-----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, ect/4Z5zhGVRrnVs1syfPSN3XRQFCoOzitevpTba5bpCEW4FDQPCCEb20YHT+T0s UjdU9GTNGITBa5hNn/k+nA== 0000950153-95-000128.txt : 19950516 0000950153-95-000128.hdr.sgml : 19950516 ACCESSION NUMBER: 0000950153-95-000128 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07543 FILM NUMBER: 95539299 BUSINESS ADDRESS: STREET 1: 1850 NORTH 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 10-Q 1 FORM 10-Q FOR PERIOD ENDING MARCH 31, 1995 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C., 20549 FORM 10-Q (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 1995 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-7543 FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 94-1278569 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1850 North Central Ave., P. O. Box 2209, Phoenix, AZ 85002-2209 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 602/207-6900 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- The registrant meets the conditions set forth in General Instructions H (1)(a) and (b) of Form 10-Q and is therefore filing this form in the reduced disclosure format. APPLICABLE ONLY TO CORPORATE ISSUERS: As of May 11, 1995, 25,000 shares of Common Stock ($1.00 par value) were outstanding and were held by an affiliate. 2 FINOVA CAPITAL CORPORATION TABLE OF CONTENTS
Page No. -------- PART I FINANCIAL INFORMATION. Item 1. Financial Statements. Condensed Consolidated Financial Information: Condensed Consolidated Balance Sheet - March 31, 1995 and December 31, 1994 1 Condensed Consolidated Income Statement - Three Months Ended March 31, 1995 and 1994 2 Condensed Consolidated Statement of Cash Flows - Three Months Ended March 31, 1995 and 1994 3 Notes to Interim Condensed Consolidated Financial Information 4 - 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 - 10 PART II OTHER INFORMATION. Item 4. Submission of Matters to Vote of Security Holders 10 Item 6. Exhibits and Reports on Form 8-K 10 SIGNATURES 11
3 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS FINOVA CAPITAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Dollars in Thousands)
March 31, December 31, ASSETS: 1995 1994 ----------- ----------- CASH AND CASH EQUIVALENTS $ 37,347 $ 52,753 INVESTMENT IN FINANCING TRANSACTIONS: Loans and other financing contracts, less unearned income of $278,817 and $249,550, respectively 4,287,275 4,034,648 Direct financing leases 815,388 774,834 Operating leases 412,712 412,782 Leveraged leases 288,019 287,518 Factored receivables 186,067 157,862 ----------- ----------- 5,989,461 5,667,644 Less reserve for possible credit losses (109,969) (109,245) ----------- ----------- Investment in financing transactions - net 5,879,492 5,558,399 OTHER ASSETS AND DEFERRED CHARGES 246,273 236,397 ----------- ----------- $ 6,163,112 $ 5,847,549 =========== =========== LIABILITIES: Accounts payable and accrued expenses $ 292,807 $ 282,910 Senior debt 4,847,273 4,573,354 Deferred income taxes 222,335 209,299 ----------- ----------- 5,362,415 5,065,563 ----------- ----------- STOCKHOLDER'S EQUITY: Common stock, $1.00 par value, 100,000 shares authorized, 25,000 shares issued and outstanding 25 25 Additional capital 677,948 677,947 Retained income 125,598 108,740 Cumulative translation adjustments (2,874) (4,726) ----------- ----------- 800,697 781,986 ----------- ----------- $ 6,163,112 $ 5,847,549 =========== ===========
See notes to interim consolidated financial information. 1 4 FINOVA CAPITAL CORPORATION CONDENSED CONSOLIDATED INCOME STATEMENT (Dollars in Thousands)
Three Months Ended March 31, ------------------- 1995 1994 -------- -------- Interest and income earned from financing transactions $174,757 $ 73,962 Interest expense 84,524 33,862 Depreciation 12,743 1,958 -------- -------- Interest margins earned 77,490 38,142 Provision for possible credit losses 6,400 3,250 -------- -------- Net interest margins earned 71,090 34,892 Gains on sale of assets 2,980 3 -------- -------- 74,070 34,895 Selling, administrative and other operating expenses 36,575 16,241 -------- -------- Income before income taxes 37,495 18,654 Income taxes 15,127 7,058 -------- -------- NET INCOME $ 22,368 $ 11,596 ======== ========
See notes to interim consolidated financial information. 2 5 FINOVA CAPITAL CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in Thousands)
