<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: April 20, 1998
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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 April 17, 1998, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ending March 31, 1998. A copy
of the press release is attached.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
99 Heller Financial, Inc. - Press Release
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: April 20, 1998
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HELLER FINANCIAL, INC.
By: /s/ Lawrence G. Hund
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Lawrence G. Hund
Title: Executive Vice President and
Controller
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<PAGE>
EXHIBIT INDEX
Exhibit Sequentially
Number Numbered Pages
- ------ --------------
99 Heller Financial, Inc. - Press Release 4-7
3
<PAGE>
Heller Financial, Inc.
Reports Strong Growth in 1998 First Quarter Net Income,
New Business and Operating Revenues
Chicago--April 17, 1998--Heller Financial, Inc. today reported first quarter
1998 net income of $48 million, a 23 percent increase over first quarter 1997.
Net income applicable to common stock was $43 million, up 19 percent from 1997.
The earnings were driven by strong growth in new business volume and operating
revenues, accompanied by continuing strength in the company's credit quality,
said Chairman and Chief Executive Officer Richard J. Almeida.
Highlights of the company's 1998 first quarter results versus the prior year
period include:
. New business volume totaled $1.7 billion, an 80 percent increase over first
quarter 1997. Growth was due to strong originations activity primarily in
Real Estate and Corporate Finance, businesses which have established
positions in their respective markets. New business volume in Real Estate was
concentrated in the CMBS area, which originates fixed rate commercial
mortgages for ultimate securitization. Total lending assets and investments
of $12 billion were marginally higher than year-end 1997 as growth from new
business was offset by the securitization of more than $1 billion of Real
Estate commercial mortgage receivables in the 1998 first quarter. The company
did not retain any residual risk in this securitization.
. Operating revenues for the quarter were $186 million, up 32 percent from the
prior year period. Operating revenues reflected growth in both net interest
income and non-interest income, including substantial increases in fees and
other income as well as factoring commissions. Growth in fees and other
income was due to higher fee income, greater net investment gains and income
from the Real Estate securitization transaction. The April 1997 consolidation
of Factofrance increased operating revenues by $27 million in the first
quarter of 1998 versus the first quarter of 1997. Heller's increased
ownership of Factofrance had a modest favorable impact on 1998 first quarter
net income as earnings were offset by the costs of the acquisition.
. Operating expenses, excluding the impact of the Factofrance consolidation,
increased 18 percent for the 1998 first quarter. Growth in expenses was
primarily related to investment in developing leadership positions in the
asset based finance and Real Estate CMBS businesses.
. The portfolio continued to demonstrate strong credit performance with net
writedowns totaling only $15 million, or 60 basis points, during the quarter
compared to net writedowns of $21 million, or 100 basis points, in the prior
year period. The company's level of nonearning assets, which represented only
1.6 percent of total lending assets, also reflected the strong credit quality
of the portfolio. The company's allowance for losses remained at 2.4 percent
of total receivables.
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"The company's strong performance in the 1998 first quarter is consistent with
our objectives to grow our earnings and assets through building leadership
positions in our businesses," said Almeida. "We'll continue to emphasize our
strong client orientation and productive origination network. Our focus on
growth, however, is always balanced by our emphasis on credit discipline."
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 equipment
financing and leasing, factoring and working capital loans, asset based
financing, cashflow financing, real estate financing, small business lending,
and project financing investments. The company also operates through joint
ventures and subsidiaries located in 19 countries in Europe, Asia/Pacific, and
Latin America. These companies specialize in factoring, asset based financing,
acquisition financing, leasing, vendor financing and trade finance.
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<PAGE>
Heller Financial, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(in millions)
<TABLE>
<CAPTION>
March 31, 1998 Dec. 31,1997
-------------- ------------
Assets (unaudited)
- ------
<S> <C> <C>
Cash and cash equivalents $ 506 $ 821
Receivables 10,676 10,722
Less: Allowance for losses of receivables 261 261
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Net receivables 10,415 10,461
Investments 1,069 994
Investments in international joint ventures 197 198
Other assets 413 387
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$12,600 $12,861
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Liabilities and Stockholders' Equity
- ------------------------------------
Senior debt
Commercial paper and short-term borrowings $ 3,273 $ 3,432
Notes and debentures 5,813 6,004
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Total senior debt 9,086 9,436
Subordinated note payable to shareholder 450 -
Credit balances of factoring clients 1,280 1,255
Other payables and accruals 434 405
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Total liabilities 11,250 11,096
Minority interest 87 87
Stockholders' equity
Preferred stock 275 275
Common stockholders' equity 988 1,403
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Total stockholders' equity 1,263 1,678
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$12,600 $12,861
======= =======
</TABLE>
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<PAGE>
Heller Financial, Inc. and Subsidiaries
Consolidated Condensed Statements of Income
(in millions)
<TABLE>
<CAPTION>
For the Three Months
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Ended March 31,
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1998 1997
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(unaudited)
<S> <C> <C>
Interest income $ 254 $ 208
Interest expense 155 116
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Net interest income 99 92
Fees and other income 53 26
Factoring commissions 27 13
Income of international joint ventures 7 10
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Operating revenues 186 141
Operating expenses 94 62
Provision for losses 15 22
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Income before income taxes
and minority interest 77 57
Income tax provision 27 17
Minority interest 2 1
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Net income $ 48 $ 39
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Dividends on preferred stock $ 5 $ 3
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Net income applicable to common stock $ 43 $ 36
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</TABLE>
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