Exhibit 99
| | |
| | 28405 Van Dyke Avenue
Warren, Michigan 48093 www.AssetAcceptance.com |
Contact:
Jeff Lambert, Jeff Tryka
Lambert, Edwards & Associates
616-233-0500 / aacc@lambert-edwards.com
Asset Acceptance Capital Corp. Announces Second Quarter 2009 Results
Reports Cash Collections of $87.3 Million, Operating Expenses of 51.6% of Cash Collections
Warren, Mich., July 30, 2009– Asset Acceptance Capital Corp. (NASDAQ:AACC), a leading purchaser and collector of charged-off consumer debt, today announced results for the second quarter of 2009. The Company’s second-quarter results included cash collections of $87.3 million and operating expenses of 51.6% of cash collections. The Company reported earnings of $0.03 per fully diluted share for the period.
Asset Acceptance reported cash collections of $87.3 million in the second quarter ended June 30, 2009, versus cash collections of $95.2 million in the year-ago period. For the six-month period ended June 30, 2009, the Company reported cash collections of $181.4 million compared to cash collections of $195.5 million in the first six months of 2008.
Total revenues were $49.1 million in the second quarter of 2009, compared to total revenues of $56.5 million in the second quarter of 2008. Total revenues in the first half of 2009 were $106.1 million versus $120.8 million in the first six months of 2008. Amortization of purchased receivables in the second quarter of 2009 was 44.1% of total cash collections versus 41.0% of total cash collections in the second quarter of 2008. For the first six months of 2009, amortization of purchased receivables was 41.8% of total cash collections versus 38.6% of total cash collections in the same period of last year. The Company reported a second quarter of 2009 net impairment charge of $6.8 million, versus a net impairment charge of $5.0 million in the prior year quarter. Net impairments for the first six months of 2009 totaled $10.3 million, versus $5.4 million for the first six months of 2008.
Net income for the quarter was $0.8 million, or $0.03 per fully diluted share, compared to net income of $2.1 million, or $0.07 per fully diluted share, in the second quarter of 2008. Net income for the first two quarters of 2009 was $5.4 million, or $0.18 per fully diluted share, compared to net income of $8.9 million, or $0.29 per fully diluted share, in the same period of 2008. Earnings Before Interest, Taxes, Depreciation and Amortization, including purchased receivable amortization (“Adjusted EBITDA”), decreased to $43.5 million in the second quarter of 2009, down 7.0% compared to the year-ago period. For the six-month period ended June 30, 2009, Adjusted EBITDA declined to $91.7 million, a decrease of 7.2% when compared to the same six-month period in 2008. Please refer to the table on page 3, which reconciles net income according to Generally Accepted Accounting Principles (“GAAP”) to Adjusted EBITDA.
Asset Acceptance Second Quarter 2009 Results
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During the second quarter of 2009, the Company invested $20.0 million to purchase charged-off consumer debt portfolios with a face value of $727.9 million, for a blended rate of 2.74% of face value. This compares to the prior-year second quarter, when the Company invested $64.8 million to purchase consumer debt portfolios with a face value of $1.9 billion, representing a blended rate of 3.38% of face value. The Company invested $42.0 million to purchase charged-off consumer debt portfolios with a face value of $1.5 billion, for a blended rate of 2.85% during the first six months of 2009, compared to $86.7 million with a face value of $2.5 billion, for a blended rate of 3.53% in the same period of 2008. All purchase data is adjusted for buybacks.
Rion Needs, President and CEO, commented: “The collections environment continues to be challenging in the current economic climate. As unemployment continues to increase we are seeing a negative impact on our liquidation rates, especially in the older vintages where there is decreased collection leverage due to the age of the accounts. However, we believe we will have strong returns on our investments in paper purchased in recent quarters because of our stated strategy of carefully controlling our levels of purchasing in order to save dry powder for the second half of 2009 and full year 2010, which has allowed us to be selective in the portfolios we have acquired.”
Needs continued, “We continue to build increased levels of operational sophistication and data analysis into our daily activities that will serve to maximize collections on our portfolios over the long run. We are particularly focused on our call centers, where we are aggressively increasing our capacity by expanding our collection account representative headcount to achieve better penetration of our inventory. We expect a net increase in collection account representative headcount of 20% by year end and are ahead of plan. We continue to enhance the segmentation of our accounts in order to focus our efforts on those most likely to liquidate, as well as complete our system conversion that will give our workforce the tools they need to maximize every collection opportunity. We believe these efforts will increase our liquidation rates going forward.”
In addition to lower cash collections in the quarter, the Company reported lower operating expenses compared to the prior year. Total operating expenses in the quarter were reduced 9.3% to $45.1 million, from $49.7 million in the second quarter of 2008. For the 2009 second quarter, the Company reported operating expenses of 51.6% of cash collections, down from 52.2% of cash collections in the prior year quarter.
Mark Redman, Senior Vice President and CFO of Asset Acceptance Capital Corp. commented: “We have continued to aggressively manage our cost structure in this difficult collections environment as evidenced by our 51.6% cost to collect ratio during the second quarter. Additionally, as a result of reducing our purchasing activity during the second quarter we paid down the revolving line of credit balance to zero and built our cash position, which stood at $12.9 million at the end of June. We are prepared to increase our level of purchasing in the second half of the year to capitalize on the growing supply of charge-offs resulting from the downturn in the economy.”
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Asset Acceptance Second Quarter 2009 Results
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Reconciliation of GAAP Net Income to Adjusted EBITDA (Unaudited)
The Company provided the following table which reconciles GAAP net income, as reported, to Adjusted EBITDA. The Company indicated that the measure “Adjusted EBITDA” is the basis for its management bonus program and a similar computation is used in its credit agreement’s financial covenants. The Company believes that Adjusted EBITDA, which is generally cash collections less operating expenses (other than non-cash operating expenses, such as depreciation and amortization) represents the Company’s cash generation which can be used to purchase receivables, pay down debt, pay income taxes, return to shareholders and for other uses. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis. Additionally, Adjusted EBITDA as computed by the Company may not be comparable to similar metrics used by others in the industry.
| | | | | | | | | | | | | | | | |
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Net income | | $ | 842,287 | | | $ | 2,124,158 | | | $ | 5,444,431 | | | $ | 8,901,982 | |
Add: interest income and expense (net), income taxes, depreciation and amortization | | | 4,070,520 | | | | 5,600,322 | | | | 10,415,500 | | | | 14,120,691 | |
Add (subtract): (gain) loss on disposal of assets | | | 5,137 | | | | (2,035 | ) | | | 6,541 | | | | (155,557 | ) |
Add: impairment of intangible assets | | | — | | | | — | | | | — | | | | 445,651 | |
Add (subtract): other (income) expense | | | 67,963 | | | | 1,650 | | | | (3,814 | ) | | | (16,333 | ) |
| | | | | | | | | | | | | | | | |
Subtotal | | | 4,985,907 | | | | 7,724,095 | | | | 15,862,658 | | | | 23,296,434 | |
| | | | |
Change to balance of purchased receivables | | | 38,486,861 | | | | 39,152,564 | | | | 75,896,934 | | | | 75,841,926 | |
| | | | |
Non-cash revenue | | | (12,627 | ) | | | (168,500 | ) | | | (45,442 | ) | | | (316,269 | ) |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 43,460,141 | | | $ | 46,708,159 | | | $ | 91,714,150 | | | $ | 98,822,091 | |
| | | | | | | | | | | | | | | | |
Cash collections | | $ | 87,293,577 | | | $ | 95,192,743 | | | $ | 181,410,514 | | | $ | 195,457,024 | |
Other revenues, net | | | 262,610 | | | | 264,885 | | | | 514,129 | | | | 737,822 | |
Operating expenses | | | (45,060,679 | ) | | | (49,675,339 | ) | | | (92,062,348 | ) | | | (99,777,663 | ) |
Depreciation and amortization | | | 959,496 | | | | 921,970 | | | | 1,845,314 | | | | 1,949,774 | |
Impairment of intangible assets | | | — | | | | — | | | | — | | | | 445,651 | |
Loss on disposal of equipment | | | 5,137 | | | | 3,900 | | | | 6,541 | | | | 9,483 | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 43,460,141 | | | $ | 46,708,159 | | | $ | 91,714,150 | | | $ | 98,822,091 | |
| | | | | | | | | | | | | | | | |
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Asset Acceptance Second Quarter 2009 Results
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Second Quarter 2009 Earnings Conference Call
Asset Acceptance Capital Corp. will host a conference call at 11 a.m. Eastern today to discuss these results and current business trends. To listen to a live webcast of the call, please go to theinvestor section of the Company’s web site atwww.AssetAcceptance.com. A replay of the webcast will be available until July 30, 2010.
