NORFOLK, Va., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (Nasdaq:PRAA), a financial and business services company operating in the U.S. and U.K, today reported its third quarter 2013 financial results.
Third Quarter Highlights
- Cash collections of $291.7 million, up 27% from the third quarter of 2012.
- Record revenues of $197.8 million, up 31%.
- Record net income attributable to PRA of $47.3 million, up 42%.
- $0.93 diluted EPS, compared with $0.65 a year ago, up 43%, adjusted for a 3:1 stock split effective August 1, 2013.
- Fee income of $26.3 million, up 78%.
- $6.4 million goodwill impairment charge for Location Services business.
- 23.5% return on average equity, annualized.
- $141.9 million investment in new portfolio purchases.
"In the third quarter, PRA continued the strong financial results of the first two quarters of 2013. Our employees again delivered record revenue and profitability for stockholders, as well as continued, significant investment in new portfolios of distressed debt," said Steve Fredrickson, chairman, president and chief executive officer, PRA.
"PRA's renewed focus on our fee-for-service businesses also contributed to our third quarter profitability. Fee income from these businesses substantially increased to $26.3 million during the quarter, aided by a single, large Claims Compensation Bureau case, helping to drive PRA's bottom-line results," Fredrickson said.
REVENUES
- Revenues were $197.8 million in the third quarter 2013, up 31% from a year ago. Net finance receivables income increased 26% to $171.5 million in the quarter, from $135.8 million a year ago. And, fee income increased 78% from a year ago to $26.3 million.
Cash Collections from Finance Receivables
- Cash collections increased 27% over the year-ago period to $291.7 million, including bankruptcy court trustee payments of $120.6 million; $89.5 million in call center and other collections; and $81.6 million in legal collections from customers with an ability to pay their debt, but who refuse attempts to collect.
| Cash Collection Source ($ in thousands) | Q32013 | Q22013 | Q12013 | Q42012 | Q32012 |
| Call Center and Other Collections | $ 89,512 | $ 90,229 | $ 89,037 | $ 72,624 | $ 72,394 |
| External Legal Collections | 48,274 | 50,131 | 47,910 | 41,521 | 39,913 |
| Internal Legal Collections | 33,288 | 30,365 | 29,283 | 23,968 | 25,650 |
| Bankruptcy Court Trustee Payments | 120,577 | 125,672 | 109,233 | 91,098 | 91,095 |
| Total Cash Collections | $ 291,651 | $ 296,397 | $ 275,463 | $ 229,211 | $ 229,052 |
- Principal amortization was 41.2% of cash collections, compared with 40.7% in the year-ago quarter. Principal amortization included a net allowance reversal of $2.6 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance charge of $1.6 million recorded a year ago.
Fee Income
- PRA's fee-based businesses generated $26.3 million in fee income in the quarter, compared with $14.8 million a year ago. The change was due primarily to a $10.5 million increase in fee income generated by Claims Compensation Bureau, largely attributable to a single case. Government Services fee income also increased, while fee income generated by the Company's Location Services unit declined.
EXPENSES AND OPERATING INCOME
- Operating expenses were $118.3 million in the third quarter of 2013, up $24.8 million or 27% from the year-ago quarter.
- PRA recorded a $6.4 million impairment of goodwill in the third quarter of 2013. This non-cash charge represents the full amount of goodwill previously recorded for the Company's Location Services subsidiary, and was taken primarily as a result of recent operating losses coupled with the loss of a significant client late in the quarter. Despite this charge, PRA is optimistic about the future of the Location Services business, and continues to invest in new technology, personnel, and facilities.
- Operating income was $79.5 million, compared with $57.1 million a year ago, an increase of 39%. The operating margin increased to 40.2% from 37.9% in the third quarter of last year.
- The provision for income taxes was $26.3 million in the third quarter of 2013, up 21% from the third quarter of 2012. The provision in the third quarter of 2013 was positively impacted by a reduction in the Company's blended domestic state tax rate due to the enactment of certain state tax apportionment and other changes. The Company's provision for income taxes was 34.8% of income before taxes in the third quarter of 2013, compared with 39.6% in the year-earlier quarter. While these changes are expected to have some future benefit, the majority of the impact was due to the changes described above, and is not expected to reoccur.
PORTFOLIO PURCHASES
- PRA invested $141.9 million in new portfolio purchases from U.S and U.K. creditors in the third quarter of 2013, compared with $103.0 million a year ago. Receivables purchased were acquired in 79 portfolios from 19 different sellers. The company has invested $756.4 million in portfolio purchases over the trailing twelve months.
| Portfolio Purchase Source | |||||
| ($ in thousands) | Q32013 | Q22013 | Q12013 | Q42012 | Q32012 |
| Core Customer Debt | $ 100,081 | $ 118,195 | $ 128,338 | $ 88,107 | $ 61,684 |
| Bankruptcy Court Claims | 41,794 | 82,273 | 86,595 | 111,001 | 41,277 |
| Total Portfolio Purchases | $ 141,875 | $ 200,468 | $ 214,933 | $ 199,108 | $ 102,961 |
- Core customer debt purchased in the third quarter of 2013 included $89.0 million in U.S. accounts and $11.0 million in U.K. accounts.
BALANCE SHEET
- Borrowings totaled $452.2 million at September 30, 2013, and consisted of $255.8 million in convertible senior notes and $196.4 million in other long-term debt. Total borrowings were $250.7 million at September 30, 2012.
- During the quarter, the Company issued $287.5 million aggregate principal amount of 3.00% convertible senior notes due 2020. Proceeds were used to temporarily repay debt outstanding under its revolving credit facility and to repurchase approximately $50 million of common stock. The remaining proceeds were held in cash equivalent balances at quarter-end. As a result, cash and cash equivalents increased from $43.5 million at June 30, 2013 to $108.7 million at September 30, 2013. Cash and cash equivalents were $31.5 million at September 30, 2012.
- In August, the Company expanded its credit facility from $597.5 million to $633.0 million, which includes a $415.5 million domestic revolving credit facility and a $20 million multi-currency revolving credit facility, neither of which were drawn at September 30, 2013.
- Net deferred tax liabilities were $200.1 million at September 30, 2013, compared with $186.5 million a year ago.
- Stockholders' equity increased in the quarter to $816.6 million from $670.5 million at September 30, 2013.
Conference Call Information
PRA will hold a conference call today with investors at 5:30 p.m. ET to discuss its third quarter 2013 results. Investors may access the call by calling 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 72546774. A replay will be available approximately one hour after the call ends and will remain available until November 6, 2013. Investors may access the replay of the call by calling 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. To access the replay, use the conference ID 72546774. Investors also may listen to the conference call via webcast, both live and archived, at http://ir.PortfolioRecovery.com/events.cfm.
About PRA
As a leader in the U.S. debt buying industry, Portfolio Recovery Associates, Inc. (PRA) returns capital to banks and other creditors that helps expand financial services for consumers. PRA collaborates with its customers to create affordable, realistic debt repayment plans. The company also provides a broad range of fee-based services to local governments and law enforcement, U.S. businesses, institutional investors, global hedge funds, and U.K. banks and creditors.
PRA was named one of Fortune's 100 Fastest-Growing Companies for 2013 and 2012. The company also has been named to the Top 25 of Forbes' Best Small Companies in America for the past two years, and has been annually ranked on Forbes' list since 2007. For more information, please visit www.PortfolioRecovery.com.
About Forward-Looking Statements
Statements herein which are not historical, including PRA's or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, including future revenue and earnings growth, statements with respect to future contributions of its subsidiaries to earnings and future portfolio-purchase opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include references to PRA's presentations and webcasts. The forward-looking statements in this press release are based upon management's beliefs, assumptions and expectations of PRA's future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors. Additional risk factors and other risks are described from time to time in PRA's filings with the Securities and Exchange Commission (SEC) including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, filed with the SEC and available through PRA's website, which contain a more detailed discussion of PRA's business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the SEC or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.
