UniCapital Announces Extension of Bank of America Amendment
MIAMI--(BUSINESS
WIRE)--Nov. 7, 2000--UniCapital Corporation (NYSE:UCP) today announced it has
reached an agreement with Bank of America, N.A., its principal financial creditor,
to continue through November 20, 2000, the amendment of certain terms of the company's
revolving credit facility and the company's commercial paper conduit facility
with Bank of America.
UniCapital Corporation provides asset-based financing in strategically diverse
sectors of the commercial equipment leasing industry. Headquartered in Miami,
UniCapital originates, acquires, sells and services equipment leases and arranges
structured financing in the big ticket, middle market, small ticket and computer
and telecommunications segments of the commercial equipment leasing industry.
For more information, visit UniCapital's Web site at www.unicapitalcorp.com.
Certain statements contained in this press release (including, without limitation,
statements regarding the Company's relationship with its financial creditors and
statements concerning efforts to address and resolve operational challenges and
seek improved financial performance) may be deemed to be forward-looking statements
that involve risks and uncertainties. These statements are made under the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, and
should be read in conjunction with the risk factors set forth in the Company's
Annual Report on Form 10-K for the year ended December 31, 1999, as filed with
the Securities and Exchange Commission. Those risk factors include, among others,
limitations imposed by the Company's credit facilities, risks related to the need
for additional capital, risks related to the Company's acquisition strategy, risks
arising from the absence of combined operating history for the Company and its
subsidiaries, risks related to internal growth and operating strategies, interest
rate risks, risks related to fluctuations in quarterly operating results, risks
related to consummating securitization transactions and other risks. These risks
and other factors could cause actual results to differ materially from those expressed
or implied in any forward-looking statements contained in this press release.
In addition, results may vary as a result of factors set forth from time to time
in the documents filed by the Company with the Securities and Exchange Commission.
The Company assumes no obligation to update any forward-looking statements to
reflect actual results or changes in the factors affecting such forward-looking
statements.
CONTACT:
UniCapital Corporation, Miami
Jody Campbell, 305/899-5000
jcampbell@unicapitalcorp.com
KEYWORD: FLORIDA
We announced yesterday the "sale" of Sierra Cities to Vertical Net---
But
Who is Vertical Net?
A
company Microsoft has invested $100 million into----
A
company wanting to be the largest on line department store----
A
company who sees having a leasing division will help move their products on line------
Sierra
Cities gets absorbed, name changed, and Vertical Net Credit can finance the products
on line from their alliances.
Here is the announcement about the Microsoft
Investment:
4/10/2000
Microsoft Makes Equity Investment of $100 Million REDMOND, Wash. & HORSHAM,
Pa.--(BUSINESS WIRE)--April 10, 2000-- On March 29, 2000, VerticalNet, Inc.
(Nasdaq: "VERT") and Microsoft Corp. (Nasdaq: "MSFT") signed their definitive
agreement announced earlier this year for a three-year strategic alliance to deliver
business-to-business e-commerce services and content to small-and medium-sized
businesses.
As part of their strategic alliance, Microsoft will purchase at least 80,000 VerticalNet(R)
Storefronts and E-Commerce Centers from VerticalNet and distribute them to third
party businesses. VerticalNet will assist Microsoft in distributing 30,000 of
these Storefronts and E-Commerce Centers. Additionally, VerticalNet will build
the Storefronts and E-Commerce Centers, incorporating Microsoft megaservices like
Microsoft(R) ClearLead(R), and place them within its 55 communities of commerce.
On April 7, 2000, VerticalNet and Microsoft completed Microsoft's equity investment
in VerticalNet, in which Microsoft purchased 100,000 shares of VerticalNet's Series
A 6.00% Convertible Redeemable Preferred Stock in exchange for $100 million in
cash. "We believe that this strategic alliance represents a tremendous competitive
advantage for VerticalNet by extending our reach to thousands of small- and medium-sized
businesses who are eager to participate in the power of e-commerce," said Mark
Walsh, President and CEO of VerticalNet. "The strategic alliance between our companies
should further validate VerticalNet's portfolio model of communities of commerce."
A Microsoft
representative is expected to join the VerticalNet board of directors.
About VerticalNet, Inc.
VerticalNet,
Inc. (www.verticalnet.com), owns and operates 55 industry-specific Web sites designed
as online business-to-business communities, known as vertical trade communities.
These vertical trade communities provide users with comprehensive sources of information,
interaction and e-commerce.
