SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----
FORM 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file numbers 1-6368
FORD MOTOR CREDIT COMPANY
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 38-1612444
- -------------------- -----------------------------------
(State of Incorporation) (I.R.S. employer identification no.)
The American Road, Dearborn, Michigan 48121
- --------------------------------------- ---------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (313) 322-3000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number
of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date: 250,000 shares
of common stock as of October 31, 1994.
The registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing
this Form in reduced disclosure format.
<PAGE>
<PAGE 2>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements - The interim financial data presented herein
are unaudited, but in the opinion of management reflect all adjustments
necessary for a fair presentation of such information. Results for interim
periods should not be considered indicative of results for a full year.
Reference should be made to the financial statements contained in the
registrant's Annual Report on Form 10-K for the year ended December 31,
1994 (the "10-K Report"). Information relating to earnings a share is not
presented because the registrant, Ford Motor Credit Company ("Ford
Credit"), is a wholly owned subsidiary of Ford Motor Company ("Ford").
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Condensed Consolidated Statement of Income
and of Earnings Retained for Use in the Business
For the Periods Ended September 30, 1995 and 1994
(in millions)
<TABLE>
<CAPTION>
Third Quarter Nine Months
1995 1994 1995 1994
--------- ---------- ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Financing Revenue
Operating leases $ 1,809.0 $ 1,405.3 $ 5,188.1 $ 3,776.8
Retail 935.7 830.7 2,657.5 2,420.3
Wholesale 318.4 226.3 1,061.3 661.6
Diversified 39.2 28.9 109.0 81.6
Other 82.6 69.3 247.9 193.3
---------- ---------- ---------- ----------
Total financing revenue 3,184.9 2,560.5 9,263.8 7,133.6
Investment and other income 145.7 89.4 379.9 366.9
---------- ---------- ---------- ----------
Total revenue 3,330.6 2,649.9 9,643.7 7,500.5
Expenses
Depreciation on operating leases 1,303.8 1,039.3 3,744.2 2,783.7
Interest expense 1,222.2 905.0 3,623.9 2,510.6
Operating expenses 242.1 247.2 712.4 690.6
Provision for credit losses 132.9 39.3 289.4 171.6
---------- ---------- ---------- ----------
Total expenses 2,901.0 2,230.8 8,369.9 6,156.5
---------- ---------- ---------- ----------
Equity in net income of affiliated
companies 67.7 61.4 174.7 166.2
Income before income taxes 497.3 480.5 1,448.5 1,510.2
Provision for income taxes 136.2 162.8 451.5 519.9
---------- ---------- ---------- ----------
Income before minority interest 361.1 317.7 997.0 990.3
Minority interest in net income of
subsidiaries 3.7 2.9 10.5 8.1
---------- ---------- ---------- ----------
Net income 357.4 314.8 986.5 982.2
Earnings retained for use in
the business
Beginning of period 6,478.3 5,567.3 5,849.2 4,899.9
Dividends (350.0) (250.0) (350.0) (250.0)
---------- ---------- ---------- ----------
End of period $ 6,485.7 $ 5,632.1 $ 6,485.7 $ 5,632.1
========== ========== ========== ==========
<FN>
Certain amounts for Third Quarter and Nine Months 1994 have been reclassified to conform
with presentations adopted in subsequent periods.
The accompanying notes are part of the financial statements.
/TABLE
<PAGE>
<PAGE 3>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
ASSETS (Unaudited) (Unaudited)
<S> <C> <C> <C>
Cash and cash equivalents $ 564.3 $ 292.0 $ 628.4
Investments in securities 1,761.1 1,596.3 1,256.3
Finance receivables, net (Note 1) 59,280.2 56,946.5 55,256.9
Accounts and notes receivable from
affiliated companies 302.6 250.3 260.9
Equity in net assets of affiliated companies 1,617.0 1,346.5 1,297.3
Net investment, operating leases 23,890.4 19,993.9 18,566.5
Other assets 2,635.7 2,799.0 2,196.9
----------- ----------- -----------
Total assets $ 90,051.3 $ 83,224.5 $ 79,463.2
=========== =========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable
Trade, customer deposits, and
dealer reserves $ 1,447.3 $ 1,326.5 $ 1,248.6
Affiliated companies 431.5 496.0 585.8
----------- ----------- -----------
Total accounts payable 1,878.8 1,822.5 1,834.4
Debt (Note 2) 75,512.3 70,440.4 67,205.7
Deferred income taxes 2,920.8 2,405.9 2,339.5
Other liabilities and deferred income 1,681.1 1,495.6 1,251.1
----------- ----------- -----------
Total liabilities 81,993.0 76,164.4 72,630.7
Minority interest in net assets of
subsidiaries 654.8 397.5 398.3
Stockholder's Equity
Capital stock, par value $100 a share,
250,000 shares authorized, issued and
outstanding 25.0 25.0 25.0
Paid-in surplus (contributions by stockholder) 917.3 917.3 917.3
Unrealized (loss)/gain on marketable
securities, net of taxes 23.0 (70.0) (53.2)
Foreign-currency translation adjustments (47.5) (58.3) (87.0)
Earnings retained for use in the business 6,485.7 5,848.6 5,632.1
----------- ----------- -----------
Total stockholder's equity 7,403.5 6,662.6 6,434.2
----------- ----------- -----------
Total liabilities and stockholder's
equity $ 90,051.3 $ 83,224.5 $ 79,463.2
=========== =========== ===========
<FN>
Certain amounts for Third Quarter and Nine Months 1994 have been reclassified to conform
with presentations adopted in subsequent periods.
The accompanying notes are part of the financial statements.
