<PAGE>
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: January 27, 1994
----------------
(Date of earliest event reported)
HELLER FINANCIAL, INC.
----------------------
(Exact name of registrant as specified in its charter)
Delaware
--------
(State or other jurisdiction of incorporation)
1-6157 36-1208070
------ ----------
(Commission File Number) (IRS Employer Identification Number)
500 West Monroe Street, Chicago, Illinois 60661
- ----------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(312) 441-7000
--------------
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
------- ------------
On January 27, 1994, Heller Financial, Inc. (the "Registrant") released its
earnings for calendar year 1993. A copy of the release is attached.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
------- ---------------------------------
(c) Exhibits
99 Heller Financial, Inc. - Report of 1993 Net Income, dated January
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: January 27, 1994
HELLER FINANCIAL, INC.
By: Richard J. Almeida
------------------
Richard J. Almeida
Title: Executive Vice President and
Chief Financial Officer
2
<PAGE>
EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Page
- ------ -------------
99 Heller Financial, Inc. - Report of 4 - 8
1993 Net Income, dated January 27, 1994
3
<PAGE>
Exhibit 99
----------
Heller Financial, Inc.
----------------------
Reports Record 1993 Net Income,
-------------------------------
Improvement in Nonearning Assets
--------------------------------
Chicago -- (January 27, 1994) -- Heller Financial, Inc. reported record 1993
full-year net income available for common stock as well as a significant
improvement in nonearning assets as of year-end 1993, Michael S. Blum, Chairman
and Chief Executive Officer, announced today.
Full-year 1993 net income available for common stock was $105.6 million, a 24
percent increase compared to 1992 net income available for common stock of $85.3
million. Excluding a tax accounting credit recorded in 1992, net income
available for common stock increased 139 percent year to year.
The record increase in earnings was due to continued growth in operating
revenues and reduced credit quality costs. Operating revenues, which grew 11
percent year to year, were driven by strong gains on investments and increased
fees and other income from newer business initiatives, and continued growth in
net interest income. Notably, fees and other income increased 37 percent over
the prior year, largely due to new business initiatives in specialized financing
and investments, real estate and small business loan activities. Net interest
income growth was attributable to improved funding spreads due to the low
interest rate environment coupled with increased turnover in the portfolio.
Operating expenses were slightly higher in 1993 as the company boosted
spending to fund ongoing diversification efforts. This increase in operating
expenses was partially
4
<PAGE>
offset by the benefits of productivity enhancements and expense controls in the
core businesses.
Even though provision for losses declined in 1993, significant progress was
made in writing down and in resolving prior years' problem accounts. Reserves
were maintained at 3 percent of receivables even as the level of problem
accounts receded and the performance of new financings over the past three years
remained strong.
As a result of these efforts, the company continued to make progress toward
achieving one of its major goals, improved asset quality. At year-end 1993,
nonearning assets declined by $119.9 million, a 22 percent reduction from the
prior year. The ratio of nonearning assets to total lending assets was 5.9
percent at year-end 1993 compared to 7.2 percent at year-end 1992.
"Measured against our stated goals to improve earnings and asset quality,
diversify our asset base and strengthen our balance sheet, 1993 was a very
successful year for Heller Financial," said Blum. "In 1993, our record
earnings, together with the steep drop in nonearning assets and the launch of
new business initiatives, significantly strengthened our company.
Diversification remains a top priority at Heller, as evidenced by the 1993
formation of Heller Business Credit and Small Business Finance, investments in
Mexican and Malaysian joint ventures, and the expansion of businesses that were
launched or acquired in 1992."
"Importantly, our low leverage, strong reserves, increased equity through
retained earnings and greater liquidity at year-end combined to give Heller its
strongest balance sheet and most stable credit profile in nearly 10 years,"
added Blum. "We will continue to focus on these important goals in order to
meet our future growth objectives."
5
<PAGE>
Heller Financial, Inc. is a worldwide commercial financial services
organization which is a wholly-owned subsidiary of The Fuji Bank, Limited, one
of the world's largest banks. 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.
6
<PAGE>
HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions)
<TABLE>
<CAPTION>
December 31, December 31,
1993 1992
--------------- ----------------
<S> <C> <C>
Assets
- ------
Cash and cash equivalents $ 170 $ 48
Receivables 7,012 7,419
Less: Allowance for losses 211 221
------ ------
Net receivables 6,801 7,198
Investments and other assets 942 706
------ ------
$7,913 $7,952
====== ======
Liabilities and Stockholders' Equity
- ------------------------------------
Senior debt
Commercial paper and
short-term borrowings $1,981 $2,422
Notes and debentures 3,893 3,521
Junior subordinated notes 75 225
------ ------
Total debt 5,949 6,168
Credit balances of factoring clients 433 408
Other payables and accruals 243 200
------ ------
Total liabilities 6,625 6,776
Minority interest in equity of Heller International
Group, Inc. 35 32
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 1,103 994
------ ------
Total stockholders' equity 1,253 1,144
------ ------
$7,913 $7,952
====== ======
</TABLE>
7
<PAGE>
HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions)
<TABLE>
<CAPTION>
For the year ended December 31,
-------------------------------
1993 1992
------ ------
<S> <C> <C>
Interest income $619.6 $634.2
Interest expense 263.6 295.5
------ ------
Net interest income 356.0 338.7
Fees and other income 137.8 100.6
Income of international joint ventures 22.8 26.6
------ ------
Operating revenues 516.6 465.9
Operating expenses 178.4 171.9
Provision for losses 210.4 251.9
------ ------
Income before taxes and cumulative
effect of a change in accounting principle 127.8 42.1
Income tax provision (benefit) 10.7 (5.0)
------ ------
Income before cumulative effect of a change
in accounting principle 117.1 47.1
Cumulative effect of a change in accounting
principle for income taxes -- 41.1
------ ------
Net income 117.1 88.2
Preferred stock dividends 11.5 2.9
------ ------
Net income available for common stock $105.6 $ 85.3
====== ======
</TABLE>
8
