<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: March 31, 1997
--------------
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 - 10,500,398 shares as of April 30, 1997.
- --------------------------------------------------------------------------
<PAGE> 2
DVI, INC. AND SUBSIDIARIES
--------------------------
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION: PAGE
- ------------------------------- NUMBER
------
<S> <C>
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets -
March 31, 1997 (unaudited) and June 30, 1996........................ 3-4
Consolidated Statements of Operations -
Three and nine months ended March 31, 1997 and 1996 (unaudited)..... 5
Consolidated Statements of Shareholders' Equity -
July 1, 1995 through March 31, 1997 (unaudited)..................... 6
Consolidated Statements of Cash Flows -
Nine months ended March 31, 1997 and 1996 (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>
2
<PAGE> 3
DVI, INC. AND SUBSIDIARIES
--------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
(IN THOUSANDS OF DOLLARS EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1997 1996
--------- ---------
(Unaudited)
<S> <C> <C>
Cash and cash equivalents ................................................ $ 2,216 $ 2,376
Cash and cash equivalents, restricted .................................... 28,273 32,522
Amounts due from portfolio sale .......................................... 51,811 54,797
Receivables:
Investment in direct financing leases and notes secured by equipment or
medical receivables:
Receivable in installments .......................................... 524,582 460,592
Receivable in installments - related parties ........................ 10,575 16,999
Notes collateralized by medical receivables ......................... 71,555 34,338
Residual valuation .................................................. 6,405 4,347
Unearned income ..................................................... (68,544) (65,722)
--------- ---------
Net investment in direct financing leases and
notes secured by equipment or medical receivables ................. 544,573 450,554
Less: Allowance for possible losses on receivables .................... (4,867) (4,026)
--------- ---------
Net receivables .......................................................... 539,706 446,528
Equipment on operating leases
(net of accumulated depreciation of $2,598 at
March 31, 1997 and $2,152 at June 30, 1996) ........................... 4,528 3,845
Furniture and fixtures
(net of accumulated depreciation of $1,518 at
March 31, 1997 and $1,052 at June 30, 1996) ........................... 2,115 2,046
Investments in investees ................................................. 6,870 7,019
Goodwill, net ............................................................ 4,029 4,259
Other assets (including loans to shareholders of $344 at
March 31, 1997 and June 30, 1996) ..................................... 10,389 7,502
--------- ---------
Total assets ............................................................. $ 649,937 $ 560,894
========= =========
</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>
MARCH 31, JUNE 30,
1997 1996
--------- --------
(Unaudited)
<S> <C> <C>
Accounts payable ......................................... $ 25,558 $ 23,560
Other accrued expenses ................................... 15,034 11,650
Borrowings under warehouse facilities .................... 117,084 168,108
Deferred income taxes .................................... 4,745 4,745
Long-term debt, net:
Notes payable - financial institutions ................ 6,168 --
Securitized notes (primarily limited recourse) ........ 278,982 253,759
9 7/8% Senior notes due 2004 ......................... 95,950 --
Convertible subordinated notes ........................ 13,295 13,809
-------- --------
Total long-term debt, net ................................ 394,395 267,568
-------- --------
Total liabilities ........................................ 556,816 475,631
Shareholders' equity:
Preferred stock, $10.00 par value; authorized
100,000 shares; no shares issued .................... -- --
Common stock, $0.005 par value; authorized
25,000,000 shares; outstanding 10,500,098 shares at
March 31, 1997 and 10,409,370 shares at June 30, 1996 52 52
Additional capital .................................... 68,626 67,162
Retained earnings. .................................... 24,417 18,049
Cumulative translation adjustments .................... 26 --
-------- --------
Total shareholders' equity ............................... 93,121 85,263
-------- --------
Total liabilities and shareholders' equity ............... $649,937 $560,894
======== ========
</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 NINE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Finance and other income:
Amortization of finance income ............. $13,041 $11,853 $36,058 $32,998
Other income ............................... 1,978 1,299 5,090 3,516
------- ------- ------- -------
Total finance and other income ................ 15,019 13,152 41,148 36,514
Interest expense............................ 10,242 8,215 27,646 22,533
------- ------- ------- -------
Net interest and other income ................. 4,777 4,937 13,502 13,981
Net gain on sale of financing transactions . 2,910 1,895 7,876 4,959
------- ------- ------- -------
Net finance income ............................ 7,687 6,832 21,378 18,940
Selling, general and administrative expenses 3,472 2,741 9,486 7,064
Provision for possible losses on receivables 296 401 707 1,485
------- ------- ------- -------
Earnings before provision for income taxes and
equity in net loss of investees ............ 3,919 3,690 11,185 10,391
Provision for income taxes ................. 1,666 1,564 4,644 4,412
Equity in net loss of investees............. 82 -- 173 --
------- ------- ------- -------
Net earnings .................................. $ 2,171 $ 2,126 $ 6,368 $ 5,979
======= ======= ======= =======
Net earnings per share:
Primary .................................... $ 0.20 $ 0.20 $ 0.58 $ 0.61
======= ======= ======= =======
Fully diluted .............................. $ 0.19 $ 0.20 $ 0.54 $ 0.59
======= ======= ======= =======
</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- CUMULATIVE TOTAL
----------------- ADDITIONAL FOR-SALE RETAINED TRANSLATION SHAREHOLDERS'
SHARES AMOUNT CAPITAL INVESTMENTS EARNINGS ADJUSTMENT EQUITY
------ ------ ------- ----------- -------- ---------- ------
<S> <C> <C> <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
Currency translation adjustment 26 26
Issuance of common stock
upon exercise of stock
options and warrants ........ 34,125 864 864
Conversion of subordinated notes 56,603 600 600
Net earnings ................... 6,368 6,368
----------- --- ------- ------- ------- --- -------
Balances at March 31, 1997 ........ 10,500,098 $52 $68,626 $ -- $24,417 $26 $93,121
=========== === ======= ======= ======= === ======
</TABLE>
The accompanying notes are an integral part of
these consolidated financial statements.
