<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 24, 1997
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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 July 24, 1997, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ending June 30, 1997. 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, 1997, dated July 24, 1997
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 25, 1997
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HELLER FINANCIAL, INC.
By: /s/ Lauralee E. Martin
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Lauralee E. Martin
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 Net Income 4 - 7
for the quarter ending June 30, 1997, dated
July 24, 1997
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PRESS RELEASE
Heller Financial, Inc.
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Reports Significant Growth in Net Income for
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1997 Second Quarter, First Half
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Chicago--(July 24, 1997)--Heller Financial, Inc. today reported a 26
percent and 20 percent increase in net income for the 1997 second quarter and
six months ended June 30, 1997, said Richard J. Almeida, Heller's Chairman and
Chief Executive Officer. This strong growth in second quarter and first half
earnings was driven by significant increases in operating revenues and record
new business volume.
Highlights of the company's operating results include:
. Net income of $44 million for the 1997 second quarter and $83 million for the
six month period was $9 million and $14 million higher than the respective
prior year periods. Earnings growth resulted from a 54 percent increase in
operating revenues for the second quarter and a 31 percent boost for the six
months. The company's operating revenues continued to benefit from solid
business fundamentals in the core Heller businesses as evidenced by growth in
net interest income, and fees and other income. The 194 percent increase in
second quarter fees and other income reflected the real estate unit's strong
participation fee income as well as a large gain from a $500 million real
estate securitization completed in June.
. During the quarter, the company completed the acquisition of Factofrance
Heller from its joint venture partner. With Factofrance's results now
accounted for on a consolidated basis, assets increased $1.6 billion,
operating revenues grew $31 million and operating expenses increased $20
million. This acquisition had a modest favorable impact on Heller's net
income as acquisition-related costs offset Factofrance's earnings.
. New business volume for the 1997 six months totaled $2.4 billion, a 30
percent increase over the prior year period. The growth in new business was
fueled by record origination levels in all lending categories. Growth of
originated volume on the balance sheet was partially offset by the strong
liquidity of the portfolio as the result of paydowns, loan sales,
securitizations and syndications.
. Operating expenses for the six months, excluding the impact of Factofrance,
had a lower rate of growth versus the prior year period, mainly due to the
increasing productivity in the growing asset based businesses.
. The provision for losses increased for both the second quarter and six months
due to provisions for asset growth and lower recoveries in comparison to the
prior year periods. The ongoing portfolio continued its strong credit
performance with post-
4
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1990 lending assets requiring only $21 million--or 50 basis points--of net
writedowns during the first six months. The company's ratio of nonearning
assets to total lending assets dropped to 2.9 percent at June 30 from 3.9
percent at mid-year 1996. The company's ongoing portfolio had nonearnings of
only 1.3 percent at June 30, 1997.
. The company also strengthened its capital base during the quarter through the
issuance of $150 million in preferred stock. This preferred stock enables
the company to maintain a very conservative capital structure as Heller's
debt-to-equity ratio remains at 5 to 1.
"There were a number of notable highlights for Heller during this very
successful second quarter," said Almeida. "Our significant earnings
performance, strong new business origination and growing distribution
capability, coupled with the excellent credit quality in our ongoing portfolio,
are clear indications of Heller's growing strength in the marketplace. And with
the new equity we raised, our overall financial position is the strongest since
Heller's acquisition by Fuji Bank."
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 provides U.S.-based clients with equipment
financing and leasing, factoring and working capital loans, collateral-based
financing, cash flow financing, real estate financing, small business lending,
and specialized 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 asset-based finance,
factoring, acquisition finance, leasing, vendor finance and trade finance.
5
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Heller Financial, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(in millions)
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
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Assets (unaudited)
- ------
<S> <C> <C>
Cash and cash equivalents $ 268 $ 296
Receivables 10,109 8,529
Less: Allowance for losses of receivables 250 225
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Net receivables 9,859 8,304
Investments, debt securities, operating leases 881 805
Investments in international joint ventures 193 272
Other assets 407 249
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$11,608 $9,926
======= ======
Liabilities and Stockholders' Equity
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Senior debt
Commercial paper and short-term borrowings $ 3,826 $2,745
Notes and debentures 4,600 4,761
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Total debt 8,426 7,506
Credit balances of factoring clients 1,113 590
Other payables and accruals 368 306
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Total liabilities 9,907 8,402
Minority interest in equity of Heller International
Group, Inc. 58 57
Stockholders' equity
Cumulative Perpetual Senior Preferred
Stock, Series A 125 125
Noncumulative Perpetual Senior
Preferred Stock, Series B 150 -
Cumulative Convertible Preferred
Stock, Series D - 25
Common stock, additional paid-in
capital and retained earnings 1,368 1,317
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Total stockholders' equity 1,643 1,467
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$11,608 $9,926
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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 For the Six Months
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Ended June 30 Ended June 30
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1997 1996 1997 1996
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(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income $238 $198 $446 $400
Interest expense 131 111 247 223
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Net interest income 107 87 199 177
Fees and other income 53 18 79 37
Factoring commissions 30 13 43 26
Income of international
joint ventures 9 11 19 20
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Operating revenues 199 129 340 260
Operating expenses 90 60 152 119
Provision for losses 34 25 56 49
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Income before income taxes
and minority interest 75 44 132 92
Income tax provision 28 9 45 21
Minority interest in income of
Heller International Group, Inc. 3 - 4 2
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Net income $ 44 $ 35 $ 83 $ 69
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</TABLE>
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