EX-99.1 3 a2061568zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 TYCO CAPITAL CORPORATION Consolidated Income Statements (after charges) (in millions) unaudited
FOR THE PERIODS ENDED FOR THE PERIODS ENDED FOR THE 2001 PERIODS SEPTEMBER 30, 2001 SEPTEMBER 30, 2000 -------------------------------- ------------------------ ---------------------- JANUARY 1 APRIL 1 FOR THE TO TO MONTH ENDED THREE NINE THREE NINE MARCH 31 JUNE 1(1) JUNE 30 MONTHS MONTHS MONTHS MONTHS ------------------------------- ------------------------ ---------------------- PREDECESSOR(2) SUCCESSOR(3) SUCCESSOR(3) COMBINED(4) PREDECESSOR(2) -------------- ------------ ------------ ----------- -------------- Finance income $ 1,376.8 $ 922.0 $ 417.9 $ 1,258.6 $ 3,975.3 $ 1,326.6 $ 3,857.2 Other finance revenue 211.6 25.9 95.9 239.2 572.6 224.2 694.7 ------------------------------- ---------------------- ---------------------- Gross revenue 1,588.4 947.9 513.8 1,497.8 4,547.9 1,550.8 4,551.9 Interest expense 625.7 397.0 161.8 435.3 1,619.8 642.7 1,845.5 Depreciation on operating lease equipment and operating lease expense 346.4 241.7 110.0 338.6 1,036.7 313.4 932.9 ------------------------------- ---------------------- ---------------------- Net finance margin and other finance revenue 616.3 309.2 242.0 723.9 1,891.4 594.7 1,773.5 Salaries and general operating expenses 263.5 182.5 83.0 255.9 784.9 250.2 775.9 Provision for credit losses 68.3 148.1 18.6 97.5 332.5 65.8 191.4 Goodwill amortization 22.5 15.3 14.4 45.4 97.6 22.7 63.8 Acquisition related costs -- 54.0 -- -- 54.0 -- -- ------------------------------- ---------------------- ---------------------- Operating expenses 354.3 399.9 116.0 398.8 1,269.0 338.7 1,031.1 ------------------------------- ---------------------- ---------------------- Income before provision for income taxes and minority interest 262.0 (90.7) 126.0 325.1 622.4 256.0 742.4 Provision for income taxes 98.9 (13.8) 53.9 141.1 280.1 96.8 281.6 Minority interest in subsidiary trust holding soley debentures of the Company, after tax 3.0 1.9 0.9 2.7 8.5 3.0 9.3 ------------------------------- ---------------------- ---------------------- Net income $ 160.1 $ (78.8) $ 71.2 $ 181.3 $ 333.8 $ 156.2 $ 451.5 ------------------------------- ---------------------- ----------------------
---------- (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 International Ltd.'s acquisition of Tyco Capital Corporation (formerly The CIT Group, Inc.), $90 million relating to certain under-performing equipment leasing and loan portfolios expected to be disposed, and $78 million principally due to the write-down of certain venture capital investments which the company plans to dispose. (2) Predecessor represents Tyco Capital Corporation (formerly The CIT Group, Inc.) prior to its acquisition by Tyco International Ltd. on June 1, 2001 at its historical cost basis. (3) Successor represents Tyco Capital Corporation (formerly The CIT Group, Inc.) subsequent to its June 1, 2001 acquisition by Tyco International Ltd., under a new basis of accounting reflecting the fair market value of its assets and liabilities. (4) The results for the nine months ended September 30, 2001 combines the results of Predecessor period from January 1 to June 1, 2001 with the results of the Successor period from June 2 to September 30, 2001. TYCO CAPITAL CORPORATION CONSOLIDATED BALANCE SHEET (IN MILLIONS) PRELIMINARY - SUBJECT TO ADJUSTMENTS
