PRA Group
Feb 13, 2013

PRA Reports Fourth Quarter and Full Year 2012 Results

NORFOLK, Va., Feb. 13, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (PRA), a financial and business services company, today reported its fourth quarter and full year 2012 results.

Fourth Quarter Highlights

For the full year 2012, net income was $126.6 million, compared with $100.8 million in 2011, an increase of 26%. Diluted earnings per share increased from $5.85 in 2011 to $7.39 in 2012. Revenues increased from $458.9 million in 2011 to $592.8 million in 2012.

"PRA again reported record operating results in the fourth quarter and for full year 2012, continuing a trend of strong year-over-year growth," said Steve Fredrickson, chairman, president and chief executive officer, PRA.

"Our financial results were led by increases in cash collections from our receivables portfolios. Cash collections were $908.7 million in 2012, up 29% over 2011. In 2012, we received a record 8 million payments on our debt portfolios. This includes growth in the number of recurring payment plans from customers to eliminate their debt, which provides a low-cost, recurring revenue stream for PRA.  This record level of payments places PRA in an excellent position to continue to prosper in 2013 and beyond," Fredrickson said.

FINANCIAL AND OPERATING REVIEW — FOURTH QUARTER 2012

Revenues

Finance Receivables Income and Cash Collections

 
Cash Collection Source ($ in thousands)Q42012Q32012Q22012Q12012Q42011
Call Center & Other Collections  $ 72,624  $ 72,394  $ 73,582  $ 79,805  $ 61,227
External Legal Collections  41,521  39,913  41,464  34,852  26,316
Internal Legal Collections  23,968  25,650  25,361  23,345  17,615
Purchased Bankruptcy Collections  91,098  91,095  92,018  79,994  75,166
Total Cash Collections  $ 229,211  $ 229,052  $ 232,425  $ 217,996  $ 180,324
 
           

Fee Income

Operating Expenses and Income

Balance Sheet and Purchasing

Conference Call Information

PRA will hold a conference call today with investors at 6:15 p.m. ET to discuss its Q4 2012 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 92957383. A replay will be available approximately one hour after the call ends and will remain available until February 20, 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 92957383. Investors also may listen to the conference call via webcast, both live and archived, at http://ir.PortfolioRecovery.com/events.cfm.

About PRA

Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) is a financial and business services company operating in the U.S. and the U.K. As a leader in the U.S. debt buying industry, 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 in compliance with consumer protection laws. 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 recognized as one of Fortune's 100 Fastest Growing Companies in 2012.  The company also was named to Forbes' Top 25 Best Small Companies in America in 2012, and has been annually ranked as one of Forbes' 100 Best Small Companies since 2007.  For more information, visit www.PortfolioRecovery.com.

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

About Forward-Looking Statements

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 MonthsThree MonthsYearYear
 EndedEndedEndedEnded
 December 31,December 31,December 31,December 31,
 2012201120122011
         
Revenues:        
Income recognized on finance receivables, net $ 138,068 $ 102,743 $ 530,635 $ 401,895
Fee income 16,183 15,344 62,166 57,040
         
Total revenues 154,251 118,087 592,801 458,935
         
Operating expenses:        
Compensation and employee services 44,849 35,759 168,356 138,202
Legal collection fees 9,153 5,940 34,393 23,621
Legal collection costs 14,619 9,710 72,325 38,659
Agent fees 1,411 1,647 5,906 7,653
Outside fees and services 7,292 5,607 28,867 19,310
Communications 7,073 5,487 29,110 23,372
Rent and occupancy 1,728 1,539 6,781 5,891
Depreciation and amortization 3,681 3,188 14,515 12,943
Other operating expenses 4,456 3,255 16,484 12,416
         
Total operating expenses 94,262 72,132 376,737 282,067
         
Gain on sale of property -- -- -- 1,157
         
Income from operations 59,989 45,955 216,064 178,025
         
Other income and (expense):        
Interest income 2 -- 10 7
Interest expense (1,818) (2,512) (9,041) (10,569)
         
Income before income taxes 58,173 43,443 207,033 167,463
         
Provision for income taxes 22,441 16,776 80,934 66,319
         
Net income $ 35,732 $ 26,667 $ 126,099 $ 101,144
         
Adjustment for (loss)/income attributable to redeemable noncontrolling interest (70) 77 (494) 353
         
