|
|
October 30,2001 Headlines--- Government posts $127 billion surplus for fiscal 2001, down from record $237 billion
For E-commerce, a Return to Normalcy eBay Committed to Growth, Partners with Key3Media MicroBilt Acquires Leading Provider of Instant Online Loan Approval Technology MindBox and CapitalStream Form Strategic Alliance Newspaper Circulation Down, Advertising, Too Multistate Sales Tax Update ---by Dennis Brown, Equipment Leasing Association Pentagon unveils smart identification cards with tiny computer Monday Odds and Ends Highlights: ELA E-Leasing Newsletter CONVENTION SPECIAL!!! Man arrested in alleged fraud with phony Internet company Special: September-October Lease Closer by Mike Graneri http://www.leasingnews.org/articles.doc/newsletter7.htm The Lease World How to Sell on the Internet Section 179 Lease Selling # ### denotes press release ------------------------------------------------------------------------------------------------------ Government posts $127 billion surplus for fiscal 2001, down from record $237 billion By Jeannine Aversa ASSOCIATED PRESS WASHINGTON – The sour economy and tax rebates made for a smaller, $127 billion surplus for the 2001 budget year compared with the record bounty produced the year before, the Bush administration announced Monday. It was the first time since 1992 that the government's balance sheet didn't show an improvement. At that time the government's deficit had bloated to a record $290 billion; in subsequent years the deficits shrank and since 1998 the government has recorded surpluses. The 2000 surplus was $237 billion. Even with the deterioration in the government's finances, the 2001 surplus marked the second-biggest ever in U.S. history. Government finances have not shown so many consecutive years of surplus since before the Great Depression; an 11-year string of surpluses ended in 1930. Projections for the 2001 surplus have been revised downward by White House and congressional budget analysts this year as the economy, stuck in low gear for more than a year, continued to weaken. The Congressional Budget Office earlier this month estimated that the 2001 surplus would be $121 billion, well below the $153 billion projected in August. The White House said it could be as low as $120 billion, versus an August estimate of $158 billion. The smaller surplus in the 2001 budget year, which ended Sept. 30, reflects the weakening economy's toll on tax revenues and the impact of provisions contained in President Bush's $1.35 trillion, 10-year tax cut, which was approved by Congress in the spring, the CBO said. The tax cut resulted in about $35 billion in rebate checks over the summer, the CBO said. The tax law also shifted the due date for corporate income tax payments – estimated to total around $33 billion – from mid-September to Oct. 1, which marked the start of the 2002 budget year. The Sept. 11 attacks on the World Trade Center and the Pentagon also contributed to the smaller 2001 surplus as government spending in some areas was increased after the disaster. But the impact was limited since the budget year ended Sept. 30. Some economists believe the government will post a deficit in the 2002 budget year, the first shortfall since 1997, reflecting costs of reviving the ailing economy and protecting the nation against terrorist attacks. In August, experts projected a $176 billion surplus for the new fiscal year that started Oct. 1, but now it is all but certain to end up as a deficit in the tens of billions. Many economists say economic fallout from the attacks pushed the economy into recession this calendar year. Analysts predict economic output fell in the third and fourth quarters, meeting one common definition of a recession. In the 2000 budget year, the government posted a record surplus of $237 billion as the economic boom bolstered tax revenues. That surplus surpassed the previous record of $124.4 billion for fiscal year 1999 and came on top of a $69.2 billion surplus in fiscal year 1998. The 1998 surplus marked the first time the government had managed to finish in the black since 1969. The surpluses are important because politicians have been counting on them to reduce the national debt over the next decade. That would put the government on more solid financial ground and help bolster Social Security and Medicare for the looming retirement of the baby boom generation. Revenues for fiscal year 2001 totaled $1.99 trillion, while expenditures came to $1.86 trillion. Individual tax payment totaled $994.3 billion, compared with $1 trillion in fiscal year 2000. Payments from corporate taxes came to $151.2 billion, from $207.3 billion. The biggest spending categories in fiscal 2001 were: Social Security, $461.7 billion, up from $441.8 billion; programs of the Health and Human Services Department, including Medicare and Medicaid, $426.4 billion, up from $382.6 billion; interest on the public debt, $359.5 billion, compared with $362 billion; and military spending, $291 billion, up from $281.2 billion. ____________________________________________________________________ By Beth Cox
E-Commerce News E-commerce sales have largely returned to normal following the events of Sept. 11, says a new report, with the one exception being (no surprise here) the travel sector.
Reston, Va.-based comScore Networks said its data for domestic e-commerce transactions for the five weeks from Sept. 11, through Oct. 21 shows online sales of hard goods have returned to levels seen prior to the attacks on the United States, but online dollar sales of travel services remain 17 percent below pre-attack levels.
The hard goods spending data would appear to jibe well with other recent predictions that a record $9.9 billion will be spent during the upcoming holiday season, an increase over last year's $6.9 billion.
During the week ending Oct. 21, total domestic e-commerce sales totaled an estimated $929 million, or 7 percent below the average week observed during a benchmark period calculated over the five months preceding Sept. 11, comScore said. The decline is entirely attributable to the continued softness in travel service purchases, the measurement firm said.
During the first four weeks following the attacks, comScore said its data also showed a sharp contrast in consumer purchasing in "essential" versus "discretionary" product categories.
Essential product categories such as Apparel and Health & Beauty suffered a drop of 27 percent during the week of the attacks, but their sales quickly rebounded to levels even higher than those seen before Sept. 11. By contrast, while sales of discretionary categories such as Consumer Electronics, Books and Event Tickets declined 24 percent during the week of the attacks, these categories have returned to normal sales levels only in the most recent week.
"The tragedies have taken a toll on Americans which is evident in their spending patterns, but in ways that differ by product category," said Dan Hess, comScore Networks vice president of marketing communications. "Not surprisingly, Travel has fared the worst, with sales continuing well below historical levels as consumers wrestle with concerns about safety and airport delays."
"Looking at Hard Goods, for a full month following the attacks it appears that many consumers adopted a 'wait and see' approach -- or even lost their desire to make discretionary purchases, preferring to concentrate their spending on more essential items," he said. "This pattern would appear to be a typical one during periods of emotional stress and economic uncertainty."
comScore, which is privately held, says its statistics are based on the online activity of a representative cross section of over 1.5 million anonymous Internet users, who have given permission for their browsing and buying behavior to be monitored. ________________________________________________________________________ \ eBay Committed to Growth, Partners with Key3Media By Beth Cox E-Commerce News Auction giant eBay Inc. on Monday held its annual financial analyst conference, reaffirming its aggressive growth targets despite the harsh business climate and its ongoing "Auction for America" -- the online charity initiative that raises funds for Sept. 11th victims, families and communities in lieu of its bottom line. eBay officials told analysts gathered in Santa Clara, Calif., that it is still holding to its 2005 revenue goal of $3 billion. Additionally, it said it believes net revenues for 2002 should be about $1.05 billion to $1.1 billion, with 2002 pro forma earnings per share coming in between 70 cents and 73 cents per diluted share. "The depth, breadth and potential of our business gives us great confidence in the future," said Meg Whitman, president and chief executive officer of eBay. "The eBay marketplace is thriving across geographies, trading categories, pricing formats, listed itmes, user growth and the services we offer our community." However, despite the upbeat meeting, eBay shares (NASDAQ:EBAY) slumped in Monday trading. The company also signed a deal with IT trade show and conference producer Key3Media Group Inc. to promote its growing computer and IT-related businesses at COMDEX and NetWorld+Interop events in North America. Los Angeles-based Key3Media (NYSE:KME) also will promote eBay's ambitious "Auction for America," a charity effort that allows people to buy and sell goods online to raise money for the victims, families and communities affected by the Sept. 11 terrorist attacks. Financial arrangements between the companies were not disclosed. eBay President and CEO Meg Whitman also agreed to address COMDEX Fall 2001 in a keynote talk at the event next month. Whitman will speak on Nov. 14 at noon in the Las Vegas Hilton. Key3Media said that at COMDEX Fall 2001 (Nov. 10-16) eBay will be promoted throughout the event with eight eBay kiosk stations, event-related print media and links on the comdex.com event Web site. And sure enough, the site today was featuring a Today in eBay Auctions link. "eBay has become a leading marketplace for computer and IT buyers and sellers," said