Foothill’s Income Holds at $1.8 Million for Quarter

The Foothill Group Inc., a financial company with executive offices in Agoura and West Los Angeles, said its net income for the third quarter ended Sept. 30 was virtually unchanged from last year at $1.82 million. Foothill’s total revenues for the period fell 2% to $22.8 million from $23.3 million a year ago.

For the nine months ended Sept. 30, Foothill posted a loss of $47,000, compared to a profit of $8.47 million a year ago. The nine-months loss was primarily attributable to an $11.6-million loss on its investments, most of which are junk bonds. Most of that was reported in Foothill’s second quarter, when it wrote down the value of its relatively small junk-bond portfolio by $9 million. Foothill also recorded a $783,000 loss on investments in the third quarter. Mainly because of the writedowns and investment losses, Foothill’s nine-month revenues fell 20% to $59.4 million from $74.6 million.

Meanwhile, the company seems to have made progress on its plan to sell off its junk bonds. The size of the portfolio dropped from $39 million at the end of the second quarter to $23 million at the end of the third.

Foothill also reported after the end of the third quarter that it raised $100 million in commitments for a new limited partnership, Foothill Partners, to invest in the bank debt of distressed companies.