UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999 or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
Commission file number 0001059083
NATIONWIDE CREDIT, INC.
----------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1900192
------------------------------ ----------------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification Number)
6190 Powers Ferry Road, 4th Floor, Atlanta, Georgia 30339
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (770) 644-7452
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
<PAGE>
TABLE OF CONTENTS
PAGE
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
as of March 31, 1999 and December 31, 1998 ................................1
Condensed Consolidated Statements of Operations
for the Three Months Ended March 31, 1999 and March 31, 1998...............3
Condensed Consolidated Statements of Cash Flows
for the Three Months Ended March 31, 1999 and March 31, 1998...............4
Notes to Condensed Consolidated
Financial Statements as of March 31, 1999..................................5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS
OF OPERATIONS ....................................................6
PART II. OTHER INFORMATION
SIGNATURE.................................................................11
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
Unaudited Audited
----------------- ------------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 3,573 $ 3,201
Cash held for clients 2,182 2,279
Accounts receivable, net of allowance of
$1,187 and $951, respectively 11,102 12,885
Prepaid expenses and other current assets 1,221 1,208
------------------ ------------------
Total current assets 18,078 19,573
Property and equipment, less accumulated
depreciation of $5,736 and $4,575, respectively 8,912 9,859
Other assets, net:
Goodwill, less accumulated amortization of $4,661 101,209 102,107
and $3,763, respectively
Other intangible assets, less accumulated amortization 3,942 4,301
of $16,336 and $15,978, respectively
Deferred financing costs, less accumulated amortization 4,115 4,238
of $2,411 and $2,288, respectively
Other assets 218 237
------------------ ------------------
Total assets $ 136,474 $ 140,315
================== ==================
<FN>
The accompanying notes are an integral part of these consolidated balance
sheets.
</FN>
</TABLE>
<PAGE>
NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
Unaudited Audited
----------------- ------------------
<S> <C> <C>
Liabilities and stockholder's equity
Current liabilities:
Collections due to clients $ 2,182 $ 2,279
Accrued compensation 5,636 4,201
Accounts payable 1,793 1,870
Accrued severance and office closure costs 3,078 1,845
Other accrued liabilities 2,660 5,273
Current maturities of long-term debt 250 250
----------------- ------------------
Total current liabilities 15,599 15,718
Accrued severance and office closure costs 900 2,400
Long-term debt, less current maturities 118,438 118,500
Stockholder's equity:
Common stock - $.01 par value
Authorized shares - 10,000 shares
Issued and outstanding shares - 1,000 shares -- --
Additional paid in capital 39,465 39,465
Accumulated deficit (37,788) (35,628)
Notes receivable - officers (140) (140)
----------------- ------------------
Total stockholder's equity 1,537 3,697
----------------- ------------------
Total liabilities and stockholder's equity $136,474 $140,315
================= ==================
<FN>
The accompanying notes are an integral part of these consolidated balance
sheets.
</FN>
</TABLE>
<PAGE>
NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
--------------------------------------
1999 1998
Unaudited Unaudited
--------------- ---------------
<S> <C> <C>
Revenue $ 27,266 $ 29,925
Expenses:
Salaries and benefits 18,432 17,039
Telecommunication 919 1,359
Occupancy 1,025 1,158
Other operating and administrative 3,277 3,712
Depreciation and amortization 2,416 6,130
Provision for employee severance and office closure 243 --
--------------- ---------------
Total expenses 26,312 29,398
--------------- ---------------
Operating income 954 527
Interest expense 3,114 4,174
--------------- ---------------
Loss before income taxes (2,160) (3,647)
Provision for income taxes -- --
--------------- ---------------
Loss before extraordinary item (2,160) (3,647)
Extraordinary loss on debt extinguishment -- 783
--------------- ---------------
Net loss $ (2,160) $ (4,430)
=============== ===============
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</FN>
</TABLE>
<PAGE>
NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
----------------------------------------
1999 1998
Unaudited Unaudited
---------------- ----------------
<S> <C> <C>
Operating activities
Net loss $ (2,160) $ (4,430)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization 2,540 7,318
Extraordinary loss on debt extinguishment -- 869
Other non-cash charges 243 --
Changes in operating assets and liabilities:
Accounts receivable 1,783 (3,070)
Prepaid expenses and other assets 6 357
Accrued compensation 1,435 1,156
Accounts payable and other accrued liabilities (3,199) 3,958
