Foothill Group Reports Rise in Quarterly Profit

The Foothill Group Inc., a financial services concern with executive offices in Agoura Hills and Los Angeles, reported that its profit jumped to $3.45 million in the second quarter ended June 30, from $1.28 million a year earlier. Its six-month profit was $6.82 million, compared with $2.53 million in 1991’s first half.

Despite a $505,000 charge during the latest quarter related to the retirement of debt, Foothill’s earnings surged largely because of widening interest margins. In other words, Foothill benefited from the growth in the difference between the interest it pays for funds and the interest it charges borrowers.

Foothill also saw its profits from investments grow during the second quarter, to $2.79 million from $586,000 a year earlier.

In May, Foothill raised $27.2 million through the sale of 3.45 million shares of common stock, and used the proceeds to reduce its debt to $20.3 million. It lowered its debt by another $7.06 million in July, mostly by converting debentures into common stock.