SAN FRANCISCO, Jan. 30 /PRNewswire-FirstCall/ -- Providian Financial
Corporation (NYSE: PVN) today announced net income for the fourth quarter of
2002 of $12.1 million, or $0.04 per diluted share, compared to a net loss of
$481.2 million, or $1.70 per diluted share, in the fourth quarter of 2001.
For the full year 2002, net income totaled $218.2 million, or $0.75 per
diluted share, compared to net income for the full year 2001 of $38.9 million,
or $0.13 per diluted share.
"As a result of the successful completion of our restructuring initiatives
in 2002, Providian is now a much stronger company -- financially,
strategically and operationally," said Joseph Saunders, Providian's chairman
and chief executive officer. "Our success in the past year is a testament to
the hard work and effort of Providian's employees who are dedicated to
rebuilding the Company and restoring shareholder value. And although we have
more work to do to achieve our goals, I believe that we have made solid
progress over the past year and we are carrying positive momentum into 2003."
Financial Results
In the fourth quarter of 2002, the Company recognized several items that
affected its financial results. These include the adoption of new regulatory
capital rules for the accrued interest receivable asset, a loss related to the
sale of substantially all the third party charged-off receivables of the
Company's First Select subsidiary, a gain related to the credit performance of
the receivables in the Providian Master Trust which the Company sold to a
subsidiary of J.P. Morgan Chase & Co. in February 2002, and an increase in net
credit losses due to a change in the Company's charge-off policy for deceased
customers. Additional detail on each of these items is provided below.
Total managed revenue for the fourth quarter of 2002, comprised of managed
net interest income and managed non-interest income, was $1.02 billion.
Managed net interest income for the fourth quarter of 2002 was $734.6 million
and the managed net interest margin on loans was 15.67%. Managed non-interest
income for the fourth quarter of 2002 was $283.8 million and included a pre-
tax charge of approximately $42 million related to the sale of substantially
all of the third party charged-off receivables held by First Select in
December 2002 and a pre-tax gain of approximately $20 million related to an
earn-out agreement from the sale of the Providian Master Trust in February
2002. For the full year 2002, total managed revenue was $5.6 billion,
comprised of $3.26 billion of managed net interest income and $2.34 billion of
managed non-interest income. The managed net interest margin on loans for the
full year 2002 was 15.46%.
The Company ended the fourth quarter with $19.6 billion in total managed
credit card loans and 12.0 million accounts, compared to $19.4 billion in
managed credit card loans and 12.7 million accounts at the end of the third
quarter of 2002. Total accounts in the fourth quarter of 2002 declined by
approximately 600,000 accounts as a result of the sale of First Select
receivables. During the fourth quarter of 2002, the Company originated over
750,000 new customer accounts, bringing new account originations for the full
year 2002 to approximately 2.1 million accounts.
"We successfully completed our key financial objectives in 2002," said
Anthony Vuoto, Providian's vice chairman and chief financial officer. "Over
the course of the year, we completed the sale of more than $10 billion in
managed loans receivable, strengthened the capitalization of our banking
subsidiaries, accessed the capital markets for over $1.8 billion in new
securitization funding and built a strong liquidity position, all while
reducing deposits by $2.6 billion. As a result, we have significantly
strengthened the financial foundation of the Company."
The Company's managed net credit loss rate was 17.34% for the fourth
quarter of 2002 and 16.29% for the full year 2002. As described in the
Company's Form 10-Q for the quarter ended September 30, 2002, effective
November 1, 2002 the Company began recognizing charge-offs for accounts of
deceased customers within 60 days after verification of death. The transition
to the new policy increased managed net credit losses in the fourth quarter of
2002 by approximately $16 million. Consistent with the Company's
expectations, managed net credit losses for the full year 2002 were $3.53
billion. The managed 30+ day delinquency rate at the end of the fourth
quarter of 2002 was 11.11%, compared to 11.23% at the end of the third quarter
of 2002. For full year 2003, the Company expects managed net credit losses of
approximately $3.0 billion, with managed net credit losses of approximately
$875 million in the first quarter of 2003.
