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 18, 1995
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The CIT Group Holdings, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-1861 13-2994534
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
1211 Avenue of the Americas
New York, New York 10036
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Registrant's telephone number, including area code (212) 536-1950
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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See attached press release.
SIGNATURES
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.
THE CIT GROUP HOLDINGS, INC.
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(Registrant)
By /s/ JOSEPH J. CARROLL
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Joseph J. Carroll
Executive Vice President and
Chief Financial Officer
Dated: January 18, 1995
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(The CIT Group, Inc. Letterhead)
Joseph J.Carroll
Chief Financial Officer
(201) 740-5214
FROM: THE CIT GROUP HOLDINGS, INC.
1211 AVENUE OF THE AMERICAS
NEW YORK, NY 10036
FOR IMMEDIATE RELEASE
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THE CIT GROUP REPORTS RECORD 1994 NET INCOME OF $201.1 MILLION;
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10.3 PERCENT INCREASE OVER 1993
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NEW YORK, NEW YORK, JANUARY 18, 1995 --- The CIT Group Holdings, Inc.,
one of the nation's leading asset-based finance companies with total assets
of $16.0 billion, today announced record 1994 net income of $201.1 million,
an increase of 10.3 percent compared with $182.3 million in 1993. The
fourth consecutive year of record earnings reflects improved interest
income from continued excellent asset growth in most business units,
increased factoring commissions and a lower provision for credit losses.
"CIT's performance in 1994 was outstanding," said Albert R.Gamper, Jr.,
CIT President and CEO. "We crossed the $200 million in earnings threshold,
reached record asset levels and received important upgrades from rating
agencies on our senior debt."
"In 1994," added Mr. Gamper, "CIT also completed the strategic
acquisition of Barclays Commercial Corp. to become the nation's largest
factor and continued to expand our home equity business in a challenging
marketplace."
"These are just some of CIT's significant accomplishments this year.
Our results are a testament to the continued dedication and hard work of
2700 employees."
"In passing these milestones, we enter 1995 with a good deal of
momentum." However, he noted, "We are mindful of the effect that increased
competition will have and concerned about the rising market interest rate
environment and its potential impact on economic activity."
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Financial highlights for 1994 include:
- Finance receivables (before the reserve for credit losses) of
$14.8 billion and equipment under operating lease of 867.9
million totaled a record $15.7 billion at December 31,1994, up
$2.3 billion (17.1 percent) from $13.4 billion at year-end
1993. The acquisition of Barclays Commercial Corporation (BCC)
in February 1994 added over $700 million of factored receivables.
- Interest and fees of $1.35 billion rose 14.0 percent from
$1.18 billion in 1993, reflecting earnings generated from the
growth in financing and leasing assets and increased factoring
commissions due to the BCC acquisition.
- Net charge-offs declined to $84.2 million, or 0.61 percent of
average finance receivables, compared to $94.4 million, or 0.77
percent of average finance receivables in 1993.
- Operating expenses before the provision for credit losses
amounted to $337.9 million, or 2.48 percent of average earning
assets, compared to $282.2 million, or 2.30 percent of average
earning assets in 1993. The increase is principally
attributable to the BCC acquisition and expanded activity in
Consumer Finance where finance receivables rose to $570.8
million at December 31, 1994, a threefold increase as compared
with $131.3 at year-end 1993.
- Finance receivables past due 60 days or more were $176.9 million
(1.20 percent of finance receivables) at December 31, 1994, down
from $216.1 million (1.71 percent of finance receivables) at
year-end 1993. Past due finance receivables on nonaccrual
status totaled $110.2 million (0.75 percent of finance
receivables) at December 31, 1994, compared to $139.9 million
(1.11 percent of finance receivables) at year-end 1993.
- Assets received in the satisfaction of loans totaled $86.5
million at December 31, 1994, compared with $87.0 million at
December 31, 1993.
The CIT Group Holdings, Inc., one of the nation's leading
asset-based lenders, is owned 60 percent by The Dai-Ichi Kangyo Bank,
Limited, one of the largest banks in the world, and 40 percent by Chemical
Banking Corporation, the fourth largest bank holding company in the United
States.
