Stockholm, Sweden-based Intrum Justitia, one of the largest ARM firms in Europe, reported Wednesday a 15 percent decline in earnings for the first quarter of 2012.
The debt buyer and collector said that net earnings for the quarter amounted to $13.7 million, compared to $16.2 million in the same quarter a year ago.
Revenues for the first quarter of 2012 were $143 million, a 3.1 percent increase from the first quarter of 2011.
Lars Wollung, Intrum’s President and CEO, noted, “For our business operations, 2012 has begun well with organic growth of 6 percent and an increase in operating earnings (EBIT) of 22 percent adjusted for currency effects and excluding costs for a Spanish legal case.”
Intrum recently announced an unfavorable ruling in Spain in a case that involved certain purchased debt accounts and would require a revaluation of some of its portfolios. The company noted that the revaluation negatively impacted operating earnings by $6 million in the first quarter.
“We have a strong financial position with cash flow from operating activities of $65.9 million in the first quarter and, in March, we broadened our loan financing by issuing bonds for $148.7 million,” said Wollung. “Combined with our existing borrowing from banks, this makes us well-equipped to continue our expansion, primarily in Purchased Debt.”
Intrum said that it invested $43.9 million in debt buying activity in the first quarter, down from the $55 million it invested in the same period a year ago.
The company also announced that it increased its quarterly dividend for Q1 to $0.67 from $0.61 in the previous year.