Thursday, Asset Acceptance Capital Corp. (AACC), a purchaser and collector of charged-off consumer debt, reported a decline in profit for the fourth quarter, as revenues decreased 11.6% year over year. Earnings topped Street analysts expectations.
The Warren, Michigan-based company reported net income for the fourth quarter of $3.8 million or $0.12 per share, down from $4.0 million or $0.13 share in the fourth quarter 2007.
The company reported a fourth quarter 2008 net impairment charge of $4.6 million versus $0.9 million in the fourth quarter of 2007.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter decreased 11.6% to $55.0 million from $62.2 million in the year-ago period. Analysts had a revenue consensus of $57.77 million.
Adjusted EBITDA for the quarter rose to $38.93 million from $38.46 million in the same period of the prior year.
For the full year, net income was $15.72 million or $0.51 per share, down from $20.41 million or $0.63 per share last year.
Total revenues for the full year decreased to $232.90 million from $245.69 million a year ago.
Analysts were looking for earnings of $0.48 per share on revenues of $236.95 million for fiscal 2008.
Looking ahead, the company expects to increase purchases later in the year at substantially better collections-to-price multiples because it projects pricing to continue to improve into late 2009 and early 2010. The company also believes that the bottom of this pricing market will roughly correspond with improving liquidation rates, resulting in increased revenues, earnings and return-on-portfolio investment.
AACC is currently trading at $3.79, down $0.01 or 0.26%.
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