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THE FOOTHILL GROUP INC. REPORTS THIRD QUARTER RESULTS

 LOS ANGELES, Oct. 14 /PRNewswire/ -- The Foothill Group Inc. (NYSE: FGI) today reported net income for the quarter ended Sept. 30, 1993, of $5,649,000, or 32 cents per fully diluted share, compared with net income of $2,686,000, or 16 cents per fully diluted share, for the quarter ended Sept. 30, 1992. For the nine months ended Sept. 30, 1993, net income increased 59 percent to $15,151,000, or 87 cents per fully diluted share, compared with net income of $9,504,000, or 66 cents per fully diluted share, for the same period in 1992. Return on average assets and return on equity for the nine months ended Sept. 30, 1993, totaled 2.7 percent and 14.98 percent, respectively. Pro-forma return on average assets and return on equity for the nine months ended Sept. 30, 1993, excluding Foothill Thrift, which is proposed to be spun- off to Foothill Group shareholders, would have been 4.1 percent and 17.43 percent respectively. Earnings per share in 1993 reflect a greater number of outstanding common shares when compared to 1992, due to a secondary offering of 3,450,000 common shares completed in May 1992.
 The company's 1993 third quarter net income significantly exceeded that of the 1992 third quarter due to improvements in interest margins, growth of the asset-based loan portfolio and results of money management activities. Interest margin, as a percent of average assets, grew to 6.4 percent for the third quarter of 1993, up from 5.5 percent for the year ended Dec. 31, 1992. Asset-based loans continued their growth and reached $737,389,000 as of Sept. 30, 1993, up from $616,012,000 as of Dec. 31, 1992.
 The company reported $3,194,000 in gains from sales of bank loans and related equities during the 1993 third quarter vs. $1,126,000 in the third quarter of 1992. Gains on investments, which are principally override earnings from the money management business, were $1,887,000 in the 1993 third quarter, up substantially from a loss of $217,000 in the third quarter of 1992. Several bank debt positions were sold at significant gains in the third quarter of 1993 resulting in the strong level of profits noted above.
 The company's consolidated level of non-performing finance receivables and repossessed assets declined to $33,512,000, or 4.47 percent of finance receivables plus repossessed assets, as of Sept. 30, 1993, down from $35,656,000, or 5.72 percent, as of Dec. 31, 1992.
 The previously announced plan to spin-off Foothill Thrift to Foothill Group shareholders is progressing, On Sept. 14, 1993, Pacific Crest Capital Inc., a new company which will become the holding company for Foothill Thrift upon spin-off, filed a form S-1 with the Securities and Exchange Commission. This new holding company intends to raise between $7.0 and $15.0 million of Noncumulative Convertible Preferred Stock. A significant portion of the offering proceeds would be contributed to Foothill Thrift to enhance the Thrift's capital ratios and permit managed growth. Upon successful closure of the proposed financing, as well as regulatory approvals, Foothill Group shareholders will receive a dividend of all of the common shares of Pacific Crest Capital Inc. The spin-off is anticipated to be made on the basis of one common share of Pacific Crest Capital Inc. for each 15 common shares of Foothill Group outstanding on the record date to be established by Foothill Group's board of directors. Completion of the spin-off and proposed financing is expected to occur in the fourth quarter of 1993.
 The company anticipates loan growth and profits from asset-based lending activities at Foothill Capital Corp. in the upcoming quarters will remain strong and also expects continued cyclicality in the levels of gains from the sale of bank loans and profits from managed partnerships. 1993 fourth quarter earnings should exceed 1992 fourth quarter results, but are not anticipated to reach the levels reported for the second and third quarters of 1993.
 The company's direct equity and purchased bank debt positions show unrealized gains totaling $21,129,000 as of Sept. 30, 1993, up from $13,800,000 as of Dec. 31, 1992. In addition, investments of the company's managed partnerships show substantial unrealized gains which will contribute to future earnings when realized. Book value per common share was $8.61 as of Sept. 30, 1993, up from $7.78 as of Dec. 31, 1992.
 The Foothill Group Inc. is a financial services company engaged in the asset-based lending and asset management businesses. As of Sept. 30, 1993, Foothill had total assets owned or under management of more than $1.3 billion. 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 real estate financing for California-based small businesses and entrepreneurs. The parent company's asset management operation 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 Balance Sheets
 Sept. 30, 1993, and Dec. 31, 1992
 (Dollars in thousands)
 Sept. 30, Dec. 31,
 1993 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $33,293 $53,113
 Finance receivables:
 Accounts receivable loans 315,972 180,441
 Term loans 399,453 411,619
 Loans in process of
 foreclosure, net 21,964 23,952
 Finance receivables 737,389 616,012
 Allowance for credit losses 16,577 13,722
 Finance receivables, net 720,812 602,290
 Repossessed assets, net 11,548 7,770
 Equity, debt and partnership
 investments 16,689 14,864
 Prepaid income taxes 9,541 8,926
 Deferred fund and debt
 issuance costs, net 9,529 7,692
 Property and equipment, at
 cost less accumulated
 depreciation and amortization
 ($2,788 at Sept. 30, 1993;
 $2,542 at Dec. 31, 1992) 2,657 2,187
 Other assets 2,478 2,763
 Total $806,547 $699,605
 Liabilities and Stockholders' Equity
 Liabilities:
 Commercial paper $171,240 $64,915
 Savings accounts 218,439 223,147
 Senior notes payable 212,359 216,560
 Accounts payable and accrued
 liabilities 15,863 16,031
 Subordinated notes and
 debentures 45,910 49,940
 Total liabilities 663,811 570,593
 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, 16,236,619 shares
 issued and outstanding
 (16,203,523 at Dec. 31, 1992) 99,244 99,009
 Retained earnings 40,592 27,103
 Total stockholders' equity 142,736 129,012
 Total $806,547 $699,605
 THE FOOTHILL GROUP INC.
