WACO, Texas, Nov. 10, 2008 (GLOBE NEWSWIRE) -- FirstCity Financial (Nasdaq:FCFC)
Highlights:
* FirstCity reported 3rd quarter 2008 loss of $1.8 million or ($0.17) per diluted share -- which includes $2.1 million of net provisions. * FirstCity invested $9.3 million in portfolio acquisitions and other investments during the quarter. * FirstCity purchased 439,170 shares of its common stock since June 30, 2008, completing the 1,500,000 share repurchase authorized under its stock repurchase plan.
Components of the quarterly results are detailed below (dollars in thousands except per share data):
Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2008 2007 2008 2007 ------------------- ------------------- (unaudited) (unaudited) Portfolio Asset Acquisition and Resolution $ (510) $ 4,680 $ (7,131) $ 10,863 Corporate overhead * (1,241) (2,026) (4,592) (7,318) ------------------- ------------------- Earnings (loss) from continuing operations (1,751) 2,654 (11,723) 3,545 Loss from discontinued operations, net of taxes (4) -- (145) -- ------------------- ------------------- Net earnings (loss) to common stockholders $ (1,755) $ 2,654 $(11,868) $ 3,545 =================== =================== Diluted earnings (loss) per common share $ (0.17) $ 0.23 $ (1.14) $ 0.31 =================== =================== * Corporate overhead includes $0.2 million and $2.2 million of expenses related to the independent investigation for the three-month and nine-month periods ended September 30, 2007, respectively.
Portfolio Asset Acquisition and Resolution
For the third quarter 2008, the operating contribution from the Portfolio Asset Acquisition business resulted in a $0.5 million loss. The loss was comprised primarily of $12.6 million in revenues, $2.2 million in equity in earnings of investments, and $15.3 million of expenses. The business generated 57% of the revenues (including equity in earnings of investments) from domestic investments, 30% from investments in Latin America, and 13% from investments in Europe.
Earnings for the third quarter were positively impacted by continued revenue streams from Portfolio Assets of $5.2 million; equity in earnings of investments of $2.2 million; servicing fees of $3.8 million; interest income of $1.8 million from loan investments; and $0.8 million from our majority-owned domestic railroad operation. However, third quarter earnings were negatively impacted by net impairment provisions, declining collections, and asset-level expenses attributed primarily to the Company's consolidated and non-consolidated domestic portfolios; and foreign currency exchange losses.
Portfolio Asset Acquisition and Resolution (Continued)
Net Impairment Provisions, Declining Collections and Asset-Level Expenses
FirstCity recorded $2.1 million of net impairment provisions in third quarter 2008 -- comprised of $1.1 million of net provisions recorded to our consolidated portfolios, and $1.0 million as our share of net impairment provisions recorded to portfolio assets held in our partnership interests. The global distribution of the $2.1 million of net impairment provisions recorded by the Company in third quarter 2008 includes $1.2 million in the United States, $0.3 million in Europe, and $0.6 million in Latin America. The impairment provisions in third quarter 2008 were attributed primarily to declines in values of loan collateral and real estate assets in our domestic portfolios, and additional delays in the timing of collections of expected cash flows on domestic loan portfolios. Collections on the Company's consolidated domestic portfolios decreased to $14.5 million in third quarter 2008 from $18.3 million in third quarter 2007, and aggregate collections on portfolios held in our non-consolidated domestic partnerships decreased to $13.2 million in third quarter 2008 from $14.2 million in third quarter 2007. FirstCity also recorded $1.2 million of asset-level costs (i.e. property taxes, insurance, repairs and legal costs) in third quarter 2008 related to consolidated domestic portfolios to protect the Company's security interests in its loan collateral and to support foreclosed properties until they are sold. These asset-level costs are attributed primarily to increased levels of delinquent property tax and insurance payments by the borrowers and increased loan foreclosures over the past twelve months. Management believes that declines in real estate values, delayed collections, and rising asset-level costs are the resulting adverse effects from the subprime mortgage crisis that began in the United States in 2007 (i.e. rising loan defaults and foreclosures on loan collateral because borrowers cannot refinance their loans and/or continue to make payments, and significant declines in real estate values attributed primarily to excess building inventories). The impairment provisions were identified in connection with management's quarterly evaluation of the collectability of the Company's Portfolio Assets. Management's evaluation is inherently subjective as it requires estimates that are susceptible to revision in future periods as more information becomes available. Given current market conditions, we cannot provide assurance that we will not incur additional provisions in the future.
