FirstCity Financial Corporation Reports Third Quarter 2009 Results and Activities
- Press Release
- Source: FirstCity Financial Corporation
- On 8:00 am EST, Tuesday November 10, 2009
WACO, Texas, Nov. 10, 2009 (GLOBE NEWSWIRE) -- FirstCity Financial Corporation (Nasdaq:FCFC - News)
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| FCFC | 7.60 | -0.04 |
Highlights:
* FirstCity reported third quarter 2009 earnings of $2.0 million or $0.19 per diluted share. * FirstCity invested $26.9 million in domestic portfolio acquisitions and other investments during the quarter. * FirstCity reported continued earning asset growth of $9.8 million for the third quarter of 2009 -- as total earning assets grew to $393.0 million at September 30, 2009.
Third Quarter 2009 and Business Outlook
FirstCity generated net earnings of $2.0 million for the third quarter of 2009, which is a $3.8 million increase over the $1.8 million net loss reported for the third quarter of 2008. The diluted net income per common share was $0.19 in the third quarter of 2009, compared to a diluted net loss per common share of $0.17 for the same period last year. The earnings improvement was a result of (1) increased revenues directly associated with higher domestic collections from our consolidated portfolios in the third quarter of 2009 compared to the same period last year; (2) a $0.6 million decline in FirstCity's combined share of impairment in the third quarter of 2009 compared to 2008; and (3) a $0.6 million increase in the combined impact of foreign currency exchange gains from FirstCity's foreign investments in the third quarter of 2009 compared to the same period last year.
FirstCity's investments of $26.9 million during the third quarter included $21.0 million of domestic portfolio assets with a face value of $115.1 million acquired primarily from the FDIC; $2.4 million of SBA loan advances and originations; and $3.5 million of debt investments to privately-held middle-market companies.
The Company continues to experience positive growth with the unrealized future gross profit associated with its core portfolio asset business. At the end of September 2009, the unrealized future gross profit on these assets increased to $161.9 million, which is up from $122.3 million at the end of December 2008. Unrealized future gross profit is a non-GAAP measure. Refer to the Schedule of Estimated Unrealized Gross Profit from Portfolio Assets on page 10 of this release for a reconciliation of this measure with the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles.
Items impacting comparability of results for the third quarter of 2009 are as follows:
Total assets at the end of third quarter 2009 increased to $438.1 million compared to $421.3 million at the end of second quarter 2009 as a result of FirstCity's loan portfolio acquisitions and other investments during the quarter. The Company's earning assets experienced a corresponding increase to $393.0 million at the end of September 2009 compared to $383.2 million at the end of June 2009.
Revenues in the third quarter of 2009 increased to $18.7 million compared to $12.7 million in the third quarter last year. The Company's revenues in the third quarter of 2009 included $12.1 million of income and gains from Portfolio Assets, $1.5 million of interest income from loans receivable, and $2.2 million of fee income attributable to our loan servicing platform. Increased revenue in the third quarter of 2009 is a result of increased collections on consolidated portfolios to $42.5 million in the third quarter of 2009 compared to $15.6 million in the same period a year ago, and FirstCity's increased holdings in earning assets ($393.0 million at the end of September 2009 compared to $301.7 million at the end of September 2008).
The Company recorded net provisions for loss of $1.5 million during the third quarter of 2009 compared to $2.1 million in the third quarter of 2008. The provisions in the third quarter of 2009 were recorded to reflect changes in management's estimates as to the timing and amount of projected future collections. The global distribution of the $1.5 million of net impairment provisions in the third quarter of 2009 includes $1.5 million for domestic assets, $0.2 million related to Latin American assets, and $0.2 million of net recoveries related to European assets. The net provisions were allocated between consolidated portfolios ($0.4 million) and non-consolidated subsidiaries ($1.1 million) in the third quarter 2009.
Foreign currency exchange gains of $0.1 million were recorded during the third quarter of 2009 compared to $0.5 million of foreign currency exchange losses for the same period in 2008.
Equity in earnings of unconsolidated subsidiaries was $0.4 million in the third quarter of 2009 compared to $2.2 million of net earnings for the same period a year ago. The decline was caused primarily by a decrease in Acquisition Partnership collections to $20.5 million in the third quarter of 2009 from $46.6 million for the same period last year -- which corresponds to a decrease in the Acquisition Partnerships' portfolio asset holdings (i.e. earning assets) to $271.1 million at September 2009 from $356.5 million at September 2008. FirstCity's average investment in equity-method investments (including Acquisition Partnerships) decreased to $70.9 million for the third quarter of 2009 compared to $89.1 million for the third quarter of 2008. Since a majority of FirstCity's portfolio acquisitions over the past twelve months were acquired through consolidated Portfolios instead of equity investments in Acquisition Partnerships, the Company expects income from consolidated investments to off-set the decline in equity earnings.
Selected financial data for the third quarter of 2009:
The Company's total operating expenses (excluding provision, interest and income tax expenses) experienced a modest decline to $10.4 million for the third quarter of 2009 from $10.7 million in the third quarter of 2008 -- attributed primarily to $0.1 million of consolidated foreign exchange gains recorded in the third quarter 2009 compared to $0.5 million of foreign exchange losses in the same period a year ago -- which is a $0.6 million favorable swing.
Total interest expense decreased to $3.5 million in the third quarter of 2009 from $4.6 million for the same period in 2008 (even though FirstCity's third quarter average debt holdings increased to $303.3 million in 2009 from $231.3 million in 2008). The interest expense decline is attributable to the Company's lower average cost of funds of 4.6% during the third quarter of 2009 compared to 7.9% from the same period in 2008 due to a decline in market interest rates over the past twelve months.
Total income tax expense increased by $1.3 million in the third quarter of 2009 compared to the same period in 2008. The income tax expense increase is attributable to $1.4 million of foreign income taxes recorded during the third quarter of 2009 related to our consolidated European investments.
Other Corporate Matters
Prudential Lawsuit
As announced on September 30, 2009, FirstCity disclosed that it had entered into an agreement which provides for the settlement of the lawsuit involving the disputed ownership of approximately $18.6 million of proceeds from the demutualization of Prudential Insurance Company. The agreement between the three claimants calls for the proceeds to be split evenly between the parties - and FirstCity will receive approximately $6.2 million in proceeds under the agreement. On October 16, 2009, the trial court granted preliminary approval of the settlement, set the hearing on the fairness of the settlement on November 12, 2009, and approved the form and content of the notice to class members and the method of providing notice to the class members. The settlement is subject to notice to the class of the action and final approval by the trial court after hearings on the fairness of the settlement with respect to the class of former employees. If approved by the trial court, we anticipate that the proceeds will be distributed to all parties prior to year-end.
Liquidity
FirstCity has $350.0 million of credit facility commitments (subject to borrowing base requirements of the respective credit facilities) with Bank of Scotland and BoS(USA) Inc. available to finance its portfolio and asset purchases, capital investments in new ventures, and to provide for working capital to support our growth. At September 30, 2009, FirstCity's maximum unused borrowing capacity under these credit commitments approximated $72.9 million. These credit facilities are available to FirstCity through their maturity in November 2010. FirstCity is in discussions with Bank of Scotland and BoS(USA) Inc. regarding these credit facilities, but there can be no assurances that FirstCity can obtain an extension of these loan facilities on terms that are acceptable to the Company.
Conference Call
A conference call will be held on Tuesday, November 10, 2009 at 9:00 a.m. Central Time to discuss third quarter results. A question and answer session will follow the prepared remarks. Details to access the call and webcast are as follows:
Event: FirstCity Financial Corporation Third Quarter 2009
Conference Call
Date: Tuesday, November 10, 2009
Time: 9:00 a.m. Central Time
Host: James T. Sartain, FirstCity's President and Chief
Executive Officer
Web Access: FirstCity's web page - www.fcfc.com/invest.htm or,
CCBN's Investor websites - www.streetevents.com and,
www.earnings.com
Dial In Access: Domestic 866-543-6403
International 617-213-8896
Pass code 39061487
Replay available on FirstCity's web page (www.fcfc.com/invest.htm)
FirstCity Financial Corporation is a diversified financial services company with operations dedicated primarily to distressed asset acquisitions and special situations investments. FirstCity has offices in the U.S. and affiliate organizations in Europe and Latin America. FirstCity common stock is listed on the NASDAQ Global Select Market (Nasdaq:FCFC - News).
The FirstCity Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4413
Forward-Looking Statements
FirstCity may from time to time make written or oral forward-looking statements, including statements contained in this press release, FirstCity's filings with the Securities and Exchange Commission ("SEC"), in its reports to stockholders and in other FirstCity communications. These statements relate to FirstCity's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future and may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this press release are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in the Company's filings with the SEC including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K, filed with the SEC and available through the Company's website, which contain a more detailed discussion of the Company's business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the SEC or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.
FirstCity Financial Corporation
Summary of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Servicing fees $ 2,222 $ 3,842 $ 7,017 $ 8,748
Income from Portfolio
Assets 12,134 5,229 35,254 15,786
Gain on sale of SBA
loans held for sale, net 301 85 911 227
Interest income from
SBA loans 299 368 940 1,210
Interest income from
loans receivable -
affiliates 1,078 875 2,940 1,508
Interest income from
loans receivable - other 99 541 892 1,171
Revenue from railroad
operations 776 810 2,228 2,446
Other income 1,822 939 4,891 2,586
-------- -------- -------- --------
Total revenues 18,731 12,689 55,073 33,682
-------- -------- -------- --------
Expenses:
Interest and fees on
notes payable to banks 3,072 4,249 9,261 11,690
Interest and fees on
notes payable to
affiliates 428 322 1,305 322
Salaries and benefits 5,300 5,655 16,386 15,982
Provision for loan and
impairment losses 425 1,123 2,208 11,243
Asset-level expenses 1,992 1,105 4,646 4,093
Occupancy, data
processing and other 3,093 3,980 8,681 9,738
-------- -------- -------- --------
Total expenses 14,310 16,434 42,487 53,068
-------- -------- -------- --------
Equity in net earnings of
subsidiaries 421 2,170 1,473 8,018
Step acquisition gain from
business combination -- -- 1,455 --
-------- -------- -------- --------
Earnings (loss) before
income taxes 4,842 (1,575) 15,514 (11,368)
Income taxes (1,254) 44 (1,957) (245)
-------- -------- -------- --------
Net earnings (loss) 3,588 (1,531) 13,557 (11,613)
Less: net income
attributable to
noncontrolling
interests 1,588 224 3,167 255
-------- -------- -------- --------
Net earnings (loss)
attributable to FirstCity $ 2,000 $ (1,755) $ 10,390 $(11,868)
======== ======== ======== ========
Basic earnings (loss) per
common share are
as follows:
Net earnings (loss)
attributable to
FirstCity stockholders $ 0.20 $ (0.17) $ 1.06 $ (1.14)
Weighted average
common shares
outstanding 9,838 10,232 9,834 10,391
Diluted earnings (loss)
per common share are as
follows:
Net earnings (loss)
attributable to
FirstCity stockholders $ 0.19 $ (0.17) $ 1.02 $ (1.14)
Weighted average
common shares
outstanding 10,325 10,232 10,160 10,391
Selected Balance Sheet Data
Sept. 30, Dec. 31,
2009 2008
-------- --------
(Unaudited)
Cash and cash equivalents $ 32,992 $ 19,103
Restricted cash 1,039 1,217
Earning assets:
Portfolio acquisition
and resolution assets:
Domestic 246,447 167,211
Latin America 41,458 42,426
Europe 60,908 48,612
Other -- 228
Special situations
platform assets 44,161 37,786
Service fees receivable
and other assets 11,082 12,354
-------- --------
Total assets $438,087 $328,937
======== ========
Notes payable to banks $294,805 $242,889
