-----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, FYa0OvEy1yZDJAzSEsRdmhtkjvFMhlp3HLkI97xkC/q/3D755PgtLE78b2IqjWHW VCWVqlfAgSS3fqmXSoRdgw== 0000950147-98-000043.txt : 19980126 0000950147-98-000043.hdr.sgml : 19980126 ACCESSION NUMBER: 0000950147-98-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980120 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980123 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FINOVA CAPITAL CORP CENTRAL INDEX KEY: 0000043960 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 941278569 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07543 FILM NUMBER: 98512112 BUSINESS ADDRESS: STREET 1: 1850 N CENTRAL AVE STREET 2: PO BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85004-2209 BUSINESS PHONE: 6022074900 MAIL ADDRESS: STREET 1: 1850 N. CENTRAL AVENUE STREET 2: P.O. BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85002-2209 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND FINANCIAL CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND LEASING & FINANCIAL CORP DATE OF NAME CHANGE: 19870330 8-K 1 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): January 20, 1998 - -------------------------------------------------------------------------------- FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-11011 94-1278569 (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1850 NORTH CENTRAL AVENUE, P. O. BOX 2209, PHOENIX, ARIZONA 85004-2209 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 602/207-6900 Item 5. Other Events. FINOVA Capital Corporation announced revenues, net income and selected financial data and ratios for the fourth quarter ended December 31, 1997 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits: Exhibits Title 28 Press Release of FINOVA Capital Corporation dated January 20, 1998 1 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 thereunto duly authorized. FINOVA CAPITAL CORPORATION (Registrant) Dated: January 23, 1998 By /s/ Bruno A. Marszowski ----------------------------------------------- Bruno A. Marszowski, Senior Vice President, Chief Financial Officer and Controller Principal Financial Officer/Authorized Officer 2 EX-28 2 INFORMATION/STATE INSURANCE REG AUTHORITIES EXHIBIT 28 Robert J. Fitzsimmons Embargo until 602/ 207-5759 8:00 a.m. (E.S.T.) THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC. WHOSE EARNINGS WERE RELEASED JANUARY 19, 1998 The FINOVA Capital Corporation Announces 22% Increase in Net Income For 1997 PHOENIX, Ariz., Jan. 20, 1998 - The FINOVA Capital Corporation today announced record net income of $143.1 million for the year ended December 31, 1997, a 22% increase over the $117.0 million reported in 1996. For the fourth quarter of 1997, income from continuing operations increased by 31% to $39.7 million from $30.4 million in the fourth quarter of 1996 and net income increased by 24% to $39.7 million in 1997 from $32.0 million in 1996. Sam Eichenfield, chairman and chief executive officer of FINOVA, commented, "while it is gratifying to see the results of our past efforts, it is even more exciting to notice that recent strategic decisions are already paying off. Even without Belgravia, both our funded new business and our fee-based volume each exceeded the $1 billion level for the first time in the fourth quarter. Including Belgravia, fee-based volume totaled $1.9 billion." For the year, funded new business was a record $3.3 billion and fee based volume exceeded $4.5 billion. Interest margins earned for the fourth quarter of 1997 rose to an all-time high of 6.6% compared to 5.8% in 1996 and for the year 1997 were 6.2% compared to 5.8% in 1996. Interest margins were helped by the addition of Belgravia's fee-based business in the fourth quarter of 1997. --more-- According to Eichenfield, "we were able to grow the portfolio by more than 15% for the year, including an annualized growth rate of 19% in the fourth quarter, while maintaining portfolio quality well within our target levels." Nonaccruing assets were 2.1% of managed assets and write-offs as a percentage of average managed assets were 0.56% for the year. "Even so, we have bolstered our reserve by providing for credit losses at 152% of write-offs for the