This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FirstCity Financial Corporation Reports Fourth Quarter And Full Year 2010 Results

The Company's share of foreign currency transaction losses from its consolidated and unconsolidated foreign operations was $0.5 million for both Q4 2010 and Q4 2009. Our combined foreign currency exchange loss in Q4 2010 related primarily to our consolidated Mexico operations.

Equity in earnings of unconsolidated subsidiaries was $0.6 million in Q4 2010 compared to losses of $1.7 million for Q4 2009. This increase was due to additional equity earnings of $2.0 million from our foreign servicing entities in Q4 2010 compared to Q4 2009, and $2.8 million of additional equity earnings from our special situations platform in Q4 2010 compared to Q4 2009 (we recorded $1.9 million in equity earnings in Q4 2010 from our special situations equity-method investment in a prefabricated building manufacturer – see below for additional discussion). This increase was off-set partially by $2.4 million of lower equity earnings from our domestic and foreign acquisition partnerships recorded in Q4 2010 compared to Q4 2009.

In Q4 2010, the Company also recognized a $3.7 million gain attributable to a step-acquisition transaction in which the Company gained a controlling interest in eight German acquisition partnerships. FirstCity owned noncontrolling equity interests in these entities prior to the transaction. Under business combination accounting guidance, FirstCity's previously-held noncontrolling equity interests in these entities were re-measured to fair value — which resulted in the Company's recognition of the gain. In February 2011, FirstCity sold a substantial majority of its interests in the portfolio assets held by these entities (and its equity interest in another German acquisition partnership) to a European acquisition partnership entity for approximately $22.5 million. FirstCity has a noncontrolling 13% beneficial interest in this European acquisition partnership that purchased the portfolio assets and German entity (the remaining 87% beneficial interest is owned by a subsidiary of Värde Investment Partners, L.P.). FirstCity's net investment in Germany approximated $12.3 million at December 31, 2010, which was subsequently reduced to approximately $6.6 million in February 2011 upon FirstCity's sale transaction described above.

3 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs