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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C, 20549
____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 20, 1994
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GREYHOUND FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7543 94-1278569
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
DIAL CORPORATE CENTER, PHOENIX, ARIZONA 85077
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 602/207-6900
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Item 5. Other Events.
Greyhound Financial Corporation, the principal operating company of
GFC Financial Corporation, announced on July 20, 1994 revenues, net
income and selected financial data and ratios for the second quarter
and six months ended June 30, 1994 (unaudited).
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
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Exhibits Title
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<S> <C>
28 Press Release of Greyhound Financial Corporation
dated July 20, 1994
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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 thereunto duly authorized.
GREYHOUND FINANCIAL CORPORATION
(Registrant)
Dated: July 20, 1994 By /s/ Bruno A. Marszowski
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Bruno A. Marszowski, Vice President - Controller
Principal Financial Officer/Authorized Officer
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GREYHOUND FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(UNAUDITED)
(Dollars in Thousands)
Quarter Ended Six Months Ended
June 30, June 30,
---------------------------------- ----------------------------------
1994 1993 1994 1993
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Interest earned from
financing transactions $ 113,567 $ 62,356 $ 185,571 $ 120,618
Interest expense 53,648 31,423 87,510 61,991
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Interest margins earned 59,919 30,933 98,061 58,627
Provision for possible
credit losses 4,888 827 8,138 3,528
Gains on securitizations
and sale of assets 4,500 179 4,503 2,240
Selling, administrative and
other operating expenses 28,964 14,195 45,205 27,833
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Income before income taxes 30,567 16,090 49,221 29,506
Income taxes 13,050 5,767 20,108 10,638
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Net Income $ 17,517 $ 10,323 $ 29,113 $ 18,868
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<TABLE>
<CAPTION>
GREYHOUND FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA AND RATIOS (UNAUDITED)
(Dollars in Thousands)
Six Months Ended Year Ended or at
or at June 30, December 31,
------------------------------- -------------------
1994 (1) 1993 (4) 1993 (4)
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<S> <C> <C> <C>
FINANCIAL DATA:
Average funds employed (AFE) and
securitizations (2) $3,760,512 $ 2,537,904 $ 2,666,208
Ending funds employed (EFE) 5,113,805 2,589,963 2,846,571
Securitizations (2) 345,752
Average earning assets (3) 3,316,497 2,229,913 2,350,019
Nonaccruing assets 187,044 101,384 102,607
Reserve and accrued liabilities for
possible credit losses 134,185 67,512 64,280
Total debt 3,966,411 2,012,407 2,082,350
Stockholder's equity 746,645 337,184 345,291
New business 698,658 351,656 1,007,794
Factoring volume 367,604
Write-offs:
Quarter 6,915 3,735
Year-to-date 12,021 6,672 12,575
RATIOS:
Write-offs (annualized) as a % of AFE
and securitizations 0.6% 0.5% 0.5%
Nonaccruing assets as a % of EFE and
securitizations (2) 3.4% 3.9% 3.6%
Reserve and accrued liabilities for possible
credit losses as a % of:
Ending funds employed and securitizations (2) 2.5% 2.6% 2.3%
Nonaccruing assets 71.7% 66.6% 62.6%
Interest margins earned (annualized) as a %
of average earning assets (3) 5.9% 5.3% 5.2%
Selling, administrative and other operating
expenses as a % of interest margins earned 46.1% 47.5% 47.5%
Total debt to equity 5.3 6.0 6.0
</TABLE>
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(1) Includes financial results from the acquisitions of Ambassador (February
14, 1994) and TriCon (April 30, 1994).
(2) Securitizations are assets sold under securitization agreements and
managed by TriCon.
(3) Average earning assets are net of average deferred taxes on leveraged
leases and average nonaccruing assets for the periods presented.
(4) The 1993 periods exclude TriCon and Ambassador.
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EXHIBIT 28
Nancy Archer Embargo until
602/ 207-2821 8:00 a.m. (E.D.T.)
7/20/94
THESE ARE THE EARNINGS FOR GREYHOUND FINANCIAL CORPORATION
THE PRINCIPAL SUBSIDIARY OF GFC FINANCIAL CORPORATION
______________________________________________________
WHOSE EARNINGS WERE RELEASED JULY 19, 1994
GREYHOUND FINANCIAL CORPORATION
ANNOUNCES SECOND QUARTER RESULTS
PHOENIX, Arizona, July 20, 1994 -- Greyhound Financial Corporation (the
"Company") today announced results for the second quarter and six months ended
June 30, 1994.
Net income for the second quarter of 1994 was $17.5 million compared
with $10.3 million for the comparable period in 1993, an increase of 70% in net
income. The 1994 results include income for a full quarter from Ambassador
Factors ("Ambassador"), the factoring and asset based lending company acquired
on February 14, 1994, and two months of income from TriCon Capital ("TriCon"),
which was acquired on April 30, 1994.
Sam Eichenfield, Chairman and Chief Executive Officer of the Company,
said: "The Company's operations have expanded significantly with the
acquisitions of Ambassador and TriCon in 1994 and the improved results for the
second quarter reflect the contribution of these two operations. Additionally,
we expect our recently announced cost saving initiatives at TriCon, which are
expected to result in personnel reductions of at least 10% over the next
several months, to contribute to the future performance of the Company."
Portfolio quality (nonearning assets as a percent of funds employed)
continues to remain at historic levels and was 3.7% of funds employed at June
30, 1994, an improvement from 3.8% at the
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end of the first quarter of 1994. Nonearnings, measured as a percent of funds
employed and securitizations, declined further to 3.4% at June 30, 1994.
Interest margins earned, which drive the Company's performance, were
strong at 5.9% of average earning assets. This measurement compares to 5.3%
for the 1993 period and reflects the contributions of the acquisitions made in
1994 as well as the continuing strong returns of the core financial operations.
The strong interest margins more than offset the higher provisions for possible
credit losses and the higher selling, administrative and other operating
expenses (collectively "operating expenses").
The higher loss provisions are attributable to the operations of the
acquisitions made in 1994 and are consistent with the dynamics and loss
experience of the businesses acquired.
The higher operating expenses are attributable primarily to the
acquisitions of TriCon and Ambassador in 1994. The running rate of these
expenses (measured as a percent of interest margins earned) declined to 46.1%
(for the combined entities) in 1994 from 47.5% for the Company (which excluded
TriCon and Ambassador) in 1993. The recently announced cost saving initiatives
are expected to reduce this running rate for expenses even further in the
future.
Earnings also benefited from strong portfolio growth (new business
volume was up by 99% to $699 million for the first six months of 1994 from $352
million for the 1993 period) and securitization gains of $4.0 million ($2.4
million after-tax) generated by TriCon in the second quarter.
Income taxes were higher due to higher tax rates in effect during the
second quarter of 1994 and to higher income before taxes.
Greyhound Financial Corporation, with assets in excess of $5.0
billion, is a Phoenix-based major domestic commercial finance company providing
secured lending to middle-market companies, making loans from $500,000 to $35
million. The Company also offers financing programs to manufacturers,
distributors, vendors and franchisors to facilitate the sale of their products
to end- users.
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