PRA Group
Aug 1, 2012

Portfolio Recovery Associates Reports Second Quarter 2012 Results

Portfolio Recovery Associates Reports Second Quarter 2012 Results

 

NORFOLK, Va., Aug. 1, 2012 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (Nasdaq:) PRAA a specialized financial and business services company and market leader in the consumer debt purchase and collection industry, today reported its second quarter 2012 results.

 

Second Quarter Highlights

Net income for the first six months of 2012 was $57.5 million, or $3.34 per diluted share, compared with $48.7 million, or $2.83 per diluted share, for the first six months of 2011. Year-to-date 2012 revenues were $288.0 million, compared with $226.6 million for the first six months of 2011.

"Today, PRA reported a record quarter for cash collections, revenue and net income, in addition to a record quarter of portfolio acquisitions," said Steve Fredrickson, chairman, president and chief executive officer. "I am particularly pleased with our ROE this quarter in excess of 20%, achieving the benchmark that we set as a long-term goal.

"It is important to note that we achieved these record results while making planned increases in court costs for legal collections from those who can, but won't pay back their debt. This renewed focus resulted in legal cash collections increasing 54% over second quarter 2011, exceeding our expectations," said Fredrickson.

"Our account representatives, working with customers to pay down their debt, also successfully negotiated more than two million U.S. payments in a single quarter for the first time in the Company's history," Fredrickson said.

"Income from our fee-for-service businesses increased 6% over the second quarter of 2011, due in part to income generated in the UK. We continue to focus on sales strategies for our domestic fee-for-service businesses, in an effort to improve their profitability," Fredrickson said.

The Company repurchased approximately 301,000 shares of stock in the second quarter. Through June 30, 2012, the Company has invested a total of $22.7 million under a $100 million repurchase program. "We continue to monitor market conditions to administer the remaining $77 million," Fredrickson said. 

FINANCIAL AND OPERATING REVIEW – SECOND QUARTER

 Revenues

Finance Receivable Income

           
Cash Collection Source ($ in thousands) Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011
Call Center & Other Collections  $ 73,582  $ 79,805  $ 61,227  $ 63,967  $ 64,566
External Legal Collections  41,464  34,852  26,316  27,245  27,329
Internal Legal Collections  25,361  23,345  17,615  16,444  16,007
Purchased Bankruptcy Collections  92,018  79,994  75,166  74,512  68,379
Total Cash Collections  $ 232,425  $ 217,996  $ 180,324  $ 182,168  $ 176,281
           

Fee Income

Operating Expenses and Income

Balance Sheet

Conference Call Information

The Company will hold a conference call with investors at 5:30 p.m. ET, Wednesday, August 1, 2012, to discuss its second quarter results. Investors may access the call by dialing 888-679-8018 for domestic callers or 617-213-4845 for international callers using the pass code 59792795. A replay will be available approximately one hour after the call ends and will remain available for seven days. Investors may access the replay of the call by dialing 888-286-8010 for domestic callers or 617-801-6888 for international callers using the pass code 61025341. 

Investors also may listen to the conference call via webcast, both live and archived, at the company's website, www.PortfolioRecovery.com at the Investor Relations main page.

About Portfolio Recovery Associates, Inc.

Portfolio Recovery Associates, Inc. (PRA) is a specialized financial and business services company.  A market leader in the consumer debt purchase and collection industry, PRA has a longstanding culture of compliance, engaging collaboratively with its customers to create realistic, affordable repayment plans.   PRA also provides a broad range of fee-based services, including revenue enhancement for local governments; vehicle location, skip-tracing and collateral recovery for auto lenders, governments, and law enforcement; contingent consumer debt recovery on behalf of banks, credit providers, and debt purchasers; and filing of class action claims on behalf of institutional investors, manufacturers, and retailers. The Company has more than 3,000 employees in 10 U.S. states and the United Kingdom. 

PRA has been named to the Forbes 100 Best Small Companies in America annual rankings list for five consecutive years (2007 – 2011).  The Company's shares are publicly traded on the NASDAQ Global Select Market under the symbol "PRAA."  Additional information about Portfolio Recovery Associates is available at www.PortfolioRecovery.com.

The Portfolio Recovery Associates logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13727

Statements herein which are not historical, including Portfolio Recovery Associates' or 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 Portfolio Recovery Associates' presentations and web casts.   The forward-looking statements in this press release are based upon management's beliefs, assumptions and expectations of the Company'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, including the risk factors and other risks that are described from time to time in the Company's filings with the Securities and Exchange Commission 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 Securities and Exchange Commission and available through the Company's website, which contain a more detailed discussion of the Company'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 Securities and Exchange Commission or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company'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
Ended
June 30,
2012
Three Months
Ended
June 30,
2011
Six Months
Ended
June 30,
2012
Six Months
Ended
June 30,
2011
         
Revenues:        
Income recognized on finance receivables, net $ 132,587 $ 100,303 $ 256,812 $ 196,277
Fee income 15,298 14,492 31,218 30,295
         
Total revenues 147,885 114,795 288,030 226,572
         
Operating expenses:        
Compensation and employee services 42,479 34,815 82,173 68,968
Legal collection fees 8,988 5,970 16,606 11,719
Legal collection costs 18,227 9,879 41,895 19,218
Agent fees 1,323 1,724 2,951 4,362
Outside fees and services 5,584 4,066 11,444 7,481
Communications 7,007 5,706 15,260 12,020
Rent and occupancy 1,656 1,438 3,268 2,835
Depreciation and amortization 3,555 3,316 7,210 6,532
Other operating expenses 4,470 3,501 8,206 6,353
         
Total operating expenses 93,289 70,415 189,013 139,488
         
Gain on sale of property -- 1,157 -- 1,157
         
Income from operations 54,596 45,537 99,017 88,241
         
Other income and (expense):        
Interest income 7 -- 8 --
Interest expense (2,381) (2,635) (5,034) (5,502)
         
Income before income taxes 52,222 42,902 93,991 82,739
         
Provision for income taxes 20,171 17,326 36,751 33,454
         
Net income $ 32,051 $ 25,576 $ 57,240 $ 49,285
         
Less net income/(loss) attributable to redeemable noncontrolling interest 36 2 (237) 590
         
Net income attributable to Portfolio Recovery Associates, Inc. $ 32,015 $ 25,574 $ 57,477 $ 48,695
         
Net income per common share:        
Basic  $ 1.88  $ 1.49  $ 3.36  $ 2.85
Diluted  $ 1.87  $ 1.48  $ 3.34  $ 2.83
         
Weighted average number of shares outstanding:        
Basic 17,027 17,108 17,111 17,100
Diluted 17,133 17,225 17,200 17,212
 
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
     
ASSETS June 30,
2012
December 31,
2011
     
Cash and cash equivalents $ 42,621 $ 26,697
Finance receivables, net 966,508 926,734
Accounts receivable, net 8,580 7,862
Property and equipment, net 26,016 25,727
Goodwill 99,384 61,678
Intangible assets, net 22,364 14,596
Other assets 8,265 7,829
     
Total assets $ 1,173,738 $ 1,071,123
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
Accounts payable and accrued liabilities $ 37,423 $ 42,660
Net deferred tax liability 190,639 193,898
Line of credit 292,000 220,000
Long-term debt 849 1,246
     
Total liabilities 520,911 457,804
     
Redeemable noncontrolling Interest 19,381 17,831
     
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, 16,879 issued and outstanding shares at June 30, 2012, and 17,134 issued and outstanding shares at December 31, 2011 169 171
Additional paid-in capital 147,881 167,719
Retained earnings 485,075 427,598
Accumulated other comprehensive income 321 --
Total stockholders' equity 633,446 595,488
     
Total liabilities and stockholders' equity $ 1,173,738 $ 1,071,123
 
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
       
  Six Months
Ended
June 30,
2012
Six Months
Ended
June 30,
2011
 
Cash flows from operating activities:      
Net income $ 57,240 $ 49,285  
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of share-based compensation 5,576 4,622  
Depreciation and amortization 7,210 6,532  
Deferred tax (benefit)/expense (3,244) 23,171  
Gain on sale of property -- (1,157)  
Changes in operating assets and liabilities:      
Other assets 1,018 (711)  
Accounts receivable 3,410 2,249  
Accounts payable and accrued liabilities (19,682) 2,986  
       
Net cash provided by operating activities 51,528 86,977  
       
Cash flows from investing activities:      
Purchases of property and equipment (2,954) (3,682)  
Proceeds from sale of property -- 1,267  
Acquisition of finance receivables, net of buybacks (229,388) (194,906)  
Collections applied to principal on finance receivables 193,609 146,721  
Business acquisitions, net of cash acquired (48,653) --  
       
Net cash used in investing activities (87,386) (50,600)  
       
Cash flows from financing activities:      
Proceeds from exercise of options -- 149  
Income tax benefit from share-based compensation 1,435 459  
Proceeds from line of credit 151,000 2,000  
Principal payments on line of credit (79,000) (52,000)  
Repurchases of common stock (22,726) --  
Distributions paid to noncontrolling interest -- (2,059)  
Principal payments on long-term debt (396) (539)  
       
Net cash provided by/(used in) financing activities 50,313 (51,990)  
       
Effect of exchange rate on cash 1,469 --  
       
Net increase/(decrease) in cash and cash equivalents 15,924 (15,613)  
       
Cash and cash equivalents, beginning of year 26,697 41,094  
       
Cash and cash equivalents, end of period $ 42,621 $ 25,481  
       
Supplemental disclosure of cash flow information:      
Cash paid for interest $ 5,312 $ 5,256  
Cash paid for income taxes  44,509  6,784  
       
Noncash investing and financing activities:      
Adjustment of the noncontrolling interest measurement amount $ (2,048) $ (2,045)  
Distributions payable relating to noncontrolling interest  262  247  
Employee stock relinquished for payment of taxes  (2,077)  --   
       
FINANCIAL HIGHLIGHTS      
         
  Three Months Ended
June 30,
% Six Months Ended
June 30,
%
  2012 2011 Change 2012 2011 Change
EARNINGS (in thousands)            
Income recognized on finance receivables, net  $ 132,587  $ 100,303 32%  $ 256,812  $ 196,277 31%
Fee income  15,298  14,492 6%  31,218  30,295 3%
Total revenues  147,885  114,795 29%  288,030  226,572 27%
Operating expenses  93,289  70,415 32%  189,013  139,488 36%
Income from operations  54,596  45,537 20%  99,017  88,241 12%
Net interest expense  2,374  2,635 -10%  5,026  5,502 -9%
Net income  32,051  25,576 25%  57,240  49,285 16%
Net income attributable to Portfolio Recovery Associates, Inc.  32,015  25,574 25%  57,477  48,695 18%
             
PERIOD-END BALANCES (in thousands)            
Cash and cash equivalents  $ 42,621  $ 25,481 67%  $ 42,621  $ 25,481 67%
Finance receivables, net  966,508  879,515 10%  966,508  879,515 10%
Goodwill and intangible assets, net  121,748  77,643 57%  121,748  77,643 57%
Total assets  1,173,738  1,021,617 15%  1,173,738  1,021,617 15%
Line of credit  292,000  250,000 17%  292,000  250,000 17%
Total liabilities  520,911  463,153 12%  520,911  463,153 12%
Total equity  633,446  542,396 17%  633,446  542,396 17%
             
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)            
Cash collections  $ 232,425  $ 176,281 32%  $ 450,421  $ 342,998 31%
Principal amortization without allowance charges  97,634  73,695 32%  190,910  140,398 36%
Principal amortization with allowance charges  99,838  75,978 31%  193,608  146,721 32%
Principal amortization w/ allowance charges as % of cash collections:            
 Including fully amortized pools 43.0% 43.1% 0% 43.0% 42.8% 0%
 Excluding fully amortized pools 44.4% 45.7% -3% 44.6% 45.5% -2%
             
