-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, St87UyutAoGcaz9BQkGe6Wtj4Ykqgf3jCbAsm/95VzNTC7h26NNZLaV+aXeqxq9t trMUAF/h1uxS7aDVtnIxSg== 0000020388-95-000043.txt : 19951018 0000020388-95-000043.hdr.sgml : 19951018 ACCESSION NUMBER: 0000020388-95-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950930 ITEM INFORMATION: Other events FILED AS OF DATE: 19951017 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: 95581269 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 9/30/95 CONSOLIDATED 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) October 12, 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: October 16, 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 OF $58.4 MILLION FOR THIRD QUARTER 1995 ----------------------------------------------------------------------------- UP 11.1 PERCENT OVER 1994 ------------------------- NINE MONTH EARNINGS UP 10.7 PERCENT TO RECORD $167.8 MILLION ------------------------------------------------------------ NEW YORK, NEW YORK, October 12, 1995 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $58.4 million for the quarter ended September 30, 1995, an increase of 11.1 percent from the $52.6 million reported for the 1994 third quarter. Net income for the first nine months of 1995, also a record, totaled $167.8 million, an increase of 10.7 percent from $151.6 million in 1994. The 1995 earnings reflect increased finance income from a higher level of financing and leasing assets and continued emphasis on credit quality, offset by increased interest expense. "Those who predicted a recession in 1995 have been proven wrong," said Albert R. Gamper, Jr., CIT president and chief executive officer. "CIT's formidable performance and growth is confirmation of the underlying strength of the economy. We expect to see this trend continuing into the fourth quarter." Other highlights: o Financing and leasing assets totaled a record $16.80 billion, up $1.14 billion (7.3%) from $15.66 billion at December 31, 1994. The increase reflects continued strong volume primarily in the Consumer Finance, Industrial Financing and Sales Financing business units, offset, in part, by securitizations of finance receivables. o Net finance income rose to $178.8 million (4.60% of average financing and leasing assets "AEA") in the 1995 third quarter, compared to $160.8 million (4.68% of AEA) in the 1994 third quarter. For the nine months ended September 30, 1995, net finance income totaled $514.9 million (4.52% of AEA), compared to $486.3 million (4.83% of AEA). The changes for each period reflect the growth in financing and leasing assets, offset by higher interest expense. o Fees and other income totaled $47.8 million in the third quarter of 1995 compared with $47.0 million in 1994. For the nine months ended September 30, 1995, fees and other income totaled $133.1 million, up slightly from $131.7 million in 1994. These increases reflect higher gains on asset sales and fee income, offset by lower factoring commissions. o Salaries and general operating expenses for the third quarter and nine months ended September 30, 1995 were relatively unchanged in comparison to the 1994 periods. As a percent of AEA, salaries and general operating expenses improved to 2.21 percent for the quarter ended September 30, 1995 from 2.48 percent in 1994 and 2.22 percent for the first nine months of 1995 from 2.51 percent for the comparable 1994 period. These improvements reflect operating efficiencies in Commerical Services and Industrial Financing, as well as growth of the Consumer Finance business. -2- o Net credit losses for the third quarter of 1995 were $21.9 million, 0.57 percent of average finance receivables, up from $18.2 million, 0.52 percent of average finance receivables for the third quarter of 1994. Year-to-date net credit losses totaled $56.7 million, 0.50 percent of average finance receivables, an improvement from $67.1 million, 0.66 percent of average finance receivables in 1994. o Finance receivables past due 60 days or more totaled $275.5 million (1.75 percent of finance receivables) at September 30, 1995, compared with $194.9 million (1.28 percent of finance receivables) at June 30, 1995 and $176.9 million (1.20 percent of finance receivables) at December 31, 1994. Past due finance receivables on nonaccrual status increased to $156.2 million (0.99 percent of finance receivables) at September 30, 1995 from $93.3 million (0.62 percent of finance receivables) at June 30, 1995 and $110.2 million (0.75 percent of finance receivables) at year-end 1994. o Assets received in the settlement of loans improved to $41.3 million at September 30, 1995 from $84.8 million at June 30, 1995 and $86.5 million at December 31, 1994. o The ratio of debt-to-equity was 7.11 to 1 at September 30, 1995 compared to 7.05 to 1 at June 30, 1995 and 6.91 to 1 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) # # # -3- THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) THREE MONTHS ENDED SEPTEMBER 30 ----------------------------------------------------------------- 1995 % TO AEA 1994 % TO AEA --------------------------------- ------------------------------ Finance income ............................................... $388,789 9.97%* $322,189 9.29%* Interest expense ............................................. 210,015 5.37* 161,349 4.61* -------- ---- -------- ---- Net finance income ......................................... 178,774 4.60 160,840 4.68 Fees and other income ........................................ 47,847 1.23 46,966 1.37 -------- ---- -------- ---- Operating revenue .......................................... 226,621 5.83 207,806 6.05 Salaries and general operating expenses ...................... 85,890 2.21 85,194 2.48 Net credit losses ............................................ 21,947 .57** 18,225 .52** Provision for finance receivables increase ................... 2,092 .05 1,816 .05 -------- ---- -------- ---- Provision for credit losses ................................ 24,039 .62 20,041 .57 Depreciation on operating lease equipment .................... 21,462 .55 16,397 .49 -------- ---- -------- ---- Operating expenses ......................................... 131,391 3.38 121,632 3.54 -------- ---- -------- ---- Income before provision for income taxes ..................... 95,230 2.45 86,174 2.51 Provision for income taxes ................................... 36,792 .95 33,587 .98 -------- ---- -------- ---- Net income ................................................. $ 58,438 1.50% $ 52,587 1.53% ======== ==== ======== ==== Average financing and leasing assets (AEA) $15,555,094 $13,732,106 Average finance receivables $15,550,045 $14,059,245
* Excludes interest income and interest expense relating to interest-bearing deposits ** Percent to average finance receivables -4- THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (DOLLAR AMOUNTS IN THOUSANDS) NINE MONTHS ENDED SEPTEMBER 30 --------------------------------------------------------------- 1995 % TO AEA 1994 % TO AEA ------------------------------ ----------------------------- Finance income ............................................... $1,133,052 9.90%* $ 923,695 9.08%* Interest expense ............................................. 618,202 5.38* 437,444 4.25* ---------- ---- ---------- ---- Net finance income ......................................... 514,850 4.52 486,251 4.83 Fees and other income ........................................ 133,063 1.17 131,748 1.31 ---------- ---- ---------- ---- Operating revenue .......................................... 647,913 5.69 617,999 6.14 Salaries and general operating expenses ...................... 252,989 2.22 252,189 2.51 Net credit losses ............................................ 56,673 .50** 67,139 .66** Provision for finance receivables increase ................... 10,550 .09 5,194 .05 ---------- ---- ---------- ---- Provision for credit losses ................................ 67,223 .59 72,333 .71 Depreciation on operating lease equipment .................... 56,278 .49 47,275 .47 ---------- ---- ---------- ---- Operating expenses ......................................... 376,490 3.30 371,797 3.69 ---------- ---- ---------- ---- Income before provision for income taxes ..................... 271,423 2.39 246,202 2.45 Provision for income taxes ................................... 103,660 .92 94,609 .94 ---------- ---- ---------- ---- Net income ................................................. $ 167,763 1.47% $ 151,593 1.51% ========== ==== ========== ==== Average financing and leasing assets (AEA) $15,199,974 $13,408,639 Average finance receivables $15,212,597 $13,518,880
* Excludes interest income and interest expense relating to interest-bearing deposits ** Percent to average finance receivables -5- THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLAR AMOUNTS IN THOUSANDS) SEPTEMBER 30, DECEMBER 31, 1995 1994 -------------- -------------- Assets Financing and leasing assets Capital Equipment Financing .................................... $ 4,466,977 $ 4,493,531 Business Credit ................................................ 1,650,080 1,442,049 Credit Finance ................................................. 766,539 719,642 ------------ ------------ Corporate Finance ............................................ 6,883,596 6,655,222 Commercial Services ............................................ 1,964,553 1,896,233 Industrial Financing ........................................... 4,635,230 4,269,693 Sales Financing ................................................ 1,367,059 1,402,443 ------------ ------------ Dealer and Manufacturer Financing ............................ 6,002,289 5,672,136 Consumer Finance ............................................... 930,558 570,772 ------------ ------------ Finance receivables .......................................... 15,780,996 14,794,363 Reserve for credit losses ...................................... (202,142) (192,421) ------------ ------------ Net finance receivables ...................................... 15,578,854 14,601,942 Operating lease equipment ...................................... 1,017,625 867,914 ------------ ------------ Net financing and leasing assets ............................. 16,596,479 15,469,856 Cash and cash equivalents ...................................... 109,652 6,558 Other assets ................................................... 535,419 487,076 ------------ ------------ Total assets ................................................. $ 17,241,550 $ 15,963,490 ============ ============ Liabilities and Stockholders' Equity Debt Commercial paper ............................................... $ 5,231,479 $ 5,660,194 Variable rate notes ............................................ 4,377,500 3,812,500 Fixed rate notes ............................................... 3,442,582 2,623,150 Subordinated fixed rate notes .................................. 300,000 300,000 ------------ ------------ Total debt ................................................... 13,351,561 12,395,844 Credit balances of factoring clients ........................... 1,077,371 993,394 Accrued liabilities and payables ............................... 493,806 354,714 Deferred Federal income taxes .................................. 441,814 426,511 ------------ ------------ Total liabilities ............................................ 15,364,552 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 .............................................. 1,218,678 1,134,707 ------------ ------------ Total stockholders' equity ................................... 1,876,998 1,793,027 ------------ ------------ Total liabilities and stockholders' equity ................... $ 17,241,550 $ 15,963,490 ============ ============
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