CompuCredit also reported a first quarter 2009 managed loss from continuing operations attributable to controlling interests of $121.6 million, or $2.59 per fully diluted common share, which compares to first quarter 2008 managed losses from continuing operations attributable to controlling interests of $103.3 million, or $2.21 per fully diluted common share.

"In this very challenging economic environment, we continue to focus on account management, cost-savings initiatives and the expansion of our businesses that are not reliant on the securitization markets, such as our charged-off-debt-buying business and standalone third party servicing capabilities," said David G. Hanna, Chairman and CEO of CompuCredit.

Effective January 1, 2009, CompuCredit implemented FASB Staff Position APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" to account for CompuCredit's outstanding convertible senior notes. As a result, prior periods' consolidated financial statements have been retrospectively adjusted to present them as though APB 14-1 were effective in those prior periods. For the quarter ended March 31, 2008, CompuCredit's retrospective adjustment increased interest costs (net of a reduction in deferred loan costs) by $0.04 per fully diluted common share, and for the quarter ended December 31, 2008, the retrospective adjustment increased interest costs (net of a reduction in deferred loan costs) and reduced gain on repurchase of convertible senior notes by an aggregate $0.52 per fully diluted common share.

CompuCredit's net interest margin was 5.1 percent in the first quarter of 2009, as compared to 13.6 percent for the first quarter of 2008 and 13.8 percent in the previous quarter. The adjusted charge-off rate was 19.5 percent in the first quarter of 2009, as compared to 18.5 percent for the first quarter of 2008 and 14.2 percent in the previous quarter. As of March 31, 2009, the 60-plus day delinquency rate was 17.1 percent, up from 16.5 percent as of March 31, 2008 and 16.3 percent as of December 31, 2008.

Various references within this press release and the accompanying financial information are to CompuCredit's "managed" results, which include the results of its non-securitized receivables, together with the receivables underlying its off-balance-sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of CompuCredit's performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the portfolios of receivables reflected on CompuCredit's balance sheet and underlying its securitization facilities. In allocating CompuCredit's resources and managing its business, management relies heavily upon financial, operating and statistical data prepared on a so-called "managed basis." It also is important to analysts, investors and others that CompuCredit provide selected metrics and data on a managed basis because this allows a comparison of CompuCredit to others within the specialty finance industry. Moreover, CompuCredit's management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of CompuCredit's managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and CompuCredit's retained interests in its securitization facilities.

Managed receivables data assume that none of the credit card receivables underlying CompuCredit's off-balance-sheet securitization facilities was ever transferred to securitization facilities and present the net credit losses and delinquent balances on the receivables as if CompuCredit still owned the receivables. Reconciliation of the managed receivables data to CompuCredit's GAAP financial statements requires: (1) recognition that substantially all of CompuCredit's credit card receivables had been sold in securitization transactions as of March 31, 2009; (2) an understanding that CompuCredit's managed receivables data are based on billings and actual charge-offs as reported to it through underlying systems of record (i.e., without regard to an allowance for uncollectible loans and fees receivable); (3) a look-through to CompuCredit's economic share of (or equity interest in) the receivables that it manages for its equity-method investees; and (4) removal of CompuCredit's minority interest holders' interests in the managed receivables underlying CompuCredit's GAAP consolidated results.

For further details regarding CompuCredit's first quarter 2009 financial performance, the media and public are invited to listen to management's pre-recorded first quarter 2009 earnings commentary, which will be available after 5:00 p.m. Eastern Standard Time on Wednesday, May 6, 2009 via the Internet at www.CompuCredit.com.

CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit www.CompuCredit.com.

