THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, August 3, 1994 TAG: 9408030402
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: By TOM SHEAN, STAFF WRITER
LENGTH: Short : 50 lines
Helped by a higher volume of earning assets and an improvement in credit quality, TFC Enterprises Inc. reported second-quarter net income of $1.83 million, a turnaround from a pro forma net loss in the year-earlier quarter.
Norfolk-based TFC, which finances auto loans to high-risk borrowers, said it lost $1.63 million on a pro forma basis for the April-through-June period of 1993.
Per-share earnings for the recent quarter were 16 cents, compared with a pro forma loss of 16 cents in the year-earlier period.
TFC, which completed an initial public offering of stock last December, said its pro forma results for the 1993 second quarter assumed that the offering had taken place Jan. 1, 1993. The pro forma results also assumed that certain obligations to former shareholders had been paid from the proceeds of the December offering.
In an effort to provide an accurate earnings comparison, companies sometimes provide ``pro forma'' results. These hypothetical numbers indicate what effect a major event like an initial public offering would have had on earnings if the event had occurred earlier than it did.
TFC, parent of THE Finance Company, said its net interest income for the latest quarter climbed 60 percent to $7.23 million, while its operating expenses for the quarter declined 16 percent to $4.77 million. The reduction in operating expenses was due partly to the repayment of certain obligations to former shareholders, said Charles M. Johnston, TFC's chief financial officer.
In addition, ``we recorded no provision for credit losses in the second quarter,'' Johnston said. ``That reflects our improving loss and delinquency ratios. Delinquencies of 60 days or more were 6.2 percent of our portfolio, the lowest it has been in recent history.''
TFC, which completed an initial public offering of its stock last December, said its pro forma results for the recent quarter assumed that the public offering had taken place Jan. 1, 1993. The pro forma results also assumed that certain obligations to former shareholders had been paid from the proceeds of the December offering.
For the six months through June 30, TFC reported net income of $3.46 million, compared with a pro forma net loss of $1.36 million for the first half of 1993.
Per-share earnings were 31 cents, compared with a pro forma net loss of 11 cents. by CNB