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): March 15, 2012
FIRSTCITY FINANCIAL
CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
|
033-19694 |
|
76-0243729 |
(State of |
|
(Commission File |
|
(IRS Employer |
6400 Imperial Drive, Waco, Texas (Address of principal executive offices) |
|
76712 |
Registrants telephone number, including area code: (254) 761-2800
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On March 20, 2012, FirstCity Financial Corporation (the Company) issued a press release describing, among other things, its results of operations for the three-month and twelve-month periods ended December 31, 2011. A copy of the press release is attached hereto as Exhibit 99.1. Such information, including Exhibit 99.1, is furnished pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
Item 2.06. Material Impairments.
On March 15, 2012, FirstCity Financial Corporation (the Company) determined that certain of its equity investments in unconsolidated Mexican subsidiaries and a consolidated Mexican subsidiary were impaired. As a result, the Company recorded non-cash net impairment charges of $9.2 million on its impaired investments in these Mexican subsidiaries during the quarterly period ended December 31, 2011.
The Companys investments in the unconsolidated subsidiaries consist of 8-15% ownership interests in Mexican investment entities that acquired interests in residential and commercial non-performing loan portfolios from financial institutions in Mexico. The Company accounts for its equity investments in these subsidiaries under the equity method of accounting. The Company obtained pricing information on similar assets that revealed the carrying value of its investments in the unconsolidated Mexican subsidiaries was less than fair value and, as a result, the Company evaluated these investments for impairment. The Company recorded a non-cash impairment charge of $7.4 million on its impaired investments in the unconsolidated Mexican subsidiaries during the quarterly period ended December 31, 2011. The Companys carrying value of its investments in these subsidiaries, after the impairment charge, approximated $4.6 million at December 31, 2011. It is not anticipated that the impairment charge will result in future cash expenditures by the Company.
The Companys investment in the consolidated subsidiary consists of a 58% ownership interest in a Mexican investment entity that acquired interests in non-performing residential loans from a financial institution in Mexico. The Company determined that it expected to sell or otherwise dispose of this consolidated Mexican subsidiary (and two other consolidated, wholly-owned Mexican subsidiaries) over the next twelve months. In connection with the Companys disposal plan and expectations, each consolidated subsidiary was determined to be a separate disposal group, and the assets and liabilities of each subsidiary were measured at the lower of their respective carrying amount or estimated fair value (less costs to sell) and classified as held for sale on the Companys consolidated balance sheet. The Company determined that the carrying value of its majority-owned Mexican subsidiary exceeded its estimated fair value, less estimated costs to sell, by $3.1 million (of which $1.8 million was attributed to FirstCity). As such, the Company recognized a net impairment charge of $1.8 million during the quarterly period ended December 31, 2011. The estimated fair values for the two wholly-owned Mexican subsidiaries, less estimated costs to sell, exceeded their respective carrying values. It is not anticipated that the impairment charge will result in future cash expenditures by the Company.
Item 7.01. Regulation FD Disclosure.
The following information is being provided pursuant to Item 7.01. Such information, including Exhibit 99.1 attached hereto, should not be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
The information contained under Item 2.02 is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits:
99.1 Press release dated March 20, 2012.
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.
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FIRSTCITY FINANCIAL CORPORATION | |
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| |
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| |
Date: March 20, 2012 |
By: |
/s/ J. Bryan Baker |
|
|
J. Bryan Baker |
|
|
Senior Vice President and Chief Financial Officer |
EXHIBIT 99.1
N E W S R E L E A S E
Contact: |
Suzy W. Taylor |
|
866-652-1810 |
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|
|
FirstCity Financial Corporation Reports Fourth Quarter and Full Year 2011 Results
Waco, Texas March 20, 2012 .
Highlights and Key Points:
· FirstCity reported fourth quarter 2011 earnings of $15.3 million or $1.47 per diluted share, and fiscal year 2011 earnings of $24.2 million or $2.33 per diluted share.
· Fourth quarter 2011 earnings included a $26.5 million non-cash gain related to a debt refinancing transaction, and $9.2 million of non-cash impairment charges recorded to the Companys investments in Mexico.
· FirstCity and its partners acquired $106.9 million of portfolio assets with a face value of $232.6 million during the fourth quarter of 2011. For the 2011 fiscal year, FirstCity and its partners acquired $287.3 million of portfolio assets with a face value of $558.1 million.
· FirstCity invested $7.6 million in non-portfolio debt and equity investments during the quarter, bringing year-to-date totals to $36.0 million.
Components of FirstCitys quarterly results are summarized below:
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
(Dollars in thousands, except per share data) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
|
(Unaudited) |
| ||||||||||
Continuing Operations: |
|
|
|
|
|
|
|
|
| ||||
Portfolio Asset Acquisition and Resolution |
|
$ |
17,225 |
|
$ |
1,961 |
|
$ |
27,950 |
|
$ |
4,756 |
|
Special Situations Platform |
|
599 |
|
2,029 |
|
4,068 |
|
11,710 |
| ||||
Corporate and other |
|
(2,490 |
) |
(1,864 |
) |
(7,801 |
) |
(7,925 |
) | ||||
Earnings from continuing operations |
|
15,334 |
|
2,126 |
|
24,217 |
|
8,541 |
| ||||
Income from discontinued operations - Special Situations Platform (1) |
|
|
|
(348 |
) |
|
|
3,962 |
| ||||
Net earnings attributable to FirstCity |
|
$ |
15,334 |
|
$ |
1,778 |
|
$ |
24,217 |
|
$ |
12,503 |
|
Diluted earnings per common share |
|
$ |
1.47 |
|
$ |
0.17 |
|
$ |
2.33 |
|
$ |
1.23 |
|
(1) Represents the results of operations of the Companys consolidated coal mine that dissolved in December 2010.
Portfolio Asset Acquisition and Resolution Business Segment
For the fourth quarter of 2011 (Q4 2011), our Portfolio Asset Acquisition and Resolution business segment reported $17.2 million in earnings comprised primarily of a $26.5 million non-cash gain related to a debt refinancing transaction, $13.5 million in revenues, $5.4 million of equity losses from unconsolidated subsidiaries, and $17.8 million of operating costs and expenses.
(more)
For fiscal year 2011 (FY 2011), our Portfolio Asset Acquisition and Resolution business segment reported $28.0 million in earnings comprised primarily of a $26.5 million one-time, non-cash gain related to a debt refinancing transaction (see the Other Corporate Matters section below for additional discussion), $63.9 million in revenues, $0.6 million of equity losses from unconsolidated subsidiaries, $52.1 million of operating costs and expenses, $4.2 million of net provisions to consolidated assets, and $7.7 million of net income attributable to noncontrolling interests.
Net earnings for Q4 2011 and FY 2011 were impacted by continued revenue streams from our core investment activities and servicing platform (due primarily to increased collections), along with the following significant accounting events:
· The $26.5 million non-cash debt-related gain recognized in Q4 2011;
· Net impairment charges of $9.2 million recorded to our Mexican core business investments in Q4 2011. This net impairment charge was comprised of the following:
· $7.4 million write-down on our investments in unconsolidated Mexican Acquisition Partnerships (included in equity income (loss) from unconsolidated subsidiaries). This write-down to our unconsolidated subsidiaries resulted primarily from pricing information obtained on similar assets in Q4 2011 that revealed an economic loss in value of our unconsolidated subsidiaries that would not likely be recovered over time.
· $1.8 million write-down on our net investment in a majority-owned Mexican Acquisition Partnership (comprised of a $3.1 million consolidated impairment charge included in other costs and expenses, off-set partially by the minority investors share of $1.3 million included in net income attributable to noncontrolling interests). This net write-down to our consolidated subsidiary resulted from a lower-of-cost-or-market adjustment upon the subsidiarys classification as held for sale in Q4 2011 due to managements expectation to sell this subsidiary (and two other consolidated Mexican subsidiaries) over the next twelve months. The fair values of the other subsidiaries exceeded their carrying amounts.
Additional information related to our Portfolio Asset Acquisition and Resolution business segment for Q4 2011 and FY 2011, including investment activity and the major components of revenue, costs and expenses, is included in the supplemental schedules of this release.
The Companys unrealized gross profit associated with its core portfolio assets totaled $117.0 million at December 31, 2011. Unrealized gross profit is a non-GAAP measure. Refer to the Schedule of Estimated Unrealized Gross Profit from Portfolio Assets on page 10 of this release for a reconciliation of this measure with the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Special Situations Platform Business Segment
Our Special Situations Platform business segment provided $0.6 million in earnings for Q4 2011 comprised primarily of $2.8 million in revenues, $0.3 million in equity losses from unconsolidated subsidiaries, and $1.7 million of operating costs and expenses. For FY 2011, our Special Situations Platform business segment provided $4.1 million in earnings comprised primarily of $10.2 million in revenues, $2.9 million in equity income from unconsolidated subsidiaries, $8.0 million of operating costs and expenses, and $1.2 million of net income attributable to noncontrolling interests. Net earnings for FY 2011 were positively impacted by continued revenue streams from our consolidated railroad operations and other portfolio company investments, and a decline in real estate loss provisions.
Additional information related to our Special Situations Platform business segment for Q4 2011 and FY 2011, including the major components of revenue, costs and expenses, is included in the supplemental schedules of this release.
Other Corporate Matters
As reported in our December 20, 2011 news release and in our Current Report on Form 8-K filed with the SEC on December 23, 2011, FirstCity refinanced its senior credit facility with Bank of Scotland, which had an unpaid principal balance of approximately $173.2 million at closing. As a result, FirstCitys primary obligation under this loan facility, as amended (BoS Facility A), was reduced by the assumption of $25.0 million of debt (BoS Facility B) by a newly-formed, wholly-owned subsidiary of FirstCity, combined with a $53.4 million reduction from proceeds obtained by FirstCity from its new $50.0 million credit facility with Bank of America and other cash payments at closing. FirstCitys remaining $94.8 million debt obligation under BoS Facility A (post-closing) carries a 0.25% annual interest rate through maturity (December 2014), and allows for repayment over time as cash flows from the underlying pledged assets are realized. FirstCitys $25.0 million debt obligation under BoS Facility B does not bear interest, and allows for repayment over time as cash flows from the underlying pledged assets are realized, if any (FirstCity has not received any significant cash flows from these underlying assets and has not allocated any value to these assets for the past two years). As a result of its December 2011 debt refinancing arrangements, FirstCity was able to significantly reduce its aggregate future cash outlay to Bank of Scotland and Bank of America under these new loan facilities in comparison to the repayment terms under its former senior credit facility with Bank of Scotland which, in turn, will provide more liquidity in the future to fund investment opportunities. FirstCity recognized a $26.5 million non-cash gain in Q4 2011 in connection with this debt refinancing transaction, as FirstCity effectively reduced the carrying amount of debt on its balance sheet.
Conference Call
A conference call will be held on Tuesday, March 20, 2012 at 9:00 a.m. Central Time to discuss Q4 2011 and FY 2011 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 Fourth Quarter 2011 Conference Call | ||
Date: |
Tuesday, March 20, 2012 | ||
Time: |
9:00 a.m. Central Time | ||
Host: |
James T. Sartain, FirstCitys President and Chief Executive Officer | ||
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| |
Web Access: |
FirstCitys web page - |
www.fcfc.com/invest.htm or, | |
|
CCBNs Investor websites - |
www.streetevents.com and, | |
|
|
www.earnings.com | |
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| |
Dial In Access: |
Domestic |
800-299-7635 | |
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International |
617-786-2901 | |
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Passcode |
67414586 | |
Replay available on FirstCitys web page (www.fcfc.com/invest.htm)
FirstCity Financial Corporation is a diversified financial services company with operations dedicated primarily to distressed asset acquisitions and special situations investments. FirstCity has offices in the U.S. and affiliate organizations in Europe and Latin America. FirstCity common stock is listed on the NASDAQ Global Select Market (NASDAQ: FCFC).
Cautionary Statement Regarding Forward-Looking Statements
FirstCity may from time to time make written or oral forward-looking statements, including statements contained in this press release, FirstCitys filings with the Securities and Exchange Commission (SEC), in its reports to stockholders and in other FirstCity communications. These statements relate to FirstCitys or managements intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future 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. The forward-looking statements in this press release are based upon managements beliefs, assumptions and expectations of the Companys future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors and risks, including the precautionary statements included in this document and those contained from time to time in the Companys filings with the SEC including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K, filed with the SEC and available through the Companys website, which contain a more detailed discussion of the Companys business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the SEC or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Companys expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.
FirstCity Financial Corporation
Summary of Operations and Selected Balance Sheet Data
(Dollars in thousands, except per share data)
(Unaudited)
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
| ||||
Finance and Servicing: |
|
|
|
|
|
|
|
|
| ||||
Servicing fees |
|
$ |
3,331 |
|
$ |
2,660 |
|
$ |
11,065 |
|
$ |
8,658 |
|
Income from Portfolio Assets |
|
6,720 |
|
11,691 |
|
40,622 |
|
45,971 |
| ||||
Gain on sale of SBA loans held for sale, net |
|
425 |
|
294 |
|
2,261 |
|
654 |
| ||||
Gain on sale of investment security |
|
90 |
|
|
|
90 |
|
3,250 |
| ||||
Interest income from SBA loans |
|
409 |
|
317 |
|
1,433 |
|
1,212 |
| ||||
Interest income from loans receivable |
|
865 |
|
937 |
|
3,548 |
|
4,122 |
| ||||
Other income |
|
2,558 |
|
1,959 |
|
8,309 |
|
6,511 |
| ||||
|
|
14,398 |
|
17,858 |
|
67,328 |
|
70,378 |
| ||||
Manufacturing and Railroad Operations: |
|
|
|
|
|
|
|
|
| ||||
Operating revenues - manufacturing |
|
|
|
|
|
|
|
10,466 |
| ||||
Operating revenues - railroad |
|
1,972 |
|
1,261 |
|
6,989 |
|
4,720 |
| ||||
|
|
1,972 |
|
1,261 |
|
6,989 |
|
15,186 |
| ||||
Total revenues |
|
16,370 |
|
19,119 |
|
74,317 |
|
85,564 |
| ||||
Costs and expenses: |
|
|
|
|
|
|
|
|
| ||||
Finance and Servicing: |
|
|
|
|
|
|
|
|
| ||||
Interest and fees on notes payable to banks and other |
|
2,876 |
|
4,007 |
|
13,032 |
|
14,594 |
| ||||
Interest and fees on note payable to affiliate |
|
362 |
|
387 |
|
1,502 |
|
1,572 |
| ||||
Salaries and benefits |
|
6,760 |
|
5,217 |
|
22,794 |
|
21,284 |
| ||||
Provision for loan and impairment losses |
|
1,795 |
|
877 |
|
4,165 |
|
9,294 |
| ||||
Asset-level expenses |
|
1,378 |
|
1,871 |
|
6,094 |
|
7,852 |
| ||||
Other |
|
7,448 |
|
3,767 |
|
16,429 |
|
12,427 |
| ||||
|
|
20,619 |
|
16,126 |
|
64,016 |
|
67,023 |
| ||||
Manufacturing and Railroad Operations: |
|
|
|
|
|
|
|
|
| ||||
Cost of revenues and operating costs - manufacturing |
|
|
|
|
|
|
|
10,788 |
| ||||
Cost of revenues and operating costs - railroad |
|
1,605 |
|
871 |
|
4,583 |
|
2,739 |
| ||||
|
|
1,605 |
|
871 |
|
4,583 |
|
13,527 |
| ||||
Total costs and expenses |
|
22,224 |
|
16,997 |
|
68,599 |
|
80,550 |
| ||||
Earnings (loss) before other revenue and income taxes |
|
(5,854 |
) |
2,122 |
|
5,718 |
|
5,014 |
| ||||
Equity income (loss) from unconsolidated subsidiaries |
|
(5,700 |
) |
602 |
|
2,231 |
|
14,609 |
| ||||
Gain on business combination |
|
|
|
3,704 |
|
433 |
|
4,595 |
| ||||
Gain on debt extinguishment |
|
26,543 |
|
|
|
26,543 |
|
|
| ||||
Gain on sale of subsidiaries |
|
1,813 |
|
|
|
1,818 |
|
|
| ||||
Earnings from continuing operations before income taxes |
|
16,802 |
|
6,428 |
|
36,743 |
|
24,218 |
| ||||
Income tax expense |
|
1,655 |
|
1,060 |
|
3,702 |
|
2,252 |
| ||||
Earnings from continuing operations, net of tax |
|
15,147 |
|
5,368 |
|
33,041 |
|
21,966 |
| ||||
Income (loss) from discontinued operations |
|
|
|
(348 |
) |
|
|
3,962 |
| ||||
Net earnings |
|
15,147 |
|
5,020 |
|
33,041 |
|
25,928 |
| ||||
Less: net income (loss) attributable to noncontrolling interests |
|
(187 |
) |
3,242 |
|
8,824 |
|
13,425 |
| ||||
Net earnings attributable to FirstCity |
|
$ |
15,334 |
|
$ |
1,778 |
|
$ |
24,217 |
|
$ |
12,503 |
|
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share of common stock: |
|
|
|
|
|
|
|
|
| ||||
Earnings from continuing operations |
|
$ |
1.48 |
|
$ |
0.20 |
|
$ |
2.34 |
|
$ |
0.85 |
|
Discontinued operations |
|
$ |
|
|
$ |
(0.03 |
) |
$ |
|
|
$ |
0.39 |
|
Net earnings per common share |
|
$ |
1.48 |
|
$ |
0.17 |
|
$ |
2.34 |
|
$ |
1.24 |
|
Weighted average common shares outstanding (in thousands) |
|
10,294 |
|
10,205 |
|
10,283 |
|
10,092 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Diluted earnings per share of common stock: |
|
|
|
|
|
|
|
|
| ||||
Earnings from continuing operations |
|
$ |
1.47 |
|
$ |
0.20 |
|
$ |
2.33 |
|
$ |
0.84 |
|
Discontinued operations |
|
$ |
|
|
$ |
(0.03 |
) |
$ |
|
|
$ |
0.39 |
|
Net earnings per common share |
|
$ |
1.47 |
|
$ |
0.17 |
|
$ |
2.33 |
|
$ |
1.23 |
|
Weighted average common shares outstanding (in thousands) |
|
10,342 |
|
10,312 |
|
10,304 |
|
10,197 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
December 31, |
|
December 31, |
|
|
|
|
| ||||
|
|
2011 |
|
2010 |
|
|
|
|
| ||||
|
|
(Unaudited) |
|
|
|
|
|
|
| ||||
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
|
$ |
34,802 |
|
$ |
46,597 |
|
|
|
|
| ||
Earning assets: |
|
|
|
|
|
|
|
|
| ||||
Portfolio Asset Acquisition and Resolution assets: |
|
|
|
|
|
|
|
|
| ||||
United States |
|
199,093 |
|
241,589 |
|
|
|
|
| ||||
Latin America |
|
17,048 |
|
39,476 |
|
|
|
|
| ||||
Europe |
|
41,447 |
|
68,642 |
|
|
|
|
| ||||
Special Situations Platform assets - U.S. |
|
51,099 |
|
50,765 |
|
|
|
|
| ||||
Service fees receivable and other assets |
|
12,857 |
|
13,335 |
|
|
|
|
| ||||
Total assets |
|
$ |
356,346 |
|
$ |
460,404 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||||
Notes payable to banks and debt obligations |
|
$ |
189,936 |
|
$ |
293,034 |
|
|
|
|
| ||
Notes payable to affiliates |
|
|
|
11,805 |
|
|
|
|
| ||||
Other liabilities |
|
29,007 |
|
30,825 |
|
|
|
|
| ||||
Total liabilities |
|
218,943 |
|
335,664 |
|
|
|
|
| ||||
FirstCity stockholders equity |
|
111,976 |
|
88,342 |
|
|
|
|
| ||||
Noncontrolling interests |
|
25,427 |
|
36,398 |
|
|
|
|
| ||||
Total equity |
|
137,403 |
|
124,740 |
|
|
|
|
| ||||
Total liabilities and equity |
|
$ |
356,346 |
|
$ |
460,404 |
|
|
|
|
|
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Summary Operating Statement Data for Business Segments |
|
|
|
|
|
|
|
|
| ||||
Portfolio Asset Acquisition and Resolution segment: |
|
|
|
|
|
|
|
|
| ||||
Revenues |
|
$ |
13,495 |
|
$ |
17,029 |
|
$ |
63,877 |
|
$ |
66,387 |
|
Equity losses from unconsolidated subsidiaries |
|
(5,405 |
) |
(1,440 |
) |
(624 |
) |
(1,693 |
) | ||||
Gain on sale of subsidiaries |
|
1,813 |
|
|
|
1,818 |
|
|
| ||||
Gain on business combinations |
|
|
|
3,704 |
|
278 |
|
4,595 |
| ||||
Gain on debt extinguishment |
|
26,543 |
|
|
|
26,543 |
|
|
| ||||
Costs and expenses |
|
(17,752 |
) |
(13,463 |
) |
(52,123 |
) |
(47,980 |
) | ||||
Operating contribution before provision for loan and impairment losses and noncontrolling interest expense |
|
18,694 |
|
5,830 |
|
39,769 |
|
21,309 |
| ||||
Provision for loan and impairment losses, net |
|
(1,795 |
) |
(877 |
) |
(4,165 |
) |
(6,271 |
) | ||||
Net (income) loss attributable to noncontrolling interests |
|
326 |
|
(2,992 |
) |
(7,654 |
) |
(10,282 |
) | ||||
Operating contribution, net of direct taxes |
|
$ |
17,225 |
|
$ |
1,961 |
|
$ |
27,950 |
|
$ |
4,756 |
|
|
|
|
|
|
|
|
|
|
| ||||
Special Situations Platform segment: |
|
|
|
|
|
|
|
|
| ||||
Revenues |
|
$ |
2,766 |
|
$ |
2,050 |
|
$ |
10,190 |
|
$ |
19,043 |
|
Equity income (loss) from unconsolidated subsidiaries |
|
(295 |
) |
2,042 |
|
2,855 |
|
16,302 |
| ||||
Gain on business combination |
|
|
|
|
|
155 |
|
|
| ||||
Costs and expenses |
|
(1,733 |
) |
(1,813 |
) |
(7,962 |
) |
(17,469 |
) | ||||
Operating contribution before provision for loan and impairment losses and noncontrolling interest expense |
|
738 |
|
2,279 |
|
5,238 |
|
17,876 |
| ||||
Provision for loan and impairment losses |
|
|
|
|
|
|
|
(3,023 |
) | ||||
Net income attributable to noncontrolling interests |
|
(139 |
) |
(250 |
) |
(1,170 |
) |
(3,143 |
) | ||||
Operating contribution, net of direct taxes |
|
$ |
599 |
|
$ |
2,029 |
|
$ |
4,068 |
|
$ |
11,710 |
