<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
[X] AMENDMENT NO.1 TO QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(For the Quarterly Period ended June 30, 1997)
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For transition period from ________________to_______________
Commission File Number: 0-24286
EAGLE FINANCE CORP.
(Exact name of Registrant as specified in its charter)
DELAWARE 36-2464365
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
1425 TRI-STATE PARKWAY, GURNEE, ILLINOIS 60031-4060
(Address of principal executive offices) (Zip Code)
(847) 855-7150
(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
Indicate the number of shares outstanding of each of the Issuer's classes
of common stock as of the latest practicable date:
10,000,000 shares of common stock, $0.01 par value per share, were authorized
and 4,198,100 shares were issued and outstanding as of June 30, 1997.
<PAGE>
EXPLANATION OF AMENDMENT
This Form 10-Q/A, Amendment No. 1 is intended to amend the Quarterly
Report on Form 10-Q for the quarter ended June 30, 1997 (the "Original
Report") solely for the limited purpose of revising financial information
included in the Original Report for the three and six month periods ending
June 30, 1997 (including the financial data schedule filed as Exhibit 27).
The amended financial information is intended to reflect Installment Contract
sales during the second quarter of 1997 to General Electric Capital Corporation
("GECC") pursuant to the Asset Purchase Agreement dated as of June 25, 1996,
as amended, between the Company and GECC (including the related Servicing
Agreement, the "GECC Agreements") as financing transactions pursuant to the
provisions of Financial Accounting Standards No. 125, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishment of Liabilities" ("SFAS
125") which the registrant adopted as of January 1, 1997. Readers are
advised to review the registrant's Annual Report on Form 10-K for the year
ended December 31, 1997 for a Management's Discussion and Analysis of Financial
Condition and Results of Operations that reflects the impact of FASB 125 on
the registrant in 1997.
2
<PAGE>
EAGLE FINANCE CORP.
FORM 10-Q/A
________________________
TABLE OF CONTENTS
________________________
<TABLE>
<CAPTION>
PAGE
NUMBER
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
<S> <C>
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Statements of Income (Loss). . . . . . . . . . . . . . . . . . . . . . . .5
Statements of Changes in Stockholders' Equity (Deficit). . . . . . . . . .6
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . .7
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . .8
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . . . . . . . 11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S-1
</TABLE>
3
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
As more fully described in the notes to the Financial Statements, financial
information has been restated to conform the Company's quarterly reporting for
1997 and 1998 to the provisions of Financial Accounting Standards Board
Statement ("FASB") No. 125, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities" ("FASB 125").
EAGLE FINANCE CORP.
BALANCE SHEETS
AS OF JUNE 30, 1998 AND 1997 AND DECEMBER 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
JUNE 30, DECEMBER 31,
1998 1997 1997
------------ ------------ ---------------
<S> <C> <C> <C>
Finance receivables, owned . . . . . . . . . . . . $7,826,531 $39,753,660 $28,455,232
Nonrefundable acquisition discount . . . . . . . . (98,617) (796,936) (1,179,708)
Allowance for credit losses. . . . . . . . . . . . (1,284,039) (4,296,219) (2,986,419)
------------ ------------ ---------------
Finance receivables, net owned . . . . . . . . . . 6,443,875 34,660,505 24,289,105
------------ ------------ ---------------
Finance receivables, Installment Contract sales. . 18,553,340 28,804,642 27,060,820
Allowance for credit losses related to
Installment Contract sales. . . . . . . . . . . (2,549,076) (3,374,101) (3,353,808)
Additional allowance represented on titled assets,
Installment Contract sales. . . . . . . . . . . (312,200) (150,765) (470,113)
