UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 1-4146-1
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NAVISTAR FINANCIAL CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 36-2472404
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2850 West Golf Road Rolling Meadows, Illinois 60008
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code 847-734-4000
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of February 28, 1998, the number of shares outstanding of the registrant's
common stock was 1,600,000.
THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF NAVISTAR INTERNATIONAL
TRANSPORTATION CORP. AND MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS
H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Statements of Consolidated Income and Retained Earnings --
Three Months Ended January 31, 1998 and 1997. . . . . . . . . . 2
Statements of Consolidated Financial Condition --
January 31, 1998; October 31, 1997; and January 31, 1997. . . . 3
Statements of Consolidated Cash Flow --
Three Months Ended January 31, 1998 and 1997. . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . 5
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition. . . . . . . . . . . 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 12
Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME AND RETAINED EARNINGS (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
Three Months Ended
January 31
<S> <C> <C>
1998 1997
Revenue
Retail notes and lease financing . . . . . . . . . . . . $ 28.9 $ 25.7
Wholesale notes. . . . . . . . . . . . . . . . . . . . . 8.3 9.2
Accounts . . . . . . . . . . . . . . . . . . . . . . . . 9.6 7.2
Servicing fee income . . . . . . . . . . . . . . . . . . 5.7 5.6
Insurance premiums earned. . . . . . . . . . . . . . . . 7.9 8.4
Marketable securities. . . . . . . . . . . . . . . . . . 2.2 2.0
Total. . . . . . . . . . . . . . . . . . . . . . . 62.6 58.1
Expense
Cost of borrowing:
Interest expense. . . . . . . . . . . . . . . . . . . 15.7 14.3
Other . . . . . . . . . . . . . . . . . . . . . . . . 1.9 1.6
Total . . . . . . . . . . . . . . . . . . . . . . 17.6 15.9
Credit, collection and administrative. . . . . . . . . . 8.1 7.3
Provision for losses on receivables. . . . . . . . . . . 0.4 0.7
Insurance claims and underwriting. . . . . . . . . . . . 9.1 7.9
Depreciation expense and other . . . . . . . . . . . . . 5.5 4.4
Total . . . . . . . . . . . . . . . . . . . . . . 40.7 36.2
Income Before Taxes on Income . . . . . . . . . . . . . . . 21.9 21.9
Taxes on Income . . . . . . . . . . . . . . . . . . . . . . 8.5 8.5
Net Income . . . . . . . . . . . . . . . . . . . . . . . . 13.4 13.4
Retained Earnings
Beginning of period. . . . . . . . . . . . . . . . . . . 113.1 107.4
Dividends paid . . . . . . . . . . . . . . . . . . . . . (12.0) -
End of period. . . . . . . . . . . . . . . . . . . . . . $114.5 $120.8
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
Jan. 31 Oct. 31 Jan. 31
1998 1997 1997
ASSETS
<S> <C> <C> <C>
Cash and Cash Equivalents. . . . . . . . . . $ 6.4 $ 10.7 $ 12.2
Marketable Securities. . . . . . . . . . . . 112.5 114.2 121.8
Finance Receivables
Retail notes and lease financing. . . . . 444.0 706.5 437.7
Wholesale notes . . . . . . . . . . . . . 137.8 45.7 138.4
Accounts. . . . . . . . . . . . . . . . . 357.0 471.0 329.5
938.8 1,223.2 905.6
Allowance for losses. . . . . . . . . . . (10.3) (12.0) (9.0)
Finance Receivables, Net. . . . . . . . 928.5 1,211.2 896.6
Amounts Due from Sales of Receivables. . . . 236.5 233.3 270.6
Equipment on Operating Leases, Net . . . . . 158.9 124.1 113.4
Repossessions. . . . . . . . . . . . . . . . 18.5 13.0 12.5
Other Assets . . . . . . . . . . . . . . . . 104.2 104.1 71.3
Total Assets . . . . . . . . . . . . . . . . $1,565.5 $1,810.6 $1,498.4
LIABILITIES AND SHAREOWNER'S EQUITY
Short-Term Borrowings. . . . . . . . . . . . $ 115.3 $ 141.0 $ 142.0
Accounts Payable to Affiliated Companies . . 99.3 131.5 80.6
Other Liabilities. . . . . . . . . . . . . . 52.9 59.8 63.9
Senior and Subordinated Debt . . . . . . . . 903.7 1,082.7 804.9
Dealers' Reserves. . . . . . . . . . . . . . 22.5 22.2 22.0
Unpaid Insurance Claims and
Unearned Premiums. . . . . . . . . . . . . 82.4 85.6 92.8
Shareowner's Equity
Capital stock (Par value $1.00, 1,600,000
shares issued and outstanding)
and paid-in capital. . . . . . . . . . 171.0 171.0 171.0
Retained earnings . . . . . . . . . . . . 114.5 113.1 120.8
Unrealized gains on
marketable securities . . . . . . . . 3.9 3.7 0.4
Total . . . . . . . . . . . . . . . . . . 289.4 287.8 292.2
Total Liabilities and Shareowner's Equity. . $1,565.5 $1,810.6 $1,498.4
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOW (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
Three Months Ended
January 31
1998 1997
<S> <C> <C>
Cash Flow From Operations
Net income. . . . . . . . . . . . . . . . . . . . . . . . $ 13.4 $ 13.4
Adjustments to reconcile net income to cash
used in operations:
Gains on sales of receivables . . . . . . . . . . . . (7.2) (6.9)
Depreciation and amortization. . . . . . . . . . . . . 6.7 4.5
Provision for losses on receivables. . . . . . . . . . 0.4 0.7
(Decrease) increase in accounts payable to
Affiliated Companies. . . . . . . . . . . . . . . (32.2) 56.1
Other. . . . . . . . . . . . . . . . . . . . . . . . . (30.3) (8.1)
Total. . . . . . . . . . . . . . . . . . . . . . . . (49.2) 59.7
Cash Flow From Investing Activities
Proceeds from sold retail notes . . . . . . . . . . . . . 468.2 479.8
Purchase of retail notes and lease receivables. . . . . . (236.7) (196.1)
Principal collections on retail notes and
lease receivables . . . . . . . . . . . . . . . . . . . 16.6 5.6
Acquisitions under cash collections of wholesale
notes and accounts receivable. . . . . . . . . . . . . 32.9 4.2
Purchase of marketable securities . . . . . . . . . . . . (7.9) (10.0)
Proceeds from sales and maturities of
marketable securities . . . . . . . . . . . . . . . . 10.2 18.3
Purchase of equipment leased to others. . . . . . . . . . (41.5) (18.8)
Sale of equipment leased to others . . . . . . . . . . . 0.9 2.5
Total. . . . . . . . . . . . . . . . . . . . . . . . 242.7 285.5
Cash Flow From Financing Activities
Net (decrease)increase in short term borrowings . . . . . (25.7) 42.6
Net increase (decrease) in bank revolving credit
facility usage . . . . . . . . . . . . . . . . . . . 37.0 (302.0)
Net (decrease) in asset-backed commercial paper
facility usage . . . . . . . . . . . . . . . . . . . . (221.7) (150.0)
Proceeds from long-term debt . . . . . . . . . . . . . . 48.2 78.9
Principal payment of long-term debt . . . . . . . . . . . (23.6) (9.2)
Dividends paid to Transportation. . . . . . . . . . . . . (12.0) -
Total. . . . . . . . . . . . . . . . . . . . . . . . (197.8) (339.7)
(Decrease) Increase in Cash and Cash Equivalents . . . . . . (4.3) 5.5
Cash and Cash Equivalents at Beginning of Period . . . . . . 10.7 6.7
Cash and Cash Equivalents at End of Period . . . . . . . . . $ 6.4 $ 12.2
Supplemental disclosure of cash flow information
Interest paid . . . . . . . . . . . . . . . . . . . . . . $ 22.9 $ 19.1
Income taxes paid . . . . . . . . . . . . . . . . . . . . $ 7.4 $ 2.4
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The consolidated financial statements include the accounts of Navistar
Financial Corporation ("NFC") and its wholly-owned subsidiaries
("Corporation"). Navistar International Transportation Corp.