Three Months Ended March 31, ---------------------- OPERATING ACTIVITIES: 1995 1994 --------- --------- Net income $ 22,368 $ 11,596 Adjustments to reconcile net income to net cash provided (used) by operating activities: Provision for possible credit losses 6,400 3,250 Depreciation and amortization 16,307 2,605 Gains on sale of assets (2,980) (3) Deferred income taxes 13,036 10,022 Change in assets and liabilities, net of effects from subsidiaries purchased (9,312) (32,497) --------- --------- Net cash provided (used) by operating activities 45,819 (5,027) --------- --------- INVESTING ACTIVITIES: Proceeds from sale of assets 11,518 29 Principal collections on financing transactions 247,085 151,658 Expenditures for financing transactions (410,339) (225,505) Net change in short-term financing transactions (67,452) (29,196) Purchase of Ambassador (246,285) Acquisition of portfolios (127,045) Other 425 213 --------- --------- Net cash used by investing activities (345,808) (349,086) --------- --------- FINANCING ACTIVITIES: Net borrowings under commercial paper 139,870 24,298 Long-term borrowings 375,000 450,000 Repayment of long-term borrowings (240,951) (42,995) Net repayment of advances from Parent (3,354) (74,427) Dividends (5,511) (4,162) Net change in due to factored clients 19,529 7,547 --------- --------- Net cash provided by financing activities 284,583 360,261 --------- --------- (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (15,406) 6,148 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 52,753 2,859 --------- --------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 37,347 $ 9,007 ========= =========
See notes to interim consolidated financial information. 3 6 FINOVA CAPITAL CORPORATION NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994 NOTE A BASIS OF PREPARATION The consolidated financial statements present the financial position, results of operations and cash flows of FINOVA Capital Corporation (formerly known as Greyhound Financial Corporation) and its subsidiaries (collectively, "FINOVA" or the "Company"), including Ambassador Factors ("Ambassadors") acquired on February 14, 1995 and TriCon Capital ("TriCon") acquired on April 30, 1994. Both Ambassador and TriCon were merged into FINOVA in 1994. Recognizing the substantial increase in the Company's size and scope of operations and its use of several names in its operations, Greyhound Financial Corporation changed its name to FINOVA Capital Corporation, a wholly owned subsidiary of The FINOVA Group Inc. ("FINOVA Group") (formerly known as GFC Financial Corporation), both changes effective February 1, 1995. The interim consolidated financial information is unaudited. In the opinion of management all adjustments, consisting only of normal recurring accruals, necessary to present fairly the financial position as of March 31, 1995, the results of operations for the three months ended March 31, 1995 and 1994 and cash flows for the three months ended March 31, 1995 and 1994, have been included. Interim results of operations are not necessarily indicative of the results of operations for the full year. NOTE B SIGNIFICANT ACCOUNTING POLICIES The Company adopted the provisions of Statement of Financial Accounting Standards ("SFAS") No. 114 "Accounting by Creditors for Impairment of a Loan" ("SFAS 114"), as amended by SFAS No. 118 "Accounting by Creditors for Impairment of a Loan - Income Recognition and Disclosures" ("SFAS 118"), as of January 1, 1995. These statements require that impaired loans be measured based on the present value of the expected cash flows discounted at the loan's effective interest rate or the fair value of the collateral, if the loan is collateral dependent. Under SFAS 114, a loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. These standards do not apply to leasing transactions or to large groups of smaller balance homogeneous loans, such as the Company's European Consumer Finance Second Mortgage portfolio. Evaluation for loan impairment is performed as a part of the portfolio management review process. When a loan is determined to be impaired, a write-down is taken or an impairment reserve is established based on the difference between the recorded balance of the loan ("carrying amount") and the relevant measured value. The total carrying amount of impaired loans was $98.7 million at March 31, 1995, $17 million of which were performing and $81.7 million of which were nonaccruing. Income is recognized in the same manner as it is on normal accruing loans. For the three months ended March 31, 1995, $0.2 million of income was recognized on these loans. Cash collected on nonaccruing impaired loans is applied to the carrying amount of the loans. Under SFAS 114, in-substance foreclosed assets are accounted for as loans. Accordingly, $12.6 million of performing and $25.3 million of nonaccruing in-substance foreclosed assets were reclassified from repossessed assets to loans. The Company has elected to account for troubled debt restructuring as defined under SFAS No. 15, "Accounting by Debtors and Creditors for Troubled Debt Restructurings", under SFAS 114. 