<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)

                         OF THE SECURITIES ACT OF 1934


   For the quarter ended:                       Commission File Number:
     December 31, 1995                                  0-9539
     -----------------                                  ------



                 S E A R C H  C A P I T A L  G R O U P, I N C.
                 ---------------------------------------------
             (Exact name of Registrant as specified in its charter)



        Delaware:                                         41-1356819:
        --------                                          ---------- 
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)


 700 North Pearl, Suite 400, Plaza of the Americas, North Tower, Lock Box 401, 
 -----------------------------------------------------------------------------
                              Dallas, Texas  75201
                              --------------------
             (Address and zip code of principal executive offices)


                                  (214) 965-6000                      
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                             Yes  [x]             No  [ ]


Indicate the number of shares outstanding of each of the issuer's common stock,
as of the latest practicable date:

            
            Class                                
            -----                                 Number of Shares Outstanding:
   Common Stock, $.01 par value                         February 15, 1996
                                                             8,706,981          





                                       1
<PAGE>   2

                          PART I-FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                  SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
                          CONSOLIDATING BALANCE SHEETS
<TABLE>
<CAPTION>
                                                 December 31, 1995 (unaudited)                       September 30, 1995
                                         --------------------------------------------   -------------------------------------------

(all numbers in thousands)                                 Fund                                            Fund
                                                        Subsidiaries                                   Subsidiaries
                                          Search &      & Eliminations                    Search &     & Eliminations              
                                         Unrestricted   "(Debtors in                    Unrestricted   "(Debtors in
                                         Subsidiaries   Possession)"     Consolidated   Subsidiaries   Possession)"    Consolidated
                                         --------------------------------------------   -------------------------------------------
<S>                                      <C>             <C>             <C>               <C>          <C>            <C>        
ASSETS                                                                                                                            
------                                                                                                                            
Gross contract receivables                  $  3,609     $  44,966       $  48,575         $  7,365     $  59,312      $  66,677  
Unearned interest                              (480)       (8,392)         (8,872)          (1,300)      (11,806)       (13,106)  
                                         --------------------------------------------   -------------------------------------------
Net contract receivables                       3,129        36,574          39,703            6,065        47,506         53,571  
Allowance for credit losses                  (1,434)      (13,540)        (14,974)          (2,862)      (15,761)       (18,623)  
Loan origination costs                           591         3,337           3,928              591         3,163          3,754  
Amortization of loan origination costs         (545)       (2,661)         (3,206)            (506)       (2,431)        (2,937)  
                                         --------------------------------------------   -------------------------------------------
Net contract receivables after                                                                                                    
    allowance for credit losses &                                                                                               
    loan origination costs                     1,741        23,710          25,451            3,288        32,477         35,765  
                                         --------------------------------------------   -------------------------------------------
Cash and equivalents                             855             -             855              442             -            442  
Restricted cash                                    -        12,573          12,573                -         8,105          8,105  
Vehicles held for resale                         220         1,133           1,353               93           508            601  
                                                                                                                                  
                                                                                                                                  
Deferred note offering costs                      42         9,011           9,053               42         9,011          9,053  
Accumulated amortization                        (42)       (6,687)         (6,729)             (41)       (5,950)        (5,991)  
                                         --------------------------------------------   -------------------------------------------
Deferred note offering cost, net                   -         2,324           2,324                1         3,061          3,062  
                                         --------------------------------------------   -------------------------------------------
                                                                                                                                  
Property and equipment                         2,236             -           2,236            2,126             -          2,126  
Accumulated depreciation                       (942)             -           (942)            (820)             -          (820)  
                                         --------------------------------------------   -------------------------------------------
Property and equipment, net                    1,294             -           1,294            1,306             -          1,306  
                                         --------------------------------------------   -------------------------------------------
                                                                                                                                  
Inter-company balance                            428         (428)               -              646         (646)              -  
Other assets, net                                103             8             111              650           (9)            641  
                                         --------------------------------------------   -------------------------------------------
Total assets                                $  4,641     $  39,320       $  43,961         $  6,426      $ 43,496      $  49,922  
                                         ============================================   ===========================================

LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIT)                              
------------------------------------------------------

 Liabilities  Not Subject to Compromise  
 --------------------------------------  
            
Lines of credit                             $  2,280     $       -        $  2,280         $  1,058    $        -      $   1,058  
                                                                                                                                 
Accrued  settlement                            2,912             -           2,912            2,912             -          2,912  
Accrued  restructuring                           260             -             260              214             -            214  
Accounts payable and other liabilities         3,050           252           3,302            1,804           247          2,051  
Accrued interest                                   1             -               1                2             -              2  
                                         --------------------------------------------   -------------------------------------------
Liabilities not subject to compromise          8,503           252           8,755            5,990           247          6,237  
                                         --------------------------------------------   -------------------------------------------
Liabilities  Subject to Compromise                                                                                                
----------------------------------                                                                                                
                                                                                                                                  
Prepetition notes  payable and accrued                                                                                            
interest - subject to compromise                   -        69,320          69,320                -        69,320         69,320  
                                         --------------------------------------------   -------------------------------------------
SHAREHOLDERS' EQUITY (CAPITAL DEFICIT)                                                                                            
--------------------------------------                                                                                            
Preferred stock - 12% senior                                                                                                      
    convertible $.01 par value,                                                                                                   
    cumulative, 400,000 shares issued and                                                                                         
    outstanding, liquidation preference of                                                                                        
    $2,000,000 plus accrued dividends              4             -               4                4             -              4  
                                                                                                                                  
                                                                                                                                  
Common stock, $.01 par value,                                                                                                     
    20,000,000 shares authorized,                                                                                                 
    11,773,370 shares issued                     117             -             117              117             -            117  
                                                                                                                                  
Additional paid-in-capital                    26,776             -          26,776           26,766             -         26,766  
Accumulated deficit                         (29,609)      (30,252)        (59,861)          (25,301      (26,071)       (51,372)  
Treasury stock at cost 3,026,389             
    shares                                   (1,150)             -         (1,150)          (1,150)             -        (1,150) 
                                         --------------------------------------------   -------------------------------------------
Total shareholders' equity (capital          
    deficit                                  (3,862)       $39,320         $43,961           $6,426       $43,496        $49,922  
                                         --------------------------------------------   -------------------------------------------
Total Liabilities and Shareholders'                                                                                               
    Equity (Capital Deficit)                  $4,641       $39,320         $43,961           $6,426       $43,496        $49,922  
                                         ============================================   ===========================================
</TABLE>
                   See notes to condensed financial statement





                                      2

<PAGE>   3
                  SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                           Three Months Ended                                  Three  Months Ended
                                     December 31, 1995 (unaudited)                        December 31, 1994 (unaudited)
                               -------------------------------------------      -----------------------------------------------
(all dollars in
thousands, except per            
share amounts)                                    Fund                                              Fund
                                              Subsidiaries                                      Subsidiaries
                                 Search &     & Eliminations                     Search &      & Eliminations                  
                               Unrestricted   "Debtors in                       Unrestricted    "Debtors in
                               Subsidiaries   Possession"     Consolidated      Subsidiaries    Possession"       Consolidated 
                               -------------------------------------------      -----------------------------------------------
<S>                              <C>           <C>         <C>                    <C>             <C>             <C>          
Interest revenue                     $253        $2,336          $2,589             $1,283          $3,631             $4,914  
Interest expense                       36           738             774                 83           3,271              3,354
                               -------------------------------------------      -----------------------------------------------
Net interest income                   217         1,598           1,815              1,200             360              1,560  
Provision for credit losses           829         4,552           5,381              1,772           4,283              6,055  
                               -------------------------------------------      -----------------------------------------------
Net interest loss after                                                                                        
    provision for credit losses     (612)       (2,954)         (3,566)              (572)         (3,923)            (4,495)
                               -------------------------------------------      -----------------------------------------------
General and                         3,291         1,227           4,518              2,442           1,365              3,807
administrative expense                                                                                         
Settlement expense                     94             -              94                  -               -                  -
Reorganization expense                250             -             250                  -               -                  -
                               -------------------------------------------      -----------------------------------------------
Operating and other expense         3,635         1,227           4,862              2,442           1,365              3,807
                               -------------------------------------------      -----------------------------------------------
Net loss                          (4,247)       (4,181)         (8,428)            (3,014)         (5,288)             (8,302)
                               -------------------------------------------      -----------------------------------------------
Preferred stock dividends            (60)             -            (60)               (60)               -                (60)
                               -------------------------------------------      -----------------------------------------------
                                                                                                               
Net loss attributable to                                                                                       
    common stockholders          $(4,307)      $(4,181)        $(8,488)           $(3,074)        $(5,288)           $(8,362)
                               ===========================================      ===============================================
Net loss per share                                                                                             
    attributable to common                                                                                                   
    shareholders                                            $    (0.98)                                           $    (0.90)
                                                            ==============                                        =============
Weighted average number of                                                                                     
    common shares outstanding                                  8,685,000                                             9,296,000  
                                                            ==============                                        ============= 
                                                                                                                                
</TABLE>


                  See notes to condensed financial statements





                                      3

<PAGE>   4
                  SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                Three Months Ending                         Three Months Ending
                                                            December 31, 1995 (unaudited)             December 31, 1994 (unaudited)
                                                            -----------------------------             -----------------------------
        (all numbers in thousands)
<S>                                                                         <C>                                        <C>
OPERATING ACTIVITIES:
Net loss                                                                    $(8,428)                                   $(8,302)
Adjustments to reconcile net loss to cash used in
    operations:                                
    Provision for credit losses                                               5,381                                      6.055
    Amortization of deferred offering costs                                     738                                        757
    Amortization  of loan  origination costs                                    269                                        198
    Depreciation and amortization                                               122                                         71
Changes is assets and liabilities:                                          
    Increases (decreases) in accounts payable and
    accrued expense                                                           1,305                                       (622)
    Increases (decreases) in other assets, net                                  529                                         53
                                                                -------------------                       --------------------
Cash  provided by (used) in operations                                          (84)                                    (1,790)
                                                                -------------------                       --------------------

INVESTING ACTIVITIES:
Purchase of contract receivables, including
    origination fees                                                         (2,934)                                    (6,162)
Principal payments on contract receivables
    including proceeds from sales of vehicles                                 6,846                                      9,737
Purchases of property and equipment                                            (110)                                      (181)
(Increases) decreases in restricted cash                                     (4,469)                                      (350)
                                                                -------------------                        -------------------
Cash provided by (used in) investing                                           (667)                                     3,044
                                                                -------------------                        -------------------
FINANCING ACTIVITIES:
Net borrowings (repayments)  under line of credit                             1,222                                       (402)
Notes payable proceeds                                                            -                                      1,779
Notes payable repayments - prepetition                                            -                                     (2,769)
Capital lease (repayments) financing                                             (8)                                         -
Notes payable  offering costs                                                     -                                       (198)
Proceeds from sale of stock, net of  expense                                     10
Payment of dividends                                                            (60)                                       (60)
                                                                -------------------                        -------------------
    Cash provided by (used in) financing activities                           1,164                                     (1,650)
                                                                -------------------                        -------------------
Change in cash and cash equivalents                                             413                                       (396)
Cash and cash equivalents - beginning                                           442                                        939
                                                                -------------------                        -------------------
Cash and cash equivalents - ending                                          $   885                                    $   543
                                                                ===================                        ===================
SUPPLEMENTAL INFORMATION

    Cash paid for interest                                                      $36                                     $2,975
                                                                ===================                        ===================
</TABLE>

NOTE: Certain Subsidiaries, as discussed in Note 2, are debtors-in-
      possession.

                  See notes to condensed financial statements





                                       4
<PAGE>   5
                           SEARCH CAPITAL GROUP, INC.
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (Unaudited)


1.      GENERAL INFORMATION

        The information presented herein includes normal recurring adjustments
that Search Capital Group, Inc.  (herein called "Search" and together with its
consolidated subsidiaries called the "Company") believes are necessary for fair
presentation of its financial position and results of operation.  During the
three months ended December 31, 1995, the Company recorded $344,000 in
adjustments related to the closure of it retail lots and reorganization of Fund
Subsidiaries.  These adjustments are of a nonrecurring nature.  Substantially
all of the disclosures required for annual financial reports have been omitted. 
The interim financial statements and related notes are unaudited, and should be
read in conjunction with the Company's annual report on Form 10-K for the year
ended September 30, 1995.  The Company is an industry specific financial
services company specializing in the purchase, management, and securitization
of used motor vehicle receivables.  These receivables are secured by
medium-priced, used automobiles and light trucks which typically have been
purchased by consumers with substandard credit histories at retail prices
ranging from $5,000 to $10,000.  The Company purchases these receivables from a
network of unaffiliated new and used automobile dealers (the "Dealer Network")
at discounts ranging generally from 40% to 55% of total unpaid installments,
which installments include both principal and interest. The members of the
Dealer Network generate the receivables and offer them for sale on a non-
exclusive basis to the Company.  See "Principal Business."         

        Prior to November 1994, the Company financed its receivables purchasing
business primarily through the private and public sale of securitized,
interest-bearing notes (the "Notes") issued by wholly owned subsidiaries
organized specifically for this purpose (the "Fund Subsidiaries") and through
reinvestment of operating cash flow.  Each offering of Notes was issued by a
newly organized subsidiary without recourse to Search or its other
subsidiaries.  See "Financing."  The Notes offered by each of the Fund
Subsidiaries were not rated by a national credit agency.

        After November 1994, due primarily to higher than expected losses in
the collection of its receivables, the Company temporarily abandoned its
securitization activities. In the first half of 1995, the Company developed a
reorganization strategy.  In August 1995, pursuant to that strategy, Search's
existing Fund Subsidiaries filed for protection and reorganization under
Chapter 11 of the Bankruptcy Code.  See "Subsidiary Bankruptcy Filings."  These
Fund Subsidiaries and Search, as a co-proponent are attempting to complete a
plan of reorganization in these bankruptcy proceedings.

        The accompanying consolidated financial statements include the accounts
of Search Capital Group, Inc. and its subsidiaries ("Search") as follows:

<TABLE>
<CAPTION>
                                                                                             Ownership
                                            Subsidiary                                       Percentage
                                            ----------                                       ----------
         <S>                                                                                <C>
         Automobile Credit Holdings, Inc. ("ACHI")                                          100% (a, c)
         Automobile Credit Acceptance Corp. ("ACAC") (100% owned by ACHI)                   100% (a, c)
         Consumer Dealer Autocredit Corporation ("CDAC") (100% owned by ACHI)               100% (a, b,c)
         Eight Fund Subsidiaries and two previous Fund Subsidiaries - debtors-in-           
                 possession                                                                 100%
         Newsearch, Inc.                                                                    100% (b, c)
         Search Funding Corp. ("SFC")                                                       100% (c)
         Automobile Wholesaling, Inc.                                                       100% (b, c)
         Search Automobile Leasing Corporation                                              100% (b, c)

         (a)  Search had a 52% voting interest in these entities, resulting from ownership of 50% of the
              common stock and 100% of the voting preferred stock of ACHI, until June 30, 1993, at which time
              Search acquired the minority interest in ACHI.

         (b)  Currently inactive.


         (c)  Unrestricted subsidiaries, which are not debtors-in-possession.
</TABLE>

2.      SUBSIDIARY BANKRUPTCY FILINGS

        At Search's annual shareholders' meeting, held May 10, 1995, Search
announced a preliminary outline of a plan to convert the approximately $68
million debt owed by the Fund Subsidiaries into equity in the Parent Company
(Search).  Search engaged the





                                       5
<PAGE>   6
investment banking firm of Alex. Brown & Sons to develop a formal detailed plan
of debt-to-equity conversion.  To facilitate the development of this plan
Search also formed an ad hoc committee of noteholders in all eight of its Fund
Subsidiaries to review the proposals of Alex. Brown & Sons and provide input
and recommendations for the plan.

        In order to consummate the debt-to-equity conversion plan proposed by 
Alex. Brown & Sons, it was necessary for each of the Fund Subsidiaries to file
for reorganization under Chapter 11 of the U. S. Bankruptcy Code.  These cases
have been consolidated as one case for administration.  Search and its
unrestricted subsidiaries have not sought protection under the Code but Search
is a proponent of a joint plan of reorganization of the Fund Subsidiaries
("Joint Plan").  On August 25, 1995 an organizational meeting was held by the U.
S. Bankruptcy Trustee to select a committee (the "Committee") to represent the
noteholders ("Creditors") during the bankruptcy proceedings.  On December 19,
1995, Search, the Fund Subsidiaries and the Committee agreed to a consensual
plan of reorganization (Joint Plan) which was approved by the Court on December
22, 1995.

        Final effectiveness of the Joint Plan as to each Fund Subsidiary is
dependent on its confirmation by the Court, which will occur, if at all, after
a vote of the holders ("Noteholders") of outstanding notes issued by the Fund
Subsidiaries ("Notes"). There can be no assurance that the Joint Plan as to
each Fund Subsidiary will become effective or that the Joint Plan as to each
Fund Subsidiary will be confirmed on essentially the same terms as fully
described in the Disclosure Statement. The final terms of the Joint Plan, if
they differ in any material fashion from the proposed terms, will be contingent
on, among other things, approval by Search's Board of Directors and a vote of
Search's shareholders to approve the increase in the authorized number of
shares of Common Stock and Preferred Stock to levels adequate to meet the
requirements of the proposed Joint Plan.

        If confirmed with respect to a particular Fund Subsidiary, the Joint 
Plan, as currently proposed, provides that Noteholders voting to accept the
Joint Plan may choose one of two options (the "Plan Options").  Under the First
Plan Option (the "Search Equity Option"), the Noteholders would essentially
exchange their Notes for the issuance by Search of a combination of shares of
Common Stock, shares of a new series of Convertible Preferred Stock ("New
Preferred Stock") and dividends accrued at 9% on the New Preferred Stock from
July 1, 1995 until the effective date of the Joint Plan.  Under the Second Plan
Option, the Noteholders could choose the continued collection or the sale of the
collateral securing their Notes and the distribution to the Noteholders of the
resulting cash proceeds (the "Collateral Option").  As to any one Fund
Subsidiary, the selection by the Noteholders of either Plan Option would be
implemented on a Noteholder-by-Noteholder basis. Noteholders who vote against
the Joint Plan will not be entitled to select between the Search Equity Option
and the Collateral Option but will receive treatment under the Search Equity
Option.  A pro rata share of the assets of the Fund Subsidiaries attributable to
Noteholders electing the Collateral Option will be transferred to the trustee of
a newly established trust to be held for the benefit of such Noteholders.  The
trustee will collect the motor vehicle receivables held by the trust and make
regular distributions to the Noteholders.  In the alternative, the motor vehicle
receivables will be sold by the trustee to the highest bidder, assuming a sale
price greater than the liquidation value of the receivables.  The pro-rata
portion of the assets of the Fund Subsidiaries attributable to Noteholders
electing the Search Equity Option will be transferred to Search. In addition to
the New Preferred Stock, the Common Stock and dividends, the Noteholders will
receive with respect to the unsecured portion of their claims, a pro-rata share
of five year warrants to purchase an aggregate of 5,000,000 shares of Common
Stock (the "Warrants").  The exercise price of the Warrants will be $2.00 during
the first year and increase by $.25 per year during the term of the Warrants. 
All Warrants not exercised prior to the expiration will be redeemed at a price
of $.25 per Warrant.

        The Joint Plan also contemplates establishment of a trust ("Litigation
Trust") for the benefit of holders of unsecured claims of Fund Subsidiaries for
which the Joint Plan is approved.  The trust will be established with a total
funding of $350,000 prorated among the confirming Fund Subsidiaries.  The
Litigation Trust will be authorized to pursue any claims and causes of action
of each Fund Subsidiary for which the Joint Plan is approved.  The Litigation
Trust will automatically terminate if the Common Stock trades at an average
price of $2.50 per share for 30 consecutive trading days during the first year
following the effective date of the Joint Plan.

        As a consequence of the consummation of the Joint Plan as to any Fund
Subsidiary, the former Noteholders of that Fund Subsidiary who elect the Search
Equity Option would ultimately own shares of Search's Common Stock and New
Preferred Stock.  The Notes and the Noteholders constitute essentially all of
the indebtedness and creditors, respectively, of the Fund Subsidiaries.  If the
Joint Plan is confirmed, as currently proposed, with respect to each of the
Fund Subsidiaries, an aggregate of approximately $69,320,000 of indebtedness of
the Fund Subsidiaries represented by the Notes would be canceled.  The total
assets to be transferred to Search as opposed to a transfer to the Noteholders
Trust will depend on the relative amounts of indebtedness of Noteholders
electing the Search Equity Option or the Collateral Option.

        The Joint Plan and Disclosure Statement describing the terms of the 
Joint Plan, Search, the Fund Subsidiaries, the terms of the New Preferred Stock
and the rights of the Noteholders and other claimholders are subject to review
and approval by the Court prior to being mailed to the Noteholders.  On December
22, 1995, the Court approved the Joint Plan and Disclosure Statement for mailing
to the Noteholders and other claimholders, together with ballots for registering
their votes for acceptance or rejection of the Joint Plan.  The Noteholders of
each Fund Subsidiary will be entitled to vote for or against the Joint Plan,
with respect to claims



                                       6
<PAGE>   7
represented by their Notes, as a separate creditor class.  The Disclosure
Statement was mailed to Noteholders on December 29 and 30, 1995, the final date
for receipt of ballots on the Plan is January 29, 1996. 

        Voting for the Joint Plan ended on January 29, 1996.  In an affidavit
submitted to the Bankruptcy Court, the tabulating agent provided a preliminary
tabulation which indicated that approximately 71% of the Noteholders
representing approximately 80% of the principal amount of the Notes outstanding
had voted on the Joint Plan.  Of the ballots received, 99% voted to accept the
Joint Plan.  Of the $55.5 million of Notes voted, $10.2 million, representing
18% of the Noteholders and 15% of the Notes outstanding, elected the Collateral
Option.  Under the terms of the Joint Plan, the remaining 82% of the
Noteholders and 85% of the Notes outstanding would receive the Search Equity
Option.  Such a significant percentage receiving the Search Equity Option would
provide Search with adequate cash, contracts receivable and equity to continue
operations and to provide for future growth.

        As a condition precedent to confirmation of the Joint Plan, either a
dismissal or approval by "final order" of the settlement agreement for the
O'Shea shareholder class action litigation (the "Shareholder Class Action") had
to be entered by the U.S. District Court.  In February 1996, the U.S. District
Court issued a "Preliminary Order Approving the Proposed Class Settlement".
The Court has preliminarily approved the settlement as "fair, reasonable, and
adequate" and set a date, April 26, 1996, for a further hearing to determine
whether the preliminary order should become final.  Since the proponents of the
Joint Plan did not wish to delay the confirmation of the Joint Plan until after
April 26, 1996, they have amended the Joint Plan to replace the requirement for
a final order approving the settlement with a requirement for a preliminary
order approving the settlement.  In the event that the Noteholders who have
voted to accept the Joint Plan might wish to change their election of an Option
under the Joint Plan, new ballots were sent in February 1996 to those
Noteholders to give them an opportunity to change their election of a Plan
Option.  Additionally, second ballots have been sent to those Noteholders who
did not vote by the January 29, 1996, deadline and to those Noteholders who
voted but did not elect a Plan Option.  While the ballots for the amendment and
the second ballots will change the results of the preliminary tabulation,
Search does not anticipate a significant change in the amount of cash,
contracts receivable and equity that it will receive when the Joint Plan is
finalized.

        A confirmation hearing for the Joint Plan is scheduled for March 1, 
1996. The Joint Plan could be effective as early as March 12, 1996.  While the
date for filing written objections has passed without any objections being
filed, if there are other significant objections to the Joint Plan, confirmation
could be delayed beyond that date.

        The primary adverse effect of the confirmation of the Joint Plan on
existing shareholders would be the dilution of their voting power from issuance
of the shares of the New Preferred Stock, Common Stock and Common Stock
equivalents.  The shares of New Preferred Stock would be convertible into
30,063,296 shares of Common Stock.  Search's existing shareholders would own
none of the newly issued shares of New Preferred Stock, and the Noteholders
would own none of the outstanding shares of the 12% Preferred Stock.  In
addition, the annual dividend requirements on the shares of New Preferred Stock
would be substantially less than the aggregate debt service requirements of the
Notes and would be reduced or disappear upon any conversion of the New
Preferred Stock into Common Stock.

        The accompanying financial statements include the cost associated with 
the Company's Fund Subsidiaries bankruptcy proceedings and these costs have been
separately disclosed in the statement of operations as a reorganization expense.

        The Fund Subsidiaries, which are debtors in possession, have accounted 
for all transactions related to the reorganization proceedings in accordance
with SOP 90-7.  Accordingly, all prepetition liabilities of the Fund
Subsidiaries that are expected to be impaired under the joint plan of
reorganization ultimately approved by the Bankruptcy Court are reported
separately in the consolidating balance sheet as liabilities subject to
compromise (see Note 5 for a description of such liabilities).  Expenses,
primarily professional fees, resulting from the reorganization proceedings, are
reported separately in the consolidating statement of operations as
reorganization expense.  Contractual interest obligations which are relieved
from payment as a result of the Chapter 11 proceedings are not accrued.

3.      CONTRACTS RECEIVABLE, ALLOWANCE FOR CREDIT LOSSES AND INTEREST INCOME

        In the fourth quarter of fiscal 1994, Search elected early adoption of
Statements of Financial Accounting Standards Nos. 114 and 118 ("SFAS 114"),
which address the accounting by creditors for impairment of a loan and related
income recognition and disclosures. In accordance with SFAS 114, contracts
receivable are analyzed on a loan-by-loan basis.  Search evaluates the
impairment of loans based on contractual delinquency, as well as other factors
specific to the notes receivable. When a concern exists as to the
collectibility of an account, interest income ceases to be recognized.  The
notes receivable, once impaired, are collateral dependent; that is once a note
receivable is in default Search looks to the underlying collateral for
repayment of the note receivable. Therefore at impairment Search records an
allowance for credit losses to record the note receivable at the fair value of
the collateral. If the measure of the impaired note receivable is less than the
net recorded investment in the note receivable, Search recognizes an impairment
by creating an additional allowance for credit losses in excess of the initial
allowance provided, with a corresponding charge to provision for credit losses.
The provision for credit losses is adjusted for any differences between the
final net proceeds of an impaired note receivable and its net carrying value.

        The Company records contract purchases at cost. Contractual finance
charges  are recorded as unearned interest and amortized to interest income
using the interest method.   Amortization of interest income ceases upon
impairment. An initial allowance for credit losses is recorded at the
acquisition of a note receivable equal to the unearned discount, the difference
between the amount financed and the acquisition cost.

        The recorded investment and related allowance for credit losses, 
excluding net loan origination costs, are summarized below for Search and
Unrestricted Subsidiaries:

<TABLE>
<CAPTION>
                                                                 As of December 31, 1995
                                          --------------------------------------------------------------------
                                           Number of            Total
                                             Active             Unpaid            Unearned             Net
                                          Receivables        Installments         Interest         Receivables
                                          -----------        ------------         --------         -----------
 <S>                                         <C>            <C>                <C>                <C>
 Impaired contracts                               150       $    546,000       $    80,000        $   466,000
 Unimpaired contracts                             859          3,063,000           400,000          2,663,000
                                                -----       ------------       -----------        -----------
 Total                                          1,009       $  3,609,000       $   480,000        $ 3,129,000
                                                =====       ============       ===========      
 Allowance for credit losses                                                                         1,434,000
 Contract receivables, net of                                                                      -----------
     allowance for credit losses                                                                   $ 1,695,000
                                                                                                   ===========
</TABLE>

<TABLE>
<CAPTION>
                                                                As of September 30, 1995
                                          --------------------------------------------------------------------
                                           Number of            Total
                                             Active            Unpaid             Unearned             Net
                                          Receivables       Installments          Interest         Receivables
                                          -----------       -------------         --------         -----------
 <S>                                            <C>         <C>                <C>                <C>
 Impaired contracts                               562       $  2,658,000       $   658,000        $ 2,000,000
 Unimpaired contracts                           1,116          4,707,000           642,000          4,065,000
                                                -----       ------------       -----------        -----------
 Total                                          1,678       $  7,365,000       $ 1,300,000        $ 6,065,000
                                                =====       ============       ===========      
 Allowance for credit losses                                                                         2,862,000
 Contract receivables, net of                                                                      -----------
     allowance for credit losses                                                                   $ 3,203,000
                                                                                                   ===========
</TABLE>




                                       7
<PAGE>   8
        The recorded investment and related allowance for credit losses, 
excluding net loan origination costs, are summarized below for Fund 
Subsidiaries:

<TABLE>
<CAPTION>
                                                                 As of December 31, 1995
                                          --------------------------------------------------------------------
                                           Number of            Total
                                             Active             Unpaid            Unearned             Net
                                          Receivables        Installments         Interest         Receivables
                                          -----------        ------------         --------         -----------
 <S>                                         <C>             <C>                <C>               <C>
 Impaired contracts                               707        $  3,665,000       $   672,000       $  2,993,000
 Unimpaired contracts                           7,714          41,301,000         7,720,000         33,581,000
                                                -----        ------------       -----------       ------------
 Total                                          8,421        $ 44,966,000       $ 8,392,000       $ 36,574.000
                                                =====        ============       ===========       
 Allowance for credit losses                                                                        13,540,000
                                                                                                  ------------
 Contract receivables, net of
     allowance for credit losses                                                                  $ 23,034,000
                                                                                                  ============
</TABLE>

<TABLE>
<CAPTION>
                                                                 As of September 30, 1995

                                           Number of            Total
                                             Active            Unpaid             Unearned              Net
                                          Receivables       Installments          Interest          Receivables
                                          -----------       -------------         --------          -----------
 <S>                                        <C>               <C>               <C>                <C>
 Impaired contracts                              1,761        $10,165,000       $  2,744,000       $  7,421,000
 Unimpaired contracts                            8,689         49,147,000          9,062,000         40,085,000
                                                 -----        -----------       ------------       ------------
 Total                                          10,450        $59,312,000       $ 11,806,000       $ 47,506,000
                                                ======        ===========       ============       
 Allowance for credit losses                                                                         15,761,000
 Contract receivables, net of                                                                      ------------ 
     allowance for credit losses                                                                   $ 31,745,000
                                                                                                   ============
</TABLE>

        At December 31, 1995, contractual maturities of contracts receivables 
for Search and unrestricted subsidiaries were as follows:


<TABLE>
<CAPTION>
                                    1996                1997               1998            Total
<S>                              <C>                  <C>                 <C>           <C>
Future Payments Receivable       $3,071,000           $534,000            $4,000        $3,609,000
Less Unearned Interest              429,000             51,000                 0           480,000
                                 ----------           --------            ------        ----------
                                 $2,642,000           $483,000            $4,000        $3,129,000
                                 ==========           ========            ======        ==========
</TABLE>

        At December 31, 1995, contractual maturities of contracts receivable
for Fund Subsidiaries were as follows:

<TABLE>
<CAPTION>
                                   1996               1997               1998             Total
<S>                             <C>                <C>                <C>              <C>
Future Payments Receivable      $28,522,000        $13,853,000        $2,591,000       $44,966,000
Less Unearned Interest            6,386,000          1,877,000           129,000         8,392,000
                                -----------        -----------        ----------       -----------
                                $22,136,000        $11,976,000        $2,462,000       $36,574,000
                                ===========        ===========        ==========       ===========
</TABLE>

        In the opinion of management, a portion of the contracts receivable 
will be repaid or extended either before or past the contractual maturity date. 
In addition, some contracts will default before maturity.  The above tabulation,
therefore, is not to be regarded as a forecast of future cash collections.

        Management has determined that the net cash flow from the Fund 
Subsidiaries will not be sufficient to fully retire the related Fund
Subsidiaries notes payable as discussed in Note 2, and as part of the Plan of
Reorganization discussed above, the Fund Subsidiaries filed for protection under
Chapter 11.





                                       8
<PAGE>   9
        The change in the allowance for credit losses is summarized as follows;

<TABLE>
<CAPTION>
                                                          Search and
                                                         Unrestricted
                                                         Subsidiaries          Fund Subsidiaries           Total
                                                         ------------          -----------------           -----
<S>                                                      <C>                     <C>                   <C>
Balance, at September 30, 1995                           $  2,862,000            $  15,761,000         $  18,623,000
Allowance recorded upon acquisition of loans                   24,000                1,489,000             1,513,000
Increase in allowance for credit losses                       829,000                4,552,000             5,381,000
Loans charged off against allowance                        (2,281,000)              (8,262,000)          (10,543,000)
                                                         ------------            -------------         -------------
Balance, at December 31, 1995                            $  1,434,000            $  13,540,000         $  14,974,000
                                                         ============            =============         =============
</TABLE>


        Most of Search's contracts receivable are due from individuals in large
metropolitan areas of Texas and other southern and western states.  To some
extent, realization of the receivables will be dependent on local economic
conditions.  Search and the Trustee for the Fund Subsidiaries hold vehicle
titles as collateral for all contracts receivable until such contracts are paid
in full.






                                       9
<PAGE>   10

4.      PREPETITION NOTES PAYABLE AND ACCRUED INTEREST SUBJECT TO COMPROMISE

        Notes payable of the Fund Subsidiaries are non-recourse to Search and 
its affiliated non-fund subsidiaries.  Related terms and interest rates for the
Fund Subsidiaries, all of which are in bankruptcy and default (See Note 2),
consisted of the following:

<TABLE>
<CAPTION>
                                                                             December 31, 1995 
                                                                             ----------------- 
 <S>                                                                           <C>
 Notes payable by ACF 91-III, bearing interest at 21%, require monthly
 interest payments at 15% through March 31, 1995, at which time
 principal and the remaining deferred interest accrued at 6% was due -         $   590,000
 in default at maturity date.

 Notes payable by ACP, bearing interest at 21%, require monthly
 interest payments of 15% through  April 30, 1995 at which time
 principal and the remaining deferred interest accrued at 6% was due -             610,000
 in default at maturity date.


 Notes payable by ACF, bearing interest at 18%, require monthly
 interest payments at 15% through December 31, 1994, at which time
 principal and the remaining deferred interest accrued at 3% was due -           1,506,000
 in default at maturity date.

 Notes payable by ACF 92-II, bearing interest at 15% due monthly,
 require payment of principal in full on December 31, 1995.                     10,000,000


 Notes payable by ACF III, bearing interest at 15% due monthly, require
 payment of principal in full on April 30, 1996.                                15,000,000

 Notes payable by ACF IV, bearing interest at 3% until October 15, 1993
 and 14% thereafter due monthly, require payment of principal quarterly
 from September 30, 1995 to December 31, 1996.                                  10,000,000

 Notes payable by ACF V, bearing interest at 12% due monthly, require
 payment of principal quarterly from October 1, 1996 to December 31,            19,872,000
 1997.


 Notes payable by ACF VI, bearing interest at 12% due monthly, require
 payment of principal quarterly from July 1, 1997 to June 30, 1998.             10,675,000
                                                                               -----------
                                                                                68,253,000
 Accrued Interest                                                                1,067,000
                                                                               -----------
                                                                               $69,320,000
                                                                               ===========
</TABLE>

Contracts receivable owned by each Fund Subsidiary are pledged as collateral
for the respective notes payable of each entity.

        As of their maturity ACF, ACF 91-III and ACP stopped accruing interest 
on the remaining unpaid principal.  As these Fund Subsidiaries are in default,
it is currently management's position that the accrual of interest is not
warranted since each Fund Subsidiary will not have sufficient assets to fully
retire the principal portion of the notes.

        The August 14, 1995 bankruptcy filing of the individual Fund 
Subsidiaries was an event of default for all of the Fund Subsidiaries under the
terms of their indenture agreements.  In accordance with SOP 90-7, contractual
interest obligations which are relieved from payment as a result of the Chapter
11 proceedings are not accrued. Management has presented the noteholders a
proposal for a debt-to-equity exchange more fully described in Note 2 and in the
Joint Disclosure Statement filed with the Bankruptcy Court.

        On the December 31, 1994 maturity date for ACF there was $3,175,000 in 
the ACF sinking fund to be applied to obligations of $5,406,000.  ACF's
insufficient cash balance constituted a default under its indenture agreement
with Search and Texas Commerce Bank National Association ("Trustee").  As of
December 31, 1995, ACF has $128,000 in remaining principal and interest on
receivables.

        On the March 31, 1995 maturity date for ACF 91-III, there was $538,000 
in cash to be applied to obligations of $1,195,000.  ACF 91-III's insufficient
cash balance constituted a default under its indenture agreement with the
Trustee.  As of December 31, 1995, ACF 91-III has $96,000 in remaining principal
and interest on contract receivables.

        On April 30, 1995 maturity date for ACP, there was $525,000 in cash to 
be applied to obligations of $1,180,000.  ACP's insufficient cash balance
constituted a default under its indenture agreement with the Trustee.  At
December 31, 1995, ACP has $103,000 in remaining  principal and interest on
contracts receivable.

        On December 31, 1995 maturing date for ACF 92 - II, there was
$4,502,000 in cash to be applied to obligations of $10,000,000.  ACP 1992-II's
insufficient cash balance constituted a default under its indenture agreement
with Search and Texas Commerce Bank National Association ("Trustee").  As of
December 31, 1995, ACF 92-II had $2,381,000 in remaining principal and
interest on contracts receivable.

        The filing of bankruptcy created a default in each Fund subsidiary not
currently in default at August 14, 1995.  The U.S. Bankruptcy Court has granted
the continued use of cash collateral.  Under the cash collateral motions, the
Fund subsidiaries continue to pay service and management fee revenue to Search.
Servicing and management fee revenue for Search was $715,000,





                                       10
<PAGE>   11
and $741,000 for the three months ended December 31, 1995 and 1994,
respectively, and is included as a reduction of general administrative expenses
in the accounts of Search.

        As of December 22, 1995, the consensual joint plan of reorganization was
approved by the U.S. Bankruptcy Court for distribution to noteholders.
Confirmation of the joint plan will be sought from the court after tallying of
the noteholders votes.  (See note 2 for further discussion of the Joint Plan of
Reorganization).


5.      LINES OF CREDIT

        On June 17, 1994, SFC entered into an agreement for a line of credit 
with General Electric Capital Corporation ("GECC").  The line of credit
initially had a maximum borrowing commitment of $20,000,000 and was limited to a
percentage of eligible contracts held by SFC.  The line of credit is secured by
all SFC assets and is guaranteed by Search.

        In January 1995, SFC signed an agreement with GECC to revise the 
existing restrictive covenants and to eliminate any future advances under the
line of credit.  On March 22, 1995, GECC advised Search that it and SFC were in
default of various provisions of the original loan agreement and the January
1995 agreement.  As a result of these defaults, GECC declared the outstanding
balance, as of that date, due and payable.  Search, SFC and GECC established a
pay-out plan which requires a minimum payment of $500,000 per quarter.  SFC is
required to remit cash receipts of all pledged contracts to GECC until the line
of credit is repaid.  As of December 31, 1995, the line had a balance of
$580,000.  Interest is accrued daily at the average of the one month London
Interbank Offered Rates ("LIBOR") for the preceding month plus 5.1% (10.98% at
December 31, 1995). SFC recorded $22,000 interest expense to GECC during the
three months ended December 31, 1995.

        On November 30, 1995, Search and certain of its non-fund subsidiaries 
and affiliates entered into a funding agreement ("Funding Agreement") with Hall
Financial Group, Inc. ("HFG").  Under the terms of the Funding Agreement, HFG
agreed to loan to Search up to $3,000,000, obtained Warrants to purchase up to
3,000,000 shares of Search Common Stock for $2.00 per share, and agreed, subject
to certain limitations and restrictions, to a plan funding commitment under
which HFG would loan the Fund Subsidiaries funds for a cash-out option under a
plan to be proposed by Search at an amount equal to 80% of Present Value of the
Notes.

        The loan is comprised of three notes.  Note I is in the amount of
$1,284,487.  Note II is in the amount of $715,513.  Note III is in the amount
of $1,000,000.  Notes I and II bear interest at the rate of 12% and mature on
the earlier of the Effective Date or 90 days after their execution unless
extended for 60 days by Search in which case the interest rate increased to
14%.  Note III bears interest at the rate of 6% and matures in one year.  Note
I has been fully funded, Note II will only be funded if necessary to payoff the
GECC Line of Credit, and Note III has been fully funded.  Notes I and III are
convertible into Search Common Stock up to a total of 2,500,000 shares
including any shares converted in payment of Note III.  Note III can be repaid
entirely with Search Common Stock.  Search and its non-fund subsidiaries
recorded $14,000 in interest  expense to HFG in the three months ended December
31, 1995.  

        As of December 31, 1995, the Notes are secured by approximately
$3,600,000 in auto receivables owned by Search and Search Funding Corp.,
2,250,000 shares of Search Common Stock currently held as treasury stock, and
100% of the stock of Search Funding Corp., Automobile Credit Acceptance Corp.,
Automobile Credit Holdings, Inc., and Newsearch, Inc.  HFG is entitled to elect
one director to Search's board upon conversion of Note III and one additional
director upon purchase of $1,000,000 in Net Present Value of Notes under the
plan funding commitment.

        The Funding Agreement originally required HFG to make certain loans to 
the Bankrupt Subsidiaries upon completion of the Joint Plan.  Search and the
Committee have determined not to include any funding of the Bankrupt
Subsidiaries in the latest version of the Joint Plan.  Search and HFG have
agreed to an amendment to the Funding Agreement that provides HFG the option to
purchase, in its sole discretion, Common Stock, New Preferred Stock, and
Warrants for a purchase price equal to 80% of the Present Value attributable to
such securities for purpose of their issuance to Noteholders under the Joint
Plan, less an amount equal to the accrued dividends attributable to the New
Preferred Stock that is received by HFG.  HFG would be entitled to purchase
securities in an amount up to a maximum of $6,000,000 in Present Value, which
the Company estimates would represent a purchase price payable by HFG of
approximately $4,426,000.  The proceeds of any shares so purchased will be paid
to Search.  Under the Funding Agreement, as amended, Search will give HFG the
right to elect another director if HFG purchases $1,000,000 Present Value of
such securities.  HFG will also have registration rights for such securities
similar to those provided by the HFG Warrants.





                                       11
<PAGE>   12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS 
OF OPERATIONS

GENERAL

The Company is an industry specific financial services company specializing in
the purchase, management, and securitization of used motor vehicle receivables.
These receivables are secured by medium-priced, used automobiles and light
trucks which typically have been purchased by consumers with substandard credit
histories at retail prices ranging from $5,000 to $10,000.  The Company
purchases these receivables from a network of unaffiliated new and used
automobile dealers (the "Dealer Network") at discounts ranging generally from
40% to 55% of total unpaid installments, which installments include both
principal and interest.  The members of the Dealer Network generate the
receivables and offer them for sale on a non-exclusive basis to the Company.
Members forego some future profit on each receivable sold to the Company in
exchange for an immediate return of their invested capital.  The Company
administers its receivables purchasing, servicing and management activities
utilizing its proprietary Auto Note Management System software, developed and
maintained by full-time Company systems personnel.   The Company commenced its
used motor vehicle receivables purchasing and servicing business  in 1991.

RESULTS OF OPERATIONS

    Since September 1994, the Company has purchased receivables only for the
Fund Subsidiaries.  In November 1995, the Company's new interim management
determined to sharply reduce all receivables purchasing activities for the
Company while attempting to evaluate and, if necessary, modify or remedy
purchasing and collection procedures.  In January 1995, the Company's new
President caused the Company to resume normal levels of receivables purchasing
activities but at the same time tightened certain purchasing procedures where
permitted.  Management was constrained from any substantial changes in
purchasing criteria for receivables purchased for its public Fund Subsidiaries
due to restrictions set forth in the trust indentures governing the
indebtedness of those subsidiaries.

    The indentures established specific criteria with respect to the price,
purchase discount, term, downpayment, installments and interest rate for the
receivables it purchases and also with respect to price, cost to the dealer,
average wholesale value, age, mileage and make of the motor vehicles securing
such receivables.  The Company believes that the most significant of these
criteria are as follows:

    o    The average purchase price of a receivable may not exceed 53% of the
         total remaining unpaid installments of the receivables;
    o    The average purchase price for a receivable may not significantly
         exceed the approximate average wholesale value and/or the dealer's
         actual cost for the underlying financed vehicle;
    o    The receivable generally must have an original term of 36 months or
         less;
    o    The age of each financed vehicle may not generally exceed eight years
         for automobiles or nine years for trucks;
    o    The obligor on the receivable is required to make a down payment in
         cash plus a net trade-in allowance of at least 25% of the dealer's
         cost in the financed vehicle;
    o    The interest rate on the receivable must not violate any applicable
         usury laws; and
    o    The dealer's actual cost for a financed vehicle generally must be
         greater than $2,000 and less than $6,200.

    Generally, to satisfy these credit criteria, an obligor must provide
verifiable personal references, must have a valid driver's license, must have
been a resident of the local area of receivable origination for a minimum of
one year, must have verifiable current employment and credit history and must
be at least 18 years of age.

    During 1995, the Company tightened its purchasing procedures
and the application of the criteria beyond that required by the indentures.
For example, the Company has commenced to adjust the purchase prices offered to
dealers for receivables based on the perceived credit risk of the obligor and
the wholesale vehicle value, to verify directly with obligors customer purchase
satisfaction, downpayment amounts and credit information, to monitor through
the ANMS receivable transactions from dealers whose receivables have
historically lower collection rates and to reject receivables from known credit
abusers.  In addition, the Company commenced more strictly to apply the
foregoing credit criteria. The Company intends to maintain the same level of
underwriting criteria related to its current operations until confirmation of
joint plan of reorganization.

    The Company's receivables purchasing personnel review each receivable for
compliance with the foregoing criteria, utilizing standard and supporting
documentation provided via facsimile by the selling dealer and national
computerized databases that automatically interact with the Company's
proprietary Auto Note Management System Software ("ANMS").  The Company
verifies, by reference to published wholesale vehicle value guides, the average
wholesale prices of the underlying vehicles.  In most instances, the Company
performs this pre-purchase due diligence and processes purchases within one
hour, thereby assisting the dealer in the timely sale of the underlying
vehicle.  This one hour turnaround time is considered by the Company to be an
important competitive factor, and the Company constantly monitors its
turnaround time through its ANMS. The Company acquires less than half of the
receivables offered by dealers in the Dealer Network. In a typical receivable
purchase by the Company, a dealer will make a profit of approximately $900 on a
vehicle which cost the dealer $4,000 and was held in its inventory less than 30
days.

The tightened purchasing criteria coupled with decreases in funds available for
reinvestment in contracts caused the volume of contracts purchased to decrease. 
The Company ceased additional securitization activities during the first fiscal
quarter of 1995.  As of December 31, 1995, only ACF V and ACF VI were
purchasing additional contracts from excess cash flow.

    While the Company purchases groups of receivables, it typically purchases
individually selected receivables.  Purchasing receivables from dealers on an
individual basis in accordance with the Company's purchasing criteria enables
the Company to more readily control conformity to collateral and credit
requirements and compliance with applicable laws and regulations.

    The Company's underwriting strategy differs markedly from many of its
competitors.  Many of the Company's competitors usually make only bulk
purchases of receivables and/or retain recourse against the selling dealer for
mere non-payment of the receivable through quasi-loan arrangements, dealer
holdbacks or reserve accounts or other collection collateral or guaranties.  As
a result of the assumption from the dealer of more collection risk and its
purchase of individual receivables, the Company is able to purchase receivables
at greater discounts than these competitors.  The purchase and credit criteria
and verification procedures also differ from competitor to competitor, although
the variations are smaller for those competitors directly competing with the
Company in its market niche.  Unlike the Company, certain other competitors
will only purchase "seasoned" receivables, i.e. receivables that have existed
and performed in an acceptable manner for a period of time.

    Receivables Servicing and Collections.  Upon purchase of each receivable,
the Company instructs each obligor to remit payments directly to the Company's
post office box, utilizing preprinted payment coupon booklets. Payments may
also be made in person at the Company's offices or via Western Union Quick
Collect service or through Ace Cash Express.  Though the Company's collections
operations are based at the Company's home office in Dallas, Texas, the Company
operates branch collections offices in the following cities:  Garland, Texas;
Arlington, Texas; Houston, Texas; Memphis, Tennessee.

    The Company has a staff of collection personnel that monitor payments of
the receivables and contacts obligors via telephone when payments are
delinquent.  Collections personnel generally have (i) a minimum of one year
collection experience, (ii) the ability to obtain corrective action on
delinquent accounts and (iii) knowledge and ability to comply with state and
federal debt collection laws.  Generally, if at least three semi-monthly
payments are past due and the obligor fails to make any payments, including
partial payments, for a period of 30 days, the receivable is subject to
enhanced collection efforts, including intensified telephone and written
contacts aimed at identifying the likelihood and expected amount of payment on
the receivable.  At any time thereafter, the Company may (i) contract with an
independent third party repossession company to locate and peacefully repossess
the motor vehicle securing the receivable or (ii) seek and obtain an order of a
court of competent jurisdiction for turnover of the motor vehicle.  The
decision to repossess a motor vehicle is made on a case-by-case basis by a
collections unit manager.  Factors considered by these unit managers include
recent payments and willingness on the part of the obligor to commit to payment
upon a date certain. Any delays in repossession expose the Company to the risk
of reduced resale value for the vehicle due to additional mileage and the
possibility of damage or lack of necessary maintenance or repairs to the
vehicle.

    The Company's collection and repossession activities are administered
through its ANMS.  The Company's ability through the ANMS to relationally
cross-reference receivable collection statistics against vehicle, dealer,
customer and geographic data enables the Company to monitor receivables and
adjust purchase procedures and prices.

    Following repossession, the Company sells each repossessed vehicle on a
wholesale basis to dealers at an unaffiliated motor vehicle auction at the
highest available bid.  During the period from October 1994 until December
1995, the Company sold many of its repossessed vehicles directly to consumers
at used car lots operated by the Company.  The sale of the vehicles in this
manner, rather than on a wholesale basis, created another receivable with
associated risks of default and payment delays.  Because the profits generated
by these lots was not  sufficient to justify their existence, the Company had
closed all three of its retail lots as of December 31, 1995, which will result
in reduction of direct costs and general and administrative expenses in future
periods.  The Company currently holds approximately 726 receivables originated
through these retail lots.

    The Company, in the past, subcontracted with LSI Financial Group ("LSI") to
provide collection and repossession services with respect to approximately 5%
of the Company's motor vehicle receivables.  In September 1995, the Company
transferred all collection and repossession services previously performed by
LSI to its own collections department and now services all receivables itself.

    Expansion into Other Credit Markets.  Following completion of the Joint
Plan, the Company anticipates implementation of a program that would expand its
operations into higher credit-rated receivables.  This expansion would continue
to target borrowers with sub-standard credit histories; however, it would focus
on borrowers with increased job and residence stability, higher income, and
re-established positive credit.  If implemented, receivables purchased under
the new program would carry interest rates ranging from approximately 18% to
25%.  The receivables purchased would be secured primarily by automobiles up to
6 years in age, having been driven no more than (i) an average of 25,000 miles
per year and (ii) having 80,000 total miles.  Participating dealers would be
primarily franchised dealers and some independent dealers.

    The Auto Note Management System (ANMS).  Since its inception, the Company
has pursued a strategy of developing in- house, receivable purchase and
collection operating systems utilizing personal computer-based software and
hardware. The Company's current ANMS and related systems are connected with
outside databases, such as national credit bureaus, wholesale vehicle valuation
guides, and major dealers.  These systems contribute to the Company's ability
to satisfy the Dealer Network's needs by enhancing the Company's ability to
meet its targeted one-hour receivable processing commitment.  In addition, the
Company's ability to relationally cross-reference receivable collection
statistics against vehicle, dealer, customer and geographic data enables the
Company to monitor receivables and adjust purchasing activities and criteria
according to such comparative statistics.  The Company maintains a full-time
staff of personnel who develop and maintain the ANMS.

Total contract collections over the life of a group of loans are primarily
dependent on repossession rates, number of payments received prior to
repossession and repossession proceeds.  While eventual repossession rates can
only be forecast during the life of a group of contracts, the percentage of
contracts that have not made their first payment ("first payment defaults"), is
a good indication of the quality of receivable purchased within a specific
period.  The individual contracts purchased and related first payment default
rates are shown below:

<TABLE>
<CAPTION>
          Period                         Contract Quantity         First Payment
                                                                    Default Rate
<S>                                                  <C>                   <C>
Year Ended December 31, 1991                           331                  2.4%
Year Ended December 31, 1992                         3,170                  7.0%
Quarter Ended March 31, 1993                         1,945                  6.8%
Quarter Ended June 30, 1993                          1,728                  5.9%
Quarter Ended  September 30, 1993                    2,474                  9.0%
Quarter Ended December 31, 1993                      3,361                 11.7%
Quarter Ended March 31, 1994                         4,884                  9.1%
Quarter Ended June 30, 1994                          4,604                 11.3%
Quarter Ended September 30, 1994                     4,122                 12.5%
Quarter Ended December 31, 1994                      1,334                  9.3%
Quarter Ended March 31, 1995                         1,083                  5.0%
Quarter Ended June 30, 1995                          1,491                  3.0%
Quarter Ended September 30, 1995                     1,235                  3.2%
Quarter Ended December 31, 1995                        764                  4.1%
</TABLE>

    The first payment default rates suggests that when contract purchasing
volume increased in 1994, the quality of the contracts being purchased may have
deteriorated.  After analysis of these contracts, the Company realized that the
high number of first payment defaults were due, in part, to (i) Dealers
overstating to the Company the amount of the downpayment made by obligors on
the receivable and (ii) Dealers overstating the value of the automobile
securing the receivable.  Obligors, because they had little downpayment
invested in the automobile or because they felt they had paid too high a price
for the automobile, were willing to allow the automobile to be repossessed
rather begin making payments.  After year end September 1994, the Company was
able to reduce first payment defaults by being more selective in the contracts
purchased and initiating personal interviews in order to verify amount of
downpayments.

Comparison of Three Month Periods Ended December 31, 1995, and 1994

        During the three months ended December 31, 1995, the Company purchased
764 contracts at a cost of $3,418,000 or $4,474 per contract compared to
$6,162,000 or $4,619 per contract in the same period of 1994. The Company
purchased no bulks contracts in either three month period. 

        During the three months ended December 31, 1995, the Company recorded
interest revenue of $2,589,000 compared to $4,914,000 for the same period in
1994.  The 47% decrease in interest revenue is due to a decrease in interest 
earning gross accounts receivable from
        




                                       12
<PAGE>   13
$79,445,000 to $44,364,000 at December 31, 1995.  

        Interest expense decreased from $3,354,000 to $774,000 for the three
months ended December 31, 1994 compared to the three months ended December 31,
1995.  This 77% decrease was due to the fund subsidiaries bankruptcy filings at
which time these funds ceased accruing interest expense.  For the three months
ended December 31, 1995, only amortization of deferred offering cost was
recorded in the statement of operations.

        The provision for credit losses decreased from $6,055,000 to $5,381,000
for the three months ended December 31, 1994 and 1995, respectfully.    This
decrease of $674,000 represents a 11% decrease over the three month period
ending December 31, 1994, and is necessary due to continued deterioration of 
the Company's loan portfolio.

        General and Administrative expenses increased from $3,807,000 to
$4,518,000.  The increase in general and administrative  expenses reflects
increases in car lot and retail facilities operating expenses opened for three
months in December 31,1995 compared to one month in the same period in 1994. 
Subsequent to December 31,1995, the Company closed all remaining car lots and
related facilities.  The Company recorded $250,000 of special charge related to
termination of leases, employment and other costs related to these operations.

        Net loss increased from $8,302,000 to $8,488,000 for the three months
ended December 31, 1994 compared to December 31, 1995.  This increase of
$186,000 is due to decreased interest revenue of $2,325,000 offset by decreases
in interest expense of $2,580,000 and provision for credit losses of $674,000.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

        During the three months ended December 31, 1995, the Company incurred a
cash loss of $84,000 in its operations as compared to a cash loss of $1,790,000
from operations during the three months ended December 31, 1994.  Although the
cash operating loss for the three months ending December 31, 1995 decreased     
$1,706,000 from a net loss of $1,790,000 for the same three months in 1994, a
significant portion of the 1995 decrease resulted from increases in accrued
expenses and accounts payable, which are non-cash charges against earnings.

        Neither Search nor any subsidiary or affiliate of Search has guaranteed
repayment of the Fund Subsidiaries' Notes.  Proceeds from each Fund
Subsidiary's receivables are restricted to repayment of that Fund Subsidiary's
Notes, the payment of certain allowed expenses, including servicing fees, and
the purchase of additional receivables.  Interest on the Fund Subsidiaries'
Notes has not been paid since June 1995 due to the Bankruptcy Proceedings.
During the Bankruptcy Proceedings, the Bankrupt Subsidiaries have continued to
operate under an order from the Bankruptcy Court authorizing the use of
cash-collateral for normal expenditures including servicing fees payable to
ACAC.  Upon Confirmation of the Joint Plan, the restricted cash balances of the
Fund Subsidiaries, which approximated $15 million as of January 31, 1996, would
be apportioned to Search and to the Noteholders Trust (based on ballots
electing the Collateral Option), net of administrative expenses of the
bankruptcy proceedings and $350,000 funding for the Litigation Trust.

        With respect to each Bankrupt Subsidiary, the Joint Plan of the Bankrupt
Subsidiaries provides that if the Joint Plan is approved, the Noteholders that
vote for the Joint Plan may elect one of two methods that deal with the
collateral securing their Notes.  The Search Equity Option generally allows the
Noteholder to receive Search securities in exchange for the release of liens on
collateral and transfer to Search of a proportionate share of the assets of the
Bankrupt Subsidiaries.  The Collateral Option allows the Noteholder to have a
proportionate share of assets of the Bankrupt Subsidiaries transferred to a
trust that will collect the remaining receivables and distribute the resulting
cash to the Noteholders.  Under this option, a servicer may continue collecting
the receivables or the receivables may be sold.  If ACAC is not selected as
servicer, it will not receive servicing fees for the collection of the
remaining receivables.

Financing Activities

        During the three months ended December 31, 1995, $1,164,000 of cash was
provided by financing activities compared to $1,650,000 of cash being utilized
during the same period in 1994.  This increase of cash of $2,814,000 is due to
net borrowings under HFG agreements exceeding payments to GECC by $1,222,000
compared to net payments to GECC of $402,000 during the same period in 1994.
Additionally, the Company's payment of notes payable, prepetition, exceeded its
notes payable proceeds by $990,000 during the same three months ending December
31, 1994.





                                       13
<PAGE>   14
        If a sufficient number of the Noteholders elect the Search Equity Option
and the Joint Plan is confirmed by the Bankruptcy Court, the amount of
unrestricted cash, contracts receivable and equity available to Search would be
adequate to allow Search to continue operating as a going concern.  If an
insufficient number of the Noteholders elect the Search Equity Option or if the
Joint Plan is not confirmed by the Bankruptcy Court, the lack of sufficient
equity would reduce the availability of new financing and result in lower
interest revenues to support Search's current level of operations.
Consequently, operations would have to be reduced or, in the extreme, Search's
ability to continue as a going concern would be jeopardized.  Based upon voting
through January 29, 1996 on the Joint Plan, Search believes that the Joint Plan
will be confirmed on the March 1, 1996, the confirmation date set by the
Bankruptcy Court, and that a sufficient number of Noteholders will elect the
Search Equity Option to allow Search to continue operations as a going concern.

        Voting for the Joint Plan ended on January 29, 1996.  In an affidavit
submitted to the Bankruptcy Court, the tabulating agent provided a preliminary
tabulation which indicated that approximately 71% of the Noteholders
representing approximately 80% of the principal amount of the Notes outstanding
had voted on the Joint Plan.  Of the ballots received, 99% voted to accept the
Joint Plan.  Of the $55.5 million of Notes voted, $10.2 million, representing
18% of the Noteholders and 15% of the Notes outstanding, elected the Collateral
Option.  Under the terms of the Joint Plan, the remaining 82% of the
Noteholders and 85% of the Notes outstanding would receive the Search Equity
Option.  Such a significant percentage receiving the Search Equity Option would
provide Search with adequate cash, contracts receivable and equity to continue
operations and to provide for future growth.

        As a condition precedent to confirmation of the Joint Plan, either a
dismissal or approval by "final order" of the settlement agreement for the
O'Shea shareholder class action litigation (the "Shareholder Class Action") had
to be entered by the U.S. District Court.  In February 1996, the U.S. District
Court issued a "Preliminary Order Approving the Proposed Class Settlement".
The Court has preliminarily approved the settlement as "fair, reasonable, and
adequate" and set a date, April 26, 1996, for a further hearing to determine
whether the preliminary order should become final.  Since the proponents of the
Joint Plan did not wish to delay the confirmation of the Joint Plan until after
April 26, 1996, they have amended the Joint Plan to replace the requirement for
a final order approving the settlement with a requirement for a preliminary
order approving the settlement.  In the event that the Noteholders who have
voted to accept the Joint Plan might wish to change their election of an Option
under the Joint Plan, new ballots were sent in February 1996 to those
Noteholders to give them an opportunity to change their election of a Plan
Option.  Additionally, second ballots have been sent to those Noteholders who
did not vote by the January 29, 1996, deadline and to those Noteholders who
voted but did not elect a Plan Option.  While the ballots for the amendment and
the second ballots will change the results of the preliminary tabulation,
Search does not anticipate a significant change in the amount of cash,
contracts receivable and equity that it will receive when the Joint Plan is
finalized.

        A confirmation hearing for the Joint Plan is scheduled for March 1, 
1996. The Joint Plan could be effective as early as March 12, 1996.  While the
date for filing written objections has passed without any objections being
filed, if there are other significant objections to the Joint Plan, confirmation
could be delayed beyond that date.

        Search obtained liquidity financing from HFG in November 1995.  
Repayment of the HFG financing is due on the earlier of February 27, 1996 or the
effective date of the Joint Plan.  The effective date of the Joint Plan will not
occur before the maturity date of the HFG notes; however, the maturity date can
be extended for an additional 60 days at the request of Search.  It is not
likely that further sources of liquidity financing will be available pending
confirmation of the Joint Plan.  Delays in confirmation of the Joint Plan or
discontinuance or reduction of servicing and management fees currently allowed
under interim cash-collateral orders granted by the Bankruptcy Court beyond the
60 day extension period of the HFG notes would have severe liquidity effects for
Search.  If the effective date of the Joint Plan is delayed beyond the 60 day
extension period, Search would require further extension of the maturity date of
the HFG notes and would require additional working capital financing to continue
day-to-day operations and servicing of  contract receivables.

        Upon confirmation of the Joint Plan, HFG has an option to purchase, in 
its sole discretion, Common Stock, New Preferred Stock and Warrants in Search
for a price up to $4.4 million.  The proceeds of any shares so purchased would
be paid to Search.  HFG also has the option to convert a portion of the
financing that HFG provided Search in November 1995 into a maximum of 2.5
million shares of Common Stock of Search.  Search has an option to repay up to
$1 million of the HFG financing in Common Stock of Search.  Any such conversion
by HFG or Search would reduce Search's current notes payable liability to HFG.

Investing Activities

        During the three months ended December 31, 1995, the Company utilized
$661,000 of cash compared to $3,044,000 of cash being provided by investing     
activities during the same three month period in 1994.  This decrease in cash
from investing activities of $3,711,000 is due to an increase in  restricted
cash of $4,119,000 partially offset by an increase in net purchases and
principal and repossession proceeds of $337,000.





                                       14
<PAGE>   15
        Search has obtained tentative financing commitments for a warehouse line
and a securitization line of credit subject to confirmation of the Joint Plan,
due diligence to be performed by the lender and completion of definitive
documentation.  This financing would be utilized for the purchase of contract
receivables after the confirmation of the Joint Plan.  The financing as
contemplated would be adequate to fund anticipated future operations of Search.
If the Joint Plan is not confirmed or if the confirmation is delayed, the
lender may decide to withdraw its commitment.  Search may be unable to obtain
alternative financing if the Joint Plan is not confirmed.

General

        The consolidated financial statements have been prepared on a going 
concern basis, which contemplates continuity of operations, realization of
assets and liquidation of liabilities in the ordinary course of business. 
However, as a result of the Bankruptcy proceedings, and the reliance by Search
on the cash flows derived from the Fund Subsidiaries, such realization of assets
and liquidation of liabilities are subject to significant uncertainty.

Effective Interest Rates

        Interest expense is derived from the Notes issued by Fund Subsidiaries
and consists of both stated and effective rates.  The stated rate reflects the
interest due to be paid to the note holder while the effective rate includes
the amortization of offering costs.  The Company's weighted average stated
interest rates and weighted average effective cost of borrowing, after
considering the amortization of offering costs, has been:

<TABLE>
<Capition
                                                Year Ended         9 Months Ended         Year Ended         Year Ended
                                                 12/31/92            9/30/93                9/30/94            9/30/95
                                                ------------------------------------------------------------------------
<S>                                                <C>                 <C>                   <C>                <C>
Weighted average stated interest rate              17.9%               15.6%                 14.7%              11.7%
Weighted average effective cost of borrowing       24.8%               21.5%                 20.2%              16.1%
</TABLE>

        The stated and effective rates reflect a reduction in interest rate due
to interest expense not recorded since the date of filing for  bankruptcy and
current defaults by the Fund Subsidiaries as discussed in Note 2 of the
accompanying consolidated financial statements.  

Unrestricted Cash Flow Activity

For the three months ended December 31, 1995, Search collected $715,000 in Fund
servicing fees, loan origination fees, and other fees.  This cash flow along
with interest and principal from receivables owned by Search, is used to find
the general and administrative expenses excluding those of the Funds.

INFLATION

Historical statistics indicate that collateral value, vehicle sales prices, and
receivable interest rates are relatively stable within the Company's market
segment.  However, significantly changing prices could impact the Company's
ability to acquire receivables at favorable prices.  Changes in the Company's
interest rates can affect Company interest expenses.
   




                                       15
<PAGE>   16
                                   PART II
                              OTHER INFORMATION


LEGAL PROCEEDINGS

    On August 14, 1995, Automobile Credit Finance, Inc., Automobile Credit
Finance 1991-III, Inc., Automobile Credit Finance 1992-II, Inc., Automobile
Credit Finance III, Inc., Automobile Credit Finance IV, Inc., Automobile Credit
Finance V, Inc., Automobile Credit Finance VI, Inc. and Automobile Credit
Partners, Inc., which are wholly-owned subsidiaries of Search, each filed, on
August 14, 1995, a petition in the U.S. Bankruptcy Court in the Northern
District of Texas, Dallas Division ("Court"), seeking protection under Chapter
11 of the U.S. Bankruptcy Code ("Code").  These cases have been consolidated as
one case for administration (Case No. 395-34981-RCM-11) (See Note 4 for
additional discussion).

    On July 7, 1994, a class action civil lawsuit was filed against Search,
certain of its officers and directors, one of its former accounting firms and
the lead underwriter and one of its principals involved in the issuance of
Search's Common Stock.  This action was filed in the United States District
Court for the Northern District of Texas, Dallas Division, and is styled Ellen
O'Shea, et al v. Search Capital Group, Inc., et al.  Civil Action No.
3:94-CV-1428-J.  On July 11, 1994, and on July 13, 1994, similar actions in
John R. Boyd, Jr., et al. v. Search Capital Group, Inc., et al., Civil Action
No.  3:94-CV-1452-J; and Gary Odom v. Search Capital Group, Inc., et al,. Civil
Action No. 3:94-CV-1494-J, respectively, were also filed.  The above cases were
consolidated in September 1994 under Civil Action No. 3:94-CV-1428-J (the
"Class Action Suit").

    The Class Action Suit was filed on behalf of all purchasers of Search's
Common Stock during the period beginning December 10, 1993 and ending through
July 5, 1994, which was the date that Search made a public announcement
regarding lower earnings.  The Class Action Suit contends that Search made
misstatements in its registration statements concerning Search's computerized
system, accounting methodologies used by Search, collectibility of its
receivables and repossession rates of autos that secured its receivables.  The
plaintiffs also complained of allegedly false public filings, press releases
and reports issued during 1994.  The plaintiffs sought damages, rescission ,
punitive damages, pre-judgment interest, fees, costs, equitable relief and/or
injunctive relief and such other relief as the court may deem just and proper.

    Search's management and counsel for the plaintiffs have entered into a
stipulation of settlement (the "Settlement") of the Class Action Suit.  This
Settlement was initially filed with the court on August 4, 1995, and an amended
version of the Settlement was filed on November 13, 1995.  No objections to the
Settlement have been received to date.  The Settlement provides for the payment
by Search of $287,500 upon approval of the Settlement ($100,000 has already
been deposited in an escrow account maintained by the plaintiff's lawyers), and
the issuance by Search of its Common Stock with a value of $2,612,500 or cash.
The settlement provides that the number of shares of Common Stock to be issued
to the Class shall be computed using the average of the bid/ask price of the
last 30 days ending generally on the date that the Settlement becomes final
prior to the date of distribution of the shares.

    Final effectiveness of the Settlement is conditioned upon court
certification of the class of plaintiffs for the Settlement and court approval
of the fairness of the Settlement.  Search believes that the Settlement is fair
and equitable to the class of plaintiffs and will ultimately be approved.  A
final, non-appealable order approving the Settlement is a condition precedent
to the implementation of the Search Equity Option under the Joint Plan.  In
February 1996, the U.S. District Court issued a "Preliminarily Order Approving
the Proposed Class Settlement."  The Court has preliminarily approved the
settlement as "fair, reasonable, and adequate" and set a date, April 26, 1996,
for a further hearing to determine whether the preliminary order should become
final.                  

    In December 1993, Automobile Credit Acceptance Corp. ("ACAC"), a subsidiary
of Search, was joined as a defendant in a pending civil action filed in the
153rd Judicial District Court, Tarrant County, Texas, styled Autostar
Solutions, Inc. v.  Tim Clothier and Automobile Credit Acceptance Corporation,
Cause No. 153-144940.  The plaintiff in this action alleges the existence of a
partnership between the plaintiff and another defendant and seeks damages,
actual and exemplary, and an injunction for alleged conversion and
misappropriation of certain property, including computer programs, allegedly
owned by Autostar.  In the petition, the plaintiff alleges that ACAC wrongfully
assisted its co-defendant and tortiously interfered with the plaintiff's
contracts and business and has claimed, as damages, $250,000.  ACAC believes
that these allegations are without merit because it did not interfere with the
plaintiff's contracts and business and did not obtain in an improper manner any
property belonging, at least in part, to Autostar.  ACAC has filed a general
denial and has pending a motion for partial summary judgment.  Discovery in
this case is ongoing and no opinion can be given as to the final outcome of the
lawsuit.

    Search received notice from plaintiffs that a suit had been filed on
December 21, 1995 against Search, certain of its former officers and
directors, and certain underwriters of three of the Fund Subsidiaries.  The
case is styled Janice and Warren Bowe, et. al. vs. Search Capital Group, Inc.,
et. al., Cause No. 1:95CV 649GR and was filed in the Federal District Court for
the Southern District of Mississippi.  The plaintiffs allege violations of the
securities laws by  the defendants and seeks unspecified damages, rescission,
punitive damages and other relief.  The plaintiffs also seek establishment of a
class of plaintiffs consisting of all persons who have purchased Notes issued
by three of the Fund Subsidiaries.  The Company has been unable to evaluate the
merit of these claims.

    There are presently no other legal proceedings, threatened or pending,
relating to Search which would, in the opinion of management, have a material
impact on earnings or the financial condition of Search.


<PAGE>   17
ITEM 6 (b.) Reports on Form 8-K.

None


<PAGE>   18
                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                     SEARCH CAPITAL GROUP, INC.


DATE:  February 20, 1996                       BY:   /s/ GEORGE C. EVANS
                                                  ----------------------------
                                                    George C. Evans
                                                    President, Chief Executive
                                                    Officer and Director


DATE:  February 20, 1996                       BY:    /s/ ROBERT D. IDZI
                                                  ----------------------------
                                                    Robert D. Idzi
                                                    Senior Vice President,
                                                    Chief Financial Officer,
                                                    Secretary and Treasurer


DATE:  February 20, 1996                       BY:    /s/ ANDREW D. PLAGENS
                                                   ---------------------------
                                                     Andrew D. Plagens       
                                                     Vice President 
                                                     and Controller (Chief
                                                     Accounting Officer)












 






<PAGE>   19
                              INDEX TO EXHIBITS



<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
-------         -----------
<S>             <C>
  27            Financial Data Schedule
</TABLE>