Note payable to affiliate 8,058 8,658
Other liabilities 17,764 11,515
-------- --------
Total liabilities 320,627 263,062
Total equity 117,460 65,875
-------- --------
Total liabilities
and equity $438,087 $328,937
======== ========
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- --------
Summary Operating
Statement Data for Each
Segment
Portfolio Asset
Acquisition and
Resolution segment:
Revenues $ 16,817 $ 10,886 $ 49,083 $ 29,136
Equity in net earnings
of subsidiaries (1,043) 1,238 (188) 7,442
Step acquisition gain
from business
combination -- -- 1,455 --
Expenses (11,995) (12,637) (32,173) (34,005)
-------- -------- -------- --------
Operating contribution
before provision for
loan and impairment
losses 3,779 (513) 18,177 2,573
Provision for loan
and impairment losses 425 1,123 1,241 11,243
Net income
attributable to
noncontrolling
interests (1,326) (55) (2,854) (93)
-------- -------- -------- --------
Operating
contribution (loss),
net of direct taxes $ 2,028 $ (1,691) $ 14,082 $ (8,763)
======== ======== ======== ========
Special Situations
Platform segment:
Revenues $ 1,820 $ 1,715 $ 5,733 $ 4,231
Equity in net earnings
(loss) of subsidiaries 1,464 932 1,661 576
Expenses (1,407) (1,297) (4,294) (3,013)
-------- -------- -------- --------
Operating contribution
(loss) before
provision for loan and
impairment losses 1,877 1,350 3,100 1,794
Provision for loan and
impairment losses -- -- 967 --
Net loss (income)
attributable to
noncontrolling
interests (262) (169) (313) (162)
-------- -------- -------- --------
Operating
contribution (loss),
net of direct taxes $ 1,615 $ 1,181 $ 1,820 $ 1,632
======== ======== ======== ========
Three Months Ended Nine Months Ended
September 30, September 30,
Portfolio Asset
Acquisition and
Resolution segment: 2009 2008 2009 2008
-------- -------- -------- --------
Revenues and equity in
earnings of investments
by region:
Domestic $ 12,506 $ 5,725 $ 38,024 $ 17,532
Latin America 2,811 4,433 8,085 11,321
Europe 457 1,956 2,770 7,691
Canada -- 10 16 34
-------- -------- -------- --------
Total $ 15,774 $ 12,124 $ 48,895 $ 36,578
======== ======== ======== ========
Revenues and equity in
earnings of investments
by source:
Equity in net earnings
of subsidiaries $ (1,043) $ 1,238 $ (188) $ 7,442
Income from Portfolio
Assets 12,134 5,229 35,254 15,786
Servicing fees 2,222 3,842 7,017 8,748
Gain on sale of SBA
loans held for
sale, net 301 85 911 227
Interest income from
SBA loans 299 368 940 1,210
Interest income from
affiliates 471 442 1,560 739
Interest income from
loans receivable -
other -- 297 414 433
Other 1,390 623 2,987 1,993
-------- -------- -------- --------
Total $ 15,774 $ 12,124 $ 48,895 $ 36,578
======== ======== ======== ========
Special Situations
Platform segment:
Revenues and equity in
earnings of investments
by source:
Equity in net earnings
(loss) of subsidiaries $ 1,464 $ 932 $ 1,661 $ 576
Interest income from
loans receivable -
affiliates 607 433 1,380 769
Interest income from
loans receivable -
other 99 244 478 738
Revenue from railroad
operations 776 810 2,228 2,446
Other 338 228 1,647 278
-------- -------- -------- --------
Total $ 3,284 $ 2,647 $ 7,394 $ 4,807
======== ======== ======== ========
Number of personnel at
period end:
Domestic, Portfolio
Asset Acquisition and
Resolution segment 90 75
Domestic, Special
Situations Platform
segment 26 21
Latin America 126 132
Corporate 30 32
-------- --------
Total personnel 272 260
======== ========
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
Portfolio Purchases and Other Investments:
Portfolio Purchases
