Santander Consumer USA Inc.’s originations for the second quarter dropped 29% year over year, to $5.4 billion, from $7.6 billion during the prior year period. Chrysler Capital prime retail and lease originations were up 2%, while nonprime retail originations were down 44%, the company stated in its 10-Q, filed yesterday.
Santander Consumer delayed the filing of its second quarter earnings in late July and has since amended its form 10-K for 2015, and quarterly reports for the quarters ended March 31, 2015, June 30, 2015, September 30, 2015, and March 31, 2016, the company said in a press release yesterday.
The restated filings correct all known errors in the respective filings, SC said in the release, “the most significant of which are the company’s methodology for accreting dealer discounts and subvention payments from manufacturers and capitalized origination costs; the company’s lack of consideration of discounts given when purchasing loans while estimating the allowance for losses; and the discount rate used in determining the impairment for loans accounted for as troubled debt restructurings.”
The restated filings also correct an error in the company’s accounting for certain executive severance-related and stock compensation expenses. Specifically mentioned is the accounting for the amount of benefits payable to former chief executive Thomas Dundon, who left the company in July, 2015. Per his Separation Agreement, Dundon was to be paid up to $115 million in compensation benefits.
SC will release third quarter financial results on November 9, and will host a conference call to discuss the quarterly results at 9:00 a.m. that same day.