(SEE ATTACHED TABLES FOR ADDITIONAL FINANCIAL DATA)
# # #
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THE CIT GROUP HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(DOLLAR AMOUNTS IN THOUSANDS)
Year-Ended December 31,
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1994 % to AEA 1993 % to AEA
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Interest and fees
earned $ 1,347,864 9.80%* $ 1,181,914 9.50%*
Interest expense 613,957 4.42 * 508,006 4.00 *
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Net interest and fees 733,907 5.38 673,908 5.50
Gains on asset sales 26,039 .19 23,945 .20
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Operating revenue 759,946 5.57 697,853 5.70
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Salaries and employee
benefits 185,868 1.36 152,139 1.24
Other operating expenses 152,068 1.12 130,043 1.06
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Operating expenses
before provision
for credit losses 337,936 2.48 282,182 2.30
Provision for credit losses
on net charge-offs 84,152 .61 ** 94,408 .77 **
Provision for credit losses
for reserve change 12,789 .09 10,466 .09
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Provision for credit
losses 96,941 .71 104,874 .86
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Total operating expenses 434,877 3.19 387,056 3.16
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Income before provision
for income taxes 325,069 2.39 310,797 2.54
Provision for income taxes 123,941 .91 128,489 1.05
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Net income $ 201,128 1.48% $ 182,308 1.49%
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Average financing and
leasing assets (AEA) $13,630,256 $12,262,902
Average finance
receivables $13,819,916 $12,266,125
* Excludes interest income and interest expense relating to
interest-bearing deposits
** Percent to average finance receivables
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THE CIT GROUP HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLAR AMOUNTS IN THOUSANDS)
December 31, December 31,
1994 1993
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ASSETS
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FINANCING AND LEASING ASSETS
Capital Equipment Financing $ 4,493,531 $ 4,394,528
Business Credit 1,442,049 1,282,133
Credit Finance 719,642 645,642
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Corporate Finance 6,655,222 6,322,303
Commercial Services 1,896,233 981,935
Industrial Financing 4,269,693 3,880,991
Sales Financing 1,402,443 1,307,544
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Dealer and Manufacturer
Financing 5,672,136 5,188,535
Consumer Finance 570,772 131,321
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Finance receivables 14,794,363 12,624,094
Reserve for credit losses (192,421) (169,378)
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Net finance receivables 14,601,942 12,454,716
Equipment under operating
lease, net 867,914 751,901
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Net financing and leasing
assets 15,469,856 13,206,617
CASH AND CASH EQUIVALENTS 6,558 101,554
OTHER ASSETS 487,076 420,310
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TOTAL ASSETS $15,963,490 $13,728,481
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DEBT
Commercial paper $ 5,660,194 $ 6,516,139
Variable rate notes 3,812,500 1,686,500
Fixed rate notes 2,623,150 2,392,500
Subordinated fixed rate notes 300,000 200,000
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Total debt 12,395,844 10,795,139
Credit balances of factoring
clients 993,394 521,728
Accrued liabilities and payables 354,714 324,520
Deferred Federal income taxes 426,511 394,859
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Total liabilities 14,170,463 12,036,246
STOCKHOLDERS' EQUITY
Common stock - authorized, issued and
outstanding - 1,000 shares 250,000 250,000
Paid-in capital 408,320 408,320
Retained earnings 1,134,707 1,033,915
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Total stockholders' equity 1,793,027 1,692,235
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $15,963,490 $13,728,481
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THE CIT GROUP HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(DOLLAR AMOUNTS IN THOUSANDS)
Year Ended
December 31,
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1994 1993
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Common stock
Balance, beginning and end of period $ 250,000 $ 250,000
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Paid-in capital
Balance, beginning and end of period 408,320 408,320
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Retained earnings
Balance, beginning of period 1,033,915 942,771
Net income 201,128 182,308
Dividends paid (100,336) (91,164)
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Balance, end of period 1,134,707 1,033,915
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Total stockholders' equity $1,793,027 $1,692,235
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