-----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, Kkf+A52MQXQxFQdFj/SHzr63Vw+9GPBSjftzhjs+EENdv4yokM2SJgCaS/4Ro7m4 oseEmahGcnLu6AXA+1suig== 0000020388-94-000032.txt : 19940418 0000020388-94-000032.hdr.sgml : 19940418 ACCESSION NUMBER: 0000020388-94-000032 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940412 ITEM INFORMATION: Other events FILED AS OF DATE: 19940415 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: 1934 Act SEC FILE NUMBER: 001-01861 FILM NUMBER: 94522974 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 FORM 8-K - PRESS RELEASE ON FIRST QTR. EARNINGS 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) April 12, 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: April 12, 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 EARNINGS IN 1994 FIRST QUARTER ----------------------------------------------------------- OF $48.0 MILLION; ---------------- 10.3 PERCENT INCREASE OVER 1993 FIRST QUARTER --------------------------------------------- NEW YORK, NEW YORK, APRIL 12, 1994 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $48.0 million for the first quarter ended March 31, 1994, an increase of 10.3 percent from the $43.5 million reported for the first quarter of 1993. The rise in earnings was principally due to improved net interest and other revenue, reflecting the excellent finance receivables growth over the past year. "CIT's improved performance and growth is a reflection of the overall improvement in the U.S. economy," said Albert R. Gamper, Jr., CIT president and CEO. "This improvement looks very sustainable for 1994 unless the recent rise in interest rates discourages business and consumer spending," he added. During the first quarter, CIT completed the acquisition of Barclays Commercial Corporation, a major provider of factoring, commercial finance and credit-related services, from the Barclays Group. The acquisition added over $700.0 million in finance receivables and affirms CIT's leadership position in the factoring industry. OTHER HIGHLIGHTS: - - Financing and leasing assets totaled $14.3 billion, up 7.1 percent from $13.4 billion at December 31, 1993 and 13.5 percent from $12.6 billion at March 31, 1993. The increase from year-end reflects continued growth from new business financings in most operating units, the acquisition of Barclays Commercial Corporation and a seasonal increase in factored receivables. - - Net interest revenue rose to $175.1 million in the first quarter of 1994, up 7.4 percent from $163.0 million in the first quarter of 1993, reflecting earnings on the higher level of financing and leasing assets, offset in part by reduced interest rate margins as rates charged on earning assets increased more slowly than rates paid on the related liabilities. - - Gains on asset sales were $7.6 million, up sharply from $1.3 million in the first quarter of 1993 and included a gain from securitizing $150 million of recreation vehicle receivables in January 1994. - - Operating expenses before the provision for credit losses totaled $80.5 million, 2.47 percent of average financing and leasing assets, versus $67.7 million, 2.29 percent of average financing and leasing assets in the first quarter of 1993. The increases are primarily attributable to several factors, including the recently completed Barclays acquisition, continued expansion of the Consumer Finance operation, and certain non-recurring charges associated with restructuring the Sales Financing sales office network. - - Net charge-offs for the first quarter of 1994 were $25.8 million, 0.80 percent of average finance receivables, compared to $22.4 million, 0.75 percent of average finance receivables for the first quarter of 1993. - - Finance receivables past due 60 days or more fell to $198.2 million (1.46 percent of finance receivables) at March 31, 1994, down from $216.1 million (1.71 percent of finance receivables) at December 31, 1993. Past due receivables on nonaccrual status declined to $105.6 million (0.78 percent of finance receivables) at March 31, 1994 from $139.9 million (1.11 percent of finance receivables) at year-end 1993. - - Assets received in the settlement of loans were $79.5 million at March 31, 1994, compared to $87.0 million at December 31, 1993. 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) Three Months Ended March 31 ------------------------------------------- 1994 % to AEA 1993 % to AEA ----------- -------- ----------- -------- Interest and fees earned $ 303,910 9.23%* $ 287,681 9.55%* Interest expense 128,840 3.86 * 124,686 4.04 * ----------- ------ ----------- ----- Net interest revenue 175,070 5.37 162,995 5.51 ----------- ------ ----------- ----- Gains on asset sales 7,625 .24 1,272 .04 Salaries and employee benefits 43,250 1.33 37,774 1.28 Other operating expenses 37,299 1.14 29,896 1.01 ----------- ------ ----------- ----- Operating expenses before provision for credit losses 80,549 2.47 67,670 2.29 Provision for credit losses on net charge-offs 25,805 .80 ** 22,387 .75 ** Provision for credit losses for reserve change (924) (.03) 1,914 .06 ---------- ------ ----------- ----- Provision for credit losses 24,881 .77 24,301 .82 -------- ------ ----------- ----- Total operating expenses 105,430 3.24 91,971 3.11 ----------- ------ ----------- ----- Income before provision for income taxes 77,265 2.37 72,296 2.44 Provision for income taxes 29,230 .89 28,764 .97 ----------- ------ ----------- ----- Net income $ 48,035 1.48% $ 43,532 1.47% ----------- ------ ----------- ----- ----------- ------ ----------- ----- Average financing and leasing assets (AEA) $13,024,231 $11,837,338 Average finance receivables$12,850,556 $11,891,369 * 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) March 31, December 31, 1994 1993 ----------- ------------ ASSETS - ------ FINANCING AND LEASING ASSETS Finance receivables (net of unearned finance income of $1,438,677 and $1,482,069) CORPORATE FINANCE Capital Equipment Financing $ 4,270,205 $ 4,394,528 Business Credit 1,228,345 1,282,133 Credit Finance 690,761 645,642 ----------- ----------- 6,189,311 6,322,303 DEALER AND MANUFACTURER FINANCING Industrial Financing 3,900,134 3,880,991 Sales Financing and Consumer Finance 1,536,750 1,438,865 ----------- ----------- 5,436,884 5,319,856 FACTORING Commercial Services 1,963,950 981,935 ----------- ----------- Finance receivables 13,590,145 12,624,094 Reserve for credit losses (180,046) (169,378) ----------- ----------- Net finance receivables 13,410,099 12,454,716 Equipment under operating lease, net 738,733 751,901 ----------- ----------- Net financing and leasing assets 14,148,832 13,206,617 CASH AND CASH EQUIVALENTS Cash 49,153 101,554 Interest-bearing deposits 17,000 - ----------- ----------- Cash and cash equivalents 66,153 101,554 OTHER ASSETS 391,261 420,310 ----------- ----------- TOTAL ASSETS $14,606,246 $13,728,481 ----------- ----------- ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ DEBT Commercial paper $ 6,202,936 $ 6,516,139 Variable rate notes 2,187,500 1,686,500 Fixed rate notes 2,385,000 2,392,500 Subordinated fixed rate notes 300,000 200,000 ----------- ----------- Total debt 11,075,436 10,795,139 Credit balances of factoring clients 1,009,940 521,728 Accrued liabilities and payables 410,370 324,520 Deferred Federal income taxes and investment tax credits 394,826 394,859 ----------- ----------- Total liabilities 12,890,572 12,036,246 STOCKHOLDERS' EQUITY Common stock - authorized, issued and outstanding - 1,000 shares 250,000 250,000 Paid-in capital 408,320 408,320 Retained earnings 1,057,354 1,033,915 ----------- ----------- Total stockholders' equity 1,715,674 1,692,235 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,606,246 $13,728,481 ----------- ----------- ----------- ----------- -----END PRIVACY-ENHANCED MESSAGE-----