Thursday, April 17, 2003
This Border ##### Denotes Press Release (Not Written By Leasing News)
This edition is also available in an “up-grade” format, html, where you may
click on the headlines to go to the story, plus is also in this “new” format
posted daily on our website---www.leasingnews.org
Three-Year Anniversary of Leasing News Archives
April 17, 2000-the first Leasing News story is archived. This e-mail series started many years ago to leasing industry colleagues of Kit Menkin, managing partner of American Leasing. The e-mail report grew from once a month, to several times a month, and was up to over several hundred, being sent out once or twice a week, when it grew to a size large enough to incorporated as Leasing News with an Advisory Board. A website to read in html instead of text, and when completed, the idea of having an archive section. Prior to this date, they were never saved, but deleted. And from one or two days a week, or whenever there was news, it is now generally five days a week.
The advisory board wanted the name changed to Kit Menkin’s Leasing News.
It was originally simply “Leasing News. “ Classified ads and other features were added to the website, with a book section the latest: http://two.leasingnews.org/Books.htm Readers supply much of the “inside news”. Originally an afternoon edition, it was changed to early morning (actually being sent out around 1:30am, PDT ), after most newspapers have sent to the streets their early morning edition, too. This gives a final review of major newspapers throughout the United States. From being a West Coast planned edition, it now times the news for the East Coast as well. An up-dated version
is available on a subscription basis, actually a duplicate of the website sent
out at 8am,California time.
Today we reach 5,000 in the leasing industry daily and several thousand visit
the website each day, too.
Pictures from the Past 1994—Two Shannons
“Shannon Green, AVP,(left) and Shannon McNerthey, special projects coordinator, Financial Pacific Company (right) welcome over 80 attendees to the Columbia Winery last month for a combination wine tour/Washington Regional Meeting. Guest speakers from McGavick Graves, Attorneys at Law discussed “ Article 2A” and “Lessor Liability.”
April, 1994, Western Association of Equipment Lessors Regional Report”
Shannon McNerthey is now Shannon Hall, married to Brent Hall of Pinnacle
Capital, Tacoma, Washington.
Recently leaving Financial Pacific Leasing, LLC to join Orion First
Financial, LLC, Shannon Green is looking forward to the excitement and
challenges a growing company like Orion will bring.
"Working at Orion gives me the ability to use the knowledge and skills I
have gained over the years and allows me the opportunity to expand my
knowledge base in new areas. I am fortunate to have the opportunity to
work with such forward thinking people like David Schaefer. We have a
talented group of people with the common goal of maintaining excellence
in all we do."
“Orion First Financial, LLC provides lease servicing, complete portfolio
management and recently introduced a Joint Venture funding program that
has raised a lot of interest in the market place. Located in Gig
Harbor, WA, Orion employs state-of-the-art technology combined with
years of management experience to insure that lease portfolios are
managed in a sound and cost-effective manner. “
For more information on Orion First Financial, LLC you can email Shannon
Green at email@example.com or by calling 888-705-8778 ext. 222.
Shannon M. Green, CLP
Orion First Financial, LLC
253-851-8778 ext. #222
Classified Ads---Jobs Wanted
Sales Manager: Portland, OR. 18+ yrs w/ bank leasing company. Supervised 14-20 sales people. Willing to relocate for the proper position. Or, seeking sales position in current location (13+yrs direct sales). email:firstname.lastname@example.org
Sales Manager: Seattle, WA
Senior level sales professional w/ (20) plus experience in mid market financing & leasing. The last (8) plus years being self employed in middle market brokerage. Email:email@example.com
Sales Manager: New York, NY
I have over 25 years owning an independent leasing company that specialized in truck leasing. Tow trucks, Limos, ambulances, tractors, etc.. Email:firstname.lastname@example.org
Sales Manager: Atlanta, GA
Professional. finance mgr. w/formal credit ed./ reg. vp/ secured/unsecured commercial loans/ direct end user network/equip. leasing/structuring small,mid,big ticket transactions. 10+ years NE & SE. Have vendor servicing w/existing and active network of accounts will bring with me. Email:AlanAustin2000@msn.com
Sales Manager: Atlanta, GA
30 years in transportation Finance with strong management/ sales background. Represented company on national & region markets. Started two successful operations- produce profits and growth. Email:email@example.com
full listing at: http://220.127.116.11/LeasingNews/JobPostings.htm
McQuitty Writes e-Mail re: “imbedded Front Line Reporter”
(( for United Association of Equipment Leasing (UAEL) Spring Educational Conference May 1-4 at the Rancho Las Palmas Marriott Resort & Spa in
Rancho Mirage, California))
“Thanks for the announcement. I hooked up with ‘Uncle Joe’ (Joe Woodley, CEO
of UAEL) this a.m....we had a good chat and got ‘squared away’...
“...also, I took a little time to go back into archives and read a few other
reports...this was helpful...any particular style you want to see?
“I think Joe said it may be a light attendance...so maybe, it might be good
if you could say I'm especially looking forward to seeing some of the ‘next
generation’ at the conference (particularly the Southern California crowd)... so it would be great if they could make a concerted effort to make it out to the event and renew old acquaintances ----catch up, exchange ideas...share some of the
successes we've had here; what works!...what doesn't!...pitfalls to
avoid!...and indicate that these are some of the benefits you get by
“In spite of the terror campaign, war and repressed economic picture, Capital Werks/Preferred Leasing is chugging along nicely...we are well over half way to meeting our announced, twelve month goal of building a 100 person sales force...in fact, we have outgrown our current location and will be moving in two months to a larger space.
