-----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, UU3CEBZafgI2B4O7G2Q+kucVjuoGsIMiAe4beMAFKrIGbOXFzM+tcr5wBo2yv4aJ GpUL4YgSgShb7gL5NyAR9A== 0000020388-96-000002.txt : 19960119 0000020388-96-000002.hdr.sgml : 19960119 ACCESSION NUMBER: 0000020388-96-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960118 ITEM INFORMATION: Other events FILED AS OF DATE: 19960118 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: 96505282 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 - 12/31/96 EARNINGS REPORT 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, 1996 ------------------ 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: January 18, 1996 [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 1995 EARNINGS OF $225.3 MILLION ------------------------------------------------------------ UP 12.0 PERCENT OVER 1994 ------------------------- FIFTH CONSECUTIVE YEAR OF RECORD EARNINGS ----------------------------------------- NEW YORK, NEW YORK, January 18, 1996 -- The CIT Group Holdings, Inc., one of the nation's leading asset-based finance companies, today reported net income of $225.3 million for the year 1995, an increase of 12.0 percent from the $201.1 million for 1994. This represents the eighth consecutive increase in annual earnings and the fifth consecutive year of record earnings. The 1995 results reflect finance income from a higher level of financing and leasing assets, improved other income, and lower net credit losses, offset by increased borrowing costs. Fourth quarter earnings were particularly strong at $57.5 million, up 16.1 percent from the prior year. Total assets for 1995 reached a record $17.42 billion. "Outstanding marketing efforts, strong credit, technological improvements and greater productivity make 1995 a most satisfying year and, more importantly, positions CIT for even greater opportunities in the future," said Albert R. Gamper, Jr., CIT president and chief executive officer. Financial highlights for 1995: o Financing and leasing assets totaled $16.91 billion, up $1.25 billion (8.0%) from $15.66 billion at December 31, 1994. The increase reflects continued strong volume primarily in the Industrial Financing and Sales Financing units as well as growth of the Consumer Finance business, offset by securitizations of certain Sales Financing receivables. o Net finance income rose to $697.7 million (4.54% of average financing and leasing assets "AEA") in 1995, compared to $649.9 million (4.77% of AEA) in 1994. The changes reflect the continued growth in financing and leasing assets, offset partially by higher interest expense. o Fees and other income totaled $184.7 million in 1995 compared to $174.4 million in 1994, reflecting higher gains on asset sales and improved fee generation, partially offset by lower factoring commissions due to a weak 1995 retailing environment. o Salaries and general operating expenses for 1995 increased only 2.3 percent from 1994, reflecting significant productivity gains as financing and leasing assets grew 8.0 percent during 1995. As a percent of AEA, expenses improved to 2.25 percent during 1995 from 2.48 percent in 1994. This productivity reflects further investments in operations across most business units and the continued growth of the Consumer Finance franchise. -2- o Net credit losses during 1995 were $77.2 million, 0.50 percent of average finance receivables, a decrease from $84.2 million, 0.61 percent of average finance receivables for the year 1994. o Finance receivables past due 60 days or more were $263.9 million (1.67% of finance receivables) at December 31, 1995 up from $176.9 million (1.20% of finance receivables) at December 31, 1994. Past due finance receivables on nonaccrual status totaled $139.5 million (0.88% of finance receivables) at December 31, 1995 compared to $110.2 million (0.75% of finance receivables) at the end of 1994. o Assets received in the settlement of loans were $42.0 million at December 31, 1995, down from $86.5 million at December 31, 1994. o The reserve for credit losses stood at $206.0 million at year end 1995, a $13.6 million increase from the prior year and represented 1.30 percent of finance receivables for both periods. o The ratio of debt-to-equity was 7.09 to 1 at December 31, 1995 compared to 6.91 to 1 at December 31, 1994. The CIT Group Holdings, Inc., one of the nation's largest asset-based lenders, is owned 80 percent by The Dai-Ichi Kangyo Bank, Limited, one of the largest banks in the world, and 20 percent by Chemical Banking Corporation, one of the largest bank holding companies 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)
