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SPRING http://memory.loc.gov/ammem/today/mar20.html
Kit Menkin’s Leasing News
Wednesday, March 20, 2002 www.leasingnews.org Independent,
unbiased and fair news about the Leasing Industry --------------------------------------------------------------------------
Headlines----
The Fed Leaves Key Rate Unchanged.
Tyco to Spin CIT off in Less than a Month
GE Capital Bows to Pressure From Moody's on Debt
BancPartners Announces Resignation of James R. Lahti
RT International Chooses ePlus
PDS Reports Fourth Quarter Results
Wells Fargo Celebrates 150 Year Ride
ELA/UAEL Postpone Two March Meetings
Special: Golf Handicaps and Jim Merrilees
(Playing at the MAEL Golf Tournament May 20th) ###
Denotes Press Release _________________________________________________________
The Fed Leaves Key Rate Unchanged The
Federal Reserve leaves a key interest rate unchanged and begins preparing
Americans for the possibility that short-term rates will go higher
this year as the country bounces back from recession _________________________________________________________________ .
Tyco to Spin CIT off in Less than a Month By
Harry R. Weber ASSOCIATED
PRESS CONCORD,
N.H. – Tyco International Ltd. expects its credit rating to be
upgraded when it separates from its lending unit, an executive said
Tuesday. Chief
financial officer Mark Swartz said such a move would be a reassuring
sign as the huge conglomerate responds to persistent questions about
its accounting practices. In
a weekly conference call with investors, Swartz said Standard &
Poor's has indicated that it will upgrade Tyco's credit rating when
it sells or spins off its CIT unit. Fitch, another rating agency,
also appears to view the plan favorably, Swartz said.
Leasing New earlier report the CIT divisions were not being sold
as one unit, but were
reportedly separate divisions with a bidding war now taking place
in an effort
by Tyco to get a better price. --------------------------------------------------------------------------------------------------------- GE
Capital Bows to Pressure From Moody's on Debt Associated
Press New
York- General Electric Capital Corp. is bowing to demands from Moody's
Investors Service that the biggest seller of commercial paper reduce
its reliance on short- term debt securities. The
financing arm of General Electric Co., the world's largest company,
is seeking bigger lending commitments from banks and replacing some
of its $100 billion in debt that matures in less than nine months
with bonds. GE Capital is asking banks to raise its borrowing capacity
to $50 billion from $33 billion. Moody's,
one of two credit-rating companies that have assigned GE Capital the
highest ``AAA'' grade, has been increasing pressure on even top-rated
firms to reduce short- term liabilities since Enron Corp. filed the
biggest U.S. bankruptcy in December. Moody's
reported today on the ability of about 300 companies to raise money
if shut out of the commercial paper market. ``Issuers
and ratings agencies are looking at coverage issues with more attention
than ever before,'' said Peter Stack, a spokesman for GE Capital.
``The specific step in increasing coverage is in line with new guidelines
from Moody's.'' _____________________________________________________________________ “Well
here it is&.. More information for your news letter&. Will
get back as developments occur.” Richard
A. Galtelli BancPartners “BancPartners
Announces Resignation of James R. Lahti “BPL-BancPartners
Leasing Inc. announced today that it had accepted the resignation
of James R. Lahti, President of BancPartners of Texas, Inc. (formerly
Affiliated Corporate Services, Inc. (ACSI). “Warren
Hawkins, CEO of BancPartners commented, Jim has been instrumental
in the operations of BancPartners of Texas and we will certainly miss
him. However, Jim has decided to pursue other interests out of Austin,
Texas and we wish him the best. “BancPartners
Leasing Corporation is one of the largest independent leasing companies
in the Southeast and Southwest U.S. with offices in Dallas and Austin,
TX, Birmingham, AL, Nashville, TN, and Atlanta, GA. Its private label
leasing program is one of the most comprehensive programs offered
to community banks. BancPartners can be found on the Internet at
www.bancpartners.com.” Golf
Handicaps and Jim Merrilees Regarding
golf handicaps the following quote is directly from the USGA manual
on handicapping. "A
USGA Handicap Index is the USGA's mark used to indicate a measurement
of a
player's potential scoring ability on a course of standard playing difficulty.
