========  =========  =========  =========  =========

Loss from
 discontinued
  operations per
  common
  share--basic       $   (0.05) $   (0.07) $   (0.09) $   (0.11) $   (0.18)
                     =========  =========  =========  =========  =========
Loss from
 discontinued
 operations per
 common
 share--diluted      $   (0.05) $   (0.07) $   (0.09) $   (0.11) $   (0.18)
                     =========  =========  =========  =========  =========

Net (loss) income
  per common
  share--basic       $   (0.96) $    0.05  $   (0.23) $   (0.91) $   (0.27)
                     =========  =========  =========  =========  =========
Net (loss) income
 per common
 share--diluted      $   (0.96) $    0.05  $   (0.23) $   (0.91) $   (0.27)
                     =========  =========  =========  =========  =========





                 CompuCredit Corporation and Subsidiaries
                          Business Segment Data
                                (Unaudited)
                              (In thousands)


                          Investments
                             in
                          Previously
                           Charged-
Three Months                Off     Retail
 Ended           Credit    Receiva- Micro-     Auto
 June 30, 2008   Cards      bles     Loans    Finance   Other     Total
               ==========  ======= ========  ========  =======  ==========
Net interest
 income, fees
 and related
 (loss) income
 on non-securitized
 earning
 assets        $   (4,969) $13,284 $ 15,234  $ 19,857  $ 7,052  $   50,458
               ==========  ======= ========  ========  =======  ==========
Total other
 operating
 income        $   34,459  $   410 $      -  $      -  $     -  $   34,869
               ==========  ======= ========  ========  =======  ==========
(Loss) income
 from
 continuing
 operations
 before income
 taxes         $  (72,304) $ 7,364 $  2,785  $   (762) $    72  $  (62,845)
               ==========  ======= ========  ========  =======  ==========
Loss from
 discontinued
 operations
 before income
 taxes         $        -  $     - $ (2,851) $      -  $  (449) $   (3,300)
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 gross         $    4,850  $25,992 $ 31,912  $387,137  $18,981  $  468,872
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 net           $    4,850  $20,818 $ 26,934  $317,153  $13,673  $  383,428
               ==========  ======= ========  ========  =======  ==========
Total assets   $1,191,195  $59,117 $ 97,902  $395,595  $65,345  $1,809,154
               ==========  ======= ========  ========  =======  ==========


                          Investments
                             in
                          Previously
                           Charged-
Three Months                Off      Retail
 Ended           Credit    Receiva-  Micro-    Auto
 June 30, 2007   Cards      bles     Loans    Finance   Other     Total
               ==========  ======= ========  ========  =======  ==========

Net interest
 income, fees
 and related
 (loss) income
 on non-securitized
 earning
 assets        $   (1,678) $15,630 $ 19,990  $ 10,901  $ 2,008  $   46,851
               ==========  ======= ========  ========  =======  ==========
Total other
 operating
 income        $  126,268  $   467 $      -  $    587  $     -  $  127,322
               ==========  ======= ========  ========  =======  ==========
(Loss) income
 from
 continuing
 operations
 before income
 taxes         $  (23,563) $10,909 $  6,692  $ (3,063) $(1,395) $  (10,420)
               ==========  ======= ========  ========  =======  ==========
Loss from
 discontinued
 operations
 before income
 taxes         $        -  $     - $ (4,023) $      -  $(2,770) $   (6,793)
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 gross         $  956,830  $16,137 $ 70,402  $286,721  $12,917  $1,343,007
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 net           $  552,765  $12,760 $ 67,004  $268,250  $10,124  $  910,903
               ==========  ======= ========  ========  =======  ==========
Total assets   $1,498,255  $40,131 $201,467  $352,982  $82,409  $2,175,244
               ==========  ======= ========  ========  =======  ==========


                          Investments
                             in
                          Previously
                           Charged-
Six Months                   Off     Retail
 Ended           Credit    Receiva-  Micro-     Auto
 June 30, 2008   Cards      bles     Loans    Finance   Other     Total
               ==========  ======= ========  ========  =======  ==========
Net interest
 income, fees
 and related
 (loss) income
 on non-securitized
 earning
 assets        $  (13,429) $35,294 $ 32,119  $ 35,669  $ 9,213  $   98,866
               ==========  ======= ========  ========  =======  ==========
Total other
 operating
 income        $  148,590  $   755 $      -  $    196  $     -  $  149,541
               ==========  ======= ========  ========  =======  ==========
(Loss) income
 from
 continuing
 operations
 before income
 taxes         $  (74,486) $23,423 $  7,217  $ (4,522) $(3,577) $  (51,945)
               ==========  ======= ========  ========  =======  ==========
Loss from
 discontinued
 operations
 before income
 taxes         $        -  $     - $ (7,036) $      -  $  (949) $   (7,985)
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 gross         $    4,850  $25,992 $ 31,912  $387,137  $18,981  $  468,872
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 net           $    4,850  $20,818 $ 26,934  $317,153  $13,673  $  383,428
               ==========  ======= ========  ========  =======  ==========
Total assets   $1,191,195  $59,117 $ 97,902  $395,595  $65,345  $1,809,154
               ==========  ======= ========  ========  =======  ==========


                         Investments
                             in
                          Previously
                           Charged-
Six Months                  Off      Retail
 Ended           Credit    Receiva-  Micro-     Auto
 June 30, 2007   Cards      bles     Loans    Finance   Other     Total
               ==========  ======= ========  ========  =======  ==========
Net interest
 income, fees
 and related
 income on
 non-securitized
 earning
 assets        $   53,540  $33,360 $ 38,165  $ 22,493  $ 2,008  $  149,566
               ==========  ======= ========  ========  =======  ==========
Total other
 operating
 income        $  185,484  $   783 $      -  $  1,132  $     -  $  187,399
               ==========  ======= ========  ========  =======  ==========
(Loss) income
 from
 continuing
 operations
 before income
 taxes         $  (31,703) $22,348 $ 10,770  $ (3,656) $(4,961) $   (7,202)
               ==========  ======= ========  ========  =======  ==========
Loss from
 discontinued
 operations
 before income
 taxes         $        -  $     - $ (7,090) $      -  $(6,852) $  (13,942)
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 gross         $  956,830  $16,137 $ 70,402  $286,721  $12,917  $1,343,007
               ==========  ======= ========  ========  =======  ==========
Loans and fees
 receivable,
 net           $  552,765  $12,760 $ 67,004  $268,250  $10,124  $  910,903
               ==========  ======= ========  ========  =======  ==========
Total assets   $1,498,255  $40,131 $201,467  $352,982  $82,409  $2,175,244
               ==========  ======= ========  ========  =======  ==========



                     CompuCredit Corporation and Subsidiaries
 Managed Earnings and Reconciliation of Reported GAAP Net Income to Managed
                                 Earnings
                                (Unaudited)
                  (In thousands, except per share data)


                                   For The Three Months Ended
                               ----------------------------------
                                June 30,   March 31,    June 30,
                                  2008        2008        2007
                               ----------  ----------  ----------

GAAP net (loss) income as
 reported                      $  (44,920) $    2,468  $  (11,016)
Securitization adjustment, net
 of tax                           (53,049)   (102,348)    (18,448)
Provision to charge off
 adjustment, net of tax            (3,023)     (5,393)     41,747
                               ----------  ----------  ----------
Managed net loss               $ (100,992) $ (105,273) $   12,283
                               ==========  ==========  ==========
Managed net loss per common
 share                         $    (2.16) $    (2.25) $     0.25
                               ==========  ==========  ==========


                              For the Six Months Ended
                               ----------------------
                                June 30,    June 30,
                                  2008        2007
                               ----------  ----------
GAAP net (loss) income as
 reported                      $  (42,452) $  (13,532)
Securitization adjustment, net
 of tax                          (155,397)    (26,390)
Provision to charge off
 adjustment, net of tax            (8,416)     42,746
                               ----------  ----------
Managed net loss               $ (206,265) $    2,824
                               ==========  ==========
Managed net loss per common
 share                         $    (4.41) $     0.06
                               ==========  ==========

                                      For The Three Months
                                          June 30, 2008
                               ----------------------------------
                                  GAAP     Adjustments  Managed
                               ----------  ----------  ----------
Net interest margin on loans
 receivable                    $   24,866  $   93,964  $  118,830
Net interest expense               (8,985)      3,368      (5,617)
Provision / charge offs           (16,103)   (160,080)   (176,183)
Other operating income             85,549     (29,709)     55,840
Marketing expense                 (17,081)          -     (17,081)
Ancillary product expense            (231)          -        (231)
Operating expenses               (131,378)      3,722    (127,656)
Minority interests                    518        (518)          -
                               ----------  ----------  ----------
Pre-tax (loss) income from
 continuing operations            (62,845)    (89,253)   (152,098)
Income tax benefit (expense)       20,070      33,164      53,234
                               ----------  ----------  ----------
(Loss) income from continuing
 operations                       (42,775)    (56,089)    (98,864)
                               ----------  ----------  ----------
Pre-tax discontinued
 operations loss                   (3,300)         26      (3,274)
Income tax benefit of
 discontinued operations            1,155          (9)      1,146
                               ----------  ----------  ----------
Loss from discontinued
 operations                        (2,145)         17      (2,128)
                               ----------  ----------  ----------
Net (loss) income              $  (44,920)    (56,072) $ (100,992)
                               ==========  ==========  ==========

Diluted weighted average
 Shares outstanding                46,785                  46,785
                               ----------  ----------  ----------
(Loss) income from continuing
 operations per common share   $    (0.91) $    (1.20) $    (2.11)
                               ==========  ==========  ==========
Loss from discontinued
 operations per common share   $    (0.05) $        -  $    (0.05)
                               ==========  ==========  ==========
Net (loss) income per common
 share                         $    (0.96) $    (1.20) $    (2.16)
                               ==========  ==========  ==========

Gross loans and fees
 receivable                    $  468,872  $3,112,405  $3,581,277
                               ==========  ==========  ==========


                                       For The Three Months
                                           June 30, 2007
                               ----------------------------------
                                  GAAP     Adjustments  Managed
                               ----------  ----------  ----------
Net interest margin on loans
 receivable                    $   94,123  $   84,695  $  178,818
Net interest expense              (10,232)      8,009      (2,223)
Provision / charge offs          (199,690)    114,787     (84,903)
Other operating income            289,972    (178,383)    111,589
Marketing expense                 (49,873)          -     (49,873)
Ancillary product expense            (593)         (2)       (595)
Operating expenses               (133,333)      5,063    (128,270)
Minority interests                   (794)        794           -
                               ----------  ----------  ----------
Pre-tax (loss) income from
 continuing operations            (10,420)     34,963      24,543
Income tax benefit (expense)        3,819     (12,598)     (8,779)
                               ----------  ----------  ----------
(Loss) income from continuing
 operations                        (6,601)     22,365      15,764
                               ----------  ----------  ----------
Pre-tax discontinued
 operations loss                   (6,793)      1,438      (5,355)
Income tax benefit of
 discontinued operations            2,378        (504)      1,874
                               ----------  ----------  ----------
Loss from discontinued
 operations                        (4,415)        934      (3,481)
                               ----------  ----------  ----------
Net (loss) income              $  (11,016)     23,299  $   12,283
                               ==========  ==========  ==========

Diluted weighted average
 Shares outstanding                48,485                  49,069
                               ----------  ----------  ----------
(Loss) income from continuing
 operations per common share   $    (0.14) $     0.46  $     0.32
                               ==========  ==========  ==========
Loss from discontinued
 operations per common share   $    (0.09) $     0.02  $    (0.07)
                               ==========  ==========  ==========
Net (loss) income per common
 share                         $    (0.23) $     0.48  $     0.25
                               ==========  ==========  ==========

Gross loans and fees
 receivable                    $1,343,007  $2,526,915  $3,869,922
                               ==========  ==========  ==========



                                   For The Six Months Ended
                                         June 30, 2008
                               ----------------------------------
                                  GAAP    Adjustments   Managed
                               ----------  ----------  ----------
Net interest margin on loans
 receivable                    $   47,782  $  206,672  $  254,454
Net interest expense              (18,376)      7,252     (11,124)
Provision / charge offs           (36,509)   (323,878)   (360,387)
Other operating income            255,510    (151,996)    103,514
Marketing expense                 (32,940)          -     (32,940)
Ancillary product expense            (575)          -        (575)
Operating expenses               (265,336)      6,950    (258,386)
Minority interests                 (1,501)      1,501           -
                               ----------  ----------  ----------
Pre-tax (loss) income from
 continuing operations            (51,945)   (253,499)   (305,444)
Income tax benefit (expense)       14,683      90,159     104,842
                               ----------  ----------  ----------
(Loss) income from continuing
 operations                       (37,262)   (163,340)   (200,602)
                               ----------  ----------  ----------
Pre-tax discontinued
 operations loss                   (7,985)       (727)     (8,712)
Income tax benefit of
 discontinued operations            2,795         254       3,049
                               ----------  ----------  ----------
Loss from discontinued
 operations                        (5,190)       (473)     (5,663)
                               ----------  ----------  ----------
Net (loss) income              $  (42,452)   (163,813) $ (206,265)
                               ==========  ==========  ==========

