Kaulkin Ginsberg Index Reflects Improving Conditions for Receivables Management Companies -Market Cap of ARM Companies Increases 14 Percent in 2Q 2007

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The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management industry (ARM), has increased 3.7 percent during the second quarter of 2007. The Index's steady increases in the first half of 2007 point toward greater opportunity for receivables management companies later in the year.

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management industry (ARM), has increased 3.7 percent to 1399.3 during the second quarter of 2007. The KGI is down 5.0 percent from 1472.5 at the same time a year ago.

While this currently reflects more challenging economic conditions for the ARM industry, the Index's steady increases in the first half of 2007 point toward greater opportunity for receivables management companies later in the year.

The KGI's most notable change in the second quarter was the 14 percent increase in total Market Cap of the five ARM stocks included in the Index. Generally speaking, positive gains in ARM companies' stocks signal upbeat expectations for future financial performance across the industry.

The Market Cap data for ARM stocks in the second quarter of 2007 reflect higher revenue for four of the five ARM companies assessed by the Index over results from the same quarter in the prior year. Second quarter 2007 cash collections were also up (as much as 20 percent) for all five companies over the same period in 2006, and are expected to remain strong following several large purchases of distressed debt portfolios by these firms earlier in 2007.

In contrast to these positive indicators, however, the rate of revenue growth remains sluggish for many ARM companies due to continually elevated prices for bad debt portfolios. "Even in light of cooling stock prices for these five ARM companies early in the third quarter, rising consumer prices should drive consumer borrowing and continue to increase charge-off rates, both of which increase demand for ARM industry services," said Michael Klozotsky, a Kaulkin Ginsberg Research Analyst.

The Index's changes in Q2 2007 were caused by the following factors:

Unemployment Rate (June 2007*) : 4.5%
Q2 Change: -2.8%
Effect on KGI: Up

Federal Funds Rate (June 2007*): 5.25%
Q2 Change: -0.2%
Effect on KGI: Down

Charge-off Rate (June 2007*): 0.53%
Q2 Change: 3.9%
Effect on KGI: Up

Outstanding Consumer Credit (June 2007*): $2.460T
Q2 Change: 1.4%
Effect on KGI: Up

Total Market Cap of ARM Stocks (June 2007*): $2.50B
Q2 Change: 14%
Effect on KGI: Up

Bankruptcy Filings (June 2007*): 193,641
Q2 Change: -3.6%
Effect on KGI: Down

Consumer Price Index (June 2007*): 208.4
Q2 Change: 1.5%
Effect on KGI: Up

*For more information about the Kaulkin Ginsberg Index, see http:[http://www.kaulkin.com/research/kgi or call Michael Klozotsky at 301-907-0840 ext. 123.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is the leading strategic advisor for the accounts receivable management (ARM) industry. For ARM service providers, our value-add services focus on analysis, growth, and exit strategies. For credit grantors, our focus is on optimizing receivables management strategies. Kaulkin Ginsberg's media division publishes the most popular sources of timely industry news and information such as insideARM.com(TM) and The ARM Insider(TM). Kaulkin Information Systems creates secure and affordable workflow, document, and business process management technologies. Read more about Kaulkin Ginsberg at http://www.kaulkin.com.

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ANNE STRONG

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