Whitman. "Our new relationship with Key3Media provides us with a great way ... to reach the technology industry ..." "We do not break down the individual categories but it is safe to say that we have seen a gradual increase in the number of IT related items sold on the site during the past year," eBay spokesman Kevin Pursglove told InternetNews.com. "We believe some of the growth can be attributed to the dot.com downturn of the past year. Also, we believe that more businesses are realizing the potential of the eBay marketplace as a viable sales option." The promotional push for the charity auction certainly will help; eBay said last week that the ambitious auction (with an announced goal of $100 million) had raised $5 million in its first month. The effort is scheduled to end Dec. 25. #### ###################### ################## MicroBilt Acquires Leading Provider of Instant Online Loan Approval Technology
KENNESAW, Ga FIData joins forces with MicroBilt to Enhance Suite of Online Loan Engine Products MicroBilt Corporation, the premier provider of credit and decisioning access via the Internet, announced today a definitive agreement to acquire 100% of the stock in FIData, Inc., a wholly owned subsidiary of New Century Equity Holdings Corporation and a leading provider of instant online credit approval technology. Through the acquisition, MicroBilt plans to expand its automated lending tools to institutions that wish to private label and outsource instant lending solutions. FIData brings to MicroBilt their V4 Instant Loan Decision Solution. V4 is a server-based instant online loan approval product that allows lenders control over their entire loan process. V4 gives lenders the ability to customize rates, terms and products offered and incorporate credit scores and all underwriting rules - including custom scorecards into the decisioning engine. Borrowers can apply at the lenders web site or on site at the loan representatives' desk. Within seconds, borrowers are approved or referred to a loan officer. More importantly, it provides lenders with immediate tools to alter decisions and credit products offered based on market risk and fluctuations, which is so critical in today's volatile marketplace. According to FIData President, Blake Allen, "The FIData acquisition brings together companies who both understand and are dominant leaders in the decisioning and credit reporting marketplace. This experience combines high end automated decisioning tools with strong synergies in our products to lenders of all sizes across dozens of industries." "MicroBilt is excited to bring more sophisticated lending tools to our customers," said Ken Hill, President of MicroBilt Corporation. "MicroBilt has taken great measures to develop an array of decisioning products and services to lenders that offer convenience and customization that fit their needs and development budgets, which in turn increases their sales pipeline and profitability overall." About FIData FIData, Inc. is one of the leading providers of instant online loan approval services for the financial services industry. Processing $1.1 billion in loans in 2000, this online loan engine allows participating lenders to offer their borrowers loan approval within 60 seconds or less, on a 24x365 basis. FIData's services also streamline back-office lending functions and provide online lending capabilities to third-party lending partners such as auto dealers, call centers or retailers. The Company's new E-Care and Lending Call Center provides borrower assistance to users of the online loan approval system, in addition to providing more traditional telephone and fax services to offline borrowers. All of FIData's services are branded for the client institution; FIData's identity is invisible to the user/borrower. Presently serving more than 100 client institutions nationwide, loan application volumes topped 100,000 applications in 2000 and are continuing to grow at a rapid pace. As an Application Service Provider (ASP), FIData provides the power of its loan underwriting technology via the Internet in a secure environment, requiring no hardware or software purchases from its clients. FIData is an Austin, Texas-based Company led by executives with extensive experience with Internet technology and the financial services industry. Located at www.fidata.com, FIData has served financial institutions since 1988. The company was a subsidiary of New Century Equity Holdings Corp. (NASDAQ: NCEH), a holding company focused on high-growth technology-based companies and investments and is a financial investor in MicroBilt. About MicroBilt MicroBilt, a division of Bristol Investments, Ltd., is the North American leader in credit bureau data access and retrieval, providing credit solutions to the Financial, Rental or