CompuCredit: CompuCredit Reports Fourth Quarter 2008 Results

ATLANTA, GA--(Marketwire - February 12, 2009) - CompuCredit (NASDAQ: [ CCRT ]) reported a fourth quarter 2008 GAAP net loss of $26.9 million, or $0.57 per fully diluted common share, which compares to fourth quarter 2007 GAAP earnings from continuing operations of $27.5 million, or $0.58 per fully diluted common share.

CompuCredit also reported fourth quarter 2008 managed earnings of $8.1 million, or $0.17 per fully diluted common share, which compares to fourth quarter 2007 managed losses from continuing operations of $16.0 million, or $0.34 per fully diluted common share.

"We are planning for economic uncertainty to continue through the remainder of 2009 and remain focused on capital preservation, account management, and expense reduction," said David G. Hanna, Chairman and CEO of CompuCredit.

CompuCredit's net interest margin was 13.8 percent in the fourth quarter of 2008, as compared to 17.8 percent for the fourth quarter of 2007 and 15.1 percent in the previous quarter. The adjusted charge-off rate was 14.2 percent in the fourth quarter of 2008, as compared to 13.2 percent for the fourth quarter of 2007 and 14.2 percent in the previous quarter. As of December 31, 2008, the 60-plus day delinquency rate was 16.3 percent, down from 18.4 percent as of December 31, 2007 and up from 13.1 percent as of September 30, 2008.

CompuCredit's GAAP and managed fourth quarter 2008 results include an $83.8 million pre-tax gain on the repurchase of convertible senior notes.

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 also is important to analysts, investors and others that CompuCredit provide 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 December 31, 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; and (4) removal of CompuCredit's minority interest holders' interests in the managed receivables underlying CompuCredit's GAAP consolidated results.

For further details regarding CompuCredit's fourth quarter 2008 financial performance, the media and public are invited to listen to management's pre-recorded fourth quarter 2008 earnings commentary, which will be available by 5:00 p.m. Eastern Standard Time on Thursday, February 12, 2009 via the Internet at [ www.compucredit.com ].

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 December September December 31, 2008 30, 2008 31, 2007 ----------- ----------- ----------- Common Share Statistics Net (Loss) Income From Continuing Operations Per Common Share: Basic $ (0.57) $ (0.66) $ 0.58 Diluted $ (0.57) $ (0.66) $ 0.58 Loss On Discontinued Operations Per Common Share: Basic N/A $ (0.03) $ (0.25) Diluted N/A $ (0.03) $ (0.25) Net (Loss) Income Per Common Share: Basic $ (0.57) $ (0.69) $ 0.33 Diluted $ (0.57) $ (0.69) $ 0.33 Book Value Per Common Share Outstanding (Period End) $ 13.87 $ 14.82 $ 16.73 Stock Price Per Common Share (Period End) $ 5.53 $ 3.92 $ 9.98 Total Market Capitalization (Period End) $ 265,410 $ 188,278 $ 472,832 Shares Outstanding (Period End)(1) 47,995 48,030 47,378 Weighted Average Shares Outstanding -- Basic 46,807 46,794 47,614 Weighted Average Shares Outstanding -- Diluted 46,807 46,794 47,860 Average Managed Receivables Statistics (2) Average Managed Receivables $ 3,318,998 $ 3,519,736 $ 4,150,117 Average Shareholders' Equity $ 688,905 $ 732,643 $ 795,658 GAAP Return On Average Managed Receivables -3.2% -3.5% 2.7% GAAP Return On Average Equity (ROE) -15.6% -16.9% 13.8% Net Interest Margin 13.8% 15.1% 17.8% Other Income Ratio 17.8% 11.3% 14.9% Net Charge-Off Rate 15.0% 15.2% 15.6% Adjusted Charge-Off Rate 14.2% 14.2% 13.2% Risk Adjusted Margin 16.8% 11.5% 18.9% Operating Ratio 14.1% 16.4% 19.3% Period-End Managed Receivables Statistics (2) Total Managed Receivables $ 3,121,682 $ 3,465,928 $ 4,136,430 Delinquency Rate (60+ days) 16.3% 13.1% 18.4% Number of Accounts 3,993 4,342 5,306 Shareholders' Equity $ 665,844 $ 711,965 $ 792,579 Equity to Managed Receivables Ratio 21.3% 20.5% 19.2% (1) Shares outstanding balances exclude 3,651,069 shares that are outstanding at December 31, 2008 and September 30, 2008 and exclude 5,677,950 shares that are outstanding at December 31, 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 Consolidated Balance Sheets (Dollars in thousands) December 31, December 31, 2008 2007 ----------- ----------- Assets Cash and cash equivalents (including restricted cash of $19,913 and $29,128 at December 31, 2008 and 2007, respectively) $ 94,428 $ 137,526 Securitized earning assets 813,793 1,015,579 Non-securitized earning assets, net: Loans and fees receivable, net (of $24,757 and $27,199 in deferred revenue and $55,753 and $51,489 in allowances for uncollectible loans and fees receivable at December 31, 2008 and 2007, respectively) 340,734 357,027 Investments in previously charged-off receivables 47,676 14,523 Investments in securities 4,678 27,714 Deferred costs, net 8,467 14,923 Property at cost, net of depreciation 48,297 84,466 Investments in equity-method investees 53,093 63,023 Intangibles, net 4,547 8,248 Goodwill 59,129 97,169 Prepaid expenses and other assets 52,575 45,247 Assets held for sale - 8,735 ----------- ----------- Total assets $ 1,527,417 $ 1,874,180 =========== =========== Liabilities Accounts payable and accrued expenses $ 120,235 $ 159,396 Notes payable and other borrowings 199,939 235,591 Convertible senior notes 389,851 550,000 Deferred revenue, primarily from forward flow agreement 23,492 33,277 Current and deferred income tax liabilities 103,178 70,232 Liabilities related to assets held for sale - 373 ----------- ----------- Total liabilities 836,695 1,048,869 Minority interests 24,878 32,732 Shareholders' equity Common stock, no par value, 150,000,000 shares authorized: 60,379,613 shares issued and 51,645,697 shares outstanding at December 31, 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 413,857 409,964 Treasury stock, at cost, 8,733,916 and 8,883,028 shares at December 31, 2008 and 2007, respectively (222,310) (225,457) Accumulated other comprehensive income (31,431) 1,637 Retained earnings 505,728 606,435 ----------- ----------- Total shareholders' equity 665,844 792,579 ----------- ----------- Total liabilities and shareholders' equity $ 1,527,417 $ 1,874,180 =========== =========== CompuCredit Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) For The Three Months Ended For The Year Ended ---------------------------------- ---------------------- December September December December December 31, 30, 31, 31, 31, 2008 2008 2007 2008 2007 ---------- ---------- ---------- ---------- ---------- (Unaudited)(Unaudited) (Unaudited) Interest income: Consumer loans, including past due fees $ 21,580 $ 23,556 $ 141,641 $ 92,918 $ 440,084 Other 627 971 5,641 5,071 22,682 ---------- ---------- ---------- ---------- ---------- Total interest income 22,207 24,527 147,282 97,989 462,766 Interest expense (10,783) (10,140) (26,194) (42,772) (81,516) ---------- ---------- ---------- ---------- ---------- Net interest income before fees and related income on non-securitized earning assets and provision for loan losses 11,424 14,387 121,088 55,217 381,250 Fees and related income on non-securitized earning assets 44,525 44,119 250,991 196,366 790,929 Provision for loan losses (18,470) (17,283) (330,921) (72,262) (958,858) ---------- ---------- ---------- ---------- ---------- Net interest income, fees and related income on non-securitized earning assets 37,479 41,223 41,158 179,321 213,321 Other operating income: Fees and related income on securitized earning assets (94,024) 4,143 180,154 (108,505) 301,486 Servicing income 44,192 44,537 24,585 181,883 96,944 Ancillary and interchange revenues 9,751 14,401 18,319 55,283 67,840 Gain on repurchase of convertible senior notes 83,816 - - 112,240 - Equity in income of equity-method investees 5,189 1,674 7,413 22,319 34,360 ---------- ---------- ---------- ---------- ---------- Total other operating income 48,924 64,755 230,471 263,220 500,630 Other operating expense: Salaries and benefits 14,340 16,407 18,274 67,434 74,371 Card and loan servicing 67,878 65,716 88,578 281,774 307,842 Marketing and solicitation 4,649 8,787 16,983 46,376 141,635 Depreciation 6,911 8,397 14,066 32,667 42,433 Goodwill impairment 1,704 29,164 48,449 30,868 48,449 Other 31,228 28,293 37,940 124,959 131,485 ---------- ---------- ---------- ---------- ---------- Total other operating expense 126,710 156,764 224,290 584,078 746,215 ---------- ---------- ---------- ---------- ---------- (Loss) income from continuing operations before minority interest and income taxes (40,307) (50,786) 47,339 (141,537) (32,264) Minority interest 3,616 30 1,163 2,145 (1,600) ---------- ---------- ---------- ---------- ---------- (Loss) income from continuing operations before income taxes (36,691) (50,756) 48,502 (139,392) (33,864) Income tax benefit (expense) 9,813 19,728 (20,975) 44,224 8,896 ---------- ---------- ---------- ---------- ---------- (Loss) income from continuing operations (26,878) (31,028) 27,527 (95,168) (24,968) Discontinued operations: Loss from discontinued operations before income tax benefit - (1,883) (18,108) (9,868) (40,043) Income tax benefit - 659 6,338 3,454 14,015 ---------- ---------- ---------- ---------- ---------- Loss from discontinued operations - (1,224) (11,770) (6,414) (26,028) ---------- ---------- ---------- ---------- ---------- Net (loss) income $ (26,878) $ (32,252) $ 15,757 $ (101,582) $ (50,996) ========== ========== ========== ========== ========== (Loss) income from continuing operations per common share -- basic $ (0.57) $ (0.66) $ 0.58 $ (2.03) $ (0.51) ========== ========== ========== ========== ========== (Loss) income from continuing operations per common share -- diluted $ (0.57) $ (0.66) $ 0.58 $ (2.03) $ (0.51) ========== ========== ========== ========== ========== Loss from discontinued operations per common share -- basic $ - $ (0.03) $ (0.25) $ (0.14) $ (0.53) ========== ========== ========== ========== ========== Loss from discontinued operations per common share -- diluted $ - $ (0.03) $ (0.25) $ (0.14) $ (0.53) ========== ========== ========== ========== ========== Net (loss) income per common share -- basic $ (0.57) $ (0.69) $ 0.33 $ (2.17) $ (1.04) ========== ========== ========== ========== ========== Net (loss) income per common share -- diluted $ (0.57) $ (0.69) $ 0.33 $ (2.17) $ (1.04) ========== ========== ========== ========== ========== CompuCredit Corporation and Subsidiaries Business Segment Data (Unaudited) (In thousands) Investments in Previously Three Months Ended December Charged Off Retail 31, 2008 Credit Cards Receivables Micro-Loans ------------- ------------- ------------- Net interest income (expense), fees and related income on non-securitized earning assets $ (2,539) $ 4,027 $ 16,640 ============= ============= ============= Total other operating income $ 48,710 $ 129 $ - ============= ============= ============= Income (loss) from continuing operations before income taxes $ (24,963) $ (6,488) $ 2,591 ============= ============= ============= Loss from discontinued operations before income taxes $ - $ - $ - ============= ============= ============= Loans and fees receivable, gross $ 712 $ - $ 40,099 ============= ============= ============= Loans and fees receivable, net $ 534 $ - $ 33,597 ============= ============= ============= Total assets $ 963,734 $ 59,850 $ 99,175 ============= ============= ============= Three Months Ended December 31, 2008 Auto Finance Other Total ------------- ------------- ------------- Net interest income (expense), fees and related income on non-securitized earning assets $ 11,098 $ 8,253 $ 37,479 ============= ============= ============= Total other operating income $ 85 $ - $ 48,924 ============= ============= ============= Income (loss) from continuing operations before income taxes $ (9,748) $ 1,917 $ (36,691) ============= ============= ============= Loss from discontinued operations before income taxes $ - $ - $ - ============= ============= ============= Loans and fees receivable, gross $ 359,662 $ 20,771 $ 421,244 ============= ============= ============= Loans and fees receivable, net $ 291,559 $ 15,044 $ 340,734 ============= ============= ============= Total assets $ 342,465 $ 62,193 $ 1,527,417 ============= ============= ============= Investments in Previously Three Months Ended December Charged Off Retail 31, 2007 Credit Cards Receivables Micro-Loans ------------- ------------- ------------- Net interest income, fees and related income on non-securitized earning assets $ 125 $ 14,393 $ 22,815 ============= ============= ============= Total other operating income $ 229,963 $ 291 $ - ============= ============= ============= Income (loss) from continuing operations before income taxes $ 107,860 $ 3,838 $ (44,255) ============= ============= ============= Loss from discontinued operations before income taxes $ - $ - $ (13,795) ============= ============= ============= Loans and fees receivable, gross $ 28,054 $ - $ 49,464 ============= ============= ============= Loans and fees receivable, net $ 22,473 $ - $ 39,391 ============= ============= ============= Total assets $ 1,318,631 $ 31,819 $ 112,516 ============= ============= ============= Three Months Ended December 31, 2007 Auto Finance Other Total ------------- ------------- ------------- Net interest income, fees and related income on non-securitized earning assets $ 1,121 $ 2,704 $ 41,158 ============= ============= ============= Total other operating income $ 217 $ - $ 230,471 ============= ============= ============= Income (loss) from continuing operations before income taxes $ (18,073) $ (868) $ 48,502 ============= ============= ============= Loss from discontinued operations before income taxes $ - $ (4,313) $ (18,108) ============= ============= ============= Loans and fees receivable, gross $ 345,843 $ 12,354 $ 435,715 ============= ============= ============= Loans and fees receivable, net $ 285,531 $ 9,632 $ 357,027 ============= ============= ============= Total assets $ 380,783 $ 30,431 $ 1,874,180 ============= ============= ============= Investments in Previously Charged Off Retail Year Ended December 31, 2008 Credit Cards Receivables Micro-Loans ------------- ------------- ------------- Net interest income (expense), fees and related income on non-securitized earning assets $ (14,772) $ 38,985 $ 64,305 ============= ============= ============= Total other operating income $ 262,208 $ 631 $ - ============= ============= ============= Income (loss) from continuing operations before income taxes $ (116,299) $ 12,402 $ 9,775 ============= ============= ============= Loss from discontinued operations before income taxes $ - $ - $ (8,622) ============= ============= ============= Loans and fees receivable, gross $ 712 $ - $ 40,099 ============= ============= ============= Loans and fees receivable, net $ 534 $ - $ 33,597 ============= ============= ============= Total assets $ 963,734 $ 59,850 $ 99,175 ============= ============= ============= Year Ended December 31, 2008 Auto Finance Other Total ------------- ------------- ------------- Net interest income (expense), fees and related income on non-securitized earning assets $ 64,821 $ 25,982 $ 179,321 ============= ============= ============= Total other operating income $ 381 $ - $ 263,220 ============= ============= ============= Income (loss) from continuing operations before income taxes $ (44,799) $ (471) $ (139,392) ============= ============= ============= Loss from discontinued operations before income taxes $ - $ (1,246) $ (9,868) ============= ============= ============= Loans and fees receivable, gross $ 359,662 $ 20,771 $ 421,244 ============= ============= ============= Loans and fees receivable, net $ 291,559 $ 15,044 $ 340,734 ============= ============= ============= Total assets $ 342,465 $ 62,193 $ 1,527,417 ============= ============= ============= Investments in Previously Charged Off Retail Year Ended December 31, 2007 Credit Cards Receivables Micro-Loans ------------- ------------- ------------- Net interest income, fees and related income on non-securitized earning assets $ 39,855 $ 58,286 $ 79,106 ============= ============= ============= Total other operating income $ 497,453 $ 1,125 $ - ============= ============= ============= Income (loss) from continuing operations before income taxes $ (4,483) $ 33,159 $ (28,240) ============= ============= ============= Loss from discontinued operations before income taxes $ - $ - $ (25,242) ============= ============= ============= Loans and fees receivable, gross $ 28,054 $ - $ 49,464 ============= ============= ============= Loans and fees receivable, net $ 22,473 $ - $ 39,391 ============= ============= ============= Total assets $ 1,318,631 $ 31,819 $ 112,516 ============= ============= ============= Year Ended December 31, 2007 Auto Finance Other Total ------------- ------------- ------------- Net interest income, fees and related income on non-securitized earning assets $ 28,493 $ 7,581 $ 213,321 ============= ============= ============= Total other operating income $ 2,052 $ - $ 500,630 ============= ============= ============= Income (loss) from continuing operations before income taxes $ (33,439) $ (861) $ (33,864) ============= ============= ============= Loss from discontinued operations before income taxes $ - $ (14,801) $ (40,043) ============= ============= ============= Loans and fees receivable, gross $ 345,843 $ 12,354 $ 435,715 ============= ============= ============= Loans and fees receivable, net $ 285,531 $ 9,632 $ 357,027 ============= ============= ============= Total assets $ 380,783 $ 30,431 $ 1,874,180 ============= ============= ============= 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 ---------------------------------------- December 31, September 30, December 31, 2008 2008 2007 ------------ ------------ ------------ GAAP net (loss) income as reported $ (26,878) $ (32,252) $ 15,757 Securitization adjustment, net of tax 32,996 4,012 193,314 Provision to charge off adjustment, net of tax 1,936 (5,415) (237,174) ------------ ------------ ------------ Managed net income (loss) $ 8,054 $ (33,655) $ (28,103) ============ ============ ============ Managed net income (loss) per common share $ 0.17 $ (0.72) $ (0.59) ============ ============ ============ For The Year Ended -------------------------- December 31, December 31, 2008 2007 ------------ ------------ GAAP net (loss) income as reported $ (101,582) $ (50,996) Securitization adjustment, net of tax (118,330) 164,556 Provision to charge off adjustment, net of tax (11,954) (92,345) ------------ ------------ Managed net income (loss) $ (231,866) $ 21,215 ============ ============ Managed net income (loss) per common share $ (4.96) $ 0.43 ============ ============ For The Three Months Ended December 31, 2008 ---------------------------------------- GAAP Adjustments Managed ------------ ------------ ------------ Net interest margin on loans receivable $ 21,580 $ 93,002 $ 114,582 Net interest expense (10,156) 5,033 (5,123) Provision / charge offs (18,470) (99,533) (118,003) Other operating income 93,449 54,306 147,755 Marketing expense (4,649) - (4,649) Ancillary product expense (146) - (146) Operating expenses (121,915) 4,562 (117,353) Minority interests 3,616 (3,616) - ------------ ------------ ------------ Pre-tax (loss) income from continuing operations (36,691) 53,754 17,063 Income tax benefit (expense) 9,813 (18,822) (9,009) ------------ ------------ ------------ (Loss) income from continuing operations (26,878) 34,932 8,054 ------------ ------------ ------------ Pre-tax discontinued operations loss N/A N/A N/A Income tax benefit of discontinued operations N/A N/A N/A ------------ ------------ ------------ Loss from discontinued operations N/A N/A N/A ------------ ------------ ------------ Net (loss) income $ (26,878) 34,932 $ 8,054 ============ ============ ============ Weighted average shares outstanding 46,807 46,840 ------------ ------------ ------------ (Loss) income from continuing operations per common share $ (0.57) $ 0.74 $ 0.17 ============ ============ ============ Loss from discontinued operations per common share N/A N/A N/A ============ ============ ============ Net (loss) income per common share $ (0.57) $ 0.74 $ 0.17 ============ ============ ============ Gross loans and fees receivable $ 421,244 $ 2,700,438 $ 3,121,682 ============ ============ ============ For The Three Months Ended December 31, 2007 ---------------------------------------- GAAP Adjustments Managed ------------ ------------ ------------ Net interest margin on loans receivable $ 141,641 $ 42,885 $ 184,526 Net interest expense (20,553) 15,071 (5,482) Provision / charge offs (330,921) 193,701 (137,220) Other operating income 481,462 (327,280) 154,182 Marketing expense (16,983) - (16,983) Ancillary product expense (691) - (691) Operating expenses (206,616) 6,760 (199,856) Minority interests 1,163 (1,163) - ------------ ------------ ------------ Pre-tax (loss) income from continuing operations 48,502 (70,026) (21,524) Income tax benefit (expense) (20,975) 26,500 5,525 ------------ ------------ ------------ (Loss) income from continuing operations 27,527 (43,526) (15,999) ------------ ------------ ------------ Pre-tax discontinued operations loss (18,108) (513) (18,621) Income tax benefit of discontinued operations 6,338 179 6,517 ------------ ------------ ------------ Loss from discontinued operations (11,770) (334) (12,104) ------------ ------------ ------------ Net (loss) income $ 15,757 (43,860) $ (28,103) ============ ============ ============ Weighted average shares outstanding 47,860 47,614 ------------ ------------ ------------ (Loss) income from continuing operations per common share $ 0.58 $ (0.92) $ (0.34) ============ ============ ============ Loss from discontinued operations per common share $ (0.25) $ - $ (0.25) ============ ============ ============ Net (loss) income per common share $ 0.33 $ (0.92) $ (0.59) ============ ============ ============ Gross loans and fees receivable $ 435,715 $ 3,700,715 $ 4,136,430 ============ ============ ============ For The Year Ended December 31, 2008 ---------------------------------------- GAAP Adjustments Managed ------------ ------------ ------------ Net interest margin on loans receivable $ 92,918 $ 408,550 $ 501,468 Net interest expense (37,701) 16,206 (21,495) Provision / charge offs (72,262) (531,203) (603,465) Other operating income 459,586 (108,948) 350,638 Marketing expense (46,376) - (46,376) Ancillary product expense (947) - (947) Operating expenses (536,755) 16,872 (519,883) Minority interests 2,145 (2,145) - ------------ ------------ ------------ Pre-tax (loss) income from continuing operations (139,392) (200,668) (340,060) Income tax benefit (expense) 44,224 70,491 114,715 ------------ ------------ ------------ (Loss) income from continuing operations (95,168) (130,177) (225,345) ------------ ------------ ------------ Pre-tax discontinued operations loss (9,868) (164) (10,032) Income tax benefit of discontinued operations 3,454 57 3,511 ------------ ------------ ------------ Loss from discontinued operations (6,414) (107) (6,521) ------------ ------------ ------------ Net (loss) income $ (101,582) (130,284) $ (231,866) ============ ============ ============ Weighted average shares outstanding 46,782 46,782 ------------ ------------ ------------ (Loss) income from continuing operations per common share $ (2.03) $ (2.79) $ (4.82) ============ ============ ============ Loss from discontinued operations per common share $ (0.14) $ - $ (0.14) ============ ============ ============ Net (loss) income per common share $ (2.17) $ (2.79) $ (4.96) ============ ============ ============ Gross loans and fees receivable $ 421,244 $ 2,700,438 $ 3,121,682 ============ ============ ============ For The Year Ended December 31, 2007 ---------------------------------------- GAAP Adjustments Managed ------------ ------------ ------------ Net interest margin on loans receivable $ 440,084 $ 240,317 $ 680,401 Net interest expense (58,834) 43,746 (15,088) Provision / charge offs (958,858) 548,949 (409,909) Other operating income 1,291,559 (747,962) 543,597 Marketing expense (141,635) - (141,635) Ancillary product expense (2,452) - (2,452) Operating expenses (602,128) 20,957 (581,171) Minority interests (1,600) 1,600 - ------------ ------------ ------------ Pre-tax (loss) income from continuing operations (33,864) 107,607 73,743 Income tax benefit (expense) 8,896 (37,485) (28,589) ------------ ------------ ------------ (Loss) income from continuing operations (24,968) 70,122 45,154 ------------ ------------ ------------ Pre-tax discontinued operations loss (40,043) 3,214 (36,829) Income tax benefit of discontinued operations 14,015 (1,125) 12,890 ------------ ------------ ------------ Loss from discontinued operations (26,028) 2,089 (23,939) ------------ ------------ ------------ Net (loss) income $ (50,996) 72,211 $ 21,215 ============ ============ ============ Weighted average shares outstanding 48,717 49,191 ------------ ------------ ------------ (Loss) income from continuing operations per common share $ (0.51) $ 1.43 $ 0.92 ============ ============ ============ Loss from discontinued operations per common share $ (0.53) $ 0.04 $ (0.49) ============ ============ ============ Net (loss) income per common share $ (1.04) $ 1.47 $ 0.43 ============ ============ ============ Gross loans and fees receivable $ 435,715 $ 3,700,715 $ 4,136,430 ============ ============ ============ For The Three Months Ended September 30, 2008 ---------------------------------------- GAAP Adjustments Managed ------------ ------------ ------------ Net interest margin on loans receivable $ 23,556 $ 108,876 $ 132,432 Net interest expense (9,169) 3,921 (5,248) Provision / charge offs (17,283) (107,792) (125,075) Other operating income 108,874 (9,505) 99,369 Marketing expense (8,787) - (8,787) Ancillary product expense (226) - (226) Operating expenses (147,751) 3,607 (144,144) Minority interests 30 (30) - ------------ ------------ ------------ Pre-tax (loss) income from continuing operations (50,756) (923) (51,679) Income tax benefit (expense) 19,728 (846) 18,882 ------------ ------------ ------------ (Loss) income from continuing operations (31,028) (1,769) (32,797) ------------ ------------ ------------ Pre-tax discontinued operations loss (1,883) 563 (1,320) Income tax benefit of discontinued operations 659 (197) 462 ------------ ------------ ------------ Loss from discontinued operations (1,224) 366 (858) ------------ ------------ ------------ Net (loss) income $ (32,252) (1,403) $ (33,655) ============ ============ ============ Weighted average shares outstanding 46,794 46,794 ------------ ------------ ------------ (Loss) income from continuing operations per common share $ (0.66) $ (0.04) $ (0.70) ============ ============ ============ Loss from discontinued operations per common share $ (0.03) $ 0.01 $ (0.02) ============ ============ ============ Net (loss) income per common share $ (0.69) $ (0.03) $ (0.72) ============ ============ ============ Gross loans and fees receivable $ 441,764 $ 3,024,164 $ 3,465,928 ============ ============ ============

N@N

CompuCredit: CompuCredit Reports Fourth Quarter 2008 Results