EX-99.1 3 a2055495zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 THE CIT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (BEFORE CHARGES) (IN MILLIONS) UNAUDITED
FOR THE PERIODS ENDED FOR THE 2001 PERIODS JUNE 30, 2000 --------------------------------------------------- ------------------------- JANUARY 1 APRIL 1 FOR THE FOR THE THREE TO TO MONTH ENDED MONTHS ENDED THREE SIX MARCH 31 JUNE 1 JUNE 30 JUNE 30 MONTHS MONTHS --------------------------------------------------- ------------------------- PREDECESSOR (1) SUCCESSOR (2) PREDECESSOR (1) --------------- ------------- --------------- Finance income $ 1,376.8 $ 922.0 $ 417.9 $ 1,339.9 $ 1,301.8 $ 2,530.6 Other finance revenue 211.6 104.0 95.9 199.9 232.3 470.5 --------------------------------------------------- ------------------------- Gross revenue 1,588.4 1,026.0 513.8 1,539.8 1,534.1 3,001.1 Interest expense 625.7 397.0 161.8 558.8 630.9 1,202.8 Depreciation on operating lease equipment 346.4 241.7 110.0 351.7 311.7 619.5 --------------------------------------------------- ------------------------- Net finance margin and other finance revenue 616.3 387.3 242.0 629.3 591.5 1,178.8 Salaries and general operating expenses 263.5 182.5 83.0 265.5 257.5 525.7 Provision for credit losses 68.3 58.6 18.6 77.2 64.0 125.6 Goodwill amortization 22.5 15.3 14.4 29.7 20.6 41.1 --------------------------------------------------- ------------------------- Operating expenses 354.3 256.4 116.0 372.4 342.1 692.4 --------------------------------------------------- ------------------------- Income before provision for income taxes and minority interest 262.0 130.9 126.0 256.9 249.4 486.4 Provision for income taxes 98.9 49.8 53.9 103.7 95.0 184.8 Minority interest in subsidiary trust holding soley debentures of the Company, after tax 3.0 1.9 0.9 2.8 3.0 6.3 --------------------------------------------------- ------------------------- Net income $ 160.1 $ 79.2 $ 71.2 $ 150.4 $ 151.4 $ 295.3 --------------------------------------------------- -------------------------
---------- (1) Predecessor represents The CIT Group, Inc prior to its acquisition by Tyco on June 1, 2001 at its historical cost basis. (2) Successor represents The CIT Group, Inc. subsequent to its June 1, 2001 acquisition by Tyco, under a new basis of accounting reflecting the fair market value of its assets and liabilities. THE CIT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (AFTER CHARGES) (IN MILLIONS)
FOR THE PERIODS ENDED FOR THE 2001 PERIODS (UNAUDITED) JUNE 30, 2000 --------------------------------------------------- ------------------------- JANUARY 1 APRIL 1 FOR THE FOR THE THREE TO TO MONTH ENDED MONTHS ENDED THREE SIX MARCH 31 JUNE 1 JUNE 30 JUNE 30 MONTHS MONTHS --------------------------------------------------- ------------------------- (1) PREDECESSOR (2) SUCCESSOR (3) PREDECESSOR (2) --------------- ------------- --------------- Finance income $ 1,376.8 $ 922.0 $ 417.9 $ 1,339.9 $ 1,301.8 $ 2,530.6 Other finance revenue 211.6 25.9 95.9 121.8 232.3 470.5 --------------------------------------------------- ------------------------- Gross revenue 1,588.4 947.9 513.8 1,461.7 1,534.1 3,001.1 Interest expense 625.7 397.0 161.8 558.8 630.9 1,202.8 Depreciation on operating lease equipment 346.4 241.7 110.0 351.7 311.7 619.5 --------------------------------------------------- ------------------------- Net finance margin and other finance revenue 616.3 309.2 242.0 551.2 591.5 1,178.8 Salaries and general operating expenses 263.5 182.5 83.0 265.5 257.5 525.7 Provision for credit losses 68.3 148.1 18.6 166.7 64.0 125.6 Goodwill amortization 22.5 15.3 14.4 29.7 20.6 41.1 Acquisition related costs -- 54.0 -- 54.0 -- -- --------------------------------------------------- ------------------------- Operating expenses 354.3 399.9 116.0 515.9 342.1 692.4 --------------------------------------------------- ------------------------- Income before provision for income taxes and minority interest 262.0 (90.7) 126.0 35.3 249.4 486.4 Provision for income taxes 98.9 (13.8) 53.9 40.1 95.0 184.8 Minority interest in subsidiary trust holding soley debentures of the Company, after tax 3.0 1.9 0.9 2.8 3.0 6.3 --------------------------------------------------- ------------------------- Net income $ 160.1 $ (78.8) $ 71.2 $ (7.6) $ 151.4 $ 295.3 --------------------------------------------------- -------------------------
---------- (1) The results for the April 1 to June 1 period include non-recurring charges of $222 million ($158 million, after tax). The pretax charges of $222 million include $54 million relating to transaction costs associated with Tyco's acquisition of The CIT Group lnc., $90 million relating to certain under-performing equipment leasing and loan portfolios expected to be disposed, and $78 million principally due to the writedown of certain venture capital investments which the company plans to dispose. (2) Predecessor represents The CIT Group, Inc. prior to its acquisition by Tyco on June 1, 2001 at its historical cost basis. (3) Successor represents The CIT Group, Inc. subsequent to its June 1, 2001 acquisition by Tyco, under a new basis of accounting reflecting the fair market value of its assets and liabilities. THE CIT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN MILLIONS) PRELIMINARY - SUBJECT TO ADJUSTMENTS
JUNE 30, DECEMBER 31, 2001 2000 -------------------------- (UNAUDITED) ASSETS Financing and leasing assets: Loans and leases: Commercial $ 28,085.0 $ 29,304.0 Consumer 2,780.7 4,193.5 -------------------------- Finance receivables 30,865.7 33,497.5 Reserve for credit losses (463.8) (468.5) -------------------------- Net finance receivables 30,401.9 33,029.0 Operating lease equipment, net 7,182.4 7,190.6 Finance receivables held for sale 2,073.9 2,698.4 Cash and cash equivalents 900.2 812.1 Goodwill 6,101.7 1,964.6 Other assets 4,932.8 2,995.1 -------------------------- TOTAL ASSETS $ 51,592.9 $ 48,689.8 -------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY Debt: Commercial paper $ 9,155.8 $ 9,063.5 Variable rate senior notes 9,856.3 11,130.5 Fixed rate senior notes 17,646.6 17,571.1 Subordinated fixed rate notes 100.0 200.0 -------------------------- Total Debt 36,758.7 37,965.1 Credit balances of factoring clients 1,945.3 2,179.9 Accrued liabilities and payables 2,055.3 1,640.8 Deferred federal income taxes 348.0 646.8 -------------------------- TOTAL LIABILITIES 41,107.3 42,432.6 Company obligated manditorily redeemable preferred securities of subsidiary trust holding solely debentures of the Company 260.0 250.0 Total Shareholder's Equity 10,225.6 6,007.2 -------------------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 51,592.9 $ 48,689.8 --------------------------
THE CIT GROUP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (IN MILLIONS)
AT JUNE 30, AT JUNE 30, 2001 2000 ----------------------------------- Equipment Financing $ 11,643.1 $ 12,509.0 Capital Financing 5,675.7 4,999.7 Vendor Technology Finance 7,646.5 10,333.5 Commercial Finance 7,776.0 7,581.8 Structured Finance 3,007.6 2,222.8 Specialty Finance 4,763.9 4,980.7 Finance receivables previously securitized 10,575.1 10,743.4 ----------------------------------- TOTAL MANAGED ASSETS $ 51,087.9 $ 53,370.9 ----------------------------------- FOR THE QUARTERS ENDED 6/30/2001 6/30/2000 --------- --------- AVERAGE BALANCES Average Finance Receivables $ 32,767.2 $ 33,484.9 Average Earning Assets (AEA) $ 41,014.8 $ 40,690.9 Average Managed Assets (AMA) $ 50,927.3 $ 50,674.3 OTHER REVENUE JUNE ONLY 6/30/2001 6/30/2000 ----------------- --------- --------- Fees and other income $ 49.0 $ 117.3 $ 121.1 Gains on securitizations 33.4 34.7 23.0 Factoring commissions 10.8 35.3 38.2 Gains on sales of leasing equipment 3.1 10.8 39.4 Gains on venture capital investments (0.4) 1.8 10.6 ---------------------------------------------------- $ 95.9 $ 199.9 $ 232.3 ---------------------------------------------------- PROFITABILITY JUNE ONLY 6/30/2001 6/30/2000 ----------------- --------- --------- Return on AEA 2.11% 1.47% 1.49% Return on AMA 1.69% 1.18% 1.20% Net finance margin as a percentage of AEA 4.32% 4.19% 3.53% Volume securitized $ 1,293.3 $ 1,304.5 $ 913.7 Salaries and general operating expenses as a percentage of AMA 1.95% 2.09% 2.03% AT JUNE 30, AT MARCH 31, AT JUNE 30, 2001 2001 2000 ---------------------------------------------------- CREDIT QUALITY Net credit losses as a percentage of average finance receivables 0.94% 0.80% 0.73% 60+days contractual delinquency as a percentage of finance receivables 3.53% 3.25% 2.80% 60+days managed contractual delinquency as a percentage of managed financial assets 3.70% 3.54% 3.11% Total non-performing assets as a percentage of finance receivables 2.75% 2.70% 2.36% Reserve for credit losses as a percentage of finance receivables 1.50% 1.39% 1.39% CAPITAL AND LEVERAGE Tangible shareholder's equity to managed assets 8.62% 8.23% 7.47% Debt (net of overnight deposits) to tangible shareholder's equity 8.22 x 8.41 x 9.27 x