<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: April 20, 1999
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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 April 20, 1999, Heller Financial, Inc. (the "Registrant") issued a press
release announcing its earnings for the quarter ended March 31, 1999. The 8-K
filed on April 20, 1999 had an incorrect press release attached as an exhibit.
This amendment is being filed to attach the correct press release.
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, 1999
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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
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99 Heller Financial, Inc. - Press Release 4-10
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HELLER FINANCIAL REPORTS RECORD FIRST QUARTER 1999 NET INCOME, IMPROVED
EFFICIENCY, CONTINUED EXCELLENT CREDIT QUALITY
(Chicago, IL, April 20, 1999) -- Heller Financial, Inc. (NYSE: HF) today
reported record net income of $57 million for the first quarter of 1999, an
increase of 19 percent over the first quarter of 1998. Net income applicable to
common stock was $50 million, a 16 percent increase over the prior year period.
Earnings per share were $0.55 on a fully diluted basis, an increase of 15
percent over the first quarter of 1998. Heller's earnings growth for the
quarter was driven by growth in lending assets and investments, strong factoring
volume, improvement in the Company's operating efficiency and net interest
margin, and the continued excellent credit quality of the Company's portfolio.
"This quarter's solid results clearly demonstrate that we are tracking
right to our plan" said Chairman and Chief Executive Officer Richard J. Almeida.
"Our net interest margin is increasing, our efficiency ratio is improving, the
credit quality in our portfolio remains excellent, and our balance sheet is
growing as we expected. Our originations pipeline is strong, we have a solid
backlog of approved and committed transactions, and our business has outstanding
momentum."
Operating highlights:
Heller's U.S. and international new business volume totaled $1.2 billion
for the first quarter. Exclusive of Real Estate CMBS volume, Heller's new
business volume grew two percent over the first quarter of 1998. New business
growth was strongest in Heller's Leasing Services and Small Business Finance
units. As of March 31, 1999, Heller's total lending assets and investments had
grown to $13.7 billion, up 15 percent from March 31, 1998.
Heller's total factoring volume was nearly $5.1 billion for the quarter, an
increase of 15 percent for the quarter over the prior year period. Growth was
due to the continued performance of Factofrance, Heller's wholly owned French
factoring subsidiary and the largest factoring company in France. Factofrance's
factoring volume increased 19 percent compared to the first quarter of 1998.
Heller Financial remains the largest factoring company in the world.
Operating revenues for the quarter were $223 million, a 20 percent increase
over the first quarter of 1998. Growth in operating revenues was due to
increases in both net interest income and non-interest income. Heller's net
interest income as a percentage of average funds employed (AFE) improved to 3.8
percent for the quarter, up from 3.6 percent during the first quarter of 1998.
Total operating revenues improved to 7.5 percent of AFE, compared to 6.7 percent
during the first quarter 1998.
Credit quality in Heller's portfolio remained excellent. Net writedowns for
the quarter totaled $22 million or 0.7 percent of average lending assets, up
modestly from 0.6 for the same period in 1998, and still below Heller's stated
writedown target. Heller's nonearning assets remained low at $219 million or
1.8 percent of total lending assets, unchanged from the prior quarter. The
Company's loan loss reserve was unchanged at 2.3 percent of receivables and
remains in excess of 100 percent of nonearning receivables.
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Operating expenses for the first quarter were $108 million, compared to $94
million in the first quarter of 1998, a 15 percent increase. Operating
expenses, adjusted for the impact of Heller's acquisition of certain assets from
the Dealer Products Group of Dana Commercial Credit Corporation, increased only
$3 million or three percent compared to the prior year period. Heller's
efficiency ratio for the first quarter improved to 48 percent compared to 51
percent for the first quarter of 1998, reflective of Heller's continuing focus
on improving operating efficiency.
"We're proud of Heller's consistent ability to deliver on our commitments
to our clients and our shareholders" said Almeida. "We remain focused on
building our business franchises, providing value added financing to our
clients, maintaining our disciplined credit standards, improving margins,
controlling expense growth, and delivering strong earnings growth and improving
returns to our shareholders."
