SquareTwo Financial Improves Financial Operating Structure

FOR IMMEDIATE RELEASE

SquareTwo Financial Improves Financial Operating Structure 

New loan terms expected to save company more than $2 million annually

DENVER — May 1, 2013 — SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the company has improved its capital structure with a two-year extension and lower interest rate on its revolving credit facility.

SquareTwo Financial secured nearly $500 million in financing in 2010 through the sale of Senior Secured Second Lien Notes and the revolving credit facility. The revolving credit facility has been extended by two years and will now mature in April of 2016. In addition, the interest rate has been reduced by one percent for all applicable margins and one half percent on the floors, which is expected to save the company more than $2 million per year.

“Since the time of our recapitalization three years ago, we have solidified our position as a leader in the asset recovery and management industry,” said Paul A. Larkins, SquareTwo Financial’s president and CEO. “Today SquareTwo Financial is a highly competitive, creative, firm that is operating efficiently, and delivering strong bottom line results. This tangible success is helping us further reduce the cost of doing business.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company and its national network of legal partners extend the Fair Square Promise to customers so they know they will be treated with dignity and fairness. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer                                                                                                Cori Keeton Pope

SquareTwo Financial                                                                                      Keeton Public Relations

303.713.2231                                                                                                  303-282-4981

rroth@squaretwofinancial.com                                                                                                                              cori@keetonpr.com

SquareTwo Financial Announces New Partner in Washington, D.C., Area and Search for New Partners in Cincinnati and St. Louis

FOR IMMEDIATE RELEASE

SQUARETWO FINANCIAL ANNOUNCES NEW PARTNER IN WASHINGTON, D.C., AREA AND SEARCH FOR NEW PARTNERS IN CINCINNATI AND ST. LOUIS

DENVER, Colo. – March 25, 2013 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced that Sterling Atlantic Law Group in Reston, Va., (operating in Maryland, Virginia, and Washington, D.C.) has been added to its Partner Network. The company also announced it is searching for additional partners in Cincinnati, St. Louis, and across the nation.

Sterling Atlantic Law Group is managed by a team of seasoned professionals from a wide variety of backgrounds. SquareTwo Financial provided Sterling Atlantic Law Group with extensive support, including office setup, talent acquisition, staffing, vendor setup and integration, and training to create a systemic and best-in-class program.

“We welcome Sterling Atlantic Law Group to our industry leading Partner Network and believe their addition to our organization underscores our commitment to excellence,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Sterling Atlantic’s owners and management team understand how to build a high-performing office that operates at the highest standards of leadership and professionalism. We look forward to working with them as our organization breaks away from the competition to become a leader in customer experience in a rapidly changing debt management and recovery industry.”

The Sterling Atlantic Law Group leadership team includes Joseph W. Bagan and Duane Weiss, who head operational affairs, Jason R. Hoover, who is general manager, and Scott B. Wheat, who is supervising attorney. Bagan and Weiss both bring more than 20 years of executive management experience to Sterling Atlantic Law Group. Bagan has launched and managed several companies, including founding Sharklet Technologies and RevGen Partners, and has led operations for Clear Channel Outdoor Americas, Adelphia Communications Corp. and AT&T Broadband. Weiss is an accomplished business professional, former president of the northwest division for Clear Channel Outdoor, and has held executive leadership positions at Sterling Development and Nabisco/Kraft Foods Group.

“After we became aware of SquareTwo Financial’s operational excellence and stellar reputation, we jumped at the opportunity to join the Partner Network,” Bagan said. “The company’s support has enabled us to ramp up quickly so we can pursue our operational and performance targets.”

“Sterling Atlantic Law Group intends to make a big impact as a SquareTwo Financial Partner,” said Weiss. “We’ve assembled an impressive management team, led by Jason Hoover, who has extensive management experience in the debt recovery industry. We look forward to bolstering the organization’s success in this transformative time in the industry.”

Hoover has more than a decade of experience in debt recovery, including serving as general manager for National Credit Services Inc. and vice president of operations for Sentry Credit Inc. Wheat has practiced law for more than a decade, including as litigations attorney/collections manager for Margolis, Pritzker, Epstein & Blatt, P.A.

SquareTwo Financial franchises, referred to as “Partners,” are independently owned law firms that work with consumers to remedy their outstanding debts. Franchise Partners license SquareTwo Financial’s proprietary technology and perform asset recovery work exclusively on the company’s behalf, with support from state-of-the-art technology and analytics, high-quality portfolios and drastically reduced overhead. Partner leadership typically consists of a senior business executive, an operational general manager, and a licensed managing attorney, who together oversee the implementation of SquareTwo’s business strategy, operations, and legal activities within the Partner offices.

Individuals interested in SquareTwo Financial’s Partner franchise initiatives, including opportunities in Cincinnati and St. Louis, should contact Bethany Parker at bparker@squaretwofinancial.com or 303-713-2036.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company and its national network of legal partners extend the Fair Square Promise to customers so they know they will be treated with dignity and fairness. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303-713-2231

rroth@squaretwofinancial.com  

Bethany Parker

Senior Vice President, Franchise Development

SquareTwo Financial

303-713-2036

bparker@squaretwofinancial.com

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Reports Strong Fourth Quarter and Full Year 2012 Results

DENVER, March 1, 2013 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the quarter and full year ended December 31, 2012.

