Leasing News

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“Jim Billings is managing director with Kropschot Financial Services located in

“A ‘roll up’ strategy is used to describe a process whereby a number of companies are combined together into a larger company. Typically the process is started by a company or management team that has experience in managing within the industry and also has experience in acquiring companies and then successfully integrating the acquired companies . Usually part or all of the consideration received by the seller is stock in the acquirer ( First Sierra, Unicapital, T&W United Capital, Tyco, American Leasing Business Express, to name a few; see the list: editor.)

“I believe that the most important factor is the relatively high market valuation placed upon the stock of publicly traded equipment leasing companies. High stock valuations usually allow publicly traded companies to be more aggressive in pricing acquisitions. Another factor is that securitization has become a very important funding source for equipment leases. The economies of scale are such that only the larger funders have enough size to accomplish a securitization’; thus value can be created by combining smaller companies into an entity with economies of scale for funding.

“Will the level of roll-up acquisitions continue during 1998 and 1999? I believe the process will continue and may even accelerate as new and different companies try to replicate the success of the 2 or 3 leaders that are now pursuing that strategy. It depends, however upon the stock market valuation of equipment leasing companies, and upon the continued success of publicly traded leasing companies to increasing their earnings per share. The financial results and success of the companies most involved in the consolidation process is particularly important. It might bet harder to find acquisitions at prices that work for acquirers as the industry consolidation continue, particularly if purchase premiums continue to increase...if competition increases dramatically and profits fall significantly the overall number of companies will fail.”

I’m still with Kropschot Financial Services where I am Executive Vice President; I have been with Bruce for 17 years. When I first joined Bruce Kropschot I worked with a wide variety of financial services companies such as vehicle leasing companies, commercial finance companies, consumer finance companies, etc. Over the past several years I have become more involved with equipment leasing companies but still have the occasional client in other areas of financial services, such as a current client that purchases charged- off consumer debt.

On a personal note I still live and have an office in Maryland. I have been married for over 30 years and have two grown daughters. My oldest daughter works in the financial services industry for JPMORGAN in London and my youngest daughter is a recent college graduate that still lives at home.

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25 year veteran of commercial and equipment leasing seeking a senior management position with leasing or asset based financing company in the southeast (Florida preferred)

Senior Management: Chicago, IL 15 yrs.of exp., w/global-vendor-programs; sales, marketing, business-development, P&L responsibilities. Seeking senior leadership-role w/captive lessor or global-leasing company. Will relocate for right opportunity. email:InternationallyAdept@hotmail.com

Degree Banking/Finance. 13 years leasing exp. Now prez young leasing company where promises were not met. Interested in joining established firm with future. Email:bob33483@yahoo.com

Senior Management: San Francisco, CA., 25 years experience w/global leasing company, sales,marketing,business dev., P&L responsibility, asset mgmt, brokering and remarketing. Interested in joining an est. firm with a future. email:rcsteyer@yahoo.com

Senior Management: Portfolio Management Consultant; 25+years experience in Collections, Customer Satisfaction, Asset Management, Recoveries, Continuous Process Improvement, Backend Revenue Generation, Cost per Collection Analysis. $5+Billion Portfolio expertise. email: efgefg@rogers.com

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MicroFinancial Incorporated Announces First Quarter 2003 Results; - Sequential Net Loss Improves to $0.06 Per Diluted Share -; - Secures Amendment to Credit Agreement –

WOBURN, Mass--MicroFinancial Incorporated (NYSE:MFI), a leader in Microticket leasing and finance, announced today its financial results for the first quarter ended March 31, 2003.

First quarter revenue for the period ended March 31, 2003 was $25.6 million compared to $35.3 million for the same period last year. The net loss for the quarter was $0.8 million, or ($0.06) per diluted share compared with net income of $3.2 million, or $0.25 per diluted share in the prior year's first quarter. The reduction in revenue and income are attributable to the Company's decision to suspend originations in October 2002. This resulted in a 35.5% decline in lease and loan revenues to $9.8 million, a 44.6% drop in service fee and other revenues to $3.5 million, and a 13.3% decrease in the rental income to $8.5 million versus the first quarter ended March 31, 2002.

Total operating expenses for the quarter decreased 10.3% or $3.1 million as compared to the same period in 2002. Salary, general and administrative expense declined 27.4% to $9.1 million for the quarter compared to $12.6 million for the same period last year. The decrease was attributable to reductions in personnel-related expenses of approximately $1.8 million, collection related expenses of $0.9 million and lower cost of goods sold of $0.6 million as compared to the first quarter of 2002. Despite an increase in interest costs, interest expense declined 4.3% to $2.6 million as a result of lower debt balances. The provision for credit losses decreased to $10.8 million for the quarter ended March 31, 2003 from $11.0 million for the same period last year, while net charge offs increased to $13.7 million from $11.2 million for the same period last year. Past due balances greater than 31 days delinquent at March 31, 2003 remained relatively flat at 24.3% versus 24.9% last quarter.

Dealer fundings decreased $21.4 million to $1.2 million in the quarter, versus the three months ended March 31, 2002. This decrease was a result of the Company's decision to suspend new contract originations in October 2002, until an alternative source of financing could be obtained. Investment in lease and loan receivables due in installments, estimated residuals, rentals, and service contracts were down $104.0 million to $357.4 million as compared to the same period last year. Net cash provided by operating activities in the quarter decreased to $25.7 million compared to $31.9 million in the same period of 2002. The Company repaid notes payable in the amount of $23.7 million in the first quarter of 2003.

On a sequential basis, net income for the first quarter of 2003 increased $6.9 million from a loss of $7.7 million last quarter. This increase was primarily driven by a reduction in the provision for credit losses of $11.7 million.

Richard Latour, President and Chief Executive Officer stated, "We are pleased that our first quarter results met our internal collection goals on the existing portfolio and that the Company's ongoing strategy of driving down expenses had a positive impact on our results."

Mr. Latour continued, "MicroFinancial also reached a critical milestone in our effort to reposition the Company and strengthen our capital structure. In April, we secured a long-term amendment of our credit facility and a permanent waiver for our securitization facility. This provides a solid foundation that will allow us to focus our attention on seeking a financial partner as we actively consider various financing, restructuring and strategic alternatives."

Mr. Latour concluded, "Over the next few quarters we will continue to maximize our portfolio collections, while simultaneously pursuing a business strategy that further strengthens our balance sheet."

MicroFinancial Inc. (NYSE:MFI), headquartered in Woburn, MA, is a financial intermediary specializing in leasing and financing for products in the $500 to $10,000 range. The company has been in operation since 1986.

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Sunrise International Leasing Corp. Reports First-Quarter Results

Net Income Increases 78 Percent from Prior-Year Period

GOLDEN VALLEY, Minn., -- Sunrise International Leasing Corporation (SILC), a wholly owned subsidiary of privately held King Capital Corp., announced financial results for the first quarter ended March 31, 2003.

For the quarter, SILC reported revenues of $20.5 million, compared to $35.9 million for the comparable 2002 period. First-quarter net income increased 78 percent to $4.8 million from $2.7 million for the prior-year period. Net income was positively impacted by continued improvement in the credit quality of SILC's portfolio and a reinstatement of certain previously written off assets.

As a result of adverse economic conditions and a worldwide decrease in capital spending, SILC has experienced an expected reduction in demand for new leases and a corresponding decrease in revenue. However, SILC reduced first- quarter expenses by 60 percent from the year-ago period, with no reduction in the services offered to its vendors. The company had no interest expense during the quarter and currently has in excess of $50 million in cash and short-term investments.

Outlook

SILC expects 2003 total-year revenue and net income levels to be substantially lower than the $117.4 million and $14.7 million, respectively, recorded in the prior fiscal year. However, SILC will continue to generate significant free cash flow, and will allocate a substantial portion of its cash to support the expansion of its recently formed second placement division.

