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| June 7, 2000 Hal Hayden of CapitalStream helped me revise this list. Any comments or corrections are always appreciated. 32 Leasing Companies with Problems the last Six Months: Bankvest
(bankrupt) For those of you who do not believe that Internet Leasing companies are cutting into vendor and other lease business, ePlus Reports Record e-Commerce Revenues. Full Story below ****1 While small in scale, here is another example of Internet Leasing moving more into vendor strategic alliances: LeasePoint.com adds eight more vendors. Full Story ****2 I did not have room for this June 1 Press Release, but it fits here now about BizLease, going after "Portal Vendor" business and how this company is moving their operation more onto the Internet. Full Story ******3
SED also brings on board an improvement in the Internet Vendor Service. Why: " In a recently published survey by Equipment Leasing Association (ELA) it was identified that approximately 8 out of 10 companies lease some or all of their equipment and that a major portion of them plan to re-lease. 'Small businesses are realizing that the value of equipment comes from using it, not owning it,' said ELA President, Mike Fleming." For the full story ****4 The point of all this...There are 32 lease competitors around. Where is their business going. The vendors, the customers, they were servicing. For those of you who have your head in the sand about the internet, you better change your ways and adjust, because it is more than written in the wind----it is happening now CapitalStream Upgrades Credit Workflow Software CapitalStream (formerly System 1 Software), an e-commerce provider of services and applications for the global business finance industry, announced the release of System 1 CenterPoint 2.0. Designed to work in conjunction with CapitalStream.com, CenterPoint offers an enterprise solution for streamlining credit decision-making and work flow. This integration allows for a fluid and efficient flow of information between business partners in the financial supply chain via the web, saving brokers and funding sources time, while generating increased revenues and transactions. With CenterPoint 2.0 customers can automate the entire financing process using services designed to take the application process online. These services include information links to business-decision organizations such as Fair Isaac, Dun and Bradstreet, Vertex and UCC filing services, which allow the user to process personal and business credit scoring, as well as tax information, with the click of a mouse. This electronic interface with third-party credit services simplifies credit and risk management while automating the cumbersome process of credit information collection. "With CapitalStream.com and CenterPoint 2.0, our customers will be able to provide real-time credit decisions and give immediate details such as rates, taxes and schedules," said Stephen Campbell, CapitalStream president and CEO. "In the age of the Internet this is crucial for improving customer service and building a foundation for long-term business relationships." In addition to the synchronization of information to and from CapitalStream.com, CenterPoint allows for integration with major legacy systems, eliminating multiple data entry and allowing easy access to information from the customer's desktop. CenterPoint users can access databases from any location utilizing the Internet, and store detailed information on an unlimited number of contacts. With a specialized tool bar and desktop Internet connectivity, virtually any type of file can be stored and sent, from spreadsheets to images to graphics.
CenterPoint 2.0 provides several upgrades from the previous 1.3 version, including: Quick Search-the capability for the end user to type in a letter and pull up company or contact lists without going through multiple menus. Copy Functionality-enables the end user to copy schedules, equipment information and other lengthy processes, without having to re-key all the information manually. This becomes even more valuable with multiple locations and multiple pieces of equipment. Vertex Link-available with DCOM, this feature supplies the user with tax information relating to office or equipment location and calculates taxable and non-taxable items. Dun & Bradstreet Link-supplies customers with business credit reports and information. Schedule and Equipment Screen Redesign-modification of existing screens to accommodate tax information and calculations associated with tax. CenterPoint 2.0 is available on a subscription basis, providing customers with a full-service solution that increases business volume by streamlining processes, without a large up front investment. Story #1 ePlus Reports Record e-Commerce Revenues ePlus announced its fourth quarter and fiscal year earnings for the quarter and year ending March 31, 2000. Net e-commerce revenues, which include ePlusSuite transaction fees plus the gross margin of equipment sales in the e-commerce business segment, increased 197% to $1,760,050 in the quarter, as compared to $593,028 reported in the prior sequential quarter ending December 31, 1999. ePlusSuite transaction fees increased 263% to $1,078,448, as compared to $297,453 for the prior sequential quarter. The total volume of equipment leased and sold in the e-commerce segment during the quarter was $18.9MM. For the three months ended March 31, 2000, revenues increased 74% to $77,417,256 from $44,439,250 the prior year's quarter, and net income increased 26% to $2,413,159 from $1,914,823 the prior year's quarter. Basic and diluted earnings per share for the quarter was $0.30 and $0.25, respectively, as compared to $0.26 and $0.23 the prior year. Total volume of equipment leased and sold during the quarter was $108.8MM. For the twelve months ended March 31, 2000, revenues increased 37% to $265,691,502 from $193,969,838 the prior year, and net income increased 25% to $8,375,347 from $6,716,467 the prior year. Basic and diluted earnings per share was $1.09 and $0.91, respectively, as compared to $0.99 and $0.98 the prior year. The total volume of equipment leased and sold during the year was $499 million. Phillip G. Norton, chairman, president, and chief executive of ePlus said, "Our e-commerce segment is gaining momentum as ePlusSuite develops into the leading supply-chain management solution for middle market companies. We continue to have excellent growth in all of our business units, and we are successfully converting customers to ePlusSuite from our legacy businesses as well as adding new ePlusSuite customers. The financial performance of core businesses, combined with the growth drivers of e-commerce, enable us to deliver superior financial results, which are well in excess of published analyst's estimates for the quarter. We have been one of the few profitable B2B companies and we will continue to use this to our advantage and invest in technology and marketing of ePlusSuite." Norton continued, "Many of our competitors in the B2B space may have to change their business strategies as they seek profitability. At ePlus, we are leveraging the strengths in our core businesses -- long-time customers, industry-leading business process efficiency, and built-for-the-web technology -- to deliver the solutions our customers need. Unlike many others, we aren't guessing that our strategy will be profitable in two or three years, we are delivering results." The Company's business segments continued to show strong financial results. For the twelve months ending March 31, 2000, sales of equipment increased 97% to $164,804,933 from $83,516,254 the prior year. Lease revenues increased 52% to $31,374,243 from $20,610,542 the prior year. Sales of leased equipment, a form of financing used by the company to facilitate its leasing transactions, decreased 29% to $59,765,309 from $84,378,800 as the company retained more leased assets on its balance sheet. Selling, general and administrative expenses increased 56% to $28,404,864 from $18,253,636 the prior year. Interest expense, which is primarily related to the leasing segment, increased 216% to $11,389,682 from $3,601,348 the prior year as a result of an increased level of leasing activity and on-balance sheet lease assets. For the quarter ending March 31, 2000, sales of equipment increased 78% to $49,483,377 from $27,775,778 the prior year. Lease revenues increased 70% to $9,557,549.68 from $5,616,037 the prior year. Sales of leased equipment increased 52% to $14,883,139 from $9,766,121. Selling, general, and administrative expenses increased 63% to $8,511,934.26 from $5,176,836.00 the prior year. As of March 31, 2000, lease assets on its balance sheet increased 168% to $232,756,976 from $86,901,129 the prior year. Total equity increased 32% to $57,814,789 on March 31, 2000 from $43,813,809 on March 31, 1999. Total non-recourse debt, which is primarily used to finance lease assets, increased 245% to $180,969,480 from $52,429,266. Recourse notes increased 104% to $39,017,168 from $19,081,137 the prior year. Recourse notes include the Company's collateralized line of credit which had a balance of $34,500,000 on March 31, 2000 as compared to a balance of $18,000,000 the prior year. Business highlights for the quarter include: A 457% increase in the number of ePlusSuite customers, from 7 on December 31, 2000 to 39 on 3/31/00. As of June 7, 2000, there were 38 customers implemented and 16 customers being implemented. ePlus announced a secondary public offering which was completed on April 11, 2000. The offering raised approximately $26.8 million by issuing 1,000,000 shares at $28.50 per share. A strategic alliance with e-NITED Business Solutions, a division of United Stationers, to fulfill business products such as office supplies, consumable, and paper goods. The products will be offered as an integrated component of ePlusSuite, ePlus's Internet-based business-to-business supply chain management solution. ePlus formed a strategic alliance with PSINet, the Internet SuperCarrier, to provide ePlusSuite on a remotely hosted basis to PSINet customers, which include over 25,000 domestic customers. June 8, 2000 Story #2 LeasePoint.com, an emerging industry leader in web-based technology equipment leasing, announced that eight vendors have agreed to provide products and equipment for lease through LeasePoint.com's web site, effective immediately. These
vendors will offer various types of equipment, including network, telecom, medical,
general office, audio visual, digital photography and video conferencing. "LeasePoint.com is pleased to have the opportunity to work with these eight vendors." said Elen Bahr, vice president of marketing for LeasePoint.com. "As we quickly become the preferred source for businesses seeking to lease technology equipment, our partnerships with reputable vendors and our comprehensive web site will enable us de mystify the leasing process and raise this industry to a whole new level." LeasePoint.com's eight initial vendors and their offerings: Commercial
Environments - a full-service furniture dealership that creates interior solutions "We offer co-branded leasing programs for small to mid-sized technology vendors throughout the United States," maintains Bahr. "They might not otherwise have access to the customers we attract." Following a complete beta test period of the online leasing programs, customers will be able to lease products and equipment from these new vendors. The process will be simple - once a user finds the right product, LeasePoint.com matches the user's needs with an appropriate finance company. A reverse auction is used to shop the lease to providers and then deliver the best bids to the user - all in real time. Story #3 Mission Pacific Capital Launches Online Equipment Finance Center "Bizlease" Mission Pacific Capital, a leading originator of financial products for small and medium sized businesses, launch its online equipment finance center Bizlease(TM). Bizlease will replace MPCLeasing.com, which was the first comprehensive web-enabled equipment lease administration for vendors. MPCLeasing set the pace for all other online equipment lessors last year launching many innovative applications that are "must haves" for any leasing company today. Bizlease offers the small business owner a value added equipment finance solution with its LeaseLogix(TM) system that instantly approves, notifies, tracks and documents an equipment finance application. The small business owner can also take advantage of the wide range of funding partners that Bizlease works with to optimize their borrowing power. The small business owner will also benefit from the educational information concerning their own financial condition, personal and business credit, customized industry information and future purchasing power. Bizlease
was designed to answer the needs of equipment vendors by providing them with a
seamless process to finance their customers via their own web site or one that
is hosted by Bizlease. Bizlease operates from its LeaseLogix system, which is
a proprietary state-of-the-art lease processing and tracking web-based platform.
Vendors can submit applications, receive email notifications on the status of
the applications, have their customers approved, and print the lease agreements
right from their own computer. LeaseLogix uses a powerful web-enabled database
integration system that allows equipment vendors to capture the customer at the
point of sale, either in the store or online. LeaseLogix also provides a seamless process between the many outside sales representatives Mission Pacific Capital has throughout the United States and its Corporate headquarters in California. "We wanted to continue our commitment to our vendors by providing them with a system they could depend on and also offer the small business owner a truly unique financing experience," said Chris Aragon, president. "The services we will be offering and the information that will be available on the site will give the small and medium sized business owner the same advantages that large corporations have, so that we can help these businesses grow and hopefully we will grow with them." Bizlease has an established equipment vendor network across the United States that provides financing for automotive, medical, computer telephony, heavy construction, technical lab and computer server equipment, just to name a few. Mission Pacific Capital has an intense customer service focus that has placed it at the top of many other equipment leasing firms. Vendors and customers alike are often surprised and delighted to find that they can reach a trained leasing professional without