Tomorrow, Thursday, Noon, PST (California Time)

            Meet the Leasing News Maker---Mark McQuitty

                      www.leasingnews.org/newsmaker.htm

 

 

Headlines---

 

Greenspan Sees Signs Recession is Ending, but Not Over

 Machine Tool Group of CitiCorp/CitiCapital Closes

  Call for Leasing Association Conference Cooperation

     Republic Leasing of Anaheim Reaction

         American Express, IBM in $4 Billion IT Services Pact

            CIT Group Financial Statement—You Be the Judge

              Streamlined Sales Tax Project/Sales Tax Simplification Meeting

                 Cambar Software Rolls Out Software Leasing Program

Willis Lease Finance Reports 4th Q & Full Year Profits in 2001

 

 

Whatever Happened to....

  Republic Leasing of Anaheim

                                                    Part III    Conclusion

 

### Denotes press release

 

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

Greenspan sees increasing signs recession is ending, predicts subdued rebound

 

By Martin Crutsinger ASSOCIATED PRESS WASHINGTON – Federal Reserve Chairman Alan Greenspan told Congress Wednesday that he sees increasing signs the country's first recession in a decade is coming to an end. He cautioned the rebound this year is likely to be a subdued one. Greenspan cited a variety of signs of strength in recent months, noting particularly strong gains in consumer spending. He said these hopeful signals led Fed policy-makers to call a cease-fire to their aggressive campaign of cutting short-term interest rates at their January meeting. "In the past several months, increasing signs have emerged that some of the forces that have been restraining the economy over the past year are starting to diminish and that activity is beginning to firm," Greenspan told the House Financial Services Committee. Delivering the Fed's semiannual economic forecast to Congress, Greenspan said the central bank expects the economy this year will grow by between 2.5 percent to 3 percent, when measured from the fourth quarter of last year. That would represent about half the pace of the normal rebound from a recession. Greenspan's cautiously optimistic tone was in line with Wall Street expectations and the view of most analysts that while the Fed is probably finished cutting interest rates, it will not feel any need to raise rates, at least before the latter part of the year. That will mean the federal funds rate, which the Fed pushed down to a 40-year low of 1.75 percent in a series of 11 aggressive rate cuts last year, will stay unchanged for a significant period of this year. Thus, short-term borrowing costs for millions of Americans will also be unchanged. The prime rate, the benchmark for many business and consumer loans, which is now at a 36-year low of 4.75 percent, is expected to remain at that level at least until midyear. Greenspan said he is looking for a subdued recovery because consumer spending, the normal driver for growth in the early months of a rebound, held up remarkably well last year, giving it less room to expand this year. The recession, which began last March and was worsened by the Sept. 11 terrorist attacks, was shaping up as one of the mildest in U.S. history, Greenspan said. He attributed this favorable outcome in part to advances in computer technology that give companies real-time information allowing them to adjust quickly to changing economic conditions. "Crucially, the imbalances that triggered the downturn and that could have prolonged this difficult period did not fester," Greenspan said. Greenspan agreed with the view of private forecasters that this recession probably will be "a significantly milder downturn" than others in the post-World War II period. Greenspan termed this development nothing short of remarkable, given the added shocks to the economy suffered with the Sept. 11 terrorist attacks. "If ever a situation existed in which the fabric of business and consumer confidence both here and abroad, was vulnerable to being torn, the shock of Sept. 11 was surely it," Greenspan said. Addressing the largest corporate bankruptcy in U.S. history, Greenspan said the collapse of energy giant Enron Corp. underscores how fragile companies can be when their main business rests not on the number of factories they own producing real goods but on the production of less tangible services, such as energy trading. "The rapidity of Enron's decline is an effective illustration of the vulnerability of a firm whose market value largely rests on capitalized reputation," Greenspan said. "Trust and reputation can vanish overnight. A factory cannot." The Fed's updated economic forecast largely mirrors the expectations of the Bush administration and private-sector economists. Greenspan said Fed policy-makers believe unemployment, currently at 5.6 percent, will rise in coming months even as the recovery gathers steam. That is the traditional pattern as employers hesitate in hiring back laid-off workers until they are convinced of the sustainability of the upturn. The Fed's forecast is for the jobless rate to peak at between 6 percent and 6.25 percent later this year. That would be significantly below the 7.8 percent jobless rate hit in the last recession in 1990-91. Inflation was forecast to be moderate this year, with consumer prices as measured by a price gauge in the gross domestic product to increase by about 1.5 percent, little changed from the small 1.3 percent gain of 2001. Among the signs of strength evidenced in recent months, Greenspan noted the aggressive reduction of excess inventories by businesses, which he said would set the stage for increased production in the future. Greenspan cited increased investment in high-tech sectors, which have been particularly hard hit by the recession, and the strong sales of homes and autos late last year and early this year.

 

 

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Machine Tool Group of CitiCorp/CitiCapital Closes

 

The machine tool group of CitiCorp, CitiCapital closed yesterday

( Monday ).  This was originally part of the old Copelco run by Phil Meyers,

based in Atlanta, Georgia.

.

This leaves the major player in this field to Machine Tool Finance.

 

  ( name with held )

 

Citicapital closed their office in Kennesaw, GA which handled this type of business.  This was originally the Copleco Capital group that was purchased by Citicapital.  Citicapital then took The  Associates sales reps which also did machine tools, merge the two groups together last year and handled all the credits, portfolio and collections from this office. So one less funder doing 300 basis points over T's.

 

 ( name with held )

 

 ( Another niche opens up for a regional lessor or division.  Leasing News

  is looking for more information on this closing, “on” or “off” the record.

editor )

 

 

 

Call for Leasing Association Conference Cooperation

 

(  originally to one association, but applies to all lease/finance associations )

 

UAEL Leaders,

 

I have recently had conversations with Joanie ( Dalton,  UAEL

executive director)  and Bette ( Kerhoulas, vice-president , UAEL)

with respect to our taking the initiative to arrange with Equipment Leasing

Association ( ELA ) and United Association of Equipment Leasing

Association ( UAEL) members to attend their ( ELA) Funding Symposium

\in Chicago.  The reason for this initiative is that there is no longer any dispute

 that the ELA Funding Symposium is the premier funding event and I am sure that a

moderate number of UAEL members who are not ELA members

would like to attend and would benefit from attending the

ELA Symposium.  Until the last few years ELA allowed

non-members to attend, but they have always had a restriction

on non-members attending more than one and they have recently

begun to enforce it.

 

In Monday’s (Feb. 25, '02) Leasing News you can find an exchange

between Kit ( Menkin, editor ) and myself which resulted in Michael Fleming

( president )of ELA sending me the following note:

 

         " Just to clarify.  Non-members may attend ELA

         Conferences at least once.  In addition, we have

         suggested to other associations that their members

         could attend conferences if the organization

         endorsed or promoted the conference."

 

I think it is in our interest to find out what Mr. Fleming means by

"endorse or promote" and, if possible, arrange for our members

to be able to attend ELA's Funding Symposium.  That is one

membership benefit that I would find appealing and I cannot

believe that I am alone in this respect.

 

Since I cannot negotiate on behalf of UAEL, I believe that I have

taken this project as far as I can on my own.  Please let me know

if there is anything I can do to further the process.

 

Richard

 

Richard C. Walker

Capital Equipment Leasing

President

========================

http://www.CELeasing.com

e-mail: rwalker@CELeasing.com

tel:  (858) 551-1214

fax:  (858) 459-9394

========================

 

( Excellent leadership.   Other associations should cooperate.  Each has their

own personality and following, plus in our survey, the great majority of

funders belong to four ( or more ) and many lessors/brokers and service

providers belong to two or three.  While mergers have been talked about

for years, the distinct ability of each organization and dues structure are

major hurdles---but to cooperate with conferences, such as allowing

non-members, or even yet, allowing non-members to attend at member’s

fees, is worthwhile for the community.  It appears Mr. Fleming has

opened the door, and perhaps there are others besides Mr.Walker who

would welcome more cooperation between associations---which may

lead to new members who don’t belong to any. editor )

 

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

 

 

Republic Leasing of Anaheim Reaction

 

I have been following the story of Republic Leasing of Anaheim. It is very

similar to the story of the demise of Charter Leasing (Beverly Hills, CA) at

the hand of its purchaser. A lot of good people lost jobs and a good company

disappeared from the landscape.

