-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RiyvBf9lCi9nW698ajFD1LVtpVFYaPHajzz/95wT8+T5EN9Hq9hl7nB7yLzKPfs0 DrYC3nSc3QBUigsmq8A/Yg== 0000950129-03-005542.txt : 20031112 0000950129-03-005542.hdr.sgml : 20031111 20031112092746 ACCESSION NUMBER: 0000950129-03-005542 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031112 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTCITY FINANCIAL CORP CENTRAL INDEX KEY: 0000828678 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 760243729 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-19694 FILM NUMBER: 03990935 BUSINESS ADDRESS: STREET 1: 6400 IMPERIAL DRIVE CITY: WACO STATE: TX ZIP: 76712 BUSINESS PHONE: 2547511750 MAIL ADDRESS: STREET 1: 6400 IMPERIAL DRIVE CITY: WACO STATE: TX ZIP: 76712 FORMER COMPANY: FORMER CONFORMED NAME: FIRST CITY BANCORPORATION OF TEXAS INC/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIRST CITY ACQUISITION CORP DATE OF NAME CHANGE: 19880523 8-K 1 h10553e8vk.txt FORM 8-K - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 12, 2003 FIRSTCITY FINANCIAL CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 033-19694 76-0243729 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.)
6400 IMPERIAL DRIVE WACO, TEXAS 76712 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (254) 751-1750 - -------------------------------------------------------------------------------- ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 Text of press release of FirstCity Financial Corporation issued on November 12, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. (a) On November 12, 2003, FirstCity Financial Corporation ("FirstCity" or the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2003 and certain other information. A copy of this press release is attached hereto as Exhibit 99.1 and is being furnished, not filed, under Item 12, Results of Operations and Financial Condition, to this Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FirstCity Financial Corporation By: /S/ J. Bryan Baker Date: November 12, 2003 --------------------------- J. Bryan Baker Senior Vice President, and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 - Text of press release of FirstCity Financial Corporation issued on November 12, 2003. EX-99.1 3 h10553exv99w1.txt TEXT OF PRESS RELEASE ISSUED ON NOVEMBER 12, 2003 EXHIBIT 99.1 NEWS RELEASE (FIRSTCITY FINANCIAL CORPORATION LOGO) contact: Suzy W. Taylor (866) 652-1810 FIRSTCITY FINANCIAL ANNOUNCES THIRD QUARTER 2003 RESULTS WACO, TEXAS NOVEMBER 12, 2003... FirstCity Financial Corporation (NASDAQ FCFC) today announced net earnings to common stockholders for the quarter ended September 30, 2003, of $1,840,000 or $.16 per share on a diluted basis. Components of the profits for the third quarter and nine months ended September 30, 2003 and 2002 are detailed below:
(UNAUDITED) QUARTER ENDED NINE MONTHS ENDED ($ THOUSANDS) SEPTEMBER 30, SEPTEMBER 30, --------------------- --------------------- 2003 2002 2003 2002 ------- ------- ------- ------- Portfolio Acquisition and Resolution $ 3,005 $ 849 $ 9,418 $ 9,350 Consumer 1,491 280 4,118 (406) Corporate interest (1,269) (939) (3,629) (2,608) Corporate overhead (1,387) (1,327) (3,849) (4,105) ------- ------- ------- ------- Earnings (loss) from continuing operations 1,840 (1,137) 6,058 2,231 ------- ------- ------- ------- Loss from discontinued operations -- (5,700) (420) (7,700) Accrued preferred dividends -- (642) (133) (1,926) ------- ------- ------- ------- Net earnings (loss) to common stockholders $ 1,840 $(7,479) $ 5,505 $(7,395) ======= ======= ======= =======
PORTFOLIO ASSET ACQUISITION Operating contribution from the Portfolio Asset Acquisition business for the quarter of $3.0 million includes foreign currency losses in Mexico ($1.0 million), and foreign currency gains related to cash collections of certain Euro investments ($.4 million). Quarterly results have been, and continue to be impacted by fluctuations in foreign currencies. The following table details these impacts on corporate earnings: ..
