CompuCredit Loses $105 Million in Quarter

Credit card issuer CompuCredit (NYSE: CCRT) this week reported a first quarter net loss of $105.3 million, or $2.25 of managed loss per fully diluted common share, compared with a managed loss of $9.5 million, or $0.19 per fully diluted common share, for the same period a year ago.

Atlanta-based CompuCredit targets consumers with poor or recovering credit. Its adjusted charge-off rate was 18.5 percent in the first quarter of 2008, compared with 12.2 percent for the first quarter of 2007. As of March 31, the 60-plus day delinquency rate was 16.5 percent, down 190 basis points from 18.4 percent at the end of the fourth quarter last year.

"A significant number of credit card accounts added in mid-2007 reached or are reaching their peak vintage charge off levels in the first and second quarters of this year,” David G. Hanna, CompuCredit’s chairman and CEO, said in a statement. “As a result, delinquencies are lower at the end of the first quarter and are projected to fall dramatically from first quarter levels by the end of the second quarter of this year.”

Managed receivables at the end of the first quarter tallied nearly $3.8 billion, down from the $4.1 billion in fourth quarter 2007 but up from $2.9 billion a year ago.

CompuCredit counted nearly 5 million accounts at the end of the quarter, down from 5.3 million at the end of 2007 but up from 3.9 million a year ago.