SOURCE: CompuCredit

November 05, 2007 16:14 ET

CompuCredit Reports Third Quarter Results

ATLANTA, GA--(Marketwire - November 5, 2007) - CompuCredit (NASDAQ: CCRT) reported third quarter 2007 managed earnings of $46.5 million, or $0.95 per fully diluted share, as compared to managed earnings of $53.4 million, or $1.07 per fully diluted share for the third quarter of 2006.

Under GAAP, CompuCredit reported a third quarter 2007 net loss of $53.2 million, or $1.10 per fully diluted common share, as compared to net income of $38.8 million, or $0.78 per common share for the third quarter of 2006.

Third quarter 2007 results include an after-tax net loss of $21.2 million (or $0.43 per fully diluted share) resulting from investments in third-party asset-backed securities owned by one of CompuCredit's subsidiaries.

"CompuCredit once again experienced tremendous account growth as we added over 500,000 net new customer accounts through a variety of distribution channels," said David G. Hanna, CompuCredit's Chairman and Chief Executive Officer. "We also executed $500 million in capital markets funding during the quarter and continue to focus on ways to deploy our capital in ways that generate strong returns for our shareholders."

CompuCredit's net interest margin was 18.6 percent in the third quarter of 2007, as compared to 26.0 percent for the third quarter of 2006 and 18.9 percent in the second quarter of this year. The other income ratio was 17.2 percent in the third quarter of 2007, as compared to 15.7 percent for the third quarter of 2006 and 12.3 percent in the previous quarter. The adjusted charge-off rate was 10.2 percent in the third quarter of 2007, as compared to 9.4 percent for the third quarter of 2006 and 9.2 percent in the previous quarter. As of September 30, 2007, the 60-plus day delinquency rate was 14.6 percent, as compared to 14.0 percent as of September 30, 2006 and 13.2 percent as of 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 on-balance-sheet, 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 this "managed basis." It is also important to analysts, investors and others that CompuCredit provide selected metrics and data on a managed basis because this allows a more accurate 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 for 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 a majority of CompuCredit's loans and fees receivable (i.e., all but $1.7 billion of GAAP loans and fees receivable at gross face value) had been sold in securitization transactions as of September 30, 2007; (2) an understanding that CompuCredit's managed receivables data are based on billings and actual charge offs as reported to us 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 CompuCredit manages for its equity-method investees; and (4) removal of CompuCredit's minority interest holders' interests in the managed receivables underlying CompuCredit's GAAP consolidated results.

Further details regarding CompuCredit's third quarter 2007 financial performance will be discussed during management's conference call on Monday, November 5, 2007 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
                                      September      June       September
                                         30,          30,          30,
                                        2007         2007         2006
                                     -----------  -----------  -----------

Common Share Statistics
Net (Loss) Income Per Common
 Share--Basic                        $     (1.10)  $    (0.23) $      0.80
Net (Loss) Income Per Common
 Share--Diluted                      $     (1.10) $     (0.23) $      0.78
Book Value Per Common Share
 Outstanding (Period End)            $     16.23  $     17.20  $     17.65
Stock Price Per Share (Period End)   $     21.71  $     35.02  $     30.21
Total Market Capitalization (Period
 End)                                $ 1,068,393  $ 1,722,564  $ 1,491,052
Shares Outstanding (Period End)(1)        49,212       49,188       49,356
Weighted Average Shares
 Outstanding--Basic                       48,506       48,485       48,742
Weighted Average Shares
 Outstanding--Diluted                     48,506       48,485       50,022

Average Managed Receivables
 Statistics
Average Managed Receivables          $ 4,046,715  $ 3,806,816  $ 2,719,653
Average Shareholders' Equity         $   822,453  $   847,573  $   850,549
GAAP Return on Average Managed
 Receivables                                -5.3%        -1.2%         5.7%
GAAP Return on Average Equity (ROE)        -25.9%        -5.2%        18.3%
Net Interest Margin                         18.6%        18.9%        26.0%
Other Income Ratio                          17.2%        12.3%        15.7%
Net Charge-Off Rate                         13.9%        16.4%        10.1%
Adjusted Charge-Off Rate                    10.2%         9.2%         9.4%
Adjusted Charge Offs                 $   102,778  $    87,200  $    63,596
Risk Adjusted Margin                        25.3%        21.8%        32.0%
Operating Ratio                             14.1%        14.4%        15.9%

Period-End Managed Receivables
 Statistics
Total Managed Receivables            $ 4,173,979  $ 3,897,701  $ 2,754,125
Delinquency Rate (60+ days)                 14.6%        13.2%        14.0%
Number of Accounts                         5,528        4,999        3,773
Shareholders' Equity                 $   798,736  $   846,169  $   871,217
Equity to Managed Receivables Ratio         19.1%        21.7%        31.6%


(1) Shares outstanding balances exclude 5,677,950 shares that are
    outstanding at September, 30, 2007, June 30, 2007 and September 30,
    2006 but that are returnable to CompuCredit under the terms of a share
    lending arrangement.


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


                                              September 30,  December 31,
                                                  2007           2006
                                              -------------  -------------
                                               (Unaudited)
Assets
Cash and cash equivalents (including
 restricted cash of $163,083 at September 30,
 2007 and $15,104 at December 31, 2006)       $     362,300  $     110,412
Securitized earning assets                          617,691        801,715
Non-securitized earning assets, net:
  Loans and fees receivable, net of
   $187,631 and $118,005 in deferred
   revenue and $422,281 and $225,319 in
   allowances for uncollectible loans
   and fees receivable at September 30,
   2007 and December 31, 2006, respectively       1,053,859        653,716
  Investments in previously charged-off
   receivables                                       13,233         12,871
  Investments in securities                          35,192        141,657
  U.S. government securities resale
   agreements                                             -         50,577
Deferred costs, net                                  26,602         25,762
Software, furniture, fixtures and equipment,
 net                                                 92,694         63,986
Investments in equity-method investees               65,937         83,038
Intangibles, net                                     11,542         12,382
Goodwill                                            152,504        120,115
   Prepaid expenses and other assets                 47,012         37,666
                                              -------------  -------------
Total assets                                  $   2,478,566  $   2,113,897
                                              =============  =============


Liabilities
Accounts payable and accrued expenses         $     135,153  $     112,453
Notes payable and other borrowings                  864,919        358,694
Convertible senior notes                            550,000        550,000
Deferred revenue, primarily from forward flow
 agreement                                           41,764         55,260
Current and deferred income tax liabilities          51,917        112,983
                                              -------------  -------------
Total liabilities                                 1,643,753      1,189,390

Minority interests                                   36,077         40,567

Shareholders' equity
Common stock, no par value, 150,000,000
 shares authorized: 61,924,906 shares
 issued and 54,890,292 shares outstanding at
 September 30, 2007 (including 5,677,950
 loaned shares to be returned); and
 59,464,216 shares issued and 55,093,686
 shares outstanding at December 31, 2006
 (including 5,677,950 loaned shares to be
 returned)                                                -              -
Additional paid-in capital                          410,919        321,010
Treasury stock, at cost, 7,034,614 and
 4,370,530 shares at September 30, 2007
 and December 31, 2006, respectively               (207,818)      (124,084)
Warrants                                                  -         25,610
Accumulated other comprehensive income                4,896             12
Retained earnings                                   590,739        661,392
                                              -------------  -------------

 Total shareholders' equity                         798,736        883,940
                                              -------------  -------------

 Total liabilities and shareholders' equity   $   2,478,566  $   2,113,897
                                              =============  =============


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


                              For The Three              For The Nine
                              Months Ended               Months Ended
                     ===============================  ====================
                     September   June      September  September  September
                        30,        30,        30,        30,        30,
                       2007       2007       2006       2007       2006
                     ---------  ---------  ---------  ---------  ---------
Interest income:
  Consumer loans,
   including past
   due fees          $ 125,029  $  94,741  $  77,003  $ 300,404  $ 195,782
  Other                  4,702      6,853      4,524     17,065     13,479
                     ---------  ---------  ---------  ---------  ---------
Total interest
 income                129,731    101,594     81,527    317,469    209,261
Interest expense       (22,459)   (17,079)   (12,573)   (55,322)   (36,944)
                     ---------  ---------  ---------  ---------  ---------
  Net interest income
   before fees and
   related income on
   non-securitized
   earning assets and
   provision for loan
   losses              107,272     84,515     68,954    262,147    172,317
  Fees and related
   income on
   non-securitized
   earning assets      217,709    166,881    152,188    555,741    416,327
  Provision for
   loan losses        (302,253)  (203,219)  (135,040)  (639,912)  (340,802)
                     ---------  ---------  ---------  ---------  ---------
Net interest income,
 fees and related
 income on
 non-securitized
 earning assets         22,728     48,177     86,102    177,976    247,842

Other operating
 income:
  Fees and related
   income on
   securitized
   earning assets       29,642     71,988     50,837    121,332    146,446
  Servicing income      26,273     27,191     19,908     72,359     71,289
  Ancillary and
   interchange
   revenues             19,197     18,563      9,857     49,521     29,095
  Equity in income of
   equity-method
   investees             7,648      9,580     42,164     26,947     93,711
                     ---------  ---------  ---------  ---------  ---------
  Total other
  operating income      82,760    127,322    122,766    270,159    340,541
Other operating
 expense:
  Salaries and
   benefits             20,431     17,841     16,409     56,881     43,828
  Card and loan
   servicing            80,213     78,959     62,571    228,644    183,548
  Marketing and
   solicitation         39,855     50,907     26,348    127,403     79,500
  Depreciation           9,242     10,624      7,875     29,985     22,749
  Goodwill impairment        -          -          -          -     10,546
  Other                 37,647     33,587     28,662    106,760     83,617
                     ---------  ---------  ---------  ---------  ---------
Total other
 operating expense     187,388    191,918    141,865    549,673    423,788
                     ---------  ---------  ---------  ---------  ---------
(Loss) income before
 minority interests
 and income taxes      (81,900)   (16,419)    67,003   (101,538)   164,595
Minority interests      (1,257)      (794)    (6,363)    (2,763)   (11,829)
                     ---------  ---------  ---------  ---------  ---------
(Loss) income before
 income taxes          (83,157)   (17,213)    60,640   (104,301)   152,766
Income tax benefit
 (expense)              29,936      6,197    (21,830)    37,548    (54,996)
                     ---------  ---------  ---------  ---------  ---------
Net (loss) income    $ (53,221) $ (11,016) $  38,810  $ (66,753) $  97,770
                     =========  =========  =========  =========  =========

  Net (loss) income
   per common
   share--basic      $   (1.10) $   (0.23) $    0.80  $   (1.36) $    2.01
                     =========  =========  =========  =========  =========
  Net (loss) income
   per common
   share--diluted    $   (1.10) $   (0.23) $    0.78  $   (1.36) $    1.94
                     =========  =========  =========  =========  =========



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


                                                  Investments
                                                      in
                                                  Previously
Three Months Ended September 30,       Credit     Charged Off    Retail
 2007                                   Cards     Receivables  Micro-Loans
                                     ===========  ============ ===========
Net interest income, fees and
 related income (loss) on
 non-securitized earning assets      $   (22,036) $     15,565 $    20,754
                                     ===========  ============ ===========
Total other operating income         $    81,692  $        365 $         -
                                     ===========  ============ ===========
(Loss) income before income taxes    $   (77,172) $     10,071 $       888
                                     ===========  ============ ===========
Loans and fees receivable, gross     $ 1,227,130  $     18,755 $    93,734
                                     ===========  ============ ===========
Loans and fees receivable, net       $   669,742  $     14,297 $    82,592
                                     ===========  ============ ===========
Total assets                         $ 1,776,065  $     45,831 $   208,959
                                     ===========  ============ ===========

Three Months Ended September 30,        Auto
 2007                                  Finance       Other        Total
                                     ===========  ===========  ===========
Net interest income, fees and
 related income (loss) on
 non-securitized earning assets      $     4,879  $     3,566  $    22,728
                                     ===========  ===========  ===========
Total other operating income         $       703  $         -  $    82,760
                                     ===========  ===========  ===========
(Loss) income before income taxes    $   (11,710) $    (5,234) $   (83,157)
                                     ===========  ===========  ===========
Loans and fees receivable, gross     $   309,596  $    14,556  $ 1,663,771
                                     ===========  ===========  ===========
Loans and fees receivable, net       $   276,173  $    11,055  $ 1,053,859
                                     ===========  ===========  ===========
Total assets                         $   370,191  $    77,520  $ 2,478,566
                                     ===========  ===========  ===========

