This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Asset Acceptance Capital Corp. Reports Second Quarter 2012 Results

Stocks in this article: AACC

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, 2012.

Second Quarter 2012 Financial Highlights

During the second quarter of 2012, the Company invested $58.9 million to purchase charged-off consumer debt portfolios with a face value of $1,985.5 million, for a blended rate of 2.97%. This compares to the prior-year second quarter, when the Company invested $49.3 million to purchase charged-off consumer debt portfolios with a face value of $1,598.4 million, for a blended rate of 3.08%. All purchase data is adjusted for buybacks. This quarter marks the Company’s highest purchasing quarter in four years.

Cash collections for the second quarter of 2012 increased 3.0% compared to the prior year period to $91.9 million.

Second quarter revenues were $58.7 million, an increase of 7.3% from the same period of the prior year. The Company reported net impairment reversals of $4.4 million versus net impairment reversals of $2.0 million in the prior year period.

Operating expenses were $48.4 million representing an increase of $2.9 million or 6.3% from the prior year. Operating expenses increased as a result of the Company’s continued investment in its legal collections channel and an increase in the associated up-front costs. Cost to collect was 52.7%, up 160 basis points from last year.

The Company reported net income of $3.7 million, or $0.12 per fully diluted share, during the second quarter of 2012, which matched the prior year amount.

Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“Adjusted EBITDA”) was $45.3 million, a 0.6% decline from $45.6 million in the second quarter of 2011.

Rion Needs, President and CEO of Asset Acceptance Capital Corp, commented, “We are pleased with our overall performance in the quarter. We achieved our objective of significant increased purchasing during the quarter, which resulted in near record levels for the company.” Mr. Needs continued, “We also continued to execute incremental investments in our legal channel that, while dilutive to our near term results, will provide meaningful benefits in future liquidation and related profits.”

First Six Months 2012 Financial Highlights

For the six-month period ended June 30, 2012, the Company reported cash collections of $193.0 million compared to cash collections of $180.5 million in the first six months of 2011, an increase of $12.5 million, or 7.0%.

1 of 8

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs