<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event) June 17, 1998
ASSOCIATES FIRST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 06-0876639
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
2-44197
(Commission File Number)
250 E. Carpenter Freeway, Irving, Texas 75062-2729
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 652-4000
<PAGE>
Item 5. Other Events.
On June 17, 1998, Associates First Capital Corporation (the "Company")
publicly released a schedule containing pro forma managed basis financial
information and key data for each quarter of and for the years ended
December 31, 1996 and 1997, and for the quarter ended March 31, 1998.
From time to time the Company sells finance receivables through
securitization transactions and retains servicing responsibilities.
Finance charges, interest expense and credit losses on the servicing
portfolio are included in investment and other income on the statement of
earnings. The pro forma managed basis financial information presented in
the schedule reclassifies these items from investment and other income into
line items on the financial statements on the same basis as if the
receivables had not been sold. Management believes this presentation is
useful in evaluating the trends in financial information and key data.
This pro forma information is not a restatement or change in the previously
reported results of the Company. The schedule presents the Company's pro
forma historical managed and owned financial information that may be used
on a comparative basis with similar information expected to be provided as
part of its periodic reporting in the future. A copy of the schedule is
attached as an Exhibit hereto and incorporated by reference herein. This
schedule should be read in conjunction with the Company's financial
statements for the relevant periods.
Item 7. Financial Statements and Exhibits
( c ) Exhibits
20- Pro forma managed basis financial information and key data of
Associates First Capital Corporation for each quarter of and
for the years ended December 31, 1996 and 1997, and for the
quarter ended March 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 hereunto duly authorized.
ASSOCIATES FIRST CAPITAL CORPORATION
By: /s/ John F. Stillo
Senior Vice President and Comptroller
Date: June 17, 1998
<PAGE>
<PAGE>
Exhibit 20
ASSOCIATES FIRST CAPITAL CORPORATION
<TABLE>
<CAPTION>
Pro Forma Managed Basis Financial Information
and Key Data ($ in millions except per share data)
1996
Three Months Ended or At Full
3/31 6/30 9/30 12/31 Year 1996
--------- ---------- ---------- ---------- ----------
<C> <S> <S> <S> <S> <S>
Revenue
Finance charges $ 1,505.0 $ 1,584.7 $ 1,707.2 $ 1,781.2 $ 6,578.1
Insurance premiums 93.1 100.5 104.0 104.5 402.1
Investment and
other income 46.9 44.3 47.5 41.4 180.1
--------- ---------- ---------- ---------- ----------
1,645.0 1,729.5 1,858.7 1,927.1 7,160.3
Expenses
Interest expense 580.5 605.5 652.1 676.7 2,514.8
Operating expenses 461.2 483.2 518.5 540.0 2,002.9
Provision for losses 252.3 276.2 268.1 293.2 1,089.8
Insurance benefits
paid or provided 34.2 37.0 38.7 38.3 148.2
--------- ---------- ---------- ---------- ----------
1,328.2 1,401.9 1,477.4 1,548.2 5,755.7
--------- ---------- ---------- ---------- ----------
Earnings before taxes 316.8 327.6 381.3 378.9 1,404.6
Provision for income taxes 124.5 127.4 151.1 144.6 547.6
--------- ---------- ---------- ---------- ----------
Net earnings $ 192.3 $ 200.2 $ 230.2 $ 234.3 $ 857.0
========= ========== ========== ========== ==========
EPS $ 0.55 $ 0.58 $ 0.66 $ 0.68 $ 2.47
Avg. Diluted Shares
Outstanding (000) 346,654 347,227 347,318 347,525 347,451
Key Data
Net interest margin
(%AMR <F1>) 9.30 % <F2> 9.26 % <F2> 9.11 % 9.14 % 9.20 % <F2>
Efficiency ratio 44.8 44.5 44.4 44.6 44.5
Net credit losses
(% AMR <F1>) 1.74 1.94 2.10 2.18 2.00
60+Days delinquency
(% mgd. gross recs.) 1.78 1.77 1.97 2.11 2.11
Return on avg. managed assets 1.92 <F2> 1.84 <F2> 1.91 1.87 1.89 <F2>
Managed receivables
End of period $ 41,071.1 $ 44,307.5 $ 47,811.8 $ 48,622.8 $ 48,622.8
Average 40,382.1 42,656.0 46,304.7 48,319.0 44,419.8
Managed assets
End of period 42,525.1 45,834.4 49,337.3 50,378.3 50,378.3
Average 41,914.4 44,569.7 48,261.7 49,891.6 46,100.1
Balance Sheet Information
($ in millions)
Net Receivables
End of period $ 41,071.1 $ 43,589.5 $ 46,025.1 $ 46,512.9 $ 46,512.9
Average 40,382.1 42,292.8 45,280.7 46,269.3 43,554.9
Allowance for losses 1,368.8 1,469.0 1,535.1 1,563.1 1,563.1
% of net finance recs. 3.33 % 3.37 % 3.34 % 3.36 % 3.36 %
Loss coverage
(trailing 4Q losses) 2.09 x 2.04 x 1.93 x 1.77 x 1.77 x
Debt-to-Adjusted Equity <F3> 9.36 x <F2> 9.07 x 9.27 x 8.89 x 8.89 x
_ _ _ _ _
<FN>
<F1> Average managed receivables
<F2> Excludes effect of IPO
<F3> Adjusted equity excludes push-down goodwill created by Ford acquisition of foreign
affiliates in 1989.
