-----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, QhF2JIrvPYha/jE0eHmPU6Si2s2yDdlDwc54hJhje5997G1ALUCTSvzZ1BOl1sy/ nkzKodn4+bzdS2VlbMGhZg== 0000020388-94-000052.txt : 19940727 0000020388-94-000052.hdr.sgml : 19940727 ACCESSION NUMBER: 0000020388-94-000052 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19940719 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: 94539277 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 SECOND QUARTER EARNINGS PRESS RELEASE 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 14, 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: July 19, 1994 NEWS (THE CIT GROUP, INC. LETTERHEAD) Contact: 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 $51.0 MILLION IN 1994 SECOND QUARTER; - - ------------------------------------------------------------------------------ 9.4 PERCENT INCREASE OVER 1993 SECOND QUARTER; ---------------------------------------------- SIX MONTH NET INCOME OF $99.0 MILLION, ALSO A RECORD; ---------------------------------------------------- NEW YORK, NEW YORK, JULY 14, 1994 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported record net income of $51.0 million for the quarter ended June 30, 1994, an increase of 9.4 percent from the $46.6 million reported for the second quarter of 1993. Net income for the first six months of 1994 was $99.0 million, also a record and a 9.8 percent increase over the prior year. The record earnings were principally due to improved fees and other revenue, coupled with increased net interest revenue from higher financing and leasing assets in 1994. These improvements benefited from the revenues of Barclays Commercial Corporation (BCC) which was acquired on February 28, 1994. "CIT's performance is a reflection of the generally expanding economy we are experiencing," said Albert R. Gamper, Jr., CIT president and CEO. "This strength is broad-based and hopefully will not be impacted by dampening tax or monetary actions," he added. "The recent upgrade of our senior debt rating by Duff & Phelps to AA- and the announcement last week that Moody's is reviewing our A1 rating for possible upgrade are tangible evidence that CIT's consistent growth and earnings improvement is recognized in the marketplace," noted Gamper. "On the lending side, we are now seeing aggressive practices relative to rates and structure in the marketplace. We are concerned that this may be a revival of practices characteristic of the '80s when lenders forgot the concept of risk/reward," said Gamper. OTHER HIGHLIGHTS: - Financing and leasing assets totaled $14.5 billion, up 1.3 percent from $14.3 billion at March 31, 1994 and 14.3 percent from $12.7 billion at June 30, 1993. The increase from last year includes the acquisition of BCC and continued growth in most operating units. - Net interest revenue rose to $193.2 million in the second quarter of 1994, up 14.7 percent from $168.5 million in the second quarter of 1993, reflecting the improved fee income and interest from the higher levels of financing and leasing assets, offset in part by a rise in short-term market interest rates during 1994. - Operating expenses before the provision for credit losses totaled $86.4 million, 2.58 percent of average financing and leasing assets, versus $68.9 million, 2.24 percent of average financing and leasing assets in the second quarter of 1993. The increases are largely attributable to incremental expenses of the recently acquired BCC factoring unit and the expanded Consumer Finance operation. - Net charge-offs for the second quarter of 1994 were $23.1 million, 0.67 percent of average finance receivables, compared to $22.2 million, 0.72 percent of average finance receivables for the second quarter of 1993. - Finance receivables past due 60 days or more declined to $187.8 million (1.36 percent of finance receivables) at June 30, 1994 from $198.2 million (1.46 percent of finance receivables) at March 31, 1994 and $216.1 million (1.71 percent of finance receivables) at December 31, 1993. Past due receivables on nonaccrual status were $117.0 million (0.85 percent of finance receivables) at June 30, 1994 up from $105.6 million (0.78 percent of finance receivables) at March 31, 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 $67.6 million at June 30, 1994, compared to $79.5 million at March 31, 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, 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 JUNE 30, -------------------------------------------------- 1994 % TO AEA 1993 % TO AEA ------------ -------- ----------- -------- Interest and fees earned $ 340,504 10.04%* $ 295,190 9.48%* Interest expense 147,255 4.28 * 126,733 4.00 * ------------ ----- ---------- ---- Net interest revenue 193,249 5.76 168,457 5.48 ------------ ---- --------- ---- Gains on asset sales 3,371 .10 2,906 .10 Salaries and employee benefits 49,057 1.46 36,909 1.20 Other operating expenses 37,389 1.12 31,949 1.04 ------------ ---- ---------- ---- Operating expenses before provision for credit losses 86,446 2.58 68,858 2.24 Provision for credit losses on net charge-offs 23,109 .67 ** 22,174 .72 ** Provision for credit losses for reserve change 4,302 .13 4,718 .15 ------------ ---- ---------- ---- Provision for credit losses 27,411 .82 26,892 .88 ------------ ---- ---------- ---- Total operating expenses 113,857 3.39 95,750 3.12 ------------ ---- ---------- ---- Income before provision for income taxes 82,763 2.47 75,613 2.46 Provision for income taxes 31,792 .95 29,010 .94 ------------ ---- ---------- ---- Net income $ 50,971 1.52% $ 46,603 1.52% ============ ==== =========== ==== Average financing and leasing assets (AEA) $13,426,457 $12,290,608 Average finance receivables $13,729,744 $12,280,962 * 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, ----------------------------------------------- 1994 % to AEA 1993 % to AEA ---------- -------- ----------- -------- Interest and fees earned $ 644,414 9.62%* $ 582,871 9.51%* Interest expense 276,095 4.06 * 251,419 4.02 * ---------- ---- ----------- ---- Net interest revenue 368,319 5.56 331,452 5.49 ---------- ---- ----------- ---- Gains on asset sales 10,996 .17 4,178 .07 Salaries and employee benefits 92,307 1.39 74,683 1.24 Other operating expenses 74,688 1.13 61,845 1.02 ---------- ---- ----------- ---- Operating expenses before provision for credit losses 166,995 2.52 136,528 2.26 Provision for credit losses on net charge-offs 48,914 .74 ** 44,561 .74 ** Provision for credit losses for reserve change 3,378 .05 6,632 .11 ---------- ---- ----------- ---- Provision for credit losses 52,292 .79 51,193 .85 ---------- ---- ----------- ---- Total operating expenses 219,287 3.31 187,721 3.11 ---------- ---- ----------- ---- Income before provision for income taxes 160,028 2.42 147,909 2.45 Provision for income taxes 61,022 .92 57,774 .96 ---------- ---- ----------- ---- Net income $ 99,006 1.50% $ 90,135 1.49% =========== ==== =========== ==== Average financing and leasing assets (AEA) $13,246,944 $12,069,068 Average finance receivables $13,247,293 $12,077,141 * 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, ASSETS 1994 1993 ----------- ----------- Financing and leasing assets Finance receivables (net of unearned finance income of $1,541,365 and $1,482,069) CORPORATE FINANCE Capital Equipment Financing $ 4,322,804 $ 4,394,528 Business Credit 1,330,403 1,282,133 Credit Finance 709,059 645,642 ----------- ----------- 6,362,266 6,322,303 DEALER AND MANUFACTURER FINANCING Industrial Financing 3,960,577 3,880,991 Sales Financing and Consumer Finance 1,604,720 1,438,865 ----------- ----------- 5,565,297 5,319,856 FACTORING Commercial Services 1,851,670 981,935 ---------- ----------- Finance receivables 13,779,233 12,624,094 Reserve for credit losses (183,112) (169,378) ---------- ----------- Net finance receivables 13,596,121 12,454,716 Equipment under operating lease, net 736,717 751,901 ---------- ----------- Net financing and leasing assets 14,332,838 13,206,617 CASH AND CASH EQUIVALENTS Cash 50,013 101,554 Interest-bearing deposits 24,000 - ----------- ----------- Cash and cash equivalents 74,013 101,554 Other assets 433,553 420,310 --------- ----------- TOTAL ASSETS $14,840,404 $13,728,481 LIABILITIES AND STOCKHOLDERS' EQUITY - - ------------------------------------ DEBT Commercial paper $ 6,227,088 $ 6,516,139 Variable rate notes 2,462,500 1,686,500 Fixed rate notes 2,408,677 2,392,500 Subordinated fixed rate notes 300,000 200,000 ---------- ----------- Total debt 11,398,265 10,795,139 ========== ========== Credit balances of factoring clients 953,484 521,728 Accrued liabilities and payables 343,604 324,520 Deferred Federal income taxes and investment tax credits 403,286 394,859 ---------- ---------- Total liabilities 13,098,639 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 1,083,445 1,033,915 ---------- ----------- Total stockholders' equity 1,741,765 1,692,235 ---------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,840,404 $13,728,481 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----