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www.leasingnews.org Friday, April 12, 2002 Accurate, fair and unbiased news for the equipment Leasing Industry Headlines---- Commercial Money Center Exposed. Revenue Flat as G.E. Profit Drops on Accounting Shift GE’s Press Release ( their version ) CIT's BrokerEdge Online Service has Surpassed $2 Billion Mark Friday—Odds and Ends Highlights from ELA Weekly Newsletter First Niagara Financial Group 1st Quarter Earnings FINOVA Group Sells Franchise Finance Portfolio to GE Capital SCB Computer Tech. Sells Computer Equipment Leasing Business Equilease Acquires Conseco TRAC Lease Portfolio ### Denotes Press Release _____________________________________________________________________ Commercial Money Center Exposed. “Ask Joe Bonanno’s Question: “ Are they a member of NAELB?” Joseph Bonanno, Esq.,CLP, is the legal counsel for the National Association of Equipment Leasing Brokers. It is his intention that if a “funder” is not a member of NAELB, a member should not do business with them. He states this because the association then has no recourse in “negotiating” matters. The other day, Leasing News stated he should get a medal. He responded: “Thank you for your kind words of suggestion that I should receive a ‘medal.’ “However, realize that the entire process involving CMC was an NAELB matter. “Neither myself nor the NAELB takes any delight in what occurred with CMC and apparently you are finding out about even more issues that can potentially make the overall situation even more unfortunate.” The actual announcement of the expulsion of Commercial Money Center came from its president, Mike Meacher, on November 19, 2001. “Dear NAELB members: “ The Board of Directors has unanimously voted to expel Commercial Money Center ( 221 WestCrest Street, #200, Escondido, California ) for membership in the National Association of Equipment Lease Brokers based on the filings of a complaint by a member for ethical violations. The action was taken in accordance with the NAELB ethics procedures. As always, the NAELB advised that members conduct business with other members so that the ethics program can benefit our members. “ Sincerely Mike Meacher NAELB President In writing the story, Leasing News asked Mr. Bonanno for a comment. He stated at the time President Meacher’s statement was sufficient. We asked him “off the record,” why did NAELB expel Bill Hanson, particularly since he was a big support of the association, major financial contributor, a major sponsor, and was very well liked in the leasing business. He said, “ If a company can’t return an advance rental, no matter what the circumstances are, including an expulsion form NAELB, then something more is wrong than just this one incident. We have other complaints, but I can tell you, not returning the advance rental, this is a red flag. They don’t have the money. Something is really wrong here. We need to notify our members not to do business with this company.” The Leasing Industry should have listened. It is more than Commercial Money Center is out of business. There appears to be fraud involved; many lawsuits, a Federal Bureau of Investigation inquiries, the advance rentals that were to be returned, may be an illusion, Leasing News knows many vendors have not been paid, lessee money not returned, unwarranted liens filed, and there is more. It appears the situation is going to become even worse for all those involved. American Motorist Insurance Company (Safeco) on March 26, filed a $6,265,715 against all officers and Capital Markets Corporation and Commercial Money Center regarding deposits and payments on their bond. This is perhaps the first of many. Part of this suit includes leases for Kiosks, reportedly never delivered, never existed, and the vendor who was to build these allegedly was only paid fifty percent, so he reportedly never completed nor delivered the Kiosks, but the partnership with some officers of Capital Markets Corporation testified in leasing contacts they were “accepted” and payments were being made on the lease. Money for the payments allegedly came from CMC. One of the signers of this transaction, has gone to the Federal Bureau of Investigation in Florida, it is reported, to “tell all” with the hopes of a reduced sentence, very similar
to the Enron Auditor plea . Dun and Bradstreet states the company started in 1998. The chief officer is Wayne Pritle. Amwest Surety Insurance Company, San Clemente, California, is listed as a secured party on many UCC’s. Leasing News spoke with them and they told us Commercial Money Center closed their doors “...for a lot of problems, and we can’t go into them at this time.” We were told they were able to negotiate insurance for transactions, but due to all the investigations, did not want to discuss this further. Other officers of this company are Mark Fisher, Tom Matthews, Brian McMichael, Bill Hanson, Sterling Pirtle, and Ronald A. Fisher. D&B states that “Capital Markets was started in 1997” and operated as a holding company ( Commercial Money Center.). The Nevada Charter shows officers as Wayne Pirtle and Ronald A. Fisher. “On January 16, 2001, Dun & Bradstreet records show that Ronald A. Fisher is listed as an officer in Ronald A. Fisher, DUNS #92-675-9457, which filed a voluntary Chapter 7 bankruptcy on May 10,1996. Ronald Fisher is also listed as an officer of Care-Med Centers, Inc. Pompano Beach, Fl. Duns #18-296-5591, which was reported to have discontinued operations in 1991 leaving unpaid debts. A highly reliable source informs Leasing News that Fisher was a Chiropractor, who lost his license due to Medicare and other “malfeasance.” Leasing News could not find an active license in Florida or California for Ronald Fisher, although it is know he prefers to be called Dr. Ronald Fisher. On January 18, 2001, Dun & Bradstreet records show “...Sterling Pirtle is listed as an officer in North Bay Mortgage, Ltd., Englewood, CO. DUNS #80-475-6427, which filed a voluntary Chapter 7 Bankruptcy on February 13,1995. On January 18, 2001, Dun & Bradstreet “records show that Mark Fisher is listed as an officer in CMC Lease In., Escondido, CA, DUNS #17-409-7709, which was also laced on higher-risk status. On January 12, 2001, Andrew J. Alderete, the CPA for both Capital Markets Corporation and Commercial Money Center, indicated that he prepares an audited, combined financial statement for those two companies....on January 12,2001, a check with the New Mexico Public Accountancy Board revealed Andrew J. Alderete is being investigated for “audit competency” specific details regarding the investigation were not available. Dun & Bradstreet states Commercial Money Center, Inc. (subsidiary of Capital Markets Corporation, Las Vegas, Nevada” started 1997. According to the many Uniform Commercial Credit filings, the assigned are Midam Bank, Toledo, Ohio, Privident Bank, Cleveland, Ohio, Huntington National Bank, Cleveland, Ohio, Second National Bank of Warren, Solon, Ohio. No major banks seem to have been involved. The relationship of the banks is being investigated. The officers of both corporations are the same. Ronald Fisher is not the president. (www.commericalmoneycenter.com) states: “Welcome to Commercial Money Center Inc. Whether you are a broker, vendor, business professional (attorney, accountant, or other professional), business owner or manager with tough