                  CompuCredit Corporation and Subsidiaries               Financial, Operating and Statistical Measures                                 (Unaudited)         (In thousands, except for per share data and percentages)                                    As Of And For The Three Months Ended                                  March 31,    December 31,     March 31,                                    2009           2008           2008                                -------------  -------------  ------------- Common Share Statistics (1)  Net (Loss) Income From   Continuing Operations Per   Common Share:     Basic                      $       (2.40) $       (1.09) $        0.08     Diluted                    $       (2.40) $       (1.09) $        0.08 Loss On Discontinued  Operations Per Common Share:     Basic                                N/A            N/A  $       (0.07)     Diluted                              N/A            N/A  $       (0.07) Net (Loss) Income Per Common  Share:     Basic                      $       (2.40) $       (1.09) $        0.01     Diluted                    $       (2.40) $       (1.09) $        0.01 Stock Price Per Common Share  (Period End)                  $        2.45  $        5.53  $        8.87 Total Market Capitalization  (Period End)                  $     118,012  $     265,412  $     425,166 Shares Outstanding (Period  End)(2)                              48,168         47,995         47,933 Weighted Average Shares  Outstanding--Basic                   46,866         46,807         46,742 Weighted Average Shares  Outstanding--Diluted                 46,866         46,807         46,839 Average Managed Receivables  Statistics (3) Average Managed Receivables    $   2,918,099  $   3,318,998  $   3,986,532 GAAP Return On Average Managed  Receivables                           -15.4%          -6.1%           0.4% Net Interest Margin                      5.1%          13.8%          13.6% Other Income Ratio                       3.6%          13.5%           4.8% Net Charge-Off Rate                     20.1%          15.0%          20.1% Adjusted Charge-Off Rate                19.5%          14.2%          18.5% Risk Adjusted Margin                   -11.4%          12.2%          -0.9% Operating Ratio                         13.7%          14.1%          13.1% Period-End Managed Receivables  Statistics (3) Total Managed Receivables      $   2,673,845  $   3,121,682  $   3,813,040 Delinquency Rate (60+ days)             17.1%          16.3%          16.5% Number of Accounts                     3,560          3,993          4,983 (1) Except as otherwise noted herein, all per share financial, operating     and statistical measures are those that are attributable to controlling     interests only. (2) Shares outstanding balances exclude 3,651,069 shares that are     outstanding at March 31, 2009, December 31, 2008 and March 31, 2008 but     that are returnable to CompuCredit under the terms of a share lending     arrangement. (3) Receivables-based statistics are based on continuing operations only.                  CompuCredit Corporation and Subsidiaries                    Condensed Consolidated Balance Sheet                           (Dollars in thousands)                                                              March 31,                                                                2009                                                          -----------------                                                             (Unaudited)  Assets  Cash and cash equivalents (including restricted cash of   $18,355)                                               $          96,429  Securitized earning assets                                        621,834  Non-securitized earning assets, net:      Loans and fees receivable, net (of $22,585 in       deferred revenue and $53,530 in allowances for       uncollectible loans and fees receivable)                     319,352    Investments in previously charged-off receivables                55,488    Investments in securities                                         4,005  Deferred costs, net                                                 5,833  Property at cost, net of depreciation                              43,265  Investments in equity-method investees                             44,774  Intangibles, net                                                    4,041  Goodwill                                                           64,355  Prepaid expenses and other assets                                  45,501                                                          -----------------  Total assets                                            $       1,304,877                                                          =================  Liabilities  Accounts payable and accrued expenses                   $          87,748  Notes payable and other borrowings                                182,988  Convertible senior notes                                          302,048  Deferred revenue, primarily from forward flow agreement            23,377  Current and deferred income tax liabilities                        74,378                                                          -----------------  Total liabilities                                                 670,539                                                          -----------------  Equity  Common stock, no par value, 150,000,000 shares   authorized: 60,478,232 shares issued and 51,818,573   shares outstanding (including 3,651,069 loaned shares   to be returned)                                                        -  Additional paid-in capital                                        520,001  Treasury stock, at cost, 8,659,659 shares                        (220,564)  Accumulated other comprehensive loss                              (32,772)  Retained earnings                                                 340,632                                                          -----------------  Total