-----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, BTUtNjkp/Y5SLgmh7XzVhIbHyRfTLm/Iz+1bC/cEWRR2XFHOm+XZzMrwIVNowTgI c8UmlnuYqezmqPpTwc552w== 0000950147-97-000029.txt : 19970127 0000950147-97-000029.hdr.sgml : 19970127 ACCESSION NUMBER: 0000950147-97-000029 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970123 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970124 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: 1934 Act SEC FILE NUMBER: 001-07543 FILM NUMBER: 97510767 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 FORM 8-K 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 23, 1997 - -------------------------------------------------------------------------------- FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-7543 94-1278569 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1850 NORTH CENTRAL AVENUE, 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 today announced revenues, net income and selected financial data and ratios for the fourth quarter and year ended December 31, 1996 (unaudited). Item 7. Financial Statements and Exhibits. (c) Exhibits: Exhibits Title ---------------- ------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated January 23, 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. FINOVA CAPITAL CORPORATION (Registrant) Dated: January 24, 1997 By /s/ Bruno A. Marszowski ------------------------------------------ Bruno A. Marszowski, Senior Vice President-Controller and Chief Financial Officer Principal Financial Officer/Authorized Officer EX-28 2 PRESS RELEASE OF FINOVA CAPITAL CORP. EXHIBIT 28 Robert J. Fitzsimmons Embargo until 602/ 207-5759 8:00 a.m. (E.S.T.) THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC. WHOSE EARNINGS WERE RELEASED JANUARY 21, 1997 FINOVA Capital Corporation Announces Record Fourth Quarter and 24% Increase in Income from Continuing Operations For 1996 PHOENIX, Ariz., Jan. 23, 1997 -- FINOVA Capital Corporation today reported a 24% increase in income from continuing operations and record new business for the year ended December 31, 1996. Income from continuing operations for 1996 was $116.5 million compared to $93.8 million in 1995. Net income for 1996 increased 20%, to $117.0 million from $97.6 million in 1995. For the fourth quarter of 1996, income from continuing operations was $30.4 million compared to $24.9 million for the fourth quarter of 1995. During the fourth quarter of 1996, as previously disclosed, the company sold its Manufacturer & Dealer Services line of business. That business has been treated as a discontinued operation; consequently, information discussed below has been restated to reflect the company's continuing operations. Sam Eichenfield, chairman and chief executive officer of FINOVA, said, "the company's results reflect FINOVA's continuing success in achieving profitable growth while maintaining credit discipline and operating efficiency." Managed assets increased to $7.6 billion at December 31, 1996, representing a 16% year over year increase. This growth was driven by record new business and fee-based volume of $5.68 billion for 1996, a 33% increase over 1995. In addition, backlog at December 31, 1996 was at an all-time high of $1.5 billion, a 38% increase over 1995. According to Eichenfield, "the results also indicate the company's ability to consistently produce quality earnings, expand market share and enhance shareholder value. The company's acquisition and divestiture activities for the year demonstrate FINOVA's strategic focus on, and commitment to, chosen middle-market niches where the company can successfully serve clients as their lender of choice." Meanwhile, 1996 write-offs as a percentage of average managed assets continue to be below the company's target at 0.46%. Reserves for possible credit losses remained at 2.0% of managed assets and increased to 95.6% of nonaccruing assets at December 31, 1996, compared to 90.2% at the end of 1995. Productivity improved as operating expenses as a percentage of interest margins earned declined to 41.9% from 42.6%. The absolute increase was principally due to higher incentive compensation accruals related to improved results and stock performance and the higher volume of new business added during the period. FINOVA Capital Corporation is a Phoenix-based major domestic commercial finance company providing a broad range of secured financing and leasing products from $500,000 to $35 million to midsize business. For more information about FINOVA Capital Corporation, 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 Twelve Months Ended December 31, December 31, ------------------------------------- ------------------------------------ 1996 1995 1996 1995 --------------- --------------- --------------- --------------- Interest earned from financing transactions $ 185,229 $ 171,181 $ 702,117 $ 617,425 Operating lease income 24,446 22,289 95,817 84,691 Interest expense (96,972) (90,747) (366,543) (337,814) Operating lease depreciation (15,136) (16,327) (62,286) (55,218) -------------- ------------- -------------- ------------- Interest margins earned 97,567 86,396 369,105 309,084 Provision for possible credit losses (10,587) (14,916) (41,751) (37,568) Gains on sale of assets 4,507 5,894 12,949 10,889 Selling, administrative and other operating expenses (43,837) (38,096) (154,481) (131,571) -------------- ------------- -------------- ------------- Income before income taxes 47,650 39,278 185,822 150,834 Income taxes (17,254) (14,381) (69,329) (57,036) -------------- ------------- -------------- ------------- Income from continuing operations 30,396 24,897 116,493 93,798 Income and gain from sale of discontinued operations 1,599 1,585 507 3,831 -------------- ------------- -------------- ------------- Net Income $ 31,995 $ 26,482 $ 117,000 $ 97,629 ============== ============= ============== =============
FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (Dollars in Thousands)
As of December 31, ---------------------------------------------------------------- FINANCIAL POSITION: 1996 1995 1994 ------------------ ---------------- ----------------- Ending funds employed (EFE)(4) $ 7,298,759 $ 6,348,079 $ 5,342,979 Securitizations(2) 300,000 200,000 --- -------------- --------------- ----------------- Total managed assets(4) 7,598,759 6,548,079 5,342,979 Reserve for possible credit losses(4) 148,693 129,077 110,903 Nonaccruing assets(4)(5) 155,505 143,127 149,046 Nonaccruing assets as % of managed assets 2.0% 2.2% 2.8% Reserve for possible credit losses as a % of: Ending managed assets 2.0% 2.0% 2.1% Nonaccruing assets 95.6% 90.2% 74.4% Total debt $ 5,850,223 $ 5,649,368 $ 4,573,354 Stockholders' equity 1,069,043 855,579 781,986 Total Debt to Equity 5.47x 6.60x 5.85x Backlog 1,477,239 1,070,573 764,326
For the Quarter Ended For the Year Ended December 31, December 31, ---------------------------------------- ---------------------------------- PERFORMANCE HIGHLIGHTS: 1996 1995 1996 1995 ---------------- ----------------- ---------------- -------------- Average managed assets(4) $ 7,457,175 $ 6,315,953 $ 6,991,257 $ 5,833,576 Average earning assets(3)(4) 6,757,732 5,889,632 6,324,545 5,442,119 New business(4) 873,659 809,488 2,740,353 2,302,653 Fee-based volume 819,293 613,401 2,937,311 1,951,310 Write-offs(4) 7,999 9,149 32,017 25,631 Write-offs (annualized) as a % of average managed assets 0.43% 0.58% 0.46% 0.44% Interest margins earned (annualized) as a % of average earning assets 5.8% 5.9% 5.8% 5.7% Selling, administrative and other operating expenses as a % of interest margins earned 44.9% 44.1% 41.9% 42.6%
- --------------------------------------------- (1) Averages for the periods presented are based on month-end balances. (2) Securitizations are assets sold under securitization agreements and managed by the Company. (3) Average earning assets equal average funds employed less average deferred taxes on leveraged leases and average nonaccruing assets. (4) Excludes discontinued operations disposed of during 1996. (5) Nonaccruing assets at December 31, 1996 include nonaccruing assets classified as discontinued operations. -----END PRIVACY-ENHANCED MESSAGE-----