Leasing, Health Care, Insurance, Law Enforcement, Education and Utilities Industries. MicroBilt is certified through and provides interfaces with the three consumer bureaus, Equifax (NYSE: EFX), Experian (London Stock Exchange: GUS) and Trans Union and the two commercial bureaus, Dun & Bradstreet and Experian Business. Bureau data is available via dedicated terminals, dial-up software, Internet website access (www.creditcommander.com), or through an integrated custom interface utilizing their Software Developers Kit. Private company information along with knowledge-based analytical tools and information services is available through MicroBilt's recent acquisition, Integra Information, Inc. The company also enables web sites to enhance their content offerings by delivering a CreditCommander.com and PrivateCo.com co-branded site to their established online communities. MicroBilt services over 30,000 customers throughout the United States and Canada. Formerly a First Data Corporation (NYSE: FDC) subsidiary, MicroBilt Corporation, maintains offices in Georgia and New Jersey. For more information, contact MicroBilt Corporation, 1640 Airport Road, Suite 115, Kennesaw, GA 30144. Telephone: 1-800-884-4747. Or visit their website at www.microbilt.com. ### #################################### ####################### MindBox and CapitalStream Form Strategic Alliance; Partnership Offers Intelligent Lending Process to Small Business Marketplace
GREENBRAE, Calif.--( --MindBox(TM), the worldwide leader in providing intelligent software to automate complex business and decision processes, and CapitalStream (www.CapitalStream.com), a Seattle-based provider of commercial finance automation technology for banks, financial institutions and manufacturers, today announced that they have formed a partnership that will enable both companies to jointly offer loan automation solutions to the small business and leasing market. The partnership will provide customers with the ability to integrate the two companies' products to create an automated lending and leasing system focused on providing highly-personalized loan and lease options to customers. "CapitalStream's experience in the small business and leasing marketplaces, coupled with our technology and experience in financial services markets such as mortgage, combine to make an unbeatable solution," says Richard Barfus, CEO and president of MindBox. "Customers will benefit from the combination of MindBox's sophisticated decisioning and CapitalStream's state of the art workflow and loan processing software. Now financial institutions will be able to give small business owners the specific loans or leases they need quickly and efficiently." "CapitalStream is pleased to be working with MindBox. Our technology is the perfect compliment to their decisioning software," said Stephen Campbell, president and CEO of CapitalStream. "Together with MindBox we are offering the market a complete solution that will save customers time and money by streamlining their current business processes." The combined MindBox/CapitalStream partnership will make the following solutions available to joint customers: -- Provides an intelligent, interactive loan process for small business owners and manufacturers; -- Determines the qualified products and associated price for individual customers; -- Creates an audit log of activities; -- Manages the flow of loan or lease processes. About MindBox, Inc. Based in Greenbrae, Calif., MindBox, Inc. is a technology company that helps financial services companies gain a competitive edge by intelligently automating their complex business and decision processes. The company develops and markets innovative software and consulting solutions that leverage industry and internal best practices to deliver multi-channel, intelligent solutions designed to optimize client interactions. For more information, please visit MindBox's Web at www.mindbox.com or call 877/650-MIND (6463). About CapitalStream Seattle-based CapitalStream automates and streamlines commercial finance processes for banks, finance companies, and manufacturers. CapitalStream -- FinanceCenter(TM), a patent pending technology, reduces processing time, lowers costs, and enables companies to cost effectively take advantage of new business opportunities by automating manual processes for leases, loans, lines of credit, and credit cards. CapitalStream, an established industry leader for more than five years with deep knowledge about the inner workings of the financing world, has helped hundreds of financial organizations increase their competitiveness, customer service and profitability. For more information visit www.capitalstream.com. Note to Editors: MindBox(TM) is a registered trademark of MindBox, Inc. All other company and product names may be trademarks of their respective owners. ### ########################### ########################### Newspaper Circulation Down By Associated Press, Average weekday circulation of the nation's 20 biggest newspapers for the six months ended Sept. 30, with percent change from the same period last year, as reported by the Audit Bureau of Circulations. The figures are the first to be compiled under new rules allowing publishers to count as paid circulation any copies that are sold for at least 25 percent of the basic price, including sales to third parties such as hotels and airlines. The previous limit was 50 percent of the basic price. 