Asset Acceptance Capital cash collections increase 2.6%.
BANKING AND CREDIT NEWS-April 30, 2013-Asset Acceptance Capital cash collections increase 2.6%(C)2013 M2 COMMUNICATIONS http://www.m2.com
30 April 2013 -- Asset Acceptance Capital Corp. (NASDAQ: AACC) reported cash collections for the first quarter of 2013 increased 2.6% compared to the same period of the prior year, to USD103.8m.
First quarter revenues were USD55.2m, a decrease of 10.7% from the same period of the prior year. The company reported net impairments on purchased receivables of USD0.2m, which decreased revenues for the quarter, versus net impairment reversals of USD4.5m in the prior year period.
Operating expenses were USD47.0m, a decrease of USD1.4m compared to the prior year period. Results reflected continued investment in the company's legal channel and an increase in related up-front costs ahead of associated collections. Legal investments increased to USD8.0m during the quarter compared to USD6.9m in the same period of the prior year.
Despite the increased legal investment, cost to collect for the quarter was 45.3%, an improvement of 253 basis points from the first quarter of 2012.
For over 50 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, visit www.AssetAcceptance.com.
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