SOURCE: Velocity Portfolio Group, Inc.

Velocity Portfolio Group, Inc.

August 21, 2009 09:27 ET

Velocity Portfolio Group to File Periodic Report Late

WALL, NJ--(Marketwire - August 21, 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 month period 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 consolidated financial statements due to its revising of its expected estimated cash collection forecast methodology by extending the useful life of its consumer receivables pools from 60 to 84 months and adjusting the timing of expected future collections in certain pool groups. 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 $3,015,000 for the three-month period ending June 30, 2009, a 17.7% decrease from gross revenues of approximately $3,662,000 for the three-month period ended June 30, 2008.

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 auditors 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 Monday August 24, 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 Information

  • Contact:

    James J. Mastriani
    Chief Financial Officer
    Velocity Portfolio Group, Inc.
    (732) 556-9090