Encore Capital Group Inc., a San Diego-based collection agency and debt buyer, this week reported third quarter net income of $12.3 million, compared to $9 million in the year-ago quarter. The company's revenue grew 22% from the prior year’s third quarter to $98 million.
Encore’s gross collections for the quarter reached $157.4 million, a 25% increase from a year ago. The company paid $77.9 million during the quarter to purchase bad-debt portfolios with a face value of $2.6 billion, according to the company's 10-K filing with the U.S. Securities and Exchange Commission. Total revenue from receivable portfolios was $93.8 million, a 23% jump over the $76.4 million in the year-ago period.
Encore Capital is the third-largest U.S. debt buyer based on annual revenue, according to research by Collections & Credit Risk.