“There are a lot of encouraging economic signs. Jim Raeder and I believe we are in a good position to exploit this pent up demand when it breaks loose. We’re following exactly what ELA Fleming said in Leasing News, Jim and I are
“ramping up” now in preparation.
( Charlie Lester says you “thrive” under pressure, so I know you can cover
this event and have fun at the same time. The report will be under your by-line, so no guide lines. . Kit )
Mr. McQuitty wrote a three-piece article on “Whatever Happened to Republic
Leasing of Anaheim”
Here is his biography when he served as Top Gun Sales Manager
at the UAEL San Diego Conference.
“Early Bird” fee has been extended to April 20th, according to Media
representative Jim McCommon. To learn more or to sign up at the Conference and meet Mr. McQuitty, please go to: www.uael.org
#### Press Release ###############################################
Synovus Reports 8.7% Increase in Net Income for First Quarter 2003; Company Adopts Repurchase Plan for $200 Million in Stock
COLUMBUS, Ga.----Synovus' (NYSE:SNV) first quarter earnings grew 8.7% over first quarter 2002 to $89.9 million, which represented earnings per share growth of 7.3% to $.30 per share, Synovus Chairman and CEO James H. Blanchard announced today.
"Our board of directors has unanimously approved a $200 million share repurchase plan that demonstrates its confidence in our future," said Blanchard. "This equates to approximately 11 million shares based upon current market prices. The shares will be purchased from time to time over the next two years at prices considered attractive to management. It is expected that at least 5.5 million of such shares will be repurchased within 90 days following this announcement. Repurchased shares will be used for general corporate purposes."
Return on assets for the quarter was 1.89% and return on equity was 17.26% for the first quarter 2003, compared to 2.03% and 19.52%, respectively, in the same period last year. Shareholders' equity at March 31, 2003, was $2.18 billion, which represented a very strong 10.58% of quarter-end assets. Total assets ended the quarter at $20.6 billion, an increase of 23% from the same period last year.
Synovus Financial Services' (formerly banking operations) net income increased 6.0% over the first quarter last year. Return on assets for the quarter was 1.40% and return on equity was 16.14%. Loans grew by 22.4% (14.5%, excluding acquisitions and divestures) during the first quarter over the same period last year. The net interest margin compressed more than expected, which was attributed to the lowest interest rate environment in 45 years. The net interest margin was 4.31% for the quarter, compared to 4.77% for the first quarter last year. The ratio of nonperforming assets to loans and other real estate increased to 0.72% from 0.64% in the last quarter, with half of the increase attributed to acquisitions in the quarter. The allowance for loan losses was 1.40% of loans, and net charge-offs were 0.37% of average loans for the first quarter. The allowance for loan losses provides coverage of 272% of nonperforming loans and the provision for loan losses covered net charge-offs by 1.48x for the quarter. Management is confident about the quality of the loan portfolio.
Financial Services' non-interest income was up 24.5% as compared to the first quarter last year, with increases in service charges on deposits of 11%, net mortgage revenue of 80% and credit card fees of 19% over the same period last year. Financial Management Services and insurance revenues increased 10.5% over last year, with trust down 4%, brokerage up 6%, financial planning/asset management (which consists of Creative Financial Group and GLOBALT, acquired in 2001 and 2002, respectively) up 121%, and insurance down 11%. Financial Services' non-interest income as a percentage of Financial Services' revenues 3/4 excluding securities gains/losses 3/4 was 29% for the quarter. During the quarter, Synovus completed the acquisitions of United Financial Holdings, Inc., consisting of United Bank and Trust Company in St. Petersburg, Florida and United Bank of the Gulf Coast in Sarasota, Florida, and FNB Bankshares, Inc. in Covington, Georgia, which added $930 million in assets and 19 branches. The efficiency ratio for the quarter was 52.8% versus 53.7% for the first quarter 2002.
Patrick A. Reynolds, 706/649-4973
#### Press Release ###############################################
Microfinancial/Leasecomm “Seeks Financial Partner”
Net Loss Last Quarter $7.7 Million/Revenue-Originations Down
MicroFinancial Announces a Final Amendment to Its Credit Agreement; All Existing Lenders Participate in New Agreement
WOBURN, Mass.----MicroFinancial Incorporated (NYSE-MFI), a leader in Microticket leasing and finance, today announced that it has secured an amendment to its Credit Agreement and received permanent waivers under its securitization facility.
The Company indicated that it has signed an agreement that amends its credit facility and stabilizes the Company's relationship with its lenders. The agreement also modifies the final maturity date to January of 2005.
The terms of the amended credit facility require the balance of the approximately $110 million senior term loan be paid out over the next 22 months. The loan will accrue interest at a rate of prime plus 2%, which will be payable monthly. Certain financial covenants such as fixed charge coverage, debt to net worth ratios, and minimum allowance balance requirements were eliminated.
The credit facility was originally entered into on August 2000. This amendment replaces the Forbearance and Modification Agreement from the senior credit facility that expired on February 7, 2003.
The Company also announced today that it has obtained a permanent waiver for its securitization agreements that will waive each existing event of default retroactively to the date the event of default occurred. It will also waive specific future events of default under the terms of the securitization agreements. This document will replace the temporary waiver which expired on April 15, 2003.
Richard Latour, President and Chief Operating Officer stated, "We are pleased to have secured a long-term amendment of our credit facility and securitzation from both our bank group and our securitzation lenders. We believe that this provides a solid foundation that will allow us to focus our attention on seeking a financial partner as we actively consider various financing, restructuring and strategic alternatives."