Foreign Currency Transaction Losses
The combined impact of foreign currency transactions from the Company's consolidated and non-consolidated foreign operations resulted in a $0.4 million foreign currency exchange loss in third quarter 2008 (compared to a combined impact of $0.9 million in foreign currency exchange gains in third quarter 2007). The global distribution of the Company's combined foreign currency exchange loss in third quarter 2008 was comprised of $0.5 million of exchange losses from European operations and $0.1 million of exchange gains from Latin American operations.
The following tables detail the impact of net foreign currency gains (losses) on corporate earnings:
Three Months Ended Nine Months Ended September 30, September 30, Illustration of the ------------------- ------------------- Effects of Currency 2008 2007 2008 2007 Fluctuations ------------------- ------------------- (dollars in thousands) (unaudited) (unaudited) -------------------------------------------------------------------- Net earnings (loss) to Common Stockholders $ (1,755) $ 2,654 $(11,868) $ 3,545 Foreign currency gains (losses): Euro (550) 1,231 (512) 785 Mexican Peso 325 (349) 1,019 (190) Argentine Peso (33) (22) (2) (24) Canadian Dollar (8) 23 (20) 243 Chilean Peso (182) 5 (129) 28 ----------------------------------------- Exchange rate at valuation date: Euro 0.69 0.70 Mexican Peso 10.79 10.92 Argentine Peso 3.13 3.15 Canadian Dollar 1.04 0.99 Chilean Peso 550.59 511.20
Portfolio Asset Acquisition and Resolution (Continued)
The Company was involved in acquiring $4.5 million of portfolio investments with a face value of approximately $78.1 million in the third quarter 2008 -- of which FirstCity's investment share was $3.2 million. FirstCity's global distribution of its third quarter 2008 investments includes $2.9 million in the United States and $0.3 million in Latin America. In addition to its portfolio acquisitions in third quarter 2008, FirstCity invested $4.2 million in the form of SBA loan originations and advances; and $1.8 million in equity interest investments. For the nine months ended September 30, 2008, FirstCity was involved in acquiring $61.1 million of portfolio investments with a face value of approximately $716.2 million (of which FirstCity's investment share was $45.1 million), and $39.7 million of additional portfolio investments, debt financing arrangements, SBA loan originations and advances, and equity interest investments. At September 30, 2008, FirstCity's earning assets (Portfolio Assets, equity investments, loans receivable and entity-level earning assets) totaled $301.7 million, and the global distribution of such earning assets (at carrying value) included $194.3 million in the United States; $54.7 million in Europe; and $52.7 million in Latin America.
Portfolio purchases are detailed below (in millions):
Portfolio Purchases ------------------- FirstCity Investment Latin FirstCity in Domestic Europe America Total Investment Other Total ------------------------------------------------------------- ------ 2008 3rd Quarter $ 2.9 $ -- $ 1.6 $ 4.5 $ 3.2 $ 6.0 $ 9.2 2nd Quarter 28.4 -- 8.3 36.7 33.5 32.2 65.7 1st Quarter 6.7 -- 13.2 19.9 8.4 1.5 9.9 ---------------------------------------------- ------ YTD 2008 $ 38.0 $ -- $ 23.1 $ 61.1 $ 45.1 $ 39.7 $ 84.8 ============================================== ====== 2007 4th Quarter $ 5.3 $ 14.7 $ 4.4 $ 24.4 $ 15.7 $ 3.7 $ 19.4 3rd Quarter 17.4 2.3 -- 19.7 16.3 6.3 22.6 2nd Quarter 27.4 2.4 61.6 91.4 25.2 4.2 29.4 1st Quarter 71.6 3.8 3.4 78.8 69.5 7.8 77.3 ---------------------------------------------- ------ YTD 2007 $121.7 $ 23.2 $ 69.4 $214.3 $126.7 $ 22.0 $148.7 ============================================== ====== Total Year 2006 $136.6 $102.2 $ 58.2 $297.0 $144.0 $ 28.2 $172.2 ============================================== ====== Total Year 2005 $ 93.4 $ 37.2 $ 16.0 $146.6 $ 71.4 $ 3.2 $ 74.6 ============================================== ======
Management believes that current market conditions have created tremendous opportunities for FirstCity to expand its business, and that asset acquisition opportunities at attractive margins are available. These opportunities are showing up in FirstCity's current pipeline as the Company is currently evaluating 29 different transactions representing approximately $7.2 billion in face value of assets, of which $6 billion is in the U.S., $347 million in Europe and $817 million in Latin America. This is in contrast to the pipeline at the end of the fourth quarter 2007 with $1.8 billion in face value, of which only $398 million was in the U.S. While FirstCity is very encouraged with the prospects, most of these transactions are subject to competitive bidding and negotiations, and there can be no assurance as to the ultimate execution of any one transaction.