("Transportation"), which is wholly-owned by Navistar International
Corporation ("Navistar"), is the parent company of the Corporation.
The accompanying unaudited financial statements and notes have been
prepared in accordance with the accounting policies set forth in the
Corporation's 1997 Annual Report on Form 10-K and should be read in
conjunction with the Notes to the Consolidated Financial Statements
therein.
In the opinion of management, these interim financial statements
reflect all adjustments, consisting of normal recurring accruals,
necessary to fairly present the financial position, results of
operations and cash flow for the interim periods presented. Interim
results are not necessarily indicative of results to be expected for
the full year. Certain 1997 amounts have been reclassified to conform
with the presentation used in the 1998 financial statements.
2. Finance receivable balances do not include receivables sold by the
Corporation to public and private investors with limited recourse
provisions. Outstanding sold receivables balances are as follows:
<TABLE>
<CAPTION>
January 31 October 31 January 31
1998 1997 1997
($ Millions)
<S> <C> <C> <C>
Retail notes. . . . . . . . . . . $1,654.3 $1,422.2 $1,636.0
Wholesale notes . . . . . . . . . 531.3 545.5 427.8
Total . . . . . . . . . . . . $2,185.6 $1,967.7 $2,063.8
</TABLE>
In November 1997, the Corporation sold $500 million of retail notes,
net of unearned finance income, through Navistar Financial Retail
Receivables Corporation to an owner trust which, in turn, sold notes
to investors. A gain of $7.2 million was recognized on the sale. The
proceeds of $477 million, net of underwriting fees and credit
enhancements were used by the Corporation for general working capital
purposes.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The allowance for losses on receivables is summarized as follows:
<TABLE>
<CAPTION.
January 31 October 31 January 31
1998 1997 1997
($ Millions)
<S> <C> <C> <C>
Allowance pertaining to:
Owned notes. . . . . . . . . . $10.3 $12.0 $ 9.0
Sold notes . . . . . . . . . . 14.4 12.5 15.5
Total . . . . . . . . . . . $24.7 $24.5 $24.5
</TABLE>
3. During the first quarter of fiscal 1998, the Corporation entered into
a $50 million forward treasury lock in anticipation of a May 1998 sale
of retail receivables. The Corporation intends to close this position
on the pricing date of the sale. Any gain or loss resulting from this
transaction will be included in the gain or loss on the sale of
receivables recognized in May 1998.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Certain statements under this caption constitute "forward-looking statements"
under the Securities Reform Act, which involve risks and uncertainties. Navistar
Financial Corporation's actual results may differ significantly from the results
discussed in such forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed under the heading
"Business Outlook."
Financing Volume
In the first quarter of fiscal 1998 industry retail sales for Class 5 through 8
trucks was approximately 21% higher than 1997. The Corporation's retail
financing acquisitions in fiscal 1998, including retail notes and finance and
operating leases, were $278 million, 29% higher than 1997. The increase is
primarily the result of the strong truck industry demand offset in part by a
decline in the Corporation's finance market share of new International trucks
sold in the U.S. from 15.8% in 1997 to 14.5% in fiscal 1998 due to the highly
competitive commercial financing market. Serviced retail notes and lease
financing balances were $2,258 million and $2,188 million at January 31, 1998
and 1997, respectively.
In spite of the continued strong liquidity in the commercial financing market,
the Corporation provided 95% and 94% of the wholesale financing of new trucks
sold to Transportation's dealers in the first quarter of fiscal 1998 and 1997,
respectively. Serviced wholesale note balances were $758 million at January 31,
1998, a 16% increase compared to the same period of 1997 due to the strong
industry demand.
Results of Operations
The components of net income for the three months ended January 31 are as
follows:
<TABLE>
<CAPTION>
1998 1997
($ Millions)
<S> <C> <C>
Income before income taxes:
Finance operations. . . . . . . . . . . . . . . . . . . $20.9 $19.5
Insurance operations. . . . . . . . . . . . . . . . . . 1.0 2.4
Income before taxes. . . . . . . . . . . . . . . . . 21.9 21.9
Taxes on income . . . . . . . . . . . . . . . . . . . . 8.5 8.5
Net income . . . . . . . . . . . . . . . . . . . . . $13.4 $13.4
</TABLE>
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Results of Operations (continued)
Pretax income was $21.9 million in the first quarter of fiscal 1998 and 1997.