FIRST SECOND THIRD YEAR TO QUARTER QUARTER QUARTER DATE ILLUSTRATION OF THE EFFECTS OF CURRENCY FLUCTUATIONS DURING 2003 2003 2003 2003 2003 ------- ------- -------- ------- Net earnings (loss) to Common Shareholders as reported $ (85) $ 3,750 $ 1,840 $ 5,505 Mexican Peso gains (losses) (1,623) 1,110 (1,040) (1,553) Euro gains 247 143 415 805 ------- ------- ------- ------- Peso exchange rate at valuation date 11.03 10.41 10.93 Euro exchange rate at valuation date 0.93 0.87 0.86
The company continues to monitor the foreign currency exposure on a daily basis and evaluate the advisability of hedging these investments through analysis of currency forecasts, the cost of hedging those investments and the available liquidity to do so. Profit contribution of this business was comprised of $7.9 million in revenues, net of $4.8 million of expenses. The major components of revenue for the quarter include equity earnings in Acquisition Partnerships of $3.2 million, servicing fees of $3.6 million, and interest income of $.6 million. The business segment generated 52% of the revenues from domestic investments, 24% from investments in Mexico and 24% from investments in Europe. (more) (2) Acquisitions were strong during the third quarter totaling $39.3 million in the Acquisition Partnerships. Purchases were comprised of four domestic portfolios. The company invested $3.9 million in these portfolios, increasing 2003 invested equity to $15.3 million. The company continues to see many opportunities to invest in portfolios both domestically and in Europe. The company anticipates that it will experience an increase in acquisitions in the fourth quarter. The known opportunities to bid approximate $400 million of product. 31% INTEREST IN DRIVE FINANCIAL FirstCity owns a 31% interest in Drive Financial Services L.P., a subprime auto lending company. Drive originated $129 million of receivables during the quarter. Defaults and losses were 22.01% and 11.47%, respectively, at the end of the quarter compared to 18.73% and 9.30%, respectively, for the same period last year. These statistics reflect continued weakness in the economy and the resulting impact on used car prices. Delinquencies were 5.92% for the quarter, down from 7.53% for the same period last year. During the quarter Drive took a $3.9 million provision on residual assets. This provision was related to higher losses and delinquencies as a result of market and general economic conditions and are more prevalent in pools of loans originated prior to September 2001. Recent market conditions do indicate initial signs of improvement but Drive Management continues to monitor trends in cash flow and performance to determine the impact upon the need for additional provisions. Net income from Drive continues to grow as originations and the volume of portfolio assets grow over time. The company expects that this positive trend will continue. The following table details this trend:
INCOME (LOSS) BEFORE PROVISIONS TOTAL PROVISIONS ON RESIDUAL NET INCOME FIRSTCITY'S $ IN THOUSANDS ORIGINATIONS LOAN INVENTORY ASSETS ON RESIDUAL ASSETS ASSETS (LOSS) 31% SHARE - -------------- ------------ -------------- ------- ------------------ ----------- ---------- ----------- 2003 3rd Quarter $128,688 $577,974 $700,760 $ 9,132 $ (3,904) $ 5,228 $ 1,621 2nd Quarter 127,706 511,212 619,269 8,251 (1,240) 7,011 2,173 1st Quarter 126,118 443,099 551,412 3,707 (1,217) 2,490 689 2002 4th Quarter 101,102 368,379 472,553 3,207 (3,303) (96) (29) 3rd Quarter 100,430 310,540 416,295 1,025 (112) 913 282 2nd Quarter 100,780 238,096 341,882 1,281 -- 1,281 398 1st Quarter 113,401 159,052 254,647 (3,470) -- (3,470) (1,076)
