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 incurred $17.0 million of combined net impairment provisions in 2010 from its consolidated and unconsolidated portfolio assets and loans compared to $10.8 million in 2009. The provisions in 2010 were recorded primarily to reflect changes in management's estimates as to the timing and amount of projected future collections and declines in domestic real estate values. The global distribution of the $17.0 million of net impairment provisions in 2010 includes $10.5 million for domestic assets, $1.3 million related to Latin American assets, and $5.2 million related to European assets. Net provisions in 2010 were allocated between consolidated assets ($9.3 million) and FirstCity's share of net provisions from unconsolidated subsidiaries ($7.7 million).

The Company's share of foreign currency transaction losses from its consolidated and unconsolidated foreign operations was $0.9 million in 2010, compared to $47,000 of foreign currency transactions gains in 2009.

Equity in earnings of unconsolidated subsidiaries was $14.6 million in 2010 compared to losses of $0.3 million for 2009. This increase was due to additional equity earnings of $15.4 million and $5.1 million from our special situations platform subsidiaries and foreign servicing entities, respectively, recorded in 2010 compared to 2009. This increase was off-set partially by $5.5 million of lower equity earnings from our domestic and foreign acquisition partnerships recorded in 2010 compared to 2009. In 2010, we recorded $16.2 million in equity earnings from our equity-method investment related to a prefabricated building manufacturer (an unconsolidated subsidiary of our special situations platform). This entity reported significantly higher net earnings in 2010 related to building orders and a short-term lease agreement with a single customer. The entity's business dealings with this customer were completed in 2010.

The Company recognized $4.6 million of business combination gains in 2010 in connection with the following transactions: (1) $3.7 million related to its step-acquisition of eight German acquisition partnerships (discussed above), and (2) $0.9 million related to a step-acquisition transaction involving three domestic acquisition partnerships in March 2010.

7 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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs