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Wednesday,
July 28,2004
Headlines---
Classified
Ads---Collector/Controller
Archives,
July 28, 2003—$34,950 To Get Into Leasing
Oh,
No, Mr. Bill!!! Gary Saulter
Goes to Court
Lessors
Network free Attendance Unemployed Industry Pro's
Repossessors
Seized More Trucks in Q2
ORIX
Excited Andrew A. Beclay VP Sales
Marlin
Record Quarterly Profits; Total Assets Exceed $500M
Consumer
Auto Demand Bullish, Forecasts New US Study
Venture
Capital Hits Two-Year High/$5.6 Billion Invested
NVCA
Full Report Q2 04 Venture Capital Investment
Humberto
D. Olavarria Joins Alta Team
Tomorrow The
List---Up-dated
######## surrounding the article denotes it is a “press
release”
-------------------------------------------------------------------------------
|
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Alternatively
visit |
Classified
Ads---Collector/Controller
Collector:
Boston, MA. Challenging position where my skills, professional experience,
organization, leadership, strategic thinking, creativity, energy, passion,
competitive nature will enable me to define opportunities and personal
development.
Email: bernd.janet@verizon.net
Collector:
Jacksonville, East Brunswick, FL.
13 years experience with collection, recovery, re-marketing and legal on commercial loans and leases. Expertise with distressed portfolios, Six Sigma trained. Willing to relocate.
Email: RichardB12364@aol.com
Collector: Joplin, Mo. Will do car repossessions, willing to go about anywhere. Have three years exp. thanks.
Email: derekrgreen@yahoo.com
Collector: West Hartford, CT. Credit/ Collections /Rental Management in leasing & construction fields. Looking for stable company that will appreciate my 20+ years of experience.
Email: losterastringban@aol.com
Controller:
Seattle, WA
CPA w/ 15 years management exp. as CFO/ Controller/5 yrs w/ PriceWaterhouse Coopers. Extensive exp providing accounting/ tax guidance for the equipment lease industry. Willing to relocate.
Email: bltushin@hotmail.com
Controller:
Southeastern, MI.
Controller &
Management experience w/ equip lessors &broker. MBA, CPA w/ extensive
accounting, management, securitization experience with public and private
companies. Willing to relocate.
Email: Leasebusiness@aol.com
full list of all classified ads at: http://64.125.68.90/LeasingNews/JobPostings.htm
-------------------------------------------------------------------------------
from
our Archives, July 28, 2003—
Pictures
from the Past---1997---Bob Baker, CLP
Wildwood Financial---$34,950
To Get Into Leasing
Recently Leasing
News has received many inquiries on becoming a leasing broker, or
starting a leasing
company. Viewers to our website realize that they
can contact “Kit
Menkin Live” or ask questions.
There are companies and individuals who provide such services to
start a leasing company or become a “lease salesman.” One that we recommend
appears to be the most expensive: $34,950 for training.* ( As a side
note, we recommend to all to join a leasing association, and if they
want to be serious about their new occupation, to become a Certified
Leasing Professional.)
There are three professional
sales trainers who serve on the Leasing News
Advisory Board. In
addition to Bob Baker, CLP, the other two are Phil Dushay, Global Leasing,
who is a “super broker,” plus offers a sales program for $14,995** training
session, and Bob Teichman, CLP, Teichman Financial Training, who not
only conducts workshops, gives training sessions, but acts as a consultant
in the formation of leasing companies.. We have several readers who
are also engaged in similar services such as Jeffrey Taylor, who is
not only a sales trainer, conductor of workshops, USA and international,
but is a published author.
One of the reasons
we often recommend Bob is that he is active in leasing associations,
and for a number of years, has been the “winner” of many leasing association
membership contests as he has students join leasing associations.
### Press Release###############################
In 1995, after being
in the finance and leasing industry for over 30 years, he formed the
Wildwood Financial Group, Ltd. The concept of Wildwood was created by
accident. Bob was a frequent speaker conducting seminars and workshops
at various leasing association conferences. After a Bob’s sessions at
these workshops, several companies approached him to do in-house training.
It quickly became apparent that a decision needed to be made to run
his leasing company or concentrate on training, so he made the decision
to form Wildwood and concentrate 100% of his efforts in the training
industry. Bob has done training for the majority of the major leasing
companies in the country, as well as conducted training for hundreds
of leasing professionals through his continuing workshops and seminars
at conferences. Bob was the 33rd person to receive the prestigious CLP
(Certified Lease Professional) certification and shortly after, he began
Wildwood, and he expanded training to include preparation for the CLP
examination.