The Company filed its Form 10K with the Securities and Exchange Commission on April 15, 2003.
Financial results for the fourth quarter and the year ended December 31, 2002.
Fourth quarter revenue for the period ended December 31, 2002 decreased 24.0%, or $8.9 million to $28.0 million compared to $36.9 million last year. The net loss for the quarter was $7.7 million, or ($0.60) per diluted share as compared with net income of $2.1 million or $0.16 per diluted share in the prior year's fourth quarter. The decline in net income for the quarter is primarily the result of a 30.4% decline in lease and loan revenues to $11.2 million, a 46.1% decline in service fee and other revenues to $4.0 million, and a 32.7% increase in the provision for credit losses to $22.5 million as compared with the fourth quarter ended December 31, 2001. While revenue reductions were primarily related to lower origination volume, the additional provision for credit losses was required to maintain the Company's reserve policy requirements.
Total operating expenses for the quarter, before the provision for credit losses, remained relatively flat at $18.4 million compared to the same period in 2001. Interest expense declined 1.0% to $3.0 million as a result of lower debt balances of approximately $34.0 million offset by increased interest costs. Selling, general and administrative expenses decreased $200,000 to $11.2 million for the fourth quarter ended December 31, 2002 versus $11.4 million for the same period last year. The decrease was attributable to reductions in personnel related expenses of approximately $1.8 million, which was offset by increases in legal expenses. The provision for credit losses increased to $22.5 million for the quarter ended December 31, 2002 from $16.9 million for the same period last year, while net charge offs increased to $28.8 million. Past due balances greater than 31 days delinquent at December 31, 2002 increased to 22.9% from 17.2% last quarter. Net cash provided by operating activities for the quarter decreased 4.0% to $29.1 million compared to $30.2 million during the same period in 2001.
Revenues for the year ended December 31, 2002 decreased 18.0% to $126.8 million compared to $154.0 million during the same period in fiscal 2001. The net loss for the year ending December 31, 2002 was $22.1 million versus net income of $16.3 million for the same period last year. Fully diluted earnings per share for the year was a loss of $1.72 on 12,862,834 shares.
Total operating expenses for the year, before the provision for credit losses, increased 2.0% to $74.7 million compared to $73.6 million in 2001. Interest expense declined 25.0% to $10.8 million as a result of lower average debt balances of approximately $17.3 million and lower interest costs of approximately 122 basis points. Selling, general and administrative expenses increased $600,000 to $45.5 million for the year ended December 31, 2002 versus $44.9 million for the same period last year. The decrease was driven by a reduction in personnel related expenses of approximately $2.1 million, as management reduced headcount from 380 to 203, but this was offset by increases in legal expenses. Depreciation and Amortization increased 28.0% to $18.3 million compared to $14.4 million in 2001. The provision for credit losses, including the additional provision of $35.0 million taken in the third quarter of 2002, increased to $88.9 million for the year ended December 31, 2002 from $54.1 million for the same period last year. The additional provision was required to reserve against dealer receivables and certain portfolio assets. Net charge-offs increased 27.0% to $65.0 million and gross lease investment was down 16.0% or $71.1 million from the same period last year, primarily caused by lower origination volume activity in 2002. Net cash provided by operating activities for the year ended December 31, 2002 decreased 1.0% to $120.6 million compared to $122.3 million for the year ended December 31, 2001.
MicroFinancial Inc. (NYSE:MFI), headquartered in Woburn, MA, is a financial intermediary specializing in leasing and financing for products in the $500 to $10,000 range. The company has been in operation since 1986.
Richard F. Latour, 781/994-4800
SOURCE: MicroFinancial Incorporated
#### Press Release ###############################################
US Government Report: March Housing Rebounds
but predicts: Housing Market to Fade/Mortgage Rates to Go Up Second Half
sent by Carl Villella,Jr.CVillella@msn.com
March starts surprised some analysts by the magnitude of the rebound from the February decline: starts were up over 8% to 1.78 million (SAAR) while single family was up almost 8% to a very strong 1.41 million (SAAR). The multi family (MF) sector also improved, increasing almost 11%. Permits, an indicator of future activity, were off 7% to 1.65 million (SAAR). Regionally, there was strength in starts in all regions except the West, where starts fell almost 5%. Permit activity weakness was widespread with permits falling in all regions except the Midwest.
Analysis and outlook: The strength of the March rebound from the weather related February drop was better than expected. The weakness in March permit activity probably reflects consumer anxiety over war concerns although job growth continues to be a problem. In fact, there has been no net job creation in almost 24 months, and the manufacturing sector continues to suffer from overcapacity. On the positive side, inflation (CPI/retail and PPI/wholesale) remains a non-issue. Interest rates remain very attractive with the 30-year mortgage still well below 6%.
In the 2nd half of the year, most analysts expect housing to pull back modestly as the consensus feels the economy will improve in the second half, and this will push mortgage rates higher. If the economy doesn’t improve, the Fed recently reminded us that it has alternative means to stimulate the economy. With Fed funds rate about as low as it can go, the Fed can alternatively, buy long-term Treasury bonds. That pushes bond prices higher and yields lower (bond prices and yields or rates move in opposite directions). The Fed regularly buys bonds to expand the money supply – “money creation”. Just by saying this publicly, however, makes me think that the Fed has concerns about the economy.
