<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 1998
- --------TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from ----------- to -------------------.
Commission file number: 0-16271
A. Full title to the plan and the address of the plan:
DVI Financial Services Inc. Employee Savings Plan
500 Hyde Park
Doylestown, PA 18901
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive offices.
DVI, Inc.
500 Hyde Park
Doylestown, PA 18901
215-345-6600
<PAGE> 2
Financial statements and exhibits
---------------------------------
(a) Financial statements and supplemental schedules
<TABLE>
<CAPTION>
Page no.
<S> <C>
The
Independent Auditors' report 1
Statement of Net assets available for benefits,
December 31, 1998 and 1997 2
Statements of changes in Net assets available for benefits 3-4
Notes to Financial statements 5-8
Supplemental Schedules as of December 31, 1998:
Item 27a--Schedule of Assets held for investment
purposes. 9
Item 27d--Schedule of Reportable transactions 10
Independent Auditors' Consent 11
</TABLE>
(b) The Statement of Net assets available for Plan benefits of the Plan as
of December 31, 1998 and the related statement of change in Net assets
available for the Plan benefits and supplemental schedules for the year
ended December 31, 1998, together with the Independent Auditors' Report and
Consent are attached and filed herewith.
-----------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Committee under the Plan, which administers the Plan, has duly caused
this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
DVI Financial Services Inc. Employee Savings Plan
/s/ Michael Smith
-----------------------------------
Michael Smith, Human Resources
Date: 6-28-99
<PAGE> 3
[LETTERHEAD OF DELOITTE & TOUCHE]
INDEPENDENT AUDITORS' REPORT
To the Trustees and Participants of the
DVI Financial Services, Inc. Employee Savings Plan
Doylestown, Pennsylvania
We have audited the accompanying statements of net assets available for benefits
of DVI Financial Services, Inc. Employee Savings Plan as of December 31, 1998
and 1997, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1998 and 1997, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of Assets Held
for Investment Purposes (27a) and Reportable Transactions (27d) are presented
for the purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental
information by fund in the statements of net assets available for benefits and
the statements of changes in net assets available for benefits is presented for
the purpose of additional analysis rather than to present the net assets
available for benefits and changes in net assets available for benefits of the
individual funds. The supplemental schedules and supplemental information by
fund is the responsibility of the Plan's management. Such supplemental schedules
and supplemental information by fund have been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, are fairly stated in all material respects when considered in relation
to the basic financial statements taken as a whole.
Deloitte & Touche LLP
May 14, 1999
<PAGE> 4
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997
---------- ----------
<S> <C> <C>
ASSETS:
Cash $ 24,237 $ --
Investments:
Shares of registered investment companies:
Prudential Equity Fund 1,208,241 1,009,519
Prudential World Fund 533,079 402,358
Prudential Allocation Fund 280,869 210,433
Prudential Utility Fund 306,375 227,133
Prudential Government Income Fund 88,328 103,832
Prudential Natural Resource Fund 63,907 58,213
Government Money Market Fund 246,144 186,396
DVI, Inc. Common Stock 436,307 248,111
---------- ----------
Total investments 3,163,250 2,445,995
---------- ----------
Receivables:
Participants' contribution 548 26,510
Employers' contribution 44 5,593
---------- ----------
Total receivables 592 32,103
---------- ----------
Loans to participants 98,816 78,673
---------- ----------
Total assets 3,286,895 2,556,771
---------- ----------
LIABILITIES:
Benefits payable 10,227 --
---------- ----------
Total liabilities 10,227 --
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $3,276,668 $2,556,771
========== ==========
</TABLE>
-2-
<PAGE> 5
<TABLE>
<CAPTION>
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL FUND INFORMATION
--------------------------------------------------------------------------------------------
PRUDENTIAL
PRUDENTIAL PRUDENTIAL NATURAL
PRUDENTIAL PRUDENTIAL ALLOCATION PRUDENTIAL GOVERNMENT RESOURCE
ASSETS EQUITY FUND WORLD FUND FUND UTILITY FUND INCOME FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (15,573) $ 74,864 $ (4,128) $ (10,869) $ 1,979 $ (16,128)
Dividends 98,341 21,382 24,303 28,866 5,583 3,243
Interest on loans to participants
----------- ----------- ----------- ----------- ----------- -----------
82,768 96,246 20,175 17,997 7,562 (12,885)
----------- ----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 256,882 102,388 71,524 77,796 15,837 21,480
Employers' 19,597 7,091 6,050 3,541 992 1,612
----------- ----------- ----------- ----------- ----------- -----------
276,479 109,479 77,574 81,337 16,829 23,092
----------- ----------- ----------- ----------- ----------- -----------
Total additions 359,247 205,725 97,749 99,334 24,391 10,207
----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to participants 97,365 35,502 23,686 16,715 3,630 473
Other 4,511 4,571
----------- ----------- ----------- ----------- ----------- -----------
Total deductions 101,876 40,073 23,686 16,715 3,630 473
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) PRIOR
TO INTERFUND TRANSFER 257,371 165,652 74,063 82,619 20,761 9,734
----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS (58,649) (34,931) (3,627) (3,377) (36,265) (4,040)
NET INCREASE (DECREASE) 198,722 130,721 70,436 79,242 (15,504) 5,694
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 1,009,519 402,358 210,433 227,133 103,832 58,213
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 1,208,241 $ 533,079 $ 280,869 $ 306,375 $ 88,328 $ 63,907
=========== =========== =========== =========== =========== ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------
GOVERNMENT
MONEY DVI, INC.
MARKET COMMON
ASSETS FUND STOCK OTHER TOTAL
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ - $ 14,902 $ $ 45,047
Dividends 9,928 1,414 193,060
Interest on loans to participants 7,016 7,016
----------- ----------- ----------- -----------
9,928 16,316 7,016 245,123
----------- ----------- ----------- -----------
Contributions:
Participants' 43,564 91,202 (24,277) 656,396
Employers' 5,207 15,255 17,003 76,348
----------- ----------- ----------- -----------
48,771 106,457 (7,274) 732,744
----------- ----------- ----------- -----------
Total additions 58,699 122,773 (258) 977,867
----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to participants 9,085 36,671 23,480 246,607
Other 2,155 126 11,363
----------- ----------- ----------- -----------
Total deductions 11,240 36,797 23,480 257,970
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) PRIOR
TO INTERFUND TRANSFER 47,459 85,976 (23,738) 719,897
----------- ----------- ----------- -----------
INTERFUND TRANSFERS 12,289 102,220 26,380
NET INCREASE (DECREASE) 59,748 188,196 2,642 719,897
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 186,396 248,111 110,776 2,556,771
----------- ----------- ----------- -----------
End of year $ 246,144 $ 436,307 $ 113,418 $ 3,276,668
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
-3-
<PAGE> 6
<TABLE>
<CAPTION>
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL FUND INFORMATION
--------------------------------------------------------------------------------------------
PRUDENTIAL
PRUDENTIAL PRUDENTIAL NATURAL
PRUDENTIAL PRUDENTIAL ALLOCATION PRUDENTIAL GOVERNMENT RESOURCE
EQUITY FUND WORLD FUND FUND UTILITY FUND INCOME FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 125,133 $ (24,129) $ (5,755) $ 26,291 $ 2,456 $ (16,392)
Dividends 69,475 43,396 29,525 23,655 5,874 8,505
Interest on loans to participants
----------- ----------- ----------- ----------- ----------- -----------
194,608 19,267 23,770 49,946 8,330 (7,887)
----------- ----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 211,278 104,770 57,874 39,610 17,115 19,461
Employers' 19,628 8,191 5,290 3,502 1,115 1,688
----------- ----------- ----------- ----------- ----------- -----------
230,906 112,961 63,164 43,112 18,230 21,149
----------- ----------- ----------- ----------- ----------- -----------
Total additions 425,514 132,228 86,934 93,058 26,560 13,262
----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to participants 160,867 64,326 44,624 11,962 139 653
NET INCREASE (DECREASE) PRIOR
TO INTERFUND TRANSFER 264,647 67,902 42,310 81,096 26,421 12,609
----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS 18,320 2,088 (5,929) (19,709) 2,570 (1,119)
NET INCREASE (DECREASE) 282,967 69,990 36,381 61,387 28,991 11,490
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 726,552 332,368 174,052 165,746 74,841 46,723
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 1,009,519 $ 402,358 $ 210,433 $ 227,133 $ 103,832 $ 58,213
=========== =========== =========== =========== =========== ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
----------------------------------------------------------
GOVERNMENT
MONEY DVI, INC.
MARKET COMMON
FUND STOCK OTHER TOTAL
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 72,973 $ 180,577
Dividends $ 11,005 191,435
Interest on loans to participants $ 5,238 5,238
----------- ----------- ----------- -----------
11,005 72,973 5,238 377,250
----------- ----------- ----------- -----------
Contributions:
Participants' 32,976 32,141 10,745 525,970
Employers' 4,906 7,170 (713) 50,777
----------- ----------- ----------- -----------
37,882 39,311 10,032 576,747
----------- ----------- ----------- -----------
Total additions 48,887 112,284 15,270 953,997
----------- ----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to participants 104,388 38,579 (15,913) 409,625
NET INCREASE (DECREASE) PRIOR
TO INTERFUND TRANSFER (55,501) 73,705 31,183 544,372
----------- ----------- ----------- -----------
INTERFUND TRANSFERS 15,330 9,860 (21,411)
NET INCREASE (DECREASE) (40,171) 83,565 9,772 544,372
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 226,567 164,546 101,004 2,012,399
----------- ----------- ----------- -----------
End of year $ 186,396 $ 248,111 $ 110,776 $ 2,556,771
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
-4-
<PAGE> 7
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the DVI Financial Services, Inc. Employee
Savings Plan (the "Plan") provides only general information. Participants
should refer to the Plan document for a more complete description of the
Plan's provisions.