Bob had a very close
relationship with Bill Granieri, who was considered by many, to be the
foremost trainer in the leasing industry. Bob sought Bills advice in
the expansion of his business.
Bob then made the
decision to create a “Business Opportunity” for individuals who wished
to enter the equipment leasing industry. He began monthly training in
the form of a three-day school in St. Louis where Wildwood is based.
The Wildwood business opportunity consists of three days of intensive
training, which includes the cost of the hotel rooms and meals, etc.
as well as all of the essential tools i.e. books, calculators, software,
training manuals etc. Another key to Wildwoods success is that graduates
of his program were able to have immediate access to several of the
primary funding sources that agreed to waive their time in business
requirements. This allowed them to avoid the normal issue of super brokers
that a new person entering the leasing industry would encounter. The
last component, which Bob considers the most important, is the support
that he and his staff supply to his graduates. For 6 months, the support
is very pro-active, and Bob or a member of his staff contacts each graduate
at least once a week. Support after the 6 months continues at no additional
charge whenever a graduate needs guidance or assistance. Wildwood also
conducts training for banks, and insurance companies, as well as giving
“expert” testimony in litigation related to equipment leasing.
Even though Bob will
not disclose the exact number of individuals he has trained, he did
state that several hundred have completed the Wildwood training. Bob,
without question, has brought more new members to the leasing associations
than any other individual or company in the industry. Wildwood wins
their membership contest virtually every year.
During his career,
Bob Baker has served as a Regional Chair several times for UAEL, has
served four years on the Board of Directors for United Association of
Equipment Leasing, and is currently serving on the 2002 Board. Bob was
also Director of Education for the National Association of Equipment
Leaisng Brokers for several years. He has produced a full series of
training tapes and a workbook for NAELB, and has served on the Advisory
Boards for Colonial Pacific Leasing, Business Credit Leasing (BCL),
Denrich Leasing, and The Manifest Group. Bob shared with me, that out
of all the awards he has received, the one that he considers the most
precious, was being the first recipient awarded the “Bill Granieri Top
Gun Memorial Award” in 1998, which was established by the NAELB shortly
after Bills death from cancer.
Many of the individuals
that Bob has trained at Wildwood have formed extremely successful leasing
companies, some have volunteered to be Regional Chairs for the Leasing
Associations, and several have earned their CLP certification. Many
consider the Wildwood Financial Group, Ltd., to be considered the premier
lease training company in the United States today.
If you are interested
in learning more about Wildwood, you can visit their website at www.wildwoodfinancial.com,
or you can certainly call Bob at Wildwood Financial Group, Ltd. in St.
Louis, Missouri at (800)-373-3581 or contact him at baker@wildwoodfinancial.com.
### Press Release
#############################
-------------------------------------------------------------------------------------
Oh,
No, Mr. Bill!!! Gary Saulter Goes to Court
Chase
Industries “leasing exec.” Gary Saulter sent out this
### Press Release
##############################
Ohio
Lawyer Clogging Court System With Frivolous Lawsuits Using “Do Not Call”
Act
(Cuyahoga County,
OH)- Joseph Compoli, Jr., L.P.A.,
of Cuyahoga County, Ohio has filed complaints against multiple businesses
using the do not fax portion of the TCPA Act of 1991- also known as
the “Do Not Call” Act. The act
sets a $500 fine for each unsolicited fax and allows for tripling of
the fine for “willful violation”. This
portion of the act was intended to protect consumers from “Blast Fax”
marketing companies that use “War Dialers” to send millions of faxes
per day…as many as 800 to a single fax number, thus wasting resources.
Some lawyers have
used this legislation to file suit against businesses who have sent
as few as 1 or 2 faxes. In some
cases, this even includes faxes sent to another individual and mistakenly
received by the fax machine named in the suit.
One contact at the F.C.C., the government entity which oversees
and enforces the T.C.P.A., said that though they had heard of Attorneys
“ambulance chasing” by searching for unsolicited faxes, the act was
intended to protect consumers from real damage in the form of lost time
and resources. And also that
a simple telephone call, rather than a court case, is often the place
to start.
Mr. Compoli Jr. sends
small businesses a very threatening letter which quotes select portions
of the T.C.P.A. and cites huge fines (in the Millions of Dollars) levied
by the F.C.C. against Mega-Corporate violators.
He then offers to settle for the maximum damage amount allowed. His next step is sending 30 or so pages of
intimidating questions to be answered for the class action suit he is
filing against the business. A
small business is forced to settle or hire a lawyer to defend itself. In one recent case, Mr. Compoli sought $70,000
in attorneys’ fees, a request that the court did not find him entitled
to.
