-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, k8ufp5tfvrRktByzm36uiDOCgM3toY0Xd8vuTXYd7oZxrFe55dSP9Rt30wjBsLlh vlbLoQrIuzRiiWdzFySF1g== 0000950147-94-000004.txt : 19940125 0000950147-94-000004.hdr.sgml : 19940125 ACCESSION NUMBER: 0000950147-94-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940121 ITEM INFORMATION: 5 ITEM INFORMATION: 7 FILED AS OF DATE: 19940124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREYHOUND FINANCIAL CORP CENTRAL INDEX KEY: 0000043960 STANDARD INDUSTRIAL CLASSIFICATION: 6153 IRS NUMBER: 941278569 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-07543 FILM NUMBER: 94502415 BUSINESS ADDRESS: STREET 1: DIAL TOWER STE 1159 CITY: PHOENIX STATE: AZ ZIP: 85077-1159 BUSINESS PHONE: 6022076900 FORMER COMPANY: FORMER CONFORMED NAME: GREYHOUND LEASING & FINANCIAL CORP DATE OF NAME CHANGE: 19870330 8-K 1 CURRENT REPORT 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 (Date of earliest event reported): January 21, 1994 GREYHOUND FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-7543 94-1278569 (State or Other Jurisdiction (Commission (I.R.S. Employer Incorporation) File Number)Identification No.) DIAL TOWER, PHOENIX, ARIZONA 85077 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 602/207-6900 Item 5. Other Events. Greyhound Financial Corporation, the principal operating subsidiary of GFC Financial Corporation, announced on January 21, 1994, revenues, net income and selected financial data and ratios for the fourth quarter and year ended December 31, 1993 (unaudited). A copy of the press release issued by Greyhound Financial Corporation is attached as Exhibit 28 to this report. Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit No. Title ------- -------------------------------- 28 Press Release of Greyhound Financial Corporation dated January 21, 1994. 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. GREYHOUND FINANCIAL CORPORATION (Registrant) Dated: January 24, 1994 By/s/ Bruno A. Marszowski ------------------------------------------- Bruno A. Marszowski, Vice President-Controller Principal Financial Officer/Authorized Officer EX-28 2 FOURTH QUARTER 1993 AND YEAR-TO-DATE 1993 EARNINGS EXHIBIT 28 Nancy Archer 1/21/94 602/ 207-2821 THESE ARE THE EARNINGS FOR GREYHOUND FINANCIAL CORPORATION THE PRINCIPAL SUBSIDIARY OF GFC FINANCIAL CORPORATION WHOSE EARNINGS WERE RELEASED JANUARY 18, 1994 GREYHOUND FINANCIAL CORPORATION ANNOUNCES 1993 RESULTS FOR THE FOURTH QUARTER AND YEAR TO DATE PHOENIX, Arizona, January 21, 1994 -- Greyhound Financial Corporation (the "company") today reported results for the fourth quarter and year ended December 31, 1993. Net income for the fourth quarter of 1993 was $10.8 million compared to $10.5 million for the fourth quarter of 1992. The fourth quarter of 1993 included $1.0 million ($0.6 million after-tax) of interest on a loan from its parent, GFC Financial Corporation ('GFCFC"), of the proceeds received on the sale of GFCFC's discontinued operation ("Verex"). Additionally, $0.9 million ($0.6 million after-tax) of general and administrative expenses that would have been allocated to Verex were absorbed by GFC. Excluding these amounts, net income for the fourth quarter of 1993 would have been $12.0 million, an improvement of 14% over the fourth quarter of 1992. Net income for the year 1993 was $36.4 million compared to $36.8 million in 1992. The 1993 results included a $4.9 million adjustment in the third quarter for deferred taxes applicable to leveraged leases and $1.6 million (pre-tax) of expenses previously allocated to Verex. Excluding these amounts, net income for 1993 was $42.3 million, an increase of 15% over 1992. The $4.9 million third quarter adjustment to income taxes represents the effects of recent increases in federal and state income tax rates as they apply to deferred income taxes generated by the company's leveraged lease portfolio. In addition, income taxes for the fourth quarter of 1992 were reduced by $3.1 million representing tax adjustments related to the refinancing of the company's debt upon spin-off from The Dial Corp in March 1992. Sam Eichenfield, Chairman and Chief Executive Officer of the company, said that "1993 was an outstanding year for the company because it had a record year, both in terms of operating earnings, before the one-time tax adjustment, and in new business volume, which reached $1 billion. Additionally, funds employed grew by 15% with margins and the quality of assets continuing to meet or exceed expectations." Nonaccruing assets, including those in the European portfolio, declined as a percentage of funds employed to 3.6% at year end 1993 from 4.0% at year end 1992. Eichenfield went on to say that he was pleased with the significant goals that the company achieved in 1993. "With capital potentially available to the company arising from the successful sale of Verex by the company's parent, along with the acquisition of the Asset Based Finance operations, the