-----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, SjHLb4jrtbgYL7QAjBdideiMariK4b8DPZy6jiofD6fEHcOPeJSJo8RE+B2V0kHa Xk6wNtqVrz6PT5YFksV11w== 0000950129-04-005415.txt : 20040803 0000950129-04-005415.hdr.sgml : 20040803 20040803080539 ACCESSION NUMBER: 0000950129-04-005415 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040803 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040803 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: 04946595 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 h17240e8vk.txt FIRSTCITY FINANCIAL CORPORATION - 8/3/2004 ================================================================================ UNITED STATES 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): AUGUST 3, 2004 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. EXHIBITS On August 3, 2004, FirstCity Financial Corporation ("FirstCity" or the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2004 and certain other information. A copy of this press release is attached hereto as Exhibit 99.1. ITEM 9. REGULATION FD DISCLOSURE. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Results of Operations and Financial Condition." On August 3, 2004, FirstCity Financial Corporation ("FirstCity" or the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2004 and certain other information. A copy of this press release is attached hereto as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FirstCity Financial Corporation Date: August 3, 2004 By: /S/ J. Bryan Baker ---------------------------------- 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 August 3, 2004.
EX-99.1 2 h17240exv99w1.txt PRESS RELEASE DATED AUGUST 3, 2004 NEWS RELEASE (FIRSTCITY FINANCIAL CORPORATION LOGO) Contact: Suzy W. Taylor (866) 652-1810 FIRSTCITY FINANCIAL ANNOUNCES SECOND QUARTER 2004 RESULTS WACO, TEXAS AUGUST 3, 2004... FirstCity Financial Corporation (NASDAQ FCFC) today announced net earnings to common stockholders for the quarter ended June 30, 2004 of $3.3 million or $.28 per share on a diluted basis. Components of the results for the three and six months ended June 30, 2004 and 2003, respectively, are detailed below (dollars in thousands except per share data):
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Portfolio Asset Acquisition and Resolution $ 2,424 $ 4,636 $ 6,467 $ 6,413 Consumer 3,182 2,052 6,300 2,627 Corporate interest (1,026) (1,188) (2,026) (2,360) Corporate overhead (1,031) (1,263) (2,343) (2,462) ---------- ---------- ---------- ---------- Earnings from continuing operations 3,549 4,237 8,398 4,218 Loss from discontinued operations (250) (420) (250) (420) Accrued preferred dividends -- (67) -- (133) ---------- ---------- ---------- ---------- Net earnings to common stockholders $ 3,299 $ 3,750 $ 8,148 $ 3,665 ========== ========== ========== ========== Diluted earnings per common share $ 0.28 $ 0.33 $ 0.69 $ 0.33 ========== ========== ========== ==========
PORTFOLIO ASSET ACQUISITION AND RESOLUTION Operating contribution for the quarter was $2.4 million, comprised of $7.5 million in revenues and $5.1 million of expenses. The business generated 56% of the revenues from domestic investments, 30% from investments in Latin America and 14% from investments in Europe. The major components of revenue for the quarter include servicing fees of $3.7 million, equity earnings in Acquisition Partnerships and servicing entities of $2.6 million and interest income of $.6 million. Operating contribution from the Portfolio Asset Acquisition business for the quarter includes net foreign currency losses of $.4 million, comprised of $.7 million in Mexican peso losses and $.3 million of foreign currency gains related to cash collections of certain Euro investments. Quarterly results have been, and continue to be, impacted by fluctuations in foreign currencies. To help hedge against Euro fluctuations, FirstCity restructured its portfolio acquisition funding facility with The Bank of Scotland in April 2004 to allow the Company to borrow in Euros up to a U.S. dollar equivalent of $22.5 million. In June 2004, FirstCity borrowed 7.0 million Euros under the Bank of Scotland portfolio acquisition facility to refinance the outstanding balance of U.S. Dollar denominated loans it had with Cargill related to the acquisition of European portfolios. The company has subsequently used the Bank of Scotland portfolio acquisition facility to acquire a French portfolio with a Euro denominated loan. FirstCity continues to attempt to locate a Peso based financing facility (MORE) (2) to hedge its peso exposure. The following table details these impacts on corporate earnings (dollars in thousands):
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ILLUSTRATION OF THE EFFECTS OF CURRENCY FLUCTUATIONS 2004 2003 2004 2003 - ----------------------------------------------------- ---------- ---------- ----------- ----------- Net earnings to Common Stockholders as reported $ 3,299 $ 3,750 $ 8,148 $ 3,665 Mexican Peso gains (losses) (678) 1,110 (216) (513) Euro gains 249 143 558 390 ---------- ---------- ---------- ---------- Peso exchange rate at valuation date 11.45 10.41 Euro exchange rate at valuation date 0.83 0.87
The Company and its Acquisition Partnerships purchased ten portfolios in the second quarter - seven domestic portfolios totaling $35 million, one Mexican portfolio for $41 million and two French portfolios for $10 million. The Company invested equity of $18.7 million in these portfolios. A summary of acquisitions for the recent quarters follows (dollars in millions):
LATIN INVESTED DOMESTIC EUROPE AMERICA TOTAL EQUITY ---------- ---------- ---------- ---------- ---------- 2004 2nd Quarter $ 35.3 $ 9.8 $ 40.7 $ 85.8 $ 18.7 1st Quarter $ 6.5 $ -- $ 0.2 $ 6.7 $ 3.1 ---------- ---------- ---------- ---------- ---------- Year to Date 2004 $ 41.8 $ 9.8 $ 40.9 $ 92.5 $ 21.8 ========== ========== ========== ========== ========== 2003 4th Quarter $ 46.7 $ 11.1 $ -- $ 57.7 $ 7.6 3rd Quarter 39.3 -- -- 39.3 3.9 2nd Quarter 6.7 20.1 5.4 32.2 11.4 1st Quarter -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total Year 2003 $ 92.6 $ 31.2 $ 5.4 $ 129.2 $ 22.9* ========== ========== ========== ========== ========== Total Year 2002 $ 61.4 $ 98.7 $ 11.7 $ 171.8 $ 16.7 ========== ========== ========== ========== ==========
* The Company invested $3.4 million in partnerships during 2003 in addition to the acquisitions above. CONSUMER Operating contribution for the quarter was $3.2 million, comprised of $4.1 million from the Company's investment in Drive and $.9 million of interest, taxes and other expenses. The Company owns a 31% interest in Drive Financial Services L.P., a sub prime auto lending company. Drive originated $177.5 million of receivables during the quarter compared to $127.7 million in the second quarter of 2003. Defaults and losses were 20.00% and 10.65%, respectively, at the end of the quarter compared to 21.46% and 11.07%, respectively, for the same period last year. These statistics reflect the weakness in the economy in prior periods and the resulting impact on used car prices, although recent indicators reflect an upward trend in used car prices. Delinquencies were 17.28% for the quarter, up from 6.00% the same period last year as a result of a change in collection strategies, which will in some instances allow Drive to provide borrowers additional time to cure delinquencies rather than pursue immediate repossession. Net income from Drive continues to be positive as originations and the volume of portfolio assets grow over time. Based on information provided by Drive, the Company expects that this positive trend will continue. (MORE) (3) The following table details this trend (dollars in thousands):
INCOME BEFORE PROVISIONS LOAN TOTAL PROVISIONS ON ON RESIDUAL FIRSTCITY'S ORIGINATIONS INVENTORY ASSETS RESIDUAL ASSETS ASSETS NET INCOME 31% SHARE ----------- ----------- ---------- --------------- ----------- ---------- ---------- 2004 2nd Quarter $ 177,549 $ 861,461 $1,074,036 $ 13,211 $ -- $ 13,211 $ 4,095 1st Quarter 244,121 770,042 915,128 13,001 -- 13,001 4,031 2003 4th Quarter 102,228 623,389 738,829 6,308*** (2,087) 4,221 1,308 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 ---------- ---------- ---------- --------------- ----------- ---------- ----------
