-----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, Sxm9JkvYJtmaDczq2SacGpUXkv83iB1DO9jTDV1qOOWVefVSM/skNzNTqmWtXvW5 zmKhVW9k6HhCjSngDYbppg== 0000950131-96-005203.txt : 19961024 0000950131-96-005203.hdr.sgml : 19961024 ACCESSION NUMBER: 0000950131-96-005203 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961022 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961023 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELLER FINANCIAL INC CENTRAL INDEX KEY: 0000046738 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 361208070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06157 FILM NUMBER: 96646620 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 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: October 22, 1996 ---------------- (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 October 22, 1996, Heller Financial, Inc. (the "Registrant") issued a press release announcing its earnings for the quarter ending September 30, 1996. A copy of the press release is attached. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - ------- --------------------------------- (c) Exhibits 99 Heller Financial, Inc. - Report of Net Income for the quarter ending September 30, 1996, dated October 22, 1996 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: October 22, 1996 ---------------- HELLER FINANCIAL, INC. By: /s/ Lauralee E. Martin ---------------------------- Lauralee E. Martin Title: Chief Financial Officer 2 EXHIBIT INDEX Exhibit Sequentially Number Numbered Pages - ------ -------------- 99 Heller Financial, Inc. - Report of Net Income 4 - 7 for the quarter ending September 30, 1996, dated October 22, 1996 3 EX-99 2 EXHIBIT 99 Heller Financial, Inc. Reports Growth in ---------------------------------------- Net Income for 1996 Nine Month Period ------------------------------------- and Improvement in Nonearning Assets ------------------------------------ Chicago - - (October 22, 1996) -- Heller Financial, Inc. reported growth in net income for the 1996 nine month period ended September 30, 1996, as well as improvement in nonearning assets, Richard J. Almeida, Chairman and Chief Executive Officer, said today. Net income for the 1996 nine months was $104 million, a five percent increase over the comparable 1995 period. Third quarter 1996 net income of $35 million was unchanged from the prior year period. For both periods, net income benefited from sharply reduced credit costs, which were partially offset by a decline in operating revenues and spending for developing business. Highlights for the 1996 nine months and third quarter include: . Total lending assets and investments increased by $270 million, or 3 percent for the nine months. The post-1990 portfolio grew by 9 percent during the nine month period, led by a 29 percent increase in lending assets and investments in the company's largest product category - - asset based finance. Funds growth was offset by a $404 million, or 26 percent decrease, in the pre-1990 portfolio. . Operating revenues were lower for both 1996 periods largely as a result of the strategic shift in the company's portfolio mix to lower risk, lower return products and the reduction in assets in the higher yield pre-1990 portfolio. Consistent with this shift, net spread income and investment gains decreased while other sources of income such as factoring showed growth. Similarly, income of international joint ventures grew 19 percent and 22 percent for the nine months and third quarter, respectively, primarily due to strong contributions from European joint ventures. . Operating expenses increased 9 percent in the third quarter due to continued investment in the growing asset-based businesses. . The provision for losses was lower in both periods as a result of the company's on-going strong credit performance of post-1990 lending assets, coupled with a decline in writedowns and increased recoveries for the pre- 1990 portfolio. The post-1990 portfolio continued to exhibit excellent credit quality requiring net writedowns of only $19 million, or approximately 30 basis points of average lending assets on an annualized basis. 4 . Overall, the company's credit quality continued to improve. The ratio of total nonearning assets to total lending assets declined from 3.9 percent at June 30, 1996, to 3.6 percent at the end of the third quarter. As important, nonearnings in the post- 1990 portfolio totaled $101 million, or 1.2 percent of total lending assets, at the end of the third quarter. Reserves as a percentage of nonearning receivables were 79 percent. "The dynamics of a transitional year continue to play out. We have built a more balanced and diversified portfolio consisting of lower risk assets characterized by more predictable earnings," said Almeida. "We are confident that investments in our new businesses will lead to improved operating ratios and a more stable credit profile for Heller." Heller Financial, Inc. is a worldwide commercial financial services organization which is a wholly-owned subsidiary of The Fuji Bank, Limited, one of the world's largest banks. Heller Financial provides U.S.-based clients with cash flow financing, factoring and working capital loans, equipment financing and leasing, asset-based finance, real estate financing and equity investments. The company also operates through joint venture and wholly-owned companies located in 18 countries in Europe, Asia, Australia and Latin America. These companies specialize in factoring, asset-based finance, acquisition finance, leasing, vendor finance and trade finance. 5 HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in millions)
September 30, 1996 December 31, 1995 Assets ------------------ ----------------- - ------ (unaudited) Cash and cash equivalents $ 446 $ 599 Total receivables 8,314 8,085 Less: Allowance for losses of receivables 224 229 ------ ------ Net receivables 8,090 7,856 Investments 737 693 Investments in international joint ventures 244 233 Other assets 210 257 ------ ------ $9,638 $9,727 ====== ====== Liabilities and Stockholders' Equity - ------------------------------------ Senior debt Commercial paper and short-term borrowings $2,549 $2,223 Notes and debentures 4,837 5,145 ------ ------ Total debt 7,386 7,368 Credit balances of factoring clients 596 497 Other payables and accruals 241 343 ------ ------ Total liabilities 8,223 8,208 Minority interest in equity of Heller International Group, Inc. 54 46 Stockholders' equity Cumulative Perpetual Senior Preferred Stock, Series A 125 125 Cumulative Convertible Preferred Stock, Series D 25 25 Common stock, additional paid-in capital and retained earnings 1,300 1,234 ------ ------ Total stockholders' equity 1,450 1,384 ------ ------ $9,727 $9,638 ====== ======
6 HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (IN MILLIONS)
For the Three Months Ended For the Nine Months Ended -------------------------- ------------------------- September 30, September 30, ------------- ------------- 1996 1995 1996 1995 -------- -------- -------- -------- (unaudited) (unaudited) Interest income $198 $215 $598 $635 Interest expense 111 117 334 348 ---- ---- ---- ---- Net interest income 87 98 264 287 Fees and other income 26 54 89 126 Income of international joint ventures 11 9 31 26 ---- ---- ---- ---- Operating revenues 124 161 384 439 Operating expenses 58 53 177 155 Provision for losses 12 56 61 134 ---- ---- ---- ---- Income before income taxes and minority interest 54 52 146 150 Income tax provision 17 15 38 46 Minority interest in income of Heller International Group, Inc. 2 2 4 5 ---- ---- ---- ---- Net income $ 35 $ 35 $104 $ 99 ==== ==== ==== ====
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