1. USA Today, 2,241,677, down 0.6 percent 2. The Wall Street Journal, 1,780,605, up 1.0 percent 3. The New York Times, 1,109,371, up 1.1 percent. 4. Los Angeles Times, 972,957, down 4.9 percent. 5. The Washington Post, 759,864, down 0.7 percent. 6. New York Daily News, 734,473, up 4.6 percent. 7. Chicago Tribune, 621,305, up 0.2 percent. 8. Newsday of New York's Long Island, 577,354 up 0.1 percent 9. Houston Chronicle, 551,854, up 1.1 percent (including Saturday circulation) 10. New York Post, 533,860, up 22 percent. 11. San Francisco Chronicle, 512,042, up 12 percent. 12. The Dallas Morning News, 509,562, down 0.8 percent 13. Chicago Sun-Times, 480,920, up 1.9 percent. 14. The Boston Globe, 471,199, up 0.9 percent 15. The Arizona Republic, 451,288, up 0.1 percent (including Saturday circulation) 16. The Star-Ledger of Newark, N.J., 410,547, up 0.7 percent. 17. Star Tribune of Minneapolis-St. Paul, 376,765, up 0.7 percent (including Saturday circulation) 18. Detroit Free Press, 371,261, up 1.2 percent 19. The Philadelphia Inquirer, 365,154, down 8.8 percent. 20. The Plain Dealer, Cleveland 359,978, down 1.3 percent Source: Audit Bureau of Circulations On the Net: http://www.accessabc.com ________________________________________________________________________ Multistate Sales Tax Update ---by Dennis Brown, Equipment Leasing Association --Tangible Personal Property and Software Defined As reported by E-Tax News Flash from KPMG, the Streamlined Sales Tax Project (SSTP or Project) has released a draft definition for tangible personal property (TPP) that would include digital property sold on tangible storage media. The definition was released at the same Project meeting in Louisville, Kentucky during which the lease/rental definition was completed. The draft definition, which does not represent the final position of the SSTP, provides: 'Tangible personal property' means personal property that can be seen, weighed, measured, felt or touched, or that is in any other manner perceptible to the senses. Tangible personal property includes electricity, water, gas, and steam. Tangible personal property also includes digital property when stored on tangible storage media, such as tapes and disks. Software Definitions The SSTP also released new draft definitions for computer software, custom computer software, modifications to computer software, and configuration of computer software. These draft definitions are: 'Computer software' means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. 'Custom computer software' means computer software that has been designed and created exclusively for a specific identifiable customer. Custom software does not include computer software modules that existed prior to entering into a contract or agreement for the sale, lease or license of customer software. 'Modifications to computer software' mean changes or additions to a set of coded instructions. 'Modifications to computer software' do not include selecting or changing preferences or defaults. 'Configuration of computer software' means selecting or changing computer software preferences or defaults. Digital Property Delivered Electronically The SSTP also released a draft definition for digital property delivered electronically. The draft definition provides: 'Digital equivalent of tangible personal property' means digital property delivered electronically that would be tangible personal property if transferred on a tangible storage device... 'Delivered electronically' means delivered by means other than tangible storage media. The Streamlined Sales Tax Project (SSTP) has released the definition of leasing and rental that is provided below. Herein I forward a suggested amendment for your review. Any comment on the proposed revision can be sent by return email to dbrown@elamail.com
