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FIRST INVESTORS REPORTS RECORD THIRD QUARTER RESULTS

HOUSTON, March 7 /PRNewswire/ -- First Investors Financial Services (Nasdaq-NNM: FIFS) reported record net income of $754,578 or $0.14 per share, for its third fiscal quarter ended January 31, 1996, and $1,686,776 or $0.36 per share, for the first nine months of the 1996 fiscal year. Earnings for these periods reflected increases of 97% and 102%, respectively, over results for the comparable periods of the prior year. The Company attributed its sustained earnings growth during the current year to the addition of record volumes of loans to its portfolio of high yield automobile installment receivables coupled with favorable delinquency experience over the period.

First Investors achieved a 44% increase in its loan portfolio to $86.3 million at January 31, 1996, compared to $59.8 million at the same time last year. Primarily as a result of this increase in its receivables base, the Company recorded net interest income of $2.5 million for the quarter ended January 31, 1996, and $6.2 million for the nine months then ended, representing increases of 65% and 64%, respectively, over the comparable periods of the prior year. Since there was no material change in the rate of loan delinquencies and charge-offs, and the Company's average cost of funds did not increase significantly, the expansion of the loan portfolio over the first nine months of the current year resulted in a generally proportionate increase in net interest income for the period.

Tommy A. Moore, Jr., President and CEO, said that "The third quarter was particularly gratifying because we were able to attain significant portfolio growth without relaxing our loan underwriting standards. We believe that this validates our strategy of expanding prudently while avoiding the credit quality issues that have affected others in our industry." Moore noted that the Company's balance of delinquent receivables as a percentage of the total core portfolio was 2.5% at January 31, 1996, representing no change from the prior year, and that loan charge-offs as a percentage of average receivables outstanding was at 1.1% for the nine months then ended, by comparison to 1.0% for the prior period.

First Investors is a specialized consumer finance company engaged in the purchase and retention of retail installment contract receivables originated by franchised automobile dealers from the sale of new and late-model used vehicles to consumers with substandard credit profiles. The Company is headquartered in Houston and operates through a network of 785 franchised dealers located in 16 states. The common stock of First Investors is traded on the Nasdaq National Market under the symbol of FIFS.
 First Investors Financial Services Group, Inc.


Condensed Consolidated Statements of Operations (Unaudited)
 and Selected Data
 Dollars in thousands, except per share data
 For the For the
 Three Months Ended Nine Months Ended
 January 31, January 31,
 1996 1995 1996 1995


Net Interest Margin after

Provision for
 Credit Losses $2,170 $1,350 $5,719 $3,477
 Other Income 187 88 413 18
 Total Operating Expenses 1,178 839 3,496 2,187


Income before

Provision for Income
 Taxes 1,179 599 2,636 1,308
 Provision for Income Taxes 424 216 949 472
 Net Income $755 $383 $1,687 $836


Net Income

Per Common Share,

before Redemption
 of Preferred Stock $0.14 $0.10 $0.36 $0.21
 January 31, 1996 April 30, 1995
 (Unaudited)
 Cash and Short-Term Investments $7,786 $4,577
 Loans Held for Investments, Net 86,343 63,166
 Total Assets 105,110 74,634


Total Debt from Secured
 Credit Facilities 81,145 64,664
 Total Shareholders' Equity 21,021 1,877
 -0- 3/7/96


/CONTACT: Rosemary O'Connor, 713-977-2600/

(FIFS)

CO: First Investors Finanial Services Group, Inc. ST: Texas IN: FIN SU: ERN

DM-SK -- LATH055 -- 1362 03/07/96 17:47 EST
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Date:Mar 7, 1996
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