Schedule I- Financial Information of Registrant
TFC Enterprises, Inc.
Balance Sheets
(in thousands) 1998 1997
Assets
Investment in subsidiaries $ 3,425 $ -
Intangible assets, net 10,978 12,070
Due from subsidiaries 21,455 21,967
Income taxes receivable 127 -
Other assets 106 148
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Total assets $36,091 $ 34,185
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Liabilities and shareholders' equity Liabilities:
Deficit in subsidiaries - 1,644
Accounts payable and accrued expenses 140 31
Income taxes payable - 506
Deferred income taxes 669 924
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Total liabilities 809 3,105
Shareholders' equity:
Preferred stock, $.01 per value, 1,000,000
shares authorized; none outstanding - -
Common stock, $.01 par value, 40,000,000 shares
authorized and 11,404,882 and 11,290,308
shares outstanding in
1998 and 1997, respectively 50 49
Additional paid-in capital 56,020 55,844
Retained deficit (20,788) (24,813)
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Total shareholders' equity 35,282 31,080
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Total liabilities and shareholders' equity $36,091 $34,185
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Schedule I- Financial Information of Registrant
TFC Enterprises, Inc.
Statements of Operations
(in thousands) 1998 1997 1996
Net interest revenue:
Interest revenue $ -- $ 346 $2,132
Interest expense -- - -
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Net interest revenue -- 346 2,132
Other revenue:
Equity in net income (loss)
of subsidiaries 5,069 1,945 (7,667)
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Total other revenue 5,069 1,945 (7,667)
Operating expenses:
Amortization of intangible assets 1,092 1,091 1,091
Other 334 143 483
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Total operating expense 1,426 1,234 1,574
Income (loss) before income taxes 3,643 1,057 (7,109)
(Benefit from) provision for
income taxes (382) 350 487
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Net income (loss) $4,025 $ 707 $(7,596)
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Schedule I- Financial Information of Registrant
TFC Enterprises, Inc.
Statements of Cash Flows
Years ended December 31
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(in thousands) 1998 1997 1996
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Operating activities
Net income (loss) $ 4,025 $ 707 $(7,596)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Equity in net (income) loss of subsidiaries (5,069) (1,945) 7,667
Amortization of intangible assets 1,092 1,091 1,091
Provision for (benefit from) deferred
income taxes (255) 22 (108)
Changes in operating assets and
liabilities:
Increase in income taxes receivable (127) - -
Decrease in other assets 42 17 50
(Decrease) increase in due from
subsidiaries 512 3,353 (2,455)
Decrease (increase) in accounts payable
and accrued expenses 109 (172) 744
Increase (decrease) in income taxes payable (506) (3,073) 595
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Net cash used in operating activities (177) - (12)
Financing activities
Proceeds from stock options exercised 177 - 12
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Net cash provided by financing activities 177 12
Increase (decrease) in cash - - -
Cash at beginning of year - - -
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Cash balance at end of year $ - $ - $ -
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Noncash transactions:
Issuance of stock warrants $ - $ 511 $ 423
Deferred compensation terminated and
transferred to paid-in capital $ - $ - $ 619