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Portfolio Asset Acquisition and Resolution segment: |
|
|
|
|
|
|
|
|
| ||||
Revenues and equity income of investments by region: |
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
10,354 |
|
$ |
10,680 |
|
$ |
42,180 |
|
$ |
42,432 |
|
Latin America |
|
(6,305 |
) |
2,417 |
|
2,230 |
|
9,576 |
| ||||
Europe |
|
4,041 |
|
2,492 |
|
18,843 |
|
12,686 |
| ||||
Total |
|
$ |
8,090 |
|
$ |
15,589 |
|
$ |
63,253 |
|
$ |
64,694 |
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues and equity income of investments by source: |
|
|
|
|
|
|
|
|
| ||||
Equity losses from unconsolidated subsidiaries |
|
$ |
(5,405 |
) |
$ |
(1,440 |
) |
$ |
(624 |
) |
$ |
(1,693 |
) |
Income from Portfolio Assets |
|
6,720 |
|
11,691 |
|
40,622 |
|
45,971 |
| ||||
Servicing fees |
|
3,331 |
|
2,660 |
|
11,065 |
|
8,658 |
| ||||
Gain on sale of investment security |
|
90 |
|
|
|
90 |
|
3,250 |
| ||||
Gain on sale of SBA loans held for sale, net |
|
425 |
|
294 |
|
2,261 |
|
654 |
| ||||
Interest income from SBA loans |
|
409 |
|
317 |
|
1,433 |
|
1,212 |
| ||||
Interest income from loans receivable |
|
392 |
|
397 |
|
1,562 |
|
1,768 |
| ||||
Other |
|
2,128 |
|
1,670 |
|
6,844 |
|
4,874 |
| ||||
Total |
|
$ |
8,090 |
|
$ |
15,589 |
|
$ |
63,253 |
|
$ |
64,694 |
|
|
|
|
|
|
|
|
|
|
| ||||
Special Situations Platform segment: |
|
|
|
|
|
|
|
|
| ||||
Revenues and equity income of investments by source: |
|
|
|
|
|
|
|
|
| ||||
Equity income (loss) from unconsolidated subsidiaries |
|
$ |
(295 |
) |
$ |
2,042 |
|
$ |
2,855 |
|
$ |
16,302 |
|
Interest income from loans receivable |
|
473 |
|
540 |
|
1,986 |
|
2,354 |
| ||||
Operating revenue - railroad |
|
1,972 |
|
1,261 |
|
6,989 |
|
4,720 |
| ||||
Operating revenue - manufacturing |
|
|
|
|
|
|
|
10,466 |
| ||||
Other |
|
321 |
|
249 |
|
1,215 |
|
1,503 |
| ||||
Total |
|
$ |
2,471 |
|
$ |
4,092 |
|
$ |
13,045 |
|
$ |
35,345 |
|
|
|
|
|
|
|
|
|
|
| ||||
Number of personnel at period end: |
|
|
|
|
|
|
|
|
| ||||
U.S. - Portfolio Asset Acquisition and Resolution segment |
|
91 |
|
88 |
|
|
|
|
| ||||
U.S. - Special Situations Platform segment |
|
39 |
|
29 |
|
|
|
|
| ||||
Latin America |
|
116 |
|
117 |
|
|
|
|
| ||||
Corporate |
|
30 |
|
30 |
|
|
|
|
| ||||
Total personnel |
|
276 |
|
264 |
|
|
|
|
|
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Analysis of Equity Investments |
|
|
|
|
|
|
|
|
| ||||
FirstCitys average investment: |
|
|
|
|
|
|
|
|
| ||||
U.S. - Portfolio Asset Acquisition and Resolution segment |
|
$ |
57,775 |
|
$ |
33,299 |
|
$ |
47,384 |
|
$ |
24,141 |
|
U.S. - Special Situations Platform segment |
|
13,381 |
|
15,763 |
|
13,336 |
|
7,556 |
| ||||
Latin America |
|
11,071 |
|
15,934 |
|
13,456 |
|
16,782 |
| ||||
Europe |
|
|
|
3,193 |
|
(19 |
) |
5,686 |
| ||||
Europe - servicing subsidiaries |
|
35,058 |
|
33,064 |
|
35,159 |
|
28,499 |
| ||||
Latin America - servicing subsidiaries |
|
2,936 |
|
2,095 |
|
3,053 |
|
2,081 |
| ||||
Total |
|
$ |
120,221 |
|
$ |
103,348 |
|
$ |
112,369 |
|
$ |
84,745 |
|
|
|
|
|
|
|
|
|
|
| ||||
FirstCitys share of equity income (loss): |
|
|
|
|
|
|
|
|
| ||||
U.S. - Portfolio Asset Acquisition and Resolution segment |
|
$ |
2,144 |
|
$ |
(134 |
) |
$ |
3,664 |
|
$ |
(195 |
) |
U.S. - Special Situations Platform segment |
|
(295 |
) |
2,042 |
|
2,855 |
|
16,302 |
| ||||
Latin America |
|
(9,001 |
) |
(157 |
) |
(10,153 |
) |
(662 |
) | ||||
Europe |
|
|
|
(2,761 |
) |
29 |
|
(4,884 |
) | ||||
Europe - servicing subsidiaries |
|
1,325 |
|
1,509 |
|
5,150 |
|
4,783 |
| ||||
Latin America - servicing subsidiaries |
|
127 |
|
103 |
|
686 |
|
(735 |
) | ||||
Total |
|
$ |
(5,700 |
) |
$ |
602 |
|
$ |
2,231 |
|
$ |
14,609 |
|
|
|
|
|
|
|
|
|
|
| ||||
Selected Other Data: |
|
|
|
|
|
|
|
|
| ||||
Average investment in consolidated portfolio assets and loans receivable: |
|
|
|
|
|
|
|
|
| ||||
U.S. - Portfolio Asset Acquisition and Resolution segment |
|
$ |
147,510 |
|
$ |
208,229 |
|
$ |
169,799 |
|
$ |
213,334 |
|
U.S. - Special Situations Platform segment |
|
23,037 |
|
23,624 |
|
23,136 |
|
27,170 |
| ||||
Latin America |
|
12,007 |
|
17,625 |
|
15,920 |
|
18,089 |
| ||||
Europe |
|
5,950 |
|
17,217 |
|
10,251 |
|
16,583 |
| ||||
Total |
|
$ |
188,504 |
|
$ |
266,695 |
|
$ |
219,106 |
|
$ |
275,176 |
|
|
|
|
|
|
|
|
|
|
| ||||
