<PAGE>
UNITED STATES
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, 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 0-21370
LEASING SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA 77-0116801
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10 ALMADEN BOULEVARD, SUITE 1500, SAN JOSE, CALIFORNIA 95113
(Address of principal executive offices) (Zip Code)
(408) 995-6565
(Registrant's telephone number, including area code)
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 [ ]
The number of shares of Registrant's common stock outstanding at September 30,
1996 was 8,155,016 shares.
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Page
Part I. Financial Information
Item 1. Financial Statements:
<S> <C>
Consolidated Condensed Balance Sheets
September 30, 1996 and December 31, 1995 2
Consolidated Condensed Income Statements
Three month and nine month periods ended September 30, 1996 and 1995 3
Consolidated Condensed Statements of Cash Flows
Nine month periods ended September 30, 1996 and 1995 4
Notes to Consolidated Condensed Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information 12
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures 13
</TABLE>
1
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars In Thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ ---------
(unaudited)
ASSETS
<S> <C> <C>
Cash and cash equivalents................. $ 9,118 $ 8,423
Accounts receivable....................... 6,713 4,068
Investment in direct finance leases - net. 16,617 18,461
Investment in operating leases - net...... 324,491 190,022
Property and equipment - net.............. 2,107 1,527
Other assets.............................. 3,980 1,601
-------- --------
TOTAL ASSETS........................... $363,026 $224,102
======== ========
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable - equipment purchases.... $ 10,341 $ 19,376
Accrued and other liabilities............. 12,871 5,709
Income taxes payable...................... 37 553
Recourse debt............................. 131,247 71,681
Non-recourse debt......................... 142,067 93,354
Capital lease obligations................. - 143
Deferred income taxes..................... 6,147 2,374
-------- --------
TOTAL LIABILITIES.................... 302,710 193,190
-------- --------
SHAREHOLDERS' EQUITY
Common stock, authorized 20,000,000
shares; issued and outstanding:
8,155,016 and 6,263,930 shares........ 37,407 14,661
Retained earnings......................... 22,848 16,251
Accumulated translation adjustment........ 61 -
-------- --------
TOTAL SHAREHOLDERS' EQUITY........... 60,316 30,912
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY................................ $363,026 $224,102
======== ========
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements
2
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
CONSOLIDATED CONDENSED INCOME STATEMENTS
THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995 (Unaudited)
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
REVENUES:
Operating lease revenue............... $38,825 $20,121 $96,927 $55,079
Earned lease income................... 493 595 1,639 2,108
Interest income....................... 93 122 305 359
Other................................. 45 3 449 8
------- ------- ------- -------
TOTAL REVENUES........................ 39,456 20,841 99,320 57,554
------- ------- ------- -------
COSTS AND EXPENSES:
Depreciation - operating leases....... 26,052 12,882 65,087 36,439
Selling, general and administrative... 3,588 2,376 9,007 6,453
Interest.............................. 5,290 2,845 13,028 7,351
Other................................. 314 191 1,030 470
------- ------- ------- -------
TOTAL COSTS AND EXPENSES.............. 35,244 18,294 88,152 50,713
------- ------- ------- -------
INCOME BEFORE INCOME TAXES............... 4,212 2,547 11,168 6,841
PROVISION FOR INCOME TAXES............... 1,725 1,019 4,571 2,737
------- ------- ------- -------
NET INCOME............................... $ 2,487 $ 1,528 $ 6,597 $ 4,104
======= ======= ======= =======
NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE............... $.30 $.24 $.83 $.65
======= ======= ======= =======
COMMON AND COMMON
EQUIVALENT SHARES..................... 8,371 6,355 7,941 6,320
======= ======= ======= =======
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements
3
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
NINE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995 (Unaudited)
(Dollars In Thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------
1996 1995
--------- --------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING
ACTIVITIES.............................. $ 68,655 $ 30,163
--------- --------
INVESTING ACTIVITIES:
Cost of equipment acquired for lease.... (208,239) (83,602)
Cash received over revenue
recognized on leases................... 10,494 10,190
Property and equipment purchases........ (1,098) (476)
--------- --------
Net cash used for investing
activities............................. (198,843) (73,888)
FINANCING ACTIVITIES: --------- --------
Borrowings:
Non-recourse....................... 100,118 46,969
Recourse........................... 246,148 75,073
Repayments:
Non-recourse....................... (51,404) (42,693)
Recourse........................... (186,582) (39,476)
Issuance of common stock................ 22,746 191
Repayment of capital lease
obligations.......................... (143) (57)
Net cash provided by financing --------- --------
activities........................... 130,883 40,007
--------- --------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS............................. 695 (3,718)
CASH AND CASH EQUIVALENTS:
Beginning of period..................... 8,423 11,706
--------- --------
End of period........................... $ 9,118 $ 7,988
========= ========
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements
4
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
---------------------
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with generally accepted accounting principles
and the rules and regulations of the Securities and Exchange Commission for
interim financial statements. Accordingly, the interim statements do not
include all of the information and disclosures required for annual financial
statements. In the opinion of the Company's management, all adjustments
(consisting solely of adjustments of a normal recurring nature) necessary
for a fair presentation of these interim results have been included.
