- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 19, 1997
-----------------------
FIRSTPLUS FINANCIAL GROUP, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEVADA 0-27550 75-2561085
- ------------------------------- ------------------ --------------------
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
1600 VICEROY, 8TH FLOOR, DALLAS, TEXAS 75235
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 599-6400
----------------------------
RAC FINANCIAL GROUP, INC.
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORPDAL:96001.1 28835-00003
1
<PAGE>
ITEM 5. OTHER EVENTS
------------
The Registrant files herewith the exhibit listed in Item 7(c) below.
ITEM 7(C). EXHIBITS
--------
The following exhibit is furnished in accordance with Item 601 of
Regulation S-K:
99 Press Release
CORPDAL:96001.1 28835-00003
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRSTPLUS FINANCIAL GROUP, INC.
(Registrant)
Date: December 22, 1997 /s/ William P. Benac
----------------------------------------------
William P. Benac
Chief Financial Officer
CORPDAL:96001.1 28835-00003
3
<PAGE>
INDEX TO EXHIBITS
EXHIBIT SEQUENTIALLY
NO. EXHIBIT NUMBERED PAGE
- --------------- ---------------------------------------------- -------------
99 Press Release
CORPDAL:96001.1 28835-00003
4
CONTACT: Daniel T. Phillips, Chairman/CEO
Eric C. Green, President
William P. Benac, CFO
FIRSTPLUS FINANCIAL GROUP, INC.
(214) 599-6300
FINAL DRAFT - Okay for Release Michele Katz, Michael Mahony
- ------------------------------
Press: Brian Maddox, Estelle Bieber
Morgen-Walke Associates
(212) 850-5600
FIRSTPLUS FINANCIAL GROUP, INC.
ANNOUNCES THE SUBSTANTIAL ELIMINATION OF ITS
NON-CASH GAIN-ON-SALE REVENUE FROM SECURITIZATIONS
DALLAS, Texas, December 19, 1997 - FIRSTPLUS Financial Group, Inc. (Nasdaq:
FPFG) today announced its securitization related non-cash "gain-on-sale" will be
substantially reduced in its December 1997 quarter, and in subsequent periods.
As a result, expected earnings for the December 1997 quarter, and in subsequent
periods. As a result, expected earnings for the December 1997 quarter, calendar
1998 year and calendar 1999 year will be reduced; however, expected earnings for
periods subsequent to 1999 may increase. FIRSTPLUS anticipates that after
elimination of its non-cash securitization gains, it may earn $2.50 to $3.00 per
diluted share in calendar 1998, and $4.50 to $5.00 per diluted share in calendar
1999. In this regard, FIRSTPLUS is in the process of adopting a calendar
reporting year.
The substantial elimination of non-cash gain-on-sale revenue is a result of
increases in the discount rate the Company uses to fairly value the interest
only strips it creates when its loans are securitized. The Company believes
substantial increases in this discount rate are appropriate for interest only
strips originated in the December 1997 quarter. The Company has reviewed its
assumptions for interest only strips originated prior to the December 1997
quarter; these interest only strips are performing within expected loss and
prepayment parameters, and no impairment is indicated.
Daniel T. Phillips, FIRSTPLUS' Chairman and Chief Executive Officer, noted the
following:
"The reduction of substantially all non-cash gain-on-sale revenue will
enhance the quality of FIRSTPLUS' earnings. The annuity nature of these
earnings in future years should dampen earnings volatility and provide
a growing and stable base for future profitability. This change also
puts FIRSTPLUS in an enhanced competitive position. Specifically, we
believe this will allow FIRSTPLUS' stock price/earnings multiple to
expand, will permit FIRSTPLUS to attract a wider array of shareholders
and will permit FIRSTPLUS to more actively acquire complementary
businesses in accretive pooling transactions."
FIRSTPLUS' management will discuss the impact of its reduced non-cash
gains-on-sale in a conference telephone call on Friday, December 19, 1997, at
10:00 A.M. (EST). Call in numbers for the conference call are, as follows:
CORPDAL:96001.1 28835-00003
5
<PAGE>
Domestic call in number: 800-683-1535
Domestic replay number: 888-888-9547
International call in number: 973-633-6740
International replay number: 402-220-9952
The above statements in this press release contain forward-looking statements
that involve a number of risks and uncertainties. In addition to the factors
discussed in this press release, reference is made to the Form 8-K, filed by the
Company with the Securities and Exchange Commission on December 19, 1996, for a
list of, and discussion with respect to, certain factors that could cause actual
results to differ materially from the forward-looking statements contained
herein.
FIRSTPLUS Financial Group, Inc. is a specialized consumer finance company that,
through its subsidiaries, originates, purchases, services and securitizes
consumer finance receivables, primarily home improvement and debt consolidation
loans, all secured by liens on the borrower's home. FIRSTPLUS, headquartered in
Dallas, has regional offices in Denver, Colorado; Holly Springs, Mississippi;
Columbus, Ohio; Columbia, South Carolina, Laguna Hills, California; Salt Lake
City, Utah and a network of origination branches nationwide.
# # #
CORPDAL:96001.1 28835-00003
6