Other Corporate Matters
Liquidity
FirstCity has $350.0 million of credit facility commitments available to finance its portfolio and asset purchases and equity investments in new ventures, and to provide for working capital loans. At September 30, 2008, FirstCity's maximum borrowing capacity under these credit commitments was approximately $145.0 million (subject to borrowing base requirements of the respective credit facilities). These credit facilities are available to FirstCity through their maturity in November 2010, at which time management expects to negotiate for a maturity date extension. At September 30, 2008, FirstCity was in compliance with all material covenants and requirements set forth in the underlying credit agreements for these credit facilities.
Other Corporate Matters (Continued)
Share Repurchase Program
The Company completed the purchase of 1,500,000 shares of its common stock under its stock repurchase plan by purchasing an additional 439,170 shares since June 30, 2008 for $1.7 million (including 102,800 shares purchased in third quarter 2008 for $0.6 million). To date, the Company has purchased 1,500,000 shares of its common stock pursuant to the stock repurchase plan for an aggregate purchase price of $10.9 million from August 2006 to October 2008.
Conference Call
A conference call will be held on Monday, November 10, 2008 at 9:00 a.m. Central Time to discuss third quarter results. A question and answer session will follow the prepared remarks. Details to access the call and webcast are as follows:
Event: FirstCity Financial Corporation Third Quarter 2008 Conference Call Date: Monday, November 10, 2008 Time: 9:00 a.m. Central Time Host: James T. Sartain, FirstCity's President and Chief Executive Officer Web Access: FirstCity's web page - www.fcfc.com/invest.htm or, CCBN's Investor websites - www.streetevents.com and, www.earnings.com Dial In Access: Domestic 866-713-8565 International 617-597-5324 Pass code 59236678 Replay Available on FirstCity's web page (www.fcfc.com/invest.htm)
FirstCity Financial Corporation is a diversified financial services company with operations dedicated to portfolio asset acquisition and resolution with offices in the U.S. and with affiliate organizations in Europe and Latin America. FirstCity common stock is listed on the NASDAQ Global Select Market (Nasdaq:FCFC).
The FirstCity Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4413
Forward-Looking Statements
FirstCity may from time to time make written or oral forward-looking statements, including statements contained in this press release, FirstCity's filings with the SEC, in its reports to stockholders and in other FirstCity communications. These statements relate to the Company's strategic objectives and future performance, which are not historical facts, and may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). Forward-looking statements include, without limitation, statements regarding our future financial position, business strategy, and plans and objectives of management for future operations, as well as any statement that may project, indicate or imply future results, performance or achievements, and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "may," "could," "would," "should," "will likely result," "indication," "outlook," "projects" and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual results and outcomes may differ materially from those expressed in, or implied by, our forward-looking statements.
There are many important factors that could cause the Company's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, changes in general economic conditions in the United States and local economic conditions in the geographic regions and industries in which the Company operates; foreign social and economic conditions; performance of the Company's subsidiaries and affiliates; availability of investments and investment opportunities; the Company's ability to project future cash receipts and develop critical assumptions and estimates underlying asset performance; increased competition in the business in which we operate; the Company's ability to consummate portfolio acquisitions and other investment transactions on acceptable terms; credit risk associated with our borrowers' ability to repay their loans; level of nonperforming assets, charge-offs and impairment provisions; risks associated with foreign operations; currency exchange rate fluctuations; risks associated with start-up of new businesses and entry into new markets; changes in the interest rate environment and market liquidity; fluctuations in residential and commercial real estate values; adverse movements and volatility in equity capital markets; the degree to which the Company is leveraged; the Company's continued need for financing; availability of the Company's credit facilities; ability to obtain additional financing from the Bank of Scotland or any other lender; the impact of certain covenants in loan agreements of the Company and its subsidiaries; risks of declining value of loans, collateral or assets; the ability of the Company to utilize NOLs; liabilities resulting from litigation and regulatory investigations that might arise from continuing and discontinued operations, including costs, expenses, settlements and judgments; changes (legislative and otherwise) in the asset securitization industry; changes in domestic or foreign tax laws, rules and regulations as well as court, Internal Revenue Service or other governmental agencies' interpretations thereof; changes in accounting standards, rules and interpretations; and factors more fully discussed and identified in the Company's Annual Report on Form 10-K, for the year ended December 31, 2007, filed with the SEC on March 17, 2008 (including those discussed under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations"), as well as in other SEC filings of the Company. Many of these factors are beyond the Company's control. In addition, it should be noted that past financial and operational performance of the Company is not necessarily indicative of future financial and operational performance. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q represent beliefs and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, the Company expressly disclaims any obligation or intention to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in future events, conditions or circumstances on which any forward-looking statement is based.
The forward-looking statements in this release speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
FirstCity Financial Corporation Summary of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 -------- -------- -------- -------- Revenues: Servicing fees $ 3,842 $ 2,426 $ 8,748 $ 8,008 Income from Portfolio Assets 5,229 5,743 15,786 16,463 Gain on sale of SBA loans held for sale, net 85 34 227 658 Interest income from SBA loans 368 752 1,210 1,666 Interest income from affiliates 875 147 1,508 413 Interest income from loans receivable - other 541 1,627 1,171 3,516 Revenue from railroad operations 810 302 2,474 302 Other income 939 601 2,558 1,598 -------- -------- -------- -------- Total revenues 12,689 11,632 33,682 32,624 -------- -------- -------- -------- Expenses: Interest and fees on notes payable to banks 4,249 4,747 11,690 13,666 Interest and fees on notes payable to affiliates 322 -- 322 -- Salaries and benefits 5,655 4,446 15,982 12,303 Provision for loan and impairment losses 1,123 (136) 11,243 936 Property protection 1,307 781 4,661 1,950 Occupancy, data processing and other 3,774 1,438 9,025 8,590 -------- -------- -------- -------- Total expenses 16,430 11,276 52,923 37,445 -------- -------- -------- -------- Equity in earnings of investments 2,170 2,157 8,018 8,315 Gain on sale of subsidiaries and equity investments -- 207 -- 207 -------- -------- -------- -------- Earnings (loss) from continuing operations before income taxes and minority interest (1,571) 2,720 (11,223) 3,701 Income taxes 44 (153) (245) (366) Minority interest (224) 87 (255) 210 -------- -------- -------- -------- Earnings (loss) from continuing operations (1,751) 2,654 (11,723) 3,545 Discontinued operations Loss from discontinued operations (4) -- (145) -- -------- -------- -------- -------- Net earnings (loss) $ (1,755) $ 2,654 $(11,868) $ 3,545 ======== ======== ======== ======== Basic earnings (loss) per common share are as follows: Earnings (loss) from continuing operations $ (0.17) $ 0.25 $ (1.13) $ 0.33 Discontinued operations $ -- $ -- $ (0.01) $ -- Net earnings (loss) per common share $ (0.17) $ 0.25 $ (1.14) $ 0.33 Weighted average common shares outstanding 10,232 10,790 10,391 10,789 Diluted earnings (loss) per common share are as follows: Earnings (loss) from continuing operations $ (0.17) $ 0.23 $ (1.13) $ 0.31 Discontinued operations $ -- $ -- $ (0.01) $ -- Net earnings (loss) per common share $ (0.17) $ 0.23 $ (1.14) $ 0.31 Wtd. avg. common shares outstanding 10,232 11,379 10,391 11,402 Selected Unaudited Balance Sheet Data Sept. 30, Dec. 31, 2008 2007 -------- -------- Cash and cash equivalents $ 12,984 $ 23,037 Restricted cash 1,124 509 Earning Assets: Portfolio Assets, net 141,153 122,001 Loans and interest receivable 59,009 26,574 Equity investments 93,287 87,622 Railroad assets 8,264 7,403 Deferred tax asset, net 20,101 20,101 Service fees receivable and other assets 11,008 10,872 -------- -------- Total assets $346,930 $298,119 ======== ======== Notes payable to banks $216,597 $177,329 Note payable to affiliate 8,658 -- Minority interest and other liabilities 29,606 13,967 -------- -------- Total liabilities 254,861 191,296 Total equity 92,069 106,823 -------- -------- Total liabilities and equity $346,930 $298,119 ======== ======== FirstCity Financial Corporation Supplemental Information (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 -------- -------- -------- -------- Portfolio Asset Acquisition and Resolution: Summary Operating Statement Data Revenues $ 12,601 $ 11,492 $ 33,367 $ 32,272 Equity in earnings of investments 2,170 2,157 8,018 8,315 Gain on sale of subsidiaries and equity investments -- 207 -- 207 Expenses (14,158) (9,312) (37,273) (28,995) -------- -------- -------- -------- Operating