Press

•  Press Releases •  Kaulkin Ginsberg In The News

Press

---

Press Releases

Recoveries More Challenging as ARM Economic Conditions Worsen

December 7, 2007: ROCKVILLE, MD - The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, dropped 5.5% to 1322.2 during the third quarter of 2007, down a surprising 10.5% from the same time a year ago.  This is the largest year over year decrease in the Index since January 2002.

“The housing market, the credit crunch, and other economic pressures have increased the challenge of collecting bad debt,” said Paul Legrady, a Director of Kaulkin Ginsberg.  “During this time, ARM companies need to operate as efficiently and effectively as possible to maintain levels of profitability.”

During the third quarter of 2007, the KGI was weighed down by four of its seven contributing variables.  The unemployment rate increased from 4.5% to 4.7%.  The market capitalization of publicly traded ARM companies decreased from $2.5 billion to $2.15 billion.  The federal funds rate decreased from 5.02% to 4.76%.  Finally, the number of bankruptcy filings across the country increased from 193,641 to 210,449.  All of these factors reflect increasing difficulty in the recovery or liquidation of bad debt.

The Index’s changes in Q3 2007 were caused by the following factors:

Variable	Sept. 2007 *	Q3 Change *	Effect on KGI *
Unemployment Rate	4.7%	-5.7%	Down
Federal Funds Rate	4.76%	-9.3%	Down
Charge-off Rate	0.55%	3.8%	Up
Outstanding Consumer Credit	$2.48T	0.9%	Up
Total Market Cap of ARM Stocks	$2.15B	-13.9%	Down
Bankruptcy Filings	210,449	-3.9%	Down
Consumer Price Index	208.5	0%	-

* See “How is the KGI Calculated,” www.kaulkin.com/research/kgi/calculate.cfm.

For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi or call Paul Legrady at 240-499-3818.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is the leading strategic advisor for the accounts receivable management industry (ARM). 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 is the worldwide leader in providing timely news and insight on the recovery of debt in all industries. Kaulkin Information Systems creates secure and affordable workflow, document, and business process management technologies. Read more about Kaulkin Ginsberg at www.kaulkin.com.