Contact Information: Contact: James J. Mastriani Chief Financial Officer Velocity Portfolio Group, Inc. (732) 556-9090
Update: Velocity Portfolio Group to File Periodic Report Late
| Source: Velocity Portfolio Group, Inc.
WALL, NJ--(Marketwire - August 28, 2009) - Velocity Portfolio Group, Inc. (NYSE Amex : PGV ), a
portfolio management company that purchases unsecured consumer receivables,
announced today that it will be late in filing its Periodic Report on Form
10-Q for the three and six month periods ended June 30, 2009. The company
was unable to file the Form 10-Q with the Securities and Exchange
Commission because it was not able to complete the preparation of the
condensed consolidated financial statements due to its revising of the
forecasted timing of expected future collections in certain pool groups due
to the continued economic deterioration. This was the result of a shortfall
in collections in certain pool groups against management's forecast as a
result of the current economic crisis, primarily the company's 2005 through
2006 vintages. This is expected to result in a material reduction in
revenues year over year for the period ending June 30, 2009. The Company
expects to report gross revenues from continuing operations of
approximately $6,000,000 for the six-month period ending June 30, 2009, a
20% decrease from gross revenues of approximately $7,500,000 for the
six-month period ended June 30, 2008. The Company expects to report a net
loss from continuing operations of between $4,500,000 and $5,500,000 for
the six-month period ended June 30, 2009, and shareholders' equity of
approximately $14,000,000 as of June 30, 2009.
The company filed a Form 12b-25 (Notification of Late Filing) on August 17,
2009 for a 5-day extension to file its Form 10-Q, which was due on August
14, 2009. The company and its independent registered public accounting firm
are working diligently to complete the filing and the company intends to
announce its second quarter financial results and file its Periodic Report
on Form 10-Q with the SEC on or prior to the end of business on Friday
August 28, 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).