Heller Financial, Inc. is a worldwide commercial finance company providing
a broad range of financing solutions to middle-market and small business
clients. With $14 billion in owned and managed assets, Heller offers equipment
financing and leasing, vendor and sales finance programs, factoring and working
capital loans, collateral- and cash flow-based financing, and financing for
commercial real estate. The Company also offers trade finance, factoring, asset-
based lending, leasing and vendor finance products and programs to clients in
Europe, Asia, Australia and Latin America. Heller's common stock is listed as
"HF" on the New York and Chicago Stock Exchanges. Heller's website is
http://www.hellerfin.com.
Certain statements made herein are or may be deemed to be forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. No assurances can be given
that any predicted results will actually be achieved and actual results could
differ materially from those predicted as the result of the factors discussed in
the Company's periodic reports filed with the Securities and Exchange
Commission.
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in millions)
<TABLE>
<CAPTION>
ASSETS
March 31, December 31,
1999 1998
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(unaudited) (audited)
<S> <C> <C>
Cash and cash equivalents........................ $ 873 $ 529
Receivables...................................... 12,081 11,854
Less: Allowance for losses of receivables........ 277 271
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Net receivables............................. 11,804 11,583
Investments...................................... 1,404 1,338
Investments in international joint ventures...... 222 235
Other assets..................................... 692 681
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Total assets................................ $14,995 $14,366
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LIABILITIES AND STOCKHOLDERS' EQUITY
Senior debt
Commercial paper and short-term borrowings...... $ 3,885 $ 3,681
Notes and debentures............................ 7,220 6,768
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Total senior debt........................... 11,105 10,449
Credit balances of factoring clients............. 1,360 1,441
Other payables and accruals...................... 534 504
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Total liabilities........................... 12,999 12,394
Minority interest................................ 10 10
Stockholders' equity
Preferred stock................................ 400 400
Common stockholders' equity.................... 1,586 1,562
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Total stockholders' equity.................. 1,986 1,962
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Total liabilities and stockholders' equity.. $14,995 $14,366
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</TABLE>
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in millions, except per share information)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
1999 1998
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<S> <C> <C>
Interest Income.............................................. $ 262 $ 254
Interest Expense............................................. 149 155
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Net interest income........................................ 113 99
Fees and other income........................................ 74 53
Factoring commissions........................................ 28 27
Income of international joint ventures....................... 8 7
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Operating revenues......................................... 223 186
Operating expenses........................................... 108 94
Provision for losses......................................... 29 15
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Income before income taxes and minority interest........... 86 77
Income tax provision......................................... 29 27
Minority interest............................................ - 2
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Net income................................................. $ 57 $ 48
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Dividends on preferred stock............................... $ 7 $ 5
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Net income applicable to common stock.................... $ 50 $ 43
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Basic net income applicable to common
stock per share (1).................................... $0.56 $0.84
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Diluted net income applicable to common
stock per share (1).................................... $0.55 $0.84
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Pro forma basic net income applicable to
common stock per share (1)............................. $0.56 $0.48
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Pro forma diluted net income applicable to
common stock per share (1)............................. $0.55 $0.48
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</TABLE>
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HELLER FINANCIAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(unaudited)