“SquareTwo Financial produced a solid fourth quarter, however, we are especially pleased to report that 2012 was the company's strongest 12-month period in its history,” said president and CEO, Paul A. Larkins. "We attribute our continued success to our sustained focus on enhancing our operations and technology, our ongoing commitment to our customers, and the strategic investments we've made over the last several years to prepare for the current regulatory environment.”

For the year ended December 31, 2012:

• Cash proceeds on purchased debt were a record $608.0 million, a 29.2% increase over the $470.7 million in 2011.
• Investment in purchased debt was $272.8 million, to purchase $3.8 billion in face value of debt, compared to $267.7 million to purchase $3.9 billion in face value of debt in 2011. The total investment in purchased debt was a 1.9% increase from the prior year.
• Revenue recognized on purchased debt, net was $353.4 million, an increase of $126.3 million or 55.6% from the $227.1 million recognized in 2011.
• Costs to collect purchased debt including court costs were $235.9 million, or 40.8% of collections for the year. This was an increase of 61 basis points from 2011. Costs to collect excluding court costs were $197.0 million, or 34.1% of collections, which represented an increase of 34 basis points from 2011.
• EBITDA was $83.3 million for the year ended December 31, 2012, compared to $14.4 million in 2011.
• Net income was $22.6 million, compared to a net loss of $41.1 million in 2011.
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $348.3 million, a 31.1% increase over the $265.7 million in 2011.

For the quarter ended December 31, 2012:

• Cash proceeds on purchased debt were $140.4 million, a 15.3% increase over the $121.7 million in the fourth quarter of 2011. 
• Investment in purchased debt was $57.2 million, to purchase $0.6 billion in face value of debt, compared to $65.1 million to purchase $0.9 billion in face value of debt in the fourth quarter of 2011.  The total investment in purchased debt was a $7.9 million decrease from the fourth quarter of 2011.  
• Revenue recognized on purchased debt, net was $94.6 million, an increase of $38.9 million from the $55.7 million recognized in the fourth quarter of 2011. 
• Costs to collect purchased debt including court costs were $56.5 million, or 42.1% of collections for the quarter. This was an increase of 195 basis points from the fourth quarter of 2011. Costs to collect excluding court costs were $45.0 million, or 33.5% of collections, which represented an increase of 51 basis points from the fourth quarter of 2011.
• EBITDA was $27.9 million, compared to negative $1.9 million in the fourth quarter of 2011. 
• Net income was $12.7 million, compared to a net loss of $16.2 million in the fourth quarter of 2011. 
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $76.7 million, a 15.1% increase over the $66.6 million in the fourth quarter of 2011. 

The following table summarizes our results of operations for the full year and quarter ended December 31, 2012:

Additional Financial Information:

• In the year ended December 31, 2012, the Company reversed net non-cash valuation allowances of $7.7 million on its purchased debt assets. Comparatively, the Company recorded non-cash valuation allowance charges of $25.8 million in the year ended December 31, 2011.

• In the quarter ended December 31, 2012, the Company reversed net non-cash valuation allowances of $6.9 million on its purchased debt assets. Comparatively, the Company recorded non-cash valuation allowance charges of $5.6 million in the quarter ended December 31, 2011. 

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time/ 10:30 AM Eastern time to discuss our fourth quarter and full year 2012 results.  Please download our Year End 2012 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, www.squaretwofinancial.com.

Members of the public are invited to listen to the event.  To access the live telephone conference line, please dial 877-522-6079 for domestic access, and 706-643-6127 for international access.  Please reference confirmation ID #98172975 for the call. 

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company's website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K as of December 31, 2012.   Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and footnotes in our 10-K as of December 31, 2012.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners assists consumers and businesses in fulfilling their financial promises, helping individuals improve their credit profiles and become valuable participants in the economy.  Since 1994, SquareTwo Financial has helped nearly 2 million consumers and businesses make progress on their financial obligations.  SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

Media Contacts:

Rick Roth
Chief Marketing Officer SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

Kristin Dickey Featured in Human Resource Executive Online Article

By Mark McGraw

From Jack Benny and Lucille Ball to Tony Soprano and Marge Simpson, our culture's affection for television hasn't wavered in six-plus decades.

But oh, how the way we watch TV has changed.

From the VCR to video on-demand, technology has made history of the days when we had to catch our favorite shows on designated times and days. With the ability to instantly pull hundreds of shows and movies from extensive digital libraries, and simultaneously record and store hours' worth of programs, we can now watch it all at our convenience and (mostly) without commercials.

Elliott Masie, technology, business and learning consultant, and leader of Saratoga Springs, N.Y.-based think tank The Masie Center, sees parallels between this evolution and the way companies have begun to approach the delivery of on-the-job learning to the workforce. 

"I never watch anything live on television anymore. I've created a highly personalized experience for myself," says Masie. "For example, I was recently watching a recorded episode of Hawaii Five-O, and realized I just wasn't into it. So I pressed the stop button and decided I'd come back to it later."

Many employees crave the same sort of personalization and flexibility in how and when they receive on-the-job training and development opportunities, he says. And employers as well as vendors are taking note, as evidenced by the evolving content and delivery methods found in today's e-learning programs, and in the direction experts say online learning is likely to take in the future.

The conversation around moving away from "traditional" learning in favor of a more self-paced, self-directed approach has been going on for years. But such an approach to e-learning is now becoming necessary if today's employees are going to succeed. Millennials -- a generation accustomed to having information at their fingertips, when and where they need it -- are a growing, valuable segment of the workforce. And more and more employees are working outside the office and outside normal business hours. Now, armed with laptops, mobile devices and tablets, these workers have the capability and desire to access just the information they need, in digestible bites, whenever and wherever they need it.