Non-interest expense (excluding solicitation and advertising) was $254.7
million for the fourth quarter of 2002. The fourth quarter's results compare
to non-interest expense (excluding solicitation and advertising) of $325.8
million in the prior quarter, a sequential decrease of $71.1 million. On a
full year basis, the Company's non-interest expense in 2002 (excluding
solicitation and advertising) was $1.4 billion, compared to $1.7 billion in
2001, an annual reduction of over $328 million. Solicitation and advertising
expense in the fourth quarter of 2002 was $65.6 million compared to $126.4
million in the prior quarter. The sequential reduction in solicitation and
advertising expense was primarily due to the elimination of the majority of
the costs associated with First Select and a seasonal decrease in mailings and
related costs in the latter part of the fourth quarter.
Capital and Liquidity
The Company ended the fourth quarter of 2002 with total equity, including
capital securities, of $2.24 billion and an allowance for loan losses of $1.01
billion, which together represent 47% of reported loans and 17% of managed
loans. Cash and investments ended the quarter at approximately $5.8 billion,
representing approximately 84% of reported loans and approximately 30% of
managed loans.
The Company's banking subsidiaries remain on track with the requirements
of their Capital Plan. For the fourth quarter of 2002, Providian National
Bank and Providian Bank, were required to maintain a total risk-based capital
ratio at "well capitalized" levels on a Call Report basis, and are required to
maintain a total risk-based capital ratio of at least 8% after applying
increased risk weightings consistent with the Expanded Guidance for Subprime
Lending Programs ("Subprime Guidance"). As of December 31, 2002, Providian
National Bank and Providian Bank, exceeded the 10% "well capitalized" level on
a Call Report basis with total risk-based capital ratios of 11.90% and 19.75%,
respectively. After application of the Subprime Guidance risk weightings,
Providian National Bank and Providian Bank, had total risk-based capital
ratios in excess of 8.00% with total risk-based capital ratios of 9.35% and
11.86%, respectively.
Regulatory Update
In the fourth quarter of 2002, the Company adopted the December 2002
Interagency Advisory on Accounting for the Accrued Interest Receivable Asset
and recognized an asset commonly referred to as an accrued interest receivable
(AIR) as a retained subordinated interest for regulatory capital purposes. The
AIR represents accrued fees and finance charges on the Company's securitized
credit card receivables pool and is now recorded in "due from securitizations"
on the Company's balance sheet. Under the new regulatory guidance, the
Company will hold additional risk-based capital against the AIR, in an amount
consistent with its treatment as a retained subordinated interest. To
accommodate the impact of the AIR guidance, Providian National Bank received a
12 month extension from its regulator until June 30, 2004 to achieve a total
risk-based capital ratio of at least 10%, after applying Subprime Guidance,
including the additional capital required for the AIR. Without the effect of
the capital requirement for the AIR, Providian National Bank continues to be
required to achieve a total-risked based capital ratio of at least 10%, after
applying Subprime Guidance, by June 30, 2003. As a result of the adoption of
the AIR guidance, reported loans receivable were reduced by approximately $400
million, and the Company recognized a pre-tax gain of approximately $77
million primarily driven by a reduction in the allowance for loan losses.
On January 8, 2003, the federal banking agencies released final guidance
regarding account management and loss allowances for credit card lending. In
light of the new guidance, the Company has reviewed its practices for account
management and loan loss allowances and has discussed those practices with its
banking regulators. Based upon the results of its review and discussions with
its regulators, the Company believes that it will be able to conform to the
guidance without any major impact on its business model or financial
performance.
Operating Initiatives
The Company completed the closure of its Salt Lake City, Utah and
Fairfield, California operations facilities in the fourth quarter of 2002. At
year-end 2002, the Company had 6,261 employees compared to 11,897 employees at
year-end 2001.
