<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1995
--------------
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 0-11652
-------
GREEN TREE FINANCIAL CORPORATION
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MINNESOTA 41-1263905
- -------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1100 LANDMARK TOWERS, SAINT PAUL, MINNESOTA 55102-1639
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (612) 293-3400
-------------------------
- -----------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
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
----- -----
AS OF APRIL 30, 1995, 68,306,448 SHARES OF COMMON STOCK OF GREEN TREE FINANCIAL
CORPORATION WERE OUTSTANDING.
<PAGE>
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
FORM 10-Q
QUARTER ENDED MARCH 31, 1995
INDEX
<TABLE>
<S> <C>
PART I - FINANCIAL INFORMATION PAGE
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of
Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
EXHIBIT INDEX 16
Exhibit 11. Computation of Per Share Amounts 17
Exhibit 12. Computation of Ratio of Earnings to
Fixed Charges 18
Exhibit 27. Financial Data Schedule 19
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
-------------- -----------------
(unaudited)
<S> <C> <C>
Assets:
Cash and cash equivalents $ 278,474,000 $ 455,956,000
Cash deposits, restricted 146,370,000 146,057,000
Other investments 20,817,000 20,920,000
Receivables:
Excess servicing rights 643,880,000 533,182,000
Floorplan (net of allowance
of $2,416,000 and
$1,216,000) 321,679,000 166,507,000
Other accounts receivable 35,375,000 34,841,000
Contracts, GNMA certificates
and collateral 448,480,000 372,776,000
Property, furniture and
fixtures 36,753,000 36,555,000
Other assets 5,112,000 5,045,000
-------------- --------------
Total assets $1,936,940,000 $1,771,839,000
============== ==============
Liabilities and Stockholders' Equity:
Senior notes $ 26,650,000 $ 26,650,000
Senior subordinated notes
due 2002 262,915,000 262,814,000
Senior subordinated
debentures due 1995 20,085,000 19,855,000
Allowance for losses on
contracts sold with
recourse 116,990,000 84,016,000
Accounts payable and
accrued liabilities 216,086,000 183,749,000
Investor payable 183,831,000 169,269,000
Income taxes, principally
deferred 324,140,000 299,595,000
-------------- --------------
Total liabilities 1,150,697,000 1,045,948,000
Common stock, $.01 par;
authorized 150,000,000
shares,issued and
outstanding 68,210,085
shares (1995) and
67,647,192 shares (1994) 682,000 676,000
Additional paid-in capital 313,420,000 297,408,000
Retained earnings 472,141,000 427,807,000
-------------- --------------
Total stockholders'
equity 786,243,000 725,891,000
-------------- --------------
$1,936,940,000 $1,771,839,000
============== ==============
</TABLE>
See notes to unaudited financial statements.
3
<PAGE>
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
----------------------------
1995 1994
------------- -------------
<S> <C> <C>
Income:
Net gains on contract sales $107,678,000 $ 83,569,000
Provision for losses on
contract sales (32,429,000) (24,297,000)
Interest 32,689,000 29,776,000
Service 11,795,000 9,299,000
Commissions and other 8,466,000 6,451,000
------------ ------------
128,199,000 104,798,000
Expenses:
Interest 10,438,000 13,294,000
Cost of servicing 8,707,000 6,714,000
General and administrative 27,233,000 20,637,000
------------ ------------
46,378,000 40,645,000
------------ ------------
Earnings before income taxes 81,821,000 64,153,000
Income taxes 31,092,000 25,661,000
------------ ------------
Net earnings $ 50,729,000 $ 38,492,000
============ ============
Earnings per common and
common equivalent share $.73 $.56
==== ====
Weighted average common and
common equivalent shares
outstanding 69,765,237 69,135,340
</TABLE>
See notes to unaudited financial statements.
4
<PAGE>
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
------------------------------
1995 1994
------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Servicing fees and net interest
payments collected $ 44,552,000 $ 18,047,000
Net proceeds from sale of net
interest margin certificates -- 493,600,000
Net principal payments collected 10,749,000 16,232,000
Interest on contracts and
GNMA certificates 10,541,000 20,476,000
Interest on cash, floorplan
and investments 9,613,000 1,640,000
Commissions 7,244,000 6,180,000
Other 822,000 433,000
------------- -------------
83,521,000 556,608,000
Cash paid to employees and suppliers (47,039,000) (29,052,000)
Interest paid on debt (3,283,000) (6,022,000)
Repossession losses net of recoveries (977,000) (434,000)
FHA insurance premiums (389,000) (460,000)
Income taxes paid (3,922,000) (4,410,000)
------------- -------------
(55,610,000) (40,378,000)
------------- -------------
NET CASH PROVIDED BY OPERATIONS 27,911,000 516,230,000
Purchase of contracts held for sale (868,398,000) (671,142,000)
Proceeds from sale of contracts
held for sale 802,514,000 589,989,000
Principal collections on contracts
held for sale 19,193,000 17,959,000
Floorplan loans disbursed (312,026,000) (6,926,000)
Principal collections on
floorplan loans 161,893,000 4,055,000
Cash deposits provided (3,002,000) (25,005,000)
Cash deposits returned 2,689,000 8,498,000
------------- -------------
NET CASH (USED FOR) PROVIDED BY
OPERATING ACTIVITIES (169,226,000) 433,658,000
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, furniture
and fixtures (2,442,000) (6,531,000)
Net sales (purchases) of
investment securities 103,000 (1,247,000)
------------- -------------
NET CASH USED FOR INVESTING ACTIVITIES (2,339,000) (7,778,000)
------------- -------------
</TABLE>
5
<PAGE>
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities 541,004,000 569,689,000
Repayments on credit facilities (541,004,000) (776,600,000)
Common stock issued 478,000 751,000
Dividends paid (6,395,000) (3,157,000)
------------- -------------
NET CASH USED FOR FINANCING
ACTIVITIES (5,917,000) (209,317,000)
------------- -------------
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (177,482,000) 216,563,000
CASH AND CASH EQUIVALENTS BEGINNING
OF PERIOD 455,956,000 170,674,000
------------- -------------
CASH AND CASH EQUIVALENTS END OF PERIOD $ 278,474,000 $ 387,237,000
============= =============
RECONCILIATION OF NET EARNINGS
TO NET CASH (USED FOR) PROVIDED BY
OPERATING ACTIVITIES:
Net earnings $ 50,729,000 $ 38,492,000
Provision for income taxes 31,092,000 25,661,000
Depreciation and amortization 2,859,000 1,925,000
Net proceeds from sale of net interest
margin certificates -- 493,600,000
Net contract payments collected, less
excess servicing rights recorded (54,642,000) (41,440,000)
Amortization of deferred service income (3,420,000) (986,000)
Net amortization of present value
discount (11,091,000) (7,552,000)
Net increase in cash deposits (313,000) (16,507,000)
Purchase of contracts held for sale, net
of sales and principal collections (46,691,000) (63,195,000)
Floorplan loans disbursed, net of
principal collections (150,133,000) (2,871,000)
Net discount on sale of loans 7,098,000 6,887,000
Increase in interest payable 6,773,000 6,714,000
Other (1,487,000) (7,070,000)
------------- -------------
NET CASH (USED FOR) PROVIDED BY
OPERATING ACTIVITIES $(169,226,000) $ 433,658,000
============= =============
</TABLE>
See notes to unaudited financial statements.
6
<PAGE>
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED FINANCIAL STATEMENTS
A. Basis of Presentation
The interim financial statements have been prepared by Green Tree Financial
Corporation (the "Company"), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission applicable to quarterly
reports on Form 10-Q. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations, although management believes that the disclosures are
adequate to make the information presented not misleading. It is suggested
that these financial statements be read in conjunction with the consolidated
financial statements and related notes and schedules included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1994.
In the opinion of management, the information furnished reflects all
adjustments which are of a normal recurring nature and are necessary for a
fair presentation of the Company's financial position as of March 31, 1995,
the results of its operations for the three-month periods ended March 31, 1995
and 1994, and its cash flows for the three-month periods ended March 31, 1995
and 1994.
B. Excess Servicing Rights Receivable
Excess servicing rights receivable consists of:
<TABLE>
<CAPTION>
March 31,1995 December 31,1994
--------------- -----------------
(unaudited)
<S> <C> <C>
Gross cash flows receivable
on contracts sold $1,184,560,000 $ 842,222,000
Less:
Prepayment reserve (484,954,000) (324,496,000)
FHA insurance and other fees (12,264,000) (12,367,000)
Deferred service income (91,923,000) (68,918,000)
Discount to present value (175,373,000) (120,795,000)
Subordinated interest in
NIM Certificates 223,834,000 217,536,000
-------------- -------------
$ 643,880,000 $ 533,182,000
============== =============
</TABLE>
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The Company originates conditional sales contracts or loans for manufactured
homes ("MH"), home improvements ("HI"), consumer products ("CP") and
commercial products ("CMP"), and provides floorplan financing to manufactured
housing dealers. The Company's insurance agencies also market physical damage
and term mortgage life insurance relating to the customers' contracts it
services. Green Tree also acts as servicer on manufactured housing contracts
originated by other lenders.
Results of Operations:
The following table shows the percentage change in income, expenses and
earnings for the three-month period ended March 31, 1995 as compared to the
same period of 1994.
<TABLE>
<CAPTION>
Three-month
period-to-period
increase (decrease)
March 31,
1994 to 1995
--------------------------
<S> <C>
Income:
Net gains on contract
sales 28.8%
Provision for losses on
contract sales 33.5
Interest 9.8
Service 26.8
Commissions and other 31.2
Expenses:
Interest (21.5)
Cost of servicing 29.7
General and
administrative 32.0
Earnings before income
taxes 27.5
Net earnings 31.8
</TABLE>
Net gains on contract sales increased 28.8% in the first quarter of 1995 over
the same period in 1994 as a result of increased dollar volume of contracts
sold, higher interest rate spreads on those sales, and longer average terms on
the contracts sold. For the quarter ended March 31, 1995, total contract
sales increased $91,448,000, or 12.8%.
The 33.5% increase in the provision for losses on contract sales in the first
quarter of 1995 reflects the higher dollar volume of contracts sold as well as
an increase in the average contract term, and the changing mix of originations
to a higher percentage of
8
<PAGE>
conventional contracts and to loans which have a lower down payment.
The following table sets forth the Company's contract originations and sales
for the three-month periods ended March 31, 1995 and 1994. Dollar amounts are
in thousands.
<TABLE>
<CAPTION>
Three-month
period ended
March 31,
1995 1994
-------- --------
<S> <C> <C>
Originations:
MH - Conventional $713,858 $594,516
MH - FHA/VA 3,275 30,256
HI 116,292 59,727
CP 49,102 18,074
CMP 11,980 --
-------- --------
Total $894,507 $702,573
======== ========
Sales:
MH - Conventional $706,596 $561,614
MH - GNMA 1,775 21,287
HI 100,075 134,097
-------- --------
Total $808,446 $716,998
======== ========
</TABLE>
The manufactured housing market experienced an increase in new home shipments
during the first quarter of 1995 compared to 1994. The Company continues to
benefit from this increase and believes that it is maintaining its market
share of contracts for financing new manufactured homes. The Company's dollar
volume of new manufactured housing contract originations rose 23% during the
first quarter of 1995 over the same period in 1994. The dollar volume of
previously owned MH contract originations rose 35.3% while the dollar volume
of refinanced contracts decreased significantly during the first quarter of
1995. In addition to the increase in the number of new contracts originated
by the Company, the average contract size has also increased due to a shift in
the Company's manufactured home financing to more expensive multi-section
homes and land-and-home contracts, due to price increases by the MH
manufacturers, as well as new federal wind and thermal standards causing price
increases.
The dollar volume of home improvement and consumer product contract
originations rose 94.7% and 171.7%, respectively, in the first quarter of
1995. This significant level of growth in these divisions results from vastly
expanding the number of relationships with contractors, remodelers and dealers
throughout the United States, as well as obtaining more business from existing
dealers. This has provided the Company with an established and growing
network through which to market its financing.
9
<PAGE>
Interest income is realized from contracts held for sale, floorplan loans,
cash deposits, short-term investments, as well as amortization of the present
value discount relating to excess servicing rights receivable. Interest
income increased 9.8% during the first quarter of 1995 compared to the same
period in 1994. Increased earnings on short-term investment activity and the
Company's floorplan receivables contributed to this growth in interest income.
Amortization of the present value discount during the first quarter of 1995
increased compared to the same period in 1994 due to the growth of the
Company's excess servicing rights receivable. These increases were partially
offset by a decrease in interest on contracts held for sale. Despite higher
production levels, contracts held for sale for the three-months ended March
31, 1995 were lower on average than the same period in 1994 as a result of two
MH loan sales in the first quarter of 1995 compared to one in 1994. Interest
income for the first quarter of 1994 included interest the Company received on
the Net Interest Margin Certificates sold in March 1994, for the period they
were held by the Company.
The increase in service income of 26.8% during the first quarter of 1995
compared to the first quarter of 1994 resulted from the 36.7% growth in the
Company's average originated servicing portfolio but was partially offset by
the decline in servicing income on contracts originated by others. The
average unpaid principal balance of contracts being serviced for others
decreased 21.8% during the first quarter of 1995 compared to the first quarter
of 1994. The Company expects this decline in outside servicing to continue in
the future while overall servicing income should increase as its portfolio
grows.
Commissions and other income, which includes commissions earned on new
insurance policies written and renewals on existing policies, as well as other
income from late fees, grew 31.2% during the first quarter of 1995 compared to
the same period in 1994. This growth is primarily a result of the increase in
net written insurance premiums as the Company's contract originations and
servicing portfolio continue to grow.
Interest expense decreased 21.5% during the first quarter of 1995 as a result
of the Company maintaining a significantly lower level of borrowings to fund
its loan originations and floorplan financing during the first quarter of 1995
compared to 1994, due to both the completion of more frequent contract sales
and the previous sales of the Company's Net Interest Margin Certificates.
This decrease was partially offset by higher average interest rates in the
first quarter of 1995.
Green Tree's dollar amount of cost of servicing increased 31.2% during the
first quarter of 1995 compared to the same period in 1994 as the Company's
total average servicing portfolio grew 34.6%. The Company's cost of servicing
as a percentage of contracts serviced in the first quarter of 1995 decreased
compared to the same period in 1994.
10
<PAGE>
General and administrative expenses rose 32.0% in the first quarter of 1995,
however, as a percentage of contract originations, these expenses have
remained relatively consistent with the first quarter of 1994. The dollar
growth is due primarily to an increase in personnel and other origination
costs related to the significant growth in the number of contracts the Company
originated during the quarter.
During the first quarter of 1995, the Company announced plans to open a new
service center in Rapid City, South Dakota. Within three years, the new
facility is expected to employ an estimated 100 full-time and 350 part-time
employees to serve the Company's dealers and customers nationwide in all of
its lending businesses.
Capital Resources and Liquidity:
The Company's business requires continued access to the capital markets for
the purchase, warehousing and sale of contracts. To satisfy these needs, the
Company employs a variety of capital resources.
Historically, the most important liquidity source for the Company has been its
ability to sell contracts in the secondary markets through loan
securitizations and sales of GNMA certificates. During the first quarter of
1995, the Company used a senior/subordinated structure for each of its two
conventional manufactured home loan sales and enhanced a portion of the
subordinated certificates sold with a corporate guarantee. The Company's
public home improvement loan sale in the first quarter of 1995 was comprised
of two trusts. The first trust, which included secured home improvement
contracts, employed a senior/subordinated structure with a corporate guarantee
and the second trust, which included unsecured home improvement contracts, was
a single class pass-through with a corporate guarantee.
Servicing fees and net interest payments collected, which has been the
Company's principal source of cash, increased during the three-month period
ended March 31, 1995 over the same period in 1994. Contributing to this
growth is an increase in normal servicing fees collected by the Company on its
growing servicing portfolio, and an increase in excess servicing collected
from the additional securitizations in which the Company has not sold a
portion of the related excess servicing rights.
Net principal payments collected were positive in each of the three-month
periods ended March 31, 1995 and 1994 as a result of an increase in the
contract principal payments collected by the Company as of the end of each
period but not yet remitted to the investors/owners of the contracts. These
increases are a result of customer payoffs and the growth of the Company's
servicing portfolio.
11
<PAGE>
Interest on contracts and GNMA certificates in the first quarter of 1994
includes interest the Company received on the Net Interest Margin Certificates
for the period they were held by the Company.
Interest on cash, floorplan and investments increased during the first quarter
of 1995 compared to the same period in 1994 primarily as a result of interest
collected on outstanding floorplan receivables.
