-----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, Myl0PkpPbFDD9/etNknbA7OJeZoV6QcpYRK2Ta1zIRkQT8PrKyaB6LYguTkynGlU KB5f630mkasWuInIx8ab6Q== /in/edgar/work/20000721/0000950131-00-004426/0000950131-00-004426.txt : 20000920 0000950131-00-004426.hdr.sgml : 20000920 ACCESSION NUMBER: 0000950131-00-004426 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000719 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELLER FINANCIAL INC CENTRAL INDEX KEY: 0000046738 STANDARD INDUSTRIAL CLASSIFICATION: [6153 ] IRS NUMBER: 361208070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06157 FILM NUMBER: 676326 BUSINESS ADDRESS: STREET 1: 500 W MONROE ST CITY: CHICAGO STATE: IL ZIP: 60661 BUSINESS PHONE: 3124417000 MAIL ADDRESS: STREET 1: 500 W MONROE ST CITY: CHICAGO STATE: IL ZIP: 60661 FORMER COMPANY: FORMER CONFORMED NAME: HELLER WALTER E & CO /NEW/ DATE OF NAME CHANGE: 19850503 8-K 1 0001.txt FORM 8-K 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: July 19, 2000 ------------- (Date of earliest event reported) HELLER FINANCIAL, INC. ---------------------- (Exact name of registrant as specified in its charter) Delaware -------- (State or other jurisdiction of incorporation) 1-6157 36-1208070 ------ ---------- (Commission File Number) (IRS Employer Identification Number) 500 West Monroe Street, Chicago, Illinois 60661 - ----------------------------------------- ----- (Address of principal executive offices) (Zip Code) (312) 441-7000 -------------- (Registrant's telephone number, including area code) Item 5. Other Events - ------- ------------ On July 20, 2000, Heller Financial, Inc. (the "Registrant") issued a press release announcing its earnings for the quarter ending June 30, 2000. A copy of the press release is attached. Item 7. Financial Statements and Exhibits - ------- --------------------------------- (c) Exhibits 99 Heller Financial, Inc. - Press Release SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 20, 2000 ------------- HELLER FINANCIAL, INC. By: /s/ Lauralee E. Martin ------------------------------ Lauralee E. Martin Title: Executive Vice President and Chief Financial Officer 2 EXHIBIT INDEX Exhibit Number Description - ------ ----------- 99 Heller Financial, Inc. - Press Release 3 EX-99 2 0002.txt PRESS RELEASE Exhibit 99 [LOGO OF HELLER] Heller Financial, Inc. 500 West Monroe Street Chicago, Illinois 60661 312/441-7000 - -------------------------------------------------------------------------------- For Further Information Contact News Release Dan Murphy/Investor Relations 312/441-7642 Peter Duckler or Pamela Flores HLB Communications, Inc. 312/649-0371 Heller Financial Reports Second Quarter Net Income of $70 million, EPS of $.65 ------------------------------------------------------------------------------ Chicago--(July 20, 2000)--Heller Financial, Inc. (NYSE: HF) today reported net income of $70 million for the second quarter of 2000, an increase of 21 percent over second quarter 1999. Net income applicable to common stock was $63 million, an increase of 24 percent over the prior year period. Diluted earnings per share were $.65 for the quarter, an increase of 14 percent over the second quarter of 1999. Earnings growth for the quarter was driven by strong new business volume, stable net interest margin, increased operating revenues, improved operating efficiency and continued strong performance in the credit quality of Heller's portfolio. "We are very proud to report another solid quarter of results," said Chairman and Chief Executive Officer Richard J. Almeida. "We believe these results validate the strength of our business franchise across growth markets. Highlights included: Heller's new business volume totaled $2.2 billion for the quarter, increasing 20 percent over the prior year period, with particular strength in corporate finance, leasing services and healthcare finance. Total lending assets and investments grew to $18.3 billion. Operating revenues for the quarter were $262 million, a 16 percent increase over second quarter 1999. Heller's multiple revenue sources continued to drive the growth in operating revenues, as both interest and non-interest income increased. Net interest income increased 33 percent over the prior year period, due to growth in the Company's portfolio of lending assets. Excluding factoring commissions, which fell due to the 1999 sale of the domestic factoring business, non-interest income grew 12 percent on strong performance in Heller's investment portfolios. Heller's operating margin was 6.2 percent for the quarter. Net interest margin was 3.7 percent, consistent with both the first quarter of 2000 and the second quarter of 1999. Credit quality in Heller's portfolio remained strong. Net writedowns totaled $25 million during the quarter, .65 percent of average lending assets. Heller's nonearning assets were 1.7 percent of total lending assets versus 1.6 percent at March 31, 2000, favorable to Heller's target range of two to four percent. The Company's loan loss reserve of 2.1 percent of receivables remains in excess of 100 percent of nonearning receivables. Operating expenses totaled $116 million for the second quarter, an increase of 8 percent over the second quarter of 1999. Heller's efficiency ratio improved to 44 percent for the quarter from 48 percent for both the second quarter and full year in 1999. "This was a solid quarter on all fronts, illustrating our commitment to credit quality and on improving operational efficiency and financial returns. We are very optimistic about the prospects for our business and financial performance in the second half of 2000." Heller Financial, Inc. is a worldwide commercial finance company providing a broad range of financing solutions to middle-market and small business clients. With nearly $20 billion in total assets, Heller offers equipment financing and leasing, sales finance programs, collateral and cash flow-based financing, financing for healthcare companies and financing for commercial real estate. The company also offers trade finance, factoring, asset-based lending, leasing and vendor finance products and programs to clients in Europe, Asia, Australia and Latin America. Heller's common stock is listed as "HF" on the New York and Chicago Stock Exchanges. Heller can be found on the World Wide Web at http://www.hellerfinancial.com. The statements made by the Company in this news release may include certain forward-looking statements that reflect the Company's current expectations regarding its future growth, results and performance. These forward-looking statements are subject to a variety of risks and uncertainties, which could cause the Company's future growth, results and performance to differ materially from those expressed in, or implied by, these statements. Information concerning these risks and uncertainties is contained in the quarterly and annual reports that the Company files with the Securities and Exchange Commission. HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in millions) ASSETS
June 30, December 31, 2000 1999 ----------- ------------ (unaudited) (audited) Cash and cash equivalents........................ $ 778 $ 516 Receivables...................................... 15,828 14,795 Less: Allowance for losses of receivables........ 337 316 ------- ------- Net receivables............................. 15,491 14,479 Investments...................................... 1,481 1,286 Operating leases................................. 814 508 Investments in international joint ventures...... 203 219 Other assets..................................... 1,003 965 ------- ------- Total assets................................ $19,770 $17,973 ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY Senior debt Commercial paper and short-term borrowings...... $ 5,067 $ 5,202 Notes and debentures............................ 10,482 8,630 ------- ------- Total senior debt........................... 15,549 13,832 Credit balances of factoring clients............. 915 993 Other payables and accruals...................... 846 790 ------- ------- Total liabilities........................... 17,310 15,615 Minority interest................................ 11 11 Stockholders' equity Preferred stock................................ 400 400 Common stockholders' equity.................... 2,049 1,947 ------- ------- Total stockholders' equity.................. 2,449 2,347 ------- ------- Total liabilities and stockholders' equity.. $19,770 $17,973 ======= =======
HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in millions, except per share information)
Three Months Ended Six Months Ended June 30, June 30, -------------------------- --------------------------- 2000 1999 2000 1999 ----- ----- ----- ----- (unaudited) (unaudited) (unaudited) (unaudited) Interest Income................................... $ 404 $ 274 $ 765 $ 536 Interest Expense.................................. 247 156 462 305 ----- ----- ----- ----- Net interest income............................... 157 118 303 231 Fees and other income............................. 78 69 166 143 Factoring commissions............................. 19 30 36 58 Income of international joint ventures............ 8 8 18 16 ----- ----- ----- ----- Operating revenues................................ 262 225 523 448 Operating expenses................................ 116 107 233 215 Provision for losses.............................. 41 30 71 59 Income before income taxes and minority interest. 105 88 219 174 Income tax provision.............................. 35 29 73 58 Minority interest................................. 0 1 1 1 ----- ----- ----- ----- Net income........................................ $ 70 $ 58 $ 145 $ 115 ===== ===== ===== ===== Dividends on preferred stock...................... $ 7 $ 7 $ 14 $ 14 ===== ===== ===== ===== Net income applicable to common stock............ $ 63 $ 51 $ 131 $ 101 ===== ===== ===== ===== Basic net income applicable to common stock per share (1)...................................... $0.65 $0.57 $1.36 $1.12 ===== ===== ===== ===== Diluted net income applicable to common stock per share (1)...................................... $0.65 $0.57 $1.35 $1.12 ===== ===== ===== =====
HELLER FINANCIAL, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (unaudited)
SELECTED DATA AND RATIOS Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, -------- -------- 2000 1999 2000 1999 ---- ---- ---- ---- Profitability: - -------------- Net income applicable to common stock per share (1): Basic $0.65 $0.57 $1.36 $1.12 Diluted 0.65 0.57 1.35 1.12 Return on average common stockholders' equity (2) 12.6% 12.8% 13.2% 12.8% Return on AFE (3) 1.7 1.8 1.8 1.9 Net interest income as a percentage of AFE (3) 3.7 3.7 3.7 3.7 Non-interest operating revenues as a percentage of AFE (3) 2.5 3.3 2.7 3.5 Total operating revenues as a percentage of AFE (3) 6.2 7.0 6.4 7.2 Operating expenses as a percentage of AFE (3) 2.7 3.3 2.9 3.5 Operating expenses to operating revenues 44.3 47.6 44.6 48.0 Operating expenses to AMA (4) 2.5 3.0 2.6 3.1 Gross writedowns $ 28 $ 25 $ 54 $ 52 Gross recoveries $ 3 $ 2 $ 5 $ 7
June 30, December 31, June 30, 2000 1999 1999 ---- ---- ---- Credit Quality: - --------------- Ratio of earning loans delinquent 60 days or more to receivables 1.6% 1.5% 1.5% Ratio of total nonearning assets to total lending assets 1.7% 1.5% 1.7% Ratio of net writedowns to average lending assets 0.65% 0.74% 0.74% Ratio of allowance for losses of receivables to receivables 2.1% 2.1% 2.2% Ratio of allowance for losses of receivables to nonearning receivables 140% 155% 136%
Three Months Ended Six Months Ended June 30, June 30, -------- -------- 2000 1999 2000 1999 ----- ----- ----- ---- Leverage: - --------- Ratio of debt (net of short-term investments) to total stockholders' equity 6.1x 5.6x 6.1x 5.6x Ratio of commercial paper and short-term borrowings to total debt 33% 36% 33% 36% Other: (dollars in millions) - ------ Total lending assets and investments $18,351 $14,550 $18,351 $14,550 Total lending assets 15,853 12,808 15,853 12,808 Average lending assets 15,445 12,447 15,236 12,250 Total common stockholders' equity 2,049 1,618 2,049 1,618 Average common stockholders' equity 2,019 1,602 1,995 1,590 Funds employed (3) 17,436 13,258 17,436 13,258 Average funds employed (3) 17,016 12,892 16,439 12,512 Managed assets (4) 18,911 14,434 18,911 14,434 Average managed assets (4) 18,446 14,205 17,850 13,924
(1) Based on 96,584,475 basic and 96,666,429 diluted weighted average shares of common stock outstanding for the quarter ended June 30, 2000 and 96,630,871 basic and 96,719,196 diluted weighted average shares of common stock outstanding for the six months ended June 30, 2000. The diluted weighted average shares as of June 30, 2000, include the effect of 4.1 million stock options issued to management of the Company. (2) Return on average common stockholders' equity is computed as net income less preferred stock dividends paid, divided by average total common stockholders' equity. (3) Funds employed include lending assets and investments, less credit balances of factoring clients. (4) Managed assets include funds employed plus receivables previously securitized or sold and currently managed by the Company. LENDING ASSETS AND INVESTMENTS
June 30, December 31, June 30, BY BUSINESS SEGMENT 2000 1999 1999 (dollars in millions) ------- ------- ------- Domestic Commercial Finance Segment Corporate Finance $ 5,777 $ 4,937 $ 4,439 Leasing Services 4,044 3,428 3,110 Real Estate Finance 2,669 2,626 1,919 Small Business Finance 1,337 1,312 1,047 Healthcare Finance 1,299 971 - Commercial Services* - - 922 Other 469 518 569 ------- ------- ------- Total Domestic Commercial Finance Segment $15,595 $13,792 $12,006 International Factoring and Asset Based Finance Segment 2,756 3,040 2,544 ------- ------- ------- Total lending assets and investments $18,351 $16,832 $14,550 ======= ======= =======
* On November 30, 1999, we sold the assets of our Commercial Services unit.
FEES AND OTHER INCOME (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, ------------------ ---------------- 2000 1999 2000 1999 ---- ---- ---- ---- Factoring commissions $ 19 $ 30 $ 36 $ 58 Income of international joint ventures 8 8 18 16 Fees and other income: Investment and asset sale income** 59 36 123 84 Fee income and other 19 33 43 59 ----- ----- ----- ----- Total fees and other income $ 78 $ 69 $ 166 $ 143 ----- ----- ----- ----- Total non-interest income $ 105 $ 107 $ 220 $ 217 ===== ===== ===== =====
** Includes gains on securitizations, syndications and loans sales, net investment income and gains, equipment residual gains and participation income. -----END PRIVACY-ENHANCED MESSAGE-----