Debt buyer Encore Capital Group Inc. financial results for the second quarter showed gains in revenue, net income and gross collections, according to an SEC filing.
The company's total revenue jumped 20% to $115.8 million while net income rose to $14.8 million compared with $11.7 million in the year-ago period. Gross collections totaled $195.1 million, a 24% increase from Q2 2010.
Investment in bad-debt portfolios increased to $93.7 million, a 12.5% gain, mostly for charged-off credit card portfolios with a combined $3 billion face value.
“In the second quarter, Encore Capital’s disciplined approach to portfolio underwriting and management generated record results in terms of net income, gross collections, and cash flow,” said Brandon Black, Encore’s president and CEO.
“We also continued to invest in areas that will provide the Company with long-term strategic advantages. During the period, this included moving ahead with key new initiatives, including the formation of an internal legal channel, and the establishment of a near-shore call center to service our growing number of Spanish-speaking consumers.”
Encore noted that legal collections accounted for the largest portion of gross collections in the quarter at $98.1 million, up 44% from the same period in 2010. Encore’s own collection sites accounted for $84.5 million, an increase of 27% from a year ago. External collection agency outsourcing, however, fell 43% to $12.4 million.
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