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 11, 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.
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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: April 24, 1995
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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 QUARTERLY EARNINGS OF $52.8 MILLION
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10.0 PERCENT INCREASE OVER 1994 FIRST QUARTER
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NEW YORK, NEW YORK, APRIL 11, 1995 --- The CIT Group
Holdings, Inc., one of the nation's leading asset-based finance
companies, today reported record net income of $52.8 million for
the first quarter ended March 31, 1995, an increase of 10.0
percent from the $48.0 million reported for the first quarter of
1994. The improvement was principally due to growth in average
financing and leasing assets, increased factoring commissions,
and sharply lower net credit losses.
"Our record first quarter results were excellent, driven by
outstanding credit quality and our strong marketing
performance," said Albert R. Gamper, Jr., CIT president and chief
executive officer. "At this point in the business cycle, it is
difficult to discern whether there will be a soft or hard
landing. In either case, CIT must continue to maintain high
standards for credit and first-rate service for our customers,
especially in today's highly competitive environment."
OTHER HIGHLIGHTS:
* Financing and leasing assets totaled $15.88 billion, up
$221.0 million from $15.66 billion at December 31, 1994
and up $1.55 billion from $14.33 billion at March 31,
1994. The increase from year-end reflects strong new
business volume in most lines of business.
* Net finance income rose to $164.5 million in the first
quarter of 1995, up 4.7 percent from $157.1 million in
the first quarter of 1994, reflecting earnings on the
higher level of financing and leasing assets, offset in
part by more aggressive pricing competition on new
business and higher market interest rates on borrowed
funds.
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* Fees and other income totaled $43.3 million in 1995
compared with $39.9 million in 1994 as there were two
additional months of factoring commissions from Barclays
Commercial Corporation (BCC), which was acquired on
February 28, 1994. Gains on asset sales and
securitizations, included in fees and other income,
totaled $6.5 million for the first quarter of 1995,
compared with $7.6 million in 1994.
* Salaries and general operating expenses totaled
$84.8 million, 2.29 percent of average financing and
leasing assets, versus $80.5 million, 2.47 percent of
average financing and leasing assets in the first quarter
of 1994. The reduction in salaries and general operating
expenses as a percent of average financing and leasing
assets reflects benefits from the integration of BCC and
Commercial Services, the 1994 restructuring of the Sales
Financing business acquisition centers, improved
efficiency in Industrial Financing, and continued finance
receivable growth in Consumer Finance.
* Net credit losses for the first quarter of 1995 improved
to $17.5 million, 0.47 percent of average finance
receivables, from $25.8 million, 0.80 percent of average
finance receivables for the first quarter of 1994.
* Finance receivables past due 60 days or more totaled
$192.7 million (1.28 percent of finance receivables) at
March 31, 1995, compared with $176.9 million
(1.20 percent of finance receivables) at December 31,
1994. Past due finance receivables on nonaccrual status
declined to $106.1 million (0.71 percent of finance
receivables) at March 31, 1995 from $110.2 million (0.75
percent of finance receivables) at year-end 1994.
* Assets received in the settlement of loans were $82.4
million at March 31, 1995, compared with $86.5 million at
December 31, 1994.
The CIT Group Holdings, Inc., one of the nation's largest
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)
THREE MONTHS ENDED
MARCH 31
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1995 % TO AEA 1994 % TO AEA
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Finance income $ 363,743 9.78%* $285,968 8.68%*
Interest expense 199,198 5.33 * 128,840 3.85 *
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Net finance income 164,545 4.45 157,128 4.83
Fees and other income 43,344 1.17 39,857 1.22
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Operating revenue 207,889 5.62 196,985 6.05
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Salaries and general
operating expenses 84,837 2.29 80,549 2.47
Net credit losses 17,462 0.47 ** 25,805 0.80**
Provision for finance
receivables increase 3,464 0.09 (924) (0.03)
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Provision for credit
losses 20,926 0.57 24,881 0.77
Depreciation on operating
lease equipment 17,639 0.47 14,290 0.44
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Operating expenses 123,402 3.33 119,720 3.68
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Income before provision
for income taxes 84,487 2.29 77,265 2.37
Provision for income taxes 31,675 0.86 29,230 0.89
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Net income $ 52,812 1.43% $ 48,035 1.48%
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Average financing and
leasing assets (AEA) $14,808,286 $13,024,231
Average finance
receivables $14,884,342 $12,850,556
* 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)
MARCH 31, DECEMBER 31,
1995 1994
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ASSETS
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FINANCING AND LEASING ASSETS
Finance receivables
Capital Equipment Financing $ 4,413,355 $4,493,531
Business Credit 1,649,311 1,442,049
Credit Finance 768,834 719,642
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CORPORATE FINANCE 6,831,500 6,655,222
COMMERCIAL SERVICES 1,827,137 1,896,233
Industrial Financing 4,317,720 4,269,693
Sales Financing 1,346,140 1,402,443
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DEALER AND MANUFACTURER FINANCING 5,663,860 5,672,136
CONSUMER FINANCE 678,148 570,772
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Finance receivables 15,000,645 14,794,363
Reserve for credit losses (195,420) (192,421)
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Net finance receivables 14,805,225 14,601,942
Operating lease equipment 882,697 867,914
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Net financing and leasing
assets 15,687,922 15,469,856
CASH AND CASH EQUIVALENTS 120,201 6,558
OTHER ASSETS 540,560 487,076
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TOTAL ASSETS $16,348,683 $15,963,490
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LIABILITIES AND STOCKHOLDERS' EQUITY
DEBT
Commercial paper $ 6,017,855 $ 5,660,194
Variable rate notes 3,702,500 3,812,500
Fixed rate notes 2,808,109 2,623,150
Subordinated fixed rate notes 300,000 300,000
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Total debt 12,828,464 12,395,844
Credit balances of factoring
clients 833,289 993,394
Accrued liabilities and payables 438,626 354,714
Deferred Federal income taxes 428,643 426,511
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Total liabilities 14,529,022 14,170,463
STOCKHOLDERS' EQUITY
Common stock - authorized, issued and
outstanding - 1,000 shares 250,000 250,000
Paid-in capital 408,320 408,320
Retained earnings 1,161,341 1,134,707
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Total stockholders' equity 1,819,661 1,793,027
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $16,348,683 $15,963,490
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