---------------- ----------------
Net cash provided by operating activities 648 6,158
Investing activities
Acquisitions, net of cash acquired -- (157,270)
Purchases of property and equipment (213) (1,117)
---------------- ----------------
Net cash used in investing activities (213) (158,387)
Financing activities
Proceeds from acquisition facilities -- 125,000
Capital contribution from Parent -- 38,975
Proceeds from long-term debt -- 125,000
Repayment of acquisition facilities -- (125,000)
Repayment of long-term debt (63) (63)
Debt issuance and acquisition costs -- (6,437)
Other -- (268)
---------------- ----------------
Net cash (used in) provided by financing activities (63) 157,207
---------------- ----------------
Increase in cash and cash equivalents 372 4,978
Cash and cash equivalents at beginning of period 3,201 1,388
---------------- ----------------
Cash and cash equivalents at end of period $ 3,573 $ 6,366
================ ================
Cash paid for interest $ 5,661 $ 1,242
================ ================
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</FN>
</TABLE>
<PAGE>
NATIONWIDE CREDIT, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, certain information and footnote
disclosures required by generally accepted accounting principles for
complete financial statements have been excluded. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. All
significant intercompany accounts and transactions have been eliminated in
the consolidation. The accompanying unaudited consolidated financial
statements should be read in conjunction with the audited consolidated
financial statements of the Company for the year ended December 31, 1998
included in Form 10K, as amended.
On December 31, 1997, NCI Acquisition Corporation (the "Buyer"), NCI Merger
Corporation ("Merger Sub"), Nationwide Credit, Inc. (the "Company"), First
Data Corporation (the "Seller") and its wholly owned subsidiary, First
Financial Management Corporation ("FFMC"), entered into an agreement and
Plan of merger (the "Merger Agreement") pursuant to which Merger Sub merged
with and into the Company, with the Company as surviving corporation and a
wholly owned subsidiary of the Buyer (the "Transaction"). The Transaction
was accounted for under the purchase method of accounting with the
consideration and related fees of the acquisition allocated to the assets
acquired and liabilities assumed based on their estimated fair values at
the date of the acquisition.
The acquisition and related fees were initially financed through borrowings
of $125.0 million against a $133.0 million senior credit facility (the
"Acquisition Facilities") and a contribution of $40.4 million of equity
capital (before related fees of $1.4 million).
Operating results for the three-month period ended March 31, 1999 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1999.
In June 1998, the Financial Accounting Standards Board issued statement of
Financial Accounting Standards No. 133 "Accounting for Derivative and
Hedging Activities" (SFAS 133). SFAS 133 requires companies to record
derivatives on the balance sheet as assets or liabilities at fair value. It
is effective for financial statements for fiscal years beginning after June
15, 1999. The Company is evaluating the impact of SFAS 133 on the Company's
future earnings and financial position, but does not expect it to be
material.
2. Nature of Operations
The Company is among the largest independent providers of accounts
receivable management services in the United States. The Company's client
base is comprised of companies located throughout the United States
primarily in the financial services, telecommunications, retail,
institutional and healthcare industries.
3. Long-Term Debt
As discussed in Note 6 of the Company's Form 10-K for the year ended
December 31, 1998, on March 17, 1999, the Company negotiated an amendment
to the Revolving Credit Facility that revises the cumulative EBITDA and
related ratio covenants to reflect the Company's revised EBITDA
expectations. The Company was in compliance with these revised covenants as
of March 31, 1999.
4. Commitments and Contingencies
The Company is involved in certain litigation arising in the ordinary
course of business. In the opinion of management, the ultimate resolution
of these matters will not have a material adverse effect on the Company's
consolidated financial position or results of operations.
5. Provision for Merger Costs, Employee Severance and Office Closure
In 1998, as a result of the acquisition of the Company and in connection
with the implementation of an operating improvement plan, the Company
accrued estimated costs of approximately $4.0 million associated with
closing certain offices and branches ($2.3 million), severance payments to
employees ($0.8 million), and relocation costs ($0.9 million).
Specifically, the company is closing and/or reducing branches which are not
operating at full capacity, or whose operations can be consolidated with
other branches.
In December 1998, the Company decided to relocate its corporate offices.
The Company has entered into a lease agreement for a new facility for these
offices. The Company recorded a charge of $1.6 million in 1998 which
represents the future rent obligations under the existing lease offset by
estimated sublease income less broker commissions. The Company expects to
vacate its current headquarters facility during the second quarter of 1999.
In March 1999, the Company terminated certain employees as part of a
reorganization and staff reduction. The Company recorded a charge of $0.2
million for employee severance.
The amounts remaining at March 31, 1999 from these accruals are as follows:
Office closure $ 2,914
Employee severance 684
Relocation 380
===============
$ 3,978
===============
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations-(first quarter of 1999 compared to first quarter of 1998)
Revenue. Total revenue decreased $2.6 million or 8.7% from $29.9 million for the
first quarter of 1998 to $27.3 for the first quarter of 1999. The decrease was
primarily the result of (i) a reduction in revenue from the Department of
Education ("DOE") and the General Services Administration ("GSA") of $3.6
million resulting from the reduction of contracts with the Company from four to
one, a requirement of the DOE, and a delay in new placements under the new GSA
contract, (ii) a decrease of $0.5 million revenue, primarily from lower
placements on gas credit cards, and (iii) a decrease in revenue from
telecommunications account placements of $1.8 million. These decreases were
partially offset by increases in revenue of $0.2 million from American Express,
$0.2 million from healthcare account placements, $0.8 million from outsourced
pre-chargeoff management services and $1.8 million from on-site services.
Expenses. Salaries and benefits expense increased $1.4 million or 8.2% to $18.4
million for the three months ended March 31, 1999 from $17.0 million for the
three months ended March 31, 1998. This increase is primarily the result of the
Company's service expansion which includes on-site call center staffing
and management services for a major telecommunications company.
Telecommunications expense decreased $0.5 million or 35.7% to $0.9 million for
the three months ended March 31, 1999 from $1.4 million for the same period in
1998. The decrease is primarily the result of lower negotiated long distance
rates and lower call volume.
Occupancy expense decreased $0.1 million or 9.1% to $1.0 million for the three
months ended March 31, 1999 from $1.1 million for the same period in 1998. The
company closed its Atlanta data center and consolidated these operations into
the Phoenix data center in May 1998 and closed the Denver facility in February
1999.
Other operating and administrative expense decreased $0.4 million or 10.8% to
$3.3 million for the three months ended March 31, 1999 from $3.7 million for the
same period in 1998. The decrease is the result of the continuation of the
Company's operating improvement plan.
Depreciation and amortization expense decreased $3.7 million or 60.7% to $2.4
million for the three months ended March 31, 1999 from $6.1 million for the same
period ended March 31, 1998. The decrease was primarily the result of the
amortization of the value of existing placements of $3.6 million for the three
months ended March 31, 1998, as compared to no amortization for the same period
in 1999. The value of existing placements of $14.5 million was amortized over 12
months in 1998.
Provision for Employee Severance and Office Closure: Provision for employee
severance and office closure for the three months ended March 31, 1999, was $0.2
million, all of which related to employee severance.
Operating Income. Operating income was $1.0 million for the three months ended
March 31, 1999, an increase of $0.5 million or 100.0% from $0.5 million for the
same period in 1998. This increase is primarily due to the decrease in
amortization expense of $3.7 million, a decrease in telecommunications expenses
of $0.4 million and other operating and administrative expenses of $0.4 million,
offset by a decrease in revenue of $2.6 million, and an increase in salaries and
benefits of $1.4 million.
Interest Expense. Interest expense relating to the Term Loan Facility and Senior
Notes was $3.1 million for the three months ended March 31, 1999 compared to
$4.1 million for the same period in 1998 due to the write-off of $1.1 million
related to the cost of interim financing of the Transaction in January 1998.
Extraordinary Loss. The extraordinary loss in the first quarter ended March 31,
1998 of $0.8 million represents the write-off of deferred debt issuance costs
related to interim financing of the Transaction.
Net Loss. The Company incurred a net loss for the three months ended March 31,
1999 of $2.2 million as compared to a net loss of $4.3 million in the same
period of 1998.
Liquidity and Capital Resources
Cash provided by operating activities was $0.6 million for the three months
ended March 31, 1999 as compared to $6.2 million for the three months ended
March 31, 1998, a decrease of $5.6 million primarily due to cash interest paid
of $5.7 million on the Senior Notes and the Term Loan Facility in the first
quarter of 1999.