shareholders' equity                                        607,297  Noncontolling interests                                            27,041                                                          -----------------  Total equity                                                      634,338                                                          -----------------  Total liabilities and equity                            $       1,304,877                                                          =================                  CompuCredit Corporation and Subsidiaries               Condensed Consolidated Statements of Operations                   (In thousands, except per share data)                                        For The Three Months Ended                                -------------------------------------------                                  March 31,    December 31,     March 31,                                    2009           2008           2008                                -------------  -------------  -------------                                 (Unaudited)    (Unaudited)    (Unaudited) Interest income:    Consumer loans, including     past due fees              $      19,801  $      21,580  $      22,916    Other                                 329            627          2,083                                -------------  -------------  ------------- Total interest income                 20,130         22,207         24,999 Interest expense                     (10,192)       (13,320)       (13,990)                                -------------  -------------  -------------    Net interest income before     fees and related income on     non-securitized earning     assets and provision for     loan losses                        9,938          8,887         11,009    Fees and related income on     non-securitized earning     assets                            44,465         44,525         56,264    Provision for loan losses         (12,763)       (18,470)       (20,406)                                -------------  -------------  ------------- Net interest income, fees and  related income on  non-securitized earning  assets                               41,640         34,942         46,867 Other operating (loss) income:    Fees and related (loss)     income on securitized     earning assets                  (152,026)       (93,198)        42,593    Servicing income                   39,404         44,192         48,286    Ancillary and interchange     revenues                           5,998          9,751         15,421    Gain on repurchase of     convertible senior notes             160         47,943              -    Equity in (loss) income of     equity-method investees           (2,182)         5,189          8,474                                -------------  -------------  ------------- Total other operating (loss)  income                             (108,646)        13,877        114,774 Other operating expense:    Salaries and benefits              14,232         14,340         18,779    Card and loan servicing            58,233         67,878         77,413    Marketing and solicitation          4,182          4,649         15,859    Depreciation                        6,357          6,911          9,954    Goodwill impairment                     -          1,704              -    Other                              25,682         31,228         29,131                                -------------  -------------  ------------- Total other operating expense        108,686        126,710        151,136                                -------------  -------------  ------------- (Loss) income from continuing  operations before income  taxes                              (175,692)       (77,891)        10,505    Income tax benefit (expense)       60,586         23,343         (4,518)                                -------------  -------------  ------------- (Loss) income from continuing  operations                         (115,106)       (54,548)         5,987 Discontinued operations: Loss from discontinued  operations before income tax  benefit                                   -              -         (4,685)    Income tax benefit                      -              -          1,640                                -------------  -------------  ------------- Loss from discontinued  operations                                -              -         (3,045)                                -------------  -------------  ------------- Net (loss) income                   (115,106)       (54,548)         2,942    Net loss (income)     attributable to     noncontrolling interests           2,589          3,616         (2,019)                                -------------  -------------  -------------    Net (loss) income     attributable to controlling     interests                  $    (112,517) $     (50,932) $         923                                =============  =============  ============= (Loss) income from continuing  operations attributable to  controlling interests per  common share--basic           $       (2.40) $       (1.09) $        0.08                                =============  =============  ============= (Loss) income from continuing  operations attributable to  controlling interests per  common share--diluted         $       (2.40) $       (1.09) $        0.08                                =============  =============  ============= Loss from discontinued  operations attributable to  controlling interests per  common share--basic           $           -  $           -  $       (0.07)                                =============  =============  ============= Loss from discontinued  operations attributable to  controlling interests per  common share--diluted         $           -  $           -  $       (0.07)                                =============  =============  ============= Net (loss) income  attributable to controlling  interests per common  share--basic                  $       (2.40) $       (1.09) $        0.01                                =============  =============  ============= Net (loss) income  attributable to controlling  interests per common  share--diluted                $       (2.40) $       (1.09) $        0.01                                =============  =============  =============                  CompuCredit Corporation and Subsidiaries                           Business Segment Data                                (Unaudited)                               (In thousands)                       Investments Three                     in  Months               Previously  Ended                  Charged-  Retail  March 31,   Credit       Off     Micro-     Auto  2009         Cards   Receivables Loans     Finance   Other       Total            -----------  -------  --------  --------  --------  ----------- Net  interest  income,  fees and  related  income  (loss) on  non-secu-  ritized  earning  assets    $    (5,616) $ 4,205  $ 15,683  $ 18,584  $  8,784  $    41,640            ===========  =======  ========  ========  ========  =========== Total  other  operating  (loss)  income    $  (108,987) $    28  $      -  $    313  $      -  $  (108,646)            ===========  =======  ========  ========  ========  =========== (Loss)  income  from  continui-  ng opera-  tions be-  fore inc-  ome taxes $  (178,025) $(2,328) $   (927) $  2,030  $  3,558  $  (175,692)            ===========  =======  ========  ========  ========  =========== Loss from  disconti-  nued ope-  rations  before  income  taxes     $         -  $     -  $      -  $      -  $      -  $         -            ===========  =======  ========  ========  ========  =========== Loans and  fees  receivab-  le, gross $     1,064  $     -  $ 32,870  $340,548  $ 20,985  $   395,467            ===========  =======  ========  ========  ========  =========== Loans and  fees  receivab-  le, net   $       797  $     -  $ 26,898  $276,726  $ 14,931  $   319,352            ===========  =======  ========  ========  ========  =========== Total  assets    $   796,490  $65,100  $ 41,670  $329,713  $ 71,904  $ 1,304,877            ===========  =======  ========  ========  ========  ===========                       Investments Three                     in  Months               Previously  Ended                  Charged-  Retail  March 31,   Credit       Off     Micro-     Auto  2008         Cards   Receivables Loans     Finance   Other       Total            -----------  -------  --------  --------  --------  ----------- Net  interest  income,  fees and  related  income  (loss) on  non-secu-  ritized  earning  assets    $    (7,928) $18,937  $ 17,860  $ 15,812  $  2,186  $    46,867            ===========  =======  ========  ========  ========  =========== Total  other  operating  income    $   114,365  $   213  $      -  $    196  $      -  $   114,774            ===========  =======  ========  ========  ========  =========== Income  (loss)  from  continui-  ng opera-  tions be-  fore inc-  ome taxes $    (1,783) $13,573  $  4,432  $ (2,924) $ (2,793) $    10,505            ===========  =======  ========  ========  ========  =========== Loss from  disconti-  nued ope-  rations  before  income  taxes     $         -  $     -  $ (4,185) $      -  $   (500) $    (4,685)            ===========  =======  ========  ========  ========  =========== Loans and  fees  receivab-  le, gross $    28,395  $     -  $ 33,472  $370,939  $ 14,943  $   447,749            ===========  =======  ========  ========  ========  =========== Loans and  fees  receivab-  le, net   $    23,282  $     -  $ 28,088  $303,744  $  9,455  $   364,569            ===========  =======  ========  ========  ========  =========== Total  assets    $ 1,352,723  $36,058  $ 98,222  $390,547  $ 59,871  $ 1,937,421            ===========  =======  ========  ========  ========  ===========                  CompuCredit Corporation and Subsidiaries           Managed Earnings and Reconciliation of Reported GAAP Net                 (Loss) Income to Managed Earnings                             (Unaudited)                    (In thousands, except per share data)                                       For The Three Months Ended                             ----------------------------------------------                                March 31,     December 31,      March 31,                                  2009            2008            2008                             --------------  --------------  -------------- GAAP net (loss) income  attributable to  controlling interests as  reported                   $     (112,517) $      (50,932) $          923 Securitization adjustment,  net of tax                         (2,372)         32,996        (102,348) Provision to charge off  adjustment, net of tax             (6,710)          1,936          (5,393)                             --------------  --------------  -------------- Managed net loss  attributable to  controlling interests      $     (121,599) $      (16,000) $     (106,818)                             ==============  ==============  ============== Managed net loss  attributable to  controlling interests per  common share               $        (2.59) $        (0.34) $        (2.29)                             ==============  ==============  ==============              For The Three Months Ended      For The Three Months Ended                    March 31, 2009                  March 31, 2008           -------------------------------   ------------------------------             GAAP    Adjustments  Managed      GAAP   Adjustments  Managed           ---------   --------   --------   --------   --------   -------- Net interest  margin on  loans  receiv-  able     $  19,801   $ 17,754   $ 37,555   $ 22,916   $112,708   $135,624 Net  interest  expense     (9,863)     5,249     (4,614)   (11,907)     3,987     (7,920) Provision /  charge  offs       (12,763)  (129,470)  (142,233)   (20,406)  (163,798)  (184,204) Other  Operating  (loss)  income     (64,181)    90,539     26,358    171,038   (123,364)    47,674 Marketing  