/TABLE
<PAGE>
<PAGE 4>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Cash Flows
For the Periods Ended September 30, 1995 and 1994
(in millions)
<TABLE>
<CAPTION>
Nine Months
1995 1994
---------- ----------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities
Net income $ 986.5 $ 982.2
Adjustments to reconcile net income to net
cash provided by operating activities
Provision for credit losses 289.4 171.6
Depreciation and amortization 3,909.8 2,934.4
Gain on sales of finance receivables (12.8) (6.2)
Gain on sale of investment 0 (58.3)
Equity in net income of affiliates (174.7) (166.2)
Deferred income taxes 513.4 201.4
Changes in the following items
Other assets 9.8 365.5
Other liabilities 229.2 139.8
Other 17.0 (46.1)
---------- ----------
Net cash provided by operating activities 5,767.6 4,518.1
---------- ----------
Cash flows from investing activities
Purchase of finance receivables (21,303.6) (20,278.7)
Collection of finance receivables 16,756.7 16,605.0
Proceeds from sales of finance receivables
and operating leases 2,728.3 2,009.3
Net change in wholesale receivables 11.9 (2,837.2)
Proceeds from sale of investment 0 142.1
Purchase of operating lease vehicles (12,608.0) (11,011.1)
Liquidation of operating lease vehicles 4,377.1 2,267.4
Other (192.8) 15.1
---------- ----------
Net cash used in investing activities (10,230.4) (13,088.1)
---------- ----------
Cash flows from financing activities
Proceeds from issuance of long-term debt 7,858.3 7,938.8
Principal payments on long-term debt (3,993.9) (6,462.0)
Change in short-term debt, net 943.4 6,687.5
Cash dividends paid (350.0) 0
Other 274.1 44.2
---------- ----------
Net cash provided by financing activities 4,731.9 8,208.5
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 3.2 (2.4)
---------- ----------
Net change in cash and cash equivalents 272.3 (363.9)
Cash and cash equivalents, beginning of period 292.0 992.3
---------- ----------
Cash and cash equivalents, end of period $ 564.3 $ 628.4
========== ==========
Supplementary cash flow information
Interest paid $ 3,531.3 $ 2,672.8
Taxes paid 52.8 373.7
<FN>
Certain amounts for Nine Months 1994 have been reclassified to conform with presentations
adopted in subsequent periods.
The accompanying notes are part of the financial statements.
/TABLE
<PAGE>
<PAGE 5>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 1. Finance Receivables (in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
Retail $ 44,396.8 $ 40,566.6 $ 41,260.1
Wholesale 14,389.0 15,252.9 13,477.5
Diversified 2,784.0 2,738.2 2,564.1
Other 4,401.2 4,263.8 4,013.9
----------- ----------- -----------
Total finance receivables 65,971.0 62,821.5 61,315.6
Add loan origination costs 208.9 155.6 146.0
Less
Unearned income (6,254.1) (5,371.0) (5,470.2)
Allowance for credit losses (645.6) (659.6) (734.5)
----------- ----------- -----------
Finance receivables, net $ 59,280.2 $ 56,946.5 $ 55,256.9
=========== =========== ===========
/TABLE
<PAGE>
<PAGE 6>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements (continued)
Note 2. Debt (in millions)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1995 1994 1994
----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
PAYABLE WITHIN ONE YEAR:
Commercial paper $ 34,024.6 $ 33,228.9 $ 31,152.7
Other short-term debt* 1,412.7 1,136.0 1,055.8
----------- ----------- -----------
Total short-term debt 35,437.3 34,364.9 32,208.5
Senior and subordinated
notes and debentures
payable within one year 6,493.5 4,712.7 4,919.5
----------- ----------- -----------
Total payable within
one year 41,930.8 39,077.6 37,128.0
----------- ----------- -----------
September 30, 1995
----------------------------
Weighted Average
Interest Rates*** Maturities
---------------- ----------
PAYABLE AFTER ONE YEAR:
Unsecured senior notes
Notes** 7.01% 1996-2048 33,572.4 31,411.2 30,124.5
Unamortized premium/
(discount) 9.1 (48.4) (46.8)
----------- ----------- -----------
Total unsecured
senior notes 33,581.5 31,362.8 30,077.7
----------- ----------- -----------
Total payable
after one year 33,581.5 31,362.8 30,077.7
----------- ----------- -----------
Total debt $ 75,512.3 $ 70,440.4 $ 67,205.7
=========== =========== ===========
<FN>
* Includes $2.4 million with affiliated companies at September 30, 1994.
** Includes $1,149 million with affiliated companies at September 30, 1995.
*** Rates were variable on about 27.4% of the debt payable after one year including the
effects of interest rate swap agreements.
</TABLE>
<PAGE>
<PAGE 7>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
FORD CREDIT THIRD QUARTER 1995 RESULTS OF OPERATIONS
Ford Credit's consolidated net income for the third quarter of 1995
was $357 million, up $42 million or 13% compared with $315
million in the third quarter of 1994. Income from financing
operations was $290 million, up $36 million or 14% from the same
period a year ago. Equity in net income of affiliated companies,
primarily Ford Holdings, Inc. ("Ford Holdings"), was $68 million
compared with $61 million in the same period a year ago.
Compared with results from a year ago, the increase in financing
profits in the third quarter of 1995 primarily reflected lower 1995
taxes resulting from prior year tax adjustments, higher financing
volumes, improved operating cost performance, and gains from sale
of receivables. Lower net interest margins and higher credit losses
were a partial offset. The tax adjustment primarily related to a credit
received in 1995 resulting from overestimating tax liabilities in 1994.
