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HELLER FINANCIAL, INC. REPORTS INCREASES IN 1992 NET INCOME

 CHICAGO, Jan. 22 /PRNewswire/ -- Heller Financial, Inc. reported a 48 percent increase in full year 1992 net income available for common stock, Michael S. Blum, chairman and chief executive officer, announced today.
 We are encouraged by growth in earnings and by ongoing initiatives to
strengthen our financial profile,'' said Blum. Our improved financial strength is the result of actions to improve liquidity and capital resources, strengthen reserves on receivables and improve productivity and expense control measures. In addition, we made significant progress in our longer-term effort to diversify earnings sources and portfolio.''
 Heller Financial, Inc.'s (the company'') 1992 net income available for common stock of $85.3 million compares to $57.6 million for 1991. The earnings growth resulted from the adoption of a new accounting standard for income taxes, and increases in net interest income, fees and other operating revenues. This level of earnings was accomplished while the company aggressively resolved certain problem accounts, strengthened its balance sheet and increased spending for new business initiatives. Earnings include 79 percent of Heller International Group, Inc., which was contributed to the company by Heller International Corp. on Dec. 23, 1992 in a pooling of interests. Therefore, 1991 results have been restated on a comparable basis.
 For 1992, net interest income of $338.7 million was up 4 percent over last year. Other revenue sources increased 12 percent as a result of improved earnings from unconsolidated joint ventures and continued gains on sales of capital appreciation rights and marketable equity securities.
 Operating expenses remained relatively flat for the year, as expense control improvements were used to find the company's increased spending for new business initiatives.
 During 1992, the provision for losses increased as the company strengthened the allowance for losses on receivables to 3.0 percent from 2.3 percent at the end of 1991 and addressed the risks associated with certain troubled credits in the corporate financing and real estate portfolios.
 As of Jan. 1, 1992, the company adopted the provisions of SFAS 109, Accounting For Income Taxes, which requires the company to record deferred tax benefits for deductible temporary differences if it is more likely than not that these benefits will be realized and also requires the company to report income tax expense as if it were a separate taxpayer. The cumulative effect of this change resulted in recognition of $41.1 million of previously unrecognized tax benefits.
 The ratio of nonearning assets to total lending assets remained relatively flat at 7.2 percent at year end 1992, despite significant account resolutions
and write offs during the year. While we spent considerable resources to resolve a substantial number of accounts in the portfolio in 1992, we still
have not met our goals,'' said Blum. Our overriding priority in 1993 is to lower nonearning assets and reduce credit quality costs.''
 We believe 1992 was significant in that Heller was able to strengthen its balance sheet by reducing leverage to 5.4X at year end 1992, increasing
reserves and decreasing our reliance on commercial paper,'' added Blum. As important, we also diversified our earnings stream through both the consolidation of our international operations and the acquisition and start-up of a variety of new businesses.''
 Heller Financial, Inc. is the operating company of Heller International Corp., the worldwide commercial financial services organization which is a wholly-owned subsidiary of The Fuji Bank, Limited, one of the world's largest banks. Heller Financial, Inc. provides domestic clients with leveraged financing, commercial real estate financing, factoring and working capital loans, equipment financing and leasing, and investment services. The company also operates in 18 countries, primarily in Europe and Asia, through joint venture and wholly-owned companies that specialize in factoring, asset- based finance, acquisition finance, leasing, vendor finance programs and trade finance.
 HELLER FINANCIAL, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (in millions)
 Periods Dec. 31 1992 1991
 Assets:
 Cash and cash equivalents $ 47 $ 61
 Receivables 7,420 7,116
 Less: Allowance for losses 221 167
 Net receivables 7,199 6,949
 Investments and other assets 706 519
 Total $7,952 $7,529
 Liabilities and stockholders' equity
 Senior debt
 Commercial paper and short-term
 borrowings $2,422 $2,797
 Notes and debentures 3,521 2,809
 Subordinated notes and debentures -- 88
 Junior Subordinated notes 225 231
 Total debt 6,168 5,925
 Credit balances of facturing clients 408 426
 Other payables and accruals 200 180
 Total liabilities 6,776 6,531
 Minority interest in equity of Heller
 International Group, Inc. 32 30
 Stockholder's equity
 NW Preferred Stock, Class B -- --
 Cumulative Convertible Preferred
 Stock, Series D 25 25
 Cumulative Perpetual Senior Preferred
 Stock, Series A 125 --
 Common stock, additional paid-in
 capital and retained earnings 994 943
 Total stockholders' equity 1,144 968
 Total $7,952 $7,529
 HELLER FINANCIAL, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (in millions)
 Year ended Dec. 31 1992 1991
 Interest income $634.2 $729.9
 Interest expense 295.5 405.5
 Net interest income 338.7 324.4
 Fees and other income 100.6 94.3
 Income of unconsolidated joint
 ventures 26.6 19.0
 Operating revenues 465.9 437.7
 Operating expenses 171.9 169.9
 Provision for losses 251.9 201.4
 Income before income taxes and
 cumulative effect of a change in
 accounting principle for income taxes 42.1 66.4
 Income tax provision (benefit) (5.0) 2.3
 Income before cumulative effect of a
 change in accounting principle for
 income taxes 47.1 64.1
 Cumulative effect of a change in
 accounting principle for income taxes 41.1 --
 Net income 88.2 64.1
 Preferred stock dividends 2.9 6.5
 Net income available for common stock $ 85.3 $ 57.6
 -0- 1/22/93
 /CONTACT: John Brooklier of Heller Financial, 312-441-6184/


CO: Heller Financial, Inc. ST: Illinois IN: FIN SU: ERN

TM -- NY080 -- 8145 01/22/93 19:11 EST
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Date:Jan 22, 1993
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