Springleaf Holdings, Inc. (NYSE:LEAF), today reported net income for the
fourth quarter of 2013 of $14 million, or $0.12 per diluted share,
compared with a net loss of $81 million in the fourth quarter of 2012,
or $0.81 per diluted share (based on the pre-initial public offering
share count of 100 million shares). Net loss for the full year 2013 was
$32 million, or $0.31 per diluted share, largely attributable to
expenses associated with the company’s initial public offering and early
retirement of debt, which combined, totaled approximately $200 million
pre-tax. The net loss in 2013 compared to a loss of $219 million, or
$2.19 per diluted share for 2012.
Core Earnings (a non-GAAP measure) for our Core Consumer operations for
the quarter were $48 million, versus $9 million in the prior year
quarter, and Core Earnings per diluted share (a non-GAAP measure) were
$0.42 for the fourth quarter versus $0.09 in the prior year quarter.
Core Earnings for the year were $198 million, versus $55 million in the
prior year, and Core Earnings per diluted share were $1.92 for the year
versus $0.55 in the prior year.
Fourth Quarter Highlights
-
Branch consumer net finance receivables reached $3.1 billion at
December 31, 2013, an increase of $596 million, or 23% from a year
ago, and up 6% from the third quarter.
-
Average receivables per branch grew to $3.8 million at December 31,
2013, up 24% from the prior year and 6% from the third quarter.
-
Risk-adjusted yield for our consumer finance portfolio in the quarter
was 21.18%, an increase of 98 basis points from the prior year quarter
and a decrease of 71 basis points from the third quarter.
Sale of Legacy Real Estate Portfolio
The company has agreed to sell to three different parties a total of
approximately $1.0 billion of mortgage loans serviced by PennyMac. The
sale is expected to generate a gain of approximately $55 million, with
closing anticipated by March 31, 2014. This transaction reflects an
acceleration of the liquidation of the legacy mortgage portfolio through
continued organic runoff and opportunistic sales.
Commenting on Springleaf’s fourth quarter results, Jay Levine,
president and CEO of Springleaf said, “Our results in the fourth quarter
reflect very solid performance across our Core Consumer operations,
including continued growth in receivables per branch and further
expansion in risk adjusted yield. We continue to place our primary
emphasis on growing receivables per branch to take advantage of the
benefits of scale. We remain very excited about the tremendous growth
potential of our branch offices and the outlook for our Core Consumer
operations. During the quarter we also made great progress on improving
our funding profile and cost of funds, and gaining important ratings
upgrades.”
Levine added, “Looking ahead for 2014, we are establishing guidance
ranges for a number of key metrics related to driving profitable growth
in our Core Consumer business, and look forward to great success in our
first full year as a public company.”
Regarding the sale of a portion of its legacy real estate mortgage
portfolio Levine said, “While we continue to manage the runoff of the
portfolio, we will continue to consider opportunistic sales of
additional portions of the portfolio as market conditions allow."
Core Consumer Operations: (Reported on a historical accounting basis,
which is a non-GAAP measure. Refer to the reconciliation of
non-GAAP to comparable GAAP measures, below.)
Branch Operations
Consumer & Insurance pre-tax earnings were $40 million in the quarter
versus $15 million in the fourth quarter of 2012, and down from $42
million in the third quarter of 2013.
Net finance receivables reached $3.1 billion at the end of the quarter,
an increase of 23% from the prior year and 6% quarter over quarter,
driven by the company’s focus on increasing personal loan originations
through its branch network.
Net interest income of $163 million increased 42% from the prior year
quarter, driven by 22% growth in average net finance receivables for the
quarter and gross yield expansion of 169 basis points to 26.34% in the
current quarter. On a quarter over quarter basis, net interest income
increased 9%. Gross yield benefited from the change in the
state-by-state mix of loan originations, in addition to greater focus on
risk-based pricing. Risk adjusted yield, representing gross yield less
the charge-off rate, was 21.18% in the quarter, up 98 basis points from
the fourth quarter of 2012 and down 71 basis points from the third
quarter of 2013.
The delinquency ratio was 2.60% at quarter end, an improvement of 15
basis points from the prior year, and an increase of 28 basis points
from the prior quarter. The annualized gross charge-off ratio was 5.49%
in the quarter, down 14 basis points from the prior year and up 120
basis points from the third quarter, reflecting typical seasonal trends.
