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CompuCredit Corp. (CCRT) filed Quarterly Report for the period ended 2011-09-30.
Compucredit Holdings Corp. has a market cap of $71.4 million; its shares were traded at around $3.18 with and P/S ratio of 0.3.
This is the annual revenues and earnings per share of CCRT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CCRT.
Highlight of Business Operations:
Our product and service offerings have also included: small-balance, short-term cash advance loans that typically are due on the customer s next payday—generally less than $500 for 30 days or less and to which we refer as “micro-loans;” installment loans, title loans, and other credit products; and money transfer, bill payment, and other financial services. Prior to sales of our MEM and Retail Micro-Loans segment operations, which occurred on April 1, 2011 and October 10, 2011, respectively, we recently marketed these loans and products predominantly over the Internet in the U.K. and through U.S. retail branch locations in Alabama, Colorado, Kentucky, Mississippi, Ohio, Oklahoma, South Carolina, Tennessee, and Wisconsin. We have categorized the operations of MEM and our former Retail Micro-Loans segment as discontinued operations within our consolidated statements of operations for all periods presented, and because our Retail Micro-Loans segment sale was not completed until October 10, 2011, we classify its assets and liabilities as held for sale on our September 30, 2011 consolidated balance sheet. Given our sale of the aforementioned operations, our current micro-loans activities are limited to small volumes of test loans and activities conducted over the Internet in the U.S. through operations that we include within our Other segment.Our completion of the planned sale of our MEM operations for $195.0 million on April 1, 2011 resulting in a gain (net of related sales expenditures) of $106.0 million that is included as a component of discontinued operations within our consolidated statements of operations for the nine months ended September 30, 2011;
Considering the above and the fact that we sold our MEM operations on April 1, 2011, the decline in income allocable noncontrolling interest holders in the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, principally reflects (1) the removal of noncontrolling interests associated with our profitable MEM operations due to their sale on April 1, 2011 (and the reduction in noncontrolling interest holders ownership from 24% for a portion of the nine months ended September 30, 2010 to only 18% during the entire three-month period ended March 31, 2011 prior to the completion of its sale) and (2) the fact that there was no allocation of our Investments in Previously Charged-off Receivables segment s profits to noncontrolling interest holders during the entire nine-month period ended September 30, 2011.
We are expanding the Internet micro-loan platform underwriting techniques and marketing approaches within the U.S. at a measured pace, and we may significantly grow Internet-based micro-loan cash advance lending within the U.S. As noted previously, our U.S. Internet micro-loan operations represent our only continuing micro-loan operations, and they originated $3.9 million and $8.9 million in micro-loans during the three and nine months ended September 30, 2011, respectively, resulting in revenue of $1.0 million and $2.2 million for the three and nine months ended September 30, 2011, respectively; this compares with $1.8 million and $3.8 million in U.S. Internet micro-loans originated during the three and nine months ended September 30, 2010, respectively, which produced revenue of $0.7 million and $1.2 million, respectively, during those periods. Summary financial data (in thousands) for our Internet Micro-Loans segment are as follows:
Our current focus on liquidity has resulted in and will continue to result in growth and profitability trade-offs. For example, as noted throughout this Report, we have closed substantially all of our credit card accounts (other than those underlying our Investment in Previously Charged-Off Receivables segment s balance transfer program and test program accounts); consequently, each of our managed credit card receivables portfolios is expected to show fairly rapid net liquidations in balances for the foreseeable future. Similarly, the lack of available growth financing for our Auto Finance segment has caused us to limit capital deployment to that segment, which will cause contraction in its receivables and revenues over the coming months. Offsetting these restrictions on available capital is the incremental $65.7 million of net capital generated in April 2011 following (1) the sale of our MEM operations on April 1, 2011, which resulted in $170.5 million of pre-tax cash to us after the purchase of minority shares and other transaction-related expenditures and (2) the closing of a tender offer in April 2011, under which we repurchased 13,125,000 shares of our common stock at a purchase price of $8.00 per share for an aggregate cost of $105.0 million.
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