<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended: SEPTEMBER 30, 1995
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
-------- --------
Commission file number 0-16271
-------
DVI, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 22-2722773
------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
500 HYDE PARK
DOYLESTOWN, PENNSYLVANIA 18901
------------------------ ----------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number including area code: (215) 345-6600
--------------
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 issuer's classes of
common stock, as of the latest practical date:
Common Stock, $.005 par value - 9,641,898 shares as of October 31, 1995.
<PAGE> 2
DVI, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PAGE
NUMBER
------
<S> <C>
PART I. FINANCIAL INFORMATION:
- ---------------------------------
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets -
September 30, 1995 (unaudited) and June 30, 1995 . . . . . . . . . . . . . . . . . . . . 3-4
Consolidated Statements of Operations -
Three months ended September 30, 1995 and 1994 (unaudited) . . . . . . . . . . . . . . 5
Consolidated Statements of Shareholders' Equity -
July 1, 1994 through September 30, 1995 (unaudited) . . . . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows -
Three months ended September 30, 1995 and 1994 (unaudited) . . . . . . . . . . . . . . 7-8
Notes to Consolidated Financial Statements (unaudited) . . . . . . . . . . . . . . . . . . 9-10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . 11
PART II. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
- ----------------------------
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>
2
<PAGE> 3
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
1995 1995
-------------- --------
(unaudited)
<S> <C> <C>
CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . $ 3,635 $ 1,953
---------- ----------
CASH AND SHORT-TERM INVESTMENTS, RESTRICTED . . . . . . . . . . . . . . . 11,485 12,241
---------- ----------
RECEIVABLES:
Investment in Direct Financing Leases and
Notes Secured by Equipment:
Receivable in installments . . . . . . . . . . . . . . . . . . . . . 447,366 427,671
Receivable in installments - related parties . . . . . . . . . . . . . 26,507 23,828
Residual valuation . . . . . . . . . . . . . . . . . . . . . . . . . . 3,489 3,578
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75,051) (74,959)
---------- ----------
Net investment in direct financing leases and
notes secured by equipment . . . . . . . . . . . . . . . . . . . 402,311 380,118
--------- ----------
Other Receivables:
From sale of leases and notes secured by equipment . . . . . . . . . . 113 113
Patient service accounts receivable . . . . . . . . . . . . . . . . . 219 375
Notes collateralized by medical receivables . . . . . . . . . . . . . . 22,810 22,487
---------- ----------
Total other receivables . . . . . . . . . . . . . . . . . . . . . . 23,142 22,975
---------- ----------
Less: Allowance for possible losses on receivables . . . . . . . . . . . . (3,694) (3,282)
---------- ----------
NET RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421,759 399,811
---------- ----------
EQUIPMENT ON OPERATING LEASES
(net of accumulated depreciation of $1,956 at
September 30, 1995 and $1,646 at June 30, 1995) . . . . . . . . . . . . 2,604 2,722
---------- ----------
FURNITURE AND FIXTURES
(net of accumulated depreciation of $826 at
September 30, 1995 and $726 at June 30, 1995) . . . . . . . . . . . . . 1,688 1,468
---------- -----------
INVESTMENTS IN INVESTEES . . . . . . . . . . . . . . . . . . . . . . . . . 7,638 7,656
---------- -----------
GOODWILL, NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,833 1,867
---------- -----------
OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,405 5,213
---------- -----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 456,047 $ 432,931
========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE> 4
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS EXCEPT SHARE DATA)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
1995 1995
------------- --------
(Unaudited)
<S> <C> <C>
ACCOUNTS PAYABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,983 $ 6,023
--------- ----------
OTHER ACCRUED EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . 7,111 7,639
--------- ----------
BORROWINGS UNDER WAREHOUSE FACILITIES . . . . . . . . . . . . . . . . . . . 154,573 155,172
--------- ----------
DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,712 4,717
--------- ----------
LONG-TERM DEBT, NET:
Discounted receivables (primarily limited recourse) . . . . . . . . . . 183,517 205,376
Convertible subordinated notes . . . . . . . . . . . . . . . . . . . . 13,780 13,754
--------- ----------
Total long-term debt, net . . . . . . . . . . . . . . . . . . . . . 197,297 219,130
--------- ----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . 384,676 392,681
--------- ----------
SHAREHOLDERS' EQUITY (Note 4):
Preferred Stock, $10.00 par value; authorized
100,000 shares; no shares issued
Common Stock, $.005 par value; authorized
13,000,000 shares; outstanding 9,620,456 shares at
September 30, 1995 and 6,711,680 shares at June 30, 1995 . . . . . . 48 34
Additional capital . . . . . . . . . . . . . . . . . . . . . . . . . . 58,625 29,281
Unrealized gain on available-for-sale investments,
net of deferred taxes of $763 at September 30,
1995 and $769 at June 30, 1995 . . . . . . . . . . . . . . . . . . . 1,049 1,061
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,649 9,874
--------- ----------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . 71,371 40,250
--------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . . . . . . $ 456,047 $ 432,931
========= ==========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE> 5
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS OF DOLLARS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
------------------------