contribution before provision for loan and impairment losses 613 4,544 4,112 11,799 Provision for loan and impairment losses 1,123 (136) 11,243 936 -------- -------- -------- -------- Operating contribution, net of direct taxes $ (510) $ 4,680 $ (7,131) $ 10,863 ======== ======== ======== ======== Aggregate purchase price of portfolios acquired: Acquisition partnerships Domestic $ 2,912 $ 17,338 $ 38,031 $116,370 Latin America 1,576 -- 23,097 64,959 Europe -- 2,327 -- 8,538 -------- -------- -------- -------- Total $ 4,488 $ 19,665 $ 61,128 $189,867 ======== ======== ======== ======== Purchase FirstCity's Historical Acquisitions - Price Investment Annual: -------- -------- Nine months ended September 30, 2008 $ 61,128 $ 45,124 2007 214,333 126,714 2006 296,990 144,048 2005 146,581 71,405 2004 174,139 59,762 Sept. 30, Dec. 31, 2008 2007 -------- -------- Portfolio acquisition and resolution assets by region: Domestic $194,051 $163,078 Latin America 52,698 33,450 Europe 54,692 46,701 Canada 272 371 -------- -------- Total $301,713 $243,600 ======== ======== Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 -------- -------- -------- -------- Revenues and equity in earnings of investments by region: Domestic $ 8,373 $ 9,869 $ 22,340 $ 26,218 Latin America 4,433 2,303 11,321 8,528 Europe 1,955 1,462 7,690 5,667 Canada 10 15 34 174 -------- -------- -------- -------- Total $ 14,771 $ 13,649 $ 41,385 $ 40,587 ======== ======== ======== ======== Revenues and equity in earnings of investments by source: Equity earnings $ 2,170 $ 2,157 $ 8,018 $ 8,315 Income from Portfolio Assets 5,229 5,743 15,786 16,463 Servicing fees 3,842 2,426 8,748 8,008 Gain on sale of SBA loans held for sale, net 85 34 227 658 Interest income from SBA loans 368 752 1,210 1,666 Interest income from affiliates 875 147 1,508 413 Interest income from loans receivable - other 541 1,627 1,171 3,516 Revenue from railroad operations 810 302 2,474 302 Other 851 461 2,243 1,246 -------- -------- -------- -------- Total $ 14,771 $ 13,649 $ 41,385 $ 40,587 ======== ======== ======== ======== FirstCity Financial Corporation Supplemental Information (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Analysis of Equity Investments FirstCity's average investment: Domestic $ 20,728 $ 36,114 $ 22,202 $ 35,207 Latin America 24,238 21,980 23,610 20,670 Europe 27,757 39,398 29,569 43,587 Europe-Servicing subsidiaries 11,531 5,923 8,887 5,869 Latin America- Servicing subsidiaries 4,798 4,578 4,960 3,315 Domestic-Operating subsidiaries 34 -- 5 -- ---------- ---------- ---------- ---------- Total $ 89,086 $ 107,993 $ 89,233 $ 108,648 ========== ========== ========== ========== FirstCity's share of equity earnings (losses): Domestic $ (448) $ 1,064 $ (294) $ 2,428 Latin America 405 (62) 1,509 815 Europe 1,625 1,082 5,705 4,295 Europe-Servicing subsidiaries (161) 168 649 731 Latin America- Servicing subsidiaries (183) (95) (127) 46 Domestic-Operating subsidiaries 932 -- 576 -- ---------- ---------- ---------- ---------- Total $ 2,170 $ 2,157 $ 8,018 $ 8,315 ========== ========== ========== ========== Selected Other Data: Average investment in consolidated portfolio assets and loans receivable: Domestic $ 167,781 $ 158,039 $ 147,149 $ 151,906 Latin America 19,653 7,335 12,030 8,327 Europe 9,463 4,328 9,293 3,976 Canada 272 351 305 1,522 ---------- ---------- ---------- ---------- Total $ 197,169 $ 170,053 $ 168,777 $ 165,731 ========== ========== ========== ========== Income from consolidated portfolio assets and loans receivable: Domestic $ 5,528 $ 7,723 $ 17,002 $ 20,766 Latin America 1,123 465 1,826 1,511 Europe 437 100 1,040 265 Canada 10 15 34 174 ---------- ---------- ---------- ---------- Total $ 7,098 $ 8,303 $ 