-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GFr1vb/U0ye4aCa27H1rsCds0UYS729GB3E/NODTnGceRI54+2rVks/roVfMP2VA ud5tgr4yWAdLstkftEpOpw== 0000096638-97-000003.txt : 19970417 0000096638-97-000003.hdr.sgml : 19970417 ACCESSION NUMBER: 0000096638-97-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970416 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVANTA CORP CENTRAL INDEX KEY: 0000096638 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 231462070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14120 FILM NUMBER: 97582187 BUSINESS ADDRESS: STREET 1: P.O. BOX 844 STREET 2: WELSH & MCKEAN ROADS CITY: SPRING HOUSE STATE: PA ZIP: 19044 BUSINESS PHONE: 2156574000 MAIL ADDRESS: STREET 1: BRANDYWINE CORPORATE CENTER STREET 2: 650 NAAMANS ROAD CITY: CLAYMONT STATE: DE ZIP: 19703 FORMER COMPANY: FORMER CONFORMED NAME: TSO FINANCIAL CORP DATE OF NAME CHANGE: 19880306 FORMER COMPANY: FORMER CONFORMED NAME: TEACHERS SERVICE ORGANIZATION INC DATE OF NAME CHANGE: 19850812 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 16, 1997 ________________________ADVANTA Corp.____________________________ (Exact name of registrant as specified in its charter) _______Delaware________ _____0-14120________ ______23-1462070__ (State or other jurisdic- (Commission File (IRS Employer tion of incorporation or Number) Identification No.) Organization) Welsh and McKean Roads, P.O. Box 844, Spring House, PA (Address of principal executive offices) 19477 (Zip Code) Registrant's telephone number, including area code: (215) 657-4000 5. Other Events. On April 16, 1997 Advanta Corporation announced its first quarter financial results, for the period ending March 31, 1997. For the quarter, Advanta achieved net revenues of $182.5 million, comprised of $156.9 million in noninterest revenues, and $25.6 million in net interest income. In the first quarter of 1996, Advanta reported net revenues of $187.7 million. As previously announced, the Company reported a loss of $19.8 million, or $0.43 per share, compared to net income of $41 million, or $0.91 per share for the first quarter of last year. Earnings for the fourth quarter of 1996 totaled $45 million, or $1.00 per share. From March 1996, the Company's portfolio of managed receivables increased by $2.4 billion, or 17%, to $16.5 billion. Since year- end 1996, managed receivables grew $162 million or 1%, on the strength of the Company's mortgage and leasing businesses. Highlights for the first quarter include the following items, which are consistent with the first quarter projections released on March 17: Average managed credit card receivables posted a 16.7% increase from the $10.6 billion in the year ago quarter. At the close of March, ending managed credit card receivables were $12.2 billion, down 4.0% from the prior quarter. The consolidated managed charge-off and delinquency rates were 5.3% and 5.5%, respectively. Charge-offs increased from the 3.9% reported in the last quarter, while the delinquency rate was slightly above the 5.4% for that period. The first quarter charge-off and delinquency rates for managed credit cards were 6.6% and 5.2%, respectively, as compared to 4.6% and 5.0% for those measures in the prior quarter. The Company added over 530,000 new credit card accounts during the quarter compared to approximately 675,000 added in the first quarter of 1996. Total credit card accounts now stand at over 6.1 million. Due to the quarterly loss, return on common equity was a negative 11.4% for the first quarter, as compared to 25.8% for the 1996 first quarter. Managed net interest margin for the quarter rose to 7.05% from 6.89% in the fourth quarter, and 6.24% in the comparable period of 1996. Gains from the repricing of introductory rate credit cards were partially offset by growth in the lower margin personal finance and business services units. The operating expense ratio increased 16 basis points to 3.2% in the first quarter, slightly above the 3.1% and 2.8% seen in the fourth and first quarters of 1996. Any statements released by Advanta that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risks and uncertainties which may affect the Company's business and prospects. At present, the most significant among these risks and uncertainties are: (1) the Company's managed net interest margin, which in turn is affected by the Company's success in originating new credit card accounts, receivables volume and initial pricing of new accounts, impact of repricing existing accounts and account attrition, mix of account types and interest rate fluctuations; (2) the level of delinquencies and charge-offs; and (3) the level of expenses. Earnings may also be affected by factors affecting consumer debt, competitive pressures and ratings on debt of the Company and its subsidiaries. Additional risks that may affect future performance are detailed in the Company's filings with the SEC. Item 7. Financial Statements and Exhibits. (c) Exhibits. The following exhibit is filed as part of this Report on Form 8-K: 27 Financial Data Schedules. 99 Selected summary financial data. 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 thereunto duly authorized. ADVANTA Corp. Date: April 16, 1997 By: /s/ Gene S. Schneyer Gene S. Schneyer, Vice President and Secretary Exhibit 99 ADVANTA AND SUBSIDIARIES FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Three Months Ended % Change March 31, 1997 versus 1997 1996 1996 OPERATING RESULTS Net Revenues $182.5 $187.7 (2.8%) Provision for Losses $ 60.4 $ 15.1 300.2% Operating Expenses $148.8 $110.5 34.7% Net Income (Loss) $(19.8) $ 41.0 NM Earnings (Loss) Per Common Share $(0.43) $ .91 NM Average Shares (Millions) 46.2 44.9 2.8% Return on Common Equity (11.4%) 25.8% NM Managed Net Interest Margin 7.05% 6.24% 13.0% Exhibit 99 ADVANTA AND SUBSIDIARIES FINANCIAL HIGHLIGHTS ($ in millions, except per share data) % Change March 1997 March 31, December 31, March 31, versus 1997 1996 1996 March 1996 FINANCIAL CONDITION Gross Receivables - Owned $ 2,535 $ 2,656 $ 3,012 (15.8%) - Managed $16,451 $16,289 $14,091 16.7% Total Assets - Owned $ 6,244 $ 5,584 $ 4,985 25.3% - Managed $20,160 $19,217 $16,064 25.5% Stockholders' Equity $ 837 $ 852 $ 710 17.8% Book Value Per Common Share $ 17.38 $ 18.06 $ 15.17 14.6% Equity/Owned Assets 15.0% 17.1% 14.3% 5.3% Equity/Managed Assets 4.7% 5.0% 4.4% 5.2% CREDIT QUALITY Net Charge-off Rate Managed Credit Cards 6.6% 4.6% 3.2% 106.3% Managed Personal Finance 0.6% 0.7% 0.7% (14.3%) Total Managed Receivables 5.3% 3.9% 2.8% 89.3% 30+ Day Delinquency Rate Managed Credit Cards 5.2% 5.0% 2.7% 92.6% Managed Personal Finance 6.3% 7.1% 5.5% 14.5% Total Managed Receivables 5.5% 5.4% 3.2% 71.9% EX-27 2
9 1,000 3-MOS DEC-31-1997 MAR-31-1997 147175 834444 780584 0 857889 0 0 2582224 105377 6244266 1958791 1580984 300482 1467198 442 0 1010 835359 6244266 66022 31052 0 97074 27096 44366 25612 60364 3442 148811 (26709) (26709) 0 0 (19818) (.43) (.43) 2.22 35263 42821 0 0 89184 41018 3253 105377 105216 0 161
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