-----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, CCrRrennZg0CJRN2DeeHtHEQRfiFmZtBDudhlRrohjliGye0xc12ZhOehNIZk1YY V1eKbeON8q7fAd3+Mfld4A== 0000891092-03-002431.txt : 20030910 0000891092-03-002431.hdr.sgml : 20030910 20030910124800 ACCESSION NUMBER: 0000891092-03-002431 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030910 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030910 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS FINANCIAL SERVICES GROUP INC CENTRAL INDEX KEY: 0000948034 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 760465087 STATE OF INCORPORATION: TX FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26686 FILM NUMBER: 03889504 BUSINESS ADDRESS: STREET 1: 675 BERING DR STREET 2: STE 710 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7139772600 MAIL ADDRESS: STREET 1: 675 BERING DR STREET 2: STE 710 CITY: HOUSTON STATE: TX ZIP: 77057 8-K 1 e15665_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) September 10, 2003 FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) TEXAS 0-026686 76-0465087 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File No.) Identification No.) 675 Bering, Suite 710, Houston, TX 77057 --------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (713) 977-2600 "NOT APPLICABLE" -------------------------------------------------------------- (Former name or former address, if changed since last report.) Item 9. Regulation FD Disclosure. The following information is being furnished under Item 12. On September 10, 2003, First Investors Financial Services Group, Inc. issued a press release announcing their first quarter financial results for the period ending July 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1. Item 7. Financial Statements and Exhibits (c) Exhibits. Exhibit 99.1 Press release dated September 10, 2003. Signature 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. First Investors Financial Services Group, Inc. Date: September 10, 2003 By: /s/ Bennie H. Duck ------------------------------------------ Bennie H. Duck Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) EX-99.1 3 e15665ex99_1.txt PRESS RELEASE Exhibit 99.1 First Investors Reports Increased First Quarter Earnings HOUSTON, Sept. 10 /PRNewswire-FirstCall/ -- First Investors Financial Services (Nasdaq: FIFS) has reported net income of $220,079 or $0.04 per share for the first quarter ended July 31, 2003 of the 2004 fiscal year. This compares to the $143,693 or $0.03 per share reported for the three months ended July 31, 2002. The Company benefited from increased interest income associated with growth in its portfolio of receivables held for investment, an increase in unrealized gains on interest rate derivatives, slightly higher effective yields and increased servicing revenue associated with the previously announced addition of an additional $300 million in managed assets during March. These benefits offset an increase in provision expense during the quarter associated with higher net charge-offs. First Investors' earnings per share also benefited from reduction in the number of average shares outstanding related to 21,000 shares of stock repurchased by the Company in July at an average price of $4.03 per share. For the quarter, First Investors' portfolio of receivables held for investment, net increased to $232.2 million as compared to $229.0 million at April 30, 2003. For the quarter, the Company reported $28.1 million in new loan originations compared to $23.5 million in the prior year period. Net interest income increased 7.5% over the prior period as growth in the Company's receivables portfolio was enhanced by an increase in net interest spread to 10.7% in the current quarter compared to 10.0% in the prior year period due to declining market interest rates which lowered the Company's average cost of debt and offset a decline in effective yields. Total operating expenses increased 36.8% period over period as a result of a 185% increase in the managed portfolio which totaled $618.4 million as of July 31, 2003. The dollar delinquency rate declined from 3.7% to 3.4%. The annualized charge-off rate increased from 4.5% to 5.9% over the same periods reflecting continued economic weakness which has increased repossession rate and charge-off rates and lowered recovery rates from the sale of repossessed collateral. Tommy A. Moore, Jr., President and CEO, stated that, "We continue to experience excellent delinquency rates despite the challenging economic environment though our net charge-offs have increased year-over-year. We believe this divergence is largely related to the continued softness in the employment market which has negatively impacted a portion of our customer base and used car prices and recovery rates which continue to run below historical levels. Despite these results for the total portfolio, we are very pleased with the performance of our loans originated over the past two years which we believe validated our decision to tighten underwriting guidelines well ahead of the recession. As market conditions improve and new loan originations comprise a larger percentage of our portfolio, we expect to see these improvements in our operating results." First Investors is a specialized consumer finance company engaged in the purchase and retention of automobile finance receivables originated from franchised automobile dealers and directly through consumers from the sale of new and late-model used vehicles. The Company is headquartered in Houston, Texas and operates in 27 states. The statements contained in this release, which are not historical statements of fact, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve a number of risks and uncertainties. The actual results of future events could differ materially from those stated in any forward-looking statements herein. First Investors Financial Services Group, Inc. Condensed Consolidated Statements of Operations and Selected Data (Unaudited) Dollars in thousands, except per share data For the Three Months Ended July 31, 2003 2002 Interest Income $ 8,070 $ 8,511 Interest Expense 2,018 2,882 Net Interest Income 6,052 5,629 Provision for Credit Losses 3,391 2,368 Income after Provision for Credit Losses 2,661 3,261 Late fee and Other Income 690 332 Servicing Income 1,259 --- Unrealized Loss on Interest Rate Derivative Positions 142 (37) Total Operating Expenses 4,415 3,228 Income (Loss) before Provision for Income Taxes and Minority Interest 337 328 Provision for Income Taxes (Benefits) 126 82 Minority Interest (9) 102 Net Income (Loss) $ 220 $ 144 Basic and Diluted Net Income (Loss) Per Common Share $ 0.04 $ 0.03 Other Operating Data Average Principal Balance of Receivables Held for Investment $227,982 $212,177 Total Managed Receivables 618,429 216,816 Originations Volume 28,106 23,525 Effective Yield on Receivables Held for Investment 14.2% 15.4% Average Cost of Debt 3.5% 5.4% Weighted Average Number of Shares Outstanding (in thousands) 5,071 5,340 July 31, July 31, 2003 2002 Financial Position Cash and Short-Term Investments $ 21,336 $ 24,681 Receivables Held for Investment, Net 232,181 213,412 Receivables Acquired for Investment, Net 2,182 6,827 Assets Held for Sale 1,320 1,311 Total Assets 274,181 263,989 Total Debt 240,839 228,132 Minority Interest 540 1,037 Total Shareholders' Equity 26,853 25,681 Shareholders' Equity per Common Share 5.36 5.11 As of or As of or For the Three For the Three Months Ended Months Ended July 31, July 31, Credit Quality Data 2003 2002 Receivables Held for Investment: 30 + days past due Number of Loans 4.4% 3.7% $ Amount 3.4% 3.7% Net Charge-offs as a % of average receivables 5.9% 4.5% Net Charge-offs for the period ending $ 3,628 $ 2,774 SOURCE First Investors Financial Services Group, Inc. -0- 09/10/2003 /CONTACT: Bennie H. Duck of First Investors Financial Services Group, Inc., +1-713-977-2600/ (FIFS) CO: First Investors Financial Services Group, Inc. ST: Texas IN: FIN AUT SU: ERN -----END PRIVACY-ENHANCED MESSAGE-----