Exhibit 99.1
NEWS RELEASE
Contact: |
| Suzy W. Taylor | |
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| 866-652-1810 | |
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FirstCity Financial Reports First Quarter 2008 Results and Activities
Waco, Texas May 12, 2008
Highlights:
· FirstCity reported 1st quarter 2008 loss of $3.6 million or ($.34) per diluted share – which includes $4.1 million of net provisions.
· FirstCity invested $9.9 million in portfolio acquisitions and other investments during the quarter.
· FirstCity purchased 385,830 shares of its common stock in 2008 under its stock repurchase plan.
Components of the quarterly results are detailed below (dollars in thousands except per share data):
|
| Three Months Ended |
| ||||
|
| March 31, |
| ||||
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| 2008 |
| 2007 |
| ||
|
| (unaudited) |
| ||||
Portfolio Asset Acquisition and Resolution |
| $ | (1,800 | ) | $ | 1,870 |
|
Corporate overhead * |
| (1,693 | ) | (2,785 | ) | ||
Loss from continuing operations |
| (3,493 | ) | (915 | ) | ||
Loss from discontinued operations, net of taxes |
| (91 | ) | — |
| ||
Loss to common stockholders |
| $ | (3,584 | ) | $ | (915 | ) |
Diluted loss per common share |
| $ | (0.34 | ) | $ | (0.08 | ) |
* Corporate overhead includes $1.2 million of expenses related to an independent audit committee investigation in first quarter 2007.
Portfolio Asset Acquisition and Resolution
For the first quarter 2008, the operating contribution from the Portfolio Asset Acquisition business resulted in a $1.8 million loss. The loss was comprised primarily of $9.3 million in revenues, $2.8 million in equity in earnings of investments, and $13.9 million of expenses. The business generated 55% of the revenues (including equity in earnings of investments) from domestic investments, 25% from investments in Latin America, 20% from investments in Europe and less than 1% from investments in Canada.
The revenues for the first quarter were positively impacted by continued income streams from Portfolio Assets of $4.9 million, equity in earnings of investments of $2.8 million, servicing fees of $2.2 million, and interest income of $0.9 million from loans receivable.
First quarter earnings were negatively impacted by $4.1 million of net provisions – comprised of $3.0 million of provisions recorded to our wholly-owned domestic and Latin American portfolios, and $1.1 million recorded to portfolio assets held in our partnerships ($0.2 million of net provisions in domestic partnerships, $0.3 million of net provisions in European partnerships and $0.6 million in Latin American partnerships). The first quarter provisions 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 loan portfolios in Latin America and Europe. Management regularly evaluates the collectibility of the Company’s portfolio assets and may decrease those values in future periods as the cash flows expected from those assets change.
(more)
The following tables detail the impact of net foreign currency gains (losses) on corporate earnings:
|
| Three Months Ended |
| ||||
|
| March 31, |
| ||||
Illustration of the Effects of Currency |
| 2008 |
| 2007 |
| ||
Fluctuations (dollars in thousands) |
| (unaudited) |
| ||||
Net earnings (loss) to Common Stockholders |
| $ | (3,584 | ) | $ | (915 | ) |
Foreign currency gains (losses): |
|
|
|
|
| ||
Euro |
| 225 |
| (242 | ) | ||
Mexican Peso |
| 246 |
| (23 | ) | ||
Argentine Peso |
| (3 | ) | (11 | ) | ||
Canadian Dollar |
| (15 | ) | 21 |
| ||
Chilean Peso |
| 104 |
| 2 |
| ||
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|
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Exchange rate at valuation date: |
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Euro |
| 0.63 |
| 0.75 |
| ||
Mexican Peso |
| 10.70 |
| 11.08 |
| ||
Argentine Peso |
| 3.16 |
| 3.10 |
| ||
Canadian Dollar |
| 1.02 |
| 1.16 |
| ||
Chilean Peso |
| 440.00 |
| 539.28 |
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The Company invested $9.9 million in portfolio acquisitions and other investments during the quarter. Earning assets totaled $236.2 million at quarter end. The global distribution of FirstCity’s earning assets (at carrying value) included $151.8 million in the United States, $48.3 million in Europe, and $36.1 million in Latin America.
Portfolio purchases are detailed below (in millions):
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| Portfolio Purchases |
| FirstCity |
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| Domestic |
| Europe |
| Latin |
| Total |
| FirstCity |
| Investment |
| Total |
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| 2008 |
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1st Quarter |
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|
| $ | 6.7 |
| $ | — |
| $ | 13.2 |
| $ | 19.9 |
| $ | 8.4 |
| $ | 1.5 |
| $ | 9.9 |
|
YTD 2008 |
|
|
| $ | 6.7 |
| $ | — |
| $ | 13.2 |
| $ | 19.9 |
| $ | 8.4 |
| $ | 1.5 |
| $ | 9.9 |
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|
| 2007 |
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|
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4th Quarter |
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|
| $ | 5.3 |
| $ | 14.7 |
| $ | 4.4 |
| $ | 24.4 |
| $ | 15.7 |
| $ | 3.7 |
| $ | 19.4 |
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3rd Quarter |
|
|
| 17.4 |
| 2.3 |
| — |
| 19.7 |
| 16.3 |
| 6.3 |
| 22.6 |
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2nd Quarter |
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|
| 27.4 |
| 2.4 |
| 61.6 |
| 91.4 |
| 25.2 |
| 4.2 |
| 29.4 |
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1st Quarter |
|
|
| 71.6 |
| 3.8 |
| 3.4 |
| 78.8 |
| 69.5 |
| 7.8 |
| 77.3 |
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YTD 2007 |
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|
| $ | 121.7 |
| $ | 23.2 |
| $ | 69.4 |
| $ | 214.3 |
| $ | 126.7 |
| $ | 22.0 |
| $ | 148.7 |
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|
| 2006 |
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4th Quarter |
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| $ | 34.6 |
| $ | 101.2 |
| $ | 2.1 |
| $ | 137.9 |
| $ | 70.2 |
| $ | 16.8 |
| $ | 87.0 |
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3rd Quarter |
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|
| 35.4 |
| — |
| 56.1 |
| 91.5 |
| 31.5 |
| 3.7 |
| 35.2 |
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2nd Quarter |
|
|
| 24.2 |
| 1.0 |
| — |
| 25.2 |
| 19.0 |
| 7.0 |
| 26.0 |
| |||||||
1st Quarter |
|
|
| 42.4 |
| — |
| — |
| 42.4 |
| 23.3 |
| 0.7 |
| 24.0 |
| |||||||
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 |
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Total Year 2004 |
|
|
| $ | 91.2 |
| $ | 9.8 |
| $ | 73.1 |
| $ | 174.1 |
| $ | 59.8 |
| $ | — |
| $ | 59.8 |
|
2
As a result of the recent deterioration of credit quality experienced by many banks, management believes that acquisition opportunities at attractive margins are available. FirstCity was involved in acquiring $19.9 million of portfolio assets with a face value of approximately $546.1 million in first quarter 2008 – of which FirstCity’s investment share was $8.4 million. The Company is currently evaluating 28 different transactions representing over $7.6 billion in face value of assets, although there can be no assurance that FirstCity will be able to consummate any of these transactions on acceptable terms.
In the first quarter of 2008, the Company discontinued using the income recognition model for previously-purchased non-performing loan portfolios in Mexico. Management determined that external factors outside their control preclude them from developing reasonable expectations of the timing of cash flows to be collected on these loan portfolios. The Company now accounts for its non-performing loan portfolios in Mexico under the cost-recovery model.
Other Corporate Matters
Liquidity
FirstCity’s ability to obtain financing for investment opportunities is strong and remains unhindered by the negative conditions witnessed recently in the financial services sector. 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. In addition, FirstCity has a $40.0 million credit facility commitment to finance and acquire SBA loans. At March 31, 2008, FirstCity’s maximum borrowing capacity under these credit commitments was $156.0 million, subject to borrowing base requirements of the respective credit facilities.
Share Repurchase Program
FirstCity has a stock repurchase program providing for the repurchase of up to 1,500,000 shares of its common stock. To date, the Company has purchased 966,330 shares at an average cost of $9.12 per share (including 385,830 shares purchased in 2008 at an average cost of $7.34 per share). Share repurchases continue and signify management’s assessment that the shares are undervalued in the market and represent a good investment alternative to enhance long term shareholder value.
Conference Call
A conference call will be held on Monday, May 12, 2008 at 9:00 a.m. Central Time to discuss first 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 First Quarter 2008 Conference Call | |||||
Date: |
| Monday, May 12, 2008 | |||||
Time: |
| 9:00 a.m. Central Time | |||||
Host: |
| James T. Sartain, FirstCity’s President and Chief Executive Officer | |||||
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Web Access: |
| FirstCity’s web page - |
| www.fcfc.com/invest.htm or, | |||
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| CCBN’s Investor websites - |
| www.streetevents.com and, | |||
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| www.fulldisclosure.com | |||
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Dial In Access: |
| Domestic |
| 888-396-2369 | |||
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| International |
| 617-847-8710 | |||
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| Pass code |
| 17543120 | |||
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 under the symbol “FCFC.”
3
Forward-Looking Statements
Certain statements in this press release, which are not historical in fact, including, but not limited to, statements relating to future performance, may be deemed to be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” “indication” and similar expressions. Such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. There are many important factors that could cause the Company’s actual results to differ materially.
These factors include, but are not limited to, the performance of the Company’s subsidiaries and affiliates; availability of portfolio assets and other investment opportunities; the Company’s ability to consummate portfolio acquisitions and other investment transactions on acceptable terms; assumptions underlying portfolio asset performance; risks associated with start up of new businesses and entry into new foreign markets, risks associated with foreign operations; currency exchange rate fluctuations; interest rate risk; credit risk; risks of declining value of loans, collateral or assets; 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; the ability of the Company to utilize net operating loss carry forwards; general economic, business and market conditions; foreign social and economic conditions; changes (legislative and otherwise) in the asset securitization industry; regulatory and accounting changes; fluctuation in residential and commercial real estate values; capital markets conditions, including the markets for asset-backed securities; uncertainties of any litigation arising from discontinued operations; factors more fully discussed and identified under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” and risk factors and other risks 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, as well as in the Company’s other filings with the SEC. 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 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.
4
FirstCity Financial Corporation
Summary of Operations
(In thousands, except per share data)
(Unaudited)
|
| Three Months Ended |
| ||||
|
| 2008 |
| 2007 |
| ||
Revenues: |
|
|
|
|
| ||
Servicing fees |
| $ | 2,200 |
| $ | 2,605 |
|
Income from Portfolio Assets |
| 4,935 |
| 5,035 |
| ||
Gain on sale of SBA loans held for sale, net |
| 9 |
| 281 |
| ||
Interest income from SBA loans |
| 476 |
| 308 |
| ||
Interest income from affiliates |
| 150 |
| 126 |
| ||
Interest income from loans receivable - other |
| 275 |
| 907 |
| ||
Other income |
| 1,459 |
| 459 |
| ||
Total revenues |
| 9,504 |
| 9,721 |
| ||
Expenses: |
|
|
|
|
| ||
Interest and fees on notes payable |
| 3,683 |
| 4,251 |
| ||
Salaries and benefits |
| 5,030 |
| 3,993 |
| ||
Provision for loan and impairment losses |
| 3,030 |
| 326 |
| ||
Occupancy, data processing, property protection and other |
