<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------
FORM 10-Q
-------------
| X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 28, 1998
OR
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
-----------------------------
Commission file number 1-6461
-----------------------------
GENERAL ELECTRIC CAPITAL CORPORATION
------------------------------------
(Exact name of registrant as specified in its charter)
NEW YORK 13-1500700
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
260 LONG RIDGE ROAD,
STAMFORD, CONNECTICUT 06927
(Address of principal executive offices) (Zip Code)
(203) 357-4000
(Registrant's telephone number, including area code)
-----------------------------
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 | |
At May 11, 1998, 3,837,825 shares of common stock with a par value of $200 were
outstanding.
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE
FORMAT.
<PAGE>
TABLE OF CONTENTS
PAGE
--------
PART I - FINANCIAL INFORMATION.
Item 1. Financial Statements ..................... 1
Item 2. Management's Discussion and Analysis
of Results of Operations ................. 5
Exhibit 12. Computation of Ratio of Earnings to Fixed
Charges and Computation of Ratio of
Earnings to Combined Fixed Charges and
Preferred Stock Dividends ................ 7
PART II - OTHER INFORMATION.
Item 6. Exhibits and Reports on Form 8-K .......... 8
Signatures .............................................. 9
Index to Exhibits ....................................... 10
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS
(Unaudited)
THREE MONTHS ENDED
--------------------
MARCH 28, MARCH 29,
(In millions) 1998 1997
-------- --------
<S> <C> <C>
REVENUES
Revenues from services ................................. $ 7,875 $ 6,857
Sales of goods ......................................... 1,626 916
-------- --------
9,501 7,773
-------- --------
EXPENSES
Interest ............................................... 1,948 1,711
Operating and administrative ........................... 2,631 2,217
Cost of goods sold ..................................... 1,482 808
Insurance losses and policyholder and annuity benefits . 1,342 1,149
Provision for losses on financing receivables .......... 332 312
Depreciation and amortization of buildings and equipment
and equipment on operating leases ..................... 652 565
Minority interest in net earnings of consolidated
affiliates ............................................ 11 13
-------- --------
8,398 6,775
-------- --------
EARNINGS
Earnings before income taxes ........................... 1,103 998
Provision for income taxes ............................. (323) (301)
-------- --------
NET EARNINGS ........................................... 780 697
Dividends .............................................. (373) (317)
Retained earnings at beginning of period ............... 11,861 10,678
-------- --------
RETAINED EARNINGS AT END OF PERIOD ..................... $ 12,268 $ 11,058
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
1
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF FINANCIAL POSITION
MARCH 28, DECEMBER 31,
(In millions) 1998 1997
-------- --------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and equivalents ................................... $ 4,358 $ 4,648
Investment securities .................................. 54,302 53,103
Financing receivables:
Time sales and loans, net of deferred income ......... 64,255 64,832
Investment in financing leases, net of deferred income 41,580 41,769
-------- --------
105,835 106,601
Allowance for losses on financing receivables ........ (2,786) (2,802)
-------- --------
Financing receivables - net ........................ 103,049 103,799
Other receivables - net ................................ 12,344 11,925
Equipment on operating leases (at cost), less
accumulated amortization of $6,465 and $6,126 ......... 19,102 18,689
Intangible assets ...................................... 9,509 9,459
Inventories ............................................ 808 786
Other assets ........................................... 28,806 26,368
-------- --------
TOTAL ASSETS ...................................... $232,278 $228,777
======== ========
LIABILITIES AND EQUITY
Short-term borrowings .................................. $ 96,038 $ 91,680
Long-term borrowings:
Senior ............................................... 41,578 44,437
Subordinated ......................................... 697 697
Insurance liabilities, reserves and annuity benefits ... 51,110 50,248
Other liabilities ...................................... 14,833 14,315
Deferred income taxes .................................. 8,278 8,167
-------- --------
Total liabilities ................................. 212,534 209,544
-------- --------
Minority interest in equity of consolidated affiliates . 969 860
-------- --------
Unrealized gains on investment securities .............. 1,148 1,145
Foreign currency translation adjustments ............... (155) (147)
-------- --------
Accumulated non-owner changes in equity ................ 993 998
Capital stock .......................................... 770 770
Additional paid-in capital ............................. 4,744 4,744
Retained earnings ...................................... 12,268 11,861
-------- --------
Total equity ...................................... 18,775 18,373
-------- --------
TOTAL LIABILITIES AND EQUITY ...................... $232,278 $228,777
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED
--------------------
MARCH 28, MARCH 29,
(In millions) 1998 1997
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ........................................... $ 780 $ 697
Adjustments to reconcile net earnings to cash provided
from operating activities:
Provision for losses on financing receivables ........ 332 312
Depreciation and amortization of buildings and
equipment and equipment on operating leases ......... 652 565
Other - net .......................................... 854 176
-------- --------
Cash from operating activities .................... 2,618 1,750
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers ......................... (18,844) (10,362)
Principal collections from customers ................... 19,249 10,250
Investment in assets on financing leases ............... (3,596) (3,880)
Principal collections on financing leases .............. 2,856 3,924
Net decrease in credit card receivables ................ 89 1,453
Buildings and equipment and equipment on operating
leases:
- additions ........................................ (1,537) (1,280)
- dispositions ..................................... 1,420 347
Payments for principal businesses purchased, net of
cash acquired ......................................... (660) (27)
Purchases of investment securities by insurance
affiliates and annuity businesses ..................... (4,074) (2,735)
Dispositions and maturities of investment securities by
insurance affiliates and annuity businesses ........... 3,022 2,709
Other - net ............................................ (990) (1,234)
-------- --------
Cash used for investing activities ................ (3,065) (835)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) .. 6,198 1,811
Newly issued debt - short-term (maturities 91-365 days) 1,556 963
- long-term senior .................. 3,853 3,700
Proceeds - non-recourse, leveraged lease debt .......... 156 --
Repayments and other reductions:
- short-term (maturities 91-365 days) (8,221) (7,418)
- long-term senior .................. (2,630) (331)
Principal payments - non-recourse, leveraged lease debt (184) (129)
Proceeds from sales of investment and annuity contracts 1,027 873
Redemption of investment and annuity contracts ......... (1,262) (586)
Dividends paid ......................................... (336) (317)
Issuance of variable cumulative preferred stock by
consolidated affiliate ................................ -- 100
-------- --------
Cash from (used for) financing activities ......... 157 (1,334)
-------- --------
DECREASE IN CASH AND EQUIVALENTS ....................... (290) (419)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 4,648 3,074
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 4,358 $ 2,655
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
3
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying condensed quarterly financial statements represent the
adding together of General Electric Capital Corporation and all
majority-owned and controlled affiliates (collectively called "the
Corporation" or "GECC"). All significant transactions among the parent and
consolidated affiliates have been eliminated. Certain prior period data
have been reclassified to conform to the current period presentation.
2. The condensed consolidated quarterly financial statements are unaudited.
These statements include all adjustments (consisting of normal recurring
accruals) considered necessary by management to present a fair statement
of the results of operations, financial position and cash flows. The
results reported in these condensed consolidated financial statements
should not be regarded as necessarily indicative of results that may be
expected for the entire year.
3. Statement of Financial Accounting Standards No. 130, Reporting
Comprehensive Income, was adopted as of January 1, 1998. This Statement
requires reporting of changes in share owners' equity that do not result
directly from transactions with share owners. An analysis of these changes
follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------
MARCH 28, MARCH 29,
(Dollars in millions) 1998 1997
-------- --------
<S> <C> <C>
Net earnings .................................... $ 780 $ 697
Unrealized gains (losses) on investment
securities - net ............................... 3 (384)
Foreign currency translation adjustments ........ (8) (34)
-------- --------
Total ........................................... $ 775 $ 279
======== ========
</TABLE>
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.