Note: As of September 30, 2003 Drive holds on its balance sheet residual interests with a book value of $37.4 million compared with $68.6 as of September 30, 2002. DISCONTINUED OPERATIONS The anticipated net realizable value of the Company's investment in discontinued operations decreased to $6.3 million at September 30, 2003, down from $7.7 million at June 30, 2003 as a result of the collection of $1.4 million in cash flow received from the Company's residual interest in the FC Capital 1998-1 securitization trust. The $6.3 million valuation is net of reserves of $.2 million. CONFERENCE CALL FirstCity will host a conference call to discuss the quarterly results today, Wednesday, November 12, 2003 at 9:00 a.m., CST. James T. Sartain, FirstCity's President and Chief Executive Officer will lead the call. To participate, dial 1-800-569-0398 and specify conference I.D. number 317333. Please dial in five minutes prior to the call. If you are unable to listen to the live conference call, a replay will be available by dialing 1-800-615-3210. The pass code for the replay is 317333. The replay will be available through Wednesday, November 26, 2003. (more) (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 statements under the Private Securities Litigation Reform Act of 1995. 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", 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 FirstCity's actual results to differ materially. These factors include, but are not limited to, the performance of FirstCity's subsidiaries and affiliates, availability of portfolio assets, assumptions portfolio asset performance, risks associated with foreign operations, currency exchange rate fluctuations, interest rate risk; the degree to which FirstCity is leveraged, FirstCity's continued need for financing, availability of FirstCity's credit facilities, the impact of certain covenants in loan agreements of FirstCity and its subsidiaries, risks of declining value of loans, collateral or assets, the ability of FirstCity to utilize net operating loss carryforwards, uncertainties of any litigation arising from discontinued operations, general economic conditions, foreign social and economic conditions, changes (legislative and otherwise) in the asset securitization industry; fluctuation in residential and commercial real estate values, capital markets conditions, including the markets for asset-backed securities; factors more fully discussed and identified under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," risk factors and other risks identified in FirstCity's Annual Report on Form 10-K, filed with the SEC on April 15, 2003, as well as in FirstCity's other filings with the SEC. Many of these factors are beyond FirstCity's control. In addition, it should be noted that past financial and operational performance of FirstCity 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. FirstCity expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in FirstCity's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based. FirstCity is a diversified financial services company with operations dedicated to portfolio asset acquisition and resolution and consumer lending with offices in the U.S. and with affiliate organizations in France and Mexico. Its common (FCFC) and preferred (FCFCO) stocks are listed on the NASDAQ National Market System. (tables follow) FIRSTCITY FINANCIAL CORPORATION Summary of Operations (In thousands, except per share data) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ---------------------- ---------------------- 2003 2002 2003 2002 -------- -------- -------- -------- Revenues: Servicing fees from affiliates $ 3,574 $ 3,263 $ 11,167 $ 9,655 Gain on resolution of Portfolio Assets 112 225 1,079 925 Equity in earnings of investments 5,187 1,277 14,211 6,691 Interest income from affiliates 501 962 2,327 3,063 Interest income - other 98 280 443 841 Gain on sale of interest in equity investments -- -- -- 1,779 Other income 545 534 1,161 1,710 -------- -------- -------- -------- Total revenues 10,017 6,541 30,388 24,664 Expenses: Interest and fees on notes payable to affiliates 1,855 1,503 5,550 4,439 Interest and fees on notes payable - other 20 64 134 301 Interest on shares subject to mandatory redemption 66 -- 66 -- Salaries and benefits 3,823 3,545 11,417 9,705 Provision for loan and impairment losses 23 157 1 278 Occupancy, data processing, communication