IMGCAP(1)]
FirstCity Financial Corp., a commercial debt buyer, yesterday reported a net loss of $34.8 million for the fourth quarter ended Dec. 31, compared with a $1.4 million loss during the same quarter in 2007. For the year, the Waco, Texas-based company reported a net loss of $46.7 million compared with a net income of $2.2 million in 2007. Revenues increased 4.5% to $11.5 million in the fourth quarter compared with $11 million during the same period a year ago. Revenues for 2008 increased 3.4% to $45.2 million compared with $43.7 million for 2007. FirstCity, which buys bad debt mostly in the United States, Europe and Latin America, reported its 2008 investment in portfolio acquisitions and other investments totaled approximately $125.2 million, increasing earning assets to $296.3 million as of Dec. 31, up 21.6% from $243.6 million a year earlier. "The company continues to generate positive cash flow from its investments to cover its operating expenses and contribute to current investments," CEO Jim Sartain said in a filing with the U.S. Securities and Exchange Commission. "Recent investments are reflecting promising returns and, with the continued availability under our lines of credit, the company expects to be able to take advantage of the current opportunities available in the market."