Indeed, mobile devices continue to add a "new dimension" to e-learning programs, in terms of how and where employees receive training, says Curtis J. Bonk, professor of instructional systems technology at Indiana University and author of several books on e-learning in both academic and corporate settings.

The emergence of smartphones, tablet computers, netbooks, e-book readers, 128-GB flash memory sticks and other mobile devices leaves "little doubt mobile learning will make a huge impact in the next few years," says Bonk. "We're no longer tethered to a desk or strapped in a chair and a sealed-off room for training. Freedom to learn . . . is exactly what mobile learning offers employees -- freedom to learn while with your kids, freedom to learn while on a subway ride home from work, [and] freedom to learn at a time and place most convenient for you.

"The proliferation of mobile technologies, combined with their decreasing size, weight and cost, as well as rising bandwidth, features and access points, guarantee that the vast majority of employee training will have a mobile component by 2020," says Bonk.

In response, he adds, many organizations are already working to pull the "high-quality nuggets" of information from existing training programs to administer in smaller, more concise packages, available on an a la carte basis.

For many organizations, a leaner, more judicious approach to e-learning is borne at least partly out of necessity, says Elise Freedman, a Vienna, Va.-based senior consultant in the talent management group at Towers Watson.

"While training budgets have generally gone up in the last few years, companies still have to be very analytical about who needs what training when," says Freedman.

"It used to be that companies would buy an extensive e-learning library and make it available to everybody," she says. "But, when you talk about creating a customized program, it's not an inexpensive option. So companies are asking themselves, 'Is this the best way to deliver training information? And how do I make sure it's being utilized?' "

These types of questions are being asked at Premier Health Partners, where streamlining e-learning is a priority in 2013, says Phil Wagar, director of organizational effectiveness for the Dayton, Ohio-based health system, with more than 100 member locations and 14,000 employees.

E-learning has existed "in some form" at Premier for close to 20 years, says Wagar. But, for much of that time, e-learning was mostly "compartmentalized in the clinical- and technical-information-delivery realm. So we haven't historically used e-learning for soft skills or leadership development, for example."

Premier is now in the midst of changing that, with hopes of creating and delivering quicker and more readily available training tools to its workforce. "We're in a sort of beta phase" with Rainmaker Thinking's talkaboutthework.com web-based continuous learning platform, says Wagar. The program provides manager and employee training through a sequenced series of short, two-to-three minute video lessons, and includes accompanying conversation starters to encourage social-network-style feedback and collaboration.

This leaner approach allows employees to take just the information necessary at the moment, gain immediate input from peers and managers, and come back for more as needed, adds Masie. Take new-hire orientation training, for instance, he says.

"It's done for probably 300,000 or so people every day in the United States. And for most of them, it's a forgettable experience," he says. "Most of what they hear could be read in a PDF, and most would've rather done the bulk of their orientation a month later, when they were more familiar with the organization and could ask serious questions" through the course of their work.

Game On

At Wayne, Pa.-based Kenexa, an IBM company, employees' involvement with the organization's e-learning program starts on day one, says Melonia Da Gama, director of product marketing for learning.

"In terms of onboarding, there are a lot of forms to fill out and so on. But there's a lot of learning that goes into it," she says. "We want to make sure [new hires] understand the culture and the company's core message. A lot of that takes place in training, and it also takes place online."

Like many other companies, Kenexa has turned to gamification to get and keep employees engaged in the e-learning program. Internally, the organization uses the same social-learning-management system it offers its clients, incorporating various badge systems to recognize and reward employees for their contributions and accomplishments within the program.

For instance, the system is "based on collaboration, networking and sharing," says Da Gama, and employees receive points for posting questions in the system's "Ask an Expert" section. Based on keywords, the system automatically routes the question to internal experts who have been tagged to receive such queries. In addition, the system automatically tracks these questions and answers, which HR compiles for the company intranet FAQ section.

The system also ranks content, which enables HR to get "constant feedback on what's working and what's not," says Da Gama. "That's really powerful, and learning becomes more continual. That's really energizing. You're learning and sharing every day."

Freedom of Choice

At SquareTwo Financial, online learning is central to professional development, says Kristin Dickey, senior vice president of human resources with the Denver-based asset-recovery-management firm.

Dickey estimates that roughly 80 percent of SquareTwo's on-the-job training is currently done online, in response to evolving learning preferences and styles among its nearly 300 employees spread throughout more than 20 U.S. franchises.

An outgrowth of SquareTwo's increased focus on e-learning is its Peak Performance development program, in which employees follow individual learning paths and receive customized opportunities that include e-learning courses available 24/7 through SquareTwoUniversity, an educational program combining online, virtual classroom and instructor-led courses. The organization created the program in 2010, based largely on feedback solicited by HR, says Dickey.

"Employees were telling us they'd like to have better communication regarding their career progression," she says. "They wanted to know how they could learn and grow, and how to chart their own course, at their pace. So, instead of taking a prescriptive approach, we wanted to give our people freedom of choice to seek opportunities appropriate to their roles."

In addition to ongoing courses, employees also have access to just-in-time training relevant to their jobs. Managers, for example, can log into the e-learning module and access quick tips on writing effective self-appraisals, outlining goals, delivering feedback, setting goals for teams and other tasks that are more specific to managerial roles.

Still, "there's a host of opportunities available" for all employee groups, Dickey adds. "Some cut across all career paths and some are specific to certain groups. But each person can log in, see these opportunities and choose what fits for them."

Dickey and the HR team have customized the way e-learning opportunities are promoted as well, she adds.

For instance, manager-level learning events are publicized strictly among managers, she says, through email and intranet reminders. All e-learning courses are still publicized on the  SquareTwo intranet, Dickey adds, noting that employees also receive a monthly email message outlining upcoming e-learning courses and events.

What's Next?

Despite the workforce's increasing desire for self-directed and self-paced learning, getting many employees comfortable with new learning styles remains an obstacle to overcome, says Dickey.

"In the past, we -- as employees -- were used to having learning handed to us. We were told, 'Here's what you need to learn today.' Now, there's more freedom and flexibility; employees get to choose. I do think it's a shift, and the question becomes, 'How do you get employees to shift?' "

Adds Bonk: "We are seeing a shift from formal education with pre-structured, prescribed content to more self-directed learning. The problem is that most people haven't been trained to be self-directed learners."

Recognition and rewards will go a long way toward giving employees the incentive they need to adapt, he says.

For example, more companies may offer specific learner-related recognition -- announcements of program-completion rates, course enrollments, etc. -- and provide opportunities for those who have been recognized to become mentors or learning counselors for others within the organization.

And, as early adopters become mentors and the average employee becomes more familiar with a new learning approach, expect to see e-learning programs consisting of more user-generated content, in the form of videos, e-documents, podcasts and other resources, adds Masie.

Ultimately, HR leaders will be charged with exerting quality control as employee-generated content becomes more common, and ensuring that e-learning content is personalized, concise and to the point, he says.

"The content itself is getting shorter and more granular," says Masie. "In the old days, if you wanted to produce a training video, you'd shoot 90 minutes of material and maybe use 45.

"Now that video is maybe four minutes long," he says. "And, from an employee perspective, if they're bored with the content in those first few minutes, they're not going to stick around."

ColoradoBiz Magazine Publishes Article by Paul A. Larkins on Professional Development

Make the investment in professional development

It can really pay off

By Paul Larkins

Influential writer and management consultant Peter Drucker once said, “Knowledge has power. It controls access to opportunity and advancement.” It is also the foundation of innovation for many of today’s companies. We are all part of a rapidly changing global market that requires each of us to constantly learn new skills, new information and new technology in order to remain competitive and successful, which is why I believe an investment in people is the single most important investment business leaders can make.

Earlier this year, I explained in an article in this space that today’s companies should strive for peak performance on multiple levels: for the individuals working at the company, the teams they comprise, and the company as a whole. At SquareTwo Financial, we are deeply committed to career-long learning and education, and I firmly believe continual self-development is one of the key ways to achieve peak performance. The Peak Performance Development Program is a major strategic objective for our company, as I believe professional development should be for all of today’s companies – regardless of size, revenue or industry.

A successful employee development program should consist of four key components:

Customization for each employee
Just as no two people follow the exact same path in their careers, neither should they follow the exact same path in their professional development. Like a student pursues a major in college, employees should have the freedom and the options available to pursue a customized professional development path. For example, at SquareTwo Financial employees are placed into one of the following four professional development tracks:

• Individual Contributor – for employees who contribute to the organization and do not have direct reports;
• People Manager – for employees who have direct reports;
• Professional Contributor – for individual contributors in a role with a broad scope of work and are not currently responsible for the direct management of other employees;
• Emerging Leader – employees who have demonstrated leadership aptitudes in which the company wishes to invest for the purpose of longer-term, broad-scope growth.

It is the company’s responsibility to make a variety of options available, but it is imperative that each person is responsible for his or her own professional development. Professional development is an investment of time, energy and corporate resources, and is only as successful as the employee wants it to be.

Access to coursework
Developing leadership skills is often one of the first things people think of when it comes to professional development, but corporate leaders must always be up-to-date on industry skills and knowledge. A professional development program should include coursework that teaches that latest information on industry regulations, the changing competitive landscape of the business, new industry resources, relevant technology advancements and other specific information necessary to do the job at hand.

The best professional development programs are also free and convenient for employees. For example, offer in-person classes on-site during the workday and online courses employees can access anytime from anywhere they have an Internet connection.

Leadership development
In addition to coursework, hands-on leadership development is an essential part of any professional development program. This can include increased access to the company’s leadership team, mentor programs, networking, opportunities to attend professional development seminars or conferences, and other opportunities to build the skills needed to effectively manage people.

Clearly defined objectives
Like any corporate initiative, every professional development series should have clearly defined goals and objectives for each participant. For example, SquareTwo Financial’s “Inspirational Leadership Series” is a six-month leadership program designed to help handpicked employees develop the leadership skills needed to drive the company’s growth and long-term success. The objectives of this program include:

• Building a clear, collective understanding of the leadership requirements and expectations needed for company success
• Increasing self-awareness and building strong understanding of the components of emotional and social intelligence
• Learning and applying a framework for leading innovation
• Building a set of practical skills to drive culture change and engage and inspire the workforce
• Developing strong, collaborative relationships with a set of colleagues from across the company
• Increasing personal effectiveness in leading teams and driving engagement and performance
• Addressing a company-wide leadership challenge or opportunity sponsored by the executive team

Every investment takes time to show a return, but executives that follow these guidelines are likely to find the investment in developing people is one of the best investments you can make.

The Law Office of Kevin Z. Shine Named One of the Best Places to Work in Collections for 2012 by InsideARM

insideARM.com announced the winners of the fifth annual Best Places to Work in Collections. This award program is designed to identify, recognize, and honor the best places of employment in the accounts receivable management (ARM) industry, and was created and facilitated by insideARM.com and Best Companies Group.

“We are thrilled to shine the light on companies doing things right,” said Stephanie Eidelman, President & Publisher of insideARM.com. “Maintaining a great workplace is a challenge in any industry; in collections it can be particularly difficult. For employees, having a job is critical — but having a job where one feels valued and engaged is far more powerful, productive, and lasting. This, of course, pays dividends to the company as well.”

Companies from across the country entered the two-part survey process to determine the Best Places to Work in Collections 2012. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems, and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final rankings.

“We sincerely thank all of the ARM firms that participated in the program,” said Eidelman. “They underwent a rigorous evaluation process, ensuring that the winning companies are truly succeeding in their efforts to provide a challenging, satisfying, and motivating work environment for their employees.”

The 2012 Best Places to Work in Collections list is made up of 31 companies divided into three size categories: Small (15-74 employees), Medium (75-249 employees) and Large (250+ employees). A ranked list, complete with profiles of all of the winners, will be released in early December on insideARM.com. But for now, we are releasing an alphabetical list of all of the companies that made the cut.

2012 Best Places to Work in Collections (alphabetical order, no ranking):

• Access Receivables – Towson, Md.

• Account Recovery Specialists, Inc. – Wichita, Kan.

• Alliance Collection Service, Inc. – Tupelo, Miss.

• Allied Business Services, Inc. – Zeeland, Mich.

• American Profit Recovery, Inc. – Marlborough, Mass.

• Americollect Inc. – Manitowoc, Wis.

• Capio Partners, LLC – Sherman, Texas

• Centralized Business Solutions Company – North Canton, Ohio

• Collection Technology, Inc. – Monterey Park, Calif.

• Conrad Credit Corporation – Escondido, Calif.

• ConServe – Fairport, N.Y.

• Credit Management Services, Inc. – Lincoln, Neb.

• DECA Financial Services, LLC – Fishers, Ind.

• F.H.Cann and Associates Inc. (FHC) – North Andover, Mass.

• GB Collects – West Berlin, N.J.

• General Service Bureau/Early Out Services – Omaha, Neb.

• Healthcare Receivables Group – Knoxville, Tenn.

• Hunter Warfield – Tampa, Fla.

• Investment Retrievers, Inc. – El Dorado Hills, Calif.

• J&L Teamworks – Lodi, Calif.

• KeyBridge Medical Revenue Management – Lima, Ohio

• NPAS (a Subsidiary of Parallon) – Louisville, Ky.

• Phillips & Cohen Associates, Ltd. – Wilmington, Del.

• Professional Account Services, Inc. – Brentwood, Tenn.

• Professional Finance Company, Inc. – Greeley, Colo.

• Receivable Recovery Partners LLC – Indianapolis

• RMB Inc. – Knoxville, Tenn.

• Sage Capital Recovery – Cherry Hill, N.J.

• The Law Office of Kevin Z. Shine, PLLC – East Amherst, N.Y.

• Tucker, Albin and Associates, Incorporated – Richardson, Texas

• Williams & Fudge, Inc. – Rock Hill, S.C.

This article can also be found on the insideARM website.

Smart Business Florida Online Publishes Article by Paul A. Larkins on How To Achieve Peak Performance

Achieve Peak Performance

September 1st 2012 by Paul A. Larkins

Every organization has a culture, whether it is purposefully created or not. A great culture, when combined with great operations, contributes to a healthy, productive work environment that spurs employees to reach their peak performance.

Culture is multifaceted. It is unique to each organization and grown organically, which makes it difficult to define. That said, culture is best described as the personality, character and soul of a company. It includes the concrete aspects of work life, such as compensation, benefits and career development, as well as the non-concrete characteristics formed through employee and leadership attitudes, behaviors and values.

Culture is also an extension of your brand and reputation, which means it impacts all your stakeholders, whether clients, partners, investors or the public.

Unfortunately, some companies discover the important role of culture only after they’ve had a crisis, whether a disgruntled employee, product failure or financial misstep. A company that allows operational achievement to rule the day can quickly lose sight of the importance of building strong culture. While operations might determine what goals must be achieved, company culture defines how those goals are met, and to what degree of success.

Recipe for a strong culture

The secret to creating a strong company culture is two-fold: equal parts tightly-knit community and recruitment and retention of a team of A players who focus on the what and the how of peak performance achievement. Top performers are driven, ambitious, innovative and hardworking, and they typically excel at working as a team toward a common goal.

Building a strong culture doesn’t happen overnight. It is an active process that is the responsibility of every employee. Culture cannot be “handed down” from the top, although it is leadership’s responsibility to create an environment for culture to flourish.

For a strong culture to take root, management must provide employees with the tools they need to excel — from health insurance benefits and fair compensation plans to the right technology and resources to do their jobs.

The company also needs to nurture a healthy cultural environment that inspires participation and engagement from the entire workforce. This includes building a work community that inspires camaraderie between colleagues and helps employees feel eager to come to work each morning. In such an environment, employees are working under the best possible circumstances and motivated toward peak performance as individuals and as an organization as a whole.

Putting values into action

Once a company has the plan in place for strengthening its culture, the next step is to define company values and put them into action. The values of SquareTwo Financial are focus, alignment, accountability, integrity and trust. Here’s what it takes to transform those values words into daily practice.

Alignment

Every company operates as an interdependent community where it is in everyone’s best interest to help colleagues succeed. The finance and HR departments may not seem to have much in common when, in fact, employees from both departments are looking beyond their specific roles to advance a common company purpose.

Accountability

Employees are encouraged to evaluate their own actions and their consequences, and are rewarded for being action-oriented, results-driven and passionate. Top-performing companies don’t overlook accountability. Instead, they are deeply obligated to excellence, with employees expected to bring their A game to work every day.

Integrity and trust

Character is essential to long-term success, personally and professionally. Sound moral and ethical principles are part of culture; they are traits that hiring managers look for when recruiting. Employees are encouraged to — and recognized for — always acting in the company’s best interest. They also strive to build strong, meaningful relationships with each other, partners, clients and other stakeholders.

Focus

All employees are focused on achieving individual goals as well as the company’s strategic objectives. Employees have a deep understanding of how they fit into the broader organization. And as a result, they are constantly evaluating how to better achieve their goals, and goals of their department and the company.

Paul A. Larkins is president and CEO of SquareTwo Financial, a leader in the $100 billion asset recovery and management industry that along with its network of legal partners employs about 2,000 people in North America, including 160 in the state of Florida. For more information, email contact@squaretwofinancial.com or call (303) 296-3345

Originally published by www.sbnonline.com

SquareTwo Financial Donates $10,000 to Colorado Red Cross Wildfire Relief Efforts

SquareTwo Financial and the company’s insurance broker match donations in program spearheaded by employees

DENVER, Colo. – <DATE>, 2012 –SquareTwoFinancial, a leader in the $100 billion asset recovery and management industry, today announced a $10,000 donation to the Colorado Red Cross in a fundraising effort to aid wildfire victims spearheaded by the company’s employees.

SquareTwo Financial employees teamed up to start an online donation campaign with all donations going to the Colorado Red Cross wildfire relief effort. As the initiative gained momentum, both SquareTwo Financial and IMA, the company’s insurance broker, agreed to match employee donations up to $10,000.

In addition to spearheading the donation effort, company employees also created a poignant video about the importance of lending a helping hand to fellow Coloradoans impacted by the recent wildfires. The video is gaining viral attention and has spurred other Denver-area companies to establish similar donation programs.

“We go out of our way to hire only A-players, and its initiatives like this that reinforce why that’s such an important priority for our company,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Yes, these employees are good at their jobs; but more importantly, they’re good neighbors, good friends and good people. I’m proud to make this donation to the Colorado Red Cross on behalf of our employees and hope we can help make a small dent in the wildfire recovery efforts.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial CFO, Heath Sampson, Profiled in the Denver Business Journal

SquareTwo's Chief Financial Officer, Heath Sampson, was profiled and interviewed by the Denver Business Journal as a local financial leader. In the interview, Heath shares his thoughts on the evolving role of the CFO in the "new normal" economy. Click here to read the full interview.

ColoradoBiz Magazine Publishes Article by Paul A. Larkins on How To Achieve Peak Performance at All Levels of a Company

Achieving peak performance

How people, teams and companies do it

By Paul Larkins

In last month's article, Culture: The soul of your company, I talked about the importance of developing and nurturing a strong corporate culture. In fact, a great corporate culture combined with operational excellence is the secret to helping employees achieve peak performance day in and day out.

Today's companies should strive for peak performance on multiple levels: for the individuals working at the company, the teams they comprise, and the company as a whole. Once a company has a plan in place for strengthening the company's culture, it's time to put those values into action to help your company thrive over the coming months and years.

Focus
To achieve peak performance, every employee at the company should be laser-focused on achieving individual goals and the company's strategic objectives. It's important for all employees to have a deep understanding of how they fit into the broader organization, and to be constantly evaluating how to better achieve personal goals while supporting their department and the company.

This type of focus needs to come from the top down, and is particularly important for managers and the executive leadership team. These key players within the organization must both understand their own role and personal goals, while also ensuring their teams - and the individuals that comprise those teams - understand how they fit into the bigger picture and have a precise set of goals they're trying to accomplish.

Alignment
It is important to remember that every company operates as an interdependent community, and it is in everyone's best interest to help colleagues succeed. Although the HR and IT departments may not seem to have much in common, or Finance and Marketing don't appear to have the same goals, in fact everyone at the company should look beyond their specific role to advance the common purpose: the company's strategic objectives.

Accountability
In order to help individuals, teams and the company achieve peak performance, it is imperative that there is a company-wide, intrinsic commitment to achieving results. Employees should be encouraged to evaluate their own actions and their consequences, and should be rewarded for being action-oriented, results-driven and passionate.

Accountability is a commonly overlooked component of corporate culture and getting the best performance out of employees. In top-performing companies, a deep obligation to excellence is part of the company's culture, and employees are expected to bring their "A game" to work everyday.

Integrity & Trust
As simple as it sounds, having a solid character is essential to long-term success, both personally and professionally. Sound moral and ethical principles should be part of the company's culture and should be traits hiring managers look for during the recruiting process.

Employees should be encouraged to - and recognized for - always acting in the best interest of the company and building strong, meaningful relationships with each other, partners, clients and others.

Once every employee understands and identifies with the company's core values and strategic priorities, those values can serve as guideposts to helping everyone - individuals, teams and the company - achieve peak performance.

Paul A. Larkins is president and CEO of SquareTwo Financial (www.squaretwofinancial.com ), a leader in the $100 billion asset recovery and management industry. He has more than 25 years of experience in the financial services industry and was named a finalist in the 2011 ColoradoBiz CEO of the Year mid-sized company category. He can be reached at 303-296-3345.

ColoradoBiz Magazine Publishes Article by Paul A. Larkins on the Importance of a Strong Company Culture

Culture: The soul of your company
Nurturing it should be a priority
By Paul Larkins

The start of a new year is a time of reflection for a lot of individuals, but it is also a good time to evaluate whether the culture of your company will help you be more successful over the months and years ahead. Although intangibles like creating and maintaining a strong corporate culture and helping employees achieve peak performance often fall by the wayside at busy companies, the truth is, every company has a culture; shaping and nurturing it should be a priority.

Culture: The Soul Of The Company

Culture is more than just a buzzword used in employee satisfaction surveys; it is the multifaceted personality, soul and character of a company. A company's culture includes concrete aspects of work life, such as compensation, benefits and career development, as well as less tangible aspects like the attitudes, values and behaviors of employees.

So why is culture important? Because together with great operations, a great culture is what contributes to a happy, healthy work environment and helps employees throughout the entire organization reach their peak performance. Importantly, a company's culture is also an extension of its brand and reputation, and it impacts how clients, partners, investors and other stakeholders perceive the company.

Recipe For Strong Culture
The secret to developing a strong corporate culture is two-fold, equal parts tight-knit community and employing a team of "A" players. Establishing a close community of colleagues creates a sense of camaraderie and belonging and is vital to employees feeling eager to go to work each morning. At the same time, top performers are driven, ambitious, innovating and hard working, and typically excel at working together strategically toward a common goal.

Great cultures are also made up of diverse individuals with different viewpoints, experiences and talents. In fact, recent studies have shown that diversity inspires innovation, drives productivity and increases creativity, all of which help contribute to a strong corporate culture.

Culture: How Companies Get Things Done
Every organization has a culture, whether or not it is created on purpose. Too often, companies are so focused on operational excellence - what they achieve, they lose sight of cultural excellence, or how they achieve it. Because culture defines how employees think, act, work together and what people perceive their roles to be, in essence it determines how people get work done. Ultimately, great culture combined with great operations is the key to corporate success.

Building a strong culture isn't easy, and it doesn't happen overnight. Developing a corporate culture is an active process that is the responsibility of every employee. The culture of the company cannot be "handed down" from the top, it must be developed with the participation and engagement of the entire workforce. That said, without strong endorsement by the organization's leadership a culture cannot survive and thrive.

At the same time, one of the most important aspects of a strong culture is a great work environment. It is the responsibility of the management team to provide employees with the tools needed - from health insurance benefits and fair compensation plans to the right technology and resources to do the job at hand.

A company's values aren't just words to recite, but principles to live by that are deeply ingrained in everything everyone associated with the organization does. Once every individual understands and identifies with the company's values and strategic priorities, you're well on your way to having values that serve as guideposts to achieving peak performance, both for individuals and for the company as a whole.

Paul A. Larkins is president and CEO of SquareTwo Financial (www.squaretwofinancial.com ), a leader in the $100 billion asset recovery and management industry. He has more than 25 years of experience in the financial services industry and was named a finalist in the 2011 ColoradoBiz CEO of the Year mid-sized company category. He can be reached at 303-296-3345.

Paul A. Larkins, President and CEO of SquareTwo Financial, Named CEO of the Year Finalist by ColoradoBiz Magazine

CEO of the Year: Medium Company Finalists
Paul Larkins, president and CEO, SquareTwo Financial

SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, uses award-winning technology to create effective ways for companies and consumers to resolve their debt.

Paul Larkins has more than 25 years experience in the financial services industry. Before joining SquareTwo, he served as president and CEO of Key National Finance.

Under Larkins’ leadership in 2011, SquareTwo has a new business model, nearly half a billion dollars in new capital and 50 new employees. The company also became a publicly reporting entity after completeing a $490 million recapitalization package
“I believe the area where I have been able to enhance value involved forming and focusing an outstanding leadership team,” Larkins said. “We have brought together a very strong and committed leadership team to work collaboratively building our values-based culture and executing against our strategic initiatives day in and day out. Additionally, I have provided this executive team with the resources required to operate optimally. My Scorecard for measuring the effectiveness of our team involves not only the demonstrable evidence of our culture expanding, but most importantly, our bottom-line financial results.”

To read the entire article, click here.

Paul A. Larkins, President and CEO, Gives Insights Into Economic Outlook for Denver Business Journal

As we approach the final quarter of 2011, the Denver Business Journal asked top executives in metro Denver to share their insights about the future of their industries:

Q. Has your business met your performance expectations thus far for the year?

A. Through the first two quarters of 2011, we have exceeded our planned expectations.

Last year, as a part of a comprehensive multiyear plan, we recapitalized the company, enabling us to invest in people, advanced technologies and a vastly improved infrastructure. This year we are aggressively executing against our plans, and I like what I see in terms of results.

That said, like all businesses, we’re looking forward to seeing improvements in the job market, the housing market and the overall U.S. economy.

Q. What is your business doing to attract new clients or customers?

A. The majority of our business comes from banks and commercial finance companies, so we remain laser-focused on ensuring that SquareTwo Financial remains well known by the banking community.

For starters, banks have to be sure they’re working with financially secure, trustworthy companies, so we’ve put a real spotlight on our financial performance and operating stability.

Both Moody’s and S&P have evaluated our company and provided us ratings, and we achieved SAS 70 compliance for our technology platform, both of which are strong testaments to our security and financial strength.

We’ve also made significant investments in both business development and marketing, and we are continually improving our technology infrastructure, all of which is helping us attract new clients and grow our relationships with existing ones.

Q. Do you have any plans for hiring during the final quarter of 2011 or moving into 2012?

A. We currently expect to hire between 25 and 50 people over the next six months.

Additionally we are progressing nicely with our in-house University, which allows our current employees the opportunity to advance within their careers at SquareTwo Financial.

Q. In general, what changes do you foresee in your industry by this time nextyear?

A. Unfortunately, we anticipate that the economy will continue to struggle over the next year.

For us, that means banks and other creditors will continue to look to companies like SquareTwo Financial to help generate revenue and liquidate debt.

However, with a struggling job market, soft housing market and overall poor economy, it’s increasingly difficult for many people to make ends meet, let alone pay off debt.

We are currently building our business model anticipating slow growth where our operational excellence will allow us to continue expanding our bottom line.

Thomas Good, SquareTwo Financial General Counsel, Named Best Corporate Counsel Finalist by Denver Business Journal

Thomas Good, SquareTwo Financial General Counsel and Corporate Secretary, was named Best Corporate Counsel Finalist by the Denver Business Journal in the Private Company category. In addition to his responsibilities as General Counsel, Good is actively involved in his local community as a regular Sunday school teacher to 6 and 7 year olds, and an author of children's books.  In 2010, he published his first novel,  "West to the Sun," about one family's adventures on the Oregon Trail.  During his time at SquareTwo Financial, Good has acted as a trusted business advisor.  Key accomplishments include creating and managing SquareTwo's corporate governance structure, negotiating and closing strategic acquisitions, and playing a significant role in the company's successful completion of a $475 million financing package.

Thomas Good named Finalist

Thomas Good
Title: General counsel and corporate secretary
Company: SquareTwo Financial
Location: Denver
Phone: 303-296-3345
Website: www.squaretwofinancial.com

Thomas Good brought more than 25 years of experience in the commercial and consumer finance industry to Square Two in 2006. He was hired away from Michigan’s Asset Acceptance Capital Corp. (Nasdaq: AACC), an asset-recovery firm based in Michigan.

Before moving to Colorado, Good worked at General Electric (Nasdaq: GEC), John Deere Credit and Michigan National Bank. He holds a bachelor’s degree in business administration and a juris doctorate, both from the University of Michigan.

SquareTwo CFO, Heath Sampson, Recognized by University of Denver's Daniels Business Review

Heath Sampson, Chief Financial Officer at SquareTwo Financial, was spotlighted in the 2011 Spring edition of the Daniels Business Review for his accomplishments in the Denver business community. The Daniels Business Review is a bi-yearly publication published by the Daniels College of Business at the University of Denver. To read the article, please click here.

Brian Tuite, EVP and Chief Business Development Officer, Details Benefits of Selling Charged-Off Debt in Today's Economy for American Banker

Brian Tuite, Executive Vice President and Chief Business Development Officer, writes "Good Time To Unload Charged-Off Consumer Debt" for American Banker, the leading information resource serving the banking and financial services community.

Brian Tuite, EVP and Chief Business Development Officer, Shares What to Look For in a Debt-Buying Partner in Commercial Lending Review

Brian Tuite, Executive Vice President and Chief Business Development Officer, writes an overview of debt sales for Commercial Lending Review, outlining what to look for in a debt-buying partner.

To read the article, please click here.

SquareTwo Financial's Success Profiled by Denver Post

The Denver Post profiles SquareTwo Financial’s success and cutting-edge business model.  To read the article, please click here.

Brian Tuite, EVP and Chief Business Development Officer, Shares What to Expect When Selling Distressed Assets in ColoradoBiz (Part II)

September 10, 2010

Brian Tuite, Executive Vice President and Chief Business Development Officer, writes for ColoradoBiz about how to pick a debt buyer and what to expect when selling distressed assets.

To read the article, please click here.

SquareTwo Moves Well Beyond Square One

June 4, 2010

The Denver Business Journal interviews Paul Larkins, President and Chief Executive Officer, about SquareTwo Financial's recent developments and successes.

To read the entire article, please click here.

SquareTwo Financial Continues the Holiday Tradition of Supporting The Arc of Aurora

For the past five years, SquareTwo Financial employees have donated gifts to the families of The Arc of Aurora as part of its Holiday Project. This year is no different. The company is proud to sponsor five families this holiday season.

Relying solely on the generous donations of individuals and companies, The Arc of Aurora Holiday Project helps literally hundreds of children and adults with developmental disabilities to celebrate spectacular holidays with their families

In the weeks leading up to the holiday season, SquareTwo proudly displays a garland wreath with gift tags at its offices. Each gift tag identifies a specific gift item needed by a family. Employees can take one or more tags, and purchase the gift for a sponsored family. Cash donations are also collected as part of the program.

Each year the gift pile grows larger as employees catch the holiday spirit of giving. It’s a proud day when The Arc of Aurora picks up the bounty of wrapped gifts, ready to bring holiday cheer to the sponsored families.

Over the years, SquareTwo has donated thousands of dollars in gifts and cash to The Arc of Aurora.

For information about The Arc of Aurora, visit http://www.thearcofaurora.org/.  The Arc of Aurora provides individual advocacy services for children and adults with intellectual developmental disabilities who live in Aurora. The Arc of Aurora also provides information and referral services, public policy support, community education and more. It is a local chapter of The Arc of Colorado and The Arc of the United States.