FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-7541
THE HERTZ CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-1938568
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
225 Brae Boulevard, Park Ridge, New Jersey 07656-0713
(Address of principal executive offices)
(Zip Code)
(201) 307-2000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
The registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing
this Form with the reduced disclosure format permitted by General
Instruction H(2) of Form 10-Q.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the
registrant's classes of common stock as of September 30, 1996:
Common Stock, $1 par value - Class A, 200 shares; Class B, 51
shares; and Class C, 490 shares.
Page 1 of 20 pages
The Exhibit Index is on page 17
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM l. FINANCIAL STATEMENTS.
INTRODUCTORY STATEMENT
The summary of accounting policies set forth in Note 1 to the
consolidated financial statements contained in the Form 10-K for
the fiscal year ended December 31, 1995, filed by the registrant
with the Securities and Exchange Commission on March 13, 1996,
has been followed in preparing the accompanying condensed
consolidated financial statements.
The condensed consolidated financial statements for interim
periods included herein have not been audited by independent
public accountants. In the registrant's opinion, all adjustments
(which include only normal recurring adjustments) necessary for a
fair presentation of the results of operations for the interim
periods have been made. Results for interim periods are not
necessarily indicative of results for a full year.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In Thousands of Dollars)
A S S E T S
Unaudited
Sept. 30, Dec. 31,
1996 1995
CASH AND EQUIVALENTS $ 170,755 $ 137,257
RECEIVABLES, less allowance for
doubtful accounts: 1996, $12,414;
1995, $7,985 846,595 789,801
DUE FROM AFFILIATES 209,490 407,442
INVENTORIES, at lower of cost or market 16,394 17,930
PREPAID EXPENSES AND OTHER ASSETS (Note 1) 88,531 83,345
REVENUE EARNING VEHICLES AND OTHER
EQUIPMENT, at cost, less accumulated
depreciation: 1996 $560,756; 1995,
$486,266 5,492,450 4,170,169
PROPERTY AND EQUIPMENT, at cost,
less accumulated depreciation:
1996, $515,251; 1995, $485,680 526,372 495,890
FRANCHISES, CONCESSIONS, CONTRACT COSTS
AND LEASEHOLDS, net of amortization
(Note 5) 10,362 7,722
COST IN EXCESS OF NET ASSETS OF PURCHASED
BUSINESSES, net of amortization
(Note 5) 530,154 547,074
$7,891,103 $6,656,630
LIABILITIES AND SHAREHOLDERS' EQUITY
ACCOUNTS PAYABLE $ 584,342 $ 585,663
ACCRUED LIABILITIES 561,877 473,019
ACCRUED TAXES 132,067 74,714
DEBT (Note 4) 5,234,201 4,297,484
PUBLIC LIABILITY AND PROPERTY DAMAGE 317,608 311,669
DEFERRED TAXES ON INCOME 111,200 77,800
SHAREHOLDERS' EQUITY:
Preferred stock -
Series A, 10% cumulative 236,000 236,000
Series B, various rates cumulative 249,900 249,900
Common stock 1 1
Additional capital paid-in 59,008 59,008
Reinvested earnings 399,274 276,733
Translation adjustment 5,719 14,539
Unrealized holding gains (losses) for
available-for-sale securities (Note 1) (94) 100
Total shareholders' equity 949,808 836,281
$7,891,103 $6,656,630
The accompanying notes are an integral part of this statement.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months
Ended September 30,
1996 1995
REVENUES $1,060,028 $989,756
EXPENSES:
Direct operating 485,968 460,693
Depreciation of revenue earning
equipment (Note 3) 246,006 231,869
Selling, general and administrative 108,111 103,124
Interest, net of interest income
of $2,595 and $6,727 81,694 84,486
921,779 880,172
INCOME BEFORE INCOME TAXES 138,249 109,584
PROVISION FOR TAXES ON INCOME
(Note 2) 64,041 44,492
NET INCOME $ 74,208 $ 65,092
The accompanying notes are an integral part of this statement.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Nine Months
Ended September 30,
1996 1995
REVENUES $2,774,571 $2,583,990
EXPENSES:
Direct operating 1,347,001 1,293,696
Depreciation of revenue earning
equipment (Note 3) 659,932 610,596
Selling, general and administrative 320,948 300,834
Interest, net of interest income
of $7,712 and $12,748 223,985 235,411
2,551,866 2,440,537
INCOME BEFORE INCOME TAXES 222,705 143,453
PROVISION FOR TAXES ON INCOME
(Note 2) 100,164 59,089
NET INCOME $ 122,541 $ 84,364
The accompanying notes are an integral part of this statement.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands of Dollars)
Unaudited
Nine Months
Ended September 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 122,541 $ 84,364
Non-cash expenses:
Depreciation of revenue earning
equipment 659,932 610,596
Depreciation of property and
equipment 63,537 56,684
Amortization of intangibles 13,652 14,327
Provision for public liability
and property damage 101,407 111,762
Provision for losses for doubtful
accounts 9,152 3,772
Deferred income taxes 33,400 34,000
Revenue earning equipment
expenditures (6,571,460) (5,979,585)
Proceeds from sales of revenue
earning equipment 4,576,450 4,450,711
Changes in assets and liabilities,
net of effects from sale in 1996
of certain claim administration
service operations, and in 1995
of the European car leasing and
car dealership operations -
Receivables (76,646) (206,663)
Due from affiliates 197,952 75,403
Inventories and prepaid expenses
and other assets (5,933) (12,575)
Accounts payable 2,149 308,767
Accrued liabilities 90,443 17,047
Accrued taxes 57,230 13,021
Payments of public liability and
property damage claims and expenses (95,481) (94,515)
Net cash flows used for
operating activities (821,675) (512,884)
The accompanying notes are an integral part of this statement.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands of Dollars)
Unaudited
Nine Months
Ended September 30,
1996 1995
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment expenditures $ (126,248) $(136,459)
Proceeds from sales of property and
equipment 25,968 24,174
Available-for-sale securities -
Purchases (5,443) (3,356)
Sales 5,462 3,745
Proceeds from sale in 1996 of certain
claim administration service operations
and in 1995 of the European car leasing
and car dealership operations, net of
cash and equivalents 15,346 56,560
Purchases of various operations (see
supplemental disclosure below) (6,054) -
Net cash flows used for investing
activities (90,969) (55,336)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term
debt 153,489 320,016
Repayment of long-term debt (197,696) (291,329)
Short-term borrowings:
Proceeds 1,146,723 823,821
Repayments (652,710) (689,115)
Ninety day term or less, net 496,453 439,084
Net cash flows provided from
financing activities 946,259 602,477
EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH (117) 69
NET INCREASE IN CASH AND EQUIVALENTS
DURING THE PERIOD 33,498 34,326
CASH AND EQUIVALENTS AT BEGINNING OF
YEAR 137,257 99,749
CASH AND EQUIVALENTS AT END OF PERIOD $ 170,755 $ 134,075
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for -
Interest (net of amount capitalized) $ 227,874 $ 248,091
Income taxes 22,329 26,505
In connection with an acquisition made during 1996, liabilities
assumed were $36 million.
The accompanying notes are an integral part of this statement.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Available-for-Sale Securities
As of September 30, 1996, Prepaid Expenses and Other Assets
in the condensed consolidated balance sheet include available-
for-sale securities at fair value of $5,507 thousand (cost $5,611
thousand). The fair value is calculated using information
provided by outside quotation services. These securities include
various governmental and high quality corporate debt obligations,
with the following maturity dates for the twelve month period
following September 30, 1996 (in thousands): fair value $148
(cost $165) in 1997; fair value $4,447 (cost $4,500) 1998 through
2002; fair value $912 (cost $946) 2003 through 2015. For the
nine months ended September 30, 1996, proceeds of $5.5 million
from the sale of available-for-sale securities were received, and
net losses of $12,989 were realized. For the nine months ended
September 30, 1996, unrealized holding losses, and unrealized
holding gains, net of taxes, included in Shareholders' Equity
were $115,000 and $21,000, respectively.
Note 2 - Taxes on Income
The income tax provision is based upon the expected effective
tax rate applicable to the full year. The effective tax rate is
higher than the U.S. statutory rate of 35% due to higher tax
rates relating to foreign operations and the provision for state
taxes net of federal benefit.