About Providian
San Francisco-based Providian Financial is a leading provider of credit
cards and deposit products to customers throughout the U.S. By combining
experience, analysis, technology and outstanding customer service, Providian
seeks to build long-lasting relationships with its customers by providing
products and services that meet their evolving financial needs. One of
America's largest bankcard issuers, Providian has over $19 billion in managed
receivables and more than 12 million customer relationships.
Certain statements contained in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
and are subject to the "safe harbor" created by those sections. Forward-
looking statements include expressions of "belief," "anticipation," or
"expectations" of management, statements as to industry trends or future
results of operations of the Company, and other statements that are not
historical fact. Forward-looking statements are based on certain assumptions
by management and are subject to risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. These risks and uncertainties include, but are not limited to:
competitive pressures; factors that affect delinquency rates, credit loss
rates, liquidity and charge-off rates; general economic conditions; consumer
loan portfolio growth; changes in the cost and/or availability of funding due
to changes in the deposit, credit or securitization markets, changes in the
way in which the Company is perceived in such markets, and/or conditions
relating to existing or future financing commitments; the effects of
government policy and regulation, whether of general applicability or specific
to the Company, including restrictions and/or limitations on the Company's
minimum capital requirements, deposit taking abilities, reserve methodologies,
dividend policies and payments, growth, and/or underwriting criteria; year-end
audit adjustments; changes in accounting rules, policies, practices and/or
procedures; the success of product development efforts; legal and regulatory
proceedings, including the impact of ongoing litigation; interest rates;
acquisitions; one-time charges; extraordinary items; the ability to attract
and retain key personnel and the impact of existing, modified or new strategic
initiatives. These and other risks and uncertainties are described in detail
in the Company's Annual Report on Form 10-K and Annual Report to Stockholders
for the fiscal year ended December 31, 2001 under the headings "Cautionary
Statement Regard Forward-Looking Information" and "Risk Factors." Readers are
cautioned not to place undue reliance on any forward-looking statement, which
speaks only as of the date thereof. The Company undertakes no obligation to
update any forward-looking statements.
NOTE: Investor information is available on Providian Financial's website
at http://www.providian.com.
PROVIDIAN FINANCIAL CORPORATION (PVN)
FINANCIAL & STATISTICAL SUMMARY
EXCLUDING DISCONTINUED OPERATIONS
(unaudited)
(in millions, except
per share and 2002 2002 2002 2002 2001
employee data) Q4 Q3 Q2 Q1 Q4
Earnings
(Managed Basis):
Net Interest Income $734.6 $779.8 $783.2 $962.4 $990.9
Non-Interest Income 283.8 444.1 532.6 1,079.1 224.4