Dennis Brown DBROWN@ELAMAIL.COM Pentagon unveils smart identification cards with tiny computer By D. Ian Hopper, Associated Press WASHINGTON (AP) The nation's increasingly high-tech soldiers are getting another computer in their arsenal this one wallet-sized. The Pentagon began arming four million troops and civilians on Monday with ''smart'' ID cards that will allow them to open secure doors, get cash, buy food and soon check out weapons and other military hardware. The cards, about the size of a credit card, will replace the standard green ID cards now used by Defense employees. They include a bar code, circuit chip and magnetic stripe to store personal information about its holder. With it, soldiers can access secure Defense Web sites, log into their computers and digitally encrypt and sign their e-mail. ''It is their passport to the electronic world,'' Defense personnel chief David S.C. Chu said after receiving his card. Through the Internet at more than 900 issuance sites worldwide, a soldier gets his digital picture taken and his fingerprint stored and picks a personal identification number. In about 10 to 15 minutes, he gets his card. John P. Stenbit, the Pentagon's chief information officer, said the card will help solve the ''hurry up and wait'' syndrome in the military, where paperwork can bog down processes. If a card is lost, officials said its digital signatures will be deactivated once it is reported, and the employee will get a new card. The government has had a tough time tracking credit cards, The Associated Press reported in August, with at least 15 agencies reporting that they have more issued cards than employees. The smart cards cost the government about $8 each. The cards also offer an added security benefit, he said, in an attack similar to the Pentagon crash. ''It's not just 'Gee, that's really neat,''' Stenbit said, ''but if you have an incident, you can tell who's gotten out of the building and who's still stuck in there.'' At a computer terminal, soldiers will swipe the card and type in their numerical password. The password provides an extra level of security. ''There is something she has and something she knows,'' said Rob Cobb, a software developer at military contractor Electronic Data Systems. ''It's an important separation.'' Within months, a soldier will be able to swipe his card to check out a weapon or ammunition, and the card can store his sharpshooting score. There are about 3 billion smart cards worldwide, according to industry analyst Frost & Sullivan, but the vast majority are tiny cards used to activate cellular phones on the network most common to Europe. Smart cards are also used extensively in South Africa and Argentina. Credit-card sized smart cards have taken longer to catch on in the United States. Some large companies, like Sun Microsystems, use them for employee identification. Perhaps the best-known smart card is the ''Blue'' credit card by American Express. ''We don't seem to have adopted as quickly to this technology, and I'm glad to see us moving forward,'' Stenbit said. The slow pace is partly due to privacy concerns. A plan for a national identification card, proposed by Oracle chairman Larry Ellison and briefly considered by Attorney General John Ashcroft and Democratic Sen. Dianne Feinstein of California, fizzled several weeks ago after privacy groups raised concerns the cards would allow the government to monitor citizens' activities. The military is also worried about packing too much information into the card. There is little encoded on the smart chip like a fingerprint that isn't visible on the card's face. There's only so much that can be packed into the chip's tiny memory, as well. ''There's a very limited amount of intrusion into anyone's privacy,'' Stenbit said. While officials are considering whether encode medical data onto it, they said that step is very far off. ''That's a more complex subject,'' Chu said. On the Net: Defense Department: http://www.defenselink.mil Electronic Data Systems: http://www.eds.com Schlumberger Sema: http://www.slb.com ____________________________________________________________________ Monday Odds and Ends: Enjoy your publications. I find them most informative. Please add this site to your E-mail list. ~~ Kit, Your review of the UAEL Conference was excellent. I printed the report and read through it carefully. I feel as though I was there. Good work. Congratulations on being elected to the board, I think? I hope you will be able to maintain the neutrality that you want and need. Stan