<PAGE> 7
DVI, INC. AND SUBSIDIARIES
--------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
-------------------------------------------------
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
--------------------
1997 1996
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings .......................................................... $ 6,368 $ 5,979
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Equity in net loss of investees ................................. 173 --
Depreciation and amortization ................................... 7,556 5,900
Additions to allowance accounts ................................. 707 1,485
Net gain on sale of financing transactions ...................... (7,876) (4,959)
Deferred income taxes ........................................... -- (10)
Changes in assets and liabilities:
(Increases) decreases in:
Cash and cash equivalents, restricted ....................... 4,249 (11,012)
Amounts due from portfolio sale ............................. 2,986 --
Receivables ................................................. (5,237) (3,499)
Other assets ................................................ (2,109) (42)
Increases (decreases) in:
Accounts payable ............................................ 1,998 14,997
Other accrued expenses ...................................... 3,384 (706)
--------- ---------
Total adjustments ........................................... 5,831 2,154
--------- ---------
Net cash provided by operating activities ............................. 12,199 8,133
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of equipment acquired ............................................ (319,658) (233,663)
Portfolio receipts net of amounts included in income and proceeds
from sales of financing transactions ............................... 266,143 183,028
Net increase in notes collateralized by medical receivables ........... (33,111) (7,430)
Investments and advances to investees ................................ -- (2,509)
Furniture and fixtures additions ...................................... (536) (897)
--------- ---------
Net cash (used in) investing activities ............................ (87,162) (61,471)
</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>
NINE MONTHS ENDED
MARCH 31,
--------------------
1997 1996
---- ----
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options and warrants .. 864 8,620
Equity offering ......................... -- 28,963
Borrowings under:
Warehouse facilities ................. 394,119 387,129
Long-term debt ....................... 216,114 20,000
Repayments on:
Warehouse facilities ................. (445,206) (335,259)
Long-term debt ....................... (91,088) (53,866)
--------- ---------
Net cash provided by financing activities 74,803 55,587
--------- ---------
Net increase (decrease) in cash and
cash equivalents ........................ (160) 2,249
Cash and cash equivalents,
beginning of period ..................... 2,376 1,963
--------- ---------
Cash and cash equivalents,
end of period ........................... $ 2,216 $ 4,212
========= =========
CASH PAID DURING THE YEAR FOR:
Interest ................................ $ 26,575 $ 22,389
========= =========
Income taxes ............................ $ 3,485 $ 2,297
========= =========
</TABLE>
SUPPLEMENTAL DISCLOSURES OF NONCASH TRANSACTIONS:
In July 1996, $600,000 of convertible subordinated notes was converted into
common stock.
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 March
31, 1997 and June 30, 1996, the consolidated statements of operations for the
three and the nine month periods ended March 31, 1997 and 1996, the consolidated
statements of shareholders' equity for the period from July 1, 1995 through
March 31, 1997, and the consolidated statements of cash flows for the nine month
periods ended March 31, 1997 and 1996. The results of operations for the three
and nine month periods ended March 31, 1997 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
March 31, 1997 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 stock equivalents for primary earnings per share increased to 11,072,000
and 11,070,000 in the three and nine month periods ended March 31, 1997 from
10,758,000 and 9,842,000 for the same prior year periods. Weighted average
shares for fully diluted earnings per share increased to 12,383,000 and
12,381,000 for the three and nine month periods ended March 31, 1997 from
12,126,000 and 11,210,000 for the same periods of the prior year. Fully diluted
earnings per share assumes conversion of the subordinated notes as of the
beginning of the period.
9
<PAGE> 10
DVI, INC. AND SUBSIDIARIES
--------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(CONTINUED) (UNAUDITED)
NOTE 3 - HEDGE TRANSACTIONS
- ---------------------------
The Company's equipment loans are structured on a fixed interest rate basis.
When the Company originates equipment loans, it bases its pricing in part on the
"spread" it expects to achieve between the interest rate it charges its
equipment loan customers and the effective interest cost it will pay when it
permanently funds those loans. Increases in interest rates between the time the
loans are originated and the time they are permanently funded could narrow,
eliminate or even reverse the spread between the interest rate the Company
realizes on its equipment loans and the interest rate that the Company pays
under its warehouse facilities or under a permanent funding program. In an
attempt to protect itself against that risk, the Company uses a hedging
strategy.
The Company uses derivative financial instruments, such as forward rate
agreements, Treasury locks, and interest rate swaps, caps and collars, to manage
its interest rate risk. The derivatives are used to manage three components of
this interest rate risk: interest sensitivity adjustments, pricing of
anticipated loan securitizations and sales, and interest rate spread protection.
Forward rate agreements are for interest sensitivity adjustments in conjunction
with cash market activities and are used to extend the repricing period of
short-term floating rate warehouse facilities. Treasury locks and collars are
used to hedge the interest rate risk on anticipated loan securitizations and
sales. Treasury lock and collar transactions lock in specific rates and a narrow
range of rates, respectively, of Treasury notes having maturities comparable to
the average life of the anticipated securitizations and sales. Interest rate
swaps and caps are used for interest rate spread protection to protect from
rising interest rates in certain loan sale facilities where the cash flows from
the loans sold are fixed rate but the borrowing costs are variable rate.
At March 31, 1997, the Company had $40.0 million in forward rate agreements. In
addition, there were $60.0 million in Treasury lock transactions and $70.0
million in collars. The Company also had $27.1 million in interest rate swaps.
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 $15.0 and $41.1 million in the three
and nine month periods ended March 31, 1997 from $13.2 and $36.5 million for the
three and nine month periods ended March 31, 1996. Amortization of finance
income increased to $13.0 and $36.1 million from $11.9 and $33.0 million for the
three and nine month periods ended March 31, 1997 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 $2.0 and
$5.1 million in the three and nine month periods ended March 31, 1997 from $1.3
and $3.5 million in the comparable prior year periods. The increases were mainly
due to fees earned on larger portfolios and service fees earned on portfolios
sold.
Interest expense increased to $10.2 and $27.6 million for the three and nine
months ended March 31, 1997 from $8.2 and $22.5 million for the three and nine
months ended March 31, 1996. The increase is primarily a result of the growth of
the Company's loan portfolio. The Company's overall cost of funds increased
approximately 69 basis points from the second to third quarter of fiscal 1997,
primarily due to an increase in the proportion of liabilities represented by
higher-cost permanent financing and the issuance of 9 7/8% Senior Notes in
January 1997. As a percentage of finance and other income, interest expense
increased to 68.2% and 67.2% in the three and nine months ended March 31, 1997
as compared to 62.5% and 61.7% in the same periods in the prior year.
Net gain on sale of financing transactions increased to $2.9 and $7.9 million
for the three and nine months ended March 31, 1997 from $1.9 and $5.0 million
for the three and nine months ended for the same period of the prior fiscal
year. The net gain on sale for the third quarter of fiscal 1997 increased from
$1.9 million to $2.9 million as a result of a marked improvement in the cost of
executing loan sales. Loans sold during the three and nine month periods ended
March 31, 1997 were $53.0 and $169.8 million compared to $49.6 and $108.1
million during the same periods of the prior fiscal year.
Selling, general and administrative expenses for the third quarter ended March
31, 1997 increased by 26.7% to $3.5 million from $2.7 million for the same
quarter of the prior fiscal year. For the nine months ended March 31, 1997
selling, general and administrative expenses increased by 34.3% to $9.5 million
from $7.1 million for the same prior year period. 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 38.8% growth in managed net financed assets.
