Sears announced the company is filing amended SEC documents to correct an error related to the classification of cash flows generated in connection with the company’s domestic credit card business, which was divested in November 2003. Sears noted that the change does not affect the results of operations, net income, financial condition or net changes in cash and cash equivalents for any of the periods presented. The domestic credit card business and related receivable portfolios consisted primarily of the proprietary “Sears Card” and “Sears Gold MasterCard.” Historically, the company presented the aggregate cash flows generated from both the “Sears Card” and “Sears Gold MasterCard” as cash flows from operating activities in the consolidated statements of cash flows. As a result of the discussions with the SEC, the company has changed the classification of cash flows from the “Sears Gold MasterCard” portfolio from operating activities to investing activities within the consolidated statements of cash flows, as the loans generated were predominantly related to activities external to Sears’ merchandise and services. Sears also announced a restatement for the fourth quarter to correct its accounting for the amortization of construction allowances.Details
Providian’s managed charge-off rate declined 144 basis points, while its 30+ day delinquency ratio dropped 55 basis points, during January, compared to the prior month. Over the past thirteen months, Providian’s managed charge-off ratio has plummeted nearly 600 basis points, and managed delinquency has collapsed by more than 350 basis points. However, losses for Providian’s credit card ABS edged up slightly by 2 bps in January, as delinquency edged down by 5 bps. On a managed basis, charge-offs for January came in at 8.54% while delinquencies came in at 5.61%. During January, Providian’s managed credit card portfolio seasonally contracted by $300 million to $18,198,593,000. The Company’s managed 30+ day delinquency rate at the end of the fourth quarter was 6.16%, compared to 6.27% at the end of the third quarter. The managed net credit loss ratio for the fourth quarter was 9.98%, compared to 10.39% in the third quarter. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com]).
PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Dec 04 11.73% 8.06%
Jan 05 11.75% 8.01%
Source: CardData(R) (www.carddata.com)
Mashboxx, the first peer-to-peer file-sharing network authorized by major record labels, has selected the Peppercoin “Small Transaction Suite” to enable P2P consumers to purchase high-quality, legal digital downloads for $0.99. via credit and debit cards. Mashboxx intends to capitalize on the 2.2 billion music files that are traded monthly through the P2P networks and is the first to employ Snocap’s digital licensing and copyright management system. Mashboxx is scheduled to launch in the first quarter of 2005. Peppercoin enables profitable new business models for low-priced digital content and physical goods.Details
Hedge fund player JANA Partners LLC is recommending that Transaction Systems Architects implement an expanded stock repurchase program through a Dutch auction and also explore a sale or merger with a strategic partner since it is “overcapitalized and unfocused”.Details
Ohio-based Western Reserve Group has partnered with Solvport LLC for technical support of their “Genesis” and “Vision” ATMs, as well as all other machines processed through WRG. Solvport will offer on-going phone support for WRG customers. Solvport provides superior, cost-effective technical service and outsourced solutions to its customers in order to ensure optimal results and functionality of their Information Transaction Machines (ITM). WRG manufactures ATM devices, software application products and provides transaction processing and financing services for the ATM industry.Details
Barclay’s reported that profits from its Barclaycard division rose 5.3% last year, compared to 2003. Since 1998, Barclaycard’s profits have more than doubled, from GBP 374 million to GBP 801 million. Barclaycard assets grew 13.1% last year to GBP 23,019 million. The issuer noted that the modest profit increase was due to higher volumes that more than offset margin pressure, and the impact of considerable investment in both the U.K. and the international card businesses. The international business performed well in core markets – Spain and Germany – and the Juniper acquisition in the U.S.A., although small, is strategically significant. In the U.K., Barclaycard manages the Barclaycard branded credit cards, Barclays branded consumer
loans, mostly Barclayloan, and also comprises FirstPlus, Clydesdale Financial Services and Monument credit cards. Outside the UK, Barclaycard International is in the United States, Germany, Spain, Greece, Italy, Portugal, Republic of Ireland and across Africa. The acquisition of the U.S. credit card issuer, Juniper Financial Corporation, was completed on December 1st. Juniper provides a platform for the expansion of Barclaycard’s international business into the U.S. credit card market and specializes in partnership card issuance programs. For complete details on Barclaycard’s fourth quarter performance visit CardData (www.carddata.com).
