Archives August 6, 2001
Archives August 6, 2001
“I wanted to give you my updated contact information:
“Today is my last day at Bay View Commercial Leasing. It is possible that I might work with them in the near future on an independent contractor basis - I'll know after returning from my trip to Oahu.
“FYI, I will likely continue in the leasing business as a broker/consultant - I have a few offers and prospects. However, my primary focus will be in the movie business. My business partner (a Warner Bros. TV producer) and I have purchased the rights to remake the classic horror film - the Texas Chain Saw Massacre. This project will keep me quite busy for the next 6-8 months (we are planning for a summer 2002 release).
“I'll keep you apprised of my status. I hope all is well with you.”
Texas Chain Massacre
"Thanks for the email. It's been a few years since my leasing days but I enjoy keeping up through your newsletter. Since leaving Bay View and producing The Texas Chainsaw Massacre remake, I've produced a half dozen feature films including The Texas Chainsaw Massacre: The Beginning (prequel) as well as my latest, The Violent Kind, which world premiered at Sundance in January and will be in theaters later this year.
“I also just completed post production on A Darker Reality (starring Daniel Baldwin) which will be hitting the festival circuit soon and will be available in 2011.
"Thanks again for checking in and I hope you are doing well - and keep up the great work with Leasing News! "
(Please ask a colleague to subscribe, Leasing News is free.)
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Marlin Reports Second Quarter Net Income $1.6 million
The latest 8K filing by Marlin Business Services, Mount Laurel, New Jersey indicates a $1.6 million profit for the second quarter of 2010. It does not indicate as in previous filings as the information is not listed that "Evergreen Clause" leases with the automatic 12 extra payments were the main profit, primarily in the copier field.
In the last three years, it has continued its leadership in small ticket marketing, as well as taking advantage of "Evergreen Clauses," automatically throwing leases into an additional 12 months when the customers is not aware of the payments made.
Originally, a broker oriented group born out of Advanta Leasing, under the direction of Dan Dyer the company has changed direction, acquiring an industrial bank for funds, trying factor, mortgage loans, business loans, and becoming the first to exit the broker market to emphasize direct sales. Recently the company went back to a limited indirect market allowing up to twenty independent brokers to submit transactions.
In addition to the $1.6 million profit, the 8K filing shows the company official press release with the following highlights:
"Second Quarter Highlights:
• Net Income of $1. 6 million for the second quarter of 2010
In the press release, CEO Dan Dyer declares, “We are encouraged by the operating results for the second quarter and the strengthening fundamentals of our business.
"During the quarter, we generated healthy growth in new asset originations at attractive margins. Portfolio credit quality continues its strong performance with lower delinquencies and charge-offs reported this quarter. Looking ahead, our focus is on disciplined growth and capitalizing on the opportunity to serve the growing credit needs of small businesses across the U.S."
The company has increased its direct sales department, changing many of the average statistics of the last year, showing a positive increase in change of direction and success in the current direction:
Full 8K Press Release with financial statement:
Resource America blames it on Leasing
For the third fiscal quarter and nine months ended June 30, 2010, Resource America (NASDA-Rexi) reported a loss from continuing operations attributable to common shareholders of $5.3 million.
Resource America reported "... results for the third fiscal quarter and nine months ended June 30, 2010 include a non-cash charge of $8.0 million in connection with the sale of a leasing portfolio held by the Company’s commercial finance business. The proceeds from this transaction enabled the Company’s commercial finance business to fully repay and terminate its warehouse line of credit with PNC Bank, N.A.
"In addition, the results for the third fiscal quarter and nine months ended June 30, 2010 include $4.3 million and $3.0 million, respectively, in state tax benefits that were eliminated due to losses generated by the Company’s commercial finance business.
Jonathan Cohen, CEO and President commented, “During our third quarter we continued to make major strides in deleveraging the Company and focusing on our asset management businesses. While we did incur a non-cash charge in selling the leasing portfolio, it enabled us to reduce our balance sheet borrowings by almost 70% during the quarter. Without this non-cash charge, the Company would have returned to profitability.
"We were pleased to see the continued progress in our real estate and fund management businesses and through our management of Resource Capital Corp.
"As we recently announced, we are focused on completing the transformation of our Company in a way that realizes the highest value for our shareholders and allows us to take advantage of the tremendous opportunities we see ahead in our core strengths.”
No mention about LEAF Specialty Finance (Columbia, South Carolina) or confirmation or denial of signed July 28th sales of 1050 leases ($60 million) or new arrangement of 21,000 square foot property.
Did not mention Lease Division employ count: 2009 SEC LEAF filings showed 377 employees; February down to 271; reportedly down to 113 now.
Didn't mention Crit DeMent and his senior staff have opened, sold and closed leasing companies at least three separate times in their careers. This team includes Dave English, Bob Hunter, Earle Compton, Miles Herman."
Didn't mention: "CEO tells worker that he has a job until the doors close. That infers; they are closing the doors."
None of the above was addressed.
While the SEC filing is perhaps in process, not complete, here are the numbers from the press release financial statement:
"The Company’s management views adjusted revenues and adjusted operating income (loss), both non-GAAP measures, as useful and appropriate supplements to GAAP revenues and operating (loss) income since they exclude fair value adjustments related to current credit market conditions and loss (gain) on sale of leases and loans related to our commercial finance business which are not indicative of the Company’s current operating performance. Because not all companies use the same calculations, this presentation of adjusted revenues and adjusted operating income (loss) income may not be comparable to other, similarly-titled measures of other companies." (statement from 8K filing)
Resource America 8K Filing:
Inisde LEAF Financial
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Wirt Financial & Leasing Service joins “Broker/Lessor” List
1099--MISC Amendment Change Failed
The expansion of Form 1099-MISC reporting is now enacted into law.
Prior to this date, all companies reported non-corporate payments, meaning to proprietorships and partnerships the amount of money expended in the preceding year. There are other forms, W-9, for paying employees or individuals in excess of $600 per year. Technically also many states require reporting the sales tax not paid on internet transactions, as they require that you pay them, although this is generally not followed as to the many exceptions such as the first three sales of a consumer not being recorded, some states 12, some states exempt garage sales, and for the last several years the Streamline Sales Tax Group has been working on making these state laws more uniform.
The new law in effect January 1, 2011 will require 1099-MISC reporting to all except non-profits. Payments to corporations, partnerships, and sole proprietorships will require 1099-MISC reporting.
It's the end of the "goods and merchandise" exception. You'll be reporting vendors from whom you only buy supplies, materials, equipment, etc. Gross proceeds payments will be reportable on the 1099-MISC.
Many funders as well as broker/lessors use these forms for commissions and other payments, whether a corporation or proprietorship or partnership.
Most accounting software programs can automatically comply with these forms, not only adding up the category, but fitting it to the form, including all information such as name and address of the company paid to, as well as a cc: form to the company. Quick Books makes it quite simple to use. Undoubtedly there are many who may file electronically. Many other software programs such as TurboTax or specific programs such as from Realtaxtools.com or www.1099express.com or www.buytaxforms.com or Office Depot.
Ask your accountant for advice.
If you do not have the party’s Federal ID number, you will have to ask them for it. Many companies provide it with their invoice. The Federal ID is how the IRS will be tracking these, which will also be used in confirming that all income is being reported.
W-9 Form: http://www.irs.gov/pub/irs-pdf/fw9.pdf
Smaller companies that use a hand written general ledger can also purchase specific software from many major stationary stores as well as the forms. It is assumed they have been reporting non-corporate and W-9 and this now adds corporations (except non-profits).
Retailers, including restaurants, already report credit card sales. In the past, smaller companies would estimate credit card sales, but under the new law, Plus, a major change goes into effect January 1, 2011, for payments received by credit cards, including PayPal.
"IRS Form 1099-K ensures that small business owners who don't declare all of the revenues they receive via credit cards, debit cards, gift cards and services like PayPal will no longer be able to hide those revenues from the IRS.
"In the years to come, IRS scrutiny will be more intense for small businesses and entrepreneurs that accept credit cards, debit cards, gift cards, PayPal or similar electronic payments.
"Historically, the revenues that small businesses receive through these payment processors have not been readily visible to the IRS.
"Starting in 2011, the gross amount of payment card and third-party network transactions will be recorded on a new IRS form, form 1099-K.
"In rolling out the new 1099-K form, the IRS is attempting to improve voluntary tax compliance by business taxpayers.
"Currently, the tax system is more of an honor system than most might like to admit. Without visibility into a small business' credit card revenues, the IRS must take the business owners word that they are reporting all taxable revenues.
"In lieu of the IRS having access to information about credit card revenues and other electronic payment processing revenues, the IRS only has one tool to combat tax cheats who underreport revenues: an IRS audit. However, this is not a foolproof system because it requires scarce human resources to conduct a thorough IRS audit.
"Time and time again, we have seen that better information reporting helps the tax system work better by ensuring that everyone pays what they owe," said IRS Commissioner Doug Shulman.
"On the IRS website, you can view a draft version of new Form 1099K, Merchant Card and Third-Party Payments, which will be used to make these reports."
Yes, Congressman Charles Rangel voted for this.
Failed Bank Buyers are California Dreaming
(Re-Printed with Permission from SNL)
Nathan Stovall is a senior writer and columnist with SNL Financial. The views and opinions expressed in this piece are those of the author and do not necessarily represent the views of SNL.
The competition for FDIC-assisted deals in California could be heating up.
We've heard a number of California-based bankers say in the past few weeks that the bidding for failed banks in the state is intense, and landing assisted transactions has become even more difficult.
The pricing in the transactions does not seem to have changed that much, at least so far. The average government-assisted transaction in 2010 in California cost the FDIC's deposit insurance fund 21.86% of the failed institution's assets, compared to 19.98% in 2009, according to SNL data.
Although the offers in 2010 might seem lower than in 2009 based on the slightly larger hits to the fund, there seems to be greater interest in banks that have recently failed in California. The FDIC has found a buyer for each of the six California-based banks that failed this year, whereas the agency found buyers for 16 of the 17 banks that failed in California in 2009, having to pay out the deposits of Beverly Hills Bancorp Inc. unit First Bank of Beverly Hills. The cost of that failure equated to 26.27% of failed institution's assets, increasing the average cost of failures in California in 2009 to 20.43%.
The cost of resolutions in California does seem to be decreasing. Some assisted deals in the past few months were significantly cheaper for the FDIC's deposit insurance fund than in prior years, including Center Financial Corp.'s purchase of Innovative Bank and Mitsubishi UFJ Financial Group Inc. unit Union Bank NA's purchase of Tamalpais Bank. The cost to the fund of those transactions, which occurred April 16, equated to 13.31% and 12.90% of the failed institution's assets, respectively.
A handful of California-based banks, including Bank of Marin Bancorp, CVB Financial Corp. and First California Financial Group Inc., said at a KBW-sponsored investor conference last week that assisted deals in California are getting tougher to complete as the bidding has become more competitive.
Ontario, Calif.-based CVB Financial has completed one assisted deal this cycle, purchasing San Joaquin Bank in October 2009. CVB Financial President and CEO Christopher Myers told SNL at the event that many potential acquirers in California are willing to go after purely financial transactions. He said he would love to acquire another failed bank, but it has to make both financial and strategic sense. He further said many of the banks left in California that could potentially fail are smaller franchises, and he does not plan to go after deals where there is not real franchise value in the bank.
Russell Goldsmith, president and CEO of City National Corp., which has completed two assisted deals in California this cycle, told a similar story during the company's second-quarter earnings call. While his company continues to look closely at assisted deals, Goldsmith said the quality of targets "is diminishing rapidly:'
"So whether there actually will be something that we'll be interested in, let alone whether we would get it, remains to be seen. I think each day it's less and less likely that we'll find something there that we want;' Goldsmith said.
There will be more opportunities to acquire failed banks in California. According to SNL data, there were 20 banks in California with adjusted Texas ratios in excess of 100% as of March 31, a widely regarded threshold at which banks tend to fail. Like the normal Texas ratio, the adjusted Texas ratio is defined as nonperforming assets plus loans 90 days past due divided by tangible equity plus loan loss reserve, but importantly, it excludes government-guaranteed loans, including loans covered through loss-share agreements.
Most of those 20 banks are smaller institutions, with an average asset size of $343.5 million at March 31; only one of the institutions has more than $1 billion in assets. Smaller failed banks have historically attracted lower offers from potential buyers because they really cannot move the needle for many acquirers.
However, if the reports of California bankers hold, there should be plenty of interest in future transactions in the state.
(Leasing News provides this ad “gratis” as a means
“Alamar” and “Kisses” give theatergoers a first-rate doble-bill of profoundly moving views of childhood, while DVD releases offer laughs (“Death at a Funeral”), insights (“No One Knows About Persian Cats”), and a peek into a cinema master’s earliest releases.
Alamar (Film Movement): Shot with few funds but bottomless love, director Pedro Gonzalez-Rubio’s gentle family drama is a much-needed breath of fresh air in this summer season. Using non-professional actors to create a unique blend of storytelling and documentary, Gonzalez-Rubio follows Jorge (Jorge Machado), a Mexican fisherman, and five-year-old son Natan (Machado Palombini) as they spend a few days in the sunny Caribbean coast of Banco Chinchorro. As they sail the waters, catch fish and befriend locals and animals, father and son develop a strong bond that will be put to the test as Natan’s return to the city draws near. One of the year’s greatest discoveries, it’s a movie of breathtaking beauty and pure, almost childlike emotions that lingers in the mind and heart long after it’s over. With subtitles.
Kisses (Oscilloscope): Moving from the Caribbean to Ireland, Lance Daly’s gritty tale views childhood from a different angle. Dylan (Shane Curry) and Kyle (Kelly O’Neill) are pre-teen neighbors who survive their family struggles in the working-class suburbs of Dublin by sticking together. When they run away together in search for Dylan’s older brother, the outside world suddenly appears full of potential wonder and danger. Will they make it safely to their destination, with the remains of their innocence intact? As part of a long and honorable tradition of movies about troubled young protagonists, the film mixes tough, unsentimental determination with unexpected lyricism. An affecting portrait of childhood giving way to life’s experiences, greatly aided by the naturalistic performances of its young cast.
New on DVD:
Death at a Funeral (Sony): Better known for his dark psychological studies (“In the Company of Men,” “Your Friends and Neighbors”), director Neil LaBute lightens up a bit with this energetic ensemble comedy. The story unfolds as a family gathers at the funeral of the patriarch, which goes from bad to worse as the relatives snap at each other’s foibles and the wrong corpse turns up in the casket. At the head of the family are Aaron (Chris Rock) and Michelle (Regina Hall), who are struggling to keep everything together in the face of shocking revelations, exposed emotions, and unexpected guests like the enigmatic dwarf (Peter Dinklage) who’s privy to some secrets. Featuring brisk comic twists and a supporting cast that includes Danny Glover, Martin Lawrence and Tracy Morgan, it’s an agreeable new direction for the usually serious LaBute.
Eclipse Series 23: The First Films of Akira Kurosawa (Criterion): Ever wonder how movie masters got started? Akira Kurosawa remains one of cinema’s most highly respected filmmakers, yet how did he reach the heights of “Ikiru” and “Seven Samurai”? This excellent, four-disc box-set of the Japanese filmmaker’s earlier works goes a long way in outlining his progress from scrappy action director to art-house favorite. Among the movies included are “Sanshiro Sugata,” a brisk and action-packed story of a man’s journey into bravery, and “The Men Who Tread on the Tiger’s Tail,” where the tough pride of warriors is delightfully contrasted with the slapstick humanity of a bumbling wanderer. While they’re historically important as glimpses of Japan during and after World War II, these movies are also essential for the understanding of Kurosawa’s enduring cinematic artistry. With subtitles.
No One Knows About Persian Cats (IFC Films): One of the greatest aspects of movies is the way they can take us to corners of the world audiences would rarely ever have access to. In this rousing musical comedy-drama, director Bahman Ghobadi takes us into the unique netherworld of Iranian musicians, people who risk their lives for artistic expression in an oppressive society. Negar (Negar Shaghaghi) and Ashkan (Ashkan Koshanejad) are Tehran musicians with plans for a concert in London. Such a trip would require a visa from the government, which brings issues of censorship into the project. Can they find other band members and evade scrutiny, or will they end up in jail? Combining concert footage with insightful critique, Ghobadi offers a gripping yet light and humorous celebration of courage and talent of these people. With subtitles.
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There are so many dogs here that looks so
Age: 6 Months
“My name is Coco and I'm 6 months old. I'm a playful Shepherd - Australian mix puppy. My friends say I have BIG ears but my foster mom thinks it's just that I'm a very good listener so I'll be more than happy to pay attention to all the nice things you might want to share with me.
“I'm a very smart puppy and I learn new things every day - actually my foster parents are teaching me Spanish, they say I'm doing "pura vida!". Even though I'm doing well now, I'm ready to find my own family and share all these good things with you. I have a very flexible schedule so if you want to meet me just send me a note!
“I'm already neutered, micro chips and have my first shots.”
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This Day in American History
1727- The first Roman Catholic convent in America is occupied by the Ursaline nuns in New Orleans. The convent/school is still occupied today although rebuilt several times and much enlarged.
The Catchers Learns the Motion
by Tim Peeler
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