NCO Portfolio Management, Inc. (“NCPM) (Nasdaq:NCPM), a leading purchaser and manager of delinquent accounts receivable, announced today that during the first quarter of 2002 it achieved net income of $0.20 per share, on a diluted basis.
Total collections on purchased accounts receivable for the first quarter of 2002 were $28.9 million, an increase of $8.5 million, or 41.7%, from $20.4 million in the first quarter a year ago. Revenue in the first quarter of 2002 was up $3.7 million, or 29.4%, to $16.3 million from $12.6 million the previous year. Income from operations was $6.0 million for the first quarter of 2002, a decrease of $200,000, or 3.2%, from $6.2 million a year ago. During the first quarter of 2002, net income was $2.7 million, or $0.20 per share, on a diluted basis, compared to net income of $2.9 million, or $0.27 per share, on a diluted basis, from the first quarter in the previous year. The first quarter 2001 comparative results include the results of operations of Creditrust Corporation from the date of the merger, February 20, 2001, through March 31, 2001 and may not be comparable to the full quarter results for 2002.
Operating expenses were $10.3 million and $6.4 million in the first quarter of 2002 and 2001, respectively. Included in operating expenses for the first quarter of 2002 and 2001 was $8.3 million and $5.7 million of servicing fees, respectively, paid for collection activities, including contingency legal fees. It is important to note that servicing fees are paid as a percentage of collections and not as a function of revenue. Servicing fees as a percentage of collections for the first quarter of 2002 and 2001 were 29% and 28%, respectively. All of the servicing fees for the first quarter of 2002, and $5.4 million of the servicing fees paid in the first quarter of 2001, were paid to NCO Group, Inc. (“NCOG”)(Nasdaq: NCOG – news). NCOG owns approximately 63% of the outstanding common stock of the company.
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