Kit Menkins Leasing News www.leasingnews.org Wednesday, January 23 ,2002
Tyco to Separate Into Four Independent, Publicly Traded Companies
Leasing Association Membership Numbers
Classified Ad---Two Attorney/One Recruiter
Energy National Resource Organization of Nigeria
(Enron Chief Quits to Join ENRON)
Advanta Business Cards Results Up 40% Year On Year
ePlus to Speak National Association of Procurement Professionals
Capital Bancorp Reports 4rth Qrtr/Full Yr 2001 Fin. Results
so well covered; no margins, wont stay in business in this economy. Editor)
Tyco to Separate Into Four Independent, Publicly Traded Companies
PEMBROKE, Bermuda, -- Tyco International Ltd. (NYSE:
TYC, BSX: TYC, LSE: TYI) yesterday announced a plan to unlock tens of
Tyco believes these actions will lead to substantially
greater total shareholder value by creating independent companies that
will be more appropriately valued by the market. Each new public company
created from these transactions will be a proven industry leader, and
each will go forward with a global market position; a
the plan, unanimously approved by the company's Board of Directors,
said it expects to complete the first of these IPOs -- Tyco Capital
addition to creating substantial value for Tyco shareholders, these
said its intention is to offer to repurchase most of the public bonds
is a bold, shareholder-value driven plan that we believe will create
as independent, public companies, each of these businesses
Kozlowski continued, "I am extremely proud of Tyco's performance.
plan announced today is designed to close that gap -- the gap between
Business Unit Overview
pro forma 2001 revenues of approximately $17.6 billion, Tyco's
of the components being utilized for the basic infrastructure of
Dennis Kozlowski will be Chairman and CEO, and Mark Swartz will be CFO, of the Security & Electronics company.
world's leading provider of electronic security services and event
Electronics' products have potential uses wherever an electronic,
is the second largest medical device provider in the world and
Healthcare manufactures and markets a broad range of wound care,
Meelia, who has served as President of Tyco Healthcare since 1995,
May 2001, Tyco announced an agreement to acquire C.R. Bard, Inc., a
manufactures, markets and distributes its products directly to
Protection & Flow Control
is the world's leading provider of fire detection, prevention and
fire protection units design, install and service automatic fire
flow control operations manufacture valves in a wide variety of
Protection & Flow Control will be run by Chief Executive Officer
Capital is a leading, global source of financing and leasing capital
Capital has established itself as the financing leader in a variety
Gamper will continue to serve as President and Chief Executive Officer
its acquisition by Tyco on June 1, 2001, Tyco Capital has divested
Classified Ad---Two Attorney/One Recruiter
Our first attorney ads:
city: Los Angeles
submit1: Submit Your Attorney Posting
area covered: California - statewide
description: 5-attorney creditors rights lawfirm, in biz 25 yrs +, specialize all
aspects of creditor representation. Primarily represent equipment lessors
&> funders, plus collection and creditor rep. in bankruptcy.
areacovered: NY Metro and National
description: Attorney specializing in equipment lease matters for at least
10 years with a 50-State operating network of attorneys experienced in
Our second recruiter listing:
"Recruiters International, Inc., a boutique executive search firm, would
like the opportunity to formally introduce ourselves to any individuals
in the equipment leasing and commercial finance industries needing
assistance in securing new employment.
The restructuring of the industry has left many unemployed or uncertain
of their future. Please contact RII to see how we can assist you.
Please forward our contact information to anyone you know who may be
interested in securing new employment currently or in the near future, I
am sure they would also appreciate the introduction.
To learn about RII, you may contact us via e-mail. We look forward to
hearing from you!
Fax: (504) 571-1040
Recruiters International, Inc."