| Portfolio Recovery Associates, Inc. | ||||
| Unaudited Consolidated Income Statements | ||||
| (in thousands, except per share amounts) | ||||
| Three Months | Three Months | Nine Months | Nine Months | |
| Ended | Ended | Ended | Ended | |
| September 30, | September 30, | September 30, | September 30, | |
| 2013 | 2012 | 2013 | 2012 | |
| Revenues: | ||||
| Income recognized on finance receivables, net | $ 171,456 | $ 135,754 | $ 494,818 | $ 392,566 |
| Fee income | 26,306 | 14,765 | 55,464 | 45,983 |
| Total revenues | 197,762 | 150,519 | 550,282 | 438,549 |
| Operating expenses: | ||||
| Compensation and employee services | 52,882 | 41,334 | 146,081 | 123,508 |
| Legal collection fees | 10,206 | 8,635 | 31,343 | 25,241 |
| Legal collection costs | 19,801 | 15,810 | 63,020 | 57,705 |
| Agent fees | 1,404 | 1,545 | 4,293 | 4,495 |
| Outside fees and services | 8,707 | 10,131 | 24,789 | 21,575 |
| Communications | 7,786 | 6,777 | 24,307 | 22,037 |
| Rent and occupancy | 1,950 | 1,786 | 5,462 | 5,053 |
| Depreciation and amortization | 3,753 | 3,623 | 10,653 | 10,833 |
| Other operating expenses | 5,408 | 3,820 | 14,756 | 12,027 |
| Impairment of goodwill | 6,397 | -- | 6,397 | -- |
| Total operating expenses | 118,294 | 93,461 | 331,101 | 282,474 |
| Income from operations | 79,468 | 57,058 | 219,181 | 156,075 |
| Other income and (expense): | ||||
| Interest income | -- | -- | -- | 8 |
| Interest expense | (3,995) | (2,189) | (9,607) | (7,223) |
| Income before income taxes | 75,473 | 54,869 | 209,574 | 148,860 |
| Provision for income taxes | 26,262 | 21,742 | 78,432 | 58,493 |
| Net income | $ 49,211 | $ 33,127 | $ 131,142 | $ 90,367 |
| Adjustment for income/(loss) attributable to redeemable noncontrolling interest | 1,873 | (187) | 1,605 | (424) |
| Net income attributable to Portfolio Recovery Associates, Inc. | $ 47,338 | $ 33,314 | $ 129,537 | $ 90,791 |
| Net income per common share attributable to Portfolio Recovery Associates, Inc.: | ||||
| Basic | $ 0.94 | $ 0.66 | $ 2.56 | $ 1.78 |
| Diluted | $ 0.93 | $ 0.65 | $ 2.54 | $ 1.77 |
| Weighted average number of shares outstanding: | ||||
| Basic | 50,154 | 50,643 | 50,571 | 51,102 |
| Diluted | 50,660 | 51,066 | 51,039 | 51,420 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Consolidated Balance Sheets | ||
| (in thousands, except per share amounts) | ||
| September 30, | December 31, | |
| ASSETS | 2013 | 2012 |
| Cash and cash equivalents | $ 108,705 | $ 32,687 |
| Finance receivables, net | 1,256,822 | 1,078,951 |
| Accounts receivable, net | 12,047 | 10,486 |
| Income taxes receivable | 2,708 | -- |
| Property and equipment, net | 28,059 | 25,312 |
| Goodwill | 102,891 | 109,488 |
| Intangible assets, net | 16,746 | 20,364 |
| Other assets | 20,007 | 11,668 |
| Total assets | $ 1,547,985 | $ 1,288,956 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Accounts payable | $ 14,446 | $ 12,155 |
| Accrued expenses and other liabilities | 33,023 | 18,953 |
| Income taxes payable | 740 | 3,125 |
| Accrued payroll and bonuses | 20,454 | 12,804 |
| Net deferred tax liability | 200,109 | 185,277 |
| Line of credit | -- | 127,000 |
| Long-term debt | 452,229 | 200,542 |
| Total liabilities | 721,001 | 559,856 |
| Redeemable noncontrolling Interest | 10,336 | 20,673 |
| Stockholders' equity: | ||
| Preferred stock, par value $0.01, authorized shares, 2,000, | ||
| issued and outstanding shares - 0 | -- | -- |
| Common stock, par value $0.01, 60,000 authorized shares, | ||
| 49,747 issued and outstanding shares at September 30, 2013, | ||
| and 50,727 issued and outstanding shares at December 31, 2012 | 498 | 507 |
| Additional paid-in capital | 129,570 | 150,878 |
| Retained earnings | 683,728 | 554,191 |
| Accumulated other comprehensive income | 2,852 | 2,851 |
| Total stockholders' equity | 816,648 | 708,427 |
| Total liabilities and equity | $ 1,547,985 | $ 1,288,956 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| Nine Months | Nine Months | |
| Ended | Ended | |
| September 30, | September 30, | |
| 2013 | 2012 | |
| Cash flows from operating activities: | ||
| Net income | $ 131,142 | $ 90,367 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Amortization of share-based compensation | 10,209 | 8,361 |
| Depreciation and amortization | 10,653 | 10,833 |
| Impairment of goodwill | 6,397 | -- |
| Deferred tax expense/(benefit) | 2,359 | (7,377) |
| Changes in operating assets and liabilities: | ||
| Other assets | (1,147) | (353) |
| Accounts receivable | (1,497) | 1,579 |
| Accounts payable | 2,237 | (856) |
| Income taxes | (5,062) | (7,024) |
| Accrued expenses | 9,129 | 931 |
| Accrued payroll and bonuses | 7,660 | (2,799) |
| Net cash provided by operating activities | 172,080 | 93,662 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (9,913) | (5,362) |
| Acquisition of finance receivables, net of buybacks | (546,201) | (329,444) |
| Collections applied to principal on finance receivables | 368,693 | 286,907 |
| Business acquisition, net of cash acquired | -- | (48,653) |
| Net cash used in investing activities | (187,421) | (96,552) |
| Cash flows from financing activities: | ||
| Income tax benefit from share-based compensation | 2,742 | 1,484 |
| Proceeds from line of credit | 217,000 | 160,000 |
| Principal payments on line of credit | (344,000) | (130,000) |
| Repurchases of common stock | (58,511) | (22,726) |
| Cash paid for purchase of portion of noncontrolling interest | (1,150) | -- |
| Distributions paid to noncontrolling interest | (51) | -- |
| Principal payments on long-term debt | (4,109) | (572) |
| Gross proceeds from convertible debt | 287,500 | -- |
| Issuance costs relating to convertible debt | (8,215) | -- |
| Net cash provided by financing activities | 91,206 | 8,186 |
| Effect of exchange rate on cash | 153 | (505) |
| Net increase in cash and cash equivalents | 76,018 | 4,791 |
| Cash and cash equivalents, beginning of year | 32,687 | 26,697 |
| Cash and cash equivalents, end of period | $ 108,705 | $ 31,488 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | $ 9,333 | $ 7,577 |
| Cash paid for income taxes | 78,434 | 71,521 |
| Noncash investing and financing activities: | ||
| Adjustment of the noncontrolling interest measurement amount | $ 393 | $ (2,852) |
| Purchase of noncontrolling interest | 9,162 | -- |
| Distributions payable relating to noncontrolling interest | 1,237 | 261 |
| Employee stock relinquished for payment of taxes | (4,103) | (2,170) |
| Summary Portfolio Data at September 30, 2013, Entire Domestic Portfolio | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996 | $ 3,080 | $ 10,219 | $ -- | $ 10,198 | $ 21 | 332% |
| 1997 | 7,685 | 25,598 | -- | 25,483 | 115 | 333% |
| 1998 | 11,089 | 37,633 | -- | 37,317 | 316 | 339% |
| 1999 | 18,898 | 69,888 | -- | 69,257 | 631 | 370% |
| 2000 | 25,020 | 118,026 | -- | 116,394 | 1,632 | 472% |
| 2001 | 33,481 | 178,250 | -- | 175,420 | 2,830 | 532% |
| 2002 | 42,325 | 202,312 | -- | 197,745 | 4,567 | 478% |
| 2003 | 61,447 | 272,864 | -- | 264,086 | 8,778 | 444% |
| 2004 | 59,176 | 205,837 | -- | 197,371 | 8,466 | 348% |
| 2005 | 143,166 | 321,502 | 6,300 | 309,176 | 12,326 | 225% |
| 2006 | 107,670 | 216,746 | 5,860 | 206,698 | 10,048 | 201% |
| 2007 | 258,383 | 524,973 | 22,366 | 473,083 | 51,890 | 203% |
| 2008 | 275,148 | 522,300 | 30,887 | 466,251 | 56,049 | 190% |
| 2009 | 281,428 | 889,032 | 40,630 | 713,843 | 175,189 | 316% |
| 2010 | 358,082 | 1,007,929 | 91,068 | 698,978 | 308,951 | 281% |
| 2011 | 394,029 | 951,207 | 179,344 | 500,565 | 450,642 | 241% |
| 2012 | 511,638 | 962,940 | 367,792 | 287,187 | 675,753 | 188% |
| 2013 | 535,377 | 967,173 | 490,761 | 95,288 | 871,885 | 181% |
| Total | $ 3,127,122 | $ 7,484,429 | $ 1,235,008 | $ 4,844,340 | $ 2,640,089 | 239% |
| Summary Portfolio Data at September 30, 2013, Purchased Bankruptcy Portfolio - Domestic | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996-2003 | $ -- | $ -- | $ -- | $ -- | $ -- | 0% |
| 2004 | 7,468 | 14,533 | -- | 14,477 | 56 | 195% |
| 2005 | 29,301 | 43,673 | 29 | 43,610 | 63 | 149% |
| 2006 | 17,630 | 31,733 | 32 | 31,484 | 249 | 180% |
| 2007 | 78,541 | 104,787 | 162 | 103,907 | 880 | 133% |
| 2008 | 108,600 | 167,698 | 3,874 | 162,961 | 4,737 | 154% |
| 2009 | 156,039 | 463,887 | 20,871 | 382,913 | 80,974 | 297% |
| 2010 | 209,197 | 509,373 | 55,021 | 363,019 | 146,354 | 243% |
| 2011 | 182,085 | 300,929 | 102,783 | 143,351 | 157,578 | 165% |
| 2012 | 253,067 | 346,533 | 192,229 | 96,030 | 250,503 | 137% |
| 2013 | 206,219 | 271,613 | 182,079 | 35,286 | 236,327 | 132% |
| Total | $ 1,248,147 | $ 2,254,759 | $ 557,080 | $ 1,377,038 | $ 877,721 | 181% |
| Summary Portfolio Data at September 30, 2013, Core Portfolio - Domestic | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996 | $ 3,080 | $ 10,219 | $ -- | $ 10,198 | $ 21 | 332% |
| 1997 | 7,685 | 25,598 | -- | 25,483 | 115 | 333% |
| 1998 | 11,089 | 37,633 | -- | 37,317 | 316 | 339% |
| 1999 | 18,898 | 69,888 | -- | 69,257 | 631 | 370% |
| 2000 | 25,020 | 118,026 | -- | 116,394 | 1,632 | 472% |
| 2001 | 33,481 | 178,250 | -- | 175,420 | 2,830 | 532% |
| 2002 | 42,325 | 202,312 | -- | 197,745 | 4,567 | 478% |
| 2003 | 61,447 | 272,864 | -- | 264,086 | 8,778 | 444% |
| 2004 | 51,708 | 191,304 | -- | 182,894 | 8,410 | 370% |
| 2005 | 113,865 | 277,829 | 6,271 | 265,566 | 12,263 | 244% |
| 2006 | 90,040 | 185,013 | 5,828 | 175,214 | 9,799 | 205% |
| 2007 | 179,842 | 420,186 | 22,204 | 369,176 | 51,010 | 234% |
| 2008 | 166,548 | 354,602 | 27,013 | 303,290 | 51,312 | 213% |
| 2009 | 125,389 | 425,145 | 19,759 | 330,930 | 94,215 | 339% |
| 2010 | 148,885 | 498,556 | 36,047 | 335,959 | 162,597 | 335% |
| 2011 | 211,944 | 650,278 | 76,561 | 357,214 | 293,064 | 307% |
| 2012 | 258,571 | 616,407 | 175,563 | 191,157 | 425,250 | 238% |
| 2013 | 329,158 | 695,560 | 308,682 | 60,002 | 635,558 | 211% |
| Total | $ 1,878,975 | $ 5,229,670 | $ 677,928 | $ 3,467,302 | $ 1,762,368 | 278% |
| FINANCIAL HIGHLIGHTS | ||||||
| Three Months Ended | Nine Months Ended | |||||
| September 30, | % | September 30, | % | |||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |
| EARNINGS (in thousands) | ||||||
| Income recognized on finance receivables, net | $ 171,456 | $ 135,754 | 26% | $ 494,818 | $ 392,566 | 26% |
| Fee income | 26,306 | 14,765 | 78% | 55,464 | 45,983 | 21% |
| Total revenues | 197,762 | 150,519 | 31% | 550,282 | 438,549 | 25% |
| Operating expenses | 118,294 | 93,461 | 27% | 331,101 | 282,474 | 17% |
| Income from operations | 79,468 | 57,058 | 39% | 219,181 | 156,075 | 40% |
| Net interest expense | 3,995 | 2,189 | 83% | 9,607 | 7,215 | 33% |
| Net income | 49,211 | 33,127 | 49% | 131,142 | 90,367 | 45% |
