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 16, 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
and nine months ended September 30, 1995 was $60.9 million and $162.2 million,
respectively, compared to $57.8 million and $166.6 million, respectively, in the
corresponding 1994 periods. The Company's income before income taxes and
minority interest for the three months and nine months ended September 30, 1995
was $90.6 million and $248.1 million, respectively, compared to $94.8 million
and $273.8 million, respectively, in the corresponding 1994 periods. The
Company's revenues for the three months and nine months ended September 30, 1995
were $355.7 million and $1,036.2 million, respectively, compared to $405.1
million and $1,181.9 million, respectively, in the corresponding 1994 periods.
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 September 30, 1995 the Company had total debt consisting of certificates of
deposit of $74.7 million, short-term borrowings of $1,287.2 million and
long-term debt of $5,150.0 million. In addition the Company's total
stockholder's equity at September 30, 1995 was $1,194.1 million.
Ratio of Earnings to Fixed Charges
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The Company's ratio of earnings to fixed charges for the nine months ended
September 30, 1995 was 1.70. 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 Nine months ended
Business Segment Data September 30, September 30,
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1995 1994 1995 1994
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Revenues:
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Consumer Finance $343.0 $ 312.5 $1,003.4 $ 914.3
Insurance Services (Gulf) -- 79.5 -- 231.9
Corporate and Other 12.7 13.1 32.8 35.7
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$355.7 $ 405.1 $1,036.2 $1,181.9
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Net Income
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Consumer Finance $ 65.1 $ 59.1 $ 180.6 $ 164.9
Insurance Services (Gulf)
(after minority interest of
$3.9 and $11.4 in 1994) -- 3.8 -- 11.4
Corporate and Other (4.2) (5.1) (18.4) (9.7)
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Net Income $ 60.9 $ 57.8 $ 162.2 $ 166.6
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As of, and for, the As of, and for, the
three months ended nine months ended
Consumer Finance Operations September 30, September 30,
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1995 1994 1995 1994
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Net receivables
Real estate-secured loans $2,927.8 $2,841.0 $2,927.8 $2,841.0
Personal loans 3,045.7 2,795.4 3,045.7 2,795.4
Credit cards 723.6 686.6 723.6 686.6
Sales finance and other 448.6 432.6 448.6 432.6
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Consumer finance receivables
net of unearned finance charges 7,145.7 6,755.6 7,145.7 6,755.6
Accrued interest receivable 41.2 37.2 41.2 37.2
Allowance for credit losses (188.9) (178.1) (188.9) (178.1)
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Consumer finance receivables, net $6,998.0 $6,614.7 $6,998.0 $6,614.7
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Average yield 15.77% 15.49% 15.59% 15.33%
Average net interest margin 8.86% 8.86% 8.73% 8.67%
Charge-off rate 2.24% 1.91% 2.18% 2.08%
60+ days past due as % of
receivables 1.97% 1.90% 1.97% 1.90%
Reserves as % of net receivables 2.64% 2.64% 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: October 16, 1995 COMMERCIAL CREDIT COMPANY
By /s/ William T. Bozarth
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William T. Bozarth
Vice President
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