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Previous: ADVANTA CORP, 8-K, 2000-10-24 |
Next: TENNANT CO, 8-A12B, 2000-10-24 |
<PAGE> 1
Exhibit 99
ADVANTA CORP.
SUPPLEMENTAL CONSOLIDATING INCOME STATEMENT
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 2000
-------------------------------------------------------------------------------
ADVANTA ADVANTA
ADVANTA BUSINESS LEASING
MORTGAGE CARDS SERVICES OTHER (a) TOTAL
-------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Interest income $ 37,186 $24,007 $ 3,894 $15,442 $ 80,529
Securitization income (loss) 35,236 19,195 (5,563) -- 48,868
Servicing revenues 33,717 3,525 1,813 -- 39,055
Other revenues, net (607) 18,340 4,554 (1,844) 20,443
-------- ------- -------- ------- --------
Total revenues 105,532 65,067 4,698 13,598 188,895
-------- ------- -------- ------- --------
EXPENSES:
Operating expenses 63,237 23,715 9,049 1,926 97,927
Interest expense 24,240 10,035 3,308 14,422 52,005
Provision for credit losses -- 16,806 4,193 -- 20,999
Minority int. in inc. of consolidated sub. 1,744 309 167 -- 2,220
-------- ------- -------- ------- --------
Total expenses 89,221 50,865 16,717 16,348 173,151
-------- ------- -------- ------- --------
INCOME (LOSS) BEFORE INCOME TAXES 16,311 14,202 (12,019) (2,750) 15,744
Income tax expense (benefit) -- -- -- -- --
-------- ------- -------- ------- --------
NET INCOME (LOSS) $ 16,311 $14,202 $(12,019) $(2,750) $ 15,744
======== ======= ======== ======= ========
</TABLE>
(a) Other includes insurance operations and investment activities not
attributable to other segments.
<PAGE> 2
ADVANTA CORP.
RECONCILIATION OF ADVANTA MORTGAGE TO
PORTFOLIO LENDER EARNINGS FORMAT
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 2000
---------------------------------------------------------------------------------------
ADVANTA
ADVANTA MORTGAGE AS A PRO FORMA
MORTGAGE AS PRO FORMA PORTFOLIO REMAINING PRO FORMA
REPORTED ADJUSTMENTS LENDER BUSINESSES CONSOLIDATED
----------- ----------- ------------- ---------- ------------
[f] [f]
<S> <C> <C> <C> <C> <C>
REVENUES:
Interest income $ 37,186 $199,420 [a] $236,606 $43,343 $279,949
Securitization income 35,236 (35,236) [b] -- 13,632 13,632
Servicing revenues 33,717 (13,324) [c] 20,393 5,338 25,731
Other revenues, net (607) -- (607) 21,050 20,443
-------------------------- ------------------------ --------
Total revenues 105,532 150,860 256,392 83,363 339,755
-------------------------- ------------------------ --------
EXPENSES:
Operating expenses 63,237 1,920 [d] 65,157 34,690 99,847
Interest expense 24,240 135,354 [a] 159,594 27,765 187,359
Provision for credit losses -- 28,575 [e] 28,575 20,999 49,574
Minority interest in income of
consolidated subsidiary 1,744 -- 1,744 476 2,220
-------------------------- ------------------------ --------
Total expenses 89,221 165,849 255,070 83,930 339,000
-------------------------- ------------------------ --------
INCOME (LOSS) BEFORE INCOME TAXES 16,311 (14,989) 1,322 (567) 755
Income tax expense (benefit) -- 509 509 (218) 291
-------------------------- ------------------------ --------
NET INCOME (LOSS) $ 16,311 $(15,498) $ 813 $ (349) $ 464
-------------------------- ------------------------ --------
</TABLE>
FOOTNOTES FOR PRO FORMA ADJUSTMENTS:
[a] Represents the adjustment to interest income and interest expense as if
the securitized mortgage loans were still owned by Advanta and remained
on the balance sheet for the period presented.
[b] Represents the reclassification of net gains or losses recognized on
the sale of mortgage loans for the period.
[c] Represents the reclassification of servicing revenues on securitized
mortgage loans for the period presented.
[d] Represents the reclassification of securitization costs incurred by
Advanta.
[e] Represents the amount by which the provision for credit losses would
have increased had the securitized mortgage loans remained on the
balance sheet and the provision for credit losses on securitized
receivables been equal to actual reported charge-offs.
[f] Adjusted income tax expense to normalized rate of 38.5%
<PAGE> 3
ADVANTA CORP.
HIGHLIGHTS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-----------------------------------------------------------------------
PERCENT CHANGE
SEPTEMBER 30, JUNE 30, SEPTEMBER 30, FROM
ORIGINATIONS 2000 2000 1999 PRIOR QUARTER
------------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Direct $ 233,149 $ 301,393 $ 368,654 -22.6%
Broker 80,974 198,277 163,720 -59.2
Other indirect -- 3,238 34,941 -100.0
----------- ----------- ----------- ------
Total Advanta Mortgage loans $ 314,123 $ 502,908 $ 567,315 -37.5
Business credit cards $ 881,215 $ 900,381 $ 484,727 -2.1
Leases 70,814 88,437 112,615 -19.9
SECURITIZATION/SALES VOLUME
Advanta Mortgage $ 1,028,221 $ 477,238 $ 746,893 115.5%
Business credit cards 136,050 0 257,750 N/M
Leases 70,093 126,960 106,953 -44.8
----------- ----------- ----------- ------
Total securitization/sales volume $ 1,234,364 $ 604,198 $ 1,111,596 104.3%
AVERAGE MANAGED RECEIVABLES
Mortgage loans $ 8,269,866 $ 8,413,993 $ 8,278,435 -1.7%
Business credit cards 1,472,729 1,319,434 906,032 11.6
Leases 796,375 802,661 741,571 -0.8
Auto loans 53,160 67,105 111,357 -20.8
Other loans 24,250 19,939 17,322 21.6
----------- ----------- ----------- ------
Total average managed receivables $10,616,380 $10,623,132 $10,054,717 -0.1%
Total average serviced receivables $23,722,992 $24,000,185 $20,029,536 -1.2%
ENDING MANAGED RECEIVABLES
Mortgage loans $ 8,185,378 $ 8,381,881 $ 8,260,900 -2.3%
Business credit cards 1,529,784 1,428,732 930,009 7.1
Leases 794,825 820,265 780,653 -3.1
Auto loans 47,094 56,796 101,045 -17.1
Other loans 26,080 21,689 17,478 20.2
----------- ----------- ----------- ------
Total managed receivables $10,583,161 $10,709,363 $10,090,085 -1.2%
Total serviced receivables $23,299,071 $24,360,406 $20,573,310 -4.4%
IO AND CMSR ROLLFORWARD
Beginning balance $ 85,272 $ 206,538 $ 247,071
Retained IO on sales, net 42,840 33,819 38,396
Hedge impact 4,358 (2,913) (1,513)
Interest income 17,991 21,409 10,618
Cash received (32,705) (36,552) (49,383)
Additional reserves -- (234,200) --
Other, net -- -- 362
----------- ----------- -----------
Subtotal 117,756 (11,899) 245,551
Reclass of IO reserves to subordinated
trust assets (21,802) 97,171 --
----------- ----------- -----------
Ending balance $ 95,954 $ 85,272 $ 245,551
----------- ----------- -----------
</TABLE>
<PAGE> 4
ADVANTA CORP.
HIGHLIGHTS (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------------------------------------------------
PERCENT
CHANGE
FROM
SEPTEMBER 30, JUNE 30, SEPTEMBER 30, PRIOR
2000 2000 1999 QUARTER
------------- -------- ------------- -------
<S> <C> <C> <C> <C>
EARNINGS
As a % of average managed receivables:
Operating expenses 3.44% 3.37% 3.24% 2.1%
Charge-offs:
New methodology (a) 2.45 2.69 -8.9
Prior methodology 1.86 1.59
Efficiency ratio 65.52 62.01 62.13 5.7
Basic earnings (loss) per common
share $ 0.62 $ (7.64) $ 0.57 N/M
Diluted earnings (loss) per common
share $ 0.62 $ (7.64) $ 0.55 N/M
Return on average common equity 14.76% (142.13)% 9.98% N/M
COMMON STOCK DATA
-----------------
Weighted average common shares
used to compute:
Basic earnings per common share 25,259 25,232 23,413 0.1%
Diluted earnings per common share 25,326 25,232 23,990 0.4
Ending shares outstanding 27,222 27,237 27,086 -0.1
Stock price:
Class A
High $13.563 $21.000 $23.938 -35.4
Low 10.688 10.875 14.625 -1.7
Closing 11.250 12.188 14.625 -7.7
Class B
High 10.188 15.125 19.125 -32.6
Low 7.500 7.750 11.375 -3.2
Closing 8.141 8.500 11.750 -4.2
Cash dividends declared
Class A 0.063 0.063 0.063 0.0
Class B 0.076 0.076 0.076 0.0
Book value per common share 16.81 16.08 22.65 4.6
</TABLE>
(a) Beginning in the second quarter of 2000, charge-off and delinquency
statistics reflect the adoption of new charge-off policies for mortgage
loans and leases. Mortgage loans are generally charged-off at the
earlier of foreclosure or 180 days delinquent. The previous policy was
the earlier of foreclosure or 12 months delinquent. Leases are
generally charged-off at 121 days delinquent, however the timing of the
delinquency measurement was changed from mid-month to month end in the
second quarter of 2000. Cumulative catch-up adjustments included in
second quarter charge-off amounts are not annualized when calculating
the annualized charge-off rate under the new methodologies.
- Statistical Supplement Available at http://www.advanta.com -
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