start up of the Consumer Rediscount business and the pending purchase of Ambassador Factors, we have enhanced our foundation for the future. With these endeavors, the company is positioned to expand its financial service operations into three new niche-businesses." As announced on November 29, 1993, GFCFC and Fleet Financial Group, Inc. reached an agreement in principle for the company to acquire Fleet Financial's factoring and asset-based lending subsidiary, Fleet Factors Corp., operating under the trade name Ambassador Factors. Interest earned from financing transactions, increased to $64.6 million for the fourth quarter of 1993 from $59.6 million for the fourth quarter of 1992 and to $248.7 million for the year 1993 from $240.8 million in 1992. These increases primarily were driven by the growth in funds employed, partially offset by the runoff of high yielding assets in the European portfolio and the effects of foreign exchange gains and other items recorded in 1992. Interest margins earned increased by 18% to $32.2 million (after adjusting for the $1.0 million interest charge) in the fourth quarter of 1993 from $27.3 million for the fourth quarter of 1992 and by 17% to $122.5 million for 1993 from $104.7 million in 1992. These margins were helped significantly by more favorable debt costs in 1993 when compared to 1992 (approximately a 1.0% reduction in the aggregate cost of debt). Also contributing to the improved margins were the growth of the portfolio and higher prepayment fees. Provisions for possible credit losses were lower in 1993 primarily due to lower write-offs. Reserve coverage (reserves for possible credit losses divided by nonaccruing assets) still remains strong at approximately 63% of nonaccruing assets and five times 1993 write-offs of $12.6 million. Also contributing to the improved results were higher gains on sale of assets in 1993, both for the fourth quarter and the year, primarily due to the amount and type of assets sold. Selling, administrative and other operating expenses were higher by 15%, both for the quarter and year ended December 31, 1993, due to the addition of the Asset Based Finance operations (purchased in February 1993), expenses that would have been charged to Verex and legal expenses incurred in connection with certain problem accounts. Income taxes, excluding the $4.9 million adjustment, were higher in 1993 and more in the range of an ongoing effective tax rate for the company, both for the fourth quarter and the year. Greyhound Financial Corporation is a major domestic commercial finance company that provides secured financing of selected commercial and real estate activities. GREYHOUND FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES SUMMARY OF CONSOLIDATED INCOME (UNAUDITED) (Dollars in Thousands) Quarter Ended Year Ended December 31, December 31, -------------------------------------- 1993 1992 1993 1992 -------------------------------------- Interest earned from financing transactions $ 64,632 $ 59,645 $248,700 $240,806 Interest expense 33,373 32,368 126,152 136,107 -------- -------- -------- -------- Interest margins earned 31,259 27,277 122,548 104,699 Provision for possible credit losses 2,000 3,890 5,706 6,740 Gains on sale of assets 3,199 1,549 5,439 3,362 Selling, administrative and other operating expenses 16,114 14,024 58,158 50,728 -------- -------- -------- -------- Income before income taxes 16,344 10,912 64,123 50,593 Income taxes: Current 5,521 403 22,825 13,843 Adjustment to deferred taxes (Note 1) 4,857 -------- -------- -------- -------- Net Income $ 10,823 $ 10,509 $ 36,441 $ 36,750 ======== ======== ======== ======== Note 1: The results of operations for the year ended December 31, 1993 include a one time adjustment of $4,857,000 representing the effect of recent federal and state income tax increases applicable to deferred income taxes generated by the company's leveraged lease portfolio. GREYHOUND FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES SELECTED CONSOLIDATED FINANCIAL DATA AND RATIOS UNAUDITED (Dollars in Thousands) Year Ended or as of December 31, ------------------------ FINANCIAL DATA: 1993 1992 ------------------------ Funds employed $ 2,846,571 $ 2,485,844 Nonaccruing assets 102,607 100,422 Reserve for possible credit losses 64,280 69,291 Debt 2,082,350 1,898,773 Preferred stock 25,000 25,000 Stockholder's equity 345,291 325,788 New business 1,007,794 682,369 Write-offs 12,575 23,661 RATIOS: Spread percentage (Note 1) 5.28% 5.09% Nonaccruals/funds employed 3.6% 4.0% Reserves/funds employed 2.3% 2.8% Reserves/nonaccruals 62.6% 69.0% Write-offs/average funds employed 0.5% 1.0% Expenses/average funds employed 2.2% 2.1% Expenses/interest margins earned 47.5% 48.5% Debt & preferred stock/equity 6.1x 5.9x Note 1: Spread percentages represent interest margins earned as a percentage of earning assets, net of deferred taxes applicable to leveraged leases. -----END PRIVACY-ENHANCED MESSAGE-----