Encore Capital Group, the San Diego-based buyer of defaulted credit card debt, reported record collections and cash flow on Thursday, resulting in first quarter net income of $29.4 million, compared with $23.2 million in the same period last year.
Revenue for the quarter ending March 31 was up to $286 million from first quarter 2014’s $254 million. Encore said collections outside the U.S. grew nearly 30 percent in the last year and now make up one-quarter of its worldwide collections. Gross collections for the first quarter were at an all-time high of $425 million, up from $397 million during the same time last year.
"Encore delivered strong financial performance in the first quarter as our international expansion and consumer-focused programs drove record collections,” CEO Kenneth A. Vecchione said.
Encore spent $125 million this year to buy $1 billion in face value debt, down from last year’s first quarter expenditures of $468 million to buy $4.3 billion in debt. Encore said the spending last year included subsidiary Cabot Credit Management’s $208 million acquisition of Marlin Financial Service’s portfolio.