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) April 17, 1995
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Commercial Credit Company
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(Exact name of registrant as specified in its charter)
Delaware 1-6594 52-0883351
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
300 Saint Paul Place, Baltimore, Maryland 21202
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(Address of principal executive offices) (Zip Code)
(410) 332-3000
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(Registrant's telephone number, including area code)
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COMMERCIAL CREDIT COMPANY
Current Report on Form 8-K
Item 5. Other Events
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Results of Operations
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The net income of Commercial Credit Company (the "Company") for the three months
ended March 31, 1995 was $47.1 million compared to $52.6 million in the
corresponding 1994 period. The Company's income before income taxes, minority
interest and cumulative effect of changes in accounting principles for the three
months ended March 31, 1995 was $73.3 million compared to $87.2 million in the
corresponding 1994 period. The Company's revenues for the three months ended
March 31, 1995 were $333.2 million compared to $384.3 million in the
corresponding 1994 period.
On December 30, 1994 the Company sold its remaining 50% interest in Commercial
Insurance Resources, Inc., the parent of Gulf Insurance Company (Gulf), to an
affiliate, The Travelers Indemnity Company, for $150 million and accordingly
results of operations for 1995 do not include Gulf's results.
At March 31, 1995 the Company had total debt consisting of certificates of
deposit of $82.8 million, short-term borrowings of $1,827.5 million and long-
term debt of $4,510.0 million. In addition the Company's total stockholder's
equity at March 31, 1995 was $1,140.1 million.
Ratio of Earnings to Fixed Charges
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The Company's ratio of earnings to fixed charges for the quarter ended March 31,
1995 was 1.63. This ratio has been computed by dividing earnings available for
fixed charges by fixed charges. For the purpose of this ratio earnings
available for fixed charges consist of pre-tax income from continuing operations
adjusted for undistributed equity earnings and minority interest and fixed
charges; and fixed charges consist of interest expense and that portion of
rentals deemed representative of the appropriate interest factor.
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COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
Three months ended
Business Segment Data March 31,
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1995 1994
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Revenues:
Consumer Finance $ 323.3 $ 299.3
Insurance Services (Gulf) - 74.4
Corporate and Other 9.9 10.6
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$ 333.2 $ 384.3
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Net Income
Consumer Finance $ 55.5 $ 51.2
Insurance Services (Gulf)
(after minority interest of
$3.7 in 1994) - 3.7
Corporate and Other (8.4) (2.3)
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Net income $ 47.1 $ 52.6
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As of, and for, the
three months ended
Consumer Finance Operations March 31,
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1995 1994
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Net receivables
Real estate-secured loans $2,888.0 $2,757.8
Personal loans 2,934.6 2,563.3
Credit cards 696.8 684.6
Sales finance and other 450.0 439.1
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Consumer finance receivables,
net of unearned finance charges 6,969.4 6,444.8
Accrued interest receivable 39.0 37.6
Allowance for credit losses (184.2) (170.4)
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Consumer finance receivables, net $6,824.2 $6,312.0
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Average yield 15.43% 15.22%
Average net interest margin 8.65% 8.51%
Charge-off rate 2.16% 2.26%
60+ days past due as % of
receivables 1.83% 2.00%
Reserves as % of net receivables 2.64% 2.64%
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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.
Dated: April 17, 1995 COMMERCIAL CREDIT COMPANY
By /s/ William T. Bozarth
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William T. Bozarth
Vice President
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