Debt Buyer Velocity Asset Management to Delay Quarterly Report

Velocity Asset Management announced in a press release Wednesday that it would be delaying its first quarter report with the Securities and Exchange Commission to allow more time for its auditors to reclassify certain company entities as discontinued operations. The company also gave a preview of its expected Q1 results.

Wall, N.J.-based Velocity (AMEX: JVI), an accounts receivable management firm focused on acquiring bad consumer debts and collecting through a litigation model, first filed a notice of the delay with the SEC last week. The company today said that it will need extra time so auditors will have more time to “address the reclassification and presentation of the Velocity’s VOM, LLC and J. Holder, Inc. entities as discontinued operations.”

The company’s VOM unit focused on municipal tax liens and J. Holder was formed to “invest in, and maximize the return on real property being sold at sheriff’s foreclosure sales and judgment execution sales,” according to Velocity’s Web site. The company did not say when operations were discontinued in either unit.

Velocity initially said it was considering divesting the two units in its earnings report for the third quarter of 2007 ("Velocity Asset, Maximus Report Quarterly Results," Nov. 15, 2007). 

Velocity expects its results for the first quarter of 2008 to be released no later than May 27.

The company also gave an earnings preview for the quarter, marked by an increase in both net income and revenues. Velocity anticipates reporting net income between $600,000 and $700,000 for the quarter compared to the $500,000 it reported in the first quarter of 2007.

Revenues are expected to be $3.8 million for the quarter, up 22.5 percent from the same period in 2007.

On a per share basis, Velocity says that earnings will be 1 to 2 cents compared to the 1 cent per share reported in Q1 2007.