The consensus-housing outlook for 2003 is 1.65 million starts, with1.3 million, or almost 80 per cent being single-family units. “The housing boom is expected to fade, and not burn out” (Felsenthal/Reuters/April 9). The multi-family sector isn’t expected to improve this year, primarily because affordability and therefore, demand for single-family homes is so good. Having said that, most of the weakness in housing this year will probably is in the more expensive, upscale/high end, custom housing sector (i.e. >$500,000). These homes are staying on the market longer, and inventories are starting to build in some regions. The negative “wealth effect” of the three-year bear equity market is a major factor. Furthermore, price appreciation will probably slow across the board as the “boom” fades. Overall, the importance of housing to the economy will probably diminish by year-end as other sectors (ex. business investment) contribute more. However, housing will remain healthy, providing support for the rest of the economy.
Fitch Ratings: Dramatic $348MM Rise In U.S. CMBS Delinquencies
Fitch Ratings-New York-: First quarter delinquent U.S. commercial mortgage-backed securities (CMBS) loan balances grew by more than 14% over year-end 2002, according to the latest Fitch Ratings Loan Delinquency Index (the Index) released today. The rise to 1.39% from the previous Index of 1.31% is the largest quarterly increase since the Index was created at year end 2001.
'The increase in CMBS delinquencies is directly due to a dramatic rise in delinquent hotel and office loans,' said Mary MacNeill, Senior Director, Fitch Ratings.
The most substantial increase in delinquents occurred in hotel loans. The delinquency balance for hotel loans grew by $270 million in the first quarter, a 37% increase over year-end. At slightly more than $1 billion, hotel loans account for approximately 35% of the $2.8 billion in delinquent CMBS loans. MacNeill noted the vulnerability of hotels in the wake of declining corporate and vacation travelers, factors driven by poor economic conditions and uncertainty over future geopolitical event risks.
'Fitch is quite certain that delinquencies within the hotel sector will continue to rise, given the number of hotel loans Fitch analysts have under review,' said MacNeill.
The delinquent office loan balance grew by 30% in the 1st quarter, from $200 million to $260 million. While office loans make up only 9% of the total delinquent balance, Fitch anticipates a continued rise in office loan delinquencies through, at best, mid-year 2004.
'Fitch had predicted the declining performance in office loans,' said MacNeill. 'The high vacancy rates and lowered rents most markets are experiencing are the consequences of what has now become an extended economic downturn.'
Within the other property sectors, retail and industrial delinquent balances in the first quarter grew by 5% and 7%, respectively. Delinquent multifamily loans declined by 4%. Together, those three property types account for 42% of the delinquent balance.
The Fitch Index is calculated on the balance of loans 60 or more days delinquent, and includes properties in foreclosure and real estate owned, in the 372 transactions monitored by Fitch analysts. Loans less than 60 days delinquent are excluded from the Index. Previous Fitch research has shown loans 60 or more days delinquent better demonstrate default trends.
Fitch's CMBS Loan Delinquency Index is available on the Fitch Ratings web site at 'www.fitchratings.com'.
Contact: Mary MacNeill 1-212-908-0785 or Mary O'Rourke 1-212-908-0711, New York.
### Press Release ###############################################
International Decision Systems Hires Carol Nelson as Director of Product
MINNEAPOLIS, Minn., USA, April 16, 2003 International Decision Systems
Inc. (IDS) hired Carol Nelson as Director of Product Management. Based in
the Minneapolis headquarters of IDS, Nelson oversees market analysis and
product management for the company¹s comprehensive line of
IDS created a new Product Management team in 2002 with a market-focused
strategy. Carol completes this team, supervising a staff of 14 product and
market managers, and business analysts. The product management team
analyzes market data to determine what products are in demand and identifies
product solutions not available in the existing marketplace. In addition,
Nelson¹s team prioritizes the development of new products and new
functionality for existing IDS products, analyzes product functionality via
business cases and ROI studies, and ensures that all products meet market
³My goal for the product management department is to develop and introduce
products that deliver benefit to our customers by solving business problems.
Our integrated product strategies will ensure IDS stays ahead of our
competition, and help our customers stay ahead of theirs,² says Nelson, who
plans to work cross-functionally with IDS development, consulting, marketing
and sales teams to effectively launch new products to existing and potential
³Carol Nelson brings to IDS a proven track record of strategic market
analysis and successful new product development,² says Charles Lyles, Chief
Operating Officer of IDS. The company has nearly three decades of leasing
industry expertise and has the world¹s largest global consulting,
implementation and technical support teams. ³Under her leadership, our
product management department will help IDS capture additional marketshare.²
Before joining IDS, Nelson was the Field Product Director and Director of
Product Marketing for Minneapolis, Minnesota-based Cognos, Inc., where she
oversaw product and solution positioning to field sales teams and
prospective and current customers. At Cognos, she was also responsible for
marketplace evaluation and recommendation of product strategy and
About International Decision Systems
International Decision Systems (IDS) is the global leader in developing
lease/loan accounting and portfolio management software and services. With
offices in the United Kingdom; Minneapolis, MN; Sydney, Australia and
Singapore, IDS offers the largest and most experienced global consulting,
implementation and technical support teams in the leasing industry.
InfoLease, the world¹s premier lease/loan portfolio and asset management
system, comprises the foundation of IDS¹ product line. With a web-enabled
front-end and more than 70 custom add-on solutions, InfoLease is the most
adaptable and scalable lease/loan technology available in today¹s
IDS¹ parent company, IDS Group plc, is publicly traded on the London Stock
Exchange (IDGL). For additional information about International Decision
Systems and IDS Group plc, visit.
IDS and InfoLease are registered trademarks of International Decision
### Press Release ###############################################
The Bank of New York Company, Inc. Reports First Quarter E.P.S. of 41 Cents; Return on Equity of 17.80%, Return on Assets Of 1.49%
NEW YORK----The Bank of New York Company, Inc. (NYSE:BK) reports first quarter diluted earnings per share of 41 cents, compared with 14 cents earned in the fourth quarter of 2002 and 50 cents in the first quarter of 2002. Net income was $295 million for the first quarter, compared with $100 million in the fourth quarter of 2002 and $362 million in the first quarter of 2002. Net income for the fourth quarter of 2002 included a higher loan loss provision, primarily for airline leasing exposures, that reduced fourth quarter net income by $230 million or 32 cents per share.
The first quarter was adversely impacted by global economic weakness and geopolitical developments that resulted in declines in equity prices and trading volumes, as well as in capital markets activity. In addition, expenses were higher given revised pension assumptions and the expensing of stock options. Despite the difficult environment, the Company's securities servicing businesses were stable. Overall, strong results in the Company's fixed income-linked businesses largely offset continued weakness in the equity-linked businesses, in particular execution services and depositary receipts. New business wins, market share gains, and expanded product offerings also helped to offset the weak environment. The Company's other major fee categories increased on a sequential quarter basis, including private client services and asset management, which was up 3%, foreign exchange and other trading, which increased 27%, and global payment services, which was up 3%. Overall, noninterest income was up $11 million, or 1.4%, over the fourth quarter of 2002. In addition, credit costs stabilized at a $40 million provision level for the quarter, with non-performing assets down 1%.
Chairman and Chief Executive Officer Thomas A. Renyi stated, "The business environment this quarter has been more difficult and uncertain than expected as a result of ongoing geopolitical developments. Nonetheless, we continue to benefit from a balanced mix of businesses, new business wins and disciplined expense management. We are also encouraged to see stability return to our credit costs.
"Despite the challenging operating environment, we remain focused on executing our strategy and investing in our businesses to meet our long-term financial goals. We anticipate closing the Pershing acquisition on schedule in the second quarter, and we remain confident in our ability to realize the projected expense and revenue synergies from this important transaction."
In January, The Bank of New York announced an agreement to acquire Pershing, the premier correspondent clearing firm, from Credit Suisse First Boston.
SECURITIES SERVICING FEES
The diversification of the Company's business model provided stability through a difficult market environment, as total securities servicing fees decreased slightly to $474 million in the first quarter from $484 million in the fourth quarter. Total securities servicing fees were up $21 million, or 5%, from a year ago, primarily due to acquisitions in 2002.
Fees from global issuer services were flat on a sequential quarter basis and in comparison with the first quarter of 2002. In both cases, continued strong performance in corporate trust, which benefited from new debt issuance, largely offset decreased fees in depositary receipts resulting from the slowdown in cross-border investing and new capital raisings.
Fees from investor services were relatively stable, with a slight increase on both a sequential quarter basis and over last year's first quarter. Strong performers on a sequential quarter basis included global custody and wholesale distribution services (formerly global liquidity services). Global custody benefited from the phase-in of new client wins, increased transaction volumes, and a weaker dollar. Wholesale distribution services benefited from the current uncertain market environment, which drove demand for the Company's cash sweep products. These areas largely offset the loss of a domestic outsourcing client. Year-over-year growth is primarily attributable to wholesale distribution services and an acquisition. As of March 31, 2003, assets under custody were $6.8 trillion, unchanged from December 31, 2002.
Broker-dealer services was the strongest performer for the quarter in terms of both sequential quarter and year-over-year fee growth. Strong performers on a sequential quarter basis included mutual fund services, government securities clearance and global collateral management. Mutual fund services benefited from the strong fixed income environment and a weaker dollar. Government securities clearance and global collateral management benefited in comparison with both periods from increased fixed income trading volumes, new clients, and expanded product offerings. Broker-dealer services also benefited from an acquisition that closed in the first quarter.
Execution and clearing services decreased on a sequential quarter basis, reflecting the decline in market trading volumes in the first quarter. Total combined first quarter NYSE and NASDAQ trading volume was down 11% from the fourth quarter of 2002. Fees in execution and clearing services increased over last year, which is primarily due to several acquisitions in 2002.
R. Jeep Bryant
Robert T. Grieves
John M. Roy
Gregg A. Scheuing
### Press Release #################################################
IKON Subsidiary Prices $852 Million Lease-Backed Notes Series 2003-1
VALLEY FORGE, Pa.----IKON Office Solutions, Inc. (NYSE:IKN) announced that IKON Receivables Funding, LLC will issue, on or about April 23, 2003, approximately $852 million of equipment lease-backed notes. IOS Capital LLC, a subsidiary of IKON Office Solutions, will act as Servicer. IKON Receivables Funding is a wholly owned subsidiary of IOS Capital.
The four classes of lease-backed notes are rated P-1/A-1+ and Aaa/AAA by Moody's Investor Service and Standard & Poor's, respectively. The notes are backed by lease contracts on copiers and other office equipment. The notes are insured by AMBAC Assurance Corporation. Lehman Brothers and JPMorgan were the joint lead managers on the sale, with Banc of America Securities LLC, Deutsche Bank Securities and PNC Capital Markets acting as co-managers. The weighted average interest rate on this transaction is 2.58%.
A registration statement related to these securities was filed and declared effective by the Securities and Exchange Commission. 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.
"The asset-backed market continues to serve as our primary source of funding for our leasing operations," stated William S. Urkiel, Senior Vice President and Chief Financial Officer of IKON, "With 78 percent of IKON's equipment revenues in the U.S. financed through IOS Capital, our ability to access the asset-backed market at favorable terms contributes to the consistent returns we experience in our leasing business."
IKON accounts for the asset-backed notes as borrowings, with the debt and related assets reflected on the Company's balance sheet. Finance income related to the pledged lease receivables is recognized over the life of the underlying lease contracts. Asset-backed debt is generally retired with inflows from the related lease receivables. IKON and IOS Capital are parties to a support agreement that requires IOS Capital to maintain a debt to equity ratio not in excess of six to one.
IKON Office Solutions (www.ikon.com) is a leading provider of products and services that help businesses manage document workflow and increase efficiency. IKON provides customers with total business solutions for every office, production and outsourcing need, including copiers and printers, color solutions, distributed printing, facilities management, and legal document solutions, as well as network integration, connectivity and custom workflow and imaging application development. IOS Capital, LLC, a wholly owned subsidiary of IKON, provides lease financing to customers and is one of the largest captive finance companies in North America. With Fiscal 2002 revenues of $4.8 billion, IKON has approximately 600 locations worldwide including the United States, Canada, Mexico, the United Kingdom, France, Germany, Ireland and Denmark.
IKON Office Solutions, Inc.
Veronica L. Rosa, 610/408-7196
Steven K. Eck, 610/408-7295
Caterpillar posts strong first quarter
Merrill's Earnings Increase on Strength in Bond Business
American flight attendants agree to concessions, head off bankruptcy
American Airlines by the Numbers
Apple sold fewer computers, but made more money on each machine: $14M Net Profit
Sun Microsystems Posts Small 3Q Profit
Vacancies jump in Silicon Valley
Rate at 9-year high for industrial buildings
Many Americans Still Aren't Going Online, Survey Finds
Walsh Testifies at Oakland Raider Trial
NFL Draft Choice "Sleepers"
Sports Highlight Transactions
Hightlights This Day in American History
April 17, 1890 Johnny St. Cyr Birthday
American Samoa Flag
holiday commemorating first raising of American flag in what was formerly
Eastern Samoa in 1900. Public holiday with singing, dancing, costumes
1693-Birthday of Mary Spratt Provoost Alexander - Dutch colonial (born New York City) merchant. Although much of MSPA's life is not fully documented, this remarkable woman had 10 children, two husbands, and built a trading empire of stores in New York city for which "she imported goods so extensively that it was said hardly a ship arrived in New York without a consignment for her."
In addition, MSA was active in politics, she aided and was in partnership with her various children in business. Her second husband was a prominent attorney and it is said she financed him and provided him with valuable contacts.
The Dutch women colonists had a tradition of merchandising and trade. At least one actually traveled with her goods between European ports and New York city.
The couple built a magnificent mansion and lived well. Their wealth, in today's dollars, would have made them milliionaires.
Many of her children lived extraordinary lives in commerce and trade as well as becoming involved in civic matters.
According to Nichola Varga who studied MSA's life, the "most extensive account of Mary Alexander s life is in Mrs. John King Van Rensselaer, The Goede Vrouw of Mana-ha-ta (1898), a book professedly baed on family traditions and records."
1704-the first successful newspaper was the Boston News-Letter. the editor was John Campbell, a New England postmaster, who earned the distinction of being America’s first vendor of news. It was printed by Bartholonew Green in a back room of his home in Boston,MA. the page size was 7.5 by 12.5 inches. The text was set in small pica type. The paper was without competition for 15 years and reached a circulation of 300 copies. (Not many people in the colonies had the ability to read.)
1741-birthday of Samuel Chase, signer of the Declaration of Independence. Born at Somerset County, MD, he died http://www.samuelchase.com/
1776-the first capture of an enemy warship by a commissioned American naval officer occurred when the brig Lexington under Captain John Barry met the British warship Edward off the Virginia coast, captured it, and conveyed it to Philadelphia, PA. 1837-birthday of John Pierpont Morgan, American financier and corporation director, born at Hartford, CT. Morgan died Mar 31, 1913, at Rome, Italy, leaving an estate valued at more than $70 million.
1852-Adrian Constantine ("Cap") Anson, Baseball Hall of Fame player and manager, born at Marshalltown, IA. Anson played professional baseball from 1871 through 1897 and is considered one of the game's greatest first basemen. As a manager, he piloted the Chicago White Stockings (today's Cubs) to five National League pennants and a .575 winning percentage. Inducted into the Hall of Fame in 1939. Died at Chicago, IL, Apr 18, 1922.
1897-birthday of Thorton Wilder, Pulitzer Prize-winning American playwright (Our Town) and novelist, born at Madison, WI. Died at Hamden, CT, Dec 7, 1975. http://memory.loc.gov/ammem/today/apr17.html
1852-Adrian Constantine ("Cap") Anson, Baseball Hall of Fame player and manager, born at Marshalltown, IA. Anson played professional baseball from 1871 through 1897 and is considered one of the game's greatest first basemen. As a manager, he piloted the Chicago White Stockings (today's Cubs) to five National League pennants and a .575 winning percentage. Inducted into the Hall of Fame in 1939. Died at Chicago, IL, Apr 18, 1922. in 1948 was May 14, in 2002 it is Apr 17.
1860-fire escapes for tenements were required by New York State. The law was passed in the aftermath of a serious fire in Elm Street, New York City, in which 20 persons were suffocated or burned to death.
1864- there were an average of 7,333 desertions a month from the Union army. Many desertions were the result of bounty jumpers - men who would collect bounty to enlist, then desert and do it again elsewhere. The US government spent $300 million dollars on bounties while state and local governments spent about the same.