Total Revenue 1,018.4 1,223.9 1,315.8 2,041.5 1,215.3
Provision for Loan
Losses 678.1 751.7 677.9 1,483.1 1,272.0
Non-Interest Expense 320.3 452.2 489.3 547.1 596.6
Income (loss) From
Operations Before
Taxes 20.0 20.0 148.6 11.3 (653.3)
Tax (Benefit) Expense 7.9 (22.1) 58.7 4.5 (258.0)
Income (loss) From
Operations $12.1 $42.1 $89.9 $6.8 $(395.3)
Income (loss)
from Discontinued
Operations -- -- 64.0 3.2 (85.9)
Net Income $12.1 $42.1 $153.9 $10.0 $(481.2)
Managed Financial Data:
Quarter End:
Credit Cards $19,621 $19,444 $19,630 $22,134 $32,644
Home Loans 7 9 9 10 10
Total Loans $19,628 $19,453 $19,639 $22,144 $32,654
Securitized Loans $12,332 $11,255 $12,126 $12,231 $19,684
Total Assets $26,543 $26,893 $28,014 $28,994 $37,659
Total Capital
(Includes Capital
Securities) $2,243 $2,235 $2,185 $1,994 $2,012
Total Equity $2,139 $2,131 $2,081 $1,890 $1,908
Quarter Average:
Credit Cards $19,336 $19,228 $19,764 $26,994 $32,103
Home Loans 8 9 9 9 13
Total Loans $19,344 $19,237 $19,773 $27,003 $32,116
Securitized Loans $11,294 $11,932 $12,195 $15,246 $18,001
Earning Assets $25,534 $26,942 $26,438 $31,673 $36,324
Total Assets $26,222 $27,511 $28,576 $32,667 $37,627
Total Equity $2,100 $2,107 $2,008 $1,962 $2,251
Key Statistics:
Managed:
Net Interest
Margin (Earning
Assets) 11.51% 11.58% 11.85% 12.15% 10.91%
Net Interest
Margin (Loans) 15.67% 16.73% 16.38% 14.45% 12.31%
Risk-Adjusted
Margin (Loans) (A) 4.20% 9.25% 9.62% 15.38% 2.40%
Return on Assets 0.18% 0.61% 2.15% 0.12% -5.12%
Return on Equity 2.31% 8.00% 30.64% 2.04% -85.52%
Net Credit Losses $838.4 $803.7 $866.7 $1,016.3 $1,020.0
Net Credit Loss Rate 17.34% 16.71% 17.53% 15.05% 12.70%
Delinquency Rate
(30+ Days) 11.11% 11.23% 10.16% 10.22% 8.81%
Equity to Managed
Assets 8.06% 7.92% 7.43% 6.52% 5.07%
On Balance Sheet:
Allowance as a
Percent of Loans 14.67% 15.26% 16.34% 17.06% 16.76%
Net Credit Loss Rate 14.88% 13.38% 14.21% 14.04% 12.23%
Delinquency Rate
(30+ Days) 10.00% 8.14% 7.29% 8.32% 7.58%
Common Share
Statistics:
EPS Basic:
EPS - Continuing
Operations $0.04 $0.15 $0.32 $0.02 $(1.39)
EPS - Discontinued
Operations -- -- 0.22 0.01 (0.31)
EPS - Basic $0.04 $0.15 $0.54 $0.03 $(1.70)
EPS - Diluted: (B)
EPS - Continuing
Operations $0.04 $0.15 $0.31 $0.02 $(1.39)
EPS - Discontinued
Operations -- -- 0.22 0.01 (0.31)
EPS - Assuming
Dilution $0.04 $0.15 $0.53 $0.03 $(1.70)
Book Value Per
Share (Period End) $7.40 $7.37 $7.20 $6.54 $6.70
Total Market
Capitalization
(Period End) $1,876 $1,417 $1,700 $2,181 $1,011
Shares Outstanding
(Period End) 289.4 289.2 289.1 288.9 284.8
Weighted Average
Shares O/S - Basic 285.4 285.3 284.2 283.9 283.4
Weighted Average
Shares O/S - Diluted 289.2 294.1 294.2 288.5 283.4
Accounts 12.0 12.7 12.9 15.0 18.4
Employees (FTE) 6,261 7,331 8,393 10,153 11,897
(A) Risk-adjusted margin is total loan revenue less credit losses as a
percentage of average managed loans.
(B) EPS - Diluted - During the second and third quarters of 2002,
$2 million of interest expense related to the 3.25% Convertible Note
was added back to income.During the first and fourth quarters of 2002
and the fourth quarter of 2001 there was no interest expense add-back
because the effect would be antidilutive.
