-----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, MkoL0Xy4Opk6hfqGEbPpIGp4TiWrwuWGTtwT4YGLKahJBmSte1vl8MpSvS57LACU putiYh34xmbfKsi+PS3NaQ== 0000950147-01-500669.txt : 20010409 0000950147-01-500669.hdr.sgml : 20010409 ACCESSION NUMBER: 0000950147-01-500669 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010402 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010402 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FINOVA CAPITAL CORP CENTRAL INDEX KEY: 0000043960 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 941278569 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07543 FILM NUMBER: 1591724 BUSINESS ADDRESS: STREET 1: 4800 N. SCOTTSDALE RD. STREET 2: PO BOX 2209 CITY: SCOTTSDALE STATE: AZ ZIP: 85251-7623 BUSINESS PHONE: 4806364800 MAIL ADDRESS: STREET 1: 4800 N. SCOTTSDALE RD. STREET 2: P.O. BOX 2209 CITY: SCOTTSDALE STATE: AZ ZIP: 85251-7623 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND FINANCIAL CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND LEASING & FINANCIAL CORP DATE OF NAME CHANGE: 19870330 8-K 1 e-6605.txt CURRENT REPORT DATED 4/2/01 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 April 2, 2001 (Date of earliest event reported) FINOVA Capital Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 1-7543 94-1278569 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 4800 North Scottsdale Road, Scottsdale, Arizona 85251-7623 (Address of Principal Executive Offices) (Zip Code) (480) 636-4800 Registrant's telephone number, including area code None (Former Name or Former Address, if Changed Since Last Report) ITEM 5. OTHER EVENTS. On April 2, 2001, FINOVA Capital Corporation ("FINOVA") announced unaudited financial results for the fourth quarter and year ended December 31, 2000 and related information. In that announcement, FINOVA also advised that it has filed for a 15-day extension of the date by which it must file its Annual Report on Form 10-K, which is expected to be filed on or before April 16, 2001. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit 99 contains a copy of FINOVA's press release announcing financial results for the fourth quarter and year ended December 31, 2000 (unaudited) and related information, and the filing by FINOVA for a 15-day extension of the date by which it must file its Annual Report on Form 10-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, The FINOVA Group Inc. has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. The FINOVA Group Inc. Dated: April 2, 2001 By: /s/ Richard Lieberman ----------------------------------- Richard Lieberman Vice President-Associate General Counsel and Acting Secretary EXHIBIT INDEX Exhibit Number Description - ------ ----------- 99 Press Release of FINOVA Capital Corporation, dated April 2, 2001. EX-99 2 ex-99.txt PRESS RELEASE DATED 4/2/01 Exhibit 99 [LETTERHEAD OF FINOVA] CONTACT: Stuart Tashlik 480/ 636-5355 FINOVA CAPITAL CORPORATION ANNOUNCES NET LOSS FOR 2000 (SUBJECT TO FINAL AUDIT) SCOTTSDALE, ARIZ., APR. 2, 2001 - FINOVA Capital Corporation ("FINOVA Capital"), the principal operating subsidiary of The FINOVA Group Inc. ("FINOVA") today announced a net loss of $936.0 million for the year ended Dec. 31, 2000, compared to net income of $219.0 million in 1999. The results included a net loss from continuing operations of $542.9 million in 2000 compared to net income of $222.0 million in 1999, and a net loss from discontinued operations in 2000 of $393.1 million compared to a net loss of $3.0 million in 1999. For the quarter ended Dec. 31, 2000, FINOVA Capital announced a net loss of $718.2 million compared to net income of $57.6 million in the fourth quarter of 1999. The net loss for the fourth quarter of 2000 from continuing operations was $578.0 million compared to net income of $59.6 million in the fourth quarter of 1999, and the net loss from discontinued operations for the fourth quarter of 2000 was $140.1 million compared to a net loss of $2.1 million in the fourth quarter of 1999. In 2000, FINOVA Capital experienced a significant deterioration in the credit quality of its portfolio caused in part by a softening U.S. economy and certain industry specific economic weaknesses affecting many of its customers in those industries. Additionally, with