1865 -- Mary Surratt is arrested as a conspirator in Lincoln's assassination.
Mary Surratt, boardinghouse owner, was charged with conspiring with Booth, "keeping the nest that hatched the egg," & running errands for Booth that facilitated his escape. It was alleged that Booth used her boardinghouse to meet with his co- conspirators. Mrs. Surratt was found guilty & was hanged on July 7, 1865.
1901—birthday of guitarist Willie Guy Rainey, Calhoun Country, Alabama.
1921-- One of the great draws of the early air shows were the stunt walkers, those who performed risky maneuvers OUTSIDE THE AIRPLANES such as walking on the wings. Many of them were women because it aroused men and newspaper men more to see women doing such things.
One such woman was Phoebe Fairgrave who had dreamed of flying in high school.
No man pilot would take her on as a student.
She couldn't be serious! Flying was men's work!
"It was not long until I began to realize that one way in which I certainly could get up in the air would be to buy an airplane. I had a hunch that the prospect of a sale would make the boys waver in their determination not to have anything to do with satisfying my ambition to go aloft," PF wrote later and used a small inheritance
Lessons and the plane proved to be too expensive for just a hobby so she combined her love of flying by becoming an air show performer.
She wing walked and made parachute jumps.
For those readers who are too young to remember, planes at the time flew only 50-75, later at 100 mph. They also flew very quiet compared to modern engines and flew quite close to the ground (which made the outside of the plane acrobatics easy to see at the air shows).
On 04-17-1921 Phoebe took her first parachute jump winding up in a tree, dangling unhurt. Within a few month she set a new world's record for women jumpers by parachuting from a plane at 15,200 feet.
Then she developed the trick of cutting off her first parachute, then free falling before deploying her second chute - a real crowd pleasers that made her one of the most popular attractions in the country.
Popular, smart, and ambitious, Phoebe formed her own organization, The Phoebe Fairgrave Flying Circus.
She soon married Vernon Omlie, the pilot who had taught her to fly. Together they continued to barnstorm until they'd raised enough money to form their own flying school and broadened into the aviation business, Mid-South Airways in Memphis, Tennessee.
(Based on information in United States Women in Aviation 1919-1929.)
NOTE: The Phoebe Fairgrave Omlie scholarship was established by the Federal Aviation Administration Mid-South Chapter Federal Women''s Program (MSCFWP) and the Women in Aviation, International Memphis Belles Chapter.
This scholarship is awarded annually to a student or students demonstrating academic potential and ability to overcome obstacles. The goals of the Memphis Belles and MSCFWP are to increase the awareness of job opportunities, training, upward mobility, and avenues of self-development for women in aviation careers and in government service.
For details see: http://www.aella.com/WIAI/fwpapp.html
See: Omlie, Phoebe Fairgrave (1902-1975) Aviator Leonhirth, Janene. "Omlie, Phoebe Fairgrave." In The Tennessee Encyclopedia of History & Culture), edited by Carroll Van West. Nashville: Tennessee Historical Society, 1998.
1926-birthday of jazz columnist/critic Whitney Balliett, New York City, New York.
1930-Trmpterer Sam Noto born Buffalo, NY
1935 – “Lights Out” premiered on radio. The show also was on early TV. “Lights Out” scared many little kids, and adults, too. http://www.otrsite.com/logs/logl1003.htm
1941-Trumpter player Red Allen records “K.K.Boogie,”
1944- Canadian pop singer Bobby Curtola was born in Port Arthur, Ontario. A teen idol in Canada during the early 1960's, Curtola also made his mark internationally in 1962 with the hits "Fortune Teller" and "Aladdin." As well, he was host of two variety shows for CTV - "After Four" in 1965-66 and "Shake, Rock and Roll" in 1973- 74.
1949- "The Fred Waring Show" premiered on television this day in 1949. Fed Waring was leader of the big band called the Pennsylvanians, which featured about 65 musicians and singers. The show was produced on Sunday nights until 1954. Fred Waring was one of the first to promote living in Palm Springs and his name is prominent on many streets and structures today. Go here to read direct: www.culinarytechniques/waring.htm Contrary to widespread belief, Fred Waring did not invent the Waring Blender, but he made it happen. Waring and his Pennsylvanians had just finished one of their radio broadcasts in Manhattan's Vanderbilt's Theatre, when he was visited by promoter Fred Osius looking for a backer to produce and market a new type of mixer which he claimed would revolutionize people's eating habits. When the Prototype did not work,
six months and $25,000 later, Waring stepped in, turned the project over to one of his associates who solved the engineering and production problems in time to introduce the "Miracle Mixer" at the National Restaurant Show in Chicago, in September of 1937- Largely due to Fred Waring's own promotions on radio and through a singing group, the "Waring Blendors," and a national campaign with a leading beverage supplier, the spectacular drink-making ability of the Waring Blendor® (as it was soon called) soon made it a fixture in most restaurants and bars. More and more people decided they wanted this in their kitchens. At that point it was an instant hit and the rest as they say is history.
1950- Tony Bennett made his first recording, "Boulevard of Broken Dreams." Bennett had used the song, revived from the 1934 movie "Moulin Rouge," to audition for Columbia Records. Although it was not a hit, the record marked the beginning of Bennett's more-than-40-year association with Columbia. He hit number one the following year with "Because of You."
1951- Mickey Mantle of the New York Yankees mad his major league debut and went 1for-4 as the Yankees defeated the Boston Red Sox, 5-0.