----------------------------------------------
Latin
Domestic Europe America Total
---------- ---------- ---------- ----------
2009
3rd Quarter $ 48,659 $ -- $ -- $ 48,659
2nd Quarter 67,085 -- -- 67,085
1st Quarter 70,238 -- -- 70,238
---------- ---------- ---------- ----------
Total Year 2009 $ 185,982 $ -- $ -- $ 185,982
========== ========== ========== ==========
2008
4th Quarter $ 26,363 $ 1,823 $-- $ 28,186
3rd Quarter 2,912 -- 1,576 4,488
2nd Quarter 28,427 -- 8,314 36,741
1st Quarter 6,692 -- 13,207 19,899
---------- ---------- ---------- ----------
Total Year 2008 $ 64,394 $ 1,823 $ 23,097 $ 89,314
========== ========== ========== ==========
Total Year 2007 $ 121,679 $ 23,199 $ 69,455 $ 214,333
========== ========== ========== ==========
Total Year 2006 $ 136,596 $ 102,158 $ 58,236 $ 296,990
========== ========== ========== ==========
FirstCity
FirstCity Investment
FirstCity Investment in Special
Investment in Other Situations Total
---------- ---------- ---------- ----------
2009
3rd Quarter $ 21,000 $ 2,403 $ 3,481 $ 26,884
2nd Quarter 48,559 19,149 3,164 70,872
1st Quarter 64,907 6,418 2,400 73,725
---------- ---------- ---------- ----------
Total Year 2009 $ 134,466 $ 27,970 $ 9,045 $ 171,481
========== ========== ========== ==========
2008
4th Quarter $ 27,183 $ 10,071 $ 3,150 $ 40,404
3rd Quarter 3,241 6,040 -- 9,281
2nd Quarter 33,448 15,443 16,756 65,647
1st Quarter 8,435 1,453 -- 9,888
---------- ---------- ---------- ----------
Total Year 2008 $ 72,307 $ 33,007 $ 19,906 $ 125,220
========== ========== ========== ==========
Total Year 2007 $ 126,714 $ 10,476 $ 11,530 $ 148,720
========== ========== ========== ==========
Total Year 2006 $ 144,048 $ 28,181 $ -- $ 172,229
========== ========== ========== ==========
Portfolio Asset Acquisition and Resolution segment:
---------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Aggregate purchase price
of portfolios acquired:
Acquisition partnerships
Domestic $ 48,659 $ 2,912 $185,982 $ 38,031
Latin America -- 1,576 -- 23,097
Europe -- -- -- --
-------- -------- -------- --------
Total $ 48,659 $ 4,488 $185,982 $ 61,128
======== ======== ======== ========
Historical Acquisitions Purchase FirstCity's
of Portfolios - Annual: Price Investment
-------- --------
Nine months ended
September 30, 2009 $185,982 $134,466
2008 89,314 72,307
2007 214,333 126,714
2006 296,990 144,048
2005 146,581 71,405
2004 174,139 59,762
Sept. 30, Dec. 31,
2009 2008
-------- --------
Portfolio acquisition and
resolution assets by
region:
Domestic $246,447 $167,211
Latin America 41,458 42,426
Europe 60,908 48,612
Canada -- 228
-------- --------
Total $348,813 $258,477
======== ========
Special Situations
Platform segment:
----------------- FirstCity Denver's Investment
-----------------------------
Historical Investments Total
- Annual: Investment Debt Equity Total
---------- ---- ------ -----
Nine months ended
September 30, 2009 $ 9,792 $ 8,658 $ 387 $ 9,045
2008 28,750 16,650 3,256 19,906
2007 22,314 5,630 5,900 11,530
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Analysis of Equity
Investments
FirstCity's average
investment:
Domestic, Portfolio
Asset Acquisition and
Resolution segment $ 12,424 $ 20,728 $ 13,816 $ 22,202
Domestic, Special
Situations Platform
segment 1,411 34 1,402 5
Latin America 18,042 24,238 17,843 23,610
Europe 11,917 27,757 12,607 29,569
Europe-Servicing
subsidiaries 24,255 11,531 22,998 8,887
Latin America-Servicing
subsidiaries 2,897 4,798 2,939 4,960
---------- ---------- ---------- ----------
Total $ 70,946 $ 89,086 $ 71,605 $ 89,233
========== ========== ========== ==========
FirstCity's share of
equity earnings (losses):
Domestic, Portfolio
Asset Acquisition and
Resolution segment $ (300)$ (448)$ 216 $ (294)
Domestic, Special
Situations Platform
segment 1,464 932 1,661 576
Latin America (207) 405 (460) 1,509
Europe (290) 1,625 689 5,705
Europe-Servicing
subsidiaries (26) (161) 54 649
Latin America-Servicing
subsidiaries (220) (183) (687) (127)
---------- ---------- ---------- ----------
Total $ 421 $ 2,170 $ 1,473 $ 8,018
========== ========== ========== ==========
Selected Other Data:
Average investment in
consolidated portfolio
assets and loans
receivable:
Domestic, Portfolio
Asset Acquisition and
Resolution segment $ 224,696 $ 138,800 $ 201,313 $ 129,478
Domestic, Special
Situations Platform
segment 30,481 28,981 29,871 17,671
Latin America 19,275 19,653 19,329 12,030
Europe 25,344 9,463 17,324 9,293
Canada -- 272 137 305
---------- ---------- ---------- ----------
Total $ 299,796 $ 197,169 $ 267,974 $ 168,777
========== ========== ========== ==========
Income from consolidated
portfolio assets and
loans receivable:
Domestic, Portfolio
Asset Acquisition and
Resolution segment $ 11,750 $ 4,851 $ 34,740 $ 15,495
Domestic, Special
Situations Platform
segment 706 677 1,858 1,507
Latin America 889 1,123 2,776 1,826
Europe 566 437 1,547 1,040
Canada -- 10 16 34
---------- ---------- ---------- ----------
Total $ 13,911 $ 7,098 $ 40,937 $ 19,902
========== ========== ========== ==========
Servicing fee revenues:
Domestic partnerships:
Servicing fee revenue $ 438 $ 1,156 $ 1,626 $ 1,865
Average servicing fee 9.4% 8.8% 8.5% 6.1%
Latin American
partnerships:
Servicing fee revenue $ 1,744 $ 2,615 $ 5,202 $ 6,744
Average servicing
fee % 25.6% 25.7% 34.5% 22.1%
Total Service
Fees-Portfolio Assets:
Servicing fee revenue $ 2,182 $ 3,771 $ 6,828 $ 8,609
Average servicing
fee % 19.0% 16.2% 20.0% 14.1%
Service Fees-SBA loans: $ 40 $ 71 $ 189 $ 139
Total Service Fees $ 2,222 $ 3,842 $ 7,017 $ 8,748
Collections:
Domestic partnerships $ 4,667 $ 13,161 $ 19,042 $ 30,736
Latin American
partnerships 8,673 16,384 20,535 56,900
European partnerships 7,200 17,028 22,578 50,149
---------- ---------- ---------- ----------
Partnership
collections 20,540 46,573 62,155 137,785
---------- ---------- ---------- ----------
Domestic consolidated 36,891 14,485 116,085 43,342
Latin American
consolidated 594 999 1,930 2,028
European consolidated 4,982 124 6,606 1,153
---------- ---------- ---------- ----------
Consolidated
collections 42,467 15,608 124,621 46,523
---------- ---------- ---------- ----------
Total collections $ 63,007 $ 62,181 $ 186,776 $ 184,308
========== ========== ========== ==========
Servicing portfolio
(face value) at
period end:
Domestic $ 766,491 $ 593,898
Latin America 1,419,269 1,582,654
Europe 1,750,148 1,362,008
---------- ----------
Total $3,935,908 $3,538,560
========== ==========
FirstCity
Financial Corporation Supplemental Information
(Dollars in thousands)
(Unaudited)
Summary of Consolidated Portfolio Assets (at Carrying Value) by
---------------------------------------------------------------
Region and Type
---------------
September 30, 2009
------------------------------------------------------------
Income-Accruing Loans Non-Accrual Loans
--------------------- --------------------
Loans Acquired
With Credit
Deterioration
Loans --------------------
Acquired Cost
With Credit Cash recovery Real
Deterioration Other basis basis Estate Total
------------- ------ -------- --------- ------- --------
United
States $44,818 $3,521 $68,089 $74,356 $26,153 $216,937
France -- 1,421 -- 12,011 -- 13,432
Germany 5,405 -- -- -- -- 5,405
Mexico -- -- -- 10,504 -- 10,504