credit issues and looking for equipment leasing solutions...the Commercial Money Center is the place to be.” Their website proclaims: “We are full service leasing company specializing in doing the tough credit transaction...discharged bankruptcies, paid tax liens/judgments and slow pays within policy are components of our leasing products. We have expanded our scope to include a limited tax lien and judgment payoff sale & leaseback product that could have many useful applications for businesses working earnestly to solve their credit issues. “We ask that you take a moment and sign-on with us to learn more about the Commercial Money Center and the benefits of our leasing programs for your business and for your client's business. “Application Only Lease “This product is designed for quickly processing transactions $75,000 and under that have certain credit barriers that are acceptable to the Commercial Money Center, Inc. Personal credit reports and guarantees are required for all shareholders/principals of each lessee. Co-signers who are not owners and not involved with the lessee business will not be considered in our credit decision. Spouses are required to co-sign in the following states: Louisiana, Texas, New Mexico, Arizona, California, Washington, Idaho, Nevada, and Wisconsin. “The Commercial Money Center Inc. utilize the following scoring elements in our credit decision process:* Fair Isaac Score as low as 500 Revolving Availability Current Account Status Real Estate Ownership Time in Business - minimum 12 calendar months Average bank balance equal to 2 times lease payment over the last 6 months Gross sales & Net Income Dun & Bradstreet Score Bankruptcies are deducted Tax Liens are deducted (See our Tax-lien payoff product) Civil Judgments are deducted Package Requirements: Transactions equal to $10,000 to $75,000 Lease Application completed with gross and net income Last 6 months of bank statements Equipment description, Cost, Vendor name & Address & Phone & Contact Letter of explanation for any account shown as currently past due on credit reports Sale-Lease backs must have letter of explanation indicating use of proceeds Commercial Money Center hired Dennis Doyon, formerly of Colonial Pacific Leasing, to solicit business. Doyon previously worked for Total Funding, a dot.com super broker looking to have brokers submit vendor business and direct business through their internet connection. Leading the fray was Bill Hanson, who learned the leasing business while working for Ron Wagner, who went out on his own . Hanson is now self-employed as a leasing broker, as reported earlier by Leasing News.
January 10, 2002, Bill Hanson, Vice-President and Director of Marketing states the company will return all “Advance Rentals.” There are stipulations. In the “Meet the Leasing News Maker,” he states: “Is CMC currently not funding transactions and effectively out of business until surety issues are resolved? “ [Bill Hanson ANSWERS] “Out of business is a strong word, we are far from out of business we are still accepting applications and intend on processing them and funding them We are returning everyone's advance rentals “ >> INTERVIEW [SUBMITTED QUESTION] “ So you are still accepting applications? “ [Bill Hanson ANSWERS] “YES, please support us and we will support the brokers.”
“ Everyone talks about CMC being the last resort, what does the credit look like and roughly what would be the rate “ [Bill Hanson ANSWERS] “500 fair isaac..closed BK....several NSF's..... released tax liens and judgments.........we have a rate factor ...like renting an apartment .03630 for 64 months… we only have 64 months...we are trying to get our shorter leases back “
“It takes 5 to 6 weeks because we sell the transactions off in pools of 5 to 10 million and this is after all documents are correct “ : “What about all the vendors who have delivered equipment 6 months ago? “ [Bill Hanson ANSWERS] “Good question, we have not given up on being able to fund these transactions and we feel most vendors will be paid We are refunding the lessees advance rentals, but still trying to move forward and fund them as soon as possible” ] “Approximately how many advance rentals will you be returning? “ [Bill Hanson ANSWERS] “All of them “ [SUBMITTED QUESTION] “Will you fax copy of lessee letter to broker? “ [Bill Hanson ANSWERS] “We are working on a letter for the broker and the vendor! We want to keep everybody working together! That's what America's all about “
“Since I was late.............is there even a "realistic" time frame for the deals that have been in the funding process for several months? “ [Bill Hanson ANSWERS] “To fund? 30-60 days...to get their money back? 2 to 10 days “ >> INTERVIEW [SUBMITTED QUESTION] “: Do you have any suggestions as to where to place some of these deals? “ [Bill Hanson ANSWERS] “Contact me and I will be more than happy in trying to help...1-800-856-0907 “ >> INTERVIEW “What are the odds of you being able to straighten everything out??? “ [Bill Hanson ANSWERS] “Excellent “ _______________________________________________________________________ ------------------------------------------------------------------------------------------------ Revenue Flat as G.E. Profit Drops on Accounting Shift By GRETCHEN MORGENSON and CLAUDIA H. DEUTSCH New York Times Battling sales declines in every one of its businesses, the General Electric Company said yesterday that its revenue was essentially flat in the first quarter and that net profit fell because of a change in accounting. Investors dumped the company's shares, slicing almost $35 billion in market value off G.E. The stock closed at $33.75, down $3.45, or 9.3 percent. Almost 79 million shares changed hands on the New York Stock Exchange, making it the most active stock traded there yesterday. G.E.'s fall also contributed to steep declines in both the Dow Jones industrial average and the Standard & Poor's 500-stock index. The company's earnings announcement was the first under its new chairman, Jeffrey R. Immelt, who is struggling to maintain the consistent double-digit earnings growth the company experienced under John F. Welch Jr., its former chief executive. The earnings report was also the first to be provided in a conference call open to investors, analysts and reporters. Sales for the quarter totaled $30.52 billion, up marginally from $30.49 billion in the period a year earlier. The company posted net income of $2.5 billion, or 25 cents a share, down 2.7 percent from $2.57 billion, or 26 cents a share, in the quarter a year earlier. The latest results reflect a required change in how G.E. accounts for acquisitions. Excluding the accounting change, G.E.'s operating earnings were 35 cents a share, matching analysts' expectations, compared with 30 cents a share in the period a year earlier. On the conference call, Keith Sherin, the chief financial officer, said G.E. was on track to earn $1.65 to $1.67 for the full year, in line with earlier forecasts. Analysts say investors were troubled by the fact that revenue was down across the board and that the quality of the earnings was suspect. "Balance sheet and cash concerns really outweighed earnings per share in investors' minds," said James N. Kelleher, an analyst at Argus Research. For example, although profits at GE Capital Services rose 8 percent, to $1.66 billion, much of the quarter's rise came from lower tax rates. Revenue at the business, which had been the company's growth engine in recent years, fell 6 percent. And GE Power Systems, which had been the company's most profitable industrial business, generated a good part of its revenue from fees for canceled orders as large customers like Calpine and Entergy cut back on building power plants. Indeed, G.E. said such terminations accounted for $476 million, or 9 percent, of the segment's $5.27 billion in revenue and $326 million, or 2 cents a share, of its profits. Analysts also noted that cash on the balance sheet had dropped to $7 billion from $11 billion and that payments that corporate customers make at intervals between placing an order and taking delivery were down substantially at the Power Systems group and other divisions. Under pressure from investors concerned that G.E.'s earnings growth is coming more from companies it buys than from internal improvements at its longstanding operations, the company provided more details about its acquisitions during the conference call. The company said it made $2.3 billion in acquisitions during the quarter and that those acquisitions generated 32 percent of earnings growth. But many analysts said more information was needed. Several wondered about the rate of new orders coming in to GE Power Systems, about pension income and whether G.E. had reversed any former restructuring charges. "I walked away with more questions than answers," said Robert Friedman, an analyst with S&P Equity Research. Still, G.E. has retained its share of fans, happy with the details provided by the company. "Disclosure brings with it a threat of giving away potentially competitive information," said Timothy M. Ghriskey whose investment firm, Ghriskey Capital Partners, has invested in G.E. shares. Here is GE’s Spin via their Press Release: ################################ ###################### GE First Quarter Earnings Grow 17% to a Record $3.5 Billion; Cash Flow from Operations Ex-Progress Rises 18% FAIRFIELD, Conn--GE's first-quarter 2002 earnings before required accounting changes grew 17% to a record $3.5 billion, or $.35 per share, the Company announced Thursday. "GE delivered in the first quarter for the same reason we have delivered throughout the economic downturn -- the strength of our business model," said GE Chairman and CEO Jeff Immelt. "Power Systems, GE Capital and broad-based productivity gains helped our short-cycle businesses ride out this still-difficult economy. It's this mix of businesses, and execution of our initiatives, that enable GE to deliver earnings and cash growth through economic cycles." Financial highlights of the quarter include: -- Earnings before required accounting changes rose 17%, to $3.518 billion, or $.35 per share, from last year's $3.017 billion, or $.30 per share. Both earnings and EPS were records for the quarter. Earnings after required accounting changes in both quarters are described below. -- Revenues of $30.5 billion were about the same as in first quarter 2001. Industrial businesses' revenues grew 5%, reflecting continued strength at Power Systems, including termination revenues of $476 million, and NBC's Winter Olympics broadcasts. GE Capital Services (GECS) revenues declined 6% as a result of repositioning activities and the revenue effects of lower interest rates, the earnings effects of which were offset by lower matched borrowing costs. -- Cash generated from GE's operating activities, excluding progress collections, was $2.2 billion, up 18% from last year's $1.8 billion. Reflecting record progress collections in 2001, reported cash flow from operating activities of $1.4 billion was 53% lower than last year's $3.1 billion. -- Operating margin was a first-quarter record 18.2% of sales, up from last year's 17.7%. GE's digitization initiative was a significant contributor to margin expansion in the quarter. -- GE Capital Services (GECS) first-quarter earnings before accounting changes rose to $1.657 billion, up 18% over last year's reported $1.401 billion. These results reflect the diversity of GECS businesses, with strong growth in its Specialized Financing, Mid-Market Financing and Consumer Services segments. GECS assets totaled $427 billion at the end of the quarter, up 15% from $370 billion at the end of first quarter 2001. -- Required accounting changes include a non-cash transition charge to earnings in first quarter 2002 of $1.015 billion, or $.10 per share, for impairment of goodwill as required for adoption of Statement of Financial Accounting Standards 142 (SFAS 142). Earnings after accounting changes totaled $2.503 billion, or $.25 per share. In the first quarter of 2001, GE recorded a one-time, non-cash transition charge of $444 million, or $.04 per share, as required for adoption of new accounting rules for derivatives, warrants, options and other financial instruments (SFAS 133 and EITF 99-20). Earnings after accounting changes were $2.573 billion, or $.26 per share. -- GE stopped amortizing goodwill as of January 1, 2002, in accordance with the adoption of SFAS 142. Excluding goodwill amortization in first quarter 2001, EPS and earnings in first quarter 2002 rose 9% and 8% respectively. To facilitate comparison of segment operating results, prior-year goodwill amortization is now treated as a corporate rather than a segment cost. Other changes to segment operating results relate to the GE pension plan, now reported at the corporate level, and allocation to segments of other selected costs previously reported at the corporate level. These other changes have no impact on consolidated earnings. Prior-period segment results reflecting all of these changes are available at www.ge.com/investor. As previously announced, GE will provide more detail on first-quarter results on a conference call and Webcast to be held at 9 a.m. EDT today. Call information is available at www.ge.com/investor. Among first-quarter business highlights: -- GE Power Systems (GEPS) continued to meet record demand for gas turbines, shipping 85 heavy-duty gas turbines in the quarter. GEPS Energy Services business added 41 contractual services agreements valued at $1.5 billion, driving total commitments for these multi-year agreements to $26.0 billion, up $8.3 billion or 47% over last year. GEPS completed three acquisitions in the quarter to enhance its technology base and expand its Oil and Gas businesses and services capabilities: Bently Nevada, Pipeline Integrity International and KVB-Enertec. GEPS also reached agreement to acquire the manufacturing and technology assets of Enron Wind Corp., establishing a presence in the renewable wind power segment of the industry. -- GE Medical Systems (GEMS) built a global base for growth and continued its product development initiatives. Total orders were up 4%, with double-digit growth in MR (magnetic resonance), ultrasound, PET (positron emission tomography), outpatient monitoring and related clinical information systems; these were partially offset by a 6% decline in CT (computed tomography) orders as the market anticipated the introduction of GEMS new 16-slice technology in the second quarter. During the quarter, GEMS expanded its product lines and capabilities as it completed several acquisitions, including MedicaLogic, a developer of electronic records for outpatient care; iPath, a leader in surgery management software; Danica Biomedical A/S, a Denmark-based developer of wireless technology for secure intra-hospital transmission of patient information; and Surgical Insights, Inc., a pioneer in the development of image-guided orthopedic surgery software. -- GE Aircraft Engines (GEAE), CFMI (its joint venture with Snecma Moteurs) and the GE-PW Engine Alliance won $2.5 billion in equipment orders during the first quarter from customers including Emirates Airline, Ryanair, South African Airways, Frontier Airlines and Continental Airlines. GEAE also added more than $2 billion in multi-year service agreements with customers including KLM and Continental Airlines. The CF34 Growth engine development program achieved a significant milestone with the successful first flight of the Embraer 170 regional jet. To date, GEAE has received over $7 billion in orders for CF34 regional jet engines, the fastest-growing sector of commercial aviation. In addition, GEAE received in excess of $600 million in contracts from the U.S. military during the quarter, including an order to provide engines for the initial phase of the Air Force's C-5 Galaxy Re-engining Program. -- GE Capital Services (GECS) posted a strong performance through continued cost improvement and robust acquisition activity. GECS digitization and productivity enhancements reduced operating and administrative costs by $275 million, which contributed $165 million to GECS earnings. Acquisition activity remained strong, as Real Estate and Commercial Finance completed the acquisition of Daimler Chrysler's real estate and asset-based lending portfolios. Global Consumer Finance completed the acquisition of Kingfisher plc's Time Retail Finance operations and also agreed to acquire the sales finance business of Kawai Instruments, while Commercial Equipment Finance and Healthcare Financial Services agreed to acquire leasing businesses and financing assets from Comdisco. -- NBC continued its success in television's key demographic category, adults 18-49, with first-quarter ratings 40 percent higher than its closest prime-time competitor's. In February, NBC telecast the second-most-viewed Winter Olympics ever, reaching a total of 187 million American viewers. The Olympics led the network to an eighth consecutive sweeps-month victory among adults 18-49, with the highest ratings for any network in a major sweeps month in eight years. NBC was also television's No. 1 network in key demographics for the quarter in late night, daytime, morning news, evening news and Sunday-morning public affairs programming. NBC saw increases in scatter pricing, which at the end of the quarter was 6% higher than upfront pricing. -- GE Appliances (GEA) grew quarterly revenues 8% with a very strong performance in the U.S., where core product volumes were up 10%, outpacing the industry and gaining 0.6 points of market share. GEA products continued to win awards, as the Monogram Advantium(TM) Speed Cook Oven was named a "Top 100 Pick" by Building Products magazine and Home magazine named the GE Profile Arctica(TM) Refrigerator one of its "Products of the Year." A leading consumer magazine named GE cooking products its top products in several categories. GEA also launched a new GE Profile Washer that meets the Department of Energy's stringent Energy Star guidelines. -- GE Plastics (GEP) average daily order rates increased 18% over first quarter 2001, with order growth in the media, consumer and industrial, and automotive segments, but pricing remained difficult. GEP ended the quarter with an increase in its order backlog for the first time in more than a year. Although the backlog was 29% lower than at the end of first quarter 2001, it was 36% higher than at the end of the year. Immelt said, "Our initiatives continue to yield impressive results in productivity, product and services leadership and business development. These initiatives, combined with GE's strong portfolio, will enable us to deliver earnings of $1.65-$1.67 per share in 2002." General Electric, Fairfield David Frail, 203/373-3387 david.frail@corporate.ge.com ############# ################################ CIT's BrokerEdge Online Service has Surpassed $2 Billion Mark in Loan Applications from Brokers Nationwide CIT Specialty Finance's e-commerce initiative, BrokerEdgeSM, has processed more than $2 billion in loan applications from brokers since January 2000. BrokerEdgeSM, accessible at www.brokeredge.com and www.cit.com, is a web- based software resource that enables brokers to submit loan applications and conduct business online. "More than 80 percent of our new business comes through our web site and it continues to grow. As a result, we are reaching record levels of volume with greater operating efficiencies," reported Tom Hallman, Group CEO of CIT Specialty Finance. BrokerEdgeSM, the online resource from CIT's Specialty Finance Group, provides application upload capability directly from the broker's origination system. Additional features include access to real-time application status, the latest product and rate information and the BrokerScorecardSM, which offers an historical review of a company's performance with CIT. With offices in 32 major U.S. markets, CIT provides brokers with lending specialists who understand their marketplace and technology that puts them within a "click" of lending solutions. "This is a powerful combination of service and access, which we believe will create new service standards for the industry," stated Hallman. CIT Specialty Finance specializes in providing a broad range of consumer financing solutions including: mortgages, home equity loans, and recreational vehicle and manufactured housing financing through dealers and brokers nationwide. CIT Specialty Finance also provides servicing for auto relationships and warehouse lenders. CIT Specialty Finance is one of six operating groups within The CIT Group. Founded in 1908 and with over $50 billion in total managed assets, CIT is one of the world's largest consumer and specialty finance organizations. Visit the company's web site at www.cit.com. ############# ################################### Friday---Odds and Ends GE Capital Vendor Profiles I have a concern about GE Capital/Colonial Pacific. It seems like GE Capital is requesting vendor profiles on most of the deals we have in funding. This was never a contingency before with Portland, but something new that the Chicago office has implemented. My concern is that GE Capital will attempt to do exactly what First Sierra did before they cut off all broker relationships. First Sierra requested a vendor profile on every transaction and then eliminated all brokers. Why? So that they could market directly to vendors and eliminate the middleman. This concept was an utter failure at First Sierra and will likely be the same for GE should they decide to take that route. I really hope I'm wrong... but would like to hear what others think. GE Capital has to know that the 75 or so brokers they still conduct business with are the elite when it comes to volume with low delinquency rates. ( name withheld ) ---- Our sincere condolences go out to Barry for the loss of his life partner. She was a very special person. Barry our prayers are with you during this tough time. Sincerely, Todd Kaufman and all the folks at Keystone Equipment Finance Corp. : Todd Kaufman In Great Respect---Wife of Barry Reitman Passes Away Rita McClain Marder, Co-Founder and Vice-President of Keystone Equipment Leasing, Inc. died on April 5, 2002 after bravely fighting a long-term illness. If you did not know her, I do not have the words to begin to tell you how extraordinarily wonderful she was. Barry Reitman For those who have asked about a charity that would be suitable for a memorial donation in honor of Rita.... The Bull Terrier Club of America rescues approximately 75-125 dogs each year. The combination of intelligence and sweet sensitivity that make them such wonderful companions, means that Bull Terriers in need have special requirements. Your check made payable to "BTCA Rescue" will be a blessing. It can be sent to: Glenna Wright BTCA Rescue Support Chairman PO Box 1828 Glenwood, AR 71943 Nothing brought more pleasure to Rita over the years than her beloved Bull Terriers. If you knew Spice or her predecessors you know that within that massive, muscular chest is a soft, sweet heart. The Bull Terrier Club of America Rescue Support group cares for dogs that, because of reasons such as death of the owner or financial distress, are in need of a new home or other care. In your Tuesday newsletter, you commented that some funders are raising rates while Treasuries are going down. Many funders use three-year Treasuries, rather than one-year Treasuries, as a pricing benchmark and three year Treasury rates have jumped about 50 basis points in the last month. At the same time, the new depreciation rules enacted by Congress in March should allow funders to reduce true lease rates about 50 basis points, which makes true leases an even more attractive alternative. By the way, our finance lease rates have not increased and we have dropped our true lease rates 50 basic points - to 6.0% - because of the new depreciation rules. Dick Leask leask@befcfinance. com From: Jodi Madonna [mailto:jodim@libertyfg.com] Subject: Leasepricing.com I saw your message on leasing news. We have re-entered the equipment leasing business as an equipment leasing broker. Our contact information is as follows. Tom will contact you today to issue you new licenses. Thank you. If you wish to contact Tom directly, his number is 888-883-4480 (ext. 14) or e-mail him at tomm@libertyfg.com.
Jodi Madonna jodim@libertyfg.com 888-883-4480 (ext 21) 888-883-9380 (fax) Now at www.leasingnews.org Books on Equipment Leasing by Source:
Master Index
Amazon Direct Purchase Certified Leasing Professional (CLP) Foundation Equipment Leasing Association Equipment Leasing and Finance Foundation Reports United Association of Equipment Leasing http://www.leasingnews.org/Books.htm ---------------------------------------------------------------------------------------- To clarify, Information Leasing Corporation (ILC) is based in Cincinnati, Ohio, and is a wholly-owned subsidiary of The Provident Bank / Provident Financial Group, Inc. (Nasdaq:PFGI). ILC is a national, full-service equipment lessor providing vendor program financing, portfolio acquisitions, warehouse lines, indirect and direct funding, discounting, municipal finance, and medical practice acquisition funding. ILC Portfolio Services is the division of ILC that provides master, successor, special, and back-up third party servicing to the investment community, captive finance companies, commercial and community banks, and independent lessors. ILC Portfolio Services administers numerous, separate portfolios totalling over 17,000 contracts with more than $1 billion in gross receivables. In regards to your article, ILC Portfolio Servicers is the "successor servicer" on some of the United Capital portfolios. We do not provide any servicing for Spectrum Leasing. Regis Gallagher and I will be attending the ELA Captive and Vendor Leasing Conference in Naples, Fla., on April 14 - 16 and we will also be exhibiting at the ELA National Funding Exhibition in Chicago on April 22 - 23. Hopefully we will see you there. Regards, Steve Dunn Vice President - ILC Portfolio Services Information Leasing Corporation 1125 W. Eighth St Cincinnati, Ohio 45203 Work: 513.632.1725 Fax: 513-263-6109 email: sdunn@ilcinc.com
Highlights from the Equipment Leasing Association Weekly Newsletter ******************************* ELT E-Leasing Newsletter 4/11/02 ******************************** The Equipment Leasing Today E-Leasing Newsletter is published every Thursday and is sponsored by the Equipment Leasing Association and its co-sponsor. To Get Full-Text Stories, go to the web page associated with the story you wish to read. The links to news stories require an ELA MEMBERS-ONLY NAME AND PASSWORD. To receive a password, please contact Daniel Aubain at database@elamail.com or phone 703/516-8377. NOTE: Address change/unsubscribe instructions and contact information can be found at the end of this e-mail. If you received this e-mail (but it was NOT forwarded to you by someone else) you are ALREADY subscribed. *********** The E-Leasing Newsletter is SPONSORED by: ****************** NASSAU ASSET MANAGEMENT Recovery and Remarketing Specialists 1(800)462-7728 or 1(800)4-NASSAU GO HERE>>>>>> http://www.nasset.com WE GET RESULTS!!!!!!!!! Servicing The Leasing Industry for more than 25 years!!!!! *Covering all 50 states and Canada *Fastest turn around *24 hour reporting via Web *Highest resale prices Call Nassau now for a complete assessment of your needs!!! http://www.nasset.com **************************************************************************** ****************************** 1. FINOVA Sells Franchise Finance Portfolio To Two GE Capital Units ****************************** Posted 04/11/02 The FINOVA Group Inc. (OTC Bulletin Board: FNVG) announced today that is has sold approximately $485 million of its franchise finance portfolio to GE Capital Franchise Finance Corporation and GE Capital Canada Equipment Financing Inc., for approximately $490 million. This sale includes substantially all the performing assets in FINOVA's franchise finance portfolio, and represents approximately 7.5% of the Company's total financial assets at December 31, 2001. FINOVA will continue the orderly liquidation of approximately $220 million of its retained franchise finance portfolio, which substantially consists of non-performing assets. The Company will use the net proceeds from the transaction to repay a portion of the loan it obtained in August 2001 from Berkadia, LLC. The FINOVA Group Inc., through its principal operating subsidiary, FINOVA Capital Corporation, is a financial services company headquartered in Scottsdale, Ariz. ************* The E-Leasing Newsletter is sponsored by: ************* Asset Control Doing more for your bottom line. Providing expert individual attention that allows you to preserve the value of your portfolio. Recovery, Collections, Remarketing, Appraisals, Inspections, Auctions & Storage 1-888-227-0444 email: info@assetcontrol.com VISIT OUR WEBSITE >>>>> http://www.assetcontrol.com ********************************************************************* ****************************** 2. APRIL 16 - FUNDING EXHIBITION DEADLINE FOR FINAL LIST OF ATTENDEES ****************************** More than 500 attendees so far have registered for the ELA National Funding Exhibition, "Expand Your Funding Possibilities," April 22-24 at the Fairmont Hotel in Chicago. Check out the list of attendees by clicking on: http://www.elaonline.com/events/2002/FundingExhib/attendees.cfm
