-----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, Py3dpPxWWw/oxIAt54BswQN44YlslXr8+pZtXhRbmVT8UtO80ssYZRJ3IHr59gFr jtIOaFjt3nrzEKf/4OFnTw== 0000950147-97-000704.txt : 19971020 0000950147-97-000704.hdr.sgml : 19971020 ACCESSION NUMBER: 0000950147-97-000704 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971015 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971017 SROS: NYSE 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: 97697262 BUSINESS ADDRESS: STREET 1: 1850 N CENTRAL AVE STREET 2: PO BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85004-2209 BUSINESS PHONE: 6022074900 MAIL ADDRESS: STREET 1: 1850 N. CENTRAL AVENUE STREET 2: P.O. BOX 2209 CITY: PHOENIX STATE: AZ ZIP: 85002-2209 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 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): October 15, 1997 - -------------------------------------------------------------------------------- FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-11011 94-1278569 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1850 NORTH CENTRAL AVENUE, P. O. BOX 2209, PHOENIX, ARIZONA 85004-2209 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 602/207-6900 ----------------------------- Item 5. Other Events. FINOVA Capital Corporation announced revenues, net income and selected financial data and ratios for the third quarter ended September 30, 1997 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits: Exhibits Title ------------ ------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated October 15, 1997 1 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. FINOVA CAPITAL CORPORATION (Registrant) Dated: October 17, 1997 By /s/ Bruno A. Marszowski ---------------------------------------------- Bruno A. Marszowski, Senior Vice President, Chief Financial Officer and Controller Principal Financial Officer/Authorized Officer 2 EX-28 2 PRESS RELEASE EXHIBIT 28C Contact: Robert J. Fitzsimmons For Immediate Release 602/ 207-5759 THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC. WHOSE EARNINGS WERE RELEASED OCTOBER 14, 1997 FINOVA Capital Corporation Announces Record Net Income for the Third Quarter - A 21% Increase PHOENIX, Ariz., Oct. 15, 1997 - FINOVA Capital Corporation today reported record net income of $35.9 million for the third quarter of 1997 compared to $29.8 million in 1996, an increase of 21%. Net income for the first nine months of 1997 was $103.4 million representing a 22% increase over net income of $85.0 million for the first nine months of 1996. Sam Eichenfield, chairman and chief executive officer of FINOVA, said he "was gratified with FINOVA's record performance thus far in 1997 and especially pleased with the continued increase in return to The FINOVA Group Inc.'s shareholders." "In the third quarter of 1997, interest margins earned as a percentage of average earning assets were 6.1%, reflecting the contribution of the record fee-based volume during the quarter," added Eichenfield. Fee-based volume for the third quarter of 1997 was $994 million, an increase of 27% over 1996. New business was $748 million in the third quarter of 1997 compared to $632 million in 1996, and backlog at Sept. 30, 1997 was at a record $1.6 billion compared to $1.4 billion one year ago. "FINOVA continues to broaden its product lines by expanding its capital markets initiative," continued Eichenfield. Adding to FINOVA's capital markets activities will be Belgravia Capital Corporation, one of the largest and fastest-growing commercial mortgage banking organizations in the U.S. which the company acquired on Oct. 8, 1997. "Portfolio quality is still quite high as demonstrated by the continuing low level of non-earning accounts, although higher write-offs were experienced in the quarter," noted Eichenfield. Non-earning assets as a percentage of managed assets were 2.1% at both Sept. 30, 1997 and Sept. 30, 1996, and FINOVA's reserve for possible credit losses was at an all-time high of 97% of non-earning assets. FINOVA's reserve was bolstered by $22.0 million of loss provisions during the third quarter of 1997, which exceeded write-offs by 