*** Net of $3.7 million of additional provisions related to loans receivable. Note: As of June 30, 2004, Drive holds on its balance sheet residual interests with a book value of $19.6 million compared with $45.3 million as of June 30, 2003. DISCONTINUED OPERATIONS The anticipated realizable value of the Company's investment in discontinued mortgage operations decreased to $5.5 million, net of reserves of $250,000, at June 30, 2004. Additional provisions of $250,000 were required during the second quarter of 2004. PAYMENT OF DIVIDEND ON NEW PREFERRED STOCK On July 29, 2004, the Company paid a dividend of $10.50 per share on its New Preferred Stock (NASDAQ FCFCO). The dividend was paid to holders of record as of July 22, 2004 and represented all dividends in arrears on the New Preferred Stock. The dividend covered the period from July 1, 1999 through June 30, 2004. Because the dividend was in excess of 25% of the value of the New Preferred Stock, the ex dividend date for the security was July 30, 2004, the day after the payable date. The company halted payment of dividends on New Preferred Stock as of July 1, 1999, due to liquidity constraints resulting from financial difficulties the company experienced at the time. Since then, the company's bank lending agreements have prohibited the payment of any dividends on New Preferred Stock. Giving consideration to its successful recapitalization in December of 2002, and resulting improvement in its balance sheet, liquidity and earnings, the Company recently sought and received a waiver of the restrictions on dividend payments from its lender. There are currently 126,281 shares of New Preferred Stock outstanding. The issue, which matures in September 2005, has a $21.00 per share liquidation preference and $2.10 per share annual dividend rate. The company expects to make normal quarterly dividend payments of $.525 per share beginning in October of 2004, until the shares are retired. ANNUAL MEETING The Company will hold its annual meeting of stockholders on August 5, 2004 at the Company headquarters located at 6400 Imperial Drive, Waco, Texas 76712. The record date for the meeting is June 8, 2004. CONFERENCE CALL The Company will host a conference call to discuss the quarterly results today, Tuesday, August 3, 2004 at 9:00 a.m., CDT. James T. Sartain, the Company's President and Chief Executive Officer will lead the call. To participate, dial toll free 1-888-243-0812 and specify conference I.D. number 519375. International callers should dial 1-703-736-7293. 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 1-888-266-2081. For international callers the replay number is 1-703-925-2533. The pass code for the replay is 519375. The replay will be available through Tuesday, August 17, 2004. (MORE) (4) 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 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, assumptions underlying portfolio asset performance, risks associated with foreign operations, currency exchange rate fluctuations, interest rate 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, 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, 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2003, filed with the SEC on March 30, 2004, 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. The Company 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 SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------------ ------------------------------ 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Revenues: Servicing fees from affiliates $ 3,716 $ 4,086 $ 6,748 $ 7,593 Gain on resolution of Portfolio Assets 162 272 237 967 Equity in earnings of investments 7,757 6,933 16,969 9,024 Interest income from affiliates 617 911 1,061 1,826 Interest income - other 51 157 136 345 Other income 444 254 1,782 616 ------------ ------------ ------------ ------------ Total revenues 12,747 12,613 26,933 20,371 Expenses: Interest and fees on notes payable to affiliates 2,268 1,804 4,797 3,695 Interest and fees on notes payable - other 102 52 171 114 Interest on shares subject to mandatory redemption 67 -- 133 -- Salaries and benefits 3,477 4,098 7,554 7,594 Provision for (recovery of) loan and impairment losses 22 (56) 22 (22) Occupancy, data