Cash used in investing activities for the three months ended March 31, 1999 was
$0.2 million and $158.4 million for the three months ended March 31, 1998. The
Company's principal use of cash in investing activities during 1999 was for
capital expenditures, primarily for new computer and telecommunications
equipment. The Acquisition of $157.3 million in 1998 represents the purchase of
the Company (see Note 1).
Cash used in financing activities was $63,000 for the three months ended March
31, 1999 representing the required quarterly repayment of the seven-year term
loan facility. Cash provided by financing activities was $157.2 million for the
three months ended March 31, 1998, representing the funding of the Transaction.
Substantially all the agreements relating to the Company's outstanding
indebtedness contain covenants that impact the Company's liquidity and capital
resources, including financial covenants and restrictions on the incurrence of
indebtedness and liens and asset sales.
On March 17, 1999, the Company negotiated an amendment to the Revolving Credit
Facility that revises the cumulative EBITDA and related ratio covenants to
reflect the Company's revised EBITDA expectations. The Company was in compliance
with the revised covenants as of March 31, 1999.
The ability of the Company to meet its debt service obligations and to comply
with the restrictive and financial covenants contained in the Senior Credit
Facility and under the Notes will be dependent on the future operating and
financial performance of the Company, which will be subject in part to a number
of factors beyond the control of the Company, such as prevailing economic
conditions, interest rates and demand for credit collection services.
Management believes that, based on current levels of operations and anticipated
improvements in operating results, cash flows from operations and borrowings
available under the Senior Credit Facilities will be adequate to allow for
anticipated capital expenditures for the next several years, to fund working
capital requirements and to make required payments of principal and interest on
its debt for the next several years. However, if the Company is unable to
generate sufficient cash flows from operations in the future, it may be
necessary for the Company to refinance all or a portion of its debt or to obtain
additional financing, but there can be no assurance that the Company will be
able to effect such refinancing or obtain additional financing on commercially
reasonable terms or at all.
Income Taxes
The Company has not recorded any tax benefit on its loss before income taxes for
the three months ended March 31, 1999 and 1998 as it is not "more likely than
not" that the Company will be able to realize such benefits.
Year 2000
Until recently, computer programs were written to store only the digits of
date-related information in order to more efficiently handle and store data.
Thus, the programs were unable to properly distinguish between the year 1900 and
the year 2000. This is frequently referred to as the "Year 2000 Problem."
In 1997, the Company initiated a company-wide Year 2000 project based on a
methodology recommended by an outside consultant, with a dedicated Year 2000
Project Office and Coordinator. The Company has completed the process of
defining, assessing and converting, or replacing, various programs and hardware
to make them Year 2000 compatible. The Company is currently conducting formal
compliance testing of the renovated applications, which cover all sensitive time
periods (e.g., the weeks straddling December 1999 to January 2000, February 29,
2000, etc).
The total cost for the Year 2000 remediation is estimated at approximately $1.5
million, which includes $0.4 million for the purchase of new software that will
be capitalized and $1.1 million that will be expensed as incurred. The Company
incurred and expensed approximately $0.6 million for the year ended December 31,
1998 and approximately $0.2 million during the three months ended March 31,
1999, primarily for assessment of the Year 2000 issue, the development of a
modification plan and programming costs.
The Year 2000 Problem goes beyond the Company's internal computer systems and
requires coordination with clients, vendors, government entities and other third
parties to assure that their systems and related interfaces are compliant.
Accordingly, the Company has implemented an aggressive client outreach program
to analyze the data interfaces shared with customers, partners and suppliers and
to communicate specific plans for their needs. Clients sharing electronic
interfaces with the Company are currently being contacted and the company
expects such interfaces will be aligned by the end of the third quarter of 1999.
A vendor outreach program has also been implemented to identify critical systems
for supplied products and services used, and to analyze the risk to the Company
and its customers should the products or services fail. The targeted completion
date for this activity is June 30, 1999, with the last half of 1999 reserved for
auditing and testing activities. The procurement process was revised in early
1998 to prevent acquisition of non-compliant products. A new procedure is
currently being reviewed to ensure this process is effective.
The Company is also addressing the impact of Year 2000 on its non-information
technology systems, which include examination of each location to ensure
lighting, elevators, copiers and fax machines function properly. This portion of
the Year 2000 project is expected to be completed by the end of the third
quarter of 1999. Additionally, on-going internal and external communications
through monthly executive reviews and weekly project reviews ensure that
progress is monitored by senior management.
The Company recognizes the need for contingency plans in all aspects of the
project. Such plans are now being outlined, particularly with vendors and
clients, with a targeted completion date of June 30, 1999. As circumstances
change, these contingency plans will be adjusted throughout the last half of
1999.
The Company believes that with testing and communication with its clients,
vendors and employees, the Year 2000 problem will not pose significant
operational problems for its computer systems. However, if such testing and
analysis is not completed in a timely fashion or if the Company's clients or
significant suppliers do not successfully achieve Year 2000 compliance, the Year
2000 Problem could have a material impact on the operations of the Company
including a reduction in revenue and profit.
The costs of the project and the date on which the Company believes it will
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events, including
the continued availability of certain resources and other factors. However,
there can be no guarantee that these estimates will be achieved and actual
results could differ materially from those anticipated.
Forward-Looking Statements
This Form 10-Q and other communications, as well as oral statements made by
representatives of the Company, may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, the Company's outlook for future
periods, market forces within the industry, cost reduction strategies and their
results, planned capital expenditures, long-term objectives of management and
other statements of expectations concerning matters that are not historical
facts.
Predictions of future results contain a measure of uncertainty and, accordingly,
actual results could differ materially due to various factors. Factors that
could change forward-looking statements are, among others, changes in the
general economy, changes in demand for the Company's services and/or cyclicality
in the industries to which the Company's services are rendered, governmental
regulations and other unforeseen circumstances. A number of these factors are
discussed in this Form 10-Q and in the Company's annual report on Form 10-K for
the year ended December 31, 1998.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
<TABLE>
<CAPTION>
Long Term Debt
Non-Traded Instruments
As of March 31, 1999
(In $000's)
1999 2000 2001 2002 2003 Thereafter Total Fair Value
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Rate:
Term Loan Facility : $ 250 $ 250 $ 250 $ 250 $250 $17,500 $18,750 $18,750
$18 million 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
$.75 million 10.50% 10.50% 10.50% 10.50% 10.50% 10.50%
Revolving Credit Facility -- -- -- -- -- -- -- --
Fixed Rate:
Senior Notes due 2008: $ -- $ -- $ -- $ -- $ -- $100,000 $100,000 $83,000
$100 million @ 10.25% 10.25%
</TABLE>
In January 1998, the Company implemented a financing plan which included the
issuance of $100 million 10.25% Senior Notes due 2008 in a private placement.
The Company exchanged these notes for $100 million 10.25% Series A Senior Notes
due 2008 which are were registered under the Securities Act of 1933, as amended.
As part of the financing plan, the Company also entered into a credit agreement
(the "Credit Agreement") which provides for (1) a seven-year term loan facility
in the amount of $25 million (the "Term Loan"), and (ii) a six-year revolving
credit facility (the "Revolving Credit Facility") of $5 million.
Amounts outstanding under the Term Loan Facility and the Revolving Credit
Facility bear interest at the Company's option of either (A) the Base Rate plus
the Applicable Margin or (B) the Eurodollar Rate plus the Applicable Margin.
Interest payments are made quarterly for Base Rate loans. Interest payments on
Eurodollar loans are made on the earlier of their maturity date or 90 days
depending on their term. The table above presents the rates paid under variable
instruments at March 31, 1999. Changes in the Base Rate or Eurodollar Rate will
impact the actual interest rates paid by the Company.
The Company's primary market risk exposure with respect to these instruments is
that of interest rate risk. The Base Rate for any given day for the Term Loan
Facility and Revolving Credit Facility is equal to the greater of (i) the Prime
Rate in effect on such day, (ii) the Base CD Rate in effect on such day plus 1%,
and (iii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%.
The Company is vulnerable to changes in all of these rates.
PART II. OTHER INFORMATION
Item 1. None
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant, Nationwide Credit, Inc., has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
NATIONWIDE CREDIT, INC.
/s/ Michael Lord
- ------------------------------------------------------------
Michael Lord
Chief Financial Officer
Dated: May 7, 1999
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
None
</LEGEND>
<CIK> 0001059083
<NAME> Nationwide Credit, Inc.
<MULTIPLIER> 1,000
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
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