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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: January 27, 1995
(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)
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ITEM 5. OTHER EVENTS
On January 27, 1995, Heller Financial, Inc. (the "Registrant") released its
earnings for calendar year 1994. A copy of the release is attached.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Heller Financial, Inc. - Report of 1994 Net Income, dated
January 27, 1995
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, 1995
HELLER FINANCIAL, INC.
By: Richard J. Almeida
Richard J. Almeida
Title: Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Pages
- ------ --------------
99 Heller Financial, Inc. - Report of 1994 Net 4 - 8
Income, dated January 27, 1995
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Heller Financial, Inc.
Reports Record 1994 Pre-Tax Income and
Net Income as well as Improvement in Nonearning Assets
Chicago -- (January 27, 1995) -- Heller Financial, Inc. reported record
1994 pre-tax income and net income as well as a continuing improvement in the
level of nonearning assets, Michael S. Blum, Chairman and Chief Executive
Officer, announced today.
Heller Financial's full-year 1994 income before taxes of $174 million
represents an increase of $41 million, or a 31 percent gain over 1993. The
sizable increase in income before taxes is mainly due to higher fees and other
income from several product categories and a lower provision for losses as
portfolio quality continued to improve.
Despite the significant growth in pre-tax income, the 1994 record net
income of $118 million was only slightly higher than in 1993. This was largely
the result of the $40 million increase in the provision for income taxes year
to year as the company approaches full taxpayer status.
Operating revenues of $557 million in 1994 were driven by a 23 percent
increase in fees and other income. The fees and other income increased due to
higher revenues
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from certain real estate activities, higher gains from equity interests and
investments, and higher revenues from asset based businesses.
Operating expenses were higher largely as a result of increased spending on
developing businesses in the asset based product category. While the company
will continue to spend appropriately to develop these new businesses, the rate
of increased spending will slow as the businesses mature.
The provision for losses declined in 1994 by $22 million year to year as
the level of problem loans continued to recede and the performance of
financings completed over the past four years remained strong.
In line with a key company objective, asset quality continues to improve.
Among the more significant achievements in 1994 was the further reduction of
nonearning assets to $303 million, a $127 million decrease from year-end 1993.
Nonearning assets were 4 percent of total lending assets at year-end 1994,
well within the company's targeted 3 percent to 5 percent range, compared with
5.9 percent at the end of 1993. Despite the improvement in asset quality, the
allowance for losses was maintained at 3 percent of receivables.
"These 1994 results are on-target with the strategic and operating goals we
set for ourselves three years ago," said Blum. "We continue to both grow and
diversify our sources of income across business lines, industries, deal size
and geographic regions. Credit quality costs continue to decline and our
current capital position is strong with a growing equity base, low leverage, a
strong reserve position and conservative liquidity."
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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.
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions)
<TABLE>
<CAPTION>
December 31, 1994 December 31, 1993
----------------- -----------------
<S> <C> <C>
Assets
- ------
Cash and cash equivalents $ 99 $ 170
Receivables 7,585 7,012
Less: Allowance for losses 227 211
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Net receivables 7,358 6,801
Investments 634 370
Investments in international joint ventures 174 144
Other assets 211 428
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$ 8,476 $ 7,913
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Liabilities and Stockholders' Equity
- ------------------------------------
Senior debt
Commercial paper and short-term borrowings $ 2,451 $ 1,981
Notes and debentures 3,930 3,893
Junior subordinated notes -- 75
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Total debt 6,381 5,949
Credit balances of factoring clients 452 433
Other payables and accruals 274 243
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Total liabilities 7,107 6,625
Minority interest 39 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 1,180 1,103
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Total stockholders' equity 1,330 1,253
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$ 8,476 $ 7,913
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</TABLE>
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions)
<TABLE>
<CAPTION>
For the Year Ended December 31,
-------------------------------------------
1994 1993
-------------- ---------------
<S> <C> <C>
Interest income $ 702 $ 620
Interest expense 336 264
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Net interest income 366 356
Fees and other income 170 138
Income of international joint ventures 21 23
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Operating revenues 557 517
Operating expenses 195 174
Provision for losses 188 210
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Income before income taxes 174 133
Income tax provision 51 11
Minority interest 5 5
--------- ----------
Net income $ 118 $ 117
========= ==========
</TABLE>
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