San Diego Business Journal

Encore Capital Reports Q2 Results

By Mike Allen Friday, August 8, 2014

Encore Capital Group, the San Diego buyer and collector of defaulted credit card debt, reported second quarter net income of $21.3 million, compared with $11 million in the like quarter of 2013.

Revenue came in at $269.2 million, up 72 percent from the prior year’s second quarter.

Gross collections increased 47 percent to $409 million. The company spent about $226 million to purchase $3.1 billion in charged-off debt, compared with spending $423 million to purchase $68.9 billion in debt for the like quarter last year.

The bulk of the debt purchases in the second quarter of 2013 entailed the acquisition of Asset Acceptance Capital Corp., a British debt buying business.

Encore Capital also announced it acquired Atlantic Credit & Finance of Roanoke, Va., for nearly $200 million, including $70 million in cash, and assuming $126 million in debt payments owed by ACF.

ACF has $275 million in estimated remaining collections on its books, and a platform that specializes in acquiring and collecting “high balance, fresh paper,” Encore said.

Shares of Encore, traded on Nasdaq under ECPG, closed at $43.70 Aug. 8, up 54 cents. Over the past 52 weeks, the price has ranged from $39.64 to $51.95.