1995 1994
-------- ---------
<S> <C> <C>
FINANCE AND OTHER INCOME:
Amortization of finance income . . . . . . . . . . . . . . . . . $10,739 $6,552
Gain on sale of financing transactions, net . . . . . . . . . . . 1,403
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . 562 645
------- ------
Total finance and other income . . . . . . . . . . . . . . . . 12,704 7,197
Interest expense . . . . . . . . . . . . . . . . . . . . . . . 6,990 4,151
------- ------
MARGINS EARNED 5,714 3,046
Selling, general and administrative expense . . . . . . . . . . . 2,073 1,808
Provision for possible losses on receivables . . . . . . . . . . 450 353
------- ------
EARNINGS BEFORE PROVISION FOR INCOME TAXES . . . . . . . . . . . . . 3,191 885
PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . . . . . . . 1,416 372
------- ------
NET EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,775 $ 513
======= ======
NET EARNINGS PER SHARE (Note 2):
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .20 $ .08
======= ======
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . $ .19 $ .08
======= ======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE> 6
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
UNREALIZED
GAIN ON
COMMON STOCK AVAILABLE- TOTAL
--------------------- ADDITIONAL FOR-SALE RETAINED SHAREHOLDERS'
SHARES AMOUNT CAPITAL INVESTMENTS EARNINGS EQUITY
---------- ------ ---------- ----------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
BALANCES AT JULY 1, 1994 . . . . . . . . . . 6,567,295 $33 $28,155 $ $ 5,805 $33,993
Issuance of common stock upon:
Exercise of stock options . . . . . . 97,216 1 626 627
Conversion of subordinated notes . . . 47,169 500 500
Unrealized gain on available-for-
sale investments, net of
deferred taxes of $769 . . . . . . . . 1,061 1,061
Net earnings . . . . . . . . . . 4,069 4,069
--------- --- ------- ------ ------- -------
BALANCES AT JUNE 30, 1995 . . . . . . . . . . . 6,711,680 34 29,281 1,061 9,874 40,250
Issuance of common stock upon:
Equity offering . . . . . . . . . . 2,875,000 14 29,048 29,062
Exercise of stock options
and warrants . . . . . . . . . . . 33,776 296 296
Unrealized loss on available-for-
sale investments, net of
deferred taxes of $6 . . . . . . . . . (12) (12)
Net earnings. . . . . . . . . . . . . . . . 1,775 1,775
--------- --- ------- ------ ------- -------
BALANCES AT SEPTEMBER 30, 1995 . . . . . . . . 9,620,456 $48 $58,625 $1,049 $11,649 $71,371
========= === ======= ====== ======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE> 7
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
---------------------------
1995 1994
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,775 $ 513
-------- --------
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . 2,219 1,197
Additions to allowance accounts, net . . . . . . . . . . . . . . . 412 480
Gain on sale of financing transactions, net . . . . . . . . . . . (1,403)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . 1 233
Changes in assets and liabilities:
(Increases) decreases in:
Cash and short-term investments, restricted . . . . . . . . . 756 385
Other receivables . . . . . . . . . . . . . . . . . . . . . . (2,009) 548
Receivables from sale of leases and notes secured by equipment 794
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . (192) 2,915
Increases (decreases) in:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 14,960 (16,240)
Other accrued expenses . . . . . . . . . . . . . . . . . . . . (528) (2,667)
-------- --------
Total adjustments . . . . . . . . . . . . . . . . . . . . . . 14,216 (12,355)
-------- --------
Net cash provided by (used in) operating activities . . . . . . . . 15,991 (11,842)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of equipment acquired . . . . . . . . . . . . . . . . . . . . . . (75,805) (50,410)
Receipts in excess of amounts included in income and proceeds from
sales of financing transactions . . . . . . . . . . . . . . . . . . 55,598 9,030
Net increase in notes collateralized by medical receivables . . . . . (323) (1,219)
Furniture and fixtures additions . . . . . . . . . . . . . . . . . . . (314) (80)
-------- --------
Net cash (used in) investing activities . . . . . . . . . . . . . . ($20,844) ($42,679)
-------- --------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
7
<PAGE> 8
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED)
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
--------------------------
1995 1994
----------- ---------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . $ 296 $ 123
Equity offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,062
Borrowings:
Warehouse facilities . . . . . . . . . . . . . . . . . . . . . . . 119,826 81,855
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . 20,242
Repayments:
Warehouse facilities . . . . . . . . . . . . . . . . . . . . . . . (120,425) (32,979)
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . (22,224) (14,421)
---------- ---------
Net cash provided by financing activities . . . . . . . . . . . . . . 6,535 54,820
---------- ---------
NET INCREASE IN CASH AND
CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,682 299
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . 1,953 1,714
---------- ---------
CASH AND CASH EQUIVALENTS,
END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,635 $ 2,013
========== =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,714 $ 4,354
========== =========
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 235 $ 466
========== =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
8
<PAGE> 9
DVI, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared pursuant
to the rules and regulations of the Securities and Exchange Commission
("Commission"). Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles ("GAAP") for
complete financial statements. The consolidated financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's latest Annual Report on Form 10-K.