Net income attributable to Portfolio Recovery Associates, Inc. $ 35,802 $ 26,590 $ 126,593 $ 100,791
         
         
Net income per common share attributable to Portfolio Recovery Associates, Inc.:        
Basic  $ 2.12  $ 1.55  $ 7.45  $ 5.89
Diluted  $ 2.10  $ 1.54  $ 7.39  $ 5.85
         
Weighted average number of shares outstanding:        
Basic 16,883 17,121 16,997 17,110
Diluted 17,072 17,269 17,123 17,230
         
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
     
 December 31,December 31,
ASSETS20122011
     
Cash and cash equivalents $ 32,687 $ 26,697
Finance receivables, net 1,078,951 926,734
Accounts receivable, net 10,486 7,862
Property and equipment, net 25,312 25,727
Goodwill 114,688 61,678
Intangible assets, net 20,364 14,596
Other assets 11,668 7,829
     
Total assets $ 1,294,156 $ 1,071,123
     
LIABILITIES AND EQUITY    
     
Liabilities:    
Accounts payable and accrued liabilities $ 52,237 $ 42,660
Net deferred tax liability 185,277 193,898
Line of credit 127,000 220,000
Long-term debt 200,542 1,246
     
Total liabilities 565,056 457,804
     
Redeemable noncontrolling Interest 20,673 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, 16,909 issued and outstanding shares at December 31, 2012, and 17,134 issued and outstanding shares at December 31, 2011 169 171
Additional paid-in capital 151,216 167,719
Retained earnings 554,191 427,598
Accumulated other comprehensive income 2,851 --
Total stockholders' equity 708,427 595,488
     
Total liabilities and equity $ 1,294,156 $ 1,071,123
     
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
     
 YearYear
 EndedEnded
 December 31,December 31,
 20122011
Cash flows from operating activities:    
Net income $ 126,099 $ 101,144
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of share-based compensation 11,282 7,759
Depreciation and amortization 14,515 12,943
Deferred tax (benefit)/expense (8,634) 28,927
Gain on sale of property -- (1,157)
Changes in operating assets and liabilities:    
Other assets 2,073 (54)
Accounts receivable (474) 1,070
Accounts payable and accrued liabilities (13,444) 22,393
     
Net cash provided by operating activities 131,417 173,025
     
Cash flows from investing activities:    
Purchases of property and equipment (7,115) (9,634)
Proceeds from sale of property -- 1,267
Acquisition of finance receivables, net of buybacks (457,068) (398,999)
Collections applied to principal on finance receivables 378,049 303,595
Business acquisitions, net of cash acquired (148,995) (985)
Proceeds from due from seller 29,548 --
     
Net cash used in investing activities (205,581) (104,756)
     
Cash flows from financing activities:    
Proceeds from exercise of options -- 150
Income tax benefit from share-based compensation 2,138 641
Proceeds from line of credit 294,000 32,000
Principal payments on line of credit (187,000) (112,000)
Repurchases of common stock (22,735) --
Payments of line of credit origination costs and fees (4,994) --
Distributions paid to noncontrolling interest -- (2,307)
Principal payments on long-term debt (704) (1,150)
     
Net cash provided by/(used in) financing activities 80,705 (82,666)
     
Effect of exchange rate on cash (551) --
     
Net increase/(decrease) in cash and cash equivalents 5,990 (14,397)
     
Cash and cash equivalents, beginning of year 26,697 41,094
     
Cash and cash equivalents, end of year $ 32,687 $ 26,697
     
Supplemental disclosure of cash flow information:    
Cash paid for interest $ 9,566 $ 10,280
Cash paid for income taxes  98,738  23,641
     
Noncash investing and financing activities:    
Adjustment of the noncontrolling interest measurement amount $ (3,597) $ (4,112)
Distributions payable relating to noncontrolling interest  261  67
Employee stock relinquished for payment of taxes  (3,593)  (257)
Conversion of revolving line of credit to long-term debt  200,000  -- 
     