53% and were almost twice the $11.7 million provided in the comparable quarter of 1996. Gains on sale of assets totaled $8.7 million for the third quarter of 1997; selling, administrative and other operating expenses were 39.3% of interest margins earned for both the third quarter of 1997 and 1996 and were running at 42.0% for the first nine months of 1997. FINOVA Capital Corporation is a Phoenix-based major commercial finance company providing a broad range of financing and capital market products to midsize business. For more information about FINOVA, visit the company's Website at www.finova.com. ### FINOVA Capital Corporation and Consolidated Subsidiaries Summary of Consolidated Income (Unaudited) (Dollars in Thousands)
Quarter Ended Nine Months Ended September 30, September 30, ------------ ------------ ------------ ------------ 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Interest earned from financing transactions $ 207,103 $ 181,616 $ 597,756 $ 516,888 Operating lease income 30,253 23,356 85,164 71,371 Interest expense (105,592) (91,629) (304,647) (269,571) Operating lease depreciation (17,727) (15,247) (51,786) (47,150) ------------ ------------ ------------ ------------ Interest margins earned 114,037 98,096 326,487 271,538 Provision for possible credit losses (22,000) (11,664) (48,300) (31,164) Gains on sale of assets 8,706 397 22,407 8,442 Selling, administrative and other operating expenses (44,773) (38,569) (137,263) (110,644) ------------ ------------ ------------ ------------ Income before income taxes 55,970 48,260 163,331 138,172 Income taxes (20,103) (17,771) (59,954) (52,075) ------------ ------------ ------------ ------------ Income from continuing operations 35,867 30,489 103,377 86,097 Loss from discontinued operations -- (726) -- (1,092) ------------ ------------ ------------ ------------ Net Income $ 35,867 $ 29,763 $ 103,377 $ 85,005 ============ ============ ============ ============
FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (Dollars in Thousands)
As of As of September 30, December 31 ------------------------ ------------- FINANCIAL POSITION: 1997 1996 1996 ---------- ---------- ---------- Ending funds employed (EFE) (2) $8,075,600 $7,058,306 $7,298,759 Securitizations and participations sold (3) 373,737 336,964 364,546 ---------- ---------- ---------- Total managed assets (2) 8,449,337 7,395,270 7,663,305 Reserve for possible credit losses (2) 167,754 144,293 148,693 Nonaccruing assets (2) 173,390 151,798 155,505 Nonaccruing assets as % of managed assets (4) 2.1% 2.1% 2.0% Reserve for possible credit losses as a % of: Ending managed assets (4) 2.0% 2.0% 2.0% Nonaccruing assets 96.7% 95.1% 95.6% Total debt $6,502,512 $6,350,043 $5,850,223 Stockholder's equity 1,150,478 922,451 1,069,043 Total debt to equity 5.65x 6.88x 5.47x Backlog 1,601,334 1,441,663 1,477,239 For the Nine Months For the Quarter Ended Ended September 30, September 30, ------------------------ -------------------------- PERFORMANCE HIGHLIGHTS: 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Average managed assets (2) $8,234,743 $7,136,747 $7,989,202 $6,886,824 Average earning assets (5) (2) 7,456,595 6,393,240 7,208,380 6,184,909 New business (2) 747,852 632,347 2,310,722 1,866,694 Fee-based volume 994,235 785,510 2,671,908 2,118,018 Write-offs (2) 14,405 8,778 31,263 24,018 Write-offs (annualized) as a % of average managed assets (4) 0.71% 0.50% 0.53% 0.47% Interest margins earned (annualized) as a % of average earning assets 6.1% 6.1% 6.0% 5.9% Selling, administrative and other operating expenses as a % of interest margins earned 39.3% 39.3% 42.0% 40.7%
---------- (1) Averages for the periods presented are based on month-end balances. (2) Excludes discontinued operations disposed of during 1996. (3) Securitizations are assets sold under securitization agreements and managed by the Company. (4) Excludes participations sold in which the Company has transferred credit risk. (5) Average earning assets equal average funds employed less average deferred taxes on leveraged leases and average nonaccruing assets. -----END PRIVACY-ENHANCED MESSAGE-----