-----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, HIxDlEPU1OLDAB99Nj2usdqSOKrKFm6KANvRA+W4e1Aokokcmfi53AyUS/cxwrU9 qErbWshWkxRbcdWzVXTuCQ== 0000950109-96-003035.txt : 19960515 0000950109-96-003035.hdr.sgml : 19960515 ACCESSION NUMBER: 0000950109-96-003035 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALCO CAPITAL RESOURCE INC CENTRAL INDEX KEY: 0000922255 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 232493042 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20405 FILM NUMBER: 96563375 BUSINESS ADDRESS: STREET 1: 1738 BASS RD CITY: MACON STATE: GA ZIP: 31210 BUSINESS PHONE: 2152968000 MAIL ADDRESS: STREET 1: BOX 834 CITY: VALLEY FORGE STATE: PA ZIP: 19482 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-Q (Mark One)* [X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 1996 or [ ] Transition -------------- report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to ----- ---- Commission file number 0-20405 ------------------------------------------------------ IKON CAPITAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 23-2493042 - --------------------------------- ---------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1738 Bass Road, Macon, Georgia 31210 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (912) 471-2300 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) ALCO CAPITAL RESOURCE, INC. - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- * Applicable only to issuers involved in bankruptcy proceedings during the preceding five years: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No ----- ----- * Applicable only to corporate issuers: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of April 30, 1996. Common Stock, $.01 par value per share 1,000 shares Registered Debt Outstanding as of April 30, 1996 $751,500,000 The registrant, an indirect wholly owned subsidiary of Alco Standard Corporation ("Alco"), meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is, therefore, filing with the reduced disclosure format contemplated thereby. INDEX IKON CAPITAL, INC. PART I. FINANCIAL INFORMATION - ------------------------------ Item 1. Financial Statements (Unaudited) Balance Sheets--March 31, 1996 and September 30, 1995 Statements of Income--Three months ended March 31, 1996 and March 31, 1995 and Six months ended March 31, 1996 and March 31, 1995 Statements of Cash Flows--Six months ended March 31, 1996 and March 31, 1995 Notes to Financial Statements--March 31, 1996 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. OTHER INFORMATION - --------------------------- Item 6. Exhibits and Reports on Form 8-K SIGNATURES - ---------- PART I. FINANCIAL INFORMATION ----------------------------- Item 1: Financial Statements - ---------------------------- IKON CAPITAL, INC. BALANCE SHEETS (IN THOUSANDS)
March 31, September 30, 1996 1995 ------------- ------------- Assets Investments in leases: Direct financing leases $ 1,003,699 $ 824,876 Less: Unearned income (162,728) (132,428) ------------- ------------- 840,971 692,448 Funded leases, net 284,204 178,948 ------------- ------------- 1,125,175 871,396 Accounts receivable 32,263 26,647 Due from Alco 26,577 Prepaid expenses and other assets 8,480 7,648 Leased equipment-operating rentals at cost less accumulated depreciation of: 3/96 - $11,659 9/95 - $5,912 28,163 25,247 Property and equipment at cost, less accumulated depreciation of: 3/96 - $2,185 9/95 - $1,869 5,387 4,660 ------------- ------------- Total assets $ 1,199,468 $ 962,175 ============= ============= Liabilities and shareholder's equity Liabilities: Accounts payable and accrued expenses $ 13,494 $ 10,840 Accrued interest 16,885 12,549 Due to Alco 22,076 Notes payable to Banks 193,000 173,000 Medium Term Notes 741,500 602,000 Deferred income taxes 52,706 33,898 ------------- ------------- Total liabilities 1,039,661 832,287 Shareholder's equity: Common Stock - $.01 par value, 1,000 shares authorized, issued, and outstanding Contributed capital 99,415 82,415 Retained earnings 60,392 47,473 ------------- ------------- Total shareholder's equity 159,807 129,888 ------------- ------------- Total liabilities and shareholder's equity $ 1,199,468 $ 962,175 ============= =============
See notes to financial statements. IKON CAPITAL, INC. STATEMENTS OF INCOME (in thousands)
Three Months Ended Six Months Ended March 31 March 31 1996 1995 1996 1995 ---------- ---------- ---------- ---------- Revenues: Lease finance income $28,180 $17,614 $53,540 $33,797 Rental income 3,346 1,267 6,577 1,834 Interest on Alco income tax deferrals 2,122 1,500 4,011 2,796 Other income 1,721 1,195 3,089 2,135 ---------- ---------- ---------- ---------- 35,369 21,576 67,217 40,562 Expenses: Interest $13,696 8,149 27,113 15,200 General and administrative 10,487 6,599 18,796 11,908 ---------- ---------- ---------- ---------- 24,183 14,748 45,909 27,108 Gain on sale of lease receivables 277 292 589 573 ---------- ---------- ---------- ---------- Income before income taxes 11,463 7,120 21,897 14,027 Provision for income taxes 4,700 2,683 8,978 5,377 ---------- ---------- ---------- ---------- Net income $6,763 $4,437 $12,919 $8,650 ========== ========== ========== ==========
See notes to financial statements. IKON CAPITAL, INC. STATEMENTS OF CASH FLOWS (in thousands)
Six Months Ended March 31, --------------------- 1996 1995 ---------- --------- Operating activities: Net income $12,919 $8,650 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 6,532 1,849 Provision for deferred taxes 18,808 2,001 Gain on sale of lease receivables (589) (573) Changes in operating assets and liabilities: Accounts receivable (5,616) (2,593) Prepaid expenses and other assets (243) (804) Accounts payable and accrued expenses 2,654 2,109 Accrued interest 4,336 3,199 ---------- --------- Net cash provided 38,801 13,838 ---------- --------- Investing activities: Purchases of leased equipment for operating rentals, net (9,132) (14,335) Purchases of property and equipment, net of disposals (1,043) (1,481) Direct financing leases: Additions (365,156) (271,502) Cancellations 60,577 43,256 Collections 129,602 86,186 Proceeds from sale 26,454 33,586 Funded leases: Additions (163,217) (66,464) Cancellations 18,462 10,589 Collections 39,499 19,936 ---------- --------- Net cash used (263,954) (160,229) ---------- --------- Financing activities: Proceeds from bank borrowings 60,000 Payments on bank borrowings (40,000) (50,000) Proceeds from issuance of medium term notes 169,500 203,000 Payments on medium term notes (30,000) Contributed capital 17,000 7,000 ---------- --------- Net cash provided 176,500 160,000 ---------- --------- (Increase) decrease in amounts due to Alco (48,653) 13,609 Due from (to) Alco at beginning of period 26,577 (11,419) ---------- --------- Due (to) from Alco at end of period ($22,076) $2,190 ========== =========
See notes to financial statements. IKON Capital, Inc. Notes to Financial Statements March 31, 1996 Note 1: Basis of Presentation --------------------- The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the financial statements and footnotes thereto included in the Company's report on Form 10-K for the year ended September 30, 1995. Certain prior year amounts have been reclassified to conform with the current year presentation. Note 2: Medium Term Note Program ------------------------ During the six months ended March 31, 1996, IKON Capital issued an additional $169.5 million under its medium term note program. At March 31, 1996, $741.5 million of medium term notes remain outstanding with a weighted average interest rate of 6.7%, leaving $728.5 million available under this program. Note 3: Asset Securitization -------------------- Under its $125 million asset securitization agreement commenced in September 1994, IKON Capital sold $26.5 million of direct financing leases during the first half of fiscal 1996, replacing leases which had been liquidated during the period and recognized a pretax gain of $589,000. Under the terms of the sales agreement, the Company continues to service the sold lease portfolio. Item 2: Management's Discussion and Analysis of Financial Condition and --------------------------------------------------------------- Results of Operations --------------------- Pursuant to General Instruction H(2) (a) of Form 10-Q, the following analysis of the results of operations is presented in lieu of Management's Discussion and Analysis of Financial Condition and Results of Operations. Three Months Ended March 31, 1996 Compared ------------------------------------------ with the Three Months Ended March 31, 1995 ------------------------------------------ Comparative summarized results of operations for the three months ended March 31, 1996 and 1995 are set forth in the table below. This table also shows the increase in the dollar amounts of major revenue and expense items between periods, as well as the related percentage increase/decrease.
(dollars in thousands) Three Months Ended March 31 Increase (Decrease) ---------------- ------------------- 1996 1995 Amount Percent ------ ------ -------- --------- Revenues: Lease finance income $28,180 $17,614 $10,566 60.0% Rental income 3,346 1,267 2,079 164.1% Interest on Alco income tax deferrals 2,122 1,500 622 41.5% Other income 1,721 1,195 526 44.0% ------- ------- ------- 35,369 21,576 13,793 63.9% Expenses: Interest 13,696 8,149 5,547 68.1% General and administrative 10,487 6,599 3,888 58.9% ------- ------- ------- 24,183 14,748 9,435 64.0% Gain on sale of lease receivables 277 292 (15) (5.1)% ------- ------- ------- Income before taxes 11,463 7,120 4,343 61.0% Provision for income taxes 4,700 2,683 2,017 75.2% ------- ------- ------- Net income $ 6,763 $ 4,437 $ 2,326 52.4% ======= ======= =======
Revenues - -------- Total revenues increased $13.8 million or 63.9% in the second quarter of fiscal 1996 compared to the second quarter of fiscal 1995. Approximately 76.6% or $10.6 million of this increase in revenues was a result of increased lease finance income due to continued growth in the portfolio of direct financing and funded leases. During the twelve month period from March 31, 1995 to March 31, 1996, the portfolio grew at a 65.5% rate, net of lease receivables that were sold in asset securitization transactions. Effective October 1, 1994, the Company began offering a new operating lease program to the IKON dealer network, whereby office equipment placed on rental with a customer, with cancelable terms, could be funded through the Company and rented back to the IKON dealer. In prior years, this equipment was funded by the respective IKON dealer instead of the Company. At March 31, 1996, equipment with a net book value of $28.2 million was leased under this program, compared to $12.8 million at March 31, 1995, resulting in rental income of $3.3 million in the second quarter of fiscal 1996 compared to $1.3 million in the second quarter of fiscal 1995. The Company continues to charge Alco interest on the benefit that Alco receives for income tax deferrals associated with the Company's leasing transactions. By agreement with Alco, the Company earns interest income on the deferred tax balances at a rate consistent with the Company's average cost of debt capital. Under this agreement, the Company earned interest at a 6.8% rate for the second quarter of fiscal 1996, compared to 6.4% for the second quarter of fiscal 1995. At March 31, 1996, the deferred tax base upon which these payments are calculated increased to $135.6 million, up from $90.5 million at March 31, 1995. Due to the combined effect of the increased rate of interest and the increased deferred tax balances, interest on Alco income tax deferrals rose $622,000 or 41.5% when comparing the three months ended March 31, 1996 to the three months ended March 31, 1995. Other income consists primarily of late payment charges and various billing fees. The structure of these fees has remained basically unchanged from fiscal 1995. The growth in other income from fees is primarily due to the increased size of the lease portfolio upon which these fees are based. Overall, fee income from these sources grew by $526,000 or 44%, when comparing the second quarter of fiscal 1996 to the same period of fiscal 1995. Expenses - -------- Debt to fund the lease portfolio in the form of loans from major banks and the issuance of medium term notes in the public markets rose by 58.9%, to a total of $934.5 million outstanding at March 31, 1996, up from $588 million outstanding at March 31, 1995. Due to the combined effect of increased borrowing to fund the