During the first quarter of 1998 receivable balances were higher in response to
the increase in Transportation's sales. The higher level of financing was offset
by lower financing margins primarily due to the highly competitive commercial
financing market and higher borrowing costs associated with the issuance of high
yield fixed rate debt in May 1997.
Finance Operations:
Retail note and lease revenue was $28.9 million in the first quarter of 1998
compared to $25.7 million in 1997. The increase is the result of higher average
finance receivables and investment in operating leases as a result of an
increase in Transportation's retail sales. Included in these amounts is
operating lease revenue of $8.5 million and $5.9 million in 1998 and 1997,
respectively. The higher operating lease revenue is the result of an increase in
operating lease balances due to a market shift toward lease financing. For
operating leases, the Corporation recognizes the entire lease payment as revenue
and records depreciation expense on the assets under lease.
Wholesale note revenue was $8.3 million in the first quarter of fiscal 1998
compared to $9.2 million in 1997. The higher level of wholesale financing
activity in 1998 was more than offset by lower financing margins in response to
the highly competitive commercial financing market.
Retail and wholesale account revenue was $9.6 million in the first quarter of
1998 compared to $7.2 million in fiscal 1997. The increase was primarily the
result of higher average balances and higher average yields relating to a higher
prime interest rate.
Borrowing costs increased $1.7 million to $17.6 million during the first quarter
of 1998 due primarily to higher receivable financing and higher interest rates.
The Corporation's weighted average interest rate on all debt increased to 6.8%
in 1998 from 6.3% in the first quarter of 1997 primarily due to the issuance of
high yield fixed rate debt in May 1997 and higher average short term interest
rates.
Depreciation and other expenses increased to $5.5 million in the first quarter
of 1998 from $4.4 million in 1997. The increase is primarily the result of a
larger investment in equipment under operating leases.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Results of Operations (continued)
Insurance Operations:
Harco National Insurance Company's pretax income in the first quarter of fiscal
1998 was $1.4 million lower than 1997 primarily due to unfavorable loss
experience in the physical damage line.
Liquidity and Funds Management
The Corporation's operations are substantially dependent upon the production and
sale of Transportation's truck products in the United States. Navistar Financial
has traditionally obtained the funds to provide financing to Transportation's
dealers and retail customers from sales of receivables, commercial paper, short
and long-term bank borrowings, medium and long-term debt issues and equity
capital. The Corporation's current debt ratings have made sales of finance
receivables the most economical source of funding. The Corporation's insurance
operation generates its funds through internal operations and has no external
borrowings.
In January 1998, Moody's, Standard and Poors and Duff and Phelps raised the
Corporation's senior debt ratings from Ba2, BB and BB+ to Ba1, BB+ and BBB-,
respectively, while the subordinated debt ratings were also raised from B1, B+
and BB to Ba3, BB- and BB+, respectively.
Operations used $49.2 million in cash in the first quarter of 1998 as the cash
provided from net income was offset by a decrease in accounts payable to
affiliated companies. Investment activities provided $242.7 million in cash
during this period principally as a result of the sales of retail notes offset
in part by the purchase of retail notes and leases. The cash generated from
investing activities was used primarily to lower borrowings in the asset-backed
commercial paper facility by $221.7 million and to pay dividends to
Transportation of $12.0 million.
Receivable sales were a significant source of funding in 1998 and 1997. Through
the asset-backed public market, the Corporation has been able to fund fixed rate
retail note receivables at rates offered to companies with investment grade
ratings. During the first quarter of fiscal 1998 and 1997 the Corporation sold
$500 and $486 million, respectively, of retail notes, through Navistar Financial
Retail Receivables Corporation ("NFRRC"), a wholly-owned subsidiary, to owner
trusts which in turn sold notes and certificates to investors. At January 31,
1998, the remaining shelf registration available to NFRRC for issuance of
asset-backed securities was $973 million.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Liquidity and Funds Management (continued)
As of January 1998, Navistar Financial Securities Corporation ("NFSC"), a
wholly-owned subsidiary of the Corporation, had in place a $531 million
revolving wholesale note trust that provides for the continuous sale of eligible
wholesale notes on a daily basis. During the next two months $31 million will
amortize and the commitment will be $500 million. At January 31, 1998, the
remaining shelf registration available to NFSC for the issuance of investor
certificates was $200 million.
