<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 SECURITY 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.
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 issuers classes of
common stock, as of the latest practical date:
Common stock, $.005 par value - 10,497,923 shares as of October 31, 1996.
<PAGE> 2
DVI, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION: PAGE
NUMBER
------
<S> <C>
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets -
September 30, 1996 (unaudited) and June 30, 1996 . . . . . . . . . . . . . . . 3-4
Consolidated Statements of Operations -
Three months ended September 30, 1996 and 1995 (unaudited) . . . . . . . . . . 5
Consolidated Statements of Shareholders' Equity -
July 1, 1995 through September 30, 1996 (unaudited) . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows -
Three months ended September 30, 1996 and 1995 (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 . . . . . . . . . . . . 11-12
PART II. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
</TABLE>
<PAGE> 3
DVI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
1996 1996
----------- ----------
(Unaudited)
<S> <C> <C>
CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . $ 4,642 $ 2,376
CASH AND CASH EQUIVALENTS, RESTRICTED . . . . . . . . . . . . . . 25,272 32,522
AMOUNTS DUE FROM PORTFOLIO SALE . . . . . . . . . . . . . . . . . --- 54,797
RECEIVABLES:
Investment in Direct Financing Leases and
Notes Secured by Equipment or Medical Receivables:
Receivable in installments . . . . . . . . . . . . . . . . 477,842 462,780
Receivable in installments - related parties . . . . . . . 15,869 16,999
Notes collateralized by medical receivables . . . . . . . . 42,556 34,529
Residual valuation . . . . . . . . . . . . . . . . . . . . . 5,323 4,347
Unearned income . . . . . . . . . . . . . . . . . . . . . . (67,289) (65,722)
---------- ----------
Net investment in direct financing leases and
notes secured by equipment or medical receivables . . . . 474,301 452,933
Less: Allowance for possible losses on receivables . . . . . (3,808) (3,675)
----------- ----------
NET RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . 470,493 449,258
EQUIPMENT ON OPERATING LEASES
(net of accumulated depreciation of $2,581 at
September 30, 1996 and $2,152 at June 30, 1996) . . . . . . 4,219 3,845
FURNITURE AND FIXTURES
(net of accumulated depreciation of $1,197 at
September 30, 1996 and $926 at June 30, 1996) . . . . . . . 2,032 1,959
INVESTMENTS IN INVESTEES . . . . . . . . . . . . . . . . . . . . 6,996 7,019
GOODWILL, NET . . . . . . . . . . . . . . . . . . . . . . . . . . 4,182 4,259
OTHER ASSETS (including loans to shareholders of $344 at
September 30, 1996 and June 30, 1996) . . . . . . . . . . . 8,277 4,290
---------- ---------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . $526,113 $560,325
======== ========
</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,
1996 1996
------------ --------
(Unaudited)
<S> <C> <C>
ACCOUNTS PAYABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,912 $ 23,029
OTHER ACCRUED EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . 10,946 11,612
BORROWINGS UNDER WAREHOUSE FACILITIES . . . . . . . . . . . . . . . . . 138,160 168,108
DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . 4,745 4,745
LONG-TERM DEBT, NET:
Discounted receivables (primarily limited recourse) . . . . . . . . 247,400 253,759
Convertible subordinated notes . . . . . . . . . . . . . . . . . . . 13,238 13,809
--------- ---------
TOTAL LONG-TERM DEBT, NET . . . . . . . . . . . . . . . . . . . . . . . 260,638 267,568
--------- ---------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,401 475,062
--------- ---------
SHAREHOLDERS' EQUITY:
Preferred stock, $10.00 par value; authorized
100,000 shares; no shares issued . . . . . . . . . . . . . . . --- ---
Common stock, $0.005 par value; authorized
75,000,000 shares; outstanding 10,497,723 shares at
September 30, 1996 and 10,409,370 shares at June 30, 1996 . . . 52 52
Additional capital . . . . . . . . . . . . . . . . . . . . . . . . 68,606 67,162
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 20,054 18,049
--------- ---------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . 88,712 85,263
--------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . $526,113 $560,325
======== ========
</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 SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
-----------------------
1996 1995
---- ----
<S> <C> <C>
FINANCE AND OTHER INCOME:
Amortization of finance income . . . . . . . . . . . . . . . . . . . $11,116 $10,506
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 794
--------- ----------
Total finance and other income . . . . . . . . . . . . . . . . . . . . . 12,616 11,300
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,302 6,989
--------- ---------
NET INTEREST INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,314 4,311
Net gain on sale of financing transactions . . . . . . . . . . . . . 2,203 1,403
--------- ----------
NET FINANCE INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,517 5,714
Selling, general and administrative expenses . . . . . . . . . . . . 2,849 2,073
Provision for possible losses on receivables . . . . . . . . . . . . 143 450
---------- -----------
EARNINGS BEFORE PROVISION FOR INCOME TAXES AND EQUITY
IN NET LOSS OF INVESTEES . . . . . . . . . . . . . . . . . . . . . . 3,525 3,191
PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . 1,496 1,416
EQUITY IN NET LOSS OF INVESTEES . . . . . . . . . . . . . . . . . . . . . 24 ---
----------- ---------
NET EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,005 $ 1,775
======== =========
NET EARNINGS PER SHARE:
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .18 $ .20
========== ===========
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .18 $ .19
========== ===========
</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>
COMMON STOCK UNREALIZED
------------------ GAIN (LOSS) ON
$0.005 PAR VALUE AVAILABLE- TOTAL
-------------------- ADDITIONAL FOR-SALE RETAINED SHAREHOLDERS'
SHARES AMOUNT CAPITAL INVESTMENTS EARNINGS EQUITY
------ ------ ------- ----------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
BALANCES AT JULY 1, 1995 . . . . . 6,711,680 $ 34 $29,281 $ 1,061 $ 9,874 $40,250
Issuance of common stock
upon exercise of stock
options and warrants . . . . 822,690 4 8,934 8,938
Net proceeds from issuance
of common stock 2,875,000 14 28,947 28,961
Sale of available-for-sale
investments, net of
deferred tax benefit
of $769 . . . . . . . . . . (1,061) (1,061)
Net earnings . . . . . . . . . 8,175 8,175
---------- ---- ------- ------- ------- -------
BALANCES AT JUNE 30, 1996 . . . . . 10,409,370 52 67,162 -- 18,049 85,263
Issuance of common stock
upon exercise of stock
options and warrants . . 31,750 -- 844 844
Conversion of subordinated notes 56,603 -- 600 600
Net earnings . . . . . . . . . 2,005 2,005
---------- ---- ------- ------- ------- -------
BALANCES AT SEPT. 30, 1996 . . . . 10,497,723 $ 52 $68,606 $ -- $20,054 $88,712
========== ==== ======= ======= ======= =======
</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,
-------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings . . . . . . . . $ 2,005 $ 1,775
-------- --------
Adjustments to reconcile net earnings to net
cash provided by (used in) operating activities:
Equity in net loss of investees. . . . . . . . . . . . . . . . . . . 24 ---
Depreciation and amortization. . . . . . . . . . . . . . . . . . . . 2,246 2,219
Additions to allowance accounts . . . . . . . . . . . . . . . . . . 143 450
Net gain on sale of financing transactions . . . . . . . . . . . . . (2,203) (1,403)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . --- 1
Changes in assets and liabilities:
(Increases) decreases in:
Cash and cash equivalents, restricted . . . . . . . . . . . . . . 7,250 756
Amounts due from portfolio sale . . . . . . . . . . . . . . . . . 54,797 ---
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,828 (2,047)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,987) (192)
Increases (decreases) in:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . (117) 14,960
Other accrued expenses . . . . . . . . . . . . . . . . . . . . . . (666) (528)
-------- --------
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . 59,315 14,216
-------- --------
Net cash provided by operating activities . . . . . . . . . . . . . . . 61,320 15,991
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of equipment acquired . . . . . . . . . . . . . . . . . . . . . . (85,224) (75,805)
Portfolio receipts net of amounts included in income and proceeds
from sales of financing transactions . . . . . . . . . . . . . . . . 74,596 55,598
Net increase in notes collateralized by medical receivables . . . . . . (12,205) (323)
Furniture and fixtures additions . . . . . . . . . . . . . . . . . . . (219) (314)
-------- --------
Net cash (used in) investing activities . . . . . . . . . . . . . . . ($23,052) ($20,844)
-------- --------
</TABLE>
continued
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,
---------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options and warrants . . . . . . . . . . . . . . . . $ 1,444 $ 296
Equity offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- 29,062
Borrowings under:
Warehouse facilities . . . . . . . . . . . . . . . . . . . . . . . . 80,743 119,826
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,046 ---
Repayments on:
Warehouse facilities . . . . . . . . . . . . . . . . . . . . . . . . (110,691) (120,425)
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,544) (22,224)
---------- ---------
Net cash (used in) provided by financing activities . . . . . . . . . (36,002) 6,535
---------- ---------
NET INCREASE IN CASH AND
CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,266 1,682
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . 2,376 1,953
---------- ---------
CASH AND CASH EQUIVALENTS,
END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,642 $ 3,635
========== =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,073 $ 6,714
========== =========
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,366 $ 235
========== =========
</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
DVI, Inc.'s (the Company) latest annual report on Form 10-K for the fiscal year
ended June 30, 1996.