--------------------- -------------------- -----------------
Total $50,223 $4,942 $68,089 $96,871 $26,153 $246,278
===================== ==================== =================
Illustration of the Effects of Foreign Currency Fluctuations on
---------------------------------------------------------------
Net Earnings (Loss)
--------------------
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2009 2008 2009 2008
---------------------------------------------- -------------------
Net earnings (loss) to
common stockholders $2,000 $ (1,755) $ 10,390 $(11,868)
Foreign currency gains
(losses), net:
Euro 141 (550) 81 (512)
Mexican Peso (81) 278 230 971
Argentine Peso (5) (33) (54) (2)
Chilean Peso 57 (182) 260 (129)
-----------------------------------------
Exchange rate at valuation
date:
Euro 0.69 0.69
Mexican Peso 13.50 10.79
Argentine Peso 3.85 3.13
Chilean Peso 555.30 550.59
FirstCity Financial Corporation
Schedule of Estimated Unrealized Gross Profit from Portfolio Assets
September 30, 2009
(Unaudited)
Basis in Portfolio Assets (1), (4)
($ in 000's) 12/31/2007 12/31/2008 9/30/2009
---------------------------------------------------------------------
Domestic 151,802 153,148 205,061
Europe 40,340 29,555 33,944
Latin America 26,844 29,867 27,771
----------------------------------
Total $218,987 212,570 266,776
==================================
Estimated Remaining Collections (2)
12/31/2007 12/31/2008 9/30/2009
Domestic $195,845 217,347 305,523
Europe 52,617 39,341 50,500
Latin America 68,900 78,211 72,647
----------------------------------
Total $317,363 334,899 428,670
==================================
Estimated Unrealized Gross Profit(3)
12/31/2007 12/31/2008 9/30/2009
Domestic $44,043 64,199 100,462
Europe 12,278 9,787 16,556
Latin America 42,056 48,344 44,876
----------------------------------
Total $98,376 122,329 161,894
==================================
Estimated Unrealized Gross Profit %
12/31/2007 12/31/2008 9/30/2009
Domestic 22.49% 29.54% 32.88%
Europe 23.33% 24.88% 32.78%
Latin America 61.04% 61.81% 61.77%
----------------------------------
Total 31.00% 36.53% 37.77%
==================================
A graphic accompanying this release is available at http://media.primezone.com/cache/9623/file/7565.pdf
12/31/2007 12/31/2008 9/30/2009
----------------------------------
FirstCity's consolidated
Portfolio Assets (as reported in
"Portfolio Assets" on the balance
sheet of the respective
Form 10-K or 10-Q) $ 122,001 148,213 246,254
Noncontrolling interests in
FirstCity's consolidated
Portfolio Assets (component
of "Non-controlling interests"
on the balance sheet of the
respective Form 10-K or 10-Q) (4,474) (11,460) (46,477)
FirstCity's interest in Portfolio
Assets held by Acquisition
Partnerships (a component of
"Assets" as reported in the
"Condensed Combined Balance
Sheets" tabular disclosure under
the "Equity Investments"
footnote of the respective
Form 10-K or 10-Q) 101,460 75,817 66,999
----------------------------------
FirstCity's basis in consolidated
and non-consolidated Portfolio
Assets $ 218,987 212,570 266,776
==================================
Contact:
FirstCity Financial Corporation
Suzy W. Taylor
866-652-1810
Related Headlines
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- New Star Analyst Rankings for FirstCity Financial Corporation - StarMine
- FIRSTCITY FINANCIAL CORP Files SEC form 8-K, Entry into a Material Definitive Agreement, Financial Statements and Exh - EDGAR Online
- FirstCity Financial Earnings Call scheduled for 10:00 am ET today - CCBN
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