WACO, Texas, May 10, 2011 (GLOBE NEWSWIRE) --
- FirstCity reported first quarter 2011 earnings of $3.7 million or $0.36 per diluted share.
- FirstCity invested $12.2 million in portfolio assets and other investments during the quarter.
Components of FirstCity's quarterly results are summarized below:
James T. Sartain, CEO of FirstCity, commented, "Increased collections drove our strong earnings this quarter. Although opportunities for investment remain fiercely competitive, our pipeline is very active and we believe that we will be able to continue to grow our earnings base while sticking to our investment discipline."
Portfolio Asset Acquisition and Resolution
For the first quarter of 2011 ("Q1 2011"), our Portfolio Asset Acquisition and Resolution business segment reported $5.0 million in earnings – comprised primarily of $18.6 million in revenues, $1.7 million in equity in earnings of unconsolidated subsidiaries, and $10.7 million of operating costs and expenses. Earnings for Q1 2011 were positively impacted by an increase in revenue streams from our core investment activities and servicing platform (due to increased collections) in Q1 2011 compared to the prior year's first quarter, combined with lower impairment provisions from our consolidated and unconsolidated Portfolio Assets and loan investments. Additional information related to our Portfolio Asset Acquisition and Resolution business segment is included in the supplemental schedules of this release.
The Company's unrealized gross profit associated with its core portfolio assets totaled $150.2 million at March 31, 2011. Unrealized future gross profit is a non-GAAP measure. Refer to the Schedule of Estimated Unrealized Gross Profit from Portfolio Assets on page 9 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
Our Special Situations Platform business segment provided $0.5 million in earnings for Q1 2011 – comprised primarily of $2.2 million in revenues, $0.2 million in equity in earnings of unconsolidated subsidiaries, and $1.8 million of operating costs and expenses. Earnings for Q1 2011 were positively impacted by continued revenue streams from our loan investments and consolidated railroad operations, combined with no impairment provisions recorded during the quarter. However, Q1 2011 earnings were negatively impacted by a decline in equity in earnings from unconsolidated subsidiaries due mainly to seasonal losses recognized by some of our retail and manufacturing investees. Additional information related to our Special Situations Platform business segment is included in the supplemental schedules of this release.
A conference call will be held on Tuesday, May 10, 2011 at 9:00 a.m. Central Time to discuss Q1 2011 results. A question and answer session will follow the prepared remarks. Details to access the call and webcast are as follows:
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, FirstCity's filings with the Securities and Exchange Commission ("SEC"), in its reports to stockholders and in other FirstCity communications. These statements relate to FirstCity's or management's 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 management's beliefs, assumptions and expectations of the Company's 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 Company's 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 Company's website, which contain a more detailed discussion of the Company's 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 Company's 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.
A graphic accompanying this release is available at
CONTACT: Suzy W. Taylor 866-652-1810