PRA Investorroom
Portfolio Recovery Associates Reports First Quarter 2012 Results
NORFOLK, VA, May 07, 2012 (MARKETWIRE via COMTEX) --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 first quarter 2012 results.
First Quarter Highlights
-- Cash collections of $218.0 million, including Mackenzie Hall
collections, up 31% from the first quarter of 2011.
-- First quarter revenue of $140.1 million, including Mackenzie Hall
revenue of $4.6 million, up 25% from the year-earlier quarter.
-- First quarter net income of $25.5 million, an increase of 10% over the
first quarter of 2011.
-- First quarter diluted EPS of $1.47, compared with $1.34 in the first
quarter of 2011.
-- Annualized return on average equity of 16.7% for the quarter.
"The first quarter of 2012 exhibited significant growth for PRA and continued the momentum we generated in 2011, culminating in strong financial results," said Steve Fredrickson, chairman, president and chief executive officer.
"Our expanded focus beginning this quarter on legal collections from those who can, but won't, pay back their debt, performed better than we anticipated. Legal collection costs of $23.7 million were on target, with legal cash collections increasing 42% over first quarter 2011. Total cash collections increased 31% year-over-year, as we added new consumer debt and bankrupt customer portfolios of $111.4 million this quarter," Fredrickson said.
"Revenue from our fee-for-service businesses slightly improved year-over-year, largely due to the inclusion of Mackenzie Hall. We look forward to the growth and diversification opportunities that Mackenzie Hall provides us," Fredrickson said. "Our focus on enhancing shareholder value -- driven in part through our share repurchase program -- has set the stage for sustained growth and success in 2012. We continue to identify opportunities to invest in our growth and improve our operational performance as PRA strives to be the standard by which all other firms in our industry are measured."
FINANCIAL AND OPERATING REVIEW
Revenues
-- Total revenues were $140.1 million for the quarter, up 25% when
compared with the same period a year ago. This was driven by cash
receipts of $233.9 million in the first quarter, up 28% from $182.5
million a year earlier. The Company defines cash receipts as the total
of cash collections and fee income.
Finance Receivable Income
-- Cash collections from finance receivables rose 31% to $218.0 million
in the first quarter of 2012 from $166.7 million in the year-ago
period. Cash collections reflected the seasonal strength typically
experienced in the first quarter, coupled with improvements made in
the Company's collections operations. The table below displays cash
collections by source, by quarter for the past five quarters.
Mackenzie Hall collections are included only in Q12012:
Cash Collection Source ($ in Q12012 Q42011 Q32011 Q22011 Q12011 thousands) -------- -------- -------- -------- -------- Call Center & Other Collections $ 79,805 $ 61,227 $ 63,967 $ 64,566 $ 67,377 External Legal Collections 34,852 26,316 27,245 27,329 25,378 Internal Legal Collections 23,345 17,615 16,444 16,007 15,598 Purchased Bankruptcy Collections 79,994 75,166 74,512 68,379 58,364 -------- -------- -------- -------- -------- Total Cash Collections $217,996 $180,324 $182,168 $176,281 $166,717 ======== ======== ======== ======== ========
-- Internal legal collections, in which the Company uses its own staff
attorneys, continue to represent an important, developing collections
channel. Internal legal collections increased to $23.3 million in the
first quarter of 2012 from $15.6 million in the year-ago quarter.
Total legal collections advanced 42% over the first quarter of 2011.
Strong future growth in legal collections is expected as a result of
an expanded focus on legal collections activities.
-- During the quarter, the Company applied 43.0% of cash collections to
reduce the carrying value of its owned debt portfolios, up from 42.4%
in the first quarter of 2011. The first quarter 2012 principal
amortization rate included $0.5 million in net allowance charges
against certain pools of finance receivables accounts.
-- Cash collections produced income on finance receivables of $124.2
million in the first quarter of 2012, net of allowance charges. Income
on finance receivables, net of allowance charges, increased 29% from
the first quarter of 2011.
-- For the first quarter of 2012, domestic Core portfolio income was
$83.7 million, including net allowance reversals of $0.5 million. Net
domestic Core portfolio income increased 31% over the first quarter of
2011. Net Bankruptcy portfolio income for the first quarter of 2012
was $39.5 million, net of allowance charges of $1.0 million. Net
Bankruptcy portfolio income increased 23% over the first quarter of
2011.