YOU should be on this list! If you are not, registering on-line is FAST & EASY and allows you immediately to schedule appointments with exhibitors. Log on to http://www.elaonline.com/events/2002/fundingexhib/FundExHome.cfm and simply follow the instructions. Register by 2:00 PM EST Tuesday, April 16 to be included on the Final List of Attendees handed out on site and posted on-line. After this deadline, individuals should register on-site in Chicago, beginning at 10:00 am on Monday, April 22. Thursday, April 18 by 2:00 PM EST is the latest time you can schedule appointments in advance! DON'T WAIT! Schedule your appointments BEFORE you arrive in Chicago, because you may not get to see the exhibitors you want. Their schedules are filling up fast! So MAKE THOSE APPOINTMENTS TODAY! ************* The E-Leasing Newsletter is sponsored by: ************* KABOOM! BAM! POW! Quiktrak pulverizes perpetrators with Invincible Inspection Services! Fighting Fraud with formidable force, Quiktrak is here to save the day! We thwart the unscrupulous across time and space to make the universe safe for commerce! Let us deactivate those dirty double crossers, who devilishly desire to deprive you of dollars! Just call 800-927-8725 to summon our superhuman speed and service, or warp to our website at http://www.quiktrak.com QUIKTRAK * BRINGING CERTAINTY TO AN UNCERTAIN WORLD! link: http://www.quiktrak.com/sp/Comic-Cover-Ad.html ****************************** 6. Attract Top Talent for Free?! ****************************** You can, with the Equipment Leasing and Finance Foundation's new Internship Partner Program.
Thousands of businesses nation-wide employ part-time interns. Virtually all of the Fortune 500 firms recognize the value of investing in talent early on. But for many ELA member companies, Interns have not been part of the Human Capital equation. The Equipment Leasing and Finance Foundation, as part of an ongoing effort to encourage and support student internships in the equipment leasing industry has significantly expanded the Internship program for member firms. Whether you currently utilize interns, or you would if you had better access to top local student talent, you should carefully consider free participation in the Foundation Internship Partner Program. Our newly expanded internship program offering includes several new features to those who become Internship Partner Organizations (Partners) * For partnering firms, the Foundation will contact local universities to attract high caliber business students for you to consider (graduate and undergraduate level). * For partnering firms who hire an intern, the Foundation will provide valuable discounted training through the industry recognized "Professor Lessor" CD Program and discounted pricing for your interns and employees attending ELA Training, "Principals of Leasing Workshops." * For partnering firms, The Foundation will provide valuable promotional exposure for your company as a participant in the Intern Program through various means including E-News, ELT and through the Foundation web site. * Price to Partner: FREE--The Foundation does the work, your firm and the students obtain the rewards! Interested in employing a student intern? What do you need to do? Contact Lisa Levine, Foundation Executive Director at llevine@elamail.com or 703-527-8655. ****************************** 8. Key Helps ELA Unlock the Doors to Congress ****************************** Last week, Paul Larkins, President & CEO of Key Equipment Finance, presented LEASEPAC with a $10,315, collective contribution from more than 200 Key employees. Individuals participated in this 60-day, company-wide campaign to benefit LEASEPAC and help ELA lobbyists gain access to key members of Congress on Capitol Hill. Key Equipment Finance is the third ELA member company to conduct an internal fundraiser in 2002. The LEASEPAC Committee thanks Key Equipment Finance for its great show of support! 100% of every dollar contributed to LEASEPAC is donated to Congressional candidates, affording ELA lobbyists access to key members of Congress at fundraisers. Make no mistake; political contributions do not ³buy² votes. But they do buy our lobbyists tickets to fundraisers--the access they need to get our industryıs message across. To request an internal company fundraiser ³How To² package, please contact Bridget Alexander at balexander@elamail.com.
****************************** 9. Survey of Industry Activity Deadline Extended! ****************************** It's not too late to participate in this year's 2002 ELA Survey of Industry Activity. The deadline has been extended until May 3, 2002! This year's survey is shorter and simpler than ever before. It is one-third the size of last year's survey questionnaire, but still captures the most relevant data. If you need a copy of the survey questionnaire, please go to http://www.elaonline.com/industryData/2002SIAQuest/ to download the survey questionnaire as a pdf file. Your continued support in ELA's data collection efforts is greatly appreciated. We can only provide meaningful leasing industry data with your help. Please contact Cecilia Beverina at (703) 516-8380 or cbeverina@elamail.com if you have any questions. ****************************** 10. The Jeffrey Wong Memorial Golf Tournament, Sunday, May 5, 2002 ****************************** The annual golf outing for the ELA Legal Forum has been renamed the Jeffrey Wong Memorial Golf Tournament, in memory of this respected colleague who was also an avid golfer. The tournament will be played at the Harborside International Golf Center, Chicago, IL. Just 16 minutes from downtown, Harborside offers stunning views of the city skyline and the Port of Chicago amid 458 isolated acres of sculpted fairways. The fee is $150, and includes transportation to the golf center (leave hotel at 7:30 am, first tee time 8:30 am), cart, green fees and taxes. A portion of the proceeds will be donated to the Equipment Leasing and Finance Foundation's Jeffrey Wong Memorial Fund. To learn more about this fund, click here: http://www.leasefoundation.org/Gifts/jeffwongmem.htm To register on-line for the Legal Forum and Golf, go to http://www.elaonline.com/events/2002/legal/ Sponsorship Opportunities are available: Jeffrey Wong Memorial Golf Tournament - $ 5,000 (Minimum sponsor contribution of $500). Contact Sally Maloney for sponsorship information, smaloney@elamail.com. ****************************** 11. Foundation's Annual Campaign is Off to a Great Start! ****************************** Companies and individuals see the benefit of contributing to the Equipment Leasing and Finance Foundation. All products developed by the Foundation are funded entirely through contributions. Your generous corporate and individual contributions provide you with thousands of dollars in pertinent research and trend analysis of the industry. The Foundation's annual fundraising campaign recently kicked off. This year's goal is $220,000 and we have already received $83,537 in contributions! The Foundation provides the industry "body of knowledge" research including such reports as the annual State of the Industry Report, Industry Future Council Report and specialized studies such as the Perfect Storm and Industry Net Readiness. Join the growing list of annual contributors by contacting Lisa Levine at 703-527-8655, llevine@elamail.com or visit the NEW website, http://www.leasefoundation.org.
2002 Equipment Leasing and Finance Foundation Donors: Founders § AT&T Capital Corporation § ATEL Capital Group § BancOne Leasing Corporation § CIT § DeLage Landen Financial Services § ELA § FINOVA § Paul S. Gass § GE Capital Corporation § Heller Financial Inc. § IBM Global Financing § KPMG § MetLife Capital Corporation § Midwest Regional Association of Eqiupment Lessors § Newcourt Credit Group § Orix Financial Services, Inc. § Sanwa Business Credit Corporation § Southfork Asset Management § Thomas C. Wajnert
Supporters AEGON TRANSAMERICA FOUNDATION (Matching Gift) HELP & PROFIT COMPANY INC. LFC CAPITAL, INC. Contributors ABB FINANCIAL SERVICES KENNETH C. GREENE & ASSOCIATES THE REYNOLDS & REYNOLDS COMPANY Participants ONMARK CORPORATION RESIDCO Individual Gifts to the Equipment Leasing and Finance Foundation Individual Benefactor James H. Possehl Robert P. Rinek Individual Sponsor Mr. Michael A. Leichtling, Esq.(Jeff Wong Fund) Individual Sustainer Mr. Paul S. Gass Individual Contributor Mr. Alan N. Frankel Individual Participant Mr. William J. Anderson(Jeff Wong Fund) Mr. Noah J. Leichtling(Jeff Wong Fund) *** SUBSCRIPTION INFORMATION To update your current subscription information or receive your ELA USERNAME/PASSWORD, please visit: http://www.elaonline.com/memberDir/Profile/IndivForm.cfm To unsubscribe, please email Daniel Aubain at database@elamail.com. If you have other questions or comments relating to ELA E-Leasing Newsletter, please email Amy J. Miller, Vice-President of Communications, at amiller@elamail.com. This newsletter is free to ELA members. Forward it to a co-worker! Copyright 2002 by the Equipment Leasing Association http://www.elaonline.com/ Phone: 703/527-8655 Fax: 703/527-2649 #### ############################################## First Niagara Financial Group, Inc. Reports Strong 1st Quarter Earnings Increase LOCKPORT, N.Y--First Niagara Financial Group, Inc. (NASDAQ:FNFG), today announced that net income for the quarter ended March 31, 2002 increased 60% to $7.5 million, or $0.30 per share from $4.7 million, or $0.19 per share for the first quarter of 2001. On January 1, 2002, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets," which no longer requires goodwill to be amortized. Adjusting prior period results to exclude the effects of goodwill amortization similar to the 2002 first quarter, net income for the current quarter increased $1.6 million or 27% from the first quarter of 2001. On the same basis, net income increased $0.06 per share for the quarter ended March 31, 2002 compared to the same period in 2001. Net income represented a return on average equity of 11.4% for the first quarter of 2002 compared to 9.5% for the first quarter of 2001, adjusted for the adoption of SFAS No. 142. "We are off to a great start for 2002," stated Chairman, President and CEO, William E. Swan. "We continue to demonstrate solid financial performance, which is being driven by the expansion in our net interest margin and effective cost control. We are especially pleased with our commercial loan growth, which we expect to continue throughout 2002." Net interest income increased 19% to $22.2 million for the first quarter of 2002 from $18.7 million for the same period in 2001. During the quarter, the Company continued to substantially benefit from the lower interest rate environment, which reduced its cost of funds. Additionally, the Company's ongoing focus on commercial loan originations resulted in commercial real-estate and business loans ("commercial loans") increasing $35 million, or 6% from the end of 2001 and is on pace to meet our greater than 20% commercial loan growth target for 2002. As a result, the net interest rate spread expanded 44 basis points to 3.30% for the quarter ended March 31, 2002 compared to 2.86% for the first quarter of 2001. Total loans outstanding at March 31, 2002 increased to $1.89 billion as compared to $1.87 billion at December 31, 2001, as commercial loan growth was offset by the Company's strategic initiative to hold less fixed rate residential mortgages. Non-performing loans were $12.7 million at March 31, 2002 compared to $11.5 million at December 31, 2001. While the amount of non-performing loans increased from the prior year-end, total loans greater than 30 days delinquent, which includes non-performing loans, decreased to $23.6 million at March 31, 2002 from $25.4 million. The increase in non-performing loans the Company has been experiencing over the last three quarters can be attributed to the continued growth in the Company's commercial loan portfolio as well as the economic downturn. Overall, management remains confident in the Company's credit quality but expects that non-performing loans and net loan charge-offs could increase as the Company's commercial lending activities increase or as a result of a further weakening in the economy. The allowance for credit losses, which amounted to 149% of non-performing loans at March 31, 2002, is based upon management's review of the loan portfolio and continues to provide adequate coverage for potential losses inherent in the loan portfolio. Deposits increased 7% to $2.13 billion at March 31, 2002 from $1.99 billion at December 31, 2001. This increase was a result of the Company's focus on increasing its customer base, which included the opening of its 38th Banking Center and the introduction of a money market savings account in the first quarter of 2002, and a general increase in deposits experienced by most financial services companies. For the quarter ended March 31, 2002, average noninterest-bearing deposits increased 29% to $103.4 million from $80.0 million for the same period in 2001, primarily due to an increase in commercial business. As a result of this and the increase in net interest rate spread discussed above, the net interest margin increased to 3.52% for the first quarter of 2002, from 3.13% for the same period in 2001. For the first quarter of 2002 the Company had $11.2 million in noninterest income, an increase of 6% over the $10.5 million for the same period in 2001. This increase primarily resulted from internal growth, which included the addition of new products and services, as well as an increase in the Company's insurance business. This increase was partially offset by the Company's decision to significantly reduce its covered call option program and to hold more direct finance leases it originates versus selling them to 3rd parties. Noninterest income continues to be a strong stable source of earnings for the Company as it represented 34% of net revenue for the quarter ended March 31, 2002. Noninterest expense for the three months ended March 31, 2002 was $20.6 million as compared to $20.7 million for the comparable period of 2001. Adjusting the first quarter of 2001 amounts for the effect of the Company no longer being required to amortize goodwill, noninterest expense for the first quarter