Mr. Gary Saulter,
President of Chase Industries, Inc., one of the small businesses being
taken to court by Mr. Compoli, said “I am amazed that this kind of thing
is allowed to happen in our justice system.
We make every attempt to conform to the law in all aspects of
our business, and face the possibility of severe financial penalties
for unintentionally causing miniscule damage—about $0.03 in resources.
I’m sure the people of
Cuyahoga County want
their courts to have time to concentrate on important problems….not
to have them used to line lawyer’s pockets”.
Chase Industries
is a leasing company headquartered in Grand Rapids, MI, which specializes
in medical equipment leasing.
Chase Industries
109 Ottawa Ave
Grand Rapids, MI 49503
Phone: 616-459-6800
Gary Saulter, President
### Press Release
##############################
June
21, 2004
“Well, I finally had my day in court on Monday, June 21, the longest
day of the year. This is along
story and it goes much faster and much better in person but I wanted
to get it out while I still remember it.
It was truly an experience I will never forget.
My case was based on Chase Industries faxing some marketing materials
to doctors in Ohio in the fall of 2002.
We market to doctors. Sometimes
we call, sometimes we fax. But
their was a new law that said you had to have a relationship with a
company before you fax them marketing materials.
He were obviously not aware of this new law.
The plaintiffs attorney, we’ll call him "Mr. X" finds
these doctors and other business to save all their junk faxes and he
stops by on occasion and scoops up any fax that looks like a solicitation. Then he sends out mass letters that cite the
TCP law, million dollar class action suits, huge penalties and fines
and offers to 'settle' for $1500 per fax (the maximum allowed by law)
- all in the same letter. He
had us for 5 faxes with 3 doctors. This would represent $7500 if he
won everything, the maximum penalty the law could enforce.
I was not going to give in to what I considered legal extortion
of a bad law. This law was written for the blast faxes that
advertise travel trips, stocks, etc.
“Got up very early and drove to sunny Cleveland and met with my attorney
at 9 am to start the trial. This guy is a real boy scout. Clean cut - good looking, in his late 30's
and very polished - not that greased back lawyer look. A very nice guy and well prepared for the trial.
Naturally the first thing they do is to determine whether we can settle.
"Mr. X" was there and pretty mad that he hadn’t gotten
his money before this. This morning he was willing to settle for $2,000.
My number was $250. We
went back and forth and I ended up at $750, he was at $1,000 and at
a deadlock. At this point, I was mad it had come this far and wanted
my 'day in court', so that's what we did. Start the Trial.
“We were soon picking out a jury!!!
All very interesting. It
became apparent very soon that Mr. X had NEVER tried a case!!! He was appalling! To go into detail it would take pages but here are a few of his
antics. First he resembled Colombo, rumpled suit with odd things bulging
in his pockets, visibly sweating and nervously shifting and tapping
his feet. Picking the jury requires talking to each juror individually. He just asked them to raise their hands if they didn't like soliciting
phone calls, etc. My attorney
was flawless, speaking to every juror by name and asking each one a
series of questions. Eventually
we had a jury.
“Instead of an opening statement, Mr. X started TRYING THE CASE to the
jury! Showing big 3 foot posters
of my fax, and explaining what we did and how many faxes the doctor
receives...............blah, blah, blah……
The judge had to intervene and tell him this was going to be 'later
in the trial' and this was the part where the states what the evidence
will show.........Everyone was now very interested in this guy. Just
after opening statements finished.....his phone rang in open court!! The judge was not happy. Then he brings me up to the witness stand and
shows me these 3 foot blow ups of my faxes and asks whether they are
mine. I answered yes twice. That my rep had called this doctor in the summer
of 2002 and obviously got her fax numbers. My lawyer objected to a few things and that was it. Mr X looked
pretty angry and I was done.
“The doctor & plaintiff was a Philippine doctor that barely spoke
English and has been practicing in the states since 1974. All she really knew was Mr. X stops by and
picks up the faxes that she’s collected.
They have a 5 year relationship where he 'helps' her clients
sue other doctors and insurance companies.
She has received over 1500 faxes in the past 3 years and never
called one to request it be stopped.
It looks like she also put her name in a national database with
her fax number (she has two fax machines) but she does not even an own
an EKG in her office. Naturally to receive more faxes, to sue more
people, to 'settle' on more money.
The jury was starting to see the big picture.
“Every time my attorney asked the doctor a question, Mr. X would stand
up and object! And every time
the judge would say overruled - sometime before he finished his objection. And conversely when my attorney objected he
ruled sustained. The doctor
is up on the stand and very confused at best.
You could barely understand her and she rarely answered a question
but went on and on how her patients were suffering greatly because she
didn’t have any paper in the fax – it had all run out.
Quite distressing indeed.
Then the doctor's phone rang while she was on the stand and started
playing a long melody! Mr. X
couldn't turn it off so he had to bring it up to her on the stand to
turn it off, which she couldn’t so we all had to wait till it played
out! Now it’s getting downright comical! I’m thinking of a Lucy episode.
“Later when Mr. X would get agitated he would forget to voice an objection,
but would stand up and walk up to the bench where the judge would look
at him incredulously saying 'what ARE you doing?’
“When the judge asked him where his other plaintiff was (the other doctor)
he responded that 'he was a doctor and doing very important doctor things'.
The judge didn't buy it and asked him to Call his witness!
And then, and I'm not making this up, he started calling his
doctor on his cell phone in open court!!
Everybody lost it at this point.
Open laughter from the jury, the gallery, and the even court
stenographer. I could hear from the jury “He’s calling him on his PHONE”!!
By this time the jury and gallery are openingly laughing at him and
the judge is beside himself. He
had brought both attorneys to side bar about 6 times throughout the
trial and was now rolling his eyes and saying, "I have never seen
anything like this"
“All I could think of is having a hidden camera. I could have sold the
tape to every law school in the land!!
“The doctor is still on the stand and the judge again intervened to
tell Mr. X that this was HIS witness and he didn’t have to lead the
witness. HELLO?? Then, while he is addressing the court and
his doctor witness on the stand he actually walked out of the court
room to talk to someone in the hall!!
The judge now has to yell across the courtroom
"WHERE ARE YOU GOING” and then within everyone's hearing
"This is UNBELIEVABLE”
“The judge realized that the best thing was to end this as soon as possible
so we dragged on till 1:00 and he had to call for lunch. We went to lunch and went over some notes and
strategy. You never know how
to read juries because the instructions that the judge gives them can
change this very quickly, so despite the ‘show’ we were still cautious.
“When we returned from lunch their was Mr. X but no doctor. We asked and he said he sent her home. He didn’t think we needed her anymore!! HE WHAT??
The jury came in and when the judge found this out he lost it!
He sent the jury back to their room and asked where she was and why
did she leave. Then Mr. X began telling the court that she
had a ‘medical emergency’, yeah, big emergency and she had to go back
to her office. Nobody, and I
mean nobody believed him. Least
of all the judge. He was not
a happy camper. This was a doctor that didn’t have any
equipment in her office. Maybe
she was going to save someone with her stethoscope!
She was now 45 minutes away from the courthouse.
“Again, Mr. X picks up his trusty cell phone and calls her to come back.
At this point, my attorney who by the way is Michael Polito of
Polito and Russo of Cleveland told the judge that we did want to ask
her a few key questions but were going to rest afterwards.
He suggested we go outside to discuss whether we wanted her back.
We did and again you never know what a jury will see, so we asked
her back. In the mean time, the judge brought both attorneys
to his chambers. Michael came
out in a few minutes and said they wanted to settle for the $750. I politely told him that that was good this
morning but the amount now is $500.
He did look at me like I had three heads, but hey, I’ve been
paying for an attorney all day! He
went back in and got the $500 with them paying all court costs for ALL
cases and the libel suit Mr. X was threatening to start.
He screamed like a stuck pig about the court costs which might
be $700-$800 so I said I would pay $100 of it.
“That was it. All 3 cases and
the potential libel suit dismissed with prejudice. My first trial and I’m guessing the best one I will ever have the
pleasure of being a defendant in.”
Gary Saulter
Chase Industries, Inc.
800-968-5000
Fax: 616-459-6822
-----------------------------------------------------------------------------------------
|
Your
One stop solution for training and reference material for the
Leasing Professional
www.theleasinglibrary.com |
*******announcement ************************************
ATLANTA,
GA - - At a time of unprecedented
consolidation of bank, independent and captive equipment lessors, many
industry professionals unfortunately find themselves unemployed. The
Lessors Network challenges all equipment leasing event sponsors to help,
setting aside a small number of free attendee registrations for unemployed
leasing professionals.
John
O. Semon, Lessors Network CEO, explains, "Since we began hosting
equipment leasing events six years ago, we have provided unadvertised
complimentary attendee registration to our unemployed colleagues. With
so many of our friends now looking for employment, it seems timely for
all event sponsors to take a more aggressive stance."
The
Lessors Network has therefore added a limited number of (complimentary)
Attendee Registrations to the upcoming National Lease Funding Source
Showcase, for confirmed unemployed leasing professionals, available
on a first come basis. Click Here For Details
ABOUT
THE LESSORS NETWORK:
The
Lessors Network is a sales & marketing network facilitating new
business development opportunities within the corporate and municipal
equipment leasing markets. Networking showcases are traditionally held
from the Ritz-Carlton in Atlanta each spring and fall. Website programs
and services provide free access to news, events and important resources
facilitating funding/syndication, technology and outsourcing services
exclusive to the equipment leasing & finance markets.
Additional
information can be viewed at www.lessors.com
Contact:
John
O. Semon
****announcement
***********************************
###
Press Release #################################
Repossessors Seized More Trucks in Q2
ROSLYN HEIGHTS, NY.,
—Nassau Asset Management’s NasTrac Quarterly Index (NQI) has identified
a dramatic increase in truck repossessions since first quarter.
Ed Castagna, senior executive vice president of Nassau,
said the figures reflect recent turbulence within the industry despite an overall
drop in truck repossessions over the past two years. When viewed on
an annual basis only, for example, there were actually 47 percent fewer
trucks repossessed in the second quarter (Q2) of 2004 than in Q2 2003.
However, when comparing Q2 2004 to the first quarter of this year, truck
repossessions climbed 33
percent.
Castagna says his company’s NQI also is detecting changes in the volume of repossessions involving other equipment. As a result, Nassau plans to supplement its quarterly index with faster reports called Emerging Trends Alerts. Charts and press releases summarizing both types of reports are available free of charge to the public at
http://www.nasset.com/newsroom/newsroom_nqi.htm.
“Finance companies and industry analysts
can also contract with Nassau to dig deeper into the numbers, determining
the root causes for trends and researching specific equipment types,”
Castagna adds. “Companies can use their private reports created by Nassau
to help mitigate risk in portfolios and/or provide useful economic indicators
to their own clients.”
Nassau
has tracked equipment trends for several decades as a function of its
nationwide remarketing operation, which recaptures and resells all types
of assets. Recognizing the value its data holds for the equipment leasing
and finance industry and economic analysts, the company in 2003 launched
NQI, which reports on equipment types generating the greatest volume
of repossessions.
Top Repossessions in Q2 2004 vs. Q2 2003
The current NQI reports
on trucks/trailers, printing presses, information technology, medical
devices and construction equipment.
These were the top five repossessed capital assets in Q2 2004,
according to Nassau’s internal records on liquidations.
Castagna says the Q2 data,
when compared with the same quarter
a year ago, shows there was a 47 percent decrease in repossessions of
trucks, 46 percent drop in repossessions of medical devices and 30 percent
slide in repossessions of construction equipment. At the same time,
repossessions of printing presses jumped by 117 percent and those of
information technology rose by 22 percent.
Castagna says Nassau plans to monitor both of these sectors closely
to determine whether there are economic reasons for the increase, or
whether they simply reflect Nassau’s expanding base of clients that
finance these types of equipment.
Machine tools did not make
NQI’s Top 5 as they did in Q1, another indicator that this sector is
brightening. The American Machine Tool Distributors'
Association recently reported that year-to-date U.S. machine tool consumption
through May 2004 was $1,041.4 million, up 46.1% compared to 2003.
Readers should keep in mind that the assets NQI covers
may change from quarter to quarter since Nassau plans to feature only
the largest asset groups in its multimillion dollar portfolio. Additionally,
results must be viewed over several quarters to establish long-term
trends since all industries experience cyclical changes.
Nassau Asset Management of Roslyn Heights, NY, has
been providing full-service asset management, including asset recovery,
collections, remarketing, full plant liquidations, and appraisals for
more than 25 years to the equipment leasing and finance industry. For
more information, please visit www.nasset.com or call 1-800-4.NASSAU.
------------------------------------------------------------------
### Press Release ##########################
ORIX Announces The Addition of Andrew A. Beclay As Vice President
of Sales For General Equipment Segment
Atlanta --Equipment Finance Group (EFG) at ORIX Financial
Services, Inc. starts their 2005 fiscal year out on the right foot by
hiring Andrew Beclay as Vice President - Sales Representative for their
General Equipment Segment (GES). Andrew joins ORIX after nine successful
years with General Electric Capital Corporation. Prior to GE, Andrew
was with Society Equipment Leasing Company.
Under the leadership of Jay Cannon, Senior Vice President
and National Sales Manager, Andrew’s skills will contribute to the development
and expansion of GES in the Ohio, Pennsylvania, Kentucky and West Virginia
territory. The GES is a premier provider of lease and loan products
to middle market companies in the U.S. general manufacturing and production
industries that have revenues up to $200 million. From food processing
to packaging, from printing to manufacturing, Andrew has joined GES’s
"A team" of professionals, able to serve the exacting tax,
financial accounting and cash flow needs of our customers.
EFG Group President Bill Fite states, “Andy brings a wealth
of balanced talent and proven experience to our GES sales team and we
are honored to have him join our ranks”.
“His years of business, calling directly into our core GES markets
will serve him well in becoming a material contributor to our team”,
adds Fite.
Andrew has his MBA in Finance from the University of Cincinnati.
He received his BS in Economics and Finance from Miami University.
About OFS
ORIX Financial Services is an indirect wholly owned operating
subsidiary of ORIX Corporation, a leading diversified financial services
organization with assets in excess of $49 billion. ORIX Corporation
is based in Tokyo, Japan with operations in 23 global markets. ORIX
is a publicly traded company listed on the Tokyo, Osaka, Nagoya and
New York Stock Exchanges (Ticker: IX).
www.orixfin.com
CONTACT:
Kim Marie Gray
ORIX Financial Services, Inc.
Phone Number: 770-970-6161
Fax Number: 770-970-6661
E-mail: kgray@orixfin.com
### Press Release ###########################
|
|
Marlin Business Services Corp. Reports Record Quarterly Profits;
Total Assets Exceed $500 Million
MOUNT LAUREL, N.J.--(BUSINESS WIRE)--07/27/2004--Marlin Business
Services Corp. (NASDAQ:MRLN) today reported net income of $3.5 million,
or $0.30 per diluted share, for the quarter ended June 30, 2004 compared
with a net loss attributable to common shareholders of $(36,000) or
$(0.02) per diluted share in the same quarter of 2003. For the six months
ended June 30, 2004 net income was $6.7 million, or $0.58 per diluted
share compared with a net loss attributable to common shareholders of
$(235,000) or $(0.14) per diluted share for the six months ended June
30, 2003. Total assets were $502 million at June 30, 2004.
"We continue
to experience strong operating performance across all aspects of our
business," said Dan Dyer, Chairman and CEO of the company. "We
delivered solid revenue and earnings results on record new lease origination
volume for the quarter. With the closing of our 2004 securitization
transaction on July 22, we gained access to 'AAA' funding and our borrowing
efficiency improved significantly. This transaction is a testament to
our strong balance sheet and solid asset quality results."
Marlin completed
its initial public offering of common stock (IPO) on November 12, 2003.
Certain non-recurring expenses and preferred dividends were recorded
in 2003 and in prior periods which reduced net income attributable to
common shareholders. A reconciliation between net income attributable
to common shareholders on a GAAP basis and pro forma net income for
2003 is provided in a table immediately following the 2003 Supplemental
Quarterly Data included with this release. These charges ended in conjunction
with the November IPO and associated corporate reorganization and therefore
will not affect future reporting periods beginning in 2004. As a result,
we believe the pro forma numbers for 2003 present a clearer and more
comparable basis to review the company's fundamental financial performance.
On a pro forma basis, net income for the three and six-month periods
ended June 30, 2003 was $2.3 million and $4.3 million, respectively.
Highlights for
the quarter ended June 30, 2004 include:
-- For the quarter ended June 30, 2004, net income
was $3.5
million, a 52%
increase over the pro forma net income of $2.3
million for the quarter ended June 30, 2003.
-- Diluted earnings per share were $0.30 per diluted
share in the second quarter of 2004, compared to $0.29 per diluted share
for pro forma earnings in the quarter ended June 30, 2003.
Growth in EPS was achieved despite significant growth in
outstanding shares following our November 2003 IPO.
-- Annualized Returns on average equity and assets
were 17.43% and 2.89%, respectively,
for the second quarter ended June 30, 2004. For the first six months of 2004, annualized returns on average
equity and assets were 16.87% and 2.75%, respectively.
Asset Origination
-- Based on initial equipment cost, lease production
was $70.5
million in
the second quarter of 2004 compared with $66.1
million in the first quarter of 2004 and $59.3 million in
the
second quarter of
2003. Net investment in leases grew to
$462.0 million at June 30, 2004, an increase of 23.8% from
$372.9 million at June 30, 2003.
-- Our end user customer base grew to more than
72,000 at June 30, 2004 compared with 66,000 as of year-end 2003.
Credit Quality
-- Net charge-offs totaled $2.1 million for both
the first and
second
quarters of 2004. The provision for credit losses was
$2.4 million for the second quarter of 2004 and $2.3 million
for the first quarter of 2004.
