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May 9, 2001 List is 102 ! ! ! http://www.leasingnews.org/list.htm Headlines---- New Name for Sierra Cities---- Fleet Makes it #102 Look Out for "Home Page"/several leasing companies hit by this virus Textron Announces a New Division JDR Capital "Remembered" Comdisco Lays Off 250 Dan Marino to Launch Virtual Bank Tomorrow Bill Granieri Lives!!!! Sausalito Based Willis Leasing Revenue Up 23% ( If you go to the board meeting, try Scoma's or the restaurant at the Casa Madrona Hotel ) ######## Denotes Company Press Release ------------------------------------------------------------------------- Sierra Cities--New Name-American Express Small Business Finance Division? I am a recent former sales person with Sierra Cities, fka First Sierra. I'm still in the business and I am still in contact with a select few of the remaining 'Sierra' sales people. American Express is flying all sales staff, including operation people to Houston, ( at least from this particular location) for a 'rah rah' session which I am told will be to unveil their new name, speculated as American Express Small Business Finance Division. There will also be meeting to discuss mission statement and new company policies. Many of my former colleagues are now allowed to work out of their homes, continuing their vendor relations with an equal 50/50 split on commissions. They are also actively soliciting end-user Amex Corp card holders Their rates offered, are nearly identical, if not slightly lower then what was the buy rate last year. Each location does need to handle their own syndication if a credit doesn't meet minimum requirements (A), so there are opportunities for outside sources to pick up some additional business. Because of the name recognition of American Express, the sales people that I've talked to were very optimistic about how many more doors were opening for solicitation. I wish my former co-workers only the very best through this transitional period. Name With Held ( We were told American Express likes the credit module of Sierra Cities, as it tends only to the top credits. Salesmen were allowed to find other sources and make a commission on the so-called "B", "C", and "D" credits. At one time, many of the salesmen were sending deals to super broker and Financial Pacific was mentioned a few times by several of the ex-First Sierra aka Sierra Cities sales personnel. editor ) ------------------------------------------------------------------------- Fleet --Makes the List 102 ! ! ! I believe that the reference to Fleet is actually understated. In general, those that lost their jobs were Business Development Officers (BDO's) or those with lengthy seniority (hence hefty salaries and non-Fleet credentials). The severance packages were respectable but unfortunately the likelihood of those employees that were let go duplicating their responsibilities or salaries is remote. Incidentally, the president of that division was also terminated. Some of the employees were called into work up to 1 hour before their customary starting time just to get the news. Of course there was the customary security detail. Of those that I know personally, I can honestly say that they were shocked. I would strongly consider hiring some of them but I do not believe that my company would be able to match the compensation package that these employees were accustomed to. In the days leading up to this event, some employees were spared by shifting their responsibilities and taking them out of the line of fire. In the end, it was the fact that they could not generate sufficient volume to cover their expenses that doomed them. Maybe this is not germane, but in years past Sanwa Leasing had viewed Dana Commercial Credit with some jealousy. Many Sanwa employees were recruited from Dana. Of course when Sanwa chose their most recent digs, it was only a few hundred feet from Dana's building which is extremely expensive and opulent. Name withheld + + + Fleet is consolidating Sanwa and the Chicago operation. ILC (Cincinnati, sub of Provident Bank) may likely take over the Sanwa sales team. ILC acquired the Bank One vendor group, a Newcourt sales staff in Atlanta and is well on their way to the $2B asset mark. Fleet was never big on small ticket leasing. Their northeast small ticket leasing is provided via a private label program through De Lagen Launden. Fleet prefers SBA lending where most of their exposure can be back stopped by the US Gov't. Unsigned ---------------------------------------------------------------------------- Home Page Do not open any emails with the subject "Home Page" with a message that has anything to do with "check out this cool site". Even if the e-mail comes from someone you know, do not open it. This virus is making the rounds, and one of the features it does is invade your mailing list, sending your friends the e-mail with your signature on the message because it came from your mailing program. It is best to always confirm any attachment before downloading it. --------------------------------------------------------------------------- ################################################## Textron Financial Announces New Division Textron Financial has launched a new division to serve the capital requirements of independent, middle-market lenders. Finance Company Services (FCS) has been created to fill a need in this