OVERVIEW
Net earnings for the first quarter of 1998 were $780 million, an $83 million
(12%) increase over the first quarter of 1997. The results reflected the
globalization and diversity of the Corporation's businesses and were led by
double digit increases in Specialty Insurance, Equipment Management and
Mid-Market Financing activities. The Corporation's contribution to its parent,
General Electric Capital Services, Inc. ("GECS"), after payment of dividends on
its variable cumulative preferred stock, was $758 million, a $79 million (12%)
increase over the comparable 1997 period.
The increase in net earnings in the Specialty Insurance segment reflected
improved earnings in the mortgage insurance business, the result of improved
market conditions, as well as increases in the other insurance businesses.
Earnings of the lending, leasing and equipment management businesses are
significantly influenced by the level of invested assets, the related financing
spreads (the excess of rates earned -- yields -- over rates on borrowings) and
the quality of those assets. Net earnings for these businesses reflected
increases, primarily from a higher average level of invested assets, offset by
decreased earnings from Consumer Services activities, attributable to increased
losses and lower volumes for U.S. private-label credit cards and increased
automobile residual losses. These impacts were partially offset by lower losses
associated with the Corporation's equity investment in Montgomery Ward Holding
Corp. Financing spreads decreased slightly compared with the prior year's
quarter, reflecting both lower yields and higher borrowing rates.
OPERATING RESULTS
TOTAL REVENUES from all sources was $9,501 million for the first quarter of
1998, a 22% increase compared with $7,773 million for the first quarter of 1997.
Revenues from the equipment management, consumer services, mid-market financing
and specialized financing businesses increased $1,324 million (18%) over the
comparable prior-year period. A significant portion of the increase arose from
sales of goods by the computer equipment distribution businesses, reflecting
both acquisition and core growth. The increase also reflected a higher average
level of invested assets, resulting principally from acquisitions of portfolios
and businesses, as well as increased premiums related to the acquisition of a
consumer savings and insurance business in 1997. Revenues of the Specialty
Insurance segment increased $281 million (49%) to $852 million for the first
quarter of 1998 compared with the first quarter of 1997. The increase primarily
reflected increased investment income resulting from origination volume,
continued growth in the investment portfolios and higher gains on investment
securities.
INTEREST EXPENSE for the first quarter of 1998 was $1,948 million, 14% higher
than for the first quarter of 1997. The increase reflected the effects of higher
average borrowings used to finance asset growth combined with the effects of
higher average interest rates. The composite interest rate on the Corporation's
borrowings for the first quarter of 1998 was 6.08% compared with 6.02% in the
first quarter of 1997.
OPERATING AND ADMINISTRATIVE EXPENSES were $2,631 million for the first quarter
of 1998, a 19% increase over the first quarter of 1997. The increase primarily
reflected costs associated with businesses and portfolios acquired over the past
year and higher investment levels.
INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $193 million to
$1,342 million for the first quarter of 1998, compared with the first quarter of
1997. The increase primarily reflected the consumer savings and insurance
business acquired in 1997 and growth in origination volume, partially offset by
improved market conditions in the mortgage insurance business.
PROVISION FOR LOSSES ON FINANCING RECEIVABLES increased to $332 million for the
first quarter of 1998 from $312 million for the first quarter of 1997. These
provisions principally related to private-label and bank credit cards in the
Consumer Services segment that are discussed below under Portfolio Quality. The
increase principally reflects higher average receivable balances as well as
increased delinquencies in the consumer portfolio, consistent with industry
experience.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS (Continued).
DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON
OPERATING LEASES increased $87 million (15%) to $652 million for the first
quarter of 1998 compared with $565 million for the first quarter of 1997. The
increase was principally the result of higher levels of equipment on operating
leases, primarily reflecting automobile and aircraft volume and acquisition
growth.
PROVISION FOR INCOME TAXES was $323 million for the first quarter of 1998 (an
effective tax rate of 29.3%), compared with $301 million for the first quarter
of 1997 (an effective tax rate of 30.2%). The higher provision for income taxes
reflected increased pre-tax earnings subject to statutory rates. The decrease in
the 1998 effective tax rate resulted primarily from increased tax credits and
decreases in taxes on non-U.S. income.
PORTFOLIO QUALITY
FINANCING RECEIVABLES are the financing segment's largest asset and its primary
source of revenues. The portfolio of financing receivables, before allowance for
losses, decreased to $105.8 billion at March 28, 1998, from $106.6 billion at
the end of 1997, primarily reflecting seasonal decreases in the credit card
portfolios, partially offset by origination volume and acquisition growth.
Related allowances for losses at March 28, 1998, aggregated $2.8 billion (2.63%
of receivables - the same as at the end of 1997) and, in management's judgment,
are appropriate given the risk profile of the portfolio. A discussion about the
quality of certain elements of the portfolio of financing receivables follows.
"Nonearning" receivables are those that are 90 days or more delinquent (or for
which collection has otherwise become doubtful) and "reduced- earning"
receivables are commercial receivables whose terms have been restructured to a
below-market yield. The following discussion of the nonearning and
reduced-earning receivable balances and write-off amounts excludes amounts
related to Montgomery Ward Holding Corp. and affiliates, which are separately
discussed below.
CONSUMER FINANCING RECEIVABLES, primarily credit card and personal loans and
auto loans and leases, were $47.6 billion at March 28, 1998, a decrease of $0.5
billion from the end of 1997. Nonearning receivables were $1.0 billion at March
28, 1998, 2.1% of total consumer financing receivables, both of which were
substantially the same as at December 31, 1997. Write-offs of consumer
receivables increased to $356 million for the first quarter of 1998, compared
with $293 million for the first quarter of 1997. This increase was primarily
attributable to higher average receivable balances resulting from a combination
of origination volume and acquisitions of businesses and portfolios as well as
higher delinquencies, consistent with overall industry experience.
OTHER FINANCING RECEIVABLES, totaling $58.2 billion at March 28, 1998 ($58.5
billion at December 31, 1997), consisted of a diverse commercial, industrial and
equipment loan and lease portfolio. Related nonearning and reduced-earning
receivables were $385 million at March 28, 1998, compared with $353 million at
year-end 1997.
As discussed in the Corporation's Annual Report on Form 10-K for the year ended
December 31, 1997, Montgomery Ward Holding Corp. (MWHC) filed a bankruptcy
petition for reorganization in 1997. The Corporation's recorded investment in
MWHC and affiliates at March 28, 1998, was $790 million, a decrease of $5
million from the end of 1997, and consisted primarily of inventory financing.
Income recognition had been suspended on these pre-bankruptcy petition
investments. Subsequent to the petition, the Corporation committed to provide
MWHC up to $1.0 billion in debtor-in-possession financing, subject to certain
conditions, in order to fund working capital requirements and general corporate
expenses. A majority of this facility has been syndicated; the Corporation's
loans under this facility at March 28, 1998 were approximately $81 million. The
Corporation also provides financing to customers of MWHC and affiliates through
the Corporation's wholly-owned affiliates, Montgomery Ward Credit Corporation
and Monogram Credit Card Bank of Georgia. These receivables, which represent
revolving credit card transactions directly with customers of MWHC and
affiliates, aggregated approximately $3.9 billion at March 28, 1998, including
$1.8 billion that have been sold with recourse by the Corporation's affiliates.
The obligations of customers with respect to these receivables are not affected
by the bankruptcy filing. MWHC and its affiliates, under new management since
1997, are continuing their restructuring efforts as well as developing a plan of
reorganization.
The Corporation held loans and leases to commercial airlines amounting to $9.1
billion at March 28, 1998, up from $9.0 billion at the end of 1997.
