Cavalry Reports Record Acquisitions and Collections in 2004

HAWTHORNE, NY – Cavalry Portfolio Services LLC, one of the nation’s largest debt buyers, reported a record year for acquisitions and collections in 2004.

Cavalry’s portfolio acquisitions in 2004 totaled $2.7 billion in aggregate principal balances, an increase of 144 percent from last year. The firm’s receivables portfolio rose to $13.3 billion, up 37 percent from $9.7 billion at the end of 2003.

Cavalry’s gross collection proceeds for 2004 were $217 million, up 79 percent from 2003. The firm has 550 employees across the country servicing 6.5 million accounts.

“2004 was an excellent year for us in terms of both acquisitions and collections,” said Andrew Zaro, Cavalry chief executive officer. “We continue to pursue strategic growth in our receivables portfolio, while maintaining our solid track record of profitability with efficient collections.”

Cavalry completed an extensive upgrade to its information technology platform in 2004 and now has the capability to handle 15 million accounts, Zaro said. He said the firm’s collections continue to rise, due to ongoing recruitment combined with new technology. Cavalry continues to expand, actively recruiting collectors and analysts for its operations centers in New York, Phoenix, Tulsa and St. Paul.

“Our collector yield has continued to climb as a result of our human resources activities and improved technology,” Zaro said.

The firm is preparing for growth over the next two years, he said. Given the already high level of consumer debt, Cavalry sees rising interest rates leading to increased delinquencies and chargeoffs, and boosting the supply of distressed debt on the market.

“We predict continued growth in consumer debt and higher chargeoffs as interest rates climb,” Zaro said. “We believe financial institutions will sell more chargeoffs in an effort to maintain current earnings levels.”

Based in New York, Cavalry acquires and collects distressed consumer loan portfolios from major banks, credit card, consumer finance and auto companies, as well as from other industries including utilities, telecom and healthcare.

About Cavalry Portfolio Services LLC
With a $13.3 billion portfolio of receivables, Cavalry Portfolio Services is one of the nation’s largest acquirers of non-performing consumer loans. The firm ranks in the top ten of the country’s largest debt buyers, according to Thomson Financial. Cavalry’s client roster includes some of the nation’s largest banks and consumer finance companies, as well as automotive companies, retailers, utilities, telecom and healthcare companies. The firm offers significant expertise, proven collection strategies and a proprietary credit scoring system that pinpoints “recoverable” loans, as well as a national legal network. Cavalry has offices in Hawthorne, New York, Phoenix, Arizona, Tulsa, Okla., and St. Paul, Minn.