Recoveries continued to be depressed in the quarter at 33 basis points
versus 118 basis points in the prior year quarter, due to the impact of
the sale of previously charged-off accounts in the second quarter of
2013. The annualized net charge-off ratio was 5.16% in the quarter, an
increase of 71 basis points from the prior year and 113 basis points
from the prior quarter. The net charge-off ratio in the quarter was also
adversely affected by lower recoveries as the company sold a significant
portion of previously charged-off accounts in June, 2013.
Acquisitions & Servicing (Results reflect the acquisition of the $3.9
billion SpringCastle portfolio in April 2013, and the initiation of
servicing activities in September 2013.)
Our portion of the SpringCastle portfolio and related servicing
contributed $36 million to the company’s consolidated pretax income in
the quarter, after elimination of earnings attributable to the
non-controlling interests. The entire SpringCastle portfolio generated
pre-tax income of $63 million in the quarter, with net interest income
of $136 million and yield of 24.63%. Actual net finance receivables at
quarter-end were $2.5 billion, down from $2.7 billion at September 30.
The principal balance of the portfolio was $3.2 billion at quarter-end
versus $3.4 billion at September 30.
The delinquency ratio for the SpringCastle portfolio was 7.75% at the
end of the quarter, an increase of 30 basis points from the third
quarter, while the annualized net charge-off ratio was 8.46%, down 13
basis points from the prior quarter.
Legacy Real Estate and Other Non-Core
The Legacy Real Estate and Other Non-Core activities generated a pretax
loss of $83 million in the quarter, including $64 million attributable
to the legacy real estate portfolio. Other non-core activities resulted
in a loss of $19 million in the quarter, including $14 million in
non-cash compensation expenses associated with the company’s initial
public offering and a $2 million loss (pretax) on the sale of our
personal loan portfolio in Puerto Rico.
Liquidity and Capital Resources
As of December 31, 2013, the company had $431 million of cash and cash
equivalents, in addition to $1 billion available undrawn revolving loan
capacity. The company had total outstanding debt of $12.7 billion at
quarter-end, in a variety of debt instruments principally including $4.7
billion unsecured debt, $4.0 billion in mortgage securitizations and
$3.3 billion in consumer loan securitizations.
2014 Guidance
The company has established 2014 guidance ranges for its Core Consumer
loan portfolio and SpringCastle as follows:
|
|
|
FY 2013A(1)
|
|
|
FY 2014E Range
|
Consumer Net Finance Receivables at YE
|
|
|
$3.14bn
|
|
|
$3.60bn - $3.75bn
|
Consumer Yield
|
|
|
25.84%
|
|
|
26.75% - 27.25%
|
Consumer Risk Adjusted Yield(2)
|
|
|
22.03%
|
|
|
22.00% - 23.00%
|
SpringCastle Pretax Earnings
|
|
|
$110mm
|
|
|
$85mm - $105mm
|
(1) Net Finance Receivables represents data as
of December 31, 2013. All other metrics represent data for the year
ended December 31, 2013.
(2) Charge-off
rates exclude impact from sale of charged-off accounts in June 2013,
change in charge-off policy and recovery sale buybacks in 3Q13 and 4Q13.
Use of Non-GAAP Measures
We report the operating results of our Core Consumer Operations, Legacy
Real Estate and Other Non-Core using the same accounting basis that we
employed prior to the Fortress Acquisition, which we refer to as
“historical accounting basis,” to provide a consistent basis for both
management and other interested third parties to better understand our
operating results. The historical accounting basis (which is a basis of
accounting other than U.S. GAAP) also provides better comparability of
the operating results of these segments to our competitors and other
companies in the financial services industry. The historical accounting
basis is not applicable to Acquisitions and Servicing since this segment
resulted from the purchase of the SpringCastle Portfolio on April 1,
2013 and therefore, was not affected by the Fortress Acquisition.
Pretax Core Earnings is a key performance measure used by management in
evaluating the performance of our Core Consumer Operations. Pretax Core
Earnings represents our income (loss) before benefit from income taxes
on a historical accounting basis and excludes results of operations from
our non-core portfolio (Real Estate) and other non-originating legacy
operations, restructuring expenses related to Consumer and Insurance,
gains (losses) resulting from accelerated long-term debt repayment and
repurchases of long-term debt related to Consumer, and results of
operations attributable to non-controlling interests. Pretax Core
Earnings provides us with a key measure of our Core Consumer Operations’
performance as it assists us in comparing its performance on a
consistent basis. Management believes pretax core earnings is useful in
assessing the profitability of our core business and uses pretax core
earnings in evaluating our operating performance. Pretax Core Earnings
is a non-GAAP measure and should be considered in addition to, but not
as a substitute for or superior to, operating income, net income,
operating cash flow, and other measures of financial performance
prepared in accordance with U.S. GAAP.