-- The Company purchased $1.46 billion of face-value finance receivables
during the first quarter of 2012 for $111.4 million. These receivables
were acquired in 91 defaulted debt portfolios from 16 different
sellers.
Fee Income
-- The Company's fee-for-service businesses generated revenue of $15.9
million in the first quarter of 2012, stable with revenue of $15.8
million reported in the same period a year ago. The inclusion of
Mackenzie Hall plus year-over-year growth in fee income generated by
PRA Government Services helped to offset a year-over-year decline in
fee income from PRA Location Services and Claims Compensation Bureau.
Together, the fee-for-service businesses accounted for 11% of the
Company's overall revenues in the first quarter of 2012.
Operating Income
-- Operating income was $44.4 million in the first quarter of 2012,
compared with $42.7 million in the first quarter of 2011, representing
an increase of 4%. The operating margin decreased from 38.2% in the
year-earlier quarter to 31.7% in the recently completed quarter. The
decline can be attributed, in large part, to the increased legal
collection expenses associated with the Company's focus on driving net
incremental cash flow from this portion of the business.
Balance Sheet
-- Cash balances were $28.1 million as of March 31, 2012.
-- During the first quarter of 2012, the Company had net borrowings of
$45.0 million under its line of credit, resulting in an outstanding
balance of $265 million at quarter-end. Remaining borrowing
availability, subject to normal borrowing and collateral provisions,
under the line was $142.5 million as of March 31, 2012. Subsequent to
quarter-end, the Company's line of credit was amended to increase the
credit limit by $51 million.
-- As previously announced, the Board of Directors has authorized a share
repurchase program of up to $100 million of the Company's outstanding
shares of common stock. As of May 3, 2012, the Company had repurchased
approximately 100,000 shares at an average purchase price of
approximately $68 per share. Repurchases depend on prevailing market
conditions and other factors. The repurchase program may be suspended
or discontinued at any time.
Conference Call Information The Company will hold a conference call with investors at 5:30 p.m. ET, Monday, May 7, 2012, to discuss its first quarter results. Investors may access the call by dialing 888-679-8040 for domestic callers or 617-213-4851 for international callers using the pass code 40970062. 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 99187654.
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 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. PRA has a longstanding culture of compliance, engaging collaboratively with its customers to create realistic, affordable repayment plans. 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). It was ranked as one of BusinessWeek's 100 Hot Growth Companies in 2003, 2005 and 2007, and was recognized by Fortune as one of America's Top Small Businesses in 2006 and 2007. 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.
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 Three Months
Ended Ended
March 31, March 31,
2012 2011
------------- -------------
Revenues:
Income recognized on finance receivables,
net $ 124,226 $ 95,974
Fee income 15,920 15,803
------------- -------------
Total revenues 140,146 111,777
------------- -------------
Operating expenses:
Compensation and employee services 39,694 34,153
Legal collection fees 7,617 5,749
Legal collection costs 23,669 9,338
Agent fees 1,627 2,639
Outside fees and services 5,860 3,414
Communications 8,253 6,313
Rent and occupancy 1,611 1,398
Depreciation and amortization 3,656 3,216
Other operating expenses 3,738 2,852
------------- -------------
Total operating expenses 95,725 69,072
------------- -------------
Income from operations 44,421 42,705
Other income and (expense):
Interest income 1 -
Interest expense (2,653) (2,867)
------------- -------------
Income before income taxes 41,769 39,838
Provision for income taxes 16,580 16,129
------------- -------------
Net income $ 25,189 $ 23,709
============= =============
Net loss/(income) attributable to
noncontrolling interest 273 (588)
------------- -------------
Net income attributable to Portfolio
Recovery Associates, Inc. $ 25,462 $ 23,121
============= =============
Net income per common share attributable to
Portfolio Recovery Associates, Inc.:
Basic $ 1.48 $ 1.35
Diluted $ 1.47 $ 1.34
Weighted average number of shares outstanding:
Basic 17,196 17,092
Diluted 17,267 17,199
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
March 31, December 31,
ASSETS 2012 2011
------------- -------------
Cash and cash equivalents $ 28,068 $ 26,697
Finance receivables, net 945,242 926,734
Accounts receivable, net 9,107 7,862
Property and equipment, net 26,369 25,727
Goodwill 97,480 61,678
Intangible assets, net 27,179 14,596
Other assets 8,581 7,829
------------- -------------
Total assets $ 1,142,026 $ 1,071,123
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued liabilities $ 42,309 $ 42,660
Net deferred tax liability 194,286 193,898
Line of credit 265,000 220,000
Long-term debt 936 1,246
------------- -------------
Total liabilities 502,531 457,804
------------- -------------
Redeemable noncontrolling Interest 18,783 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, 17,175 issued and
outstanding shares at March 31, 2012, and
17,134 issued and outstanding shares at
December 31, 2011 172 171
Additional paid-in capital 166,133 167,719
Retained earnings 453,060 427,598
Accumulated other comprehensive income 1,347 -
------------- -------------
Total stockholders' equity 620,712 595,488
============= =============
Total liabilities and stockholders' equity $ 1,142,026 $ 1,071,123
============= =============
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
------------- -------------
Cash flows from operating activities:
Net income $ 25,189 $ 23,709
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of share-based compensation 2,347 2,614
Depreciation and amortization 3,656 3,216
Deferred tax expense 403 14,072
Changes in operating assets and
liabilities:
Other assets 711 842
Accounts receivable 2,922 1,563
Accounts payable and accrued liabilities (15,169) (2,696)
------------- -------------
Net cash provided by operating activities 20,059 43,320
------------- -------------
Cash flows from investing activities:
Purchases of property and equipment (1,152) (2,163)
Acquisition of finance receivables, net of
buybacks (108,176) (106,405)
Collections applied to principal on finance
receivables 93,770 70,743
Business acquisition, net of cash acquired (48,653) -
------------- -------------
Net cash used in investing activities (64,211) (37,825)
------------- -------------
Cash flows from financing activities:
Proceeds from exercise of options - 149
Income tax benefit from share-based
compensation 1,440 294
Proceeds from line of credit 95,000 2,000
Principal payments on line of credit (50,000) (12,000)
Repurchases of common stock (2,081) -
Distributions paid to noncontrolling
interest - (1,291)
Principal payments on long-term debt (310) (298)
------------- -------------
Net cash provided by/(used in) financing
activities 44,049 (11,146)
------------- -------------
Effect of exchange rate on cash 1,474 -
Net increase/(decrease) in cash and cash
equivalents 1,371 (5,651)
Cash and cash equivalents, beginning of year 26,697 41,094
------------- -------------
Cash and cash equivalents, end of period $ 28,068 $ 35,443
============= =============
Supplemental disclosure of cash flow
information:
Cash paid for interest $ 2,557 $ 2,711
Cash paid for income taxes 12,497 15
Noncash investing and financing activities:
Adjustment of the noncontrolling interest
measurement amount $ (1,225) $ (985)
Distributions payable relating to
noncontrolling interest - 769
Employee stock relinquished for payment of
taxes (2,066) -
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31, %
2012 2011 Change
----------- ----------- ------
EARNINGS (in thousands)
Income recognized on finance receivables,
net $ 124,226 $ 95,974 29%
Fee income 15,920 15,803 1%
Total revenues 140,146 111,777 25%
Operating expenses 95,725 69,072 39%
Income from operations 44,421 42,705 4%
Net interest expense 2,652 2,867 -7%
Net income 25,189 23,709 6%
Net income attributable to Portfolio
Recovery Associates, Inc. 25,462 23,121 10%
----------- ----------- ------
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 28,068 $ 35,443 -21%
Finance receivables, net 945,242 866,992 9%
Goodwill and intangible assets, net 124,659 78,893 58%
Total assets 1,142,026 1,020,099 12%
Line of credit 265,000 290,000 -9%
Total liabilities 502,531 489,136 3%
Total equity 620,712 515,710 20%
----------- ----------- ------
FINANCE RECEIVABLE COLLECTIONS (dollars in
thousands)
Cash collections $ 217,996 $ 166,717 31%
Principal amortization without allowance
charges 93,276 66,703 40%
Principal amortization with allowance
charges 93,770 70,743 33%
Principal amortization w/ allowance
charges as % of cash collections:
Including fully amortized pools 43.0% 42.4% 1%
Excluding fully amortized pools 44.8% 45.3% -1%
----------- ----------- ------
ALLOWANCE FOR FINANCE RECEIVABLES (dollars
in thousands)
Balance at period-end $ 87,065 $ 80,447 8%
Allowance charge 494 4,040 -88%
Allowance charge to period-end net finance
receivables 0.05% 0.47% -89%
Allowance charge to net finance receivable
income 0.40% 4.21% -91%
Allowance charge to cash collections 0.23% 2.42% -91%
----------- ----------- ------
PURCHASES OF FINANCE RECEIVABLES (1)
(dollars in thousands)
Purchase price - core $ 52,104 $ 61,294 -15%
Face value - core 972,268 1,008,758 -4%
Purchase price - bankruptcy 56,892 46,607 22%
Face value - bankruptcy 368,447 482,941 -24%
Purchase price - total 108,996 107,901 1%
Face value - total 1,340,715 1,491,699 -10%
Number of portfolios - total 82 79 4%
----------- ----------- ------
ESTIMATED REMAINING COLLECTIONS (1) (in
thousands)
Estimated remaining collections - core $ 1,226,292 $ 1,040,140 18%
Estimated remaining collections -
bankruptcy 796,161 753,130 6%
Estimated remaining collections - total 2,022,453 1,793,270 13%
----------- ----------- ------
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 1.47 $ 1.34 10%
Weighted average number of shares
outstanding - diluted 17,267 17,199 0%
Shares repurchased 30,600 - 100%
Average price paid per share repurchased
(including acquisitions costs) $ 68.02 - 100%
Closing market price $ 71.72 $ 85.13 -16%
----------- ----------- ------
RATIOS AND OTHER DATA (dollars in
thousands)
Return on average equity (2) 16.70% 18.25% -8%
Return on revenue (3) 17.97% 21.21% -15%
Operating margin (4) 31.70% 38.21% -17%
Operating expense to cash receipts (5) 40.92% 37.84% 8%
Debt to equity (6) 42.84% 56.64% -24%
Number of collectors 1,934 1,486 30%
Number of employees 3,014 2,482 21%
Cash receipts (5) $ 233,916 $ 182,520 28%
Line of credit - unused portion at period
end 142,500 117,500 21%
----------- ----------- ------
(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 September
March 31 31 30 June 30 March 31
2012 2011 2011 2011 2011
---------- ---------- ---------- ---------- ----------
EARNINGS (in
thousands)
Income
recognized on
finance
receivables,
net $ 124,226 $ 102,743 $ 102,875 $ 100,303 $ 95,974
Fee income 15,920 15,344 11,401 14,492 15,803
Total revenues 140,146 118,087 114,276 114,795 111,777
Operating
expenses 95,725 72,134 70,447 70,415 69,072
Income from
operations 44,421 45,953 43,830 45,536 42,705
Net interest
expense 2,652 2,512 2,548 2,635 2,867
Net income 25,189 26,666 25,193 25,575 23,709
Net income
attributable to
Portfolio
Recovery
Associates,
Inc. 25,462 26,590 25,506 25,574 23,121
---------- ---------- ---------- ---------- ----------
PERIOD-END
BALANCES (in
thousands)
Cash and cash
equivalents $ 28,068 $ 26,697 $ 30,035 $ 25,481 $ 35,443
Finance
receivables,
net 945,242 926,734 919,478 879,515 866,992
Goodwill and
intangible
assets, net 124,659 76,274 76,426 77,643 78,893
Total assets 1,142,026 1,071,123 1,064,104 1,021,617 1,020,099
Line of credit 265,000 220,000 260,000 250,000 290,000
Total
liabilities 502,531 457,804 478,915 463,153 489,136
Total equity 620,712 595,488 568,305 542,396 515,710
---------- ---------- ---------- ---------- ----------
FINANCE
RECEIVABLE
COLLECTIONS
(dollars in
thousands)
Cash collections $ 217,996 $ 180,324 $ 182,168 $ 176,281 $ 166,717
Principal
amortization
without
allowance
charges 93,276 74,481 78,552 73,695 66,703
Principal
amortization
with allowance
charges 93,770 77,581 79,293 75,978 70,743
Principal
amortization w/
allowance
charges as % of
cash
collections:
Including
fully
amortized
pools 43.0% 43.0% 43.5% 43.1% 42.4%
Excluding
fully
amortized
pools 44.8% 44.9% 45.7% 45.7% 45.3%
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR
FINANCE
RECEIVABLES
(dollars in
thousands)
Balance at
period-end $ 87,065 $ 86,571 $ 83,471 $ 82,730 $ 80,447
Allowance charge 494 3,100 741 2,283 4,040
Allowance charge
to period-end
net finance
receivables 0.05% 0.33% 0.08% 0.26% 0.47%
Allowance charge
to net finance
receivable
income 0.40% 3.02% 0.72% 2.28% 4.21%
Allowance charge
to cash
collections 0.23% 1.72% 0.41% 1.30% 2.42%
---------- ---------- ---------- ---------- ----------
PURCHASES OF
FINANCE
RECEIVABLES (1)
(dollars in
thousands)
Purchase price -
core $ 52,104 $ 42,532 $ 57,240 $ 52,323 $ 61,294
Face value -
core 972,268 829,232 5,027,874 1,034,898 1,008,758
Purchase price -
bankruptcy 56,892 46,360 64,848 37,204 46,607
Face value -
bankruptcy 368,447 376,094 654,508 378,051 482,941
Purchase price -
total 108,996 88,892 122,088 89,527 107,901
Face value -
total 1,340,715 1,205,326 5,682,382 1,412,949 1,491,699
Number of
portfolios -
total 82 83 95 76 79
---------- ---------- ---------- ---------- ----------
ESTIMATED
REMAINING
COLLECTIONS (1)
(in thousands)
Estimated
remaining
collections -
core $1,226,292 $1,159,086 $1,154,406 $1,072,777 $1,040,140
Estimated
remaining
collections -
bankruptcy 796,161 794,262 770,886 743,228 753,130
Estimated
remaining
collections -
total 2,022,453 1,953,348 1,925,292 1,816,005 1,793,270
---------- ---------- ---------- ---------- ----------
SHARE DATA
(share amounts
in thousands)
Net income per
common share -
diluted $ 1.47 $ 1.54 $ 1.48 $ 1.48 $ 1.34
Weighted average
number of
shares
outstanding -
diluted 17,267 17,269 17,228 17,225 17,199
Shares
repurchased 30,600 - - - -
Average price
paid per share
repurchased
(including
acquisitions
costs) $ 68.02 - - - -
Closing market
price $ 71.72 $ 67.52 $ 62.22 $ 84.79 $ 85.13
---------- ---------- ---------- ---------- ----------
RATIOS AND OTHER
DATA (dollars
in thousands)
Return on
average equity
(2) 16.70% 18.18% 18.27% 19.20% 18.25%
Return on
revenue (3) 17.97% 22.58% 22.05% 22.28% 21.21%
Operating margin
(4) 31.70% 38.91% 38.35% 39.67% 38.21%
Operating
expense to cash
receipts (5) 40.92% 36.87% 36.39% 36.91% 37.84%
Debt to equity
(6) 42.84% 37.15% 46.02% 46.43% 56.64%
Number of
collectors 1,934 1,658 1,520 1,517 1,486
Number of
employees 3,014 2,641 2,504 2,504 2,482
Cash receipts
(5) $ 233,916 $ 195,668 $ 193,569 $ 190,773 $ 182,520
Line of credit -
unused portion
at period end 142,500 187,500 147,500 157,500 117,500
---------- ---------- ---------- ---------- ----------
(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 March 31, 2012, Entire Domestic Portfolio
($ in thousands)
----------------------------------------------------------------------------