It is the result of a mathematical calculation based on scores returned.
A Handicap Index is converted to a Course Handicap for competition from
a particular set of tees." The
key to establishing a handicap is contained in the sentence that reads, "It
is the result of a mathematical calculation based on scores returned." The
question regarding Mr. Merrilees' scoring is whether or not he actually played
to a '4' and scored accordingly or did he score something close to his
14 but played 'like' a 4. There is a significant difference. I
personally have played with Jim and have never questioned his handicap. There
are some people who play regularly and fail to post scores that are significantly
lower than there handicap indicates. This allows them to maintain
a higher handicap than they should have and gives them an unfair advantage
over those who choose to report all their scores. These
are commonly
referred to as 'sandbaggers'. This should answer your questions regarding
golf handicapping Kit. Jerry
Withrow ---
A
14-handicap golfer playing like a 4 is generally not a compliment.
It’s like pounding your funding source for a very low buy rate
and then packing 12 points in the deal. I am, by the way, a 14 who
plays like an 18. Take care. Paul
Knowlton knowlton@bowc.com ---- "Jim
Merrilees is the absolute best 14 handicap I've
ever seen....except when we're partners." Rick
Wilbur ---
Filing
an improper number as a handicap can get a guy put on probation----------
even if he thinks of himself as the probation officer and wears
some phony hat! JoeWoodley
(
any other comments welcome, as well as “What is your golf handicap?” ####
############################### ############### RTI
International Chooses ePlus For Seamless and Integrated eProcurement;
Procure+ 6.5 Delivers Financial and Back Office Integration
HERNDON,
Va--ePlus, Inc., (Nasdaq NM:PLUS), a leading provider of business
solutions and services, announced today that Procure+ has been selected
by RTI International (RTI) as its web-based procurement solution.
A
key selection criterion was Procure+'s integration capabilities with
RTI's Deltek financial system, including reconciliation of account
payables, vendor invoices, and P-card purchases. RTI
was the first scientific organization in North Carolina's Research
Triangle Park, a technology and science park that includes more than
150 industrial and governmental institutions. Known
since 1958 by clients around the world for innovative multidisciplinary
research, RTI conducts hundreds of active research projects in health
and medicine, environmental protection, technology commercialization,
education, and decision support systems. RTI's
philosophy is to provide the highest standards of professional performance,
and used the same high standard in its selection of Procure+. Comprehensive
integration with RTI's back end processes was the primary reason behind
RTI's decision to choose ePlus over other procurement vendors. "We
needed a system that would link to our financial system and provide
invoice reconciliation with our P-card provider," said Jon Davis,
Director of Purchasing at RTI. "ePlus gave us the functionality
and expertise we required to move ahead with our purchasing initiatives."
Procure+
creates a paperless eProcurement process that allows access to multiple
vendors, while significantly reducing lead times and associated administrative
and inventory costs. RTI also relies on Procure+ punch out features
to supply real time pricing and a streamlined order and approval workflow
for their strategically sourced commodities such as office and lab
supplies. "
ePlus is proud that our solutions are selected again and again by
innovative organizations that have the highest standards for performance
and integrity," said Phillip G. Norton, president and CEO, ePlus
inc. "Our mature, sixth generation eProcurement technology continues
to offer our customers extensive back office savings, creating an
ROI that is unmatched in the industry." 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. About
RTI Headquartered
on a 180-acre campus in Research Triangle Park, RTI's North Carolina
facilities include more than 725,000 square feet of laboratory and
office space. RTI is dedicated to improving the human condition through
multidisciplinary research, development, and technical services that
meet the highest standards of professional performance. RTI
has research offices in Boston, Massachusetts; Washington, D.C; Rockville,
Maryland; Hampton, Virginia; Atlanta, Georgia; Cocoa Beach, Florida;
Chicago, Illinois; and Portland, Oregon; and international offices
in Manchester, England; Warsaw, Poland; Pretoria, South Africa; and
Jakarta, Indonesia. About
ePlus inc. 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 dynamically
streamline, improve and gain management control of spending and fixed
assets. 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), 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 info@eplus.com. CONTACT:
ePlus
inc. Lisa
Savino, 631/218-9510 lsavino@eplus.com
or
Kley
Parkhurst, 703/709-1924 ###
####################################### ############### PDS
Gaming Corporation Reports Financial Results for the Fourth Quarter
and Year Ended 2001
LAS
VEGAS--PDS Gaming Corporation (Nasdaq:PDSG), a diversified gaming
company that finances, leases, sells, manufactures and refurbishes
gaming equipment for the casino industry and operates gaming facilities,
today reported its operating results for the fourth quarter and year
ended December 31, 2001. Income
before nonrecurring tax charges using a tax rate of 42% was $187,000
or $0.05 per diluted share on revenues of $7.6 million. For the comparable
quarter ended December 31, 2000, the Company's earnings were $146,000,
or $0.04 per diluted share on revenues of $9.6 million. During the
quarter the Company recorded nonrecurring income tax expense related
to warrant expense and amortization that resulted in an effective
tax rate of 84%. After the effect of these charges, the Company reported
net income of $51,000, or $0.01 per diluted share. Income before extraordinary
item, was $(424,000) or $(0.11) per diluted share. The Company's Casino
Slot Exchange division shipped approximately 1,030 gaming devices
during the fourth quarter of 2001 compared to 1,950 unit shipments
in the quarter ended December 31, 2000. In
the fourth quarter ended December 31, 2001, the Company recorded an
extraordinary item in the amount of $475,000, after tax, related to
discounts received on extinguishment of debt. Additionally, as previously
disclosed, the Company settled all claims and disputes with the Resort
at Summerlin, Limited Partnership and all its affiliates and others
associated with this transaction. The net effect of the various settlements,
including legal fees of $335,000, resulted in a net pretax charge
of $355,000. Also, during the quarter, reserves for notes receivable
in the amount of $1.3 million were reversed due to improvements in
a significant customer's financial condition. As of March 2002, the
notes were paid in full. For
the year ended December 31, 2001, net income before nonrecurring tax
charges using a tax rate of 42% was $1.6 million or $0.40 per diluted
share, on revenues of $43.3 million. For the same period in 2000,
the Company reported net income $728,000, or $0.20 per diluted share,
on revenues of $52.9 million. After the effect of the nonrecurring
tax charges the Company's net income for 2001 was $1.4 million or
$0.37 per diluted share. Income before extraordinary item was $955,000
or $0.25 per diluted share. The Company completed $44.1 million in
financing originations during the year ended December 31, 2001, a
55% increase compared to $28.4 million in 2000. Gaming device shipments
approximated 5,900 and 5,500 units, respectively, in 2001 and 2000.
"We
believe last year's operating results were good in light of the challenges
we faced. A large part of management's efforts this quarter were focused
on the resolution of all the issues related the Resort at Summerlin.
These efforts resulted in a favorable outcome to the Company. Overall,
due to the events of 9/11, the industry has experienced a slowdown
but is recovering. Although we have not experienced cancellations
of orders, we have seen sales and financing transactions postponed
into 2002. We expect that normalized activities in our operating units
will resume in the second quarter of 2002," stated Johan Finley,
Chief Executive Officer of PDS Gaming Corporation. "As we begin
2002, our goals are to increase the portfolio, continue to add new
gaming product to both the Casino Slot Exchange and the Table Games
divisions and to concentrate on expanding the casino operations division."
