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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number 000-26489
NOTIFICATION OF LATE FILING
(CHECK ONE): [ ] Form 10-K [ ] Form 20-F [ ] Form 11-K
[X] Form 10-Q [ ] Form N-SAR
For Period Ended: March 31, 2000
[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the Transition Period Ended:______________________________
NOTHING IN THIS FORM SHALL BE CONSTRUED TO IMPLY THAT THE COMMISSION HAS
VERIFIED ANY INFORMATION CONTAINED HEREIN.
If the notification relates to a portion of the filing checked above, identify
the item(s) to which the notification relates:
________________________________________________________________________________
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PART I -- REGISTRANT INFORMATION
MCM Capital Group, Inc.
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Full Name of Registrant
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Former Name if Applicable
4302 E. Broadway Road
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Address of Principal Executive Office (Street and Number)
Phoenix, Arizona 85040
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City, State and Zip Code
PART II -- RULES 12b-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed. (Check box if appropriate.)
(a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
(b) The subject annual report, semi-annual report, transition
report on Form 10-K, Form 20-F, 11-K or Form N-SAR, or portion
thereof, will be filed on or before the 15th calendar day
following the prescribed due date; or the subject quarterly
[X] report or transition report on Form 10-Q, or portion thereof
will be filed on or before the fifth calendar day following the
prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
PART III -- NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 20-F, 11-K, 10-Q,
N-SAR, or the transition report or portion thereof, could not be filed within
the prescribed period. (Attach Extra Sheets if Needed)
MCM Capital Group, Inc. (the "Company"), whose subsidiaries include Midland
Credit Management, Inc., could not complete the electronic filing of its
Quarterly Report on Form 10-Q for the three months ended March 31, 2000 (the
"Form 10-Q") by the prescribed filing date of May 15, 2000 without unreasonable
effort or expense as a result of the following:
The Company has historically reported income from receivable portfolios on the
level yield basis of accounting for all of its owned receivable portfolios.
Based upon revised collection curves developed during the financial statement
closing process for the three months ended March 31, 2000, it was determined
that the cost recovery method of accounting was the most appropriate method to
account for certain of its owned receivable portfolios which comprise
approximately one-half of the carrying value of the Company's total investment
in receivable portfolios. The revised collection curves were necessary for the
Company to prepare its financial statements. The underlying calculations
necessary for this change are significant to the Company for its actual results
for the three months ended March 31, 2000 and its forecasted results for the
next twelve months. As a result of the effort required to perform these
calculations, the Company could not, without unreasonable effort or expense,
timely complete its Form 10-Q.
PART IV--OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification:
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<S> <C> <C>
R. Brooks Sherman 602 707-0211
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) of
the Securities Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940 during the preceding 12 months or for such shorter
period that the registrant was required to file such report(s) been
filed? If the answer is no, identify report(s).
[X] Yes [ ] No
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(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject
report or portion thereof?
[X] Yes [ ] No
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If so, attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons
why a reasonable estimate of the results cannot be made.
See Annex A attached hereto.
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MCM CAPITAL GROUP, INC.
(Name of Registrant as Specified in Charter)
has caused this notification to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: May 16, 2000 By:/s/ R. Brooks Sherman
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R. Brooks Sherman
Executive Vice President and
Chief Financial Officer
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ANNEX A
For the reasons stated in Part III to this Form 12b-25, the Company's Form 10-Q
for the three months ended March 31, 2000 cannot be filed by the prescribed date
of May 15, 2000. The Company expects to report in its Form 10-Q for the three
months ended March 31, 2000 (i) revenues of $7.9 million in the 2000 period
compared with $4.2 million in the 1999 period, (ii) operating expenses of $7.7
million in the 2000 period compared with $5.4 million in the 1999 period, (iii)
other expenses of $3.9 million in the 2000 period compared with $0.1 million in
the 1999 period and (iv) net loss of $2.2 million in the 2000 period compared
with $0.8 million in the 1999 period.
The revenues are higher in the three months ended March 31, 2000 compared with
the same period in 1999 principally due to increases in income from receivable
portfolios and income from retained interest. The increase in operating expenses
in the three months ended March 31, 2000 compared with the same period in 1999
is due primarily to an increase in salaries, employee benefits and occupancy
costs as a result of the Company's growth of its Phoenix collection facility and
increased collector productivity which results in higher wages to collections
personnel. The increase in other expenses is due to an increase in interest
expense associated with higher average borrowings and a $2.1 million provision
for portfolio losses in the three months ended March 31, 2000 recorded as a
result of a decrease in forecasted collections on certain of the Company's
receivable portfolios. The increase in the net loss in the three months ended
March 31, 2000 compared to the same period in 1999 is due to the increase in
operating expenses, the increase in interest expense and the provision for
portfolio losses in the three months ended March 31, 2000 partially offset by
higher revenues in the three months ended March 31, 2000.
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