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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 20, 1998
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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.
RESULTS OF OPERATIONS
The net income of Commercial Credit (the Company) for the three months and six
months ended June 30, 1998 was $65.9 million and $120.2 million, respectively,
compared to $51.1 million and $93.5 million, respectively, in the corresponding
1997 periods. The Company's income before income taxes for the three months and
six months ended June 30, 1998 was $103.1 million and $187.6 million,
respectively, compared to $77.9 million and $142.5 million, respectively, in the
corresponding 1997 periods. The Company's revenues for the three months and six
months ended June 30, 1998 were $516.3 million and $1,003.3 million,
respectively, compared to $398.6 million and $772.3 million, respectively, in
the corresponding 1997 periods.
At June 30, 1998 the Company had total debt consisting of certificates of
deposit of $246.9 million, short-term borrowings of $4,392.3 million and
long-term debt of $6,300.0 million. In addition the Company's total
stockholder's equity at June 30, 1998 was $1,964.3 million.
BUSINESS SEGMENT DATA Three months ended Six months ended
June 30, June 30,
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1998 1997 1998 1997
-------- -------- -------- --------
REVENUES:
Consumer Finance $ 513.4 $ 388.9 $ 997.6 $ 755.2
Corporate and Other 2.9 9.7 5.7 17.1
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REVENUES $ 516.3 $ 398.6 $1,003.3 $ 772.3
======== ======== ======== ========
NET INCOME:
Consumer Finance $ 69.2 $ 53.8 $ 128.4 $ 100.8
Corporate and Other (3.3) (2.7) (8.2) (7.3)
-------- -------- -------- --------
NET INCOME $ 65.9 $ 51.1 $ 120.2 $ 93.5
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COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
As of, or for the quarter As of, or for the six months
ended June 30, ended June 30,
------------------------- -------------------------
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
OWNED BASIS:
Net receivables
Real estate-secured loans $ 5,674.5 $ 3,992.4 $ 5,674.5 $ 3,992.4
Personal loans 4,099.1 3,328.0 4,099.1 3,328.0
Credit cards - owned 1,407.6 1,166.3 1,407.6 1,166.3
Sales finance and other 902.3 554.7 902.3 554.7
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Consumer finance receivables,
net of unearned finance charges 12,083.5 9,041.4 12,083.5 9,041.4
Accrued interest receivable 87.2 56.0 87.2 56.0
Allowance for credit losses (347.1) (263.4) (347.1) (263.4)
---------- ---------- ---------- ----------
Consumer finance receivables, net $ 11,823.6 $ 8,834.0 $ 11,823.6 $ 8,834.0
========== ========== ========== ==========
Average yield 14.15% 14.42% 14.17% 14.53%
Average net interest margin 7.80% 7.93% 7.79% 8.04%
Charge-off rate 2.66% 2.82% 2.71% 2.88%
60+ days past due as a % of receivables 2.23% 2.14% 2.23% 2.14%
Reserves as a % of net receivables 2.87% 2.91% 2.87% 2.91%
MANAGED BASIS:
Consumer finance receivables, net of unearned
finance charges $ 12,083.5 $ 9,041.4 $ 12,083.5 $ 9,041.4
Credit card receivables securitized or held for sale(1) 254.6 - 254.6 -
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Managed receivables $ 12,338.1 $ 9,041.4 $ 12,338.1 $ 9,041.4
========== ========== ========== ==========
Managed credit card receivables $ 1,662.2 $ 1,166.3 $ 1,662.2 $ 1,166.3
Average yield 14.09% 14.42% 14.10% 14.53%
Average net interest margin 7.75% 7.93% 7.73% 8.04%
Charge-off rate 2.67% 2.82% 2.71% 2.88%
60+ days past due as a % of receivables 2.21% 2.14% 2.21% 2.14%
</TABLE>
(1) On March 6, 1998, the company securitized $255.1 million of credit card
receivables.
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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.
COMMERCIAL CREDIT COMPANY
Dated: July 27, 1998 By /s/ William T. Bozarth
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William T. Bozarth
Vice President
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