PRA Group
Oct 30, 2013

PRA Reports Record Third Quarter 2013 Results

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

"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

Cash Collections from Finance Receivables

 
 
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
 

Fee Income

EXPENSES AND OPERATING INCOME

PORTFOLIO PURCHASES

 
 
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
 

BALANCE SHEET

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 
CONTACT: News Media and Investor Contact:

         Rick Goulart

         Vice President, Corporate Communications

         (757) 961-3525

         RickGoulart@PortfolioRecovery.com

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Source: Portfolio Recovery Associates

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