4 7 Accounts are either written-down or written-off when the loss is considered probable and determinable, after giving consideration to the customer's financial condition and the value of the underlying collateral, including any guarantees. Impaired loans were written-down by $5.1 million during the period ended March 31, 1995. Reserve levels (including $13 million of accrued liabilities applicable to securitizations) and total non-earnings were not impacted by the adoption of SFAS 114 and approximated 2% and 2.8%, respectively of ending funds employed and securitizations. Impairment reserves of $19.8 million were required for $56.1 million of impaired loans, with no impairment reserve being required for the remaining $42.6 million of impaired loans. The total reserve for possible credit losses represents management's estimate of the amount necessary to cover potential losses in the portfolio considering delinquencies, loss experience and collateral. NOTE C PORTFOLIO QUALITY The following table presents a breakdown (by line of business) of the Company's investment in financing transactions before the reserve for possible credit losses at the dates indicated. 5 8 INVESTMENT IN FINANCING TRANSACTIONS BY LINE OF BUSINESS MARCH 31, 1995 (Dollars in Thousands)
Revenue Accruing Nonaccruing --------------------------------------- -------------------------------------- Repos- sessed Repos- Leases Total Original Impaired Assets Impaired sessed & Carrying Rate (1) (2) (1) Assets Other Amount --------------------------------------- -------------------------------------- ------------- Corporate Finance $ 786,979 $ 4,391 $ $ 18,323 $ 335 $ $ 810,028 Commercial Real Estate Finance 672,043 2,244 42,908 6,628 20,968 990 745,781 Transportation Finance (3) 725,200 725,200 Resort Finance 664,683 5,987 2,426 2,582 30,571 706,249 Communications Finance 584,052 2,557 20,135 5,863 612,607 Medical Finance 470,718 87 1,412 472,217 Manufacturer and Dealer Services (4) 342,565 992 18,209 361,766 Commercial Equipment Finance 305,052 3,032 6,522 314,606 Franchise Finance 294,873 4,374 8,932 3,178 311,357 Rediscount Finance 233,242 233,242 Commercial Finance 188,840 12,233 201,073 Factoring Services 185,320 747 186,067 Government Finance 99,158 22 99,180 European Financial Group 87,690 4,960 3,690 96,340 Inventory Finance 66,136 625 66,761 Other 44,530 2,457 46,987 ------------- ------------ ---------- ------------ ------------ ---------- ------------- TOTAL (4) $ 5,751,081 $ 16,996 $ 47,891 $ 81,733 $ 57,737 $ 34,023 $ 5,989,461 ============= ============ ========== ============ ============ ========== =============
-------------------- (1) Total recorded carrying amount of impaired loans was $98.7 million at March 31, 1995. Of the total impaired loans, $17 million were performing and $81.7 million were nonaccruing. For the period ended March 31, 1995, $0.2 million of income was recognized on these loans. Under SFAS 114, in-substance foreclosed assets should be accounted for as loans. Accordingly, $12.6 million of performing and $25.3 million of nonaccruing in-substance foreclosed assets were reclassified from repossessed assets to loans. (2) The Company earned income totaling $0.7 million on repossessed assets during 1995, including $0.6 million in Commercial Real Estate Finance, $0.05 million in Communications Finance and $0.04 million in Resort Finance. (3) Transportation Finance includes $80.1 million of new aircraft finance business booked through the London office. (4) Excludes $210.4 million of assets securitized which the Company manages. -------------------- 6 9 RESERVE AND ACCRUED LIABILITIES FOR POSSIBLE CREDIT LOSSES: The reserve and accrued liabilities for possible credit losses of $123 million at March 31, 1995 represents 2.0% of the aggregate carrying amount of the investment in financing transactions and securitized assets ("managed assets") before deducting such reserve. Accrued liabilities of $13 million represent an allowance for estimated losses under certain recourse provisions on $210 million of assets securitized. Changes in the reserve for possible credit losses were as follows:
Three Months Ended March 31, -------------------------- 1995 1994 --------- --------- (Dollars in Thousands) Balance, beginning of period $ 109,245 $ 64,280 Provision for possible credit losses 6,400 3,250 Write-offs (8,885) (5,106) Recoveries 426 213 Other 2,783 10,420 --------- --------- Balance, end of period $ 109,969 $ 73,057 ========= =========