 Consolidated Statements of Income
 Three and Nine Months ended Sept. 30, 1993 and 1992
 (Dollars in thousands, except per share data)
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Interest income $20,423 $18,574 $58,547 $55,902
 Interest expense 7,779 8,344 22,643 27,934
 Interest margin 12,644 10,230 35,904 27,968
 Fees and other income 6,621 3,216 19,262 13,934
 Total margin 19,265 13,446 55,166 41,902
 Gain (loss) on
 investments, net 1,887 (217) 5,030 2,577
 Provision for credit
 losses 4,760 2,643 14,118 9,757
 General and
 administrative 6,653 6,026 19,956 17,750
 Income before income
 taxes and extraordinary
 items 9,739 4,560 26,122 16,972
 Provision for income
 taxes 4,090 1,870 10,971 6,959
 Income before
 extraordinary items 5,649 2,690 15,151 10,013
 Extraordinary items --- (4) --- (509)
 Net income $5,649 $2,686 $15,151 $9,504
 Per share data (shares
 in thousands):
 Primary:
 Income before
 extraordinary items $0.33 $0.17 $0.90 $0.75
 Extraordinary items --- --- --- (0.04)
 Earnings per common and
 common equivalent
 share $0.33 $0.17 $0.90 $0.71
 Fully diluted:
 Income before
 extraordinary items $0.32 $0.16 $0.87 $0.69
 Extraordinary items --- --- --- (0.03)
 Earnings per common
 share assuming
 full dilution $0.32 $0.16 $0.87 $0.66
 Number of shares used in
 per share computations:
 Primary 16,748 15,384 16,637 13,052
 Fully diluted 17,441 17,101 17,318 15,390
 THE FOOTHILL GROUP INC.
 Selected Financial Data for Operating Subsidiaries
 (Unaudited)
 Foothill Capital Corp.
 Three Months Ended Sept. 30,
 (Dollars in thousands) 1993 1992
 Selected Operating Data(a):
 Interest income $14,868 11.4 pct. $12,828 11.5 pct.
 Interest expense 5,759 4.4 pct. 5,644 5.1 pct.
 Interest margin 9,109 7.0 pct. 7,184 6.4 pct.
 Fees and other income 4,922 3.8 pct. 2,418 2.2 pct.
 Total margin 14,031 10.8 pct. 9,602 8.6 pct.
 Provision for credit losses 3,482 2.7 pct. 1,791 1.6 pct.
 General and administrative
 expenses 3,909 3.0 pct. 3,725 3.4 pct.
 Income before income taxes 6,640 5.1 pct. 4,086 3.6 pct.
 Provision for income taxes 2,789 2.1 pct. 1,716 1.5 pct.
 Net income $3,851 3.0 pct. $2,370 2.1 pct.
 (a) Percentages are percent of average assets and have been annualized.
 Foothill Capital Corp.
 Nine Months Ended Sept. 30,
 (Dollars in thousands) 1993 1992
 Selected Operating Data(a):
 Interest income $41,610 11.6 pct. $38,518 11.9 pct.
 Interest expense 16,341 4.5 pct. 17,818 5.5 pct.
 Interest margin 25,269 7.1 pct. 20,700 6.4 pct.
 Fees and other income 14,133 3.9 pct. 11,208 3.5 pct.
 Total margin 39,402 11.0 pct. 31,908 9.9 pct.
 Provision for credit losses 9,304 2.6 pct. 7,762 2.4 pct.
 General and administrative
 expenses 12,172 3.4 pct. 11,205 3.5 pct.
 Income before income taxes 17,926 5.0 pct. 12,941 4.0 pct.
 Provision for income taxes 7,529 2.1 pct. 5,435 1.7 pct.
 Net income $10,397 2.9 pct. $7,506 2.3 pct.
 (a) Percentages are percent of average assets and have been annualized.
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 (Dollars in thousands) 1993 1992 1993 1992
 Selected Balance
 Sheet Data:
 Total assets $543,057 $434,700 $543,057 $434,700
 Average assets(b) 522,966 444,375 479,551 430,463
 Finance receivables 524,164 420,969 524,164 420,969
 Average finance
 receivables(b) 505,471 430,950 461,545 412,749
 Sources of funds
 employed:
 Commercial paper and
 bank borrowings $171,240 $119,975 $171,240 $119,975
 Senior notes 208,173 171,727 208,173 171,727
 Subordinated notes and
 debentures 57,160 53,190 57,160 53,190
 Stockholder's equity 93,524 81,175 93,524 81,175
 Total funds employed $530,097 $426,067 $530,097 $426,067
 (b) Average assets and finance receivables are a monthly average.
 Other selected data:
 Nonperforming finance
 receivables and
 repossessed
 assets(c) $14,500 $16,799 $14,500 $16,799
 Allowance for credit
 losses $13,357 $10,527 $13,357 $10,527
 Actual writeoffs during
 the period $2,502 $1,291 $6,474 $5,282
 Number of employees 108 97 108 97
 (c) Includes loans in process of foreclosure, repossessed assets and loans that have contractual installments more than 60 days past due.
 THE FOOTHILL GROUP INC.
 Selected Financial Data for Operating Subsidiaries
 (Unaudited)
 Foothill Thrift and Loan
 Three Months Ended Sept. 30,
 (Dollars in thousands) 1993 1992
 Selected Operating Data(a):
 Interest income $5,349 9.0 pct. $5,612 9.2 pct.
 Interest expense 2,324 3.9 pct. 2,787 4.6 pct.
 Interest margin 3,025 5.1 pct 2,825 4.6 pct.
 Fees and other income 205 0.3 pct. 48 0.1 pct.
 Total margin 3,230 5.4 pct. 2,873 4.7 pct.
 Gain (loss) on investments,
 net (260) (0.4 pct.) 19 ---
 Provision for credit losses 1,178 2.0 pct. 852 1.4 pct.
 General and administrative
 expenses 1,977 3.3 pct. 1,943 3.2 pct.
 Income (loss) before income
 taxes and extraordinary item (185) (0.3 pct.) 97 0.1 pct.
 Provision (credit) for
 income taxes (61) (0.1 pct.) 23 ---
 Income (loss) before
 extraordinary item (124) (0.2 pct.) 74 0.1 pct.
 Cumulative effect of
 adoption of FASB
 Statement No. 109 --- --- --- ---
 Net income (loss) ($124) (0.2 pct.) $74 0.1 pct.
 (a) Percentages are percent of average assets and have been annualized.
 Foothill Thrift and Loan
 Nine Months Ended Sept. 30,
 (Dollars in thousands) 1993 1992
 Selected Operating Data(a):
 Interest income $16,331 9.1 pct. $17,062 9.7 pct.
 Interest expense 7,175 4.0 pct. 8,641 4.9 pct.
 Interest margin 9,156 5.1 pct. 8,421 4.8 pct.
 Fees and other income 306 0.2 pct. 204 0.1 pct.
 Total margin 9,462 5.3 pct. 8,625 4.9 pct.
 Gain (loss) on investments,
 net (147) (0.1 pct.) (41) (0.1 pct.)
 Provision for credit losses 4,375 2.4 pct. 1,965 1.1 pct.
 General and administrative
 expenses 5,520 3.1 pct. 5,599 3.2 pct.
 Income (loss) before income
 taxes and extraordinary
 item (580) (0.3 pct.) 1,020 0.5 pct.
 Provision (credit) for income
 taxes (237) (0.1 pct.) 248 0.1 pct.
 Income (loss) before
 extraordinary item (343) (0.2 pct.) 772 0.4 pct.
 Cumulative effect of adoption
 of FASB Statement No. 109 560 0.3 pct. --- ---
 Net income $217 0.1 pct. $772 0.4 pct.
 (a) Percentages are percent of average assets and have been annualized.
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 (Dollars in thousands) 1993 1992 1993 1992
 Selected Balance
 Sheet Data:
 Total assets $236,998 $243,736 $236,998 $243,736
 Average assets(b) 238,342 243,419 239,955 233,859
 Finance receivables 207,611 223,150 207,611 223,150
 Average finance
 receivables(b) 210,461 218,705 215,363 213,399
 Sources of funds employed:
 Savings accounts $218,439 $226,080 $218,439 $226,080
 Subordinated notes and
 debentures 1,000 --- 1,000 ---
 Stockholders' equity 16,047 16,039 16,047 16,039
 Total funds employed $235,486 $242,119 $235,486 $242,119
 (b) Average assets and finance receivables are a monthly average.
 Other selected data:
 Nonperforming finance
 receivables and
 repossessed
 assets(c) $19,012 $13,569 $19,012 $13,569
 Allowance for credit
 losses $3,120 $2,890 $3,120 $2,890
 Actual writeoffs during
 the period $1,112 $772 $4,449 $1,675
 Number of employees 50 60 50 60
 (c) Includes loans in process of foreclosure, repossessed assets and loans that have contractual installments more than 60 days past due.
 -0- 10/14/93
 /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-EH -- LA002 -- 2427 10/14/93 16:35 EDT
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