| Net income attributable to Portfolio Recovery Associates, Inc. | 47,338 | 33,314 | 42% | 129,537 | 90,791 | 43% |
| PERIOD-END BALANCES (in thousands) | ||||||
| Cash and cash equivalents | $ 108,705 | $ 31,488 | 245% | $ 108,705 | $ 31,488 | 245% |
| Finance receivables, net | 1,256,822 | 973,594 | 29% | 1,256,822 | 973,594 | 29% |
| Goodwill and intangible assets, net | 119,636 | 121,623 | -2% | 119,636 | 121,623 | -2% |
| Total assets | 1,547,985 | 1,169,698 | 32% | 1,547,985 | 1,169,698 | 32% |
| Line of credit and long-term debt | 452,229 | 250,674 | 80% | 452,229 | 250,674 | 80% |
| Total liabilities | 721,001 | 479,211 | 50% | 721,001 | 479,211 | 50% |
| Total equity | 816,647 | 670,489 | 22% | 816,647 | 670,489 | 22% |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | ||||||
| Cash collections | $ 291,651 | $ 229,052 | 27% | $ 863,511 | $ 679,473 | 27% |
| Cash collections on fully amortized pools | 8,762 | 6,762 | 30% | 25,719 | 22,762 | 13% |
| Principal amortization without allowance charges | 122,776 | 91,735 | 34% | 370,286 | 282,645 | 31% |
| Principal amortization with allowance charges | 120,195 | 93,298 | 29% | 368,693 | 286,906 | 29% |
| Principal amortization w/ allowance charges as % of cash collections: | ||||||
| Including fully amortized pools | 41.2% | 40.7% | 1% | 42.7% | 42.2% | 1% |
| Excluding fully amortized pools | 42.5% | 42.0% | 1% | 44.0% | 43.7% | 1% |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | ||||||
| Allowance (reversal)/charge | (2,581) | 1,563 | -265% | (1,593) | 4,261 | -137% |
| Allowance (reversal)/charge to period-end net finance receivables | -0.2% | 0.2% | -228% | -0.1% | 0.4% | -129% |
| Allowance (reversal)/charge to net finance receivable income | -1.5% | 1.2% | -231% | -0.3% | 1.1% | -130% |
| Allowance (reversal)/charge to cash collections | -0.9% | 0.7% | -230% | -0.2% | 0.6% | -129% |
| PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) | ||||||
| Purchase price - core | $ 89,044 | $ 52,703 | 69% | $ 329,309 | $ 174,319 | 89% |
| Face value - core | 1,352,877 | 674,135 | 101% | 3,930,066 | 2,679,734 | 47% |
| Purchase price - bankruptcy | 41,794 | 41,277 | 1% | 210,662 | 151,629 | 39% |
| Face value - bankruptcy | 215,957 | 341,359 | -37% | 2,578,980 | 1,158,050 | 123% |
| Purchase price - UK | 11,037 | 8,981 | 23% | 17,305 | 13,489 | 28% |
| Face value - UK | 218,528 | 248,667 | -12% | 318,950 | 408,797 | -22% |
| Purchase price - total | 141,875 | 102,961 | 38% | 557,276 | 339,437 | 64% |
| Face value - total | 1,787,362 | 1,264,161 | 41% | 6,827,996 | 4,246,581 | 61% |
| Number of portfolios - total | 79 | 107 | -26% | 264 | 312 | -15% |
| ESTIMATED REMAINING COLLECTIONS (in thousands) | ||||||
| Estimated remaining collections - core | $ 1,794,640 | $ 1,346,562 | 33% | $ 1,794,640 | $ 1,346,562 | 33% |
| Estimated remaining collections - bankruptcy | 877,721 | 791,018 | 11% | 877,721 | 791,018 | 11% |
| Estimated remaining collections - total | 2,672,361 | 2,137,580 | 25% | 2,672,361 | 2,137,580 | 25% |
| SHARE DATA-ADJUSTED (7) (share amounts in thousands) | ||||||
| Net income per common share - diluted | $ 0.93 | $ 0.65 | 43% | $ 2.54 | $ 1.77 | 44% |
| Weighted average number of shares outstanding - diluted | 50,660 | 51,066 | -1% | 51,039 | 51,420 | -1% |
| Shares repurchased | 989 | -- | 0% | 1,203 | 994 | 21% |
| Average price paid per share repurchased (including acquisitions costs) | $ 50.55 | $ -- | 0% | $ 48.62 | $ 22.85 | 113% |
| Closing market price | $ 59.93 | $ 34.81 | 72% | $ 59.93 | $ 34.81 | 72% |