The provision for possible losses on receivables was $296,000 and $707,000 for
the three and nine month periods ended March 31, 1997 as compared to $401,000
and $1.5 million for the three and nine month periods ended March 31, 1996. 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 6.2% and 7.6% to $3.9 and $11.2 million for the three and nine month
periods ended March 31, 1997 compared to $3.7 and $10.4 million for the same
periods ended March 31, 1996. Net earnings increased 2.1% and 6.5% to $2.2 and
$6.4 million from $2.1 and $6.0 million in comparing the three and nine month
periods ended March 31, 1997 to the same periods ended March 31, 1996. Net
earnings per share remained unchanged at $0.20 for the quarter, but decreased
4.9% to $0.58 from $0.61 for the nine months ended March 31, 1997 when comapared
to the same 1996 period. The decrease in net earnings per share results from the
weighted average number of shares used in calculating net earnings per share
increasing 2.9% and 12.5% to 11.1
11
<PAGE> 12
million shares in both the three and nine month periods ended March 31, 1997
from 10.8 and 9.8 million shares in the three and nine month periods ended March
31, 1996.
FINANCIAL CONDITION
Total shareholders' equity increased by $7.9 million to $93.1 million at March
31, 1997 from $85.3 million at June 30, 1996. The increase was due primarily to
net earnings of $6.4 million, exercise of stock options and warrants for
$864,000 and conversion of subordinated notes for $600,000.
The Company believes that its present warehouse and permanent funding sources
are sufficient to fund the Company's current needs for its equipment and medical
receivables financing businesses.
At March 31, 1997, the Company had available an aggregate of $396.2 million in
warehouse facilities of which $123.5 million was utilized. During the third
quarter of fiscal 1997, the Company renewed its revolving credit facility and
increased its size to $128.0 million. During the first quarter and third quarter
of fiscal 1997, the Company established two $100.0 million warehouse facilities
with investment banking firms to fund certain equipment loans which are to be
securitized. In addition, in the first quarter the Company secured a $50.0
million warehouse credit facility to be used for securitizing its medical
accounts receivable-backed loans to healthcare providers.
On July 31, 1996, the Company completed a transaction raising $29.0 million
using as collateral the equity position the Company retains when it securitizes
equipment loans and leases.
On December 31, 1996, the Company obtained a $7.1 million facility with a
foreign bank to fund a portfolio of medical equipment contracts in Turkey.
On January 29, 1997, the Company obtained a $5.0 million facility to be used
mostly for loans and leases that do not conform to securitization criteria.
On January 30, 1997, the Company completed a public offering of $100.0 million
principal amount of 9 7/8% Senior Notes due 2004. Interest is payable
semiannually on February 1 and August 1 of each year, commencing on August 1,
1997. The Notes will be redeemable at the option of the Company in whole or in
part at any time on or after February 1, 2002 at specified redemption prices.
The proceeds from the sale are being used (i) to fund the Company's growth,
including increasing the amount of equipment and medical receivables loans the
Company can fund, (ii) to develop the Company's new international operations,
including the purchase of receivables originated outside the United States and
investment in joint ventures, (iii) for other working capital needs and (iv) for
general corporate purposes.
Through March 31, 1997, the Company has completed fifteen securitizations or
other structured finance transactions for medical equipment financings totaling
$960.0 million, including two public debt issues totaling $165.6 million and
thirteen private placements of debt and whole loan sales totaling $794.3
million. The Company expects for the foreseeable future to continue to use
securitization, on both a public and private basis, as its principal means to
permanently fund its loans.
12
<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
10.1 Interim Loan and Security Agreement, dated as of
February 20, 1997, between Prudential Securities Credit
Corporation and DVI Financial Services Inc.*
10.2 Second Amended and Restated Loan Agreement dated
February 28, 1997 by and among DVI Financial Services
Inc., the banks signatory thereto, Fleet Bank N.A. and
Corestates Bank, N.A., as Pre-Funding Lenders and Fleet
Bank N.A. as agent.*
10.3 Loan and Security Agreement, dated as of January 29,
1997, between Prime Bank and DVI Inc.*
27 Financial Data Schedule.
(b) Form 8-K
The Company filed a Current Report on Form 8-K dated January
27, 1997, transmitting the Underwriting Agreement, the
Indenture, the First Supplemental Indenture and the form of
global note with respect to its U.S.$100,000,000 9 7/8%
Senior Notes due 2004.
* To be filed by amendment.
13
<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: May 12, 1997
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 30,489
<SECURITIES> 0
<RECEIVABLES> 539,706
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 3,633
<DEPRECIATION> 1,518
<TOTAL-ASSETS> 649,937
<CURRENT-LIABILITIES> 157,676
<BONDS> 0
0
0
<COMMON> 52
<OTHER-SE> 93,069
<TOTAL-LIABILITY-AND-EQUITY> 649,937
<SALES> 0
<TOTAL-REVENUES> 17,929
<CGS> 10,242
<TOTAL-COSTS> 10,242
<OTHER-EXPENSES> 3,554
<LOSS-PROVISION> 296
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,837
<INCOME-TAX> 1,666
<INCOME-CONTINUING> 2,171
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,171
<EPS-PRIMARY> .20
<EPS-DILUTED> .19
</TABLE>
