Encore Capital Group, the San Diego buyer and collector of defaulted credit card debt, reported second quarter net income of $21.3 million, compared with $11 million in the like quarter of 2013.
Revenue came in at $269.2 million, up 72 percent from the prior year’s second quarter.
Gross collections increased 47 percent to $409 million. The company spent about $226 million to purchase $3.1 billion in charged-off debt, compared with spending $423 million to purchase $68.9 billion in debt for the like quarter last year.
The bulk of the debt purchases in the second quarter of 2013 entailed the acquisition of Asset Acceptance Capital Corp., a British debt buying business.
Encore Capital also announced it acquired Atlantic Credit & Finance of Roanoke, Va., for nearly $200 million, including $70 million in cash, and assuming $126 million in debt payments owed by ACF.
ACF has $275 million in estimated remaining collections on its books, and a platform that specializes in acquiring and collecting “high balance, fresh paper,” Encore said.
Shares of Encore, traded on Nasdaq under ECPG, closed at $43.70 Aug. 8, up 54 cents. Over the past 52 weeks, the price has ranged from $39.64 to $51.95.