During the first quarter of 1994, the Company began a floorplan lending
division which makes loans to manufactured housing dealers for purposes of
financing new and previously owned manufactured home inventory. Floorplan
loans disbursed net of principal collections has grown to $150,133,000 during
the three month period ended March 31, 1995, compared to $2,871,000 during the
same period in 1994. The Company expects continued growth in this area.
Dividends paid by the Company increased 102.6% in the first quarter of 1995
compared to the same period in 1994 as the Company's quarterly dividend rate
doubled from the first quarter of 1994.
The Company has a $15,000,000 bank warehousing credit agreement for the
purpose of financing its manufactured home, home improvement and motorcycle
contract production. There were no borrowings under this agreement as of
March 31, 1995. This agreement is unsecured and expires December 31, 1995.
In addition, the Company currently has $950,000,000 in master repurchase
agreements with various investment banking firms for the purpose of financing
its contract production. At March 31, 1995, the Company had $950,000,000
available under these master repurchase agreements, subject to the
availability of appropriate collateral. These master repurchase agreements
all provide for annual terms that are extended each quarter by mutual
agreement of the parties for an additional year term based upon receipt of
updated quarterly financial information from the Company. The Company
believes that, if it so desires, these agreements will continue to be renewed
each quarter.
During April 1995, the Company began borrowing under its commercial paper
program through which it is authorized to issue up to $500,000,000 in notes of
varying terms (not to exceed 270 days) to meet its liquidity needs. This
program is backed by the master repurchase agreements referred to above and,
as a result, is subject to the same collateral requirements as these
agreements. Commercial paper is expected to be an ongoing source of liquidity
for purposes of meeting the Company's funding needs between sales of its
contract production.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The nature of the Company's business is such that it is routinely a
party or subject to items of pending or threatened litigation.
Although the ultimate outcome of certain of these matters cannot be
predicted, management believes, based upon information currently
available and the advice of counsel, that the resolution of these
routine legal matters will not result in any material adverse effect
on its consolidated financial condition.
ITEM 2. CHANGES IN SECURITIES
The Board of Directors of the Company has unanimously approved a
proposal to change the Company's state of incorporation from
Minnesota to Delaware (the "Reincorporation"). The proposal is
subject to shareholder approval at the annual meeting scheduled for
May 17, 1995. If approved, the Reincorporation will be effected by a
transaction in which the Company will be merged with and into Green
Tree Financial Corporation, a Delaware corporation and wholly owned
subsidiary of the Company ("Green Tree Delaware"). The
reincorporation will take place as soon as is practicable after the
shareholder meeting (the "Effective Time"), and is tentatively
scheduled for July 1, 1995.
At the Effective Time, each outstanding share of the Company's Common
Stock will automatically be converted into one share of Common Stock,
$.01 par value, of Green Tree Delaware (other than shares as to which
the holder thereof has properly exercised appraisal rights under
Minnesota law). Upon the Reincorporation, the rights and preferences
of the holders of Green Tree Delaware's capital stock will be
governed by the Delaware General Corporation Law and the Certificate
of Incorporation and Bylaws of Green Tree Delaware. Although the
Delaware and Minnesota corporation laws currently in effect are
similar in many respects, certain differences would affect the rights
of the stockholders of Green Tree Delaware after the Reincorporation.
Holders of Green Tree Delaware stock would be subject to provisions
in the corporate laws of Delaware regarding takeovers and business
combinations that differ from those in Minnesota. Under the proposed
Reincorporation, however, Green Tree Delaware's
13
<PAGE>
Certificate of Incorporation would include fair price and anti-
greenmail provisions identical to those currently in place in the
Company's Articles of Incorporation. Furthermore, if the
Reincorporation is completed, the Company's Board of Directors
intends to adopt resolutions necessary and appropriate to amend
the Company's existing Shareholders Rights Plan to make it
effective under Delaware law.
Provisions in the Delaware General Corporation Law or the
Certificate and Bylaws of Green Tree Delaware would also affect
the appraisal rights of shareholders who dissent with respect to
a corporate reorganization, merger, exchange or sale of
substantially all of the corporate assets. The new provisions
also would have an effect on the existing rules governing the
Company concerning the annual meeting of shareholders, special
meetings of shareholders, the amendment of the Certificate of
Incorporation, proxies and shareholder action without a meeting.
The preceding discussion is meant only to describe the general
effect of the Reincorporation upon the holders of the Company's
Common Stock. A Proxy Statement describing the Reincorporation,
and including as an exhibit the proposed Certificate of
Incorporation and Bylaws of Green Tree Delaware, has been mailed
to all shareholders of record as of March 27, 1995.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. (A) EXHIBITS
11. Computation of Per Share Amounts.
12. Computation of Ratio of Earnings to Fixed
Charges.
27. Financial Data Schedule.
(B) REPORTS ON FORM 8-K
None.
14
<PAGE>
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.
GREEN TREE FINANCIAL CORPORATION
DATE: May 12, 1995 /s/John W. Brink
------------------------------
John W. Brink
Executive Vice President,
Treasurer and Chief Financial
Officer
DATE: May 12, 1995 /s/Drew S. Backstrand
------------------------------
Drew S. Backstrand
Vice President and General
Counsel
15
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Exhibit Page
- ------- ------- ----
<S> <C> <C>
11. Computation of Per Share Amounts. 17
12. Computation of Ratio of Earnings to
Fixed Charges. 18
27. Financial Data Schedule. 19
</TABLE>
16
<PAGE>
Exhibit 11.
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE AMOUNTS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
---------------------------
1995 1994
------------- ------------
<S> <C> <C>
PRIMARY:
Net earnings $50,729,000 $38,492,000
=========== ===========
Weighted average number of
common and common equivalent
shares outstanding:
Weighted average common
shares outstanding 67,954,644 67,200,456
Dilutive effect of stock
options after application
of treasury-stock method 1,810,593 1,934,884
----------- -----------
69,765,237 69,135,340
=========== ===========
Earnings per share $.73 $.56
==== ====
Three Months Ended March 31
---------------------------
1995 1994
------------- ------------
<S> <C> <C>
FULLY DILUTED:
Net earnings $50,729,000 $38,492,000
=========== ===========
Weighted average number of
common and common equivalent
shares outstanding:
Weighted average common
shares outstanding 67,954,644 67,200,456
Dilutive effect of stock
options after application
of treasury-stock method 1,898,363 1,934,884
----------- -----------
69,853,007 69,135,340
=========== ===========
Earnings per share $.73 $.56
==== ====
</TABLE>
17
<PAGE>
Exhibit 12.
-----------
GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
-------------------------------------------------
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
-------------------------------------------------
<TABLE>
<CAPTION>
Three months
ended
March 31, 1995
---------------
(unaudited)
<S> <C>
Earnings:
Earnings before income taxes $81,821,000
Fixed charges:
Interest 10,438,000
One-third rent 416,000
-----------
10,854,000
-----------
$92,675,000
===========
Fixed charges:
Interest $10,438,000
One-third rent 416,000
-----------
$10,854,000
===========
Ratio of earnings to fixed charges (1) 8.54
====
</TABLE>
(1) For purposes of computing the ratio, earnings consist of earnings before
income taxes plus fixed charges.
18
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FINANCIAL STATEMENTS OF GREEN TREE CORPORATION AND SUBSIDIARIES
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 424,844,000
<SECURITIES> 20,817,000
<RECEIVABLES> 359,470,000
<ALLOWANCES> 2,416,000
<INVENTORY> 448,480,000
<CURRENT-ASSETS> 0
<PP&E> 55,056,000
<DEPRECIATION> 18,303,000
<TOTAL-ASSETS> 1,936,940,000
<CURRENT-LIABILITIES> 0
<BONDS> 309,650,000
<COMMON> 682,000
0
0
<OTHER-SE> 785,561,000
<TOTAL-LIABILITY-AND-EQUITY> 1,936,940,000
<SALES> 107,678,000
<TOTAL-REVENUES> 128,199,000
<CGS> 0
<TOTAL-COSTS> 35,940,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 32,429,000
<INTEREST-EXPENSE> 10,438,000
<INCOME-PRETAX> 81,821,000
<INCOME-TAX> 31,092,000
<INCOME-CONTINUING> 50,729,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50,729,000
<EPS-PRIMARY> .73
<EPS-DILUTED> .73
</TABLE>