SEPTEMBER 30, DECEMBER 31, 2001 2000 -------------------------- (UNAUDITED) PREDECESSOR(1) ASSETS Financing and leasing assets: Loans and leases: Commercial $ 27,717.6 $ 29,304.0 Consumer 3,073.7 4,193.5 -------------------------- Finance receivables 30,791.3 33,497.5 Reserve for credit losses (471.7) (468.5) -------------------------- Net finance receivables 30,319.6 33,029.0 Operating lease equipment, net 5,649.9 7,190.6 Finance receivables held for sale 2,014.9 2,698.4 Cash and cash equivalents 728.7 812.1 Receivable from affiliates 1,145.8 -- Goodwill 6,569.5 1,964.6 Other assets 4,147.2 2,995.1 -------------------------- TOTAL ASSETS $ 50,575.6 $ 48,689.8 -------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY Debt: Commercial paper $ 8,621.5 $ 9,063.5 Variable rate senior notes 9,614.6 11,130.5 Fixed rate senior notes 17,065.5 17,571.1 Subordinated fixed rate notes 100.0 200.0 -------------------------- Total Debt 35,401.6 37,965.1 Credit balances of factoring clients 2,392.9 2,179.9 Accrued liabilities and payables 1,962.5 2,287.6 -------------------------- TOTAL LIABILITIES 39,757.0 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 10,558.6 6,007.2 -------------------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 50,575.6 $ 48,689.8 --------------------------
---------- (1) Predecessor represents Tyco Capital Corporation (formerly The CIT Group, Inc.) prior to its acquisition by Tyco International Ltd. on June 1, 2001 at its historical cost basis. TYCO CAPITAL CORPORATION SELECTED FINANCIAL DATA (IN MILLIONS)
AT SEPTEMBER 30, AT SEPTEMBER 30, 2001 2000 ----------------------------------------- Equipment Financing $ 11,050.8 $ 15,272.3 Capital Finance 4,928.6 5,280.9 Commercial Finance 8,644.3 8,249.5 Structured Finance 3,066.7 2,227.8 Specialty Finance 11,177.0 12,805.5 Finance receivables previously securitized 10,147.9 10,793.1 ----------------------------------------- TOTAL MANAGED ASSETS $ 49,015.3 $ 54,629.1 ----------------------------------------- FOR THE QUARTERS ENDED ----------------------------------------- 9/30/2001 9/30/2000 ----------------------------------------- AVERAGE BALANCES Average Finance Receivables $ 31,353.7 $ 33,650.0 Average Earning Assets (AEA) $ 38,735.7 $ 41,060.9 Average Managed Assets (AMA) $ 48,888.0 $ 51,181.2 OTHER REVENUE 9/30/2001 9/30/2000 ----------------------------------------- Fees and other income $ 163.3 $ 126.8 Factoring commissions 39.9 39.2 Gains on securitizations 25.6 26.9 Gains on sales of leasing equipment 11.1 19.6 (Losses) gains on venture capital investments (0.7) 11.7 ----------------------------------------- $ 239.2 $ 224.2 ----------------------------------------- PROFITABILITY 9/30/2001 9/30/2000 ----------------------------------------- Return on AEA 1.87% 1.52% Return on AMA 1.48% 1.22% Net finance margin as a percentage of AEA 5.01% 3.61% Volume securitized $ 892.4 $ 1,331.3 Salaries and general operating expenses as a percentage of AMA 2.09% 1.96% Efficiency ratio 35.6% 42.4% AT SEPTEMBER 30, AT JUNE 30, AT SEPTEMBER 30, 2001 2001 2000 -------------------------------------------------- Credit Quality Net credit losses as a percentage of average finance receivables 0.87% 0.94% 0.74% 60+days contractual delinquency as a percentage of finance receivables 3.35% 3.53% 2.67% 60+days managed contractual delinquency as a percentage of managed financial assets 3.65% 3.70% 3.02% Total non-performing assets as a percentage of finance receivables 3.02% 2.75% 2.34% Reserve for credit losses as a percentage of finance receivables 1.53% 1.50% 1.37% CAPITAL AND LEVERAGE Tangible shareholder's equity to managed assets 8.80% 8.62% 7.55% Debt (net of overnight deposits) to tangible shareholder's equity 8.13x 8.22x 9.09x