| 3,925 |
| 3,933 |
| ||
Total expenses |
| 15,668 |
| 12,503 |
| ||
Equity in earnings of investments |
| 2,840 |
| 1,826 |
| ||
Loss from continuing operations before income |
|
|
|
|
| ||
taxes and minority interest |
| (3,324 | ) | (956 | ) | ||
Income taxes |
| (191 | ) | (67 | ) | ||
Minority interest |
| 22 |
| 108 |
| ||
Loss from continuing operations |
| (3,493 | ) | (915 | ) | ||
Discontinued operations |
|
|
|
|
| ||
Loss from operations of discontinued components |
| (91 | ) | — |
| ||
Net loss |
| $ | (3,584 | ) | $ | (915 | ) |
|
|
|
|
|
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Basic and diluted loss per common share are as follows: |
|
|
|
|
| ||
Loss from continuing operations |
| $ | (0.33 | ) | $ | (0.08 | ) |
Discontinued operations |
| $ | (0.01 | ) | $ | — |
|
Net loss per common share |
| $ | (0.34 | ) | $ | (0.08 | ) |
Weighted average common shares outstanding |
| 10,584 |
| 10,788 |
|
Selected Unaudited Balance Sheet Data
|
| March 31, |
| December 31, |
| ||
|
| 2008 |
| 2007 |
| ||
Cash |
| $ | 14,395 |
| $ | 23,546 |
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Earning Assets: |
|
|
|
|
| ||
Portfolio Assets, net |
| 112,593 |
| 122,001 |
| ||
Loans and interest receivable |
| 26,364 |
| 26,574 |
| ||
Equity investments |
| 89,643 |
| 87,622 |
| ||
Railroad assets |
| 7,575 |
| 7,403 |
| ||
Deferred tax asset, net |
| 20,101 |
| 20,101 |
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Service fees receivable and other assets |
| 9,760 |
| 10,872 |
| ||
Total assets |
| $ | 280,431 |
| $ | 298,119 |
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Notes payable |
| $ | 167,579 |
| $ | 177,329 |
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Minority interest and other liabilities |
| 12,000 |
| 13,967 |
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Total liabilities |
| 179,579 |
| 191,296 |
| ||
Total equity |
| 100,852 |
| 106,823 |
| ||
Total liabilities and equity |
| $ | 280,431 |
| $ | 298,119 |
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5
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
|
| Three Months Ended |
| ||||
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| 2008 |
| 2007 |
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Portfolio Asset Acquisition and Resolution: |
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Summary Operating Statement Data |
|
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|
|
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Revenues |
| $ | 9,321 |
| $ | 9,592 |
|
Equity in earnings of investments |
| 2,840 |
| 1,826 |
| ||
Expenses |
| (10,931 | ) | (9,222 | ) | ||
Operating contribution before provision for |
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|
|
|
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loan and impairment losses |
| 1,230 |
| 2,196 |
| ||
Provision for loan and impairment losses |
| 3,030 |
| 326 |
| ||
Operating contribution, net of direct taxes |
| $ | (1,800 | ) | $ | 1,870 |
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Aggregate purchase price of portfolios acquired: |
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Acquisition partnerships |
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Domestic |
| $ | 6,693 |
| $ | 71,568 |
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Latin America |
| 13,207 |
| 3,401 |
| ||
Europe |
| — |
| 3,802 |
| ||
Total |
| $ | 19,900 |
| $ | 78,771 |
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| Purchase |
| FirstCity’s |
| ||
|
| Price |
| Investment |
| ||
Historical Acquisitions - Annual: |
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|
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Three months ended March 31, 2008 |
| $ | 19,900 |
| $ | 8,435 |
|
2007 |
| 214,333 |
| 126,714 |
| ||
2006 |
| 296,990 |
| 144,048 |
| ||
2005 |
| 146,581 |
| 71,405 |
| ||
2004 |
| 174,139 |
| 59,762 |
| ||
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| March 31, |
| December 31, |
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|
| 2008 |
| 2007 |
| ||
Portfolio acquisition and resolution assets by region: |
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|
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Domestic |
| $ | 151,443 |
| $ | 163,078 |
|
Latin America |
| 36,054 |
| 33,450 |
| ||
Europe |
| 48,341 |
| 46,701 |
| ||
Canada |
| 337 |
| 371 |
| ||
Total |
| $ | 236,175 |
| $ | 243,600 |
|
|
| Three Months Ended |
| ||||
|
| 2008 |
| 2007 |
| ||
Revenues and equity in earnings of investments by region: |
|
|
|
|
| ||
Domestic |
| $ | 6,718 |
| $ | 6,967 |
|
Latin America |
| 3,035 |
| 2,532 |
| ||
Europe |
| 2,395 |
| 1,830 |
| ||
Canada |
| 13 |
| 89 |
| ||
Total |
| $ | 12,161 |
| $ | 11,418 |
|
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|
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Revenues and equity in earnings of investments by source: |
|
|
|
|
| ||
Equity earnings |
| $ | 2,840 |
| $ | 1,826 |
|
Income from Portfolio Assets |
| 4,935 |
| 5,035 |
| ||
Servicing fees |
| 2,200 |
| 2,605 |
| ||
Gain on sale of SBA loans held for sale, net |
| 9 |
| 281 |
| ||
Interest income from SBA loans |
| 476 |
| 308 |
| ||
Interest income from affiliates |
| 150 |
| 126 |
| ||
Interest income from loans receivable - other |
| 275 |
| 907 |
| ||
Other |
| 1,276 |
| 330 |
| ||
Total |
| $ | 12,161 |
| $ | 11,418 |
|
6
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| Three Months Ended |
| ||||
|
| 2008 |
| 2007 |
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Analysis of Equity Investments: |
|
|
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FirstCity’s average investment: |
|
|
|
|
| ||
Domestic |
| $ | 23,696 |
| $ | 35,877 |
|
Latin America |
| 22,890 |
| 18,659 |
| ||
Europe |
| 30,526 |
| 47,436 |
| ||
Europe-Servicing subsidiaries |
| 7,153 |
| 6,125 |
| ||
Latin America-Servicing subsidiaries |
| 4,925 |
| 1,474 |
| ||
Total |
| $ | 89,190 |
| $ | 109,571 |
|
|
|
|
|
|
| ||
FirstCity share of equity earnings (losses): |
|
|
|
|
| ||
Domestic |
| $ | 266 |
| $ | 251 |
|
Latin America |
| 369 |
| (10 | ) | ||
Europe |
| 1,686 |
| 1,540 |
| ||
Europe-Servicing subsidiaries |
| 316 |
| 76 |
| ||
Latin America-Servicing subsidiaries |
| 203 |
| (31 | ) | ||
Total |
| $ | 2,840 |
| $ | 1,826 |
|
|
|
|
|
|
| ||
Selected Other Data: |
|
|
|
|
| ||
Average investment in wholly owned portfolio assets and loans receivable: |
|
|
|
|
| ||
Domestic |
| $ | 126,377 |
| $ | 142,747 |
|
Latin America |
| 6,998 |
| 9,349 |
| ||
Europe |
| 9,107 |
| 3,610 |
| ||
Canada |
| 350 |
| 2,287 |
| ||
Total |
| $ | 142,832 |
| $ | 157,993 |
|
|
|
|
|
|
| ||
Income from wholly owned portfolio assets and loans receivable: |
|
|
|
|
| ||
Domestic |
| $ | 5,235 |
| $ | 5,967 |
|
Latin America |
| 321 |
| 527 |
| ||
Europe |
| 276 |
| 74 |
| ||
Canada |
| 13 |
| 89 |
| ||
Total |
| $ | 5,845 |
| $ | 6,657 |
|
|
|
|
|
|
| ||
Servicing fee revenues: |
|
|
|
|
| ||
Domestic partnerships: |
|
|
|
|
| ||
Servicing fee revenue |
| $ | 362 |
| $ | 629 |
|
Average servicing fee % |
| 3.2 | % | 3.7 | % | ||
Latin American partnerships: |
|
|
|
|
| ||
Servicing fee revenue |
| $ | 1,848 |
| $ | 1,958 |
|
Average servicing fee % |
| 15.5 | % | 15.9 | % | ||
Total Service Fees-Portfolio Assets: |
|
|
|
|
| ||
Servicing fee revenue |
| $ | 2,210 |
| $ | 2,587 |
|
Average servicing fee % |
| 9.5 | % | 8.7 | % | ||
Service Fees-SBA loans: |
| $ | (10 | ) | $ | 18 |
|
Total Service Fees |
| $ | 2,200 |
| $ | 2,605 |
|
|
|
|
|
|
| ||
Collections: |
|
|
|
|
| ||
Domestic |
| $ | 11,349 |
| $ | 17,225 |
|
Latin America |
| 11,885 |
| 12,342 |
| ||
Europe |
| 12,768 |
| 33,511 |
| ||
Subtotal |
| 36,002 |
| 63,078 |
| ||
Wholly-owned |
| 19,489 |
| 19,691 |
| ||
Total |
| $ | 55,491 |
| $ | 82,769 |
|
|
|
|
|
|
| ||
Servicing portfolio (face value): |
|
|
|
|
| ||
Domestic |
| $ | 556,774 |
| $ | 619,098 |
|
Latin America |
| 1,596,845 |
| 1,712,128 |
| ||
Europe |
| 1,174,578 |
| 1,027,430 |
| ||
Total |
| $ | 3,328,197 |
| $ | 3,358,656 |
|
|
|
|
|
|
| ||
Number of personnel at period end: |
|
|
|
|
| ||
Domestic |
| 94 |
| 58 |
| ||
Latin America |
| 122 |
| 116 |
| ||
Corporate |
| 34 |
| 32 |
| ||
Total personnel |
| 250 |
| 206 |
|
7
FirstCity Financial Corporation
Schedule of Unrealized Gross Profit
March 31, 2008
(Unaudited)
|
| Book Value of Portfolio Assets (1) |
| |||||
($ in 000’s) |
| 12/31/2006 |
| 12/31/2007 |
| 3/31/2008 |
| |
Domestic |
| $ | 153,118 |
| 151,802 |
| 138,534 |
|
Europe |
| 46,204 |
| 40,340 |
| 40,008 |
| |
Latin America |
| 22,378 |
| 26,844 |
| 38,840 |
| |
Total (4) |
| $ | 221,700 |
| 218,987 |
| 217,383 |
|
|
|
|
|
|
|
|
| |
|
| Estimated Remaining Collections (2) |
| |||||
|
| 12/31/2006 |
| 12/31/2007 |
| 3/31/2008 |
| |
Domestic |
| $ | 215,987 |
| 195,845 |
| 171,868 |
|
Europe |
| 61,081 |
| 52,617 |
| 51,802 |
| |
Latin America |
| 50,866 |
| 68,900 |
| 89,695 |
| |
Total |
| $ | 327,934 |
| 317,363 |
| 313,365 |
|
|
|
|
|
|
|
|
| |
|
| Unrealized Gross Profit (3) |
| |||||
|
| 12/31/2006 |
| 12/31/2007 |
| 3/31/2008 |
| |
Domestic |
| $ | 62,869 |
| 44,043 |
| 33,334 |
|
Europe |
| 14,877 |
| 12,278 |
| 11,794 |
| |
Latin America |
| 28,488 |
| 42,056 |
| 50,854 |
| |
Total |
| $ | 106,234 |
| 98,376 |
| 95,982 |
|
|
|
|
|
|
|
|
| |
|
| Unrealized Gross Profit% |
| |||||
|
| 12/31/2006 |
| 12/31/2007 |
| 3/31/2008 |
| |
Domestic |
| 29.1 | % | 22.5 | % | 19.4 | % | |
Europe |
| 24.4 | % | 23.3 | % | 22.8 | % | |
Latin America |
| 56.0 | % | 61.0 | % | 56.7 | % | |
Total |
| 32.4 | % | 31.0 | % | 30.6 | % |
This schedule represents statistical information related to the Company’s ownership in portfolio assets and is provided for informational purposes to give an indication of the future Unrealized Gross Profit attributable to those pools. These are estimates and will change each period based upon review and judgment of management and individual facts and circumstances surrounding each asset in the portfolios.
(1) Book Value of Portfolio Assets represents the unamortized purchase price of Portfolio Assets held by various acquisition entities, some of which are consolidated by FirstCity and others held through equity investments in partnerships or similar arrangements.
(2) Estimated Remaining Collections represents the sum of all future projected cash collections expected from the Portfolio Assets, net of certain expenses.
(3) Unrealized Gross Profit represents the excess difference between the Estimated Remaining Collections and the Book Value of Portfolio Assets.
(4) FirstCity considers Book Value of its interests in Portfolio Assets a useful measurement of the Company’s underlying holdings and interests in Portfolio Assets. As FirstCity’s share of Book Value of Portfolio Assets is considered a non-GAAP measure, the following reconciliation is provided:
|
| 12/31/2006 |
| 12/31/2007 |
| 3/31/2008 |
| |
FirstCity’s wholly-owned and majority-owned Portfolio Assets (as reported in “Portfolio Assets” on the financial statement of respective SEC filing) |
| $ | 108,696 |
| 122,001 |
| 112,593 |
|
Minority shareholders’ interests in FirstCity’s majority-owned Portfolio Assets (included in “Minority interest” on the financial statement of respective SEC filing) |
| (2,005 | ) | (4,474 | ) | (3,996 | ) | |
FirstCity’s interests in Portfolio Assets held by equity investment entities (included in total assets of equity investments in “Condensed Combined Balance Sheets” table disclosed in financial statement footnotes of respective SEC filing) |
| 115,009 |
| 101,460 |
| 108,786 |
| |
|
| $ | 221,700 |
| 218,987 |
| 217,383 |
|
8