a. GENERAL - The Plan is a defined contribution plan covering all
full-time employees of DVI, Inc., the parent, and related
subsidiaries (the "Company") who have three months of service and
are age 18 or older. The Plan Committee and the Plan Administrator
control and manage the operation and administration of the Plan.
Prudential Bank and Trust Company serves as the trustee of the Plan.
The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
b. CONTRIBUTIONS - Each year, participants may contribute from 1% up to
17% of pretax annual compensation, as defined in the Plan document.
The Company matches contributions at 40% of the participant's
contribution to the Plan not to exceed $500 in the Plan year.
Additional amounts may be contributed at the option of DVI, Inc.'s
Board of Directors.
c. PARTICIPANT ACCOUNTS - Each participant's account is credited with
the participant's contributions and allocations of (a) DVI Financial
Services, Inc.'s contributions and, (b) Plan earnings. Allocations
are based on participant earnings or account balances, as defined.
Forfeited balances of terminated participants' non-vested accounts
are allocated to active participants. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account. Administrative expenses are paid by the Plan
sponsor.
d. VESTING - Participants are immediately vested in their contributions
plus earnings thereon. Vesting in the DVI Financial Services, Inc.
contribution portion of their accounts plus earnings thereon is
based on years of credited service. A participant is 100 percent
vested after five years of credited service.
e. INVESTMENT OPTIONS - Upon enrollment in the Plan, a participant may
direct employee contributions in any increments which total 100% in
any combination of the following funds. DVI Financial Services,
Inc.'s matching contributions are contributed into the funds elected
by the participant. Participants may elect different funds for these
matching contributions.
PRUDENTIAL EQUITY FUND - Funds are invested in common stocks
of major, established corporations. which have prospects of
price appreciation greater than broadly based stock indices.
PRUDENTIAL WORLD FUND - Funds are invested in diversified
securities and other debt obligations of U.S. and non-U.S.
issuers.
PRUDENTIAL ALLOCATION FUND - Funds are invested in a
combination of stocks and bonds of major established
companies, as well as money market instruments.
-5-
<PAGE> 8
PRUDENTIAL UTILITY FUND - Funds are invested in equity and
debt securities of utility companies, primarily electric, gas,
and telephone companies.
PRUDENTIAL GOVERNMENT INCOME FUND - Funds are invested
primarily in U.S. Treasury Bills, Notes, Bonds, and other debt
securities issued by the U.S. Treasury, and obligations issued
or guaranteed by U.S. Government agencies.
PRUDENTIAL NATURAL RESOURCE FUND - Funds are invested in
securities of foreign and domestic companies that own,
explore, mine, process, or otherwise develop, or provide goods
and services with respect to natural resources.
GOVERNMENT MONEY MARKET FUND - Funds are invested in
obligations issued or guaranteed by the U.S. Government.
DVI, INC. COMMON STOCK - Funds are invested in the common
stock of DVI, Inc.
Participants may change or transfer their investment options
monthly.
f. LOANS TO PARTICIPANTS - Participants may borrow from their fund
accounts up to a maximum equal to the lessor of $50,000 or 50% of
their vested account balance. Loan transactions are treated as
transfers between the investment fund, in which the participant's
account is invested, and the loan fund. Loan terms range from 1 to 5
years. A loan term longer than 5 years may be approved if the loan
will be used for the purchase of a primary residence. The loans are
secured by the balance in the participant's account and bear
interest at a rate commensurate with local prevailing rates as
determined quarterly by the Plan Administrator. Principal and
interest is repaid through bi-weekly payroll deductions.
g. PAYMENT OF BENEFITS - On termination of service, a participant may
elect to receive either a lump-sum amount equal to the value of the
participant's vested interest in his or her account, or annual
installments over a ten year period not to exceed the life
expectancy of the participant. Amounts payable to such participants
at December 31, 1998 and 1997 were $10,227 and $0, respectively.
h. CASH - Represents paid employer and employee contributions that have
yet to be recorded by the Trustee.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF ACCOUNTING - The financial statements of the Plan are
prepared under the accrual method of accounting.
b. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those
estimates.
c. VALUATION OF INVESTMENTS - The plan's investments are stated at fair
value. Shares of registered investment companies are valued at
quoted market prices which represent the net asset value of shares
held by the Plan at year-end. The company stock is valued at its
quoted market price. Participant loans are valued at cost which
approximates fair value.