------------ ------------ ---------------
Finance receivables, net Installment Contract
sales . . . . . . . . . . . . . . . . . . . . . 15,692,064 25,279,776 23,236,899
------------ ------------ ---------------
Excess servicing receivable. . . . . . . . . . . . -- 670,335 --
Cash . . . . . . . . . . . . . . . . . . . . . . . 349,676 3,658,884 1,809,248
Money market investments . . . . . . . . . . . . . 3,000,000 552,863 552,521
Prepaid expenses and debt issuance costs . . . . . 543,843 896,718 834,674
Prepaid expenses other . . . . . . . . . . . . . . 84,983 221,615 195,296
Repossessed or titled assets . . . . . . . . . . . 1,073,972 2,008,584 2,091,011
Income tax receivable. . . . . . . . . . . . . . . 776,457 1,470,529 1,268,152
Other assets . . . . . . . . . . . . . . . . . . . 460,304 2,159,838 548,913
------------ ------------ ---------------
$ 28,425,174 $ 71,579,647 $54,825,819
------------ ------------ ---------------
------------ ------------ ---------------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Notes payable, Installment Contract Sales. . . . . $16,004,264 $25,430,541 $23,707,012
Senior debt. . . . . . . . . . . . . . . . . . . . -- 20,048,498 15,034,111
Subordinated debt. . . . . . . . . . . . . . . . . 17,543,768 17,631,728 17,543,768
Accrued interest . . . . . . . . . . . . . . . . . 496,818 502,991 162,370
Accounts payable and accrued liabilities . . . . . 1,002,832 2,100,272 694,577
Dealer reserves. . . . . . . . . . . . . . . . . . -- 273,590 --
------------ ------------ ---------------
Total liabilities. . . . . . . . . . . . . . . . . 35,047,682 65,987,620 57,141,838
Stockholders' equity (deficit):. . . . . . . . . .
Preferred Stock, authorized 3,000,000 shares;
none issued . . . . . . . . . . . . . . . . . . -- -- --
Common Stock: $.01 par value, authorized
10,000,000 shares, issued and outstanding
4,228,690 shares. . . . . . . . . . . . . . . . 42,287 41,891 42,287
Additional paid-in capital . . . . . . . . . . . . 13,593,206 13,514,422 13,593,206
Retained earnings (deficit). . . . . . . . . . . . (20,258,001) (7,964,286) (15,951,512)
------------ ------------ ---------------
Total stockholders' equity (deficit) . . . . . . . (6,622,508) 5,592,027 (2,316,019)
------------ ------------ ---------------
$ 28,425,174 $ 71,579,647 $54,825,819
------------ ------------ ---------------
------------ ------------ ---------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
EAGLE FINANCE CORP.
STATEMENTS OF INCOME
THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest income, owned:
Interest and fee income, owned receivables . . $ 408,924 $ 3,178,395 $ 1,619,897 $ 6,605,984
Interest expense, owned receivables (senior
and subordinated debt) . . . . . . . . . . . (463,973) (1,310,153) (1,339,201) (2,760,479)
----------- ----------- ----------- -----------
Net interest income, owned receivables . . . . . . (55,049) 1,868,242 280,696 3,845,505
Provision for credit losses, owned receivables . . (725,600) (2,793,321) (725,600) (3,168,321)
----------- ----------- ----------- -----------
Net interest income after provision
for credit losses, owned receivables. . . . . . (780,649) (925,079) 444,904 677,184
----------- ----------- ----------- -----------
Interest income, Installment Contract sales:
Interest income, Installment Contract sales . . 1,163,038 1,046,283 2,615,475 1,046,282
Interest expense, Installment Contract sales
(notes payable). . . . . . . . . . . . . . . (435,800) (350,441) (953,492) (350,441)
Provision for credit losses, Installment
Contract sales . . . . . . . . . . . . . . . (440,559) (896,020) (1,160,345) (896,020)
----------- ----------- ----------- -----------
Net interest income after provision for credit
losses, Installment Contract sales. . . . . . . 286,679 (200,178) 501,638 (200,179)
----------- ----------- ----------- -----------
Other income:
Service fee income. . . . . . . . . . . . . . . 923,275 1,722,442 1,748,987 2,502,897
Commission and other. . . . . . . . . . . . . . -- 2,634 -- 5,044
----------- ----------- ----------- -----------
Total other income . . . . . . . . . . . . . . . . 923,275 1,725,076 1,748,987 2,507,941
----------- ----------- ----------- -----------
Income before operating expenses . . . . . . . . . 429,305 599,819 1,805,721 2,984,946
Operating expenses:
Salaries and related costs. . . . . . . . . . . 1,057,099 1,951,323 2,309,903 3,986,468
Collection expenses . . . . . . . . . . . . . . 334,878 831,257 801,001 831,257
Other operating expenses. . . . . . . . . . . . 1,868,082 1,024,931 3,001,306 2,882,933
----------- ----------- ----------- -----------
Total operating expenses . . . . . . . . . . . . . 3,260,059 3,807,511 6,112,210 7,700,658
----------- ----------- ----------- -----------
Loss before income taxes . . . . . . . . . . . . . (2,830,754) (3,207,692) (4,306,489) (4,715,712)
Applicable income taxes. . . . . . . . . . . . . . -- -- -- --
----------- ----------- ----------- -----------
Net loss . . . . . . . . . . . . . . . . . . . . . $(2,830,754) $(3,207,692) $(4,306,489) $(4,715,712)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average common shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . 4,228,690 4,189,100 4,228,690 4,189,100
Diluted . . . . . . . . . . . . . . . . . . . . 4,228,690 4,189,100 4,228,690 4,189,100
Per share net income (loss) attributable to
common shares:
Basic . . . . . . . . . . . . . . . . . . . . . $(0.67) $(0.77) $(1.02) $(1.13)
Diluted . . . . . . . . . . . . . . . . . . . . $(0.67) $(0.77) $(1.02) $(1.13)
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
EAGLE FINANCE CORP.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997.
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1998 1997 1998 1997
------------ ----------- ------------- --------------
<S> <C> <C> <C> <C>
Common stock:
Balance at beginning of period. . . . . . . . . $ 42,287 $ 41,891 $ 42,287 $ 41,891
Additional paid-in capital:
Balance at beginning and end of period. . . . . 13,593,206 13,514,422 13,593,206 13,514,422
Retained earnings: . . . . . . . . . . . . . . . .
Balance at beginning of period. . . . . . . . . (17,427,247) (4,756,594) (15,951,512) (3,248,575)
Net income (loss) . . . . . . . . . . . . . . . (2,830,754) (3,207,692) (4,306,489) (4,715,711)
------------ ----------- ------------- --------------
(20,258,001) (7,964,286) (20,258,001) (7,964,286)
------------ ----------- ------------- --------------
Total stockholders' equity (deficit) . . . . . . . $(6,622,508) $5,592,027 $(6,622,508) $5,592,027
------------ ----------- ------------- --------------
------------ ----------- ------------- --------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
EAGLE FINANCE CORP.
STATEMENTS OF CASH FLOWS
THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1998 1997 1998 1997
------------ ----------- ------------- --------------
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net loss. . . . . . . . . . . . . . . . . . . . $(2,830,754) $(3,207,692) $(4,306,489) $(4,715,711)
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:.
Provision for credit losses . . . . . . . 725,600 2,793,321 725,600 3,168,321
Net finance receivable charge-offs
against allowance. . . . . . . . . . . (691,185) (2,887,052) (2,427,980) (4,917,616)
Decrease in: . . . . . . . . . . . . . .
Prepaid expenses . . . . . . . . . . . 55,716 80,438 110,313 151,574
Excess servicing receivable. . . . . . -- 177,574 -- 380,255
Repossessed or titled assets . . . . . 340,233 903,764 1,017,039 2,240,859
Other assets . . . . . . . . . . . . . 672,753 384,451 88,609 16,858
Income tax receivable. . . . . . . . . 25,007 3,406,729 491,695 4,266,729
Increase (decrease) in: . . . . . . . . .
Accrued interest . . . . . . . . . . . 315,051 250,180 334,448 34,458
Accounts payable and accrued
liabilities . . . . . . . . . . . . 331,551 (415,164) 308,255 201,377
Dealer reserves. . . . . . . . . . . . -- (3,091) -- (13,193)
Nonrefundable acquisition discount. . . . (32,232) (1,943,844) (1,081,091) (646,228)
------------ ------------- ------------- --------------
Net cash provided by (used in) operating
activities. . . . . . . . . . . . . . . . . . . (1,088,260) (460,386) (4,739,601) 167,683
------------ ------------- ------------- --------------
Cash flows from investing activities:. . . . . . .