19,902 $ 22,716 ========== ========== ========== ========== Servicing fee revenues: Domestic partnerships: Servicing fee revenue $ 1,157 $ 435 $ 1,865 $ 2,114 Average servicing fee % 8.8% 3.1% 6.1% 3.7% Latin American partnerships: Servicing fee revenue $ 2,615 $ 1,874 $ 6,744 $ 5,741 Average servicing fee % 25.7% 23.0% 22.1% 24.9% Total Service Fees- Portfolio Assets: Servicing fee revenue $ 3,772 $ 2,309 $ 8,609 $ 7,855 Average servicing fee % 16.2% 10.3% 14.1% 9.9% Service Fees-SBA loans: $ 70 $ 117 $ 139 $ 153 Total Service Fees $ 3,842 $ 2,426 $ 8,748 $ 8,008 Collections: Domestic partnerships $ 13,161 $ 14,190 $ 30,736 $ 56,674 Latin American partnerships 16,384 14,827 56,900 42,068 European partnerships 17,028 22,254 50,149 70,093 ---------- ---------- ---------- ---------- Subtotal 46,573 51,271 137,785 168,835 Consolidated portfolio assets 15,608 19,733 46,523 60,817 ---------- ---------- ---------- ---------- Total $ 62,181 $ 71,004 $ 184,308 $ 229,652 ========== ========== ========== ========== Servicing portfolio (face value) at period end: Domestic $ 593,898 $ 601,119 Latin America 1,582,654 1,129,681 Europe 1,362,008 1,065,638 ---------- ---------- Total $3,538,560 $2,796,438 ========== ========== Number of personnel at period end: Domestic 96 84 Latin America 132 116 Corporate 32 35 ---------- ---------- Total personnel 260 235 ========== ========== FirstCity Financial Corporation Schedule of Unrealized Gross Profit September 30, 2008 (Unaudited) Basis in Portfolio Assets (1) ---------------------------------- ($ in 000's) 12/31/2006 12/31/2007 9/30/2008 -------------------------------------------------------------------- Domestic $153,118 151,802 145,393 Europe 46,204 40,340 35,489 Latin America 22,378 26,844 40,679 ---------------------------------- Total (4) $221,700 218,987 221,561 ================================== Estimated Remaining Collections (2) ----------------------------------- 12/31/2006 12/31/2007 9/30/2008 ----------------------------------- Domestic $215,987 195,845 202,769 Europe 61,081 52,617 46,333 Latin America 50,866 68,900 90,174 ---------------------------------- Total $327,934 317,363 339,276 ================================== Unrealized Gross Profit (3) ----------------------------------- 12/31/2006 12/31/2007 9/30/2008 ----------------------------------- Domestic $ 62,869 44,043 57,376 Europe 14,877 12,278 10,845 Latin America 28,488 42,056 49,495 ----------------------------------- Total $106,234 98,376 117,716 =================================== Unrealized Gross Profit % ----------------------------------- 12/31/2006 12/31/2007 9/30/2008 ----------------------------------- Domestic 29.1% 22.5% 28.3% Europe 24.4% 23.3% 23.4% Latin America 56.0% 61.0% 54.9% Total 32.4% 31.0% 34.7%
A graphic accompanying this release is available at http://media.primezone.com/cache/9623/file/6242.pdf
12/31/2006 12/31/2007 9/30/2008 ----------------------------------- FirstCity's consolidated Portfolio Assets (as reported in "Portfolio Assets" on the financial statement of the respective Form 10-K or 10-Q) $108,696 122,001 147,840 Minority ownership interests in FirstCity's consolidated Portfolio Assets (component of "Minority interest" liability on the financial statement of the respective Form 10-K or 10-Q) (2,005) (4,474) (11,914) FirstCity's interests in Portfolio Assets held by Acquisition Partnerships (a component of "Assets" as reported in the "Condensed Combined Balance Sheets" tabular disclosure under the "Equity Investments" footnote of the respective Form 10-K or 10-Q) 115,009 101,460 85,635 ----------------------------------- FirstCity's basis in consolidated and non-consolidated Portfolio Assets $221,700 218,987 221,561 ===================================