| RATIOS AND OTHER DATA (dollars in thousands) | ||||||
| Return on average equity (1) | 23.5% | 20.3% | 16% | 22.4% | 19.2% | 17% |
| Return on revenue (2) | 24.9% | 22.0% | 13% | 23.8% | 20.6% | 16% |
| Return on average assets (3) | 12.5% | 11.4% | 10% | 12.0% | 10.5% | 14% |
| Operating margin (4) | 40.2% | 37.9% | 6% | 39.8% | 35.6% | 12% |
| Operating expense to cash receipts (5) | 37.2% | 38.3% | -3% | 36.0% | 38.9% | -7% |
| Debt to equity (6) | 55.4% | 37.4% | 48% | 55.4% | 37.4% | 48% |
| Number of collectors | 2,054 | 1,992 | 3% | 2,054 | 1,992 | 3% |
| Number of full-time equivalent employees | 3,223 | 3,103 | 4% | 3,223 | 3,103 | 4% |
| Cash receipts (5) | $ 317,957 | $ 243,817 | 30% | $ 918,975 | $ 725,456 | 27% |
| Line of credit - unused portion at period end | 435,500 | 214,450 | 103% | 435,500 | 214,450 | 103% |
| (1) Calculated as annualized net income divided by average equity for the period | ||||||
| (2) Calculated as net income divided by total revenues | ||||||
| (3) Calculated as annualized net income divided by average assets for the period | ||||||
| (4) Calculated as income from operations divided by total revenues | ||||||
| (5) "Cash receipts" is defined as cash collections plus fee income | ||||||
| (6) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt | ||||||
| (7) All per share data has been adjusted for a 3 for 1 stock split by means of a stock dividend which was declared on June 10, 2013 and payable August 1, 2013 to holders of record as of July 1, 2013 | ||||||
| FINANCIAL HIGHLIGHTS | |||||
| For the Quarter Ended | |||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |
| 2013 | 2013 | 2013 | 2012 | 2012 | |
| EARNINGS (in thousands) | |||||
| Income recognized on finance receivables, net | $ 171,456 | $ 168,570 | $ 154,792 | $ 138,068 | $ 135,754 |
| Fee income | 26,306 | 14,391 | 14,767 | 16,183 | 14,765 |
| Total revenues | 197,762 | 182,961 | 169,559 | 154,251 | 150,519 |
| Operating expenses | 118,294 | 109,135 | 103,672 | 94,262 | 93,461 |
| Income from operations | 79,468 | 73,826 | 65,887 | 59,989 | 57,058 |
| Net interest expense | 3,995 | 2,923 | 2,689 | 1,816 | 2,189 |
| Net income | 49,211 | 43,414 | 38,517 | 35,732 | 33,127 |
| Net income attributable to Portfolio Recovery Associates, Inc. | 47,338 | 43,599 | 38,600 | 35,802 | 33,314 |
| PERIOD-END BALANCES (in thousands) | |||||
| Cash and cash equivalents | $ 108,705 | $ 43,459 | $ 39,111 | $ 32,687 | $ 31,488 |
| Finance receivables, net | 1,256,822 | 1,236,859 | 1,169,747 | 1,078,951 | 973,594 |
| Goodwill and intangible assets, net | 119,636 | 124,349 | 125,462 | 129,852 | 121,623 |
| Total assets | 1,547,985 | 1,457,246 | 1,382,739 | 1,288,956 | 1,169,698 |
| Line of credit and long-term debt | 452,229 | 413,774 | 371,159 | 327,542 | 250,674 |
| Total liabilities | 721,001 | 655,012 | 621,413 | 559,856 | 479,211 |
| Total equity | 816,647 | 791,898 | 750,990 | 708,427 | 670,489 |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | |||||
| Cash collections | $ 291,651 | $ 296,397 | $ 275,463 | $ 229,211 | $ 229,052 |
| Cash collections on fully amortized pools | 8,762 | 10,612 | 6,345 | 6,211 | 6,762 |
| Principal amortization without allowance charges | 122,776 | 129,012 | 118,498 | 88,851 | 91,735 |
| Principal amortization with allowance charges | 120,195 | 127,827 | 120,671 | 91,142 | 93,298 |
| Principal amortization w/ allowance charges as % of cash collections: | |||||
| Including fully amortized pools | 41.2% | 43.1% | 43.8% | 39.8% | 40.7% |