Note 3 - Depreciation of Revenue Earning Equipment
Depreciation of revenue earning equipment includes the
following (in thousands of dollars):
Unaudited
1996 1995
Three months ended September 30
Depreciation of revenue earning equipment $243,244 $212,578
Less adjustment of depreciation upon
disposal of the equipment 1,143 5,813
Rents paid for vehicles leased 1,619 13,478
Total $246,006 $231,869
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 3 - Depreciation of Revenue Earning Equipment (continued)
Unaudited
1996 1995
Nine months ended September 30
Depreciation of revenue earning equipment $658,697 $544,145
Less adjustment of depreciation upon
disposal of the equipment (5,659) 10,653
Rents paid for vehicles leased 6,894 55,798
Total $659,932 $610,596
The adjustment of depreciation upon disposal of revenue
earning equipment for the three months ended September 30, 1996
and 1995 included net losses of $1.0 million and net gains of
$1.3 million, respectively, on the sale of equipment in the
construction equipment rental operations in the United States;
and net losses of $.1 million and $7.1 million, respectively, in
the car rental and car leasing operations.
The adjustment of depreciation upon disposal of revenue
earning equipment for the nine months ended September 30, 1996
and 1995 included net losses of $.5 million and net gains $1.4
million, respectively, on the sale of equipment in the
construction equipment rental operations in the United States;
and net gains of $6.2 million and net losses of $12.1 million,
respectively, in the car rental and car leasing operations.
During the nine months ended September 30, 1996, the
registrant purchased Ford Motor Company ("Ford") vehicles at a
cost of approximately $3.4 billion, and sold Ford vehicles to
Ford or its affiliates under various repurchase programs for
approximately $2.3 billion.
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 4 - Debt
Debt at September 30, 1996 and December 31, 1995 consists of
the following (in thousands of dollars):
Unaudited
Sept. 30, Dec. 31,
1996 1995
Notes payable, including commercial paper,
average interest rate: 1996, 5.4%;
1995, 5.8% $1,645,180 $1,036,215
Promissory notes, average interest rate:
1996, 7.4%; 1995, 7.6%; (effective
average interest rate: 1996, 7.5%; 1995,
7.7%); net of unamortized discount:
1996, $3,281; 1995, $3,019; due 1997
to 2005 1,791,719 1,694,641
Property and equipment lease obligations,
average interest rate: 1996, 7.5%; 1995
7.9%; due 1996 to 1998 2,503 3,572
Medium term notes, average interest rate:
1996, 9.3%; 1995, 9.4%; due 1997 75,300 119,175
Senior subordinated promissory notes,
average interest rate: 1996, 9.7%; 1995,
9.5% (effective average interest rate:
1996, 9.8%; 1995, 9.6%); net of
unamortized discount: 1996, $205; 1995,
$313; due 1997 to 1998 149,795 249,687
Junior subordinated promissory notes,
average interest rate 6.9%; net of
unamortized discount: 1996, $254;
1995, $286; due 2000 to 2003 399,746 399,714
Subsidiaries' short-term debt, including
commercial paper in millions (1996,
$1,119.7; 1995, $747.2) and other
borrowings; average interest rate in
domestic and foreign currencies: 1996,
5.1%; 1995, 5.9%; including unamortized
discount: 1996, $25; 1995, $29 1,169,958 794,480
Total $5,234,201 $4,297,484
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 4 - Debt (continued)
The aggregate amounts of maturities of debt for the twelve
month periods following September 30, 1996 are as follows (in
millions): 1997, $2,992.8 (including $2,764.9 of commercial paper
and short-term borrowings); 1998, $392.0; 1999, $101.7; 2000,
$499.7; 2001, $398.9; after 2001, $849.1.
At September 30, 1996, approximately $248 million of the
registrant's consolidated shareholders' equity was free of
dividend limitations pursuant to its existing debt agreements.
At September 30, 1996, the registrant and a subsidiary had
$268.9 million of outstanding loans from Ford.