generally under served market segment. Mark D. Quinlan, formerly president of Textron Financial sister division RFC Capital, will serve as president and division manager. When asked why Textron Financial chose this type of lending as its next avenue for expansion, Steven B. Jaffee, a group president with Textron Financial, said, "There is tremendous consolidation taking place among institutions that provide funding to specialty, independent lenders with many traditional sources choosing to vacate the space. While there is no shortage of small- to-mid-market lenders, the number of organizations providing their raw materials is dwindling." Jaffee continued, "We think Finance Company Services affords Textron Financial with a great opportunity to become a dominant player in a fragmented marketplace." FCS will offer commitments from $1 million to $20 million with terms suited to the capital needs of specialty lenders, leasing companies, factors and other capital providers. The Company will also provide consulting and advisory services such as due diligence, operational reviews, policy and procedure manual drafting and other incubation services. "The operational expertise within FCS enables us not only to evaluate credit and to structure creative financial solutions, but to provide support functions on a temporary or extended basis for growing companies," said Quinlan. Quinlan continued, "The FCS management team conceptualized, staffed, funded, grew and profitably exited an early stage specialty finance company. Having 'walked the walk' of our prospective customers, we bring a unique set of skills, experiences and understanding to the market." ############################################################
------------------------------------------------------------------------------------------- JDR Capital "Remembered" During the period of 1998-2000, we were funding an average of roughly $400,000-$600,000 a month in volume. Sure they took 4 to 5 business days to render a credit decision and yes they took a week and a half to fund, but they were buying every deal we sent them. Tax liens, collection accounts, and numerous leasing inquiries were not a problem with JDR, they simply wanted volume. God I miss those days! Anyways, after Copelco ended their business relationship with JDR, we have had no interest in doing any business with them. Imagine JDR requesting only applicants with 640 or above fico scores with low revolving debt. Isn't that a joke? Why would any broker send them a pretty strong deal that can get approved at Colonial or another reputable, direct lender? They have simply become another Super Broker Joker. The ride with JDR was great, too bad they will no longer be around. Thanks for all the info Kit! I can tell you on the record that JDR is a great company and that as long as they have employees like Larry Brittingham who many people know and respect in the leasing industry and others like Steve Trumbo, they will be fine. JDR has felt the tightening and general changes the leasing industry has gone through recently but has always found a way to succeed and I am confident they will do so in the future. Name With Held = + + I just read your head line about JDR Capital Corporation and thought it would be appropriate to clear up a few things. First of all FORINT Financial has only been in "Business" for the past 2 years (virtually untouched and not active)and has only been recently activated. (Since the loss of Copelco) The statement that this company has been in business for 15 years is incorrectly stated. Forint Financial has only been in "business" (and I use that term loosely) for a few (inactive) years and JDR has been the Principal company for the past 15 years (1986). Don't believe me...do the math.
anonymous --------------------------------------------------------------------------------------------- Comdisco Lays Off 250 Since March The Associated Press
ROSEMONT, Ill. (AP) - Comdisco Inc. has laid off an additional 250 employees in the past two months as it cuts costs aggressively in a bid to save its core technology and leasing businesses. The cuts amount to nearly 10 percent of its North American work force, spokeswoman Mary Moster said. Comdisco shut down its networking services business in January, laying off 96 workers and transferring 100 more to other positions. It also eliminated 350 jobs when it shut down Prism Communications Inc., a high-speed Internet service it backed. The company, based in the Chicago suburb of Rosemont, leases computer, medical, telecommunications and other high-tech equipment. It also provides backup security for corporate computer systems and has a venture-capital arm. Comdisco was heavily invested in business with Internet-related start-ups and took a big hit in the technology-stock crash. Its credit rating also was downgraded. New chief executive Norm Blake told analysts last week that the profitability of core units has been ``severely challenged.'' Before the latest layoffs, Comdisco had about 3,000 employees worldwide. Shares of Comdisco were down 26 cents to $2.45 Wednesday on the New York Stock Exchange. ----------------------------------------------------------------------------------------- ###########################################################
