FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of a Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month(s) of: o
NEWCOURT CREDIT GROUP INC.
207 Queens Quay West
Suite 700
Toronto, Ontario Canada
M5J 1A7
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F / /_____ Form 40-F /X/
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.]
Yes / / _______ No /X/
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b)]
82-_________________________
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.
Date: August 6, 1999
NEWCOURT CREDIT GROUP INC.
/s/ Scott J. Moore
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By: Scott J. Moore
Executive Vice President,
Local and General Counsel
NEWCOURT
NEWS RELEASE
FOR IMMEDIATE RELEASE
Trading Symbol: NCT Media Contact: RICK PERKINS
(416) 507-5437
Exchange Listing: TORONTO Investor Contact: GEOFF ICHII
MONTREAL (416) 507-6151
NEW YORK
NEWCOURT REPORTS SECOND QUARTER EARNINGS
TORONTO, AUGUST 4, 1999 - Newcourt Credit Group today reported net income
of US$97.7 million for the six months ended June 30, 1999, compared to
US$72.3 million reported for the same period last year. Earnings for the
second quarter amounted to US$61.7 million, a 37% increase compared to
US$44.9 million in net income reported in the second quarter of 1998.
Earnings per share on a fully diluted basis were US$0.66 for the first six
months of 1999, compared to US$0.52 during the same period last year.
Earnings per share on a fully diluted basis for the quarter were US$0.42.
During the quarter the Company also realized a one time pre-tax gain of
US$34.3 million (US$15.5 million after tax) from the sale of its automobile
fleet leasing businesses in Canada and the UK. This sale reduced goodwill
by US$16.9 million.
"For the past four months, management's attention has been focused on
moving forward with our planned alliance with The CIT Group. These
quarterly results, while adversely affected by this important but
time-consuming initiative, are indicative of the resilience and strength
that we have built into Newcourt's commercial and corporate loan
origination franchise," noted Steven K. Hudson, Newcourt's CEO.
Newcourt originated new asset-based financings of US$4.5 billion during the
second quarter of 1999, an increase of 18% from US$3.8 billion reported
during the same period last year. Of the US$4.5 billion in new financings,
US$3.6 billion were generated from Newcourt Financial's activities in the
commercial finance market. The remaining volume of US$0.9 billion was
originated by Newcourt Capital in the corporate finance market.
As a result of continued growth in the Company's loan originations and
increasing use of on-balance sheet funding, tangible leverage increased to
6.2:1 as at June 30, 1999 compared to 5.2:1 as at June 30, 1998.
Total asset finance income for the six months ending June 30, 1999 rose 22%
to US$532.9 million from US$436.8 million during the same period last year.
Operating costs for the period, excluding depreciation and amortization,
amounted to US$333.7 million compared to US$278.7 million for the same
period last year. Expressed as a percentage of average owned and managed
assets, operating expenses on an annualized basis, excluding depreciation
and amortization, were 2.7% as at June 30, 1999, compared to 2.7% at June
30, 1998.
Asset quality is reflected in the Company's arrears and net losses
expressed as percentages of owned assets of 1.5% and 0.74% respectively.
The Board of Directors following the close of business on August 3, 1999,
approved a quarterly dividend of Cdn$0.06 per share for payment on August
31, 1999 to shareholders of record as of August 18, 1999.
Newcourt Credit Group is one of the world's leading sources of asset-based
financing serving the corporate, commercial and institutional markets with
owned and managed assets of US$24.6 billion and a global capability in 26
countries.
This report may contain forward looking statements about the operations,
objectives and strategies of Newcourt. These statements are subject to
risks and uncertainties. Actual results may differ materially due to a
variety of factors including competition, technological change, issues
relating to Year 2000 readiness, the global capital markets and general
economic conditions in the U.S., Canada, or internationally. These and
other factors should be considered carefully and readers should not place
undue reliance on Newcourt's forward looking statements.
NEWCOURT CREDIT GROUP INC.
SUMMARY OF QUARTERLY FINANCIAL STATISTICS
FOR THE PERIOD ENDED JUNE 30, 1999
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(IN THOUSANDS OF UNITED STATES DOLLARS, UNLESS OTHERWISE STATED)
I. BASIC EARNINGS PER SHARE
Average shares outstanding during the period
Number of common shares as at January 1, 1999 148,312,634
Shares issued during the year: June 30, 1999
Shares issued 175,695
Days outstanding 46
Weighted average 44,251
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Weighted average of common shares as at June 30, 1999 148,356,885
Net income for the year to date $97,731
Basic earnings per share $0.66
II. COMPARATIVE EARNINGS PER SHARE SUMMARY
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------- -------
1999 1998 1999 1998
---- ---- ---- ----
Basic $0.42 $0.32 $0.66 $0.52
Fully diluted 0.42 0.32 0.66 0.52
Cash basis 0.50 0.43 0.82 0.74
Dividends per share(C$) 0.06 0.04 0.12 0.08
III. BALANCE SHEET HIGHLIGHTS ($ MILLIONS)
AS AT AS AT
JUNE 30, 1999 MARCH 31, 1999
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Owned and managed assets 24,571.8 25,144
Tangible equity 1,850 1,773
Tangible leverage 6.2:1 6.6:1
IV. INCOME STATEMENT HIGHLIGHTS ($000)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------- -------
1999 1998 1999 1998
---- ---- ---- ----
Net income 61,674 44,945 97,731 72,256
New originations 4,476 3,809 9,376 6,732
ORIGINATIONS
U.S. 68.4% 70.4%
Canada 18.2% 17.2%
U.K. / Europe 9.3% 8.7%
Asia Pacific 1.2% 1.3%
South Pacific 1.7% 1.4%
Latin America 1.2% 1.0%
---- ----
100.0% 100%
V. MARGIN ANALYSIS SUMMARY ($000)
(I) SECURITIZATION THREE MONTHS ENDED
JUNE 30 MARCH 31
1999 1999
---- ----
Securitization gains 51,799 32,437
Assets securitized 1,702,938 1,040,174
Securitization margin 3.04% 3.12%
(II) SYNDICATION THREE MONTHS ENDED
JUNE 30 MARCH 31
1999 1999
------- ----
Syndication fees 23,025(1) 16,820
Assets syndicated 872,277 1,038,952
Syndication margin 2.64% 1.62%
Note (1) excluding income from sale of equity interests
(III) NET FINANCE INCOME
Finance assets held for investment 9,418,618 8,900,429
Operating leases held for investment and sale 2,161,323 2,265,632
Finance assets held for sale 1,563,935 2,061,763
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Total owned assets 13,143,876 13,227,824
Average total owned assets 13,185,850 12,777,906
Net finance and rental income 112,252 94,676
Net finance income margin 3.41% 2.96%
Interest expense 207,598 199,944
OPEX / Owned and managed assets 2.7% 2.6%
NEWCOURT CREDIT GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
[in thousands of United States dollars]
JUNE 30, DECEMBER 31,
1999 1998
$ $
ASSETS
Cash 310,774 998,807
Finance assets held for investment 9,418,618 8,611,705
Equipment under operating lease 2,161,323 2,173,514
Finance assets held for sale 1,563,935 1,542,769
Investment in affiliated companies 253,425 194,860
Accounts receivable, prepaids and other 378,515 310,948
Property and equipment, net 120,832 93,874
Goodwill 1,252,337 1,280,036
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Future income tax asset 171,696 146,444
TOTAL ASSETS 15,631,455 15,352,957
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued liabilities 682,361 727,468
Debt 11,846,438 11,607,184
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TOTAL LIABILITIES 12,528,799 12,334,652
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SHAREHOLDERS' EQUITY
Share capital 2,791,553 2,792,861
Retained earnings 311,103 225,444
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TOTAL SHAREHOLDERS' EQUITY 3,102,656 3,018,305
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 15,631,455 15,352,957
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NEWCOURT CREDIT GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
[in thousands of United States dollars, except for per share amounts]
SIX MONTHS ENDED
JUNE 30, JUNE 30,
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1999 1998
$ $
ASSET FINANCE INCOME
Net finance and rental income 206,928 241,551
Securitization gains 84,236 111,659
Syndication fees 69,932 16,090
Management fees and other income 171,818 67,526
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TOTAL ASSET FINANCE INCOME 532,914 436,826
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Salaries and wages 182,202 141,869
Operating and administrative 151,534 136,833
Depreciation and goodwill amortization 36,293 37,752
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OPERATING INCOME BEFORE INCOME TAXES 162,885 120,372
Provision for income taxes 65,154 48,116
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NET INCOME FOR THE PERIOD 97,731 72,256
Retained earnings, beginning of period 225,444 81,240
Dividends paid on common shares (12,072) (7,194)
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Other - (135)
RETAINED EARNINGS, END OF PERIOD 311,103 146,167
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EARNINGS PER COMMON SHARE:
Basic $0.66 $0.52
Fully diluted $0.66 $0.52
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