-----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, UoW7EN4D7XoflU5G3EE+3eSsPTPZeddZweyJywqydwwCE6rciOde058cb8oi7LMj OKxiopP/n1nsgAfCz6cO0w== 0000950159-97-000197.txt : 19970813 0000950159-97-000197.hdr.sgml : 19970813 ACCESSION NUMBER: 0000950159-97-000197 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970812 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: 97656779 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 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 June 30, 1997 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) NONE (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 July 31, 1997. Common Stock, $.01 par value per share 1,000 shares Registered Debt Outstanding as of July 31, 1997 $1,481,250,000 The registrant, an indirect wholly owned subsidiary of IKON Office Solutions, Inc. ("IKON"), 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--June 30, 1997 and September 30, 1996 Statements of Income--Three months ended June 30, 1997 and June 30, 1996 and Nine months ended June 30, 1997 and June 30, 1996 Statements of Cash Flows--Nine months ended June 30, 1997 and June 30, 1996 Notes to Financial Statements--June 30, 1997 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 (unaudited) IKON CAPITAL, INC. BALANCE SHEETS (in thousands, except share and per share amounts)
June 30, September 30, 1997 1996 Assets Investment in leases: Direct financing leases $1,529,879 $1,140,851 Less: Unearned income (268,000) (203,459) ----------- ----------- 1,261,879 937,392 Funded leases, net 443,374 313,250 ----------- ----------- 1,705,253 1,250,642 Cash 349 Accounts receivable 52,098 48,334 Due from IKON 38,134 Prepaid expenses and other assets 13,389 15,582 Leased equipment-operating rentals at cost less accumulated depreciation of: 6/97 - $29,751 9/96 - $ 17,624 43,028 31,341 Property and equipment at cost, less accumulated depreciation of: 6/97 - $3,220 9/96 - $ 2,536 11,210 6,889 =========== =========== Total assets $1,863,461 $1,352,788 =========== =========== Liabilities and shareholder's equity Liabilities: Accounts payable and accrued expenses $37,464 $42,538 Accrued interest 5,258 20,870 Due to IKON 24,330 Notes payable to banks 25,000 58,000 Medium term notes 1,476,250 969,900 Deferred income taxes 65,924 45,750 ----------- ----------- Total liabilities 1,609,896 1,161,388 Shareholder's equity: Common Stock - $.01 par value, 1,000 shares authorized, issued, and outstanding Contributed capital 144,415 112,415 Retained earnings 109,150 78,985 ----------- ----------- Total shareholder's equity 253,565 191,400 =========== =========== Total liabilities and shareholder's equity $1,863,461 $1,352,788 =========== ===========
See notes to financial statements IKON CAPITAL, INC. STATEMENTS OF INCOME (in thousands)
Three Months Ended Nine Months Ended June 30 June 30 1997 1996 1997 1996 Revenues: Lease finance income $44,494 $32,025 $122,051 $85,565 Rental income 6,545 3,733 16,473 10,310 Interest on IKON tax deferrals 3,148 2,273 8,772 6,284 Other income 2,090 1,584 5,921 4,673 ------ ------ ------- ------- 56,277 39,615 153,217 106,832 Expenses: Interest 22,075 15,564 59,303 42,677 General and administrative 16,634 10,835 44,706 29,631 ------ ------ ------- ------- 38,709 26,399 104,009 72,308 Gain on sale of investment in leases 642 329 1,919 918 ------ ------ ------- ------- Income before income taxes 18,210 13,545 51,127 35,442 Provision for income taxes 7,466 5,553 20,962 14,531 ------ ------ ------- ------- Net income $10,744 $7,992 $30,165 $20,911 ====== ====== ======= =======
See notes to financial statements IKON CAPITAL, INC. STATEMENTS OF CASH FLOWS (in thousands)
Nine Months Ended June 30 1997 1996 Operating activities: Net income $30,165 $20,911 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 13,743 10,044 Provision for deferred taxes 20,174 27,014 Gain on sale of investment in leases (1,919) (918) Changes in operating assets and liabilities: Accounts receivable (3,764) (11,477) Prepaid expenses and other assets 4,112 (3,904) Accounts payable and accrued expenses (5,074) (573) Accrued interest (15,612) (7,754) --------- --------- Net cash provided 41,825 33,343 --------- --------- Investing activities: Purchases of leased equipment, net (24,746) (14,076) Purchases of property and equipment, net (5,005) (1,420) Direct financing leases: Additions (884,826) (625,591) Cancellations 139,510 104,835 Collections 343,578 224,383 Proceeds from sale 77,251 39,571 Funded leases: Additions (314,058) (197,577) Cancellations 49,518 24,407 Collections 134,416 52,241 --------- --------- Net cash used (484,362) (393,227) --------- --------- Financing activities: Proceeds from bank borrowings 60,000 Payments on bank borrowings (33,000) (150,000) Proceeds from issuance of medium term notes 632,350 397,900 Payments on medium term notes (126,000) (30,000) Capital contributed by IKON 32,000 30,000 --------- --------- Net cash provided 505,350 307,900 --------- --------- Decrease (increase) in amounts due to IKON 62,813 (51,984) Due (to) from IKON at beginning of year (24,330) 26,577 ========= ========= Cash and due from (to) IKON at end of period $38,483 ($25,407) ========= =========
See notes to financial statements. IKON Capital, Inc. Notes to Financial Statements June 30, 1997 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, 1996. Note 2: Medium Term Note Program During the nine months ended June 30, 1997, IKON Capital issued $632.4 million under its medium term note program. In May 1997, the Company filed a shelf registration to increase the total amount of the program from $1.5 billion to $3.5 billion. At June 30, 1997, $1,476.3 million of medium term notes were outstanding with a weighted average interest rate of 6.7%. The remaining amount available under this registration statement is $1,867.8 million. Note 3: Asset Securitization In September 1996, IKON Capital entered into a new agreement to sell, under an asset securitization program, an undivided ownership interest in $150 million of eligible direct financing lease receivables. This is in addition to an existing agreement for $125 million entered into in September 1994. Under these agreements, the Company sold $77.3 million in direct financing leases during the first nine months of fiscal 1997, replacing leases which had been liquidated during the period and recognized a pretax gain of approximately $1.9 million. Under the terms of the sales agreements, the Company will continue to service the 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 June 30, 1997 Compared with the Three Months Ended June 30, 1996 Comparative summarized results of operations for the three months ended June 30, 1997 and 1996 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.
Three Months (dollars in thousands) Ended June 30 Increase 1997 1996 Amount Percent Revenues: Lease finance income $44,494 $32,025 $ 12,469 38.9% Rental income 6,545 3,733 2,812 75.3% Interest on IKON tax deferrals 3,148 2,273 875 38.5% Other income 2,090 1,584 506 31.9% ---------- ---------- ---------- 56,277 39,615 16,662 42.1% Expenses: Interest 22,075 15,564 6,511 41.8% General and administrative 16,634 10,835 5,799 53.5% ---------- ---------- ---------- 38,709 26,399 12,310 46.6% Gain on sale of investment in leases 642 329 313 95.1% ---------- ---------- ---------- Income before income taxes 18,210 13,545 4,665 34.4% Provision for income taxes 7,466 5,553 1,913 34.4% ---------- ---------- ---------- Net income $ 10,744 $ 7,992 $ 2,752 34.4% ========== ========== ==========
Revenues Total revenues increased $16.7 million or 42.1% in the third quarter of fiscal 1997 compared to the third quarter of fiscal 1996. Approximately 74.8% or $12.5 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. The lease portfolio, net of lease receivables that were sold in asset securitization transactions, increased 36.5% from June 30, 1996 to June 30, 1997. Office equipment placed on rental by the IKON dealers to customers, with cancelable terms, may be purchased by the Company. During the third quarters of fiscal 1997 and 1996, IKON Capital purchased operating lease equipment of $8.3 million and $5.0 million, respectively. Operating leases contributed $6.5 million in rental income during the third quarter of fiscal 1997, compared to $3.7 million in the third quarter of fiscal 1996. The Company earns interest income on the deferred tax liabilities of the IKON dealers associated with leases funded through the Company at a rate consistent with the Company's weighted average outside borrowing rate of interest. The Company's average rate was 6.7% for both the third quarter of fiscal 1997 and fiscal 1996. The deferred tax base upon which these payments are calculated increased 41.8% to $201.4 million at June 30, 1997 from $142.0 million at June 30, 1996. As a result of the increased deferred tax liabilities, interest income on deferred taxes rose $875,000 or 38.5% when comparing the three months ended June 30, 1997 to the three months ended June 30, 1996. Other income consists primarily of late payment charges and various billing fees. The structure of these fees has remained basically unchanged from fiscal 1996. 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 $506,000 or 31.9%, when comparing the third quarter of fiscal 1997 to the same period of fiscal 1996. Expenses Debt to fund the lease portfolio in the form of loans from banks and the issuance of medium term notes in the public market increased by 42.6%, to $1,501.3 million outstanding at June 30, 1997. The Company paid a weighted average interest rate on all borrowings for the third quarters of fiscal 1997 and fiscal 1996 of 6.7%. As a result of the increased borrowings, interest expense grew by $6.5 million or 41.8%, when comparing the third quarter of fiscal 1997 to fiscal 1996. At June 30, 1997, the Company's debt to equity ratio, including intercompany amounts due from IKON was 5.8 to 1. Total general and administrative expenses for the quarter ended June 30, 1997 increased by $5.8 million or 53.5%, over the quarter ended June 30, 1996. The general and administrative expense category in the third quarter of fiscal 1997 includes depreciation expense on leased equipment totaling $5.2 million, compared to $3.3 million for the third quarter of fiscal 1996. In addition, the general and administrative expense category includes lease bonus subsidy payments to either IKON or directly to the IKON dealers, based on the level of dealer participation in the Company's leasing programs or for the funding of targeted new lease volume. During the third quarter of fiscal 1997, lease bonus subsidy payments totaled $2.1 million as compared to $2.0 million during the third quarter of fiscal 1996. Excluding the effects of increased depreciation expense on operating leases and lease bonus subsidy payments, remaining general and administrative expenses grew by $3.8 million or 35.2% compared to general and administrative expenses in the third quarter of fiscal 1996. This increase is attributable to the growth in the lease portfolio. Gain on Sale of Investment in Leases In September 1996, the Company entered into an asset securitization transaction whereby the Company sold an undivided ownership interest in $150 million in eligible direct financing lease receivables. This agreement was structured as a revolving securitization so that as collections reduce previously sold interests, additional leases can be sold up to $150 million. 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 was also structured as a revolving securitization. Under this program, additional leases can be sold up to $125 million as collections reduce previously sold lease receivables. During the three months ended June 30, 1997, collections reduced previously sold interests under these two agreements by approximately $25.8 million. The Company sold an additional $25.8 million in net eligible direct financing leases during the third quarter of fiscal 1997 and recognized pretax gains of $642,000. Income Before Income Taxes Income before income taxes for the third quarter of fiscal 1997 increased by $4.7 million or 34.4% over the third quarter of fiscal 1996. This increase in income before income taxes was essentially the effect of higher earnings on a larger lease portfolio base net of increased general and administrative expenses, partially offset by higher borrowing costs due to the increased debt to fund the lease portfolio. Provision for Income Taxes Income taxes for the third quarter of fiscal 1997 increased by $1.9 million or 34.4% over the third quarter of fiscal 1996. This increase in income taxes is directly attributable to the increase in income before taxes in the third quarter of fiscal 1997 as compared to the third quarter of fiscal 1996. The effective tax rate was 41% for both the third quarter of fiscal 1997 and 1996. Nine Months Ended June 30, 1997 Compared with the Nine Months Ended June 30, 1996 Comparative summarized results of operations for the nine months ended June 30, 1997 and 1996 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.
Nine Months (dollars in thousands) Ended June 30 Increase 1997 1996 Amount Percent Revenues: Lease finance income $122,051 $85,565 $ 36,486 42.6% Rental income 16,473 10,310 6,163 59.8% Interest on IKON tax deferrals 8,772 6,284 2,488 39.6% Other income 5,921 4,673 1,248 26.7% ------- ------- ------- 153,217 106,832 46,385 43.4% Expenses: Interest 59,303 42,677 16,626 39.0% General and administrative 44,706 29,631 15,075 50.9% ------- ------- ------- 104,009 72,308 31,701 43.8% Gain on sale of investment in leases 1,919 918 1,001 109.0% ------- ------- ------- Income before income taxes 51,127 35,442 15,685 44.3% Provision for income taxes 20,962 14,531 6,431 44.3% ------- ------- ------- Net income $30,165 $20,911 $ 9,254 44.3% ======= ======= =======
Revenues Total revenues increased $46.4 million or 43.4% in the first nine months of fiscal 1997 compared to the first nine months of fiscal 1996. Approximately 78.7% or $36.5 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. The lease portfolio, net of lease receivables that were sold in asset securitization transactions, increased 36.5% from June 30, 1996 to June 30, 1997. Office equipment placed on rental by the IKON dealers to customers, with cancelable terms, may be purchased by the Company. During the first nine months of fiscal 1997 and 1996, IKON Capital purchased operating lease equipment of $24.7 million and $14.1 million, respectively. Operating leases contributed $16.5 million in rental income during the first nine months of fiscal 1997, compared to $10.3 million in the first nine months of fiscal 1996. The Company earns interest income on the deferred tax liabilities of the IKON dealers associated with leases funded through the Company at a rate consistent with the Company's weighted average outside borrowing rate of interest. The Company's average rate was 6.7% for the both the first nine months of fiscal 1997 and fiscal 1996. The deferred tax base upon which these payments are calculated increased 41.8% to $201.4 million at June 30, 1997 from $142.0 million at June 30, 1996. As a result of the increased deferred tax liabilities, interest income on deferred taxes rose $2.5 million or 39.6% when comparing the nine months ended June 30, 1997 to the nine months ended June 30, 1996. Other income consists primarily of late payment charges and various billing fees. The structure of these fees has remained basically unchanged from fiscal 1996. 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 $1.2 million or 26.7%, when comparing the first nine months of fiscal 1997 to the same period of fiscal 1996. Expenses Debt to fund the lease portfolio in the form of loans from banks and the issuance of medium term notes in the public market increased by 42.6%, to $1,501.3 million outstanding at June 30, 1997. The Company paid a weighted average interest rate on all borrowings for the first nine months of both fiscal 1997 and fiscal 1996 of 6.7%. As a result of the increased borrowings, interest expense grew by $16.6 million or 39.0%, when comparing the first nine months of fiscal 1997 to the first nine months of fiscal 1996. At June 30, 1997, the Company's debt to equity ratio, including intercompany amounts due from IKON, was 5.8 to 1. Total general and administrative expenses for the nine months ended June 30, 1997 increased by $15.1 million or 50.9%, over the nine months ended June 30, 1996. The general and administrative expense category in the first nine months of fiscal 1997 includes depreciation expense on leased equipment totaling $13.1 million, compared to $9.6 million for the first nine months of fiscal 1996. In addition, the general and administrative expense category includes lease bonus subsidy payments to either IKON or directly to the IKON dealers, based on the level of dealer participation in the Company's leasing programs or for the funding of targeted new lease volume. During the first nine months of fiscal 1997, lease bonus subsidy payments totaled $7.7 million as compared to $4.5 million during the first nine months of fiscal 1996. Excluding the effects of increased depreciation expense on operating leases and lease bonus subsidy payments, remaining general and administrative expenses grew by $8.4 million or 28.4% compared to general and administrative expense for the first nine months of fiscal 1996. This increase is attributable to the growth in the lease portfolio. Gain on Sale of Investment in Leases In September 1996, the Company entered into an asset securitization transaction whereby the Company sold an undivided ownership interest in $150 million in eligible direct financing lease receivables. This agreement was structured as a revolving securitization so that as collections reduce previously sold interests, additional leases can be sold up to $150 million. 