(RTTNews) - Tuesday, Financial Federal Corp. (FIF: News ) said its fourth quarter profit declined from the previous year, hit by substantial reduction in economic activity and difficulties in capital markets.

The financial service provider posted fourth quarter net income that declined 27% to $8.9 million from $12.1 million in the prior year quarter. Earnings per share for the quarter decreased 29% to $0.35 from $0.49 in the year ago quarter.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share. Analysts' estimates typically exclude special items.

Finance receivables originated during the quarter were $60 million compared to $208 million in the fourth quarter of fiscal 2008.

Finance income for the period was $36.29 million, compared to $43.74 million last year. Net finance income for the quarter was $22.23 million, compared to $26.81 million in the same quarter last year.

The provision for credit losses increased to $2.4 million in the fourth quarter from $1.3 million in the fourth quarter of fiscal year 2008
Net income for fiscal 2009 decreased 14% to $43.1 million or $1.72 per share from $50.1 million or $2.01 per share last year.

Finance receivables originated were $488 million in fiscal 2009 compared to $924 million in fiscal 2008. Finance receivables outstanding decreased 21% to $1.54 billion at July 31, 2009 from $1.94 billion at July 31, 2008.

Results for 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, fiscal 2009 net income decreased 16% to $42.1 million and earnings per share decreased 16% to $1.68.

FIF closed Tuesday's regular trading at $24.85, up $1.06 or 4.46%, on a volume of 0.128 million shares on the NYSE. In after hours, the stock declined to $0.80 or 3.22%, trading $24.05.

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by RTT Staff Writer

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