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, 1996 and June 30, 1996, the consolidated statements of operations
for the three month periods ended September 30, 1996 and 1995, the consolidated
statements of shareholders' equity for the period from July 1, 1995 through
September 30, 1996, and the consolidated statements of cash flows for the three
month periods ended September 30, 1996 and 1995. The results of operations for
the three month period ended September 30, 1996 are not necessarily indicative
of the results of operations to be expected for the entire fiscal year ending
June 30, 1997.
Certain amounts as previously reported have been reclassified to conform to the
September 30, 1996 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 of common stock and
common equivalents was 11,134,000 and 8,843,000 for primary earnings per share
for the three month periods ended September 30, 1996 and 1995, respectively,
and 12,446,000 and 10,356,000 for fully diluted earnings per share for the same
periods. Fully diluted earnings per share assumes conversion of the
subordinated notes as of the beginning of the period.
9
<PAGE> 10
NOTE 3 - HEDGE TRANSACTIONS
The Company's equipment financing transactions are structured on a fixed
interest rate basis. These transactions are funded using variable rate interim
funding facilities until permanent fixed rate funding is obtained, generally
through asset securitizations. Interest rate risk for the Company occurs
during the interim funding period when the borrowing costs are floating at a
variable rate. To minimize this interest rate risk, the Company uses hedging
techniques to fix its future long-term borrowing costs. Hedging vehicles used
include interest rate swaps which permanently lock in costs and treasury locks.
Treasury lock transactions lock in specific rates of treasury notes having
maturities comparable to the average life of the hedged securitization or loan
sale. This strategy stabilizes the weighted average borrowing rate until
permanent fixed rate funding occurs.
At September 30, 1996, there were $100.0 million in notional amounts of
treasury lock transactions. The Company also had notional amounts of $96.1
million in interest rate swaps where the Company pays a fixed rate and receives
a floating rate and $26.5 million in interest rate caps. These transactions
are to hedge the effect of interest rate changes on the cash flows repriced
monthly in an off-balance sheet loan sale.
When the hedge positions are matched to specific borrowings relating to
securitizations, gains or losses from the hedge positions are capitalized and
amortized to interest expense over the term of the securitized transaction.
When transactions are funded through whole loan sales, gains or losses from
hedge positions are recorded as an increase or decrease in the gain on sale
proceeds.
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 $29.0 million. The net
proceeds were utilized to reduce borrowings under warehouse facilities and for
general corporate purposes.
NOTE 5 - REDEMPTION OF WARRANTS AND UNITS AND CONVERTIBLE SUBORDINATED
NOTES
In January 1996, holders of 614,355 of the Company's warrants and units issued
in February 1991 redeemed their warrants and units for shares of the Company's
common stock at $12.00 or $12.60 per share by the final exercise date of
January 26, 1996. As a result of the redemption, the Company received cash
proceeds of $7.4 million.
In June 1994, the company issued convertible subordinated notes to related and
unrelated parties which are convertible at the option of the holder into
1,415,094 shares of common stock at $10.60 per share. In July 1996, $600,000
of these notes were converted into 56,603 shares of common stock. As of
September 30, 1996, cumulative conversions of these notes were $1,100,000 into
103,772 shares of common stock.
<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 $12.6 million in the three month
period ended September 30, 1996 from $11.3 million for the three month period
ended September 30, 1995. Amortization of finance income increased to $11.1
million from $10.5 million for the three month period ended September 30, 1996
as compared to the same period of the prior year. The increase was primarily a
result of the overall increase in the size of the Company's loan portfolio.
Other income increased to $1.5 million in the three month period ended
September 30, 1996 from $794,000 in the comparable prior year quarter. The
increase was mainly due to fees earned on larger portfolios, and service fees
of $352,000 earned on portfolios sold.