year," added Eichenfield. At December 31, 1997, the reserve for credit losses represented 2.0% of managed assets and 94.5% of nonaccruing assets. "The company continues to hold operating costs in line, even as we reward our people for their contribution to the company's performance," said Eichenfield. Selling, administrative and other operating expenses as a percent of interest margins earned were 41.2% and 41.8% for the quarter and annual periods of 1997, respectively, compared to 44.9% and 41.9% for the comparable 1996 periods. FINOVA Capital Corporation is one of the nation's leading financial services companies focused on providing a range of capital solutions to midsize business. FINOVA is headquartered in Phoenix with business development offices throughout the U.S. and in London, U.K. ### The FINOVA Capital Corporation and Consolidated Subsidiaries Summary of Consolidated Income (Unaudited) (Dollars in Thousands)
Quarter Ended Twelve Months Ended December 31, December 31, ----------------------- ---------------------- 1997 1996 1997 1996 --------- --------- --------- --------- Interest earned from Financing transactions $ 230,048 $ 185,229 $ 827,804 $ 702,117 Operating lease income 31,756 24,446 116,920 95,817 Interest expense (111,446) (96,972) (416,093) (366,543) Operating lease depreciation (21,203) (15,136) (72,989) (62,286) --------- --------- --------- --------- Interest margins earned 129,155 97,567 455,642 369,105 Provision for credit losses (20,900) (10,587) (69,200) (41,751) Gains on sale of assets 7,854 4,507 30,261 12,949 Selling, administrative and Other operating expenses (53,262) (43,837) (190,525) (154,481) --------- --------- --------- --------- Income before income taxes 62,847 47,650 226,178 185,822 Income taxes (23,134) (17,254) (83,088) (69,329) --------- --------- --------- --------- Income from continuing operations 39,713 30,396 143,090 116,493 Income and gain from discontinued operations -- 1,599 -- 507 --------- --------- --------- --------- Net Income $ 39,713 $ 31,995 $ 143,090 $ 117,000 ========= ========= ========= =========
The FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (Dollars in Thousands)
As of December 31, ----------------------------------------- FINANCIAL POSITION: 1997 1996 1995 ----------- ----------- ----------- Ending funds employed (2) $ 8,399,456 $ 7,298,759 $ 6,348,079 Securitizations and participations sold (3) 457,967 364,546 200,000 ----------- ----------- ----------- Total managed assets (2) 8,857,423 7,663,305 6,548,079 Reserve for credit losses (2) 177,088 148,693 129,077 Nonaccruing assets (2) 187,356 155,505 143,127 Nonaccruing assets as % of managed assets (4) 2.1% 2.0% 2.2% Reserve for credit losses as a % of: Ending managed assets (4) 2.0% 2.0% 2.0% Nonaccruing assets 94.5% 95.6% 90.2% Total debt $ 6,764,581 $ 5,850,223 $5,649,368 Shareowner's equity 1,260,068 1,069,043 855,579 Total Debt to Equity 5.37x 5.47x 6.60x Backlog 1,601,218 1,477,239 1,070,573 For the Quarter Ended For the Year Ended December 31, December 31, ------------------------ ------------------------ PERFORMANCE HIGHLIGHTS: 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Average managed assets (2) $8,636,826 $7,516,588 $8,153,076 $7,041,708 Average earning assets (2) (5) 7,806,934 6,757,732 7,356,845 6,324,545 New business (2) 1,000,383 873,659 3,311,105 2,740,353 Fee-based volume 1,860,586 819,293 4,532,494 2,937,311 Write-offs (2) 14,224 7,999 45,487 32,017 Write-offs (annualized) as a % of average managed assets (4) 0.67% 0.43% 0.56% 0.46% Interest margins earned (annualized) as a % of average earning assets 6.6% 5.8% 6.2% 5.8% Selling, administrative and other operating expenses as a % of interest margins earned 41.2% 44.9% 41.8% 41.9%
(1) Averages for the periods presented are based on month-end balances. (2) Excludes discontinued operations disposed of during 1996. (3) Securitizations are assets sold under securitization agreements and managed by the Company. (4) Excludes participations sold in which the company has transferred credit risk. (5) Average earning assets equal average funds employed less average deferred taxes on leveraged leases and average nonaccruing assets. -----END PRIVACY-ENHANCED MESSAGE-----