processing, communication and other 1,785 1,736 3,237 3,730 ------------ ------------ ------------ ------------ Total expenses 7,721 7,634 15,914 15,111 Earnings from continuing operations before income taxes and minority interest 5,026 4,979 11,019 5,260 Provision for income taxes (471) (133) (583) (254) ------------ ------------ ------------ ------------ Earnings from continuing operations before minority interest 4,555 4,846 10,436 5,006 Minority interest (1,006) (609) (2,038) (788) ------------ ------------ ------------ ------------ Earnings from continuing operations 3,549 4,237 8,398 4,218 Loss from discontinued operations (250) (420) (250) (420) ------------ ------------ ------------ ------------ Net earnings 3,299 3,817 8,148 3,798 Accumulated preferred dividends in arrears -- (67) -- (133) ------------ ------------ ------------ ------------ Net earnings to common stockholders $ 3,299 $ 3,750 $ 8,148 $ 3,665 ============ ============ ============ ============ Basic earnings per common share are as follows: Earnings from continuing operations $ 0.31 $ 0.37 $ 0.75 $ 0.37 Discontinued operations (0.02) (0.04) (0.02) (0.04) Net earnings per common share $ 0.29 $ 0.33 $ 0.73 $ 0.33 Wtd. avg. common shares outstanding 11,235 11,204 11,216 11,203 Diluted earnings per common share are as follows: Earnings from continuing operations $ 0.30 $ 0.37 $ 0.71 $ 0.37 Discontinued operations (0.02) (0.04) (0.02) (0.04) Net earnings per common share $ 0.28 $ 0.33 $ 0.69 $ 0.33 Wtd. avg. common shares outstanding 11,820 11,204 11,806 11,203
SELECTED UNAUDITED BALANCE SHEET DATA
JUNE 30, DECEMBER 31, 2004 2003 ----------- ----------- Cash $ 3,823 $ 2,745 Portfolio acquisition and resolution assets 91,971 80,428 Consumer assets 25,824 15,685 Deferred tax asset 20,101 20,101 Net assets of discontinued operations 5,527 6,150 Total assets 160,942 132,139 Notes payable to affiliates 97,856 88,628 Notes payable other 4,664 2,432 Preferred stock 3,978 3,846 Total common stockholders' equity 35,915 28,969
5 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------------- ----------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ SUMMARY OPERATING STATEMENT DATA FOR EACH BUSINESS Portfolio Asset Acquisition and Resolution: Revenues $ 7,470 $ 9,823 $ 16,412 $ 16,659 Expenses 5,024 5,243 9,923 10,268 ------------ ------------ ------------ ------------ Operating contribution before provision for loan and impairment losses 2,446 4,580 6,489 6,391 Provision for loan and impairment losses 22 (56) 22 (22) ------------ ------------ ------------ ------------ Operating contribution, net of direct taxes $ 2,424 $ 4,636 $ 6,467 $ 6,413 ============ ============ ============ ============ Consumer Lending: Revenues $ 5,137 $ 2,716 $ 10,177 $ 3,577 Expenses, net of minority interest 1,955 664 3,877 950 ------------ ------------ ------------ ------------ Operating contribution $ 3,182 $ 2,052 $ 6,300 $ 2,627 ============ ============ ============ ============ PORTFOLIO ASSET ACQUISITION AND RESOLUTION: OVERVIEW AGGREGATE PURCHASE PRICE OF PORTFOLIOS ACQUIRED: Acquisition partnerships Domestic $ 35,334 $ 6,750 $ 41,883 $ 6,750 Latin America 40,650 5,400 40,800 5,400 Europe 9,837 20,055 9,837 20,055 ------------ ------------ ------------ ------------ Total $ 85,821 $ 32,205 $ 92,520 $ 32,205 ============ ============ ============ ============
PURCHASE FIRSTCITY'S HISTORICAL ACQUISITIONS - ANNUAL: PRICE INVESTMENT - --------------------------------- ------------ ------------ 2004 year to date $ 92,520 $ 21,832 2003 129,192 22,944 2002 171,769 16,717 2001 224,927 24,319 2000 394,927 22,140 1999 210,799 11,203
JUNE 30, JUNE 30, 2004 2003 ------------ ------------ PORTFOLIO ACQUISITION AND RESOLUTION ASSETS BY REGION: Domestic $ 53,355 $ 41,011 Latin America 18,788 16,840 Europe 19,828 21,998 ------------ ------------ Total $ 91,971 $ 79,849 ============ ============