</FN>
</TABLE>
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<TABLE>
<CAPTION>
Pro Forma Managed Basis Financial Information
and Key Data ($ in millions except per share data)
1997 Three months
Three Months Ended or At Full Ended or At
3/31 6/30 9/30 12/31 Year 1997 3/31/98
--------- ---------- ---------- ---------- ---------- ----------
<C> <S> <S> <S> <S> <S> <S>
Revenue
Finance charges $ 1,821.5 $ 1,938.3 $ 2,004.5 $ 2,067.9 $ 7,832.2 $ 2,123.0
Insurance premiums 99.1 105.3 105.5 110.8 420.7 112.4
Investment and
other income 45.6 52.2 57.6 62.2 217.6 52.9
--------- ---------- ---------- ---------- ---------- ----------
1,966.2 2,095.8 2,167.6 2,240.9 8,470.5 2,288.3
Expenses
Interest expense 674.0 721.5 761.7 789.0 2,946.2 806.6
Operating expenses 531.2 571.6 603.0 633.8 2,339.6 620.0
Provision for losses 347.4 377.0 335.1 339.5 1,399.0 372.9
Insurance benefits
paid or provided 36.1 36.7 34.7 38.2 145.7 42.8
--------- ---------- ---------- ---------- ---------- ----------
1,588.7 1,706.8 1,734.5 1,800.5 6,830.5 1,842.3
--------- ---------- ---------- ---------- ---------- ----------
Earnings before taxes 377.5 389.0 433.1 440.4 1,640.0 446.0
Provision for income taxes 139.7 144.0 162.2 162.4 608.3 165.0
--------- ---------- ---------- ---------- ---------- ----------
Net earnings $ 237.8 $ 245.0 $ 270.9 $ 278.0 $ 1,031.7 $ 281.0
========= ========== ========== ========== ========== ==========
EPS $ 0.68 $ 0.71 $ 0.78 $ 0.80 $ 2.97 $ 0.81
Avg. Diluted Shares
Outstanding (000) 347,758 347,537 348,170 348,301 347,943 348,765
Key Data
Net interest margin
(% AMR <F1>) 9.09 % 9.19 % 9.02 % 8.99 % 9.06 % 8.83 %
Efficiency ratio 42.3 42.7 44.0 44.8 43.5 43.1
Net credit losses
(% AMR <F1>) 2.20 2.37 2.37 2.33 2.32 2.31
60+Days delinquency
(% mgd.gross recs.) 2.14 2.17 2.28 2.15 2.15 2.18
Return on avg. managed assets 1.85 1.80 1.91 1.89 1.86 1.82
Managed receivables
End of period $ 50,299.3 $ 54,083.9 $ 55,862.7 $ 58,406.5 $ 58,406.5 $ 61,048.8
Average 50,483.5 52,948.8 55,128.9 56,927.7 53,899.7 59,614.0
Managed assets
End of period 51,809.0 55,507.9 57,427.5 60,154.8 60,154.8 63,564.0
Average 51,489.2 54,507.6 56,636.0 58,722.0 55,364.3 61,801.4
Balance Sheet Information
($ in millions)
Net Receivables
End of period $ 47,701.1 $ 51,617.2 $ 52,677.8 $ 55,215.6 $ 55,215.6 57,631.3
Average 47,555.6 50,416.7 52,334.4 53,784.6 51,110.5 56,307.3
Allowance for losses 1,675.9 1,849.5 1,891.4 1,949.9 1,949.9 2,014.9
% of net finance recs. 3.51 % 3.58 % 3.59 % 3.53 % 3.53 % 3.50 %
Loss coverage
(trailing 4Q losses) 1.70 x 1.70 x 1.62 x 1.59 x 1.59 x 1.56 x
Debt-to-Adjusted Equity <F2> 8.73 x 9.10 x 8.85 x 8.83 x 8.83 x 8.95 x
_ _ _ _ _
<FN>
<F1> Average managed receivables
<F2> Adjusted equity excludes push-down goodwill created by Ford acquisition of foreign
affiliates in 1989.
</FN>
Released on June 17, 1998
</TABLE>
