1960 1959 Consolidated Earnings: Earnings from operations before interest Earnings before taxes on income...... Net earnings applicable to common stock Dividends paid per share. 1.00 2.48** .83** Book value per share. 24.89 23.40** Interest charges - times earned. Reserve for unearned finance charges - to capital funds less noncurrent assets Senior debt to capital funds. Losses to discount liquidations. 8.39 Mos. 8.84 Mos. Highlights 1960 1959 Volume of Business: Finance: Motor retail installment receivables. $19,179,578 Other retail installment receivables... 2,340,699 Direct installment loans on motor, etc... 14,074,674 Bulk purchase receivables. .......... 177,162 Motor and other wholesale loans. 23,491,146 $20,841,479 201,812 256,354 Capital loans Insurance - net premiums written: Automobile $ 2,764,054 Life Accident and Health. 1,677,965 $ 3,413,132 Operating Ratios: to discounts Receivables Outstanding: Reserve for losses Senior debt Motor retail installment receivables. $19,973,739 $19,188,226 Number Other retail installment receivables. Number 16,236 15,103 7,315 Direct installment loans on motor, etc.... 10,900,328 Motor and other wholesale loans. 16,842 10,114,736 liquidation of: Capital loans 207,628 188,563 Total receivables outstanding. $36,382,580 $34,199,246 *Restated to give effect to retroactive federal income tax assessment. **Adjusted for 20% stock dividend in February, 1960. Consolidated net earnings for the year ended October 31, 1960 Net earnings before provision for taxes amounted to $991,032.10, The direct loan division and the insurance divisions made sub- in cost of borrowings of $382,152.43 or 31% over the previous year. The used car market suffered a decline in value as this market felt the effect of the American made compact cars being manufactured and sold in volume quantities for the first time. The provision for credit losses increased $106,593.52 or 27% from the previous year. FINANCIAL: Total capital funds were increased by $1,774,060.36 during the year and During the year a $1,000,000 issue of 6% Capital Notes, due March 1, 1975, CAPITAL FUNDS: $11,549,164.54 The ratio of senior debt to capital funds was 2.4 to 1 and the ratio of senior debt to capital funds less noncurrent assets was 3.1 to 1 at the year end. The increase in capital funds and the anticipated availability of additional in the past. VOLUME AND OUTSTANDINGS: Total finance volume, exclusive of bulk purchases, declined $1,627,110 or Total finance receivables outstanding increased 6.38% to $36,382,580.87 at VOLUME $62,111,987.00 1958 1959 1960 OUTSTANDING 30 25 20 15 AAA 1958 1959 1960 DEFERRED INCOME AND RESERVE FOR LOSSES: The reserve for unearned finance charges, deferred income, increased The Company continued its policy of maintaining the reserve for credit The trend of increasing credit losses was accelerated during the year, year. |