Tuesday, May 3, 2005
Classified Ads-- Doc. Manager / Finance / Legal
######## surrounding the article denotes it is a “press release”
Documentation Manager / Finance / Legal
ELA March Index Shows Biz Down Since January
Employment Continues to Climb, Slowly
The results of the Equipment Leasing Association (ELA) Index released yesterday shows new business volume increased from February's $3.2 billion to $3.78 billion in March, an increase of 18 percent, but January was $4 billion.
The February anomalies that brought the month down to $3.2 billion were attributed to two occurrences: one, a sizeable portfolio acquisition by one of the responding leasing companies, and two, end-of year business closing for another respondent, both of which may have inflated the business volume numbers that month. It is the comparison to February that shows the bump up.
The ELA Monthly Leasing Index (MLI) is compiled on the 30th of every month, proving trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.
The National Association of Credit Manager (NACM) report, also
The Institute for Supply Management said its index measuring manufacturing activity registered 53.3 in April, down from March's 55.2 reading, although they consider anything above 50 in the positive column, meaning the manufacturing industry continues to be “healthy.”
The NACM report shows service increasing and the ELA MLI
Ralph Petta, ELA's Vice President of Industry Services saw the equipment leasing statistics differently, perhaps more optimistic.
"The March Index shows solid leasing demand, with strong origination activity over the period," he said. "This is impressive, particularly in light of lower-than-expected quarterly GDP numbers. In addition, lessors' portfolios are performing well, with low delinquencies and very favorable charge-offs."
MLI respondents' credit approval ratios increased to 83.2 percent over February's number, but not the high of January at 89.1 percent.
Additionally, delinquencies (net of unearned income billed but not yet received) increased slightly for the under-30 day's category to 98.46 percent in March compared to 97.95 percent in February.
Average charge-offs rose slightly to 0.53 percent from February's 0.39 percent.
The total number of employees increased from 8,926 in February to 9,072 in March, representing a 1.6 percent increase, continuing the upward trend in employment.
ELA Monthly Leasing Index
ADP Credit Corporation
Amsouth Leasing Corporation
Bank of America
Caterpillar Financial Services Corporation
De Lage Landen Financial Services
First American Equipment Finance
Hitachi Credit America Corp.
HP Financial Services
John Deere Credit Corporation
Key Equipment Finance
LaSalle National Leasing Corporation
Marlin Leasing Corporation
Siemens Financial Services
U.S. Bancorp Leasing & Financial
Verizon Capital Corporation
Wells Fargo Equipment Finance
In addition to the MLI report, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry.
To access this and other industry information, visit the ELA website at
NACM CMI Index—Manufacturing Flat----Service Up slightly
The National Association of Credit Managers believes April continues to show growth. While the Credit Manager Index (CMI) notes while “the manufacturing sector was flat...the services sector, boosted by a whopping 11-point increase in dollar collections, rose for the third straight month to 60.2, an overall change of 3.44%, indicating accelerating growth.”
The NACM CMI report Manufacturing Sector Results:
“After posting three consecutive periods of growth, the manufacturing sector ended at the same point in April where it finished March, with an overall CMI of 58.5%. There were, however, several bright spots within the manufacturing sector. New sales continue to grow, posting a 310 basis point gain, up from 69.6% to 72.7%. Dollars collected also showed growth finishing at 69.1 percent, a 230 basis point gain over March 2005.”
The NACM CMI report Service Sector Results:
“Higher dollar collections along with lower dollar amounts beyond terms pushed the service sector to its highest level in 10 months.
A lower number of disputes and few accounts placed for collection also helped to push the service sector higher, finishing up 200 basis points, to close at 60.2%. Of the 10 factors, nine posted levels at or above 50, indicating an expanding economy.”
Here are both reports combined:
The NACM CMI Comparison of April 2005 to April 2004:
“As we look at the current levels of favorable and unfavorable factors reveals that, although the April 2005 factors show an expanding economy, the level of new sales is 740 basis points lower than a year ago. This can be seen in both the service and manufacturing sectors. An analysis of the unfavorable factors shows that within the manufacturing sector, accounts placed for collections accounted for the largest change. While in the service sector, the largest changes were found in dollar amounts of customer deductions and bankruptcy filings.”
The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies.
A complete index including results from the manufacturing and service sectors, along with the methodology, is attached. A complete view of the index can be viewed online at:
Leasing Industry Legal Expert
Tommy Larsen Passed Away in Jail
Tommy A. Larsen, the feisty president of PinnLease, San Diego, who was recently convicted and sent to jail, died in prison of liver cancer. It was discovered approximately three weeks ago and progressed so fast there was no appeal process started to release him to die with his family, according to San Diego Union-Tribune writer Mike Freeman.
Previous stories on PinnLease and Tommy Larsen are available here:
Letters---We Get eMail
“THOMAS AND PETER (Salzano ) ARE MY FIRST COUSINS THEY ARE NOT SCAMERS JUST SMART BUSINESMEN.I WORKED FOR THEM. QUEST AND ALL THE OTHER PHONE COMPANYS WERE OVER CHARGING US AND MANY OTHERS BY MILLONS AND WE WERE TRYING TO DISPUTE AND COME TO AN AGREEMENT WITH THEM, WHICH RESULTED IN THE PHONE COMPANY SHUT OFF SERVICE. THEY HAD NO CHOICE BUT TO GO BANKRUPT .QUEST AND OTHER PHONE CARRIERS WERE FOUND GUILTY OF DOING JUST THAT. DO YOUR RESEARCH.”
“Michael Evans has resigned his position as Senior Vice President and Manager of the Sterling Bank Leasing division of Sterling National Bank. The Bank is pleased to announce the promotion of Robert Ingram, who has been the second in command, to the position of Manager.
“He may be reached at 212 575 2465 or by e-mail Robert.Ingram@sterlingbancorp.com
“Thumbs up on the new format!”
“I love the new look! It incorporates the familiar look and feel of the original leasing news with an updated appeal. Great job. “
“I like the new version of the e-mail. I can now click and go directly to a subject; before I couldn't.”
Bob Teichman, CLP
“Your email newsletter format seems to get better and better.
“I just turned 65......been retired 2 years now. Financial retirement plan worked out better than hoped for. Del and I are enjoying our retirement in our hilltop home with expansive view in the hills northwest of Escondido. “
“Isn't it: IndependEnt, unbiased and fair.
“Wow! Earned my Advisory Board pay today!”
I enjoy your newsletter very much but wanted to point out the misspelling of "independant" in the headline of the new version. Keep up the good work.
“I like the look, but "independent" is spelled wrong . . .
“Have a great day, Kit!”
T-N-T Leasing Corp.
(Thank everyone for pointing out the typo. It got by four of us here, and we tried to fix it for the last three editions, but somehow it wouldn't “take.” We had to re-do the entire format page from scratch, as we couldn't edit it for some reasons. There are other “kinks” we need to work out, such as the 283 from our old e-mail address who are now not receiving our new version. I appreciate all the readers who have brought this to our attention, and other items we needed to correct.
I hope those who are up when we go to press, and yes, I am surprised about those up on the West Coast, now enjoy being notified after the new version is actually posted, so you can go right to it. I do suggest subscribing as readers get a notice when the edition is posted. To add your name to our mailing list, contact: Kitmenkin@leasingnews.org)
“MANY, MANY emails this morning as a result of your newsletter…wow, what an impact you have ! I also really appreciate you attaching my web site www.radiance-capital.com to the article because I could use more business from the broker community
“Thank you again and if there is anything up here you need done, please don't hesitate to let me know.
“Enjoy your newsletter. Like toons and history very much.
Very informational, but informal.”
Dick Lightner, Executive Vice President
The Ohio Vehicle Leasing Association / The OVLA
“Thanks for the mention in today's Business Leasing News. I always appreciate you and the inclusion of BLN. By the way, on Jeff Taylor's note, BLN has been published for over 42 months, but Business Leasing For Dummies is still in circulation (just out of print). Jeff is such a card!”
David G. Mayer
Partner, Patton Boggs LLP
“Thank you for mentioning our study in leasing news. We had a good response, and hopefully other women business owners of the leasing industry will take time to answer our brief study.
Their responses will help us determine how life and work roles of entrepreneurial women relate to each other, and how those roles connect to life and work satisfaction and balance. They can go to our website for a link to the survey. Our site is located at http://www.zipsurvey.com/LaunchSurvey.aspx?suid=4467&key=0802E00F
Classified Ads---Help Wanted
Account Representatives & Sales Coaches
Equipment Leasing Marketing Specialist
Sales / Sales Representative
Financial Federal Corporation Reports New
NEW YORK------Financial Federal Corporation ("FIF" - NYSE) announced today its major operating subsidiary, Financial Federal Credit Inc., issued $250 million of five-year, 5.0% fixed rate term notes to fifteen institutional investors through a private placement. The Company received $200 million today and will receive $50 million on August 2, 2005. The proceeds will be used to repay debt and for general corporate purposes.
Additionally, the Company's asset securitization facility was renewed for another year on April 29, 2005 for the fourth time. The renewal provides for lower pricing. The Company has also recently obtained $80 million of new senior unsecured revolving credit facilities from two new banks with terms of one year ($25 million) and five years ($55 million).
The Company has also recently prepaid $176.5 million of floating rate term notes at principal without penalty. The remaining terms of these notes ranged from four months to five years (weighted average slightly over two years), and their weighted average rate, based on current market interest rates, would have been 4.4%.
Steven F. Groth, CFO, remarked: "We refinanced $176.5 million of floating rate term notes and $50 million of 8.6% fixed rate term notes maturing on June 1, 2005 at a lower interest rate, reduced our exposure to rising short-term market interest rates, extended debt maturities and increased liquidity by over $100 million. Our capitalization (debt plus equity) at January 31, 2005 was 45% fixed rate and 55% floating rate. Today, our capitalization is approximately 57% fixed rate and 43% floating rate. In addition, the new bank facilities have lower credit spreads than the floating rate term notes that were prepaid."
This press release contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Readers are referred to the most recent reports on Forms 10-K and 10-Q filed by the Company with the Securities and Exchange Commission that identify such risks and uncertainties.
Financial Federal Corporation specializes in financing industrial and commercial equipment through installment sales and leasing programs for dealers, manufacturers and end users nationwide. For additional information, please visit us at www.financialfederal.com.
Financial Federal Corporation Steven F. Groth, 212-599-8000
Resource America, Inc. Announces Receipt of IRS Rulings
PHILADELPHIA-----Resource America Inc. (Nasdaq:REXI) (the "Company") announces that it has received the rulings it requested from the Internal Revenue Service in connection with the distribution of its remaining 10.7 million shares of Atlas America, Inc. (Nasdaq:ATLS) to the stockholders of Resource America, Inc. The effect of the rulings is that, among other things, the distribution will be tax free for U.S. federal income tax purposes to the Company and its stockholders. According to the terms of the spin off each stockholder of the Company will receive a tax free dividend of approximately 0.6 shares of ATLS for each share of Company common stock owned. The Company intends to complete the distribution by the close of its present fiscal quarter, which ends on June 30, 2005.
ATLS completed its initial public offering in May 2004, selling 2,645,000 shares at a price of $15.50 per share.
Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial services, real estate, equipment leasing and energy industries. For more information please visit our website at www.resourceamerica.com or contact Investor Relations at email@example.com.
Resource America, Inc., Philadelphia Pamela Schreiber, 215-546-5005 Facsimile: 215-546-5388
Fitch Ratings Downgrades AIG; Remains on Rating Watch Negative
CHICAGO------Fitch Ratings has downgraded the long-term issuer rating and unsecured senior debt obligations of American International Group, Inc. (AIG) to 'AA' from 'AA+'. Additionally, Fitch has downgraded to 'AA+' from 'AAA' all of AIG's 'AAA' insurance company ratings. Fitch has also downgraded the long term rating of International Lease Finance Corporation (ILFC) to 'A+' from 'AA-', and the short term rating to 'F1' from 'F1+'. All long-term ratings also remain on Rating Watch Negative by Fitch, including those of American General Finance Company (AGF). Fitch has concurrently affirmed AIG's 'F1+' commercial paper rating. Approximately $51 billion of AIG, ILFC and AGF debt is affected by this action. (See below for a complete list of ratings.)
Fitch's rating actions follow AIG's announcement that it will not meet its self-imposed April 30, 2005 10K filing deadline and disclosure that its review to date will result in $2.7 billion of accounting restatements. Fitch believes that the uncertainty surrounding AIG's financial condition and future financial performance has grown to levels beyond the expectations embedded in Fitch previous rating levels. This band of uncertainty includes the potential adverse impact of recent events on the company's competitive position, expense ratio advantage, earnings levels and volatility, business mix, capital levels and strategic plans.
Fitch has viewed AIG's strong franchise as translating into unique advantages in pricing, risk selection, and reinsurance purchasing despite very competitive conditions in the industry. Fitch believes that these advantages will narrow somewhat going forward as insureds, reinsurers, and competitors increasingly pressure AIG's ability to act in ways that allow it to maintain these unique advantages at levels previously attained. Even with the potential for reduced competitive advantages, AIG remains among the strongest and highest rated financial services organizations in the world.
