Asset Acceptance Reports Record Collections in Q1; Earnings, Revenue also Rise

Debt buyer Asset Acceptance Capital Corp. (NASDAQ: AACC) said Thursday that it collected more money in the first quarter of 2012 than in any previous quarter in the company’s history.

The Warren, Mich.-based ARM firm reported cash collections for the period of $101.1 million, a 10.8 percent increase from the same quarter a year ago. Total revenues increased 22.7 percent to $61.8 million.

Asset Acceptance reported net income of $5.4 million, or $0.18 per share, during the first quarter of 2012, compared to net income of $1.1 million, or $0.04 per share, in the first quarter of 2011.

Analysts, on average, had predicted the company’s first quarter 2012 earnings to be around $0.10 per share.

Adjusted Earnings Before Interest Taxes Depreciation and Amortization (Adjusted EBITDA) was $54.7 million for Q1 2012, a 16 percent increase from $47.2 million in the first quarter of 2011.

“Our first quarter performance built upon the momentum we saw during 2011,” said Rion Needs, President and CEO of Asset Acceptance. We continue to see improving trends in our business and our underlying performance metrics. While industry dynamics remain challenging, we are pleased with our start to 2012 and believe we are well positioned for continued operational improvements and growth.”

During the first quarter of 2012, the company said it invested $21.2 million to purchase charged-off consumer debt portfolios with a face value of $804.4 million, down from the $46.3 million it invested in the previous year period.

Cash collections in Q1 2012 from Asset Acceptance’s call center channel increased 13.5 percent to $58.7 million while the legal collection channel grew 7 percent to $42.4 million.

The company counted 480 full-time equivalent account representatives in the quarter, down from the 639 it reported a year ago.

Asset Acceptance also announced Thursday that it filed a registration statement on behalf of Chairman, Nathaniel F. Bradley IV, and related parties covering the resale of common shares he acquired in 2004, as part of Mr. Bradley’s current personal financial planning. Sales may be made from time to time by him in open market or in private transactions at prevailing or negotiated prices. The company will not receive any of the proceeds from these sales, it said.