ENRON CHAIRMAN QUITS TO JOIN E.N.R.O.N.,
ENERGY NATIONAL RESOURCE ORGANIZATION of NIGERIA
Asks For Your Confidential Assistances, Bank Accounts Numbers
Mastermind Behind All Nigerian E-Mail for Money Transfers
Lagos, Nigeria (SatireWire.com) Saying he had finally found a venue worthy of his business model, Kenneth Lay resigned today as chairman of Enron to join the Energy National Resource Organization of Nigeria, which needs your confidential assistance in the transferring of offshore funds into a new company of Nigeria that will provide incredible profit on paper by the trading of energy contracts.
According to an email sent to undisclosed recipients by Lay, who now identifies himself as "name withheld , he is interested to do business with leasing companies because of credible reports that they will recognize this opportunity of great wealth and they are not too smart. All that is required, the letter stated, is your banking accounts number and your purchase of stock of this energy trading company that has no traceable losses or shell companies or indictable irregularities of any kind.
Dr. Tunde Momoh, director of the Nigerian National Petroleum Ministry, which is coordinating the E.N.R.O.N. initiative, said the addition of Lay to his staff has given a boost to all Nigerian government ministries, which traditionally earned revenues by asking you to provide your bank account number so as to make possible the transfer of $US50 million from a soon-to-be-exposed Ministry fund. For your assistance, you would receive 20 percent of these moneys.
"We are thrilled to have now someone of Mr. Lay's experiences," said Momoh a Bib Bee. "It is rare to find a non-Nigerian who is familiar with our methods and objectives, and his idea for the creating of the energy trading company E.N.R.O.N. is inspired."
"When I am first hearing of it, I admit it has the sound of crazy," Momah added, "but (Lay) is telling us that based on his experiences, this could work for years.
I cant wait to start sending e-mails to leasing companies."
Contacted at his confidential fax number, Lay said he was excited by the change, and predicted he would adapt easily to Nigerian methods. "It's a new country and I've had to learn to muddle a bit my syntax, but the basic business approach is something we both have in common," he said. "I only wish I had started here first."
Lay added that, as he did at Enron, where he served as both chairman and chief executive officer, the new job will enable him to take part in several Nigerian businesses, including stints as Dr. Chukwuma Mbaduwa, an accountant in the Nigerian Transport Ministry, Abu Idomu, a top official of the federal government contract review panel, and the Lady Maryam Abacha, wife of late Gen. Sani Abacha, ex-military head of state of Nigeria, whose assets have been frozen except for $50 million she stuffed in a box labeled as photographic materials which she deposited in a security company where her brother-in- law works as general manager and she now needs your assistance in retrieving these moneys.
Be prepared for a personal e-mail from Mr. Lay asking you to help him remove
money from Nigeria to help his beleaguered company in the United States.
( courtesy of Patricia Galich firstname.lastname@example.org )
Advanta Business Cards Results Up 40% Year On Year
SPRING HOUSE, Pa--Advanta Corporation (NASDAQ:ADVNB; ADVNA) today announced fourth quarter net income for Advanta Business Cards of $11.4 million, up 48% from $7.7 million for the fourth quarter 2000. Advanta Business Cards net income for full year 2001 rose 40% to $39.1 million as compared to $27.9 million for 2000. Results for 2000 are based on an effective tax rate of 38.5% for comparative purposes.
Advanta Corp. reported consolidated net income for the quarter of $7.8 million or $0.30 per share for Class A and Class B shares combined on a diluted basis. Included in consolidated net income for the quarter is a $2 million pretax asset valuation charge associated with the Company's venture capital portfolio due to the continued weakness in the current venture capital market. For full year 2001, the Company reported a net loss of $70.5 million or $2.75 per share on a diluted basis for its Class A and Class B shares combined, reflecting results of discontinued operations, asset valuation and restructuring and other unusual charges recorded in prior periods.
Operating results from continuing business segments were $0.42 per share for the fourth quarter of 2001 and $1.41 per share for the full year 2001 for Class A and Class B shares combined on a diluted basis.
"We have met our 2001 earnings goal during an uncertain economy and unusual times. While we are proud of this accomplishment, we are now focused on seizing the tremendous opportunity afforded to Advanta and its shareholders by the small business market during 2002 and beyond," said Chairman and Chief Executive Officer Dennis Alter. "Our intent is to build an enduring, highly profitable and growing enterprise while maintaining 20% earnings growth and approximately a 2% return on managed receivables."
For the quarter, Advanta Business Cards earned an after tax return on average managed receivables of 2.3% on an annualized basis as compared to 2.2% for third quarter 2001 and 2.0% for fourth quarter 2000. The increased returns are principally due to increases in risk-adjusted margin, from 12.7% for the fourth quarter of 2000 to 12.9% for the third quarter of 2001 and 13.5% for the fourth quarter of 2001. The improvement in risk-adjusted margin during the quarter resulted from the favorable interest rate environment which more than compensated for an anticipated increase in charge-offs. Consistent with the forecasted seasoning of the business card portfolio and the current economic environment, over 30 day delinquencies were 6.7% at December 31, 2001 and charge-offs were 8.7% on an annualized basis for the quarter. Advanta Business Cards ended the year with managed receivables of $2.04 billion, as compared to $1.66 billion at year end 2000.
( for those who report not being able to contact Advanta Leasing for problems, payoff,
disputes, you might want to try these numbers included in the press release: )
Full Report and Statistical Supplement Available at www.advanta.com -
Vice President, Investor Relations
Vice President, Communications
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ePlus to Speak at the National Association of Procurement Professionals--NAPP--2002 Conference
ePlus Executive Addresses Improving Profitability and Reducing Capital
Expenditures by Integrating eProcurement with Critical Back-Office
ePlus, Inc., (Nasdaq:PLUS), a leading provider of business solutions and services, announces that Kley Parkhurst, Senior Vice President, will speak today at the Tenth Annual NAPP Conference being held in Marco Island, Florida. The theme of this year's conference is, "eProcurement in the New Economy: Transformation, Integration, Collaboration."
Mr. Parkhurst will deliver a presentation to conference attendees addressing the issues faced by companies continually striving to maximize profitability given fluctuating economic conditions and changing business models. Taking into account the collaborative nature of eCommerce, Mr. Parkhurst will address how the benefits of an eProcurement solution extend across the entire enterprise by integrating business processes and associated enterprise functionality.
"Analysts predict that in the next four years, eMarket activity will grow to at least $1.5 trillion in total online trade. Today's businesses need to capitalize on the growing technology market to bring more and more business processes online," said Mr. Parkhurst. "By streamlining purchasing cycles and addressing internal processes such as fulfillment, asset and back-end business and financial operations, a substantial ROI will boost the bottom line significantly."
With over 10 years of experience and sustained profitability, ePlus offers total business process automation through the seamless integration of products and services. ePlusSuite consistently helps clients achieve their goals by leveraging a combination of collaborative disciplines such as business and financial services, asset management, eProcurement, and IT Sales and Services.
Those interested in receiving a copy of Mr. Parkhurst's presentation, "Integrating Critical Back Office Business Processes to Improve Profitability" can do so by visiting the ePlus website at http://www.eplus.com/news/
A leading provider of Web-based e-procurement, asset management, financing, leasing, sourcing, and eContent technology and services, ePlus delivers comprehensive and high-value business solutions. The ePlusSuite of products and services, including Procure+, Manage+, Finance+, Service+, Content+, and ePlusMarket, helps businesses around the world dynamically streamline, improve and gain management control. ePlus solutions integrate and automate each aspect of the supply chain process: from requisition to approval, fulfillment, financing and asset management, delivering the highest return on investment.
ePlus(TM), ePlusSuite(TM), Procure+(TM), Manage+(TM), Service+(TM), B14ZR(TM), OneSource(TM), OneReq(TM), CLG(TM) and MarketBuilder(TM) are trademarks of ePlus Inc. Finance+(SM) is a registered service mark of ePlus inc. ePlus Jumpstart(SM), and ePlus Content Framework(SM), are service marks applied for of ePlus.
Founded in 1990, the company is headquartered in Herndon, VA and has more than 30 locations in the US. For more information, visit our website at www.eplus.com, call 800/827-5711 or email to email@example.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts may be deemed to be "forward-looking statements". Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation, general economic conditions; the possibility of defects in our products or catalog content data; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results; our reliance on our management team; and other risks or uncertainties detailed in our Securities and Exchange Commission filings.
ePlus, inc., Herndon
Lisa Savino, 631/775-1261
Pacific Capital Bancorp Reports Fourth Quarter and Full Year 2001 Financial Results
( Parent of Leasing Division SANTA BARBARA BANK & TRUST)
SANTA BARBARA, Calif.--( --Pacific Capital Bancorp (Nasdaq:SABB), a multi-community bank holding company with $3.96 billion in assets, yesterday announced financial results for the quarter ended December 31 and the full year 2001.
For the fourth quarter of 2001, the Company reported earnings of $10.3 million, or $0.39 per diluted share. This compares with $12.3 million, or $0.46 per diluted share, reported for the fourth quarter of 2000. Reported earnings for the full year 2001 were $56.1 million, or $2.11 per diluted share, compared to $51.5 million, or $1.93 per diluted share, reported for 2000. Full year 2000 core earnings (reported earnings exclusive of merger-related expenses) were $56.8 million, or $2.13 per diluted share.
Based on reported earnings, the Company's return on average equity and return on average assets for the fourth quarter of 2001 were 12.48% and 1.07%, respectively, compared to 16.95% and 1.35%, respectively, for the fourth quarter of 2000. Full year 2001 return on average equity and return on average assets were 17.46% and 1.45%, respectively, compared to 18.06% and 1.40% for 2000. Based on core earnings for 2000, return on average equity and return on average assets were 19.93% and 1.55%, respectively.
"In almost all respects, we were able to meet or exceed the fourth quarter targets we set at the time of our last earnings announcement, which enabled us to come in at the high end of the range of our earnings per share expectations," said William S. Thomas, Jr., President & Chief Executive Officer. "We achieved this despite the impact of a 50 basis point reduction in the Federal Funds rate on our net interest margin, which was 25 basis points more than we had anticipated.
"In particular, the company is responding well to our mandate for tighter expense controls. This is illustrated by the improvement we achieved in our efficiency ratio for the fourth quarter -- 57.3% compared with 62.2% in the third quarter.
"The economic conditions of our Central Coast markets and the impact on our loan portfolio was close to what we had expected for the fourth quarter. The credits we had previously identified as presenting increased risk in the hospitality, tourism and commercial segments were reclassified into less favorable categories. Aside from those areas, our loan portfolio continues to demonstrate good stability and we are seeing quality lending opportunities in all areas of our markets.
"During the fourth quarter, we also seized the opportunity to grow our market share in the northern portion of our geographic footprint, and we will be able to do so without incurring the costs of adding new branches. Our First National Bank subsidiary signed an agreement to acquire the loan, deposit and safe deposit accounts of the Monterey and Watsonville branches of California Bank & Trust. These accounts will be combined with nearby First National branches in those communities in March 2002, and this transaction will be accretive to our earnings in 2002," said Thomas.
During the fourth quarter of 2001, total interest income was $61.7 million, compared with $71.9 million in the same period last year. This decrease occurred as the lower rates earned on loans offset the positive impact of higher loan balances.
Total interest expense for fourth quarter 2001 was $18.7 million, compared with $28.1 million for the fourth quarter of 2000, as rates on deposits also decreased.
Net interest margin for the fourth quarter 2001 was 5.01%, compared with 5.39% in the same quarter of 2000, and 5.16% in the third quarter of 2001.
