-----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, UhVOVeK0IWAFppYqPvj0v3U7owRArhnl1crZhgS6BXZGDcdGPqQDyCr0Uzn0fTMF V4NqfBhNXdbWbMuzEW8Iww== 0000020388-95-000028.txt : 19950721 0000020388-95-000028.hdr.sgml : 19950721 ACCESSION NUMBER: 0000020388-95-000028 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 ITEM INFORMATION: Other events FILED AS OF DATE: 19950719 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: 95554863 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 PRESS RELEASE WITH 6/30/95 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) July 13, 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 M. LEONE ---------------------------- Joseph M. Leone Executive Vice President and Chief Financial Officer Dated: July 19, 1995 [Logo of The CIT Group, Inc.] Contact: Joseph M. Leone Chief Financial Officer (201)740-5752 FROM: THE CIT GROUP HOLDINGS, INC. 1211 AVENUE OF THE AMERICAS NEW YORK, NY 10036 FOR IMMEDIATE RELEASE - --------------------- THE CIT GROUP REPORTS RECORD EARNINGS - $56.5 MILLION ----------------------------------------------------- FOR SECOND QUARTER 1995 AND $109.3 MILLION FOR FIRST SIX MONTHS OF 1995; ------------------------------------------------------------------------ INCREASES OVER 10 PERCENT FROM 1994 ----------------------------------- NEW YORK, NEW YORK, July 13, 1995 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $56.5 million for the quarter ended June 30, 1995, an increase of 10.9 percent from the $51.0 million reported for the 1994 second quarter. Net income for the first six months of 1995, also a record, totaled $109.3 million, an increase of 10.4 percent from $99.0 million in 1994. The improvements reflect continuing growth in financing and leasing assets, lower net credit losses and improved operating expense efficiencies offset, in part, by increased borrowing costs due to higher market interest rates. "CIT's 1995 earnings momentum continues across all operating units, reflecting our key business fundamentals -- strong new business generation and excellent credit quality. These results are particularly satisfying in light of the economy's uneven performance this year," said Albert R. Gamper, Jr., CIT president and chief executive officer. "Based on the significant decline in long-term interest rates along with the Federal Reserve's recent easing of short-term rates, we anticipate a positive business environment for CIT over the balance of 1995." -2- Other highlights: o Financing and leasing assets totaled $16.09 billion, up $429.4 million from $15.66 billion at December 31, 1994 and up $1.58 billion from $14.52 billion at June 30, 1994. The increases reflect continued strong volume in most business units offset, in part, by a decline in factored receivable volume due to seasonal influences and continued weak retail sales. o Net finance income rose to $171.5 million in the second quarter of 1995, up from $168.3 million in the second quarter of 1994. For the six months ended June 30, 1995, net finance income totaled $336.1 million, an increase of $10.7 million from $325.4 million in 1994. The increases reflect a higher level of financing and leasing assets, offset by higher market interest rates on borrowed funds. o Fees and other income totaled $41.9 million in the 1995 second quarter compared with $44.9 million in 1994 reflecting lower factoring commissions and other income, which offset higher gains on asset sales. For the six months ended June 30, 1995, fees and other income totaled $85.2 million, up slightly from $84.8 million in 1994. o Salaries and general operating expenses totaled $82.3 million in the 1995 second quarter, down $4.2 million (4.8%) from $86.4 million, in 1994. Year-to-date, such expenses were relatively unchanged, totaling $167.1 million compared with $167.0 million in 1994. As a percent of average financing and leasing assets, salaries and general operating expenses improved to 2.16 percent for the quarter ended June 30, 1995 compared with 2.57 percent in 1994 and 2.22 percent for the first six months of 1995 compared with 2.52 percent for the comparable 1994 period. The improvements reflect expense control initiatives and CIT's ability to grow and service financing and leasing assets within the existing structure. -3- o Net credit losses for the second quarter of 1995 were $17.3 million, 0.46 percent of average finance receivables, down from $23.1 million, 0.67 percent of average finance receivables for the second quarter of 1994. Year-to-date net credit losses totaled $34.7 million, 0.46 percent of average finance receivables, down from $48.9 million, 0.74 percent of average finance receivables in 1994. o Finance receivables past due 60 days or more totaled $194.9 million (1.28 percent of finance receivables) at June 30, 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 $93.3 million (0.62 percent of finance receivables) at June 30, 1995 from $110.2 million (0.75 percent of finance receivables) at year-end 1994. o Assets received in the settlement of loans were $84.8 million at June 30, 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 third 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 JUNE 30 ------------------------------------------------------------- 1995 % TO AEA 1994 % TO AEA --------------------------- ------------------------ Finance income ............................................... $ 380,520 9.95%* $315,538 9.29%* Interest expense ............................................. 208,988 5.44* 147,255 4.28* ------------ ---- -------- ---- Net finance income ......................................... 171,532 4.51 168,283 5.01 Fees and other income ........................................ 41,871 1.10 44,925 1.34 ------------ ---- -------- ---- Operating revenue .......................................... 213,403 5.61 213,208 6.35 Salaries and general operating expenses ...................... 82,264 2.16 86,446 2.57 Net credit losses ............................................ 17,264 .46** 23,109 .67** Provision for finance receivables increase ................... 4,994 .13 4,302 .13 ------------ ---- -------- ---- Provision for credit losses ................................ 22,258 .59 27,411 .82 Depreciation on operating lease equipment .................... 17,176 .45 16,588 .49 ------------ ---- -------- ---- Operating expenses ......................................... 121,698 3.20 130,445 3.88 ------------ ---- -------- ---- Income before provision for income taxes ..................... 91,705 2.41 82,763 2.47 Provision for income taxes ................................... 35,192 .92 31,792 .95 ------------ ---- -------- ---- Net income ................................................. $ 56,513 1.49% $ 50,971 1.52% ============ ==== ======== ==== Average financing and leasing assets (AEA) ................... $ 15,224,311 $13,437,698 Average finance receivables .................................. $ 15,051,602 $13,729,744
* 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) SIX MONTHS ENDED JUNE 30 --------------------------------------------------------------- 1995 % TO AEA 1994 % TO AEA ----------------------------- ------------------------- Finance income ............................................ $ 744,263 9.86%* $601,506 8.98%* Interest expense .......................................... 408,186 5.38* 276,095 4.06* ----------- ---- -------- ---- Net finance income ...................................... 336,077 4.48 325,411 4.92 Fees and other income ..................................... 85,215 1.13 84,782 1.28 ----------- ---- -------- ---- Operating revenue ....................................... 421,292 5.61 410,193 6.20 Salaries and general operating expenses ................... 167,101 2.22 166,995 2.52 Net credit losses ......................................... 34,726 .46** 48,914 .74** Provision for finance receivables increase ................ 8,458 .11 3,378 .05 ----------- ---- -------- ---- Provision for credit losses ............................. 43,184 .58 52,292 .79 Depreciation on operating lease equipment ................. 34,815 .46 30,878 .47 ----------- ---- -------- ---- Operating expenses ...................................... 245,100 3.26 250,165 3.78 ----------- ---- -------- ---- Income before provision for income taxes .................. 176,192 2.35 160,028 2.42 Provision for income taxes ................................ 66,867 .89 61,022 .92 ----------- ---- -------- ---- Net income .............................................. $ 109,325 1.46% $ 99,006 1.50% =========== ==== ======== ==== Average financing and leasing assets (AEA) ................ $15,028,270 $13,246,944 Average finance receivables ............................... $14,904,367 $13,247,293
* 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) JUNE 30, DECEMBER 31, 1995 1994 ------------ ------------- ASSETS FINANCING AND LEASING ASSETS Capital Equipment Financing .................... $ 4,406,207 $ 4,493,531 Business Credit ................................ 1,678,241 1,442,049 Credit Finance ................................. 761,635 719,642 ------------ ------------ Corporate Finance ............................ 6,846,083 6,655,222 Commercial Services ............................ 1,559,047 1,896,233 Industrial Financing ........................... 4,535,344 4,269,693 Sales Financing ................................ 1,435,963 1,402,443 ------------ ------------ Dealer and Manufacturer Financing ............ 5,971,307 5,672,136 Consumer Finance ............................... 788,317 570,772 ------------ ------------ Finance receivables .......................... 15,164,754 14,794,363 Reserve for credit losses ...................... (200,345) (192,421) ------------ ------------ Net finance receivables ...................... 14,964,409 14,601,942 Operating lease equipment ...................... 926,959 867,914 ------------ ------------ Net financing and leasing assets ............. 15,891,368 15,469,856 CASH AND CASH EQUIVALENTS ...................... 25,428 6,558 OTHER ASSETS ................................... 521,297 487,076 ------------ ------------ TOTAL ASSETS ................................. $ 16,438,093 $ 15,963,490 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY DEBT Commercial paper ............................... $ 5,544,930 $ 5,660,194 Variable rate notes ............................ 3,977,500 3,812,500 Fixed rate notes ............................... 3,208,109 2,623,150 Subordinated fixed rate notes .................. 300,000 300,000 ------------ ------------ Total debt ................................... 13,030,539 12,395,844 Credit balances of factoring clients ........... 698,331 993,394 Accrued liabilities and payables ............... 421,108 354,714 Deferred Federal income taxes .................. 440,548 426,511 ------------ ------------ Total liabilities ............................ 14,590,526 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 .............................. 1,189,247 1,134,707 ------------ ------------ Total stockholders' equity ................... 1,847,567 1,793,027 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ... $ 16,438,093 $ 15,963,490 ============ ============ -----END PRIVACY-ENHANCED MESSAGE-----