-----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, S5aqNkXrBGxRrYHYGe/jVCDaVtQjC2I7pZDWjdPzMOG3MEprCtqW/zHRh3RD8+n0 k5JvAMVjRnQfEj3fWyzT+A== 0000950153-95-000286.txt : 19951020 0000950153-95-000286.hdr.sgml : 19951020 ACCESSION NUMBER: 0000950153-95-000286 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951018 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951019 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: 95581669 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: 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 FORM 8-K DATED OCTOBER 18, 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): October 18, 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 third quarter ended September 30, 1995 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits: Exhibits Title -------- ------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated October 18, 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: October 18, 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 DATED OCTOBER 18, 1995. 1 Robert J. Fitzsimmons Immediate Release 602/ 207-5759 FINOVA CAPITAL CORPORATION ANNOUNCES RECORD RESULTS FOR THE THIRD QUARTER OF 1995 PHOENIX, Ariz., Oct. 18, 1995 -- FINOVA Capital Corporation today reported record results and a 29% (annualized) growth in the portfolio for the third quarter ended Sept. 30, 1995. Net income for the nine months of 1995 was $71.1 million compared to $51.2 million for the nine months of 1994, a 39% increase in net income. For the third quarter of 1995 net income was $25.2 million up from $22.1 million for the comparable period in 1994, a 14% increase in net income. Sam Eichenfield, chairman and chief executive officer of FINOVA, said he was quite pleased with the strong third quarter results, particularly in view of the increased expenses (including $8.6 million in additional reserve provisions) incurred in connection with the robust portfolio growth. Eichenfield noted that, "FINOVA's ability to generate a substantial amount of new, high quality loans and maintain margins is indicative of the role it is playing in the middle market." Eichenfield went on to say that "a substantial portion of the third quarter's new business was added toward the end of the quarter, and, as a result, did not contribute to the current period's profitability but will contribute in subsequent periods." Portfolio quality and interest margins continued to be sustained with nonperformings as a percent of managed assets declining to 2.5% at the end of the third quarter from 2.6% at the end of the prior quarter and interest margins holding at 5.8%, which is consistent with the prior quarters of 1995. --more-- 3 2 The increase in the amount of interest margins earned more than offset the significant increase in provisions for possible credit losses and higher selling, administrative and other operating expenses ("G&A expenses"). Loss provisions, which increased by $8.6 million over the third quarter of 1994, were due primarily to the growth of the portfolio. Reserve coverage, which includes the reserve for possible credit losses and $12 million of accrued liabilities established as reserves applicable to securitized transactions, was 2.0% of ending funds employed and securitizations and 77.8% of nonaccruing assets. G&A expenses for the third quarter of 1995 were higher than the comparable 1994 period principally due to higher incentive accruals related to improved results and the higher volume of new business added during the year. These increases were partially offset by lower problem account costs. Income taxes were higher in the third quarter of 1995 due to an increase in income before income taxes which more than offset the effects of certain tax credits. 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 Nine Months Ended September 30, September 30, ---------------------------------- ---------------------------------- 1995 1994 1995 1994 ------------- ------------- ------------- ------------- Interest earned from financing transactions $ 192,287 $ 147,649 $ 551,737 $ 343,501 Interest expense 93,136 65,881 267,857 153,391 Depreciation 12,980 11,345 38,891 21,626 ------------- ------------- ------------- ------------- Interest margins earned 86,171 70,423 244,989 168,484 Provision for possible credit losses 10,800 2,215 28,800 10,353 Gains on sale of assets 4,646 1,169 11,699 5,672 Selling, administrative and other operating expenses 39,583 32,591 112,578 77,796 ------------- ------------- ------------- ------------- Income before income taxes 40,434 36,786 115,310 86,007 Income taxes 15,284 14,730 44,163 34,838 ------------- ------------- ------------- ------------- Net Income $ 25,150 $ 22,056 $ 71,147 $ 51,169 ============= ============= ============= =============
5 4 FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (dollars in thousands)
Nine Months Ended Year Ended or at or at September 30, December 31, -------------------------------- -------------- FINANCIAL DATA: 1995 1994 1994 ------------ ------------ -------------- Average funds employed (AFE) and securitizations (2) $ 6,243,118 $ 4,289,404 $ 4,629,578 Ending funds employed (EFE) 6,609,220 5,294,099 5,667,644 Securitizations (2) 133,051 307,459 253,386 Average earning assets (3): Quarter 5,934,645 4,769,513 Year-to-date 5,655,656 3,759,107 4,064,971 Reserve and accrued liabilities (4) for possible credit losses 131,564 130,727 122,233 Nonaccruing assets 169,180 186,016 168,761 Total debt 5,403,323 4,162,286 4,573,354 Stockholder's equity 836,415 765,037 781,986 New business 1,689,939 1,120,927 1,799,331 Backlog (includes lines of credit) 1,127,717 818,958 764,326 Factored volume/floor planning 1,337,909 594,132 1,129,936 Write-offs: Quarter 7,001 7,098 Year-to-date 22,868 19,009 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) 2.5% 3.3% 2.9% Reserve and accrued liabilities (4) for possible credit losses as a % of: Ending funds employed and securitizations (2) 2.0% 2.3% 2.1% Nonaccruing assets 77.8% 70.3% 72.4% Interest margins earned (annualized) as a % of average earning assets: Quarter 5.8% 5.9% Year-to-date 5.8% 6.0% 6.0% Selling, administrative and other operating expenses as a % of interest margins earned: Quarter 45.9% 46.3% Year-to-date 46.0% 46.2% 46.1% Total debt to equity 6.46x 5.40x 5.85x
- ------------ (1) Includes financial results from Ambassador Factors and TriCon Capital subsequent to their acquisitions on February 14, 1994 and April 30, 1994, respectively. Averages for the periods presented are based on month-end balances. (2) Securitizations are assets sold under securitization agreements and managed by the company. (3) Average earning assets equal AFE less average deferred taxes on leveraged leases and average nonaccruing assets. (4) Accrued liabilities of $12 million, $15 million and $13 million at September 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-----