Conference Call Information
Springleaf management will host a conference call and webcast to discuss
the fourth quarter results and other general matters at 10:00 am Eastern
on Tuesday, March 11, 2014. Both the call and webcast are open to the
general public. The general public is invited to listen to the call by
dialing 877-330-3668 (U.S. domestic), or 678-304-6859 (international),
conference ID 60978469, or via a live audio webcast through the Investor
Relations section of the website. For those unable to listen to the live
broadcast, a replay will be available on our website or by dialing
800-585-8367 (U.S. domestic), or 404-537-3406, conference ID 60978469,
beginning approximately two hours after the event. The replay of the
conference call will be available through March 25, 2014. An investor
presentation will be available by visiting the Investor Relations page
of Springleaf’s website at www.springleaf.com
on Tuesday, March 11, 2014, prior to the start of the conference call.
Forward Looking Statements
This presentation contains “forward‐looking statements” within the
meaning of the U.S. federal securities laws. Forward‐looking statements
include, without limitation, statements concerning plans, objectives,
goals, projections, strategies, future events or performance, and
underlying assumptions and other statements, which are not statements of
historical facts. Statements preceded by, followed by or that otherwise
include the words “anticipate,” “appears,” “believe,” “foresee,”
“intend,” “should,” “expect,” “estimate,” “project,” “plan,” “may,”
“could,” “will,” “are likely” and similar expressions are intended to
identify forward‐looking statements. These statements involve
predictions of our future financial condition, performance, plans and
strategies, and are thus dependent on a number of factors including,
without limitation, assumptions and data that may be imprecise or
incorrect. Specific factors that may impact performance or other
predictions of future actions include, but are not limited to: changes
in general economic conditions, including the interest rate environment
and the financial markets; levels of unemployment and personal
bankruptcies; shifts in residential real estate values; shifts in
collateral values, delinquencies, or credit losses; natural or
accidental events such as earthquakes, hurricanes, tornadoes, fires, or
floods; war, acts of terrorism, riots, civil disruption, pandemics, or
other events disrupting business or commerce; our ability to
successfully realize the benefits of the SpringCastle Portfolio; the
effectiveness of our credit risk scoring models; changes in our ability
to attract and retain employees or key executives; changes in the
competitive environment in which we operate; changes in federal, state
and local laws, regulations, or regulatory policies and practices;
potential liability relating to real estate and personal loans which we
have sold or may sell in the future, or relating to securitized loans;
the costs and effects of any litigation or governmental inquiries or
investigations; our continued ability to access the capital markets or
the sufficiency of our current sources of funds to satisfy our cash flow
requirements; our ability to generate sufficient cash to service all of
our indebtedness; the potential for downgrade of our debt by rating
agencies; and other risks described in the “Risk Factors” section of the
Company’s final prospectus filed with the SEC on October 17, 2013.