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)            
Balance at period-end  $ 89,269  $ 82,730 8%  $ 89,269  $ 82,730 8%
Allowance charge  2,204  2,283 -3%  2,698  6,323 -57%
Allowance charge to period-end net finance receivables 0.23% 0.26% -12% 0.28% 0.72% -61%
Allowance charge to net finance receivable income 1.66% 2.28% -27% 1.05% 3.22% -67%
Allowance charge to cash collections 0.95% 1.30% -27% 0.60% 1.84% -68%
             
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)            
Purchase price - core  $ 69,512  $ 52,323 33%  $ 121,616  $ 113,617 7%
Face value - core  1,033,331  1,034,898 0%  2,005,599  2,043,656 -2%
Purchase price - bankruptcy  53,460  37,204 44%  110,352  83,811 32%
Face value - bankruptcy  448,244  378,051 19%  816,691  860,993 -5%
Purchase price - total  122,972  89,527 37%  231,968  197,428 17%
Face value - total  1,481,575  1,412,949 5%  2,822,290  2,904,648 -3%
Number of portfolios - total 105 76 38% 187 155 21%
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)            
Estimated remaining collections - core  $ 1,305,641  $ 1,072,777 22%  $ 1,305,641  $ 1,072,777 22%
Estimated remaining collections - bankruptcy  802,353  743,228 8%  802,353  743,228 8%
Estimated remaining collections - total  2,107,994  1,816,005 16%  2,107,994  1,816,005 16%
             
SHARE DATA (share amounts in thousands)            
Net income per common share - diluted  $ 1.87  $ 1.48 26%  $ 3.34  $ 2.83 18%
Weighted average number of shares outstanding - diluted  17,133  17,225 -1%  17,200  17,212 0%
Shares repurchased  300,849  -- 100%  331,449  -- 100%
Average price paid per share repurchased (including acquisitions costs)  $ 68.62  -- 100%  $ 68.56  -- 100%
Closing market price  $ 91.26  $ 84.79 8%  $ 91.26  $ 84.79 8%
             
RATIOS AND OTHER DATA (dollars in thousands)            
Return on average equity (2) 20.34% 19.20% 6% 18.54% 18.74% -1%
Return on revenue (3) 21.67% 22.28% -3% 19.87% 21.75% -9%
Operating margin (4) 36.92% 39.67% -7% 34.38% 38.95% -12%
Operating expense to cash receipts (5) 37.66% 36.91% 2% 39.24% 37.37% 5%
Debt to equity (6) 46.33% 46.43% 0% 46.33% 46.43% 0%
Number of collectors 1,952 1,517 29% 1,952 1,517 29%
Number of employees 3,032 2,504 21% 3,032 2,504 21%
Cash receipts (5)  $ 247,723  $ 190,773 30%  $ 481,639  $ 373,293 29%
Line of credit - unused portion at period end  166,450  157,500 6%  166,450  157,500 6%
(1) Domestic portfolio only            
(2) Calculated as annualized net income divided by average equity for the period            
(3) Calculated as net income divided by total revenues            
(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            
 
FINANCIAL HIGHLIGHTS
  For the Quarter Ended
  June 30
2012
March 31
2012
December 31
2011
September 30
2011
June 30
2011
EARNINGS (in thousands)          
Income recognized on finance receivables, net  $ 132,587  $ 124,226  $ 102,743  $ 102,875  $ 100,303
Fee income  15,298  15,920  15,344  11,401  14,492
Total revenues  147,885  140,146  118,087  114,276  114,795
Operating expenses  93,289  95,725  72,134  70,447  70,415
Income from operations  54,596  44,421  45,953  43,830  45,537
Net interest expense  2,374  2,652  2,512  2,548  2,635
Net income  32,051  25,189  26,666  25,193  25,576
Net income attributable to Portfolio Recovery Associates, Inc.  32,015  25,462  26,590  25,506  25,574
           
PERIOD-END BALANCES (in thousands)          
Cash and cash equivalents  $ 42,621  $ 28,068  $ 26,697  $ 30,035  $ 25,481
Finance receivables, net  966,508  945,242  926,734  919,478  879,515
Goodwill and intangible assets, net  121,748  124,659  76,274  76,426  77,643
Total assets  1,173,738  1,142,026  1,071,123  1,064,104  1,021,617
Line of credit  292,000  265,000  220,000  260,000  250,000
Total liabilities  520,911  502,531  457,804  478,915  463,153
Total equity  633,446  620,712  595,488  568,305  542,396
           
