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Previous: ADVANTA CORP, 8-K, 2000-08-02 |
Next: ADVANTA CORP, 424B3, 2000-08-02 |
<PAGE> 1
Exhibit 99
ADVANTA CORP.
SUPPLEMENTAL CONSOLIDATING INCOME STATEMENT
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
ADVANTA ADVANTA
ADVANTA BUSINESS LEASING
MORTGAGE CARDS SERVICES OTHER (a) TOTAL
---------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Interest income $ 48,844 $19,136 $ 3,599 $14,945 $ 86,524
Securitization income (196,037) 17,994 (2,564) -- (180,607)
Servicing revenues 36,220 4,546 1,765 -- 42,531
Other revenues, net 2,513 16,721 3,790 1,327 24,351
--------- ------- -------- ------- ---------
Total revenues (108,460) 58,397 6,590 16,272 (27,201)
--------- ------- -------- ------- ---------
EXPENSES:
Operating expenses 62,616 21,470 9,033 1,650 94,769
Interest expense 27,063 7,545 3,108 14,014 51,730
Provision for credit losses 21,385 5,050 1,025 -- 27,460
Minority int. in inc. of consolidated sub 1,776 276 168 -- 2,220
--------- ------- -------- ------- ---------
Total expenses 112,840 34,341 13,334 15,664 176,179
--------- ------- -------- ------- ---------
INCOME (LOSS) BEFORE INCOME TAXES (221,300) 24,056 (6,744) 608 (203,380)
Income tax expense (benefit) (5,953) (5,367) 3,902 (3,267) (10,685)
--------- ------- -------- ------- ---------
NET INCOME (LOSS) $(215,347) $29,423 (b) $(10,646) $ 3,875 $(192,695)
========= ======= ======== ======= =========
</TABLE>
(a) Other includes insurance operations and investment activities not
attributable to other segments.
(b) Advanta Business Cards would have an effective tax rate of 38.5% on a
stand-alone basis, resulting in net income of $14,794.
<PAGE> 2
ADVANTA CORP.
RECONCILIATION OF ADVANTA MORTGAGE TO
PORTFOLIO LENDER EARNINGS FORMAT BEFORE VALUATION ADJUSTMENTS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, 2000
---------------------------------------------------------------------------------------
ADVANTA
MORTGAGE AS A PRO FORMA
PORTFOLIO CONSOLIDATED
ADVANTA PRO FORMA LENDER BEFORE PRO FORMA BEFORE
MORTGAGE AS & OTHER VALUATION REMAINING VALUATION
REPORTED ADJUSTMENTS ADJUSTMENTS BUSINESSES ADJUSTMENTS
----------- ----------- ------------- ---------- ------------
[G] [F] [F]
<S> <C> <C> <C> <C> <C>
REVENUES:
Interest income $ 48,844 $185,174 [a] $234,018 $37,680 $271,698
Securitization income (196,037) 196,037 [b] -- 15,430 15,430
Servicing revenues 36,220 (14,306) [c] 21,914 6,311 28,225
Other revenues, net 2,513 -- 2,513 21,630 24,143
--------------------------- ------------------------ --------
Total revenues (108,460) 366,905 258,445 81,051 339,496
--------------------------- ------------------------ --------
EXPENSES:
Operating expenses 62,616 1,869 [d] 64,485 32,153 96,638
Interest expense 27,063 131,926 [a] 158,989 24,667 183,656
Provision for credit losses 21,385 2,575 [e] 23,960 6,075 30,035
Minority interest in income of
consolidated subsidiary 1,776 -- 1,776 444 2,220
--------------------------- ------------------------ --------
Total expenses 112,840 136,370 249,210 63,339 312,549
--------------------------- ------------------------ --------
INCOME (LOSS) BEFORE INCOME TAXES (221,300) 230,535 9,235 17,712 26,947
Income tax expense (benefit) (5,953) 9,508 3,555 6,819 10,374
--------------------------- ------------------------ --------
NET INCOME (LOSS) $(215,347) $221,027 $ 5,680 $10,893 $ 16,573
--------------------------- ------------------------ --------
</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%
[g] Adjusted to exclude carrying value adjustments to retained interests in
securitizations, including contractual mortgage servicing rights, and
loan loss reserves. Also adjusted income tax expense to normalized rate
of 38.5%.
<PAGE> 3
ADVANTA CORP.
