ASSET ACCEPTANCE CAPITAL CORP

CIK:0001264707|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues
Purchased receivable revenues, net	$ 55,014,330	$ 61,609,348
Other revenues, net	180,166	224,952
Total revenues	55,194,496	61,834,300
Expenses
Salaries and benefits	14,217,244	16,336,882
Collections expense	28,129,456	27,312,560
Occupancy	1,322,154	1,428,226
Administrative	2,184,239	1,850,100
Depreciation and amortization	999,246	1,323,745
Restructuring charges	138,362	81,688
(Gain) loss on disposal of equipment and other assets	(700)	8,402
Total operating expenses	46,990,001	48,341,603
Income from operations	8,204,495	13,492,697
Other income (expense)
Merger transaction expense	(1,938,987)
Interest expense	(4,914,639)	(5,327,354)
Interest income	5,495	2,098
Other	4,643	46,470
Income before income taxes	1,361,007	8,213,911
Income tax expense	963,593	2,782,052
Net income	$ 397,414	$ 5,431,859
Weighted-average number of shares:
Basic	30,939,753	30,806,948
Diluted	31,054,020	30,878,147
Earnings per common share outstanding:
Basic	$ 0.01	$ 0.18
Diluted	$ 0.01	$ 0.18

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities
Net income	$ 397,414	$ 5,431,859
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	999,246	1,323,745
Amortization of deferred financing costs and debt discount	859,856	898,966
Amortization of de-designated hedge		79,450
Deferred income taxes	(117,143)	2,529,164
Share-based compensation expense	315,235	231,950
Net impairment (impairment reversals) of purchased receivables	240,000	(4,496,700)
Non-cash revenue	(46,335)	(1,001)
(Gain) loss on disposal of equipment and other assets	(700)	8,402
Changes in assets and liabilities:
Decrease (increase) in other assets	17,328	(1,874,816)
Decrease in accounts payable and other accrued liabilities	(1,471,000)	(3,030,067)
Increase in net income taxes payable	1,386,992	143,362
Net cash provided by operating activities	2,580,893	1,244,314
Cash flows from investing activities
Investments in purchased receivables, net of buybacks	(26,868,352)	(20,923,049)
Principal collected on purchased receivables	48,598,283	44,021,228
Purchases of property and equipment	(897,622)	(129,454)
Proceeds from sale of property and equipment	700	500
Net cash provided by (used in) investing activities	20,833,009	22,969,225
Cash flows from financing activities
Repayments of term loan facility	(2,187,500)	(2,187,500)
Net (repayments) borrowings on revolving credit facility	(15,400,000)	(8,200,000)
Payments of deferred financing costs		(3,469)
Payments on capital lease obligations	(12,316)	(131,011)
Purchases of treasury shares	(172,516)	(51,580)
Net cash used in financing activities	(17,772,332)	(10,573,560)
Net increase in cash	5,641,570	13,639,979
Cash at beginning of period	14,012,541	6,990,757
Cash at end of period	19,654,111	20,630,736
Supplemental disclosure of cash flow information
Cash paid for interest, net of capitalized interest	3,986,086	4,551,695
Net cash (paid) received for income taxes	(2,525)	109,526
Non-cash investing and financing activities:
Change in fair value of interest rate swap liabilities	90,378	(199,587)
Change in unrealized loss on cash flow hedge, net of tax	$ (57,842)	$ 101,840

Consolidated Statements of Financial Position (USD $)	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Cash	$ 19,654,111	$ 14,012,541
Purchased receivables, net	348,976,297	370,899,893
Income taxes receivable	192,367	620,096
Property and equipment, net	12,451,738	12,568,066
Goodwill	14,323,071	14,323,071
Other assets	12,003,341	12,314,572
Total assets	407,600,925	424,738,239
Liabilities:
Accounts payable	2,416,094	3,467,348
Accrued liabilities	21,891,938	22,416,766
Income taxes payable	1,385,616	426,353
Notes payable	165,889,599	182,911,146
Capital lease obligations	24,704	37,020
Deferred tax liability, net	65,337,849	65,422,456
Total liabilities	256,945,800	274,681,089
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 - 33,537,623 and 33,443,347 at March 31, 2013 and December 31, 2012, respectively	335,376	334,433
Additional paid in capital	152,063,741	151,749,449
Retained earnings	40,477,640	40,080,226
Accumulated other comprehensive loss, net of tax	(491,106)	(548,948)
Common stock in treasury; at cost, 2,699,166 and 2,672,237 shares at March 31, 2013 and December 31, 2012, respectively	(41,730,526)	(41,558,010)
Total stockholders' equity	150,655,125	150,057,150
Total liabilities and stockholders' equity	$ 407,600,925	$ 424,738,239