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)          
Cash collections  $ 232,425  $ 217,996  $ 180,324  $ 182,168  $ 176,281
Principal amortization without allowance charges  97,634  93,276  74,481  78,552  73,695
Principal amortization with allowance charges  99,838  93,770  77,581  79,293  75,978
Principal amortization w/ allowance charges as % of cash collections:          
 Including fully amortized pools 43.0% 43.0% 43.0% 43.5% 43.1%
 Excluding fully amortized pools 44.4% 44.8% 44.9% 45.7% 45.7%
           
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)          
Balance at period-end  $ 89,269  $ 87,065  $ 86,571  $ 83,471  $ 82,730
Allowance charge  2,204  494  3,100  741  2,283
Allowance charge to period-end net finance receivables 0.23% 0.05% 0.33% 0.08% 0.26%
Allowance charge to net finance receivable income 1.66% 0.40% 3.02% 0.72% 2.28%
Allowance charge to cash collections 0.95% 0.23% 1.72% 0.41% 1.30%
           
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)          
Purchase price - core  $ 69,512  $ 52,104  $ 42,532  $ 57,240  $ 52,323
Face value - core  1,033,331  972,268  829,232  5,027,874  1,034,898
Purchase price - bankruptcy  53,460  56,892  46,360  64,848  37,204
Face value - bankruptcy  448,244  368,447  376,094  654,508  378,051
Purchase price - total  122,972  108,996  88,892  122,088  89,527
Face value - total  1,481,575  1,340,715  1,205,326  5,682,382  1,412,949
Number of portfolios - total 105 82 83 95 76
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)          
Estimated remaining collections - core  $ 1,305,641  $ 1,226,292  $ 1,159,086  $ 1,154,406  $ 1,072,777
Estimated remaining collections - bankruptcy  802,353  796,161  794,262  770,886  743,228
Estimated remaining collections - total  2,107,994  2,022,453  1,953,348  1,925,292  1,816,005
           
SHARE DATA (share amounts in thousands)          
Net income per common share - diluted  $ 1.87  $ 1.47  $ 1.54  $ 1.48  $ 1.48
Weighted average number of shares outstanding - diluted  17,133  17,267  17,269  17,228  17,225
Shares repurchased  300,849  30,600  --  --  --
Average price paid per share repurchased (including acquisitions costs)  $ 68.62  $ 68.02  --  --  --
Closing market price  $ 91.26  $ 71.72  $ 67.52  $ 62.22  $ 84.79
           
RATIOS AND OTHER DATA (dollars in thousands)          
Return on average equity (2) 20.34% 16.70% 18.18% 18.27% 19.20%
Return on revenue (3) 21.67% 17.97% 22.58% 22.05% 22.28%
Operating margin (4) 36.92% 31.70% 38.91% 38.35% 39.67%
Operating expense to cash receipts (5) 37.66% 40.92% 36.87% 36.39% 36.91%
Debt to equity (6) 46.33% 42.84% 37.15% 46.02% 46.43%
Number of collectors 1,952 1,934 1,658 1,520 1,517
Number of employees 3,032 3,014 2,641 2,504 2,504
Cash receipts (5)  $ 247,723  $ 233,916  $ 195,668  $ 193,569  $ 190,773
Line of credit - unused portion at period end  166,450  142,500  187,500  147,500  157,500
(1) Domestic portfolio only          
(2) Calculated as annualized net income divided by average equity for the period        
(3) Calculated as net income divided by total revenues          
(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        
 
Purchase Price Multiples at June 30, 2012, Entire Domestic Portfolio
($ in thousands)          
             
Purchase
Period
Purchase
Price
Total
Estimated
Collections
Net Finance
Receivables
Balance at
June 30, 2012
Actual Cash
Collections
Including Cash
Sales
Estimated
Remaining
Collections
Total Estimated
Collections to
Purchase Price
1996  $ 3,080  $ 10,224  $ --   $ 10,164  $ 60 332%
1997  7,685  25,483  --   25,362  121 332%
1998  11,089  37,581  --   37,059  522 339%
1999  18,898  69,686  --   68,559  1,127 369%
2000  25,020  117,519  --   114,480  3,039 470%
2001  33,481  176,515  --   172,207  4,308 527%
2002  42,325  200,317  --   192,918  7,399 473%
2003  61,448  269,818  --   256,522  13,296 439%
2004  59,176  203,927  --   190,819  13,108 345%
2005  143,169  311,951  9,339  295,027  16,924 218%
2006  107,693  217,485  13,508  194,265  23,220 202%
2007  258,391  509,676  44,369  429,798  79,878 197%
2008  275,153  527,884  78,254  398,512  129,372 192%
2009  281,441  811,928  99,319  515,276  296,652 288%
2010  358,153  874,225  176,437  426,544  447,681 244%
2011  395,809  854,491  312,083  196,685  657,806 216%
2012  231,878  429,042  227,361  15,560  413,482 185%
Total  $ 2,313,889  $ 5,647,752  $ 960,670  $ 3,539,757  $ 2,107,995 244%
             
             
Purchase Price Multiples at June 30, 2012, Purchased Bankruptcy Portfolio
($ in thousands)          
             
Purchase
Period
Purchase
Price
Total
Estimated
Collections
Net Finance
Receivables
Balance at
June 30, 2012
Actual Cash
Collections
Including Cash
Sales
Estimated
Remaining
Collections
Total Estimated
Collections to
Purchase Price
1996-2003  $ --   $ --   $ --   $ --   $ --  0%
2004  7,468  14,464  --   14,357  107 194%
2005  29,301  43,477  52  43,362  115 148%
2006  17,645  31,279  98  30,852  427 177%
2007  78,547  106,236  4,647  100,482  5,754 135%
2008  108,608  183,829  32,677  139,513  44,316 169%
2009  156,056  407,979  63,694  255,753  152,226 261%
2010  209,228  410,249  114,058  205,713  204,536 196%
2011  183,416  289,088  163,307  45,371  243,717 158%
2012  109,841  155,113  108,798  3,959  151,154 141%
Total  $ 900,110  $ 1,641,714  $ 487,331  $ 839,362  $ 802,352 182%
             
             
Purchase Price Multiples at June 30, 2012, Core Portfolio
($ in thousands)          
             
Purchase
Period
Purchase
Price
Total
Estimated
Collections
Net Finance
Receivables
Balance at
June 30, 2012
Actual Cash
Collections
Including Cash
Sales
Estimated
Remaining 
Collections
Total Estimated
Collections to
Purchase Price
1996  $ 3,080  $ 10,224  $ --   $ 10,164  $ 60 332%
1997  7,685  25,483  --   25,362  121 332%
1998  11,089  37,581  --   37,059  522 339%
1999  18,898  69,686  --   68,559  1,127 369%
2000  25,020  117,519  --   114,480  3,039 470%
2001  33,481  176,515  --   172,207  4,308 527%
2002  42,325  200,317  --   192,918  7,399 473%
2003  61,448  269,818  --   256,522  13,296 439%
2004  51,708  189,463  --   176,462  13,001 366%
2005  113,868  268,474  9,287  251,665  16,809 236%
2006  90,048  186,206  13,410  163,413  22,793 207%
2007  179,844  403,440  39,722  329,316  74,124 224%
2008  166,545  344,055  45,577  258,999  85,056 207%
2009  125,385  403,949  35,625  259,523  144,426 322%
2010  148,925  463,976  62,379  220,831  243,145 312%
2011  212,393  565,403  148,776  151,314  414,089 266%
2012  122,037  273,929  118,563  11,601  262,328 224%
Total  $ 1,413,779  $ 4,006,038  $ 473,339  $ 2,700,395  $ 1,305,643 283%
             
CONTACT: Investor and Media Relations:
         Rick Goulart
         Vice President, Corporate Communications
         (757) 961-3525
         RickGoulart@PortfolioRecovery.com