Forward‐looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward‐looking statements. We caution you not to place
undue reliance on these forward‐looking statements that speak only as of
the date they were made. We do not undertake any obligation to publicly
release any revisions to these forward‐looking statements to reflect
events or circumstances after the date of this presentation or to
reflect the occurrence of unanticipated events. You should not rely on
forward looking statements as the sole basis upon which to make any
investment decision.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(dollars in thousands except
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
579,104
|
|
|
$
|
418,011
|
|
|
$
|
2,158,038
|
|
|
|
1,706,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
218,730
|
|
|
|
239,271
|
|
|
|
919,380
|
|
|
|
1,068,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
360,374
|
|
|
|
178,740
|
|
|
|
1,238,658
|
|
|
|
637,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for finance receivable losses
|
|
|
190,330
|
|
|
|
110,425
|
|
|
|
532,053
|
|
|
|
338,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
finance receivable losses
|
|
|
170,044
|
|
|
|
68,315
|
|
|
|
706,605
|
|
|
|
299,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
|
|
|
41,035
|
|
|
|
33,381
|
|
|
|
148,179
|
|
|
|
126,423
|
|
Investment
|
|
|
7,922
|
|
|
|
7,006
|
|
|
|
35,609
|
|
|
|
32,550
|
|
Net loss on repurchases and repayments of debt
|
|
|
(7,907)
|
|
|
|
(6,165)
|
|
|
|
(38,426)
|
|
|
|
(18,328)
|
|
Other
|
|
|
(1,575)
|
|
|
|
(13,628)
|
|
|
|
5,411
|
|
|
|
(46,442)
|
Total other revenues
|
|
|
39,475
|
|
|
|
20,594
|
|
|
|
150,773
|
|
|
|
94,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
92,078
|
|
|
|
79,050
|
|
|
|
463,920
|
|
|
|
320,164
|
|
|
Other operating expenses
|
|
|
61,647
|
|
|
|
88,069
|
|
|
|
253,221
|
|
|
|
296,395
|
|
Restructuring expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,503
|
|
Insurance losses and loss adjustment expenses
|
|
|
17,229
|
|
|
|
18,377
|
|
|
|
64,879
|
|
|
|
60,679
|
Total other expenses
|
|
|
170,954
|
|
|
|
185,496
|
|
|
|
782,020
|
|
|
|
700,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before benefit from income taxes
|
|
|
38,565
|
|
|
|
(96,587)
|
|
|
|
75,358
|
|
|
|
(306,856)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes
|
|
|
(2,212)
|
|
|
|
(15,803)
|
|
|
|
(3,831)
|
|
|
|
(88,222)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
40,777
|
|
|
|
(80,784)
|
|
|
|
79,189
|
|
|
|
(218,634)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interests
|
|
|
27,119
|
|
|
|
-
|
|
|
|
110,918
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Springleaf Holdings, Inc.
|
|
$
|
13,658
|
|
|
$
|
(80,784)
|
|
|
$
|
(31,729)
|
|
|
$
|
(218,634)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
111,573,561
|
|
|
|
100,000,000
|
|
|
|
102,917,172
|
|
|
|
100,000,000
|
|
Diluted
|
|
|
111,722,546
|
|
|
|
100,000,000
|
|
|
|
102,917,172
|
|
|
|
100,000,000
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.12
|
|
|
$
|
(0.81)
|
|
|
$
|
(0.31)
|
|
|
$
|
(2.19)
|
|
Diluted
|
|
|
0.12
|
|
|
|
(0.81)
|
|
|
|
(0.31)
|
|
|
|
(2.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER KEY METRICS
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
|
|
|
|
At or for the
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance receivables
|
|
$
|
3,140,792
|
|
|
|
$
|
2,544,614
|
|
|
|
$
|
3,140,792
|
|
|
|
$
|
2,544,614
|
|
|
Number of accounts
|
|
|
830,513
|
|
|
|
|
729,140
|
|
|
|
|
830,513
|
|
|
|
|
729,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average net receivables
|
|
$
|
3,055,927
|
|
|
|
$
|
2,515,124
|
|
|
|
$
|
2,793,060
|
|
|
|
$
|
2,426,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield
|
|
|
26.34
|
|
%
|
|
|
24.65
|
|
%
|
|
|
25.84
|
|
%
|
|
|
24.10
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-off ratio (a)
|
|
|
5.49
|
|
%
|
|
|
5.63
|
|
%
|
|
|
5.18
|
|
%
|
|
|
4.63
|
|
%
|
Recovery ratio (b)
|
|
|
(0.33)
|
|
%
|
|
|
(1.18)
|
|
%
|
|
|
(1.66)
|
|
%
|
|
|
(0.99)
|
|
%
|
Charge-off ratio (b)
|
|
|
5.16
|
|
%
|
|
|
4.45
|
|
%
|
|
|
3.52
|
|
%
|
|
|
3.64
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency ratio
|
|
|
2.60
|
|
%
|
2.75
|
|
%
|
|
|
2.60
|
|
%
|
2.75
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination volume
|
|
$
|
926,047
|
|
|
|
$
|
732,587
|
|
|
|
$
|
3,253,008
|
|
|
|
$
|
2,465,110
|
|
|
Number of accounts
|
|
|
227,412
|
|
|
|
|
200,594
|
|
|
|
|
790,943
|
|
|
|
|
652,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions and Servicing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance receivables
|
|
$
|
2,506,726
|
|
|
|
|
-
|
|
|
|
$
|
2,506,726
|
|
|
|
|
-
|
|
|
Number of accounts
|
|
|
344,045
|
|
|
|
|
-
|
|
|
|
|
344,045
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average net receivables
|
|
$
|
2,576,220
|
|
|
|
|
-
|
|
|
|
$
|
2,730,356
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield
|
|
|
24.63
|
|
%
|
|
|
-
|
|
|
|
|
23.85
|
|
%
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio
|
|
|
8.46
|
|
%
|
|
|
-
|
|
|
|
|
6.44
|
|
%
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency ratio
|
|
|
7.75
|
|
%
|
-
|
|
|
|
|
7.75
|
|
%
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The gross charge-off ratio and charge-off ratio in 2013 reflect
$14.5 million of additional charge-offs recorded in March 2013 (on a
historical accounting basis) related to our change in charge-off policy
for personal loans effective March 31, 2013. Excluding these additional
charge-offs, our Consumer gross charge-off ratio would have been 4.66%
in 2013.