About Asset Acceptance Capital Corp.
For more than45 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, please visitwww.AssetAcceptance.com.
Asset Acceptance Capital Corp. Safe Harbor Statement
This press release contains certain statements, including the Company’s plans and expectations regarding its operating strategies, charged-off receivables and costs, which are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include reference to the Company’s presentations and webcasts. These forward-looking statements reflect the Company’s views, expectations and beliefs at the time such statements were made with respect to such matters, as well as the Company’s future plans, objectives, events, portfolio purchases and pricing, collections and financial results such as revenues, expenses, income, earnings per share, capital expenditures, operating margins, financial position, expected results of operations and other financial items. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) that make the timing, extent, likelihood and degree of occurrence of these matters difficult to predict. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “could,” “will,” variations of such words and similar expressions are intended to identify forward-looking statements. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and outcomes to differ materially from those described in the forward-looking statements. Risk Factors include, among others: ability to purchase charged-off consumer receivables at appropriate prices, ability to continue to acquire charged-off receivables in sufficient amounts to operate efficiently and profitably, employee turnover, ability to compete in the marketplace and acquiring charged-off receivables in industries that the Company has little or no experience. These Risk Factors also include, among others, the Risk Factors discussed under “Item 1A Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K and in other SEC filings, in each case under a section titled “Risk Factors” or similar headings and those discussions regarding risk factors as well as the discussion of forward-looking statements in such sections are incorporated herein by reference. Other Risk Factors exist, and new Risk Factors emerge from time to time that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company expressly disclaims any obligation to update, amend or clarify forward-looking statements.
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Asset Acceptance Second Quarter 2009 Results
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Supplemental Financial Data
| | | | | | | | | | | | | | | | | | | | |
| | | Q2 ’09 | | | Q1 ’09 | | | Q4 ’08 | | | Q3 ’08 | | | Q2 ’08 | |
| | | (Unaudited, Dollars in Millions, except collections per account representative) | |
Total revenues | | $ | 49.1 | | | $ | 57.0 | | | $ | 55.0 | | | $ | 58.4 | | | $ | 56.5 | |
Cash collections | | $ | 87.3 | | | $ | 94.1 | | | $ | 83.3 | | | $ | 90.8 | | | $ | 95.2 | |
Operating expenses to cash collections | | | 51.6 | % | | | 50.0 | % | | | 55.2 | % | | | 55.2 | % | | | 52.2 | % |
Traditional call center collections | | $ | 36.1 | | | $ | 41.0 | | | $ | 35.1 | | | $ | 38.4 | | | $ | 42.2 | |
Legal collections | | $ | 38.5 | | | $ | 38.7 | | | $ | 34.9 | | | $ | 38.1 | | | $ | 39.9 | |
Other collections | | $ | 12.7 | | | $ | 14.4 | | | $ | 13.3 | | | $ | 14.3 | | | $ | 13.1 | |
Amortization rate | | | 44.1 | % | | | 39.7 | % | | | 34.2 | % | | | 36.0 | % | | | 41.0 | % |
Collections on fully amortized portfolios | | $ | 15.8 | | | $ | 18.3 | | | $ | 17.7 | | | $ | 18.4 | | | $ | 20.3 | |
Core amortization rate (Note 1) | | | 53.9 | % | | | 49.3 | % | | | 43.4 | % | | | 45.1 | % | | | 52.1 | % |
Investment in purchased receivables (Note 2) | | $ | 20.0 | | | $ | 22.1 | | | $ | 32.0 | | | $ | 35.6 | | | $ | 64.8 | |
Face value of purchased receivables (Note 2) | | $ | 727.9 | | | $ | 746.9 | | | $ | 632.0 | | | $ | 719.2 | | | $ | 1,918.6 | |
Average cost of purchased receivables (Note 2) | | | 2.74 | % | | | 2.95 | % | | | 5.06 | % | | | 4.96 | % | | | 3.38 | % |
Number of purchased receivable portfolios | | | 22 | | | | 31 | | | | 23 | | | | 42 | | | | 52 | |
Collections per account representative FTE | | $ | 38,858 | | | $ | 42,940 | | | $ | 34,994 | | | $ | 39,866 | | | $ | 45,538 | |
Average account representative FTE’s | | | 929 | | | | 955 | | | | 1,003 | | | | 966 | | | | 939 | |
| Note | 1: Core amortization rate is amortization divided by collections on non-fully amortized portfolios. |
| Note | 2: All purchase data is adjusted for buybacks. |
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Asset Acceptance Second Quarter 2009 Results
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The Company provided the following details regarding purchased receivable revenues:
| | | | | | | | | | | | | | | | | | | |
| | | Three months ended June 30, 2009 |
Year of Purchase | | Collections | | Revenue | | Amortization
Rate(1) | | | Monthly
Yield(2) | | | Net
Impairments | | | Zero Basis
Collections |
2003 and prior | | $ | 14,882,021 | | $ | 13,402,082 | | N/M | % | | N/M | % | | $ | 489,000 | | | $ | 12,484,108 |
2004 | | | 5,633,013 | | | 2,475,410 | | 56.1 | | | 4.96 | | | | 1,941,000 | | | | 901,949 |
2005 | | | 6,103,487 | | | 864,320 | | 85.8 | | | 1.23 | | | | 2,488,000 | | | | 34,537 |
2006 | | | 14,512,193 | | | 9,086,793 | | 37.4 | | | 5.11 | | | | 1,701,000 | | | | 1,610,591 |
2007 | | | 18,191,261 | | | 9,907,523 | | 45.5 | | | 3.67 | | | | — | | | | 706,439 |
2008 | | | 22,974,091 | | | 9,838,611 | | 57.2 | | | 2.85 | | | | 227,000 | | | | 88,705 |
2009 | | | 4,997,511 | | | 3,244,604 | | 35.1 | | | 3.90 | | | | — | | | | 6,250 |
| | | | | | | | | | | | | | | | | | | |
Totals | | $ | 87,293,577 | | $ | 48,819,343 | | 44.1 | | | 4.83 | | | $ | 6,846,000 | | | $ | 15,832,579 |
| | | | | | | | | | | | | | | | | | | |
| |
| | | Three months ended June 30, 2008 |
Year of Purchase | | Collections | | Revenue | | Amortization
Rate(1) | | | Monthly
Yield(2) | | | Net
Impairments | | | Zero Basis
Collections |
2002 and prior | | $ | 12,784,399 | | $ | 12,101,312 | | N/M | % | | N/M | % | | $ | — | | | $ | 11,609,421 |
2003 | | | 10,546,373 | | | 9,274,480 | | 12.1 | | | 34.90 | | | | (537,150 | ) | | | 5,902,566 |
2004 | | | 8,920,506 | | | 6,239,920 | | 30.0 | | | 7.47 | | | | 637,317 | | | | 819,045 |
2005 | | | 10,082,486 | | | 2,547,583 | | 74.7 | | | 2.02 | | | | 2,513,000 | | | | 7,892 |
2006 | | | 21,342,389 | | | 11,672,311 | | 45.3 | | | 4.72 | | | | 2,356,000 | | | | 1,898,018 |
2007 | | | 24,315,224 | | | 11,120,941 | | 54.3 | | | 2.80 | | | | — | | | | 35,260 |
2008 | | | 7,201,366 | | | 3,252,132 | | 54.8 | | | 2.64 | | | | — | | | | 27,779 |
| | | | | | | | | | | | | | | | | | | |
Totals | | $ | 95,192,743 | | $ | 56,208,679 | | 41.0 | | | 5.58 | | | $ | 4,969,167 | | | $ | 20,299,981 |
| | | | | | | | | | | | | | | | | | | |
| |
| | | Six months ended June 30, 2009 |
Year of Purchase | | Collections | | Revenue | | Amortization
Rate(1) | | | Monthly
Yield(2) | | | Net
Impairments | | | Zero Basis
Collections |
2003 and prior | | $ | 32,115,952 | | $ | 29,595,638 | | N/M | % | | N/M | % | | $ | 412,700 | | | $ | 26,617,497 |
2004 | | | 12,509,541 | | | 5,799,086 | | 53.6 | | | 5.23 | | | | 3,958,600 | | | | 1,934,285 |
2005 | | | 13,541,643 | | | 4,641,864 | | 65.7 | | | 2.97 | | | | 2,745,000 | | | | 77,042 |
2006 | | | 30,784,791 | | | 20,327,073 | | 34.0 | | | 5.44 | | | | 2,497,000 | | | | 3,608,141 |
2007 | | | 39,310,080 | | | 21,131,396 | | 46.2 | | | 3.70 | | | | — | | | | 1,664,748 |
2008 | | | 47,118,967 | | | 20,260,841 | | 57.0 | | | 2.76 | | | | 682,000 | | | | 178,177 |
2009 | | | 6,029,540 | | | 3,803,124 | | 36.9 | | | 3.82 | | | | — | | | | 6,250 |
| | | | | | | | | | | | | | | | | | | |
Totals | | $ | 181,410,514 | | $ | 105,559,022 | | 41.8 | | | 5.08 | | | $ | 10,295,300 | | | $ | 34,086,140 |
| | | | | | | | | | | | | | | | | | | |
| |
| | | Six months ended June 30, 2008 |
Year of Purchase | | Collections | | Revenue | | Amortization
Rate(1) | | | Monthly
Yield(2) | | | Net
Impairments | | | Zero Basis
Collections |
2002 and prior | | $ | 27,359,596 | | $ | 26,288,995 | | N/M | % | | N/M | % | | $ | (550,000 | ) | | $ | 24,688,531 |
2003 | | | 22,443,394 | | | 19,419,777 | | 13.5 | | | 33.26 | | | | (1,018,200 | ) | | | 12,099,253 |
2004 | | | 18,514,737 | | | 12,819,248 | | 30.8 | | | 7.28 | | | | 1,687,664 | | | | 1,794,244 |
2005 | | | 20,694,464 | | | 8,307,417 | | 59.9 | | | 3.04 | | | | 2,605,986 | | | | 44,299 |
2006 | | | 46,230,295 | | | 27,206,224 | | 41.2 | | | 5.17 | | | | 2,448,000 | | | | 3,856,965 |
2007 | | | 51,663,171 | | | 22,322,914 | | 56.8 | | | 2.64 | | | | 180,000 | | | | 35,260 |
2008 | | | 8,551,367 | | | 3,566,792 | | 58.3 | | | 2.58 | | | | — | | | | 27,779 |
| | | | | | | | | | | | | | | | | | | |
Totals | | $ | 195,457,024 | | $ | 119,931,367 | | 38.6 | | | 5.92 | | | $ | 5,353,450 | | | $ | 42,546,331 |
| | | | | | | | | | | | | | | | | | | |
| (1) | “N/M” indicates that the calculated percentage for aggregated vintage years is not meaningful. |
| (2) | The monthly yield is the weighted-average yield determined by dividing purchased receivable revenues recognized in the period by the average of the beginning monthly carrying values of the purchased receivables for the period presented. |
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Asset Acceptance Second Quarter 2009 Results
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Asset Acceptance Capital Corp.
Consolidated Statements of Operations
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Revenues | | | | | | | | | | | | | | | | |
Purchased receivable revenues, net | | $ | 48,819,343 | | | $ | 56,208,679 | | | $ | 105,559,022 | | | $ | 119,931,367 | |
Gain on sale of purchased receivables | | | — | | | | 5,935 | | | | — | | | | 165,040 | |
Other revenues, net | | | 262,610 | | | | 264,885 | | | | 514,129 | | | | 737,822 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | 49,081,953 | | | | 56,479,499 | | | | 106,073,151 | | | | 120,834,229 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Salaries and benefits | | | 18,367,377 | | | | 20,831,373 | | | | 38,213,894 | | | | 42,903,346 | |
Collections expense | | | 21,640,610 | | | | 23,038,448 | | | | 43,767,293 | | | | 44,994,121 | |
Occupancy | | | 1,859,381 | | | | 1,928,829 | | | | 3,670,242 | | | | 3,856,317 | |
Administrative | | | 2,228,678 | | | | 2,950,819 | | | | 4,559,064 | | | | 5,618,971 | |
Depreciation and amortization | | | 959,496 | | | | 921,970 | | | | 1,845,314 | | | | 1,949,774 | |
Impairment of assets | | | — | | | | — | | | | — | | | | 445,651 | |
Loss on disposal of equipment and other assets | | | 5,137 | | | | 3,900 | | | | 6,541 | | | | 9,483 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 45,060,679 | | | | 49,675,339 | | | | 92,062,348 | | | | 99,777,663 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 4,021,274 | | | | 6,804,160 | | | | 14,010,803 | | | | 21,056,566 | |
Other income (expense) | | | | | | | | | | | | | | | | |
Interest income | | | 3,731 | | | | 6,778 | | | | 4,692 | | | | 30,029 | |
Interest expense | | | (2,471,838 | ) | | | (3,250,063 | ) | | | (5,113,964 | ) | | | (6,594,660 | ) |
Other | | | (67,963 | ) | | | (1,650 | ) | | | 3,814 | | | | 16,333 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 1,485,204 | | | | 3,559,225 | | | | 8,905,345 | | | | 14,508,268 | |
Income taxes | | | 642,917 | | | | 1,435,067 | | | | 3,460,914 | | | | 5,606,286 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 842,287 | | | $ | 2,124,158 | | | $ | 5,444,431 | | | $ | 8,901,982 | |
| | | | | | | | | | | | | | | | |
| | | | |
Weighted-average number of shares: | | | | | | | | | | | | | | | | |
Basic | | | 30,623,320 | | | | 30,561,421 | | | | 30,617,189 | | | | 30,557,220 | |
Diluted | | | 30,711,491 | | | | 30,606,807 | | | | 30,668,037 | | | | 30,586,249 | |
Earnings per common share outstanding: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.03 | | | $ | 0.07 | | | $ | 0.18 | | | $ | 0.29 | |
Diluted | | $ | 0.03 | | | $ | 0.07 | | | $ | 0.18 | | | $ | 0.29 | |
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Asset Acceptance Second Quarter 2009 Results
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Asset Acceptance Capital Corp.
Consolidated Statements of Financial Position
(Unaudited)
| | | | | | | | |
| | | June 30, 2009 | | | December 31, 2008 | |
ASSETS | | | | |
Cash | | $ | 12,927,039 | | | $ | 6,042,859 | |
Purchased receivables, net | | | 327,095,264 | | | | 361,808,502 | |
Income taxes receivable | | | 593,927 | | | | 3,934,029 | |
Property and equipment, net | | | 12,664,308 | | | | 12,526,817 | |
Goodwill | | | 14,323,071 | | | | 14,323,071 | |
Intangible assets, net | | | 2,348,833 | | | | 2,453,117 | |
Other assets | | | 5,561,400 | | | | 7,082,721 | |
| | | | | | | | |
Total assets | | $ | 375,513,842 | | | $ | 408,171,116 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Liabilities: | | | | | | | | |
Accounts payable | | $ | 3,028,701 | | | $ | 3,388,320 | |
Accrued liabilities | | | 17,356,040 | | | | 21,476,207 | |
Income taxes payable | | | 1,438,288 | | | | 658,329 | |
Notes payable | | | 144,572,514 | | | | 181,550,000 | |
Deferred tax liability, net | | | 65,113,382 | | | | 64,470,002 | |
| | | | | | | | |
Total liabilities | | $ | 231,508,925 | | | $ | 271,542,858 | |
| | | | | | | | |
| | |
Stockholders’ equity: | | | | | | | | |
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding | | | — | | | | — | |
Common stock, $0.01 par value, 100,000,000 shares authorized; issued shares — 33,170,177 and 33,169,552 at June 30, 2009 and December 31, 2008, respectively | | | 331,702 | | | | 331,696 | |
Additional paid in capital | | | 147,677,015 | | | | 146,915,791 | |
Retained earnings | | | 40,632,745 | | | | 35,188,314 | |
Accumulated other comprehensive loss, net of tax | | | (3,492,941 | ) | | | (4,664,862 | ) |
Common stock in treasury; at cost, 2,596,653 and 2,596,521 shares at June 30, 2009 and December 31, 2008, respectively | | | (41,143,604 | ) | | | (41,142,681 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 144,004,917 | | | | 136,628,258 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 375,513,842 | | | $ | 408,171,116 | |
| | | | | | | | |
8
Asset Acceptance Second Quarter 2009 Results
Page 9 of 9 ~
ASSET ACCEPTANCE CAPITAL CORP.
Consolidated Statements of Cash Flows
(Unaudited)
| | | | | | | | |
| | | Six months ended June 30, | |
| | | 2009 | | | 2008 | |
Cash flows from operating activities | | | | | | | | |
Net income | | $ | 5,444,431 | | | $ | 8,901,982 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 1,845,314 | | | | 1,949,774 | |
Amortization of deferred financing costs | | | 263,303 | | | | 272,606 | |
Deferred income taxes | | | 176,278 | | | | 428,777 | |
Share-based and other non-cash compensation | | | 761,230 | | | | 737,898 | |
Net impairment of purchased receivables | | | 10,295,300 | | | | 5,353,450 | |
Non-cash revenue | | | (45,442 | ) | | | (316,269 | ) |
Loss on disposal of equipment and other assets | | | 6,541 | | | | 9,483 | |
Gain on sale of purchased receivables | | | — | | | | (165,040 | ) |
Impairment of intangible assets | | | — | | | | 445,651 | |
Changes in assets and liabilities: | | | | | | | | |
(Decrease) increase in accounts payable and other accrued liabilities | | | (2,840,763 | ) | | | 2,171,191 | |
Decrease in other assets | | | 1,258,018 | | | | 180,474 | |
Increase in net income taxes | | | 4,120,061 | | | | 200,253 | |
| | | | | | | | |
Net cash provided by operating activities | | | 21,284,271 | | | | 20,170,230 | |
| | | | | | | | |
| | |
Cash flows from investing activities | | | | | | | | |
Investment in purchased receivables, net of buy backs | | | (41,138,254 | ) | | | (84,976,768 | ) |
Principal collected on purchased receivables | | | 65,601,634 | | | | 70,488,476 | |
Proceeds from the sale of purchased receivables | | | — | | | | 167,405 | |
Purchases of property and equipment | | | (1,885,272 | ) | | | (4,742,783 | ) |
Proceeds from sale of property and equipment | | | 210 | | | | 2,515 | |
| | | | | | | | |
Net cash provided by (used in) investing activities | | | 22,578,318 | | | | (19,061,155 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities | | | | | | | | |
Borrowings under notes payable | | | 17,800,000 | | | | 57,000,000 | |
Repayments of notes payable | | | (54,777,486 | ) | | | (58,750,000 | ) |
Purchase of treasury shares | | | (923 | ) | | | — | |
Payment of deferred financing costs | | | — | | | | (660,575 | ) |
Repayments of capital lease obligations | | | — | | | | (13,767 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (36,978,409 | ) | | | (2,424,342 | ) |
| | | | | | | | |
Net increase (decrease) in cash | | | 6,884,180 | | | | (1,315,267 | ) |
Cash at beginning of period | | | 6,042,859 | | | | 10,474,479 | |
| | | | | | | | |
Cash at end of period | | $ | 12,927,039 | | | $ | 9,159,212 | |
| | | | | | | | |
| | |
Supplemental disclosure of cash flow information | | | | | | | | |
Cash paid for interest, net of capitalized interest | | $ | 5,208,677 | | | $ | 6,502,385 | |
Net cash (received) paid for income taxes | | | (705,644 | ) | | | 4,993,390 | |
Non-cash investing and financing activities: | | | | | | | | |
Change in fair value of swap liability | | | (1,639,023 | ) | | | 87,419 | |
Change in unrealized loss on cash flow hedge | | | 1,171,921 | | | | (57,317 | ) |
9