Diluted weighted average
 Shares outstanding                46,763                  46,763
                               ----------  ----------  ----------
(Loss) income from continuing
 operations per common share   $    (0.80) $    (3.49) $    (4.29)
                               ==========  ==========  ==========
Loss from discontinued
 operations per common share   $    (0.11) $    (0.01) $    (0.12)
                               ==========  ==========  ==========
Net (loss) income per common
 share                         $    (0.91) $    (3.50) $    (4.41)
                               ==========  ==========  ==========

Gross loans and fees
 receivable                    $  468,872  $3,112,405  $3,581,277
                               ==========  ==========  ==========
                               ==========  ==========  ==========


                                    For The Six Months Ended
                                          June 30, 2007
                               ----------------------------------
                                  GAAP     Adjustments  Managed
                               ----------  ----------  ----------
Net interest margin on loans
 receivable                    $  174,509  $  133,883  $  308,392
Net interest expense              (20,519)     14,846      (5,673)
Provision / charge offs          (331,314)    158,902    (172,412)
Other operating income            514,289    (292,756)    221,533
Marketing expense                 (85,662)          -     (85,662)
Ancillary product expense          (1,078)          -      (1,078)
Operating expenses               (255,921)      7,888    (248,033)
Minority interests                 (1,506)      1,506           -
                               ----------  ----------  ----------
Pre-tax (loss) income from
 continuing operations             (7,202)     24,269      17,067
Income tax benefit (expense)        2,732      (8,748)     (6,016)
                               ----------  ----------  ----------
(Loss) income from continuing
 operations                        (4,470)     15,521      11,051
                               ----------  ----------  ----------
Pre-tax discontinued
 operations loss                  (13,942)      1,285     (12,657)
Income tax benefit of
 discontinued operations            4,880        (450)      4,430
                               ----------  ----------  ----------
Loss from discontinued
 operations                        (9,062)        835      (8,227)
                               ----------  ----------  ----------
Net (loss) income              $  (13,532)     16,356  $    2,824
                               ==========  ==========  ==========

Diluted weighted average
 Shares outstanding                49,369                  49,988
                               ----------  ----------  ----------
(Loss) income from continuing
 operations per common share   $    (0.09) $     0.31  $     0.22
                               ==========  ==========  ==========
Loss from discontinued
 operations per common share   $    (0.18) $     0.02  $    (0.16)
                               ==========  ==========  ==========
Net (loss) income per common
 share                         $    (0.27) $     0.33  $     0.06
                               ==========  ==========  ==========

Gross loans and fees
 receivable                    $1,343,007  $2,526,915  $3,869,922
                               ==========  ==========  ==========
                               ==========  ==========  ==========


                                  For The Three Months Ended
                                         March 31, 2008
                               ----------------------------------
                                  GAAP    Adjustments   Managed
                               ----------  ----------  ----------
Net interest margin on loans
 receivable                    $   22,916  $  112,708  $  135,624
Net interest expense               (9,391)      3,884      (5,507)
Provision / charge offs           (20,406)   (163,798)   (184,204)
Other operating income            169,961    (122,287)     47,674
Marketing expense                 (15,859)          -     (15,859)
Ancillary product expense            (344)          -        (344)
Operating expenses               (133,958)      3,228    (130,730)
Minority interests                 (2,019)      2,019           -
                               ----------  ----------  ----------
Pre-tax income (loss) from
 continuing operations             10,900    (164,246)   (153,346)
Income tax (expense) benefit       (5,387)     56,995      51,608
                               ----------  ----------  ----------
Income (loss) from continuing
 operations                         5,513    (107,251)   (101,738)
                               ----------  ----------  ----------
Pre-tax discontinued
 operations loss                   (4,685)       (753)     (5,438)
Income tax benefit of
 discontinued operations            1,640         263       1,903
                               ----------  ----------  ----------
Loss from discontinued
 operations                        (3,045)       (490)     (3,535)
                               ----------  ----------  ----------
Net income (loss)              $    2,468  $ (107,741) $ (105,273)
                               ==========  ==========  ==========

Diluted weighted average
 Shares outstanding                46,839                  46,742
                               ----------  ----------  ----------
Income (loss) from continuing
 operations per common share   $     0.12  $    (2.29) $    (2.17)
                               ==========  ==========  ==========
Loss from discontinued
 operations per common share   $    (0.07) $    (0.01) $    (0.08)
                               ==========  ==========  ==========
Net income (loss) per common
 share                         $     0.05  $    (2.30) $    (2.25)
                               ==========  ==========  ==========

Gross loans and fees
 receivable                    $  447,749  $3,365,291  $3,813,040
                               ==========  ==========  ==========

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