Proceeds from sale of investments . . . . . . . (3,000,000) (7,863) (2,447,479) (212)
Proceeds from bulk sale of vehicle retail
installment notes. . . . . . . . . . . . . . 163,463 30,750,043 14,516,615 30,750,043
Principal collected on finance receivables,
owned. . . . . . . . . . . . . . . . . . . . 894,200 3,786,113 3,120,687 9,949,907
Principal new originations and repurchases
of finance receivables . . . . . . . . . . . (971,610) (12,855,876) (1,139,310) (31,364,741)
Principal write-off on finance receivables,
owned. . . . . . . . . . . . . . . . . . . . 1,844,552 1,238,211 4,130,709 5,575,057
Finance receivables, Installment Contract
sales. . . . . . . . . . . . . . . . . . . . -- (30,750,043) -- (30,750,043)
Principal collected (net of write-offs),
Installment Contract sales. . . . . . . . . . 3,608,672 5,470,267 7,544,835 5,470,267
------------ ------------- ------------- --------------
Net cash provided by (used in) investing
activities. . . . . . . . . . . . . . . . . . 2,539,277 (2,369,148) 25,726,057 (10,369,722)
------------ ------------- ------------- --------------
Cash flows from financing activities:. . . . . . .
Proceeds from Installment Contract sales. . . . -- 30,750,043 -- 30,750,043
Repayments of borrowings, Installment Contract
sales. . . . . . . . . . . . . . . . . . . . (3,672,148) (5,319,502) (7,702,748) (5,319,502)
Proceeds from draws on bank line of credit
agreements . . . . . . . . . . . . . . . . . -- 29,592,066 -- 39,229,348
Repayments of borrowings under bank line of
credit agreements. . . . . . . . . . . . . . -- (51,092,066) (14,997,499) (51,092,066)
Debt to affiliate . . . . . . . . . . . . . . . -- (140,764) (36,612) (916,677)
Proceeds from issuance of other debt. . . . . . -- 7,714 -- 50,768
Repayment of other debt . . . . . . . . . . . . (23,409) (4,217) -- (396,760)
Debt issuance costs . . . . . . . . . . . . . . 141,396 73,383 290,831 284,175
------------ ------------- ------------- --------------
Net cash provided by (used in) financing
activities. . . . . . . . . . . . . . . . . . . (3,554,161) 3,866,657 (22,446,028) 12,589,329
------------ ------------- ------------- --------------
Cash, net change . . . . . . . . . . . . . . . . . (2,103,144) 1,037,123 (1,459,572) 2,387,290
Cash at beginning of period. . . . . . . . . . . . 2,452,820 2,621,761 1,809,248 1,271,594
------------ ------------- ------------- --------------
Cash at end of period. . . . . . . . . . . . . . . $349,676 $3,658,884 $349,676 $3,658,884
------------ ------------- ------------- --------------
------------ ------------- ------------- --------------
Supplemental cash flow disclosures - cash paid
during the period for:
Interest . . . . . . . . . . . . . . . . . . . $141,796 $1,094,431 $997,597 $2,760,479
Income taxes and Illinois replacement tax. . . $ -- $ 15 $ 595 $ 1,925
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
EAGLE FINANCE CORP.
NOTES TO FINANCIAL STATEMENTS
1. The financial statements of Eagle Finance Corp., a Delaware corporation
(the "Company"), are unaudited, but in the opinion of management reflect all
necessary adjustments, consisting only of normal recurring accruals, for a
fair presentation of results as of the dates and for the periods covered by
the financial statements. The results for the interim periods are not
necessarily indicative of the results of operations that may be expected for
the fiscal year. Management suggests that the unaudited interim financial
statements contained herein be read in conjunction with the financial
statements and the accompanying notes to the financial statements included in
the Company's 1997 Annual Report on Form 10-K.
2. Net income (loss) per common share amounts are based on the weighted
average number of common shares and common stock equivalents outstanding as
reflected on Exhibit 11 to this Quarterly Report on Form 10-Q.
3. As of January 1, 1997, the Company adopted FASB 125. FASB 125 provides
accounting and reporting standards for transfers and servicing of financial
assets and retirements of liabilities based on consistent application of a
financial components approach that focuses on control. It distinguishes
transfers of financial assets that are sales from transfers that are secured
borrowings.
