Encore Capital Group, the San Diego collector of charged-off credit card debt, reported second quarter gross collections of $278.4 million, up 16 percent from the same period of last year.
Net income for the quarter was $11 million, compared with $19 million in the like quarter of last year.
Encore (Nasdaq: ECPG) said it incurred $16.9 million in costs during the past quarter for several one-time expenses including $9 million in legal, advisory, integration and consulting fees involving the acquisition of Asset Acceptance, a competing collection company.
Encore invested $423 million to purchase $68.9 billion in debt, compared with investing $231 million to purchase $6 billion in debt for the like quarter of 2012.
The company said on July 1 it completed its acquisition of a controlling interest in Cabot Credit Management, a United Kingdom debt collector, which increased Encore’s estimated remaining collections to more than $3 billion.
— Mike Allen