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THE FOOTHILL GROUP INC. REPORTS 1992 FOURTH-QUARTER AND YEAR-END RESULTS

 LOS ANGELES, Feb. 1 /PRNewswire/ -- The Foothill Group Inc. (NYSE: FGI) today reported a 94 percent increase in net income for the year ended Dec. 31, 1992, to a record $12,145,000, or 82 cents per fully diluted share, compared with net income of $6,271,000, or 57 cents per fully diluted share, for the year ended Dec. 31, 1991. Foothill reported net income for the fourth quarter ended Dec. 31, 1992, of $2,641,000, or 16 cents per fully diluted share, compared with net income of $2,113,000, or 18 cents per fully diluted share, for the 1991 fourth quarter.
 Henry K. Jordan, chief financial officer, said, "The company's fourth quarter net income was comparable to that of the 1992 third quarter and slightly in excess of 1991 fourth-quarter results. The company reported $837,000 in gains from sales of bank loans during the 1992 fourth quarter, vs. $1,846,000 in the fourth quarter of 1991, and $1,126,000 in the third quarter of 1992. Gains on investments, which include profits from managed partnerships, were $726,000 in the 1992 fourth quarter, vs. $554,000 in the fourth quarter of 1991, and a loss of $217,000 in the third quarter of 1992. Foothill Thrift was profitable in 1992, but reported a pretax loss of $254,000 for the 1992 fourth quarter, as compared to pretax profit of $128,000 in the fourth quarter of 1991, and $97,000 in the third quarter of 1992. During the 1992 fourth quarter, Foothill Thrift restructured its work force and reduced staffing by 20 percent. This restructuring caused Foothill Thrift to record severance and other charges during the 1992 fourth quarter of over $300,000.
 "1992 fourth-quarter fully diluted earnings per share show a slight decrease over the 1991 fourth quarter due to the increased level of outstanding common shares in 1992. This increase in shares is primarily due to the secondary offering of 3,450,000 shares completed in May 1992.
 "We anticipate profits from asset-based lending activities in 1993 will remain strong. We expect gains from the sale of bank loans and profits from managed partnerships to be reported sporadically during 1993, as was the case during 1992. We expect 1993 results of Foothill Thrift will improve as a result of the fourth quarter restructuring. The company anticipates reporting annual 1993 earnings in excess of those reported for 1992, but not on a consistent quarterly basis. The company's equity, debt and partnership investments show unrealized gains totaling $10,830,000 as of Dec. 31, 1992, as the estimated market value of these investments totals $25,694,000 vs. carrying value of $14,864,000. In addition, investments of our managed partnerships show substantial unrealized gains which will contribute to future earnings when realized.
 "The parent company has completed its strategic deleveraging plan. On Sept. 30, 1992, the company announced the redemption of its 12.5 percent subordinated debentures due in 1998. There were $4,948,000 of these debentures outstanding which were redeemed for cash on Oct. 30, 1992. The parent company has eliminated all debt obligations which totaled $45 million as of Dec. 31, 1991. Book value per common share was $7.78 as of Dec. 31, 1992, up from $6.98 as of Dec. 31, 1991. Total stockholders' equity increased 73 percent in 1992 to a record $129 million."
 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 Summary of Income
 Fourth Quarter and Year-End Results
 (Dollars and shares in thousands, except per share data)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Interest income $16,881 $18,290 $72,783 $76,495
 Interest expense 7,537 11,013 35,471 48,915
 Interest margin 9,344 7,277 37,312 27,580
 Fees and other income 3,149 4,125 17,083 13,237
 Total margin 12,493 11,402 54,395 40,817
 Gain (loss) on
 investments, net 726 554 3,303 (219)
 Provision for credit
 losses 2,035 2,507 11,792 8,185
 General and
 administrative
 expenses 6,636 5,869 24,386 21,785
 Income before provision
 for income taxes 4,548 3,580 21,520 10,628
 Provision for income
 taxes 1,864 1,539 8,823 4,570
 Income before
 extraordinary items 2,684 2,041 12,697 6,058
 Extraordinary items (43) 72 (552) 213
 Net income $2,641 $2,113 $12,145 $6,271
 Per share data
 Primary:
 Income before
 extraordinary items $0.16 $0.19 $0.91 $0.59
 Extraordinary items --- 0.01 (0.04) 0.02
 Total $0.16 $0.20 $0.87 $0.61
 Fully diluted:
 Income before
 extraordinary items $0.16 $0.17 $0.85 $0.55
