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Asset Acceptance Capital Corp. Announces Second Quarter 2009 Results.

Article Excerpt
Reports Cash Collections of $87.3 Million, Operating Expenses of 51.6% of Cash Collections

WARREN, Mich., July 30 /PRNewswire-FirstCall/ -- Asset Acceptance Capital Corp. , a leading purchaser and collector of charged-off consumer debt, today announced results for the second quarter of 2009. The Company's second-quarter results included cash collections of $87.3 million and operating expenses of 51.6% of cash collections. The Company reported earnings of $0.03 per fully diluted share for the period.

Asset Acceptance reported cash collections of $87.3 million in the second quarter ended June 30, 2009, versus cash collections of $95.2 million in the year-ago period. For the six-month period ended June 30, 2009, the Company reported cash collections of $181.4 million compared to cash collections of $195.5 million in the first six months of 2008.

Total revenues were $49.1 million in the second quarter of 2009, compared to total revenues of $56.5 million in the second quarter of 2008. Total revenues in the first half of 2009 were $106.1 million versus $120.8 million in the first six months of 2008. Amortization of purchased receivables in the second quarter of 2009 was 44.1% of total cash collections versus 41.0% of total cash collections in the second quarter of 2008. For the first six months of 2009, amortization of purchased receivables was 41.8% of total cash collections versus 38.6% of total cash collections in the same period of last year. The Company reported a second quarter of 2009 net impairment charge of $6.8 million, versus a net impairment charge of $5.0 million in the prior year quarter. Net impairments for the first six months of 2009 totaled $10.3 million, versus $5.4 million for the first six months of 2008.

Net income for the quarter was $0.8 million, or $0.03 per fully diluted share, compared to net income of $2.1 million, or $0.07 per fully diluted share, in the second quarter of 2008. Net income for the first two quarters of 2009 was $5.4 million, or $0.18 per fully diluted share, compared to net income of $8.9 million, or $0.29 per fully diluted share, in the same period of 2008. Earnings Before Interest, Taxes, Depreciation and Amortization, including purchased receivable amortization ("Adjusted EBITDA"), decreased to $43.5 million in the second quarter of 2009, down 7.0% compared to the year-ago period. For the six-month period ended June 30, 2009, Adjusted EBITDA declined to $91.7 million, a decrease of 7.2% when compared to the same six-month period in 2008. Please refer to the table on page 3, which reconciles net income according to Generally Accepted Accounting Principles ("GAAP") to Adjusted EBITDA.

During the second quarter of 2009, the Company invested $20.0 million to purchase charged-off consumer debt portfolios with a face value of $727.9 million, for a blended rate of 2.74% of face value. This compares to the prior-year second quarter, when the Company invested $64.8 million to...

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