Nathanson ( Thank you. I think I can maintain the objectively. What I vote on, whether yes or no, will not affect my ability to present all sides. In the issue of the by-laws change, I personally did not express an opinion or let anyone know how I voted. My number one goal is to be objective, then fair, and as accurate as possible. If I cross the line, please don’t hesitate to let me know, and knowing Stan as well as I do, he is not bashful. editor ) ~~~ Thanks for the good report. Archie Julian ~~~ I am always impressed with the timely and pertinent information that you are able to distribute to the industry through LeasingNews. I admire the firm stance on integrity which you possess and always defend. Jane (Hackforth) Stewart-Smith ~~~~ Hey, Kit, liked the report, but guess what? You didn’t say anything about Sean Wheeler being at the conference. He said he would be there! Izzy Finster ( He wasn’t listed as an attendee or exhibitor. In fact, the last I heard he was working out of his house. Don’t know what happened to 1lease, either. They weren’t there. editor ) ~~~ please remove me from your mailing lists. I am leaving the business, thanks for your information in the years past. Norman Stacey Capital Solutions Group Phone 770-577-7402 Fax 770-577-8270 ( And thank you for letting us know. There are some they do not, and when the mail comes back, it comes back under the ISP address. Sometimes we have difficulty in locating it. editor ) ~~~ Have you gotten any feedback from aircraft lessors about the huge drop in plane values? I know of one big securitization issuer teetering on the brink of BK with $1 billion in securitized debt. Aircraft values down just under 80%!!! I would expect aircraft securitization bonds to be down-graded from inv grade to junk. Hugh Connelly ( good question. Maybe our readers can answer you. editor ) ~~~ Corrections: It was Charlie Lester, not Phil Dushey, who coined our new motto “ The Conscious of the Leasing Industry.” At our board dinner at the Las Canarias at the La Mansion del Rio Hotel in San Antonio, Texas, he led a salute to Kit Menkin, thanking him for his hard work, wondering how he was able to get any leasing deals done, and stated our electronic newspaper had become “The Conscious of the Leasing Industry.” _______________________________________________________________________ Monday’s Leasing News was sent from my laptop, and perhaps the format was not the same as sent by my computer. The online version is the easiest always to read: www.leasingnews.org editor _________________________________________________________________ ******************************** ELA E-Leasing Newsletter CONVENTION SPECIAL!!! ******************************** DATELINE: Boca Raton, FLA--10/29/01 This is a special edition of the ELA E-Leasing Newsletter, which is published every Thursday and is sponsored by the Equipment Leasing Association and its co-sponsors. To Get Full-Text Stories, go to the web page associated with the story you wish to read. The links to news stories require an ELA MEMBERS-ONLY NAME AND PASSWORD. To receive a password, please contact Daniel Aubain at database@elamail.com or phone 703/516-8377. NOTE: Address change/unsubscribe instructions and contact information can be found at the end of this e-mail. If you received this e-mail(but it was NOT forwarded to you by someone else) you are ALREADY subscribed. *********** The E-Leasing Newsletter is SPONSORED by: ********** Nassau Asset Management Recovery and Remarketing Specialists 1(800)462-7728 or 1(800)4-NASSAU GO HERE>>>>>> http://www.nasset.com WE GET RESULTS!!!!!!!!! Servicing The ELA for more than 10 years!!!!!! ***************************************************************** *****Look For Tuesday¹s Special Convention E-Leasing Newsletter for more updates from Boca! *********** The E-Leasing Newsletter is SPONSORED by: *********** Southfork Asset Management Corp. Recovery & Remarketing Specialists Nationwide Coverage * Immediate Turnaround * High Resale Value Lease and Loan Default * End-of-Lease Return "Bringing Asset Management To The Next Level!" (877) 99-ASSET * (877) 992-7738 * Click Here >> http://www.southforkasset.com ***************************************************************** ****************************** 1. Upbeat in Boca! ****************************** If anyone doubted the leasing industry¹s determination to persevere and get on with business in the face of turbulent economic times and grim national news, 1150 lessors and service providers say different. They¹re all here in Boca Raton for the 40th Annual ELA Convention, and they¹re doing what they do best: talking business, gathering information and enjoying the company of friends. Sunday¹s LeasePAC golf and tennis tournaments took advantage of some beautiful Florida weather, while last night¹s Opening Reception, sponsored by CIT, and the accompanying LeasePAC Silent Auction were loud, crowded and a heck of a lot of fun. Want proof? Click on http://www.elaonline.com/events/2001/AnnConv/pictures/ to see photographs from the convention. Don¹t forget to check back--we¹ll be adding new ones regularly. ****************************** 2. Historically, Leasing is Tough Enough ****************************** So why are convention attendees giving off such a positive attitude? One reason might be self-confidence. ³Leasing has a remarkable record of success,² outgoing ELA Chairman Rick Wolfert told Monday morning¹s General Session audience. For those who¹d been in the industry in the early 80¹s and early 90¹s, he said, the current economic trouble is ³like de ja vu all over again.