Friday, October 28,, 2005
Headlines--- Uproar re: ELA Convention in Boca Raton ######## surrounding the article denotes it is a “press release” More on the Champion Chicago White Sox http://whitesox.mlb.com/NASApp/mlb/mlb/ps/y2005/index.jsp
Uproar re: ELA Convention in Boca Raton by Kit Menkin Leasing News is receiving reports from readers that they were told not to attend the Equipment Leasing Association Conference at the Boca Raton Resort & Club, Boca Raton, Florida , by the hotel itself, and now they are informed ELA will not be returning their registration fee because they did not attend. “Situated on 356 acres in Boca Raton, the heart of Florida's Gold Coast, in south Palm Beach County. Easily accessible via air transportation: 28 miles south of Palm Beach Airport, 24 miles north of Fort Lauderdale International Airport, 45 miles north of Miami International Airport... “A staff of 2,200 employees representing 60 nations, is committed to providing personal and outstanding service..1041 deluxe guestrooms inclusive of 56 suites, 76 junior suites, 60 one-bedroom Boca Bungalows...” “ELA cannot speak for what the hotel might have said, but people arrived right up through Sunday evening, “ ELA president Michael Fleming told Leasing News. “ Sometimes ‘they told me not to come' is translated from ‘We are going to have bad weather beginning early Monday morning through noon'. In any event FYI, we had the general sessions, the name speakers spoke and applauded the attendees tenacity, and 75% of the breakouts were held. Great evening parties!!!” Leasing News reproduced on Wednesday the ELTnews report from ELA about the conference, with their headline: "Eventful Annual Convention Closes" "Tuesday night, intrepid ELA members closed the 44th Annual Convention with a raucous theme party. Generator-powered 'Margaritaville' featured plenty of excellent food and drink, caricaturists, exotic birds, a full band and a special appearance by 'Leased Zeppelin' (the musical stylings of three ELA staff members with GE's David Weiner). "The party was a perfect cap to an eventful convention. Despite many inconveniences, attendees remained upbeat (some even characterized it as one of the best ELA conventions they'd attended). Resort staff worked extremely hard to ensure that attendees were comfortable and that there was as little interruption to the program as possible. Tuesday's program did indeed go on with both a general session and more than a dozen breakout sessions." Mr. Fleming confirmed that the conference had gone on despite the weather outside. “It is true that driving in Boca on Monday and Tuesday was restricted but I am not sure where people wanted to go as nothing outside of the hotel was functioning and the airports were closed. Convention sessions were going on all day.” Suzanne Jackson Henry of Four Leaf Public Relations LLC told Leasing News, “The actual records are also in transit, but they estimate between 400 and 500 people arrived. They are still determining and will know much more later. Also, a piece will be coming shortly (late today or tomorrow) that describes the convention in more detail.” Readers reacted by telling Leasing News those who did not attend will not be getting “refunds,” adding there was more news if we were to dig further into it: “I am outraged that the ELA has the audacity to write that the convention was a success. I wonder what percentage of the people actually went? Firstly, the airports were closed and even if we wanted to, we couldn't get there. I have family living in the area and the electricity is still out and the lines to get gas are 7 hours long. I think it was a prudent decision for anyone who decided not to attend. “Apparently, the ELA has no intention of refunding the fee to all of the attendees who were rational and decided it wasn't a good idea to risk their lives to attend the convention! Who made the decision not to cancel the convention? Can you imagine if people were actually hurt or something happened? I know all of the people we spoke to that decided not to go feel the same way that I do. “thanks “ Mark Kitaeff, President ( a member of ELA, as all those who contacted us, we verified were members except for one.) -- “I wanted to write you regarding the ELA annual meeting in Boca Raton as it appears that the "press" coverage from the ELA, Leasing News and other sources is completely biased. Whether it is due to the fact that that ELA is concerned about its liabilities or due to ineptitude, it is very upsetting to me that a non-profit member organized entity would want to do the wrong thing for its members. I have questioned over the years how the organization handles certain issues, and the handling of this event makes it clear that much of the strategy is simply "stick your head in the sand and continue to believe the status quo will prevail". “Late last week, when all other ELA members and I were trying to decide whether to fly to Miami for the ELA annual event, the first source I would check is the government (NOAA) websites. The NOAA website language on Thursday and Friday basically stated that there was a 70% chance of a category 2 or higher strike around or north of Miami, and to stay away from the area. Meanwhile, national news was talking about evacuations of the keys and low lying areas in the east such as Naples. Although Boca is on the east side it was clear from the news that there would be hurricane force winds in the area. The ELA Website continued to state that the event was on and that the weather was not expected to be that bad so come on down. “On Friday I spoke to many other ELA members. We were all concerned that (a) it simply defied logic to fly into an area that was already declared an emergency area and that would surely see power, flight and other disruptions, and (b) no one wanted to be stuck there and not able to get out. Even more interesting was two board members I know who were in Florida for the board meetings said something to the effect of "I am getting the heck out of here on Saturday while I can." They urged me and other friends not to come! “Today I spoke to an associate who did go down to Florida. He said that it was a very unpleasant experience. He though there were about 150 people there. The power was from generators, and there was no hot water in the hotel and no TV. At 2:00 in the morning the night of the hurricane the window in the room next to him blew out! There were no flights home from Miami, so they drove 6 hours to Orlando to catch a flight home. The only way they made it out of the Boca area (since there was no gas in the area) is that they luckily had a full tank of gas in their rental car. “The handling of this event bothers me. I love going to ELA events in general, but what was the board and people running the event thinking!! “Please feel free to print this.” Christopher A. Enbom -- "What will be interesting is see how many of the 800 no-show's complain about no refund. That may be where the story is down the road. What ELA fails to mention it that the attendees had no where to go if they wanted. Many roads in Boca were blocked with downed trees, taxi's were having difficulty getting gas and most important the three airports servicing the area were closed until late Tuesday." (ELA member) --- “As one who tried to get there and was told by the hotel on Monday AM ‘do not come', I'm curious to find out how many were there. (ELA member) -- “Quiet a brew going on with Mike Fleming of the ELA. You have any news about the convention down in Boca.... Lot of us did not attend but are not getting our money back....??? “May be a scoop here for you....” (ELA member) -- “It's a tough situation for many, especially service providers. We want to maintain a happy, positive reputation and not be considered troublemakers. It's frustrating to have issues and not be able to vent publicly. I know there are many disgruntled members who are waiting for ELA to address their complaints. At some point ELA will have to address the issue publicly, and once that is done, those who are not pleased will probably be more vocal.” (ELA member) -- “I certainly can understand ELA's reasoning for not canceling the conference. If they had do so they would have had to get the word out last Thursday, Friday at the very latest. Most left over the weekend, as the conference started Sunday with golf. To effectively cancel the conference emails and calls would have needed to go out before attendees left for the weekend. Worst then going ahead with the conference would be to have attendees who were not alerted to the cancellation showing up expecting a conference only to find out it was canceled. “Their reasoning Friday was that Wilma was going to hit the West coast of Florida and Boca is on the East coast. What they did not consider is the size of the storm. They should be very grateful that of those deciding to attend none were hurt. What I really don't understand is the statement that "registered attendees who have delayed coming should consider coming for the balance of the program. Hotel rooms are plentiful," How are these people going to get there with the local airports closed! It is my understanding, that as of Friday, ELA was not offering any refunds for conference fees. I assume the hotel has at least a 24 hour, if not 48 hour cancellation policy, Midwest Express was waiving usual fees for schedule changing on flights to Miami, however last word was that the airports on the East coast of Florida would not be operating until tonight or tomorrow. CNN showed that many streets in Boca were blocked with downed trees and a semi blown over on I-95. The backside of the eye wall was far worst then anyone expected. If you got to Boca, getting to the hotel would be difficult and they might still not have electricity. I figure many of those attending were looking for the first available flights out. “I can fully understand the Associations scheduling conferences during off seasons at resorts in order to obtain more favorable room prices, but I believe they all should consider the safety of their membership first. It is one thing to schedule a conference where the location may still be shaking off winter, but to schedule conferences in Florida during hurricane season is not too bright, to not offer refunds is unconscionable. I recall another conference in downtown Chicago in early April, attendees had to be careful when leaving the building because very large ice cycles were melting and falling off the skyscrapers. It would have been on heck of a law suit had anyone been hit and injured or killed. “Hopefully, all the associations will take into consideration locations and potential weather or other dangerous conditions when scheduling future conferences. I am certain most members would rather pay a few dollars more for a hotel then to sit having to wonder if the should fly into a hurricane or something worse.” From a Friend of the Industry. (Name Withheld) (not an ELA member, but active in two other leasing associations) -------------------------------------------------------------- Welcome Aboard New Readers
