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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): April 18, 1994
________________________________________________________________________________
GREYHOUND FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7543 94-1278569
________________________________________________________________________________
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
DIAL CORPORATE CENTER, PHOENIX, ARIZONA 85077
________________________________________________________________________________
(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 April 18, 1994 revenues, net
income and selected financial data and ratios for the first quarter of
1994 (unaudited).
A copy of the press release issued by GFC Financial Corporation is
attached as Exhibit 28 to this report.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
<TABLE>
<S> <C>
Exhibit Title
----------------- -----------------------------------------------------------
28 Press Release of Greyhound Financial Corporation
dated April 18, 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: April 19, 1994 By /s/ Bruno A. Marszowski
____________________________________________________
Bruno A. Marszowski, Vice President - Controller
Principal Financial Officer/Authorized Officer
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EXHIBIT 28
Nancy Archer 4/18/94
602/ 207-2821
THESE ARE THE EARNINGS FOR GREYHOUND FINANCIAL CORPORATION
THE PRINCIPAL SUBSIDIARY OF GFC FINANCIAL CORPORATION
WHOSE EARNINGS WERE RELEASED ON APRIL 14, 1994
GREYHOUND FINANCIAL CORPORATION
ANNOUNCES FIRST QUARTER 1994 RESULTS
PHOENIX, Arizona, April 18, 1994 -- Greyhound Financial Corporation ("GFC" or
the "Company") today reported net income for the quarter ended March 31, 1994.
Net income for the first quarter of 1994 was $11.6 million compared to
$8.6 million for the comparable period in 1993 (a 36% improvement). The 1994
results included income from Ambassador Factors, the factoring and asset based
lending company acquired from Fleet Financial Group, Inc. on February 14, 1994.
Sam Eichenfield, President and Chief Executive Officer of GFC, said,
"The acquisition of the Asset Based Finance group in the first quarter of 1993
and the acquisition of Ambassador Factors in the first quarter of 1994
complement the Company's core operations and have contributed to the growth in
funds employed and the resulting improved performance. The pending acquisition
of TriCon Capital Corporation ("TriCon"), which was announced on March 4, 1994,
will further diversify GFC's asset base and expand our focus on value-added
products and services." TriCon is a $1.8 billion niche-oriented provider of
commercial and equipment financing products.
Eichenfield added that portfolio quality remains consistent with
nonearning assets at 3.8% of funds employed after adding Ambassador, which
typically has a higher nonearning asset level (4.2% of its funds employed at
March 31, 1994), up slightly from 3.6% reported at year end.
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Interest earned from financing transactions increased to $72.0 million
in the first quarter of 1994 from $58.3 million for the first quarter of 1993,
an increase of 24%. This rise in interest earned was driven by a 27% increase
in funds employed during the twelve months ended March 31, 1994 resulting from
$1.1 billion of new business being added by the core finance operations during
that period and the acquisition of Ambassador Factors.
The improvement in earnings for the 1994 quarter primarily was due to
the increase in interest margins earned which advanced to $38.1 million for the
first quarter of 1994 from $27.7 million for the same period in 1993. The
higher interest margins, which equate to a 5.6% annualized return on average
earning assets compared to 5.0% for the first quarter of 1993, were
attributable to the growth of the portfolio, a lower effective cost of debt in
1994 and higher fee income principally generated by Ambassador Factors. The
strong improvement in interest margins was more than enough to offset the $2
million reduction in gains on sale of assets, higher provisions for possible
credit losses and the higher selling, administrative and other operating
("operating") expenses.
The higher operating expenses primarily consisted of higher personnel
costs attributable in part to the acquisitions of the Asset Based Finance group
in February 1993 and Ambassador Factors in February 1994.
Income taxes were higher due to higher tax rates in effect during the
first quarter of 1994 and to higher income before taxes.
Finally, Eichenfield noted that on March 28, 1994 the Company filed a
new shelf Registration Statement with the Securities and Exchange Commission
for the sale of up to $1.0 billion of Senior Debt Securities.
Greyhound Financial Corporation is a major domestic commercial finance
company that extends secured financing in selected markets: corporate finance,
transportation, communications, commercial real estate and resort finance.
Greyhound Financial also provides asset based lending, consumer rediscounting
and factoring.
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GREYHOUND FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(UNAUDITED)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1994 1993
-------------------------------
<S> <C> <C>
Interest earned from financing transactions $ 72,004 $ 58,262
Interest expense 33,862 30,568
-------------- --------------
Interest margins earned 38,142 27,694
Provision for possible credit losses 3,250 2,701
Gains on sale of assets 3 2,061
Selling, administrative and other operating
expenses 16,241 13,638
-------------- --------------
Income before income taxes 18,654 13,416
Income taxes 7,058 4,871
-------------- --------------
Net Income $ 11,596 $ 8,545
============== ==============
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GREYHOUND FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA AND RATIOS (UNAUDITED)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
or at or at
March 31, December 31,
--------------------------------- ------------------
1994 (1) 1993 1993
--------------------------------- ------------------
<S> <C> <C> <C>
FINANCIAL DATA:
Average funds employed (AFE) $ 3,059,227 $ 2,535,689 $ 2,666,208
Ending funds employed (EFE) 3,271,882 2,585,534 2,846,571
Average earning assets (2) 2,723,183 2,228,493 2,350,019
Nonaccruing assets 122,707 100,568 102,607
Reserve for possible credit losses 73,057 70,272 64,280
Total debt 2,513,631 2,016,846 2,082,350
Stockholder's equity 392,823 330,245 345,291
New business 254,701 173,935 1,007,794
Write-offs 5,106 2,937 12,575
RATIOS:
Write-offs (annualized) as a % of AFE 0.7% 0.5% 0.5%
Nonaccruing assets as a % of EFE 3.8% 3.9% 3.6%
Reserve for possible credit losses
as a % of:
Ending funds employed 2.2% 2.7% 2.3%
Nonaccruing assets 59.5% 69.9% 62.6%
Interest margins earned (annualized ) as
a % of average earning assets (2) 5.6% 5.0% 5.2%
Selling, administrative and other operating
expenses as a % of interest margins
earned 42.6% 49.2% 47.5%
Total debt to equity 6.4 6.1 6.0
</TABLE>
____________
(1) Includes financial data from Ambassador for the first quarter ended and
at March 31, 1994.
(2) Average earning assets are net of average deferred taxes on leveraged
leases and average nonaccruing assets for the periods presented.
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