NCO Group Completes Its Acquisition of RMA and Announces Related Restructuring, Announces Significant Portfolio Acquisition, and
12 Setembro 2005 - 11:32PM
PR Newswire (US)
HORSHAM, Pa., Sept. 12 /PRNewswire-FirstCall/ -- NCO Group, Inc.
("NCO") (NASDAQ:NCOG), a leading provider of business process
outsourcing services, announced today that it has completed the
acquisition of substantially all of the operating assets, including
purchased portfolio assets, of Risk Management Alternatives Parent
Corp. ("RMA"). The total purchase price of the RMA acquisition was
approximately $118.9 million, subject to certain post closing
adjustments. NCO funded the purchase principally with financing
from its revolving credit facility. The purchase price included
approximately $51.0 million for RMA's purchased portfolio assets,
which was funded with $35.7 million of nonrecourse financing. This
transaction is expected to be neutral to NCO's earnings in 2005 and
accretive in 2006 and beyond. In conjunction with the integration
of RMA, NCO intends to take certain charges over the next two to
three quarters that are primarily related to the elimination of
redundant locations within NCO's legacy accounts receivable
management ("ARM") business, and the assimilation of the newly
acquired RMA receivables management and portfolio operations. These
charges are expected to be between $25.0 million and $30.0 million,
and are necessary for NCO to integrate RMA in a manner that
management expects will maximize the ongoing profitability of the
combined companies. Additionally, NCO announced that it recently
completed the acquisition of a company that specializes in
purchasing accounts receivable in the healthcare and utility
sectors for approximately $84.0 million, subject to certain
adjustments. This acquisition included NCO's largest purchase of
accounts receivable to date. The purchase also included certain
related operating assets as well as several favorable forward-flow
contracts. The purchase of the portfolio assets was structured as
an equity sharing arrangement under NCO's nonrecourse credit
facility. NCO funded its portion of the purchase with a combination
of cash and financing from its revolving credit facility. NCO
believes that the acquisition provides NCO with a clear path into
the healthcare market and solidifies its presence in the utilities
sector. Commenting on the transactions, Michael J. Barrist,
Chairman and Chief Executive Officer of NCO, stated, "The
combination of NCO and RMA represents a meaningful step forward for
NCO. We expect that the RMA portfolio and our expansion of our
purchase portfolio business into the healthcare and utility markets
will allow us to continue to grow and capitalize on what has been
our strongest segment in recent quarters. In addition to the
profits we will generate from the newly acquired portfolio assets,
the recent acquisitions should afford us the unique opportunity to
deal with ongoing margin pressures in the ARM space including the
incremental overhead associated with compliance, privacy, and data
security that we have been required to add to our operating
structure over the last several years. The restructuring should
allow us to create a more efficient operating model by streamlining
the scale and locations of both the legacy and newly acquired
businesses. While taking this action will result in certain
restructuring and integration costs that will impact our near-term
earnings, we believe these changes will allow the restructured ARM
division to move forward with improved margins and an operating
structure that we believe is better designed to meet its future
customer needs." NCO also notes that it has experienced a loss in
revenue and an increase in costs related to the impact of Hurricane
Katrina on its offices in the Gulf Coast region. While NCO was able
to transition the majority of the business processed within the
Gulf Coast region to other NCO facilities, it has suspended
collection activities into the affected areas and has not yet
determined when those activities will resume. NCO has not
quantified the continuing near-term and long-term effects on its
operating results and to what extent those effects will be covered
by insurance. The impact from Hurricane Katrina as well as the
effects of any restructuring charges are expected to reduce
previously announced guidance. NCO intends to provide additional
information related to the charges and the earnings impact of these
events as soon as the information becomes available. NCO Group,
Inc. is a leading provider of business process outsourcing services
including accounts receivable management, customer relationship
management and other services. NCO provides services through
approximately 90 offices in the United States, Canada, the United
Kingdom, India, the Philippines, the Caribbean and Panama. For
further information: At NCO Group, Inc. Investor Relations (215)
441-3000 http://www.ncogroup.com/ Certain statements in this press
release, including, without limitation, statements as to the
expected effects of the acquisitions of RMA and accounts receivable
portfolios, statements as to the impact from Hurricane Katrina,
statements as to the effects on the Company's earnings guidance,
statements as to the Companies' or managements' beliefs,
expectations or opinions, and all other statements in this press
release, other than historical facts, are forward-looking
statements, as such term is defined in the Securities Exchange Act
of 1934, which are intended to be covered by the safe harbors
created thereby. Forward-looking statements are subject to risks
and uncertainties, are subject to change at any time and may be
affected by various factors that may cause actual results to differ
materially from the expected or planned results. In addition to the
factors discussed above, certain other factors, including without
limitation, the risk that NCO will not be able to implement its
business strategy as and when planned, the risk that NCO will not
be able to realize operating efficiencies in the integration of its
acquisitions or that restructuring charges will be greater than
anticipated, risks related to the ERP implementation, risks related
to the final outcome of the environmental liability, risks related
to past and possible future terrorists attacks, risks related to
the economy, the risk that NCO will not be able to improve margins,
risks related to growth and future acquisitions, risks related to
fluctuations in quarterly operating results, risks related to the
timing of contracts, risks related to international operations, and
other risks detailed from time to time in NCO's filings with the
Securities and Exchange Commission, including the Annual Report on
Form 10-K for the year ended December 31, 2004, can cause actual
results and developments to be materially different from those
expressed or implied by such forward-looking statements. NCO
disclaims any intent or obligation to publicly update or revise any
forward-looking statements, regardless of whether new information
becomes available, future developments occur or otherwise.
DATASOURCE: NCO Group, Inc. CONTACT: Investor Relations of NCO
Group, Inc., +1-215-441-3000 Web site: http://www.ncogroup.com/
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