Debt collector Asset Acceptance Capital Corp. said Wednesday first-quarter earnings fell 31 percent due to a decline in revenue and rising interest expenses.
Net income fell to $6.8 million, or 22 cents per share, from $9.9 million, or 28 cents per share, during the same period the previous year.
Analysts polled by Thomson Financial, on average, forecast earnings of 19 cents per share for the quarter on revenue of $69.1 million.
Revenue totaled $64.4 million during the first quarter, down from $67.3 million during the first quarter last year.
Interest expense rose to $3.3 million during the first quarter, from $263,818 during the same period the previous year.
Asset Acceptance Capital reported cash collections of $100.3 million during the first quarter, compared with $95.9 million during the year-ago period.
During the first quarter, Asset Acceptance Capital spent $22.3 million to purchase charged-off consumer debt with a face value of $548.5 million. Charge-offs are loans banks and other lenders write off as not being repaid.
Terms & Conditions
RSS Headlines
Fool UK