PDS
Gaming Corporation provides customized finance and leasing solutions,
used gaming devices and digital table game products to the casino
industry in the United States. The Company also operates Rocky's Sport
Pub and Grill (formerly, The Gambler Casino) in Reno, Nevada and plans
to acquire additional gaming facilities. PDS Gaming Corporation is
headquartered in Las Vegas, Nevada, and its common stock trades on
The Nasdaq Stock Market under the symbol "PDSG". ####
############################ ##################### Wells
Fargo celebrates 150th year riding high Christian
Berthelsen, San Francisco Chronicle Staff Writer Wells
Fargo & Co. put its history on parade yesterday to celebrate 150
years of operation, with executives riding in stagecoaches on the
streets of San Francisco, New York and Los Angeles and chief executive
Dick Kovacevich ringing the closing bell of the New York Stock Exchange. The
festivities come at a fortuitous time for Wells, with its operations
clicking smoothly following its 1998 merger with Norwest of Minneapolis,
its stock price near a 52-week high and its increasing presence in
significant markets. "Things
are going very, very well," Kovacevich said. "Our two companies
have come together well, our conversions are over, we're gaining market
share and we increased our revenue last year by 13 percent on a single-share
basis. That's never occurred with a big bank merger." With
150 years of history, it would be obvious to point out the differences
between the banking giant of today that is Wells Fargo, the product
of 2,000 mergers, and the express service that it started out as. What
is remarkable is what is still similar: a sharp eye for the forces
shaping Western life and the effort to tailor financial products to
suit it. In
1852, Henry Wells and William Fargo formed the company as a Western
equivalent to another service of theirs, based in the East -- American
Express. Recognizing
the fast growth of gold mining in California and the need for reliable
transportation services, they created Wells Fargo to meet that need
and added banking services soon afterward. Wells
Fargo's history has been intimately intertwined with its home state,
California, which is just two years older. Today,
as the nation's fifth-largest bank, with $308 billion in assets, Wells
has expanded into commercial banking and stock brokerage, and has
gobbled up hundreds of community banks in an effort to build a presence
throughout the West and Midwest. It
has doubled its percentage of the market in home equity loans and
ranks fourth in market share for mortgages, said Carrie Tolsted, an
executive vice president for California and the border. Although it
still trails Bank of America in deposit share in California, analysts
say it is gaining. The
bank is chasing a new underserved market that has become a significant
part of the Western landscape: recent immigrants from Mexico with
little or no access to the banking system. People
from Mexico made up 35 percent of all immigrants in California in
1998 -- the single largest immigrant group in the state, according
to a state Department of Finance analysis of federal immigration data. In
November, Wells began accepting identification from the Mexican consulate,
called a matricula, as an acceptable form of proof to open an account.
As a result, 15,000 new accounts -- about 3 percent of all new accounts
-- have been opened nationwide with the identification. Last
year, Wells also began offering Intercuenta Express, a wire transfer
service that allows customers to transfer money between Wells Fargo
and the Mexican bank Bancomer for as little as $10 per $1,000, or
1 percent. Other services charge as much as $35 to $50 for the same
amount. "This
was a major, historic step in the financial services industry,"
Miriam Galicia Duarte, an assistant vice president of ethnic markets
in Los Angeles, said of the matricula. It has not been without risk:
In accepting the consular identification, the bank has incurred the
wrath of anti-immigration advocates who say the program coddles illegal
immigrants. "It does take a lot of nerve," Duarte said. Wells
is serious about highlighting the endeavor: As part of the celebration
yesterday, the bank gave the Mexican consulate in Los Angeles a dress
saddle from its museum that was made specially for Poncho Villa. "They're
doing a great job," said Joe Morford, a bank analyst at RBC Capital
Markets. "They're certainly getting thought of as a high performer
in the industry. A lot of banks are struggling with big losses right
now, and Wells Fargo is hitting their numbers." Wells
stock was down 33 cents per share, at $50.17, when Kovacevich rang
the closing bell yesterday. He also rode a stagecoach down Wall Street.
