Headline----

 

United Association of Equipment Leasing Costa Mesa Funding Retreat

       Rick Wilbur’s Reaction to Part I

            E-Mail Trust Platform Introduced by Kyberpass

                 US District Court Dismisses Shareholders Suite against Tyco

                    Sterling Bank Declares 225^th Straight Dividend

                         Analyze this, Wall Street—Entron—by Dave Barry

                              IPNET Partners with Equipment CapitalConsulting

                                    LENDX and ADP Credit

       Microfinancial Announces  $2.1 Million 4^th Quarter/Last Year $5.5 Million

           GE Says Financing Airline Customers---The Only Way to Fly

               A follow-up to yesterday’s Chicago Tribune Bob Greene Column-----

 

 

  Today, Part II

 

             “E-Commerce Follies:

                 **Technology vs. the Salesman**”

      

          “Whatever Happened to Republic Leasing of Anaheim”

 

### denote press release

 

United Association of Equipment Leasing Costa Mesa Funding Retreat

 

I would like to personally thank Joanie Dalton, Gina Iacono and everyone

else who was involved in putting together the UAEL Funding Retreat last

week in Costa Mesa.

 

The event was well organized, extremely well attended and interest was

high.  The day started off with an overflow Town Hall Meeting and that

trend continued as the One on One's with the funding sources were also

completely booked.  In addition, the educational workshops addressed a

variety of needs and were professionally presented.

 

A special thanks to all of the brokers who took time out of their busy

schedules to attend this event and made it the success that it was.

 

I look forward to seeing everyone in Dallas!

 

Scott Woodring

Regional Sales Manager

Fisher-Anderson, L.C.

s.woodring@fisher-anderson.com

 

 ( Scott’s boss is the president of UAEL. Thank you for sending, only kidding

about Fisher being your boss, as it must  have been a good conference, as when it is not, the readers let us
know.  No news is good news.

 

      There are two more UAEL retreats to follow:

Dallas,  Friday, March 8  and Philadelphia March 22.

http://www.leasingnews.org/meetings.htm  Editor)

 

 

__________________________________________________________________

 

Rick Wilbur’s Reaction to Part I

 

I just read the article on Republic.  I don't know the principals of that

company but the story was astonishingly similar to my experience when I

sold Charter to my very good friends in Portland.  Best friends until the

ink dried, then the beast came out of hiding.

 

 I wonder if others in this industry have had similar experiences.

 Seems like an interesting topic for an investigative reporter......

 

Rick Wilbur

rick@mediacap.com

Managing Partner

Media Capital Associates, LLC

480-941-8558 ext. 104

480-941-4588 - Fax

              http://www.mediacap.com

 

-----------------------------------------------------------------------------------------------

 

 

Whatever Happened to....

  Republic Leasing of Anaheim

 

This report comes from an 18-page letter to David Solomon, President of the Redstone
Group that put up the initial seed money to start First Sierra. While he was not involved
in the operation, David Solomon is credited with raising the initial money.  He was well
respected by all parties, as he is today.

 

   (Never told before, only rumors and innuendoes exist. Here for

the first time is an insiders viewpoint, from perhaps what can be

viewed today as an “historic document.” It was not written in

hindsight or “Monday morning quarterback,” but during the actual

time of events.  It is fascinating with historic accuracy.)

 

Thomas Depping did not start the company, nor was he the first president. He

is the one, however, who began acquiring other smaller leasing companies

with the idea of making one large network with a very low cost of funds

for all “branches” to enjoy.

 

Also mentioned is Michael Sabel, the stockbroker manager than took First Sierra public at Friedman,
Billings and Ramsey-a stockbroker company. It is reported

that Michael Sabel came up with the name SierraCities.com, ironically a few weeks before the
bubble burst on all dot.coms

 

The letter to David Solomon is quite dramatic from a very concerned ex-branch

manager and major stockholder of the company.  It came at a time of what

the Equipment Leasing and Finance Foundation study called “ The Perfect Storm.”    http://www.leasefoundation.org/pdfs/perfectstorm.pdf    

 

 

  Yesterday was part I

         

  “Introduction:

       **Cause for Concern**

 

  Today, Part II

 

             “E-Commerce Follies:

                 **Technology vs. the Salesman**”

 

 ( to bring readers up-date, this starts with a short re-cap of yesterday’s

     lead-in to this part II )

 

 

 

“Not only was the original intention of training new salesmen, but even having
salesman call on vendors or direct business, became the “old way” to create business.

 

“We had a staff of about 40 and were ordered to fire 15, even though they were paying
for themselves and we believed we had cut the branch to the bone. Unfortunately, this
became an easy task, as the competition around town were bleeding us of our best and
brightest. First Sierra had effectively paid for the hiring and training of many of the
employees of its Southern California competition, all of which appear to be doing
well financially—unlike SierraCities.

 

“Soon we were down to a staff of 10, down from 200 in just over 20 months from
acquisition.”

 

“Compare this to the situation two years ago. In FY ‘97, independent and with little
reliance on technology, my company earned $2 million in net income. Jim  and I
successfully managed a 200 employee company finding between $8 mm —$10 mm
a month in small and medium ticket leases. Over the course of doing business for
6 years Republic had less than $200,000 in total buybacks and had an additional
$800,000 in reserve for bad debt ( which incidentally First Sierra inherited).
Delinquencies were in check and relationships with lenders were good.

 

  “Fred Van Etten was sent to fire me as branch manager. In April, 15 months post
acquisition and no longer in control, Anaheim funded a meager $2 million in
equipment cost, an 80 % reduction in volume from its pre- acquisition high and
lost money for the first time in its history.

 

“In May, Tom Depping and I came to an agreement that releases me from the
remaining year on my contract, thereby” saving “the company
$225,000 in salary + expenses. ). In exchange for me walking away from
the remaining year on my contract, Tom Depping presented me with an
agreement to negate the terms of my employment contract that pertain
specifically to the non-compete clause, in effect, allowing me to get on
with my life in the only business I knows With great relief I signed and
accepted this and sent it back on May ₃₀th, 2000. In exchange, I’m sure
Tom Depping was pleased that he had rid himself of yet another irksome
manager and noisy shareholder — about 20 top level managers in the last
2 years representing 90 % of the executive management have either been
fired or have quit in frustration. I have a noticed what appears to be a pattern.
It seems whenever current management is called to task on the efficacy or
prudence of a particular policy or strategy, the challenger is no longer
on the” e-mail list ‘~.

 

“After the corporate office received the agreement on May 30’, I was
surprised by a visit on May 31  by John Greer, head of HE.; John Skinner,
Western Regional Mgr; and Fred Van Etten, head of all the Sales and Marketing
functions, who arrived on short notice  to retroactively fire me on the orders
of Tom Depping — a most confusing about-face.

 

At this point, Mark McQuitty contacted Mr. David Solomon at the Redstone
Group in Houston and in an 18 page letter explained his ‘cause for concern.

 

 

“Please allow me to introduce myself. My name is Mark McQuitty and until
recently, I was the manager of the Anaheim branch of First Sierra. I’m
contacting you as an extremely concerned shareholder of SierraCities.
I represent a syndicate holding over two million shares of First Sierra
stock, that until recently was worth $5mm and is now valued, depending
on market conditions, anywhere from $5mm — $9mm.

 

“What follows may be shocking to you. I hope that it is an eye opener for
you and the rest of the board members. I trust you’ve been kept in the dark
as to what I consider gross negligence and fiscal irresponsibility by what
goes for executive management in this company. I am bringing all this to
the attention of you and the other members of the board, as I can no longer
in good conscience stand by and watch this company, to which I have
contributed so much to, be systematically destroyed by a reckless CEO.

 

“Sir, over the last 18 months since my company, The Republic Group, Inc.,
was acquired by First Sierra, I have witnessed many business decisions and
myriad tacks and course changes, that have led me to seriously question the
judgment and competency of the senior management of this company and
perhaps at the extreme, I have felt represent gross negligence by the company
chairman and/or a serious violation of his fiduciary responsibility to the
shareholders. I have always been vocal in my opinions and eager to contribute
to the debate on issues that directly affect my pocket book (it is my view, to
do otherwise would be negligent) and this hasmade me, I suspect, an
unpopular individual. Unfortunately for us all, events have borne out my
protests and have validated my concerns.

 

“.... When this is all over, regardless of the outcome, I intend on moving on,
contented that I stood up for what is right and fought the good fight. After
all, the true measure of a successful man is not high he climbs, but how
high he bounces when he falls. I’m writing you to highlight what I believe
to be a series of serious managerial missteps by the current management
thereby causing the company to lose money and the erosion of 80% of the
companies’ market value. I believe a new team in place will stem the tide
of red ink and bring back value as it is clear the market has lost faith in
the current team. It is my understanding we lost $2 million in April alone.
Are you aware of this? What happens when the market finds out?

 

     “ E-COMMERCE FOLLIES:

**Technology vs. the Salesman*^*

 

“We’re hemorrhaging red ink and drowning in e - commerce technology
that is failing to generate any substantial ROL Whereas the sales reps
have been given technology that either doesn’t work or no one knows
what to do with, every month another $100,000 —$800,000 gets” invested”
into the e-commerce solution. The” c-world “is clearly upon us, but
contrary to what Tom Depping and present corporate management
believe, it won’t replace the salesman as the deal closer, it is merely
a means to allow him to market himself more efficiently.

 

“It would more palatable if at least some of the money invested in
the IT budget was being dedicated to the branch network sales and marketing
effort. Are you aware there is a list, 90 projects long, that sales
and marketing have repeatedly requested from IT, all related to the
roll out and implementation of the vendor driven marketing effort,
that is being ignored.  This was the whole focus of the national sales
conference that we spent $400,000 in May to host. Everything was
supposed to be operational by then, It still isn’t. These requests
have repeatedly been met by silence and this has seriously
impeded the execution ofthis marketing roll-out. I’m told
all the resources have to be poured into the e-commerce project.

 

“Tom Depping is on the record as saying he has no interest in
managing a 500 person company. This must clearly be his
intent, as he is currently engaged in the dismantling of the branch
network and replacing it with the e-commerce solution. “This is
deeply troubling, as the branches are the only reliable source of
revenue generation we still possess with sufficient yields to run
operations. That he has no idea how to run it profitably is no reason to
destroy it. He is currently spending $45 million to make $43 million
(a troubling thought!) and he has no idea how to stem this flow of red
ink If you’re interested, I do. No doubt he believes this will leave him
with $40 million to fritter away on his e-commerce project, or latest”
brainstorm du jour”. Unfortunately, he has yet to figure out a reliable
replacement to the origination machine we currently possess and paid
a King’s ransom for. Gentlemen. I guarantee you the $40 million won’t
come from web links or that other debacle, ILM.

 

“Sir, as 1 mentioned, I ran a company with 130 sales reps and I can assure
you there is not enough cash throw-off to support as large a volume of back
office functionaries as Houston has on its payroll. There needs to be an
immediate audit of] oh titles, descriptions, functions and salaries of this
horde. As an example, I made money with only one IT person and a part
time CFO. Now we have an expensive bank President reduced to auditing
expense accounts (why is he still on the payroll if we have shelved the bank
option?)”

 

McQuitty goes on to questions the huge costs of software systems shelved, not

used, as if SierraCities had adopted the personality of a dot.com, who’s burn

rate was predicated on the next round of financing. McQuitty had written

letters to Depping  December,1999,  and early January of 2000, predicting

the dot.com demise, the runaway costs, and the need to get back to a sales

force to create sales and not rely on the internet. From his viewpoint,

SierraCities/First Cities was out of control.

 

Part III---tomorrow

 

In the last part of this remarkable and leasing historic  18 page letter written

in June, 2000,  McQuitty lays the blame on Thomas Depping management,

or lack of, depending on your viewpoint.  To top it off, McQuitty finalizes
it with suggestions on how to recover, surprisingly suggesting naming the
man sent to  fire him as Branch Manager, to become the new CEO: Fred Van
Etten.

 

He obviously thought Fred Van Etten could turn it around.

 

 

E-MAIL TRUST PLATFORM INTRODUCED

 

Kyberpass Corp. recently announced the launch of a new e-mail security

platform to be integrated with Microsoft Outlook. A company news release

claims the Kyberpass Secure E-mail Trust Platform will enable businesses and

Identrus member financial institutions to conduct e-mail communications that

can be digitally signed, encrypted and validated in real time. Kyberpass

Corp. executives say real-time validation reduces the risks inherent in

e-mail communications, including security breaches such as eavesdropping,

forged mail and identity theft. Thomas Nolan, president and chief executive

officer of Kyberpass, says the Secure E-mail Trust Platform "will take the

burden of implementing, administering and managing complex security policies

and certificates away from both end-users and network administrators."

 

http://www.kyberpass.com/

------------------------------------------------------------------------------------

 

United States District Court Dismisses Shareholder Suits Against Tyco

PEMBROKE, Bermuda, --Tyco International Ltd. (NYSE: TYC) (LSE: TYI)
(BSX: TYC) reported today that the United States District Court, District of
New Hampshire, has granted Tyco's motion to dismiss all of the claims asserted
in shareholder suits brought against the company and certain of its officers and
directors under the federal securities laws. The allegations in the suits were
based on criticisms of Tyco's disclosures and accounting practices. The suit
consolidated thirty-eight substantially identical class action lawsuits filed
in various federal courts beginning December 1999, and alleging violations of
the federal securities laws during the period from October 1, 1998 to
December 8, 1999.

 

    Finding that the plaintiffs had fallen well short of stating a viable
securities fraud claim, despite having been given three opportunities to do
so, the Court dismissed all of the plaintiffs' claims against Tyco and the
other defendants.

 

    "We are very pleased that the Court granted Tyco's motion," said L. Dennis
Kozlowski, Chairman and Chief Executive Officer of Tyco. "The dismissal of
these lawsuits should help allay concerns that have been raised about Tyco's
accounting practices. We remain focused on the key task of unlocking
shareholder value."

 

 

 

__________________________________________________________________

##### ################################# ##################

 

Sterling Bancorp Declares 225th Consecutive Quarterly Cash Dividend NEW YORK, -- Sterling Bancorp (NYSE: STL), parent company of Sterling National Bank, today declared a quarterly dividend of $0.18 per common share, payable March 31, 2002, to shareholders of record on March 15, 2002. This dividend is the 225th consecutive quarterly cash dividend paid by the Company and its predecessors since it became a public corporation in 1946.       Louis J. Cappelli, Chairman and Chief Executive Officer, said, "The action taken today by Sterling's Board of Directors reflects the Company's longstanding commitment of sharing its financial success with shareholders. Our ability to deliver consistent shareholder value is the result of Sterling's strong operating performance and proven business model, which is demonstrated by 34 consecutive quarters of double-digit earnings growth."       Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $1.5 billion, offering a full range of banking and financial services products. Its principal banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including commercial lending, asset-based financing, factoring/accounts receivable management, international trade financing, commercial and residential mortgage lending, equipment leasing, trust and estate administration and investment management services. Sterling has operations in the metropolitan New York area, Virginia and other mid-Atlantic states and conducts business throughout the U.S. More information is available on the company's Website, http://www.sterlingbancorp.com.

 

Analyze this, Wall Street—Entron

by Dave Barry

If you're an average layperson, your grasp of high finance consists of knowing
your ATM code. So you're probably bewildered by this scandal surrounding
the collapse of Enron, which had been the seventh-largest corporation in
America. (The sixth largest is the guys who go "WHASSSSSSUP!")

So today we're going to explain the Enron story in the Q&A format, using
simple financial terms that you can understand, such as "dirtballs."

Q--How, exactly, did Enron make money?

A--Nobody knows. This is usually the case with corporations whose names
sound like fictional planets from "Star Wars." Allegedly, Enron was in the
energy business, but when outside investigators finally looked into it, they
discovered that the only actual energy source in the entire Enron empire was
a partially used can of Sterno in the basement of corporate headquarters. Using
a financial technique called "leveraging," Enron executives were able to turn
this asset into a gigantic enterprise whose stock was valued at billions of dollars.

Q--What does "leveraging" mean?

A--Lying.

Q--Why didn't Wall Street realize that Enron was a fraud?

A--Because Wall Street relies on "stock analysts." These are people who
do research on companies and then, no matter what they find, even if the
company has burned to the ground, enthusiastically recommend that investors
buy the stock. They are just a bunch of cockeyed optimists, those stock analysts.
When the Titanic was in its death throes, with the propellers sticking straight up
into the air, there was a stock analyst clinging to a railing, asking people around
him where he could buy a ticket for the return trip.

Q--So the analysts gave Enron a favorable rating?

A--Oh, yes. Enron stock was rated as "Can't Miss" until it became clear that the
company was in desperate trouble, at which point analysts lowered the rating to
"Sure Thing." Only when Enron went completely under did a few bold analysts
demote its stock to the lowest possible Wall Street analyst rating, "Hot Buy."

Q--What other stocks are these analysts currently recommending?

A--Mutual of Taliban.

Q--Doesn't Enron have a board of directors whose members are
responsible for overseeing the corporation?

A--Yes. They are paid $300,000 a year.

Q--So how could they have allowed this flagrant deception to go on?

A--They are paid $300,000 a year.

Q--But didn't Enron have outside auditors? Why didn't they discover
and report these problems?

A--Yes, Enron had one of the most venerable auditing firms in the nation.

Q--What do you mean by "venerable"?

A--We mean "stupid." As a result, Enron executives were able to deceive
the auditors via slick and sophisticated accounting tricks.

AUDITOR: OK, so you're saying you made $600 million in profit.

EXECUTIVE: Correct.

AUDITOR: Can I see it?

EXECUTIVE: Sure! It's right here in my desk! UH-oh! The drawer is stuck!

AUDITOR: Wow! Just like last year!

Q--What should be done to punish the Enron executive dirtballs who,
knowing the company was in trouble, cashed in their own stock and
screwed thousands of small investors?

A--In the interest of putting this ordeal behind us, we believe they
should receive only a slap on the wrist.

Q--Really?

A--With a hatchet.

Q--Isn't that a pretty severe punishment?

A--Actually, it has been deemed harmless.

Q--By whom?

A--Wall Street analysts.

 

### #################################### ############################

 

IPNET Partners with Equipment CapitalConsulting

 

NEWPORT BEACH, Calif--IPNet Solutions(R) Inc., a leading developer
of software that connects Global 2000 companies and their business
partners for secure data exchange, today announced the availability of
leasing options for its two product lines, IPNet eBizness(TM) Suite and
BizManager(TM).

 

By partnering with Equipment Capital Consulting Inc. (ECCi), IPNet is able
to offer a wide range of flexible terms and financial alternatives, including
varied lease plans, to maximize its customers' return on investment.

 

"A leasing alternative allows organizations to acquire IPNet's industry-leading
secure data exchange and collaboration solutions without making large upfront
capital expenditures," said Rob Grice, CFO for IPNet. "With ECCi, IPNet is able
to provide competitive financing options for our customers, helping accelerate
their time-to-benefit."

 

With the IPNet leasing program, customers have extended funding options for
consulting, integration, service warranties and license agreements. The program
includes two options. The commercial plan offers extensive options for mature,
profitable companies while the application-based plan uses on online application
for funding smaller companies.

