-----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, PYWarlx4owbGRFePjmKvpR37HbYEIijX2eBSfLy41A8QRB14E6lzkTHQXiA2Nnze ZRpobzuSfanFp8CJ79Q1eQ== 0000950131-97-000406.txt : 19970129 0000950131-97-000406.hdr.sgml : 19970129 ACCESSION NUMBER: 0000950131-97-000406 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970127 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970128 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: 97512368 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: January 27, 1997 ---------------- (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 January 27, 1997, Heller Financial, Inc. (the "Registrant") released its earnings for calendar year 1996. A copy of the release is attached. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - ------- --------------------------------- (c) Exhibits 99 Heller Financial, Inc. - Report of 1996 Net Income, dated January 27, 1997 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: January 27, 1997 ---------------- HELLER FINANCIAL, INC. By: Lauralee E. Martin ------------------ Lauralee E. Martin Title: Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Sequentially Number Numbered Pages - ------ -------------- 99 Heller Financial, Inc. - Report of 1996 Net 4 - 7 Income, dated January 27, 1997 EX-99 2 REPORT OF 1996 NET INCOME, DTD. 1-27-97 John Brooklier 312-441-6184 HELLER FINANCIAL, INC. ---------------------- REPORTS RECORD 1996 NET INCOME ------------------------------ AND CONTINUING IMPROVEMENT IN ASSET QUALITY ------------------------------------------- Chicago--(January 27, 1997)--Heller Financial, Inc. today reported record net income for full-year 1996 along with continued strong growth in its asset- based businesses and improvement in the company's overall asset quality, said Chairman and Chief Executive Officer Richard J. Almeida. Highlights of the company's 1996 full-year results compared to 1995 include: . New business volume which exceeded $4.0 billion--spread across both newer and established franchise businesses--helped drive overall asset growth. Total lending assets and investments increased by $581 million, or 6 percent, even with the significant reduction in the pre-1990 portfolio. The company made further progress toward its goal of diversifying assets and building a more balanced portfolio. During 1996, Heller's six asset-based businesses grew by more than $1 billion, or 35 percent, in lending assets and investments and now comprise the company's largest product category at 44 percent of the portfolio. As important, the company is rapidly approaching its goal of no single business representing more than 25 percent of the portfolio. . Net income for 1996 was $133 million, a 6 percent increase over the prior year, and the fourth consecutive year of record earnings. Growth in net income was mainly the result of a significantly lower provision for losses-- reflecting the company's improving credit quality--which more than offset reduced operating revenues and increased spending for developing businesses. . The reduction in operating revenues reflects the shift in the portfolio to lower-risk, lower-priced products coupled with lower net gains from the sale of investments and a decline in the level of fee accelerations. Offsetting these declines, income of international joint ventures increased 26 percent year to year and the domestic factoring business showed strong volume growth of 14 percent. . The provision for losses decreased dramatically due to the excellent credit quality of the post-1990 portfolio as well as lower writedowns and increased recoveries in the pre-1990 portfolio. Assets in the pre-1990 portfolio fell by $547 million and now make up only 10 percent of the company's total portfolio. During 1996, net writedowns on the post-1990 portfolio totaled only $41 million, or 50 basis points, of total average lending assets versus $45 million, or 56 basis points, in 1995. Recoveries totaled $55 million in 1996. The company's nonearning assets fell to 3.3 percent of total lending assets at year-end 1996 compared to 3.6 percent for the prior year. Nonearnings of $278 million at the end of 1996 represent the third consecutive year of declining nonearning asset levels. "We're pleased that the company continues to realize asset and earnings growth, particularly since both important categories reflect contributions from a broad mix of both our newer and our more established businesses," said Almeida. "Equally important is our consistent focus on improving credit quality and diversifying our portfolio, areas in which we continue to make significant progress." 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 and specialized equity investments, factoring and working capital loans, equipment financing and leasing, asset-based finance and real estate financing. 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. HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in millions)
December 31, 1996 December 31, 1995 ----------------- ----------------- Assets - ------ Cash and cash equivalents $ 296 $ 599 Receivables 8,529 8,085 Less: Allowance for losses of receivables 225 229 ------ ------ Net receivables 8,304 7,856 Investments 805 693 Investments in international joint ventures 272 233 Other assets 249 257 ------ ------ $9,926 $9,638 ====== ====== Liabilities and Stockholders' Equity - ------------------------------------ Senior debt Commercial paper and short-term borrowings $2,745 $2,223 Notes and debentures 4,761 5,145 ------ ------ Total debt 7,506 7,368 Credit balances of factoring clients 590 497 Other payables and accruals 306 343 ------ ------ Total liabilities 8,402 8,208 Minority interest in equity of Heller International Group, Inc. 57 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 1,317 1,234 ------ ------ Total stockholders' equity 1,467 1,384 ------ ------ $9,926 $9,638 ====== ======
HELLER FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in millions)
For the Year Ended ------------------ December 31, ------------ 1996 1995 ----- ----- Interest income $ 807 $ 851 Interest expense 452 464 ----- ----- Net interest income 355 387 Fees and other income 134 198 Income of international joint ventures 44 35 ----- ----- Operating revenues 533 620 Operating expenses 247 216 Provision for losses 103 223 ----- ----- Income before taxes and minority interest 183 181 Income tax provision 43 49 Minority interest in income of Heller International Group, Inc. 7 7 ----- ----- Net income $ 133 $ 125 ===== =====
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