Asset Acceptance Capital Corp., a Warren, Mich.-based debt buyer, posted a better-than-expected quarterly profit for the second quarter ended June 30, helped by growth in cash collections, the company announced Monday.
Revenue rose approximately 7% to $58.7 million. Net income remained flat in comparison with the year-ago quarter at $3.7 million, or 12 cents per share. Cash collections for the second quarter rose 3% to $91.9 million.
The company invested $58.9 million in the second quarter to purchase debt portfolios with a face value of $1.99 billion, up from the $49.3 million it spent in the year-ago quarter. The company noted that it was its most active quarter for debt buying since 2008.
The company’s call center collections business accounted for $48.8 million in cash collections in the second quarter, flat from the year-ago period. The call center business includes account forwarding to third-party collection agencies and an offshore servicer in India.
Asset Acceptance's legal collections channel brought in $43 million in the most recent period, an approximate 5% increase from last year.