6
<PAGE>
EXHIBIT 12
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 28, 1998
(Unaudited)
RATIO OF
EARNINGS
TO
COMBINED
FIXED
RATIO OF CHARGES
EARNINGS AND
TO PREFERRED
FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 780 $ 780
Provision for income taxes ............................. 323 323
Minority interest in net earnings of consolidated
affiliates ............................................ 11 11
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,114 1,114
-------- --------
Fixed charges:
Interest ............................................. 1,975 1,975
One-third of rentals ................................. 58 58
-------- --------
Total fixed charges .................................... 2,033 2,033
-------- --------
Less interest capitalized, net of amortization ......... 12 12
-------- --------
Earnings before provision for income taxes and minority
interest, plus fixed charges .......................... $ 3,135 $ 3,135
======== ========
Ratio of earnings to fixed charges ..................... 1.54
========
Preferred stock dividend requirements .................. $ 22
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.41
Preferred stock dividend factor on pre-tax basis ....... 31
Fixed charges .......................................... 2,033
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 2,064
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.52
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
7
<PAGE>
PART II--OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. EXHIBITS.
Exhibit 12. Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed charges
and preferred stock dividends.
Exhibit 27. Financial Data Schedule (filed electronically only).
b. REPORTS ON FORM 8-K.
None.
8
<PAGE>
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 thereunto duly authorized.
GENERAL ELECTRIC CAPITAL CORPORATION
------------------------------------
(Registrant)
Date: May 12, 1998 By: /s/ J.A. Parke
-------------------------------------
J.A. Parke,
Senior Vice President, Finance
(Principal Financial Officer)
Date: May 12, 1998 By: /s/ J.C. Amble
-------------------------------------
J.C. Amble,
Vice President and Controller
(Principal Accounting Officer)
9
<PAGE>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
INDEX TO EXHIBITS
EXHIBIT NO. PAGE
- ----------- --------
12 Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed
charges and preferred stock dividends ............... 7
27 Financial Data Schedule (filed electronically only)
10
<PAGE>
<PAGE>
EXHIBIT 12
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 28, 1998
(Unaudited)
RATIO OF
EARNINGS
TO
COMBINED
FIXED
RATIO OF CHARGES
EARNINGS AND
TO PREFERRED
FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 780 $ 780
Provision for income taxes ............................. 323 323
Minority interest in net earnings of consolidated
affiliates ............................................ 11 11
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,114 1,114
-------- --------
Fixed charges:
Interest ............................................. 1,975 1,975
One-third of rentals ................................. 58 58
-------- --------
Total fixed charges .................................... 2,033 2,033
-------- --------
Less interest capitalized, net of amortization ......... 12 12
-------- --------
Earnings before provision for income taxes and minority
interest, plus fixed charges .......................... $ 3,135 $ 3,135
======== ========
Ratio of earnings to fixed charges ..................... 1.54
========
Preferred stock dividend requirements .................. $ 22
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.41
Preferred stock dividend factor on pre-tax basis ....... 31
Fixed charges .......................................... 2,033
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 2,064
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.52
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 28, 1998, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000040554
<NAME> GENERAL ELECTRIC CAPITAL CORPORATION
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-28-1998
<CASH> 4,358
<SECURITIES> 54,302
<RECEIVABLES> 105,835
<ALLOWANCES> 2,786
<INVENTORY> 808
<CURRENT-ASSETS> 0
<PP&E> 29,531
<DEPRECIATION> 8,028
<TOTAL-ASSETS> 232,278
<CURRENT-LIABILITIES> 0
<BONDS> 42,275
0
2
<COMMON> 768
<OTHER-SE> 18,005
<TOTAL-LIABILITY-AND-EQUITY> 232,278
<SALES> 1,626
<TOTAL-REVENUES> 9,501
<CGS> 1,482
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,631
<LOSS-PROVISION> 332
<INTEREST-EXPENSE> 1,948
<INCOME-PRETAX> 1,103
<INCOME-TAX> 323
<INCOME-CONTINUING> 780
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 780
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
