SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 21, 1997
Mercury Finance Company
(Exact name of registrant as specified in charter)
Delaware 1-10176 36-3627010
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Field Drive, Lake Forest, Illinois 60045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 295-8600
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On July 21, 1997, the Registrant issued a press release, a copy of which is
attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated July 21, 1997 issued by the
Registrant.
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 hereunto duly authorized.
Mercury Finance Company
Date: July 22, 1997 By: Patrick O'Malley
Its: Assistant Secretary
EXHIBIT 99.1
MERCURY FINANCE REPORTS FIRST-QUARTER 1997 RESULTS
CHICAGO, July 21 / PRNewswire / -- Mercury Finance Company (NYSE:MFN) today
reported a first-quarter 1997 loss from operations of $2,283,000. When added to
the $28,482,000 loss on the sale of the Lyndon Insurance Group and $5,129,000 in
non-operating expenses, the company reported a net loss of $33,168,000 or $0.19
per share.
Management expects to issue complete first quarter financial statements
accompanied by a review report from Arthur Andersen LLP in approximately two
weeks. Management does not expect these financial statements to differ
materially from information released today. In line with the company's earlier
disclosures, Arthur Andersen's review report will contain language questioning
Mercury's ability to continue as a going concern.
A definitive agreement to sell the Lyndon Insurance Group was signed on
March 28, 1997 and the sales transaction closed on June 3, 1997. The sale price
resulted in a loss of $28,482,000 which was recorded in the first quarter of
1997. Operating income for the quarter includes earnings from the Lyndon
Insurance Group of $5,138,000 ($3,480,000 net of taxes).
"The report of our earnings for the first-quarter of 1997 is yet another
indicator of returning Mercury to a regular schedule," said William A. Brandt,
Jr., president and chief executive officer. "We expect to report our next
quarter in a timely manner and are delivering on the promise to restore
confidence to the company's financial statements and reporting system."
Non-operating expenses, shown in the income statement, include the costs of
the investigation into the previously disclosed accounting irregularities,
professional fees related to the negotiations with the creditors, a portion of
fees for the crisis management team hired to assist in the turnaround of the
business and the costs of the audit examination of the 1996 financial statements
by the company's new independent accounting firm, Arthur Andersen LLP.
<TABLE>
MERCURY FINANCE COMPANY
Consolidated Statement of Income
Three Months Ended March 31, 1997
(dollars in thousands except per share amounts)
(unaudited)
<CAPTION>
<S> <C>
Finance charges, fees and other interest 67,102
Interest expense (20,716)
Net interest income 46,386
Provision for credit losses (30,462)
Net interest income after provision for
finance credit losses 15,924
Other operating income 34,318
Other operating expenses (52,525)
Operating income (loss) (2,283)
Non-Operating expenses (5,129)
Loss on sale of Lyndon Insurance Group (28,482)
Income (loss) before income taxes (35,894)
Applicable income taxes (benefit) (2,726)
Net income (loss) (33,168)
Net income (loss) per share ($0.19)
</TABLE>
<TABLE>
MERCURY FINANCE COMPANY
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
<CAPTION>
3/31/97 12/31/96
<S> <C> <C>
Assets
Cash and investments 247,378 233,914
Finance receivables 1,126,119 1,160,423
Less: allowance for credit losses (111,584) (97,762)
Less: nonrefundable dealer reserves (80,677) (89,378)
Finance receivables, net 933,858 973,283
Other assets 327,830 336,163
Total Assets 1,509,066 1,543,360
Liabilities and Shareholders' Equity
Senior debt, commercial paper and notes 503,619 525,051
Senior debt, term notes 488,625 488,625
Subordinated debt 22,500 22,500
Accounts payable and other liabilities 370,935 338,299
Total Liabilities 1,385,679 1,374,475
Shareholders' Equity 123,387 168,885
Total Liabilities and Shareholders' Equity 1,509,066 1,543,360
</TABLE>
SOURCE: Mercury Finance Company
CONTACT: Joe Kopec of The Dilenschneider Group, (312) 553-0700, for Mercury
Finance/(MFN)
CO: Mercury Finance Company
ST: Illinois