They are grouped into the following industry sectors:
ADVANCED TECHNOLOGIES, COMMUNICATIONS, ENVIRONMENTAL, FOOD AND PACKAGING, FOODSERVICE
AND HOSPITALITY, HEALTHCARE/SCIENCE, MANUFACTURING AND METALS, PROCESS, PUBLIC
SECTOR, SERVICE, TEXTILES AND APPAREL.
Additionally, VerticalNet provides
auctions, catalogs, bookstores, career services and other e-commerce capabilities
horizontally across its communities with sites like Industry Deals.com, IT CareerHub.com,
LabX.com and Professional Store.com. VerticalNet's NECX Exchange provides an exchange
for the electronic components industry.
+ + +
Here
is the atest press release on their profit ( or lack thereof ), $.023 quarter
loss on revenues of $72.7 million.
"VerticalNet Reports Third Quarter Net
Revenues of $73.7 Million and a Cash Loss of $0.20 Per Share; Company Sees Growth
in All Sectors 10/24/2000
HORSHAM, Pa.--(BUSINESS WIRE)--Oct. 24, 2000--VerticalNet,
Inc. (Nasdaq:VERT), the Internet's leading business-to-business e-commerce enabler,
today announced its financial results for the third quarter ended September 30,
2000. Net revenues increased sequentially by 38 percent to $73.7 million from
$53.6 million in the second quarter. This was a $68.5 million increase over the
same period of the prior year. The Company's cash loss improved to $0.20 per share
from the prior quarter's loss of $0.23.
"The third quarter is VerticalNet's
first under the leadership of its new President and CEO Joe Galli, who joined
the Company on July 27. "Joe has had a tremendous first quarter and a smooth transition,"
said Chairman Mark Walsh. "He has produced an immediate impact across the organization."
-
In reading Vertical Nets press release about Sierra Cities---this "tell all" comment
will mean something to leasing insiders:
"SierraCities'
credit solutions will afford buyers the liquidity to make online purchases and
will allow suppliers to manage credit decisions more effectively."
One
large captive leasing program!!!! From VerticalNet's Executive Vice President
and CFO, Gene S. Godick:
"We also plan to rearrange SierraCities' funding strategy so as to minimize the
size of the balance sheet associated with the SierraCities business and to significantly
reduce our exposure to credit risk. Currently, SierraCities funds loans and leases
with equity, then moves them into a warehouse facility provided by one of its
credit sources and from time to time effects a securitization of these assets.
Going forward, VerticalNet intends to establish flow arrangements with selected
financial institution partners pursuant to which loans and leases will be originated
by SierraCities and immediately sold for a fee to flow partners. Given SierraCities'
excellent credit history, we are confident that we will be able to arrange flow
agreements with financial institution partners on a timely basis."
I
guess he did not read the press releases and quarterly results about the "quality
credit base" comments about downgraded ratings on the securitizations. And to
assume selling off the lease credits and paper will be "immediately sold" to a
"fee partner."
I
love these new words. They must pay some public relations person a lot of money
to come up with them. "fee partner". Love it. Won't you be my "fee partner?"
You
know, it is almost like Deja Vu, when Wall Streeters knew all about leasing and
Unicapital would halt all the fragmentation and rag tag outfits and reduce costs
through better processing and lower rates.
I keep remembering the television ad where the cowboy are sitting around the fire,
and an old time jumps up, after looking at where the salsa was made, and yells
out: "New York City!?!?!?!?" . Like good salsa is made in New York City? ---editor
Sierra Cities---Part II
Charlie
Lester helped me write the first article on First Sierra, as our intent was to
explain what had happened. There was a second part, and we both decided to hold
it until the announcement of the sale of Sierra Cities, which we reported on yesterday.
Here it is:
So--Go
for it on the First Sierra article. Maybe it will help the entire industry understand
how companies fail when they accept questionable marketing tactics to increase
yields and fail to adjust for changes in the securitization marketplace. They
also hired Mike Sabel to help ride the wave of dot.coms just when the dot.com
phase was coming to an end.
Here is what I believe happened that led to the rise and fall of First Sierra--as
they say--in my opinion.
The setting in May 1997--GIC, Corporate Capital, Lease Pro, Heritage Credit and
Universal Fleet Leasing had been acquired, but there was no Houston sales management
team in place.
In May 1997, Tom Depping called a summit meeting of the top 25 previous owners,
key salespeople and HQ management in Houston to lay out a new organizational structure
for the company. Under this structure the branches expanded and grew the sales
volume. Unfortunately, the acquisition of the Republic Group took place in mid-1998
and Depping fell in love with the 20-35% yields that they were realizing. When
people like Eric Barash, Mike Wing, Tom Madonna, Oren Hall and I told Depping
how they were screwing the customers with borderline and flat out illegal tactics,
he blew us off as being sour grapes.
