UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
|
For the quarterly period ended July 31, 2004 |
|
|
|
|
OR |
|
|
|
|
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
|
For the transition period from to |
|
|
|
Commission File Number 0-26686 |
|
First Investors Financial Services Group, Inc.
(Exact Name of Registrant as Specified in its Charter)
|
Texas |
|
76-0465087 |
|
(State or Other Jurisdiction of Incorporation |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
675 Bering
Drive, Suite 710 |
|
77057 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
|
|
|
|
|
(713) 977-2600 |
||
|
(Registrant’s Telephone Number, Including Area Code) |
||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý.
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
|
Class |
|
Shares Outstanding At |
|
Common Stock-$.001 Par Value |
|
5,000,269 |
FIRST INVESTORS FINANCIAL SERVICES GROUP, INC.
AND SUBSIDIARIES
2
FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
|
|
|
April 30, |
|
July 31, |
|
||
|
|
|
(Audited) |
|
(Unaudited) |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Receivables Held for Investment, net |
|
$ |
209,777,347 |
|
$ |
210,122,864 |
|
|
Receivables Acquired for Investment, net |
|
1,190,230 |
|
992,072 |
|
||
|
Cash and Short-Term Investments, including restricted cash of $19,036,747 and $18,290,223 |
|
21,055,237 |
|
18,530,633 |
|
||
|
Accrued Interest Receivable |
|
2,576,023 |
|
2,462,772 |
|
||
|
Assets Held for Sale |
|
851,426 |
|
888,690 |
|
||
|
Other Assets: |
|
|
|
|
|
||
|
Funds held under reinsurance agreement |
|
4,182,134 |
|
4,377,302 |
|
||
|
Deferred financing costs and other assets, net of accumulated amortization and depreciation of $5,759,477 and $6,154,746 |
|
6,115,203 |
|
5,717,133 |
|
||
|
Current income taxes receivable |
|
8,212 |
|
8,212 |
|
||
|
Interest rate derivative positions |
|
— |
|
115,344 |
|
||
|
Total assets |
|
$ |
245,755,812 |
|
$ |
243,215,022 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Debt: |
|
|
|
|
|
||
|
Warehouse credit facilities |
|
$ |
42,705,810 |
|
$ |
61,670,082 |
|
|
Term Notes |
|
164,718,190 |
|
142,966,523 |
|
||
|
Working capital facility |
|
8,761,143 |
|
8,759,543 |
|
||
|
Other Liabilities: |
|
|
|
|
|
||
|
Accounts payable and accrued liabilities |
|
1,708,984 |
|
1,847,414 |
|
||
|
Current income taxes payable |
|
— |
|
22,822 |
|
||
|
Deferred income taxes payable |
|
558,000 |
|
558,000 |
|
||
|
Total liabilities |
|
218,452,127 |
|
215,824,384 |
|
||
|
|
|
|
|
|
|
||
|
Commitments and Contingencies |
|
— |
|
— |
|
||
|
Shareholders’ Equity: |
|
|
|
|
|
||
|
Common stock, $0.001 par value, 10,000,000 shares authorized, 5,583,669 issued; 5,000,269 outstanding at April 30, 2004 and at July 31, 2004 |
|
5,584 |
|
5,584 |
|
||
|
Additional paid-in capital |
|
18,754,608 |
|
18,754,608 |
|
||
|
Retained earnings |
|
10,515,258 |
|
10,602,211 |
|
||
|
Less, treasury stock, at cost, 583,400 and 583,400 shares |
|
(1,971,765 |
) |
(1,971,765 |
) |
||
|
Total shareholders’ equity |
|
27,303,685 |
|
27,390,638 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
245,755,812 |
|
$ |
243,215,022 |
|
The accompanying notes are an integral part of these consolidated financial statements.
3
FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended July 31, 2003 and 2004
(Unaudited)
|
|
|
For the
Three Months |
|
||||
|
|
|
2003 |
|
2004 |
|
||
|
|
|
|
|
|
|
||
|
Interest Income |
|
$ |
8,070,436 |
|
$ |
6,952,179 |
|
|
Interest Expense |
|
2,017,971 |
|
1,776,773 |
|
||
|
Net interest income |
|
6,052,465 |
|
5,175,406 |
|
||
|
Provision for Credit Losses |
|
3,391,963 |
|
2,442,105 |
|
||
|
Net Interest Income After Provision for Credit Losses |
|
2,660,502 |
|
2,733,301 |
|
||
|
Other Income: |
|
|
|
|
|
||
|
Servicing revenue |
|
1,274,632 |
|
969,955 |
|
||
|
Late fees and other |
|
379,561 |
|
630,553 |
|
||
|
Income from investment |
|
247,869 |
|
193,706 |
|
||
|
Other interest income |
|
47,279 |
|
74,132 |
|
||
|
Unrealized gain/(loss) on interest rate derivative positions |
|
142,757 |
|
(67,657 |
) |
||
|
Total other income |
|
2,092,098 |
|
1,800,689 |
|
||
|
Operating Expenses: |
|
|
|
|
|
||
|
Salaries and benefits |
|
2,218,389 |
|
2,063,445 |
|
||
|
Operating expense |
|
1,072,374 |
|
1,298,790 |
|
||
|
General and administrative |
|
995,283 |
|
922,821 |
|
||
|
Other interest expense |
|
129,140 |
|
112,000 |
|
||
|
Total operating expenses |
|
4,415,186 |
|
4,397,056 |
|
||
|
Income Before Provision for Income Taxes and Minority Interest |
|
337,414 |
|
136,934 |
|
||
|
Provision (Benefit) for Income Taxes: |
|
|
|
|
|
||
|
Current |
|
(2,302 |
) |
49,981 |
|
||
|
Deferred |
|
128,804 |
|
— |
|
||
|
Total provision for income taxes |
|
126,502 |
|
49,981 |
|
||
|
Minority Interest |
|
(9,167 |
) |
— |
|
||
|
Net Income |
|
$ |
|||||