1264707--3/13/2008--ASSET_ACCEPTANCE_CAPITAL

related topics

{capital, credit, financial}

{personnel, key, retain}

{investment, property, distribution}

{system, service, information}

{cost, operation, labor}

{tax, income, asset}

{condition, economic, financial}

{stock, price, operating}

{competitive, industry, competition}

{acquisition, growth, future}

{regulation, change, law}

{product, market, service}

Our ability to collect on our purchased receivables may suffer if the economy suffers a material and adverse downturn for a prolonged period. We generally account for purchased receivable revenues using the interest method of accounting in accordance with U.S. Generally Accepted Accounting Principles, which requires making reasonable estimates of the timing and amount of future cash collections. If the timing and actual amount recovered by us is materially less than our estimates, it would cause us to recognize impairments and negatively impact our earnings. We may not be able to continue to acquire charged-off consumer receivables in sufficient amounts to operate efficiently and profitably. We may not be able to collect sufficient amounts on our charged-off consumer receivables, which would adversely affect our results of operations. We experience high turnover rates for our account representatives and we may not be able to hire and retain enough sufficiently trained account representatives to support our operations. Failure to effectively manage our growth could adversely affect our business and operating results. We could determine that we have excess capacity and reduce the size of our workforce or close additional remote call center locations, which could negatively impact our ability to collect on our portfolios. We face intense competition that could impair our ability to grow and achieve our goals. Our strategy includes acquiring charged-off receivable portfolios in industries in which we may have little or no experience. If we do not successfully acquire and collect on these portfolios, revenue may decline and our results of operations may be materially and adversely affected. Historical operating results and quarterly cash collections may not be indicative of future performance. Our collections may decrease if bankruptcy filings increase or if bankruptcy laws or other debt collection laws change. Negative attention and news regarding the debt collection industry and individual debt collectors may have a negative impact on a debtor s willingness to pay the debt we acquire. We are dependent on our management team for the adoption and implementation of our strategies and the loss of their services could have a material adverse effect on our business. Our ability to recover on our charged-off consumer receivables may be limited under federal and state laws. Our operations could suffer from telecommunications or technology downtime or from not responding to changes in technology. Our access to capital through our credit agreement is critical to our ability to continue to grow. If our available credit is materially reduced or the credit agreement is terminated and if we are unable to replace it on favorable terms, our revenue growth may slow and our results of operations may be materially and adversely affected.

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1264707--3/13/2008--ASSET_ACCEPTANCE_CAPITAL_CORP