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------------- ----------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ REVENUES BY REGION: Domestic $ 4,185 $ 5,387 $ 8,328 $ 9,794 Latin America 2,265 3,795 4,862 5,220 Europe 1,020 641 3,222 1,645 ------------ ------------ ------------ ------------ Total $ 7,470 $ 9,823 $ 16,412 $ 16,659 ============ ============ ============ ============ REVENUES BY SOURCE: Equity earnings $ 2,639 $ 4,217 $ 6,814 $ 5,447 Servicing fees 3,716 4,086 6,748 7,593 Interest income - loans 642 1,062 1,165 2,158 Gain on sale of interest in equity investment -- -- -- -- Gain on resolution of Portfolio Assets 162 272 237 967 Other 311 186 1,448 494 ------------ ------------ ------------ ------------ Total $ 7,470 $ 9,823 $ 16,412 $ 16,659 ============ ============ ============ ============
6 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------------- ----------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ ANALYSIS OF EQUITY INVESTMENTS IN ACQUISITION PARTNERSHIPS: FIRSTCITY'S AVERAGE INVESTMENT IN ACQUISITION PARTNERSHIPS Domestic $ 37,162 $ 33,089 $ 36,951 $ 33,109 Latin America 1,065 1,036 1,054 1,040 Europe 12,200 11,628 13,158 11,535 Europe-Servicing subsidiaries 4,571 3,737 4,535 3,575 ------------ ------------ ------------ ------------ Total $ 54,998 $ 49,490 $ 55,698 $ 49,259 ============ ============ ============ ============ FIRSTCITY SHARE OF EQUITY EARNINGS (LOSS): Domestic $ 2,594 $ 3,264 $ 4,543 $ 5,611 Latin America (890) 390 (778) (1,670) Europe 789 460 2,573 1,187 Europe-Servicing subsidiaries 146 103 476 319 ------------ ------------ ------------ ------------ Total $ 2,639 $ 4,217 $ 6,814 $ 5,447 ============ ============ ============ ============ SELECTED OTHER DATA: AVERAGE INVESTMENT IN WHOLLY OWNED PORTFOLIO ASSETS AND LOANS RECEIVABLE: Domestic $ 10,500 $ 8,262 $ 8,509 $ 8,553 Latin America 16,770 14,816 15,284 14,877 Europe 1,426 1,001 1,805 715 ------------ ------------ ------------ ------------ Total $ 28,696 $ 24,079 $ 25,598 $ 24,145 ============ ============ ============ ============ INCOME FROM WHOLLY OWNED PORTFOLIO ASSETS AND LOANS RECEIVABLE: Domestic $ 250 $ 462 $ 446 $ 1,375 Latin America 537 855 913 1,733 Europe 17 17 43 17 ------------ ------------ ------------ ------------ Total $ 804 $ 1,334 $ 1,402 $ 3,125 ============ ============ ============ ============ SERVICING FEE REVENUES: Domestic partnerships: $ Collected $ 31,085 $ 40,644 $ 57,438 $ 64,694 Servicing fee revenue 1,223 1,541 2,261 2,582 Average servicing fee % 3.9% 3.8% 3.9% 4.0% Latin American partnerships: $ Collected $ 20,249 $ 13,513 $ 35,095 $ 30,025 Servicing fee revenue 2,400 2,484 4,356 4,879 Average servicing fee % 11.9% 18.4% 12.4% 16.2% Incentive service fees $ 93 $ 61 $ 131 $ 132 Total Service Fees: $ Collected $ 51,334 $ 54,157 $ 92,533 $ 94,719 Servicing fee revenue 3,716 4,086 6,748 7,593 Average servicing fee % 7.2% 7.5% 7.3% 8.0% SERVICING PORTFOLIO (FACE VALUE) Domestic $ 442,710 $ 361,957 Latin America 1,159,490 1,222,626 Europe 832,692 905,224 ------------ ------------ Total $ 2,434,892 $ 2,489,807 ============ ============ NUMBER OF PERSONNEL AT PERIOD END: Domestic 60 70 Latin America 144 166 ------------ ------------ Total personnel 204 236 ============ ============
7 FIRSTCITY FINANCIAL CORPORATION SUPPLEMENTAL INFORMATION (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------------------------------- -------------------------------- 2004 2003 2004 2003 -------------- -------------- -------------- -------------- CONSUMER LENDING: (1) Retail installment contracts acquired $ 177,549 $ 127,706 $ 421,670 $ 253,825 Origination characteristics: Face value to wholesale value 99.47% 98.71% 101.14% 98.79% Weighted average coupon 21.18% 21.04% 21.13% 20.97% Purchase discount (% of face value) 16.56% 17.50% 17.01% 17.29% Servicing portfolio (face value in $) 1,094,817 768,889 Defaults (% of original balance at time of default) 20.00% 21.46% Net loss on defaults after recovery 10.65% 11.07% Delinquencies (% of total serviced portfolio) 17.28% 6.00% Equity in earnings of Drive $ 5,118 $ 2,716 $ 10,155 $ 3,577 Minority interest (1,023) (543) (2,029) (715) -------------- -------------- -------------- -------------- Net equity in earnings of Drive $ 4,095 $ 2,173 $ 8,126 $ 2,862 ============== ============== ============== ==============
(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. 8 -----END PRIVACY-ENHANCED MESSAGE-----