Interest expense increased to $8.3 million for the three months ended September
30, 1996 from $7.0 million for the three months ended September 30, 1995. The
increase is primarily a result of the growth of the Company's loan portfolio.
As a percentage of finance and other income, interest expense increased to
65.8% in the three months ended September 30, 1996 as compared to 61.9% in the
same period in the prior year.
Net gain on sale of financing transactions for the first quarter ended
September 30, 1996 increased to $2.2 million from $1.4 million for the same
period of the prior fiscal year. Loans sold during the first quarter ended
September 30, 1996 were $47.0 million compared to $32.4 million during the same
period of the prior fiscal year.
Selling, general and administrative expenses for the first quarter ended
September 30, 1996 increased by 37.4% to $2.8 million from $2.1 million for the
same quarter of the prior fiscal year. The increase in the Company's selling,
general and administrative expenses was primarily related to the expansion of
the Company's new domestic and international businesses and the Company's 32.5%
growth in managed net financed assets. This growth, in turn, resulted in a
17.9% increase in personnel to 132 employees from 112 one year earlier.
The provision for possible losses on receivables was $143,000 for the three
month period ended September 30, 1996 as compared to $450,000 for the three
month period ended September 30, 1995. 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 and equity in net loss of investees
increased 10.5% to $3.5 million for the quarter ended September 30, 1996
compared to $3.2 million for the quarter ended September 30, 1995. Net
earnings increased 13.0% to $2.0 million from $1.8 million in comparing the
quarter ended September 30, 1996 to the quarter ended September 30, 1995. Net
earnings per share decreased 10.0% to $0.18 from $0.20 when comparing the
quarter ended September 30, 1996 to September 30, 1995. The decrease in net
earnings per share results from the weighted average number of shares used in
calculating net earnings per share increasing 25.9% to 11.1 million in the
quarter ended September 30, 1996 from 8.8 million in the quarter ended
September 30, 1995.
FINANCIAL CONDITION
Total shareholders' equity increased by $3.4 million to $88.7 million at
September 30, 1996 from $85.3 million at June 30, 1996. The increase was due
primarily to net earnings of $2.0 million, exercise of stock options and
warrants for $844,000 and conversion of subordinated notes for $600,000.
The Company believes that its present warehouse and permanent funding sources
are sufficient to fund the
<PAGE> 12
Company's current needs for its equipment financing business. As of September
30, 1996, the Company had available an aggregate of $326.5 million in warehouse
facilities of which $138.2 million was utilized. During the first quarter of
fiscal 1997, the Company established a new $100.0 million warehouse line. On
July 31, 1996 the Company completed a transaction to raise $29.0 million by
using as collateral the equity position the Company retains when it securitizes
loans to providers of healthcare services. In addition, the Company secured a
$50.0 million warehouse credit facility to be used for securitizing its medical
accounts receivable-backed loans to healthcare providers.
The Company has completed twelve securitizations or other structured finance
transactions totaling $735.6 million, including two public debt issues totaling
$165.6 million and ten private placements of debt and whole loan sales totaling
$570.0 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.
Total equipment financing loans originated in the first quarter of fiscal 1997,
were $82.6 million compared with $74.3 million in the first quarter of fiscal
1996, an increase of 11.2%. Net financed assets totaled $478.5 million at
September 30, 1996, an increase of $48.5 million or 11.3% over the same prior
year period. Not included in net financed assets were the loans sold but still
serviced by the Company, which increased to $260.4 million as of September 30,
1996 compared to $218.6 million as of June 30, 1996. Managed net financed
assets, a combination of those appearing on the Company's balance sheet and
those which have been sold and are still serviced by the Company, totaled
$738.9 million as of September 30, 1996, representing a 9.4% increase over the
total as of June 30, 1996.
In the Company's receivable financing business, new commitments of credit in
the first quarter of fiscal 1997 were $18.8 million compared with $5.7 million
in the first quarter of fiscal 1996, an increase of 229.8%. Medical
receivables funded at September 30, 1996 totaled $46.7 million, an increase of
$23.9 million or 104.8% over the same prior year period.
<PAGE> 13
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) Exhibits
27.1 Financial Data Schedule
(b) The Company has not filed any reports on Form 8-K during the
quarter ended September 30, 1996.
<PAGE> 14
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 Executive Officer
By: /S/ STEVEN R. GARFINKEL
---------------------------------
Steven R. Garfinkel
Executive Vice President and
Chief Financial Officer
Date: November 11, 1996
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