-----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, Rl6nT2vMbC3v9zq8EK13k9bMVvaWPc88FLppxyih4TqgtpQmaMueZBkfxDHS/QBW V98RMa77TqxzD18lycTPGA== 0000950131-97-004623.txt : 19970729 0000950131-97-004623.hdr.sgml : 19970729 ACCESSION NUMBER: 0000950131-97-004623 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970724 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970728 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: 97646274 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: July 24, 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 July 24, 1997, Heller Financial, Inc. (the "Registrant") issued a press release announcing its earnings for the quarter ending June 30, 1997. 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 June 30, 1997, dated July 24, 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: July 25, 1997 ------------- HELLER FINANCIAL, INC. By: /s/ Lauralee E. Martin -------------------------------- Lauralee E. Martin Title: Executive Vice President and 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 June 30, 1997, dated July 24, 1997 3 EX-99 2 PRESS RELEASE PRESS RELEASE Heller Financial, Inc. ---------------------- Reports Significant Growth in Net Income for -------------------------------------------- 1997 Second Quarter, First Half ------------------------------- Chicago--(July 24, 1997)--Heller Financial, Inc. today reported a 26 percent and 20 percent increase in net income for the 1997 second quarter and six months ended June 30, 1997, said Richard J. Almeida, Heller's Chairman and Chief Executive Officer. This strong growth in second quarter and first half earnings was driven by significant increases in operating revenues and record new business volume. Highlights of the company's operating results include: . Net income of $44 million for the 1997 second quarter and $83 million for the six month period was $9 million and $14 million higher than the respective prior year periods. Earnings growth resulted from a 54 percent increase in operating revenues for the second quarter and a 31 percent boost for the six months. The company's operating revenues continued to benefit from solid business fundamentals in the core Heller businesses as evidenced by growth in net interest income, and fees and other income. The 194 percent increase in second quarter fees and other income reflected the real estate unit's strong participation fee income as well as a large gain from a $500 million real estate securitization completed in June. . During the quarter, the company completed the acquisition of Factofrance Heller from its joint venture partner. With Factofrance's results now accounted for on a consolidated basis, assets increased $1.6 billion, operating revenues grew $31 million and operating expenses increased $20 million. This acquisition had a modest favorable impact on Heller's net income as acquisition-related costs offset Factofrance's earnings. . New business volume for the 1997 six months totaled $2.4 billion, a 30 percent increase over the prior year period. The growth in new business was fueled by record origination levels in all lending categories. Growth of originated volume on the balance sheet was partially offset by the strong liquidity of the portfolio as the result of paydowns, loan sales, securitizations and syndications. . Operating expenses for the six months, excluding the impact of Factofrance, had a lower rate of growth versus the prior year period, mainly due to the increasing productivity in the growing asset based businesses. . The provision for losses increased for both the second quarter and six months due to provisions for asset growth and lower recoveries in comparison to the prior year periods. The ongoing portfolio continued its strong credit performance with post- 4 1990 lending assets requiring only $21 million--or 50 basis points--of net writedowns during the first six months. The company's ratio of nonearning assets to total lending assets dropped to 2.9 percent at June 30 from 3.9 percent at mid-year 1996. The company's ongoing portfolio had nonearnings of only 1.3 percent at June 30, 1997. . The company also strengthened its capital base during the quarter through the issuance of $150 million in preferred stock. This preferred stock enables the company to maintain a very conservative capital structure as Heller's debt-to-equity ratio remains at 5 to 1. "There were a number of notable highlights for Heller during this very successful second quarter," said Almeida. "Our significant earnings performance, strong new business origination and growing distribution capability, coupled with the excellent credit quality in our ongoing portfolio, are clear indications of Heller's growing strength in the marketplace. And with the new equity we raised, our overall financial position is the strongest since Heller's acquisition by Fuji Bank." 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 provides U.S.-based clients with equipment financing and leasing, factoring and working capital loans, collateral-based financing, cash flow financing, real estate financing, small business lending, and specialized 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 asset-based finance, factoring, acquisition finance, leasing, vendor finance and trade finance. 5 Heller Financial, Inc. and Subsidiaries Consolidated Condensed Balance Sheets (in millions)
June 30, 1997 December 31, 1996 -------------- ----------------- Assets (unaudited) - ------ Cash and cash equivalents $ 268 $ 296 Receivables 10,109 8,529 Less: Allowance for losses of receivables 250 225 ------- ------ Net receivables 9,859 8,304 Investments, debt securities, operating leases 881 805 Investments in international joint ventures 193 272 Other assets 407 249 ------- ------ $11,608 $9,926 ======= ====== Liabilities and Stockholders' Equity - ------------------------------------ Senior debt Commercial paper and short-term borrowings $ 3,826 $2,745 Notes and debentures 4,600 4,761 ------- ------ Total debt 8,426 7,506 Credit balances of factoring clients 1,113 590 Other payables and accruals 368 306 ------- ------ Total liabilities 9,907 8,402 Minority interest in equity of Heller International Group, Inc. 58 57 Stockholders' equity Cumulative Perpetual Senior Preferred Stock, Series A 125 125 Noncumulative Perpetual Senior Preferred Stock, Series B 150 - Cumulative Convertible Preferred Stock, Series D - 25 Common stock, additional paid-in capital and retained earnings 1,368 1,317 ------- ------ Total stockholders' equity 1,643 1,467 ------- ------ $11,608 $9,926 ======= ======
6 Heller Financial, Inc. and Subsidiaries Consolidated Condensed Statements of Income (in millions)
For the Three Months For the Six Months -------------------- ------------------ Ended June 30 Ended June 30 ------------- ------------- 1997 1996 1997 1996 ------ ------- ------ ------ (unaudited) (unaudited) Interest income $238 $198 $446 $400 Interest expense 131 111 247 223 ---- ---- ---- ---- Net interest income 107 87 199 177 Fees and other income 53 18 79 37 Factoring commissions 30 13 43 26 Income of international joint ventures 9 11 19 20 ---- ---- ---- ---- Operating revenues 199 129 340 260 Operating expenses 90 60 152 119 Provision for losses 34 25 56 49 ---- ---- ---- ---- Income before income taxes and minority interest 75 44 132 92 Income tax provision 28 9 45 21 Minority interest in income of Heller International Group, Inc. 3 - 4 2 ---- ---- ---- ---- Net income $ 44 $ 35 $ 83 $ 69 ==== ==== ==== ====
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