The higher level of earning assets primarily reflected increases in
operating leases and retail installment sale receivables. The lower
net interest margins reflected an increase in U.S. portfolio borrowing
rates from 5.5% to 6.5% offset partially by higher portfolio yields on
finance receivables and operating leases. Interest margins were
adversely affected because interest rates earned on finance
receivables, including operating leases net of depreciation, were
limited by competitive pressure in automotive financing. Credit
losses increased in the third quarter of 1995, reflecting higher losses
per repossessed unit and an increase in repossession rates.
Total gross finance receivables and net investment in operating
leases at September 30, 1995 were $89.9 billion, up $10.0 billion or
13% from a year earlier. The increase primarily reflected higher
levels of operating leases and retail installment sale receivables.
Depreciation expense on operating leases in the third quarter of 1995
was $1,304 million, up $264 million or 25% compared with the third
quarter of 1994. The increase reflected the higher levels of
operating leases and was more than offset by higher revenue earned
from the increased volume of lease contracts.
During the third quarter of 1995, Ford Credit financed 38.0% of all
new cars and trucks sold by Ford Motor Company dealers in the
United States, compared with 36.7% in the third quarter of 1994.
The increase reflected higher levels of retail installment sale
financing. Ford Credit provided retail financing for 658,000 new and
used vehicles in the United States, up 12% from a year ago. Ford
Credit also provided wholesale financing for 79.8% of Ford Motor
Company factory sales to U.S. car and truck dealers during the
quarter, compared with 82.9% in the same period a year ago.
<PAGE>
<PAGE 8>
FORD CREDIT FIRST NINE MONTHS 1995 RESULTS OF OPERATIONS
For the first nine months of 1995, Ford Credit's consolidated net
income was $986 million, up $4 million from $982 million in 1994.
Income from financing operations was $812 million, down $4 million
from the same period a year ago, resulting from lower net interest
margins, higher credit losses, and the non-recurrence of the one-time
gain from the sale of Ford Credit's investment in Manheim Auctions,
Inc. A higher level of earning assets, lower 1995 taxes resulting
from prior year tax adjustments and improved operating cost
performance were a partial offset. Equity in net income of affiliated
companies was $175 million compared with $166 million in 1994.
Depreciation expense in the first nine months of 1995 was $3,744
million, up $960 million or 35% compared with the first nine months
of 1994. The increase reflected the higher levels of operating leases
and was more than offset by higher revenue earned from the
increased volume of lease contracts. During the first nine months of
1995, Ford Credit provided retail financing for 36.8% of all new cars
and trucks sold by Ford Motor Company dealers in the United States,
compared with 37.0% in the same period a year ago. Ford Credit
provided U.S. retail financing for 1,892,000 new and used vehicles
compared with 1,798,000 vehicles in the first nine months of 1994.
Ford Credit also provided wholesale financing for 79.7% of Ford
Motor Company factory sales to U.S. car and truck dealers during
the first nine months of 1995, compared with 81.0% in the same
period last year.
FORD CREDIT LIQUIDITY AND CAPITAL RESOURCES
Ford Credit's outstanding debt at September 30, 1995 and at the end of each
of the last five years was as follows:
<TABLE>
<CAPTION>
Sept.30, December 31
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
(in millions)
<S> <C> <C> <C> <C> <C> <C>
Commercial paper & STBA's(a) $34,086 $33,300 $24,506 $21,210 $18,232 $23,371
Other short-term debt 1,351 1,065 1,001 1,785 1,642 1,411
Long-term debt (including
current portion) (b) 40,075 36,075 33,292 26,961 28,455 26,209
------- ------- ------- ------- ------- -------
Total debt $75,512 $70,440 $58,799 $49,956 $48,329 $50,991
======= ======= ======= ======= ======= =======
MEMO: 1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
Total support facilities $27.4 $22.3 $16.9 $13.9 $13.8 $12.7
(billions -- as of July 1,
1995 and January 1,
1995-1991, respectively)
</TABLE>
- ------
(a) Short-term borrowing agreements with bank trust departments
(b) Includes $1,149 million with affiliated companies at September 30, 1995
Support facilities represent additional sources of funds, if required. At
September 30, 1995, Ford Credit had approximately $27.4 billion of
contractually committed facilities for use (which included $7.6 billion of
Ford bank lines that may be used by Ford Credit at Ford's option). These
facilities have various maturity dates through June 2000. The entire $27.4
billion may be used, at Ford Credit's option, by its subsidiaries in Canada,
Australia, Mexico, New Zealand, Japan, and Puerto Rico. Any such borrowing
will be guaranteed by Ford Credit.<PAGE>
<PAGE 9>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None to report.
Item 2. Changes in securities
Not required.
Item 3. Defaults upon Senior Securities
Not required.
Item 4. Submission of Matters to a Vote of Secuirty Holders
Not required.
Item 5. Other Information
INFORMATION CONCERNING FORD
Following is a condensed consolidated statement of income (unaudited) of Ford
for the periods ended September 30, 1995 and 1994 (in millions except amounts
per share):
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------- -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales and revenues $31,418 $30,622 $102,590 $94,796
Total costs and expenses 30,686 28,746 96,717 88,307
Operating income 732 1,876 5,873 6,489
Automotive net interest income/(expense) 20 (64) 103 (112)
Automotive equity in net/(loss)income
of affiliated companies (190) 84 (151) 193
Income before income taxes 562 1,896 5,825 6,570
Provision for income taxes 157 737 2,198 2,723
Minority interests in net income
of subsidiaries 48 35 148 108
Net income 357 1,124 3,479 3,739
Amounts Per Share of Common Stock
and Class B Stock after Preferred
Stock Dividends
Income per share $ 0.28 $ 1.04 $ 3.13 $ 3.50
Income per share
assuming full dilution $ 0.27 $ 0.93 $ 2.85 $ 3.13
Cash Dividends per share of Common
and Class B Stock $ 0.31 $ 0.225 $ 0.88 $ 0.65
</TABLE>
<PAGE>
<PAGE 10>
THIRD QUARTER 1995 RESULTS OF OPERATIONS - FORD
Overview
Ford Motor Company earned $357 million, or $0.28 per share of
Common and Class B Stock, in the third quarter of 1995. This
compares with $1,124 million, or $1.04 per share, in the third
quarter of 1994. Fully diluted earnings per share were $0.27 in
the third quarter of 1995, compared with $0.93 a year ago.
