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: April 30, 1998
NEWCOURT CREDIT GROUP INC.
BCE Place, 181 Bay Street
Suite 3500, P.O. Box 827
Toronto, Ontario
Canada, M5J 2T3
[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: April 30, 1998
NEWCOURT CREDIT GROUP INC.
By: John P. Stevenson
Corporate Secretary
News Release
For Immediate Release
Trading Symbol: NCT Contact: John Sadler
Exchange Listings: Toronto Executive Vice President
Montreal Corporate Affairs
New York (416) 594-2400
Newcourt Credit Group reports 75% growth in first quarter earnings
Record results provide strong evidence of the substantial progress made on
integration
TORONTO, April 29, 1998 - Reinforcing the benefits of its recent
acquisition of AT&T Capital, Newcourt Credit Group today reported record
quarterly net income for the three months ended March 31, 1998 of $42.4
million representing a 75% increase over the combined $24.2 million in net
income reported separately for Newcourt and AT&T Capital during the same
period last year. Based on an average of 131,900,848 shares outstanding
during the period, the Company reported fully diluted earnings per share of
$0.32 (US$0.22) and cash earnings per share (earnings per share before
goodwill amortization) of $0.48 (US$0.34) per share.
Newcourt originated new asset-based financings of $4.54 billion (US$3.19
billion) during the first three months of 1998, up 55% from $2.9 billion
(US$2.1 billion) reported by the two companies for the same period last year.
Of the $4.54 billion in new financings, $3.68 billion (US$2.59 billion) were
generated from Newcourt Financial's activities in the commercial finance
market, while the remaining $.86 billion (US$.60 billion) in transactions
were closed by Newcourt Capital in the corporate finance market.
"Our business plan for this year of consolidation is based on a very simple
and clear objective - through the integration process, service to our customers
and performance for our stakeholders remains our top priority. These record
results are the strongest evidence yet that the potential of the whole is much
greater than the sum of the Newcourt and AT&T Capital parts," noted Steven
Hudson, Newcourt's CEO.
Total asset finance income for the three months ending March 31, 1998 rose
27% to $324.8 million (US$227.1 million) from $256.8 million (US$189.0
million) during the same period last year on a consolidated basis. Reflecting
a more balanced diversification of its funding sources, fee-based income
represented approximately 41% of the company's revenue mix, accounting
for $134.7 million of total asset finance income while net finance and rental
income of $190.1 million accounted for the remaining 59%.
As at March 31, 1998, the Company reported owned and managed finance
assets of $31.9 billion (US$22.4 billion) as compared with $30.7 billion
(US$21.4 billion) reported for the combined company as at December 31,
1997.
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Operating costs for the period, excluding goodwill amortization, amounted to
$229.9 million (US$161.6 million) compared to $214.8 million (US$155.6
million) for the same period last year on a consolidated basis. Expressed as a
percentage of owned and managed loans, operating expenses on an
annualized basis, excluding goodwill amortization, declined from 3.0% as at
December 31, 1997, to 2.8% as at March 31, 1998. Credit quality remained
above industry norms with arrears for the period amounting to 1.1%
expressed as a percentage of owned finance assets.
At a meeting of the Board of Directors held April 29, 1998, a quarterly
dividend of $.04 per share was approved for payment on May 29, 1998 to
shareholders of record as of
May 19, 1998.
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 $31.9 billion (US$22.4 billion) and a global
distribution capability in 24 countries.
Financial Highlights Three Months Ended
($,000, except share data) March 31
1998 1997<fn1>
Total asset finance income 324,764 48,665
Operating income 71,491 18,108
Net income 42,388 14,125
Earnings per share
Basic 0.32 0.23
Fully diluted 0.32 0.23
Cash basis 0.48 0.25
Dividends per share 0.04 0.035
Average shares outstanding 131,900,848 61,362,020
Total new asset financings 4,535,989 1,368,777
As at As at
March 31, 1998 December 31, 1997
Total owned and managed assets 31,875.7 30,673.4
<fn1> 1997 results are for Newcourt Credit Group excluding AT&T Capital
</fn1>