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Kit
Menkin’s Leasing News
www.leasingnews.org Friday,
May 31, 2002 Accurate,
fair and unbiased news for the equipment Leasing Industry
Headlines---- Last Day---You Can Fax a credit card. One Lucky Fellow---Don Klein
Another Lucky Fellow—Rich Viola Continued US jobless claims hit 19-year high The Funding Tree—Up-Date Gregory A. Smith joins Z Resource Group Best Equipment Lease Marketing Book Now Available as CD Fed banking regulators put banks on notice about unfair practices law Sixteen inventors added to Hall of Fame Financial Federal Announces Record Net Earnings ### Denotes Press Release ________________________________________________________________ Last Day---You Can Fax a credit card. UAEL Special Early Early Bird Discount “Top Gun”
United Association of Equipment Leasing 2002 ANNUAL CONFERENCE & EXPOSITION October 3-6 Sheraton San Diego Hotel & Marina San Diego, CA Register before June 1st and save $50 with the Super Early Bird Registration Attached is the Exhibitor Registration Form, Sponsorship Opportunities and Super Early Bird Registration Form Online registration is available at www.uael.org or go here: http://www.leasingnews.org/docs/Super%20Early%20Bird%20 Registration%20Form.doc for other information: http://www.leasingnews.org/docs/EXHIBITOR%20INVITE.doc http://www.leasingnews.org/docs/General%20Sponsorships.doc You don’t want to miss this one!!!! (Leasing News will have two workshops--- Top Industry Sales managers Top Gun Salesmen---W2’s over $250,000 income each year) ______________________ please send to a colleague ----------------------------------------------------------------------------------------------------- One Lucky Fellow---Don Klein In February of this year, Citicapital gave sixty days notice to the machine tool division. There just was not enough business. Reportedly they gave employees “generous severance.” April 30th was his last day, and May 1st was Don Klein’s first day at TCF Leasing. Minnetonka,
TCF Leasing, Inc., announced that Don Klein has
He has
17 years in the leasing business, specializing in the machine tool marketplace.
Originally at Copelo, the unit was sold to Citicapital. Before that
he was at LCA, who were purchased by The Associates. Before that at
Newcourt, who was purchased by CIT. Klein has
an excellent reputation in the machine tool nice marketplace. He believes
the marketplace is turning around and TCF has the best pricing and credit
decision making ability in the business.
Don Klein
<dklein@tcfleasing.com> Another
Lucky Fellow—Rich Viola “We are very happy to have Rich with us, “Dwight Galloway, CEO and very popular leasing executive said. “ We hope to soon have all of the team, as well as all the other tools, necessary to build an excellent funding source for the next decade. Republic Leasing Company, a NetBank company, (NTBK, Nasdaq) formally announced that Rich Viola has joined the Republic team as Director of Administration. Viola has eighteen years of outstanding success in the broker funding industry, including positions as VP of Finance for Colonial Pacific and Textron Financial Capital, and President/COO of FNF Capital. He will be working with Charles Randall, President and Dwight Galloway, CEO to help continue the growth and profitability of the small/mid ticket funding source as they take advantage of the relationship with their new parent NetBank. Galloway indicated that, “Rich’s tremendous knowledge and experience will enhance our ability to achieve our goal of unsurpassed service to the broker community. We are assembling a team of leasing professionals that, with the help of NetBank, will provide the products and long range reliability brokers need in a funding source. We are committed to forging partnerships with quality broker/lessors who value our fourteen years of dedication and understanding of their needs.” “We are looking to do things better, faster, and cheaper, “ he said. “Our parent has given us great opportunities with cost of funds and support. We have always supported the broker community. We want to do better and Viola has experience and abilities that he will add to our efforts.” Accordingly, Viola is from New York, but lived in Oregon and the latest, Denver, Colorado. He has moved his family to South Carolina. Dwight Galloway says the weather is great, except for hot summers ( but then, many of us don’t mind the warm evenings to sit outside with our family and friends). “This is great to have him on our team, “ Galloway said. “For fourteen years, we have picked the best deals, and maybe Viola can teach us a few things. Maybe we can make less mistakes and do more business, more efficiently, and really perform better for the broker community.” Dwight Galloway <dgalloway@rlclsg.com> Continued US jobless claims hit 19-year high By Peronet Despeignes in Washington Financial Times In a new measure of the US economy's continuing travails, the number of US residents on the dole hit a new 19-year high earlier this month, according to official data released Thursday. The US labor department said on Thursday morning that the number of new unemployment insurance claims fell for the second consecutive week, to 410,000 in the week to May 25 from a revised 422,000 the previous week. But the total number of US residents collecting benefits on a continuing basis rose to 3.89m in the week to May 18 - the highest number since January 15 1983 - from 3.84m the previous week. While the pace of job cuts has slowed from post-September 11 highs, the numbers reflect continued anemic hiring, making it harder for unemployed US citizens to leave jobless-benefits rolls. The US economy has bounced back from last year's recession, but its growth apparently remains uneven and sluggish, and business confidence weak. The recovery has not proven strong enough to generate much growth in hiring, stem rising unemployment or arrest an increasing demand for jobless benefits. __________________________________________________________________ The Funding Tree—Up-Date Leasing News is receiving reports from vendors and brokers that Kendra Bernal is funding deals or returning advance rentals, as she had promised to do. There is a hearing scheduled for the California Department of Corporations. And we still hear from people, such as: Name = Lona Benet Address = 101 N. I-45 City = Palmer State = Texas Zipcode = 75152 Phone = (972) 845-3400 Fax = (972) 845-3315 Email = rebexpressinc@prodigy.net Source = Add me to the mailing list = yes Comments = Kit, We found the information interesting about The Funding Tree. We have yet to receive any down payments back. I could not open the letter from Kendra Bernall. Would you email it to me in its entirety? Our company has suffered tremendous losses due to our involvement with TFT. We built trailers, send large down payments, and were never funded. Our customers have suffered greatly. I get three to four calls a week from individuals that have been harmed by TFT and cannot get their down payments back. They sent the monies to TFT in good faith and now are suffering greatly as they were not funded, have no equipment, cannot go to work and are out - some of them all the money they had - with no hope of opportunity because TFT has refused to refund the money. We have spent a tremendous amount of money trying to get those monies back also to no avail. Keep up the good work informing everyone. Lona Benet
Leasing News will keep you apprised of all new developments. http://www.leasingnews.org/bulletin_board.htm _________________________________________________________________-- ### ################################################################# Gregory A. Smith joins Z Resource Group as Managing Director of the firms Bank Services Group Boston, MA Z Resource Group (ZRG - Private) Z Resource Group is pleased to announce that Gregory A. Smith has joined Z Resource Group as the Managing Director of the firm's rapidly expanding Bank Services Group. In his 30 years of banking and related finance experience, Greg has founded or co-founded several different bank service organizations which were subsequently sold to various New England based banks. In addition, over his long career, Greg has worked in senior level management positions with many large regional banking organizations and bank holding companies. He has also been involved with several smaller banking firms financing small business, particularly in his capacity as General Manager of a multi banks' holding company's venture capital/SBIC arm. In his new role as Managing Director with Z Resource Group, Greg will lead Z's Bank Services Group which focuses on providing retained recruiting services for middle and senior level bank positions as well as strategic consulting to banks in the areas of commercial lending, new business development and leasing. He will also develop relationships in the firms Private Equity/Venture area. Company Founder Kenneth Vancini stated, "The addition of Greg Smith is a strong addition to our senior leadership team. Greg's experience and leadership in the bank sector will serve as the catalyst to drive growth in this key market sector for the Z Resource Group. Greg's direct experiences and contact base make him an ideal fit as we continue to expand our presence in this very important market sector." Mr. Smith related, "I am very pleased to be joining the Z Resource Group team in this new capacity. The firm shares my strong long-term client focus and commitment to performance, which has been the cornerstone of my personal reputation and success over my years in banking. I look forward to continuing to provide needed and meaningful services to the banking community in this exciting new position with the Z Resource Group". Greg and his wife Joyce have resided in Westboro, MA since 1972. He is a 1967 graduate of The College of the Holy Cross. Z Resource Group is a fast growing, nationwide specialty Executive Search/Consulting firm headquartered in the Boston, MA area. The company is entering its fourth year of providing talent acquisition and consulting services focused in the Financial Services, Technology and Health Care markets. Z Resource Group has full service offices in three key markets areas; Boston, New York and Philadelphia. Mr. Smith can be reached at 508-366-5800 x102 or by e-mail at gsmith@zrgroup.com www.zrgroup.com Larry Hartmann Managing Director Z Resource Group
201-560-9900 x222
Contact: Kenneth Vancini, Managing Director 508-366-5800 ##### ####################################################### Best Equipment Lease Marketing Book Now Available as CD (Many have used this book for years as it is simple to read, not boring, and is excellent in every chapter. A former banker, lessor, now broker, United Association of Equipment Leasing former president, who has written several books ---- Kit: Well, we finally finished the revision of "Marketing the Equipment Lease". We will now only offer this on CD-ROM and have reduced the price to reflect the savings in printing and shipping costs. New price is $74.50 plus tax, a $25.00 savings to the buyer. Thanks for your continued support. Ted Parker ted@cclease.com (for lease marketing, this is the book for new salesmen, and a reminder for veterans. And if you don’t take the Wildwood Financial Course, at least take the Dun and Bradstreet Financial Statement course. Please visit our sections on leasing books: http://www.leasingnews.org/Books.htm editor ) Federal banking regulators put banks on notice about unfair practices law By Martin Crutsinger, Associated Press WASHINGTON (AP) Federal banking regulators put the nation's financial institutions on notice Thursday that they are covered by the consumer protection provisions of a law that prohibits unfair and deceptive business practices. The Federal Deposit Insurance Corp. raised the issue in a letter to all banks and savings and loan institutions that it covers with deposit insurance. The Federal Reserve outlined its position in a letter that Federal Reserve Chairman Alan Greenspan sent to Rep. John LaFalce, D-N.Y. LaFalce had been pressing for the clarification because of his concern that regulators did not believe they had the power under the Federal Trade Commission Act of 1975 to crack down on unfair and deceptive practices, especially in the issuance of credit cards. In a statement, LaFalce said he was pleased with the ''strong and clear position'' by Greenspan as well as the FDIC's announcement. He said that the Fed's ''reluctance to issue broad regulations defining unfair and deceptive practices since 1975'' had raised questions over whether the banking regulators believed they had authority to act in this area. Greenspan wrote LaFalce that the Fed believed that the unfair and deceptive practices law does apply to banks and that compliance is monitored as part of the Fed's examination process for banks. Greenspan, however, said Fed officials did not believe that specific regulations were needed because the central bank preferred to handle deceptive practices on a ''case- by-case basis.'' LaFalce commended the Office of the Comptroller of the Currency, which regulates banks with national charters, for what he termed its ''groundbreaking example'' in beginning to initiate cases against banks in the area of credit card abuses. In June 2000, credit card giant Providian Financial Corp., based in San Francisco, agreed to pay more than $300 million to close investigations started by the U.S. comptroller and California and Connecticut authorities into its credit practices. Providian did not admit to wrongdoing in the settlement. On the Net: Federal Reserve: http://www.federalreserve.gov Federal Deposit Insurance Corp. http://www.fdic.gov ___________________________________________________________________ Sixteen inventors added to Hall of Fame By Associated Press PALO ALTO, Calif. (AP) The creators of the lap-and-shoulder seat belt, the process used in laser eye-surgery and a machine that reads text to the blind were among 16 people named to the National Inventors Hall of Fame. The inventors of an early computer, aspirin and modern steel production also were in the new class of inductees, announced in a ceremony at Hewlett-Packard Co. headquarters in Palo Alto. They are to formally join the 168 other inventors in the Hall of Fame in Akron, Ohio, on Sept. 21. Each of the inventors has ''helped shape the lifestyles we live today,'' said Donald Keck, president of the Hall of Fame's foundation. The new inductees are: Raymond Kurzweil, an expert on artificial intelligence and virtual reality who in 1976 introduced a reading machine that scans printed material and reads it aloud to the blind. Nils Bohlin, who invented the three-point seat belt for Volvo and patented it in 1962. Rangaswamy Srinivasan, James Wynne and Samuel Blum, who developed the procedure used in LASIK eye surgery at IBM in the 1980s. M. Stephen Heilman, Alois Langer, Morton Mower and Michael Mirowski, who in 1980 patented the implantable defibrillator, which constantly monitors a patient's heartbeat and jolts it back to normal in case of cardiac arrest. Rodney Bagley, Irwin Lachman and Ronald Lewis, who invented a ceramic substrate for catalytic converters, the device used in reducing auto emissions, and patented it in 1974. The posthumous additions are: Felix Hoffmann, the chemist who patented aspirin in 1900. John Presper Eckert Jr. and John Mauchly, the developers of the Electronic Numerical Integrator and Computer, or ENIAC, the forerunner to the modern computer. Built at the University of Pennsylvania in the 1940s to help the military calculate missile trajectories, ENIAC weighed 30 tons and was 150 feet long. Henry Bessemer, an Englishman who in 1856 patented a process that made steel production faster and less expensive, a major development in modern industry. The National Inventors Hall of Fame was founded in 1973 by the U.S. Patent Office and the National Council of Intellectual Property Law Associations. On the Net: National Inventors Hall of Fame: http://www.invent.org ############# ############################################### Financial Federal Corporation Announces Record Net Earnings for the Third Fiscal Quarter Ended April 30, 2002 NEW YORK-- --Financial Federal Corporation ("FIF" - NYSE), a nationwide, independent financial services company specializing in equipment financing and leasing for middle market businesses, reported net earnings increased by 17% to $9.4 million in the third quarter ended April 30, 2002 from $8.0 million in the comparable quarter last year. Diluted earnings per share for the quarters ended April 30, 2002 and 2001 were $0.50 and $0.44, respectively, a 14% increase. The percentage increase in diluted earnings per share was lower than the percentage increase in net earnings primarily due to the effect that the Company's convertible notes had on the diluted earnings per share calculation. New business originated during the quarter amounted to $208 million. Finance receivables outstanding increased by 11% to $1.42 billion at April 30, 2002 from $1.28 billion at April 30, 2001. For the nine months ended April 30, 2002, net earnings were $27.5 million compared to $23.0 million for the comparable period last year, a 19% increase. Diluted earnings per share for the nine months ended April 30, 2002 and 2001 were $1.48 and $1.28, respectively, a 16% increase. Paul R. Sinsheimer, Chairman, commented, "We are pleased to report our 52nd consecutive quarter of record net earnings and asset growth - an outstanding achievement under any circumstances - even more so, given the continued softness in the economy and, more specifically, the industries we finance. Strategically, the Company is well-positioned to benefit from an economic turnaround. Although today we do not see any of the signs that usually indicate that the economy is about to turn the corner, we remain confident in our ability to perform in the current environment." Steven F. Groth, CFO, commented, "Asset quality and liquidity continue to be the primary challenges currently facing finance companies. Delinquencies over 60 days decreased slightly from 3.02% to 2.97%, non-performing assets rose from 3.34% to 3.48% and net annualized credit losses remained the same as the previous quarter at 0.24%. These statistics continue to compare favorably to our industry. Liquidity continues to be a major focus for the Company, and we're proud to report ample excess capacity as a result of recently receiving new funding commitments in the banking and private placement markets." Financial Federal Corporation specializes in financing industrial and commercial equipment through installment sales and leasing programs for manufacturers, dealers and end users nationwide. For additional information, please visit the Company's website at www.financialfederal.com. CONDENSED CONSOLIDATED UNAUDITED INCOME STATEMENTS (In Thousands, Except Per Share Amounts) Three Months Ended Nine Months Ended April 30, April 30, 2002 2001 2002 2001 ------- ------- -------- -------- Finance income $34,188 $34,825 $103,410 $102,678 Interest expense 11,852 15,886 38,485 48,981 ------- ------- -------- -------- Net finance income before provision for losses 22,336 18,939 64,925 53,697 Provision for possible losses 1,400 1,300 4,025 3,550 ------- ------- -------- -------- Net finance income 20,936 17,639 60,900 50,147 Salaries and other expenses 5,414 4,517 15,609 12,481 ------- ------- -------- -------- Pre-tax income 15,522 13,122 45,291 37,666 Income taxes 6,116 5,112 17,831 14,654 ------- ------- -------- -------- NET EARNINGS $9,406 $8,010 $27,460 $23,012 ======= ======= ======== ======== Earnings per share: Diluted $0.50 $0.44 $1.48 $1.28 ===== ===== ===== ===== Basic $0.56 $0.49 $1.65 $1.47 ===== ===== ===== ===== Number of shares used: Diluted 20,187 19,823 20,053 19,716 ====== ====== ====== ====== Basic 16,674 16,466 16,610 15,686 ====== ====== ====== ====== CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS (Dollars in Thousands) April 30, July 31, April 30, 2002 2001 2001 ASSETS: ---------- ---------- ---------- Finance receivables $1,421,171 $1,321,226 $1,279,245 Allowance for possible losses (23,582) (21,938) (21,176) ---------- ---------- ---------- Finance receivables-net 1,397,589 1,299,288 1,258,069 Cash 9,183 10,251 10,608 Other assets 3,978 4,124 3,831 ---------- ---------- ---------- TOTAL ASSETS $1,410,750 $1,313,663 $1,272,508 ========== ========== ========== LIABILITIES: Senior debt $1,002,145 $931,598 $914,308 Subordinated debt 93,478 93,485 93,485 Other liabilities and deferred taxes 78,247 82,169 67,600 STOCKHOLDERS' EQUITY 236,880 206,411 197,115 ---------- ---------- ---------- TOTAL LIABILITIES AND EQUITY $1,410,750 $1,313,663 $1,272,508 ========== ========== ========== CONTACT: Financial Federal Corporation Steven F. Groth, 212/599-8000 SOURCE: Financial Federal Corporation ############################ ############################################################ ___________
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