At
the Chairman's Club in Los Cabos, Mexico in February 1999, several of the "kids"
from Republic bragged about the tactics they used such as transposing payment
amounts. If the payment was quoted at $314.57, they would doc the deal at $341.57.
If the customer should catch it, they would say it was a typo and re-doc. Most
of the time, the customer did not catch it or they would play guts ball with the
customer and tell him that he wrote the payment down wrong.
One
side note---the "kids" from Republic got into a food fight after the dinner buffet
and the hotel management threatened to call the police to make them stop, but
almost everything on the buffet table had been thrown by that time. Later at the
Giggling Marlin, they got drunk and raised hell with Depping, Jim Raeder and Mark
McQuitty present. Great image for a publicity held company.
In
my opinion, the meeting in Los Cabos was the beginning of the end for First Sierra.
Depping and Raeder became best buddies and Depping made Raeder the VP in charge
of the branches. At age 33, Raeder wanted young studs to take over the acquired
companies so he could make the companies over in the image of Republic. He spent
money like it was water to have walls taken down and cubicles installed since
he felt that opened cubes made for a more energetic office. He ignored the proven
salespeople and ordered the branches to hire new telemarketers. The trend towards
high-pressure telemarketing chased away many established salespeople with vendor
relationships. In addition to wasting money remodeling the branches and losing
established salespeople, they found that telemarketing approach did not work without
a large staff that was constantly coached and encouraged by a sales manager on
a daily basis.
Then
came the charter to become a bank. It did not take long before people like Bob
Henchey realized they could not use the Republic approach if they were to meet
federal guidelines. The last I heard, Bob Henchey is still the President of the
FSF (SierraCities.com) Operating Company. Changes were made and the yields at
Republic dropped almost overnight. The emphasis on telemarketing was reduced in
the branches and volume continued to drop like a rock.
In
June 2000, Depping fired Jim Raeder for "cause" with no severance package. Mark
McQuitty was fired at the same time with a severance package. The word is that
spent over $1,000,000 for a May meeting of all the salespeople in San Antonio.
If the money had not been spent for that meeting, First Sierra would have shown
an operating profit for the quarter.
Back tracking a little. Two other negatives hit First Sierra in late 1999 and
into 2000.
1. The securitization market went to hell in a hand basket and
First Sierra was married to that market.
2. The name was changed from First
Sierra to SierraCities.com in an attempt to capitalize on the dot.com trend. Unfortunately,
the timing of the name change took place within weeks of the dot.com collapse.
Depping did not realize that dot.com is a website address, not a company name.
Couple
the Republic debacle with the securitization and dot.com issues and the failure
of First Sierra became eminent.
Other
failure reasons:
-Depping's
ego and lack of loyalty. The best line I have heard about Tom is "He has no old
friends, just new friends and wannabes".
-Company game plans developed in
resort locations where more emphasis was placed on expensive rooms, golf and booze
instead of work. That is why the plans changed so often.
-Changing game plans
caused confusion and lack of direction in the branches and Houston.
-The ethics
of First Sierra management was questioned by people like Oren Hall from the very
git-go.
-The loss of experienced executives like Bob Quinn, Mike Wing, Oren
Hall, Tom Madonna, Eric Barash, Valerie Hayes Jester, Fred Van Etten, Danny Fritz,
Pete Smith, Helen Darrington, Dennis Meyer, Don Zaretsky, Bill Stauder, Ruth Spiers
(Tom's AA for 15 years at First Sierra and previous companies) and the list goes
on and on. You can't lose this many top people without the troops losing confidence
in their own futures.
-Lavish spending for suites, booze and golf outings
for the top guys. My room at the Chairman's Club in Los Cabos was over $500 per
night. My room for the prior manager's meeting in Scottsdale was over $500 also.
I don't know what the cost of the suites for Depping and others cost, but they
had to be extremely expensive. At the same time money was being spent like this,
the branches were being hit with major cost cutting programs. Go figure!!
Take
care and keep up the good work for the industry.
Charlie
Lester
At
American Leasing, I interviewed two ex-Republic Leasing, Anaheim Sales people.
They
told me how they were trained to make switches, just as Charlie Lester explained.
Or bid for a lease, using a very low 36 month lease, but when they went to sign
it, change the term to 48 months or 60 months. They were taught how to sell in
this manner. Many lessees did not catch the change, or if they did, they convinced
the sales people were taught tactics to do this.
Another
was the weekly contest of who could charge the highest documentation fee. It was
not uncommon to get $1,000 on a $25,000 lease. The winner not only got a percentage,
but won the contest for a large television set or a monthly contest top prize
of a trip to Cabo San Lucas or Hawaii. The salesman I interviewed told me he once
charge $800 documentation fee on a $5800 lease...but he didn't win the prize as
one salesman got $950 on a $4,000 lease ( I know this is hard to believe, but
that is what he told me and how they would quote on partial equipment or partial
orders, take the deal away with a low rate, but when they had the full list, they
would change the rate and rarely were they "caught" and when they were, the sales
techniques and procedures of how to close the sale...so What Charlie Lester reports,
I can tell you was verified personally from these two interviews with former Republic
Leasing of Anaheim salesmen ).
50 Leasing Companies Major Changes
American
Business Leasing ( gone )
Balboa Capital ( Founder Byrne "...office available
any time he wants to use it" ).
The Bancorp Group, Inc. (Southfield, MI) (
no longer in business )
Bankvest (bankrupt) Bombadier ( reported having problems,
not confirmed )
Charter Financial ( purchased by Wells Fargo 9/5/2000 )
Colonial
Pacific (11/98) purchased by GE Capital 5/2000 no more re-brokered applications,
except from one or two sources, such as Steve Dunham's
Leasing Associates )
Commerce Security ( 9/99 closed to leasing broker program
)(11/99 last fundings)
Comstock Leasing ( 3/2000 Unicapital then Linc and
discontinued operation this date )
Copelco ( 4/2000 sold to Citibank/10/2000
stock down rated/10/2000 ceases broker business, many complaints in manner turning
off faucet )
Creative Capital" of Bloomfield Hills, MI. ( shut-down 3/2000
)
Dana ( sold off, active as captive )
DVI Capital ( out of broker )
El
Camino Leasing, Woodland Hills, Caifornia (10/2000 No longer taking broker business
)
eLease ( June/July/2000 senior management changes )
FMA Finance ( reportedly
closed to brokers )
Fidelity ( 4/2000 acquired by EAB, a wholly owned subsidiary
of ABN AMRO Bank N.V., headquartered in the Netherlands, raising funds )
Finova
( out of market place )( 10/11/2000 Dow Jones headlines "Finova Stock Falls As
Buyout Hopes Wane 10/25/2000 Dow Jones notes stock falling and problems at Finova
11/3 Announces they will discontinue business, sell units
))
First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing division-$64
million---)
Franklin Leasing, Des Moines, Iowa--owned by Liberty Bank-- (2/2000)-no
longer writing leases ( limited by regulations and leases
are for sale ).
Golden Gate Funding ( 2/99 purchased by Westover Financial
)
Heller Financial's Commercial Services Unit ( 10/99 purchased by CIT )
Imperial
Credit Industries (ICII) ( sold portfolio )
Japan Leasing Credit claims (
JLC --6/99 purchased by Orix )
Lease Acceptance Corp---( ceases broker business
7/26/2000 )
Leasing Solutions ( bankrupt )
Liberty Leasing ( closed, California
company )
Linc Capital ( out of vendor and broker business, Nasdaq halts stock
sales, $13.4 loss last quarter,10/2000 assets for sale
)
Lyon Credit Corporaton ( 9/99 purchased by Hudson United Bancorp )
Manifest
Group--( 9/1/2000 purchased by US Bancorp Leasing and Financial, "...a win for
all the parties involved," Brian Bjella.
Matsco Financial
( purchased by Greater Bay Bank )
Merit Leasing ( gone )
Metwest Leasing,
Spokane Wa. ( 9/2000 advising brokers that they have run out of funds so they
are unable to fund a transaction we have there for funding.
11/2000 Metwest Leasing Spokane, WA. is pulling the plug,
confirmed by five sources. )
Metrolease--reports closing operation,John Blazek
at Evergreen Leasing, Hathcock losing assets, will not confirm
nor deny; many serious rumors of serious fraud floating around the marketplace,
including debt to Textron Financial.)
NationsCredit,
Business Leasing Group (1/29/99 sold to Textron**) *"The Business Leasing Group
of Nations Credit was sold to Textron and we still do broker business," Jim Merrilees,
very well respected individual in the leasing industry..
NIA National Leasing ( 3/2000 purchased by Lakeland Bancorp )
New England
Capital ( sold to Network Capital Alliance a division of Sovereign Bank. Sovereign
did hire two people who will run a sales office in CT,
doing basically the same deals with the same people as before. Little will change
in that aspect.
Newcourt ( sold off )
Onset Capital ( Irwin buys 87% equity
)
Orix 10/2000 "long-term Outlook has been revised from Stable to Negative"
Credit Allianchat it has changed its name to ORIX Financial
Services, 9/2000 Japanese Bank President Committs Suicide (Orix is a
14.7% shareholder in bank having problems ), ( 8/2000 closes small ticket vendor
division in Portland, Oregon, "Business as usual (in New Jersey and with brokers),"
says Steve Geller )
Phoenix ( both divisions )
Republic Leasing, South
Carolina 9/27/2000 ( "The expected result will be a sale of Republic Leasing"-- Dwight
Galloway )
Rockford ( sold to American Express )
Scripp Financial ( 6/29/2000
( purchased by US Bancorp )
SDI ( closed to broker programs )
SFC Capital
( 9/15/2000 purchased by Trinity Capital )
SierraCities (11/2000 acquired
by Vertical Net Credit ) T&W, Washington ( bankrupt, lost their listing ) Transamerica
( for sale, but no buyers, so taken off marketplace, no longer for sale )
Unicapital ( $11.4 million first quarter loss chairman,CEO,CFO resign, 38 employees
cutback, 8/23 BSB to use other funders reported, rumor
that BSB will be "spun off", not confirmed and appears to be in the rumor
stage right now. Good news, 9/1 Bank of America extend revolving credit line to
October 16,2000. 9/29/2000 Many rumors floating around.
10/12 Prognosis is "challenging," at best.10/17 BofA gives
them until Friday to complete "process." Bank of America extends to November 6
as division look for direct investors and all deals start
turning sour, brokers and vendors not getting paid. Looks like going
down the tubes to many. Announcement to be made tomorrow, November 8, according
to Unicapital Spokesperson Jodi Campbell
USA Capital
Leasing ( gone-bk )
any
corrections, additions, comments will be appreciated. We are presently working
on dividing the list into last twelve months and prior.
Their Press Release by their Public Relations Company--- SierraCities.com Reports
Third
Quarter Results
HOUSTON--(BUSINESS WIRE)--Nov. 6, 2000--SierraCities.com Inc. (Nasdaq:BTOB), an
innovator of technology solutions for online business-to-business financing, today
announced financial results for the third quarter ended September 30, 2000.
Total revenues for the third quarter were $33.5 million compared to $27.2 million
in the third quarter of 1999. Net income totaled $104,000, or $0.01 per basic
and diluted share. Before non-cash goodwill amortization expense, net income was
$643,000 for the quarter.
Third
quarter asset originations in the Company's retail channel were $126.2 million
in the third quarter compared to $122.7 million in the third quarter of 1999.
After the planned strategic reduction in the wholesale and captive finance channels
over the past year, total originations were $167.5 million versus $250.2 million
in the comparable quarter. Total managed assets at quarter end were $1.5 billion
compared to $1.2 billion a year ago. Credit quality improved as accounts delinquent
more than 30 days declined to 2.57% from 2.95% at December 31, 1999.
SierraCities.com is an innovator of technology solutions for online business-to-business
financing. The Company's technology platform supports real time funding of e-commerce
transactions through one of the most comprehensive online business financing fulfillment
solutions available. SierraCities.com's credit technologies enable B2B e-commerce
by empowering businesses to complete transactions more quickly, thereby gaining
time and cost efficiencies. SierraCities.com's infrastructure solution automates
much of the process involved in customer acquisition, application, data retrieval,
data warehousing, underwriting, documentation, servicing, collections, funding,
auditing, and data mining. For more information, please visit our Web site at
www.SierraCities.com.
This release may contain forward-looking statements. These statements are subject
to certain risks and uncertainties that could cause actual results to differ materially
from those anticipated in the forward-looking statements, including the risk that
the Company may be unable to obtain regulatory approval for the Internet bank
in the future in the event that the Company decides to pursue this course of action,
the outcome of the exploration of the division of the Company's operations, the
outcome of the discussions related to proposals received in the exploration of
the division of the Company's operations and the state of the secondary market
for sales of the Company's financial assets. Readers should not place undue reliance
on forward-looking statements, which reflect SierraCities.com's management's view
only as of the date hereof. SierraCities.com undertakes no obligation to publicly
revise these forward-looking statements to reflect subsequent events or circumstances.
Readers should also carefully review the risk factors described in documents SierraCities.com
files from time to time with the Securities and Exchange Commission, including
Form 10-K for the year ended December 31, 1999.