and other 2,189 2,219 5,919 6,589 -------- -------- -------- -------- Total expenses 7,976 7,488 23,087 21,312 Earnings (loss) from continuing operations before income taxes and minority interest 2,041 (947) 7,301 3,352 (Provision) benefit for income taxes 171 (28) (83) (35) -------- -------- -------- -------- Earnings (loss)from continuing operations before minority interest 2,212 (975) 7,218 3,317 Minority interest (372) (162) (1,160) (1,086) -------- -------- -------- -------- Earnings (loss) from continuing operations 1,840 (1,137) 6,058 2,231 Loss from discontinued operations -- (5,700) (420) (7,700) -------- -------- -------- -------- Net earnings (loss) 1,840 (6,837) 5,638 (5,469) Accumulated preferred dividends in arrears -- (642) (133) (1,926) -------- -------- -------- -------- Net earnings (loss) to common shareholders $ 1,840 $ (7,479) $ 5,505 $ (7,395) ======== ======== ======== ======== Basic earnings (loss) per common share are as follows: Earnings (loss) from continuing operations $ 0.16 $ (0.21) $ 0.53 $ 0.04 Discontinued operations -- (0.68) (0.04) (0.92) Net earnings (loss) per common share $ 0.16 $ (0.89) $ 0.49 $ (0.88) Wtd. avg. common shares outstanding 11,204 8,376 11,203 8,376 Diluted earnings (loss) per common share are as follows: Earnings (loss) from continuing operations $ 0.16 $ (0.21) $ 0.53 $ 0.04 Discontinued operations -- (0.68) (0.04) (0.92) Net earnings (loss) per common share $ 0.16 $ (0.89) $ 0.49 $ (0.88) Wtd. avg. common shares outstanding 11,371 8,376 11,259 8,376
SELECTED UNAUDITED BALANCE SHEET DATA
SEPTEMBER 30, DECEMBER 31, 2003 2002 ------------- ------------ Cash $ 3,053 $ 4,118 Portfolio acquisition and resolution assets 75,996 77,744 Consumer assets 14,092 9,127 Deferred tax asset 20,101 20,101 Net assets of discontinued operations 6,346 7,764 Total assets 128,415 126,456 Notes payable to affiliates 91,796 95,560 Notes payable other 1,424 1,113 Preferred stock subject to mandatory redemption (including accrued and unpaid dividends) 3,779 3,705 Total common shareholders' equity 24,032 18,752
4 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------------- ----------------------- 2003 2002 2003 2002 --------- --------- --------- --------- SUMMARY OPERATING STATEMENT DATA FOR EACH BUSINESS Portfolio Asset Acquisition and Resolution: Revenues $ 7,851 $ 6,143 $ 24,510 $ 25,032 Expenses 4,823 5,137 15,091 15,404 --------- --------- --------- --------- Operating contribution before provision for loan and impairment losses 3,028 1,006 9,419 9,628 Provision for loan and impairment losses 23 157 1 278 --------- --------- --------- --------- Operating contribution, net of direct taxes $ 3,005 $ 849 $ 9,418 $ 9,350 ========= ========= ========= ========= Consumer Lending: Revenues, net of equity in loss of investment $ 2,025 $ 353 $ 5,602 $ (495) Expenses, net of minority interest 534 73 1,484 (89) --------- --------- --------- --------- Operating contribution (loss), net of direct taxes $ 1,491 $ 280 $ 4,118 $ (406) ========= ========= ========= ========= PORTFOLIO ASSET ACQUISITION AND RESOLUTION: OVERVIEW AGGREGATE PURCHASE PRICE OF PORTFOLIOS ACQUIRED: Acquisition partnerships Domestic $ 39,304 $ 5,028 $ 46,053 $ 25,522 Mexico -- -- 5,400 11,709 France -- 39,163 20,055 66,665 Italy -- -- -- 16,943 --------- --------- --------- --------- Total $ 39,304 $ 44,191 $ 71,508 $ 120,839 ========= ========= ========= =========
HISTORICAL ACQUISITIONS - ANNUAL: PURCHASE FIRSTCITY'S PRICE INVESTMENT -------- ---------- 2003 year to date $ 71,508 $ 15,295 2002 171,769 16,717 2001 224,927 24,319 2000 394,927 22,140 1999 210,799 11,203 1998 139,691 28,478
