-----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, UuSE+Rdf1xSJurOQO72Il/amstiTCLcFcW0vP80XxGbaTu5AiwAQ/lblmrS06Fpu Iy7Y0NmOV8xjiFQNM7DA4A== 0000950153-96-000223.txt : 19960419 0000950153-96-000223.hdr.sgml : 19960419 ACCESSION NUMBER: 0000950153-96-000223 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960417 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960418 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: 96548298 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 CURRENT REPORT OF FINOVA CAPITAL CORP DATED 4/17 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): April 17, 1996 ------------------------------- 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 today announced revenues, net income and selected financial data and ratios for the first quarter ended March 31, 1996 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits: Exhibits Title -------------- -------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated April 17, 1996 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: April 18, 1996 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 FINOVA CAPITAL CORPORATION 1 EXHIBIT 28 Robert J. Fitzsimmons Immediate Release 602/ 207-5759 THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC., WHOSE EARNINGS WERE RELEASED APRIL 16, 1996 FINOVA CAPITAL CORPORATION ANNOUNCES 21% INCREASE IN NET INCOME FOR FIRST QUARTER OF 1996 PHOENIX, Ariz., Apr. 17, 1996 -- FINOVA Capital Corporation today reported net income of $27.1 million for the first quarter of 1996 compared to $22.4 million for the first quarter of 1995, a 21% increase in net income. Sam Eichenfield, chairman and chief executive officer of FINOVA Capital, said he was pleased with the company's first quarter performance which included stable interest margins at the 5.8% level, improved portfolio quality, a record level of new business for a first quarter and an increase in return on equity to 13%. During the first quarter of 1996, FINOVA generated $1.4 billion in new business and factoring volume, which included additions from substantially all the lines of business and represented an increase of 65% over the first quarter of 1995. This new business volume was achieved while maintaining the backlog of new business at $1.1 billion (the level at Dec. 31, 1995) and resulted in managed assets reaching a record level of $7.3 billion at March 31, 1996. Eichenfield stated that "the growth rate for the quarter was an annualized 11% and would have been higher except for an extraordinary amount of prepayments which were due in part to initial public offerings by our borrowers and, in some cases, included the early termination of lower-yielding assets." Portfolio quality continued to improve during the quarter as nonaccruing assets as a percentage of managed assets declined to 2.3% at the end of the first quarter compared to 2.8% one year ago. Write-offs for the quarter were $10.4 million or 0.58% (annualized) of average managed assets, while reserves for possible credit losses at March 31, 1996 represented 2.0% of managed assets and improved to 86.4% of nonaccruing assets (compared to 70.9% at March 31, 1995). Selling, administrative and other operating expenses included increased incentive accruals related to the higher volume of new business and continuing improved performance and, as a percent of interest margins earned, were 46.0% for the first quarter of 1996, down from 47.2% for the first quarter of 1995. Income taxes were higher due to the increase in income before income taxes, which more than offset the effects of a lower effective income tax rate (37.3%) attributable to increased tax exempt municipal income and lower state taxes. 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 midsize businesses. FINOVA also offers inventory and sales financing programs to manufacturers, distributors and dealers nationwide. #### 3 2 FINOVA Capital Corporation and Consolidated Subsidiaries Summary of Consolidated Income (Unaudited) (Dollars in Thousands)
Three Months Ended March 31, ----------------------------- 1996 1995 --------- --------- Interest earned from financing transactions $ 208,556 $ 174,757 Interest expense (97,056) (84,524) Depreciation (17,278) (12,743) --------- --------- Interest margins earned 94,222 77,490 Provision for possible credit losses (14,250) (6,400) Gains on sale of assets 6,657 2,980 Selling, administrative and other operating expenses (43,350) (36,575) --------- --------- Income before income taxes 43,279 37,495 Income taxes (16,158) (15,127) --------- --------- Net Income $ 27,121 $ 22,368 ========= =========
4 3 FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (Dollars in Thousands)
Year Ended or at As of March 31 December 31, ------------------------------- ------------ 1996 1995 1995 ---------- ---------- ------------ FINANCIAL POSITION: Ending funds employed (EFE) $6,944,914 $5,989,461 $6,819,057 Securitizations (2) 374,386 210,448 303,304 ---------- ---------- ---------- Total managed assets 7,319,300 6,199,909 7,122,361 Reserve for possible credit losses 144,754 122,953 140,333 Nonaccruing assets 167,454 173,493 167,872 Nonaccruing assets as a % of managed assets 2.3% 2.8% 2.4% Reserve for possible credit losses as a % of: Ending managed assets 2.0% 2.0% 2.0% Nonaccruing assets 86.4% 70.9% 83.6% Total debt $5,736,159 $4,847,273 $5,649,368 Stockholder's equity 875,493 800,697 855,579 Total debt to equity 6.55x 6.05x 6.60x Backlog $1,078,232 $ 955,656 $1,070,573 For the Year For The Quarter Ended Ended March 31 December 31, ------------------------------- ------------ 1996 1995 1995 ---------- ---------- ------------ PERFORMANCE HIGHLIGHTS: Average funds employed (AFE) and securitizations $7,194,525 $6,060,470 $6,401,368 Average earning assets (3) 6,478,515 5,430,923 5,815,455 New business 723,187 477,791 2,570,993 Factoring volume/floor planning 694,093 381,294 1,951,310 Write-offs 10,410 8,885 35,533 Write-offs (annualized) as a % of AFE and average securitizations 0.58% 0.59% 0.56% Interest margins earned (annualized) as a % of average earning assets 5.8% 5.7% 5.8% Selling, administrative and other operating expenses as a % of interest margins earned 46.0% 47.2% 45.6%
- ------------ (1) 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. 5 -----END PRIVACY-ENHANCED MESSAGE-----