| Excluding fully amortized pools | 42.5% | 44.7% | 44.8% | 40.9% | 42.0% |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | |||||
| Allowance (reversal)/charge | (2,581) | (1,185) | 2,173 | 2,291 | 1,563 |
| Allowance (reversal)/charge to period-end net finance receivables | -0.2% | -0.1% | 0.2% | 0.2% | 0.2% |
| Allowance (reversal)/charge to net finance receivable income | -1.5% | -0.7% | 1.4% | 1.7% | 1.2% |
| Allowance (reversal)/charge to cash collections | -0.9% | -0.4% | 0.8% | 1.0% | 0.7% |
| PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) | |||||
| Purchase price - core | $ 89,044 | $ 113,314 | $ 126,951 | $ 85,476 | $ 52,703 |
| Face value - core | 1,352,877 | 1,178,229 | 1,398,960 | 901,512 | 674,135 |
| Purchase price - bankruptcy | 41,794 | 82,273 | 86,595 | 111,001 | 41,277 |
| Face value - bankruptcy | 215,957 | 1,926,515 | 436,508 | 946,927 | 341,359 |
| Purchase price - UK | 11,037 | 4,881 | 1,387 | 2,631 | 8,981 |
| Face value - UK | 218,528 | 81,852 | 18,570 | 59,953 | 248,667 |
| Purchase price - total | 141,875 | 200,468 | 214,933 | 199,108 | 102,961 |
| Face value - total | 1,787,362 | 3,186,596 | 1,854,038 | 1,908,392 | 1,264,161 |
| Number of portfolios - total | 79 | 94 | 91 | 104 | 107 |
| ESTIMATED REMAINING COLLECTIONS (in thousands) | |||||
| Estimated remaining collections - core | $ 1,794,640 | $ 1,711,006 | $ 1,562,383 | $ 1,410,053 | $ 1,346,562 |
| Estimated remaining collections - bankruptcy | 877,721 | 925,223 | 924,520 | 905,136 | 791,018 |
| Estimated remaining collections - total | 2,672,361 | 2,636,229 | 2,486,903 | 2,315,189 | 2,137,580 |
| SHARE DATA-ADJUSTED (7) (share amounts in thousands) | |||||
| Net income per common share - diluted | $ 0.93 | $ 0.85 | $ 0.75 | $ 0.70 | $ 0.65 |
| Weighted average number of shares outstanding - diluted | 50,660 | 51,183 | 51,273 | 51,217 | 51,066 |
| Shares repurchased | 989 | 166 | 48 | -- | -- |
| Average price paid per share repurchased (including acquisitions costs) | $ 50.55 | $ 39.82 | $ 39.34 | $ 31.01 | $ -- |
| Closing market price | $ 59.93 | $ 51.21 | $ 42.31 | $ 35.62 | $ 34.81 |
| RATIOS AND OTHER DATA (dollars in thousands) | |||||
| Return on average equity (1) | 23.5% | 22.5% | 21.1% | 20.6% | 20.3% |
| Return on revenue (2) | 24.9% | 23.7% | 22.7% | 23.2% | 22.0% |
| Return on average assets (3) | 12.5% | 12.1% | 11.3% | 11.8% | 11.4% |
| Operating margin (4) | 40.2% | 40.4% | 38.9% | 38.9% | 37.9% |
| Operating expense to cash receipts (5) | 37.2% | 35.1% | 35.7% | 38.4% | 38.3% |
| Debt to equity (6) | 55.4% | 52.3% | 49.4% | 46.2% | 37.4% |
| Number of collectors | 2,054 | 2,190 | 2,159 | 2,153 | 1,992 |
| Number of full-time equivalent employees | 3,223 | 3,362 | 3,250 | 3,221 | 3,103 |
| Cash receipts (5) | $ 317,957 | $ 310,788 | $ 290,230 | $ 245,394 | $ 243,817 |
| Line of credit - unused portion at period end | 435,500 | 184,000 | 228,000 | 273,000 | 214,450 |
| (1) Calculated as annualized net income divided by average equity for the period | |||||
| (2) Calculated as net income divided by total revenues | |||||
| (3) Calculated as annualized net income divided by average assets for the period | |||||
| (4) Calculated as income from operations divided by total revenues | |||||
| (5) "Cash receipts" is defined as cash collections plus fee income | |||||
| (6) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt | |||||
| (7) All per share data has been adjusted to reflect the 3-for-1 stock split by means of a stock dividend which was declared on June 10, 2013 and payable August 1, 2013 to holders of record as of July 1, 2013 | |||||