Printer Friendly

THE FOOTHILL GROUP INC. REPORTS FIRST QUARTER RESULTS

 LOS ANGELES, April 20 /PRNewswire/ -- The Foothill Group Inc. (NYSE: FGI) today reported net income for the quarter ended March 31, 1993, of $3,419,000, or 20 cents per fully diluted share, compared with net income of $3,364,000, or 26 cents per fully diluted share, for the quarter ended March 31, 1992. 1993 first quarter fully diluted earnings per share are less than the 1992 first quarter, because of the increased level of outstanding common shares in 1993. This increase in shares is primarily because of the secondary offering of 3,450,000 shares completed in May 1992.
 Henry K. Jordan, chief financial officer, said, "The company's 1993 first quarter net income was comparable to that of the 1992 first quarter and exceeded 1992 fourth quarter results. Positive growth trends in interest margins and recurring fees from our asset management activities were evident in the 1993 first quarter results.
 "The company reported $1,126,000 in gains from sales of bank loans and related equities during the 1993 first quarter vs. $2,874,000 in the first quarter of 1992, and $837,000 in the fourth quarter of 1992. Gains on investments, which include profits from managed partnerships, were $351,000 in the 1993 first quarter vs. $1,823,000 in the first quarter of 1992, and $726,000 in the fourth quarter of 1992. Offsetting these lower levels of investment gains and gains on sales of bank loans was a significant increase in interest margins. Interest margin, as a percent of average assets, grew to 6.3 percent for the first quarter of 1993, up from 5.5 percent for the year ended Dec. 31, 1992.
 "We anticipate profits from asset-based lending activities in the upcoming quarters will remain strong. We expect gains from the sale of bank loans and profits from managed partnerships to be reported sporadically during the balance of 1993, as was the case during 1992. The company anticipates reporting increased asset management fees during 1993, as compared to 1992, due to the recently announced final closing of Foothill Partners II L.P. This fund was closed with $432 million in total commitments, including $40 million by its general partners and their affiliates, and brings the company's level of money under management to over $560 million.
 "The company's equity, debt and partnership investments show unrealized gains totaling $10,307,000, as of March 31, 1993, as the estimated market value of these investments totals $24,762,000 vs. carrying value of $14,455,000. In addition, investments of our managed partnerships show substantial unrealized gains which will contribute to future earnings when realized. Unrealized gains in the company's owned portfolio of purchased bank debt totaled approximately $8,831,000 as of March 31, 1993. Book value per common share was $7.96 as of March 31, 1993, up from $7.78 as of Dec. 31, 1992."
 The Foothill Group Inc. is a financial services company engaged in the commercial finance and asset management businesses. It owns or manages assets totaling more than $1.2 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 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 Balance Sheets
 March 31, 1993, and Dec. 31, 1992
 (Dollars in thousands)
 March 31, 1993 Dec. 31, 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $26,565 $53,113
 Finance receivables:
 Accounts receivable loans 224,079 180,441
 Term loans 420,190 411,619
 Loans in process of
 foreclosure, net 21,037 23,952
 Finance receivables 665,306 616,012
 Allowance for credit losses 14,412 13,722
 Finance receivables, net 650,894 602,290
 Repossessed assets, net 7,585 7,770
 Equity, debt and partnership
 investments 14,455 14,864
 Prepaid income taxes 6,712 8,926
 Deferred fund and debt
 issuance costs, net 10,395 7,692
 Property and equipment, at
 cost less accumulated
 depreciation and amortization
 ($2,703 at March 31, 1993;
 $2,542 at Dec. 31, 1992) 2,313 2,187
 Other assets 2,339 2,763
 Total $721,258 $699,605
 Liabilities and Stockholders' Equity
 Liabilities:
 Commercial paper $81,628 $64,915
 Savings accounts 223,661 223,147
 Senior notes payable 222,123 216,560
 Accounts payable and accrued
 liabilities 15,752 16,031
 Subordinated notes and
 debentures 46,160 49,940
 Total liabilities 589,324 570,593
 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, 16,214,684 shares
 issued and outstanding
 (16,203,523 at Dec. 31, 1992) 99,065 99,009
 Retained earnings 29,969 27,103
 Total stockholders' equity 131,934 129,012
 Total $721,258 $699,605
 THE FOOTHILL GROUP INC.
 Consolidated Statements of Income
 Three months ended March 31, 1993 and 1992
 (Dollars in thousands, except per share data)
 (Unaudited)
 1993 1992
 Interest income $18,458 $17,588
 Interest expense 7,384 10,226
 Interest margin 11,074 7,362
 Fees and other income 4,777 5,114
 Total margin 15,851 12,476
 Gain on investments, net 351 1,823
 Provision for credit
 losses 4,276 2,790
 General and
 administrative 6,032 5,807
 Income before provision
 for income taxes 5,894 5,702
 Provision for income
 taxes 2,475 2,338
 Net income $3,419 $3,364
 Per share data (shares
 in thousands):
 Primary:
 Earnings per common and
 common equivalent
 share $0.20 $0.30
 Fully diluted:
 Earnings per common
 share assuming
 full dilution $0.20 $0.26
 Number of shares used in
 per share computations:
 Primary 16,537 10,876
 Fully diluted 17,215 13,540
 THE FOOTHILL GROUP INC.
 Management's Discussion and Analysis
 of Financial Condition and Results of Operations (continued)
 Selected Financial Data for Operating Subsidiaries
 (Dollars in thousands) (Unaudited)
 Foothill Capital Corp.
 Three months ended March 31,
 1993 1992
 Selected
 operating data(a):
 Interest income $12,853 11.8 pct $11,704 11.3 pct
 Interest expense 5,222 4.8 pct 6,176 6.0 pct
 Interest margin 7,631 7.0 pct 5,528 5.3 pct
 Fees and other income 3,013 2.8 pct 4,039 3.9 pct
 Total margin 10,644 9.8 pct 9,567 9.2 pct
 Gain (loss) on
 investments, net --- --- --- ---
 Provision for credit
 losses 3,111 2.9 pct 2,231 2.2 pct
 General and
 administrative
 expenses 3,823 3.5 pct 3,676 3.5 pct
 Income before income
 taxes and
 extraordinary item 3,710 3.4 pct 3,660 3.5 pct
 Provision for income
 taxes 1,558 1.4 pct 1,537 1.5 pct
 Income before
 extraordinary item 2,152 2.0 pct 2,123 2.0 pct
 Extraordinary item --- --- --- ---
 Net income $2,152 2.0 pct $2,123 2.0 pct
 Foothill Thrift and Loan
 Three months ended March 31,
 1993 1992
 Selected
 operating data(a):
 Interest income $5,474 9.1 pct $5,786 10.3 pct
 Interest expense 2,444 4.1 pct 3,013 5.4 pct
 Interest margin 3,030 5.0 pct 2,773 4.9 pct
 Fees and other income 43 0.1 pct 74 0.1 pct
 Total margin 3,073 5.1 pct 2,847 5.0 pct
 Gain (loss) on
 investments, net 173 0.2 pct (30) ---
 Provision for credit
 losses 873 1.4 pct 559 1.0 pct
 General and
 administrative
 expenses 1,675 2.8 pct 1,795 3.2 pct
 Income before income
 taxes and
 extraordinary item 698 1.1 pct 463 0.8 pct
 Provision for income
 taxes 288 0.5 pct 113 0.2 pct
 Income before
 extraordinary item 410 0.6 pct 350 0.6 pct
 Extraordinary item 560 0.9 pct --- ---
 Net income $970 1.5 pct $350 0.6 pct
 (a) Percentages are percent of average assets and have been annualized.
 Foothill Capital Corp. Foothill Thrift and Loan
 Three months ended Three months ended
 March 31, March 31,
 1993 1992 1993 1992
 Selected Balance
 Sheet Data:
 Total assets $453,862 $432,998 $242,493 $228,183
 Average
 assets (b) 435,865 415,538 241,429 225,283
 Finance
 receivables,
 net 442,504 401,917 217,958 209,017
 Average finance
 receivables,
 net (b) 413,716 392,891 220,074 207,483
 Sources of funds
 employed:
 Commercial
 paper $81,628 $71,856 --- ---
 Savings
 accounts --- --- 223,661 210,992
 Senior notes 216,540 224,093 --- ---
 Subordinated
 notes and
 debentures 57,410 53,640 1,000 ---
 Stockholder's
 equity 85,279 75,792 16,800 15,617
 Total funds
 employed $440,857 $425,381 $241,461 $226,609
 (b) Average assets and finance receivables are a monthly average.
 Foothill Capital Corp. Foothill Thrift and Loan
 Three months ended Three months ended
 March 31, March 31,
 1993 1992 1993 1992
 Other Selected
 Data:
 Non-performing
 finance receivables
 and repossessed
 assets (c) $18,481 $20,710 $14,268 $11,263
 Allowance for
 credit losses $11,377 $8,827 $3,035 $2,705
 Actual writeoffs
 during the
 period $2,261 $1,451 $1,033 $454
 Number of
 employees 101 97 52 59
 (c) Includes loans in process of foreclosure, repossessed assets and loans that have contractual installments more than 60 days past due.
 -0- 4/20/93
 /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-JL -- LA011 -- 7836 04/20/93 09:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1993
Words:1629
Previous Article:CAST WEARERS CAN FINALLY 'GET IT WET' THANKS TO GORE(TM) CAST LINER
Next Article:QUADRA LOGIC RECEIVES CANADIAN MARKETING CLEARANCE FOR PHOTODYNAMIC THERAPY (PDT) AS NEW CANCER TREATMENT
Topics:


Related Articles
THE FOOTHILL GROUP INC. REPORTS 1991 YEAR-END FINANCIAL RESULTS
THE FOOTHILL GROUP INC. REPORTS 1992 SECOND QUARTER RESULTS
THE FOOTHILL GROUP INC. REPORTS 1992 THIRD QUARTER RESULTS
THE FOOTHILL GROUP INC. REPORTS 1992 FOURTH-QUARTER AND YEAR-END RESULTS
THE FOOTHILL GROUP INC. ANNOUNCES COMPLETION OF ITS LARGEST FUND
THE FOOTHILL GROUP INC. REPORTS HISTORICALLY HIGH SECOND QUARTER RESULTS AND PLAN TO SPIN-OFF FOOTHILL THRIFT TO SHAREHOLDERS
PACIFIC CREST CAPITAL ANNOUNCES 1993FOURTH QUARTER & FULL-YEAR EARNINGS
THE FOOTHILL GROUP INC. REPORTS 1993 FOURTH QUARTER AND RECORD YEAR-END RESULTS
THE FOOTHILL GROUP INC. REPORTS RECORD FIRST QUARTER RESULTS
THE FOOTHILL GROUP INC. REPORTS STRONG SECOND QUARTER RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters