-----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, GxVl2qhfFi8uraxvKZJFZcEXy4tbdxhyC369ZiCjbEfyRVVvsvi3cOML5ir3gBGu 91tDycsdLOE/IoEqet2nTw== 0000020388-95-000008.txt : 19950607 0000020388-95-000008.hdr.sgml : 19950607 ACCESSION NUMBER: 0000020388-95-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 ITEM INFORMATION: Other events FILED AS OF DATE: 19950125 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: 95502841 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) January 18, 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: January 18, 1995 (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 1994 NET INCOME OF $201.1 MILLION; --------------------------------------------------------------- 10.3 PERCENT INCREASE OVER 1993 ------------------------------- NEW YORK, NEW YORK, JANUARY 18, 1995 --- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies with total assets of $16.0 billion, today announced record 1994 net income of $201.1 million, an increase of 10.3 percent compared with $182.3 million in 1993. The fourth consecutive year of record earnings reflects improved interest income from continued excellent asset growth in most business units, increased factoring commissions and a lower provision for credit losses. "CIT's performance in 1994 was outstanding," said Albert R.Gamper, Jr., CIT President and CEO. "We crossed the $200 million in earnings threshold, reached record asset levels and received important upgrades from rating agencies on our senior debt." "In 1994," added Mr. Gamper, "CIT also completed the strategic acquisition of Barclays Commercial Corp. to become the nation's largest factor and continued to expand our home equity business in a challenging marketplace." "These are just some of CIT's significant accomplishments this year. Our results are a testament to the continued dedication and hard work of 2700 employees." "In passing these milestones, we enter 1995 with a good deal of momentum." However, he noted, "We are mindful of the effect that increased competition will have and concerned about the rising market interest rate environment and its potential impact on economic activity." Financial highlights for 1994 include: - Finance receivables (before the reserve for credit losses) of $14.8 billion and equipment under operating lease of 867.9 million totaled a record $15.7 billion at December 31,1994, up $2.3 billion (17.1 percent) from $13.4 billion at year-end 1993. The acquisition of Barclays Commercial Corporation (BCC) in February 1994 added over $700 million of factored receivables. - Interest and fees of $1.35 billion rose 14.0 percent from $1.18 billion in 1993, reflecting earnings generated from the growth in financing and leasing assets and increased factoring commissions due to the BCC acquisition. - Net charge-offs declined to $84.2 million, or 0.61 percent of average finance receivables, compared to $94.4 million, or 0.77 percent of average finance receivables in 1993. - Operating expenses before the provision for credit losses amounted to $337.9 million, or 2.48 percent of average earning assets, compared to $282.2 million, or 2.30 percent of average earning assets in 1993. The increase is principally attributable to the BCC acquisition and expanded activity in Consumer Finance where finance receivables rose to $570.8 million at December 31, 1994, a threefold increase as compared with $131.3 at year-end 1993. - Finance receivables past due 60 days or more were $176.9 million (1.20 percent of finance receivables) at December 31, 1994, down from $216.1 million (1.71 percent of finance receivables) at year-end 1993. Past due finance receivables on nonaccrual status totaled $110.2 million (0.75 percent of finance receivables) at December 31, 1994, compared to $139.9 million (1.11 percent of finance receivables) at year-end 1993. - Assets received in the satisfaction of loans totaled $86.5 million at December 31, 1994, compared with $87.0 million at December 31, 1993. The CIT Group Holdings, Inc., one of the nation's leading 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) Year-Ended December 31, ----------------------------------------- 1994 % to AEA 1993 % to AEA ----------- -------- ----------- -------- Interest and fees earned $ 1,347,864 9.80%* $ 1,181,914 9.50%* Interest expense 613,957 4.42 * 508,006 4.00 * ----------- -------- ----------- -------- Net interest and fees 733,907 5.38 673,908 5.50 Gains on asset sales 26,039 .19 23,945 .20 ----------- -------- ----------- -------- Operating revenue 759,946 5.57 697,853 5.70 ----------- -------- ----------- -------- Salaries and employee benefits 185,868 1.36 152,139 1.24 Other operating expenses 152,068 1.12 130,043 1.06 ----------- -------- ----------- -------- Operating expenses before provision for credit losses 337,936 2.48 282,182 2.30 Provision for credit losses on net charge-offs 84,152 .61 ** 94,408 .77 ** Provision for credit losses for reserve change 12,789 .09 10,466 .09 ----------- -------- ----------- -------- Provision for credit losses 96,941 .71 104,874 .86 ----------- -------- ----------- -------- Total operating expenses 434,877 3.19 387,056 3.16 ----------- -------- ----------- -------- Income before provision for income taxes 325,069 2.39 310,797 2.54 Provision for income taxes 123,941 .91 128,489 1.05 ----------- -------- ----------- -------- Net income $ 201,128 1.48% $ 182,308 1.49% =========== ======== =========== ======== Average financing and leasing assets (AEA) $13,630,256 $12,262,902 Average finance receivables $13,819,916 $12,266,125 * 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) December 31, December 31, 1994 1993 ----------- ----------- ASSETS - ------ FINANCING AND LEASING ASSETS Capital Equipment Financing $ 4,493,531 $ 4,394,528 Business Credit 1,442,049 1,282,133 Credit Finance 719,642 645,642 ----------- ----------- Corporate Finance 6,655,222 6,322,303 Commercial Services 1,896,233 981,935 Industrial Financing 4,269,693 3,880,991 Sales Financing 1,402,443 1,307,544 ----------- ----------- Dealer and Manufacturer Financing 5,672,136 5,188,535 Consumer Finance 570,772 131,321 ----------- ----------- Finance receivables 14,794,363 12,624,094 Reserve for credit losses (192,421) (169,378) ----------- ----------- Net finance receivables 14,601,942 12,454,716 Equipment under operating lease, net 867,914 751,901 ----------- ----------- Net financing and leasing assets 15,469,856 13,206,617 CASH AND CASH EQUIVALENTS 6,558 101,554 OTHER ASSETS 487,076 420,310 ----------- ----------- TOTAL ASSETS $15,963,490 $13,728,481 =========== =========== DEBT Commercial paper $ 5,660,194 $ 6,516,139 Variable rate notes 3,812,500 1,686,500 Fixed rate notes 2,623,150 2,392,500 Subordinated fixed rate notes 300,000 200,000 ----------- ----------- Total debt 12,395,844 10,795,139 Credit balances of factoring clients 993,394 521,728 Accrued liabilities and payables 354,714 324,520 Deferred Federal income taxes 426,511 394,859 ----------- ----------- Total liabilities 14,170,463 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 1,134,707 1,033,915 ----------- ----------- Total stockholders' equity 1,793,027 1,692,235 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,963,490 $13,728,481 =========== =========== THE CIT GROUP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DOLLAR AMOUNTS IN THOUSANDS) Year Ended December 31, --------------------------- 1994 1993 ------------ ---------- Common stock Balance, beginning and end of period $ 250,000 $ 250,000 ---------- ---------- Paid-in capital Balance, beginning and end of period 408,320 408,320 ---------- ---------- Retained earnings Balance, beginning of period 1,033,915 942,771 Net income 201,128 182,308 Dividends paid (100,336) (91,164) ---------- ---------- Balance, end of period 1,134,707 1,033,915 ---------- ---------- Total stockholders' equity $1,793,027 $1,692,235 ========== ========== -----END PRIVACY-ENHANCED MESSAGE-----