-----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, TMsnrFX06cgyF2BmqlqtOmrFQEE4zeWl0eQNv0g/1LuSC/ZS0n0TYi1RM23/kLc3 2oXvcB7pUSbhU//MKzK00w== 0000950147-97-000474.txt : 19970722 0000950147-97-000474.hdr.sgml : 19970722 ACCESSION NUMBER: 0000950147-97-000474 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970716 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970721 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: 97643002 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): July 16, 1997 - -------------------------------------------------------------------------------- FINOVA CAPITAL CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-7543 94-1278569 - -------------------------------------------------------------------------------- (State of 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 today announced revenues, net income and selected financial data and ratios for the second quarter ended June 30, 1997 (unaudited). Item 7. Financial Statements and Exhibits: (c) Exhibits: Exhibits Title -------- ------------------------------------------- 28 Press Release of FINOVA Capital Corporation dated July 16, 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: July 16, 1997 by /s/ Samuel L. Eichenfield -------------------------------------------------------- Samuel L. Eichenfield, Chief Executive Officer, President and Chairman of the Board Authorized Officer 2 EX-28 2 PRESS RELEASE OF FINOVA CAPITAL CORP. EXHIBIT 28 Robert J. Fitzsimmons Embargo until 602/ 207-5759 8:00 a.m. (E.D.T.) THESE ARE THE EARNINGS FOR FINOVA CAPITAL CORPORATION THE PRINCIPAL SUBSIDIARY OF THE FINOVA GROUP INC. WHOSE EARNINGS WERE RELEASED JULY 15, 1997 FINOVA Capital Corporation Announces 23% Increase in Net Income and Record New Business For Second Quarter of 1997 PHOENIX, Ariz., July 16, 1997 -- FINOVA Capital Corporation today announced net income of $34.7 million for the quarter ended June 30, 1997, a 23% increase over $28.1 million of net income for the second quarter of 1996. The company also reported all-time highs of $951 million in new loan and lease originations and $862 million in fee-based volume generated during the quarter, with only a modest decline in the backlog to $1.4 billion. As a result, managed assets at the end of the quarter increased 16.5% year over year and grew at an annualized rate of 18.3% during the quarter. During the second quarter of 1997, the company's interest margins earned as a percentage of average earning assets rose to 6.0% from 5.8% in the second quarter of 1996. "The record new business volumes and increasing margins earned in the second quarter underscore FINOVA's ability to grow the business without sacrificing profitability," said FINOVA Chairman and CEO Sam Eichenfield. "FINOVA continues to demonstrate the strength of its market position and its ability to provide shareholders with increasing returns on their investment in the company." Loss provisions for the quarter were $18.3 million compared to $7.9 million in 1996 and exceeded write-offs by 58%. 3 "In addition, the company's leasing portfolio continued to demonstrate its ability to generate gains on sale of assets," said Eichenfield. Gains for the second quarter of 1997 were $10.5 million, compared to $1.3 million in 1996. For the first six months of 1997, total gains were $13.7 million compared to $8.0 million during the same period a year ago. Included in gains for the second quarter of 1997 was the sale of the company's investment in a leveraged lease transaction. "While experiencing strong growth, we have also continued our commitment to quality and efficiency, as evidenced by continued strong portfolio performance and productivity measures," continued Eichenfield. Nonaccruing assets represented 2.0% of managed assets at June 30, 1997, compared to 2.2% at June 30, 1996, and reserves as a percentage of nonaccruing assets increased to 96.3% from 87.9% a year ago. Selling, general and administrative expenses were 42.8% of interest margins earned in the second quarter of 1997, in line with 41.9% for the year ended December 31, 1996 and somewhat better than the 44.3% reported for the first quarter of 1997. Income taxes for the second quarter were higher in 1997 due to the increase in pre-tax income. In comparison to the first quarter of 1997, the effective tax rate for the period was lower as a result of certain tax credits. 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. 4 FINOVA Capital Corporation and Consolidated Subsidiaries Summary of Consolidated Income (Unaudited) (Dollars in Thousands)
Quarter Ended Six Months Ended June 30, June 30, ----------------------------------- ------------------------------------ 1997 1996 1997 1996 ---------------- ---------------- ---------------- ---------------- Interest earned from financing transactions $ 199,541 $ 167,593 $ 390,653 $ 335,272 Operating lease income 28,946 25,042 54,911 48,015 Interest expense (101,883) (89,718) (199,055) (177,942) Operating lease depreciation (17,610) (14,625) (34,059) (31,903) ---------------- ---------------- ---------------- ---------------- Interest margins earned 108,994 88,292 212,450 173,442 Provision for possible credit losses (18,300) (7,876) (26,300) (19,500) Gains on sale of assets 10,468 1,315 13,701 8,045 Selling, administrative and other operating expenses (46,612) (34,488) (92,490) (72,075) ---------------- ---------------- ---------------- ---------------- Income before income taxes 54,550 47,243 107,361 89,912 Income taxes (19,853) (18,391) (39,851) (34,304) ---------------- ---------------- ---------------- ---------------- Income from continuing operations 34,697 28,852 67,510 55,608 Loss from discontinued operations ---- (731) --- (366) ---------------- ---------------- ---------------- ---------------- Net Income $ 34,697 $ 28,121 $ 67,510 $ 55,242 ================ ================ ================ ================
5 FINOVA Capital Corporation Selected Consolidated Financial Data and Ratios (Unaudited) (1) (Dollars in Thousands)
As of As of June 30, December 31, ---------------------------------- ------------------- FINANCIAL POSITION: 1997 1996 1996 --------------- --------------- ------------------ Ending funds employed (EFE) (2) $ 7,826,196 $ 6,697,013 $ 7,298,759 Securitizations and participations sold (3) 394,025 359,868 364,546 ------------- ------------- ---------------- Total managed assets (2) 8,220,221 7,056,881 7,663,305 Reserve for possible credit losses (2) 159,747 136,917 148,693 Nonaccruing assets (2) 165,885 155,840 155,505 Nonaccruing assets as % of managed assets (4) 2.0% 2.2% 2.0% Reserve for possible credit losses as a % of: Ending managed assets (4) 2.0% 2.0% 2.0% Nonaccruing assets 96.3% 87.9% 95.6% Total debt $ 6,338,122 $ 5,970,459 $ 5,850,223 Stockholder's equity 1,122,162 898,830 1,069,043 Total debt to equity 5.65x 6.64x 5.47x Backlog 1,440,831 1,213,286 1,477,239
For the Second Quarter Ended For the Six Months Ended June 30, June 30, -------------------------------- --------------------------------- PERFORMANCE HIGHLIGHTS: 1997 1996 1997 1996 -------------- -------------- -------------- ---------------- Average managed assets (2) $ 8,023,255 $ 6,880,673 $ 7,881,895 $ 6,768,305 Average earning assets (5) (2) 7,235,636 6,144,342 7,099,386 6,082,728 New business (2) 951,236 584,941 1,562,870 1,234,347 Fee-based volume 862,442 638,415 1,677,673 1,332,508 Write-offs (2) 11,558 7,382 16,858 15,240 Write-offs (annualized) as a % of average managed assets (4) 0.58% 0.43% 0.43% 0.45% Interest margins earned (annualized) as a % of average earning assets 6.0% 5.8% 6.0% 5.7% Selling, administrative and other operating expenses as a % of interest margins earned 42.8% 39.1% 43.5% 41.6%
- ---------------------------------------- (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. 6 -----END PRIVACY-ENHANCED MESSAGE-----