Years Ended December 31 ------------------------------------------------------------------------- 1995 % to AEA 1994 % to AEA -------------------------------- --------------------------------- Finance income ....................................... $ 1,529,234 9.90%* $ 1,263,846 9.19%* Interest expense ..................................... 831,531 5.36* 613,957 4.42* ----------- -------------- ----------- -------------- Net finance income ................................. 697,703 4.54 649,889 4.77 Fees and other income ................................ 184,709 1.20 174,365 1.28 ----------- -------------- ----------- -------------- Operating revenue .................................. 882,412 5.74 824,254 6.05 Salaries and general operating expenses .............. 345,708 2.25 337,936 2.48 Net credit losses .................................... 77,241 .50** 84,152 .61** Provision for increase in finance receivables ........ 14,683 .10 12,789 .09 ----------- -------------- ----------- -------------- Provision for credit losses ........................ 91,924 .60 96,941 .71 Depreciation on operating lease equipment ............ 79,752 .52 64,308 .47 ----------- -------------- ----------- -------------- Operating expenses ................................. 517,384 3.37 499,185 3.66 ----------- -------------- ----------- -------------- Income before provision for income taxes ............. 365,028 2.37 325,069 2.39 Provision for income taxes ........................... 139,777 .91 123,941 .91 ----------- -------------- ----------- -------------- Net income ......................................... $ 225,251 1.46% $ 201,128 1.48% =========== ============== =========== ============== Average financing and leasing assets (AEA) ........... $15,377,470 $13,630,256 Average finance receivables .......................... $15,397,762 $13,819,916 * 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 BALANCE SHEETS (Dollar Amounts in Thousands) December 31, December 31,
1995 1994 ------------ ------------ Assets Financing and leasing assets Capital Equipment Financing ....................................................................... $ 4,548,677 $ 4,493,531 Business Credit ................................................................................... 1,470,981 1,442,049 Credit Finance .................................................................................... 758,729 719,642 ------------ ------------ Corporate Finance ............................................................................... 6,778,387 6,655,222 Commercial Services ............................................................................... 1,743,322 1,896,233 Industrial Financing .............................................................................. 4,929,858 4,269,693 Sales Financing ................................................................................... 1,304,921 1,402,443 ------------ ------------ Dealer and Manufacturer Financing ............................................................... 6,234,779 5,672,136 Consumer Finance .................................................................................. 1,039,044 570,772 ------------ ------------ Finance receivables ............................................................................. 15,795,532 14,794,363 Reserve for credit losses ......................................................................... (206,027) (192,421) ------------ ------------ Net finance receivables ......................................................................... 15,589,505 14,601,942 Operating lease equipment ......................................................................... 1,113,007 867,914 ------------ ------------ Net financing and leasing assets ................................................................ 16,702,512 15,469,856 Cash and cash equivalents ......................................................................... 161,464 6,558 Other assets ...................................................................................... 556,322 483,276 ------------ ------------ Total assets .................................................................................... $ 17,420,298 $ 15,959,690 ============ ============ Liabilities and Stockholders' Equity Debt Commercial paper .................................................................................. $ 6,105,569 $ 5,660,194 Variable rate notes ............................................................................... 3,827,500 3,812,500 Fixed rate notes .................................................................................. 3,337,030 2,619,350 Subordinated fixed rate notes ..................................................................... 300,000 300,000 ------------ ------------ Total debt ...................................................................................... 13,570,099 12,392,044 Credit balances of factoring clients .............................................................. 980,916 993,394 Accrued liabilities and payables .................................................................. 485,854 354,714 Deferred Federal income taxes ..................................................................... 469,238 426,511 ------------ ------------ Total liabilities ............................................................................... 15,506,107 14,166,663 Stockholders' equity Common stock - authorized, issued and outstanding - 1,000 shares .................................. 250,000 250,000 Paid-in capital ................................................................................... 408,320 408,320 Retained earnings ................................................................................. 1,255,871 1,134,707 ------------ ------------ Total stockholders' equity ...................................................................... 1,914,191 1,793,027 ------------ ------------ Total liabilities and stockholders' equity ...................................................... $ 17,420,298 $ 15,959,690 ============ ============
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