PROVIDIAN FINANCIAL CORPORATION (PVN)
FINANCIAL & STATISTICAL SUMMARY
EXCLUDING DISCONTINUED OPERATIONS
2002 2001
(in millions, except per Year End Year End
share and employee data) (unaudited)
Earnings (Managed Basis):
Net Interest Income $3,259.9 $3,818.0
Non-Interest Income 2,339.7 2,477.0
Total Revenue 5,599.6 6,295.0
Provision for Loan Losses 3,590.7 3,713.8
Non-Interest Expense 1,808.9 2,347.5
Income From Operations Before Taxes 200.0 233.7
Tax Expense 49.0 92.3
Income From Operations $151.0 $141.4
Income (loss) from Discontinued Operations 67.2 (118.2)
Extraordinary Item-Extinguishment of Debt -- 13.9
Cumulative Effect of Accounting Change -- 1.8
Net Income $218.2 $38.9
Managed Financial Data:
Year End:
Credit Cards $19,621 $32,644
Home Loans 7 10
Total Loans $19,628 $32,654
Securitized Loans $12,332 $19,684
Total Assets $26,543 $37,659
Total Capital (Includes Capital Securities) $2,243 $2,012
Total Equity $2,139 $1,908
Year to Date Average:
Credit Cards $21,630 $29,822
Home Loans 9 12
Total Loans $21,639 $29,834
Securitized Loans $12,626 $15,646
Earning Assets $27,985 $33,742
Total Assets $28,523 $35,261
Total Equity $2,047 $2,286
Key Statistics:
Managed:
Net Interest Margin (Earning Assets) 11.65% 11.31%
Net Interest Margin (Loans) 15.46% 12.78%
Risk-Adjusted Margin (Loans) (A) 9.98% 10.38%
Return on Assets 0.76% 0.11%
Return on Equity 10.66% 1.72%
Net Credit Losses $3,525.2 $3,216.8
Net Credit Loss Rate 16.29% 10.78%
Delinquency Rate (30+ Days) 11.11% 8.81%
Equity to Managed Assets 8.06% 5.07%
On Balance Sheet:
Allowance as a Percent of Loans 14.67% 16.76%
Net Credit Loss Rate 13.61% 10.70%
Delinquency Rate (30+ Days) 10.00% 7.58%
Common Share Statistics:
EPS Basic:
EPS - Continuing Operations $0.53 $0.50
EPS - Discontinued Operations 0.24 (0.42)
EPS - Extraordinary Item -- 0.05
EPS - Cumulative Effect of Accounting Change -- 0.01
EPS - Basic $0.77 $0.14
EPS - Diluted: (B)
EPS - Continuing Operations $0.52 $0.49
EPS - Discontinued Operations 0.23 (0.42)
EPS - Extraordinary Item -- 0.05
EPS - Cumulative Effect of Accounting Change -- 0.01
EPS - Assuming Dilution $0.75 $0.13
Book Value Per Share (Period End) $7.40 $6.70
Total Market Capitalization (Period End) $1,876 $1,011
Shares Outstanding (Period End) 289.4 284.8
Weighted Average Shares O/S - Basic 285.0 284.3
Weighted Average Shares O/S - Diluted 289.0 289.6
Accounts 12.0 18.4
Employees (FTE) 6,261 11,897
(A) Risk-adjusted margin is total loan revenue less credit losses as a
percentage of average managed loans.
(B) EPS-Diluted - For the years ended 2002 and 2001, the conversion of
the 3.25% Convertible Note is excluded because the effects would be
antidilutive.
PROVIDIAN FINANCIAL CORPORATION (PVN)
DELINQUENCY SUMMARY
EXCLUDING DISCONTINUED OPERATIONS
Quarterly
2002 2002
(dollars in thousands) Q4 Q3
(unaudited)
% of % of
Total Total
Loans Loans Loans Loans
Reported
Loans outstanding (A) (B) $6,899,849 100.00% $8,185,724 100.00%
Loans delinquent
30 - 59 days $205,605 2.98% $243,298 2.97%
60 - 89 days 147,057 2.13% 166,733 2.04%
90 or more days 336,979 4.89% 256,676 3.13%
Total $689,641 10.00% $666,707 8.14%
Managed
Loans outstanding (A) $19,619,601 100.00% $19,440,870 100.00%
Loans delinquent
30 - 59 days $665,900 3.39% $676,255 3.48%
60 - 89 days 482,757 2.46% 502,445 2.58%
90 or more days 1,031,108 5.26% 1,004,435 5.17%
Total $2,179,765 11.11% $2,183,135 11.23%
(A) Loans outstanding include loans held for sale at par, and exclude
SFAS No. 133 market value adjustments.
(B) Effective December 2002, the Company adopted the accrued interest
receivable, or AIR rule, resulting in a reclass of accrued interest
receivable from Reported Loans to Due From Securitizations.
PROVIDIAN FINANCIAL CORPORATION (PVN)
DELINQUENCY SUMMARY
EXCLUDING DISCONTINUED OPERATIONS
(unaudited)
Quarterly
2002 2002
(dollars in thousands) Q2 Q1
% of % of
Total Total
Loans Loans Loans Loans
Reported
Loans outstanding (A) (B) $7,495,030 100.00% $10,881,235 100.00%
Loans delinquent
30 - 59 days $209,450 2.79% $286,575 2.63%
60 - 89 days 139,787 1.87% 206,075 1.89%
90 or more days 197,206 2.63% 413,163 3.80%
Total $546,443 7.29% $905,813 8.32%
Managed
Loans outstanding (A) $19,620,861 100.00% $23,111,887 100.00%
Loans delinquent
30 - 59 days $645,394 3.29% $670,325 2.90%
60 - 89 days 451,711 2.30% 509,754 2.21%
90 or more days 896,284 4.57% 1,181,527 5.11%
Total $1,993,389 10.16% $2,361,606 10.22%
(A) Loans outstanding include loans held for sale at par, and exclude
SFAS No. 133 market value adjustments.
(B) Effective December 2002, the Company adopted the accrued interest
receivable, or AIR rule, resulting in a reclass of accrued interest
receivable from Reported Loans to Due From Securitizations.
PROVIDIAN FINANCIAL CORPORATION (PVN)
DELINQUENCY SUMMARY
EXCLUDING DISCONTINUED OPERATIONS
(unaudited)
Quarterly
2001
(dollars in thousands) Q4
% of
Total
Loans Loans
Reported
Loans outstanding (A) (B) $12,939,877 100.00%
Loans delinquent
30 - 59 days $376,145 2.91%
60 - 89 days 249,709 1.93%
90 or more days 354,407 2.74%
Total $980,261 7.58%
Managed
Loans outstanding (A) $32,623,551 100.00%
Loans delinquent
30 - 59 days $934,113 2.87%
60 - 89 days 666,416 2.04%
90 or more days 1,272,335 3.90%
Total $2,872,864 8.81%
(A) Loans outstanding include loans held for sale at par, and exclude
SFAS No. 133 market value adjustments.
(B) Effective December 2002, the Company adopted the accrued interest
receivable, or AIR rule, resulting in a reclass of accrued interest
receivable from Reported Loans to Due From Securitizations.
