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THE FOOTHILL GROUP INC. REPORTS 1992 SECOND QUARTER RESULTS

     THE FOOTHILL GROUP INC. REPORTS 1992 SECOND QUARTER RESULTS
    LOS ANGELES, July 21 /PRNewswire/ -- The Foothill Group Inc. (NYSE: FGI) today reported that net income for the second quarter ended June 30, 1992, was $3,454,000, or 24 cents per fully diluted share, compared with net income of $1,276,000, or 12 cents per fully diluted share, for the 1991 second quarter.  For the six months ended June 30, 1992, Foothill reported net income of $6,818,000, or 50 cents per fully diluted share, compared with net income of $2,534,000 or 24 cents per fully diluted share for the same period in 1991.  A noncash extraordinary charge of $505,000, or 3 cents per fully diluted share, was recorded in the quarter ended June 30, 1992. This nonrecurring extraordinary charge resulted from the elimination of unamortized deferred costs related to parent company senior debt obligations.  These obligations, totaling $18,604,000, were extinguished during the quarter in advance of their scheduled maturities.
    Don L. Gevirtz, chairman and chief executive officer, said "Foothill continues to prosper and grew its finance receivables from $596,412,000 at Dec. 31, 1991, to $660,240,000 at June 30, 1992. Foothill Capital's outstanding commercial paper, its lowest cost source of funds, grew from $10,886,000 at Dec. 31, 1991, to $147,021,000 at June 30, 1992.  As a result, interest margins grew to $17,738,000 for the six months ended June 30, 1992, from $13,702,000 for the same period in 1991.  The company's asset management activities continued to progress during the second quarter.  For the six months ended June 30, 1992, the company recorded earnings from its asset management activities, including profits from its partnership investments, of $2,794,000 vs. a loss of $586,000 for the same period in 1991.
    "The parent company made substantial progress in executing its strategic deleveraging plan.  On May 13, 1992, the company announced the completion of a public offering of 3,450,000 shares of common stock at $8 3/8 per share.  Proceeds of the offering which totaled $27,220,500, were used in part to reduce parent company liabilities to $20,251,000 as of June 30, 1992, from $45,326,000 as of Dec. 31, 1991.  On July 20, 1992, parent company liabilities were further reduced by an additional $7,063,000 because of the elimination of more than one-half of the company's outstanding 9.5 percent convertible subordinated debentures.  $6,471,000 of these debentures were converted into common stock while $592,000 of the debentures were redeemed for cash.  Book value per common share was $7.58 as of June 30, 1992, up from $6.98 as of Dec. 31, 1991."
    The Foothill Group Inc. is a financial services company engaged in the commercial finance and asset management businesses.  Foothill Capital Corp., its largest subsidiary, provides asset-based financing secured by accounts receivable, inventory, equipment and other assets to businesses nationwide.  Foothill Thrift and Loan specializes in providing commercial and industrial loans to small- and medium-sized businesses.  The Capital Markets Division (parent company) manages institutional limited partnerships which invest in the debt of companies which are in reorganization or in the process of restructuring.
                       THE FOOTHILL GROUP INC.
            Consolidated Statements of Income (Unaudited)
          Three and six months ended June 30, 1992 and 1991
            (Dollars in thousands, except per share data)
                         Three months ended     Six months ended
                               June 30,             June 30,
                          1992        1991      1992       1991
    Interest income     $19,708     $19,533   $37,328    $39,636
    Interest expense      9,364      12,549    19,590     25,934
    Interest margin      10,344       6,984    17,738     13,702
    Fees and other income 5,636       2,328    10,718      5,044
    Total margin         15,980       9,312    28,456     18,746
    Gain (loss) on
     investments, net       971        (114)    2,794       (586)
    Provision for
     credit losses        4,324       1,643     7,114      3,208
    General and
     administrative       5,917       5,356    11,724     10,584
    Income before income
     taxes and
     extraordinary items  6,710       2,199    12,412      4,368
    Provision for
     income taxes         2,751         945     5,089      1,878
    Income before
     extraordinary items  3,959       1,254     7,323      2,490
    Extraordinary items    (505)         22      (505)        44
    Net income           $3,454      $1,276    $6,818     $2,534
    Per share data
     (shares in thousands):
    Primary:
     Income before
      extraordinary items $0.30       $0.13     $0.60      $0.25
     Extraordinary items  (0.04)        ---     (0.04)       ---
     Earnings per common
      and common
      equivalent share    $0.26       $0.13     $0.56      $0.25
    Fully diluted:
     Income before
      extraordinary items $0.27       $0.12     $0.53      $0.24
     Extraordinary items  (0.03)        ---     (0.03)       ---
     Earnings per common
      share assuming
      full dilution       $0.24       $0.12     $0.50      $0.24
    Number of shares used
     in per share
     computations:
      Primary            12,869      10,142    11,872     10,060
      Fully diluted      15,511      12,101    14,526     11,995
                       THE FOOTHILL GROUP INC.
                     Consolidated Balance Sheets
                   June 30, 1992 and Dec. 31, 1991
                       (Dollars in thousands)
                                       June 30,      Dec. 31,
                                         1992          1991
                                      (Unaudited)
    Assets
    Cash and cash equivalents          $33,909       $15,955
    Finance receivables:
     Accounts receivable loans         200,197       170,524
     Term loans                        434,359       415,160
     Loans in process of
      foreclosure, net                  25,684        10,728
       Finance receivables             660,240       596,412
     Allowance for credit losses        12,837        10,647
       Finance receivables, net        647,403       585,765
    Repossessed assets, net              7,126         9,726
    Equity, debt and partnership
      investments                       17,171        14,913
    Prepaid income taxes                 7,544         8,252
    Deferred fund and debt issuance
     costs, net                          3,705         5,029
    Property and equipment, at cost less
     accumulated depreciation and
     amortization ($2,169 at
     June 30, 1992; $2,033 at
     Dec. 31, 1991)                      1,859          2,056
    Other assets                         7,011          5,998
    Total                             $725,728       $647,694
    Liabilities and Stockholders' Equity
    Liabilities:
     Commercial paper                 $147,021        $10,886
     Savings accounts                  226,750        205,649
     Senior notes payable              173,827        283,795
     Accounts payable and accrued
      liabilities                        9,457          8,717
     Subordinated notes and
      debentures                        59,212         64,142
       Total liabilities               616,267        573,189
    Stockholders' equity:
     Convertible preferred stock,
      $1.00 par value, $30.00 per share
      liquidation preference, 9 percent
      cumulative, 100,000 shares issued
      and outstanding                   2,900           2,900
     Class A common stock, no par
      valRetained earnings                 21,911          15,235
       Total stockholders' equity     109,461          74,505
     Total                           $725,728        $647,694
    -0-                    7/21/92
    /CONTACT:  Henry K. Jordan, VP and CFO of The Foothill Group, 310-996-7000/
    (FGI) CO:  The Foothill Group Inc. ST:  California IN:  FIN SU:  ERN JB-JL -- LA006 -- 1111 07/21/92 08:41 EDT
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Date:Jul 21, 1992
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