                                                  Investments
                                                      in
                                                  Previously
Three Months Ended September 30,       Credit     Charged Off    Retail
 2006                                   Cards     Receivables  Micro-Loans
                                     ===========  ============ ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $    38,963  $     12,410 $    23,883
                                     ===========  ============ ===========
Total other operating income         $   122,089  $        143 $       325
                                     ===========  ============ ===========
Income (loss) before income taxes    $    52,114  $      8,359 $     3,431
                                     ===========  ============ ===========
Loans and fees receivable, gross     $   577,251  $      9,043 $    86,073
                                     ===========  ============ ===========
Loans and fees receivable, net       $   341,776  $      6,909 $    76,879
                                     ===========  ============ ===========
Total assets                         $ 1,650,031  $     35,614 $   219,619
                                     ===========  ============ ===========

Three Months Ended September 30,         Auto
 2006                                   Finance      Other        Total
                                     ===========  ===========  ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $     9,259  $     1,587  $    86,102
                                     ===========  ===========  ===========
Total other operating income         $       209  $         -  $   122,766
                                     ===========  ===========  ===========
Income (loss) before income taxes    $     2,652  $    (5,916) $    60,640
                                     ===========  ===========  ===========
Loans and fees receivable, gross     $   145,718  $    11,104  $   829,189
                                     ===========  ===========  ===========
Loans and fees receivable, net       $   120,681  $     8,376  $   554,621
                                     ===========  ===========  ===========
Total assets                         $   164,025  $    34,435  $ 2,103,724
                                     ===========  ===========  ===========

                                                  Investments
                                                     in
                                                  Previously
                                       Credit     Charged Off    Retail
Nine Months Ended September 30, 2007    Cards     Receivables  Micro-Loans
                                     ===========  ============ ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $    30,525  $     48,925 $    64,691
                                     ===========  ============ ===========
Total other operating income         $   267,176  $      1,148 $         -
                                     ===========  ============ ===========
(Loss) income before income taxes    $  (108,875) $     32,419 $     4,568
                                     ===========  ============ ===========
Loans and fees receivable, gross     $ 1,227,130  $     18,755 $    93,734
                                     ===========  ============ ===========
Loans and fees receivable, net       $   669,742  $     14,297 $    82,592
                                     ===========  ============ ===========
Total assets                         $ 1,776,065  $     45,831 $   208,959
                                     ===========  ============ ===========

                                        Auto
Nine Months Ended September 30, 2007   Finance       Other        Total
                                     ===========  ===========  ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $    27,372  $     6,463  $   177,976
                                     ===========  ===========  ===========
Total other operating income         $     1,835  $         -  $   270,159
                                     ===========  ===========  ===========
(Loss) income before income taxes    $   (15,366) $   (17,047) $  (104,301)
                                     ===========  ===========  ===========
Loans and fees receivable, gross     $   309,596  $    14,556  $ 1,663,771
                                     ===========  ===========  ===========
Loans and fees receivable, net       $   276,173  $    11,055  $ 1,053,859
                                     ===========  ===========  ===========
Total assets                         $   370,191  $    77,520  $ 2,478,566
                                     ===========  ===========  ===========

                                                  Investments
                                                       in
                                                  Previously
                                       Credit     Charged Off    Retail
Nine Months Ended September 30, 2006    Cards     Receivables  Micro-Loans
                                     ===========  ============ ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $   131,588  $     32,923 $    55,840
                                     ===========  ============ ===========
Total other operating income         $   333,744  $        312 $     5,840
                                     ===========  ============ ===========
Income (loss) before income taxes    $   164,299  $     20,380 $   (14,333)
                                     ===========  ============ ===========
Loans and fees receivable, gross     $   577,251  $      9,043 $    86,073
                                     ===========  ============ ===========
Loans and fees receivable, net       $   341,776  $      6,909 $    76,879
                                     ===========  ============ ===========
Total assets                         $ 1,650,031  $     35,614 $   219,619
                                     ===========  ============ ===========

                                        Auto
Nine Months Ended September 30, 2006   Finance        Other        Total
                                     ===========  ===========  ===========
Net interest income, fees and
 related income on non-securitized
 earning assets                      $    27,142  $       349  $   247,842
                                     ===========  ===========  ===========
Total other operating income         $       620  $        25  $   340,541
                                     ===========  ===========  ===========
Income (loss) before income taxes    $     6,686  $   (24,266) $   152,766
                                     ===========  ===========  ===========
Loans and fees receivable, gross     $   145,718  $    11,104  $   829,189
                                     ===========  ===========  ===========
Loans and fees receivable, net       $   120,681  $     8,376  $   554,621
                                     ===========  ===========  ===========
Total assets                         $   164,025  $    34,435  $ 2,103,724
                                     ===========  ===========  ===========



                 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            For The Nine Months
                               Months Ended                   Ended
                     ===============================  ====================
                      September   June      September  September  September
                         30,       30,         30,        30,        30,
                        2007      2007        2006       2007       2006
                     =========  =========  ========== =========  ==========

GAAP net (loss)
 income as reported  $ (53,221) $ (11,016) $   38,810 $ (66,753) $   97,770
Securitization
 adjustment, net of
 tax                    (2,368)   (18,448)      3,149   (28,758)     10,698
Provision to charge
 off adjustment, net
 of tax                102,083     41,747      11,415   144,829      48,532
                     ---------  ---------  ---------- ---------  ----------
Managed net (loss)
 income              $  46,494  $  12,283  $   53,374 $  49,318  $  157,000
                     =========  =========  ========== =========  ==========
Managed net (loss)
 income per common
 share               $    0.95  $    0.25  $     1.07 $    0.99  $     3.12
                     =========  =========  ========== =========  ==========


                                 For The Three Months Ended September
                                               30, 2007
                                 -------------------------------------
                                     GAAP     Adjustments    Managed
                                 -----------  -----------  -----------
Net interest margin on loans
 receivable                      $   125,029  $    63,547  $   188,576
Net interest expense                 (17,757)      13,828       (3,929)
Provision / charge offs             (302,253)     199,476     (102,777)
Other operating income               300,469     (126,270)     174,199
Marketing expense                    (39,855)           -      (39,855)
Ancillary product expense               (683)           -         (683)
Operating expenses                  (146,850)       3,966     (142,884)
Minority interests                    (1,257)       1,257            -
                                 -----------  -----------  -----------
Pre-tax net (loss) income            (83,157)     155,804       72,647
Income tax benefit (expense)          29,936      (56,089)     (26,153)
                                 -----------  -----------  -----------
Net (loss) income                $   (53,221) $    99,715  $    46,494
                                 ===========  ===========  ===========

Weighted average shares
 outstanding                          48,506       48,987       48,987
                                 -----------  -----------  -----------
Net (loss) income per common
 share                           $     (1.10) $      2.05  $      0.95
                                 ===========  ===========  ===========

Gross loans and fees receivable  $ 1,663,771  $ 2,510,208  $ 4,173,979
                                 ===========  ===========  ===========



                                 For The Three Months Ended September
                                               30, 2006
                                 -------------------------------------
                                    GAAP      Adjustments    Managed
                                 -----------  -----------  -----------
Net interest margin on loans
 receivable                      $    77,003  $    99,482  $   176,485
Net interest expense                  (8,049)       5,581       (2,468)
Provision / charge offs             (135,040)      71,472      (63,568)
Other operating income               274,954     (168,156)     106,798
Marketing expense                    (26,348)           -      (26,348)
Ancillary product expense               (720)           -         (720)
Operating expenses                  (114,797)       8,014     (106,783)
Minority interests                    (6,363)       6,363            -
                                 -----------  -----------  -----------
Pre-tax net (loss) income             60,640       22,756       83,396
Income tax benefit (expense)         (21,830)      (8,192)     (30,022)
                                 -----------  -----------  -----------
Net (loss) income                $    38,810  $    14,564  $    53,374
                                 ===========  ===========  ===========

Weighted average shares
 outstanding                          50,022       50,022       50,022
                                 -----------  -----------  -----------
Net (loss) income per common
 share                           $      0.78  $      0.29  $      1.07
                                 ===========  ===========  ===========

Gross loans and fees receivable  $   829,189  $ 1,924,936  $ 2,754,125
                                 ===========  ===========  ===========


                                      For The Nine Months Ended
                                          September 30, 2007
                                 -------------------------------------
                                     GAAP     Adjustments    Managed
                                 -----------  -----------  -----------
Net interest margin on loans
 receivable                      $   300,404  $   197,430  $   497,834
Net interest expense                 (38,257)      28,678       (9,579)
Provision / charge offs             (639,912)     359,644     (280,268)
Other operating income               825,900     (419,913)     405,987
Marketing expense                   (127,403)           -     (127,403)
Ancillary product expense             (1,761)           -       (1,761)
Operating expenses                  (420,509)      12,759     (407,750)
Minority interests                    (2,763)       2,763            -
                                 -----------  -----------  -----------
Pre-tax net (loss) income           (104,301)     181,361       77,060
Income tax benefit (expense)          37,548      (65,290)     (27,742)
                                 -----------  -----------  -----------
Net (loss) income                $   (66,753) $   116,071  $    49,318
                                 ===========  ===========  ===========

Weighted average shares
 outstanding                          49,078       49,687       49,687
                                 -----------  -----------  -----------
Net (loss) income per common
 share                           $     (1.36) $      2.34  $      0.99
                                 ===========  ===========  ===========

Gross loans and fees receivable  $ 1,663,771  $ 2,510,208  $ 4,173,979
                                 ===========  ===========  ===========


                                      For The Nine Months Ended
                                         September 30, 2006
                                 -------------------------------------
                                     GAAP     Adjustments    Managed
                                 -----------  -----------  -----------
Net interest margin on loans
 receivable                      $   195,782  $   291,303  $   487,085
Net interest expense                 (23,465)      14,307       (9,158)
Provision / charge offs             (340,802)     178,206     (162,596)
Other operating income               756,868     (419,897)     336,971
Marketing expense                    (79,500)           -      (79,500)
Ancillary product expense             (2,456)           -       (2,456)
Operating expenses                  (341,832)      16,798     (325,034)
Minority interests                   (11,829)      11,829            -
                                 -----------  -----------  -----------
Pre-tax net (loss) income            152,766       92,546      245,312
Income tax benefit (expense)         (54,996)     (33,316)     (88,312)
                                 -----------  -----------  -----------
Net (loss) income                $    97,770  $    59,230  $   157,000
                                 ===========  ===========  ===========

Weighted average shares
 outstanding                          50,307       50,307       50,307
                                 -----------  -----------  -----------
Net (loss) income per common
 share                           $      1.94  $      1.18  $      3.12
                                 ===========  ===========  ===========

Gross loans and fees receivable  $   829,189  $ 1,924,936  $ 2,754,125
                                 ===========  ===========  ===========


                                          For The Three Months Ended
                                               June 30, 2007
                                     -------------------------------------
                                         GAAP     Adjustments    Managed
                                     -----------  -----------  -----------
Net interest margin on loans
 receivable                          $    94,741  $    84,695  $   179,436
Net interest expense                     (10,226)       8,011       (2,215)
Provision / charge offs                 (203,219)     116,019      (87,200)
Other operating income                   294,203     (176,845)     117,358
Marketing expense                        (50,907)           -      (50,907)
Ancillary product expense                   (593)           -         (593)
Operating expenses                      (140,418)       3,732     (136,686)
Minority interests                          (794)         794            -
                                     -----------  -----------  -----------
Pre-tax net (loss) income                (17,213)      36,406       19,193
Income tax benefit (expense)               6,197      (13,107)      (6,910)
                                     -----------  -----------  -----------
Net (loss) income                    $   (11,016) $    23,299  $    12,283
                                     ===========  ===========  ===========

Weighted average shares outstanding       48,485       49,069       49,069
                                     -----------  -----------  -----------
Net income per common share          $     (0.23) $      0.48  $      0.25
                                     ===========  ===========  ===========

Gross loans and fees receivable      $ 1,360,080  $ 2,537,621  $ 3,897,701
                                     ===========  ===========  ===========

Contact Information