The advantage on being on our mailing list gives you up-dates, as we did on Wednesday about the Equipment Leasing Association Conference in Florida amid hurricane Wilma. Subscriptions to our mailing list are free. We also do not share or sell our mailing list. It is confidential. We encourage you to ask colleagues to subscribe. We do not “spam,” but only add an e-mail address when requested by the recipient. Our goal is to print daily from Monday to Friday, but most often it is only three or four times a week, so when you are on the mailing list, you are also informed that the new edition is available. We welcome the new readers and hope you enjoy and find informative Leasing News. Christopher Menkin, Publisher -------------------------------------------------------------- Classified Ads---Operations Orange County, CA. East Windsor, NJ. New York, NY. Wayne, NJ For a full listing of all “job wanted” ads, please go to: http://64.125.68.91/AL/LeasingNews/JobPostings.htm To place a free “job wanted” ad, please go to: http://64.125.68.91/AL/LeasingNews/PostingForm.asp --------------------------------------------------------------- Equipment Leasing Association Names Paul A. Larkins as Chair Key Equipment Finance President and CEO Assumes Role With An Eye on Industry's Future
Paul A. Larkin Arlington, VA—October 27, 2005—At the Equipment Leasing Association (ELA) Annual Convention earlier this week, outgoing Chair Dennis P. Neumann of BNY Capital Funding handed the chairman's gavel to Paul A. Larkins, president and chief executive officer of Key Equipment Finance (NYSE: KEY). Larkins, elected by ELA's 750 member companies, assumes the position of chairman of the ELA's Board of Directors immediately and will hold a one year term. ELA is a non-profit association that promotes the equipment leasing industry as a major source of funds for capital investment in the U.S. and other countries. “I look forward to leading the executive committee of the Board and help the organization take its next evolutionary step,” said Larkins. “We have many initiatives that we would like to focus on over the next 12 months, including attracting new talent to the industry and sharing best practices amongst industry leaders.” Larkins' goals include furthering the association's Fair Business Practices initiative, developed to increase awareness and acceptance of the ELA's code of ethics among member companies, and developing a Human Resource Forum with the purpose of increasing professionalism and best-practice sharing among the industry's human resources and recruiting representatives. Additionally, Larkins is committed to furthering the work of the Leasing Leaders Initiative, which promotes a number of programs designed to attract, develop and retain high caliber young and diverse talent in the industry. “Paul is a passionate, committed leader,” said ELA President Michael Fleming. “We are delighted he has been elected to the position of Chair. The equipment leasing industry is a large, diverse community and, as the adoption of leasing grows in the business world, the association will need to be poised to meet those growth demands.” The equipment leasing industry is forecasted to be $248 billion industry in 2005, and according to a recent study by Global Insight, has created an additional three million to seven million jobs, annually, in the U.S. during the 1997 to 2004 timeframe, as well as produced at minimum $75 billion and as much as $315 billion additional real GDP and produced at minimum $160 billion and as much as $240 billion additional real equipment investment. Key Equipment Finance is the equipment leasing unit of KeyCorp and the nation's third-largest bank-held equipment leasing company. About ELA Organized in 1961, the Equipment Leasing Association (ELA) is the premier non-profit association representing companies involved in the dynamic equipment leasing and finance industry to the business community, government and media. As the voice of the leasing industry, ELA promotes the forecasted $248 billion industry as a major source of funds for capital investment in the United States and abroad. Headquartered in Arlington, Va., ELA has more than 750 member companies and a staff of 25 professionals. For more information on ELA, please visit www.ELAOnline.com. ###Press Release########################### Jester,Krueger,Bakke,Hanson Elected At the ELA Convention, it was announced that the first female chairman-elect had been elected, Valerie Hayes Jester, president of Brandywine Capital Associates, a small ticket lessor specializing in the origination and process of transactions in conjunction wiht community bank programs. Cameron W. Krueger, vice president, asset finance with Capegemini, was elected for the Service Provdider Business Council. Laurie A. Bakke, exceutiive vice president and general manager of Irwin Commercial Finance, was elected as a director at large. Eric Hanson, mjanaging director in Laxard's Financial Institution Group, was also elected as a an at-large director. Here is a copy of the pictures and biographies of the candidates that appeared in the ELT Magazine, August, 2005: http://leasingnews.org/PDF/ELA_Lead_2005.pdf -------------------------------------------------------------- Classified Ads---Help Wanted Administration Manager