The Company believes that collateral values significantly reduce its loss exposure and that the reserve for possible credit losses is adequate. The specific impairment reserve of $19.8 million at March 31, 1995 applies to $56.1 million of the $98.7 million of impaired loans. The general reserve in the reserve for possible credit losses represents management's estimate of the amount to cover potential losses in the portfolio considering delinquencies, loss experience and collateral. Additions to general and specific reserves are reflected in current operations. Management may transfer reserves between the general and specific reserves as considered necessary. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 1995 TO THE THREE MONTHS ENDED MARCH 31, 1994 The following discussion relates to FINOVA Capital Corporation (formerly known as Greyhound Financial Corporation) and its subsidiaries (collectively, "FINOVA" or the "Company"), including Ambassador Factors ("Ambassadors") acquired on February 14, 1995 and TriCon Capital ("TriCon") acquired on April 30, 1994. Both Ambassador and TriCon were merged into FINOVA in 1994. Recognizing the substantial increase in the Company's size and scope of operations and its use of several names in its operations, Greyhound Financial Corporation changed its name to FINOVA Capital Corporation, a wholly owned subsidiary of The FINOVA Group Inc. ("FINOVA Group") (formerly known as GFC Financial Corporation), both changes effective February 1, 1995. 7 10 RESULTS OF OPERATIONS Net income increased to $22.4 million during the first quarter of 1995 from $11.6 million for the first quarter of 1994, an increase of 93%. INTEREST MARGINS EARNED. Interest margins earned, which represent the difference between interest and income earned from financing transactions and interest expense and depreciation, increased to $77.5 million for 1995 from $38.1 million for 1994. This increase was driven by portfolio growth, together with the addition of TriCon and Ambassador in 1994. The primary source of the portfolio growth was first quarter new business, which totaled $478 million for 1995 compared to $255 million for 1994 (an increase of 87%). Portfolio growth was also helped by the acquisition of $117 million of consumer rediscount assets from Transamerican Financial Corporation during the first quarter of 1995. Factoring volume also increased in 1995 to $381 million for the first quarter, almost double the 1994 volume. Interest margins earned, measured as a percent of average earning assets, were 5.7% for the first quarter of 1995. A substantial portion of the growth in funds employed during the quarter occurred in March. As a result, the interest margin for the first quarter of 1995 includes only a fraction of the interest margin expected to be earned on the assets added during the quarter. While strong, interest margins for the quarter were expected to decline slightly from the 6% level reported for the full year 1994. In addition to the timing of new business, the expected margin decline resulted, in part, from the cost of interest rate hedging activities during the first quarter of 1995. The Company helped protect its margins on floating-rate transactions by hedging an additional $750 million of floating-rate debt to lock in the spread between the Company's lending and borrowing rates. With these agreements, the Company has protected its margins on $1.5 billion of floating-rate transactions (or approximately 50% of its floating-rate liabilities) during the respective hedge terms. Growth in interest margins more than offset the higher provisions for possible credit losses and the higher selling, administrative and other operating expenses ("operating expenses") in the 1995 period. NON-INTEREST EXPENSE. Loss provisions, which increase the reserve for possible credit losses ("reserve"), were greater by $3.2 million during 1995 compared to 1994. The greater loss provisions were consistent with the requirements of a larger portfolio and the loss experience of the businesses acquired. Higher interest margins generated by Ambassador and certain TriCon businesses are used to cover the risk profiles associated with those businesses. Management believes that reserve coverage (reserve and accrued liabilities/nonaccruing assets) remains adequate at 70.9% of nonaccruing assets and at 2.0% of funds employed and securitizations. The higher operating expenses are primarily attributable to the additions of TriCon and Ambassador, as well as to expenses incurred in connection with the higher volume of new business added during the quarter. The running rate of these expenses, measured as a percent of interest margins earned, was 47.2% (for the combined entities) in 1995, an increase over 42.6% in 1994. It should be noted that the ratio relative to operating expenses was also impacted by the fact that a full quarter's revenues were not reflected for the volume of business added during the period because much of the new business was added toward the end of the quarter. GAINS ON SALE OF ASSETS. Gains on sale of assets were $3.0 million higher during the period ended March 31, 1995 compared to March 31, 1994 due to the amount and type of assets sold. 8 11 INCOME TAXES. Income taxes for 1995 increased to $15.1 million from $7.1 million in 1994. Income taxes were higher in the first quarter of 1995 due to an increase in income before income taxes and to a higher tax rate in effect during the first quarter of 