Ford's worldwide sales and revenues were $31.4 billion,
compared with $30.6 billion a year ago. Vehicle unit sales of
cars and trucks were 1,435,000, down 141,000 units, or 9%.
Stockholders' equity was $25 billion at September 30, 1995.
Automotive Operations
Ford's worldwide Automotive operations incurred a loss of $201
million in the third quarter of 1995 on sales of $24.4 billion,
compared with a net income of $619 million in the third quarter
of 1994 on sales of $24.9 billion. Overall, the decline in
earnings reflected lower volume in the U.S. and losses in Europe
and Brazil.
In the U.S., Ford's Automotive operations earned $187 million in
the third quarter of 1995 on sales of $16.8 billion, compared
with $553 million a year ago on sales of $17.8 billion. The
decline in earnings was explained by lower unit volume
(reflecting unusually high production in the year ago period and
units lost because of major new product launches and component
shortages) and costs associated with introducing new products
(mainly the new Taurus and Sable); cost efficiencies were a
partial offset. U.S. Automotive after-tax return on sales was
1.1% in the third quarter of 1995, down two points from a year
ago.
In the third quarter of 1995, the seasonally-adjusted annual
selling rate for the U.S. car and truck industry was 15.2 million
units, compared with 14.8 million units in the third quarter of
1994. Ford's car market share was 19.8% in the third quarter of
1995, down one point from a year ago. Ford's truck share was
31.6%, up 4/10 of a point from a year ago. Ford's combined car
and truck share was 24.7%, down 4/10 of a point from a year ago.
The decline in share reflected primarily lower sales of the
Taurus and Sable because of model changeover and lower sales of
the Escort, offset partially by higher sales of the Explorer and
F-Series trucks.
Outside the U.S., Automotive operations incurred a loss of $388
million in the third quarter of 1995 on sales of $7.6 billion,
compared with a net income of $66 million a year ago on sales of
$7.1 billion. The decline reflected primarily losses in Europe
and Brazil.
In Europe, Automotive operations incurred a loss of $320 million,
compared with a loss of $37 million a year ago. The larger loss
reflected primarily lower unit volume and higher marketing costs,
costs associated with introducing new products (the Galaxy
minivan and Fiesta), and unfavorable foreign exchange effects.
In the third quarter of 1995, the seasonally-adjusted annual
selling rate for the European car and truck industry was 13 million
units, compared with 13.3 million units in the third quarter of 1994.
Ford's car share was 12.6% in the third quarter of 1995, equal to a
year ago. Ford's truck share was 15.4%, up one point from a year
ago. Ford's combined car and truck share was 12.9%, up 1/10 of a
point from a year ago.
<PAGE>
<PAGE 11>
Outside the U.S. and Europe, Ford incurred a loss of $68 million
in the third quarter of 1995, compared with a profit of $103 million
a year earlier. The loss was more than accounted for by operations
in Brazil, where higher import duties and a market shift to small
cars resulted in excess inventories and higher marketing costs.
These conditions are expected to continue for the balance of
1995 and into next year. Business conditions have been and are
expected to continue to be volatile and subject to rapid change,
which can affect Ford's future earnings.
Ford and Volkswagen AG have agreed on a separation process
leading toward dissolution of their Autolatina joint venture in
Brazil and Argentina, which is expected to occur by year-end 1995.
Historically, earnings in Brazil and Argentina have represented
a significant portion of Ford's Automotive earnings outside the
U.S. and Europe. The long-term effect, if any, of the dissolution
of Autolatina on Ford's future results will depend on Ford's
ability to compete on its own in these historically volatile markets.
From now through early next year, Ford is launching the new
Taurus, Sable, F-150 pick-up truck, Escort and Tracer in North
America, and the Galaxy minivan and Fiesta in Europe. In the
U.S., the new products will represent about 35% of Ford's volume
compared to more typical years when new products represent about
10% to 15% of volume. In Europe, the Fiesta is Ford's highest
volume product.
Worldwide Automotive results in the fourth quarter of 1995 are
expected to be better than the third quarter of 1995, but worse
than the fourth quarter of 1994. Lower production in North
America, the continuation of major new product launches in North
America (the F-150 pick-up truck) and in Europe (the Fiesta),
higher costs associated with additional reductions in personnel,
and continued adverse foreign exchange effects are expected to
result in lower earnings in the fourth quarter compared with a
year ago.
Financial Services Operations
Ford's Financial Services operations earned a record
$558 million in the third quarter of 1995, compared with
$505 million in the third quarter of 1994. The increase resulted
primarily from record earnings at Ford Credit, The Associates
First Capital Corporation ("The Associates"), USL Capital
Corporation ("USL Capital") and The Hertz Corporation ("Hertz"),
offset partially by lower earnings at The American Road
Insurance Company ("American Road").
For a discussion of Ford Credit's results of operations in
the third quarter of 1995, see Item 2. "Management's
Discussion and Analysis of Financial Condition and Results
of Operations - Ford Credit Third Quarter 1995 Results of
Operations." In addition, the international operations
managed by Ford Credit, but not included in its consolidated
results, earned $69 million in the third quarter of 1995,
compared with $62 million a year ago, reflecting primarily
higher levels of earning assets, offset partially by lower
net interest margins.
The Associates earned a record $171 million in the U.S. in the
third quarter of 1995, compared with $151 million a year ago.
The increase reflected higher levels of earning assets and
improved net interest margins. The international operations
managed by The Associates, but not included in its consolidated
results, earned $32 million in the third quarter of 1995,
compared with $17 million a year ago.
<PAGE>
<PAGE 12>
USL Capital earned a record $31 million in the third quarter
of 1995, compared with $27 million a year ago. The
improvement resulted primarily from higher levels of
earning assets. Hertz earned a record $65 million
in the third quarter of 1995, compared with $61 million
in the third quarter of 1994. The increase reflected
primarily higher volume in construction equipment
rentals and sales. American Road earned $9 million
in the third quarter of 1995, compared with
$14 million a year ago. The decrease reflected
lower investment income.
Ford has announced that it is reviewing alternative strategies
for the non-automotive affiliates of its Financial Services
operations. Alternatives being reviewed include the sale
by Ford Holdings of a portion of The Associates and sale of
all or a portion of USL Capital. No decisions have been made
at this time.
Ford Holdings has announced its intention to exchange for cash
its outstanding preferred stock (totaling about $2 billion) by means
of a cash-out merger, subject to approval by the holders of a
majority of the voting power of the outstanding capital stock of
Ford Holdings. Because Ford directly or indirectly owns all the
outstanding common stock of Ford Holdings, representing 75%
of the combined voting power of all classes of capital stock
of Ford Holdings, stockholder approval is assured. As provided
in the terms of the preferred stock, Ford Holdings will pay the
preferred stockholders the liquidation preference of the stock,
i.e., the price at which the stock was originally issued, plus
accrued dividends. Ford Holdings expects to fund the cash-out
merger primarily with bank loans. It is anticipated that the
merger will become effective by the end of 1995. Ford Holdings
has filed with the Securities and Exchange Commission (the
"Commission") a Schedule 13E-3 and a Schedule 14C relating
to the merger, which are being reviewed by the Commission.
FIRST NINE MONTHS RESULTS OF OPERATIONS - FORD
Overview
Ford earned $3,479 million, or $3.13 per share of Common and
Class B Stock, in the first nine months of 1995. This compares
with $3,739 million, or $3.50 per share, in the first nine months
of 1994. Ford's results a year ago included a charge of
$440 million related to the disposition of First Nationwide Bank.
Fully diluted earnings per share were $2.85 in the first nine
months of 1995, compared with $3.13 a year ago. Ford's
worldwide sales and revenues were $102.6 billion, up $7.8 billion
from a year ago. Vehicle unit sales of cars and trucks were
5,016,000, down 130,000 units.
Automotive Operations
Net income from Ford's worldwide Automotive operations was
$2,040 million in the first nine months of 1995 on sales of $82.9
billion, compared with $2,794 million in the first nine months of
1994 on sales of $79.4 billion.
In the U.S., Ford's Automotive operations earned $1,675 million
in the first nine months of 1995 on sales of $55.7 billion,
compared with $2,257 million a year ago on sales of
$54.9 billion. The decline in earnings reflected primarily lower
unit volume, costs associated with introducing new products, and
unfavorable foreign exchange effects. U.S. Automotive after-tax
return on sales was 3%, down 1.1 points from a year ago.
In the first nine months of 1995, the seasonally-adjusted annual
selling rate for the U.S. car and truck industry was 15 million
<PAGE>
<PAGE 13>
units, compared with 15.3 million units a year ago. Ford
expects U.S. car and truck industry sales to total 15.1 million
units for the full year, compared with 15.4 million units in
1994. Ford's car share was 21% in the first nine months of 1995,
down 2/10 of a point from a year ago. Ford's truck share was
32.2%, up 2 points from a year ago. Ford's combined car and
truck share was 25.8%, up 9/10 of a point from a year ago.
Outside the U.S., Automotive operations earned $365 million in
the first nine months of 1995 on sales of $27.2 billion, compared
with $537 million a year ago on sales of $24.5 billion. The
decline reflected primarily lower results in Brazil.
Ford's European Automotive operations earned $164 million in the
first nine months of 1995, compared with $183 million a year ago.
The decline reflected primarily lower unit volume. In the first
nine months of 1995, the seasonally-adjusted annual selling rate
for the European car and truck industry was 13.4 million units,
compared with 13.2 million units a year ago. Ford expects
European car and truck industry sales to total 13.4 million units
for the full year, compared with 13.3 million units in 1994.
Ford's car share was 12.2% in the first nine months of 1995, up
2/10 of a point from a year ago. Ford's truck share was 15.2%,
up 6/10 of a point from a year ago. Ford's combined car and
truck share was 12.5%, up 2/10 of a point from the first nine
months of 1994.
Financial Services Operations
Ford's Financial Services operations earned a record
$1,439 million in the first nine months of 1995, compared with
$945 million in the first nine months of 1994. The improvement
was explained by the nonrecurrence of the $440 million charge to
net income in the first quarter of 1994 for disposition of First
Nationwide Bank, as well as increased earnings from ongoing
operations.
For a discussion of Ford Credit's results of operations in the
first nine months of 1995, see Item 2. "Management's Discussion
and Analysis of Financial Condition and Results of Operations -
Ford Credit First Nine Months 1995 Results of Operations." In
addition, the international operations managed by Ford Credit,
but not included in its consolidated results, earned $200 million
in the first nine months of 1995, compared with $175 million a
year ago.
The Associates earned a record $464 million in the U.S. in the
first nine months of 1995, compared with $400 million a year ago.