Purchase Price Multiples at December 31, 2012, 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  $ 10,222  $ --   $ 10,183  $ 39 332%
1997  7,685  25,590  --   25,422  168 333%
1998  11,089  37,582  --   37,178  404 339%
1999  18,898  69,947  --   68,872  1,075 370%
2000  25,020  117,808  --   115,316  2,492 471%
2001  33,481  177,086  --   173,568  3,518 529%
2002  42,325  201,365  --   195,044  6,321 476%
2003  61,448  272,359  --   259,874  12,485 443%
2004  59,176  205,011  --   193,754  11,257 346%
2005  143,168  315,867  8,298  301,186  14,681 221%
2006  107,674  214,994  9,170  199,716  15,278 200%
2007  258,397  507,936  33,314  449,362  58,574 197%
2008  275,165  522,112  55,112  430,738  91,374 190%
2009  281,456  851,686  73,461  599,137  252,549 303%
2010  358,143  942,234  137,577  539,508  402,726 263%
2011  394,198  874,241  255,488  318,030  556,211 222%
2012  518,333  937,983  492,013  74,289  863,694 181%
Total  $ 2,598,736  $ 6,284,023  $ 1,064,433  $ 3,991,177  $ 2,292,846 242%
             
Purchase Price Multiples at December 31, 2012, Purchased Bankruptcy 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
1996-2003  $ --   $ --   $ --   $ --   $ --  0%
2004  7,468  14,501  --   14,402  99 194%
2005  29,301  43,569  56  43,472  97 149%
2006  17,630  31,486  110  31,146  340 179%
2007  78,544  104,796  1,531  102,925  1,871 133%
2008  108,607  175,892  18,488  152,538  23,354 162%
2009  156,053  442,700  44,090  309,083  133,617 284%
2010  209,224  471,459  87,294  269,005  202,454 225%
2011  182,175  290,933  140,044  81,597  209,336 160%
2012  258,317  351,356  251,445  17,388  333,968 136%
Total  $ 1,047,319  $ 1,926,692  $ 543,058  $ 1,021,556  $ 905,136 184%
             
Purchase Price Multiples at December 31, 2012, Core 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  $ 10,222  $ --   $ 10,183  $ 39 332%
1997  7,685  25,590  --   25,422  168 333%
1998  11,089  37,582  --   37,178  404 339%
1999  18,898  69,947  --   68,872  1,075 370%
2000  25,020  117,808  --   115,316  2,492 471%
2001  33,481  177,086  --   173,568  3,518 529%
2002  42,325  201,365  --   195,044  6,321 476%
2003  61,448  272,359  --   259,874  12,485 443%
2004  51,708  190,510  --   179,352  11,158 368%
2005  113,867  272,298  8,242  257,714  14,584 239%
2006  90,044  183,508  9,060  168,570  14,938 204%
2007  179,853  403,140  31,783  346,437  56,703 224%
2008  166,558  346,220  36,624  278,200  68,020 208%
2009  125,403  408,986  29,371  290,054  118,932 326%
2010  148,919  470,775  50,283  270,503  200,272 316%
2011  212,023  583,308  115,444  236,433  346,875 275%
2012  260,016  586,627  240,568  56,901  529,726 226%
Total  $ 1,551,417  $ 4,357,331  $ 521,375  $ 2,969,621  $ 1,387,710 281%
             
FINANCIAL HIGHLIGHTS
 Three Months Ended  Twelve Months Ended  
 December 31, %December 31, %
  2012 2011 Change 2012 2011 Change
EARNINGS (in thousands)            
Income recognized on finance receivables, net  $ 138,068  $ 102,743 34%  $ 530,635  $ 401,895 32%
Fee income  16,183  15,344 5%  62,166  57,040 9%
Total revenues  154,251  118,087 31%  592,801  458,935 29%
Operating expenses  94,262  72,134 31%  376,737  282,067 34%
Income from operations  59,989  45,953 31%  216,064  178,025 21%
Net interest expense  1,816  2,512 -28%  9,031  10,562 -15%
Net income  35,732  26,666 34%  126,099  101,144 25%
Net income attributable to Portfolio Recovery Associates, Inc.  35,802  26,590 35%  126,593  100,791 26%
             
PERIOD-END BALANCES (in thousands)            
Cash and cash equivalents  $ 32,687  $ 26,697 22%  $ 32,687  $ 26,697 22%
Finance receivables, net  1,078,951  926,734 16%  1,078,951  926,734 16%
Goodwill and intangible assets, net  135,052  76,274 77%  135,052  76,274 77%
Total assets  1,294,156  1,071,123 21%  1,294,156  1,071,123 21%
Line of credit and long-term debt  327,542  221,246 48%  327,542  221,246 48%
Total liabilities  565,056  457,804 23%  565,056  457,804 23%
Total equity  708,427  595,488 19%  708,427  595,488 19%
             
