NCO Group, Inc., one of the largest accounts receivable management companies in the world, reported financial results late Friday for the quarter ended June 30, 2011 marked by a decline in revenue and an expanded net loss.
The Horsham, Pa.-based provider of debt collection and BPO services said that in the second quarter of 2011, it recorded a $31.7 million loss attributable to NCO. The company reported a net loss of $25.5 million in the year-ago quarter. Adjusted EBITDA was up slightly to $32.5 million.
Total revenues in the quarter declined 6.7 percent to $373.9 million. Revenues from the company’s ARM unit, which houses debt collection operations, fell 7.7 percent to $308.7 million while revenues from the company’s CRM unit grew 13.8 percent to $75.7 million. NCO’s Portfolio Management unit, the firm’s debt buying arm, reported negative revenue of $6.2 million, attributable to a write-down of $11.2 million of the value of the unit’s debt portfolio.
NCO noted in a press release that it anticipates selling its receivables portfolio some time in August.
“While our revenue results were lower than 2010, driven in large part by the continued changes in economic conditions, we continued to effectively manage EBITDA as a result of tight controls throughout the organization, said Ronald A. Rittenmeyer, President and CEO. “We continue to see positive sales activity and are placing greater emphasis on quality of deals going forward.”
NCO will host an investor conference call on Monday, August 15, 2011, at 1:00 p.m., ET, to discuss the report and to allow the investment community an opportunity to ask questions. Interested parties can access the conference call by dialing (866) 388-2676 (domestic callers) or (706) 679-3487 (international callers) and providing the pass code 90198502.