Asset Acceptance Capital Corp. (NASDAQ: AACC), a leading purchaser and collector of charged-off consumer debt, today reported results for the quarter ended June 30, 2011.
Second Quarter 2011 Financial Highlights:
Cash collections for the second quarter of 2011 increased 5.9% compared to the prior year period to $89.2 million. Excluding collections on healthcare portfolios, which were sold in the third quarter of 2010, collections increased 7.9%.
Second quarter revenues were $54.7 million, an increase of $3.8 million compared to the prior year period. Revenue on purchased receivables was $54.4 million during the quarter, an increase of $3.8 million from the prior year. The Company reported net impairment reversals of $2.0 million on purchased receivables versus net impairment reversals of $1.1 million in the prior year period.Operating expenses were $45.5 million or 51.1% of cash collections, a decline of $1.3 million or 2.7% and an improvement of 450 basis points as a percentage of cash collections when compared to the year earlier period. The Company reported net income of $3.7 million, or $0.12 per fully diluted share, during the second quarter of 2011, compared to net income of $0.8 million, or $0.03 per fully diluted share, in the second quarter of 2010. Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“Adjusted EBITDA”) was $45.6 million, a 15.4% increase from $39.5 million in the second quarter of 2010. During the second quarter of 2011, the Company invested $49.5 million to purchase charged-off consumer debt portfolios with a face value of $1,604.3 million, for a blended rate of 3.08%. This compares to the prior-year second quarter, when the Company invested $48.4 million to purchase consumer debt portfolios with a face value of $1,495.3 million, representing a blended rate of 3.24% of face value. All purchase data is adjusted for buybacks. Rion Needs, President and CEO of Asset Acceptance Capital Corp., commented: “Our successful second quarter results showcase the full benefits of our cost savings actions taken during the second half of 2010, as well as improving trends we are seeing in our business. While the second quarter is one of our seasonally strongest period of the year, we remain confident in the near-and long-term prospects for our business and look forward to further refining our business strategy to drive continued operational and financial improvement.” First Six Months 2011 Financial Highlights For the six-month period ended June 30, 2011, the Company reported cash collections of $180.5 million compared to cash collections of $173.4 million in the first six months of 2010, an increase of 4.1%. Excluding collections on healthcare portfolios, which were sold in the third quarter of 2010, collections increased 6.1% for the first six months of 2011.