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)            
Cash collections  $ 229,211  $ 180,324 27%  $ 908,684  $ 705,490 29%
Principal amortization without allowance charges  88,851  74,481 19%  371,497  293,431 27%
Principal amortization with allowance charges  91,142  77,581 17%  378,049  303,595 25%
Principal amortization w/ allowance charges as % of cash collections:            
Including fully amortized pools 39.8% 43.0% -8% 41.6% 43.0% -3%
Excluding fully amortized pools 40.9% 44.9% -9% 43.0% 45.4% -5%
             
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)            
Balance at period-end  $ 93,123  $ 86,571 8%  $ 93,123  $ 86,571 8%
Allowance charge  2,291  3,100 -26%  6,552  10,164 -36%
Allowance charge to period-end net finance receivables 0.21% 0.33% -37% 0.61% 1.10% -45%
Allowance charge to net finance receivable income 1.66% 3.02% -45% 1.23% 2.53% -51%
Allowance charge to cash collections 1.00% 1.72% -42% 0.72% 1.44% -50%
             
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)            
Purchase price - core  $ 85,476  $ 42,532 101%  $ 259,795  $ 213,389 22%
Face value - core  901,512  829,232 9%  3,581,246  7,900,761 -55%
Purchase price - bankruptcy  111,001  46,360 139%  262,630  195,019 35%
Face value - bankruptcy  946,927  376,094 152%  2,104,977  1,891,595 11%
Purchase price - total  196,477  88,892 121%  522,425  408,408 28%
Face value - total  1,848,439  1,205,326 53%  5,686,223  9,792,356 -42%
Number of portfolios - total 94 83 13% 376 333 13%
             
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)            
Estimated remaining collections - core  $ 1,387,711  $ 1,159,086 20%  $ 1,387,711  $ 1,159,086 20%
Estimated remaining collections - bankruptcy  905,136  794,262 14%  905,136  794,262 14%
Estimated remaining collections - total  2,292,847  1,953,348 17%  2,292,847  1,953,348 17%
             
SHARE DATA (share amounts in thousands)            
Net income per common share - diluted  $ 2.10  $ 1.54 36%  $ 7.39  $ 5.85 26%
Weighted average number of shares outstanding - diluted  17,072  17,269 -1%  17,123  17,230 -1%
Shares repurchased 0.1  -- 100%  332  -- 100%
Average price paid per share repurchased (including acquisitions costs)  $ 93.02  -- 100%  $ 68.57  -- 100%
Closing market price  $ 106.86  $ 67.52 58%  $ 106.86  $ 67.52 58%
             
RATIOS AND OTHER DATA (dollars in thousands)            
Return on average equity (2) 20.6% 18.2% 14% 19.6% 18.5% 6%
Return on revenue (3) 23.2% 22.6% 3% 21.3% 22.0% -3%
Operating margin (4) 38.9% 38.9% 0% 36.4% 38.8% -6%
Operating expense to cash receipts (5) 38.4% 36.9% 4% 38.8% 37.0% 5%
Debt to equity (6) 46.2% 37.2% 24% 46.2% 37.2% 24%
Number of collectors 2,153 1,658 30% 2,153 1,658 30%
Number of full-time equivalent employees 3,221 2,641 22% 3,221 2,641 22%
Cash receipts (5)  $ 245,394  $ 195,668 25%  $ 970,850  $ 762,530 27%
Line of credit - unused portion at period end  273,000  187,500 46%  273,000  187,500 46%
(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
 December 31,September 30,June 30,March 31,December 31,
 20122012201220122011
EARNINGS (in thousands)          
Income recognized on finance receivables, net  $ 138,068  $ 135,754  $ 132,587  $ 124,226  $ 102,743
Fee income  16,183  14,765  15,298  15,920  15,344
Total revenues  154,251  150,519  147,885  140,146  118,087
Operating expenses  94,262  93,461  93,289  95,725  72,134
Income from operations  59,989  57,058  54,596  44,421  45,953
Net interest expense  1,816  2,189  2,374  2,652  2,512
Net income  35,732  33,127  32,051  25,189  26,666
Net income attributable to Portfolio Recovery Associates, Inc.  35,802  33,314  32,015  25,462  26,590
           
PERIOD-END BALANCES (in thousands)          
Cash and cash equivalents  $ 32,687  $ 31,488  $ 42,621  $ 28,068  $ 26,697
Finance receivables, net  1,078,951  973,594  966,508  945,242  926,734
Goodwill and intangible assets, net  135,052  121,623  121,748  124,659  76,274
Total assets  1,294,156  1,169,698  1,173,738  1,142,026  1,071,123
Line of credit and long-term debt  327,542  250,675  292,850  265,936  221,246
Total liabilities  565,056  479,211  520,911  502,531  457,804
Total equity  708,427  670,489  633,446  620,712  595,488
           
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)          
Cash collections  $ 229,211  $ 229,053  $ 232,425  $ 217,996  $ 180,324
Principal amortization without allowance charges  88,851  91,736  97,634  93,276  74,481
Principal amortization with allowance charges  91,142  93,299  99,838  93,770  77,581
Principal amortization w/ allowance charges as % of cash collections:          
Including fully amortized pools 39.8% 40.7% 43.0% 43.0% 43.0%
Excluding fully amortized pools 40.9% 42.0% 44.4% 44.8% 44.9%
           
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)          
Balance at period-end  $ 93,123  $ 90,832  $ 89,269  $ 87,065  $ 86,571
Allowance charge  2,291  1,563  2,204  494  3,100
Allowance charge to period-end net finance receivables 0.21% 0.16% 0.23% 0.05% 0.33%
Allowance charge to net finance receivable income 1.66% 1.15% 1.66% 0.40% 3.02%
Allowance charge to cash collections 1.00% 0.68% 0.95% 0.23% 1.72%
           
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)          
Purchase price - core  $ 85,476  $ 52,703  $ 69,512  $ 52,104  $ 42,532
Face value - core  901,512  674,135  1,033,331  972,268  829,232
Purchase price - bankruptcy  111,001  41,277  53,460  56,892  46,360
Face value - bankruptcy  946,927  341,359  448,244  368,447  376,094
Purchase price - total  196,477  93,980  122,972  108,996  88,892
Face value - total  1,848,439  1,015,494  1,481,575  1,340,715  1,205,326
Number of portfolios - total 94 95 105 82 83
           
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)          
Estimated remaining collections - core  $ 1,387,711  $ 1,323,134  $ 1,305,641  $ 1,226,292  $ 1,159,086
Estimated remaining collections - bankruptcy  905,136  791,018  802,353  796,161  794,262
Estimated remaining collections - total  2,292,847  2,114,152  2,107,994  2,022,453  1,953,348
           
SHARE DATA (share amounts in thousands)          
Net income per common share - diluted  $ 2.10  $ 1.96  $ 1.87  $ 1.47  $ 1.54
Weighted average number of shares outstanding - diluted  17,072  17,022  17,133  17,267  17,269
Shares repurchased  0  --  300,849  30,600  --
Average price paid per share repurchased (including acquisitions costs)  $ 93.02  $ --   $ 68.62  $ 68.02  --
Closing market price  $ 106.86  $ 104.43  $ 91.26  $ 71.72  $ 67.52
           
RATIOS AND OTHER DATA (dollars in thousands)          
Return on average equity (2) 20.64% 20.29% 20.34% 16.70% 18.18%
Return on revenue (3) 23.16% 22.01% 21.67% 17.97% 22.58%
Operating margin (4) 38.89% 37.91% 36.92% 31.70% 38.91%
Operating expense to cash receipts (5) 38.41% 38.33% 37.66% 40.92% 36.87%
Debt to equity (6) 46.24% 37.39% 46.33% 42.84% 37.15%
Number of collectors 2,153 1,992 1,952 1,934 1,658
Number of full-time equivalent employees 3,221 3,103 3,032 3,014 2,641
Cash receipts (5)  $ 245,394  $ 243,818  $ 247,723  $ 233,916  $ 195,668
Line of credit - unused portion at period end  273,000  214,450  166,450  142,500  187,500
(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          
           
CONTACT: Rick Goulart

         Vice President, Corporate Communications

         757-961-3525

         RickGoulart@PortfolioRecovery.com