HIGHLIGHTS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------------------------------------------------------
PERCENT CHANGE
JUNE 30, MARCH 31, JUNE 30, FROM
ORIGINATIONS 2000 2000 1999 PRIOR QUARTER
------------ ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Direct $ 301,393 $ 380,040 $ 407,880 -20.7%
Broker 198,277 183,254 199,889 8.2
Other indirect 3,238 1,454 119,920 122.7
----------- ----------- ----------- ------
Total Advanta Mortgage loans $ 502,908 $ 564,748 $ 727,689 -11.0%
Business credit cards $ 900,381 $ 747,587 $ 471,239 20.4%
Leases 88,437 109,082 113,384 -18.9
SECURITIZATION/SALES VOLUME
Advanta Mortgage $ 477,238 $ 483,944 $ 706,639 -1.4%
Business credit cards 0 157,067 0 -100.0
Leases 126,960 107,253 105,909 18.4
----------- ----------- ----------- ------
Total securitization/sales volume $ 604,198 $ 748,264 $ 812,548 -19.3%
AVERAGE MANAGED RECEIVABLES
Mortgage loans $ 8,413,993 $ 8,346,321 $ 8,267,715 0.8%
Business credit cards 1,319,434 1,120,635 866,732 17.7
Leases 802,661 805,404 692,356 -0.3
Auto loans 67,105 77,445 140,560 -13.4
Other loans 19,939 20,752 17,019 -3.9
----------- ----------- ----------- ------
Total average managed receivables $10,623,132 $10,370,557 $ 9,984,382 2.4%
Total average serviced receivables $24,000,185 $22,877,022 $19,185,050 4.9%
ENDING MANAGED RECEIVABLES
Mortgage loans $ 8,381,881 $ 8,390,122 $ 8,293,166 -0.1%
Business credit cards 1,428,732 1,226,210 886,237 16.5
Leases 820,265 821,258 744,123 -0.1
Auto loans 56,796 74,652 122,836 -23.9
Other loans 21,689 19,521 17,187 11.1
----------- ----------- ----------- ------
Total managed receivables $10,709,363 $10,531,763 $10,063,549 1.7%
Total serviced receivables $24,360,406 $23,607,975 $19,503,445 3.2%
IO AND CMSR ROLLFORWARD
Beginning balance $ 206,538 $ 208,277 $ 271,876
Retained IO on sales, net 33,819 18,663 41,036
Hedge impact (2,913) (1,918) (20,819)
Interest income 21,409 20,346 7,970
Cash received (36,552) (38,830) (42,966)
Additional reserves (234,200) 0 (10,000)
Other, net 0 0 (26)
----------- ----------- -----------
Subtotal (11,899) 206,538 247,071
Reclass of IO reserves to subordinated
trust assets 97,171 0 0
----------- ----------- -----------
Ending balance $ 85,272 $ 206,538 $ 247,071
=========== =========== ===========
</TABLE>
<PAGE> 4
ADVANTA CORP.
HIGHLIGHTS (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------------------------------------------
PERCENT
CHANGE
FROM
JUNE 30, MARCH 31, JUNE 30, PRIOR
2000 2000 1999 QUARTER
-------- --------- -------- -------
<S> <C> <C> <C> <C>
EARNINGS
As a % of average managed receivables:
Operating expenses 3.37% 3.45% 3.25% -2.3%
Charge-offs:
New methodology (a) 2.69
Prior methodology 1.86 1.84 1.46 1.1
Efficiency ratio 62.01 60.81 66.46 2.0
Basic earnings (loss) per common share $ (7.64) $ 0.68 $ 0.49 N/M
Diluted earnings (loss) per common share $ (7.64) $ 0.67 $ 0.49 N/M
Return on average common equity (142.13)% 11.37% 8.94% N/M
COMMON STOCK DATA
Weighted average common shares
used to compute:
Basic earnings per common share 25,232 24,785 23,163 1.8%
Diluted earnings per common share 25,232 25,384 23,373 -0.6
Ending shares outstanding 27,237 27,280 25,445 -0.2
Stock price:
Class A
High $21.000 $21.875 $18.250 -4.0
Low 10.875 16.875 9.625 -35.6
Closing 12.188 20.313 18.063 -40.0
Class B
High 15.125 $15.500 $14.750 -2.4
Low 7.750 11.500 7.594 -32.6
Closing 8.500 14.484 13.563 -41.3
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 $ 16.08 $ 23.68 $ 22.39 (b) -32.1
</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.
(b) Assumes conversion of the Class B Preferred Stock for periods prior to
September 1999.
-Statistical Supplement Available Upon Request-
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