NCO Group Third Quarter Loss Narrows on Revenue Increase

NCO Group, Inc., one of the largest ARM and BPO providers in the world, announced late Monday financial results for the third quarter of 2011 marked by an increase in revenue and EBITDA.

Horsham, Pa.-based NCO said that Adjusted EBITDA for Q3 2011 was $37.1 million, an increase of 16 percent from the same period a year ago. The net loss attributable to NCO was $28.5 million in the most recent quarter, compared to a net loss of $33.5 million last year.

Revenues in the quarter were up 4 percent to $304 million.

NCO said that in April and August of 2011, it divested “substantially all” of the remaining debt portfolios in its Portfolio Management division, the company’s old debt buying arm. As such, the company is now divided into two operating divisions: Accounts Receivable Management (ARM) and Customer Relationship Management (CRM).

In the third quarter of 2011, the ARM division saw revenues decline 7.7 percent to $293.1 million, while revenues in the CRM unit grew 39 percent to $90.5 million.

Commenting on the results, Ronald A. Rittenmeyer, President and Chief Executive Officer, said, “During the third quarter NCO continued to execute on its plan to better position NCO in the overall BPO market.  We were able to exit the Portfolio Management business and continue to restructure NCO to better support NCO’s long-term growth initiatives.”

NCO said it will host an investor conference call on Tuesday, November 15, 2011, at 2:00 p.m., ET, to discuss the results. 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 28429638.