of 2002 increased $1.0 million primarily due to a $679 thousand, or 6%, increase in salaries and benefits. The Company's efficiency ratio improved to 61.5% for the quarter ended March 31, 2002 from 66.7% for the same quarter in 2001, adjusted for the new accounting for goodwill, as the Company's continued focus on efficiency through its Adding Value Always ("AVA") initiative has helped net revenue to increase faster than noninterest expense. Outlook "Based upon our first quarter results and notwithstanding a significant change in interest rates or economy, we are comfortable with the current analysts' consensus estimate of $1.21 per diluted common share for 2002," stated Mr. Swan. "We anticipate that our net interest spread and margin should remain at or near current levels and expect the continuation of commercial loan growth and effective cost control for the remainder of 2002. We are currently implementing our long-term strategic plan which calls for us to conservatively grow through both internal (de novo) expansion and acquisitions. This was most evident during the first quarter when we announced the location of our 39th Banking Center, which is expected to open in Erie County in the second half of 2002." First Niagara Financial Group, Inc. is the parent company of First Niagara Bank, Cortland Savings Bank and Cayuga Bank and as of March 31, 2002, had total assets of $2.9 billion and total deposits of $2.1 billion. The Company operates 38 Banking Centers, 2 loan production offices, 68 ATM locations and a telephone-banking center. The Company is a full-service provider of consumer, commercial and electronic banking services, as well as a variety of insurance, leasing and investment products. Forward Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial service companies; (3) costs or difficulties related to the integration of acquisitions; (4) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (5) changes in legislation or regulatory requirements; (6) difficulties in continuing to improve operating efficiencies; and (7) increased risk associated with an increase in commercial real-estate and business loans. *T Executive Officer Contacts William E. Swan Chairman, President and CEO Daniel A. Dintino, Jr Senior Vice President and CFO Corporate Information First Niagara Financial Group, Inc. Transfer Agent and Registrar 6950 South Transit Road Mellon Investor Services, LLC Post Office Box 514 P.O. Box 3315 Lockport, New York 14095-0514 South Hackensack, NJ 07606 Telephone (800) 201-6621 Telephone (877) 785-9670 www.firstniagarafinancial.com www.melloninvestor.com ############### ##################################### The FINOVA Group Inc. Announces Franchise Finance Portfolio Sale to Two GE Capital Units Scottsdale, Ariz. Apr. 10, 2002 - The FINOVA Group Inc. announced today that it has sold approximately $485 million of its franchise finance portfolio to GE Capital Franchise Finance Corporation and GE Capital Canada Equipment Financing Inc. for approximately $490 million. This sale includes substantially all the performing assets in FINOVA's franchise portfolio, and represents approximately 7.5% of the Company's total financial assets at December 31, 2001. FINOVA will continue the orderly liquidation of approximately $220 million of its retained franchise finance portfolio, which substantially consists of non-performing assets. The company will use the net proceeds from the transaction to repay a portion of the loan it obtained in August 2001 from Berkadia, LLC. The FINOVA Group Inc., through its principal operating subsidiary, FINOVA Capital Corporation, is a financial services company headquartered in Scottsdale, Ariz. ################# ######################## SCB Computer Technology, Inc. Sells Computer Equipment Leasing Business
T.
Scott Cobb, the President and Chief Executive Officer of the company,
said, "With the sale of our non-core computer equipment leasing
business, we have taken the final step toward achieving our strategic
goal of focusing on our core competencies of providing professional
staffing, outsourcing, and consulting services for the information
technology industry." Mr. Cobb continued, "In view of the
fact that SCB did not have a significant presence in the computer
equipment leasing industry, we believe that the company's resources
and management's time and attention will be better spent on the task
of building a stronger, more competitive company that is clearly focused
on our core business competencies." In
the transaction, SCB sold the computer equipment under lease to customers,
its interests in the leases, and certain other assets to CTI. In return,
CTI agreed to pay to SCB a nominal purchase price plus a significant
percentage of the residual value received from all future leasing
and sale activities involving the computer equipment. CTI also agreed
to assume all of SCB's liabilities and obligations arising from the
computer equipment leasing business, including $4.6 million in non-recourse
debt incurred for the original purchase of the equipment. In connection
with the transaction, the parties terminated a contract whereby CTI
had managed SCB's computer equipment leasing portfolio since September
2000. SCB
Computer Technology, Inc. is a leading provider of information technology
management and technical services to state and local governments and
commercial enterprises, including a number of Fortune 500 companies.
For additional information, visit our home page at http://www.scb.com.
( courtesy ELAonline.com ) ################## ################################# Equilease Acquires Conseco TRAC Lease Portfolio Equilease Financial Services ("Equilease") has acquired from Conseco Financial, a portfolio comprising of 535 TRAC lease schedules covering vehicles with an original cost in excess of $135,000,000 with obligations from lessees of $102,400,000. The portfolio consists of 1,900 vehicles, primarily motor coaches, over-the-road tractor and trailers. "This transaction is part of our strategy of building our organization through selective acquisitions of seasoned lease portfolios and the origination of lease paper through indirect and direct channels", said Gary Silverhardt, Equilease's president and CEO. Equilease is a specialty finance company that provides lease financing to small, mid-and large-capitalization companies. It originates its transactions through equipment vendors, manufacturers and end users, as well as offering programs to select brokers, third-party originators and lessors on a national scale. ############### ################################# ( Sorry for all the news this week, but it sure has been from the CO-Op, the Funding Tree, CMC, and all the news in between. You don’t see this elsewhere. Our readers give us more information and get the kudo’s for the stories. Thank you. editor ) www.leasingnews.org
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