going through days of telephone tennis and voice mail. "Building and maintaining our relationships with our vendors is key to our success,"Aragon said. Story #3 Bizlease will provide a high-speed point of sale process that will benefit vendors yet it has also created a new fraud prevention multi database check point system in order to maintain its current below average default record with its funding partners. Bizlease will provide a high-speed point of sale process that will benefit vendors yet it has also created a new fraud prevention multi database check point system in order to maintain its current below average default record with its funding partners. "Our focus has always been and will remain on process innovation and quality solutions for the small and medium sized business owner," Aragon said. June 5, 2000 Story #4 SED International to Offer Conseco Leasing ATLANTA, June 8 /PRNewswire/ -- SED International, Inc. (Nasdaq: SECX) announced today that it has entered into an agreement with Conseco Finance Vendor Services Corporation (NYSE: CNC) to offer an improved leasing package to the computer and wireless industry. Under this agreement, SED International, Inc. has added the ability to offer leasing as an option to its already diverse credit alternatives. This new offering will be available for VARs, system integrators, on-line re sellers, and wireless dealer agents in the United States. In a recently published survey by Equipment Leasing Association (ELA) it was identified that approximately 8 out of 10 companies lease some or all of their equipment and that a major portion of them plan to re-lease. "Small businesses are realizing that the value of equipment comes from using it, not owning it," said ELA President, Mike Fleming. Keith Boudreau, President of Conseco Vendor Services Corporation commented, "SED and Conseco together create a dynamic force in the marketplace. This relationship will afford all parties involved, a winning edge in today's competitive high-tech marketplace." "By joining forces with Conseco Finance Vendor Services Corporation, SED has partnered with a leading source of financial services," said Mark Diamond, President and C.O.O of SED International, Inc. "We offer an additional way for SED customers to add value by solving end-user capital requirements. Our customers are able to take advantage of creative alternatives to improving their own cash flow and profitability," added Diamond. Conseco Finance Vendor Services Corporation, a subsidiary of Conseco, Inc., provides equipment leasing and financing services to manufacturers, distributors and dealers in the office equipment industry. For more than 30 years, Conseco Finance Vendor Services Corporation has been ranked as one of America's top lessors. Conseco, through its subsidiary companies, is one of America's leading sources for insurance, investment and lending products, helping 12 million customers step up to a better, more secure future. SED International, Inc. is an international distributor and value-added services provider of computer and wireless technology throughout the United States, Caribbean, and Latin America. The Company has relationships with more than 30,000 value-added re sellers, system builders, ed-commerce re sellers, dealer-agents, and retailers. SED International serves its customers more than 5,000 products, fulfillment services, finance options, and e-commerce solutions. The Company operates sales and distribution facilities in the United States, Argentina, Brazil, Colombia, and Puerto Rico. The Company's expertise in the computer and wireless industry positions SED International, Inc. to leverage the convergence of these technologies. More information about SED International, Inc. can be found at www.sedonline.com. The matters discussed herein contain certain forward-looking statements that represent the Company's expectations or beliefs, including, but not limited to, statements concerning future revenues and future business plans and non-historical Year 2000 information. When used by or on behalf of the Company, the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "intend," "plan" and similar expressions are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company's control. The Company cautions that various factors, including the factors described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in the Company's Registration Statement on Form S-3 (SEC File No. 333-35069) as well as general economic conditions and industry trends, foreign currency fluctuations, the level of acquisition opportunities available to the Company and the Company's ability to negotiate the terms of such acquisitions on a favorable basis, a dependence upon and/or loss of key vendors or customers, the transition to indirect distribution relationships for some products, the loss of strategic product shipping relationships, customer demand, product availability, competition (including pricing and availability), concentrations of credit risks, distribution efficiencies, capacity constraints and technological difficulties could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements of the Company made by or on behalf of the Company. The Company undertakes no obligation to update any forward-looking statement. SOURCE SED International, Inc. CO: SED International, Inc.; Conseco Finance Vendor Services Corporation ST: Georgia, Indiana IN: CPR FIN SU: JVN PDT 06/08/2000 09:20 EDT www.prnewswire.com
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