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THE FOOTHILL GROUP INC. REPORTS 1992 THIRD QUARTER RESULTS

 THE FOOTHILL GROUP INC. REPORTS 1992 THIRD QUARTER RESULTS
 LOS ANGELES, Oct. 21 /PRNewswire/ -- The Foothill Group Inc. (NYSE: FGI) today reported that net income for the third quarter ended Sept. 30, 1992, was $2,686,000, or 16 cents per fully diluted share, compared with net income of $1,624,000, or 15 cents per fully diluted share, for the 1991 third quarter. For the nine months ended Sept. 30, 1992, Foothill reported a 128 percent increase in net income to $9,504,000, or 66 cents per fully diluted share, compared with net income of $4,158,000, or 39 cents per fully diluted share, for the same period in 1991.
 Henry K. Jordan, chief financial officer, said, "The company's third quarter results were favorable when compared to the 1991 third quarter and even those of the first and second quarters of 1992 when considering the following facts: The company reported $1,126,000 in gains from sales and exchanges of bank loans during the 1992 third quarter vs. $1,848,000 in the third quarter of 1991 and $3,686,000 in the second quarter of 1992. No net profits from managed partnerships, exclusive of management fees, were reported in the 1992 third quarter vs. $116,000 in the third quarter of 1991 and $575,000 in the second quarter of 1992. Foothill Thrift reported pretax income of $97,000 for the 1992 third quarter as compared to $170,000 in the third quarter of 1991 and $460,000 in the second quarter of 1992. The company's pretax results exclusive of the aforementioned items, were $3,337,000 for the third quarter of 1992 vs. $546,000 and $1,989,000 for the quarters ending Sept. 30, 1991, and June 30, 1992. 1992 third quarter fully diluted earnings per share shows only a slight increase over 1991 due to the increased level of outstanding common shares in 1992. This increase in shares is due to both the secondary offering of 3,450,000 shares completed in May 1992 and the recent conversion of $13,464,000 of the company's 9.5 percent convertible subordinated debentures to common stock.
 "We anticipate profits from asset-based lending activities in the fourth quarter will remain strong. We expect to report a lower level of gains from the sale and exchange of bank loans as compared to the $1,126,000 reported in the third quarter of 1992 and the $1,846,000 in the fourth quarter of 1991. We expect fourth quarter results of Foothill Thrift will be no higher than those recorded for this third quarter. Given these factors, the company does not anticipate recording consolidated fourth quarter earnings in excess of those reported for this third quarter. The company's equity, debt and partnership investments totaling $14,343,000 continue to show unrealized gains as the estimated market value of these investments totals $20,848,000 as of Sept. 30, 1992. In addition, investments of our managed partnerships show substantial unrealized gains which will contribute to future earnings when realized.
 "The parent company has nearly completed its strategic deleveraging plan. On July 20, 1992, the parent company eliminated over one half of the company's outstanding 9.5 percent convertible subordinated debentures. $6,527,000 of these debentures were converted into common stock, while $551,000 of the debentures were redeemed for cash. On Sept. 18, 1992, the parent company eliminated the remaining outstanding 9.5 percent convertible subordinated debentures. $6,937,000 of the remaining debentures were converted into common stock, while $59,000 were redeemed for cash. On Sept. 30, 1992, the company announced the redemption of its 12.5 percent subordinated debentures due in 1998. There are currently $4,948,000 of these debentures outstanding which will be redeemed for cash on Oct. 30, 1992. After this redemption, the parent company will have eliminated all debt obligations which totaled $45 million as of Dec. 31, 1991. Book value per common share was $7.68 as of Sept. 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
 Three months and nine months ended Sept. 30, 1992 and 1991
 (Dollars in thousands, except per share)
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Interest income $18,574 $18,538 $55,902 $58,205
 Interest expense 8,344 11,968 27,934 37,902
 Interest margin 10,230 6,570 27,968 20,303
 Fees and other income 3,216 4,099 13,934 9,112
 Total margin 13,446 10,669 41,902 29,415
 Gain (loss) on
 investments, net (217) (187) 2,577 (773)
 Provision for credit
 losses 2,643 2,470 9,757 5,678
 General and
 administrative 6,026 5,332 17,750 15,916
 Income before income
 taxes and extraordinary
 items 4,560 2,680 16,972 7,048
 Provision for income
 taxes 1,870 1,153 6,959 3,031
 Income before
 extraordinary items 2,690 1,527 10,013 4,017
 Extraordinary items (4) 97 (509) 141
 Net income $2,686 $1,624 $9,504 $4,158
 Per share data (shares
 in thousands):
 Primary:
 Income before
 extraordinary items $0.17 $0.15 $0.75 $0.40
 Extraordinary items --- 0.01 (0.04) 0.01
 Earnings per common and
 common equivalent
 share $0.17 $0.16 $0.71 $0.41
 Fully diluted:
 Income before
 extraordinary items $0.16 $0.14 $0.69 $0.38
 Extraordinary items --- 0.01 (0.03) 0.01
 Earnings per common
 share assuming
 full dilution $0.16 $0.15 $0.66 $0.39
 Number of shares used in
 per share computations:
 Primary 15,384 10,145 13,052 10,088
 Fully diluted 17,101 12,783 15,390 12,260
 THE FOOTHILL GROUP INC.
 Consolidated Balance Sheets
 Sept. 30, 1992, and Dec. 31, 1991
 (Dollars in thousands)
 Sept. 30, 1992 Dec. 31, 1991
 (unaudited)
 Assets
 Cash and cash equivalents $29,798 $15,955
 Finance receivables:
 Accounts receivable loans 198,569 170,524
 Term loans 424,745 415,160
 Loans in process of
 foreclosure, net 21,557 10,728
 Finance receivables 644,871 596,412
 Allowance for credit losses 13,417 10,647
 Finance receivables, net 631,454 585,765
 Repossessed assets, net 6,147 9,726
 Equity, debt and partnership
 investments 14,343 14,913
 Prepaid income taxes 9,381 8,252
 Deferred fund and debt
 issuance costs, net 2,635 5,029
 Property and equipment, at
 cost less accumulated
 depreciation and amortization
 ($2,304 at Sept. 30, 1992;
 $2,033 at Dec. 31, 1991) 1,842 2,056
 Other assets 3,491 5,998
 Total $699,091 $647,694
 Liabilities and Stockholders' Equity
 Liabilities:
 Commercial paper $115,375 $10,886
 Savings accounts 226,080 205,649
 Senior notes payable 176,327 283,795
 Accounts payable and accrued
 liabilities 10,707 8,717
 Subordinated notes and
 debentures 45,138 64,142
 Total liabilities 573,627 573,189
 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
 value, 15,959,202 shares
 issued and outstanding
 (10,264,825 at Dec. 31, 1991) 98,034 56,370
 Retained earnings 24,530 15,235
 Total stockholders' equity 125,464 74,505
 Total $699,091 $647,694
 -0- 10/21/92
 /CONTACT: Henry K. Jordan, VP & CFO of The Foothill Group, 310-996-7000/
 (FGI) CO: The Foothill Group ST: California IN: FIN SU: ERN


JB-LS -- LA027 -- 3189 10/21/92 18:09 EDT
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