Condensed Consolidated Statements of Financial Condition
Providian Financial Corporation and Subsidiaries
December 31,
(dollars in thousands) 2002 2001
(unaudited)
Assets
Cash and cash equivalents $344,277 $449,586
Federal funds sold and securities
purchased under
resale agreements 3,601,000 1,611,000
Investment securities:
Available-for-sale 1,856,607 1,324,465
Loans held for securitization or sale -- 1,410,603
Loans receivable, less allowance for
credit losses of $1,012,461 at
December 31, 2002 and $1,932,833 at
December 31, 2001 5,895,296 9,626,307
Premises and equipment, net 119,260 183,829
Interest receivable 60,841 116,053
Due from securitizations 3,723,382 2,926,181
Deferred taxes 487,529 1,030,340
Other assets 622,197 521,159
Assets of discontinued operations -- 738,643
Total assets $16,710,389 $19,938,166
Liabilities
Deposits $12,708,315 $15,318,165
Short-term borrowings 91,560 117,176
Long-term borrowings 877,238 959,281
Deferred fee revenue 211,978 468,310
Accrued expenses and other liabilities 577,894 885,780
Liabilities of discontinued operations -- 177,611
Total liabilities 14,466,985 17,926,323
Capital securities 104,332 104,332
Shareholders' equity 2,139,072 1,907,511
Total liabilities and
shareholders' equity $16,710,389 $19,938,166
Condensed Consolidated Statements of Income
Providian Financial Corporation and Subsidiaries
Three months ended Twelve months ended
(dollars in thousands, December 31, December 31,
except per share data) 2002 2001 2002 2001
(unaudited) (unaudited)
Interest Income
Loans $323,451 $493,941 $1,490,258 $2,393,389
Federal funds sold and
securities purchased
under resale agreements 11,432 6,408 37,473 41,928
Other 31,196 39,325 163,552 152,398
Total interest income 366,079 539,674 1,691,283 2,587,715
Interest Expense
Deposits 169,548 217,876 729,294 872,977
Borrowings 10,362 12,572 42,700 61,332
Total interest expense 179,910 230,448 771,994 934,309
Net interest income 186,169 309,226 919,289 1,653,406
Provision for credit losses 138,908 683,508 1,291,738 2,014,342
Net interest income
after provision for
credit losses 47,261 (374,282) (372,449) (360,936)
Non-Interest Income
Servicing and
securitizations 47,994 (12,162) 618,241 853,444
Credit product fee income 247,366 284,190 1,152,041 1,892,137
Other (2,290) 45,512 611,065 196,612
293,070 317,540 2,381,347 2,942,193
Non-Interest Expense
Salaries and employee
benefits 94,741 142,250 527,960 667,902
Solicitation and
advertising 65,597 167,750 404,872 615,427
Occupancy, furniture,
and equipment 43,292 65,548 222,812 222,169
Data processing and
communication 31,889 46,918 165,504 202,501
Other 84,779 174,104 487,734 639,511
320,298 596,570 1,808,882 2,347,510
Income from continuing
operations before
income taxes 20,033 (653,312) 200,016 233,747
Income tax (benefit) expense 7,913 (258,059) 49,006 92,330
Income (loss) from
continuing
operations after tax 12,120 (395,253) 151,010 141,417
Income (loss) from
discontinued operations
- net of related taxes -- (85,918) 67,156 (118,271)
Extraordinary item
extinguishment of debt
- net of related taxes -- -- -- 13,905
Cumulative effect of
change in accounting
principle - net of
related taxes -- -- -- 1,846
Net Income $12,120 $(481,171) $218,166 $38,897
Earnings per common share
- basic
Income from continuing
operations $0.04 $(1.39) $0.53 $0.50
Income (loss) from
discontinued operations
- net of related taxes -- (0.31) 0.24 (0.42)
Extraordinary item
extinguishment of debt
- net of related taxes -- -- -- 0.05
Cumulative effect of change
in accounting principle
- net of related taxes -- -- -- 0.01
Net Income $0.04 $(1.70) $0.77 $0.14
Earnings per common share
- diluted
Income from continuing
operations $0.04 $(1.39) $0.52 $0.49
Income (loss) from
discontinued operations
- net of related taxes -- (0.31) 0.23 (0.42)
Extraordinary item
extinguishment of debt
- net of related taxes -- -- -- 0.05
Cumulative effect of
change in accounting
principle - net of
related taxes -- -- -- 0.01
Net Income $0.04 $(1.70) $0.75 $0.13
Weighted average common
shares outstanding
- basic (000) 285,379 283,402 285,001 284,299
Weighted average common
shares outstanding
- assuming dilution (000) 289,236 283,402 289,042 289,622
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
investors, Jack Carsky, +1-415-278-4977, or
Bill Horning, +1- 415-278-4602, or media, Alan Elias,
+1-415-278-4189, or Laurel Munson, +1-415-278-4770
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