Total
Net Finance Actual Cash Estimated
Receivables Collections Collections
Pur- Total Balance at Including Estimated to
chase Purchase Estimated March 31, Cash Remaining Purchase
Period Price Collections 2012 Sales Collections Price
----------------------------------------------------------------------------
1996 $ 3,080 $ 10,234 $ - $ 10,152 $ 82 332%
1997 7,685 25,542 - 25,340 202 332%
1998 11,089 37,414 - 36,990 424 337%
1999 18,898 69,696 - 68,379 1,317 369%
2000 25,020 117,511 - 113,991 3,520 470%
2001 33,481 176,338 - 171,380 4,958 527%
2002 42,325 199,814 - 191,646 8,168 472%
2003 61,448 268,404 - 254,623 13,781 437%
2004 59,176 202,021 - 189,039 12,982 341%
2005 143,169 311,247 10,553 291,628 19,619 217%
2006 107,693 218,051 15,865 190,961 27,090 202%
2007 258,392 512,287 53,731 416,948 95,339 198%
2008 275,160 525,044 89,792 379,407 145,637 191%
2009 281,446 791,492 115,329 468,207 323,285 281%
2010 358,166 835,541 202,659 364,189 471,352 233%
2011 399,462 835,002 343,679 133,533 701,469 209%
2012 109,104 196,771 108,238 3,543 193,228 180%
----------------------------------------------------------------------------
Total $2,194,794 $ 5,332,409 $ 939,846 $ 3,309,956 $ 2,022,453 243%
----------------------------------------------------------------------------
Purchase Price Multiples at March 31, 2012, Purchased Bankruptcy Portfolio
($ in thousands) ---------------------------------------------------------------------------- Total Net Finance Actual Cash Estimated Receivables Collections Collections Pur- Total Balance at Including Estimated to chase Purchase Estimated March 31, Cash Remaining Purchase Period Price Collections 2012 Sales Collections Price ---------------------------------------------------------------------------- 1996- 2003 $ - $ - $ - $ - $ - 0% 2004 7,468 14,479 - 14,325 154 194% 2005 29,301 43,412 50 43,289 123 148% 2006 17,645 31,314 111 30,700 614 177% 2007 78,547 109,231 9,286 98,127 11,104 139% 2008 108,609 182,114 38,414 131,477 50,637 168% 2009 156,057 393,804 74,667 227,414 166,390 252% 2010 209,231 397,714 131,112 173,170 224,544 190% 2011 186,184 291,733 176,051 27,767 263,966 157% 2012 56,889 79,704 56,446 1,075 78,629 140% ---------------------------------------------------------------------------- Total $849,931 $ 1,543,505 $ 486,137 $ 747,344 $ 796,161 182% ----------------------------------------------------------------------------
Purchase Price Multiples at March 31, 2012, Core Portfolio
($ in thousands) ---------------------------------------------------------------------------- Total Net Finance Actual Cash Estimated Receivables Collections Collect- Pur- Total Balance at Including Estimated ions to chase Purchase Estimated March 31, Cash Remaining Purchase Period Price Collections 2012 Sales Collections Price ---------------------------------------------------------------------------- 1996 $ 3,080 $ 10,234 $ - $ 10,152 $ 82 332% 1997 7,685 25,542 - 25,340 202 332% 1998 11,089 37,414 - 36,990 424 337% 1999 18,898 69,696 - 68,379 1,317 369% 2000 25,020 117,511 - 113,991 3,520 470% 2001 33,481 176,338 - 171,380 4,958 527% 2002 42,325 199,814 - 191,646 8,168 472% 2003 61,448 268,404 - 254,623 13,781 437% 2004 51,708 187,542 - 174,714 12,828 363% 2005 113,868 267,835 10,503 248,339 19,496 235% 2006 90,048 186,737 15,754 160,261 26,476 207% 2007 179,845 403,056 44,445 318,821 84,235 224% 2008 166,551 342,930 51,378 247,930 95,000 206% 2009 125,389 397,688 40,662 240,793 156,895 317% 2010 148,935 437,827 71,547 191,019 246,808 294% 2011 213,278 543,269 167,628 105,766 437,503 255% 2012 52,215 117,067 51,792 2,468 114,599 224% ---------------------------------------------------------------------------- Total $1,344,863 $ 3,788,904 $ 453,709 $ 2,562,612 $ 1,226,292 282% ----------------------------------------------------------------------------
SOURCE: Portfolio Recovery Associates, Inc.