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Previous: ORION CAPITAL CORP, S-3, 1994-05-24 |
Next: PUGET SOUND POWER & LIGHT CO /WA/, 424B2, 1994-05-24 |
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): May 24, 1994
PHH CORPORATION
(Exact name of registrant as specified in its charter)
Maryland 0-1631-2 52-0551284
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
11333 McCormick Road 21031
Hunt Valley, Maryland (Zip Code)
(Address of principal
executive offices)
Registrant's telephone number, including area code: (410) 771-3600
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Item 5. Other Events.
Filed herewith is the Registrant's fourth quarter earnings release for
fiscal year ended April 30, 1994.
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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 hereto duly authorized.
PHH CORPORATION
/s/Roy A. Meierhenry
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May 24, 1994
Roy A. Meierhenry
Senior Vice President and
Chief Financial Officer
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FOR IMMEDIATE RELEASE:
CONTACT: Analysts: Gene Truett 410/771-2463
Press: Peter Brinch 410/771-2519
PHH CORPORATION ANNOUNCES RECORD RESULTS;
10 CONSECUTIVE QUARTERS OF RISING EARNINGS
Full Year Net Income up 14%, Earnings Per Share Up 12%
HUNT VALLEY, MARYLAND, May 23, 1994--PHH Corporation (NYSE:PHH) today
reported record net income, earnings per share, and revenues for the year
ended April 30, 1994. Net income increased 14 percent to $64.6 million
compared with $56.4 million for the prior year. Earnings per share increased
12 percent to $3.64 up from $3.25 for the prior year. Worldwide revenues
increased 6 percent to $2.1 billion from $2.0 billion.
For the fourth quarter of fiscal 1994, net income was $18.2 million,
earnings per share were $1.03, and revenues were $533.9 million.
"We are extremely proud of our accomplishments in fiscal 1994 and
continuing our trend of 10 consecutive increases in quarterly earnings," said
PHH Chairman and CEO Robert D. Kunisch. "We achieved our stated growth
objectives, increased the number of new client signings and introduced many
new and enhanced productivity services to the marketplace."
MORTGAGE BANKING HAS BEST YEAR
In discussing the Company's results, Kunisch said, "By every standard, it
was a banner year for our mortgage banking services segment. At year-end, our
servicing portfolio stood at $16.6 billion, a fifty percent increase over last
year. This portfolio, with its high quality loans, provides us with an
excellent long-term earnings stream. Loan originations were up 15 percent, and
closings were up 44 percent over the comparable period last year." Kunisch
added, "As anticipated, we are seeing a slowdown in refinancing activity
because of rising interest rates. We expect this to be offset by expanding new
customer groups and broadening our activities with affinity groups,
corporations and our supplier networks. These efforts, coupled with the fact
that we are beginning FY95 with a fifty percent larger servicing portfolio
mean this business segment will remain a major contributor to earnings."
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VEHICLE MANAGEMENT POSTS SOLID EARNINGS GROWTH
Commenting on the vehicle management business, Kunisch said, "Gains from
strong management fee growth and additional income from new automotive
services fee-based products helped produce operating income gains from this
business unit. North American operations exceeded our expectations and
produced strong results. This unit is benefiting from our efforts toward
becoming a broader transaction-based vehicle management services company. In
the United Kingdom, results declined as our clients faced continuing pressure
from the economy. In Germany, losses were comparable to last year but we are
beginning to see a number of positive signs of improvement. Overall we expect
this business unit to continue to show good growth in the coming fiscal year."
CORPORATE DOWNSIZINGS IMPACT RELOCATION AND REAL ESTATE
Reporting on the relocation and real estate services segment, Kunisch
noted, "Results for the year were substantially below prior year. This major
shortfall in profits came from steps undertaken this year to integrate our
Canadian acquisition and refocus and realign our relocation business segment
to meet a changing marketplace. We have taken steps to significantly improve
cost efficiency, unbundle our traditional products, and aggressively expand
our destination services and other fee-based real estate products. "
OUTLOOK FOR FISCAL 1995
Kunisch concluded, "In fiscal 1995, we expect another excellent year from
our vehicle management business aided by significant improvements in Europe.
We likewise, expect good recovery performance from our relocation and real
estate services business reflecting the results of our cost reduction actions
and expanded asset management volume in handling foreclosed properties for the
financial services industry. We expect growth in fiscal 1995 to be more evenly
distributed over our three business segments than in recent years, thereby
enabling us to again meet our stated growth objectives."
ABOUT PHH
Founded in 1946, PHH Corporation (NYSE:PHH) is a $4.8 billion
transnational business services organization. PHH and its operating units
deliver productivity gains and expense management by providing vehicle, fuel,
relocation, real estate and mortgage banking services to more than 3,000 major
corporations and organizations in North America, the United Kingdom and
Europe.
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PHH Corporation and Subsidiaries
Consolidated Statements of Income
(Thousands of dollars except per share data)
<TABLE>
<CAPTION>
Three Months Year
Ended April 30 Ended April 30
1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Revenues:
Vehicle management services $303,421 $281,495 $1,162,483 $1,069,484
Relocation and real estate services 196,962 205,573 816,261 829,336
Mortgage banking services 33,543 28,022 155,935 122,111
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533,926 515,090 2,134,679 2,020,931
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Operating expenses:
Direct costs of operating leases 207,420 189,390 808,894 707,542
Costs, including interest, of carrying 169,898 180,739 717,793 734,640
and
Direct costs of mortgage banking 12,259 11,725 57,091 47,288
services
Interest 31,925 32,992 138,617 150,894
Selling, general and administrative 81,829 72,502 302,488 286,329
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503,331 487,348 2,024,883 1,926,693
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Income before taxes 30,595 27,742 109,796 94,238
Income taxes 12,440 11,119 45,238 37,821
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Net income $18,155 $16,623 $64,558 $56,417
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Net income per share $1.03 $0.95 $3.64 $3.25
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Number of shares used in calculation 17,741 17,357
of net income per share (in thousands)
</TABLE>
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