Page
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PART I. FINANCIAL INFORMATION
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Item 1.
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1
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2
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3
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4
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5
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6
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Item 2.
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24
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Item 3.
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37
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Item 4.
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37
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PART II. OTHER INFORMATION
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Item 1.
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38
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Item 1A.
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38
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Item 2.
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44
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Item 4.
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Item 5.
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44
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Item 6.
|
44
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45
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June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Unrestricted cash and cash equivalents
|
$ | 51,282 | $ | 144,913 | ||||
Restricted cash and cash equivalents
|
17,954 | 23,759 | ||||||
Loans and fees receivable:
|
||||||||
Loans and fees receivable, net (of $8,406 and $7,480 in deferred revenue and $13,041 and $7,156 in allowances for uncollectible loans and fees receivable at June 30, 2012 and December 31, 2011, respectively)
|
68,772 | 64,721 | ||||||
Loans and fees receivable pledged as collateral under structured financings, net (of $115 and $511 in deferred revenue and $4,000 and $7,537 in allowances for uncollectible loans and fees receivable at June 30, 2012 and December 31, 2011, respectively)
|
18,232 | 31,902 | ||||||
Loans and fees receivable, at fair value
|
20,846 | 28,226 | ||||||
Loans and fees receivable pledged as collateral under structured financings, at fair value
|
186,206 | 238,763 | ||||||
Investments in previously charged-off receivables
|
59,489 | 37,110 | ||||||
Investments in securities
|
6,107 | 6,203 | ||||||
Deferred costs, net
|
2,706 | 3,033 | ||||||
Property at cost, net of depreciation
|
8,375 | 8,098 | ||||||
Investments in equity-method investees
|
45,189 | 49,862 | ||||||
Prepaid expenses and other assets
|
10,135 | 11,317 | ||||||
Total assets
|
$ | 495,293 | $ | 647,907 | ||||
Liabilities
|
||||||||
Accounts payable and accrued expenses
|
$ | 42,793 | $ | 47,140 | ||||
Notes payable, at face value
|
38,600 | 23,765 | ||||||
Notes payable associated with structured financings, at face value
|
9,653 | 23,151 | ||||||
Notes payable associated with structured financings, at fair value
|
182,750 | 241,755 | ||||||
Convertible senior notes (Note 8)
|
95,056 | 176,400 | ||||||
Income tax liability
|
60,239 | 59,368 | ||||||
Total liabilities
|
429,091 | 571,579 | ||||||
Commitments and contingencies (Note 9)
|
||||||||
Equity
|
||||||||
Common stock, no par value, 150,000,000 shares authorized: 23,669,179 shares issued and 23,669,179 shares outstanding (including 1,672,656 loaned shares to be returned) at June 30, 2012; and 31,997,581 shares issued and 23,559,402 shares outstanding (including 1,672,656 loaned shares to be returned) at December 31, 2011
|
- | - | ||||||
Additional paid-in capital
|
293,472 | 294,246 | ||||||
Treasury stock, at cost, 0 and 8,438,179 shares at June 30, 2012 and December 31, 2011, respectively
|
- | (187,615 | ) | |||||
Accumulated other comprehensive loss
|
(1,895 | ) | (2,257 | ) | ||||
Retained deficit
|
(225,301 | ) | (28,257 | ) | ||||
Total shareholders’ equity
|
66,276 | 76,117 | ||||||
Noncontrolling interests
|
(74 | ) | 211 | |||||
Total equity
|
66,202 | 76,328 | ||||||
Total liabilities and equity
|
$ | 495,293 | $ | 647,907 |
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest income:
|
||||||||||||||||
Consumer loans, including past due fees
|
$ | 23,907 | $ | 38,855 | $ | 49,993 | $ | 81,479 | ||||||||
Other
|
206 | 452 | 408 | 774 | ||||||||||||
Total interest income
|
24,113 | 39,307 | 50,401 | 82,253 | ||||||||||||
Interest expense
|
(7,429 | ) | (11,355 | ) | (18,326 | ) | (23,306 | ) | ||||||||
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable
|
16,684 | 27,952 | 32,075 | 58,947 | ||||||||||||
Fees and related income on earning assets
|
29,152 | 32,532 | 93,506 | 91,754 | ||||||||||||
Losses upon charge off of loans and fees receivable recorded at fair value
|
(17,021 | ) | (36,342 | ) | (72,649 | ) | (89,190 | ) | ||||||||
Provision for losses on loans and fees receivable recorded at net realizable value
|
(7,437 | ) | 82 | (10,318 | ) | (758 | ) | |||||||||
Net interest income, fees and related income on earning assets
|
21,378 | 24,224 | 42,614 | 60,753 | ||||||||||||
Other operating income:
|
||||||||||||||||
Servicing income
|
968 | 860 | 2,232 | 1,826 | ||||||||||||
Ancillary and interchange revenues
|
1,413 | 2,463 | 3,357 | 4,965 | ||||||||||||
Gain on repurchase of convertible senior notes
|
- | 201 | - | 469 | ||||||||||||
Gain on buy-out of equity-method investee members
|
- | - | - | 619 | ||||||||||||
Equity in income of equity-method investees
|
3,539 | 3,823 | 9,556 | 22,127 | ||||||||||||
Total other operating income
|
5,920 | 7,347 | 15,145 | 30,006 | ||||||||||||
Other operating expense:
|
||||||||||||||||
Salaries and benefits
|
4,844 | 6,277 | 10,721 | 12,830 | ||||||||||||
Card and loan servicing
|
20,037 | 18,387 | 39,989 | 38,207 | ||||||||||||
Marketing and solicitation
|
630 | 768 | 1,446 | 1,205 | ||||||||||||
Depreciation
|
393 | 1,785 | 865 | 3,783 | ||||||||||||
Other
|
6,761 | 7,172 | 14,271 | 14,136 | ||||||||||||
Total other operating expense
|
32,665 | 34,389 | 67,292 | 70,161 | ||||||||||||
(Loss on) income from continuing operations before income taxes
|
(5,367 | ) | (2,818 | ) | (9,533 | ) | 20,598 | |||||||||
Income tax expense
|
(589 | ) | (850 | ) | (929 | ) | (1,124 | ) | ||||||||
(Loss on) income from continuing operations
|
(5,956 | ) | (3,668 | ) | (10,462 | ) | 19,474 | |||||||||
Discontinued operations:
|
||||||||||||||||
Income from discontinued operations before income taxes
|
- | 106,214 | - | 115,137 | ||||||||||||
Income tax expense
|
- | (1,788 | ) | - | (4,100 | ) | ||||||||||
Income from discontinued operations
|
- | 104,426 | - | 111,037 | ||||||||||||
Net (loss) income
|
(5,956 | ) | 100,758 | (10,462 | ) | 130,511 | ||||||||||
Net loss (income) attributable to noncontrolling interests (including $0, $0, $0 and $1,131 of income associated with noncontrolling interests in discontinued operations in the three and six months ended June 30, 2012 and 2011, respectively)
|
211 | 8 | 285 | (1,290 | ) | |||||||||||
Net (loss) income attributable to controlling interests
|
$ | (5,745 | ) | $ | 100,766 | $ | (10,177 | ) | $ | 129,221 | ||||||
(Loss on) income from continuing operations attributable to controlling interests per common share—basic
|
$ | (0.26 | ) | $ | (0.16 | ) | $ | (0.46 | ) | $ | 0.66 | |||||
(Loss on) income from continuing operations attributable to controlling interests per common share—diluted
|
$ | (0.26 | ) | $ | (0.16 | ) | $ | (0.46 | ) | $ | 0.66 | |||||
Income from discontinued operations attributable to controlling interests per common share—basic
|
$ | - | $ | 4.61 | $ | - | $ | 3.76 | ||||||||
Income from discontinued operations attributable to controlling interests per common share—diluted
|
$ | - | $ | 4.59 | $ | - | $ | 3.74 | ||||||||
Net (loss) income attributable to controlling interests per common share—basic
|
$ | (0.26 | ) | $ | 4.45 | $ | (0.46 | ) | $ | 4.42 | ||||||
Net (loss) income attributable to controlling interests per common share—diluted
|
$ | (0.26 | ) | $ | 4.43 | $ | (0.46 | ) | $ | 4.40 |
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net (loss) income
|
$ | (5,956 | ) | $ | 100,758 | $ | (10,462 | ) | $ | 130,511 | ||||||
Other comprehensive (loss) income:
|
||||||||||||||||
Foreign currency translation adjustment
|
(665 | ) | 488 | 345 | 2,393 | |||||||||||
Reclassifications of foreign currency translation adjustment to consolidated statements of operations
|
- | 2,301 | - | 2,301 | ||||||||||||
Income tax related to other comprehensive income
|
85 | (1 | ) | 17 | (46 | ) | ||||||||||
Comprehensive (loss) income
|
(6,536 | ) | 103,546 | (10,100 | ) | 135,159 | ||||||||||
Comprehensive loss (income) attributable to noncontrolling interests
|
211 | 8 | 285 | (1,290 | ) | |||||||||||
Comprehensive (loss) income attributable to controlling interests
|
$ | (6,325 | ) | $ | 103,554 | $ | (9,815 | ) | $ | 133,869 |
Common Stock
|
||||||||||||||||||||||||||||||||
Shares Issued
|
Amount
|
Additional Paid-In Capital
|
Treasury Stock
|
Accumulated Other Comprehensive Loss
|
Retained Deficit
|
Noncontrolling Interests
|
Total Equity
|
|||||||||||||||||||||||||
Balance at December 31, 2011
|
31,997,581 | $ | - | $ | 294,246 | $ | (187,615 | ) | $ | (2,257 | ) | $ | (28,257 | ) | $ | 211 | $ | 76,328 | ||||||||||||||
Use of treasury stock for stock-based compensation plans
|
(118,277 | ) | - | (944 | ) | 5,169 | - | (4,225 | ) | - | - | |||||||||||||||||||||
Compensatory stock issuances
|
109,777 | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Amortization of deferred stock-based compensation costs
|
- | - | 170 | - | - | - | - | 170 | ||||||||||||||||||||||||
Purchase of treasury stock
|
- | - | - | (196 | ) | - | - | - | (196 | ) | ||||||||||||||||||||||
Redemption and retirement of shares
|
(8,319,902 | ) | - | - | 182,642 | - | (182,642 | ) | - | - | ||||||||||||||||||||||
Net loss
|
- | - | - | - | - | (10,177 | ) | (285 | ) | (10,462 | ) | |||||||||||||||||||||
Foreign currency translation adjustment, net of tax
|
- | - | - | - | 362 | - | - | 362 | ||||||||||||||||||||||||
Balance at June 30, 2012
|
23,669,179 | $ | - | $ | 293,472 | $ | - | $ | (1,895 | ) | $ | (225,301 | ) | $ | (74 | ) | $ | 66,202 |
For the Six Months Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Operating activities
|
||||||||
Net (loss) income
|
$ | (10,462 | ) | $ | 130,511 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
||||||||
Depreciation, anortization and accretion, net
|
730 | 4,821 | ||||||
Losses upon charge off of loans and fees receivable recorded at fair value
|
72,649 | 89,190 | ||||||
Provision for losses on loans and fees receivable
|
10,318 | 12,575 | ||||||
Accretion of discount on convertible senior notes
|
2,149 | 3,577 | ||||||
Stock-based compensation expense
|
170 | 2,151 | ||||||
Unrealized gain on loans and fees receivable and underlying notes payable held at fair value
|
(57,481 | ) | (66,549 | ) | ||||
Unrealized loss on trading securities
|
287 | 255 | ||||||
Gain on repurchase of convertible senior notes
|
- | (469 | ) | |||||
Income from equity-method investments
|
(9,556 | ) | (22,127 | ) | ||||
Gain on buy-out of equity-method investee members
|
- | (619 | ) | |||||
Net gain on sale of subsidiary
|
- | (101,359 | ) | |||||
Changes in assets and liabilities, exclusive of business acquisitions:
|
||||||||
Decrease (increase) in uncollected fees on earning assets
|
16,268 | (6,867 | ) | |||||
Decrease in JRAS auto loans receivable
|
2,931 | 7,835 | ||||||
Decrease in deferred costs
|
329 | - | ||||||
Increase (decrease) in income tax liability
|
886 | (112 | ) | |||||
Decrease in prepaid expenses
|
4 | 7,605 | ||||||
Decrease in accounts payable and accrued expenses
|
(846 | ) | (4,575 | ) | ||||
Other
|
2,458 | 2,298 | ||||||
Net cash provided by operating activities
|
30,834 | 58,141 | ||||||
Investing activities
|
||||||||
Decrease in restricted cash
|
5,805 | 8,270 | ||||||
Investment in equity-method investees
|
(1,354 | ) | (34,336 | ) | ||||
Proceeds from equity-method investees
|
16,042 | 10,860 | ||||||
Investments in earning assets
|
(138,090 | ) | (388,088 | ) | ||||
Proceeds from earning assets
|
167,227 | 558,179 | ||||||
Investments in subsidiaries
|
(3,514 | ) | - | |||||
Net cash associated with newly acquired consolidated subsidiaries
|
- | 1,025 | ||||||
Proceeds from sale of subsidiary
|
- | 147,449 | ||||||
Purchases and development of property, net of disposals
|
(1,139 | ) | (1,116 | ) | ||||
Net cash provided by investing activities
|
44,977 | 302,243 | ||||||
Financing activities
|
||||||||
Noncontrolling interests contributions, net
|
- | 600 | ||||||
Purchase of outstanding stock subject to tender offer
|
- | (105,000 | ) | |||||
Purchase of treasury stock
|
(196 | ) | (1,107 | ) | ||||
Purchases of noncontrolling interests
|
- | (4,067 | ) | |||||
Proceeds from borrowings
|
15,365 | 9,697 | ||||||
Repayment of borrowings
|
(184,605 | ) | (212,266 | ) | ||||
Net cash used in financing activities
|
(169,436 | ) | (312,143 | ) | ||||
Effect of exchange rate changes on cash
|
(6 | ) | 1,194 | |||||
Net (decrease) increase in unrestricted cash
|
(93,631 | ) | 49,435 | |||||
Unrestricted cash and cash equivalents at beginning of period
|
144,913 | 85,350 | ||||||
Unrestricted cash and cash equivalents at end of period
|
$ | 51,282 | $ | 134,785 | ||||
Supplemental cash flow information
|
||||||||
Unrestricted cash included in assets held for sale
|
$ | - | $ | 8,230 | ||||
Cash paid for interest
|
$ | 16,265 | $ | 19,849 | ||||
Net cash income tax payments
|
$ | 43 | $ | 5,383 | ||||
Supplemental non-cash information
|
||||||||
Notes payable associated with capital leases
|
$ | 268 | $ | - |
1.
|
Basis of Presentation
|
2.
|
Significant Accounting Policies and Consolidated Financial Statement Components
|
Balance at December 31, 2011
|
Additions
|
Subtractions
|
Balance at June 30, 2012
|
|||||||||||||||||
Loans and fees receivable, gross
|
$ | 119.3 | $ | 95.7 | $ | (102.5 | ) | $ | 112.5 | |||||||||||
Deferred revenue
|
(8.0 | ) | (13.3 | ) | 12.8 | (8.5 | ) | |||||||||||||
Allowance for uncollectible loans and fees receivable
|
(14.7 | ) | (10.3 | ) | 8.0 | (17.0 | ) | |||||||||||||
Loans and fees receivable, net
|
$ | 96.6 | $ | 72.1 | $ | (81.7 | ) | $ | 87.0 | |||||||||||
Balance at December 31, 2010
|
Additions
|
Subtractions
|
Transfer to Assets Held for Sale
|
Balance at June 30, 2011
|
||||||||||||||||
Loans and fees receivable, gross
|
$ | 227.7 | $ | 296.7 | $ | (343.5 | ) | $ | (42.3 | ) | $ | 138.6 | ||||||||
Deferred revenue
|
(20.5 | ) | (32.3 | ) | 35.3 | 5.8 | (11.7 | ) | ||||||||||||
Allowance for uncollectible loans and fees receivable
|
(37.6 | ) | (5.9 | ) | 20.7 | 3.8 | (19.0 | ) | ||||||||||||
Loans and fees receivable, net
|
$ | 169.6 | $ | 258.5 | $ | (287.5 | ) | $ | (32.7 | ) | $ | 107.9 |
For the Three Months Ended June 30, 2012
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
Allowance for uncollectible loans and fees receivable:
|
||||||||||||||||||||
Balance at beginning of period
|
$ | (4.5 | ) | $ | (0.5 | ) | $ | (6.1 | ) | $ | (1.4 | ) | $ | (12.5 | ) | |||||
Provision for loan losses
|
(7.1 | ) | (0.4 | ) | 0.7 | (0.6 | ) | (7.4 | ) | |||||||||||
Charge offs
|
1.4 | 0.7 | 1.8 | 0.2 | 4.1 | |||||||||||||||
Recoveries
|
(0.3 | ) | - | (0.9 | ) | - | (1.2 | ) | ||||||||||||
Balance at end of period
|
$ | (10.5 | ) | $ | (0.2 | ) | $ | (4.5 | ) | $ | (1.8 | ) | $ | (17.0 | ) | |||||
Balance at end of period individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Balance at end of period collectively evaluated for impairment
|
$ | (10.5 | ) | $ | (0.2 | ) | $ | (4.5 | ) | $ | (1.8 | ) | $ | (17.0 | ) | |||||
Loans and fees receivable:
|
||||||||||||||||||||
Loans and fees receivable, gross
|
$ | 27.9 | $ | 0.7 | $ | 73.4 | $ | 10.5 | $ | 112.5 | ||||||||||
Loans and fees receivable individually evaluated for impairment
|
$ | - | $ | - | $ | 0.1 | $ | - | $ | 0.1 | ||||||||||
Loans and fees receivable collectively evaluated for impairment
|
$ | 27.9 | $ | 0.7 | $ | 73.3 | $ | 10.5 | $ | 112.4 | ||||||||||
For the Six Months Ended June 30, 2012
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
Allowance for uncollectible loans and fees receivable:
|
||||||||||||||||||||
Balance at beginning of period
|
$ | (4.0 | ) | $ | (1.1 | ) | $ | (8.4 | ) | $ | (1.2 | ) | $ | (14.7 | ) | |||||
Provision for loan losses
|
(8.9 | ) | (1.8 | ) | 1.3 | (0.9 | ) | (10.3 | ) | |||||||||||
Charge offs
|
3.0 | 2.7 | 4.7 | 0.3 | 10.7 | |||||||||||||||
Recoveries
|
(0.6 | ) | - | (2.1 | ) | - | (2.7 | ) | ||||||||||||
Balance at end of period
|
$ | (10.5 | ) | $ | (0.2 | ) | $ | (4.5 | ) | $ | (1.8 | ) | $ | (17.0 | ) | |||||
Balance at end of period individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Balance at end of period collectively evaluated for impairment
|
$ | (10.5 | ) | $ | (0.2 | ) | $ | (4.5 | ) | $ | (1.8 | ) | $ | (17.0 | ) | |||||
Loans and fees receivable:
|
||||||||||||||||||||
Loans and fees receivable, gross
|
$ | 27.9 | $ | 0.7 | $ | 73.4 | $ | 10.5 | $ | 112.5 | ||||||||||
Loans and fees receivable individually evaluated for impairment
|
$ | - | $ | - | $ | 0.1 | $ | - | $ | 0.1 | ||||||||||
Loans and fees receivable collectively evaluated for impairment
|
$ | 27.9 | $ | 0.7 | $ | 73.3 | $ | 10.5 | $ | 112.4 |
For the Three Months Ended June 30, 2011
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
Allowance for uncollectible loans and fees receivable:
|
||||||||||||||||||||
Balance at beginning of period
|
$ | (3.0 | ) | $ | (4.7 | ) | $ | (20.3 | ) | $ | (0.2 | ) | $ | (28.2 | ) | |||||
Provision for loan losses (includes $2.0 million of provision netted within income from discontinued operations)
|
(0.9 | ) | (2.7 | ) | 1.9 | (0.2 | ) | (1.9 | ) | |||||||||||
Charge offs
|
1.4 | 3.0 | 5.5 | - | 9.9 | |||||||||||||||
Recoveries
|
(0.3 | ) | (0.2 | ) | (2.1 | ) | - | (2.6 | ) | |||||||||||
Transfer to assets held for sale
|
- | 3.8 | - | 3.8 | ||||||||||||||||
Sale of assets
|
- | - | - | - | - | |||||||||||||||
Balance at end of period
|
$ | (2.8 | ) | $ | (0.8 | ) | $ | (15.0 | ) | $ | (0.4 | ) | $ | (19.0 | ) | |||||
Balance at end of period individually evaluated for impairment
|
$ | - | $ | - | $ | (0.4 | ) | $ | - | $ | (0.4 | ) | ||||||||
Balance at end of period collectively evaluated for impairment
|
$ | (2.8 | ) | $ | (0.8 | ) | $ | (14.6 | ) | $ | (0.4 | ) | $ | (18.6 | ) | |||||
Loans and fees receivable:
|
||||||||||||||||||||
Loans and fees receivable, gross
|
$ | 18.0 | $ | 1.6 | $ | 117.7 | $ | 1.3 | $ | 138.6 | ||||||||||
Loans and fees receivable individually evaluated for impairment
|
$ | - | $ | - | $ | 0.9 | $ | - | $ | 0.9 | ||||||||||
Loans and fees receivable collectively evaluated for impairment
|
$ | 18.0 | $ | 1.6 | $ | 116.8 | $ | 1.3 | $ | 137.7 | ||||||||||
For the Six Months Ended June 30, 2011
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
Allowance for uncollectible loans and fees receivable:
|
||||||||||||||||||||
Balance at beginning of period
|
$ | (4.0 | ) | $ | (5.2 | ) | $ | (28.3 | ) | $ | (0.1 | ) | $ | (37.6 | ) | |||||
Provision for loan losses (includes $5.1 million of provision netted within income from discontinued operations)
|
(1.2 | ) | (6.2 | ) | 1.8 | (0.3 | ) | (5.9 | ) | |||||||||||
Charge offs
|
3.0 | 7.2 | 14.5 | - | 24.7 | |||||||||||||||
Recoveries
|
(0.6 | ) | (0.4 | ) | (3.7 | ) | - | (4.7 | ) | |||||||||||
Transfer to assets held for sale
|
- | 3.8 | - | - | 3.8 | |||||||||||||||
Sale of assets
|
- | - | 0.7 | - | 0.7 | |||||||||||||||
Balance at end of period
|
$ | (2.8 | ) | $ | (0.8 | ) | $ | (15.0 | ) | $ | (0.4 | ) | $ | (19.0 | ) | |||||
Balance at end of period individually evaluated for impairment
|
$ | - | $ | - | $ | (0.4 | ) | $ | - | $ | (0.4 | ) | ||||||||
Balance at end of period collectively evaluated for impairment
|
$ | (2.8 | ) | $ | (0.8 | ) | $ | (14.6 | ) | $ | (0.4 | ) | $ | (18.6 | ) | |||||
Loans and fees receivable:
|
||||||||||||||||||||
Loans and fees receivable, gross
|
$ | 18.0 | $ | 1.6 | $ | 117.7 | $ | 1.3 | $ | 138.6 | ||||||||||
Loans and fees receivable individually evaluated for impairment
|
$ | - | $ | - | $ | 0.9 | $ | - | $ | 0.9 | ||||||||||
Loans and fees receivable collectively evaluated for impairment
|
$ | 18.0 | $ | 1.6 | $ | 116.8 | $ | 1.3 | $ | 137.7 |
As of
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Current loans receivable
|
$ | 95.9 | $ | 100.9 | ||||
Current fees receivable
|
1.4 | 1.9 | ||||||
Delinquent loans and fees receivable
|
15.2 | 16.5 | ||||||
Loans and fees receivable, gross
|
$ | 112.5 | $ | 119.3 |
As of June 30, 2012
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
30-59 days past due
|
$ | 2.2 | $ | - | $ | 5.2 | $ | - | $ | 7.4 | ||||||||||
60-89 days past due
|
1.7 | - | 1.8 | - | 3.5 | |||||||||||||||
Greater than 90 days past due
|
3.6 | (0.1 | ) | 0.8 | - | 4.3 | ||||||||||||||
Delinquent loans and fees receivable, gross
|
7.5 | (0.1 | ) | 7.8 | - | 15.2 | ||||||||||||||
Current loans and fees receivable, gross
|
20.4 | 0.8 | 65.6 | 10.5 | 97.3 | |||||||||||||||
Total loans and fees receivable, gross
|
$ | 27.9 | $ | 0.7 | $ | 73.4 | $ | 10.5 | $ | 112.5 | ||||||||||
Balance of loans greater than 90-days delinquent still accruing interest and fees
|
$ | - | $ | - | $ | 0.4 | $ | - | $ | 0.4 | ||||||||||
As of December 31, 2011
|
Credit Cards
|
Micro-Loans
|
Auto Finance
|
Other
|
Total
|
|||||||||||||||
30-59 days past due
|
$ | 0.8 | $ | 0.7 | $ | 6.9 | $ | - | $ | 8.4 | ||||||||||
60-89 days past due
|
0.7 | 0.6 | 2.5 | - | 3.8 | |||||||||||||||
Greater than 90 days past due
|
1.5 | 0.9 | 1.9 | - | 4.3 | |||||||||||||||
Delinquent loans and fees receivable, gross
|
3.0 | 2.2 | 11.3 | - | 16.5 | |||||||||||||||
Current loans and fees receivable, gross
|
17.5 | 0.9 | 80.2 | 4.2 | 102.8 | |||||||||||||||
Total loans and fees receivable, gross
|
$ | 20.5 | $ | 3.1 | $ | 91.5 | $ | 4.2 | $ | 119.3 | ||||||||||
Balance of loans greater than 90-days delinquent still accruing interest and fees
|
$ | - | $ | - | $ | 1.3 | $ | - | $ | 1.3 |
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Unrecovered balance at beginning of period
|
$ | 36,795 | $ | 22,882 | $ | 37,110 | $ | 29,889 | ||||||||
Acquisitions of defaulted accounts
|
34,902 | 16,460 | 46,700 | 19,484 | ||||||||||||
Cash collections
|
(26,553 | ) | (19,228 | ) | (52,638 | ) | (39,856 | ) | ||||||||
Cost-recovery method income recognized on defaulted accounts (included as a component of fees and related income on earning assets on our consolidated statements of operations)
|
14,345 | 11,166 | 28,317 | 21,763 | ||||||||||||
Unrecovered balance at end of period
|
$ | 59,489 | $ | 31,280 | $ | 59,489 | $ | 31,280 |
As of
|
||||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Held to maturity:
|
||||||||
Investments in non-marketable debt securities
|
$ | 70 | $ | 93 | ||||
Available for sale:
|
||||||||
Investments in non-marketable equity securities
|
1,941 | 2,075 | ||||||
Investments in non-marketable debt securities
|
4,096 | 3,884 | ||||||
Trading:
|
||||||||
Investments in marketable equity securities
|
- | 151 | ||||||
Total investments in securities
|
$ | 6,107 | $ | 6,203 |
For the Three Months June,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Fees on credit products
|
$ | 4,407 | $ | 3,475 | $ | 7,885 | $ | 7,235 | ||||||||
Changes in fair value of loans and fees receivable recorded at fair value (1)
|
26,942 | (10,485 | ) | 82,871 | 119,518 | |||||||||||
Changes in fair value of notes payable associated with structured financings recorded at fair value
|
(16,073 | ) | 28,375 | (25,390 | ) | (52,969 | ) | |||||||||
Income on investments in previously charged-off receivables
|
14,345 | 11,166 | 28,317 | 21,763 | ||||||||||||
Gross loss on auto sales
|
- | - | - | (111 | ) | |||||||||||
(Losses) gains on investments in securities
|
6 | 9 | (236 | ) | 141 | |||||||||||
Loss on sale of JRAS assets
|
- | - | - | (4,648 | ) | |||||||||||
Other
|
(475 | ) | (8 | ) | 59 | 825 | ||||||||||
Total fees and related income on earning assets
|
$ | 29,152 | $ | 32,532 | $ | 93,506 | $ | 91,754 |
3.
|
Discontinued Operations
|
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net interest income, fees and related income on earning assets
|
$ | - | $ | 14,935 | $ | - | $ | 49,791 | ||||||||
Gain on sale of assets
|
103,706 | 103,706 | ||||||||||||||
Other operating expense
|
- | 12,427 | - | 38,360 | ||||||||||||
Income before income taxes
|
- | 106,214 | - | 115,137 | ||||||||||||
Income tax expense
|
- | (1,788 | ) | - | (4,100 | ) | ||||||||||
Net income
|
$ | - | $ | 104,426 | $ | - | $ | 111,037 | ||||||||
Net income attributable to noncontrolling interests
|
$ | - | $ | 1,131 | $ | - | $ | - |
4.
|
Segment Reporting
|
Investments in
|
||||||||||||||||
Credit Cards
|
Previously
|
|||||||||||||||
and Other
|
Charged-Off
|
Auto
|
||||||||||||||
Three Months Ended June 30, 2012
|
Investments
|
Receivables
|
Finance
|
Total
|
||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 192 | $ | 14,242 | $ | 6,944 | $ | 21,378 | ||||||||
Total other operating income
|
$ | 4,869 | $ | 886 | $ | 165 | $ | 5,920 | ||||||||
(Loss) income from continuing operations before income taxes
|
$ | (12,798 | ) | $ | 4,880 | $ | 2,551 | $ | (5,367 | ) | ||||||
Loans and fees receivable, gross
|
$ | 39,152 | $ | - | $ | 73,415 | $ | 112,567 | ||||||||
Loans and fees receivable, net
|
$ | 25,014 | $ | - | $ | 61,990 | $ | 87,004 | ||||||||
Loans and fees receivable held at fair value
|
$ | 207,052 | $ | - | $ | - | $ | 207,052 | ||||||||
Total assets
|
$ | 351,585 | $ | 69,360 | $ | 74,348 | $ | 495,293 | ||||||||
Investments in
|
||||||||||||||||
Credit Cards
|
Previously
|
|||||||||||||||
and Other
|
Charged-Off
|
Auto
|
||||||||||||||
Three Months Ended June 30, 2011
|
Investments
|
Receivables
|
Finance
|
Total
|
||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 4,431 | $ | 11,109 | $ | 8,684 | $ | 24,224 | ||||||||
Total other operating income
|
$ | 6,458 | $ | 762 | $ | 127 | $ | 7,347 | ||||||||
(Loss) income from continuing operations before income taxes
|
$ | (10,528 | ) | $ | 4,612 | $ | 3,098 | $ | (2,818 | ) | ||||||
Loans and fees receivable, gross
|
$ | 20,854 | $ | - | $ | 117,724 | $ | 138,578 | ||||||||
Loans and fees receivable, net
|
$ | 16,752 | $ | - | $ | 91,166 | $ | 107,918 | ||||||||
Loans and fees receivable held at fair value
|
$ | 332,615 | $ | - | $ | - | $ | 332,615 | ||||||||
Total assets
|
$ | 619,057 | $ | 36,106 | $ | 100,721 | $ | 755,884 |
Investments in
|
||||||||||||||||
Credit Cards
|
Previously
|
|||||||||||||||
and Other
|
Charged-Off
|
Auto
|
||||||||||||||
Six Months Ended June 30, 2012
|
Investments
|
Receivables
|
Finance
|
Total
|
||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 3,230 | $ | 28,168 | $ | 11,216 | $ | 42,614 | ||||||||
Total other operating income
|
$ | 12,948 | $ | 1,891 | $ | 306 | $ | 15,145 | ||||||||
(Loss) income from continuing operations before income taxes
|
$ | (19,472 | ) | $ | 8,990 | $ | 949 | $ | (9,533 | ) | ||||||
Loans and fees receivable, gross
|
$ | 39,152 | $ | - | $ | 73,415 | $ | 112,567 | ||||||||
Loans and fees receivable, net
|
$ | 25,014 | $ | - | $ | 61,990 | $ | 87,004 | ||||||||
Loans and fees receivable held at fair value
|
$ | 207,052 | $ | - | $ | - | $ | 207,052 | ||||||||
Total assets
|
$ | 351,585 | $ | 69,360 | $ | 74,348 | $ | 495,293 | ||||||||
Investments in
|
||||||||||||||||
Credit Cards
|
Previously
|
|||||||||||||||
and Other
|
Charged-Off
|
Auto
|
||||||||||||||
Six Months Ended June 30, 2011
|
Investments
|
Receivables
|
Finance
|
Total
|
||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 27,557 | $ | 21,624 | $ | 11,572 | $ | 60,753 | ||||||||
Total other operating income
|
$ | 28,282 | $ | 1,468 | $ | 256 | $ | 30,006 | ||||||||
Income (loss) from continuing operations before income taxes
|
$ | 13,055 | $ | 8,011 | $ | (468 | ) | $ | 20,598 | |||||||
Loans and fees receivable, gross
|
$ | 20,854 | $ | - | $ | 117,724 | $ | 138,578 | ||||||||
Loans and fees receivable, net
|
$ | 16,752 | $ | - | $ | 91,166 | $ | 107,918 | ||||||||
Loans and fees receivable held at fair value
|
$ | 332,615 | $ | - | $ | - | $ | 332,615 | ||||||||
Total assets
|
$ | 619,057 | $ | 36,106 | $ | 100,721 | $ | 755,884 |
5.
|
Shareholders’ Equity
|
6.
|
Investments in Equity-Method Investees
|
As of
|
||||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Loans and fees receivable pledged as collateral under structured financings, at fair value
|
$ | 68,805 | $ | 78,413 | ||||
Investments in non-marketable debt securities, at fair value
|
$ | 58,466 | $ | 81,639 | ||||
Total assets
|
$ | 144,082 | $ | 167,898 | ||||
Notes payable associated with structured financings, at fair value
|
$ | 43,280 | $ | 59,515 | ||||
Total liabilities
|
$ | 43,605 | $ | 59,909 | ||||
Members’ capital
|
$ | 100,477 | $ | 107,989 |
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 7,084 | $ | 6,526 | $ | 21,371 | $ | 44,201 | ||||||||
Total other operating income
|
$ | 846 | $ | 60 | $ | 929 | $ | 147 | ||||||||
Net income
|
$ | 7,214 | $ | 5,363 | $ | 20,704 | $ | 41,625 |
As of
|
||||||||||||||||
June 30, 2012
|
December 31, 2011
|
|||||||||||||||
Investments in non-marketable debt securities, at fair value
|
$ | 58,466 | $ | 81,639 | ||||||||||||
Total assets
|
$ | 59,675 | $ | 83,210 | ||||||||||||
Total liabilities
|
$ | - | $ | - | ||||||||||||
Members’ capital
|
$ | 59,675 | $ | 83,210 | ||||||||||||
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net interest income, fees and related income on earning assets
|
$ | 4,010 | $ | 10,034 | $ | 4,557 | $ | 44,443 | ||||||||
Net income
|
$ | 3,998 | $ | 10,025 | $ | 4,524 | $ | 44,328 | ||||||||
7.
|
Fair Values of Assets and Liabilities
|