-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, aBrlKtjDhjoBrs8dAbgB0xx6gxIvVcK27pQKJNc+xrJcnzZ/1OlsUK/vFVm+9thT yfL9KxChQOPkUzW8HL7wnA== 0000020388-94-000002.txt : 19940119 0000020388-94-000002.hdr.sgml : 19940119 ACCESSION NUMBER: 0000020388-94-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931108 ITEM INFORMATION: 5 FILED AS OF DATE: 19940118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIT GROUP HOLDINGS INC /DE/ CENTRAL INDEX KEY: 0000020388 STANDARD INDUSTRIAL CLASSIFICATION: 6153 IRS NUMBER: 132994534 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-01861 FILM NUMBER: 94501687 BUSINESS ADDRESS: STREET 1: 650 CIT DRIVE CITY: LIVINGSTON STATE: NJ ZIP: 07039 BUSINESS PHONE: 2122706000 MAIL ADDRESS: STREET 1: 1211 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: CIT FINANCIAL CORP/OLD/ DATE OF NAME CHANGE: 19860512 8-K 1 FOURTH QUARTER EARNINGS ON FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 13, 1994 ------------------ The CIT Group Holdings, Inc. - ------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 1-1861 13-2994534 - ------------------------------------------------------------------ (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 1211 Avenue of the Americas New York, New York 10036 - ------------------------------------------------------------------ Registrant's telephone number, including area code (212) 536-1950 --------------- - ------------------------------------------------------------------ (Former name or former address, if changed since last report) Item 5. Other Events. ------------- See attached press release. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE CIT GROUP HOLDINGS, INC. ------------------------------ (Registrant) By /s/ JOSEPH J. CARROLL ---------------------------- Joseph J. Carroll Executive Vice President and Chief Financial Officer Dated: January 14, 1994 NEWS (THE CIT GROUP, INC. LETTERHEAD) Joseph J. Carroll Chief Financial Officer (201)740-5214 FROM: THE CIT GROUP HOLDINGS, INC. 1211 AVENUE OF THE AMERICAS NEW YORK, NY 10036 FOR IMMEDIATE RELEASE - --------------------- THE CIT GROUP REPORTS RECORD 1993 NET INCOME OF $182.3 MILLION, --------------------------------------------------------------- 12.3 PERCENT INCREASE OVER 1992 ------------------------------- NEW YORK, NEW YORK, JANUARY 13, 1994 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today announced record 1993 net income of $182.3 million, an increase of 12.3 percent compared with $162.3 million in 1992. The current year results represent the third consecutive year of record earnings and are the highest earnings in the Corporation's eighty-six year history. "CIT had an outstanding year in 1993," said Albert R. Gamper, Jr., president and CEO. "In a year in which we were challenged by high start-up costs associated with our consumer finance operation and the significant impact from the change in our Federal income tax rate, we were able to record our sixth consecutive year of earnings growth," he added. "CIT's asset growth in 1993 was strong and our credit quality was excellent. Perhaps more importantly, our profitability was broad-based, confirming the validity of our strategy to continue to develop an organization along multiple business lines. At the end of all the analysis, it still comes down to the quality of people, and the 2500 CIT employees turned out a tremendous effort in 1993. That effort resulted in the growth, the credit quality and the overall performance of CIT," said Gamper. "We are entering 1994 with a good deal of momentum," he continued. Other financial highlights for 1993 include: - Finance receivables and equipment under operating lease totaled a record $13.4 billion at December 31, 1993, up 9.3 percent from $12.2 billion at year-end 1992. The Corporation's operating units, particularly Industrial Financing and Credit Finance, experienced strong middle market growth in 1993 including a portfolio purchase of approximately $264 million by Industrial Financing in December 1993. - Net interest revenue of $673.9 million rose 8.2 percent from $622.8 million in 1992, reflecting the strong growth in financing and leasing assets, and higher fee income in several operating units. - Gains on asset sales were $23.9 million in 1993 reflecting a third quarter gain from the securitization of manufactured housing receivables and the sale of assets coming off lease. In 1992, such gains were $13.9 million. - Net charge-offs declined to $94.4 million, or .77 percent of average finance receivables, compared to $98.3 million, or .84 percent of average finance receivables in 1992. - Operating expenses before the provision for credit losses amounted to $282.2 million, or 2.30 percent of average earning assets, compared to $261.6 million, or 2.30 percent of average earning assets in 1992, reflecting the introduction of the consumer finance operation and normal expense increases. Excluding the consumer finance unit, operating expenses as a percent of average earning assets declined to 2.20 percent in 1993 from 2.28 percent last year, reflecting the corporation's commitment to expense control coupled with the strong asset growth in 1993. - Finance receivables past due 60 days or more were $216.1 million (1.71 percent of finance receivables) at December 31, 1993, down from $335.8 million (2.85 percent of finance receivables) at year- end 1992. Past due receivables on nonaccrual status totaled $139.9 million (1.11 percent of finance receivables) at December 31, 1993, compared to $234.2 million (1.99 percent of finance receivables) at year-end 1992. - Assets received in the settlement of loans declined to $87.0 million at December 31, 1993, from $93.8 million at December 31, 1992. The CIT Group Holdings, Inc., one of the nation's largest asset-based lenders, is owned 60 percent by The Dai-Ichi Kangyo Bank, Limited, the largest bank in the world, and 40 percent by Chemical Banking Corporation, one of the largest bank holding companies in the United States. (SEE ATTACHED TABLES FOR ADDITIONAL FINANCIAL DATA) THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) YEAR-ENDED DECEMBER 31, ---------------------------------------------- 1993 % to AEA 1992 % to AEA ----------- -------- ----------- -------- Interest and fees earned $ 1,181,914 9.50%* $ 1,174,796 10.13%* Interest expense 508,006 4.00 * 552,017 4.67 * ----------- ---- ----------- ----- Net interest revenue 673,908 5.50 622,779 5.46 ----------- ---- ----------- ----- Gains on asset sales 23,945 .20 13,883 .12 Salaries and employee benefits 152,139 1.24 137,914 1.21 Other operating expenses 130,043 1.06 123,721 1.09 ----------- ---- ----------- ----- Operating expenses before provision for credit losses 282,182 2.30 261,635 2.30 Provision for credit losses on net charge-offs 94,408 .77 ** 98,284 .84 ** Provision for credit losses for reserve change 10,466 .09 4,891 .04 ----------- ---- ----------- ----- Provision for credit losses 104,874 .86 103,175 .90 ----------- ---- ----------- ----- Total operating expenses 387,056 3.16 364,810 3.20 ----------- ---- ----------- ----- Income before provision for income taxes and extraordinary item 310,797 2.54 271,852 2.38 Provision for income taxes 128,489 1.05 105,311 .92 ----------- ---- ----------- ----- Income before extraordinary item 182,308 1.49 166,541 1.46 Extraordinary item-loss on early extinguishment of debt, net of income tax benefit - - (4,241) ( .04) ----------- ---- ---------- ----- Net income $ 182,308 1.49% $ 162,300 1.42% =========== ==== ========== ===== Average financing and leasing assets (AEA) $12,262,902 $11,401,683 Average finance receivables $12,266,125 $11,675,622 * Excludes interest income and interest expense relating to interest- bearing deposits ** Percent to average finance receivables THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLAR AMOUNTS IN THOUSANDS) DECEMBER 31, DECEMBER 31, 1993 1992 ------------ ----------- ASSETS - ------ FINANCING AND LEASING ASSETS Finance receivables (net of unearned finance income of $1,482,069 and $1,592,049) CORPORATE FINANCE Capital Equipment Financing $ 4,394,528 $ 4,429,089 Business Credit 1,282,133 1,281,283 Credit Finance 645,642 545,023 ------------ ----------- 6,322,303 6,255,395 DEALER AND MANUFACTURER FINANCING Industrial Financing 3,880,991 3,094,102 Sales Financing 1,438,865 1,411,812 ------------ ----------- 5,319,856 4,505,914 COMMERCIAL SERVICES 981,935 1,010,186 ------------ ----------- Finance receivables 12,624,094 11,771,495 Reserve for credit losses (169,378) (158,483) ------------ ----------- Net finance receivables 12,454,716 11,613,012 Equipment under operating lease, net 751,901 462,757 ------------ ----------- Net financing and leasing assets 13,206,617 12,075,769 CASH AND CASH EQUIVALENTS Cash 101,554 89,793 Interest-bearing deposits - 610,000 ------------ ----------- Cash and cash equivalents 101,554 699,793 OTHER ASSETS 420,310 252,866 ------------ ----------- TOTAL ASSETS $13,728,481 $13,028,428 ------------ ----------- LIABILITIES AND STOCKHOLDERS' EQUITY DEBT Commercial paper $ 6,516,139 $ 6,173,465 Variable coupon notes 1,686,500 1,477,830 Fixed rate notes 2,392,500 2,479,011 Subordinated fixed rate notes 200,000 200,000 ------------ ----------- Total debt 10,795,139 10,330,306 Credit balances of factoring clients 521,728 452,606 Accrued liabilities and payables 324,520 284,427 Deferred Federal income taxes and investment tax credits 394,859 359,998 ------------ ----------- Total liabilities 12,036,246 11,427,337 STOCKHOLDERS' EQUITY Common stock - authorized, issued and outstanding - 1,000 shares 250,000 250,000 Paid-in capital 408,320 408,320 Retained earnings 1,033,915 942,771 ------------ ----------- Total stockholders' equity 1,692,235 1,601,091 ------------ ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $13,728,481 $13,028,428 ============ =========== THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DOLLAR AMOUNTS IN THOUSANDS) YEAR ENDED DECEMBER 31, -------------------------- 1993 1992 ---------- ---------- COMMON STOCK Balance, beginning and end of period $ 250,000 $ 250,000 ---------- ---------- PAID-IN CAPITAL Balance, beginning of period $ 408,320 $ 258,320 Capital contribution from stockholders - 150,000 ---------- ---------- Balance, end of period $ 408,320 $ 408,320 ---------- ---------- RETAINED EARNINGS Balance, beginning of period $ 942,771 $1,011,464 Net income 182,308 162,300 Dividends paid-regular (91,164) (80,993) -special - (150,000) ---------- ---------- Balance, end of period $1,033,915 $ 942,771 ---------- ---------- Total stockholders' equity $1,692,235 $1,601,091 ========== ========== -----END PRIVACY-ENHANCED MESSAGE-----