² The industry rode out those two recessions to thrive and grow dramatically in the years afterward, proving that, ³With crisis comes opportunity.² And since Wolfert believes ³the stage is set for a strong recovery in the second hald of 2002,² why should now be any different? Of course, given the realities of today¹s market, having history on your side isn¹t enough. ³Capitol is king,² Wolfert said. ³Access to capital is the sing biggest competitive advantage for a leasing company.² Lessors also must contend with industry consolidation and seek opportunity to expand their offerings beyond the lease product. Finally, risk management is more critical than ever. Keynote speaker Adrian Slywotzky, consultant and author, offered his own list of management do¹s and don¹ts for surviving the downturn. If cuts are needed, he said, ³Don¹t try to cut Œfairly¹ across your business. This is no time to be democratic in resource allocation. Invest in the best people and initiatives, and cut the rest.² Don¹t ³hunker down² in an attempt to wait out the recession. Instead, he urged lessors to ³accelerate your next business design.² Asked about the characteristics of successful executives, Slywotzky replied that ³the people who¹ve done the best have spent 40 50 percent of their time with customers,² listening to them and understanding their needs. ³And not the customers you like,² he stressed. ³The tough ones who are a harder sell.² Look for full ELA Convention coverage in the November/December issue of Equipment Leasing Today. ************* The E-Leasing Newsletter is sponsored by: ************* AssetControl Corporation Your full service asset management company. Including: Recovery, Remarketing, Appraisal, Inspection, & Auctions 1(888)227-0444 email: info@assetcontrol.com VISIT OUR WEBSITE >>>>>> http://www.assetcontrol.com ********************************************************************* ****************************** 3. War and Leasing ****************************** With the distance of seven weeks from the attacks of September 11, lessors are asking themselves more practical questions about what the national crisis has and will mean for the business of leasing. Anecdotally, the evidence is mixed. Making an unequivocal statement about the entire leasing industry is as hard to do as predicting the future. One leasing executive was overheard saying, ³Word around [the convention] is that business has really picked up in that last three weeks.² Many lessors say their businesses were never overly affected by the terrorism. Caterpillar Financial¹s Jim Beard told a Saturday meeting of the ELA Board of Directors that Caterpillar charts its credit and quote activity. ³I looked at it recently,² he said, ³and there was a dip in the week of 9/11, but it went right back up to previous levels.² Peter Sutherland of LFC, Inc., said the only impact he¹s noticed is that ³people are kind of sitting on their hands, waiting to see what will happen next.² Still, he said, ³we don¹t really know yet, because there is a ripple effect to these things.² Unfortunately, aircraft lessors know already. The change has been real and dramatic. With so many U.S. and international airlines in danger, many aircraft orders have been cancelled and transactions interrupted. According to Chuck Kiser, AmSouth Leasing, credit is the main problem in the aviation market. Even so, as Residco¹s Vince Kolber told the Board, transactions are getting done. ³Prices are coming down, fleets are being revalued. The debt markets are active, and all the major airlines are working hard to get on a cash-flow break-even basis.² Hopefully, leasing companies will feel no definitive impact from the attacks, but given the larger economic picture, that¹s unlikely. Rick Wolfert stressed ³September 11 is going to severely impact productivity.² The attacks suddenly worsened an already frail economy, with results probably yet to be realized.
Look for full convention coverage in the November/December issue of Equipment Leasing Today. ****************************** 4. Perfect Storms Hit Boca Raton ****************************** Debuting to a standing-room-only breakout session Monday morning, ³The Perfect Storms: Why Major Lessors Have Exited the Marketplace² is causing quite a stir among ELA Convention attendees. The Equipment Leasing and Finance Foundation¹s newest study analyzes the downfalls of several previously successful equipment leasing companies over the past two years. ³The key to continued financial health and viability², says The Alta Group, which the Foundation commissioned to perform the study, ³is that equipment leas |