The Ballad of Davy Crockett - Bill Hayes
The Ballad of Davy Crockett - Fess Parker
Cherry Pink and Apple Blossom White - Perez Prado
In the Jailhouse Now - Webb Pierce
1956-Willie Mosconi of Philadelphia, PA, ran 150 balls at Kinston, NC, following the break by Jimmy Moore of Albuquerque, NB, who played a safety show. He won the match in the first inning. Mosconi won each of his 14 matches and scored at 150-0 victory in the final match of the world pocket billiards tournament.
1956 - Two of the greats began their major-league baseball careers this day: Luis Aparicio played for the Chicago White Sox and Don Drysdale began work with the Brooklyn (later, LA) Dodgers. Aparicio became the American League Rookie of the Year. Drysdale won 209 games before he retired. Both were inducted into the Baseball Hall of Fame in Cooperstown, NY on the same day, August 12, 1984. Drysdale later became a broadcaster for the Chicago White Sox and the Dodgers.
1956-with President Dwight Eisenhower in attendance, Mickey Mantle of the New York Yankees opened the baseball season by hitting two massive home runs against the Washington Senators in Washington’s Griffith Stadium. On this same date three years before Mantle hit another home, measured at 565 feet, one of the longest home runs ever.
1957- New York Governor Averall Harriman signed the first installment sales law to place a limit on credit service charges, requiring all charges to be clearly itemized and prohibited fine print in the contracts. Prior to this there were no laws enacted to protect consumers.
1961-In what came to be called the Bay of Pigs invasion, some 1500 anti-Castro Cuban exiles landed at the Bay of Cochinos in Cuba. Organized by the US.—based National Revolutionary Council and trained by the CIT, the force enjoyed initial success but collapsed within a few days because of inadequate supplies, lack of air support, and overwhelming opposing forces. On April 24, President John F. Kennedy stated he accepted full responsibility of the failure of the invasion.
1961 - The 33rd Annual Academy Awards ceremony was held at the Santa Monica Civic Auditorium, hosted by Bob Hope, ended the ten year drought during which the late producer, writer, director Billy Wilder could not capture the elusive Oscar. The late Billy Wilder was no stranger to Oscar. He had won three before. This year he not only received the Oscar for Best Writing/Story and Screenplay/Written Directly for the Screen (shared with I.A.L. Diamond), but the Best Director Oscar (both for "The Apartment"). He and "The Apartment" also received the top award, Best Picture. Burt Lancaster took the Best Actor honors and Shirley Jones, the Best Supporting Actress, for their performances in "Elmer Gantry". Elizabeth Taylor was voted Best Actress for her role in "Butterfield 8". "Spartacus", nominated in six categories, won four Oscars, including one for Peter Ustinov as Best Actor in a Supporting Role. The Best Music/Song was awarded to "Never on Sunday" and Manos Hadjidakis from the foreign flick: "Pote tin Kyriaki". Other movies this year included: "Sons and Lovers", "The Alamo", "The Time Machine", "Exodus". Some multi-nominations but no wins from that year include: "Inherit the Wind", "The Sundowners", "Cimarron", "Sunrise at Campobello", "Psycho", "Bells are Ringing", "The Magnificent Seven", "Can-Can".
He’s So Fine - The Chiffons
Can’t Get Used to Losing You - Andy Williams
South Street - The Orlons
Still - Bill Anderson
1964-the Rolling Stones' first album was released in Britain. It sold more than 200,000 copies and topped the British chart for 12 weeks.
1967 - Comedian Joey Bishop tried the “Tonight Show: on ABC, opposite Johnny Carson, who never forgave him. “Who Wants to Be a Millionaire” Regis Philbin was the announcer, Johnny Mann did the music. The show lasted until December 26, 1969. Bishop, by the way, is the lone survivor of the famous “Rat Pack” headed by the late Frank Sinatra. http://www.time.com/time/magazine/1998/dom/980706/the_arts.and_then_there_24.html
Joy to the World - Three Dog Night
Another Day/Oh Woman Oh Why - Paul McCartney
Put Your Hand in the Hand - Ocean
Empty Arms - Sonny James
( "Joy to the World" was number one for six weeks.
1975-Mike Schmidt of the Philadelphia Phillies became the first National League player since Bobby Lowe in 1894 to hit four home runs in consecutive at-bats in the same game. Schmidt’s feat came against the Chicago Cubs in an 18-16, 10-9inning Phillies win. Schmidt connected twice off Rick Reuschel, once of Rick’s brother Phil and once off Darold Knowles. He added a single and totaled eight RBIs as Philadelphia came back form a 13-2 deficit.
What a Fool Believes - The Doobie Brothers
Knock on Wood - Amii Stewart
Music Box Dancer - Frank Mills
(If Loving You is Wrong) I Don’t Want to Be Right - Barbara Mandrell
1985 - The U.S. Postal Service unveiled its new 22-cent "LOVE" stamp. In a clever promotion, the USPS used the set of ABC-TV’s "The Love Boat" as a backdrop. The stamp went on to become one of the most popular ever offered by the postal service.
1987-Julius Erving of the Philadelphia 76ers scored 38 points to join Wilt Chamberlain and Kareem Abdul-Jabbar in the NBA’s 30,000 point club.
Nothing’s Gonna Stop Us Now - Starship
I Knew You Were Waiting (For Me) - Aretha Franklin & George Michael
Don’t Dream It’s Over - Crowded House
"You’ve Got" the Touch - Alabama
1991-The Dow-Jones Index of 30 major industrial stocks topped the 3,000 mark for the first time.
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