<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: October 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)
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ITEM 5. OTHER EVENTS
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On October 22, 1996, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ending September 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
September 30, 1996, dated October 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: October 22, 1996
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HELLER FINANCIAL, INC.
By: /s/ Lauralee E. Martin
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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 September 30, 1996, dated
October 22, 1996
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Heller Financial, Inc. Reports Growth in
----------------------------------------
Net Income for 1996 Nine Month Period
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and Improvement in Nonearning Assets
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Chicago - - (October 22, 1996) -- Heller Financial, Inc. reported growth in
net income for the 1996 nine month period ended September 30, 1996, as well as
improvement in nonearning assets, Richard J. Almeida, Chairman and Chief
Executive Officer, said today.
Net income for the 1996 nine months was $104 million, a five percent
increase over the comparable 1995 period. Third quarter 1996 net income of $35
million was unchanged from the prior year period. For both periods, net income
benefited from sharply reduced credit costs, which were partially offset by a
decline in operating revenues and spending for developing business.
Highlights for the 1996 nine months and third quarter include:
. Total lending assets and investments increased by $270 million, or 3 percent
for the nine months. The post-1990 portfolio grew by 9 percent during the
nine month period, led by a 29 percent increase in lending assets and
investments in the company's largest product category - - asset based
finance. Funds growth was offset by a $404 million, or 26 percent decrease,
in the pre-1990 portfolio.
. Operating revenues were lower for both 1996 periods largely as a result of
the strategic shift in the company's portfolio mix to lower risk, lower
return products and the reduction in assets in the higher yield pre-1990
portfolio. Consistent with this shift, net spread income and investment gains
decreased while other sources of income such as factoring showed growth.
Similarly, income of international joint ventures grew 19 percent and 22
percent for the nine months and third quarter, respectively, primarily due to
strong contributions from European joint ventures.
. Operating expenses increased 9 percent in the third quarter due to
continued investment in the growing asset-based businesses.
. The provision for losses was lower in both periods as a result of the
company's on-going strong credit performance of post-1990 lending assets,
coupled with a decline in writedowns and increased recoveries for the pre-
1990 portfolio. The post-1990 portfolio continued to exhibit excellent credit
quality requiring net writedowns of only $19 million, or approximately 30
basis points of average lending assets on an annualized basis.
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. Overall, the company's credit quality continued to improve. The ratio of
total nonearning assets to total lending assets declined from 3.9 percent at
June 30, 1996, to 3.6 percent at the end of the third quarter. As important,
nonearnings in the post- 1990 portfolio totaled $101 million, or 1.2 percent
of total lending assets, at the end of the third quarter. Reserves as a
percentage of nonearning receivables were 79 percent.
"The dynamics of a transitional year continue to play out. We have built a
more balanced and diversified portfolio consisting of lower risk assets
characterized by more predictable earnings," said Almeida. "We are confident
that investments in our new businesses will lead to improved operating ratios
and a more stable credit profile for Heller."
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 18 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, 1996 December 31, 1995
Assets ------------------ -----------------
- ------ (unaudited)
<S> <C> <C>
Cash and cash equivalents $ 446 $ 599
Total receivables 8,314 8,085
Less: Allowance for losses of receivables 224 229
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Net receivables 8,090 7,856
Investments 737 693
Investments in international joint ventures 244 233
Other assets 210 257
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$9,638 $9,727
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Liabilities and Stockholders' Equity
- ------------------------------------
Senior debt
Commercial paper and short-term borrowings $2,549 $2,223
Notes and debentures 4,837 5,145
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Total debt 7,386 7,368
Credit balances of factoring clients 596 497
Other payables and accruals 241 343
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Total liabilities 8,223 8,208
Minority interest in equity of Heller International
Group, Inc. 54 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 1,300 1,234
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Total stockholders' equity 1,450 1,384
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$9,727 $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 Nine Months Ended
-------------------------- -------------------------
September 30, September 30,
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1996 1995 1996 1995
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income $198 $215 $598 $635
Interest expense 111 117 334 348
---- ---- ---- ----
Net interest income 87 98 264 287
Fees and other income 26 54 89 126
Income of international
joint ventures 11 9 31 26
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Operating revenues 124 161 384 439
Operating expenses 58 53 177 155
Provision for losses 12 56 61 134
---- ---- ---- ----
Income before income taxes
and minority interest 54 52 146 150
Income tax provision 17 15 38 46
Minority interest in income of
Heller International Group, Inc. 2 2 4 5
---- ---- ---- ----
Net income $ 35 $ 35 $104 $ 99
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</TABLE>
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