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 September 30, 1996
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ________ to _______.
Commission File No. 0-24686
FIRST MERCHANTS ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
36-3759045
(I.R.S. Employer Identification Number)
570 Lake Cook Road, Suite 126, Deerfield, Illinois 60015
(Address of principal executive offices)
(847) 948-9300
(Registrant's telephone number, including area code)
N/A
(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 ( )
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock $.01 par value, 6,525,519 shares outstanding as of November 1,
1996.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
FIRST MERCHANTS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands except par values)
<CAPTION>
September 30 December 31
1996 1995
---------------------------------
ASSETS (Unaudited)
<S> <C> <C>
Net finance receivables $ 284,571 $ 251,908
Allowance for credit losses (17,096) (14,301)
--------- ----------
Net receivables 267,475 237,607
--------- ----------
Finance receivables held for sale,net 32,712 32,265
Excess servicing receivable 14,996 -
Cash 808 112
Restricted cash 22,177 6,808
Repossessed collateral 3,073 2,305
Property and equipment, net 3,843 1,624
Other assets 4,299 1,553
--------- ---------
Total assets $ 349,383 $ 282,274
========= =========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Liabilities:
Borrowings under senior revolving credit
facility $ 73,125 $ 104,000
Notes payable-securitized pools 153,109 70,378
Accounts payable and accrued expenses 9,818 5,765
Interest payable 1,415 471
Dealer reserves 321 553
Income taxes 3,849 2,932
-------- --------
241,637 184,099
-------- --------
Subordinated reset notes, net 13,982 13,896
-------- --------
Total liabilities 255,619 197,995
-------- --------
Stockholders' equity:
Preferred stock - $100 par value, 500 shares authorized,
no shares issued and outstanding - -
Common stock - $.01 par value:
Non-voting - 300 shares authorized, no shares
issued and outstanding at September 30, 1996
and December 31, 1995
Voting - 20,000 shares authorized, 6,526 shares
issued and outstanding at September 30, 1996
and December 31, 1995 65 65
Additional paid-in-capital 75,077 75,102
Retained earnings 18,622 9,112
--------- ---------
Total stockholders' equity 93,764 84,279
--------- ---------
Total liabilities and stockholders'
equity $ 349,383 $ 282,274
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
FIRST MERCHANTS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In Thousands except per share data)
<CAPTION> Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
------------------ -------------------
<S> <C> <C> <C> <C>
Revenues:
Interest income-finance contracts $ 17,232 10,256 $ 52,711 24,744
Other portfolio income 580 337 1,546 816
Gain on sale of finance receivables 6,795 - 14,887 -
Servicing fee and other income 1,574 - 2,443 -
------- ------ ------ ------
Total Revenues 26,181 10,593 71,587 25,560
------- ------ ------ ------
Expenses:
Interest expense 5,353 3,092 15,024 7,460
Provision for credit losses 4,300 525 12,000 650
Operating expenses:
Employee compensation and related
costs 6,655 2,761 17,424 6,769
Other operating expenses 4,467 1,512 11,549 3,892
------- ------- -------- -------
Total Expenses 20,775 7,890 55,997 18,771
-------- ------- -------- -------
Earnings before income taxes 5,406 2,703 15,590 6,789
Income taxes 2,108 1,026 6,080 2,579
-------- ------- -------- --------
Net earnings $ 3,298 1,677 9,510 4,210
====== ====== ===== ======
Net earnings per share $ 0.49 0.37 1.41 0.94
====== ====== ===== ======
Weighted average number of common
and common equivalent shares
outstanding 6,727 4,489 6,743 4,471
===== ====== ===== =====
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
FIRST MERCHANTS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in Thousands)
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
--------------------------------------
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Interest income received -
finance contracts $ 17,543 10,221 $53,428 25,023
Servicing fees received 3,653 - 6,550 -
Ancillary and other operating receipts 572 601 1,661 1,068
Purchases of finance receivables,
held for sale, net (123,399) - (263,529) -
Proceeds from sale of finance
receivables, held for sale, net 115,896 - 258,865 -
Payments for operating expenses (12,252) (4,905) (28,375) (10,409)
Payments for interest and
borrowing fees (4,523) (3,549) (13,138) (6,383)
Income taxes paid (1,500) (1,413) (5,162) (1,612)
---------- --------- --------- --------
Net cash flows from operating
activities (4,010) 955 10,300 7,687
--------- --------- --------- -------
Cash flows from investing activities:
Purchases of finance contracts, net (9,811) (55,880)(134,171) (149,512) Principal
payments received on finance
contracts, net 31,777 17,444 91,980 45,458
Purchases of property and equipment (509) (277) (2,822) (836)
(Increase) decrease in restricted cash (660) - (15,360) (490)
-------- ------- -------- --------
Net cash flows from investing
activities 20,797 (38,713) (60,373) (105,380)
-------- ------- -------- ---------
Cash flows from financing activities:
Proceeds from issuance of subordinated
debt, net - - - 13,530
Proceeds from issuance of notes
payable-securitized pools, net 124,989 -
Repayment of notes payable-securitized
pools (19,990) - (43,321) -
Net increase (decrease) in borrowings
under senior revolving credit facility 3,300 37,750 (30,875) 84,125
Other - - (24) (26)
-------- -------- -------- -------
Net cash flows from financing
activities (16,690) 37,750 50,769 97,629
-------- -------- -------- -------
Net increase (decrease) in cash 97 (8) 696 (64)
Cash balance beginning of period 711 79 112 135
-------- -------- ------- -------
Cash balance end of period $ 808 71 808 71
====== ====== ====== =======
<CAPTION>
Reconciliation of net earnings to net cash
flows from operating activities:
<S> <C> <C> <C> <C>
Net earnings $ 3,298 1,677 9,510 4,210
Amortization of contract acquisition
costs and discounts, net 303 219 832 572
Provision for credit losses 4,300 525 12,000 650
Depreciation 284 102 603 255
Amortization of debt issuance costs
and other 384 72 1,141 460
Provision (benefit) for deferred
income taxes (960) 432 (174) 661
Increase in other assets (1,751) (439) (2,716) (589)
Increase in finance receivables
held for sale, net (6,491) - (447) -
Gain on sale of finance receivables
and other increasesin excess servicing
fee receivables (5,728) - (14,996) -
Increase (decrease) in accounts
payable and accrued expenses 334 (320) 2,512 437
Increase (decrease) in interest payable 449 (494) 944 725
Increase (decrease) in income taxes 1,568 (819) 1,091 306
------- ------ ------- ------
Net cash flows from operating
activities $ (4,010) 955 10,300 7,687
======= ====== ====== =====
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
FIRST MERCHANTS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. General
First Merchants Acceptance Corporation and its wholly owned subsidiaries (the
"Company") operate as a specialty consumer finance company primarily engaged
in financing the purchase of used automobiles through the acquisition of
dealer-originated retail installment contracts ("finance contracts")
collateralized by the underlying automobiles. The Company was incorporated on
March 22, 1991, in Delaware and commenced operations on June 1, 1991.
The unaudited interim consolidated financial statements of the Company, in the
opinion of management, reflect all necessary adjustments, consisting only of
normal recurring adjustments, for a fair presentation of results as of the
dates and for the interim periods covered by the financial statements. The
results for the interim periods are not necessarily indicative of the results
of operations to be expected for the entire year.
The unaudited interim consolidated financial statements have been prepared in
conformity with generally accepted accounting principles and reporting
practices. Certain information in footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles has been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission; however the Company believes the
disclosures are adequate to make the information not misleading. The unaudited
interim consolidated financial statements contained herein
should be read in conjunction with the audited financial statements and notes
thereto included in the Company's Annual Report to Stockholders for the year
ended December 31, 1995.
Certain amounts in the December 31, 1995 financial statements have been
reclassified to conform with current financial statement presentation. The
consolidated financial statements include accounts of the Company and its
wholly owned subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation.
2. Finance Receivables
The finance contracts generally have terms of 18 to 60 months. Net finance
receivable balances consisted of the following at September 30, 1996 and
December 31, 1995:
<TABLE>
<CAPTION>
September 30 December 31
1996 1995
----------------------------------------
(Dollars in Thousands)
<S> <C> <C>
Precomputed interest contracts, net $235,197 $222,931
Simple interest contracts 49,374 28,977
---------- ----------
Net finance receivables $284,571 $251,908
========= =========
</TABLE>
Precomputed interest contracts are shown net of unearned finance charges of
$82,691 and $89,319 at September 30, 1996 and December 31, 1995,
respectively. Net finance receivables as of September 30,1996, include
$18,399 of finance receivables restricted to provide credit enhancement as
required under the terms of the Company's sales and securitizations of finance
receivables.
Activity in the allowance for credit losses and contract acquisition discount
for the three months ended and nine months ended September 30, 1996 and 1995
was as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
--------------------------------------
(Dollars in Thousands)
<S> <C> <C> <C> <C>
Allowance for Credit Losses:
Balance - beginning of period $18,829 $9,795 $ 14,301 $ 4,489
Discounts allocated to allowance
for credit losses, net 415 3,716 7,871 10,651
Provision for credit losses 4,300 525 12,000 650
Charge-offs, net (6,448) (2,396) (17,076) (4,150)
----------- ------- --------- --------
Balance-end of period $17,096 $11,640 $17,096 $11,640
======= ======= ======= ======
Contract Acquisition Discount:
Balance-beginning of period $ - $ 59 $ - $1,401
Amortized to interest income - - - (13)
Charge-offs, net - (59) - (1,356)
Other - - - (32)
-------- ------- ------ -------
Balance-end of period $ - $ - $ - $ -
====== ====== ===== =====
Summary of Net Charge-offs:
Charge-offs - allowance for credit
losses $ 7,270 $ 2,583 18,719 4,547
Recoveries - allowance for
credit losses (822) (187) (1,643) (397)
------- ------ -------- -------
Charge-offs, net 6,448 2,396 17,076 4,150
Charge-offs - contract
acquisition discount - 59 - 1,356
------- ------ ------- -----
Total net charge-offs $ 6,448 $ 2,455 $ 17,076 $ 5,506
====== ====== ======= ======
</TABLE>
3. Excess Servicing Receivable
Excess servicing receivable represents the Company's subordinated interest in
the First Merchants Grantor Trust 1996-1 (the "Trust 1996-1"), First Merchants
Grantor Trust 1996-2 (the "Trust 1996-2"), and First Merchants Owners Trust
1996-B (the "Trust 1996-B") together known as (the "Trusts"). The excess
servicing receivable is equal to the present value of estimated future
collections and recoveries on the finance receivables sold to the Trusts, less
the present value of required principal and interest payments to the
investors, base servicing fees payable to the Company at an annual rate of
2.5% of finance receivables serviced and certain other fees. The calculation
of excess servicing receivable includes estimates of future credit losses and
prepayment rates for the remaining term of the finance receivables sold since
these factors impact the amount and timing of future collections and
recoveries on the pool of finance receivables. If future credit losses and
prepayment rates exceed the Company's estimates, the excess servicing
receivable will be adjusted through a charge to operations. Favorable credit
loss and prepayment experience compared to the Company's estimates would
result in additional servicing fee income. The excess servicing receivable is
amortized using the interest method against realized excess servicing fee
income.
At September 30, 1996, excess servicing receivable consists of the following:
<TABLE>
<CAPTION>
(Dollars in Thousands)
<S> <C>
Estimated future net cash flows before allowance for credit losses $46,020
Allowance for credit losses (24,998)
---------
Estimated future net cash flows 21,022
Unamortized discount (6,026)
----------
Balance at September 30, 1996 $14,996
=======
</TABLE>
4. Senior Revolving Credit Facility
As of September 30, 1996, the Company had a $205.0 million senior revolving
credit facility (the "Senior Revolving Credit Facility") with a group of nine
banks. Borrowings under the Senior Revolving Credit Facility are secured by
certain assets of the Company. The Company has the option to either borrow at
LIBOR plus 1.60% or at the reference prime rate. On May 1, 1996, the Company
amended the loan agreement relating to the Senior Revolving Credit Facility to
provide for an additional temporary credit facility (the "Temporary Credit
Facility") in the amount of $25.0 million which expired on November 1, 1996,
and bears interest at the reference prime rate. At September 30, 1996, there
were no amounts outstanding under the Temporary Credit Facility. The average
interest rate on the Senior Revolving Credit Facility was 7.7%, 8.2%, 7.9%,
and 8.3% for the three months ended and nine months ended September 30, 1996
and 1995, respectively. At September 30, 1996, and December 31, 1995, the
interest rate on the borrowings was 7.30% and 7.39%, respectively. The Senior
Revolving Credit Facility expires June 30, 1997. The Senior Revolving Credit
Facility requires the Company to maintain specified financial ratios and to
comply with other covenants. The Company was in compliance with these ratios
and covenants at September 30, 1996.
5. Notes Payable - Securitized Pool
On November 17, 1995, the Company completed a $75.1 million debt financing
consisting of 6.20% automobile receivable-backed notes, Series 1995-A. The
Series 1995-A notes were issued by First Merchants Auto Receivable
Corporation, a wholly-owned special purpose subsidiary of First Merchants
Acceptance Corporation.
On May 21, 1996, the Company completed a $125.9 million debt financing
consisting of automobile receivable-backed notes, Series 1996-A. Of these
notes, $85.0 million have a floating interest rate of 0.17% over the one-month
LIBOR and the remaining $40.9 million have a fixed interest rate of 6.70%.
The Series 1996-A notes were issued by First Merchants Auto Trust 1996-A, a
trust formed specifically for purposes of the securitization structure.
In an effort to reduce the Company's exposure to potential increases in
interest rates, the Company entered into an interest rate swap agreement on
May 21,1996, with an initial notional amount of $85.0 million whereby the
Company pays a fixed rate of 5.98% and receives a variable rate of one-month
LIBOR. The notional amount declines, as specified in the swap agreement, at
each month-end through May 1998. At September 30,1996, the notional amount
was $64.5 million and one month LIBOR was 5.41%.
The proceeds the Company received from the issuance of notes under Series
1995-A and Series 1996-A were used to repay indebtedness under the Senior
Revolving Credit Facility. Principal and interest on the notes are payable
monthly from collections and recoveries in the pools of finance receivables.
Financial Security Assurance Inc. ("FSA") issued a financial guaranty
insurance policy for the benefit of the note holders.
The Company is required to establish and maintain cash reserve and collection
accounts with a trustee with respect to the securitized pools of finance
receivables. The amounts set aside would be used to supplement certain
shortfalls in payments, if any, to investors. These balances are subject to
an increase up to a maximum amount as specified in the securitization
indentures and are invested in certain instruments as permitted by the trust
agreements. To the extent balances on deposit exceed specified levels,
distributions are made to the Company and, at the termination of the
transaction, any remaining amounts on deposit are distributed to the Company.
The indentures require the Company to maintain delinquency and credit loss
covenants. The Company was in compliance with these covenants at September
30, 1996.
6. Sale and Securitization of Finance Contracts
On March 12, 1996, the Company completed a sale of finance receivables to
Trust 1996-1 and the issuance of $55.8 million of automobile
receivables-backed certificates of Trust 1996-1. The Company retained a
subordinated interest in Trust 1996-1. The certificates have a pass through
interest rate of 5.90%.
On June 26, 1996, the Company completed a sale of finance receivables to Trust
1996-2 and the issuance of $90.4 million of automobile receivables-backed
certificates of Trust 1996-2. The Company retained a subordinated interest in
Trust 1996-2. The certificates have a pass through interest rate of 6.85%.
On September 26,1996, the Company completed a sale of finance receivables to
Trust 1996-B, and the issuance of $117.5 million of automobile receivables
backed certificates and notes, Series 1996-B. Of these certificates and
notes, $82.3 million have a floating interest rate of 0.12% over one-month
LIBOR, $30.5 million have a fixed interest rate of 6.80% and the remaining
$4.7 million have a fixed interest rate of 7.00%.
In an effort to reduce the Company's exposure to potential increases in
interest rates, the Company entered into an interest rate swap agreement on
September 26, 1996, with an initial notional amount of $82.3 million, whereby
the Company pays a fixed rate of 6.30% and receives a variable rate of
one-month LIBOR. The notional amount declines, as specified in the swap
agreement, at each month-end through March 1999. At September 30, 1996, the
notional amount was $82.3 million and one-month LIBOR was 5.41%.
The Company recognized gains on the sales of finance receivables in the amount
of $3.0 million, $5.1 million and $6.8 million to the Trust 1996-1, Trust
1996-2, and Trust 1996-B, respectively. The gains represent the difference
between the sales proceeds, net of the transaction costs, and the Company's
carrying value of the receivables sold, plus the present value of the excess
servicing rights. The proceeds the Company received from these sale and
securitization transactions were used to repay borrowings under the Senior
Revolving Credit Facility. FSA issued a financial guaranty insurance policy
for the benefit of the investors.
7. Common Stock Options
Stock option activity for the nine months ended September 30, 1996 was as
follows:
<TABLE>
<CAPTION>
Number of Exercise Price
Shares Range Per Share
---------- ---------------
<S> <C> <C>
Balance at December 31, 1995 311,017 $ 0.04-19.00
Granted 285,400 $19.00-24.25
Canceled (28,408) $ 4.40-19.50
----------
Balance at September 30, 1996 568,009
Options exercisable 230,215 $ 0.04-19.00
======== ============
Options available for future grant 564,450
========
</TABLE>
At the Annual Meeting held on May 14, 1996, the Company's stockholders voted
to amend the 1994 Equity Incentive Plan (the"Plan") to increase the aggregate
number of shares of Common Stock available under the Plan from 300,000 to
750,000 and made certain other modifications.
8. Litigation
On August 27, 1996, a purported class action was filed against an automobile
dealer and the Company. The complaint, as amended on September 27, 1996 (the
"Complaint"), alleges violations of certain Federal and Illinois consumer
protection statutes and RICO and seeks unspecified damages. The Company
believes that certain material allegations in the Complaint are incorrect and
that it has meritorious defenses to the claims made in the Complaint. The
Company intends to vigorously defend this action.
9. Commitments and Contingent Liabilities
In May 1996, the Company entered into a six year contract for a systems
configuration and the receipt of data processing services. The contract,
which expires in May 2002, requires minimum service fees as follows:
(Dollars in Thousands)
1996 .................................. $ 792
1997 .................................. 2,331
1998 ................................... 2,194
1999 ................................... 2,194
2000 ................................... 2,194
thereafter ........................... 3,290
--------------------
$ 12,995
============
10. Impact of New Accounting Pronouncements
Statement of Financial Accounting Standards No. 123, "Accounting for
Stock-based Compensation" ("SFAS 123"), provides an alternative method of
accounting for stock-based compensation and requires certain disclosures
regarding the fair value of stock-based compensation. The Company did not
adopt the alternative method of accounting for stock-based compensation and,
accordingly, the adoption of SFAS 123 will not have an effect on the Company's
financial position or results of operations. The Company expects to expand
its disclosure of stock-based compensation plans to include proforma fair
value information in the 1996 Annual Report to Stockholders.
Statement of Financial Accounting Standards No. 125, "Accounting for Transfers
and Servicing of Financial Assets and Liabilities" ("SFAS 125"), effective for
the Company in 1997, provides new methods of accounting and reporting for
transfers and servicing of financial assets and extinguishments of
liabilities. The Company will apply SFAS 125 to securitization transactions
occurring on or after January 1, 1997. The effect of adopting SFAS 125 is not
expected to have a material effect on the Company's financial position or
results of operations.
11. Subsequent Event
On November 1, 1996, the Company issued $51.8 million of Subordinated Reset
Notes, (the "1996 Subordinated Reset Notes") in an underwritten public
offering. Interest on the 1996 Subordinated Reset Notes is payable quarterly
at an interest rate of 9.50%, commencing December 15, 1996, until December 15,
2001. The interest rate will reset at the Company's option on December 15,
2001 to a rate, and for a term of one, two, three or five years, determined by
the Company and will reset thereafter, at the Company's option, upon the date
of expiration of each such new interest period prior to maturity on December
15, 2006. Holders of the 1996 Subordinated Reset Notes have the option to
redeem all or any portion of the notes on December 15, 2001 or any subsequent
interest reset date. Proceeds from the issuance of 1996 Subordinated Reset
Notes were used to repay borrowings under the Senior Revolving Credit
Facility.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of the financial
condition of the Company at September 30, 1996, as compared with December 31,
1995, and the results of operations for the three months ended and nine months
ended September 30, 1996 and 1995. The financial information provided below
has been rounded in order to simplify its presentation. The ratios and
percentages provided below are calculated using the detailed financial
information contained in the unaudited interim consolidated financial
statements, the notes thereto and the financial data elsewhere in this report.
General
The Company is a specialty finance company primarily engaged in financing the
purchase of used automobiles through the acquisition of dealer-originated
retail installment contracts ("finance contracts"), collateralized by the
underlying automobiles. The Company has experienced significant annual growth
in its finance contract portfolio since it commenced operations in June 1991.
The Company derives its revenues from its finance contract portfolio and from
the gains and servicing fees associated with the securitization of finance
receivables.
In order to adjust for credit risks and achieve an acceptable rate of return,
the Company typically purchases finance contracts from dealers at a discount
from the principal amounts of such contracts. This discount is non-refundable
to the dealer. The discount is allocated to the allowance for credit losses.
Prior to 1995, a portion of the discount was being amortized into interest
income. Beginning in 1995, the remaining unamortized contract acquisition
discounts were used to absorb credit losses.
Results of Operations
The following table sets forth certain financial data relating to the Company:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
------------------- -----------------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Average net finance
receivables-owned (1) $329,723 $184,595 $322,126 $146,937
Average net finance receivables
- -serviced (1) 526,709 184,595 431,907 146,937
Average indebtedness (2) 274,694 141,305 251,554 107,701
Income from finance contract portfolio 17,812 10,593 54,257 25,560
Interest expense 5,353 3,092 15,024 7,460
Net interest income 12,459 7,501 39,233 18,100
Gross portfolio yield (3) 21.6% 23.0% 22.5% 23.1%
Average cost of borrowed funds (2) 7.8% 8.8% 8.0% 9.2%
------ ------ ----- -----
Net interest spread (4) 13.8% 14.2% 14.5% 13.9%
Net portfolio yield (3) 15.1% 16.3% 16.2% 16.4%
Total states served 37 21 37 21
<FN>
- -----------------------------
(1) Net finance receivables-owned represents those net finance
receivables that have been retained by the Company. Net finance
receivables-serviced represents net finance receivables sold and net
finance receivables owned. Net finance receivables owned and serviced
represents the total contractual payments due under finance contracts less
the related unearned finance charges on those contracts. Net finance
receivables owned and serviced have not been reduced by unamortized contract
acquisition discounts, unearned ancillary income, unamortized contract
acquisition costs and the allowance for credit losses. Average net finance
receivables-owned and serviced are calculated based on the month-end
balances.
(2) Indebtedness includes the borrowings outstanding under the senior
revolving credit facility, notes payable-securitized pools and subordinated
notes. The average indebtedness is based on daily balances. Average cost of
borrowed funds represents interest expense as a percentage of average
indebtedness.
(3) Gross portfolio yield represents income from finance contract
portfolio as a percentage of average finance receivables-owned. Net
portfolio yield represents net interest income as a percentage of average
finance receivables-owned.
(4) Net interest spread represents the gross portfolio yield less the
average cost of borrowed funds.
</FN>
</TABLE>
Three Months Ended September 30, 1996 Compared to the Three Months Ended
September 30, 1995
Revenues
The Company purchased 10,830 finance contracts having an aggregate initial
principal amount of $129.9 million in the three months ended September 30,
1996, increases of 83.3% and 120.8%, respectively, from the 5,907 finance
contracts having an aggregate initial principal amount of $58.9 million
purchased in the three months ended September 30, 1995.
Interest and other income from finance contracts-owned increased $7.2 million,
or 68.1%, to $17.8 million in the three months ended September 30, 1996 from
$10.6 million in the three months ended September 30, 1995. The growth in
income from the finance contract portfolio resulted from an increase in the
number of finance contracts purchased by Dealer Service Centers in operation
at September 30, 1995, as well as the purchase of finance contracts by new
Dealer Service Centers opened after September 30, 1995.
Average net finance receivables-owned increased $145.1 million, or 78.6%, to
$329.7 million in the three months ended September 30, 1996 from $184.6
million in the three months ended September 30, 1995. Income from the owned
finance contract portfolio as a percentage of average net finance receivables
("gross portfolio yield") decreased to 21.6% in the three months ended
September 30, 1996 from 23.0% in the three months ended September 30, 1995.
The decrease in the gross portfolio yield was primarily attributable to
general competition in the marketplace and the purchase of a higher percentage
of finance contracts covering later model automobiles, which generally have a
lower interest rate.
The Company may experience further reductions in its gross portfolio yield and
decreases in interest income from finance contracts. However, the increases
in the Company's total revenues attributable to increases in the volume of
finance contracts purchased, securitization and sales of finance receivables,
and related servicing activities are expected to offset decreases in interest
income attributable to decreases in the Company's portfolio yield.
For the three months ended September 30, 1996, the Company recognized a $6.8
million gain on sale of receivables resulting from the sale of finance
receivables to the First Merchants Owners Trust 1996-B (the "Trust 1996-B") in
September 1996 and the issuance to investors of $117.5 million of automobile
receivable-backed notes and certificates (together the "Securities") of Trust
1996-B. Because the Company may choose to structure future issuances of
automobile receivable-backed securities in a manner which will result in the
recognition of gains on the sale of receivables in some securitizations and
the issuance of debt in others, the amount and timing of such future
transactions could impact the Company's net earnings in any given financial
reporting period. No gain on sale of finance receivables was recorded for the
three months ended September 30, 1995. See "Liquidity and Capital Resources."
Servicing fee income represents the Company's base servicing fee on the
finance receivables sold to Trust 1996-B, First Merchants Grantor Trust 1996-1
(the"Trust 1996-1") and First Merchants Grantor 1996-2 (the "Trust 1996-2")
together known as (the "Trusts"), as well as amortization of the excess
servicing receivable. Servicing fee income was $1.6 million for the three
months ended September 30, 1996. No servicing fee income was recorded for the
three months ended September 30, 1995.
Expenses
Interest expense increased $2.3 million, or 73.1%, to $5.4 million in the
three months ended September 30, 1996 from $3.1 million in the three months
ended September 30, 1995. The increase in interest expense resulted primarily
from an increase in borrowings under the senior revolving credit facility,
(the "Senior Revolving Credit Facility"), and proceeds from the issuance of
notes payable - securitized pools. Such increased borrowings were used to
fund the growth of the Company's finance contract portfolio. Average
indebtedness, including borrowings under the Senior Revolving Credit Facility,
notes payable-securitized pools and the Subordinated Reset Notes, increased
$133.4 million, or 94.4%, to $274.7 million in the three months ended
September 30, 1996, from $141.3 million in the three months ended September
30, 1995. Interest expense, including the amortization of fees, as a
percentage of average indebtedness ("average cost of borrowed funds") was 7.8%
in the three months ended September 30, 1996, compared to 8.8% in the three
months ended September 30, 1995.
For the three months ended September 30, 1996, the provision for credit
losses increased $3.8 million to $4.3 million from $0.5 million charged
against earnings in the three months ended September 30, 1995. For the three
months ended September 30, 1996 and 1995, discounts as a percentage of the
principal amount financed were 3.0% and 6.3%, respectively. Non-refundable
discounts collected from dealers are supplemented by the provision for credit
losses and, are used to absorb future credit losses. The declining discounts
combined with a 120.8% increase in the initial principal amount financed were
factors in determining the increase in the provision for credit losses. See
"Credit Loss Experience."
Operating expenses increased $6.8 million, or 160.3%, to $11.1 million in the
three months ended September 30, 1996 from $4.3 million in the three months
ended September 30, 1995. Although operating expenses increased during the
three months ended September 30, 1996, the Company's finance contract
portfolio grew at a faster rate than the rate of increase in operating
expenses. As a result, operating expenses as a percentage of average finance
receivables-serviced decreased to 8.4% in the three months ended September 30,
1996 from 9.3% in the three months ended September 30, 1995.
Employee compensation and related costs, such as group insurance and payroll
taxes, represented 59.8% and 64.6% of total operating expenses in the three
months ended September 30, 1996 and 1995, respectively. Employee compensation
expense increased $3.9 million, or 140.1%, to $6.7 million in the three months
ended September 30, 1996 from $2.8 million in the three months ended September
30, 1995. Both employee compensation and total operating expenses increased
due to expanding operations and growth in the serviced finance receivable
portfolio.
Income Taxes
Income taxes were recorded at an effective rate of 39.0% and 38.0% in the
three months ended September 30, 1996 and 1995, respectively.
Net Earnings
Net earnings increased $1.6 million, or 96.7%, to $3.3 million in the three
months ended September 30, 1996 from $1.7 million in the three months ended
September 30, 1995. The increase in net earnings is directly attributable to
the growth in the finance contract portfolio and related factors discussed
above.
Nine Months Ended September 30, 1996 Compared to the Nine Months Ended
September 30, 1995
Revenues
The Company purchased 34,788 finance contracts having an aggregate initial
principal amount of $395.3 million in the nine months ended September 30,
1996, increases of 120.4% and 150.5%, respectively, from the 15,786 finance
contracts having an aggregate initial principal amount of $157.8 million
purchased in the nine months ended September 30, 1995.
Interest and other income from finance contracts-owned increased $28.7
million, or 112.3%, to $54.3 million in the nine months ended September 30,
1996, from $25.6 million in the nine months ended September 30, 1995. The
growth in income from the finance contract portfolio resulted from an increase
in the number of finance contracts purchased by Dealer Service Centers in
operation at September 30, 1995, as well as the purchase of finance contracts
by new Dealer Service Centers opened after September 30, 1995.
Average net finance receivables-owned increased $175.2 million, or 119.2%, to
$322.1 million in the nine months ended September 30, 1996 from $146.9 million
in the nine months ended September 30, 1995. The gross portfolio yield
decreased to 22.5% in the nine months ended September 30, 1996, from 23.1% in
the nine months ended September 30, 1995. The decrease in the gross portfolio
yield was primarily attributable to general competition in the marketplace and
the purchase of a higher percentage of finance contracts covering later model
automobiles, which generally have a lower interest rate.
For the nine months ended September 30, 1996, the Company recognized $14.9
million in gains on sales of receivables resulting from the sale of finance
receivables to the Trusts in March 1996, June 1996, and September 1996, and
the issuance to investors of $263.7 million of automobile receivable-backed
Securities of the Trusts. No gain on sale of finance receivables was recorded
for the nine months ended September 30, 1995. See "Liquidity and Capital
Resources."
Servicing fee income represents the Company's base servicing fee on the
finance receivables sold to the Trusts and amortization of the excess
servicing fee receivable. Servicing fee income totaled $2.4 million for the
nine months ended September 30, 1996. No servicing fee income was recorded
for the nine months ended September 30, 1995.
Expenses
Interest expense increased $7.5 million, or 101.4%, to $15.0 million in the
nine months ended September 30, 1996 from $7.5 million in the nine months
ended September 30, 1995. Average indebtedness, including borrowings under
the Senior Revolving Credit Facility, notes payable-securitized pools and
Subordinated Reset Notes, increased $143.9 million, or 133.6%, to $251.6
million in the nine months ended September 30, 1996 from $107.7 million in the
nine months ended September 30, 1995. The average cost of borrowed funds was
8.0% in the nine months ended September 30, 1996, compared to 9.2% in the nine
months ended September 30, 1995. See "Liquidity and Capital Resources."
For the nine months ended September 30, 1996, the provision for credit losses
increased $11.3 million to $12.0 million from $0.7 million charged against
earnings in the nine months ended September 30, 1995. For the nine months
ended September 30, 1996 and 1995, discounts as a percentage of the principal
amount financed were 3.9% and 6.8%, respectively. Non-refundable discounts
collected from dealers are supplemented by the provision for credit losses and
are used to absorb future credit losses. See "Credit Loss Experience."
Operating expenses increased $18.3 million, or 171.8%, to $29.0 million in the
nine months ended September 30, 1996 from $10.7 million in the nine months
ended September 30, 1995. Operating expenses in the nine months ended
September 30, 1996 include a $600,000 charge for costs associated with
consolidating thirteen of the smaller Dealer Service Centers to improve
operating efficiencies. Operating expenses as a percentage of average finance
receivables-serviced decreased to 8.9% in the nine months ended September 30,
1996 from 9.7% in the nine months ended September 30, 1995.
Employee compensation and related costs, such as group insurance and payroll
taxes, represented 60.1% and 63.5% of total operating expenses in the nine
months ended September 30, 1996 and 1995,
respectively. Employee compensation expense increased $10.6 million, or
157.4%, to $17.4 million in the nine months ended September 30, 1996, from
$6.8 million in the nine months ended September 30, 1995. Both employee
compensation and total operating expenses increased due to expanding
operations and growth in the serviced finance receivable portfolio.
Income Taxes
Income taxes were recorded at an effective rate of 39.0% and 38.0% in the nine
months ended September 30, 1996 and 1995, respectively.
Net Earnings
Net earnings increased $5.3 million, or 125.9%, to $9.5 million in the nine
months ended September 30, 1996 from $4.2 million in the nine months ended
September 30, 1995. The increase in net earnings is directly attributable to
the growth in the finance contract portfolio and related factors discussed
above.
Credit Loss Experience
The Company maintains an allowance for credit losses at a level management
believes adequate to absorb potential losses in the owned finance contract
portfolio. Management evaluates the adequacy of the allowance for credit
losses by reviewing credit loss experience, delinquencies, the value of the
underlying collateral, the level of the finance contract portfolio and general
economic conditions and trends. An account is charged off at the earliest of
the time the account's collateral is repossessed, the account is 91 or more
days past due, or the account is otherwise deemed to be uncollectible.
The allowance for credit losses is initially established through an allocation
of contract acquisition discounts based upon management's estimate of credit
losses. A provision for credit losses is charged against earnings in addition
to the contract acquisition discounts allocated to the allowance for credit
losses.
The following table summarizes data relating to the Company's charge-off
experience. The charge-off experience includes estimated losses to be
incurred upon the sale of repossessed collateral.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
------------------ -----------------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Average net finance receivables
- -serviced $526,709 $184,595 $431,907 $146,937
Net charge-offs serviced 7,691 2,455 18,895 5,506
Net charge-offs as a percentage
of average finance receivables
- -serviced (annualized) 5.8% 5.3% 5.8% 5.0%
<CAPTION>
The following table summarizes data relating to the Company's allowance for
credit losses.
September 30, December 31,
As of: 1996 1995
---------- -----------
(Dollars in thousands)
<C> <C> <C>
Net finance receivables- owned $ 284,571 $251,908
Allowance for credit losses 17,096 14,301
Allowance for credit losses as a
percentage of net finance receivables 6.0% 5.7%
</TABLE>
Net finance receivables held for sale totaled $32.7 million and $32.3 million,
net of contract acquisition discounts of $0.9 and $0.4 million at September
30, 1996, and December 31, 1995, respectively. Net finance receivables held
for sale are not included above as they are recorded at the lower of aggregate
cost or market value.
At September 30, 1996, the excess servicing receivable is reported net of
$25.0 million allowance for estimated credit losses on finance receivables
sold to the Trusts. There was no excess servicing receivable at December 31,
1995.
Delinquency Experience
A payment is considered past due if the borrower fails to make any full
payment on or before the due date as specified by the terms of the finance
contract. The Company typically contacts borrowers whose payments are not
received by the due date within two days after such due date. The following
table summarizes the Company's delinquency experience for accounts with
payments 31 or more days past due on both a number and dollar basis for its
serviced finance contract portfolio as of September 30, 1996, and December 31,
1995.
<TABLE>
<CAPTION>
The delinquency experience data exclude contracts where the collateral has
been repossessed.
As of:
September 30, December 31,
1996 1995
---------------------------------------------
Number of Number of
Dollars Contracts Dollars Contracts
---------------------------------------------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Net finance receivables
- -serviced (1) $565,240 56,736 $284,173 31,082
Past due accounts:
31 - 60 days (2) $ 9,249 848 $ 5,163 595
61 days or more (3) 10,041 1,056 2,021 251
-----------------------------------------------
Total $ 19,290 1,904 $ 7,184 846
===============================================
Accounts with payments 31 or more days
more past due as a percentage of total
finance receivables and number of
contracts-serviced (4) 3.4% 3.4% 2.5% 2.7%
===============================================
<FN>
- ------------------------
(1) Includes finance receivables sold or held for sale, net
(2) Customers in this category have missed two consecutive monthly payments.
(3) Customers in this category have missed three or more consecutive monthly
payments.
(4) Customers in this category have missed two or more consecutive monthly
payments.
</FN>
</TABLE>
Repossessed Collateral
The Company commences repossession procedures against the underlying
collateral when it determines that collection efforts are likely to be
unsuccessful. Repossession generally occurs before a borrower misses more
than two consecutive monthly payments. In such cases, the net amount due
under the finance contract is reduced to the estimated fair value of the
collateral, less the cost of disposition, and this reduction is reported as a
credit loss. Repossessed collateral included 815 and 505 automobiles at
September 30, 1996, and December 31,1995, respectively. At September 30,
1996, the 815 automobiles had been held as repossessed collateral for an
average of 37 days.
Liquidity and Capital Resources
Since inception, the Company has funded its operations, the regional Dealer
Service Center openings and finance contract portfolio growth through the
following: funds provided from principal and interest payments received under
finance contracts, borrowings under the Senior Revolving Credit Facility,
proceeds from the issuance of subordinated debt and securitization of finance
receivables and from the sale of shares of common stock. Net cash flows
provided by operating activities were $(4.0) million,
$1.0 million, $10.3 million and $7.7 million in the three months ended and
nine months ended September 30, 1996 and 1995, respectively. The cash flows
from operating activities primarily resulted from increases in net earnings
and the net change in the amount of contracts purchased for resale.
Net cash flows from investing activities were $20.8 million, $(38.7) million,
$(60.4) million and $(105.4) in the three months ended and nine months ended
September 30, 1996 and 1995 respectively. These cash flows were primarily
attributable to the growth in the owned finance contract portfolio however,
during the three months ended September 30, 1996, substantially all finance
contracts were purchased for resale.
Net cash provided by financing activities was primarily used to support
finance contract portfolio growth. Financing activities for the three months
ended and nine months ended September 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
---------------------------------------
(In Thousands)
<S> <C> <C> <C> <C>
Proceeds from issuance of
subordinated debt, net $ - - - $13,530
Proceeds from issuance of notes
payable - securitized pools - 124,989 -
Repayment of notes payable-securitized
pools (19,990) - (43,321) -
Net increase (decrease) in borrowings
under senior revolving credit
facility 3,300 37,750 (30,875) 84,125
Other - (24) (26)
----------------------------------------
Net cash flows from financing
activities $ (16,690) $37,750 $50,769 $97,629
=========================================
</TABLE>
The Company maintains a $205.0 million Senior Revolving Credit Facility with a
group of nine banks. The Senior Revolving Credit Facility expires June 30,
1997, and borrowings are secured by certain assets of the Company. The
Company has options to borrow at either (i) the reference prime rate or (ii)
LIBOR plus 1.60% per annum for maturities of one, two, three, or six months.
On May 1, 1996, the Company amended the loan agreement relating to the Senior
Revolving Credit Facility to provide for an additional temporary credit
facility (the "Temporary Credit Facility") in the amount of $25.0 million
which expired on November 1, 1996 and bears interest at the reference prime
rate. Also, the Company is a party to an interest rate protection agreement
aggregating a notional amount of $15.0 million, which limits the exposure to
increase in borrowing costs.
On September 26, 1996, the Company completed a sale of finance receivables to
Trust 1996-B, and the issuance of $117.5 million of automobile receivables
backed certificates and notes, Series 1996-B. The proceeds that the Company
received were used to repay borrowings under the Senior Revolving Credit
Facility. Of these certificates and notes, $82.3 million have a floating
interest rate of 0.12% over one-month LIBOR, $30.5 million have a fixed
interest rate of 6.80% and the remaining $4.7 million have a fixed interest
rate of 7.00%. FSA issued a financial guaranty insurance policy for the
benefit of the investors.
In an effort to reduce the Company's exposure to potential increases in
interest rates, the Company has
entered into an interest rate swap agreement on September 26, 1996, with a
notional amount of $82.3 million whereby the Company pays a fixed rate of
6.30% and receives a variable rate of one-month LIBOR. The notional amount
declines, as specified in the swap agreement, at each month-end through
March, 1999. At September 30,1996, the notional amount was $82.3 million, and
the one month LIBOR was 5.41%.
The Senior Revolving Credit Facility, the indenture relating to the
Subordinated Reset Notes due 2005, and the indentures relating to the notes
payable-securitized pools contain several financial and other covenants,
including interest coverage requirements, leverage tests, delinquency, credit
losses tests, a dividend prohibition and minimum net worth requirements. The
Company believes these covenants will not materially limit its business or
expansion strategy. The Company was in compliance with all such covenants at
September 30, 1996.
On November 1, 1996, the Company received approximately $49.4 million from the
issuance of Subordinated Reset Notes, (the "1996 Subordinated Reset Notes")
after deducting the underwriting discount and offering expenses. The proceeds
were used to repay borrowings under the Senior Revolving Credit Facility.
Interest on the 1996 Subordinated Reset Notes is payable quarterly at an
interest rate of 9.50%, commencing December 15, 1996, until December 15,
2001. The interest rate will reset at the Company's option on December 15,
2001 to a rate, and for a term of one, two, three or five years, determined by
the Company and will reset thereafter, at the Company's option, upon the date
of expiration of each such new interest period prior to maturity on December
15, 2006. Holders of the 1996 Subordinated Reset Notes have the option to
redeem all or any portion of the notes on December 15, 2001, or any subsequent
interest reset date.
Management believes that in order to meet its 1996 funding needs, the Company
will require additional capital resources to supplement its expected cash
flows from operations, the principal payments on finance contracts, and
anticipated borrowings under its Senior Revolving Credit Facility. The
Company is expecting to complete additional securitizations of finance
receivables in 1996.
Impact of Inflation and Changing Prices
Although the Company does not believe that inflation directly has a material
adverse effect on its financial condition or results of operations, increases
in the inflation rate generally are associated with increased interest rates.
Because the Company borrows a portion of its funds on a floating rate basis
and purchases finance contracts bearing a fixed interest rate, increased costs
of borrowed funds could have a material adverse impact on the Company's
profitability. Inflation also can affect the Company's operating expenses.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Litigation
On August 27, 1996, a purported class action was filed against an automobile
dealer and the Company in the US District Court for the Northern
District of Illinois entitled Hoffman V. Grossinger Motor Corp. and First
Merchants Acceptance Corporation. The complaint, as amended on September 27,
1996 (the "Complaint"), alleges violations of certain Federal and Illinois
consumer protection statutes and RICO and seeks unspecified damages. The
Company believes that certain material allegations in the Complaint are
incorrect and that it has meritorious defenses to the claims made in the
Complaint. The Company intends to vigorously defend this action.
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - Not Applicable
Item 6. (a) Exhibits - See exhibit index following the signature page.
(b) Reports on Form 8-K - On September 26, 1996 the Company
filed an 8-K regarding an $117.5 million securitization.
The following items were reported:
Item 2. Acquisition or Disposition of
Assets
Item 7. Financial Statements and
Exhibits
<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.
FIRST MERCHANTS ACCEPTANCE CORPORATION
By: /s/ Mitchell C. Kahn
Its: President and Chief Executive
Officer
By: /s/ Thomas R. Ehmann
Its: Vice President and Chief Financial
Officer
Date: November 14, 1996
<PAGE>
INDEX OF EXHIBITS
Exhibit No. Description
10.1Amended and Restated Trust Agreement, dated as of September 1, 1996,
between First Merchants Automobile Receivables Corporation II, as Depositor
and Chase Manhattan Bank Delaware as Owner Trustee, filed with the Commission
as Exhibit 1 to the Company's 8-K dated September 26, 1996, is incorporated
herein by reference.
10.2Sales and Servicing Agreement dated as of September 1, 1996 among First
Merchants Auto Trust 1996-B, as Issuer, First Merchants Auto Receivable
Corporation II, as Seller, and First Merchants Acceptance Corporation, as
Servicer, and Harris Trust and Savings Bank, as Indenture Trustee, Collateral
Agent and Backup Servicer, filed with the Commission as Exhibit 2 to the
Company's 8-K dated September 26, 1996, is incorporated herein by
reference.
10.3Receivables Purchase Agreement, dated as of September 1, 1996, between
First Merchants Acceptance Corporation, and First Merchants Auto Receivables
Corporation II filed with the Commission as Exhibit 3 to the Company's 8-K
dated September 26, 1996, is incorporated herein by reference.
10.4Indenture dated as of September 1,1996 between First Merchants Acceptance
Auto Trust 1996-B and Harris Trust and Savings Bank, as Indenture Trustee
filed with the Commission as Exhibit 4 to the Company's 8-K dated September
26, 1996, is incorporated herein by reference.
11. Statement Regarding Computation of Per Share Earnings filed
herewith.
27. Financial Data Schedule filed herewith.
<PAGE>
Exhibit 11
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
(Unaudited)
(In Thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
---------------------------------------
Average number of common
shares outstanding 6,526 4,142 6,526 4,142
Common equivalent
shares outstanding:
Warrants 124 - 124
Stock options 201 223 217 205
----- ----- ------ -----
Total common and common
equivalent shares outstanding 6,727 4,489 6,743 4,471
===== ===== ===== =====
Net earnings $ 3,298 $ 1,677 9,510 4,210
====== ======= ======= ======
Net earnings per share $ 0.49 0.37 1.41 0.94
======= ======= ======= ======