-6-
<PAGE> 9
Purchases and sales of securities are recorded on a trade-date
basis. Interest income is recorded on the accrual basis.
d. EXPENSES - The Plan's expenses are paid by DVI Financial Service,
Inc., as provided by the Plan document.
3. INVESTMENTS EXCEEDING 5% OF NET ASSETS
The Plan's investments which exceeded 5% of net assets available for
benefits as of December 31, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
INVESTMENT 1998 1997
---------- ----------
<S> <C> <C>
Prudential Equity Fund $1,208,241 $1,009,519
Prudential World Fund 533,079 402,358
Prudential Allocation Fund 280,869 210,433
Prudential Utility Fund 306,375 227,133
Government Money Market Fund 246,144 186,396
DVI, Inc. Common Stock 436,307 248,111
</TABLE>
4. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by Prudential
Investments. Prudential Bank and Trust Company is the trustee as defined
by the Plan and, therefore, these transactions qualify as
party-in-interest transactions.
5. PLAN TERMINATION
Although it has not expressed any intention to do so, DVI, Inc. has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of
Plan termination, participants will become 100 percent vested in their
accounts.
6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500 which is prepared on a cash
basis:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1998 1997
<S> <C> <C>
Net assets available for benefits per the financial statements $ 3,276,668 $ 2,556,771
Less: Participant contributions receivable (548) (26,510)
Employer contribution receivable (44) (5,593)
Cash (24,237) 0
Add: Benefits payable 10,227 0
----------- -----------
Net assets available for benefits per the Form 5500 $ 3,262,066 $ 2,524,668
=========== ===========
</TABLE>
-7-
<PAGE> 10
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------
1998 1997
<S> <C> <C>
Benefits paid to participants per the financial
statements............................................ $246,607 $409,625
Less: Benefits payable at December 31
of the Current Year............................. (10,227) 0
Add: Benefits payable at December 31
of the Prior Year............................... 0 15,913
--------- --------
Benefits paid to participants per the Form 5500........ $236,380 $425,538
========= ========
</TABLE>
7. TAX STATUS
The Plan was established by DVI, Inc. by an adoption of the Prudential
Investments Prototype Standardized Employee Savings Plan, which obtained
its latest opinion letter from the IRS dated March 11, 1994, regarding the
latest amendment to the prototype. The Internal Revenue Service stated
that the Plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code. DVI, Inc. believes that the
Plan is operated in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
******
-8-
<PAGE> 11
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
<TABLE>
<CAPTION>
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
- -------------------------------------------------------------------------------------
IDENTITY OF ISSUE/ FAIR
DESCRIPTION OF INVESTMENT COST VALUE
---------- ----------
<S> <C> <C>
Prudential Equity Fund - mutual fund * $1,101,826 $1,208,241
Prudential World Fund - mutual fund * 467,308 533,079
Prudential Allocation Fund - mutual fund * 283,795 280,869
Prudential Utility Fund - mutual fund * 274,285 306,375
Prudential Government Income Fund - mutual fund * 86,609 88,328
Prudential Natural Resources Fund - mutual fund * 90,209 63,907
Government Money Market Fund - money market* 246,144 246,144
DVI, Inc. Common Stock * 355,646 436,307
Loans to participants (6.0 to 8.5%) 98,816 98,816
</TABLE>
* Indicates Party-in-Interest to the plan.
-9-
<PAGE> 12
DVI FINANCIAL SERVICES, INC. EMPLOYEE SAVINGS PLAN
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1998
- -------------------------------------------------------------------------------------------------------------
SERIES REPORTABLE
TRANSACTIONS
TOTAL TOTAL MARKET
DOLLAR DOLLAR HISTORICAL VALUE AT
VALUE OF VALUE OF COST DATE OF
IDENTITY OF PARTY DESCRIPTION PURCHASES SALES OF ASSET TRANSACTION NET GAIN
- ----------------- ----------- --------- ----- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Prudential Bank & Trust $429,389 $429,389 $429,389
(Trustee) Equity Fund
$215,073 191,091 215,073 $23,982
Prudential Bank & Trust
(Trustee) World Fund 135,726 135,726 135,726
Prudential Bank & Trust
(Trustee) Utility Fund 154,850 154,850 154,850
Prudential Bank & Trust
(Trustee) DVI, Inc. -
Common Stock 221,048 221,048 221,048
</TABLE>
-10-
<PAGE> 13
[Deloitte & Touche Letterhead]
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference of our report dated May 14, 1999,
appearing in this Annual Report on Form 11-K of DVI Financial Services, Inc.
Employee Savings Plan, Commission File Number 0-16271, for the year ended
December 31, 1998.
Deloitte & Touche LLP
June 28, 1999
