NCO Group Inc., in its annual report filed Friday, said its debt collection unit accounted for $1.2 billion in revenue in 2011, down 7% from 2010. The company's overall revenues totaled $1.54 billion last year, down 2% from the previous year.
NCO last year absorbed a $183.8 million impairment charge and cited $30 million in restructuring costs, compared to $57 million and $17.1 million in 2010 and $24.8 million and 11.6 million in 2009. Many of the charges were a result of the acquisition of APAC Customer Services Inc. and related debt refinancing. The company last week announced that the APAC merger was completed and that the new combined company would be trading under the name Expert Global Solutions Inc.
The new company will operate two business units: ARM (under the NCO brand) and CRM (under the APAC brand). NCO has been in the process of shutting down its debt buying operations over the course of the last year.
NCO, based in Horsham, Pa., in 2011 sold a large portion of the debt portfolios left in its Portfolio Management unit, the company's former debt-buying arm. At the end of the year, NCO said that the carrying value of purchased assets portfolio was $3.4 million, down from $78.6 million at the end of 2010 and $138.4 million at the end of 2009.
NCO had chosen to exit the portfolio management business to focus on its two remaining divisions: Accounts Receivable Management and Customer Relationship Management.
NCO is the largest accounts receivable management firm based on total revenue, according to Collections & Credit Risk estimates and research. The company operates from 95 offices in 11 countries, with 58 of those offices in the U.S.