the loss of its investment grade credit ratings and limited access to capital, FINOVA Capital's cost of funds increased significantly during the course of the year. The impact of these events and current economic conditions resulted in increased levels of problem accounts and higher cost of funds (resulting in lower interest margins), higher reserve requirements, higher write-offs, losses on investments and disposal of assets, impairment of intangible assets, reduced tax benefits and the decision to exit certain businesses. OTHER MATTERS On Feb. 26, 2001, FINOVA and FINOVA Capital entered into a commitment with Berkshire Hathaway Inc., Leucadia National Corporation and Berkadia, LLC, an entity jointly owned by Berkshire Hathaway and Leucadia pursuant to which Berkadia would lend $6 billion on a senior secured basis to FINOVA Capital, to facilitate a Chapter 11 restructuring of its outstanding debt. On Mar. 7, 2001, FINOVA, FINOVA Capital and seven of their subsidiaries filed for protection under Chapter 11 of the United States Bankruptcy Code. On the first day of these proceedings, the bankruptcy court granted various orders authorizing FINOVA Capital to continue operating in the ordinary course of business, including funding commitments to its customers. As of the filing date, FINOVA Capital had over $1 billion of cash on hand. Due to delays caused by the bankruptcy process and other events, FINOVA Capital has filed for an automatic 15-day extension to file its annual report on Form 10-K with the Securities and Exchange Commission. FINOVA Capital expects to file the 10-K on or before Apr. 16, 2001. FINOVA Capital Corporation is a financial services company focused on providing a broad range of capital solutions primarily to midsize business. FINOVA Capital is headquartered in Scottsdale, Ariz. with business offices throughout the U.S. and in London, U.K., and Toronto, Canada. For more information, visit the company's website at www.finova.com. This news release contains forward-looking statements such as estimates of gains or losses, as well as other predictions or forecasts. FINOVA assumes no obligation to update those statements to reflect actual results, changes in assumptions or other factors. The forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those projected. Those factors include FINOVA's ability to address its financing requirements in light of its existing debt obligations and market conditions; pending and potential litigation related to charges to earnings; the results of efforts to implement business strategy, including the ability to successfully conclude its reorganization proceedings and the pending transaction with Berkadia, LLC; the ability to attract and retain key personnel and customers; conditions that adversely impact FINOVA's borrowers and their ability to meet their obligations to FINOVA; actual results in connection with continuing or discontinued operations and the disposition of assets; the adequacy of FINOVA's loan loss reserves and other risks detailed in FINOVA Capital's SEC reports, including page 15 of FINOVA Capital's 10-K for 1999. ## FINOVA Capital Corporation And Consolidated Subsidiaries Selected Financial Data (Subject to Final Audit) (Dollars in Thousands)
Quarter Ended Twelve Months Ended Dec. 31, Dec. 31, ---------------------- ---------------------- 2000 1999 2000 1999 --------- --------- --------- --------- OPERATIONS: Interest margins earned $ 81,936 $ 130,154 $ 453,565 $ 473,187 Provision for credit losses (501,653) (10,207) (643,000) (22,390) (Losses) gains on investments and disposal of assets (113,040) 22,009 (168,589) 67,886 Operating expenses (277,184) (47,474) (399,412) (168,697) (Loss) income from continuing operations (578,011) 59,621 (542,927) 222,023 Net (loss) income (718,156) 57,564 (936,035) 219,096
As of Dec. 31, ----------------------------- 2000 1999 ----------- ----------- FINANCIAL POSITION: Managed assets $10,537,875 $10,443,136 Nonaccruing assets 921,351 174,993 Reserve for credit losses 578,750 178,266 Net assets of discontinued operations 1,162,223 2,702,236 Total assets 12,023,884 13,879,109 Total debt 10,997,687 11,407,767 Shareowner's equity 743,763 1,748,201 -----END PRIVACY-ENHANCED MESSAGE-----