<TABLE>
<CAPTION>
SELECTED DATA AND RATIOS For the Three Months
(dollars in millions) Ended March 31,
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1999 1998
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<S> <C> <C>
Profitability:
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Pro forma net income applicable to common
stock per share (1):
Basic $0.56 $0.48
Diluted $0.55 $0.48
Net income applicable to common stock per
share (actual) (1):
Basic $0.56 $0.84
Diluted $0.55 $0.84
Return on average common stockholders'
equity (2) 12.9% 13.9%
Return on AFE (3) 1.9% 1.7%
Net interest income as a percentage of
AFE (3) 3.8% 3.6%
Non-interest operating revenues as a
percentage of AFE (3) 3.7% 3.1%
Total operating revenues as a percentage of
AFE (3) 7.5% 6.7%
Operating expenses as a percentage of
AFE (3) 3.6% 3.4%
Operating expenses to operating revenues 48.4% 50.5%
Operating expenses to AMA (4) 3.2% 3.2%
Gross writedowns $ 27 $ 20
Gross recoveries $ 5 $ 5
</TABLE>
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<TABLE>
<CAPTION>
March 31, December 31, March 31,
1999 1998 1998
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<S> <C> <C> <C>
Credit Quality:
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Ratio of earning loans delinquent 60 days or more
to receivables 1.1% 1.6% 1.4%
Ratio of total nonearning assets to total lending
assets 1.8% 1.8% 1.6%
Ratio of net writedowns to average lending assets 0.7% 0.7% 0.6%
Ratio of allowance for losses of receivables to
receivables 2.3% 2.3% 2.4%
Ratio of allowance for losses of receivables to
nonearning receivables 129% 130% 171%
</TABLE>
<TABLE>
<CAPTION>
March 31, December 31, March 31,
--------- ------------ ---------
1999 1998 1998
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<S> <C> <C> <C>
Leverage:
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Ratio of debt (net of short-term investments) to
total stockholders' equity 5.3x 5.2x 7.0x
Ratio of commercial paper and short-term
borrowings to total debt 35% 35% 36%
Other: (dollars in millions)
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Total lending assets and investments $13,711 $13,430 $11,955
Total common stockholders' equity 1,586 1,562 988
Average common stockholders' equity 1,574 1,392 1,252
Funds employed (3) 12,351 11,989 10,675
Average funds employed (3) 12,128 11,814 11,304
Managed assets (4) 13,977 13,664 11,819
Average managed assets (4) 13,641 13,007 11,810
</TABLE>
(1) Based on 90,077,000 basic and 90,091,000 diluted weighted average shares of
common stock outstanding for the three months ended March 31, 1999. The diluted
weighted average shares as of March 31, 1999, include the effect of 2.4 million
stock options issued to management of the Company.
(2) Return on average common stockholders' equity is computed as net income
less preferred stock dividends paid, divided by average total common
stockholders' equity.
(3) Funds employed include lending assets and investments, less credit balances
of factoring clients.
(4) Total managed assets include funds employed, plus receivables previously
securitized or sold and currently managed by the Company. At March 31, 1999,
managed assets includes $41 million from the 1995 real estate securitization,
$109 million from the 1997 equipment securitization in which the Company has not
retained any credit risk, $393 million from the 1998 sale of equipment
receivables to a conduit in which the Company has retained approximately $14
million, $442 million of loans sold or securitized which are fully guaranteed by
the U.S. Government through a Small Business Administration Program, $475
million from the sale of factored accounts receivable and $166 million from the
sale of Factofrance's factored accounts receivable.
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LENDING ASSETS AND INVESTMENTS
<TABLE>
<CAPTION>
March 31, December 31, March 31,
BY BUSINESS SEGMENT 1999 1998 1998
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(dollars in millions)
<S> <C> <C> <C>
Domestic Commercial Finance Segment
Corporate Finance $ 4,083 $ 3,784 $ 3,559
Real Estate Finance 2,099 2,044 1,763
Leasing Services 2,950 2,840 2,199
Small Business Finance 1,024 1,013 823
Commercial Services 524 401 481
Other 569 687 818
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Total Domestic Commercial Finance Segment $11,249 $10,769 $ 9,643
International Factoring and Asset
Based Finance Segment 2,462 2,661 2,312
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Total lending assets and investments $13,711 $13,430 $11,955
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</TABLE>
<TABLE>
<CAPTION>
FEES AND OTHER INCOME
(dollars in millions) For the Three Months
Ended March 31,
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1999 1998
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<S> <C> <C>
Factoring commissions $ 28 $ 27
Income of international joint ventures 8 7
Fees and other income:
Fee income and other 41 25
Net investment gains 33 17
Securitization income - 11
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Total fees and other income $ 74 $ 53
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Total non-interest income $ 110 $ 87
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</TABLE>
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