<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: July 22, 1996
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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)
<PAGE>
ITEM 5. OTHER EVENTS
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On July 22, 1996, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ending June 30, 1996. 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 June
30, 1996, dated July 22, 1996
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: July 22, 1996
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HELLER FINANCIAL, INC.
By: /s/ Lauralee E. Martin
-------------------------
Lauralee E. Martin
Title: Chief Financial Officer
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EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Pages
- ------ --------------
99 Heller Financial, Inc. - Report of Net Income 4 - 7
for the quarter ending June 30, 1996, dated
July 22, 1996
3
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Heller Financial, Inc. Reports Increases
----------------------------------------
in Net Income for 1996 Second Quarter and Six Months
----------------------------------------------------
Chicago - - (July 22, 1996) -- Heller Financial, Inc. reported growth in
net income for both the 1996 second quarter and six months ended June 30, 1996,
Richard J. Almeida, Chairman and Chief Executive Officer, said today.
Net income for the 1996 second quarter was $35 million, a three percent
increase over the comparable 1995 period. First half 1996 net income was $69
million or eight percent higher than the prior year period. Growth in net income
for both periods was largely due to lower provisions for losses and income
taxes.
Other highlights for the 1996 second quarter and six months include:
. Total lending assets and investments increased during the six months by $148
million to $9.2 billion as strong growth in the asset-based portfolio was
partially offset by a 22 percent reduction in the pre-1990 portfolio.
. The lower risk asset-based finance businesses grew by $479 million or 16
percent since year-end 1995, further establishing itself as the company's
largest product category. The asset-based businesses increased to 38 percent
of the company's total portfolio at June 30, 1996, and also continued to
exhibit strong credit characteristics with less than $3 million of net
writedowns in the first half of 1996.
. While operating revenues declined modestly for both periods, fees and other
income were higher in the 1996 second quarter, and income of international
joint ventures increased for both periods due to contributions from European
joint ventures.
. Operating expenses were higher largely based on continued investment in the
developing asset-based businesses and increased expenditures for marketing and
systems development throughout the company.
. The provision for losses was lower due to the ongoing strong credit
performance of the post-1990 portfolio and $26 million of recoveries in the
six month period. These recoveries were primarily from pre-1990 assets.
Continuing to demonstrate excellent credit quality, the post-1990 portfolio
required only $13 million of net writedowns for the six month period.
. Overall, the company's credit quality was relatively stable. While nonearning
assets increased from 3.6 percent at year-end 1995 to 3.9 percent of total
lending assets at
4
<PAGE>
June 30,1996, nonearning assets for the post-1990 portfolio represented only
$109 million, or 1.3 percent, of total lending assets.
"We are pleased that we continue to make progress toward our goals of
growth in earnings as well as a more balanced and diversified portfolio," said
Almeida. "As important, our overall credit quality remains well within our
targeted range. The credit performance of the post-1990 portfolio continues to
be strong and we continue to aggressively resolve pre-1990 accounts."
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 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>
June 30, 1996 December 31, 1995
-------------- -----------------
Assets (unaudited)
- ------
<S> <C> <C>
Cash and cash equivalents $ 307 $ 599
Total receivables 8,167 8,085
Less: Allowance for losses of receivables 230 229
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Net receivables 7,937 7,856
Investments 771 693
Investments in international joint ventures 235 233
Other assets 225 257
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$9,475 $9,638
====== ======
Liabilities and Stockholders' Equity
- ------------------------------------
Senior debt
Commercial paper and short-term borrowings $2,440 $2,223
Notes and debentures 4,768 5,145
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Total debt 7,208 7,368
Credit balances of factoring clients 522 497
Other payables and accruals 267 343
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Total liabilities 7,997 8,208
Minority interest in equity of Heller International
Group, Inc. 52 46
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 1,276 1,234
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Total stockholders' equity 1,426 1,384
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$9,475 $9,638
====== ======
</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 Six Months Ended
-------------------------- -------------------------
June 30, June 30,
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1996 1995 1996 1995
----- ----- ----- -----
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income $ 198 $ 214 $ 400 $ 420
Interest expense 111 119 223 231
----- ----- ----- -----
Net interest income 87 95 177 189
Fees and other income 31 28 63 72
Income of international
joint ventures 11 9 20 17
----- ----- ----- -----
Operating revenues 129 132 260 278
Operating expenses 60 52 119 102
Provision for losses 25 28 49 78
----- ----- ----- -----
Income before income taxes
and minority interest 44 52 92 98
Income tax provision 9 16 21 31
Minority interest in income of
Heller International Group, Inc. -- 2 2 3
----- ----- ----- -----
Net income $ 35 $ 34 $ 69 $ 64
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</TABLE>
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