Marino and VirtualBank, a Nationwide Technology Leader in Banking, to Launch Private Banking Center at May 10 Press Event in Palm Beach Gardens, Fla. WHO: Dan Marino, future Hall of Fame quarterback, successful businessman and philanthropist, will be introducing "MarinoVirtualBank" (http://marino.virtualbank.com). MarinoVirtualBank is powered by VirtualBank(TM), one of the country's most innovative and technology-literate financial services firms with more than $2.8 billion in assets under management. Marino will join VirtualBank Chairman and CEO Rory Brown at a May 10 press conference to announce MarinoVirtualBank as well as the grand opening of VirtualBank's new corporate headquarters in Palm Beach Gardens, Fla. Marino will unveil his plans for positioning the venture to further his philanthropic commitment to helping children. Also participating in the event will be state and local dignitaries who will be on hand to celebrate the opening and discuss its impact on South Florida's emerging technology business sector. WHEN: Thursday, May 10, 2001 5:00 - 7:00 PM; Press Conference at 6:00 PM Complimentary limousine service provided; valet parking available; catered exclusively by Continental Catering of Palm Beach; cocktails and hors d'oeuvres will be served. WHERE: VirtualBank Corporate Headquarters 3801 PGA Blvd. Palm Beach Gardens, Florida WHY: MarinoVirtualBank is leveraging the latest in today's technology to bring next-generation private banking to upwardly mobile, affluent individuals, who understand how the Internet can save them time and streamline their financial record-keeping. Utilizing the power of the Internet and VirtualBank's proprietary technology, MarinoVirtualBank will offer clients the convenience of banking online while providing personal service through an assigned Relationship Manager across products. Clients can apply for a full suite of deposit and lending products, free account aggregation, free bill payment and financial advisory services through an innovative technical platform that is uninhibited by the product-centered bureaucracy and legacy systems of traditional banks. VirtualBank is one of the few growing, profitable and technology-literate financial services firms to prosper during recent economic turmoil. VirtualBank's technology platform is being used and co-branded within many of today's most successful companies and organizations, including EMC2, WorldCom, Textron and The Association of Compaq Employees. ################################################ ------------------------------------------------------------------------ Bill Granieri Lives ! ! ! For the past several months I have been watching the reactions in the broker community to the recent changes in our industry. I see people begging for funding sources to do title transactions and crying when they get the same answers over and over again. I see brokers asking who will consider payment history scores of less than 600 and who will fund bad credit. The time people waste looking for funding sources to handle crummy credit and titles could be better spent finding new types of equipment vendors to solicit. Maybe it is time to take the Bill Granieri tapes off the bookshelf, blow the dust off them and get back to the basics! If you don't have the Lease Master Series to fall back on, you are really hurting. During my five whole years in the leasing industry I have been blessed with the friendships of both Bill Granieri, for a short time, and Jim Blizzard, whom I work for. Both taught me one very important thing; KNOW YOUR FUNDER. Know their appetite and focus on how to feed it. During these times of stress in our community, maybe you should regroup, stop dwelling on the past and move on to the future. Almost 10 years in the USMC taught me to improvise, adapt and overcome. Bill and Jim have taught me to capitalize on what I have available now. I don't know about you, but I am on the road to the absolute best year I have ever had in this industry and I owe it all to the teachings of these two Top Guns. I am surprised to see many seasoned veterans retreating in the tough times, when we should be attacking from a different direction. Right now I don't see doom and gloom, I see golden opportunities and challenge each and every one of you to an extremely profitable year. Thank you for allowing me to express my opinions. Wes Simkins Sales Associate Piedmont Equipment Leasing Wilmington, NC wes@piedmontleasing.com ----------------------------------------------------------------------------------------------- ############################################################### Willis Lease Finance Reports Strong First Quarter Results; Net Income From Continuing Operations Grows 62%; Revenue Up 23%
SAUSALITO, Calif.---Willis Lease Finance Corporation (Nasdaq:WLFC) and its affiliates today reported first quarter net earnings from continuing operations increased 62% on 23% higher revenue, boosted by over $120 million in equipment additions to its lease portfolio since late November 2000. Net earnings from continuing operations were $2.5 million or $0.28 per diluted share on total revenue of $17.1 million for the first quarter ended March 31, 2001. In the first quarter a year ago, net earnings from continuing operations were $1.5 million, or $0.20 per diluted share, on total revenue of $14.0 million. Including net results from discontinued operations, WLFC reported net earnings of $2.3 million, or $0.26 per diluted share, compared to net earnings of $1.7 million or $0.22 per diluted share in last year's first quarter. In November of 2000, WLFC signed an alliance with Swissair Group (formerly known as SAirGroup), parent of Swissair and related aviation services subsidiaries. As part of the alliance, Swissair Group subsidiaries purchased a 15% ownership interest in WLFC and acquired WLFC's interests in its spare parts and repair businesses. Consequently, results from the spare parts and repair businesses, are now reported separately as "discontinued operations" and prior period results have been restated. Leasing Activity First quarter leasing activity reflects a continuation of the strong demand for leased engines. During the first quarter, WLFC purchased over $41 million of engines for the lease portfolio. Since November 2000, WLFC has acquired 20 engines at a cost of over $120 million, which includes the five engines purchased from a Swissair Group affiliate for over $43 million. "When we completed our strategic alliance with Swissair Group late last year, we said we would focus our resources on growing the portfolio. That is exactly what we are doing," said Charles Willis, President and CEO. "We are capitalizing on current industry conditions which have led to increased demand for purchase/leaseback transactions, as well as demand for specific types of engines. The 20 engines added to the lease portfolio since last November reflect engines acquired through purchase/leasebacks as well as outright purchases of new and used engines to meet customer needs for spares." "First quarter results demonstrate we are already achieving significant lease revenue gains from the recent additions to our lease portfolio, with lease revenue up 14% just from the fourth quarter of 2000," added Donald Nunemaker, Chief Operating Officer. "Since over $41 million of engines were added to the lease portfolio during the last 9 days of the first quarter, they had an insignificant impact on lease revenue for the quarter, but should contribute nicely to lease revenue beginning in the second quarter." First Quarter Financial Results Total revenue from continuing operations was $17.1 million, up by 23% from $14.0 million in the first quarter of 2000. Total revenue consists of lease revenue (85% of total revenue this quarter and 86% in last year's first quarter) and gains on the sale of leased equipment. Lease revenue in the first quarter increased 22% to $14.5 million, compared to $11.9 million in the first quarter last year. The increase reflects a 31% growth of the lease portfolio to $444.5 million at March 31, 2001 from $339.1 million a year earlier. Revenue from gains on the sale of leased equipment was $2.6 million, compared to $2.0 million in last year's first quarter. Two engines with a total net book value of $10.4 million were sold this quarter and two engines with a total net book value of $5.6 million were sold in last year's first quarter. The company often sells engines and realizes gains as it regularly reviews the engine leasing portfolio to optimize value and growth. General and administrative expenses from continuing operations increased 20% to $3.2 million compared to $2.7 million in the first quarter of 2000. Approximately $200,000 of the increase was related to one-time expenses associated with the Swissair Group strategic alliance. The remainder of the increase came from higher personnel costs and sales and marketing related expenses associated with the additions to the lease portfolio and remarketing activities. "G&A expenses declined from 24% of lease revenue in the prior quarter to 22% of lease revenue this quarter. We expect continued improvement as lease revenue increases," explained Nunemaker. Net interest and finance costs increased 7% to $6.1 million compared to $5.7 million in the like quarter a year ago, due to higher levels of debt associated with the growth in the lease portfolio partly offset by lower borrowing costs. "Our effective average interest rate is significantly below year ago levels, and we will continue to benefit if the trend continues," said Nicholas Novasic, Chief Financial Officer. First quarter pre-tax earnings from continuing operations increased 62% to $4.1 million including $2.6 million in gains on the sale of leased equipment, compared to $2.5 million including $2.0 million in gains on sale in the first quarter a year ago. WLFC accrued taxes at a combined rate of 39% of pre-tax income from continuing operations in the first quarter of both 2001 and 2000. Net earnings from continuing operations increased 62% to $2.5 million, or $0.28 per diluted share for the first quarter of 2001, compared to $1.5 million, or $0.20 per diluted share in the first quarter of 2000. Discontinued operations generated a small loss of $179,000 or $0.02 per diluted share, compared to a profit of $141,000 or $0.02 per diluted share in last year's first quarter. First quarter net earnings including discontinued operations increased 38% to $2.3 million or $0.26 per diluted share compared to $1.7 million or $0.22 per diluted share in the first quarter of 2000. "Strong revenue growth partly offset by moderate increases in G&A and interest expenses combined to increase profit margins this quarter, with pre-tax earnings at 24% of total revenues compared to 18% last year and after-tax earnings of 15% of total revenues compared to 11% last year," said Novasic. Solid Balance Sheet |