<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 18, 2000
WFS FINANCIAL
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation)
33-93068 33-0291646
(Commission File No.) (IRS Employer Identification No.)
23 PASTEUR ROAD
IRVINE, CA 92718
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (949) 727-1002
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ITEM 5. OTHER EVENTS
The financial schedules included in this filing are tables presenting pro forma
portfolio-basis statements of income. These statements present the company's
results under the assumption that all its securitization transactions are
treated as secured financings rather than sales. The company believes that such
a presentation is an important performance measure of its operations. If treated
as secured financings, no gain on sale or subsequent contractual servicing and
retained interest income is recognized. Instead, the earnings of the contracts
in the trusts and related financing costs are reflected over the life of the
underlying pool of contracts. The company refers to these pro forma results as
"portfolio basis" statements of income since the contracts would have remained
in the contract portfolio on balance sheet if accounted for as secured
financings. The company monitors the periodic portfolio basis earnings of its
serviced contract portfolio and believes that these portfolio basis statements
assist in better understanding its business.
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WFS FINANCIAL INC AND SUBSIDIARIES
PORTFOLIO BASIS STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
(Dollars in thousands, per share amounts)
<S> <C> <C> <C> <C>
Interest income $194,881 $155,029 $375,351 $300,775
Interest expense 97,720 71,796 184,596 139,466
-------- -------- -------- --------
Net interest income 97,161 83,233 190,755 161,309
Net chargeoffs (1) 19,760 18,367 47,226 48,351
Provision for growth (2) 7,424 4,337 12,589 5,736
-------- -------- -------- --------
Provision for credit losses 27,184 22,704 59,815 54,087
Net interest income after provision
for credit losses 69,977 60,529 130,940 107,222
Other income 15,068 10,886 29,760 20,905
Operating expenses 45,496 42,982 94,608 88,150
-------- -------- -------- --------
Income before income tax 39,549 28,433 66,092 39,977
Income tax (3) 15,815 11,988 26,480 16,839
-------- -------- -------- --------
Portfolio basis net income $ 23,734 $ 16,445 $ 39,612 $ 23,138
======== ======== ======== ========
Portfolio basis net income
per common share - diluted $ 0.83 $ 0.64 $ 1.41 $ 0.90
======== ======== ======== ========
</TABLE>
(1) Represents actual chargeoffs incurred during the period.
(2) Represents additional allowance for credit losses the Company would set
aside due to an increase in the serviced contract portfolio.
(3) Such tax effect is based upon the Company's tax rate for the respective
period.
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WFS FINANCIAL INC AND SUBSIDIARIES
PORTFOLIO BASIS YIELD TABLE
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ -------------------------------
2000 1999 2000 1999
------------ ----------- ----------- -------------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Interest income 13.3% 13.3% 13.3% 13.2%
Interest expense 6.7% 6.1% 6.5% 6.1%
------------ ----------- ----------- -------------
Net interest income 6.6% 7.2% 6.8% 7.1%
Net chargeoffs (1) 1.4% 1.6% 1.7% 2.1%
Provision for growth (2) 0.5% 0.4% 0.4% 0.3%
------------ ----------- ----------- -------------
Provision for credit losses 1.9% 2.0% 2.1% 2.4%
Net interest income after provision
------------ ----------- ----------- -------------
for credit losses 4.7% 5.2% 4.7% 4.7%
Other income 1.0% 0.9% 1.1% 0.9%
Operating costs 3.1% 3.7% 3.4% 3.9%
------------ ----------- ----------- -------------
Income before income tax 2.6% 2.4% 2.4% 1.7%
Income tax (3) 1.1% 1.0% 0.9% 0.7%
------------ ----------- ----------- -------------
Portfolio basis net income 1.5% 1.4% 1.5% 1.0%
============ =========== =========== =============
Average serviced contracts $ 5,840,081 $ 4,674,214 $ 5,658,044 $ 4,560,999
============ =========== =========== =============
</TABLE>
(1) Represents actual chargeoffs incurred during the period.
(2) Represents additional allowance for credit losses the Company would set
aside due to an increase in the serviced contract portfolio.
(3) Such tax effect is based upon the Company's marginal tax rate for the
respective period.
