-----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, k4ja/8YmXYI2VmtVqHbrUvDFUEYMDnPbhszLcOaDdCbiOxxeZk/szyqfg0t/MMcr figh/ACnRhmjGxRwDq6V3w== 0000020388-94-000071.txt : 19941024 0000020388-94-000071.hdr.sgml : 19941024 ACCESSION NUMBER: 0000020388-94-000071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941013 ITEM INFORMATION: Other events FILED AS OF DATE: 19941021 SROS: NONE 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: 94554498 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 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) October 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: October 21, 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 OF $52.6 MILLION IN 1994 THIRD QUARTER; - ---------------------------------------------------------------------------- UP 10.8 PERCENT OVER 1993 THIRD QUARTER; ---------------------------------------- NINE MONTH EARNINGS UP 10.2 PERCENT TO A RECORD $151.6 MILLION -------------------------------------------------------------- NEW YORK, NEW YORK, OCTOBER 13, 1994 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $52.6 million for the quarter ended September 30, 1994, an increase of 10.8 percent from $47.4 million reported for the third quarter of 1993. Net income for the first nine months of 1994 was a record $151.6 million, a 10.2 percent increase over $137.6 million reported in the prior year. The record 1994 earnings gains reflect improved interest income from continued growth in financing and leasing assets, increased factoring commissions, and lower charge-offs as a result of improved credit quality. The 1994 earnings reflect the acquisition of Barclays Commercial Corporation (BCC) on February 28, 1994 which added over $700.0 million of factored receivables. "CIT's strong third quarter and nine months performance continues the trend of disciplined growth and excellent portfolio credit quality which prompted the recent upgrades in our senior debt ratings to AA- by Duff & Phelps and Aa3 by Moody's ," said Albert R. Gamper, Jr., CIT president and CEO. (more) OTHER HIGHLIGHTS: - Financing and leasing assets totaled $15.2 billion, up 4.4 percent from $14.5 billion at June 30, 1994 and 13.3 percent from $13.4 billion at December 31, 1993. The increases resulted from continued growth in middle market financing, home equity lending, traditional commercial finance, and a seasonal increase in factored receivables. - Net interest and fees rose to $181.5 million in the third quarter of 1994, up 2.6 percent from $176.9 million in the third quarter of 1993. For the first nine months of 1994, net interest and fees totaled $549.8 million, an increase of 8.2 percent from $508.4 million in 1993. The improvements reflect interest from the higher levels of financing and leasing assets and increased factoring commissions, offset in part by higher funding costs due to rising 1994 market interest rates. - Operating expenses before the provision for credit losses totaled $85.2 million, 2.48 percent of average financing and leasing assets (AEA) in the third quarter of 1994, versus $73.0 million, 2.37 percent of AEA in the third quarter of 1993. For the nine months ended September 30, 1994, operating expenses before the provision for credit losses totaled $252.2 million, 2.51 percent of AEA, compared with $209.5 million, 2.30 percent of AEA, in the comparable 1993 period. Operating expenses in 1994 reflect incremental expenses associated with the BCC acquisition and the expanded Consumer Finance operation, and normal expense increases. - Net charge-offs for the third quarter of 1994 were $18.2 million, 0.52 percent of average finance receivables (AFR), compared with $27.2 million, 0.88 percent for the third quarter of 1993. For the nine months ended September 30, 1994, net charge-offs totaled $67.1 million, 0.66 percent of AFR compared with $71.8 million, 0.79 percent in 1993. (more) - The 1993 third quarter and nine month results include a $10.3 million net charge to record the effect of a one percent increase in the corporate Federal income tax rate enacted in August 1993. - Finance receivables past due 60 days or more were $214.5 million (1.49 percent of finance receivables) at September 30, 1994 compared with $187.8 million (1.36 percent of finance receivables) at June 30, 1994 and $216.1 million (1.71 percent of finance receivables) at December 31, 1993. Past due receivables on nonaccrual status were $128.7 million (0.90 percent of finance receivables) at September 30, 1994 up from $117.0 million (0.85 percent of finance receivables) at June 30, 1994, but improved from $139.9 million (1.11 percent of finance receivables) at year-end 1993. - Assets received in the settlement of loans were $60.4 million at September 30, 1994, compared to $67.6 million at June 30, 1994 and $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, one of the largest banks 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 BALANCE SHEETS (DOLLAR AMOUNTS IN THOUSANDS) SEPTEMBER 30, DECEMBER 31, ASSETS 1994 1993 ------------- ------------ FINANCING AND LEASING ASSETS Finance receivables (net of unearned finance income of $1,359,980 and $1,482,069) CORPORATE FINANCE Capital Equipment Financing $ 4,313,364 $ 4,394,528 Business Credit 1,406,090 1,282,133 Credit Finance 714,346 645,642 ----------- ----------- 6,433,800 6,322,303 DEALER AND MANUFACTURER FINANCING Industrial Financing 4,069,811 3,880,991 Sales Financing and Consumer Finance 1,751,936 1,438,865 ----------- ----------- 5,821,747 5,319,856 FACTORING Commercial Services 2,115,161 981,935 ----------- ----------- Finance receivables 14,370,708 12,624,094 Reserve for credit losses (185,321) (169,378) ----------- ----------- Net finance receivables 14,185,387 12,454,716 Equipment under operating lease, net 790,692 751,901 ----------- ----------- Net financing and leasing assets 14,976,079 13,206,617 CASH AND CASH EQUIVALENTS Cash 24,379 101,554 Interest-bearing deposits 40,000 - ----------- ----------- Cash and cash equivalents 64,379 101,554 OTHER ASSETS 396,826 420,310 ----------- ----------- TOTAL ASSETS $15,437,284 $13,728,481 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY DEBT Commercial paper $ 6,541,220 $ 6,516,139 Variable rate notes 2,412,500 1,686,500 Fixed rate notes 2,473,150 2,392,500 Subordinated fixed rate notes 300,000 200,000 ----------- ----------- Total debt 11,726,870 10,795,139 Credit balances of factoring clients 1,155,480 521,728 Accrued liabilities and payables 377,051 324,520 Deferred Federal income taxes and investment tax credits 409,971 394,859 ----------- ----------- Total liabilities 13,669,372 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 1,109,592 1,033,915 ----------- ----------- Total stockholders' equity 1,767,912 1,692,235 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,437,284 $13,728,481 =========== =========== THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) THREE MONTHS ENDED SEPTEMBER 30, ---------------------------------------------- 1994 % TO AEA 1993 % TO AEA -------- -------- -------- -------- Interest and fees earned $342,838 9.90%* $304,691 9.75%* Interest expense 161,349 4.61 * 127,782 4.00 * -------- ---- ------- ---- Net interest and fees 181,489 5.29 176,909 5.75 -------- ---- ------- ---- Gains on asset sales 9,920 .29 18,850 .61 Salaries and employee benefits 46,861 1.36 38,209 1.24 Other operating expenses 38,333 1.12 34,741 1.13 -------- ---- ------- ---- Operating expenses before provision for credit losses 85,194 2.48 72,950 2.37 Provision for credit losses on net charge-offs 18,225 .52 ** 27,201 .88** Provision for credit losses for reserve change 1,816 .05 1,203 .04 -------- ---- ------- ---- Provision for credit losses 20,041 .59 28,404 .92 -------- ---- ------- ---- Total operating expenses 105,235 3.07 101,354 3.29 -------- ---- ------- ---- Income before provision for income taxes 86,174 2.51 94,405 3.07 Provision for income taxes 33,587 .98 46,956 1.53 -------- ---- ------- ---- Net income $52,587 1.53% 47,449 1.54% ======= ==== ====== ==== Average financing and leasing assets (AEA) $13,732,106 $12,319,181 Average finance receivables $14,059,245 $12,341,396 * Excludes interest income and interest expense relating to interest-bearing deposits ** Percent to average finance receivables THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) NINE MONTHS ENDED . SEPTEMBER 30, --------------------------------------------- 1994 % TO AEA 1993 % TO AEA -------- -------- -------- -------- Interest and fees earned $987,252 9.72%* $887,562 9.58%* Interest expense 437,444 4.25 * 379,201 4.01 * -------- -------- -------- ----- Net interest and fees 549,808 5.47 508,361 5.57 -------- -------- -------- ----- Gains on asset sales 20,916 .21 23,028 .26 Salaries and employee benefits 139,168 1.39 112,892 1.24 Other operating expenses 113,021 1.12 96,586 1.06 -------- -------- -------- ----- Operating expenses before provision for credit losses 252,189 2.51 209,478 2.30 Provision for credit losses on net charge-offs 67,139 .66** 71,762 .79** Provision for credit losses for reserve change 5,194 .05 7,835 .09 -------- -------- -------- ----- Provision for credit losses 72,333 .72 79,597 .87 -------- -------- -------- ----- Total operating expenses 324,522 3.23 289,075 3.17 -------- -------- -------- ----- Income before provision for income taxes 246,202 2.45 242,314 2.66 Provision for income taxes 94,609 .94 104,730 1.15 -------- -------- -------- ----- Net income $ 151,593 1.51% $137,584 1.51% ========== ==== ======== ==== Average financing and leasing assets (AEA) $13,408,639 $12,171,821 Average finance receivables $13,518,880 $12,172,469 * Excludes interest income and interest expense relating to interest-bearing deposits ** Percent to average finance receivables -----END PRIVACY-ENHANCED MESSAGE-----