SILC has experienced an increase in its leasing activity recently and expects a significant improvement in originations in the third and fourth quarters.

The company also continues to explore all suitable options for business opportunities. SILC is capitalizing on its cash reserves, information systems and business model, which are among the best in the industry, to deal with current business conditions and set the stage for future expansion.

About Sunrise International Leasing Corporation

SILC's business consists primarily of developing and implementing customized lease and rental programs for vendors of high technology and related equipment and is becoming a major financing source for second placements. SILC also is a national major reseller of high-quality, off-lease used Sun and Cisco equipment through Redirect Tech, its remarketing subsidiary.

About King Capital Corp.

King Capital Corp., established in 1975 and based in Golden Valley, Minn., offers a wide range of leasing options to manufacturers, distributors and resellers through its primary subsidiary, SILC, as well as high-availability software through H.A. Technical Solutions, LLC.

SUNRISE INTERNATIONAL LEASING CORPORATION

CONDENSED STATEMENTS OF INCOME

Three Months Ended

March 31,

2003 2002

Revenues $20,519,000 $35,922,000

Cost, expenses, and other 12,243,000 30,818,000

Income before provision for income taxes 8,276,000 5,104,000

Provision for income taxes 3,520,000 2,399,000

Net Income $4,756,000 $2,705,000

SOURCE Sunrise International Leasing Corporation

CO: Sunrise International Leasing Corporation; King Capital Corp.

[Headlines]

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Philip Morris Capital Corporation to Pursue New Strategic Focus

STAMFORD, Conn.---Philip Morris Capital Corporation (PMCC), the financial services subsidiary of Altria Group, Inc. (NYSE:MO) announced today that it is shifting its strategic focus from an emphasis on the growth of its portfolio of finance leases through new lease investments to one of maximizing investment gains and generating cash flows from its diversified portfolio of leased assets.

"PMCC has a well-diversified portfolio of leased assets that are core to its lessees and possess significant residual upside," said John J. Mulligan, president and chief executive officer of PMCC. "This decision will enable PMCC to realize gains and enhance cash flow through an orderly and systematic disposition of assets over an extended period of time."

Explaining the reason for the change, Mr. Mulligan said, "As a result of a recent strategic review, Altria concluded that PMCC's leasing investments do not represent a core business and that resources and capital can be better deployed in support of growth in Altria's consumer products businesses."

PMCC was formed in 1982. It is headquartered in Stamford, CT and employs approximately 70 people. Its diversified portfolio of leased assets totaled approximately $9.3 billion in net finance receivables at December 31, 2002.

CONTACT:

Tim Kellogg, 917/663-2759

SOURCE: Philip Morris Capital Corporation

[Headlines]

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Michael Jordan leaves the MCI Center after learning he will not return to Wizards job. (AP)

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1783-the first salute fired by Great Britain in honor of an officer of the United States was fired when General George Washington and Governor George Clinton arrived at the British ship Ceres, commanded by Sir Guy Carleton, in New York Harbor to arrange for the British evacuation. When they departed, 178 guns were fired in honor of Washington’s rank. New York was evacuated by the British on November 25, 1783.

1829-birthday of Louis Moreau Gottschalk, American pianist of international fame who toured the US during the Civil War. Gottschalk composed for the piano combining American and Creole folk themes and rhythms in his work. Born at New Orleans, LA, he died Dec. 18, 1969, at Rio de Janeiro, Brazil. http://www.louismoreaugottschalk.com/ http://www.viridianaproductions.com/ameori.htm

1835-- Augusta Jane Evans Wilson birthday; U.S. novelist whose work is critically described today as sentimental and overblown, woman-stuff, but it sold very well in the mid 19th century. The unstated fact is that more than just women read her works. A Civil War report states that a Union general ordered all copies of her book , Macaria, in the possession of his troop was to be burned and the soldiers forbidden to read it. Heady actions for a book that only women read! Macaria was written in support of the Confederate position.