This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CIT Reports Third Quarter 2012 Net Loss Of $305 Million ($1.52 Per Diluted Share); Pre-Tax Income Of $170 Million Excluding $471 Million Debt Redemption Charges1

CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today reported a net loss for the quarter ended September 30, 2012 of $305 million, $1.52 per diluted share, compared to a net loss of $32.8 million, $0.16 per diluted share, for the third quarter of 2011. The current period includes charges of $471 million related to the redemption of $4.6 billion of high cost debt, while the year-ago period included charges of $169 million related to the redemption of the $3 billion first lien term loan and approximately $1.5 billion of high cost debt. Pre-tax income excluding debt redemption charges was $170 million, down modestly from $176 million in the year-ago quarter. The net loss for the nine months ended September 30, 2012 was $822 million, $4.09 per diluted share, including debt redemption charges of $1.4 billion, compared to a net loss of $17 million, $0.08 per diluted share, including debt redemption charges of $0.4 billion, in the comparable 2011 period.

“We achieved several strategic milestones this quarter that will lower our funding costs and better position CIT for future profitability,” said John Thain, Chairman and Chief Executive Officer. “We eliminated the last of our $31 billion of restructuring-related debt, grew commercial assets for the fourth consecutive quarter, and exceeded $3.5 billion in Internet deposits at CIT Bank. We will continue to focus on achieving our financial targets as we meet the needs of our small business and middle market clients.”

Summary of Third Quarter Financial Results

Third quarter operating results reflect continued solid business activity and execution of our liability management strategy. While we reported a $301 million pre-tax loss for the quarter, pre-tax income excluding debt redemption charges was $170 million, compared to $176 million in the year-ago quarter and $245 million in the second quarter. Pre-tax income excluding debt redemption charges and net FSA accretion/amortization 2 was $103 million, up from $91 million in the year-ago period but down sequentially primarily due to lower gains on loan sales. See the Non-GAAP disclosure table on page 16 for additional information.

Total assets at September 30, 2012 was $43.6 billion, up $0.8 billion from June 30, 2012, but down from $44.6 billion at September 30, 2011 as growth in the commercial portfolio was offset by sales and runoff of over $3 billion of government-guaranteed student loans over the past four quarters. Commercial financing and leasing assets increased to $29.6 billion, up $0.6 billion from June 30, 2012 and $2.6 billion from a year-ago. Total loans rose approximately $300 million during the quarter to $20.4 billion but declined $1.4 billion from a year ago due to the decline in consumer assets. Operating lease equipment increased to $12.1 billion, up approximately $0.2 billion since June 30, 2012 and nearly $1 billion from September 30, 2011, reflecting aircraft and railcar deliveries. Cash and short-term investments increased $0.2 billion from June 30, 2012 to $7.2 billion, largely due to higher cash balances at CIT Bank reflecting the success of raising deposits.

1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.01 -2.70%
FB $104.02 -5.90%
GOOG $684.00 -3.40%
TSLA $163.01 -7.00%
YHOO $27.97 -4.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs