IMGCAP(1)]
NCO Group Inc., an accounts receivable management company, on Friday reported a net loss of $5.2 million for the second quarter ended June 30, compared with a net loss of $14.8 million during the same period last year.
The Horsham, Pa.-based company reported revenues of $378.6 million, a 6.5% decrease from $405 million in the first quarter of 2008, according to a company filing with the U.S. Securities and Exchange Commission. NCO ranks as the top collection agency in Collections & Credit Risk's 2009 industry rankings with nearly $1.5 billion in 2008 revenue.
"Although NCO met its overall profitability target, the second quarter presented many challenges as we began to experience volume reductions from clients as a result of declines in credit card activity and continued weakness in general consumer spending patterns. This was offset by continued expense reductions and the benefit from foreign currency gains," Michael J. Barrist, NCO's chairman and CEO, said of the company's earnings.
"As we move into the back half of the year, we will continue to focus on positioning NCO to be prepared to capitalize on potential opportunities from future improvements in consumer activity," Barrist added.
The company's accounts receivable management division posted second quarter net income of $16.5 million, a 16.7% decrease from $19.8 million during the same period a year ago.
NCO also purchases bad debt, including charged-off Visa, MasterCard and private-label credit cards, from banks, finance companies and retailers in the United States, United Kingdom and Canada.
NCO's debt-buying division reported a net loss of $2.3 million, compared with a net loss of $18.2 million a year earlier. The company said the revenue from its debt-buying division was primarily impacted by lower than expected collection results and fewer than expected purchases during the quarter.
The company ranks as the No. 10 debt buyer in Collections & Credit Risk's 2009 industry rankings with $18.4 million in revenue from purchased debt in 2008.