Dallas-based TNB Card Services has purchased the credit card portfolios of three credit unions and entered into agent relationships with Mizzou CU in Missouri, Sentry FCU in Pennsylvania, and Marshfield Medical Center CU in Wisconsin. TNB Card Services, owned and directed by credit unions since 1976, provides full-service credit and debit card processing as well as an agent issuing solution for credit unions nationwide and has bought more than 50 portfolios since it began its agent issuer program in late 2002.Details
Average 30+ day delinquency declined 53 basis points last year for the top five issuers with aggregate managed U.S. credit card outstandings of $444 billion. Delinquency declined steadily all year except for a slight bounce in the third quarter, before ending the year at 4.16%. Discover posted the largest drop, from 5.97% to 4.55%. Delinquency at Chase dropped 98 basis points, while Bank of America and Capital One dropped 44 bps and 49 bps, respectively. MBNA reported a 19 bps decline in delinquency during 2004. For complete details on delinquency and charge-offs by the top ten issuers visit CardData ([www.carddata.com]).
TOP FIVE DELINQUENCY HISTORICAL
Source: CardData (www.carddata.com)
Boston Communications Group announced the availability of “bcgi Payment Manager,” a platform that gives wireless operators greater control over their payment processes for both prepaid and postpaid accounts. Easily integrated into any operator network, bcgi Payment Manager supports real-time payment processing and allows operators to quickly roll out new payment options to give customers additional payment flexibility. Boston Communications Group, Inc. (Nasdaq: BCGI), develops products and services that enable wireless operators to fully realize the potential of their networks. bcgi’s access management, billing, payment and network solutions help operators rapidly deploy and manage innovative voice and data services for subscribers.Details
MediaNet Group Technologies has signed an agreement with Cruises One, Inc. and Cruises, Inc. to become a “give and redeem” merchant in the “BSP Rewards Network”. BSP Rewards is a unique, private branded Rewards and Loyalty Program that offers members up to 15% rewards added to any rewards already associated with their credit cards. This one-of-a-kind program allows participating merchants, manufacturers and service organizations the opportunity to become redemption centers and enjoy their full retail margins on redemptions and an override on all purchases made by their members. MediaNet (OTCBB:MEDG) encompasses an integrated group of operating divisions that revolve around the many aspects of media and technology, including software, Web portal programs, branded rewards programs, television and video production and intellectual properties.Details
AnyDATA and Precidia Technologies have partnered to offer a low-cost wireless connectivity option for dial-based ATMs. Using this solution, ATM operators can reduce communication costs by 30% and process transactions up to three times faster, while gaining access to some of the largest wireless networks in the world. Precidia Technologies Inc. is a global leader in the design and manufacture of IP access devices for a wide range of industries, including retail payments and building automation. AnyDATA Corporation is a global leader in the design and manufacture of CDMA wireless modem modules and devices.Details
Canadian Tire Financial Services reported that its net managed credit card receivables for the fourth quarter increased 15% year-over-year to US$2.26 billion. The average credit card balance in the fourth quarter hit US$1,235, up 31% from one-year ago, largely driven by its “Options MasterCard” product. For 2004, the average credit card balance came in at US$1,163. Fourth quarter pre-tax earnings for CTFS were up 7% to US$37.6 million. Net credit losses for the quarter ended January 1st, were US$32.0 million, compared to US$25.9 million one-year ago. The Company said credit card write-offs for the fourth quarter and the total year were similar to prior year levels and remain within the targeted rate of 5% to 6% of managed receivables. This year, CTFS is expanding its personal loans program, which was successfully test-marketed in 2004. For complete details on Canadian Tire Financial Services’ fourth quarter performance, visit CardData ([www.carddata.com]).