Kay Lee, very popular among leasing brokers and funders, has left Advanta Leasing.
Advanta is for sale and is in the mode of downsizing and consolidating, and as
Kay explains it, she understands the reasoning she is no longer with Advanta.
She will be getting a new e-mail address, and as soon as we receive it, we will
pass on to you.
Still
looking for Ron Wagner. Many people have told me he is most likely on the golf
course with Joe Woodley, but do not have Joe's e-mail address to find this out.
If you run into Ron, please ask him to e-mail: kitmenkin@leasingnews.org
Signature Leasing, Dublin, Califonria, Lets Employees Go at 4pm Yesterday
Steve
Chriest Reports:
"Board
of Directors made a decision to exit the small ticket equipment leasing business,
and small ticket leasing employees were dismissed. The company is currently working
to recommend its former employees to equipment leasing companies and companies
in related industries."
Signature Leasing has been a lessor and super broker for many years, with lines
at several sources, including Bay View Savings, that is no longer in the leasing
business. See Franchise Mortgage Services on "the List."
E-Plus Shows Profit---
This
is What they Do:
Finance+:
The Automated Finance Process You Need.
Finance+ re-uses the detailed asset
information from Procure+ orders or Manage+ assets:
To
populate pre-negotiated lease documents and To produce lease schedules. This automation
greatly speeds up financing and helps you bundle costs. And remember that when
you lease, you:
Gain
a tax write-off, even up to 100% of the amount financed.
Transfer
your asset insurance costs to the lessor (ePlus if you choose).
Delay
depreciating your assets by five years.
Conserve
your other lines of credit.
Company
Reports Profits
Plus,
a leading Web-based, e-business services provider, announced financial results
for the three and six month periods ending September 30, 2000.
For
the quarter, net e-commerce revenues increased 27% to $3,061,959 from $2,406,637
reported for the prior sequential quarter ending June 30, 2000. Total revenues
in the e-commerce segment increased 34% to $14,639,274 and ePlusSuite fees increased
40% to $1,559,986 over the prior sequential quarter.
The
total volume processed by ePlus in e-commerce transactions was $37 million, an
increase of 60% from $23 million the prior sequential quarter. "We had excellent
sequential growth in our e-commerce segment, as measured by gross revenues, procurement
volume, transaction fees, number of customers, and net e-commerce revenue," said
Phillip G. Norton, chairman, president and chief executive officer. "We are building
a diverse customer base that spans the technology, industrial, professional services
and education sectors, demonstrating how well our solution works across vertical
markets. Quite simply, our Web-based solutions delivers value to middle market
companies: increased operating efficiency, productivity and communication."
During
the quarter, the e-commerce customer base grew 85% to 100 customers, including
74 fully implemented customers. Of the 100 customers at quarter-end, 67 were current
customers which were transitioned to e-commerce, and 33 were new customers. As
of November 10, 2000, e-commerce customers totaled 133, including 95 implemented
customers. "In August, we implemented company-wide sales training to educate and
focus our sales and marketing staff to ramp-up e-commerce customer transition
and acquisition," Norton added. "We are extremely pleased with our progress, and
we expect the new customer acquisition rate to accelerate.
For the three months
ended September 30, 2000, revenues increased 27% to $77,751,616 from $61,191,732
the corresponding quarter in 1999. Net income decreased 3% to $2,023,170 from
$2,089,296 the prior year's quarter. Basic and diluted earnings per share for
the quarter was $0.21 and $0.19, respectively, as compared to $0.28 for both basic
and diluted the prior year. Total volume of equipment leased and sold during the
quarter was $110 million as compared to $104 million the prior sequential quarter.
The Company hired 37 new employees, including 12 salespersons and 11 developers,
and established sales locations in several new markets. For the six months ended
September 30, 2000, revenues increased 39% to $160,844,240 from $115,562,852 the
prior year. Net income increased 26% to $4,509,276 from $3,591,758. Basic earnings
per share declined to $0.47 per share from $0.48 per share the prior period, and
diluted earnings per share declined to $0.44 from $0.48 per share.
Readers Request Some Good News---New Funding Sources---
NetSol International, Inc. Announces $30 Million Registration Statement Filing
CALABASAS,
Calif.--(BUSINESS WIRE)--Nov. 14, 2000--NetSol International, Inc. (Nasdaq: NTWK)
today announced that it has filed a registration statement with the Securities
and Exchange Commission registering up to $30 mmllion of its securities.
These securities may be offered and sold from time to time on behalf of NetSol
in the form of common stock and warrants to purchase common stock. The offering
represents new equity financing by NetSol.
NetSol intends to use the net proceeds from the sale of the securities for general
corporate purposes, primarily to fund its operations and caoital expenditures
and for working capital.
A
registration statement relating to these securities has been filed with the Securities
and Exchange Commission but has not yet become effective. The offering is being
made by means of a prospectus only. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.
NetSol
International Inc. is an ISO-9001 certified software developer in the global information
technology industry. With an international workforce of more than 400 employees,
NetSol specializes in software development, proprietary and asset-based leasing
and finance programs, IT consulting, and creation of eBusiness and Web-based solutions
for a growing list of blue-chip customers worldwide.
NetSol
can be reached at www.netsol-intl.com.
Safe
Harbor Statement This release contains forward looking statements relating to
the development of the Company's products and services and future operation results,
including statements regarding the Company that are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. The words "believe," "expect," "anticipate," "intend," variations of
such words, and similar expressions identify forward looking statementsL but their
absence does not mean that the statement is not forward looking. These statements
are not guarantees of future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict. Factors that could affect the Company's
actual retults include the progress and costs of the development of products and
services and the timing of the market acceptance of those products and services.
A more detailed description of certain factors that could affect actual results
include those factors discussed in the Company's filings with the United States
Securities and Exchange Commission, including its annual report on Form 10-KSB
and quarterly reports on Form 10-QSB for the period ended March 31, 2000. NetSwl
International Inc. undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances after the date
of this release or to reflect the occurrences of unanticipated eve ts. Readers
are cautioned not to put undue reliance on forward-looking statements, which speak
only as of the date of this release. The company disclaims any intent or obligation
to update publicly these forward-looking statements, whether as a result of new
information, future events or for any other reason.
CONTACT:
Cramer-Krasselt
Amy Dolnick, 312/616-3823
adolnick@c-k.com
KEYWORD:
CALIFORNIA
The
Finova Group announced a net loss of $274.1 million ($4.49 per diluted share)
for the quarter ended Sept. 30, 2000, compared to net income of $54.9 million
($0.86 per diluted share) for the third quarter of 1999. Of the loss, $203.1 million
($3.33 per diluted share) was related to Finova's Commercial Services, Corporate
Finance, Business Credit, Growth Finance and Distribution & Channel Finance business
units, which are being accounted for as discontinued operations and $71 million
($1.16 per diluted share) relating to continuing operations. For the nine months
ended Sept. 30, 2000, the company reported a net loss of $220.7 million ($3.62
per diluted share) compared to net income of $158.6 million ($2.52 per diluted
share) for the first nine months of 1999. The year-to-date results reflects a
$253.0 million ($4.15 per diluted share) loss from discontinued operations and
income of $32.2 million ($0.53 per diluted share) from continuing operations.
Three Months Ended - Sept. 30 2000, 1999; Nine Months Ended - Sept. 30 2000,
1999 (In Millions): Net of Tax Income (loss) from continuing operations $(71.0),
$54.9, $32.3, $159.5 Income (loss) from discontinued operations $11.8, --, $(38.1),
$(0.9) Net loss on disposal of operations $(214.9), --, $(214.9), -- Net income
(loss) $(274.1), $54.9, $(220.7), $158.6 During the third quarter, Finova began
to implement a new strategic direction, focusing on core specialty niche businesses.
On Aug. 28, 2000, the company completed the sale of substantially all assets of
its Commercial Services division to GMAC Commercial Credit, a wholly owned subsidiary
of General Motors Corporation, for approximately $235 million. In addition, Finova's
Corporate Finance (includes Business Credit and Growth Finance) and Distribution
& Channel Finance divisions have been offered for sale. The company is also trimming
operating expenses to reflect the dispositions of these business units.
Finova
President and Chief Executive Officer Matt Breyne said, "Divesting these business
units will strengthen our balance sheet, improve liquidity, and assist in addressing
$2.1 billion of principal payments due in May 2001 under the company's credit
facilities, of which $500 million can be extended over a two year term-out if
no defaults exist at that time. We continue to evaluate Finova's entire product
line to help assure that we move forward with the most profitable, highest franchise
value businesses."
Finova reported a loss from continuing operations of $71.0
million for the third quarter of 2000 compared to income of $54.9 million in the
third quarter of 1999. The reduction was primarily due to higher loss provisions,
losses applicable to charge-offs of investments and assets held for sale, a significant
increase in the cost of funds and an increase in nonaccruing accounts. Cost of
funds increased due to credit rating reductions during 2000. The impact is reflected
in the $9.9 million decline in interest margins earned for the quarter ($115.4
million in the third quarter of 2000 vs. $125.3 million in the third quarter of
1999) despite portfolio growth of $669.7 million. The reduction in credit ratings
since Mar. 31, 2000 included: Senior Debt, From - To; Commercial Paper, From -
To
Moody's Baa, B1, P-2, NP
S&P A-, BB, A-2, B
Fitch A, B, F-1, B
The impact of these downgrades and the company's decision to exercise term-out
options under its $4.7 billion of back-up bank facilities was an increase in floating-rate
borrowing costs. The all in spread over LIBOR was approximately 1.27% than the
comparable spreads in the third quarter of 1999 (all in spread of 1.48% in 2000
vs. 0.21% in 1999). As a result, interest margins earned annualized as a percent
of average earning assets declined to 4.8% in the third quarter of 2000 from 5.7%
in the comparable 1999 period.
Loss provisions increased to $111.2 million,
up $97.7 million over the comparable quarter of 1999, to bolster the reserve for
credit losses. The reserve was increased to 2.4% of ending managed assets (up
from 1.7% at June 30, 2000), reflecting the increase in problem accounts. Nonaccruing
assets increased to $421.0 million at Sept. 30, 2000, up from $229.3 million at
June 30, 2000. The most significant increase during the quarter ($127.1 million)
occurred in Finova's Resort Finance division due primarily to $117.4 million related
to Sunterra, which was classified as accruing impaired at June 30, 2000, as well
as $23.5 million to eight related project development entities managed by a developer
that has experienced a decline in earnings and a significant reduction it its
net worth. Other increases in nonaccruing assets included $32.5 million in Healthcare
Finance and $31.7 million in Communications Finance. Nonaccruing assets as a percent
of ending managed assets increased to 3.9% from 2.1% at June 30, 2000. Accruing
impaired assets increased to $246.9 million at Sept. 30, largely due to an additional
$148.2 million outstanding from the eight related Resort Finance project development
entities. Other increases included $37.8 million in Franchise Finance and $10.4
million in Specialty Real Estate Finance. Net write-offs of financing contracts
were $30.8 million ($17.8 million in Mezzanine Capital) in the third quarter of
2000 compared to $8.0 million in the 1999 period. While non accruing and accruing
impaired assets have increased, FINOVA believes that significant collateral exists
to secure the recent additions.
Losses on investments and disposal of assets
totaled $90.0 million for the quarter, consisting of a $109.0 million loss from
the charge-off of investments, repossessed assets and equipment held for sale
or lease, partially offset by gains of $19.0 million from sales of equity securities
and residuals coming off lease. The largest charge-off was a $54.8 million equity
investment in the major Resort Finance developer mentioned above. Transportation
Finance also had charge-offs of $17.9 million, principally related to assets held
for sale or lease. The gains during the third quarter of 2000 included $4.8 million
from Finova's remaining investment in Healtheon/WebMD.
Operating expenses
were lower during the third quarter of 2000 when compared to the 1999 quarter,
($29.5 million vs. $40.2 million) principally due to the reversal of sales and
management incentive accruals together with an overall lower level of expenses
resulting from the reduced activities of the company. The efficiency ratio (operating
expenses as a percent of operating margins) was 25.5% in the third quarter of
2000, compared to 31.1% in the third quarter of 1999.
Results from discontinued
operations for the quarter and first nine months of 2000 included income from
operations, net of tax of $11.8 million in the third quarter and a loss of $38.1
million for the nine months of 2000. The net loss for the nine-month period was
due to write-offs taken during the first six months of 2000, the largest of which
was $70 million taken on a Distribution & Channel Finance customer in the first
quarter of 2000. On Nov. 10, 2000, Finova and Leucadia National signed a letter
agreement under which Leucadia would invest up to $350 million in Finova. The
agreement is subject to reaching a mutually satisfactory arrangement with Finova's
bank group and certain other customary conditions, including regulatory approvals.
