IMGCAP(1)]
After a modest year-over-year gain in the second quarter, Encore Capital Group Inc. yesterday reported a 200% increase in third-quarter net income.
The San Diego-based bad-debt buyer reported net income of $9 million for the third quarter ended Sept. 30, compared with $3 million in the same period a year ago. In July, Encore Capital reported a 6% increase in Q2 net income.
Encore Capital is the third-largest debt buyer in the U.S. with more than $240 million in revenue from purchased debt in 2008, according to research conducted by Collections & Credit Risk and CCR Newsline.
The company paid $77.7 million during the quarter to purchase bad-debt portfolios with a face value of $2.2 billion, according to the company's 10-Q filing with the U.S. Securities and Exchange Commission. In the year-ago period, Encore Capital paid $66.1 million to purchase portfolios with a face value of $1.8 billion.
Gross collections for the third quarter totaled $125.7 million, a 28.5% increase from $97.8 million a year ago. Excluding portfolio sales, collections during the quarter totaled $120.4 million, a 27.3% increase from $94.6 million a year earlier.
Encore Capital reported $76.4 million in revenue from receivable portfolios for the third quarter, a 22% increase compared with the $62.6 million in the same period of the prior year.