-- On an annualized basis, net charge-offs were
1.93% of average net investment in leases during the second quarter
of 2004 compared to 1.98% for
the first quarter of 2004.
-- As of June 30, 2004, 0.66% of our total lease
portfolio was 60 or more days
delinquent, unchanged from 0.66% as of March 31, 2004.
-- Allowance for credit losses was $5.6 million
as of June 30,
2004,
an approximate $308,000 increase over the prior quarter. Allowance for credit losses as a percentage of average net nvestment in leases was 1.23% at June 30, 2004
and 1.22% at March 31, 2004.
-- In conjunction with this release, static pool
loss statistics
have
been updated as supplemental information on the investor relations section
of our website at www.marlincorp.com. Our last three years of production
have been trending favorablyyear over year and are tracking below our
expected loss curve.
Net Interest and
Fee Margin and Cost of Funds
-- Based on average net investment in leases,
the net interest and fee margin was a record 12.59% for the quarter
ended June 0, 2004, an improvement of 72 basis points compared to 11.87% for the first quarter ended March 31, 2004.
The increase is attributed primarily to stronger fee income and lower
borrowing costs.
-- The weighted average implicit yield on new
business was 14.07% for the quarter ended June 30, 2004 compared to
13.75% for the first quarter ended March 31, 2004.
-- Fee income as a percentage of average net investment
in leases was 3.57% for the quarter ended June 30, 2004 compared to
3.32% for the quarter ended March 31, 2004. All of the major fee categories
trended higher in the quarter consistent with the growth in the lease
portfolio.
-- The average cost of funds as a percentage of
average net
investment
in leases was 3.28% for the quarter ended June 30,
2004. This was a 46 basis point reduction from the 3.74%
for
the quarter ended
March 31, 2004. The average cost of funds
blended lower in the quarter principally due to increased
utilization of warehouse credit facilities
as a percentage of
total
borrowings.
-- Interest expense as a percentage of weighted
average
borrowings was
3.63% for the second quarter ended June 30,
2004 compared to 3.98% for the first quarter of 2004. The
average balance for our warehouse facilities
was $144.6
million for
the quarter ended June 30, 2004 compared to $93.3
million for the first quarter ended March 31, 2004. The
average coupon cost for our warehouse facilities was 2.13% for
the quarter ended June 30, 2004 compared to 2.09% for the first quarter
ended March 31, 2004.
Operating Expenses
-- Salaries and benefits expense was $3.4 million
in the second quarter of 2004
compared to $3.2 million in the first quarter of 2004. Employee headcount
increased by 16 to 264 at June 30,
2004 from 248 at March 31, 2004. The number of sales reps increased to 98 at June 30, 2004 from 90 at March 31, 2004.
Salaries and benefits expense was 3.1% as
an annualized percentage of
average net investment in leases for both theirst and second quarter
of 2004.
-- Other general and administrative expenses were
$2.7 million for the second quarter of 2004, an increase of $400,000
from $2.3 million for the first quarter of 2004. Other general and administrative expenses as an annualized percentage
of average net investment in
leases were 2.48% for the second quarter of
2004, an increase of 30 basis points from 2.18% in the first quarter of 2004. The principal increases in
general and administrative expenses related to increased franchise tax accruals of $141,000, increased marketing
related investments of
$107,000 and increased audit expense accruals of $54,000 related principally to Sarbanes-Oxley
compliance.
Insurance and other
Income
-- Insurance and other income was $1.0 million
for the second quarter of 2004 compared to $1.1 million for the first
quarter of 2004.
Funding and Liquidity
-- On July 22, 2004, we completed our sixth term
asset-backed securitization transaction; the first rated P-1/A-1+, Aaa/AAA,
A2/A-, Baa2/BBB by Moody's and Standard & Poors. Proceeds from the
transaction will be used to repay the company's warehouse credit facilities.
-- We have a total of $265 million in warehouse
capacity from our bank group and two commercial paper conduits.
-- We have elected to exercise our call option
to payoff our 2001 term securitization transaction on August 16, 2004.
At that me the note balance
will approximate $16 million at a weighted average coupon of approximately 6.0%.
-- We raised $289,000 in additional capital from
the sale of 21,688 common
shares through the Employee Stock Purchase Plan.
-- Our debt to equity ratio was 4.66:1 at June
30, 2004 compared o 4.76:1 at March 31, 2004.
Conference Call
and Webcast
We will host a
conference call today (Wednesday) at
9:00 a.m. EDT to discuss our second quarter 2004 results. If you wish
to participate, please call (877) 407-8031 (International participants
please use (201)-689-8031) approximately 10 minutes in advance of the
call time. The meeting number is 110678. The call will also be webcast
on the Investor Relations page of the Marlin Business Services Corp.
website, www.marlincorp.com. An audio replay will also be available
on the Investor Relations section of Marlin's website for approximately
90 days.
About Marlin Business
Services Corp.
Marlin Business
Services Corp. is a nationwide provider of equipment leasing solutions
primarily to small businesses. The company's principal operating subsidiary,
Marlin Leasing Corporation, finances over 60 equipment categories in
a segment of the market generally referred to as "small-ticket"
leasing (i.e. leasing transactions less than $250,000). The company
was founded in 1997 and completed its initial public offering of common
stock on November 12, 2003. In addition to Mount Laurel, NJ, Marlin
has regional offices in or near Atlanta, Chicago, Denver and Philadelphia.
For more information, visit www.marlincorp.com or call toll free at
(888) 479-9111.
CONTACT:Marlin Business Services Corp. Bruce Sickel, 888-479-9111
X4108
### Press Release ###########################
Consumer Auto Demand Bullish, Forecasts New US Study
ORADELL, N.J., --
High gas prices haven't satiated Americans' love of driving, said TechnoMetrica
Market Intelligence today, with one out of five saying that they will
likely purchase or lease a vehicle within the next 6 months, according
to the inaugural wave of its Consumer Auto Demand Tracker(SM) series
of reports.
Ford, American mainstay and industry powerhouse, leads the
way among brands, followed by Chevrolet. Asia's auto-juggernauts Toyota
and Honda are next, while Dodge rounds out the list of Top Five Most
Preferred Brands in America.
The study found that younger Americans aged 18-24 exert significant
pull on the fortunes of the auto industry, and a whopping 37% of consumers
in this age bracket plan to purchase either a new or pre-owned vehicle
within the next 6 months.
"Younger buyers are a key demographic to watch,"
said Susheel Philip, auto analyst at TechnoMetrica. "Most auto
makers today realize the long term potential benefit that this demographic
holds and are altering their product offerings to get a foot in the
door of this lucrative market."
Certified Pre-Owned Vehicles Make a Dent
The study found that certified pre-owned vehicles have gained
popularity among likely auto-buyers, taking sales away from both new
and used vehicles, with 22% of them considering buying such a vehicle.
These vehicles are typically off-lease and/or reconditioned,
meet manufacturers' standards for certification and carry warranties.
"CPOs offer consumers the best of both worlds. They
get to leave the dealership with a less expensive vehicle, and drive
home with more piece of mind than they would have with a run-of-the-mill
used car," said Philip.
The Study
TechnoMetrica's Consumer Auto Demand Tracker(SM), with a
sample size of over 2,000 American households, provides market information
to auto manufacturers and market watchers who want to identify trends
in US consumer demand. Conducted monthly, the study tracks consumer
demand, changes in brand preferences and body styles, as well as purchase
plans vis a vis the buying or leasing of new and pre-owned vehicles.
TechnoMetrica Market Intelligence
TechnoMetrica Market Intelligence is a leading provider of
timely intelligence for national and international clientele. Among
the company's main areas of focus are the high-tech and auto industries,
as well as the small business segments of the economy. TechnoMetrica
is the research partner of Investor's Business Daily and The Christian
Science Monitor.
### Press Release ###########################
Venture Capital Hits Two-Year High in Q2 2004 With $5.6 Billion
Invested
- Early Stage and First-Time Financings Begin to Rise -
WASHINGTON, July 27 /PRNewswire/ -- The steady upward trend
in venture capital continued in the second quarter of the year with
investments of $5.6 billion going into 761 companies according to the
MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics
and the National Venture Capital Association.
This figure compares to $5.0 billion invested in the first quarter
of 2004 and $5.4 billion in the fourth quarter of 2003. Over the past
two years, quarterly investing has drifted upward at a deliberate pace,
ranging from $4.3 billion to this quarter's high of $5.6 billion.
Tracy Lefteroff, global managing partner of the venture capital
practice at PricewaterhouseCoopers, said: "We see 'refined optimism' in the market. Investment levels
are realistic, not exuberant. There is a more balanced mix of investing
between earlier and later stage companies. And, the IPO window is open,
though temperate. The pieces are in place for solid years ahead."
Mark Heesen, president of the National Venture Capital Association, observed: "Venture capitalists are responding to the recent spate of positive indicators in a very measured and calculated manner. And, their continued discipline is critical to the performance of the asset class going forward. After months of anecdotal evidence that VCs are investing in more early stage and first-time deals, it is encouraging to see the statistics indicating that we are moving back to our roots: funding exciting, cutting edge companies early on and over the long