Debt buyer Asset Acceptance Capital Corp., based in Warren, Mich., reported a drop in revenue and an uptick in cash collections for the first quarter ended March 31.
Revenue totaled $50.4 million, a decline of $1.2 million compared to the year-ago period. Revenue on purchased receivables totaled $50 million, down $1 million from a year ago.
Cash collections for the quarter rose to $91.3 million, up 2.3% from Q1 2010. Excluding collections on health care portfolios, which were sold in the third quarter of 2010, collections increased 4.4%.
The company reported net impairments of $1.1 million on purchased receivables versus net impairments of $0.1 million in the prior year period.
In the first quarter, Asset Acceptance invested $46.4 million to purchase charged-off consumer debt portfolios with a face value of more than $1.2 million, for a blended rate of 3.78%. This compares to the prior-year first quarter, when the company invested $29.6 million to buy portfolios with a face value of $818.6 million, representing a blended rate of 3.62% of face value.
Rion Needs, president and CEO, said: "We continue to see improving trends in our business, as we were able to sustain the positive momentum we generated at the end of 2010. We are increasingly more confident in the near- and long-term prospects for our business and look forward to further capitalizing on our initiatives to drive long-term growth."
Among the company’s Q3 2010 expenses was $1.7 million in charges related to a settlement with the Federal Trade Commission, which last spring alleged Asset Acceptance’s collection practices violated the Fair Debt Collection Practices Act, the Fair Credit Reporting Act and the Federal Trade Commission Act
