-----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, cgE6Ut7XsbSVgStg7Ptf4qiZiAlYv4s3gT98YJV2auxq7VLuxC2MgJKiNi5KUVrJ G2IuCQ7bE2KPErXUp1sD4A== 0000950153-95-000185.txt : 19950724 0000950153-95-000185.hdr.sgml : 19950724 ACCESSION NUMBER: 0000950153-95-000185 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950719 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950721 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: 1934 Act SEC FILE NUMBER: 001-07543 FILM NUMBER: 95555330 BUSINESS ADDRESS: STREET 1: 1850 N CENTRAL AVE STREET 2: PO BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85004-2209 BUSINESS PHONE: 6022076900 MAIL ADDRESS: STREET 1: FINOVA CAPITAL CORP STREET 2: 1850 NORTH CENTRAL AVE P O BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85004-2209 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 FORM 8-K FOR FINOVA CORPORATION DATED JULY 19,1995 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): July 19, 1995 - -------------------------------------------------------------------------------- FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-7543 94-1278569 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1850 NORTH CENTRAL AVENUE, PHOENIX, ARIZONA 85004-2209 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 602/207-6900 ------------------------------ 2 Item 5. Other Events. FINOVA Capital Corporation (formerly known as Greyhound Financial Corporation) today announced revenues, net income and selected financial data and ratios for the second quarter ended June 30, 1995 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits:
Exhibits Title -------- ------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated June 30, 1995
1 3 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: July 19, 1995 By /s/ Bruno A. Marszowski --------------------------------------- Bruno A. Marszowski, Senior Vice President, Chief Financial Officer Principal Financial Officer/Authorized Officer 2 EX-28 2 PRESS RELEASE FOR FINOVA CORPORATION DATED 6/30/95 1 EXHIBIT 28 Robert J. Fitzsimmons Embargo until 602/ 207-5759 8:00 a.m. (E.D.T.) THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC. WHOSE EARNINGS WERE RELEASED JULY 18, 1995 FINOVA CAPITAL CORPORATION ANNOUNCES 35% INCREASE IN SECOND QUARTER NET INCOME PHOENIX, Ariz., July 19, 1995 -- FINOVA Capital Corporation ("FINOVA") (formerly known as Greyhound Financial Corporation) today reported record results led by strong new business volume and portfolio growth for the second quarter ended June 30, 1995. Net income for the second quarter of 1995 was $23.6 million up from $17.5 million for the comparable period in 1994, an increase of 35% in net income. Sam Eichenfield, chairman and chief executive officer of FINOVA, said he was pleased with the company's continued strong growth, the improved earnings and the strengthened balance sheet during the second quarter of 1995. "We were able to generate in excess of $1 billion of new revolving or term business and $800 million of factored volume in the first six months of the year while increasing our backlog and growing the portfolio at an annual rate slightly in excess of 17%," Eichenfield said. "At the same time, our portfolio quality continued to improve, with nonearning assets declining to $164 million or 2.6% of ending funds employed and securitizations as of June 30, 1995." Eichenfield also said that "interest margins earned are a healthy 5.8% 3 2 and the G&A expense ratio continues to improve, declining to 45% of interest margins earned." Interest margins earned, as a percent of average earning assets, were 5.8% for the six months of 1995 compared to 5.9% for the 1994 period. This reduction in interest margins was expected in 1995 due to the cost of the hedges that the company entered into to lock in the spread between its lending and borrowing rates on approximately 50% of its floating-rate debt ($1.5 billion) and to the diminishing ratio of the higher yielding businesses relative to the total portfolio. The increase in the amount of interest margins earned more than offset higher provisions for credit losses and higher selling, administrative and other operating expenses ("G&A expenses"). Loss provisions, which increased by $6.7 million, were due primarily to the growth of the portfolio. The reserves, including the accrued liabilities for possible credit losses applicable to the securitized portfolio, were 2.0% of ending funds employed and securitizations and 78% of nonaccruing assets. G&A expenses for the second quarter of 1995 were higher than the comparable 1994 period, but declined as a percent