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 16, 1996
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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 year ended December 31, 1995 was $57.7 million and $219.9 million,
respectively, compared to $55.3 million and $221.9 million, respectively, in the
corresponding 1994 periods. The Company's income before income taxes and
minority interest for the three months and year ended December 31, 1995 was
$85.9 million and $334.0 million, respectively, compared to $90.1 million and
$363.9 million, respectively, in the corresponding 1994 periods. The Company's
revenues for the three months and year ended December 31, 1995 were $356.2
million and $1,392.4 million, respectively, compared to $416.1 million and
$1,598.0 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 December 31, 1995 the Company had total debt consisting of certificates of
deposit of $98.3 million, short-term borrowings of $1,394.2 million and
long-term debt of $5,200.0 million. In addition the Company's total
stockholder's equity at December 31, 1995 was $1,162.9 million.
Ratio of Earnings to Fixed Charges
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The Company's ratio of earnings to fixed charges for the year ended December 31,
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 earnings of investees carried on the equity basis of
accounting 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)
<TABLE>
<CAPTION>
Three months ended Year ended
BUSINESS SEGMENT DATA December 31, December 31,
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1995 1994 1995 1994
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<S> <C> <C> <C> <C>
REVENUES:
Consumer Finance $ 347.9 $ 321.9 $1,351.3 $1,236.2
Insurance Services (Gulf) - 82.8 - 314.7
Corporate and Other 8.3 11.4 41.1 47.1
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$ 356.2 $ 416.1 $1,392.4 $1,598.0
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NET INCOME
Consumer Finance $ 64.6 $ 60.7 $ 245.2 $ 225.6
Insurance Services (Gulf)
(after minority interest of
$3.4 and $14.8 in 1994) - 3.4 - 14.8
Corporate and Other (6.9) (8.8) (25.3) (18.5)
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NET INCOME $ 57.7 $ 55.3 $ 219.9 $ 221.9
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<CAPTION>
As of, and for, the As of, and for, the
three months ended year ended
CONSUMER FINANCE OPERATIONS December 31, December 31,
- --------------------------- ------------------------ ------------------------
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Net receivables
Personal loans $3,051.0 $2,874.7 $3,051.0 $2,874.7
Real estate-secured loans 2,957.1 2,844.7 2,957.1 2,844.7
Credit cards 761.8 712.5 761.8 712.5
Sales finance and other 468.2 453.5 468.2 453.5
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Consumer finance receivables
net of unearned finance charges 7,238.1 6,885.4 7,238.1 6,885.4
Accrued interest receivable 46.9 42.3 46.9 42.3
Allowance for credit losses (192.5) (181.9) (192.5) (181.9)
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Consumer finance receivables, net $7,092.5 $6,745.8 $7,092.5 $6,745.8
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Average yield 15.78% 15.62% 15.64% 15.41%
Average net interest margin 8.97% 9.01% 8.79% 8.76%
Charge-off rate 2.58% 2.08% 2.28% 2.08%
60+ days past due as % of
receivables 2.14% 1.88% 2.14% 1.88%
Reserves as % of net receivables 2.66% 2.64% 2.66% 2.64%
</TABLE>
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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: January 16, 1996 COMMERCIAL CREDIT COMPANY
By /s/ William T. Bozarth
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William T. Bozarth
Vice President