Finova, Leucadia and Jay Alix & Associates are currently working together to present
a comprehensive plan to the bank group.
Seattle's latest Internet company to fold: eSociety
By JOHN COOK
SEATTLE POST-INTELLIGENCER REPORTER
Bellevue-based
eSociety, which created Web sites for trade organizations, closed down last week
and laid off its remaining staff.
It is the fifth Seattle-area Internet company
to cease operations in the past 35 days. Other local companies such as Freeinternet.com,
MyLackey.com, Onecast Media and Jacknabbit.com have closed in recent weeks as
venture capital dollars have dried up for second- and third-round deals. While
those companies operated consumer-oriented businesses, eSociety focused on business-to-business
e-commerce. That area of Internet commerce has avoided the high-profile failures
of consumer businesses. But many venture capitalists and industry watchers predict
a significant shakeout in that sector in the coming months.
Wayne, Pa.-based
Internet Capital Group, an investor in business-to-business e-commerce companies,
said Thursday it would lay off 50 employees and may not provide additional financing
to 45 of its 60 privately held companies. Internet Capital Group, which recently
closed its office in Seattle, is an investor in Issaquah-based TeamOn, Bellevue-based
Courtlink and Seattle-based Onvia.com.
Founded in 1998 by Internet entrepreneur
Tom Poole, eSociety built targeted Web communities for the National Housewares
Manufacturers Association, the National Truck Equipment Association, the Northwest
Venture Group and the Consumer Science Business Professionals Association. Despite
raising $15.5 million in a second round of funding in June, the company decided
to pull the plug after a re-organization to focus on e-commerce software in August
didn't work.
"At least they decided to give it up before they ran out of money,"
said a person familiar with the situation. "They took a realistic look at it and
said they didn't have the money to make it over the long haul."
At its peak,
the company employed 111 people. It laid off 45 employees in August, leaving a
staff of 55 people at its headquarters in Bellevue. Financial backers of the company
included Silicon Valley firms Comdisco Ventures and Technology Crossover Ventures.
"Naturally, we are disappointed with the outcome for eSociety, but we are very
proud of our team and what they accomplished," the company wrote on its Web site.
"We will always be glad we had the opportunity to work with many fine organizations
dedicated to meeting the needs of association memberships and other constituents."
55
Leasing Companies Major Changes
Affinity Leasing, Washington ( 12/2000 to close )
American Business Leasing
( gone )
Balboa Capital ( Founder Byrne "...office available any time he wants
to use it" ).
The Bancorp Group, Inc. (Southfield,
MI) (Not accepting news business. The BOD of the parent bank is assessing
what to do with the leasing subsidiary.....currently servicing portfolio but not
originating. no longer in business )
Bankvest (bankrupt)
Bombadier ( reported having problems, not confirmed )
BSB Leasing (11/2000
closed to accepting new buisness )
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 )( 10/2000 Dow Jones headlines "Finova Stock Falls As Buyout Hopes
Wane 10/2000 Dow Jones notes stock falling and problems
at Finova 11/2000 Announces they will discontinue business,
sell units 11/2000 Suspends Dividend 11/2000 Leucadia National to Invest $350
Million in Finova 11/2000 reports $274 million loss ))
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 ).
Franchise Mortagage Acceptance Corporation (FMAC) 11/1999
purchased by Bay View Commercial Corporation (Bay View Bank) 9/2000 discontinuing
all franchise loan and lease production.
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 11/8 New President
at Orix appointed 11/10 First Six Month Profits up 14%
at Orix! )
Phoenix ( both divisions closed )
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 )
Signature Financial Group, Danville, Califronia.
( 11/2000 no longer in small ticket marketplace )
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 (10/2000 filed
Chapter 11. Creditors meeting on 12-4-00 Seattle. Case # 00-10868 US Bankruptcy
Court Western District of Wash. 206-553-7545. Debtor Attorney-Marc Barreca
206-623-7580)
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, BofA extends credit to November
20, as Unicapital closes down divisions, not accepting new business, winding down,
reportedly to file bk Nov 15 ).
Varilease ( 11/2000
closed down )
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.