(b) The charge-off ratio in the fourth quarter of 2013 reflects a $1.0
million adjustment for the subsequent buyback of certain personal loans
we had included as recoveries in June 2013 resulting from a sale of
charged-off finance receivables. Excluding the impact of the $1.0
million adjustment, our Consumer charge-off ratio would have been 5.02%
in the fourth quarter of 2013. The charge-off ratio in 2013 reflects
$22.7 million of recoveries on charged-off personal loans resulting from
a sale of our charged-off finance receivables in June 2013, net of a
$2.7 million adjustment for the subsequent buyback of certain personal
loans. Excluding the impacts of the $14.5 million of additional
charge-offs and the $22.7 million of recoveries on charged-off personal
loans, our Consumer charge-off ratio would have been 3.81% in 2013.
RECONCILIATION OF PGAAP AND HISTORICAL INCOME (LOSS) (Non-GAAP)
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before benefit from income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
taxes - push-down accounting basis
|
|
$
|
38,565
|
|
$
|
(96,587)
|
|
|
$
|
|
75,358
|
|
$
|
(306,856)
|
Interest income adjustments
|
|
|
(46,579)
|
|
|
(52,086)
|
|
|
|
|
(202,232)
|
|
|
(197,981)
|
Interest expense adjustments
|
|
|
33,852
|
|
|
37,130
|
|
|
|
|
140,542
|
|
|
220,969
|
Provision for finance receivable losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
|
30
|
|
|
(14,840)
|
|
|
|
|
21,410
|
|
|
185,859
|
Repurchases and repayments of long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
debt adjustments
|
|
|
(8,596)
|
|
|
6,199
|
|
|
|
|
(20,220)
|
|
|
39,411
|
Amortization of other intangible assets
|
|
|
1,167
|
|
|
1,574
|
|
|
|
|
5,113
|
|
|
13,618
|
Other
|
|
|
1,489
|
|
|
271
|
|
|
|
|
5,003
|
|
|
(8,407)
|
Income (loss) before benefit from income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
taxes - historical accounting basis
|
|
$
|
19,928
|
|
$
|
(118,339)
|
|
|
$
|
|
24,974
|
|
$
|
(53,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-TAX CORE EARNINGS (Non-GAAP) RECONCILIATION
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before benefit from income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
taxes - historical accounting basis
|
|
|
$
|
19,928
|
|
$
|
(118,339)
|
|
|
$
|
24,974
|
|
$
|
(53,387)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax operating loss - Non-Core Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
63,177
|
|
|
89,605
|
|
|
|
245,342
|
|
|
64,060
|
|
Pretax operating loss - Other/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-originating legacy operations
|
|
|
|
19,491
|
|
|
43,769
|
|
|
|
149,338
|
|
|
67,190
|
|
Restructuring expenses - Core Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
15,863
|
|
Net (gain) loss from accelerated repayment/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase of debt - Consumer
|
|
|
|
967
|
|
|
(9)
|
|
|
|
5,357
|
|
|
(5,879)
|
|
Pretax operating income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests
|
|
|
|
(27,119)
|
|
|
-
|
|
|
|
(110,918)
|
|
|
-
|
Pretax core earnings
|
|
|
$
|
76,444
|
|
$
|
15,026
|
|
|
$
|
314,093
|
|
$
|
87,847
|
Copyright Business Wire 2014