In the opinion of management, the consolidated financial statements contain all
adjustments, consisting only of normal recurring adjustments, considered
necessary for a fair statement of the consolidated balance sheets as of
September 30, 1995 and June 30, 1995, the consolidated statements of operations
for the three month periods ended September 30, 1995 and 1994, the consolidated
statements of shareholders' equity for the period from July 1, 1994 through
September 30, 1995, and the consolidated statements of cash flows for the three
month periods ended September 30, 1995 and 1994. The results of operations for
the three month period ended September 30, 1995, are not necessarily indicative
of the results of operations to be expected for the entire fiscal year ending
June 30, 1996.
Certain amounts as previously reported have been reclassified to conform to the
September 30, 1995 presentation.
NOTE 2 - NET EARNINGS PER SHARE
Primary earnings per common share are based on the weighted average number of
shares of common stock and common stock equivalents outstanding during the
respective periods. The weighted average number of shares was 8,843,000 and
6,801,000 for primary earnings per share for the three month periods ended
September 30, 1995 and 1994 respectively and 10,356,000 and 6,839,000 for fully
diluted earnings per share. Fully diluted earnings per share assumes
conversion of the subordinated notes as of the beginning of the period. Fully
diluted earnings per share was the same as primary for the three month period
ended September 30, 1994.
9
<PAGE> 10
NOTE 3 - HEDGING TRANSACTIONS
The Company's equipment financing transactions are all structured on a fixed
interest rate basis. The Company funds these transactions using variable rate
interim funding facilities until permanent funding is obtained, generally
through asset securitization. Because funds are borrowed through interim
funding facilities, the Company uses hedging techniques to protect its interest
rate margins during the period that interim funding facilities are used. The
Company's strategy is to hedge its portfolio by either assuming a short
position in Treasury notes of comparable maturity or entering into Treasury
lock transactions whereby the Company will either pay or receive funds based on
price movements of Treasury notes having a comparable maturity to the Company's
fixed rate portfolios. The Company believes this strategy hedges its portfolio
of fixed rate equipment financing contracts while waiting for permanent
securitization funding thus stabilizing the Company's weighted average
borrowing rate. The Company has not altered its underlying asset structure
through hedging activities but does have liabilities to cover its hedging
position in the event there is an upward movement in interest rates and a
corresponding decline in the value of the Treasury notes in which it has taken
short positions or contracts.
On September 30, 1995, the Company had $54.0 million of outstanding financial
instruments that were matched either to specific financing transactions or the
Company's existing portfolio:
SCHEDULE OF TREASURY SHORTS
AND TREASURY LOCKS
<TABLE>
<CAPTION>
Notional Amounts
----------------
Three Months
Ended September 30, 1995
------------------------
<S> <C>
Beginning Balance $ 0
New Contracts 54,000,000
Terminated Contracts 0
Expired Contracts 0
-----------
Ending Balance $54,000,000
===========
</TABLE>
When the Company's hedging activities are matched to specific borrowings
relating to securitizations, gains or losses from hedging positions are
reflected as a decrease or increase in the interest expense and thus the gain
or loss is spread over the remaining term of the transactions securitized.
Gains and losses from hedging are reflected as an increase or decrease in the
gain on sale proceeds when transactions are funded through whole loan sales.