"As the dramatic cuts in interest rates have subsided, the rates on our deposits are catching up to the rates on our loans, so we believe we have hit the low point with respect to our net interest margin," said Thomas, "assuming a relatively flat interest rate environment going forward."
Loan demand continued to be steady throughout the Company's network of community banks. Total loans increased $81.1 million, or 3.0%, during the fourth quarter, to $2.80 billion at December 31, 2001. This compares to $2.72 billion at the end of the prior quarter. In particular, the Company saw strong loan originations in the consumer, commercial and residential real estate segments of its portfolio.
The Company has begun the process of providing funds for its Refund Anticipation Loan (RAL) program. As a result, it has added $158 million in brokered CDs, with maturities of one and two months. Including the impact of the brokered CDs, total deposits increased 7.4%, to $3.37 billion during the fourth quarter, compared with $3.13 billion at the end of the third quarter of 2001. Excluding the brokered CDs, deposit totals increased by approximately $75 million during the fourth quarter of 2001.
Non-interest income for the fourth quarter 2001 increased $2.8 million, or 24.7%, to $14.2 million, compared with $11.4 million in the fourth quarter of 2000. Service charges on deposit accounts increased for the fourth quarter to $3.4 million, up 13.6% over the fourth quarter of last year. Income from other service charges, commissions and fees for the quarter ended December 31, 2001, increased $0.8 million, or 21.2%, over the same quarter of 2000.
During the fourth quarter of 2001, other operating income was $3.0 million. This included one major nonrecurring item: a gain on sale of the merchant bankcard portfolios of its subsidiaries First National Bank, and Los Robles Bank (recently integrated into Santa Barbara Bank
Trust). In the third quarter of 2001, First Data Corporation, which operates First Data Merchant Services, purchased the merchant bankcard portfolio of Santa Barbara Bank & Trust, the Company's principal subsidiary, and the same terms apply to the fourth quarter transaction. First Data will provide a dedicated sales force that will market merchant bankcard services under the names of the Company's community banks, and a shared revenue agreement is in place through 2011.
The Company's operating efficiency ratio for the fourth quarter 2001 was 57.3% compared with 63.1% for the same period of last year. This compares with an efficiency ratio of 62.2% in the third quarter of 2001.
"The reduction in expenses from the third quarter level is the result of a number of steps we have taken, including managing staffing levels and related costs," said Thomas. "We expect to make continued progress with our efficiency ratio as we reduce expenses in 2002 below 2001 levels, while continuing to increase our revenues."
Asset Quality and Capital Ratios
During the fourth quarter, the Company increased its allowance for credit losses, exclusive of RALs, by recording provisions for credit losses of $8.8 million, in line with its expectations.
For the quarter ended December, 31, 2001, the allowance for credit losses increased to $48.9 million, or 1.75% of total loans, compared to $43.9 million, or 1.61% of total loans, at September 30, 2001. This compares favorably with the industry average of 1.49% of total loans for the Company's peer group, based on data provided as of September 30, 2001.
Total nonperforming loans decreased $0.5 million in the fourth quarter to $20.1 million at December 31, 2001, representing 0.72% of total loans. This is below the industry average of 0.93% of total loans for the Company's peer group, based on data provided as of September 30, 2001. This results in a coverage ratio (allowance for non-RAL credit losses) of nonperforming loans of 243%.
Total non-performing assets at the end of the fourth quarter of 2001 represented 0.51% of total assets, down from 0.55% of total assets in the prior quarter. This is below the Company's peer group average of 0.66% of total assets, based on data provided as of September 30, 2001.
The Company has a strong and consistent track record of recovering a high percentage of its charged-off loans, ranging between 28%-44% over the past four years, exclusive of RALs. In the fourth quarter 2001, the Company had one very large recovery totaling $2.9 million that positively impacted net charge-offs. Net charge-offs (exclusive of RALs) for the three months ended December 31, 2001, were $3.3 million, compared with $1.0 million for the three months ended December 31, 2001.
