Velocity Profits Soar, Ponders Subsidiary Sale

Debt purchaser Velocity Asset Management Inc. reported today net income of $300,732, compared with $39,677 in the second quarter of 2006, a rise of nearly 660 percent. Revenues rose 63 percent to nearly $3.5 million from $2.1 million. Gross collections totaled $4.5 million, up 64 percent from $2.8 million in the year ago quarter.

Jack Kleinert, president and CEO, said in a statement that the firm during the quarter bought six consumer receivables portfolios with a value of $37.9 million for $3 million, and that it had $433 million in initial outstanding principal amount of consumer receivables under management.

Velocity, through its Velocity Investments subsidiary, buys consumer debt, focusing on litigation quality paper. Kleinert said the firm is considering selling off its J. Holder and VOM subsidiaries to focus on the consumer debt sector. Velocity Holdings has a credit facility with Wells Fargo Foothill.

Velocity today also began trading on the American Stock Exchange under the ticker symbol JVI. Its Series A Convertible Preferred stock has traded on the American since May 2006. AGS Specialist Partners is the specialist for Velocity.