1995 (40.3% in 1995 vs. 37.8% in 1994). FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Funds employed increased by $322 million to $6.0 billion at March 31, 1995 from $5.7 billion at December 31, 1994. This increase is attributable to new business generated ($478 million) and the portfolio acquisition of approximately $117 million of rediscount loans. The reserve and accrued liabilities for possible credit losses at March 31, 1995 remained relatively constant when compared to December 31, 1994. The increase in the reserve and accrued liabilities consisted of increases due to loss provisions of $6.4 million which were applicable to portfolio growth and $2.4 million of reserves acquired with the rediscount portfolio, offset by decreases due to write-offs of $8.9 million. Nonaccruing contracts and repossessed assets increased to $173.5 million at March 31, 1995 from $168.8 million at December 31, 1994. When measured as a percent of funds employed and securitizations, nonearning assets declined to 2.8% at March 31, 1995 from 2.9% at December 31, 1994. The Company had total debt of approximately $4.8 billion or 6.05 times its equity base of $801 million at March 31, 1995. The Company also had deferred income taxes of $222.3 million, generally used to reduce debt and, therefore, help finance lending activities. Growth in funds employed is generally financed by internally generated cash flow and additional borrowings. During the first three months of 1995, FINOVA issued $375 million in new senior debt, which together with general corporate funds and net commercial paper borrowings were used to finance new business, redeem or retire $241 million of debt and acquire the rediscount portfolio. RECENT DEVELOPMENTS AND BUSINESS OUTLOOK Following the Spin-Off in 1992, the Company focused its resources and capital on its domestic commercial finance activities. The Company embarked on a program of selling or winding down those businesses included in the Spin-Off that were not associated with the Company's charter domestic commercial finance activities. The Company concentrated on redeploying the capital previously invested in such businesses and raised additional capital to support internal portfolio growth and to make selected acquisitions to complement the Company's charter operations. This strategy has resulted in (i) the managed liquidation and sale of the GEFG and Latin American loan portfolios, (ii) an increase (excluding acquisitions) in FINOVA's domestic loan portfolio each year, (iii) the acquisition of the asset based lending activity of U.S. Bancorp, (iv) the sale of the discontinued mortgage insurance subsidiary by The FINOVA Group, (v) the acquisition of Ambassador and (vi) the acquisition of TriCon. More recently, on February 27, 1995, FINOVA acquired substantially all of the rediscount portfolio of the Lender Finance Division of Transamerica Business Credit Corporation, a wholly owned subsidiary of Transamerica Corporation. The rediscount portfolio is comprised of secured revolving credit facilities to independent consumer finance companies. The principal amount of the loans purchased amounted to approximately $117 million. The European Consumer Finance Second Mortgage portfolio was sold in April 1995 to Beneficial Bank PLC. The sales price includes approximately $14 million cash at closing plus contingent payments of $8 million predicated on cash collections, the total of which ($22 million) approximates the Company's book 9 12 value in those assets. These activities and the Company's performance were implicitly recognized in the Company's recent increases in credit ratings of its senior debt by Standard & Poor's Rating Group to BBB+ from BBB and by Moody's Investors Service to Baa1 from Baa2. NEW ACCOUNTING STANDARDS The Company adopted the provisions of Statement of Financial Accounting Standards ("SFAS") No. 114 "Accounting by Creditors for Impairment of a Loan" ("SFAS 114"), as amended by SFAS No. 118 "Accounting by Creditors for Impairment of a Loan - Income Recognition and Disclosures" ("SFAS 118"), as of January 1, 1995. These statements require that impaired loans be measured based on the present value of the expected cash flows discounted at the loan's effective interest rate or the fair value of the collateral, if the loan is collateral dependent. Under SFAS 114, a loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. For the impact and disclosures of these new standards, see Notes B and C to Interim Condensed Consolidated Financial Information. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. OMITTED. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) The following exhibits are filed herewith:
Exhibit No. Document ----------- -------- 12 Computation of Ratio of Income to Combined Fixed Charges and Preferred Stock Dividends (interim period). 27 Financial Data Schedule.
