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Financial Federal Corporation Reports Third Quarter Results

Posted by Dana in June 5th 2009

Financial Federal Corporation (NYSE: FIF) announced results for its third quarter ended April 30, 2009. Net income for the quarter decreased by 19% to $10.3 million from $12.7 in the third quarter of fiscal 2008. Net income decreased because of lower average receivables and higher non-performing assets. Diluted earnings per share decreased by 20% to $0.41 from $0.51. Finance receivables originated during the quarter were $77 million compared to $232 million in the third quarter of fiscal 2008.

For the first nine months of fiscal 2009 and 2008, net income was $34.3 million and $37.9 million, respectively, a 10% decrease. Diluted earnings per share also decreased by 10% to $1.37 from $1.52. Finance receivables originated were $428 million in 2009 compared to $715 million in 2008. Finance receivables outstanding decreased to $1.68 billion at April 30, 2009 from $1.94 billion at July 31, 2008.

Results for the first nine months of fiscal 2009 include a $1.0 million after-tax gain on retirement of debt. The Company purchased $42.3 million of its convertible debentures in the open market for $40.6 million. Without this after-tax gain, net income decreased by 12% to $33.3 million and diluted earnings per share decreased by 13% to $1.33. The amounts of net income and diluted earnings per share excluding the $1.0 million after-tax debt retirement gain are non-GAAP financial measures and are presented because the Company believes they will be useful to investors because they provide consistency and comparability with the prior period’s operating results and a better understanding of the changes and trends in the Company’s operating results.