SEPTEMBER 30, SEPTEMBER 30, 2003 2002 ------------- ------------- PORTFOLIO ACQUISITION AND RESOLUTION ASSETS BY REGION: Domestic $40,515 $42,142 Mexico 15,412 19,093 France and Italy 20,069 14,401 ------- ------- Total $75,996 $75,636 ======= ======= REVENUES BY REGION: Domestic $ 4,109 $ 3,361 $13,903 $15,322 Mexico 1,869 2,379 7,089 5,746 France and Italy 1,873 401 3,518 3,957 Other foreign -- 2 -- 7 ------- ------- ------- ------- Total $ 7,851 $ 6,143 $24,510 $25,032 ======= ======= ======= ======= REVENUES BY SOURCE: Equity earnings $ 3,162 $ 924 $ 8,609 $ 7,186 Servicing fees 3,574 3,263 11,167 9,655 Interest income - loans 590 1,207 2,748 3,797 Gain on sale of interest in equity investment -- -- -- 1,779 Gain on resolution of Portfolio Assets 112 225 1,079 925 Other 413 524 907 1,690 ------- ------- ------- ------- Total $ 7,851 $ 6,143 $24,510 $25,032 ======= ======= ======= =======
5 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------------- ------------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- ANALYSIS OF EQUITY INVESTMENTS IN ACQUISITION PARTNERSHIPS: FIRSTCITY'S AVERAGE INVESTMENT IN ACQUISITION PARTNERSHIPS Domestic $ 34,186 $ 31,579 $ 33,483 $ 32,753 Mexico 1,060 964 1,048 1,170 France 12,343 9,640 11,671 9,018 France-Servicing subsidiaries 3,777 2,931 3,641 2,558 ----------- ----------- ----------- ----------- Total $ 51,366 $ 45,114 $ 49,843 $ 45,499 =========== =========== =========== =========== FIRSTCITY SHARE OF EQUITY EARNINGS (LOSS): Domestic $ 2,480 $ 1,310 $ 8,091 $ 7,812 Mexico (1,104) (812) (2,774) (2,726) France 1,631 415 2,818 1,409 France-Servicing subsidiaries 155 11 474 691 ----------- ----------- ----------- ----------- Total $ 3,162 $ 924 $ 8,609 $ 7,186 =========== =========== =========== =========== SELECTED OTHER DATA: AVERAGE INVESTMENT IN WHOLLY OWNED PORTFOLIO ASSETS AND LOANS RECEIVABLE: Domestic $ 6,014 $ 12,347 $ 7,921 $ 13,564 Mexico 15,226 18,274 15,153 19,236 France 3,486 -- 1,394 -- ----------- ----------- ----------- ----------- Total $ 24,726 $ 30,621 $ 24,468 $ 32,800 =========== =========== =========== =========== INCOME FROM WHOLLY OWNED PORTFOLIO ASSETS AND LOANS RECEIVABLE: Domestic $ 241 $ 485 $ 1,616 $ 1,769 Mexico 414 947 2,147 2,953 France 47 -- 64 -- ----------- ----------- ----------- ----------- Total $ 702 $ 1,432 $ 3,827 $ 4,722 =========== =========== =========== =========== SERVICING FEE REVENUES: Domestic partnerships: $ Collected $ 23,646 $ 26,653 $ 88,341 $ 162,864 Servicing fee revenue 1,121 1,249 3,703 4,399 Average servicing fee % 4.7% 4.7% 4.2% 2.7% Mexico partnerships: $ Collected $ 16,331 $ 20,895 $ 46,356 $ 69,245 Servicing fee revenue 2,348 1,792 7,227 4,778 Average servicing fee % 14.4% 8.6% 15.6% 6.9% Incentive service fees $ 105 $ 222 $ 237 $ 478 Total Service Fees: $ Collected $ 39,977 $ 47,548 $ 134,697 $ 232,109 Servicing fee revenue 3,574 3,263 11,167 9,655 Average servicing fee % 8.9% 6.9% 8.3% 4.2% SERVICING PORTFOLIO (FACE VALUE) Domestic $ 384,476 $ 382,610 Mexico 1,123,257 1,307,198 France and Italy 864,153 803,140 ----------- ----------- Total $ 2,371,886 $ 2,492,948 =========== =========== NUMBER OF PERSONNEL AT PERIOD END: Domestic 58 70 Mexico 178 102 ----------- ----------- Total personnel 236 172 =========== ===========
6 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------- --------------------------- 2003 2002 2003 2002 ----------- ----------- --------- --------- CONSUMER LENDING: (1) Retail installment contracts acquired $ 128,688 $ 100,430 $ 382,513 $ 314,611 Origination characteristics: Face value to wholesale value 96.02% 98.07% 97.84% 99.69% Weighted average coupon 20.99% 20.93% 20.98% 21.02% Purchase discount (% of face value) 17.72% 15.02% 17.43% 15.41% Servicing portfolio (face value in $) 808,753 663,758 Defaults (% of original balance at time of default) 22.01% 18.73% Net loss on defaults after recovery 11.47% 9.30% Delinquencies (% of total serviced portfolio) 5.92% 7.53% Equity in earnings (loss) of Drive $ 2,025 $ 353 $ 5,602 $ (495) Minority interest (404) (71) (1,119) 99 ----------- ----------- --------- --------- Net equity in earnings (loss) of Drive $ 1,621 $ 282 $ 4,483 $ (396) =========== =========== ========= =========
(1) Auto lending business conducted by Drive Financial Services LP, of which FirstCity owns 31% and accounts for its investment using the equity method of accounting. 7 -----END PRIVACY-ENHANCED MESSAGE-----