The increase reflected higher levels of earning assets and
improved net interest margins. The international operations
managed by The Associates, but not included in its consolidated
results, earned $81 million in the first nine months of 1995,
compared with $56 million a year ago.
USL Capital earned a record $87 million in the first nine months
of 1995, compared with $75 million a year ago. The improvement
reflected primarily higher levels of earning assets and higher
gains on asset sales. Hertz earned $84 million in the first nine
months of 1995, compared with $88 million a year ago. The
decrease reflected primarily increased depreciation and borrowing
costs. American Road earned $5 million in the first nine months
of 1995, compared with $44 million a year ago. The decrease
reflected lower underwriting results in floor plan products and
the dissolution of an operating subsidiary.
<PAGE>
<PAGE 14>
LIQUIDITY AND CAPITAL RESOURCES - FORD
Automotive Operations
Cash, cash equivalents and marketable securities of Ford's
Automotive operations were $12.2 billion at September 30,
1995, up $158 million from December 31, 1994. Ford
paid $1,120 million in cash dividends on its Common Stock,
Class B Stock and Preferred Stock during the first nine
months of 1995.
Automotive capital expenditures were $6.2 billion in the first
nine months of 1995, up $298 million from the same period a year
ago. Automotive capital spending is projected to increase
further during the fourth quarter of 1995 compared with the third
quarter of 1995 as a result of increases in both product and
nonproduct spending. The higher product spending reflects a
record pace of new-model introductions and increased capacity for
selected components and vehicles, while the higher nonproduct
spending reflects continuing efforts to improve quality and
efficiency.
Automotive debt at September 30, 1995 totaled $6.8 billion, which
was 21% of total capitalization (stockholders' equity and
Automotive debt), compared with $7.3 billion, or 25% of total
capitalization, at December 31, 1994. The decrease in Automotive
debt reflected primarily the assumption of debt by a Financial
Services subsidiary.
At September 30, 1995, Ford had long-term contractually committed
global credit agreements under which $8.4 billion is available
from various banks at least through June 30, 2000. The entire
$8.4 billion may be used, at Ford's option, by any affiliate of
Ford; however, any borrowing by an affiliate will be guaranteed
by Ford. In addition, Ford has the ability to transfer on a
nonguaranteed basis the entire $8.4 billion in varying portions
to Ford Credit and Ford Credit Europe. These facilities were
unused at September 30, 1995.
Financial Services Operations
Financial Services' cash, cash equivalents and investments in
securities totaled $9.1 billion at September 30, 1995, up
$1.3 billion from December 31, 1994.
Net receivables and lease investments were $144.1 billion at
September 30, 1995, up $13.8 billion from December 31, 1994. The
increase reflected continued growth in earning assets at Ford
Credit and The Associates.
Total debt was $135.9 billion at September 30, 1995, up
$12.2 billion from December 31, 1994. The increase resulted from
higher debt levels required to finance growth in earning assets
at Ford Credit and The Associates.
At September 30, 1995, Financial Services had a total of $47.8
billion of contractually committed support facilities. Of these
facilities, $23.9 billion (excluding the $8.4 billion of the Ford
Credit facilities) are contractually committed global credit
agreements under which $19.8 billion and $4.1 billion are
available to Ford Credit and Ford Credit Europe, respectively,
from various banks; 62% and 75%, respectively, of such facilities
are available through June 30, 2000. The entire $19.8 billion
may be used, at Ford Credit's option, by any subsidiary of Ford
Credit, and the entire $4.1 billion may be used, at Ford Credit
Europe's option, by any subsidiary of Ford Credit Europe. Any
borrowings by such subsidiaries will be guaranteed by Ford Credit
or Ford Credit Europe, as the case may be. At September 30,
1995, $127 million and $670 million of the Ford Credit and Ford
Credit Europe global facilities, respectively, were in use.
<PAGE>
<PAGE 15>
Other than the global credit agreements, the remaining portion of
the Financial Services' support facilities at September 30, 1995
consisted of $21.6 billion of contractually committed support
facilities available to various affiliates in the U.S. and $2.3
billion of contractually committed support facilities available
to various affiliates outside the U.S; at September 30, 1995,
approximately $900 million of these facilities were in use.
ACCOUNTING CHANGES - FORD
The Emerging Issues Task Force (the "EITF") of the Financial
Accounting Standards Board is considering an accounting issue
that concerns timing of revenue recognition when a manufacturer
conditionally guarantees the resale value of a product or agrees
to repurchase the product at a fixed price (Issue 95-1). For
Ford, this issue affects primarily sales through dealers to
certain daily rental companies where the daily rental company has
an option to require Ford to repurchase vehicles. Ford
recognizes revenue upon the sale of vehicles to dealers,
including vehicles that subsequently are sold to daily rental
companies. If the EITF determines such sales should be accounted
for as operating leases, with revenue and income deferred and
recognized over the term of the lease, Ford would be required to
change its accounting for such transactions. The effect of this
change, if required, on Ford's financial results is not expected
to be material relative to full year 1995 earnings, but it could
be material in the quarter in which the accounting change is
made. If required, the change could be made either on a
prospective basis or on a one-time cumulative basis; in either
case, there would be no effect on Ford's cash flow.
LEGAL PROCEEDINGS - FORD
Product Matters
With respect to the lawsuits for damages arising out of
automobile accidents where plaintiffs claim that the injuries
resulted from (or were aggravated by) alleged defects in the
occupant restraint systems in vehicle lines of various model
years, referred to in the second paragraph on page 26 of the 10-K
Report, on page 12 of Ford Credit's quarterly report on Form 10-Q for
the quarter ended March 31, 1995 (the "First Quarter 10-Q
Report"), and on page 15 of Ford Credit's quarterly report on
Form 10-Q for the quarter ended June 30, 1995 (the "Second
Quarter 10-Q Report"), the damages specified by the plaintiffs in
these actions, including both actual and punitive damages,
aggregated approximately $584 million at September 30, 1995.
