-----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, FRhbR/rcgFCU+jDpKWODk47HeuIZBycMBLCJ8JbfH1u0jerlcSpQ19wvKRVg+btk fNuPemp7Ff+hcywyMnc4WQ== 0000007973-96-000147.txt : 19961016 0000007973-96-000147.hdr.sgml : 19961016 ACCESSION NUMBER: 0000007973-96-000147 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960716 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961015 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSOCIATES CORPORATION OF NORTH AMERICA CENTRAL INDEX KEY: 0000007973 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 741494554 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06154 FILM NUMBER: 96643430 BUSINESS ADDRESS: STREET 1: 250 E CARPENTER FWY CITY: IRVING STATE: TX ZIP: 75062 BUSINESS PHONE: 2145414000 MAIL ADDRESS: STREET 1: P O BOX 660237 CITY: DALLAS STATE: TX ZIP: 75266 FORMER COMPANY: FORMER CONFORMED NAME: ASSOCIATES INVESTMENT CO DATE OF NAME CHANGE: 19711118 8-K 1 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)October 15, 1996 ASSOCIATES CORPORATION OF NORTH AMERICA (Exact name of registrant as specified in its charter) DELAWARE 74-1494554 (State or other jurisdiction (I.R.S. Employer Identification Number) of incorporation) 1-6154 (Commission File Number) 250 E. Carpenter Freeway, Irving, Texas 75062-2729 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (972) 541-4000 Item 5. Other Events. Associates Corporation of North America (the "Company") recorded net earnings for the three months ended September 30, 1996 of $207.1 million, compared with $188.2 million a year earlier, a 10% increase. Earnings before provision for income taxes increased 9% to $326.4 million for the period compared with $298.7 million for the prior year. Total assets at September 30, 1996, were $42.5 billion, an increase of 19% from $35.8 billion a year ago. Revenue for the period increased 16% to $1.6 billion, compared with $1.4 billion in the prior-year period. Net finance receivables outstanding at September 30, 1996 were $41.7 billion, compared with $35.1 billion for the prior-year period, a 19% increase. Consumer finance net receivables outstanding were $28.2 billion at September 30, 1996, up 18% from the $24.0 billion reported for the prior-year period. Consumer finance receivables consist of home equity receivables, personal loans, sales financing of manufactured housing and consumer durable goods, and credit card participations in receivables. Commercial finance net receivables outstanding totaled $13.5 billion at September 30, 1996, up 21% from the $11.1 billion reported a year ago. Commercial finance receivables result from the sales financing and leasing of transportation, construction, communications and other industrial equipment. The Company is also a provider of automobile club and relocation services. Loans delinquent 60-days-or-more increased to 2.10% at September 30 compared to 1.83% for the second quarter of 1996 and 1.61% a year ago. The increase in delinquency is reflective of the generally less favorable trends in economic conditions that have affected most lenders. Losses were 2.16% of average net receivables for the third quarter compared to 1.94% in the second quarter and 1.74% a year ago. The Company's allowance for losses was 3.25% of net receivables at September 30, 1996, compared to 3.29% at June 30, 1996 and 3.04% a year ago. Revenue from insurance premiums for the period was $90.8 million. The insurance operation is principally engaged in underwriting credit life, credit accident and health, and property and casualty insurance for customers of the finance operations. Certain unaudited financial information is as follows (dollar amounts in millions):
Nine Months Ended or at Three Months Ended or at September 30 September 30 ------------------------ % ------------------------- % 1996 1995 Increase 1996 1995 Increase ---- ---- -------- ---- ---- -------- TOTAL REVENUE $ 4,575.2 $ 3,973.3 15 $ 1,608.7 $ 1,381.5 16% EARNINGS BEFORE PROVISION FOR INCOME TAXES 959.5 833.2 15 326.4 298.7 9 NET EARNINGS 606.4 526.9 15 207.1 188.2 10
BALANCE SHEET September 30 December 31 September 30 1996 1995 1995 ------------ ----------- ----- ------- NET FINANCE RECEIVABLES Consumer Finance $ 28,219.7 $ 24,609.2 $ 24,004.6 Commercial Finance 13,440.2 11,759.1 11,065.6 -------- -------- -------- Total Net Finance Receivables $ 41,659.9 $ 36,368.3 $ 35,070.3 ========= ========= ========== TOTAL ASSETS $ 42,457.6 $ 37,023.7 $ 35,797.2 TOTAL DEBT 36,530.3 31,746.2 30,553.4 STOCKHOLDERS' EQUITY 5,082.4 4,444.0 4,334.3
PORTFOLIO QUALITY September 30 JUNE 30 DECEMBER 31 September 30 1996 1996 1995 1995 ------------ -------- ------------ ------------ 60+ DAYS CONTRACTUAL DELINQUENCY 2.10% 1.83% 1.72% 1.61% CREDIT LOSSES (% ANR) 2.16 1.94 1.73 1.74 ALLOWANCE FOR LOSSES ON FINANCE RECEIVABLES 3.25 3.29 3.05 3.04 /TABLE SIGNATURE 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 hereunto duly authorized. ASSOCIATES CORPORATION OF NORTH AMERICA By: /s/ C. D. LONGENECKER Executive Vice President and General Counsel Date: October 15, 1996 -----END PRIVACY-ENHANCED MESSAGE-----