<PAGE>
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 June 30, 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 0-20405
----------------------------------------------------------
ALCO CAPITAL RESOURCE, INC.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 23-2493042
------------------------------- --------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1738 Bass Road, Macon, Georgia 31210
--------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(912) 471-2300
--------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NONE
--------------------------------------------------------------------------------
(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
----- -----
* Applicable only to issuers involved in bankruptcy proceedings during the
preceding five years:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No
----- -----
* Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of July 31, 1995.
Common Stock, $.01 par value per share 1,000 shares
Registered Debt Outstanding as of June 30, 1995 $472 million
The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is, therefore, filing with the reduced disclosure format
contemplated thereby.
<PAGE>
INDEX
ALCO CAPITAL RESOURCE, INC.
PART I. FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements (Unaudited)
Balance Sheets--June 30, 1995 and
September 30, 1994
Statements of Income--Three months ended
June 30, 1995 and June 30, 1994; Nine months
ended June 30, 1995 and June 30, 1994
Statements of Cash Flows--Nine months ended
June 30, 1995 and June 30, 1994
Notes to Financial Statements--June 30, 1995
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
---------------------------
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
----------
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1: Financial Statements (unaudited)
ALCO CAPITAL RESOURCE, INC.
BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
June 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
Assets
Investments in leases:
Direct financing leases $743,655 $508,365
Less: Unearned income (117,854) (76,689)
------------- -------------
625,801 431,676
Funded leases, net 152,983 103,797
------------- -------------
778,784 535,473
Accounts receivable 21,808 17,700
Due from Alco Standard Corporation 3,042
Prepaid expenses and other assets 6,880 5,037
Leased equipment-operating rentals at cost
less accumulated depreciation of:
6/95 - $ 3,578. 18,792
Property and equipment at cost, less
accumulated depreciation of:
6/95 - $ 1,730; 9/94 -$1,939. 4,566 3,418
------------- -------------
Total assets $833,872 $561,628
============= =============
Liabilities and shareholder's equity
Liabilities:
Accounts payable and accrued expenses $9,146 $6,438
Accrued interest 3,616 5,342
Due to Alco Standard Corporation 11,419
Income taxes payable 353
Notes payable to Banks 210,000 330,000
Medium Term Notes 472,000 105,000
Deferred income taxes 24,361 20,048
------------- -------------
Total liabilities 719,123 478,600
Shareholder's equity:
Common Stock - $.01 par value, 1,000 shares
authorized, issued, and outstanding
Contributed capital 71,415 53,415
Retained earnings 43,334 29,613
------------- -------------
Total shareholder's equity 114,749 83,028
------------- -------------
Total liabilities and shareholder's equity $833,872 $561,628
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
ALCO CAPITAL RESOURCE, INC.
STATEMENTS OF INCOME
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30 June 30
--------------------------- ---------------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Lease finance income $19,666 $15,780 $52,781 $44,028
Rental income 2,226 4,060
Interest on Alco income tax deferrals 1,602 960 4,398 2,610
Other income 1,184 808 3,319 2,216
---------- ---------- ---------- ----------
24,678 17,548 64,558 48,854
Expenses:
Interest 9,752 6,246 24,952 18,453
General and administrative 7,128 5,402 18,963 14,509
---------- ---------- ---------- ----------
16,880 11,648 43,915 32,962
Gain on sale of lease receivables 579 1,761
---------- ---------- ---------- ----------
Income before income taxes and cumulative
effect of change in accounting principle 8,377 5,900 22,404 15,892
Provision for income taxes
Current 994 419 4,556 1,116
Deferred 2,312 1,909 4,127 5,082
---------- ---------- ---------- ----------
3,306 2,328 8,683 6,198
---------- ---------- ---------- ----------
Income before cumulative effect of change
in accounting principle 5,071 3,572 13,721 9,694
Cumulative effect of change in accounting
for income taxes 140
---------- ---------- ---------- ----------
Net income $5,071 $3,572 $13,721 $9,834
========== ========== ========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
ALCO CAPITAL RESOURCE, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
June 30
--------------------------
1995 1994
-------- --------
<S> <C> <C>
Operating activities:
Net income $13,721 $9,834
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization 3,993 276
Cumulative effect of change in accounting
principle (140)
Provision for deferred taxes 4,313 5,082
Gain on sale of Lease Receivables (1,761)
Changes in operating assets and liabilities:
Accounts receivable (4,108) (3,784)
Prepaid income taxes and other assets (435) (2,579)
Accounts payable and accrued expenses 2,708 2,162
Accrued interest (1,726) (1,455)
-------- --------
Net cash provided by operating activities 16,705 9,396
Investing activities:
Purchases of equipment for rental (22,370)
Purchases of property and equipment (1,676) (905)
Disposal of equipment 113
Direct financing leases:
Additions (463,814) (306,235)
Cancellations 71,820 46,008
Collections 139,686 150,698
Proceeds from sale of leases 58,183
Funded leases:
Additions (90,418) (42,625)
Cancellations 14,001 8,119
Collections 27,231 22,780
-------- --------
Net cash used by investing activities (267,244) (122,160)
Financing activities:
Proceeds from bank borrowings 148,000
Payments on bank borrowings (120,000) (77,000)
Proceeds from issuance of medium term notes 367,000
Contributed capital 18,000 8,300
-------- --------
Net cash provided by financing activities 265,000 79,300
-------- --------
Decrease(increase) in amounts due to Alco 14,461 (33,464)
Due (to) from Alco at beginning of period (11,419) 552
-------- --------
Due from (to) Alco at end of period $3,042 ($32,912)
======== ========
</TABLE>
See notes to financial statements.
<PAGE>
Alco Capital Resource, Inc.
Notes to Financial Statements
June 30, 1995
Note 1: Basis of Presentation
---------------------
The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. For further information, refer to the financial statements and
footnotes thereto included in the Company's report on Form 10-K for the year
ended September 30, 1994.
Note 2: Medium Term Note Program
------------------------
Effective July 1994, the Company began offering to the public from time to
time medium term notes having an aggregate initial offering price not exceeding
$500 million or the equivalent thereof in foreign currency. These notes are
offered at varying maturities of nine months or more from their dates of issue
and may be subject to redemption at the option of the Company or repayment at
the option of the holder, in whole or in part, prior to the maturity date in
conjunction with meeting specified provisions. Interest rates are determined
based on market conditions at the time of issuance. As of June 30, 1995, $472
million of medium term notes were outstanding with a weighted average interest
rate of 7.1%.
Effective June 1995, the Company filed an additional medium term note
registration in the aggregate initial offering price not exceeding $1 billion
(plus $28 million remaining from the $500 million program). This additional note
program was structured with virtually the same terms and conditions as the
original $500 million medium term note program. Notes under the new registration
were offered for sale starting in July 1995.
Note 3: Asset Securitization
--------------------
Under an asset securitization agreement entered into in September 1994, the
Company sold an undivided ownership interest in $125 million of eligible direct
financing lease receivables. The agreement, which expires in September 1995
(but is expected to be renewed), was structured as a revolving securitization so
that as collections reduce previously sold interests, new leases can be sold up
to $125 million. During the first nine months of fiscal 1995, collections
reduced previously sold interests by $58.2 million. The Company sold an
additional $58.2 million of net eligible direct financing leases and recognized
a $1,761,000 gain on the sale ($1,074,000, net of tax).
Note 4: Supplemental Information to Statements of Cash Flows
----------------------------------------------------
Interest paid for the nine months ended June 30, 1995 and 1994 was $26.7
million and $19.9 million, respectively. Income tax payments for the nine
months ended June 30, 1995 and 1994 were $5.5 million and $2.7 million,
respectively.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
-----------------------------------------------------------------------
of Operations
-------------
Pursuant to General Instruction H(2)(a) of Form 10-Q, the following analysis of
the results of operations is presented in lieu of Management's Discussion and
Analysis of Financial Condition and Results of Operations.
Three Months Ended June 30, 1995 Compared with the
Three Months Ended June 30, 1994
--------------------------------
Comparative summarized results of operations for the three months ended June 30,
1995 and 1994 are set forth in the table below. This table also shows the
increase in the dollar amounts of major revenue and expense items between
periods, as well as the related percentage increase.
<TABLE>
<CAPTION>
(dollars in thousands) Three Months
Ended June 30 Increase
---------------- ----------------
1995 1994 Amount Percent
------- ------- ------ --------
<S> <C> <C> <C> <C>
Revenues
Lease finance income $19,666 $15,780 $3,886 24.6%
Rental income 2,226 2,226
Interest on Alco income tax deferral 1,602 960 642 66.9
Other income 1,184 808 376 46.5
------- ------- ------
24,678 17,548 7,130 40.6
Expenses
Interest 9,752 6,246 3,506 56.1
General and administrative 7,128 5,402 1,726 32.0
------- ------- ------
16,880 11,648 5,232 44.9
Gain on sale of lease receivables 579 579
------- ------- ------
Income before income taxes 8,377 5,900 2,477 42.0
Income taxes 3,306 2,328 978 42.0
------- ------- ------
Net income $ 5,071 $ 3,572 $1,499 42.0%
======= ======= ======
</TABLE>
Revenues
--------
Total revenues increased $7.1 million or 40.6% when comparing the three
month period ended June 30, 1994 to the three month period ended June 30, 1995.
Approximately 54.5% or $3.9 million of this growth in revenues was a result of
increased lease finance income due to growth in the portfolio of direct
financing and funded leases. During the twelve month period from June 30, 1994
to June 30, 1995, the portfolio grew at a 31.3% rate, net of lease receivables
that were sold in asset securitization transactions.
At the start of fiscal year 1995, the Company began offering a new
operating lease product to the Alco Office Products (AOP) dealer network,
whereby office equipment placed on long term rental to customers could be funded
through the Company. At the end of the third quarter of fiscal year 1995,
operating leases with equipment totalling approximately $18.8 million in value
were outstanding, net of accumulated depreciation on the equipment. This new
product contributed $2.2 million in rental income to total revenues during the
third quarter of fiscal 1995.
The Company continues to charge Alco interest on the benefit Alco receives
for income tax deferrals associated with the Company's leasing transactions.
For fiscal 1993 and 1994, Alco paid interest on the deferred tax balances at a
6% rate of interest.
<PAGE>
During the second quarter of fiscal 1995, Alco changed the method by which
the interest rate on deferred taxes is calculated, so that the Company earns
interest at a rate consistent with the Company's weighted average outside
borrowing rate of interest. This change was made retroactively back to the
start of fiscal 1995 and resulted in an average interest rate of 6.6% for fiscal
1995 year-to-date. In addition, the deferred tax base upon which these payments
are calculated increased from $67.8 million at June 30, 1994 to $102.4 million
at June 30, 1995. Due to the combined effect of the increased interest rate and
increased deferred tax balances, but primarily due to the increased deferred tax
balances, interest income on deferred taxes rose $642,000 or 66.9% when
comparing the three months ended June 30, 1994 to the three months ended June
30, 1995.
Other income consists primarily of late payment charges and various billing
fees. The structure of these fees has remained basically unchanged from fiscal
1994 to fiscal 1995. The growth in other income is primarily due to the
increased size of the lease portfolio upon which these fees are based. Overall,
fee income from these sources grew by $376,000 or 46.5%, when comparing the
third quarter of fiscal 1994 to the third quarter of fiscal 1995.
Expenses
--------
Debt to fund the lease portfolio in the form of loans from major banks and
the issuance of medium term notes in the public markets rose by 46.4%, from a
total of $466 million outstanding at June 30, 1994 to $682 million at June 30,
1995. As a result of increased borrowing to fund the portfolio and an increase
in the Company's average cost of debt during fiscal 1995, interest expense grew
by $3.5 million or 56.1% when comparing the results for the third quarter of
fiscal 1994 to the third quarter of fiscal 1995. At June 30, 1995, the
Company's debt to equity ratio, including intercompany amounts due from Alco,
was at 5.9:1.
During June 1995, the Company completed the filing of a new medium term
note registration in the amount of $1 billion, designed to meet the Company's
anticipated portfolio funding needs over the next eighteen to twenty-four
months. This new note program was structured similar to the original $500
million medium term note program that the Company filed in June 1994 which was
used to meet portfolio funding needs during the period July 1994 to June 1995.
The new program allows for the issuance of medium term notes in the public
markets with maturities ranging from nine months up to ten years, through four
nationally recognized investment firms.
Total general and administrative expenses grew by approximately $1.7
million or 32%, when comparing the third quarter of fiscal 1994 to the same
period of fiscal 1995. However, the general and administrative expense total
reported for the third quarter of fiscal 1995 includes depreciation expense on
leased equipment of approximately $2 million. There is no comparable
depreciation expense included in general and administrative expenses reported
for the third quarter of fiscal 1994, due to the October 1994 start of the
operating lease product.
In addition, the general and administrative expense totals for both the
third quarter 1994 and the third quarter 1995 include the lease bonus subsidy
payments made to AOP dealers for qualifying new lease volume. At the start of
the third quarter of fiscal 1995, bonus subsidy payments to dealers were
reduced, due to the Company's increased borrowing costs. As a result, the lease
bonus payments were $540,000 or 23.5% less in the third quarter of fiscal 1995
as compared to the third quarter of fiscal 1994.
Excluding the effect of the addition of depreciation expense on operating
leases and the reduction in lease bonus subsidy payments, remaining general and
administrative expenses grew $256,000 or 8.2%, when comparing the third quarter
of fiscal 1994 to the third quarter of fiscal 1995. There have been no
significant changes in the portfolio servicing costs of the Company between
fiscal 1994 and fiscal 1995. Accordingly, the 8.2% increase in general and
administrative expenses between these two quarters is primarily due to the
growth of the serviced lease portfolio.
<PAGE>
Gain on Sale of Lease Receivables
---------------------------------
Under an asset securitization program entered into in September 1994, the
Company sold an undivided ownership interest in $125 million of eligible direct
financing lease receivables. This agreement, which expires in September 1995
(but is expected to be renewed), was structured as a revolving securitization so
that as collections reduce previously sold interests, new leases can be sold up
to $125 million. During the three months ended June 30, 1995, collections
reduced previously sold interests by $19.8 million. The Company sold an
additional $19.8 million in net eligible direct financing leases and recognized
a $579,000 gain on the sale ($353,000 net of tax).
Income Before Taxes
-------------------
Income before taxes grew by approximately $2.5 million or 42.0%, when
comparing pretax earnings for the third quarter of fiscal 1994 to fiscal 1995.
This increase in income before taxes was essentially the net effect of higher
finance income on a larger portfolio base, that was supplemented by strong
growth in other income segments (including gain on sale of lease receivables)
and a slower growth rate in general and administrative expenses than was
experienced in fiscal 1994.
Taxes on Income
---------------
The $978,000 or 42.0% increase in income taxes from the third quarter of
fiscal 1994 to the third quarter of fiscal 1995 is directly attributable to
higher income before taxes in the third quarter of fiscal 1995 as compared to
the third quarter of fiscal 1994. Effective tax rates for the two periods
remained unchanged at 39.5%.
Nine Months Ended June 30, 1995 Compared with the
Nine Months Ended June 30, 1994
-------------------------------------------------
Comparative summarized results of operations for the nine months ended June 30,
1995 and 1994 are set forth in the table below. This table also shows the
increase/(decrease) in the dollar amounts of major revenue and expense items
between periods, as well as the percentage increase.
<TABLE>
<CAPTION>
(dollars in thousands) Nine Months
Ended June 30 Increase/(Decrease)
---------------- --------------------
1995 1994 Amount Percent
------- ------- --------- ---------
<S> <C> <C> <C> <C>
Revenues
Lease finance income $52,781 $44,028 $ 8,753 19.9%
Rental income 4,060 4,060
Interest on Alco income tax deferral 4,398 2,610 1,788 68.5
Other income 3,319 2,216 1,103 49.8
------- ------- -------
64,558 48,854 15,704 32.1
Expenses
Interest 24,952 18,453 6,499 35.2
General and administrative 18,963 14,509 4,454 30.7
------- ------- -------
43,915 32,962 10,953 33.2
Gain on sale of lease receivables 1,761 1,761
------- ------- -------
Income before income taxes and
cumulative effect of change
in accounting principle 22,404 15,892 6,512 41.0
Income taxes 8,683 6,198 2,485 40.1
------- ------- -------
Income before cumulative effect
of change in accounting principle 13,721 9,694 4,027 41.5
Cumulative effect of change in
accounting for income taxes 140 (140)
------- ------- -------
Net income $13,721 $ 9,834 $ 3,887 39.5%
======= ======= =======
</TABLE>
<PAGE>
Revenues
--------
Total revenues increased $15.7 million or 32.1% when comparing the nine
month period ended June 30, 1994 to the nine month period ended June 30, 1995.
Approximately 55.7% or $8.8 million of this increase in revenues was a result of
increased lease finance income due to growth in the portfolio of direct
financing and funded leases. During the twelve month period from June 30, 1994
to June 30, 1995, the portfolio grew at a 31.3% rate, net of lease receivables
that were sold in asset securitization transactions.
At the start of fiscal 1995, the Company began offering a new operating
lease product to the AOP dealer network, whereby office equipment placed on long
term rental to customers could be funded through the Company. At the end of the
third quarter of fiscal year 1995, operating leases with equipment totalling
approximately $18.8 million in value were outstanding, net of accumulated
depreciation on the equipment. This new product contributed $4.1 million in
rental income to total revenues during the first nine months of fiscal 1995.
The Company continues to charge Alco interest on the benefit Alco receives
for income tax deferrals associated with the Company's leasing transactions.
For fiscal 1993 and 1994, Alco paid interest on the deferred tax balances at a
6% rate of interest.
During the second quarter of fiscal 1995, Alco changed the method by which
the interest rate on deferred taxes is calculated, so that the Company earns
interest at a rate consistent with the Company's weighted average outside
borrowing rate of interest. This change was made retroactively back to the
start of fiscal 1995 and resulted in an average interest rate of 6.6% for the
nine months of fiscal 1995. In addition, the deferred tax base upon which these
payments are calculated increased from $67.8 million at June 30, 1994 to $102.4
million at June 30, 1995. Due to the combined effect of the increased interest
rate and the increased deferred tax balances, but primarily due to increased
deferred tax balances, interest income on deferred taxes rose $1.8 million or
68.5% when comparing the nine months ended June 30, 1994 to the nine months
ended June 30, 1995.
Other income consists primarily of late payment charges and various billing
fees. The structure of these fees has remained basically unchanged from fiscal
1994 to fiscal 1995. The growth in other income from fees is primarily due to
the increased size of the lease portfolio upon which these fees are based.
Overall, fee income from these sources grew by $1.1 million or 49.8%, when
comparing the first nine months of fiscal 1994 to the same period of fiscal
1995.
Expenses
--------
Debt to fund the lease portfolio in the form of loans from major banks and
the issuance of medium term notes in the public markets rose by 46.4%, from a
total of $466 million outstanding at June 30, 1994 to $682 million at June 30,
1995. As a result of increased borrowing to fund the portfolio, interest
expense grew by $6.5 million or 35.2% when comparing the first nine months of
fiscal 1994 to the first nine months of fiscal 1995. At June 30, 1995, the
Company's debt to equity ratio, including intercompany amounts due from Alco,
was at 5.9:1.
During June 1995, the Company completed the filing of a new medium term
note registration in the amount of $1 billion, designed to meet the Company's
anticipated portfolio funding needs over the next eighteen to twenty-four
months. This new note program was structured similar to the original $500
million medium term note program that the Company filed in June 1994 which was
used to meet portfolio funding needs during the period July 1994 to June 1995.
The new program allows for the issuance of medium term notes in the public
markets with maturities ranging from nine months up to ten years, through four
nationally recognized investment firms.
<PAGE>
Total general and administrative expenses grew by approximately $4.5
million or 30.7%, when comparing the first nine months of fiscal 1994 to the
same period of fiscal 1995. However, the general and administrative expense
category for fiscal 1995 includes year-to-date depreciation expense on leased
equipment totalling $3.6 million. There is no comparable depreciation expense
included in general and administrative expenses for the first nine months of
fiscal 1994, due to the October 1994 startup of the operating lease product.
Excluding the effect of the addition of depreciation expense on operating
leases, remaining general and administrative expenses grew $876,000 or 6.0%,
when comparing the first nine months of fiscal 1994 to the first nine months of
fiscal 1995. There have been no significant changes in the portfolio servicing
costs of the Company between fiscal 1994 and fiscal 1995, therefore, the 6.0%
increase in general and administrative expenses between these two periods is a
direct result of the growth of the serviced lease portfolio.
Gain on Sale of Lease Receivables
---------------------------------
Under an asset securitization agreement entered into in September 1994, the
Company sold an undivided ownership interest in $125 million of eligible direct
financing lease receivables. This agreement, which expires in September 1995
(but is expected to be renewed), was structured as a revolving securitization so
that as collections reduce previously sold interests, new leases can be sold up
to $125 million. During the nine months ended June 30, 1995, collections
reduced previously sold interests by $58.2 million. The Company sold an
additional $58.2 million in net eligible direct financing leases and recognized
a $1.8 million gain on the sale ($1.1 million, net of tax).
Income Before Taxes
-------------------
Income before taxes grew by $6.5 million or 41.0%, when comparing pretax
earnings for the first nine months of fiscal 1994 to fiscal 1995. This
increase in income before taxes was essentially the net effect of higher finance
income on a larger portfolio base, that was supplemented by strong growth in
other income segments (including gain on sale of lease receivables) and a slower
growth rate in general and administrative expenses than was experienced in
fiscal 1994.
Taxes on Income
---------------
The $2.5 million or 40.1% increase in income taxes from the nine month
period ended June 30, 1994 to the nine month period ended June 30, 1995 is
directly attributable to higher income before taxes in the first nine months of
fiscal 1995 as compared to the first nine months of fiscal 1994. The effective
tax rate for the first nine months of fiscal year 1995 was 38.8% compared to
39.0% for the first nine months of 1994.
<PAGE>
PART II. OTHER INFORMATION
---------------------------
Item 6. Exhibits and Reports on Form 8-K
------- --------------------------------
(a) The following Exhibits are furnished pursuant to Item 601 of Regulation
S-K:
Exhibit No. (27) Financial Data Schedule
<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, thereunto duly authorized. This report has also been signed by the
undersigned in his capacity as the chief accounting officer of the Registrant.
ALCO CAPITAL RESOURCE, INC.
Date August 10, 1995 /s/Robert M. Kearns II
---------------- ----------------------
Robert M. Kearns II
Vice President
(Chief Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Alco Capital Resource, Inc. and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> JUN-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 800,592,000<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 28,666,000<F2>
<DEPRECIATION> 5,308,000<F2>
<TOTAL-ASSETS> 833,872,000
<CURRENT-LIABILITIES> 0
<BONDS> 682,000,000
<COMMON> 0<F3>
0
0
<OTHER-SE> 114,749,000
<TOTAL-LIABILITY-AND-EQUITY> 883,872,000
<SALES> 0
<TOTAL-REVENUES> 64,558,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 18,963,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 24,952,000
<INCOME-PRETAX> 22,404,000
<INCOME-TAX> 8,683,000
<INCOME-CONTINUING> 13,721,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,721,000
<EPS-PRIMARY> 0<F4>
<EPS-DILUTED> 0<F4>
<FN>
<F1>Includes net investments on leases of $778,784,000 and other accounts
receivable
<F2>Includes leased equipment of: cost - $22,370,000; accumulated depreciation -
$3,578,000
<F3>Common stock, $.01 par value, 1,000 shares outstanding. Since total is less
than $1,000, zero is reported.
<F4>Not required as the registrant is a wholly-owned subsidiary.
</FN>
</TABLE>