For the full year 2001, net charge-offs to total average loans (both exclusive of RALs) were 0.33%, unchanged from 2000. This compares favorably to the Company's peer group average of 0.35%, based on data provided as of September 30, 2001.
The Company's capital ratios and those of its subsidiary banks continue to be above the well-capitalized guidelines established by bank regulatory agencies.
Share Repurchase Program Update
On June 25, 2001, Pacific Capital Bancorp announced that its board of directors had authorized the repurchase of up to $20 million of its common stock. Through December 31, 2001, the Company had purchased 520,346 shares of its common stock at an average per share price of $28.97, for a total price of $15.07 million. The Company expects to complete this share repurchase program during the first quarter of 2002.
Pacific Capital Bancorp reiterated that it expects 2002 fully diluted earnings per share to range between $2.30 and $2.36. This guidance is based on the assumption that interest rates will remain relatively flat in 2002. For the first quarter of 2002, fully diluted earnings per share are expected to range from $0.90 to $0.94.
In the first quarter of 2002, the Company expects its net interest margin, exclusive of RALs, to remain consistent with the fourth quarter level and then trend upward throughout the year as its CDs reprice. For the full year, including RALs, net interest margin is expected to range from 5.47% to 5.60%.
Provision for credit losses are expected to be higher in 2002 than the Company experienced in 2001. For the full year, provision for loan losses is expected to range from $33 million to $36 million, with a greater portion taken in the first half of the year. This range includes approximately $6.4 million associated with the RAL program that will be taken in the first half of the year.
"Our growth in 2002 will be driven by a continued stream of lending opportunities, and we are projecting loan growth of approximately 5% in 2002," said Thomas. "We are also expecting deposit growth of approximately 3%. Our niche businesses will again be strong contributors, and we expect that the RAL/RT programs will have another highly profitable year. We are also committed to reducing our 2002 expenses below 2001 levels. We have already made good progress in this respect and I am confident that we can achieve an efficiency ratio in the low 50s by the end of 2002, which would be one year ahead of our previously stated goal.
"We are very optimistic as we move into 2002. The national economic conditions that made 2001 so challenging appear to be abating somewhat, and we are well positioned to capitalize on the more favorable operating environment we expect as the year progresses. We look forward to resuming our solid track record of earnings growth in 2002 and delivering value for our shareholders," said Thomas.
Management stressed that its target earnings per share estimate for 2002 is based upon current economic conditions and contingent upon a number of factors not within its control, including but not limited to unanticipated changes in the interest rate environment; any significant deterioration in general economic conditions that would adversely affect the Company's markets, customers or businesses; additional events such as those of September 11 which might significantly impact the nation's banking system; and substantially increased energy costs in California that would adversely impact the state's consumers and businesses.
Pacific Capital Bancorp will host a conference call to discuss fourth quarter 2001 financial results and operational highlights at 8:00 a.m. Pacific Time on Tuesday, January 22, 2002. Members of the public are invited to listen to the Company's live quarterly conference call via the Internet. To hear the call, log on at the Shareholder Relations page of the Pacific Capital Bancorp web site at www.pcbancorp.com. For those who cannot listen to the live broadcast, a replay of the conference call will be available shortly after the call at the same location.
Pacific Capital Bancorp is the parent company of Santa Barbara Bank & Trust, First National Bank of Central California and its affiliates South Valley National Bank and San Benito Bank. Pacific Capital Bancorp is a 41-branch community bank network serving customers in six Central Coast counties from Morgan Hill in the north to Westlake Village/Thousand Oaks in the south. In addition to traditional services, the Company's subsidiary banks offer a complete menu of trust and investment management services from the largest full-service trust division located between San Jose and Los Angeles.
PACIFIC CAPITAL BANCORP
Pacific Capital Bancorp
Deborah K. Lewis, 805/884-6680