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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: October 24, 1995
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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)
1
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ITEM 5. OTHER EVENTS
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On October 24, 1995, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ending September 30, 1995. A
copy of the press release is attached.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits
99 Heller Financial, Inc. - Report of Net Income for the quarter ending
September 30, 1995, dated October 24, 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: October 24, 1995
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HELLER FINANCIAL, INC.
By: /s/ Richard J. Almeida
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Richard J. Almeida
Title: Executive Vice President and
Chief Financial Officer
2
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EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Pages
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99 Heller Financial, Inc. - Report of Net Income 4 - 8
for the quarter ending September 30, 1995, dated
October 24, 1995
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[LETTERHEAD OF HELLER FINANCIAL]
John Brooklier
312-441-6184 News Release
Heller Financial, Inc. Reports Growth in
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1995 Third Quarter and Nine Month Net Income
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Chicago -- (October 24, 1995) -- Heller Financial, Inc. reported across the
board growth in 1995 third quarter and nine month net income, income before
taxes and operating revenues compared to the prior year periods, Michael S.
Blum, Chairman and Chief Executive Officer, announced today.
Net income of $35 million for the 1995 third quarter and $99 million for the
nine months represented respective increases of 17 percent and 6 percent
compared to the 1994 periods. For the same periods, income before taxes of $52
million and $150 million also grew 4 percent and 11 percent, respectively.
Operating revenues of $161 million for the 1995 third quarter and $439 million
for the nine months were 11 percent and 7 percent higher than the prior year
periods. The growth in third quarter operating revenues was driven by a 38
percent increase in fees and other income as well as higher income of
international joint ventures. Operating revenues for the nine month period
benefited from a 6 percent growth in net interest income while income of
international joint ventures grew 53 percent largely due to higher earnings from
European joint ventures.
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For the 1995 nine month period, operating expenses were higher principally due
to increased spending on developing businesses which continue to grow their
earning fund levels in line with the company's strategic diversification
initiative. During the balance of 1995, the ratio of operating expenses to
average fund levels is expected to remain relatively stable.
Net writedowns of receivables and repossessed assets and the provision for
losses in the third quarter increased by $12 million and $8 million compared to
the prior year period as the company continued to aggressively resolve problem
accounts. This aggressive account resolution resulted in an 18 percent
reduction in nonearning assets during the third quarter while the company's
newer business portfolios continued to exhibit strong credit quality.
Nonearning assets fell to $306 million or 3.7 percent of total lending assets at
September 30, 1995, compared to $374 million or 4.6 percent at June 30, 1995.
During 1995, the company continued to make progress on a key goal of further
product and asset diversification. Asset based finance, which includes
equipment loans and leases originated directly and through vendor programs,
factoring, working capital finance and small business finance activities, had
grown to approximately one-third of the company's $9.1 billion of lending assets
and investments at the end of the 1995 third quarter.
"We continue to be encouraged by the company's performance on a number of
fronts," said Blum. "Heller's growth in earnings, continuing product and asset
diversification as well as improvement in nonearning assets is consistent with
our short-term goals and long-term direction."
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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 cash flow financing, factoring and working capital loans, equipment
financing and leasing, asset-based finance, real estate financing and equity
investments. The company also operates through joint venture and wholly-owned
companies located in 19 countries in Europe, Asia, Australia and Latin America.
These companies specialize in factoring, asset-based finance, acquisition
finance, leasing, vendor finance and trade finance.
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in millions)
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
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Assets (unaudited)
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<S> <C> <C>
Cash and cash equivalents $ 222 $ 99
Receivables 8,185 7,616
Less: Allowance for losses of receivables 245 231
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Net receivables 7,940 7,385
Investments 702 634
Investments in international joint ventures 225 174
Other assets 202 184
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$9,291 $8,476
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Liabilities and Stockholders' Equity
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Senior debt
Commercial paper and short-term borrowings $2,326 $2,451
Notes and debentures 4,800 3,930
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Total debt 7,126 6,381
Credit balances of factoring clients 473 452
Other payables and accruals 263 274
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Total liabilities 7,862 7,107
Minority interest in equity of Heller International
Group, Inc. 46 39
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 1,233 1,180
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Total stockholders' equity 1,383 1,330
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$9,291 $8,476
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</TABLE>
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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
September 30, September 30,
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1995 1994 1995 1994
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(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income $ 215 $ 188 $ 635 $ 509
Interest expense 117 89 348 238
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Net interest income 98 99 287 271
Fees and other income 54 39 126 122
Income of international
joint ventures 9 7 26 17
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Operating revenues 161 145 439 410
Operating expenses 53 47 155 137
Provision for losses 56 48 134 138
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Income before taxes and
minority interest 52 50 150 135
Income tax provision 15 19 46 39
Minority interest in income of
Heller International Group, Inc. 2 1 5 3
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Net income $ 35 $ 30 $ 99 $ 93
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