<PAGE>
Exhibit 99
[LOGO OF HELLER]
Heller Financial, Inc.
500 West Monroe Street
Chicago, Illinois 60661
312/441-7000
--------------------------------------------------------------------------------
For Further Information Contact News Release
Dan Murphy/Investor Relations
312/441-7642
Peter Duckler or Pamela Flores
HLB Communications, Inc.
312/649-0371
Heller Financial Reports Second Quarter Net Income of $70 million, EPS of $.65
------------------------------------------------------------------------------
Chicago--(July 20, 2000)--Heller Financial, Inc. (NYSE: HF) today reported net
income of $70 million for the second quarter of 2000, an increase of 21 percent
over second quarter 1999. Net income applicable to common stock was $63 million,
an increase of 24 percent over the prior year period. Diluted earnings per share
were $.65 for the quarter, an increase of 14 percent over the second quarter of
1999.
Earnings growth for the quarter was driven by strong new business volume,
stable net interest margin, increased operating revenues, improved operating
efficiency and continued strong performance in the credit quality of Heller's
portfolio.
"We are very proud to report another solid quarter of results," said Chairman
and Chief Executive Officer Richard J. Almeida. "We believe these results
validate the strength of our business franchise across growth markets.
<PAGE>
Highlights included:
Heller's new business volume totaled $2.2 billion for the quarter,
increasing 20 percent over the prior year period, with particular strength in
corporate finance, leasing services and healthcare finance. Total lending assets
and investments grew to $18.3 billion.
Operating revenues for the quarter were $262 million, a 16 percent increase
over second quarter 1999. Heller's multiple revenue sources continued to drive
the growth in operating revenues, as both interest and non-interest income
increased. Net interest income increased 33 percent over the prior year period,
due to growth in the Company's portfolio of lending assets. Excluding factoring
commissions, which fell due to the 1999 sale of the domestic factoring business,
non-interest income grew 12 percent on strong performance in Heller's investment
portfolios.
Heller's operating margin was 6.2 percent for the quarter. Net interest
margin was 3.7 percent, consistent with both the first quarter of 2000 and the
second quarter of 1999.
Credit quality in Heller's portfolio remained strong. Net writedowns
totaled $25 million during the quarter, .65 percent of average lending assets.
Heller's nonearning assets were 1.7 percent of total lending assets versus 1.6
percent at March 31, 2000, favorable to Heller's target range of two to four
percent. The Company's loan loss reserve of 2.1 percent of receivables remains
in excess of 100 percent of nonearning receivables.
Operating expenses totaled $116 million for the second quarter, an increase
of 8 percent over the second quarter of 1999. Heller's efficiency ratio
improved to 44 percent for the quarter from 48 percent for both the second
quarter and full year in 1999.
<PAGE>
"This was a solid quarter on all fronts, illustrating our commitment to
credit quality and on improving operational efficiency and financial returns.
We are very optimistic about the prospects for our business and financial
performance in the second half of 2000."
Heller Financial, Inc. is a worldwide commercial finance company providing
a broad range of financing solutions to middle-market and small business
clients. With nearly $20 billion in total assets, Heller offers equipment
financing and leasing, sales finance programs, collateral and cash flow-based
financing, financing for healthcare companies 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 can be found on the World Wide Web
at http://www.hellerfinancial.com.
The statements made by the Company in this news release may include certain
forward-looking statements that reflect the Company's current expectations
regarding its future growth, results and performance. These forward-looking
statements are subject to a variety of risks and uncertainties, which could
cause the Company's future growth, results and performance to differ materially
from those expressed in, or implied by, these statements. Information
concerning these risks and uncertainties is contained in the quarterly and
annual reports that the Company files with the Securities and Exchange
Commission.
<PAGE>
HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in millions)
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
----------- ------------
(unaudited) (audited)
<S> <C> <C>
Cash and cash equivalents........................ $ 778 $ 516
Receivables...................................... 15,828 14,795
Less: Allowance for losses of receivables........ 337 316
------- -------
Net receivables............................. 15,491 14,479
Investments...................................... 1,481 1,286
Operating leases................................. 814 508
Investments in international joint ventures...... 203 219
Other assets..................................... 1,003 965
------- -------
Total assets................................ $19,770 $17,973
======= =======
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<S> <C> <C>
Senior debt
Commercial paper and short-term borrowings...... $ 5,067 $ 5,202
Notes and debentures............................ 10,482 8,630
------- -------
Total senior debt........................... 15,549 13,832
Credit balances of factoring clients............. 915 993
Other payables and accruals...................... 846 790
------- -------
Total liabilities........................... 17,310 15,615
Minority interest................................ 11 11
Stockholders' equity
Preferred stock................................ 400 400
Common stockholders' equity.................... 2,049 1,947
------- -------
Total stockholders' equity.................. 2,449 2,347
------- -------
Total liabilities and stockholders' equity.. $19,770 $17,973
======= =======
