Velocity Portfolio Group to File Annual Report by Monday, April 20
April 16 2009 - 6:00AM
Marketwired
Velocity Portfolio Group, Inc. (AMEX: PGV), a portfolio management
company that purchases unsecured consumer receivables, announced
today that it will be late in filing its Annual Report on Form 10-K
for the fiscal year ended December 31, 2008. The company was unable
to file the Form 10-K with the Securities and Exchange Commission
because it was not able to complete the preparation of the
consolidated financial statements due to its revising of its
expected estimated cash collection forecast methodology by
extending the collection forecast useful life of its pools from 60
months to 84 months and adjusting the timing of expected future
collections. The company expects to report a net loss for the year
ended December 31, 2008 of $2,898,962, as compared to net income of
$2,572,075 for the year ended December 31, 2007. The net loss was
primarily attributable to an impairment expense of approximately
$8.36 million on its consumer receivable portfolios. This
impairment was the result of a combination of an extension of the
collection curve from 60 to 84 months and an expected future
shortfall in collections in certain pool groups against
management's original forecast as a result of the current economic
crisis. The company also expects to report that revenues in the
year ended December 31, 2008 increased 6.1% to approximately
$14,705,000 and that the company posted gross collections of
approximately $17.7 million, compared to gross collections of $18.0
million for the fiscal year ended December 31, 2007, representing a
1.3% decrease.
The company filed a Form 12b-25 (Notification of Late Filing) on
April 1, 2009 for a 15-day extension to file its Form 10-K, which
was due on April 15, 2009. The company and its auditors are working
diligently to complete the filing and the company intends to
announce its fourth quarter and full year 2008 financial results
and file its Annual Report on Form 10-K with the SEC on or prior to
the end of business on Monday, April 20, 2009.
About Velocity Portfolio Group, Inc.
We are a portfolio management company that purchases unsecured
consumer receivables in the secondary market and seeks to collect
those receivables through an outsourced legal collection network.
Our primary business is to acquire credit-card receivable
portfolios at significant discounts to the total amounts owed by
the debtors. We use our proprietary valuation process to calculate
the purchase price so that our estimated cash flow from such
portfolios offers us an adequate return on our investment after
servicing. For more information, visit www.velocitycollect.com
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995
Except for the historical information contained herein, this
press release and the statements of representatives and partners of
Velocity Portfolio Group, Inc. (the "Company") related thereto
contain or may contain, among other things, certain forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve
significant risks and uncertainties. Such statements may include,
without limitation, statements with respect to the Company's plans,
objectives, projections, expectations and intentions and other
statements identified by words such as "projects", "may", "could",
"would", "should", "believes", "expects", "anticipates",
"estimates", "intends", "plans" or similar expressions. These
statements are based upon the current beliefs and expectations of
the Company's management and are subject to significant risks and
uncertainties, including those detailed in the Company's filings
with the Securities and Exchange Commission. Actual results may
differ significantly from those set forth in the forward-looking
statements. These forward-looking statements involve certain risks
and uncertainties that are subject to change based on various
factors (many of which are beyond the Company's control).
Contact: James J. Mastriani Chief Financial Officer Velocity
Portfolio Group, Inc. (732) 556-9090
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