portfolio and an increase in the Company's overall weighted average interest rate on all borrowings, interest expense grew by $5.5 million or 68.1% when comparing the second quarter of fiscal 1996 to the second quarter of fiscal 1995. At March 31, 1996, the Company's debt to equity ratio, including intercompany amounts due to Alco, was 6.0 to 1. Total general and administrative expenses grew by approximately $3.9 million or 58.9%, when comparing the second quarter of fiscal 1996 to the same period of fiscal 1995. However, the general and administrative category includes depreciation expense on leased equipment which was higher in the second quarter of fiscal 1996 as compared to the second quarter of fiscal 1995, due to growth in the balance of leased equipment. Depreciation expense was $3.2 million for the second quarter of fiscal 1996 and $1.1 million for the second quarter of fiscal 1995. In addition, lease bonus subsidy payments to IKON dealers were $2.1 million for the second quarter of fiscal 1996 compared to $2.5 million for the second quarter of fiscal 1995. This reduction in lease bonus payments reflects a change in the method of calculating the bonus subsidy in fiscal 1996. Excluding the effects of the additional depreciation expense on operating leases and the reduction of dealer lease bonus payments in the second quarter of fiscal 1996, remaining general and administrative expenses grew $2.1 million or 71.4%, when comparing the second quarter of fiscal 1996 to the second quarter of fiscal 1995. This increase is a direct result of the growth of the serviced lease portfolio. Gain on Sale of Lease Receivables - --------------------------------- Under an asset securitization program entered into in September 1994, the Company sold an undivided ownership interest in $125 million of eligible direct financing lease receivables. This agreement, which expires in March 1997, was structured as a revolving securitization so that as collections reduce previously sold interests, new leases can be sold up to $125 million. During the three months ended March 31, 1996, collections reduced previously sold interests by approximately $13.3 million. The Company sold an additional $13.3 million in net eligible direct financing leases during the quarter and recognized gains of $277,000. Income Before Taxes - ------------------- Income before taxes increased by $4.3 million or 61%, when comparing the second quarters of fiscal 1996 and fiscal 1995. This increase resulted primarily from higher earnings on a larger lease portfolio base, partially offset by higher borrowing costs due to the increased debt to fund the lease portfolio and a slightly higher average cost of debt in fiscal 1996 versus fiscal 1995. Taxes on Income - --------------- The $2.0 million or 75.2% increase in income taxes in the three month period ended March 31, 1996 compared to the three month period ended March 31, 1995 is directly attributable to the higher income before taxes in the second quarter of fiscal 1996 as compared to the second quarter of fiscal 1995. The effective tax rate was 41% for the second quarter of fiscal 1996 as compared to an effective tax rate of 38% for the second quarter of fiscal 1995. Six Months Ended March 31, 1996 Compared ----------------------------------------- with the Six Months Ended March 31, 1995 ---------------------------------------- Comparative summarized results of operations for the six months ended March 31, 1996 and 1995 are set forth in the table below. This table also shows the increase in the dollar amounts of major revenue and expense items between periods, as well as the related percentage increase.