 

.

 

W. Russell Runnalls, CLP

Markay Financial Corporation

20407 Strathern Street

Canoga Park, CA  91306

(818)998-6125

(818)998-6127 (fax)

www.markay.com

russ@markay.com

 

--- 

 

It is not often that I agree completely with Rick Wilbur, however,

I do agree with his assessment of the wonderful folks in Portland.  It

always amazes me that someone can smile and stick a knife in your back at

the same time.  Rick and I also agree that the Dodgers are the greatest

baseball team ever.

 

Jonathan Hersholt

jonbh123@earthlink.net

COLDWATER CAPITAL CORP.

818-344-9660

818-344-9599 Fax

 

--- 

 

By the way.. I noticed that the following statement was made yesterday and

today regarding the McQuitty article...

 

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

That's not true. Tom was the first President (and only President) and did

start First Sierra along with myself, Bob Quinn and Sandy Ho.

 

What made someone think otherwise?

 

 

 

Fred Van Etten

Executive Vice President

Redstone Bank N.A.

713-316-3675

www.Redstonebank.com

 

 

(When Charlie Lester, now LPI Financial, who is also the Leasing News Advisory

Board, were writing the story about First Sierra, at the time

of the purchase by American Express, I remember him telling me that Bob Quinn

was the man who came up with the idea and concept of First Sierra being

an industry aggregator. He sold Depping on the idea; Depping liked it

and went to the Redstone Group who raised the capital to make it happen.

 

 

This is from the actual article, and you are correct, of course:

“The company was basically started by Thomas J. Depping. From 1991 to May 1994, Mr. Depping served as President of SunAmerica Financial Resources, the equipment leasing and financial division of SunAmerica, Inc. Sandy B. Ho, Executive Vice-President and Chief Financial Officer has been with the company since 1995, along with Fred Van Etten...

 

” . From that meeting in 1993 to April 1994, Tom Depping sold some movers and shakers in Houston to raise the capital to start First Sierra. When Bob Quinn left ATT in May, 1994, he and Tom along with Fred Van Etten, Pete Smith and Sandy Ho actually began the operations at First Sierra.”

 

I have confirmed with Charlie you are a “mover and shaker in Houston.”

 

 

 

   

 

____________________________________________________________________

 

Whatever Happened to....

  Republic Leasing of Anaheim

 

     Part of McQuitty’s solution is to name Fred Van Etten, who was sent

 to fire him as branch manager, to become the CEO and replace Thomas

Depping.

 

Part III—Conclusion of the 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.

 

The idea was to acquire 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

 

 

   (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 in June, 2000.  Here is the conclusion of the letter:)

 

“MR DEPPING:

“**An Unsuitable Candidate to Continue in the Capacity of CEO**

 

 

 

 

“Currently, SierraCities has less sales reps company wide than I had at Republic and many are quitting daily. I believe Tom Depping’s comfort level is zero. 1-he believes them to be high maintenance — which many are — and a waste of money — which they are not. 2. he believes he can cheaply and easily reproduce their efforts via the internet and thereby avoid expending any resources on sales associated expenses — commissions and the like. This is further substantiated by the $1 million he handed over to Intuit, in an asinine move, to get linked to its website, as if the business would come flooding in. An extremely naive belief and evidence the man is not intimate with the marketing side of our business.

 

“Are you aware that of the $100 million in deals that he was so proud to announce to the market at the shareholders meeting as being originated via the e-commerce platform, 99 % are for loans that no one wants, as they cannot be pre-paid and the rates are comparably high compared to their credit cards, which they CAN pre-pay?

 

“.... It is desperately tying to staff a call center with minimum wage employees to do what it takes trained closers to do. Are you aware that SierraCities call center consists of four lowly paid individuals off the street with no background in sales — proof enough the e- commerce internet strategy is a dismal failure and is ALL HYPE and that Tom Depping and Only professional sales reps, of which we had hundreds, could convert these loan approvals into fundings, if it was even worth it, or possible.

 

 “I’ve heard the current funding rate is in the single digits — the 1 % —2 % range. For all its success, it would’ve been cheaper just to tie our engine to LendingTree.com or B-Credit, as we would be exposed to more people shopping rate — because that’s all people do on the internet...shop rate!. We’ve sacrificed our entire sales force and branch network and thrown all this money into the technology black hole and to what end? — to originate over-priced loans that will never be closed. This is clear evidence of a rudderless ship.

 

MR DEPPING:

**An Unsuitable Candidate to Continue in the Capacity of CEO**

 

 

“Almost every misstep I have recounted thus far can be directlyand indirectly traced to the hand of Tom Depping and let me be the first to say it---- he must go, for the sake of the shareholders.

 

“...Whenever there is dissent, a difference of opinion, or a policy baffle of one sort or another, anyone passionate enough to challenge or resist Tom Depping or engage in a healthy debate in order to flesh out the potential weaknesses in theargument, finds themselves terminated.

 

“One need go no further for evidence of this than to look atall the members of senior management that have vacated Chase Tower or other regions in the last 2 years: Quinn; Hall Sr.; Hall Jr.; Brazier; Litt; Lester; Barash; Zaretsky; Madonna; Hayden; Borland; Cetto; Hayes; Mohammed; Hale; Nino; Darrington; Wing; Phung (add today Jim Constable, Hal Hayden, Bob Henchey, Jeff Mayberry, Pete Smith, Jim Raeder, Van Etten, even Ruth Spiers , Executive Assistant to

Depping ,who resigned after 19 years with him at three different companies, allegedly over “ethics.”. Editor); et al., not to mention all the branch manager’s, ether VP’s and acquirees terminated, or quit for one reason or another. (Tim Cello offered to buy his branch back and perhaps in an ill-judged gambit, quit to force Houston’s hand and then later recanted.

 

 

“ He has the best performing portfolio in the company and Tom Depping wouldn’t allow him back, or even entertain the buyback of his branch). Rather, Tom Depping closed it down. In this list are three heads of credit and two heads of documentation. If nothing else, sir, that’s all we are, a credit and documentation firm (currently the average tenure in credit / doc / funding operations is no longer than six months). This is not only disturbing, it could prove fatal. All the level headed, leasing-experienced senior managers have gone and have been replaced by weak, inexperienced and ineffectual low level former assistants. And when new people are hired, they are non-leasing accountant types unfamiliar with the industry. You can’t run a public leasing company like this — continually replacing leasing experience with non-leasing experience.

 

 

“Oren Hall at least demonstrated acumen for the origination side of our business

... He also knew how to run the branches and to keep an eye on the ball and keep focused on the task at hand. No doubt he ran afoul of Tom Depping and then he too was gone.

 

“Tom Depping prefers to remain secluded, distant and be accountable to no one- Rarely is he in the office and when he is, it is rarely longer than 4 hours. There are never any senior management group meetings, as I suspect he abides by the theory of divide and conquer. Never are the executives assembled together in one room, I suspect, for fear of their collective will on strategic decision-making and the potential for broad debate on company direction. He is afraid to be challenged and thus always meets individually with his senior management in an effort to control them. This is extremely unhealthy for the corporation and further, it is indicative of a leader insecure with himself.

 

“Tom Depping is not salesman, is not particularly inspiring in person and is wanting as a public speaker. These are all qualities necessary in a successful CEO of a public company and especially of a sales-oriented firm...perhaps another reason he is more comfortable with the e­-commerce model.

 

“Contrary to what Depping and Sabel believe, now more than ever, we need to focus on being a sales rep based origination machine. Tom Depping prefers to remain secluded, distant and be accountable to no one- Rarely is he in the office and when he is, it is rarely longer than 4 hours. There are never any senior management group meetings, as I suspect he abides by the theory of divide and conquer.