With respect to the lawsuits for damages involving the alleged
propensity of Bronco II utility vehicles to roll over, referred
to in the third paragraph on page 26 of the 10-K Report, on page
12 of the First Quarter 10-Q Report, and on page 15 of the Second
Quarter 10-Q Report, the damages specified in these actions,
including both actual and punitive damages, aggregated
approximately $1.2 billion at September 30, 1995.
With respect to the lawsuits for damages involving asbestos,
referred to in the fifth paragraph on page 26 of the 10-K Report,
on page 12 of the First Quarter 10-Q Report, and on page 15 of
the Second Quarter 10-Q Report, the damages specified by
plaintiffs in these actions, including both actual and punitive
damages, aggregated approximately $551 million at September 30,
1995.
In most of the actions described in the foregoing paragraphs, no
dollar amount of damages is specified or the specific amount
referred to is only the jurisdictional minimum. It has been
Ford's experience that in cases that allege a specific amount of
damages in excess of the jurisdictional minimum, such amounts, on
average, bear little relation to the actual amounts of damages
<PAGE>
<PAGE 16>
paid by Ford in such cases, which generally are, on average,
substantially less than the amounts originally claimed. Ford
believes that, based on its analysis, any resulting liability
or loss from the foregoing matters and those matters described
in the 10-K Report on page 26 would not materially affect Ford's
consolidated financial statements.
Environmental Matters
Ford has resolved by settlement agreement the notice referred to
in the first paragraph under the caption "Environmental Matters"
on page 26 of the 10-K Report. In a separate matter potentially
involving monetary sanctions exceeding $100,000, Ford has
received a notice that a government environmental enforcement
agency believes a Ford facility may have violated regulations
relating to the management of certain materials.
Other Matters
With respect to the three purported class action lawsuits that
allege defects in the paint processes used with respect to
certain vehicles manufactured by Ford, referred to in the third
full paragraph on page 27 of the 10-K Report, the two lawsuits
(one of which was pending in Louisiana and the other in Alabama)
that are nationwide in scope have been consolidated for pretrial
proceedings in the U.S. District Court for the Eastern District
of Louisiana. In addition, two additional purported class action
lawsuits alleging similar facts relating to Ford's paint processes
have been filed. One such lawsuit was filed in the federal district
court located in Minneapolis, Minnesota and the other was filed in
state court in Milwaukee, Wisconsin. Both lawsuits will be
consolidated with the two lawsuits mentioned above in the U.S.
District Court for the Eastern District of Louisiana.
<PAGE>
<PAGE 17>
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Please refer to the Exhibit Index on page 18.
(b) Reports on Form 8-K during the quarter ended September 30, 1995:
FINANCIAL
DATE OF REPORT ITEM STATEMENTS FILED
- -------------- --------------------- ----------------
July 19, 1995 Item 5 - Other Events Consolidated Financial
Statements and Management's
Discussion and Analysis of
Financial Condition and
Results of Operations for
second quarter of 1995 and
the first half of 1995 of
Ford Motor Credit Company
and News release dated
July 19, 1995 of Ford
Motor Company and sub-
sidiaries for the quarter
ended June 30, 1995, with
attachments.
August 17, 1995 Item 5 - Other Events None
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 thereunto duly authorized.
FORD MOTOR CREDIT COMPANY
(Registrant)
/s/ Terrence F. Marrs
November 13, 1995 --------------------------
Terrence F. Marrs, Controller
(Chief Accounting Officer)
<PAGE>
<PAGE 18>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholder
of Ford Motor Credit Company:
We have reviewed the condensed consolidated balance sheet of Ford Motor
Credit Company and Subsidiaries at September 30, 1995 and 1994, and the
related condensed consolidated statements of income and of earnings
retained for use in the business and cash flows for the periods set forth
in this Form 10-Q for the quarter ended September 30, 1995. These financial
statements are the responsibility of the company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet at December 31, 1994 and the
related consolidated statements of income and of earnings retained for use
in the business and cash flows for the year then ended (not presented
herein); and in our report dated January 27, 1995, we expressed an unqualified
opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed
consolidated balance sheet at December 31, 1994 is fairly stated in all
material respects in relation to the consolidated balance sheet from which
it has been derived.
/s/ Coopers & Lybrand
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
October 17, 1995
<PAGE>
<PAGE 19>
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
EXHIBIT INDEX
Sequential
Designation Description Method of Filing
- ----------- ------------ -----------------
12-A Calculation of ratio of Filed with this
earnings to fixed charges Report.
of Ford Credit
12-B Calculation of ratio of Filed with this
earnings to fixed charges Report.
of Ford.
15 Letter from Coopers & Filed with this
Lybrand L.L.P. dated Report.
November 13, 1995,
regarding unaudited
interim financial infor-
mation.
27 Financial Data Schedule. Filed with this
Report.
