<PAGE>
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: January 27, 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 January 27, 1997, Heller Financial, Inc. (the "Registrant") released its
earnings for calendar year 1996. A copy of the release is attached.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits
99 Heller Financial, Inc. - Report of 1996 Net Income, dated January 27, 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: January 27, 1997
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HELLER FINANCIAL, INC.
By: 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
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99 Heller Financial, Inc. - Report of 1996 Net 4 - 7
Income, dated January 27, 1997
<PAGE>
John Brooklier
312-441-6184
HELLER FINANCIAL, INC.
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REPORTS RECORD 1996 NET INCOME
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AND CONTINUING IMPROVEMENT IN ASSET QUALITY
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Chicago--(January 27, 1997)--Heller Financial, Inc. today reported record
net income for full-year 1996 along with continued strong growth in its asset-
based businesses and improvement in the company's overall asset quality, said
Chairman and Chief Executive Officer Richard J. Almeida.
Highlights of the company's 1996 full-year results compared to 1995 include:
. New business volume which exceeded $4.0 billion--spread across both newer and
established franchise businesses--helped drive overall asset growth. Total
lending assets and investments increased by $581 million, or 6 percent, even
with the significant reduction in the pre-1990 portfolio. The company made
further progress toward its goal of diversifying assets and building a more
balanced portfolio. During 1996, Heller's six asset-based businesses grew by
more than $1 billion, or 35 percent, in lending assets and investments and now
comprise the company's largest product category at 44 percent of the
portfolio. As important, the company is rapidly approaching its goal of no
single business representing more than 25 percent of the portfolio.
. Net income for 1996 was $133 million, a 6 percent increase over the prior
year, and the fourth consecutive year of record earnings. Growth in net income
was mainly the result of a significantly lower provision for losses--
reflecting the company's improving credit quality--which more than offset
reduced operating revenues and increased spending for developing businesses.
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. The reduction in operating revenues reflects the shift in the portfolio to
lower-risk, lower-priced products coupled with lower net gains from the
sale of investments and a decline in the level of fee accelerations.
Offsetting these declines, income of international joint ventures increased
26 percent year to year and the domestic factoring business showed strong
volume growth of 14 percent.
. The provision for losses decreased dramatically due to the excellent credit
quality of the post-1990 portfolio as well as lower writedowns and
increased recoveries in the pre-1990 portfolio. Assets in the pre-1990
portfolio fell by $547 million and now make up only 10 percent of the
company's total portfolio. During 1996, net writedowns on the post-1990
portfolio totaled only $41 million, or 50 basis points, of total average
lending assets versus $45 million, or 56 basis points, in 1995. Recoveries
totaled $55 million in 1996. The company's nonearning assets fell to 3.3
percent of total lending assets at year-end 1996 compared to 3.6 percent
for the prior year. Nonearnings of $278 million at the end of 1996
represent the third consecutive year of declining nonearning asset levels.
"We're pleased that the company continues to realize asset and earnings
growth, particularly since both important categories reflect contributions from
a broad mix of both our newer and our more established businesses," said
Almeida. "Equally important is our consistent focus on improving credit quality
and diversifying our portfolio, areas in which we continue to make significant
progress."
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 and specialized equity investments, factoring and working
capital loans, equipment financing and leasing, asset-based finance and real
estate financing. 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>
December 31, 1996 December 31, 1995
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<S> <C> <C>
Assets
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Cash and cash equivalents $ 296 $ 599
Receivables 8,529 8,085
Less: Allowance for losses of receivables 225 229
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Net receivables 8,304 7,856
Investments 805 693
Investments in international joint ventures 272 233
Other assets 249 257
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$9,926 $9,638
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Liabilities and Stockholders' Equity
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Senior debt
Commercial paper and short-term borrowings $2,745 $2,223
Notes and debentures 4,761 5,145
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Total debt 7,506 7,368
Credit balances of factoring clients 590 497
Other payables and accruals 306 343
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Total liabilities 8,402 8,208
Minority interest in equity of Heller International
Group, Inc. 57 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 1,317 1,234
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Total stockholders' equity 1,467 1,384
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$9,926 $9,638
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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 Year Ended
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December 31,
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<S> <C> <C>
1996 1995
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Interest income $ 807 $ 851
Interest expense 452 464
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Net interest income 355 387
Fees and other income 134 198
Income of international joint ventures 44 35
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Operating revenues 533 620
Operating expenses 247 216
Provision for losses 103 223
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Income before taxes and
minority interest 183 181
Income tax provision 43 49
Minority interest in income of
Heller International Group, Inc. 7 7
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Net income $ 133 $ 125
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</TABLE>