Fitch's Negative Rating Watch reflects uncertainties surrounding AIG as the company completes its internal accounting review and as regulatory investigations continue. Additionally, Fitch recognizes that AIG will likely be subject to fines, penalties and/or settlement costs as a result of the various investigations, as well as shareholder lawsuits that could be recognized in future periods.
AIG's ratings reflect the company's pre-eminent global insurance organization, with excellent worldwide brands and franchises, and strong operating results. Fitch also views very favorably the diversified nature of the organization's products, distribution systems, and geographic reach. This diversification has contributed to AIG's ability to generate stable and predictable historical operating results.
The ILFC ratings action reflects the relative 'quality' of support provided to ILFC has declined with the downgrade of AIG's holding company ratings. While AIG does not guarantee ILFC's debt, the relationship between the two companies was crystallized during the most recent downturn in the aircraft leasing sector. AIG assisted ILFC in sourcing committed bank credit. Additionally, its American General Life Insurance unit was the primary investor in ILFC's two $1 billion asset securitization transactions. Fitch also believes that ILFC is tied to AIG due to the $2.83 billion of deferred income taxes carried on ILFC's balance sheet at Dec. 31, 2004. If AIG were to sell or spin-off ILFC, a substantial amount of its deferred income taxes would become payable by virtue of the ordinary recapture of the accelerated tax depreciation on the aircraft.
The ratings for American General Finance (AGF) continue to reflect its sound stand-alone financial profile. To date, AGF has not had its operating or financial profile compromised as a result of the difficulties facing its parent. The placement of AGF's ratings on Rating Watch Negative reflect the narrowing in the ratings between AGF and its parent and the uncertainty surrounding the timing and nature of how the parent will establish a stable credit profile.
AIG is the holding company for one of the world's largest insurance and financial services groups. At Dec. 31, 2004, AIG had total assets of approximately $800 billion and stated shareholders' equity of $83 billion. In 2004, the company had total revenues of approximately $98.6 billion and net income of $11.1 billion.
American Bank of St. Paul Announces Reorganization
ST. PAUL, Minn.-----American Bank of St. Paul is pleased to announce the appointment of Norbert J. Conzemius to Chairman of the Board effective April 1, 2005. The remaining members of its Board of Directors will remain the same with Norlin G. Boyum as Vice Chairman, John P. Seidel as President and CEO and David R. Metzen, Barry J. O'Meara and William F. Reimer as Directors.
Other staffing changes announced, also effective on April 1st, include Gary Kluthe, Senior Vice President and Chief Credit Officer; Andrea Hitzemann, Assistant Vice President, Loan Review; David Carlson, Senior Vice President, Commercial Banking, Correspondent Banking and Leasing for the St. Paul Market; and Scott Swenson, Senior Vice President, Commercial Banking for the South Metro Market. Julie Haberkorn, Vice President of Commercial Banking has relocated to the Inver Grove Heights location. American Bank's Commercial Banking department is pleased to welcome William Baker as Vice President to its Midway location and Brad Garnes as Vice President to its Burnsville location.
American Bank also welcomes its newly hired branch managers, Kathy Sheehan to its Inver Grove Heights location and Lisa Sanders to its Burnsville location.
John Seidel, President and CEO, expresses enthusiasm about where the bank is headed in the future and states, "With the recent reorganization and newly hired additions, American Bank is better positioned to serve its customers throughout the metro area and into the Albert Lea market more effectively and efficiently. These changes also provide a great foundation to work from when looking at the possibility of adding service locations in the future."
For more information, please contact John Seidel, President & CEO, 651.643.8422.
American Bank, St. Paul John Seidel, 651-643-8422
### Press Release ######################
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Newspaper Circulation Co
Fed likely to hold steady on rate hikes
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This Day in American History
1494-Christopher Columbus cited the island of Jamaica on his second voyage.. He never actually saw nor did his discoveries include the United States, but the island off the continent. It was the Spanish who first brought slavery into the new world. The islands were Europe's main gateway into the New World. The first Revolutionary naval battle was fought here to gain control of this ocean thoroughfare.
The Base Stealer
Poised between going on and back, pulled
Both ways taut like a tight-rope walker,
Fingertips pointing the opposites,
Now bouncing tiptoe like a dropped ball,
Or a kid skipping rope, come on, come on!
Running a scattering of steps sidewise,
How he teeters, skitters, tingles, teases,
Taunts them, hovers like an ecstatic bird,
He's only flirting, crowd him, crowd him,
Delicate, delicate, delicate, delicate - Now!