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 was also structured as a revolving securitization. Under this program, additional leases can be sold up to $125 million as collections reduce previously sold lease receivables. During the nine months ended June 30, 1997, collections reduced previously sold interests under these two agreements by approximately $77.3 million. The Company sold an additional $77.3 million in net eligible direct financing leases during the first nine months of fiscal 1997 and recognized pretax gains of approximately $1.9 million. Income Before Income Taxes Income before income taxes for the first nine months of fiscal 1997 increased by $15.7 million or 44.3% over the first nine months of fiscal 1996. This increase in income before income taxes was essentially the effect of higher earnings on a larger lease portfolio base net of increased general and administrative expenses, partially offset by higher borrowing costs due to the increased debt to fund the lease portfolio. Provision for Income Taxes Income taxes for the first nine months of fiscal 1997 increased by $6.4 million or 44.3% over the first nine months of fiscal 1996. This increase in income taxes is directly attributable to the increase in income before taxes in the first nine months of fiscal 1997 compared to the first nine months of fiscal 1996. The effective tax rate was 41% for both the first nine months of fiscal 1997 and 1996. FORWARD-LOOKING INFORMATION This document contains disclosures which are forward-looking statements relating to the Company or its parent, IKON, within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the 1934 Act. Such forward-looking statements address, among other things, strategic initiatives (including plans for enhancing the Company's or IKON's business through new acquisitions, information technology systems, sales strategies, market growth plans, margin enhancement initiatives, capital expenditure requirements and financing sources). Such forward-looking information is based upon management's current plans or expectations and is subject to a number of uncertainties and risks that could significantly affect the Company's and/or IKON's current plans, anticipated actions and future financial condition and results. These uncertainties and risks include, but are not limited to, those relating to IKON's successful management of an aggressive program to acquire and integrate new companies, including companies with technical services and products that are relatively new to IKON, and also including companies outside the United States, which present additional risks relating to international operations; risks and uncertainties (applicable to both the Company and IKON) relating to conducting operations in a competitive environment; delays, difficulties, technological changes and employment issues (applicable to both the Company and IKON) associated in a large-scale transformation project; debt service requirements (applicable to both the Company and IKON) including sensitivity to fluctuation in interest rates; and general economic conditions. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of the Company or IKON. 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. (27) Financial Data Schedule (b) Reports on Form 8-K On April 21, 1997, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the form, information contained in a press release issued by its parent, IKON Office Solutions, Inc. ("IKON") announcing i) earnings for the fiscal quarter ended March 31, 1997; ii) certain management changes, and iii) its intention to repurchase from time to time as much as 5 percent of outstanding shares in open market transactions. On April 24, 1997, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the form, information contained in a press release issued by the Registrant's parent, IKON Office Solutions, Inc. ("IKON"), which stated that IKON was unaware of any reason its stock, which recently had traded down sharply, should be under pressure, and stated that IKON knew of no material developments concerning its business or financial statements which had not been publicly disclosed. On June 27, 1997, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the form, information contained in a press release issued by its parent, IKON Office Solutions, Inc. ("IKON"), which indicated that IKON's third and fourth quarter earnings would be lower than expected. On July 17, 1997, the registrant filed a Current Report on Form 8-K to file, under Item 5 of the form, information contained in a press release issued by its parent, IKON Office Solutions, Inc. ("IKON") concerning IKON's earnings for the fiscal quarter ended June 30, 1997. 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 August 12, 1997 /s/ Harry G. Kozee Harry G. Kozee Vice President - Finance (Chief Accounting Officer) Index to Exhibits Exhibit Number (27) Financial Data Schedule EX-27 2
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. 0000922255 IKON CAPITAL INC 9-MOS SEP-30-1997 JUN-30-1997 349,000 0 1,757,351,000 0 0 0 87,209,000 32,971,000 1,863,461,000 0 1,501,250,000 0 0 0 253,565,000 1,863,461,000 0 153,217,000 0 0 44,706,000 0 59,303,000 51,127,000 20,962,000 30,165,000 0 0 0 30,165,000 0 0 Includes net investments in leases of $1,705,253,000 and other accounts receivable. Includes leased equipment of cost - $72,779,000; accumulated depreciation - $29,751,000. 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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