Nationwide Credit, Inc. Announces Fourth Quarter Results

ATLANTA, GA ? Nationwide Credit, Inc. (NCI) a leading provider of accounts receivable management services today announced its Fourth Quarter Results.

The Company reported revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) of $32.5 million and $4.0 million, respectively, for the three months ended December 31, 2000, compared to $31.2 million and $4.5 million for the same period in 1999.

Excluding our discontinued Directory Assistance Program, revenue grew year over year by 11% while EBITDA decreased by 11%. The revenue growth came from the company’s target markets of Financial Services and Telecommunications in both pre- and post-charge-off services. The decrease in EBITDA during the quarter was primarily due to the Healthcare business.

Revenue in the Healthcare business was down approximately $649,000 and EBITDA declined by approximately $652,000 in the fourth quarter of 2000 versus the same period in 1999. In addition, the Company invested in infrastructure and additional management to meet the future demands of the business.

For the twelve months ended December 31, 2000, the Company reported revenue and EBITDA of $131.2 million and $16.5 million, respectively, compared to $112.7 million and $15.7 million for the same period in 1999.

Excluding our Directory Assistance Program, revenue grew year over year by 25% while EBITDA grew by 8%. The revenue growth came from the company’s target markets of Financial Services and Telecommunications in both pre- and post-charge-off services. During the year, the Company invested in the Healthcare business, adding a new management team and rebuilding revenues, but results in Healthcare lagged 1999. Healthcare revenue was down approximately $3.1 million and EBITDA declined by approximately $2.7 million year-over-year.

In addition, we continued to experience start-up costs, including the impact of parallel ramp-up costs related to the Company’s growth and the opening of new facilities, which temporarily reduced margins during the year.

Chief Executive Officer Michael Lord stated, ?In 2000, NCI continued its trend of double digit year-over-year revenue growth but we did not achieve the level of profits we anticipated. In 2001, senior management is focused on increasing EBITDA margins through disciplined spending and continued but slower revenue growth. We believe that we can grow with our existing base of customers as well as add new business in the coming months.? Mr. Lord added, ?with the new business contracts we have already signed, improved operational efficiencies, and the new financing, we are well positioned for strong growth in revenues and profits in 2001.?

FINANCIAL OUTLOOK FOR Q1 2001

For the first quarter of 2001, NCI expects revenue to increase approximately 7%, compared to the same period in 1999 (excluding the impact of the discontinued Directory Assistance Program). EBITDA is expected to increase in excess of 25% driven by revenue growth and from the cost cutting initiatives implemented by the Company in 2000.

NCI is one of the largest providers of accounts receivable collection services in the Unites States. NCI provides services to clients in the Financial Services, Consumer, Telecommunications, Education, Government and Healthcare Sectors.

Certain statements in this press release, including, without limitation, statements as to the effects of the economy on the Company’s business, statements concerning projections of earnings per share or the earnings per share growth rate, statements as to fluctuations in quarterly operating results, statements as to trends, statements as to the Company’s or management’s beliefs, expectations or opinions, and all other statements in this press release, other than historical facts, are forward-looking statements, as such term is defined in applicable law, including the Private Securities Reform Act of 1995, which are intended to be covered by the safe harbors created thereby. Forward looking statements are subject to risks and uncertainties, are subject to change at any time and may be affected by various factors that may cause actual results to differ materially from the expected or planned results. In addition, to the factors discussed above, certain other factors, including without limitation, risks relating to growth and future acquisitions, risks related to fluctuations in quarterly operating results, risks related to the timing of contracts, risks related to strategic acquisitions, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K, filed on March 24, 2000, as amended, can cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date made. Company undertakes no obligation to publicly release the results of any revisions of these forward- looking statements to reflect events or circumstances after the date they are made or reflect the occurrence of unanticipated events.

Contact:
Nationwide Credit, Inc.
Eric Dey, 770/933-6659