"Fortunately for the public, I wasn't driving," he said. History
of Wells Fargo --
1852: Wells Fargo & Co. is founded in San Francisco
by Henry Wells and William Fargo. --
1869: Wells Fargo allows California's "Big Four" -- Leland
Stanford, Charles Crocker, Henry Huntington and Mark Hopkins -- to
gain a controlling interest in exchange for the exclusive right to
carry express over the Transcontinental Railroad. --
1888: Wells Fargo introduces Ocean-to-Ocean express services, the
first transcontinental express service that shipped all kinds of valuables. --
1905: Wells Fargo falls under the control of railroad entrepreneur
Edward Harriman, moves its headquarters to New York and merges with
Nevada National Bank. --
1918: As a wartime measure, the U.S. government nationalizes Wells
Fargo's franchise into a government agency known as the American Railway
Express Agency. The government takes control of everything except
the bank. The bank begins rebuilding but with a focus on commercial
markets. --
1923: Wells Fargo merges with the Union Trust Co. The bank stayed
financially sound during the Depression. --
1960: Wells Fargo is acquired by the American Trust Co, which shifts
the bank's focus to retail banking and keeps the Wells Fargo name.
At the time of the merger, Wells Fargo had 12 offices in California,
while American Trust had 102. --
1986: Wells Fargo merges with Crocker National Corp. and Crocker National
Bank. --
1987: Wells Fargo acquires the personal trust business of Bank of
America. --
1988: Wells Fargo acquires Barclays Bank of California. --
1989: Wells Fargo reaches a cooperative agreement with the Hongkong
and Shanghai Banking Corp. Ltd. to have HSBC take care of the overseas
banking needs of Wells Fargo customers. Wells Fargo also begins offering
online banking. --
1990: Wells Fargo completes four acquisitions: Valley National Bank
of Glendale, Central Pacific Corp. of Bakersfield, Torrey Pines Group
of Solana Beach (San Diego County) and Citizens Holdings in Orange
County. Wells Fargo also reaches an agreement to buy 130 Great American
Bank branches. --
1995: Wells Fargo and HSBC agree to establish a jointly owned trade
bank called Wells Fargo HSBC Trade Bank, which is based in California
and provides customers of both companies with trade finance and international
banking services. Wells Fargo also becomes the first bank to offer
online banking through the Internet. --
1996: Wells Fargo reaches agreement to merge with First Interstate
Bancorp, based in Los Angeles. --
1998: Wells Fargo announces a $34 billion merger agreement with Norwest
of Minneapolis, creating the nation's seventh-largest bank. --
2000: Wells Fargo acquires Utah's First Security Corp. for $3 billion.
. Source: Wells Fargo, Chronicle research E-mail
Christian Berthelsen at cberthelsen@sfchronicle.com. ----------------------------------------------------------------------------------------------------- Equipment
Leasing Association Long Beach Metro March 20. Long Beach,
CA Postponed. New date to be announced Long
Beach Marriott Host: 11:30-12:00pm
Registration Credit
& Collections Issues Joint
Equipment Leasing Association and United Association of Equipment Leasing
March 21 Metro San Francisco,
CA Postponed. New date to be announced Hosts: 11:30-12:00pm
Registration Topic: Presenter: Collections
Legal Update Presenter: It
is reported that pre-registration has been slow for both the National
Association of Equipment
Leasing Brokers Conference in Orlando, April 10 to 14, and the joint
Eastern Association of Equipment Leasing and United Association of
Equipment Leasing
Las Vegas Conference May 2-4. But it is too early to predict as many
register late.
Reports of the slow economy in leasing have affected turnouts as the
United Association
of Equipment Leasing postponed the Dallas March 8 and Philadelphia March 22nd. Funding Retreats |
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