<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
AMENDMENT NO. 1 TO
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) APRIL 13, 2000
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COMPUCREDIT CORPORATION
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(Exact name of registrant as specified in its charter)
GEORGIA 000-25751 58-2336689
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(State or other (Commission (IRS
jurisdiction of File Number) Employer
incorporation) Identification
No.)
ONE RAVINIA DRIVE, SUITE 500, ATLANTA, GEORGIA 30346
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 206-6200
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
<PAGE>
The undersigned registrant hereby amends the following items of its
Current Report on Form 8-K, filed April 28, 2000, as set forth below:
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(b) PRO FORMA FINANCIAL INFORMATION.
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Financial Data
Unaudited Pro Forma Consolidated Balance Sheet as of December
31, 1999
Unaudited Pro Forma Consolidated Statement of Operations for
the year ended December 31, 1999
Unaudited Pro Forma Consolidated Statement of Operations for
the year ended December 31, 1998
Unaudited Pro Forma Consolidated Statement of Operations for
the year ended December 31, 1998
Notes to Unaudited Pro Forma Financial Data
(c) EXHIBITS.
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned hereunto duly authorized.
COMPUCREDIT CORPORATION
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Registrant
By: /s/ BRETT M. SAMSKY
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Brett M. Samsky
Chief Financial Officer
Date: May 12, 2000
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Financial Data
On April 13, 2000, CompuCredit Corporation ("CompuCredit") acquired Citadel
Group, Inc. ("Citadel") of Daytona, Florida. Under the terms of an Agreement and
Plan of Merger and Reorganization, CompuCredit acquired all of the issued and
outstanding stock of Citadel Group, Inc. with 1,783,333 shares of CompuCredit
common stock valued at $64.6 million, based on the April 13, 2000 closing price
of CompuCredit stock at $36.25 per share. Citadel markets fee-based products and
services to CompuCredit's Aspire Visa cardholders. The transaction was
accounted for as a pooling of interests.
The unaudited pro forma consolidated balance sheet as of December 31, 1999 has
been derived from the audited balance sheets of each entity at such date,
assuming the acquisition occurred at such date.
The unaudited pro forma consolidated statements of operations for the years
ended December 31, 1999, 1998 and 1997 give effect to the acquisition as if it
occurred on January 1, 1997. Citadel Group, Inc. was incorporated on December
30, 1997 and did not have operations during 1997. The statements have been
derived from CompuCredit's audited consolidated statements of operations for the
years ended December 31, 1999, 1998 and 1997 and from Citadel's audited
statement of income for the year ended December 31, 1999 and Citadel's unaudited
statement of operations for the year ended December 31, 1998.
The CompuCredit audited consolidated balance sheet as of December 31, 1999 and
audited consolidated statements of operations for the years ended December 31,
1999, 1998 and 1997 are included in the CompuCredit Annual Report on Form 10-K
filed with the Securities and Exchange Commission. The Citadel audited balance
sheet as of December 31, 1999 and audited statement of income for the year ended
December 31, 1999 are included in the CompuCredit Current Report on Form 8-K
dated April 13, 2000 filed with the Securities and Exchange Commission.
The unaudited pro forma consolidated financial statements are not necessarily
indicative of the results of operations or financial position which would have
actually been reported if the acquisition had been consummated on the date
indicated, or which may be reported in the future.
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Consolidated Balance Sheet
December 31, 1999
<TABLE>
<CAPTION>
COMPUCREDIT
COMPUCREDIT CITADEL PRO FORMA CORPORATION
CORPORATION GROUP, INC. ADJUSTMENTS PRO FORMA
------------------------------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 11,808 $ 29 $ $ 11,837
Restricted cash 10,000 -- -- 10,000
Retained interests in credit card
receivables securitized 165,572 -- -- 165,572
Accrued interest and fees 9,828 -- -- 9,828
-------- -------- -------- --------
Net credit card receivables 175,400 -- -- 175,400
Amounts due from securitization 12,010 -- -- 12,010
Deferred costs, net 2,235 -- -- 2,235
Software, furniture, fixtures and
equipment, net 6,134 471 -- 6,605
Prepaid expenses 1,640 102 -- 1,742
Other assets 4,631 1,157 (69) 5,719
-------- -------- -------- --------
Total assets $223,858 $ 1,759 $ (69) $225,548
======== ======== ======== ========
LIABILITIES
Accrued expenses and other
liabilities $ 9,664 $ 980 $ (69) $ 10,575
Deferred revenue 5,680 921 -- 6,601
Income tax liability 32,151 -- -- 32,151
-------- -------- -------- --------
Total liabilities 47,495 1,901 (69) 49,327
SHAREHOLDERS' EQUITY
Preferred stock -- -- -- --
Common stock -- 1 (1) --
Additional paid-in capital 92,795 578 1 93,374
Retained earnings 83,568 (721) -- 82,847
-------- -------- -------- --------
Total shareholders' equity 176,363 (142) -- 176,221
-------- -------- -------- --------
Total liabilities and
shareholders' equity $223,858 $ 1,759 $ (69) $225,548
======== ======== ======== ========
</TABLE>
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
FOR EXPLANATION OF PRO FORMA ADJUSTMENTS.
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
Year ended December 31, 1999
<TABLE>
<CAPTION>
COMPUCREDIT
COMPUCREDIT CITADEL PRO FORMA CORPORATION
CORPORATION GROUP, INC. ADJUSTMENTS PRO FORMA
-------------------------------------------------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Interest income $ 2,094 $ 58 $ -- $ 2,152
Other operating income:
Securitization income, net 12,470 -- -- 12,470
Income from retained interests in
credit card receivables securitized 88,800 -- -- 88,800
Servicing income 8,893 -- -- 8,893
Other credit card fees 19,506 -- -- 19,506
Interchange fees 9,202 -- -- 9,202
Ancillary products 7,812 9,919 -- 17,731
--------- --------- --------- ---------
Total other operating income 146,683 9,919 -- 156,602
Other operating expense:
Salaries and benefits 3,094 -- -- 3,094
Credit card servicing 9,009 -- -- 9,009
Marketing and solicitation 33,234 -- -- 33,234
Professional fees 1,660 -- -- 1,660
Data processing 2,745 -- -- 2,745
Net occupancy 737 -- -- 737
Ancillary product expense 2,009 4,885 -- 6,894
Other 3,011 -- -- 3,011
--------- --------- --------- ---------
Total other operating expense 55,499 4,885 -- 60,384
Income before income taxes 93,278 5,092 -- 98,370
Income tax expense (34,267) -- (1,869) (36,136)
--------- --------- --------- ---------
Net income $ 59,011 $ 5,092 $ (1,869) $ 62,234
========= ========= ========= =========
Net income attributable to common
shareholders $ 58,429 $ 5,092 $ (1,869) $ 61,652
========= ========= ========= =========
Net income per common share - basic $ 1.55 -- -- $ 1.57
========= ========= ========= =========
Net income per common share - diluted $ 1.55 -- -- $ 1.56
========= ========= ========= =========
Weighted average number of shares
outstanding - basic 37,580 -- 1,783 39,363
========= ========= ========= =========
Weighted average number of shares
outstanding - diluted 37,656 -- 1,783 39,439
========= ========= ========= =========
</TABLE>
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
FOR EXPLANATION OF PRO FORMA ADJUSTMENTS.
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
Year ended December 31, 1998
<TABLE>
<CAPTION>
COMPUCREDIT
COMPUCREDIT CITADEL PRO FORMA CORPORATION
CORPORATION GROUP, INC. ADJUSTMENTS PRO FORMA
---------------------------------------------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Interest income $ 256 $ 30 $ -- $ 286
Interest expense (536) (59) -- (595)
-------- -------- -------- --------
Net interest expense (280) (29) -- (309)
Other operating income:
Securitization income, net 13,596 -- -- 13,596
Income from retained interests in
credit card receivables securitized 25,483 -- -- 25,483
Servicing income 12,541 -- -- 12,541
Other credit card fees 4,193 -- -- 4,193
Interchange fees 1,865 -- -- 1,865
Ancillary products 638 1,057 -- 1,695
-------- -------- -------- --------
Total other operating income 58,316 1,057 -- 59,373
Other operating expense:
Salaries and benefits 1,172 -- -- 1,172
Credit card servicing 4,948 -- -- 4,948
Marketing and solicitation 6,865 -- -- 6,865
Professional fees 713 -- -- 713
Data processing 1,437 -- -- 1,437
Net occupancy 195 -- -- 195
Ancillary product expense 443 2,841 -- 3,284
Other 1,354 -- -- 1,354
-------- -------- -------- --------
Total other operating expense 17,127 2,841 -- 19,968
Income (loss) before income taxes 40,909 (1,813) -- 39,096
Income tax (expense) benefit (15,479) -- 685 (14,794)
-------- -------- -------- --------
Net income (loss) $ 25,430 $ (1,813) $ 685 $ 24,302
======== ======== ======== ========
Net income (loss) attributable to
common shareholders $ 23,630 $ (1,813) $ 685 $ 22,502
======== ======== ======== ========
Net income per common share - basic and
diluted (1) $ 0.74 -- -- $ 0.67
======== ======== ======== ========
Weighted average number of shares
outstanding - basic and diluted (1) 31,721 -- 1,783 33,504
======== ======== ======== ========
</TABLE>
(1) After giving retroactive effect to the 15.2-for-1 stock split effective
April 28, 1999.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
FOR EXPLANATION OF PRO FORMA ADJUSTMENTS.