 

"With customers ranging from Global 2000 companies to small- and medium-sized
enterprises, it's critical that IPNet have a broad range of financing options,"
said Jeffery A. Bland, president, ECCi. "Through our consortium of lenders
and private investors, as well as our internal portfolio, ECCi gives IPNet's
potential customers the ability to structure a wide variety of software leasing
transactions."

 

About Equipment Capital Consulting Inc.

 

Equipment Capital Consulting is a lease-consulting firm based in Orange
County, Calif. operating throughout the United States and Canada. The
company partners with premier solution providers to facilitate funding
for their products and services.

 

ECCi syndicates financing for a wide variety of leased technology
equipment through its consortium of lenders, private investors and
internal portfolios. ECCi's consultants offer the best leasing structure
for its clients as an alternative resource to acquire their solution.
For more information, visit www.eccilease.com.

 

About IPNet Solutions Inc.

 

IPNet Solutions provides software that connects Global 2000 companies
and their business partners. Its flexible and secure solutions support
leading Internet standards, XML and legacy EDI systems. IPNet allows
business partners of any size to participate in B2B initiatives by
offering server, PC, Java-client and browser options for data
exchange. Its patented technology helps companies migrate risk-free
from legacy systems to the Internet.

 

Industry recognition includes Computerworld's "Top 100 Emerging
Companies to Watch in 2001," Managing Automation's "25 Emerging
Companies to Watch," American Electronics Association's "Best
Innovative New Product/Technology," iSource's "Top 100 Premier
E-Procurement Providers" and RIS News' "Top 10 Emerging Leaders."

 

More information about the company can be found at
www.ipnetsolutions.com or 866/476-3848 (866/IPNET4U).

 

CONTACT: 

 

IPNet Solutions Inc., Newport Beach

 

Amy Gray (editorial), 949/838-1016

 

agray@ipnetsolutions.com

 

#### ##################################### #################

 

LENDX and ADP Credit

 

SAN FRANCISCO--LENDX, the leading provider of management
applications and commerce services for equipment financing, announced
benchmarks in its customer implementation process.

 

ADP Credit Corporation, having implemented LENDX applications,
has realized cost savings by standardizing and streamlining the equipment
financing processes within the organization.

 

"With real-time access to equipment financing information and analytics,
we have improved our equipment financing business process through
utilizing LENDX RFP Manager nearly every day," noted Tony Pacchiano,
Senior Director, ADP Credit Corporation. "We are impressed with LENDX technology and the team behind it and anticipate substantial cost savings, continued product enhancements, and first rate professional services support for years to come."

 

"We are excited about the advances that we are making with enterprise customers and will continue to focus on customer satisfaction as our number one priority," responded Scott Martin, CEO of LENDX.

 

Martin, formerly CEO of diCarta, recently joined LENDX, replacing interim CEO Lou Vigliotti. Vigliotti will lead the company's Leasing Vertical Consulting Services organization going forward. Kirk Cruikshank of the LENDX Board said, "Scott brings enterprise software experience to a rapidly growing company solving real problems for large corporations. Under his leadership, we anticipate that LENDX can leverage its equipment finance industry expertise and in-house technology team to best serve its customers."

 

LENDX closed its Series B financing with long-time investors Mohr Davidow Ventures and New Enterprise Associates in December 2001.

 

"With renewed support from NEA and MDV, we aim to further hone the services that LENDX provides and realize the company's vision of saving Fortune 2000 companies millions of dollars through innovative solutions that streamline corporate equipment financing," said Martin.

 

About ADP Credit Corp

 

ADPCC is the captive financing arm of Automatic Data Processing, Inc. (NYSE: ADP). Its mission includes supporting the sale of on-site computing systems. ADPCC works with customers to find solutions which will help them to conserve capital, improve cash flow and benefit from the latest technology. Since 1984, ADPCC has provided sales support to ADP business units and value-added services to thousands of clients. ADPCC has developed programs geared to businesses of all sizes. Over the last three years, 85% of ADP's clients who require financing have chosen ADPCC as their leasing source of choice. ADP is one of the largest global providers of computerized transaction processing, data communications and information services, with more than $6 billion in revenues and 500,000 clients worldwide. More information on ADP Credit Corp. and ADP is available via the Internet at www.adpcredit.com and www.adp.com.