NOTE 4 - EQUITY OFFERING
In August 1995, the Company completed a public offering of 2,875,000 shares of
its Common Stock for which it received net proceeds of $29.1 million. The net
proceeds were utilized to reduce short-term indebtedness and for general
corporate purposes.
10
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Total finance and other income increased to $12.7 million in the three month
period ended September 30, 1995 from $7.2 million for the same period of the
prior year. Amortization of finance income increased to $10.7 million from
$6.6 million in the prior year. The increase was primarily a result of the
overall increase in the size of the Company's net financed receivables.
The gain on sale of financing transactions, net was $1.4 million in the three
month period ended September 30, 1995. The increase relates to the Company's
need to fund certain loans through whole loan sales to manage borrower
concentrations.
Other income was relatively unchanged in the three month period ended September
30, 1995 as compared to 1994.
Interest expense increased to $7.0 million for the three months ended September
30, 1995 from $4.2 million for the three months ended September 30, 1994. The
increase in interest expense is primarily a result of the growth of the
Company's loan portfolio. As a percentage of total finance and other income,
interest expense declined to 55.0% in the three month period ended September
30, 1995 as compared to 57.7% in the three month period ended September 30,
1994.
Selling, general and administrative expense (S,G&A) increased to $2.1 million
from $1.8 million in comparing the three month period ended September 30, 1995
to the prior year. As a percentage of total finance and other income, however,
S,G&A declined to 16.3% from 25.1% for the same period in the prior year.
The provision for possible losses on receivables was $450,000 as compared to
$353,000 for the same period of the prior year. On a quarterly basis, the
Company evaluates the collectibility of its receivables and records a provision
for amounts deemed uncollectible. In the opinion of Management, the provisions
are adequate based on current trends in the Company's delinquencies and losses.
Earnings before provision for income taxes increased 260.6% to $3.2 million for
the quarter ended September 30, 1995 as compared to $885,000 for the quarter
ended September 30, 1994. Net earnings increased 246.0% to $1.8 million ($0.20
per share) from $513,000 ($0.08 per share).
FINANCIAL CONDITION
Total Shareholders' Equity increased by $31.1 million to $71.4 million at
September 30, 1995 from $40.3 million at June 30, 1995. The increase was due
primarily to an offering of 2,875,000 shares of the Company's common stock
which generated net proceeds of $29.1 million.
The Company believes that its present warehouse and permanent funding sources
are sufficient to fund the Company's current needs for its equipment financing
business. As of November 3, 1995, the Company had available an aggregate of
$352.0 million in warehouse facilities of which $180.5 million was utilized.
The Company has completed eight securitizations or other structured finance
transactions totalling $467.8 million, including two public debt issues of
$75.7 million and $90.0 million and six private placements of debt and whole
loan sales totalling $302.1 million. The Company expects to continue to use
securitization, on both a public and private basis, as its principal means to
permanently fund its loans for the foreseeable future, except when issues of
borrower concentration exist that warrant the sale of loans.
11
<PAGE> 12
PART II - OTHER INFORMATION
Items 1 through 5 have been omitted because the related information is either
inapplicable or has been previously reported.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27 - Financial Data Schedule.
(b) The Company has not filed any reports on Form 8-K during the
quarter ended September 30, 1995.
12
<PAGE> 13
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.
DVI, INC.
---------------------------------------
(Registrant)
By: /s/ MICHAEL A. O'HANLON
---------------------------------------
Michael A. O'Hanlon
President and Chief Operating Officer
By: /s/ STEVEN R. GARFINKEL
---------------------------------------
Steven R. Garfinkel
Senior Vice President and
Chief Financial Officer
Date: November 14, 1995
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<CASH> 15,120,000
<SECURITIES> 0
<RECEIVABLES> 421,759,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 2,514,000
<DEPRECIATION> 826,000
<TOTAL-ASSETS> 456,047,000
<CURRENT-LIABILITIES> 182,667,000
<BONDS> 197,297,000
<COMMON> 48,000
0
0
<OTHER-SE> 71,323,000
<TOTAL-LIABILITY-AND-EQUITY> 456,047,000
<SALES> 0
<TOTAL-REVENUES> 12,704,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,073,000
<LOSS-PROVISION> 450,000
<INTEREST-EXPENSE> 6,990,000
<INCOME-PRETAX> 3,191,000
<INCOME-TAX> 1,416,000
<INCOME-CONTINUING> 1,775,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,775,000
<EPS-PRIMARY> .20
<EPS-DILUTED> .19
</TABLE>