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
Year ended December 31, 1997
<TABLE>
<CAPTION>
COMPUCREDIT
COMPUCREDIT CITADEL PRO FORMA CORPORATION
CORPORATION GROUP, INC. ADJUSTMENTS PRO FORMA
----------------------------------------------------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Interest income $ 2,658 $-- $-- $ 2,658
Interest expense (361) -- -- (361)
-------- --- --- --------
Net interest expense 2,297 -- -- 2,297
Provision for loan losses 1,422 -- -- 1,422
-------- --- --- --------
Net interest income after provision for
loan losses 875 -- --
875
Other operating income:
Securitization income, net 628 -- -- 628
Other credit card fees 911 -- -- 911
Interchange fees 279 -- -- 279
Ancillary products 37 -- -- 37
Other 156 -- -- 156
-------- --- --- --------
Total other operating income 2,011 -- -- 2,011
Other operating expense:
Salaries and benefits 429 -- -- 429
Credit card servicing 1,008 -- -- 1,008
Marketing and solicitation 1,081 -- -- 1,081
Professional fees 252 -- -- 252
Data processing 156 -- -- 156
Net occupancy 35 -- -- 35
Other 650 -- -- 650
-------- --- --- --------
Total other operating expense 3,611 -- -- 3,611
Loss before income taxes (725) -- -- (725)
Income tax expense -- -- -- --
-------- --- --- --------
Net loss $ (725) $-- $-- $ (725)
======== === === ========
Net loss attributable to common
shareholders $ (1,341) $-- $-- $ (1,341)
======== === === ========
Net loss per common share - basic and
diluted (1) $ (0.04) -- -- $ (0.04)
======== === === ========
Weighted average number of shares
outstanding - basic and diluted (1) 31,342 -- -- 31,342
======== === === ========
</TABLE>
(1) After giving retroactive effect to the 15.2-for-1 stock split effective
April 28, 1999.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
FOR EXPLANATION OF PRO FORMA ADJUSTMENTS.
<PAGE>
CompuCredit Corporation Acquisition of Citadel Group, Inc.
Notes to Unaudited Pro Forma Financial Data
1. ACQUISITION OF CITADEL GROUP, INC.
On April 13, 2000, CompuCredit Corporation ("CompuCredit") acquired Citadel
Group, Inc. ("Citadel") of Daytona, Florida. Under the terms of an Agreement and
Plan of Merger and Reorganization, CompuCredit acquired all of the issued and
outstanding stock of Citadel Group, Inc. with 1,783,333 shares of CompuCredit
common stock valued at $64.6 million, based on the April 13, 2000 closing price
of CompuCredit stock at $36.25 per share. Citadel markets fee-based products and
services to CompuCredit's Aspire Visa cardholders. The transaction was
accounted for as a pooling of interests.
2. PRO FORMA ADJUSTMENTS
The following pro forma adjustments have been reflected in the pro forma
consolidated financial statements:
A receivable and payable existing at December 31, 1999 between CompuCredit and
Citadel has been eliminated on the pro forma consolidated balance sheet.
The par value of Citadel's issued and outstanding common stock has been
reclassified to additional paid-in capital on the pro forma consolidated
balance sheet. Such pro forma adjustment is made to give effect to all of the
issued and outstanding common stock of Citadel being acquired in exchange for
CompuCredit common stock.
The pro forma statements of operations include a pro forma adjustment to record
a tax expense or tax benefit calculated using CompuCredit's effective tax rate
being applied to Citadel's net income or net loss.