Six Months (dollars in thousands) Ended March 31 Increase -------------- -------- 1996 1995 Amount Percent -------- -------- -------- --------- Revenues: Lease finance income $53,540 $33,797 $19,743 58.4% Rental income 6,577 1,834 4,743 258.6% Interest on Alco income tax deferrals 4,011 2,796 1,215 43.5% Other income 3,089 2,135 954 44.7% ------- ------- ------- 67,217 40,562 26,655 65.7% Expenses: Interest 27,113 15,200 11,913 78.4% General and administrative 18,796 11,908 6,888 57.8% ------- ------- ------- 45,909 27,108 18,801 69.4% Gain on sale of lease receivables 589 573 16 2.8% ------- ------- ------- Income before taxes 21,897 14,027 7,870 56.1% Provision for income taxes 8,978 5,377 3,601 67.0% ------- ------- ------- Net income $12,919 $ 8,650 $ 4,269 49.4% ======= ======= =======
Revenues - -------- Total revenues increased $26.7 million or 65.7% in the first six months of fiscal 1996 compared to the first six months of fiscal 1995. Approximately 74.1% or $19.7 million of this increase in revenues was a result of increased lease finance income due to continued growth in the portfolio of direct financing and funded leases. During the twelve month period from March 31, 1995 to March 31, 1996, the portfolio grew at a 65.5% rate, net of lease receivables that were sold in asset securitization transactions. Effective October 1, 1994, the Company began offering a new operating lease program to the IKON dealer network, whereby office equipment placed on rental with a customer, with cancelable terms, could be funded through the Company and rented back to the IKON dealer. In prior years, this equipment was funded by the respective IKON dealer instead of the Company. At March 31, 1996, equipment with a net book value of $28.2 million was leased under this program, compared to $12.8 million at March 31, 1995, resulting in rental income of $6.6 million for the first half of fiscal 1996 as compared to $1.8 million for the first half of fiscal 1995. The Company continues to charge Alco interest on the benefit that Alco receives for income tax deferrals associated with the Company's leasing transactions. By agreement with Alco, the Company earns interest income on the deferred tax balances at a rate consistent with the Company's average cost of capital. Under this agreement, the Company earned interest at a 6.8% rate for the first six months of fiscal 1996, compared to 6.4% for the first six months of fiscal 1995. At March 31, 1996, the deferred tax base upon which these payments are calculated increased to $135.6 million, up from $90.5 million at March 31, 1995. Due to the combined effect of the increased rate of interest and the increased deferred tax balances, interest on Alco income tax deferrals rose $1.2 million or 43.5%, when comparing the first half of fiscal 1996 to the first half of fiscal 1995. Other income consists primarily of late payment charges and various billing fees. The structure of these fees has remained basically unchanged from fiscal 1995. The growth in other income from fees is primarily due to the increased size of the lease portfolio upon which these fees are based. Overall, fee income from these sources grew by $954,000 or 44.7%, when comparing the first half of fiscal 1996 to the same period of fiscal 1995. Expenses - -------- Debt to fund the lease portfolio in the form of loans from major banks and the issuance of medium term notes in the public markets rose by 58.9%, to a total of $934.5 million outstanding at March 31, 1996, up from $588 million outstanding at March 31, 1995. Due to the combined effect of increased borrowing to fund the portfolio and an increase in the Company's overall weighted average interest rate on all borrowings, interest expense grew by $11.9 million or 78.4%, when comparing the first six months of fiscal 1996 to the first six months of fiscal 1995. At March 31, 1996, the Company's debt to equity ratio, including intercompany amounts due to Alco, was 6.0 to 1. Total general and administrative expenses grew by approximately $6.9 million or 57.8%, when comparing the six month period ending March 31, 1996 to the six month period ending March 31, 1995. However, the general and administrative category includes depreciation expense on leased equipment which was higher in the first half of fiscal 1996 as compared to the first half of fiscal 1995, due to growth in the balance of leased equipment. Depreciation expense was $6.2 million for the first six months of fiscal 1996 and $1.6 million for the first six months of fiscal 1995. Additionally, lease bonus subsidy payments to IKON dealers were $2.6 million during the first six months of fiscal 1996 compared to $4.2 million during the first six months of fiscal 1995. This reduction was due to the suspension of the program during the first two months of fiscal 1996. This program, which was reinstated in December 1995, is expected to continue for the remainder of fiscal 1996 at levels consistent with fiscal 1995. Excluding the effects of the additional depreciation expense on operating leases and the reduction of dealer lease bonus payments, the remaining general and administrative expenses grew $3.8 million or 61.6%, when comparing the first half of fiscal 1996 to the same period of fiscal 1995. This increase is a direct result of growth of the serviced lease portfolio. Gain of Sale of Lease Receivables - --------------------------------- Under an asset securitization program entered into in September 1994, the Company sold an undivided ownership interest in $125 million of eligible direct financing lease receivables. This agreement, which expires in September 1996 and can be renewed, was structured as a revolving securitization so that as collections reduce previously sold interests, new leases can be sold up to $125 million. During the first six months of fiscal 1996, collections reduced previously sold interest by approximately $26.5 million. The Company sold an additional $26.5 million in net eligible direct financing leases during the first half of fiscal 1996 and recognized gains of $589,000. Income Before Taxes - ------------------- Income before taxes increased $7.9 million or 56.1%, when comparing the first six months of fiscal 1996 and fiscal 1995. This increase resulted primarily from higher earnings on a larger lease portfolio base, partially offset by higher borrowing costs due to the increased debt to fund the lease portfolio and a slightly higher average cost of debt in fiscal 1996 versus fiscal 1995. Taxes on Income - --------------- The $3.6 million or 67% increase in income taxes in the first half of fiscal 1996 as compared to the first half of fiscal 1995 is directly attributable to the higher income before taxes in fiscal 1996 as compared to fiscal 1995. The effective tax rate was 41% for the first half of fiscal 1996 as compared to an effective tax rate of 38% for the first half of fiscal 1995. Other - ----- On April 17, 1996, Alco announced that its Board of Directors has approved the structuring of its businesses, IKON Office Solutions and Unisource, under separate ownership in order to maximize the future growth potential of both businesses. Alco is actively considering a variety of alternatives for separating the two businesses. Alco plans to reach a decision as to the method of separation by the end of June, with an estimated completion date of not later than December 31, 1996. PART II. OTHER INFORMATION --------------------------- Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) The following Exhibits are furnished pursuant to Item 601 of Regulation S-K: Exhibit No. (10.20) First Amendment dated as of September 15, 1995, and Second Amendment dated as of March 15, 1996 to Receivables Transfer Agreement among IKON Capital, Inc., Twin Towers, Inc. & Deutsche Bank AG, New York Branch, filed as Exhibit 10.20 to Alco Standard Corporation's Form 10-Q for the quarter dated March 31, 1996 is incorporated herein by reference. Exhibit No. (27) Financial Data Schedule (b) Reports on Form 8-K On March 8, 1996, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the Form, the announcement made March 4, 1996 of the name change of the registrant from Alco Capital Resource, Inc. to IKON Capital, Inc. On April 22, 1996, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the Form, the announcement made by Alco, to structure Alco's two businesses, IKON Office Solutions, Inc. and Unisource Worldwide, Inc., under separate ownership. 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. This report has also been signed by the undersigned in his capacity as the chief accounting officer of the Registrant. IKON CAPITAL, INC. Date May 14, 1996 /s/Robert M. Kearns II ---------------- ---------------------- Robert M. Kearns II Vice President (Chief Accounting Officer) Index to Exhibits ----------------- Exhibit Number - -------------- (27) Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF IKON CAPITAL, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS SEP-30-1996 MAR-31-1996 0 0 1,157,438,000 0 0 0 47,394,000 13,844,000 1,199,468,000 0 934,500,000 0 0 0 159,807,000 1,199,468,000 0 67,217,000 0 0 18,796,000 0 27,113,000 21,897,000 8,978,000 12,919,000 0 0 0 12,919,000 0 0 Includes net investments in leases of $1,125,175,000 and other accounts receivable. Includes leased equipment of: cost - $39,822,000; accumulated depreciation - $11,659,000 Common stock, $.01 par value, 1,000 shares outstanding. Since total is less than $1,000, zero is reported Not required as the registrant is a wholly-owned subsidiary.
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