Asset Acceptance Capital Corp. (AACC), a purchaser and collector of charged-off consumer debt, Tuesday reported a 74.3% decline in profit for the second quarter, as revenues decreased 14.3% year over year. Earnings missed the estimate of Street analysts.
The Warren, Michigan-headquartered company's second-quarter net income was $2.1 million, or $0.07 per share, compared to net income of $8.3 million, or $0.24 per share, in the second quarter of 2007. Seven analysts polled by First Call/Thomson Financial expected the company to earn $0.19 per share for the quarter.
Adjusted EBITDA for the quarter rose to $46.7 million from $45.2 million in the same period of the prior year.
Total revenues declined 14.3% to $56.5 million from $65.9 million in the second quarter of 2007. Analysts were expecting $64.39 million for the quarter.
For the first six months, net income declined to $8.9 million or $0.29 per share from $18.1 million or $0.53 per share in the same period of the previous year.
Total revenues for the period decreased to $120.8 million from $133.2 million in the first half of 2007.
Adjusted EBITDA for the first half of 2008 increased to $98.8 million from $91.4 million in the corresponding period a year ago.
AACC ended Tuesday's regular trading on Nasdaq at $10.64, down $0.69 or 6.09% on a volume of 432 thousand shares. In after-hours trading, the share prices moved further to $10.58.
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