Asset Acceptance Capital Corp., a Warren, Mich.-based debt buyer, reported Friday cash collections for the second quarter ended June 30 increased 5.9% compared to the year-ago period to $89.2 million.
Excluding collections on health care portfolios, which were sold in the third quarter of 2010, collections rose 7.9%.
Second quarter revenues totaled $54.7 million, an increase of $3.8 million compared to a year ago. Revenue on purchased receivables totaled $54.4 million during the quarter, up $3.8 million from the prior year. The company also reported net impairment reversals of $2 million on purchased receivables versus net impairment reversals of $1.1 million in Q2 2010.
Asset Acceptance invested $49.5 million in the quarter to purchase charged-off consumer debt portfolios with a face value of $1.6 billion, for a blended rate of 3.08% of face value. 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 $1.5 billion, for a blended rate of 3.24%. All purchase data is adjusted for buybacks.
Rion Needs, president and CEO at Asset Acceptance, said: “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.”
For the six-month period ended June 30, Asset Acceptance 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.
Total revenues in the first six months of 2011 were $105.1 million compared to $102.5 million in the prior year. Revenue on purchased receivables was $104.5 million during the first six months of 2011, an increase of $2.8 million from the prior year.
During the first half of this year, the company invested $95.9 million to purchase charged-off consumer debt portfolios with a face value of $2.8 billion, for a blended rate of 3.39% of face value. This compares to the prior-year six month period, when it invested $78.1 million to purchase consumer debt portfolios with a face value of $2.3 billion, representing a blended rate of 3.37%.