Income from consolidated portfolio assets and loans receivable: |
|
|
|
|
|
|
|
|
| ||||
U.S. - Portfolio Asset Acquisition and Resolution segment |
|
$ |
4,799 |
|
$ |
8,471 |
|
$ |
28,626 |
|
$ |
33,971 |
|
U.S. - Special Situations Platform segment |
|
473 |
|
540 |
|
1,986 |
|
2,354 |
| ||||
Latin America |
|
927 |
|
662 |
|
5,212 |
|
3,747 |
| ||||
Europe |
|
2,220 |
|
3,566 |
|
12,040 |
|
11,887 |
| ||||
Total |
|
$ |
8,419 |
|
$ |
13,239 |
|
$ |
47,864 |
|
$ |
51,959 |
|
|
|
|
|
|
|
|
|
|
| ||||
Servicing fee revenues: |
|
|
|
|
|
|
|
|
| ||||
Portfolio assets - U.S. partnerships: |
|
|
|
|
|
|
|
|
| ||||
Servicing fee revenue |
|
$ |
1,799 |
|
$ |
1,021 |
|
$ |
4,891 |
|
$ |
2,007 |
|
Average servicing fee |
|
3.1 |
% |
3.2 |
% |
3.2 |
% |
3.3 |
% | ||||
Portfolio assets - Latin American partnerships: |
|
|
|
|
|
|
|
|
| ||||
Servicing fee revenue |
|
$ |
1,348 |
|
$ |
1,499 |
|
$ |
5,457 |
|
$ |
6,183 |
|
Average servicing fee % |
|
21.2 |
% |
31.9 |
% |
23.5 |
% |
27.6 |
% | ||||
Total service fees - Portfolio Assets: |
|
|
|
|
|
|
|
|
| ||||
Servicing fee revenue |
|
$ |
3,147 |
|
$ |
2,520 |
|
$ |
10,348 |
|
$ |
8,190 |
|
Average servicing fee % |
|
4.9 |
% |
6.8 |
% |
5.8 |
% |
9.8 |
% | ||||
Service fees - SBA loans |
|
$ |
184 |
|
$ |
140 |
|
$ |
717 |
|
$ |
468 |
|
Total Service Fees |
|
$ |
3,331 |
|
$ |
2,660 |
|
$ |
11,065 |
|
$ |
8,658 |
|
|
|
|
|
|
|
|
|
|
| ||||
Collections: |
|
|
|
|
|
|
|
|
| ||||
U.S. unconsolidated partnerships |
|
$ |
57,753 |
|
$ |
32,135 |
|
$ |
155,166 |
|
$ |
61,356 |
|
Latin American unconsolidated partnerships |
|
7,766 |
|
6,484 |
|
28,506 |
|
28,666 |
| ||||
European unconsolidated partnerships |
|
|
|
6,525 |
|
|
|
18,634 |
| ||||
Total unconsolidated partnership collections |
|
65,519 |
|
45,144 |
|
183,672 |
|
108,656 |
| ||||
U.S. consolidated partnerships |
|
12,503 |
|
25,718 |
|
89,749 |
|
103,744 |
| ||||
Latin American consolidated partnerships |
|
644 |
|
312 |
|
4,496 |
|
2,920 |
| ||||
European consolidated partnerships |
|
6,055 |
|
5,590 |
|
33,782 |
|
19,002 |
| ||||
Total consolidated partnership collections |
|
19,202 |
|
31,620 |
|
128,027 |
|
125,666 |
| ||||
Total collections |
|
$ |
84,721 |
|
$ |
76,764 |
|
$ |
311,699 |
|
$ |
234,322 |
|
|
|
|
|
|
|
|
|
|
| ||||
Servicing portfolio (face value) at period end: |
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
1,331,859 |
|
$ |
1,164,642 |
|
|
|
|
| ||
Latin America |
|
1,392,535 |
|
1,559,372 |
|
|
|
|
| ||||
Europe |
|
1,216,407 |
|
1,200,508 |
|
|
|
|
| ||||
Total |
|
$ |
3,940,801 |
|
$ |
3,924,522 |
|
|
|
|
|
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands)
(Unaudited)
Portfolio Purchases and Other Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCity |
|
|
| ||||||||
|
|
Portfolio Purchases |
|
FirstCity |
|
FirstCity |
|
Investment |
|
|
| ||||||||||||||
|
|
United |
|
|
|
Latin |
|
|
|
Investment |
|
Investment |
|
in Special |
|
|
| ||||||||
|
|
States |
|
Europe |
|
America |
|
Total |
|
in Portfolios |
|
in Other |
|
Situations |
|
Total |
| ||||||||
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
4th Quarter |
|
$ |
105,075 |
|
$ |
1,798 |
|
$ |
|
|
$ |
106,873 |
|
$ |
12,342 |
|
$ |
7,554 |
|
$ |
|
|
$ |
19,896 |
|
3rd Quarter |
|
87,112 |
|
594 |
|
|
|
87,706 |
|
18,728 |
|
7,814 |
|
2,601 |
|
29,143 |
| ||||||||
2nd Quarter |
|
81,653 |
|
|
|
|
|
81,653 |
|
22,159 |
|
7,396 |
|
|
|
29,555 |
| ||||||||
1st Quarter |
|
11,091 |
|
|
|
|
|
11,091 |
|
4,810 |
|
9,931 |
|
700 |
|
15,441 |
| ||||||||
Total Year 2011 |
|
$ |
284,931 |
|
$ |
2,392 |
|
$ |
|
|
$ |
287,323 |
|
$ |
58,039 |
|
$ |
32,695 |
|
$ |
3,301 |
|
$ |
94,035 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
4th Quarter |
|
$ |
51,059 |
|
$ |
|
|
$ |
|
|
$ |
51,059 |
|
$ |
14,473 |
|
$ |
14,314 |
|
$ |
175 |
|
$ |
28,962 |
|
3rd Quarter |
|
15,025 |
|
|
|
|
|
15,025 |
|
10,513 |
|
4,956 |
|
148 |
|
15,617 |
| ||||||||
2nd Quarter |
|
141,566 |
|
|
|
|
|
141,566 |
|
28,122 |
|
14,482 |
|
8,107 |
|
50,711 |
| ||||||||
1st Quarter |
|
18,114 |
|
|
|
|
|
18,114 |
|
14,605 |
|
9,005 |
|
4,790 |
|
28,400 |
| ||||||||
Total Year 2010 |
|
$ |
225,764 |
|
$ |
|
|
$ |
|
|
$ |
225,764 |
|
$ |
67,713 |
|
$ |
42,757 |
|
$ |
13,220 |
|
$ |
123,690 |
|
Total Year 2009 |
|
$ |
200,590 |
|
$ |
|
|
$ |
|
|
$ |
200,590 |
|
$ |
147,654 |
|
$ |
33,873 |
|
$ |
12,415 |
|
$ |
193,942 |
|
Total Year 2008 |
|
$ |
64,394 |
|
$ |
1,823 |
|
$ |
23,097 |
|
$ |
89,314 |
|
$ |
72,307 |
|
$ |
33,007 |
|
$ |
19,906 |
|
$ |
125,220 |
|
Portfolio Asset Acquisition and Resolution segment:
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
Aggregate purchase price of portfolios acquired: |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Acquisition partnerships |
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
105,075 |
|
$ |
51,059 |
|
$ |
284,931 |
|
$ |
225,764 |
|
Latin America |
|
|
|
|
|
|
|
|
| ||||
Europe |
|
1,798 |
|
|
|
2,392 |
|
|
| ||||
Total |
|
$ |
106,873 |
|
$ |
51,059 |
|
$ |
287,323 |
|
$ |
225,764 |
|
|
|
Purchase |
|
FirstCitys |
| ||
Historical acquisitions of Portfolios - annual: |
|
Price |
|
Investment |
| ||
Total 2011 |
|
$ |
287,323 |
|
$ |
58,039 |
|
2010 |
|
225,764 |
|
67,713 |
| ||
2009 |
|
200,590 |
|
147,654 |
| ||
2008 |
|
89,314 |
|
72,307 |
| ||
2007 |
|
214,333 |
|
126,714 |
| ||
|
|
December 31, |
|
December 31, |
| ||
Portfolio acquisition and resolution assets by region: |
|
2011 |
|
2010 |
| ||
United States |
|
$ |
199,093 |
|
$ |
241,589 |
|
Latin America |
|
17,048 |
|
39,476 |
| ||
Europe |
|
41,447 |
|
68,642 |
| ||
Total |
|
$ |
257,588 |
|
$ |
349,707 |
|
Special Situations Platform segment:
|
|
Total |
|
FirstCity Denvers Investment |
| ||||||||
Historical investments - annual: |
|
Investment |
|
Debt |
|
Equity |
|
Total |
| ||||
Total 2011 |
|
$ |
3,301 |
|
$ |
1,200 |
|
$ |
2,101 |
|
$ |
3,301 |
|
2010 |
|
13,739 |
|
8,825 |
|
4,395 |
|
13,220 |
| ||||
2009 |
|
20,058 |
|
12,023 |
|
392 |
|
12,415 |
| ||||
2008 |
|
28,750 |
|
16,650 |
|
3,256 |
|
19,906 |
| ||||
2007 |
|
22,314 |
|
5,630 |
|
5,900 |
|
11,530 |
| ||||
FirstCity Financial Corporation
Supplemental Information
(Dollars in thousands, except exchange rate data)
(Unaudited)
Summary of Consolidated Portfolio Assets (at Carrying Value) by Region and Type
|
|
December 31, 2011 |
| ||||||||||||||||||||||
|
|
Income-Accruing Loans |
|
Non-Accrual Loans |
|
|
|
|
| ||||||||||||||||
|
|
Purchased |
|
|
|
Purchased Credit- |
|
|
|
|
|
|
|
|
| ||||||||||
|
|
Credit- |
|
|
|
Impaired Loans |
|
Other |
|
|
|
|
| ||||||||||||
|
|
Impaired |
|
|
|
|
|
Cost recovery |
|
|
|
Cost recovery |
|
|
|
|
| ||||||||
|
|
Loans |
|
Other |
|
Cash basis |
|
basis |
|
Cash basis |
|
basis |
|
Real Estate |
|
Total |
| ||||||||
United States |
|
$ |
9,429 |
|
$ |
4,749 |
|
$ |
50,133 |
|
$ |
27,313 |
|
$ |
1,149 |
|
$ |
|
|
$ |
26,649 |
|
$ |
119,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
France |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Germany |
|
|
|
|
|
3,700 |
|
567 |
|
|
|
|
|
207 |
|
4,474 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Mexico |
|
|
|
|
|
|
|
50 |
|
|
|
|
|
|
|
50 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total |
|
$ |
9,429 |
|
$ |
4,749 |
|
$ |
53,833 |
|
$ |
27,930 |
|
$ |
1,149 |
|
$ |
|
|
$ |
26,856 |
|
$ |
123,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
December 31, 2010 |
| ||||||||||||||||||||||
|
|
Income-Accruing Loans |
|
Non-Accrual Loans |
|
|
|
|
| ||||||||||||||||
|
|
Purchased |
|
|
|
Purchased Credit- |
|
|
|
|
|
|
|
|
| ||||||||||
|
|
Credit- |
|
|
|
Impaired Loans |
|
Other |
|
|
|
|
| ||||||||||||
|
|
Impaired |
|
|
|
|
|
Cost recovery |
|
|
|
Cost recovery |
|
|
|
|
| ||||||||
|
|
Loans |
|
Other |
|
Cash basis |
|
basis |
|
Cash basis |
|
basis |
|
Real Estate |
|
Total |
| ||||||||
United States |
|
$ |
3,420 |
|
$ |
1,640 |
|
$ |
94,144 |
|
$ |
41,959 |
|
$ |
1,574 |
|
$ |
|
|
$ |
33,709 |
|
$ |
176,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
France |
|
|
|
1,125 |
|
2,499 |
|
|
|
|
|
2,037 |
|
|
|
5,661 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Germany |
|
|
|
|
|
2,022 |
|
12,659 |
|
|
|
|
|
9,376 |
|
24,057 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Mexico |
|
|
|
|
|
|
|
9,897 |
|
|
|
|
|
|
|
9,897 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total |
|
$ |
3,420 |
|
$ |
2,765 |
|
$ |
98,665 |
|
$ |
64,515 |
|
$ |
1,574 |
|
$ |
2,037 |
|
$ |
43,085 |
|
$ |
216,061 |
|
Illustration of the Effects of Foreign Currency Fluctuations on Net Earnings
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
Net earnings attributable to FirstCity |
|
$ |
15,334 |
|
$ |
1,778 |
|
$ |
24,217 |
|
$ |
12,503 |
|
Foreign currency gains (losses), net: |
|
|
|
|
|
|
|
|
| ||||
Euro |
|
$ |
(495 |
) |
(16 |
) |
194 |
|
(462 |
) | |||
Mexican Peso |
|
(805 |
) |
(547 |
) |
(790 |
) |
(447 |
) | ||||
Argentine Peso |
|
(42 |
) |
|
|
(63 |
) |
(16 |
) | ||||
Chilean Peso |
|
(415 |
) |
36 |
|
(358 |
) |
28 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Exchange rate at valuation date: |
|
|
|
|
|
|
|
|
| ||||
Euro |
|
0.77 |
|
0.75 |
|
|
|
|
| ||||
Mexican Peso |
|
13.99 |
|
12.36 |
|
|
|
|
| ||||
Argentine Peso |
|
4.31 |
|
3.98 |
|
|
|
|
| ||||
Chilean Peso |
|
520.70 |
|
473.20 |
|
|
|
|
| ||||
FirstCity Financial Corporation
Schedule of Estimated Unrealized Gross Profit from Portfolio Assets (Unaudited)
December 31, 2011
|
|
Basis in Portfolio Assets (1), (4) |
| |||||
($ in 000s) |
|
12/31/2009 |
|
12/31/2010 |
|
12/31/2011 |
| |
Domestic |
|
$ |
190,541 |
|
196,159 |
|
163,050 |
|
Europe |
|
32,665 |
|
31,826 |
|
9,381 |
| |
Latin America |
|
27,473 |
|
23,329 |
|
15,298 |
| |
Total |
|
$ |
250,679 |
|
251,314 |
|
187,729 |
|
|
|
Estimated Remaining Collections (2) |
| |||||
|
|
12/31/2009 |
|
12/31/2010 |
|
12/31/2011 |
| |
Domestic |
|
$ |
276,018 |
|
290,626 |
|
238,547 |
|
Europe |
|
50,328 |
|
43,634 |
|
15,262 |
| |
Latin America |
|
70,398 |
|
66,564 |
|
50,955 |
| |
Total |
|
$ |
396,744 |
|
400,825 |
|
304,764 |
|
|
|
Estimated Unrealized Gross Profit (3) |
| |||||
|
|
12/31/2009 |
|
12/31/2010 |
|
12/31/2011 |
| |
Domestic |
|
$ |
85,476 |
|
94,469 |
|
75,497 |
|
Europe |
|
17,663 |
|
11,807 |
|
5,880 |
| |
Latin America |
|
42,925 |
|
43,235 |
|
35,658 |
| |
Total |
|
$ |
146,064 |
|
149,511 |
|
117,036 |
|
|
|
Estimated Unrealized Gross Profit % |
| ||||
|
|
12/31/2009 |
|
12/31/2010 |
|
12/31/2011 |
|
Domestic |
|
30.97 |
% |
32.50 |
% |
31.65 |
% |
Europe |
|
35.10 |
% |
27.06 |
% |
38.53 |
% |
Latin America |
|
60.97 |
% |
64.95 |
% |
69.98 |
% |
Total |
|
36.82 |
% |
37.30 |
% |
38.40 |
% |
This schedule provides selected information related to the Companys economic interests in consolidated and unconsolidated Portfolio Assets and is provided for informational purposes to provide an indication of the potential future unrealized gross profit attributable to those Portfolios. In preparing this schedule, management was required to make certain estimates and assumptions surrounding the underlying assets in the Portfolios that impact the reported amounts. Such estimates and assumptions could change in the future, as more information becomes available, which could impact the reported amounts. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.
(1) Basis in Portfolio Assets represents FirstCitys share of the unamortized purchase price of the Portfolios held by the various acquisition entities, some of which are consolidated by FirstCity and others held through equity and beneficial interests in unconsolidated partnerships.
(2) Estimated Remaining Collections represents FirstCitys share of future projected net cash collections expected from the Portfolios Assets.
(3) Unrealized Gross Profit represents the excess difference between the Estimated Remaining Collections and the Basis in Portfolio Assets.
(4) FirstCity considers Basis in Portfolio Assets a useful measurement of the Companys underlying holdings and interests in Portfolio Assets. As FirstCitys share of Basis in Portfolio Assets is considered a non-GAAP measure, the following reconciliation is provided:
|
|
12/31/2009 |
|
12/31/2010 |
|
12/31/2011 |
| |
FirstCitys consolidated Portfolio Assets (as reported in Portfolio Assets on the balance sheet of the respective Form 10-K) |
|
$ |
224,384 |
|
216,061 |
|
128,747 |
|
Noncontrolling interests in FirstCitys consolidated Portfolio Assets (component of Non- controlling interests as reported on the balance sheet of the respective Form 10-K) |
|
(37,277 |
) |
(23,482 |
) |
(13,556 |
) | |
FirstCitys equity and beneficial interests in Portfolio Assets held by unconsolidated partnerships (components of Assets as reported in the Condensed Combined Balance Sheets tabular disclosure under the Investments in Unconsolidated Subsidiaries footnote, and Investment securities as reported on the balance sheet of the respective Form 10-K) |
|
63,572 |
|
58,735 |
|
72,538 |
| |
FirstCitys economic basis in consolidated and unconsolidated Portfolio Assets |
|
$ |
250,679 |
|
251,314 |
|
187,729 |
|
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