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-------------------------------------------------------------- R.W.Professional Trial Postponed Again The date for the trial to commence was projected to be October 25,2005. Again postponed for the sixth time. Readers tell Leasing News the key officers will not see any jail time, but will walk. The stall, postponement and deal making have been reportedly the modus operendi as happened at Old Kent, CIT, Sierra Cities, among others. On June 20, 2001, forty federal agents raided the small headquarters of R.W. Professional, a company that specialized in leasing medical equipment and arrested its top officers today for what prosecutors described as nationwide bank frauds that could total $200 million. Lease payoffs were never returned to the bank, severals leases were double-dipped, and others did not exist at all, it is claimed. Prosecutors said that the company, the RW Professional Leasing Corporation, concocted elaborate schemes using up to 100 rented mailboxes as far away as California to send phony checks, sham invoices, bogus leases and other false documents to banks in various states. Based on those documents, the banks lent RW millions of dollars to buy equipment and lease it out, prosecutors said. The schemes included multiple loans from different banks for the same medical equipment and loans for equipment that was never bought or leased, prosecutors said. American Express Business Finance and a group of community banks also have a $30 million law suit pending the outcome of this trial. The actual man behind the scenes was allegedly Barry Drayer, who reportedly had a similar problem with Old Kent Funding, CIT Financial, and Sierra Cities Those arrested were RW's president and co-owner, Rochelle Besser, also known as Rochelle Drayer, 68, of Long Beach; her brother, RW's senior vice president, Barry Drayer, 65, who operated a branch in Wellesley, Mass.; another brother, Roger Drayer, 63, of Long Beach, who holds various titles; and Roger Drayer's daughter, Jennifer Tarantino, also known as Jennifer Drayer, 34, of Oceanside. Others were also indicted for conspiracy in California. It appears that the attorney representing the United States Government has changed, as well as the “public defender” for the parities accused. “Linda A. Lacewell Assigned: 10/24/2005 LEAD ATTORNEY From the court room docket: “10/21/2005 Attorney update in case as to Payaddi Shivashankar, Susan Cottrell, Adam Drayer, Roger Drayer, RW Professional Leasing Services Corp., Rochelle Besser, Barry Drayer, Myrna Katz, Stephen Barker. Attorney Linda A. Lacewell for USA added. Attorney Geoffrey Richard Kaiser terminated. (Mahon, Cinthia) (Entered: 10/24/2005) “10/24/2005 337 Letter from Steve Zissou/Elizabeth Macedonio to Judge Spatt Regarding Reply to government's in limine motion (Zissou, Steve) (Entered: 10/24/2005) “10/25/2005 340 ORDER REQUESTING INTERIM PAYMENT - It is hereby Ordered, that as a result of the lengthy proceeding in this matter, Steve Zissou, Esq. for the defendant BARRY DRAYER is authorized to submit interim vouchers for the representation of his client. SEE Order for further details. (Signed by Judge Arthur D. Spatt on 10/25/05). C/ECF. (Coleman, Laurie) (Entered: 10/27/2005)” Previous stories are available at: --------------------------------------------------------------
EFG is in Business despite Rumors Leasing News received many e-mails that brokers and vendors could not reach the Equipment Leasing Group in Fresno, California, that the telephone was disconnected. A relative small, perhaps even tiny company, on October 20, EFG Leasing Inc. was named to the Inc. 500 a list of the fastest growing companies in the nation for 2005. With the three year revenue increase of 1,450% EFG Leasing Inc. was the #48 fasting growing company. “We had to submit financial statements, they talked to our banker, even our CPA, the whole nine yards, “ president Ken Wheeler explained. The trouble with the telephone seems to come from moving to a digital number that was supposed to happen within a few hours and now has gone into several days due to installation schedules. “New numbers until the T1 line is completed by SBC. We are not able to keep our 888 number and have changed our headings on the UAEL, ELA and Monitor Daily sites. We will be going to 800 numbers first of the week it should be done.” EFG Leasing Inc. Kenneth Wheeler, President --------------------------------------------------------------
Microfinancial Sells Transaction Enabling Systems by Kit Menkin Leasing News has verified that Microfinancial has sold Transaction Enabling Systems, most likely in September, we were told by two sources, including the company itself and an employee in the Microfinancial credit department. Leasing News was told that MicroFinancial president Richard F. Latour was not in, and we were z`referred to James Jackson, who we tried to reach several times, but were told each time he was not available to speak with us. The company has never recovered from Federal Trade Commission action. Under the terms of the settlement with the Federal Trade Commission, Leasecomm will stop collection efforts on all outstanding judgments, totaling $24 million, involving the financing of the software and equipment for processing credit-card transactions. The company also agreed to stop financing those kinds of business opportunities in the future. Leasecomm will also pay a $1 million fine to be split by the states of Massachusetts, Florida, Illinois, Kansas, North Carolina, North Dakota and Texas. The district attorney for Ventura County, Calif. will also receive a portion of that fine. The company has been de-listed and the re-listed to the New York Stock exchange. trying to shake its image, operating under the name Transaction Enabling Systems. A press release from Microfinancial/Leasecom issued on October 26,2005 showed a net loss for year-to-date for September 2005 at $2.5 million, compared to a lost of $14.8 million for the same period last year. Year to date revenues for the nine months ended September 30, decreated 36.7% to $30.4 million compared to $48.0 million for the period in 2004. A copy of the full press release is available at: http://leasingnews.org/PDF/Micro_Third_quarter.PDF Previous stories are available at: -------------------------------------------------------------- ***announcement************************************** Orix to Acquire Houlihan, Lokey Howard & Jukin? Avital Louria Hahn (avital.hahn@sourcemedia.com) Houlihan Lokey Howard & Zukin, the Los Angeles-based middle-market boutique known for its restructuring advice, is in advanced talks to be acquired by Japan's Orix Group, according to a source familiar with the situation. Tokyo-based Orix is a publicly-traded international financial services company whose 23 international locations include Dallas-based Orix USA, a diversified commercial financial services company that has extensive debt and leasing operations that it provides mostly to middle-market companies. Orix USA also finances middle-market LBOs. The price being discussed for Houlihan, which has 700 employees in 10 locations in the US and Europe, couldn't be determined. The source estimated that Houlihan's 350 bankers bring in about $200 million in revenue. "It built an impressive operation," the source said. "It started out with valuations and fairness opinions and grew to restructuring, M&A advice and capital raising." The deal could be announced in the next few weeks, according to the source. Houlihan spokeswoman Marie Ali said the firm does not comment on market rumors. Houlihan and Orix already have a working relationship, partnering on deals in which Orix supplied the financing while Houlihan rendered advice. One recent deal was the September buyout of Wood Structures by Boark Capital Group for an undisclosed sum. The deal included $30 million in financing from Orix, according to press reports, and Houlihan advised the target, according to Thomson Financial. There has been much speculation lately that the restructuring business could boom in 2006 (see IDD cover story, "Flying the Coop," 6/27/05), as some top names in the vulture business have been leaving their employers to start their own firms in anticipation of just that event. Should it transpire, the purchase of Houlihan might look prescient. Established in 1970, Houlihan mainly offers middle-market companies restructuring and M&A advice. It advised the creditor committees in three of the largest bankruptcies in history: WorldCom, Enron and Conseco, a source close to Houlihan noted. It is also advising the owners of Mammoth Mountain on that ski resort's acquisition by Starwood Capital, which was announced earlier this month. According to Thomson, it ranked 12th among US advisers on announced deals valued at less than $500 million for the first nine months of 2005. It focuses on aerospace, defense, basic industries, consumer products, food engineering and construction, financial services, media, technology, telecom and private equity. Orix USA has three main divisions: corporate finance, leasing and real estate. Its array of services includes lending, leasing, mortgages and asset management. Its parent in Tokyo has a market capitalization of about $15 billion. The marriage of Orix's financing capabilities with Houlihan's investment banking expertise is similar to the dynamic behind PNC Financial Services acquisition of M&A boutique Harris Williams in September. Harris Williams lacked financing capabilities, while PNC did not have much in the way of an M&A group. Michael Butler, CEO of Cascadia Capital, a boutique investment bank with offices in Seattle and New York, said that "when you get to a certain size and start rubbing up against the low end of what a CSFB or a Lazard does, you find that you have a need for capital and have to link with somebody with a balance sheet." (sent to us by a reader) *****announcement************************************** --------------------------------------------------------------- Travelers Financial Group Announces Vancouver, BC - Travelers Financial Group and The Canadian Finance and Leasing Association (CFLA) are pleased to announce the appointment of Mr. Jim Case, Chief Executive Officer of Travelers Financial Group, to the Board of the CFLA. The appointment was announced at the CFLA Annual Meeting in Vancouver. “The Canadian Finance & Leasing Association (CFLA) has over $116 billion of financing in place with the Canadian business community,” said Mr. Case. “I look forward to working with colleagues on the Board to expand our presence in Canadian economic life.”
