RAMSEY, N.J., Aug. 21 /PRNewswire-FirstCall/ -- Velocity Asset Management, Inc. (the "Company") (BULLETIN BOARD: VCYA.OB) , a distressed asset management and liquidation company, announced today revenues and operating results for the quarter and six months ended June 30, 2006.
For the second quarter ended June 30, 2006, the Company reported revenues of $2,137,290, an increase of 30.4% as compared to revenues of $1,693,560 for the second quarter of 2005, and an increase of 15.1% sequentially as compared to revenues of $1,856,155 for the first quarter ended March 31, 2006. Operating income increased 110.1% in the third quarter of 2005 to $711,738 as compared to operating income of $338,749 for the second quarter of 2005, and increased 72.2% sequentially as compared to operating income of $413,322 in the first quarter ended March 31, 2005. Second quarter 2006 net income increased 14.2% to $200,682 or $0.01 per diluted share, as compared to net income of $175,717 or $0.01 per diluted share in the second quarter of 2005, and an increase of 189.4% sequentially from the first quarter.
In the second quarter, the Company completed a $13,800,000 public offering of its Series A convertible preferred stock, increasing total shareholders' equity to $20,956,500. The Series A convertible preferred stock began trading on AMEX on Wednesday, May 17, 2006 under the symbol "JVI.PR." The common stock currently remains trading on the OTCBB under the symbol VCYA.OB.
For the six months ended June 30, 2006, the Company reported revenues of $3,993,445, an increase of 15.1% as compared to revenues of $3,469,151 for the first six months of 2005. Operating income increased in the first six months of 2006 to a record $1,125,060 as compared to operating income of $515,785 for the first six months of 2005, an increase of 118.1%. Net income for the first six months of 2005 was $270,019 or $0.02 per diluted share, as compared to net income of $240,619 or $0.01 per diluted share in the first six months of 2005.
During the second quarter of 2006, the Company's wholly-owned Velocity Investments subsidiary (which purchases portfolios of non-performing consumer receivables) posted record gross collections from its portfolios of non- performing consumer receivables totaling $2,759,321 an increase of 138.5% as compared to collections of $1,157,113 in the three month period ending June 30, 2005. During the second quarter of 2006, Velocity Investments purchased consumer receivable portfolios aggregating approximately $41.7 million in outstanding principal amount for a purchase price of approximately $5.8 million, bringing the aggregate outstanding principal amount of consumer receivables under management as of June 30, 2006 to approximately $198 million, an increase of 230%% as compared to approximately $60 million as of June 30, 2005.
Commenting on the results, Jack Kleinert, President and CEO, stated, "We are very pleased with the results for the second quarter of 2006. The substantial percentage increase in the quarter in collections, total revenue, operating income and consumer receivables under management continues a trend that we expect to continue for the foreseeable future. We believe that our strategy of maintaining low fixed corporate overhead coupled with our unique focus of acquiring and collecting on non-performing consumer receivables owed by obligors that are collectible through legal collection means, results in significant operating and earnings leverage at the Company." In addition, Kleinert stated: "With the completion of the preferred stock offering in the second quarter, we believe that we now have the resources to benefit from the increased market opportunities that we continue to see in our charged off consumer receivables business. By listing of our preferred securities on AMEX, we hope to provide greater transparency and liquidity for our preferred shareholders and to elevate our company's visibility and standing in the financial community."
About Velocity Asset Management, Inc.
Velocity Asset Management, Inc. is a Delaware corporation that focuses on the purchase, resale, and collection of distressed assets through its three wholly-owned subsidiaries, Velocity Investments, LLC, J. Holder, Inc. and VOM, LLC. Velocity Investments, LLC is a consumer receivables asset management and liquidation company, which purchases, manages and liquidates portfolios of unsecured consumer receivables. J. Holder, Inc. invests in, and maximizes the return on real property sold at sheriff's foreclosure sales and judgment execution sales, acquires defaulted mortgages and partial interests in real property with the goal of re-selling the property or perfecting the partial interest for resale. VOM, LLC focuses on purchasing, managing and maximizing the return on New Jersey municipal tax liens.
This Press Release contains or may contain forward looking statements and information that are based upon beliefs of and information currently available to the Company's management as well as estimates and assumptions made by the Company's management. When used herein the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan" and similar expressions as they relate to the Company or the Company's management identify forward looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties and assumptions relating to the Company's operations and results of operations and any businesses that may be acquired by the Company, including future collections, increased revenue, increased operating income and consumer receivables under management at the Company's Velocity Investments subsidiary. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, intended or planned.
Company Contact:
Jim Mastriani, CFO
Velocity Asset Management
(732) 556-9090
