-----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, P9msN1kSY4fpJMrkCht4noStupQoD40vF2k248BnYqUIumfj/20P9bM7E0VtF1Rr RoS9CmW0VI/oQ3PHq4FmFQ== 0000020388-95-000024.txt : 19950426 0000020388-95-000024.hdr.sgml : 19950426 ACCESSION NUMBER: 0000020388-95-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 ITEM INFORMATION: Other events FILED AS OF DATE: 19950425 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIT GROUP HOLDINGS INC /DE/ CENTRAL INDEX KEY: 0000020388 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [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: 95530836 BUSINESS ADDRESS: STREET 1: 1211 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2125361950 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) April 11, 1995 ------------------ 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 24, 1995 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 QUARTERLY EARNINGS OF $52.8 MILLION ---------------------------------------------------------------- 10.0 PERCENT INCREASE OVER 1994 FIRST QUARTER --------------------------------------------- NEW YORK, NEW YORK, APRIL 11, 1995 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $52.8 million for the first quarter ended March 31, 1995, an increase of 10.0 percent from the $48.0 million reported for the first quarter of 1994. The improvement was principally due to growth in average financing and leasing assets, increased factoring commissions, and sharply lower net credit losses. "Our record first quarter results were excellent, driven by outstanding credit quality and our strong marketing performance," said Albert R. Gamper, Jr., CIT president and chief executive officer. "At this point in the business cycle, it is difficult to discern whether there will be a soft or hard landing. In either case, CIT must continue to maintain high standards for credit and first-rate service for our customers, especially in today's highly competitive environment." OTHER HIGHLIGHTS: * Financing and leasing assets totaled $15.88 billion, up $221.0 million from $15.66 billion at December 31, 1994 and up $1.55 billion from $14.33 billion at March 31, 1994. The increase from year-end reflects strong new business volume in most lines of business. * Net finance income rose to $164.5 million in the first quarter of 1995, up 4.7 percent from $157.1 million in the first quarter of 1994, reflecting earnings on the higher level of financing and leasing assets, offset in part by more aggressive pricing competition on new business and higher market interest rates on borrowed funds. * Fees and other income totaled $43.3 million in 1995 compared with $39.9 million in 1994 as there were two additional months of factoring commissions from Barclays Commercial Corporation (BCC), which was acquired on February 28, 1994. Gains on asset sales and securitizations, included in fees and other income, totaled $6.5 million for the first quarter of 1995, compared with $7.6 million in 1994. * Salaries and general operating expenses totaled $84.8 million, 2.29 percent of average financing and leasing assets, versus $80.5 million, 2.47 percent of average financing and leasing assets in the first quarter of 1994. The reduction in salaries and general operating expenses as a percent of average financing and leasing assets reflects benefits from the integration of BCC and Commercial Services, the 1994 restructuring of the Sales Financing business acquisition centers, improved efficiency in Industrial Financing, and continued finance receivable growth in Consumer Finance. * Net credit losses for the first quarter of 1995 improved to $17.5 million, 0.47 percent of average finance receivables, from $25.8 million, 0.80 percent of average finance receivables for the first quarter of 1994. * Finance receivables past due 60 days or more totaled $192.7 million (1.28 percent of finance receivables) at March 31, 1995, compared with $176.9 million (1.20 percent of finance receivables) at December 31, 1994. Past due finance receivables on nonaccrual status declined to $106.1 million (0.71 percent of finance receivables) at March 31, 1995 from $110.2 million (0.75 percent of finance receivables) at year-end 1994. * Assets received in the settlement of loans were $82.4 million at March 31, 1995, compared with $86.5 million at December 31, 1994. 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, the fourth largest bank holding company 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 ------------------------------------------ 1995 % TO AEA 1994 % TO AEA ----------- -------- -------- -------- Finance income $ 363,743 9.78%* $285,968 8.68%* Interest expense 199,198 5.33 * 128,840 3.85 * ------- ---- ------- ---- Net finance income 164,545 4.45 157,128 4.83 Fees and other income 43,344 1.17 39,857 1.22 ------ ---- ------ ---- Operating revenue 207,889 5.62 196,985 6.05 ------- ---- ------- ---- Salaries and general operating expenses 84,837 2.29 80,549 2.47 Net credit losses 17,462 0.47 ** 25,805 0.80** Provision for finance receivables increase 3,464 0.09 (924) (0.03) ----- ---- ------- ------ Provision for credit losses 20,926 0.57 24,881 0.77 Depreciation on operating lease equipment 17,639 0.47 14,290 0.44 ------ ---- ------ ---- Operating expenses 123,402 3.33 119,720 3.68 ------- ---- ------- ---- Income before provision for income taxes 84,487 2.29 77,265 2.37 Provision for income taxes 31,675 0.86 29,230 0.89 ------ ---- ------ ---- Net income $ 52,812 1.43% $ 48,035 1.48% ====== ==== ====== ==== Average financing and leasing assets (AEA) $14,808,286 $13,024,231 Average finance receivables $14,884,342 $12,850,556 * 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, 1995 1994 --------- ----------- ASSETS - ------ FINANCING AND LEASING ASSETS Finance receivables Capital Equipment Financing $ 4,413,355 $4,493,531 Business Credit 1,649,311 1,442,049 Credit Finance 768,834 719,642 ------- ------- CORPORATE FINANCE 6,831,500 6,655,222 COMMERCIAL SERVICES 1,827,137 1,896,233 Industrial Financing 4,317,720 4,269,693 Sales Financing 1,346,140 1,402,443 --------- --------- DEALER AND MANUFACTURER FINANCING 5,663,860 5,672,136 CONSUMER FINANCE 678,148 570,772 ------- ------- Finance receivables 15,000,645 14,794,363 Reserve for credit losses (195,420) (192,421) -------- -------- Net finance receivables 14,805,225 14,601,942 Operating lease equipment 882,697 867,914 ------- ------- Net financing and leasing assets 15,687,922 15,469,856 CASH AND CASH EQUIVALENTS 120,201 6,558 OTHER ASSETS 540,560 487,076 ------- ------- TOTAL ASSETS $16,348,683 $15,963,490 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY DEBT Commercial paper $ 6,017,855 $ 5,660,194 Variable rate notes 3,702,500 3,812,500 Fixed rate notes 2,808,109 2,623,150 Subordinated fixed rate notes 300,000 300,000 ------- ------- Total debt 12,828,464 12,395,844 Credit balances of factoring clients 833,289 993,394 Accrued liabilities and payables 438,626 354,714 Deferred Federal income taxes 428,643 426,511 ------- ------- Total liabilities 14,529,022 14,170,463 STOCKHOLDERS' EQUITY Common stock - authorized, issued and outstanding - 1,000 shares 250,000 250,000 Paid-in capital 408,320 408,320 Retained earnings 1,161,341 1,134,707 --------- --------- Total stockholders' equity 1,819,661 1,793,027 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $16,348,683 $15,963,490 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----