Equipment Leasing Association's Monthly Leasing Index

Sunday, October 30, 2005

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 31, 2005--The Equipment Leasing Association (ELA) today released the ELA Monthly Leasing Index (MLI), which indicates a significant upturn to end the third quarter. In September, new business volume increased from August's $4.28 billion to $5.06 billion, representing an 18.1 percent increase. This is also the highest reported amount of new business volume for any month this year. Approximately 20 major equipment leasing and finance companies are surveyed on a monthly basis for the MLI.

Noting the strong monthly performance indicated by the September MLI, Ralph Petta, Vice President of Industry Services, stated, 'Despite the hiccup in portfolio quality, the September numbers show a robust leasing business, which is surprisingly strong given the weather events and high energy prices that occurred during the quarter.'

Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged from August, coming in at 97.92 percent. However, this remains below March's high of 98.46 percent. Credit approval ratios increased very slightly to 82 percent compared with 81.7 percent in August. Average charge-offs, however, increased significantly, coming in at 0.69 percent, up from August's 0.43 percent. Petta noted, 'This is due to a couple of outliers resulting from two respondents who reported very significant increases in that statistic for September.'

The total number of employees increased slightly to 9,001 compared to 8,939 in August. Although off from April's high of 9,259, this puts total FTEs back over the 9,000 mark.

The MLI is issued on the 30th of every month(1) and provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

Because the same companies participate in the study each month, the MLI provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI are posted on the ELA website and in Equipment Leasing Today magazine.

Charts and graphs are available for reprint to members of the accredited media. The illustrations reflect the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/IndustryData/ or contact Dean Frutiger at (703) 516-8380.

(1) Should the 30th of the month fall on a non-business day or holiday, the ELA Monthly Leasing Index will be issued on the next business day closest to the 30th."