 

“Never are the executives assembled together in one room, I suspect, for fear of their collective will on strategic decision-making and the potential for broad debate on company direction. He is afraid to be challenged and thus always meets individually with his senior management in an effort to control them. This is extremely unhealthy for the corporation and further, it is indicative of a leader insecure with himself.

 

“Tom Depping is not salesman, is not particularly inspiring in person and is wanting as a public speaker. These are all qualities necessary in a successful CEO of a public company and especially of a sales-oriented firm...perhaps another reason he is more comfortable with the e­-commerce model. Furthermore, contrary to what Depping and Sabel believe, now more than ever, we need to focus on being a sales rep based origination machine.

 

“...Tom Depping has been selling off chunks of the portfolio, for the gain, for some time now ( and buying poor quality ones — see CAFS), In addition, he has been buying large amounts in-house on the warehouse lines, over and above the safe credit limit, solely to sell off to institutions and bulk buyers to get the gain. And when there isn’t enough of this paper, rather than buy good paper in4Ttouse to increase the size of the portfolio, it’s going right on the syndication lines and sold off to the institutions to get the gain and fool the market He’s become a “gain junkie" to pad his numbers and this gain is being spun as the profit from an aging portfolio and proof that originations from e- commerce are on the rise.

 

“In reality, profits and originations are down considerably. That we missed our numbers, is a capital crime. But why did we miss them? It had nothing to do with the market. The paper he was trying to sell was so bad, no one wanted it. He had spent all our income on other projects and was relying heavily on selling our assets to hit his numbers... We paid $500,000 to change our company name to SierraCities!!!

 

““*       in an act of desperation to meet the  ‘99 projections and notwithstanding strong arguments to the contrary, the company acquired CAFS from Prime.

 

“We know why they bought it, but the recommendation was to pay zero forth company and if we must, just take the portfolio, even though it consisted of poorly documented deals with immense liability at below market prices. They paid $2 million to four individuals who were responsible for bankrupting their previous owner, TNJ (before Prime). Why?

 

“A few facts on CAFS:

 

“---the portfolio deal included about $12 million in a flooring plan that we have a home for, but Depping was so desperate, he took it and serviced it out of equity.

 

“---Depping bought a  company he knew he couldn’t fund. This, to me, is All the findings are still being handled out of equity. Does Last month alone they funded $10 million of this paper out of equity at below market prices. How did they manage this record month? They have the lowest rates out there and no one else wants the paper.

 

 

“Does the board know this and do they also know the yields are so low, 4, that we are actually losing money. All this to fool the market short term boost with no regard for the long term consequences.

 

In his letter to Mr. Solomon, Mark McQuitty makes a series of suggestions and ideas on how to turn the company around.  Perhaps this paragraph very close to the closing of the 18 page letter sum up his position at the time:

 

“Mr Solomon, perhaps you could step in as Chairman. What this company needs right now is direction, stability and a sense of permanency. Tom Depping is lost and the market knows it.

 

“Mr. Van Etten is a competent man and equally respected in the company and would make a fine interim CEO, if not a permanent one. I know a well respected leasing CFO who might be available (ex Colonial] GE man) and there’s none finer nor more respected than Gebhardt in Treasury. That’s a good team. At least, this is an option- There’s only one obstacle standing in the way. Thomas Depping.”

 

For several years, Leasing News has tried to obtain a comment from Mr. Depping, and also others involved in the then First Sierra/Sierra Cities operation.  We welcome their comments, reaction, and will not edit anything that they communicate.  We also invite everyone to join Mark McQuitty tomorrow

at noon, California time  www.leasingnews.org/newsmaker.htm

 

 

                    Noon Tomorrow, California Time, PST,  Thursday   www.leasingnews.org/newsmaker.htm

 

 It is easy to log on, got the to site, create your name and password and join

   Mark McQuitty On Line---LIVE !!!

 

______________________________________________________________

 

American Express, IBM in $4 Billion IT Services Pact

By David Aponovich      Internet.com

American Express has signed a $4 billion, seven-year technology services deal with IBM, handing over to Big Blue the responsibility of managing more than a billion daily transactions and most of the financial-service giant's global IT operations.

American Express, whose far-reaching operations include charge cards, investment services, insurance and travel agencies, says the deal will help it save hundreds of millions of dollars in IT costs over the next seven years.

According to the companies, effective March 1 IBM will provide American Express with "utility-like access to its vast computing resources," promising to improve the quality, performance and delivery of Amex technology systems.

As part of the switch, approximately 2,000 American Express technology staffers in the U.S. and overseas will allowed to transfer to comparable positions at IBM, with the U.S. transfers beginning in March and the international transfers beginning in May. It was unclear what percentage of Amex's IT staff that represents.

The deal also represents one of the largest IT outsourcing deals to date, and is a strong sign that large enterprises are taking seriously handing over costly operations to other providers who are responsible for managing IT services as demand for them grows or shrinks.

In this case, IBM will oversee American Express's worldwide computer systems and Web sites, providing skills and computing resources on a proactive and "on-demand" basis. IBM will provide data center and computer services from Amex facilities in Phoenix and Minneapolis and will deliver technical support services on-site at Amex facilities worldwide.

American Express will retain the core parts of its technology operations, including IT strategy, strategic technology relationships, the development and maintenance of applications and databases and the management of its technology portfolios.

The deal is a major win for IBM and its services business; American Express has one of the largest IT infrastructures in the world. In addition to cutting IT costs by hundreds of millions of dollars, American Express officials say that partnering with IBM, with its varied and vast technology resources, "will provide (the company) with the flexibility to adjust rapidly to changing business needs."

"Our goal in this partnership is to ensure that American Express is the world's best user of information technology," said Glen Salow, executive vice president and chief information officer for American Express. "In technology operations, that means computing resources are available on demand at a predictable, best-in-class cost and are delivered with the highest levels of quality. IBM has the unique combination of skills, processes and economies of scale to meet these requirements and ensure our IT systems foster business growth."

 

Yes You Can!

 

Come to Orlando April 11 - 14, 2002 at the Caribe Royale and hear John

Winchester, CLP present the most requested repeat seminar from New Orleans,

"Working with Local Banks".  John will give you a detailed game plan to

develop local bank funding.  Register now at www.naelb.org

http://www.naelb.org

 

Maria Turner

mariat@clemonsmgmt.com 

 

 

CIT Group Financial Statement—You Be the Judge

 

http://biz.yahoo.com/fin/l/c/cit_qc.html

 

http://biz.yahoo.com/fin/l/c/cit.html

 

http://biz.yahoo.com/fin/l/c/cit.html

 

 

Equity appears there, but what about the cash flow?   You need the footnotes, I think,

plus what the department “heads” forecast.  A pro forma would be very interesting.

 

Readers who understand financial statements, let Leasing News here from you

on your financial analysis of this company. “On” or “off” the record.

 

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

 

 

Streamlined Sales Tax Project/Sales Tax Simplification Meeting

 

The next meeting of the Streamlined Sales Tax Project and of the Sales Tax Simplification Implementing States will be held on

Thursday through Saturday, March 14-16, 2002 in Dallas, Texas.

 

The Streamlined Sales Tax Project (SSTP) meeting will begin at 8:30 am on Thursday and conclude at 1:00 pm on Friday.

The session will focus on continuing work on various projects now underway, including definitions, uniform forms and other

issues as well as continued development of relevant issue papers.  A more complete agenda will be available soon.

 

Delegates to the Sales Tax Simplification Implementing States will meet beginning at 2:00 pm on Friday, March 15 and

conclude by mid-afternoon, Saturday, March 16, 2002. The session will be devoted to a continuing review of the issues in

developing an interstate sales tax agreement, with a focus on issues related to developing a common definition of food.

 

Both of these meetings will be held at the Le Meridien Hotel located at 650 North Pearl Street, Dallas, Texas.  A block of

rooms has been set-aside at the hotel.  To make your reservations, call 214/979-9000 and ask for the Federation of Tax

Administrators Streamlined Sales Tax room block.  The rate is $89 single/$109 double per night plus tax (currently 15

percent).  The cut-off date for making reservations is February 18, 2002.  Rooms have been blocked for Wednesday through

Saturday evening.

 

There will be a registration fee for each of these meetings.  The fee for the Streamlined Sales Tax Project meeting is $175; the

fee includes a continental breakfast and lunch on both Thursday and Friday.  Breaks will also be provided.

 

The fee for the Implementing States meeting is $150; the fee includes lunch on Friday, and a continental breakfast and lunch on

Saturday.  Breaks will also be provided.

 

Persons attending both meetings are required to pay a fee of $300.

 

You are encouraged to register (and pay if you wish) online at <http://www.taxexchange.org/meet/0302sales.taf>.

 

 

Registration form for the Streamlined Sales Tax Project and of the Sales Tax Simplification Implementing States to be held on Thursday through Saturday, March 14-16, in Dallas, Texas.  If at all possible, you are encouraged  to register (and pay if you wish) online at <http://www.taxexchange.org/meet/0302sales.taf

 

Dennis Brown

DBROWN@ELAMAIL.COM

 

 

 

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

 

Cambar Software Rolls Out Software Leasing Program

 

 

CHARLESTON, S.C

 

CSI Teams With ECCi to Offer Financing for Axis Fulfillment Suite

 

Cambar Software Inc. (CSI) today announced a business alliance with Equipment Consulting Capital Inc. (ECCi), a provider of asset-based finance solutions. 

 

This alliance will enable CSI's clients to lease its Axis Fulfillment Suite through a financing plan that best matches their cash flow requirements.

 

CSI's Axis Fulfillment Suite incorporates robust solutions for Web commerce and order, warehouse and financial management processes. Designed to provide a central core around which supply chain execution revolves, the Axis Fulfillment Suite offers a real-time, flexible solution that enables the configuration of functional options to best suit business rules and processes. The applications provide powerful technology and robust functionality to revolutionize the planning, coordination and execution of order, warehouse and financial management operations.

 

"Our clients recognize that the Axis Fulfillment Suite provides value by improving new and existing client relationships, reducing operating costs and improving organizational efficiencies," said Amy Mahoney, CSI's director of finance. "By working with a financing partner such as ECCi, our clients can realize the benefits that our solutions provide without a large outlay of cash up front. ECCi has the experience, strength and diverse funding resources needed to design leasing programs for a broad range of customers."

 

ECCi's experienced team of professionals understands the value that technology brings to an organization and adds value to CSI's clients by enabling them to:

 

--Conserve capital and increase their return on investment;

 

--Provide 100 percent financing for software, maintenance and integration;

 

--Customize finance programs to meet cash flow needs;

 

--Establish Master lease lines of credit to service ongoing implementation; and

 

--Match savings with the lease payment so the solution pays for itself.

 

About Cambar Software Inc.

 

Cambar Software Inc. (CSI) is a leading provider of software solutions that streamline supply chain efficiency. Founded in 1981, CSI has spent over 20 years driving solutions - from supply chain consulting and systems integration, to eCommerce development and application hosting - that overcome challenges within the supply chain. CSI provides robust, integrated Web commerce, order management, warehouse management and financial management solutions that power and optimize supply chain execution across the enterprise. For more information, visit www.cambarsoftware.com.

 

About Equipment Capital Consulting Inc.

 

Equipment Capital Consulting Inc. (ECCi) 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.

 

CONTACT: 

 

Cambar Software Inc., Charleston

 

Terri Deuel, 800/756-4402, tdeuel@cambarsoft.com

 

or

 

Shoor & Company

 

Ashley Sizemore, 803/699-0710, asizemore@shoorpr.com

 

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Willis Lease Finance Reports Fourth Quarter and Full Year Profits in 2001

 

 

SAUSALITO, Calif--Willis Lease Finance Corporation (Nasdaq:WLFC) today reported a profitable fourth quarter and full year in 2001 despite the financial distress in the aviation industry. For the full year ended December 31, 2001, the company's income from continuing operations grew 40% to $7.6 million, or $0.86 per diluted share; net income was $6.9 million, or $0.78 per diluted share. Fourth quarter income from continuing operations totaled $420,000, or $0.05 per diluted share; net income totaled $461,000, or $0.05 per diluted share. Pre-tax earnings from continuing operations excluding gains or losses on sale of equipment increased almost eight-times to $6.4 million in 2001 and increased 70% in the fourth quarter to $1.1 million compared to the like periods in 2000.

 

In 2000, income from continuing operations was $5.5 million, or $0.72 per diluted share, and net income was $7.8 million or $1.03 per diluted share. In the fourth quarter a year ago, income from continuing operations totaled $401,000, or $0.05 per diluted share; net income totaled $2.2 million, or $0.28 per diluted share. Pre-tax earnings from continuing operations, excluding gains or losses on sale of equipment, were $813,000 in 2000 and $669,000 in the fourth quarter of 2000.

 

Current Market

 

"The fourth quarter of 2001 has been among the most difficult that we have faced in our history," said Charles F. Willis, President and CEO. "The economic recession and the September 11th shock to the aviation industry has resulted in more of our engines being off-lease and this has driven lease revenue down 8% in the fourth quarter of 2001 compared to the immediately preceding quarter. Despite these extraordinary conditions we reported a profitable quarter and full-year when many others in the aviation industry are posting substantial losses."

 

Fourth quarter lease revenue was $14.6 million, up 14% from the fourth quarter of 2000 but down 8% from the third quarter of 2001. "During the fourth quarter, one of our largest customers, Canada 3000, filed bankruptcy, ceased operations, and returned five leased engines and will return a parts package to us," said Donald A. Nunemaker, Chief Operating Officer. "Equipment leased to Canada 3000 accounted for approximately 7% of the net book value of our lease portfolio. Two of the five engines taken back from Canada 3000 were placed on lease with other customers almost immediately.

 

"Remarketing engines that are off-lease or coming off-lease is presently our absolute top priority -- and we have had good success. Of the thirty-five engines we placed on new leases during 2001, eighteen were placed between September 11th and the end of last year. Despite the positive results of remarketing, the portfolio utilization rate has fallen to 85%, its lowest level in a decade. A further decline is likely, but we believe that we are close to the bottom of this unusual downturn. Since September of last year, passenger traffic continues to improve, and from airlines we talk to, we sense that many are beginning to have a more positive outlook. We expect our utilization rates will gradually begin to improve as the year progresses," said Nunemaker.

 

Results from Continuing Operations

 

Lease revenue in the fourth quarter was $14.6 million, a 14% increase over the fourth quarter of 2000, but an 8% decline from the third quarter of 2001. For the full year, lease revenue increased 23% to $60.5 million compared to the year 2000.

 

For the full year 2001, gains on sales of leased equipment dropped to $5.6 million, which included a $955,000 loss in the fourth quarter of 2001, compared to gains of $8.1 million in 2000, with no gains or losses in the fourth quarter of 2000. The fourth quarter net loss on sale of leased engines was generated from the sale of six engines, three of which were older model turboprop engines sold at a combined loss of $704,000. The turboprop engines were acquired four years ago as part of an aircraft lease transaction and are not part of WLFC's current product line. Of the remaining three engines, two were sold at or slightly above net book value, while the third was sold for part-out at a loss of $267,000.

 

Pretax profits before gains and losses on sale reached $1.1 million in the fourth quarter, an increase of 70% from $669,000 posted in the fourth quarter a year ago, but less than the  $2.5 million posted in the third quarter of 2001. For 2001, pretax  profits before gains increased to $6.4 million, compared to $813,000  in 2000.

 

Fourth quarter general and administrative expenses decreased 10% to $2.9 million, compared to $3.3 million in the fourth quarter of 2000. Higher legal, accounting and insurance expenses were offset by reduced personnel costs. G&A expenses decreased to 20% of lease revenue this quarter, compared to 25% of lease revenue in the same quarter last year. For 2001, G&A expenses increased 10% to $13.1 million compared to $11.9 million last year. G&A expenses decreased to 22% of lease revenue in 2001 compared to 24% for 2000.