 Extraordinary items --- 0.01 (0.03) 0.02
 Total $0.16 $0.18 $0.82 $0.57
 Number of shares used in
 per share computations:
 Primary 16,389 10,160 13,730 10,106
 Fully diluted 17,063 12,815 15,650 12,400
 Other Operating Data(a)
 As a percentage of
 average assets:
 Total margin 7.23 pct 7.10 pct 7.95 pct 6.25 pct
 Provision for credit
 losses 1.18 pct 1.56 pct 1.72 pct 1.25 pct
 General and
 administrative 3.84 pct 3.65 pct 3.56 pct 3.34 pct
 Net income 1.53 pct 1.32 pct 1.77 pct 0.96 pct
 Return on average
 equity 8.33 pct 11.60 pct 11.70 pct 9.12 pct
 Average assets $691,490 $642,352 $684,334 $653,188
 Average stockholders'
 equity $126,879 $72,887 $103,823 $68,765
 (a) Percentages are annualized where appropriate.
 THE FOOTHILL GROUP INC.
 Condensed Balance Sheets
 (Dollars in thousands)
 Dec. 31,
 1992 1991
 Assets:
 Cash and cash equivalents $53,113 $15,955
 Finance receivables, net 602,290 585,765
 Repossessed assets, net 7,770 9,726
 Equity, debt and partnership investments 14,864 14,913
 Prepaid income taxes 8,926 8,252
 Deferred fund and debt issuance costs, net 7,692 5,029
 Other assets 4,950 8,054
 Total assets $699,605 $647,694
 Total Liabilities and Stockholders' Equity:
 Liabilities:
 Commercial paper $64,915 $10,886
 Savings accounts 223,147 205,649
 Senior notes payable 216,560 283,795
 Subordinated notes and debentures 49,940 64,142
 Other liabilities 16,031 8,717
 Total liabilities 570,593 573,189
 Stockholders' Equity:
 Convertible preferred stock 2,900 2,900
 Common stockholders' equity 126,112 71,605
 Total stockholders' equity 129,012 74,505
 Total liabilities and stockholders'
 equity $699,605 $647,694
 Book value per common share $7.78 $6.98
 THE FOOTHILL GROUP INC.
 Selected Financial Data for Operating Subsidiaries
 Two years ended Dec. 31, 1992
 (Dollars in thousands)
 Foothill Capital Corp.
 Year ended Dec. 31,
 1992 1991
 Selected Operating Data (a):
 Interest income $49,543 11.5 pct. $51,760 12.4 pct.
 Interest expense 23,113 5.3 pct. 29,805 7.2 pct.
 Interest margin 26,430 6.2 pct. 21,955 5.2 pct.
 Fees and other income 13,485 3.1 pct. 8,249 2.0 pct.
 Total margin 39,915 9.3 pct. 30,204 7.2 pct.
 Loss on investments, net --- --- --- ---
 Provision for credit losses 8,641 2.0 pct. 6,377 1.5 pct.
 General and administrative
 expenses 14,967 3.5 pct. 13,334 3.2 pct.
 Income before income taxes 16,307 3.8 pct. 10,493 2.5 pct.
 Provision for income taxes 6,849 1.6 pct. 4,302 1.0 pct.
 Net income $9,458 2.2 pct. $6,191 1.5 pct.
 Foothill Thrift and Loan
 Year ended Dec. 31,
 1992 1991
 Selected Operating Data (a):
 Interest income $22,836 9.7 pct. $23,506 10.8 pct.
 Interest expense 11,202 4.8 pct. 14,404 6.6 pct.
 Interest margin 11,634 4.9 pct. 9,102 4.2 pct.
 Fees and other income 295 0.1 pct. 1,561 0.7 pct.
 Total margin 11,929 5.0 pct. 10,663 4.9 pct.
 Loss on investments, net 71 --- 1,241 0.6 pct.
 Provision for credit losses 3,121 1.3 pct. 888 0.4 pct.
 General and administrative
 expenses 7,971 3.4 pct. 8,057 3.7 pct.
 Income before income taxes 766 0.3 pct. 477 0.2 pct.
 Provision for income taxes 203 0.1 pct. 103 ---
 Net income $563 0.2 pct. $374 0.2 pct.
 (a) Percentages are percent of average assets.
 Foothill Capital Corp. Foothill Thrift and Loan
 Year ended Dec. 31, Year ended Dec. 31,
 1992 1991 1992 1991
 Selected Balance
 Sheet Data:
 Total assets $437,867 $408,713 $241,052 $222,084
 Average assets
 (b) 431,120 417,332 235,393 217,696
 Finance
 receivables 393,530 389,521 221,117 206,097
 Average finance
 receivables (b) 412,203 401,858 215,162 197,793
 Sources of funds
 employed:
 Commercial
 paper $64,915 $10,886 --- ---
 Savings accounts --- --- 223,147 205,649
 Senior notes 216,560 260,113 --- ---
 Subordinated
 notes and
 debentures 62,190 58,420 1,000 ---
 Stockholders'
 equity 83,127 73,669 15,830 15,267
 Total funds
 employed $426,792 $403,088 $239,977 $220,916
 (b) Average assets and finance receivables are a monthly average.
 Other Selected Data:
 Nonperforming
 finance receivables
 and repossessed
 assets (c) $22,057 $20,890 $12,848 $5,739
 Allowance for
 credit losses $10,527 $8,047 $3,195 $2,600
 Actual writeoffs
 during the year $6,161 $6,805 $2,526 $493
 (c) Includes loans in process of foreclosure, repossessed assets and loans that have contractual installments more than 60 days past due.
 -0- 2/1/93
 /CONTACT: Henry K. Jordan, VP & CFO of The Foothill Group, 310-996-7000/
 (FGI)


CO: The Foothill Group ST: California IN: FIN SU: ERN

BP-KJ -- LA035 -- 1527 02/01/93 16:46 EST
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