of interest margins earned to 44.8% for the second quarter of 1995 from 47.2% for the first quarter of 1995 and 46.1% for 1994. Higher G&A expenses are primarily attributable to the addition of TriCon Capital, acquired in April 1994, as well as to higher marketing expenses incurred in connection with the higher volume of new business added during the year, partially offset by lower problem account costs. Income taxes were higher in the second quarter of 1995 due to an increase in income before income taxes, which more than offset a lower effective income tax rate resulting from state income tax adjustments. Excluding those state income tax adjustments, the incremental income tax rate for the company is approximately 40%. FINOVA Capital Corporation is a Phoenix-based major domestic commercial finance company providing secured financing and leasing products from $500,000 to $35 million to medium sized businesses. FINOVA also offers inventory and sales financing programs to manufacturers, distributors and dealers nationwide. #### 4 3 Finova Capital Corporation and Consolidated Subsidiaries Summary of Consolidated Income (Unaudited) (dollars in thousands)
Quarter Ended Six Months Ended June 30, June 30, ------------------------ ------------------------ 1995 1994 1995 1994 -------- -------- -------- -------- Interest earned from financing transactions $184,693 $121,891 $359,450 $195,852 Interest expense 90,197 53,648 174,721 87,510 Depreciation 13,168 8,324 25,911 10,281 -------- -------- -------- -------- Interest margins earned 81,328 59,919 158,818 98,061 Provision for possible credit losses 11,600 4,888 18,000 8,138 Gains on sale of assets 4,073 4,500 7,053 4,503 Selling, administrative and other operating expenses 36,420 28,964 72,995 45,205 -------- -------- -------- -------- Income before income taxes 37,381 30,567 74,876 49,221 Income taxes 13,752 13,050 28,879 20,108 -------- -------- -------- -------- Net Income $ 23,629 $ 17,517 $ 45,997 $ 29,113 ======== ======== ======== ========
5 4 The FINOVA Group Inc. Selected Consolidated Financial Data and Ratios (Unaudited) (1) (dollars in thousands)
Six Months Ended Year Ended or at or at June 30, December 31, ---------------------------- ------------ FINANCIAL DATA: 1995 1994 1994 ---------- ---------- ------------ Average funds employed (AFE) and securitizations (2) $6,124,242 $3,760,512 $4,629,578 Ending funds employed (EFE) 6,159,394 5,113,805 5,667,644 Securitizations (2) 168,059 345,752 253,386 Average earning assets (3) 5,520,877 3,316,497 4,064,971 Reserve and accrued liabilities (4) for possible credit losses 127,737 134,185 122,233 Nonaccruing assets 164,271 187,044 168,761 Total debt 5,044,834 3,963,222 4,573,354 Stockholders' equity 817,881 746,645 781,986 New business 1,004,616 698,658 1,799,331 Backlog (includes lines of credit) 1,003,263 670,401 764,326 Factored volume 809,769 367,604 1,129,936 Write-offs: Quarter 6,982 6,915 Year-to-date 15,867 12,021 35,127 RATIOS: Write-offs (annualized) as a % of AFE and average securitizations (2) 0.5% 0.6% 0.8% Nonaccruing assets as a % of EFE and securitizations (2) 2.6% 3.4% 2.9% Reserve and accrued liabilities (4) for possible credit losses as a % of: Ending funds employed and securitizations (2) 2.0% 2.5% 2.1% Nonaccruing assets 77.8% 71.7% 72.4% Interest margins earned (annualized) as a % of average earning assets 5.8% 5.9% 6.0% Selling, administrative and other operating expenses as a % of interest margins earned: Quarter 44.8% 48.3% Year-to-date 46.0% 46.1% 46.1% Total debt to equity 6.17 5.31 5.85
- ------------ (1) Includes financial results from Ambassador Factors and TriCon Capital subsequent to their acquisitions on February 14, 1994 and April 30, 1994, respectively. (2) Securitizations are assets sold under securitization agreements and managed by the company. Average contracts securitized were $211 million and $183 million for the periods ending June 30, 1995 and December 31, 1994, respectively. (3) Average earning assets equal AFE less average deferred taxes on leveraged leases ($226 million, $224 million and $225 million for the periods ending June 30, 1995 and 1994 and December 31, 1994, respectively) and average nonaccruing assets ($167 million, $144 million and $157 million for the periods ending June 30, 1995 and 1994 and December 31, 1994, respectively). (4) Accrued liabilities of $12 million, $13 million and $13 million at June 30, 1995 and 1994 and December 31, 1994, respectively, represent an allowance for estimated losses under certain recourse provisions of securitizations. 6 -----END PRIVACY-ENHANCED MESSAGE-----