(b) Reports on Form 8-K: A Report on Form 8-K dated April 19, 1995 was filed by Registrant which reported under Items 5 and 7 the revenues, net income and selected financial data and ratios for the three months ended March 31, 1995 (unaudited). 10 13 FINOVA CAPITAL CORPORATION 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: May 15, 1995 By: /s/ Bruno A. Marszowski -------------------------------------------------- Bruno A. Marszowski, Senior Vice President, Chief Financial Officer and Controller Principal Accounting Officer/Authorized Officer
11 14 FINOVA CAPITAL CORPORATION COMMISSION FILE NUMBER 1-7543 EXHIBIT INDEX MARCH 31, 1995 FORM 10-Q
No. Title - -------- ------------------------------------------------------------------- (12) Computation of Income to Combined Fixed Charges and Preferred Stock Dividends (27) Financial Data Schedule
12 EX-12 2 EXHIBIT 12 COMPUTATION OF RATIO OF INCOME 1 EXHIBIT 12 FINOVA CAPITAL CORPORATION Computation of Ratio of Income to Combined Fixed Charges and Preferred Stock Dividends (Dollars in Thousands)
Three Months Ended Year Ended March 31, December 31, ------------------- ------------------------------ 1995 1994 1994 1993 1992 ------------------- ------------------------------ Net income before income taxes $ 37,495 $ 18,654 $123,755 $ 64,123 $ 50,593 Add fixed charges: Interest expense 84,524 33,862 222,929 126,152 136,107 One-third rentals 648 366 2,041 1,387 1,498 -------- -------- -------- -------- -------- Total fixed charges 85,172 34,228 224,970 127,539 137,605 -------- -------- -------- -------- -------- Net income as adjusted $122,667 $ 52,882 $348,725 $191,662 $188,198 -------- -------- -------- -------- -------- Ratio of income to fixed charges 1.44 1.54 1.55 1.50 1.37 ======== ======== ======== ======== ======== Preferred stock dividends on a pre-tax basis $ 0 $ 930 $ 930 $ 3,682 $ 2,826 Total combined fixed charges and preferred stock dividends $ 85,172 $ 35,158 $225,900 $131,221 $140,431 -------- -------- -------- -------- -------- Ratio of income to combined fixed charges and preferred stock dividends 1.44 1.51 1.54 1.46 1.34 ======== ======== ======== ======== ========
13 EX-27 3 EXHIBIT 27 FINANCIAL DATA SCHEDULE
9 3-MOS DEC-31-1995 MAR-31-1995 37,347 0 0 0 0 0 0 5,989,461 (109,969) 6,163,112 0 0 515,142 4,487,273 25 0 0 800,672 6,163,112 174,757 0 0 84,524 0 0 77,490 6,400 0 36,575 37,495 0 0 0 22,368 0 0 5.71 173,493 0 0 0 122,233 8,885 426 122,953 0 0 0
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