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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: October 27, 1994
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(Date of earliest event reported)
HELLER FINANCIAL, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-6157 36-1208070
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(Commission File Number) (IRS Employer Identification Number)
500 West Monroe Street, Chicago, Illinois 60661
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(Address of principal executive offices) (Zip Code)
(312) 441-7000
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
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On October 27, 1994, Heller Financial, Inc. (the "Registrant") released its
earnings for the three and nine month periods ended September 30, 1994. A
copy of the release is attached.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits
99 Heller Financial, Inc. - Report of Net Income Three and Nine Months
Ended September 30, 1994, dated October 27, 1994
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: October 27, 1994
HELLER FINANCIAL, INC.
By: Richard J. Almeida
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Richard J. Almeida
Title: Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Pages
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99 Heller Financial, Inc. - Report of 4-7
Net Income for the Three and Nine Months
Ended September 30, 1994
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[LETTERHEAD OF HELLER FINANCIAL]
For Further Information Contact
John Brooklier NEWS RELEASE
312-441-6184
Heller Financial, Inc.
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Reports Growth in 1994 Third Quarter, Nine Month
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Net Income and Improvement in Nonearning Assets
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Chicago -- (October 27, 1994) -- Heller Financial, Inc. reported growth in
both income before income taxes and net income for the 1994 three month and nine
month periods along with continuing improvement in nonearning assets, Michael S.
Blum, Chairman and Chief Executive Officer, said today.
Income before income taxes was $49.7 million for the 1994 third quarter and
$132.5 million for the nine months, representing respective increases of 71
percent and 43 percent compared to the 1993 periods. Even with the company
approaching full taxpayer status in 1994, net income was $30.4 million for the
third quarter and $93.1 million for the nine months, reflecting growth of 8
percent and 3 percent from the year earlier periods.
Operating revenues of $145.2 million for the three months and $410.3 million
for the nine months were 14 percent and 7 percent higher than the prior year
periods due to growth in fees and other income from several product categories
and a third quarter increase in net interest income. Fees and other income grew
33 percent for the quarter and 25 percent for the nine-month period due to
increased revenues from real estate business initiatives, higher gains from
investments and higher revenues from asset-based
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businesses. The increase in operating expenses principally reflects costs
related to business initiatives in the asset based product category as costs in
other core businesses decreased. As evidence of an improving portfolio, the
provision for losses in 1994 decreased 10 percent and 13 percent from the prior
year periods as the level of problem loans continued to recede and the
performance of financings originated since 1990 remained strong.
The company continues to make consistent progress toward improved asset
quality, one of its major goals. At September 30,1994, nonearning assets had
declined by $116 million, a 27 percent reduction from year-end 1993, and a $202
million reduction from a year ago. The ratio of total nonearning assets to
total lending assets was 4.0 percent at the end of the 1994 third quarter
compared to 5.9 percent at year-end 1993. The company's target range for
nonearning assets is from 3 percent to 5 percent.
"We continue to be optimistic about our long-term prospects due to the solid
growth the company has experienced thus far in 1994 combined with the ongoing
improvement in overall asset quality and the progress we've made in the area of
portfolio diversification," said Blum.
Heller Financial, Inc. is a worldwide commercial financial services
organization which is a wholly-owned subsidiary of The Fuji Bank, Limited, the
world's largest bank. Heller Financial, Inc. provides U.S.-based clients with
corporate financing, real estate financing, factoring and working capital loans,
equipment financing and leasing, asset-based finance and equity investments.
The company also operates in European, Asian, and Latin American countries
through joint venture and wholly-owned companies that specialize in factoring,
asset-based finance, acquisition finance, leasing, vendor finance and/or trade
finance.
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN MILLIONS)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
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September 30, September 30,
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1994 1993 1994 1993
------ ------ ------ ------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income $188.2 $158.0 $509.1 $468.2
Interest expense 89.5 66.4 238.4 200.6
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Net interest income 98.7 91.6 270.7 267.6
Fees and other income 39.9 30.0 122.5 97.8
Income of international
joint ventures 6.6 5.8 17.1 16.5
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Operating revenues 145.2 127.4 410.3 381.9
Operating expenses 47.9 45.8 140.3 131.3
Provision for losses 47.6 52.6 137.5 157.9
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Income before income taxes 49.7 29.0 132.5 92.7
Income tax provision 19.3 .8 39.4 2.2
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Net income $ 30.4 $ 28.2 $ 93.1 $ 90.5
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</TABLE>
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN MILLIONS)
<TABLE>
<CAPTION>
September 30, 1994 December 31, 1993
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(unaudited)
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<S> <C> <C>
Assets
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Cash and cash equivalents $ 323 $ 170
Receivables 7,738 7,012
Less: Allowance for losses on receivables 233 211
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Net receivables 7,505 6,801
Investments and other assets 1,048 942
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$8,876 $7,913
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Liabilities and Stockholders' Equity
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Senior debt
Commercial paper and short-term borrowings $2,582 $1,981
Notes and debentures 4,091 3,893
Junior subordinated notes -- 75
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Total debt 6,673 5,949
Credit balances of factoring clients 557 433
Other payables and accruals 274 243
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Total liabilities 7,504 6,625
Minority interest in equity of Heller International
Group, Inc. 37 35
Stockholders' equity
Cumulative Perpetual Senior Preferred
Stock, Series A 125 125
Cumulative Convertible Preferred
Stock, Series D 25 25
Common stock, additional paid-in
capital and retained earnings 1,185 1,103
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Total stockholders' equity 1,335 1,253
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$8,876 $7,913
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</TABLE>
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