</TABLE>
<PAGE>
HELLER FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in millions, except per share information)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
2000 1999 2000 1999
----- ----- ----- -----
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest Income................................... $ 404 $ 274 $ 765 $ 536
Interest Expense.................................. 247 156 462 305
----- ----- ----- -----
Net interest income............................... 157 118 303 231
Fees and other income............................. 78 69 166 143
Factoring commissions............................. 19 30 36 58
Income of international joint ventures............ 8 8 18 16
----- ----- ----- -----
Operating revenues................................ 262 225 523 448
Operating expenses................................ 116 107 233 215
Provision for losses.............................. 41 30 71 59
Income before income taxes and minority interest. 105 88 219 174
Income tax provision.............................. 35 29 73 58
Minority interest................................. 0 1 1 1
----- ----- ----- -----
Net income........................................ $ 70 $ 58 $ 145 $ 115
===== ===== ===== =====
Dividends on preferred stock...................... $ 7 $ 7 $ 14 $ 14
===== ===== ===== =====
Net income applicable to common stock............ $ 63 $ 51 $ 131 $ 101
===== ===== ===== =====
Basic net income applicable to common stock per
share (1)...................................... $0.65 $0.57 $1.36 $1.12
===== ===== ===== =====
Diluted net income applicable to common stock per
share (1)...................................... $0.65 $0.57 $1.35 $1.12
===== ===== ===== =====
</TABLE>
<PAGE>
HELLER FINANCIAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(unaudited)
<TABLE>
<CAPTION>
SELECTED DATA AND RATIOS Three Months Ended Six Months Ended
(dollars in millions) June 30, June 30,
-------- --------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Profitability:
--------------
Net income applicable to common stock
per share (1):
Basic $0.65 $0.57 $1.36 $1.12
Diluted 0.65 0.57 1.35 1.12
Return on average common
stockholders' equity (2) 12.6% 12.8% 13.2% 12.8%
Return on AFE (3) 1.7 1.8 1.8 1.9
Net interest income as a percentage of
AFE (3) 3.7 3.7 3.7 3.7
Non-interest operating revenues as a
percentage of AFE (3) 2.5 3.3 2.7 3.5
Total operating revenues as a
percentage of AFE (3) 6.2 7.0 6.4 7.2
Operating expenses as a percentage of
AFE (3) 2.7 3.3 2.9 3.5
Operating expenses to operating revenues 44.3 47.6 44.6 48.0
Operating expenses to AMA (4) 2.5 3.0 2.6 3.1
Gross writedowns $ 28 $ 25 $ 54 $ 52
Gross recoveries $ 3 $ 2 $ 5 $ 7
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
June 30, December 31, June 30,
2000 1999 1999
---- ---- ----
<S> <C> <C> <C>
Credit Quality:
---------------
Ratio of earning loans delinquent 60 days or more
to receivables 1.6% 1.5% 1.5%
Ratio of total nonearning assets to total lending
assets 1.7% 1.5% 1.7%
Ratio of net writedowns to average lending assets 0.65% 0.74% 0.74%
Ratio of allowance for losses of receivables to
receivables 2.1% 2.1% 2.2%
Ratio of allowance for losses of receivables to
nonearning receivables 140% 155% 136%
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2000 1999 2000 1999
----- ----- ----- ----
<S> <C> <C> <C> <C>
Leverage:
---------
Ratio of debt (net of short-term investments) to
total stockholders' equity 6.1x 5.6x 6.1x 5.6x
Ratio of commercial paper and short-term
borrowings to total debt 33% 36% 33% 36%
Other: (dollars in millions)
------
Total lending assets and investments $18,351 $14,550 $18,351 $14,550
Total lending assets 15,853 12,808 15,853 12,808
Average lending assets 15,445 12,447 15,236 12,250
Total common stockholders' equity 2,049 1,618 2,049 1,618
Average common stockholders' equity 2,019 1,602 1,995 1,590
Funds employed (3) 17,436 13,258 17,436 13,258
Average funds employed (3) 17,016 12,892 16,439 12,512
Managed assets (4) 18,911 14,434 18,911 14,434
Average managed assets (4) 18,446 14,205 17,850 13,924
</TABLE>
(1) Based on 96,584,475 basic and 96,666,429 diluted weighted average shares of
common stock outstanding for the quarter ended June 30, 2000 and 96,630,871
basic and 96,719,196 diluted weighted average shares of common stock
outstanding for the six months ended June 30, 2000. The diluted weighted
average shares as of June 30, 2000, include the effect of 4.1 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) Managed assets include funds employed plus receivables previously
securitized or sold and currently managed by the Company.
<PAGE>
LENDING ASSETS AND INVESTMENTS
<TABLE>
<CAPTION>
June 30, December 31, June 30,
BY BUSINESS SEGMENT 2000 1999 1999
(dollars in millions) ------- ------- -------
<S> <C> <C> <C>
Domestic Commercial Finance Segment
Corporate Finance $ 5,777 $ 4,937 $ 4,439
Leasing Services 4,044 3,428 3,110
Real Estate Finance 2,669 2,626 1,919
Small Business Finance 1,337 1,312 1,047
Healthcare Finance 1,299 971 -
Commercial Services* - - 922
Other 469 518 569
------- ------- -------
Total Domestic Commercial Finance Segment $15,595 $13,792 $12,006
International Factoring and Asset Based
Finance Segment 2,756 3,040 2,544
------- ------- -------
Total lending assets and investments $18,351 $16,832 $14,550
======= ======= =======
</TABLE>
* On November 30, 1999, we sold the assets of our Commercial Services unit.
<TABLE>
<CAPTION>
FEES AND OTHER INCOME
(dollars in millions) Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Factoring commissions $ 19 $ 30 $ 36 $ 58
Income of international joint ventures 8 8 18 16
Fees and other income:
Investment and asset sale income** 59 36 123 84
Fee income and other 19 33 43 59
----- ----- ----- -----
Total fees and other income $ 78 $ 69 $ 166 $ 143
----- ----- ----- -----
Total non-interest income $ 105 $ 107 $ 220 $ 217
===== ===== ===== =====
</TABLE>
** Includes gains on securitizations, syndications and loans sales, net
investment income and gains, equipment residual gains and participation income.