At January 31, 1998, available funding under the amended and restated credit
facility and the asset-backed commercial paper facility was $767 million, of
which $115 million provided funding backup for the outstanding short-term debt.
The remaining $652 million, when combined with unrestricted cash and cash
equivalents, made $658 million available to fund the general business purposes
of the Corporation.
Year 2000
The Corporation has identified all significant applications that will require
modification to ensure Year 2000 compliance. Internal and external resources
are being used to make the required modifications and test Year 2000 compliance.
NFC plans to complete the modifications and testing process of all significant
applications by July 1999, which is prior to any anticipated impact on its
operating systems. The total cost of the Year 2000 project has not been and is
not anticipated to be material to the Corporation's financial position or
results of operations and will be funded through operating cash flows.
The costs of the project and the date on which NFC believes it will complete the
Year 2000 modifications are based on management's best estimates, which were
derived utilizing numerous assumptions of future events, including the continued
availability of certain resources, third party modification plans and other
factors. However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those anticipated.
Specific factors that might cause such material differences include, but are not
limited to, the availability and cost of personnel trained in this area, the
ability to locate and correct all relevant computer codes and similar
uncertainties.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Year 2000 (continued)
In addition, the Corporation has communicated with others with whom it does
significant business to determine their Year 2000 compliance readiness and the
extent to which NFC is vulnerable to any third party Year 2000 issues. However,
there can be no guarantee that the systems of other companies on which the
Corporation's systems rely will be timely converted, or that a conversion that
is imcompatible with NFC's systems would not have a material adverse effect on
the Corporation.
Business Outlook
Navistar forecasts industry demand for Class 5 through 8 trucks to increase
approximately 8% over 1997 levels. The competitive commercial financing market
will continue to put pressure on the Corporation's retail and wholesale
financing activity and margins.
Management believes that collections on the outstanding receivables portfolio
plus cash available from the Corporation's various funding sources will permit
Navistar Financial to meet the financing requirements of Transportation's
dealers and retail customers through 1998 and beyond.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended January 31,
1998.
SIGNATURE
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.
Navistar Financial Corporation
(Registrant)
Date March 17, 1998 /s/ P.E. COCHRAN
P. E. Cochran
Vice President and Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF CONSOLIDATED INCOME AND RETAINED EARNINGS AND THE STATEMENT
OF CONSOLIDATED FINANCIAL CONDITION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1998<F1>
<PERIOD-END> JAN-31-1998
<CASH> 6,400
<SECURITIES> 112,500
<RECEIVABLES> 938,800
<ALLOWANCES> (10,300)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 13,000
<DEPRECIATION> (8,300)
<TOTAL-ASSETS> 1,565,500
<CURRENT-LIABILITIES> 0
<BONDS> 903,700
0
0
<COMMON> 171,000
<OTHER-SE> 118,400
<TOTAL-LIABILITY-AND-EQUITY> 1,565,500
<SALES> 0
<TOTAL-REVENUES> 62,600
<CGS> 0
<TOTAL-COSTS> 19,100
<OTHER-EXPENSES> 5,500
<LOSS-PROVISION> 400
<INTEREST-EXPENSE> 15,700
<INCOME-PRETAX> 21,900
<INCOME-TAX> (8,500)
<INCOME-CONTINUING> 13,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,400
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> THE CORPORATION'S STATEMENT OF FINANCIAL CONDITION IS UNCLASSIFIED;
THEREFORE, THE DISTINCTION BETWEEN CURRENT AND LONG-TERM ASSETS AND
LIABILITIES IS NOT AVAILABLE.
</FN>
</TABLE>