 

About LENDX

 

LENDX is the leading provider of management applications and commerce services for equipment finance and other financing instruments. Its integrated suite of web-based applications and services improves efficiency, increases control and reduces costs by providing large companies with solutions that address the entire financing lifecycle. Delivered as a hosted service, LENDX applications and related services provide secure and intuitive solutions for managing financing obligations that can be fully deployed in days.

 

CONTACT: 

 

LENDX

 

Elizabeth Arbuckle, 415/793-8600

 

Earbuckle@lendx.com

#### ###################################### ##################

 

$2.1 Million 4^th Quarter/Last Year $5.5 Million

 

 

MicroFinancial Incorporated Announces Fourth Quarter and Year End Results

 

 

Year Net Income

 

 

WALTHAM, Mass--MicroFinancial Incorporated (NYSE: MFI), a leader in Microticket leasing and finance, announced today the financial results for the fourth quarter and the year ended December 31, 2001.

 

Net income for the fourth quarter was $2.1 million vs. $5.5 million or $0.16 per share vs. $0.43 per share for the same period in the previous year. The primary reason for the drop in earnings for the quarter was an increase of $6.2 million in the provision for credit losses and an increase of $1.6 million is SG&A expenses. The increase in the provision for credit losses was to accommodate for the increased delinquency the Company has been experiencing from the lower grade credit that had been written during fiscal 1999 and most of fiscal 2000. The increase in SG&A was primarily related to a $1 million increase in cost of goods sold related to the sale of equipment through the Resource Leasing operation whose assets were acquired in early 2001, a $500,000 increase in payroll expense and a $250,000 increase in sales programs.

 

Net income for the year ending December 31, 2001 was $16.3 million vs. $20.9 million or $1.26 vs. $1.63 in fiscal 2000. Annual revenues increased by 10.5% or $14.6 million for record revenues of $154.1 million. Total investment in leases, loans, service contracts and rental equipment decreased by $6.8 million or 1.4% primarily related to writing off the balance of the Premier Holiday loans that had been previously reserved for in fiscal 1999.

 

Interest expense for the year ending December 31, 2001 decreased by $1.6 million or 9.8% due to a decrease in the Company's borrowing rate. Provision for credit losses increased from $38.9 million to $54.1, an increase of $15.2 million or 39%. Net charge offs were $51.3 million vs. $37.9 million. Depreciation and amortization increased by $4.2 million or 41% due to an increase in the rental and security monitoring business. SG&A expenses increased by approximately $6.5 million primarily related to an increase of approximately $3.6 million in cost of goods sold and $3.4 million in employee related expenses (of which approximately $5.8 million is related to the acquisition of the assets and employees of Resource Leasing).

 

"Fiscal 2001 was a year of re-focus with our decisions to increase pricing and tighten the credit approval standards resulting in lower origination volume and the hiring of a new Vice President of Sales and Marketing in June," says Richard F. Latour, President and COO.

 

"As a result of the decision to increase pricing and tighten its credit approval standards, dealer fundings of new contracts during fiscal 2001 were $111.1 million vs. $145.4 million a decrease of $34.3 million or 23.6%. We believe that this decision will result in better long-term performance in our overall portfolio. We believe that the economic environment will continue to have a high level of uncertainty and conclude that an increased focus on cash and asset quality rather than dealer funding growth will be key to creating shareholder value going forward," adds Peter R. Bleyleben, Chairman and CEO.

 

### ########################################## #################

 

GE Says Financing Airline Customers

 

.c The Associated Press

 

 

EVENDALE, Ohio (AP) - General Electric Co. said Monday its aviation businesses have committed more than $4.1 billion in financing support since the Sept. 11 terrorist attacks to help airline customers through the industry's slump.

 

The support comes through GE Aircraft Engines, the company's jet engine-making business, and GE Capital Aviation Services, the company's aircraft leasing arm.

 

GE spokesman Christian Flathman declined to be specific about details of the support the company is giving to U.S. and foreign airlines. He said it could involve loans at more favorable rates or extended repayment schedules.

 

``If GE can do a little more on the financing side, that might give them an edge,'' said Jeffrey Hammond, an analyst with McDonald Investments Inc.

 

GE also said it has stepped up its efforts since Sept. 11 to help commercial and military customers find and implement ways to cut operating costs.

 

The company's announcement was timed for the start of the Asian Aerospace event in Singapore, the first major air show since the Sept. 11 attacks.

 

GE Capital, General Electric's financing business, makes the pool of financial help available to aviation customers.

 

Pratt & Whitney, the United Technologies Corp. unit that is a major GE competitor in the jet engine business, is helping its customers by deciding this year not to raise prices on many of its spare parts for jet engines, Pratt & Whitney spokesman Dan Coulom said. It is the first time in years that the company froze prices on spare parts, Coulom said.

 

GE Aircraft Engines, which had 2001 revenues of $11.4 billion, expects as much as a 25 percent decline in its engine deliveries to commercial airlines this year. Its GE Engine Services business, which provides engine maintenance service for airlines, also expects a double-digit decline in 2002 before recovering in 2003.

 

Shares of GE were up $1.11, or 2.91 percent, to close at $39.20, but gained another 5 cents in extended trading.

 

A follow-up to yesterday’s Chicago Tribune Bob Greene Column-----

 

Here is more about Medal of Honor Winner Joseph Foss, who was stopped at the airport

and questioned at age 86 for quite some time because he had a medal of honor in his

jacket;he was traveling to make an address at West Point, NY ).. He was a suspected terrorist.

 

 

FOSS, JOSEPH JACOB

 

Rank and organization: Captain, U.S. Marine Corps Reserve, Marine Fighting Squadron

121, 1st Marine Aircraft Wing. Place and date: Over Guadalcanal, 9 October to 19

November 1942, 15 and 23 January 1943.

 Entered service at: South Dakota.

Born: 17

April 1 915, Sioux Falls, S. Dak.

 

Citation: For outstanding heroism and courage above and beyond the call of duty as executive officer of Marine Fighting Squadron 121, 1st Marine Aircraft Wing, at Guadalcanal. Engaging in almost daily combat with the enemy from 9 October to 19 November 1942, Capt. Foss personally shot down 23 Japanese planes and damaged others so severely that their destruction was extremely probable. In addition, during this period, he successfully led a large number of escort missions, skillfully covering reconnaissance, bombing, and photographic planes as well as surface craft. On 15 January 1943, he added 3 more enemy planes to his already brilliant successes for a record of aerial combat achievement unsurpassed in this war. Boldly searching out an approaching enemy force on 25 January, Capt. Foss led his 8 F-4F Marine planes and 4 Army P-38's into action and, undaunted by tremendously superior numbers, intercepted and struck with such force that 4 Japanese fighters were shot down and the bombers were turned back without releasing a single bomb. His remarkable flying skill, inspiring leadership, and indomitable fighting spirit were distinctive factors in the defense of strategic American positions on Guadalcanal.

 

In April I'm bringing my Father's ashes to Punchbowl in Honolulu where many Medal

of Honor recipients are buried.; If you haven't been there it's well worth

; Gonna visit the Arizona memorial for the first time.

 

thanks for the story, hope Dash is doing well

 

Rick Sakuda, CPA

rks111@attbi.com

 

( My son is stationed in San Diego, California, getting ready in a few months

to join a new destroyer to be launched in Mississippi on the Gulf with home port in San Diego. Kit Menkin,editor.)

 

  Don’t Forget

 

 

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