expense     (4,182)         -     (4,182)   (15,859)         -    (15,859) Ancillary  product  expense       (104)         -       (104)      (344)         -       (344) Operating  expenses  (104,400)     4,547    (99,853)  (134,933)     4,203   (130,730)           ---------   --------   --------   --------   --------   -------- (Loss)  income  from  continuing  operations  before  income  taxes     (175,692)   (11,381)  (187,073)    10,505   (166,264)  (155,759) Income tax  benefit  (expense)   60,586      4,888     65,474     (4,518)    56,994     52,476           ---------   --------   --------   --------   --------   -------- (Loss)  income  from  continuing  opera-  tions     (115,106)    (6,493)  (121,599)     5,987   (109,270)  (103,283) Loss from  discontinued  operations  before income  tax benefit    N/A        N/A        N/A     (4,685)      (753)    (5,438) Income tax  benefit of  discontinued  operations     N/A        N/A        N/A      1,640        263      1,903           ---------   --------   --------   --------   --------   -------- Loss from  discontinued  operations     N/A        N/A        N/A     (3,045)      (490)    (3,535)           ---------   --------   --------   --------   --------   -------- Net (loss)  income    (115,106)    (6,493)  (121,599)     2,942   (109,760)  (106,818) Net loss  (income)  attributable  to  non-  controlling  interests    2,589     (2,589)         -     (2,019)     2,019          -           ---------   --------   --------   --------   --------   -------- Net (loss)  income  attributable  to cont-  rolling  inte-  rests    $(112,517)  $ (9,082) $(121,599)  $    923 $(107,741) $ (106,818) Weighted  average  shares  out-  standing    46,866                46,866     46,839                46,742           ---------   --------   --------   --------   --------   -------- (Loss)  income  from  continuing  operations  attributable  to controlling  interests per  common  share    $   (2.40)  $  (0.19)  $  (2.59)  $   0.08   $  (2.29)  $  (2.21)           =========   ========   ========   ========   ========   ======== Loss from  discontinued  operations  attributable  to  controlling  interests  per  common  share          N/A        N/A        N/A   $  (0.07)  $  (0.01)  $  (0.08)           =========   ========   ========   ========   ========   ======== Net (loss)  income  attributable  to  controlling  interests  per  common  share    $   (2.40)  $  (0.19)  $  (2.59)  $   0.01   $  (2.30)  $  (2.29)           =========   ========   ========   ========   ========   ======== Gross loans  and fees  receiv-  able     $ 395,467 $2,278,378 $2,673,845   $447,749 $3,365,291 $3,813,040           ========= ========== ==========   ======== ========== ==========                                           For The Three Months Ended                                                December 31, 2008                                      -------------------------------------                                          GAAP     Adjustments    Managed                                      -----------  -----------  ----------- Net interest margin on loans  receivable                          $    21,580  $    93,002  $   114,582 Net interest expense                     (12,693)       5,859       (6,834) Provision / charge offs                  (18,470)     (99,533)    (118,003) Other operating income                    58,402       53,480      111,882 Marketing expense                         (4,649)           -       (4,649) Ancillary product expense                   (146)           -         (146) Operating expenses                      (121,915)       4,562     (117,353)                                      -----------  -----------  ----------- Loss from continuing operations  before income taxes                     (77,891)      57,370      (20,521) Income tax benefit                        23,343      (18,822)       4,521                                      -----------  -----------  ----------- Loss from continuing operations          (54,548)      38,548      (16,000) Loss from discontinued operations  before income tax benefit                   N/A          N/A          N/A Income tax benefit of discontinued  operations                                  N/A          N/A          N/A                                      -----------  -----------  ----------- Loss from discontinued operations            N/A          N/A          N/A                                      -----------  -----------  ----------- Net (loss) income                        (54,548)      38,548      (16,000) Net loss (income) attributable to  noncontrolling interests                  3,616       (3,616)           -                                      -----------  -----------  ----------- Net (loss) income attributable to  controlling interests               $   (50,932) $    34,932  $   (16,000) Weighted average shares outstanding       46,807                    46,807                                      -----------  -----------  ----------- (Loss) income from continuing  operations attributable to  controlling interests per common  share                               $     (1.09) $      0.75  $     (0.34)                                      ===========  ===========  =========== Loss from discontinued operations  attributable to controlling  interests per common share                  N/A          N/A          N/A                                      ===========  ===========  =========== Net (loss) income attributable to  controlling interests per common  share                               $     (1.09) $      0.75  $     (0.34)                                      ===========  ===========  =========== Gross loans and fees receivable      $   421,244  $ 2,700,438  $ 3,121,682                                      ===========  ===========  =========== 

 Contact: Investor Relations Jay Putnam 770.828.2612 Email Contact  Media Relations Tom Donahue 770.828.1577 Email Contact  

SOURCE: CompuCredit

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