-----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, s5m/fLNcNTTH2e1PG3AhziL6FaVqjzwKlLWDE5RARjuLxOquRIcg7ckI8F0Eu1u9 4tTDFiZxmsFxyvUlBwpTbQ== 0000950153-94-000206.txt : 19941024 0000950153-94-000206.hdr.sgml : 19941024 ACCESSION NUMBER: 0000950153-94-000206 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941020 ITEM INFORMATION: Acquisition or disposition of assets FILED AS OF DATE: 19941021 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREYHOUND FINANCIAL CORP CENTRAL INDEX KEY: 0000043960 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94554286 BUSINESS ADDRESS: STREET 1: DIAL TOWER STE 1159 CITY: PHOENIX STATE: AZ ZIP: 85077-1159 BUSINESS PHONE: 6022076900 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND LEASING & FINANCIAL CORP DATE OF NAME CHANGE: 19870330 8-K 1 FORM 8-K OF GREYHOUND FINANCIAL DATED 10/20/94 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): October 20, 1994 - --------------------------------------------------------------------------------------------- GREYHOUND FINANCIAL 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.) DIAL CORPORATE CENTER, PHOENIX, ARIZONA 85077 - --------------------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 602/207-6900 - ---------------------------------------------------------------------------------------------
2 Item 5. Other Events. Greyhound Financial Corporation, the principal operating company of GFC Financial Corporation, announced on October 20, 1994 revenues, net income and selected financial data and ratios for the third quarter and nine months ended September 30, 1994 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits:
Exhibits Title ----------------- --------------------------------------------------- 28 Press Release of Greyhound Financial Corporation dated October 20, 1994
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. GREYHOUND FINANCIAL CORPORATION (Registrant) Dated: October 21, 1994 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 OF THIRD QUARTER EARNINGS FOR GFC 1 EXHIBIT 28 Robert J. Fitzsimmons Embargo until 602/ 207-5759 8:00 a.m. (E.D.T.) 10/20/94 THESE ARE THE EARNINGS FOR GREYHOUND FINANCIAL CORPORATION THE PRINCIPAL SUBSIDIARY OF GFC FINANCIAL CORPORATION WHOSE EARNINGS WERE RELEASED OCTOBER 18, 1994 GREYHOUND FINANCIAL CORPORATION ANNOUNCES THIRD QUARTER RESULTS PHOENIX, Arizona, October 20, 1994 -- Greyhound Financial Corporation (the "Company") today reported strong results for the third quarter ended September 30, 1994 resulting from the addition of an acquisition for a full quarter, quality portfolio growth and sustained net interest margins. Net income was $22.1 million for the third quarter of 1994 compared to $6.8 million for the third quarter of 1993, a 225% increase. The results for the third quarter of 1994 include income for a full quarter from TriCon Capital ("TriCon") acquired on April 30, 1994. Net income for the third quarter of 1993 included a $4.9 million adjustment for tax rate increases applicable to deferred income taxes generated by the Company's leveraged lease portfolio. Excluding this adjustment, net income for the third quarter of 1993 was $11.6 million. The improvement in net income over the third quarter of 1993, before including the adjustment for deferred income taxes, was 91%. 3 2 Sam Eichenfield, President, Chairman and Chief Executive Officer of the Company, indicated that he was pleased with the strong performance for the third quarter of 1994, which is the first full quarter with both Ambassador Factors ("Ambassador), the factoring and asset based lending company acquired in February 1994, and TriCon. Eichenfield stated that "along with the Company's core operations, the addition of Ambassador and TriCon has formed a solid foundation for the Company's continued growth." He added that new business volume continues strong, exceeding $1.1 billion for the nine months of 1994 and portfolio quality continues to improve. Nonearning assets as a percent of funds employed was 3.5% of funds employed at September 30, 1994, an improvement from 3.7% at the end of the second quarter of 1994, and measured as a percent of funds employed and securitizations, declined further to 3.3% at September 30, 1994. Interest margins earned continue to hold at 6.0% of average earning assets. This measurement compares to 5.4% for the 1993 period and reflects the contributions of the acquisitions made in 1994 as well as the continuing strong returns of the core financial operations. The interest margins more than offset the higher provisions for possible credit losses and the higher selling, administrative and other operating expenses ("operating expenses"). The higher loss provisions are attributable to the operations of the businesses acquired in 1994 and are consistent with the dynamics and expected loss experience of the businesses. The higher operating expenses are primarily attributable to the acquisitions of TriCon and Ambassador in 1994. The running rate of these expenses (measured as a percent of interest margins earned) was 46.2% (for the combined entities) in 1994 a slight increase from 46.1% for GFC (which excluded TriCon and Ambassador) in 1993. Earnings also benefited from strong portfolio growth. New business volume was up by 90% to $1.1 billion for the first nine months of 1994, from $591 million for the 1993 period. Income taxes were higher in the third quarter of 1994 due to an increase in income before income taxes and to a higher tax rate in effect during the third quarter of 1994 (primarily attributable to foreign income taxes provided). 4 3 Greyhound Financial Corporation, with assets of $5.4 billion, is a Phoenix-based major domestic commercial finance company providing secured lending to middle-market companies, making loans from $500,000 to $35 million. The Company also offers financing programs to manufacturers, distributors, vendors and franchisors to facilitate the sale of their products to end-users. #### 5 4 GREYHOUND FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES SUMMARY OF CONSOLIDATED INCOME (UNAUDITED) (Dollars in Thousands)
Quarter Ended Nine Months Ended September 30, September 30, --------------------------------------- ------------------------------------- 1994 1993 1994 1993 ----------------- ----------------- ----------------- --------------- Interest earned from financing transactions $ 147,649 $ 64,944 $ 343,501 $ 188,406 Interest expense 65,881 30,788 153,391 92,779 Operating lease depreciation 11,345 1,494 21,626 4,338 -------------- ---------------- -------------- --------------- Interest margins earned 70,423 32,662 168,484 91,289 Provision for possible credit losses 2,215 178 10,353 3,706 Gains on securitizations and sale of assets 1,169 5,672 2,240 Selling, administrative and other operating expenses 32,591 14,211 77,796 42,044 -------------- ---------------- -------------- --------------- Income before income taxes 36,786 18,273 86,007 47,779 Income taxes (1) 14,730 11,523 34,838 22,161 -------------- ---------------- -------------- --------------- Net Income $ 22,056 $ 6,750 $ 51,169 $ 25,618 ============== ================ ============== ===============
(1) The results of operations for the quarter and nine months ended September 30, 1993 include a one time adjustment of $4,857,000 representing the effect of federal tax increases and state income taxes primarily applicable to deferred income taxes generated by the company's leveraged lease portfolio. 6 5 GREYHOUND FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA AND RATIOS (UNAUDITED) (Dollars in Thousands)
Nine Months Ended Year Ended or at or at September 30, December 31, --------------------------------------- ---------------------- 1994 (1) 1993 (4) 1993 (4) ------------------ ------------------ ---------------------- FINANCIAL DATA: Average funds employed (AFE) and securitizations (2) $4,289,404 $2,570,355 $ 2,666,208 Ending funds employed (EFE) 5,294,099 2,654,865 2,846,571 Securitizations (2) 307,459 Average earning assets (3) 3,759,107 2,255,330 2,350,019 Nonearning assets 186,016 101,753 102,607 Reserve and accrued liabilities for possible credit losses (5) 130,727 66,339 64,280 Total debt 4,165,016 1,939,504 2,082,350 Stockholder's equity 765,037 339,780 345,291 New business 1,120,927 591,215 1,007,794 Factoring volume 594,132 Write-offs: Quarter 7,098 1,665 Year-to-date 19,009 8,337 12,575 RATIOS: Write-offs (annualized) as a % of AFE and securitizations 0.6% 0.4% 0.5% Nonearning assets as a % of EFE and securitizations (2) 3.3% 3.8% 3.6% Reserve and accrued liabilities for possible credit losses as a % of: Ending funds employed and securitizations (2) (5) 2.3% 2.5% 2.3% Nonearning assets 70.3% 65.2% 62.6% Interest margins earned (annualized) as a % of average earning assets (3) 6.0% 5.4% 5.2% Selling, administrative and other operating expenses as a % of interest margins earned 46.2% 46.1% 47.5% Total debt to equity 5.4 5.7 6.0 - -------------
(1) Includes financial results from the acquisitions of Ambassador (February 14, 1994) and TriCon (April 30, 1994). (2) Securitizations are assets sold under securitization agreements and managed by the Company. (3) Average earning assets are net of average deferred taxes on leveraged leases and average nonearning assets for the periods presented. (4) The 1993 periods exclude TriCon and Ambassador. (5) Loss reserves for securitized transactions total $15,496 and are classified as accrued liabilities in the balance sheet. 7 -----END PRIVACY-ENHANCED MESSAGE-----