Jim Case “Our industry has been directly responsible for raising Canadian living standards by 2.3% between 1992 and 2002 – that's about 8% of the total increase in living standards over the decade,” Mr. Case added. “We expect to increase our impact even more as we facilitate business investment in new machinery, equipment and vehicles.” Mr. Case began his career with Citibank. He then founded LeaseWest in 1984, which lead to the formation of the Travelers Financial Group in 1986. In his role as CEO for Travelers Financial Group, Mr. Case oversees all operational aspects of the Travelers Group of companies, guiding strategic and tactical initiatives for each of Travelers Leasing Corporation (Auto Finance), Travelers Acceptance Corporation (Consumer Finance), and Travelers Financial Corporation (Equipment Finance). The CFLA represents the asset-based financing, equipment and vehicle leasing industry in Canada. The Association's 250-plus members range from large multinationals to national and smaller regional domestic companies crossing the financial services spectrum from manufacturers' finance companies and independent leasing companies, to banks, insurance companies, and suppliers to the industry. Travelers Financial Group is a leader in the provision of financial solutions and services to organizations, dealers, consumers, vendors and financial intermediaries in Canada. Travelers focuses on providing financial choice and the generation of value through the application of experience, service and innovation. CORPORATE CONTACT: Travelers Financial Group CORPORATE CONTACT: The Canadian Finance and Leasing Association ###Press Release############################ GATX Corporation Reports 2005 Third Quarter Results CHICAGO--(BUSINESS WIRE)----GATX Corporation (NYSE:GMT) today announced net income from continuing operations for the third quarter of $34.3 million or $0.61 per diluted share, compared to $48.2 million or $0.85 per diluted share in the third quarter of 2004. Income from continuing operations for the third quarter 2004 includes $0.48 per diluted share of income from an insurance recovery. Net income from continuing operations for the nine months ending September 30, 2005 was $97.2 million or $1.75 per diluted share, compared to $87.6 million or $1.62 per diluted share in the comparable prior year period. Income from continuing operations for the first nine months of 2004 includes $0.49 per diluted share of income from insurance recoveries. Brian A. Kenney, president and CEO of GATX, stated, "The third quarter reflects continued high asset utilization and favorable lease rate renewal pricing in Rail. "In Air, asset utilization was at 100% and lease rates on certain aircraft types are improving. However, the air market remains challenging and we continue to actively monitor the risk of lessee defaults and asset impairments. In Specialty, the marine joint ventures continue to experience high vessel utilization and charter rates, and remarketing income on both owned and managed assets is contributing significantly to Specialty's performance. "Investment volume from continuing operations totaled $335 million year to date versus $517 million in the comparable 2004 period. The lower 2005 investment volume primarily reflects a significant reduction in Air investments. In addition, the current investment environment in each of our markets is characterized by high asset prices and intense competition for secondary market acquisitions. We remain disciplined in our investment strategy and focused on achievement of attractive long-term returns." Full Press Release at: ###Press Release############################ CFNB Reports 53% Increase in First Quarter Net Earnings IRVINE, Calif.-----California First National Bancorp (NASDAQ:CFNB) ("CalFirst Bancorp") today announced net earnings of $2.4 million for the first quarter ended September 30, 2005, a 53% increase from $1.6 million earned during the first quarter of fiscal 2005. Diluted earnings per share for the first quarter increased 50% to $0.21 per share, compared to $0.14 per share for the first quarter of the prior year. The difference between the 53% increase in net earnings and the 50% increase in diluted earning per share reflects the impact of a larger number of shares outstanding during the period. For the first quarter ended September 30, 2005, total direct finance and interest income increased 17% to $5.3 million, compared to $4.5 million reported for the first quarter of fiscal 2005. This increase was primarily due to a 24% increase in the average investment in capital leases and higher yields earned on cash and investments, offset some by a decline in average yields earned on capital leases. Net direct finance and interest income increased by less than 2% to $4.4 million as a $293,000 increase in interest expense paid on deposits and a provision for lease losses of $402,000 offset the increase in direct finance income. The higher interest expense resulted from higher average rates paid on deposits that were about double the level of the year before. The increased provision for lease losses related to the deterioration in credit quality of certain lessees during the first quarter, including, to some extent, lessees in New Orleans impacted by Hurricane Katrina. Other income increased 40% to $4.4 million, compared to $3.1 million reported for the first quarter of fiscal 2005, due almost entirely to higher gains earned from sales of leased property. The early buyout of four leases contributed to the higher than expected income from sales of leased property during the quarter. As a result of the foregoing, gross profit of $8.8 million for the first quarter of fiscal 2006 increased 18% over $7.5 million reported for the first quarter of the prior year. During the first quarter of fiscal 2006, CalFirst Bancorp's S,G&A expenses decreased by 2% to $4.8 million, compared to $4.9 million reported for the first quarter of fiscal 2005. The small decline is primarily due to containment of costs related to the sales organization. Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated that: "Our first quarter results demonstrate the earnings potential from the development of our lease portfolio. We saw strong growth in both direct finance income and other income earned from the investment in capital leases. While current credit conditions warranted an increase in the allowance for lease losses, we are comfortable with the risk profile of our consolidated portfolios. Leases booked during the quarter of $38.6 million were 31% ahead of the volume booked during the first quarter of the fiscal 2005. At September 30, 2005, property acquired for transactions in process of $42.2 million was up 24% from June 30, 2005, and compared to $44.4 million at September 30, 2004. Business development has remained strong and the volume of new lease originations approved during the quarter was up 25% from the year before. As a result, despite the higher level of bookings, the backlog of lease commitments at the end of the first quarter of fiscal 2006 is about the same level as a year earlier. The outlook for the balance of the year continues to be good, although we do not anticipate a continuation of the rate of growth in earnings shown during the first quarter." California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, California. California First Leasing Corporation leases and finances computer networks and other high technology assets through a centralized marketing program designed to offer cost-effective leasing alternatives. California First National Bank is an FDIC-insured national bank that gathers deposits using telephone, the Internet, and direct mail from a centralized location, and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third parties. More information available at: http://www.calfirstbancorp.com/invinfo.htm#1 ###Press Release############################ Western Alliance Reports Net Income of $7.7 Million or LAS VEGAS------Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the third quarter of 2005. Third Quarter 2005 Highlights: -- Net income of $7.7 million, an increase of 18.3% from the second quarter of 2005 and 39.6% from the third quarter of 2004 -- Diluted earnings per share of $0.31, compared to $0.31 per share in the third quarter of 2004 -- Revenues of $30.6 million, an increase of 12.0% from the second quarter of 2005 and 41.4% from the third quarter of 2004 -- Loans of $1.62 billion at Sept. 30, 2005, an increase of 11.3% from June 30, 2005 and 49.0% from Sept. 30, 2004 -- Deposits of $2.35 billion at Sept. 30, 2005, an increase of 7.2% from June 30, 2005 and 38.9% from Sept. 30, 2004 Financial Performance Western Alliance Bancorporation reported diluted earnings per share of $0.31 for the third quarter of 2005 compared to $0.31 per share for the third quarter of 2004. Net income was $7.7 million compared to $5.5 million for the same period last year. We closed our initial public offering of 4.2 million shares on July 6, 2005, which increased our average shares outstanding. Loans grew $164 million to $1.62 billion at Sept. 30, 2005 from June 30, 2005 and $532 million from Sept. 30, 2004. Deposits grew $158 million to $2.35 billion from June 30, 2005 and $658 million from Sept. 30, 2004. Robert Sarver, chairman and chief executive officer, said, "During the third quarter, Western Alliance Bancorporation continued progress on all of its primary objectives by achieving more than $100 million growth in loans and deposits and record net income performance." Sarver continued, "We opened two new offices, hired six more experienced relationship managers, and maintained exceptional asset quality. Consistent with our asset sensitive profile our interest margin continued to expand during the third quarter, of 2005, as it has every quarter since the FOMC began raising rates last year. "Looking ahead, we are continuing to execute on our growth and expansion plan with four new offices presently under construction, including our Golden Triangle office in San Diego which we expect to open on Nov. 2." Western Alliance Bancorporation is the parent company of BankWest of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Miller/Russell & Associates, and Premier Trust. These dynamic companies provide a broad array of banking, leasing, trust, investment and mortgage services to clients in Nevada, Arizona and California. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Full Press Release at: ###Press Release############################ IKON Announces Fourth Quarter and Fiscal Year 2005 Results; MALVERN, Pa.------IKON Office Solutions (NYSE:IKN), the world's largest independent channel for document management systems and services, today reported results for the fourth quarter and fiscal year ended September 30, 2005. Net income from continuing operations for the fourth quarter was $20 million, or $0.14 per diluted share, including $0.02 for charges incurred during the quarter. Excluding these charges, fourth quarter earnings per diluted share from continuing operations were $0.16. Total revenue for the fourth quarter of fiscal year 2005 was $1.1 billion, compared to $1.14 billion for the fourth quarter of fiscal year 2004, a decline of 3%. Targeted revenue, which represents 98% of total revenue and excludes revenue from North American lease financing and de-emphasized technology hardware businesses, declined 1% compared to the prior year. When further adjusted for the sale of the Company's operating subsidiaries in France and Mexico, targeted revenue was flat year to year. Foreign currency translation had a positive impact on total revenue of 0.3%. "Our performance during the quarter confirmed that we are headed in the right direction," said Matthew J. Espe, IKON's Chairman and Chief Executive Officer. "Our momentum in both the Mid-Market and in National Accounts continued to deliver positive results. We increased placements of new digital black and white office equipment by 7%. Color equipment revenue grew 11% and color copy volume increased 48% as compared to the fourth quarter of fiscal 2004. In addition, this was our sixth consecutive quarter of record performance for placements of the IKON CPP(TM) 500, with 96% growth year over year from this important 50 page per minute production color multifunction system. These are all positive trends that we expect to continue as we begin our new fiscal year." For the fourth quarter of fiscal year 2005, the Company reported 6% revenue growth from its North American on-site Managed Services business, and 12% growth in Professional Services from consulting, network connectivity services, document strategy assessments and software solutions. Full Press Release at: ###Press Release############################
News Briefs---- 30-year mortgage rates hit 6.15%, highest in 15 months Red Cross Borrowing Funds for Storm Aid Hurricane-related job losses top the half-million mark while new home prices drop Big Rise in Profit Places Oil Giants on the Defensive Microsoft Says Profit Rose 24% ---Internet.com labels the story: Microsoft Misses Target Findings identify likely origins of prostate cancer ---------------------------------------------------------------
You May Have Missed Andy Rooney gets Even--Speakers' bureau booker gets 5 years; http://www.usatoday.com/money/2005-10-27-scandal-usat_x.htm ---------------------------------------------------------------
Sports Briefs---- Saints Could End Up In L.A. ----------------------------------------------------------------
California News Briefs--- Poll: Gov. Schwarzenegger's Measures Lag Schwarzenegger returns to TV for ad promoting his initiatives ----------------------------------------------------------------
“Gimme that Wine” Huge crush a windfall for tank, barrel makers Most grapes already harvested as rainy season gets off to a late start Nazi Raccoons destroy German vineyards Are you Overwhelmed, or a Satisfied sipper? Categories of Wine Drinkers King Tut drank red wine, researcher says ----------------------------------------------------------------
Today's Two Top Event in History 1886- Frederic Auguste Barthold's famous sculpture, the statue of Liberty Enlightening the World, on Bedloe's Island in New York Harbor was dedicated. A sonnet by Emma Lazarus, inside the pedestal of the statue, contains the words: "Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore. Send these, the homeless, tempest-tost to me, I lift my lamp beside the golden door." Here is a little known fact, when the Statue of Liberty was dedicated in New York Harbor, women were barred from the ceremony because it would be too crowded and rough for the ladies, the city declared, but a group of women chartered a boat and circled the island singing and shouting women's rights messages 1962-Withdrawal of Soviet missiles, under UN inspection, and a halt to construction of bases in Cuba, was agreed to by Premier Krushchev. Pres. Kennedy agreed to lift the trade and weapons ban when the UN had acted, and pledged that the U.S. would not invade Cuba. ----------------------------------------------------------------
This Day in American History 1492--- Christopher Columbus discovers Cuba. He and his men take many slaves back to Spain, their main bounty in the mission. World Series Champions This Date 1981 Los Angeles Dodgers ----------------------------------------------------------------
Baseball Poem Final Play Donna J. Gelagotis Lee the pitcher winding up--- from Line Drive, 100 Contemporary Baseball Poems Congratulations to the Chicago White Sox |
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