The registrant and its subsidiaries have entered into
arrangements to manage exposure to fluctuations in interest
rates. These arrangements consist of interest-rate swap
agreements ("swaps") and forward rate agreements ("FRAs"). The
differential paid or received on these agreements is recognized
as an adjustment to interest expense. These agreements are not
entered into for trading purposes. The effect of these
agreements is to make the registrant less susceptible to changes
in interest rates by effectively converting certain variable rate
debt to fixed rate debt. Because of the relationship of current
market rates to historical fixed rates, the effect at September
30, 1996 of the swap and FRA agreements is to give the registrant
an overall effective weighted-average rate on debt of 6.4%, with
46% of debt effectively subject to variable interest rates,
compared to a weighted-average interest rate on debt of 6.3%,
with 53% of debt subject to variable interest rates when not
considering the swap and FRA agreements. At September 30, 1996,
these agreements expressed in notional amounts aggregated (in
millions) $365.9 swaps, and FRAs in the amount of $30.8 which
were settled in 1996. Notional amounts are not reflective of the
registrant's obligations under these agreements because the
registrant is only obligated to pay the net amount of interest
rate differential between the fixed and variable rates specified
in the contracts. The registrant's exposure to any credit loss
in the event of non-performance by the counterparties is further
mitigated by the fact that all of these financial instruments are
with significant financial institutions that are rated "A" or
better by the major credit rating agencies. At September 30,
1996, the fair value of all outstanding contracts, which is
representative of the registrant's obligations under these
contracts, assuming the contracts were terminated at that date,
was approximately a net payable of $2.7 million. This relates to
notional principal (in millions) of $365.9 swaps maturing $17.9,
<PAGE>
THE HERTZ CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 4 - Debt (continued)
$239.6, $66.3, $39.8, $2.0, $.2 and $.1 in 1996, 1997, 1998,
1999, 2000, 2001 and 2002, respectively; and of notional
principal scheduled to start after September 30, 1996 of $7.9
swaps maturing in 2000, and $15.4 FRA's maturing in 1997.
Note 5 - Purchases and Sales of Operations
In June 1996, the registrant acquired all of the capital
stock of a foreign licensee vehicle rental and leasing operation
and the assets of a domestic car rental operation. In February
1996, the registrant acquired the assets of a domestic
construction equipment rental and sales operation. The costs
related to these acquisitions exceeded the net assets acquired by
$6.1 million.
In May 1996, the registrant sold certain of its claim
administration service operations effective February 29, 1996,
which included the administration of workers' compensation claims
and other related services, and health related benefit claims.
The net proceeds from the sale approximated $15.3 million, which
exceeded its book value by approximately $3 million. The total
assets of these operations at February 29, 1996 were $15.5
million and revenues for the year ended December 31, 1995 were
$31.0 million, with negligible net income. Therefore, the
registrant believes that this transaction will not have a
material effect on its financial position or future operations.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Third Quarter 1996 vs. Third Quarter 1995
Revenues in the third quarter of 1996 of $1,060 million
increased by $70 million as compared to the third quarter of
1995. This increase was primarily attributable to increases in
the car rental operations resulting from a greater number of
transactions and rate increases; and improvements in construction
equipment rental and sales due to increased volume resulting from
the opening of new locations, an acquisition in 1996 and
increased activity in construction and industrial related
markets. These increases were partly offset by lower revenues in
the claim administration service operations, parts of which were
sold effective February 29, 1996, and changes in foreign exchange
rates.
Total expenses increased $42 million to $922 million in the
third quarter of 1996 as compared to $880 million in the third
quarter of 1995. Direct operating expense increased principally
due to the higher volume of business, but is lower in 1996 as a
percent of revenues due to more efficient fixed cost coverage.
Depreciation of revenue earning equipment increased primarily due
to an increase in vehicles and equipment operated and higher
prices for automobiles; these increases were partly offset by
lower losses incurred in 1996 resulting from higher net proceeds
received on disposal of revenue earning equipment in excess of
book value due to improved market conditions. Selling, general
and administrative expense increased primarily due to higher
administrative, advertising and sales promotion costs. The
decrease in interest expense in 1996, was primarily due to lower
interest rates, partly offset by higher debt levels.
The tax provision of $64 million in the third quarter of 1996
was higher than the tax provision of $44 million in the third
quarter of 1995, primarily due to the higher income before income
taxes in 1996. See Note 2 to the Notes to Condensed Consolidated
Financial Statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
Nine Months Ended September 30, 1996 vs. September 30, 1995
Revenues in the nine months of 1996 of $2,775 million
increased by $191 million as compared to the nine months of 1995.
This increase was primarily attributable to gains in the car
rental operations resulting from a greater number of transactions
and rate increases; and improvements in construction equipment
rental and sales due to increased volume resulting from the
opening of new locations, an acquisition in 1996 and increased
activity in construction and industrial related markets. These
increases were partly offset by lower revenues in the claim
administration service operations, parts of which were sold
effective February 29, 1996, and changes in foreign exchange
rates.
Total expenses increased $111 million to $2,552 million in
the nine months of 1996 as compared to $2,441 million in the nine
months of 1995. Direct operating expense increased principally
due to the higher volume of business, but is lower in 1996 as a
percent of revenues due to more efficient fixed cost coverage.
Depreciation of revenue earning equipment increased primarily due
to an increase in vehicles and equipment operated and higher
prices for automobiles; these increases were partly offset by
higher net proceeds received on disposal of revenue earning
equipment in excess of book value due to improved market
conditions. Selling, general and administrative expense
increased primarily due to higher administrative, advertising and
sales promotion costs. The decrease in interest expense in 1996
was primarily due to lower interest rates, partly offset by
higher debt levels.
The tax provision of $100 million in the nine months of 1996
was higher than the tax provision of $59 million in the nine
months of 1995, primarily due to the higher income before income
taxes in 1996. See Note 2 to the Notes to Condensed Consolidated
Financial Statements.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
(4) Instruments defining the rights of security
holders, including indentures. During the quarter
ended September 30, 1996, the registrant and its
subsidiaries ("Hertz") incurred various
obligations which could be considered as long-term
debt, none of which exceeded 10% of the total
assets of Hertz on a consolidated basis. Hertz
agrees to furnish to the Commission upon request a
copy of any instrument defining the rights of the
holders of such long-term debt.
(12) Computation of Ratio of Earnings to Fixed Charges for the
nine months ended September 30, 1996, and 1995.
(27) Financial Data Schedule for the nine months ended
September 30, 1996.
(b) Reports on Form 8-K:
The registrant did not file any reports on Form 8-K
during the quarter ended September 30, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE HERTZ CORPORATION
(Registrant)
Date: October 31, 1996 By: /s/ William Sider
William Sider
Executive Vice President and
Chief Financial Officer
(principal financial officer
and duly authorized officer)
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS
filed with
FORM 10-Q
for the quarter ended
September 30, 1996
under
THE SECURITIES EXCHANGE ACT OF 1934
THE HERTZ CORPORATION
Commission file number 1-7541
<PAGE>
EXHIBIT INDEX
Exhibit
No. Description Page No.
12 Computation of Ratio of Earnings
to Fixed Charges for the nine months
ended September 30, 1996 and 1995. 18
27 Financial Data Schedule for the nine
months ended September 30, 1996. 19 - 20
<PAGE>
EXHIBIT 12
THE HERTZ CORPORATION AND SUBSIDIARIES
CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands of Dollars Except Ratios)
Unaudited
Nine Months
Ended September 30,
1996 1995
Income before income taxes $222,705 $143,453
Interest expense 231,697 248,159
Portion of rent estimated to represent
the interest factor 53,581 59,676
Earnings before income taxes and fixed
charges $507,983 $451,288
Interest expense (including capitalized
interest) $232,236 $249,061
Portion of rent estimated to represent
the interest factor 53,581 59,676
Fixed charges $285,817 $308,737
Ratio of earnings to fixed charges 1.8 1.5
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1,000
<CASH> 13,799
<SECURITIES> 156,956
<RECEIVABLES> 859,009
<ALLOWANCES> (12,414)
<INVENTORY> 16,394
<CURRENT-ASSETS> 0
<PP&E> 7,094,829
<DEPRECIATION> (1,076,007)
<TOTAL-ASSETS> 7,891,103
<CURRENT-LIABILITIES> 0
<BONDS> 5,234,201
0
485,900
<COMMON> 1
<OTHER-SE> 463,907
<TOTAL-LIABILITY-AND-EQUITY> 7,891,103
<SALES> 0
<TOTAL-REVENUES> 2,774,571
<CGS> 0
<TOTAL-COSTS> 2,318,729
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,152
<INTEREST-EXPENSE> 223,985
<INCOME-PRETAX> 222,705
<INCOME-TAX> 100,164
<INCOME-CONTINUING> 122,541
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 122,541
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
