AT&T Capital Reports First Quarter Net Income of $25 million, Up 59%

Business Wire, April 20, 1995

MORRISTOWN, N.J.--(BUSINESS WIRE)--April 20, 1995--AT&T Capital Corporation (NYSE - TCC) today announced first quarter 1995 net income of $25.1 million, a 59-percent increase from the $15.8 million reported for the first quarter of 1994. Earnings per share were $.53 for the first quarter of 1995 and $.34 for the first quarter of 1994. AT&T Capital's solid earnings growth for the first quarter of 1995 can be attributed primarily to a higher average level of finance assets as well as gains from equipment remarketing and lease renewals. Additionally, the company's provision for credit losses decreased $5 million, or a decline of 19 percent for the first quarter of 1995 when compared to the same period in 1994.

"We are extremely pleased with AT&T Capital's latest financial results," said Tom Wajnert, the company's chairman and chief executive officer. "This demonstrates, on a very basic level, the company's ongoing ability to build and grow the business profitably. But just as important is our unwavering commitment to plan for the long term and our ability to seize select market opportunities.

"Such was the case when AT&T Capital acquired a network of leasing companies in Western Europe from Banco Central Hispano in early January. We are now creating a seamless, global vendor-finance network," he added. "In other words, AT&T Capital achieved outstanding quarterly financial results while simultaneously making important strategic investments for tomorrow."

Total revenue was $363 million for the first three months of 1995, an increase of 11 percent when compared to the $326 million reported for the same period in 1994. AT&T Capital's revenue growth can be attributed to increases in average earning assets as well as strong secondary market and renewal activity.

The company also announced that operating expenses relative to total assets were at 5.4 percent for the first quarter of 1995. This compares favorably to the company's operating expense level of 5.9 percent during the first quarter of 1994.

Total assets were nearly $8.5 billion as of March 31, 1995, an increase of almost 6 percent from the $8.0 billion reported at December 31, 1994. For the first three months of 1995, equipment and loans financed were a robust $940 million, a 31-percent increase from the first quarter of 1994.

A majority owned subsidiary of AT&T Corp., AT&T Capital's shares are traded on the New York Stock Exchange under the ticker symbol "TCC."

As the largest publicly owned, diversified equipment leasing and finance company in the United States, AT&T Capital leases and finances both AT&T and non-AT&T equipment to approximately 500,000 businesses of all sizes in the United States, Canada, Mexico, Europe, Australia and Hong Kong.

Note to Editors:

AT&T Capital will replay a tape of its conference call with equity analysts beginning Thursday, April 20, at 3:00 p.m. EDT. Access to the replay will end on Friday, April 21, at 5:00 p.m. EDT. Chairman Thomas C. Wajnert and Chief Financial Officer Edward M. Dwyer will discuss the quarterly financial results. The replay is expected to run approximately 20 minutes.

Members of the financial community can access the replay by calling:

Within the United States 800-495-5201 code: 4810

Outside the United States 303-267-1035 code: 4810

Callers who have any questions after listening to the replay, or would like to request copies of the company's financial information, should call Investor Relations at 201-397-4444. -0-

     AT&T Capital Corporation Consolidated Statements of Income