Exhibit 12-A
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(dollar amounts in millions)
<TABLE>
<CAPTION>
Nine Months For the Years Ended December 31
-------------------- -----------------------------------------------------
1995 1994 1994 1993 1992 1991 1990
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Fixed Charges
Interest expense $ 3,655.5 $ 2,522.0 $ 3,557.8 $ 2,943.5 $ 3,108.3 $ 3,840.6 $ 4,307.4
Rents 11.3 9.9 14.1 11.0 10.8 8.9 7.5
--------- --------- --------- --------- --------- --------- ---------
Total fixed
charges 3,666.8 2,531.9 3,571.9 2,954.5 3,119.1 3,849.5 4,314.9
Earnings
Income before income
taxes and cumulative
effects of changes in
accounting principles 1,448.5 1,510.2 1,999.1 1,875.0 1,323.2 1,075.1 763.2
Less equity in net income
of affiliated companies 174.7 166.2 232.5 198.3 155.2 191.0 145.0
Less minority interest
in net income of
subsidiaries 10.5 8.1 10.7 7.9 6.1 2.3 0
--------- --------- --------- --------- --------- --------- ---------
Earnings before fixed
charges $ 4,930.1 $ 3,867.8 $ 5,327.8 $ 4,623.3 $ 4,281.0 $ 4,731.3 $ 4,933.1
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to
fixed charges 1.34 1.53 1.49 1.56 1.37 1.23 1.14
========= ========= ========= ========= ========= ========= =========
<FN>
For purposes of the Ford Credit ratio, earnings consist of income before taxes and cumulative effects of
changes in accounting principles and fixed charges. Income before income taxes and cumulative effects of
changes in accounting principles of Ford Credit includes the equity in net income of all unconsolidated
affiliates and minority interest in net income of subsidiaries. Fixed charges consist of interest on
borrowed funds, amortization of debt discount, premium, and issuance expense, and one-third of all rental
expense (the proportion deemed representative of the interest factor).
</TABLE>
Exhibit 12-B
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
----------------------------------------------------------------------------------------
(in millions)
Nine
Months For the Years Ended December 31
------------------------------------------------------------
1995 1994 1993 1992 1991 1990
-------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Earnings
- --------
Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 5,825 $ 8,789 $ 4,003 $ (127) $(2,587) $ 1,495
Equity in net loss/(income) of
affiliates plus dividends from
affiliates 176 (182) (98) 26 69 171
Adjusted fixed charges a/ 7,727 8,122 7,648 8,113 9,360 9,690
------- ------- ------- ------- ------- -------
Earnings $13,728 $16,729 $11,553 $ 8,012 $ 6,842 $11,356
======= ======= ======= ======= ======= =====
Combined Fixed Charges and
Preferred Stock Dividends
- --------------------------
Interest expense b/ $ 7,486 $ 7,787 $ 7,351 $ 7,987 $ 9,326 $ 9,647
Interest portion of rental expense c/ 199 265 266 185 124 105
Preferred stock dividend requirements
of majority-owned subsidiaries d/ 151 160 115 77 56 83
------- ------- ------- ------- ------- -------
Fixed charges 7,836 8,212 7,732 8,249 9,506 9,835
Ford preferred stock dividend
requirements e/ 311 472 442 317 26 0
------- ------- ------- ------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 8,147 $ 8,684 $ 8,174 $ 8,566 $ 9,532 $ 9,835
======= ======= ======= ======= ======= =======
Ratios
- ------
Ratio of earnings to fixed charges 1.8 2.0 1.5 f/ g/ 1.2
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.7 1.9 1.4 h/ i/ 1.2
</TABLE>
- - - - - -
a/ Fixed charges, as shown below, adjusted to exclude the amount of
interest capitalized during the period and preferred stock dividend
requirements of majority-owned subsidiaries.
b/ Includes interest, whether expensed or capitalized, and amortization
of debt expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc.,
increased to an amount representing the pre-tax earnings which
would be required to cover such dividend requirements based on
Ford's effective income tax rates for all periods except 1992.
The U.S. statutory rate of 34% was used for 1992.
e/ Preferred stock dividend requirements of Ford Motor Company,
increased to an amount representing the pre-tax earnings
which would be required to cover such dividend requirements
based on Ford's effective income tax rates for all periods
except 1992. The U.S. statutory rate of 34% was used for 1992.
f/ Earnings inadequate to cover fixed charges by $237 million.
g/ Earnings inadequate to cover fixed charges by $2,664 million.
h/ Earnings inadequate to cover combined fixed charges and preferred
stock dividends by $554 million.
i/ Earnings inadequate to cover combined fixed charges and preferred
stock dividends by $2,690 million.
EXHIBIT 15
Ford Motor Credit Company
The American Road
Dearborn, Michigan
Re: Ford Motor Credit Company Registration Statement No. 33-30875 on Form
S-8 and Registration Statement Nos. 33-24928, 33-55237, 33-53101
and 33-55945 on Form S-3
We are aware that our report dated October 17, 1995 accompanying the
unaudited interim financial information of Ford Motor Credit Company and
subsidiaries for the periods ended September 30, 1995 and 1994 and included
in the Ford Motor Credit Company Quarterly Report on Form 10-Q for the
quarter ended September 30, 1995 will be incorporated by reference in the
above Registration Statements. Pursuant to Rule 436(c) under the Securities
Act of 1933, this report should not be considered a part of the Registration
Statements prepared or certified by us within the meaning of Sections 7
and 11 of the Act.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
November 13, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Ford Credit's Condensed Consolidated Balance Sheet is unclassified. Therefore,
the following tags listed below are not applicable to Ford Credit: Current
Assets and Current Liabilities. Information relating to earnings a share is not
presented because Ford Credit is a wholly owned subsidiary of Ford Motor
Company.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 564
<SECURITIES> 1,761
<RECEIVABLES> 59,280
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 90,051
<CURRENT-LIABILITIES> 0
<BONDS> 75,512
<COMMON> 25
0
0
<OTHER-SE> 7,379
<TOTAL-LIABILITY-AND-EQUITY> 90,051
<SALES> 0
<TOTAL-REVENUES> 9,644
<CGS> 0
<TOTAL-COSTS> 8,370
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 289
<INTEREST-EXPENSE> 3,624
<INCOME-PRETAX> 1,448
<INCOME-TAX> 451
<INCOME-CONTINUING> 986
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 986
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
