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August 10, 2000 SierraCities reports $7.7 million loss for second quarter. Stock 2 3/8 This is press release from their public relations firm: SierraCities.com Reports QII Results SierraCities.com, an innovator of technology solutions for online business-to-business financing, announced financial results for the second quarter ended June 30, 2000. Results include one-time charges associated with the restructuring or elimination of underperforming operations and the Company's previously announced decision to withdraw its approved bank application. The Company reported a net loss of $7.7 million for the second quarter, including non-recurring pre-tax charges of $6.9 million. On an operating basis, the Company reported a loss of $3.4 million compared to net income of $252,000 in the second quarter of 1999. Second quarter operating results were largely impacted by reduced gains from asset sales resulting from a poor secondary asset market during the quarter. The asset sales completed during the quarter resulted in gains of $957,000 compared to $3.5 million in the second quarter of 1999. The Company incurred a one-time $6.0 million pre-tax charge in the second quarter related to the restructuring or elimination of underperforming operations. The annual pre-tax savings from these restructuring measures and other cost reductions is expected to be approximately $9.7 million. Separately, the Company recorded an $864,000 charge associated with the previously announced withdrawal of its approved bank application. The Company's balance sheet at quarter-end had approximately $75.0 million of cash, loans, leases, securities and receivables net of all outstanding debt. Additionally, the Company had $302.9 million of available capacity in its funding facilities as of July 31, 2000. The Company completed a securitization of $211.5 million of assets during the quarter. This was SierraCities.com's eighth public transaction and was well received in the market. Asset originations in the Company's core retail channel increased 19.1% to $152.7 million in the second quarter from $128.3 million in the second quarter of 1999. After a planned strategic reduction in the wholesale and captive finance channels over the past year, total originations were $237.2 million versus $263.0 million in the comparable quarter. Total managed assets at quarter end were $1.6 billion compared to $1.1 billion a year ago. Credit quality remained stable as accounts delinquent more than 30 days declined to 2.48% from 2.95% at December 31, 2000. Thomas Depping, president and CEO, said, "Increasing treasury rates and higher credit spreads have put pressure on our margins, as it takes time for us to pass this along in the form of higher yields. Our yields have increased in recent months and during the second quarter we made the changes necessary to increase efficiencies and focus on our more profitable business. Additionally, we continue to invest in our technology platform and are in the process of implementing a number of the programs previously announced." As announced on April 24, 2000, SierraCities.com is exploring the division of its technology and finance operations to unlock the value of its technology business and has hired Donaldson, Lufkin & Jenrette to advise on the potential division of these units. Since that time, the Company has received a number of proposals through this process and is currently in discussions with various parties. There can be no assurance that any of these proposals will result in a completed transaction. Stock Closed at 2 3/8 http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BTOB&script=200 www.leasingnews.org
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