4. The Company has restated the financial statements for the three and six
months ended June 30, 1997 to restate transactions recorded in prior periods
as gain on sale in order to reflect such transactions as financing
transactions pursuant to the provisions of FASB 125. Such restatement
affects the accounting treatment of Installment Contract (as defined below)
sales to General Electric Capital Corporation ("GECC") pursuant to the Asset
Purchase Agreement dated as of June 25, 1996, as amended, between the Company
and GECC (including the related Servicing Agreement, the "GECC Agreements")
(the "1997 GECC Transactions") that occurred during the second and third
quarters of 1997. The restatement resulted in the following increases
(decreases) for the three and six months ended June 30, 1997:
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, 1997 June 30, 1997
------------------- ----------------
<S> <C> <C>
Gain on securitization . . . . . . . . . . . . $(2,621,232) $(2,621,232)
Interest income, Installment Contract sales. . 1,046,283 1,046,283
Interest expense, Installment Contract sales . 350,441 350,441
Provision for credit losses, Installment
Contract sales . . . . . . . . . . . . . . . 896,020 896,020
Service fee income . . . . . . . . . . . . . . (63,325) (63,325)
Net income . . . . . . . . . . . . . . . . . . (2,758,085) (2,758,085)
Retained earnings. . . . . . . . . . . . . . . (2,758,085) (2,758,085)
Net income per share . . . . . . . . . . . . . $ (0.66) $ (0.66)
</TABLE>
5. In February 1997, FASB Statement No. 128, "Earnings Per Share" ("FASB
128"), was issued. FASB 128 superseded APB Opinion No. 15, "Earnings Per Share"
and specifies the computation, presentation, and disclosure requirements for
earnings per share (EPS) for entities with publicly held common stock or
potential common stock. FASB 128 was issued to simplify the computation of EPS
8
<PAGE>
and to make the U.S. standard more compatible with the EPS standards of other
countries and that of the International Accounting Standards Committee. It
replaced the presentation of primary EPS with a presentation of basic EPS and
fully diluted EPS with diluted EPS. It also requires dual presentation of basic
and diluted EPS on the face of the income statement for all entities with
complex capital structures and requires a reconciliation of the numerator and
denominator of the basic EPS computation to the numerator and denominator of the
diluted EPS computation.
Basic EPS, unlike primary EPS, excludes dilution and is computed by
dividing income available to common stockholders by the weighted-average
number of common shares outstanding for the period. Diluted EPS reflects the
potential dilution that could occur if securities or other contracts to issue
common stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the entity.
Diluted EPS is computed similarly to fully diluted EPS under APB 15.
FASB 128 is effective for financial statements for both interim and
annual periods ending after December 15, 1997. Earlier application is not
permitted (although pro forma EPS disclosure in the footnotes for periods
prior to required adoption is permitted). After adoption, all prior-period
EPS data presented must be restated to conform with FASB 128. Although no
assurances can be provided, the Company does not expect adoption of FASB 128
to have a significant impact on the Company's financial condition or results
of operations.
In June 1997, FASB issued FASB Statement No. 130, "Reporting
Comprehensive Income", which is effective for fiscal years beginning after
December 15, 1997 ("FASB 130"). The statement establishes standards for
reporting and display of comprehensive income and its components (revenues,
expenses, gains and losses) in a full set of general-purpose financial
statements. This statement requires that all items that are required to be
recognized under accounting standards as components of comprehensive income
be reported in a financial statement that is displayed with the same
prominence as other financial statements.
In July 1997, the FASB issued SFAS No. 131, "Disclosures About Segments
of an Enterprise and Related Information." SFAS 131 requires disclosures for
each segment that are similar to those required under current standards with
the addition of quarterly disclosure requirements and a finer partitioning of
geographic disclosures. SFAS 131 is effective for fiscal years beginning
after December 15, 1997 with earlier application permitted.
In management's opinion, SFAS Nos. 130 and 131, did not have a material
effect of the Company's financial statements.
THIS REPORT MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING
OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THE COMPANY INTENDS SUCH
FORWARD-LOOKING STATEMENTS TO BE COVERED BY THE SAFE HARBOR PROVISIONS FOR
FORWARD-LOOKING STATEMENTS CONTAINED IN THE PRIVATE SECURITIES REFORM ACT OF
1995, AND IS INCLUDING THIS STATEMENT FOR PURPOSES OF INDICATING SUCH INTENT.
FORWARD-LOOKING STATEMENTS THAT ARE BASED ON CERTAIN ASSUMPTIONS, AND
DESCRIBE FUTURE PLANS, STRATEGIES AND EXPECTATIONS OF THE COMPANY, ARE
GENERALLY IDENTIFIABLE BY USE OF THE WORDS "BELIEVE," "EXPECT," "INTEND,"
"ANTICIPATE," "ESTIMATE," "PROJECT" OR SIMILAR EXPRESSIONS. THE COMPANY'S
ABILITY TO PREDICT RESULTS OR THE ACTUAL EFFECT OF FUTURE PLANS OR STRATEGIES
IS INHERENTLY UNCERTAIN. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON
THE OPERATIONS AND FUTURE PROSPECTS OF THE COMPANY INCLUDE, BUT ARE NOT
LIMITED TO, ACTIONS BY CREDITORS OR OTHER THIRD PARTIES, THE RESOLUTION OF
LEGAL PROCEEDINGS IN WHICH THE COMPANY IS (OR MAY BECOME) INVOLVED, CHANGES
IN INTEREST RATES, GENERAL ECONOMIC CONDITIONS, LEGISLATIVE/REGULATORY
CHANGES, MONETARY AND FISCAL POLICIES OF THE U.S. GOVERNMENT, INCLUDING
POLICIES OF THE U.S. TREASURY AND THE FEDERAL RESERVE BOARD, THE QUALITY OR
COMPOSITION OF THE COMPANY'S PORTFOLIO OF FINANCE RECEIVABLES, THE
9
<PAGE>
ABILITY OF THE COMPANY TO OBTAIN DEBT OR OTHER FINANCING, COMPETITION, DEMAND
FOR FINANCIAL SERVICES IN THE COMPANY'S MARKET AREA AND ACCOUNTING
PRINCIPLES, POLICIES AND GUIDELINES. THESE RISKS AND UNCERTAINTIES SHOULD BE
CONSIDERED IN EVALUATING FORWARD-LOOKING STATEMENTS AND UNDUE RELIANCE SHOULD
NOT BE PLACED ON SUCH STATEMENTS. FURTHER INFORMATION CONCERNING THE COMPANY
AND ITS BUSINESS, INCLUDING ADDITIONAL FACTORS THAT COULD MATERIALLY AFFECT
THE COMPANY'S FINANCIAL RESULTS, IS INCLUDED IN OTHER COMPANY FILINGS WITH
THE SECURITIES AND EXCHANGE COMMISSION.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit
No. Description
------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
EAGLE FINANCE CORP.
Date: November 4, 1998 /s/ Robert J. Braasch
-----------------
Robert J. Braasch
President and Chief
Financial Officer
(Duly Authorized Officer
and Principal
Financial Officer)
S-1
<PAGE>
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
27 Financial Data Schedule
<PAGE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,658,884
<SECURITIES> 552,863
<RECEIVABLES> 68,558,302
<ALLOWANCES> 8,618,021
<INVENTORY> 0
<CURRENT-ASSETS> 64,152,028
<PP&E> 7,427,619<F1>
<DEPRECIATION> 0
<TOTAL-ASSETS> 71,579,647
<CURRENT-LIABILITIES> 48,355,892
<BONDS> 17,631,728
0
0
<COMMON> 41,891
<OTHER-SE> 5,550,136
<TOTAL-LIABILITY-AND-EQUITY> 71,579,647
<SALES> 0
<TOTAL-REVENUES> 10,160,207
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,700,658
<LOSS-PROVISION> 4,064,341
<INTEREST-EXPENSE> 3,110,920
<INCOME-PRETAX> (4,715,712)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,715,712)
<EPS-PRIMARY> (1.13)
<EPS-DILUTED> (1.13)
<FN>
<F1>PP&E DOES NOT APPLY - FIGURE REPRESENTS OTHER ASSETS.
</FN>
</TABLE>