Intercompany accounts and transactions have been eliminated. These financial
statements and related notes should be read in conjunction with the audited
financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995. The balance sheet
at December 31, 1995 has been derived from the audited financial statements
included in the Annual Report on Form 10-K. The results for the interim
period ended September 30, 1996 are not necessarily indicative of the
results to be expected for the entire year.
2. PUBLIC OFFERING OF COMMON STOCK
-------------------------------
On February 28, 1996, the Company closed a public stock offering of
1,800,000 shares of its Common Stock. The Company received net proceeds of
$22,493,000 from the offering.
3. CASH AND CASH EQUIVALENTS
-------------------------
Cash equivalents are comprised of highly liquid debt instruments with
maturities of six months or less. At September 30, 1996, $4,100,000 of such
amount was restricted solely for repayment of the debt securities of Leasing
Solutions Receivables, Inc., the Company's wholly-owned subsidiary, issued
in public offerings in 1994 and as collateral therefor, and was not
available to other creditors or for other uses.
4. INVESTMENT IN LEASES
--------------------
The components of the net investment in direct finance leases and in
operating leases as of September 30, 1996 and December 31, 1995 are shown
below (in thousands):
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
--------- ---------
<S> <C> <C>
Direct finance leases:
Minimum lease payments receivable $ 17,369 $ 19,832
Estimated unguaranteed residual values 1,648 1,372
Initial direct costs - net 20 73
Unearned lease income (2,420) (2,816)
--------- ---------
Investment in direct finance leases - net $ 16,617 $ 18,461
========= =========
Operating leases:
Equipment under operating leases $ 494,080 $ 301,255
Initial direct costs - net 2,777 1,664
Accumulated depreciation (172,214) (112,784)
Allowance for doubtful accounts (152) (113)
--------- ---------
Investment in operating leases - net $ 324,491 $ 190,022
========= =========
</TABLE>
A substantial portion of the increase in investment in leases was financed
with non-recourse and recourse debt.
5
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (CONTINUED)
5. UNITED KINGDOM ACQUISITION
--------------------------
In April 1996, the Company acquired all of the stock of a company, located
in the United Kingdom, in the equipment leasing business. The purchase price
in the acquisition was U.S.$1,100,000, $150,000 of which was held back at
closing as security for the seller's performance of certain of its
obligations and representations and warranties in the purchase agreement.
The acquisition was accounted for as a purchase.
6. CONVERTIBLE DEBT
----------------
In October 1996, the Company closed a public debt offering for $71,875,000
of convertible subordinated notes. The notes constitute general unsecured
obligations of the Company and are subordinated in right of payment to
all existing and future debt of the Company. The Company received net
proceeds of approximately $69,400,000 from the offering. The seven year
notes bear interest at a rate of 6.875% per annum and are convertible into
the Company's common stock at a conversion price of $34.90. Interest is
payable in April and October of each year. Principal is payable upon
maturity in October 2003. The Company may call, or prepay, all or a portion
of the notes beginning in October 1999.
7. RECLASSIFICATIONS
-----------------
Certain amounts in prior periods have been reclassified to conform to the
current period presentation.
6
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30,
1996.
RESULTS OF OPERATIONS
Total revenues increased 89% to $39,456,000 and 73% to $99,320,000, for the
three and nine month periods ended September 30, 1996, compared with the
corresponding prior year period. Operating lease revenue increased 93% to
$38,825,000 and 76% to $96,927,000, for the three and nine month periods ended
September 30, 1996, compared with the corresponding prior year period. The
increases in operating lease revenue reflect a higher average investment in
operating leases, resulting from increases in operating leases originated by the
Company over the past year, and a significant increase in rents received in
advance of the lease commencement, in the first three and nine months of 1996,
compared to the same periods of 1995.
Earned lease income decreased 17% to $493,000 and 22% to $1,639,000, for the
three and nine month periods ended September 30, 1996, compared with the
corresponding prior year period. The decrease is a result of outstanding direct
finance leases being paid down and fewer new direct finance leases being
originated as a result of the Company and its customers continuing to focus
their leasing activity in 1996 on operating leases.
Depreciation expense for operating leases increased 102% to $26,052,000 and 79%
to $65,087,000, for the three and nine month periods ended September 30, 1996,
compared with the corresponding prior year period. The increase is primarily
due to the increase in the operating lease base, resulting from increases in
operating leases originated by the Company over the past year.
Selling, general and administrative expenses increased 51% to $3,588,000 and 40%
to $9,007,000, for the three and nine month periods ended September 30, 1996,
compared with the corresponding prior year period. The increase is primarily
attributable to increased compensation and benefit costs as a result of an
increase in the number of employees, increases in travel costs associated with
increased leasing activity and the commencement of the Company's operations in
Europe, and increased occupancy costs resulting from an expansion of the
Company's headquarters and the commencement of the Company's operations in the
United Kingdom.
Interest expense increased 86% to $5,290,000 and 77% to $13,028,000, for the
three and nine month periods ended September 30, 1996, compared with the
corresponding prior year period. The increase is primarily due to higher
average recourse and non-recourse debt outstanding, which resulted from
additional borrowings to fund the growth in the Company's lease portfolio.
The provision for income taxes increased to 41% for the quarter ended September
30, 1996, compared the Company's actual 40% rate for the corresponding prior
year period. The increase is due to an increase in new leases with
customers located in states with higher than average income tax rates.
Net income increased 63% to $2,487,000 and 61% to $6,597,000, for the three and
nine month periods ended September 30, 1996, compared with the corresponding
prior year period, as a result of the increase in the components of total
revenues, reduced by the increases in the components of total costs,
specifically described above. Earnings per share increased 25% to $.30 and 28%
to $.83 for the three and nine month periods. Net income increased faster than
earnings per share principally due to the effect of the issuance of 1,800,000
additional shares of Common Stock in the Company's public offering in February
1996.
7
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
LIQUIDITY AND CAPITAL RESOURCES
The Company generated cash flow from operations of $68,655,000 during the nine
month period ended September 30, 1996, compared to net income of $6,597,000 for
the same period. Cash flow from operations was higher than net income primarily
as a result of non-cash expenses such as depreciation of $65,598,000, offset by
uses of cash in operations, including resulting changes in accounts payable,
income taxes payable, and other assets and liabilities, totaling $3,540,000.
Investing activities, which are primarily related to investments in equipment
for lease, used $198,843,000 during the nine month period. Financing activities
in the nine month period generated $130,883,000 from the Company's new
borrowings of recourse and non-recourse debt ($346,266,000) and the Company's
issuance of common stock in its public offering in February, 1996 and upon
exercise of options ($22,747,000), aggregating $369,013,000, offset by repayment
of capital lease obligations and recourse and non-recourse borrowings
aggregating $238,130,000. The net result of the above activity for the six
month period was an increase in cash and cash equivalents of $695,000.
The financing necessary to support the Company's leasing activities has
principally been provided from nonrecourse and recourse borrowings.
Historically, the Company has obtained recourse and nonrecourse borrowings from
money center banks, regional banks, insurance companies, finance companies, and
financial intermediaries. In 1994, the Company, through its wholly-owned
subsidiary, Leasing Solutions Receivables, Inc. (the "Subsidiary"), obtained
long-term financing for a substantial portion of its leasing activity through
the public issuance of secured, nonrecourse debt securities (a
"securitization"). Borrowings under the securitizations are secured by lease
receivables and the underlying equipment financed under such arrangements.
Prior to the permanent financing of its leases, interim financing has been
obtained through short-term, secured, recourse facilities. The Company's
available credit under these short-term, recourse facilities currently totals
$184,000,000. A brief description of each of those facilities presently in
place follows.
(1) a $155,000,000 facility syndicated with ten banks, expiring September
11, 1997. Borrowings under the facility bear an interest rate, at the
Company's option, of the agent bank's prime rate or LIBOR plus 135
basis points.
(2) a $15,000,000 facility with one bank, with borrowings available through
January 31, 1997 and repayments due 240 days after borrowing.
Borrowings under the facility bear interest at LIBOR plus 250 basis
points.
(3) a $3,000,000 revolving facility with one bank, expiring November 15,
1996. Borrowings under the facility bear interest at the bank's prime
rate plus 75 basis points. In addition to interim financing of lease
transactions, proceeds borrowed under this facility are available for
general corporate purposes.
(4) an $11,000,000 revolving facility with one bank, expiring November 15,
1996. Borrowings under the facility bear interest at the bank's prime
rate plus 100 basis points. In addition to interim financing of lease
transactions, proceeds under this facility are available for general
corporate purposes.
The Company is currently negotiating a combination and extension of the credit
facilities described in paragraphs (3) and (4) with the bank providing those
credit facilities. Although the Company does not presently require those credit
facilities, it does expect to renew them prior to the end of 1996.
8
<PAGE>
In addition, the Company has a $15,000,000 revolving facility with one bank,
expiring October 15, 1997. Borrowings under the facility bear interest at the
bank's prime rate. The proceeds of borrowings under this line are used
exclusively to fund certain accounts payable to one of the Company's vendors
resulting from the purchase of equipment for lease to one significant customer
of the Company.
The Company also has a $100 million non-recourse Lease Receivables Purchase
Facility with an affiliate of Citicorp that it entered into in March 1996. This
is a revolving facility, with a term of one year, and borrowings under the
facility bear interest at a rate of 125 basis points over average life
treasuries at the time of borrowing. To date, the Company has refinanced
approximately $59,000,000 of borrowings under its other short-term facilities
through this new facility, at a weighted average interest rate of 7.0%. The
Company intends to refinance, from time to time, under this new facility,
additional borrowings under its other short-term facilities in order to fix the
interest rate for these borrowings. The Company expects to refinance, on a
long-term basis, leases financed under this new facility under a new
securitization facility, with another affiliate of Citicorp, at an interest rate
not in excess of the interest rate provided by this new facility. Although the
Company expects that such securitization facility is likely to become effective
during the fourth quarter, no assurances can be given that it will become
effective during the fourth quarter, or at all.
Borrowings under the above-described lines of credit are generally secured by
lease receivables and the underlying equipment financed under the facility.
Payments under the Company's borrowings and the maturities of its long-term
borrowings are typically structured to match the payments due under the leases
securing the borrowings. At September 30, 1996, the aggregate outstanding
balance under these lines of credit (with aggregate credit availability of
approximately $300,000,000) was $165,832,000, with a weighted average
interest rate of 7.88% per annum. The agreements for the lines of credit contain
covenants regarding leverage (a recourse liabilities-to-equity ratio of not more
than 4.5 to 1), interest coverage, minimum net worth and profitability and a
limitation on the payment of dividends. At September 30, 1996, the Company had a
recourse liabilities-to-equity ratio of 2.7 to 1.
Occasionally, the Company will obtain long-term, non-recourse financing for
individual significant lease transactions at the time or shortly after it
purchases the related equipment. The Company borrowed an aggregate of
$43,807,000 in 1995, and $41,494,000 in the nine month period ended September
30, 1996, under such arrangements. An aggregate of $82,961,000, ($8,960,000 of
which is recourse), with a weighted average interest rate of 8.01% per annum,
remained outstanding under all such arrangements as of September 30, 1996.
The Company's debt financing activities typically provide approximately 80% to
90% of the purchase price of the equipment purchased by the Company for lease to
its customers. The 10% to 20% balance of the purchase price (the Company's
equity investment in equipment) must generally be financed by cash flow from its
operations, the proceeds of subordinated debt, or its equivalent, or recourse
debt, or common stock or convertible debt sold by the Company.
In February, 1996, the Company closed a public stock offering of 1,800,000
shares of its common stock, under which the Company received net proceeds of
$22,493,000. Additionally, in October 1996, the Company closed a public debt
offering for $71,875,000 of convertible subordinated notes. The notes
constitute general unsecured obligations of the Company and are subordinated
in right of payment to all existing and future debt of the Company. The
Company received net proceeds of approximately $69,400,000 from the offering.
The seven year notes bear interest at a rate of 6.875% per annum and are
convertible into the Company's common stock at a conversion price of $34.90.
Interest is payable in April and October of each year. Principal is payable
upon maturity in October 2003. The Company may call, or prepay, all or a
portion of the notes beginning in October 1999. The Company expects to use the
proceeds from the offering principally to fund its equity investment in
equipment it leases to its customers and for general corporate purposes. A
portion of the proceeds may be used to repay a portion of its long-term,
nonrecourse debt.
Financing for the Company's equity investment may not always be readily
available in the marketplace and, with the exception of convertible debt, such
debt financing normally requires an interest rate materially higher than is
required by the Company's conventional debt financing. Although the Company
expects that the credit quality of its lessees and its residual return history
and its results of operation will
9
<PAGE>
continue to allow it to obtain such financing, no assurances can be given that
such financing will be available, at acceptable terms or at all.
The Company's current lines of credit, if renewed or replaced, its expected
access to the public and private securities markets, both debt and equity,
anticipated new lines of credit (both short-term and long-term and recourse and
non-recourse), anticipated long-term financing of individual significant lease
transactions, and its estimated cash flow from operations are anticipated to
provide adequate capital to fund the Company's operations, including
acquisitions and financings under its vendor programs, for the next twelve
months. Although no assurances can be given, the Company expects to be able to
renew or timely replace its existing lines of credit, to continue to have access
to the public and private securities markets, both debt and equity, and to be
able to, as required, enter into anticipated new lines of credit and individual
financing transactions.
POTENTIAL FLUCTUATIONS IN QUARTERLY OPERATING RESULTS
The Company's future quarterly operating results and the market price of its
stock may fluctuate. In the event the Company's revenues or earnings for any
quarter are less than the level expected by securities analysts or the market in
general, such shortfall could have an immediate and significant adverse impact
on the market price of the Company's stock. Any such adverse impact could be
greater if any such shortfall occurs near the time of any material decrease in
any widely followed stock index or in the market price of the stock of one or
more public equipment leasing companies or major customers or vendors of the
Company.
The Company's quarterly results of operations are susceptible to fluctuations
for a number of reasons, including, without limitation, as a result of sales by
the Company of equipment it leases to its customers. Such sales of equipment,
which are an ordinary but not predictable part of the Company's business, will
have the effect of increasing revenues, and, to the extent sales proceeds exceed
net book value, net income, during the quarter in which the sale occurs.
Furthermore, any such sale may result in the reduction of revenue, and net
income, otherwise expected in subsequent quarters, as the Company will not
receive lease revenue from the sold equipment in those quarters.
Given the possibility of such fluctuations, the Company believes that
comparisons of the results of its operations to immediately succeeding quarters
are not necessarily meaningful and that such results for one quarter should not
be relied upon as an indication of future performance.
FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS
The Company issued and sold $71,875,000 of convertible subordinated notes, in
October 1996, in a public offering subject to its Registration Statement, dated
September 20, 1996, as amended. That Registration Statement and the Prospectus,
dated October 3, 1996, which is a part of it (the "Prospectus"), include a
section entitled "Risk Factors," which describes certain factors that may affect
future operating results of the Company. That section is hereby incorporated by
reference in this Report. Those factors should be considered carefully in
evaluating an investment in the Company's common stock and convertible debt.
If you do not have a copy of the Prospectus, you may obtain one by requesting
it from the Company's Investor Relations Department by phone, at (408) 995-6565,
or by mail at Leasing Solutions, Inc., 10 Almaden Boulevard, Suite 1500, San
Jose, California 95113.
10
<PAGE>
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
The statements contained in this Report which are not historical facts may be
deemed to contain forward-looking statements with respect to events, the
occurrence of which involve risks and uncertainties, including, without
limitation, demand and competition for the Company's lease financing services
and the products leased by the Company, the continued availability to the
Company of adequate financing, risks and uncertainties of doing business in
Europe, the ability of the Company to recover its investment in equipment
through remarketing, the ability of the Company to enter into new vendor
programs and extend existing vendor programs, the ability of the Company to
manage its growth, and other risks or uncertainties detailed in the Company's
Securities and Exchange Commission filings, including the Prospectus.
11
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Under Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibit
Exhibit No. Document
----------- --------
27 Financial Data Schedule.
12
<PAGE>
LEASING SOLUTIONS, INC. AND SUBSIDIARY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
LEASING SOLUTIONS, INC.
By: /s/ Hal J Krauter
-----------------
Hal J Krauter
President and Chief Executive Officer
By: /s/ Robert J. Kearns, III
-------------------------
Robert J. Kearns, III
Executive Vice President, Finance and
Chief Financial Officer
(Principal Financial Officer)
DATE: November 13, 1996
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 9,118
<SECURITIES> 0
<RECEIVABLES> 6,713
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 2,107
<DEPRECIATION> 0
<TOTAL-ASSETS> 363,026
<CURRENT-LIABILITIES> 23,212
<BONDS> 273,314
0
0
<COMMON> 37,407
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 363,026
<SALES> 0
<TOTAL-REVENUES> 99,320
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 75,124
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,028
<INCOME-PRETAX> 11,168
<INCOME-TAX> 4,571
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,597
<EPS-PRIMARY> .83
<EPS-DILUTED> .83
</TABLE>
