PRA Investorroom
NORFOLK, Va., April 30, 2014-- Portfolio Recovery Associates, Inc. (Nasdaq:PRAA), a financial and business services company operating in the U.S., Canada and U.K., today reported its financial results for the first quarter 2014.
First Quarter Highlights
- Cash collections of $313.4 million, up 14% from the first quarter of 2013.
- Revenues of $193.9 million, up 14%.
- Net income of $40.8 million, up 6%.
- $0.81 diluted earnings per share, compared with $0.75 a year ago, up 8%. The Company incurred costs of $0.05 per diluted share in connection with the Aktiv Kapital acquisition. Excluding those costs, earnings per diluted share would have been $0.86.
- 18.2% return on average equity, annualized.
- $152.7 million in portfolio acquisitions.
"PRA is pleased to announce that first quarter collections, revenues and net income were up year-over-year. Our results in the first quarter met our expectations and we've made good progress toward expanding our debt buying business throughout Europe with our announced acquisition of Aktiv Kapital. We are working hard to close the Aktiv acquisition along with the acquisition of Pamplona's IVA platform," said Steve Fredrickson, chairman, president and chief executive officer, PRA.
"While the supply of available debt to acquire in the U.S. remains lower than in years past, PRA invested $153 million across North America and the U.K." Fredrickson said.
REVENUES
- Revenues of $193.9 million in the first quarter, largely driven by cash collections, included finance receivables income net of principal amortization and allowance charges or reversals. Net finance receivables income was $178.0 million, up 15% from $154.8 million in the year-ago quarter.
Cash Collections from Finance Receivables
- Cash collections increased 14% in the first quarter from the year-ago quarter to $313.4 million, and included collections from these finance receivables sources:
| Cash Collection Source ($ in thousands) | Q12014 | Q42013 | Q32013 | Q22013 | Q12013 |
| Call Center and Other Collections | $ 97,736 | $ 84,375 | $ 89,512 | $ 90,229 | $ 89,037 |
| External Legal Collections | 50,990 | 46,066 | 48,274 | 50,131 | 47,910 |
| Internal Legal Collections | 43,939 | 34,101 | 33,288 | 30,365 | 29,283 |
| Bankruptcy Court Trustee Payments | 120,702 | 114,384 | 120,577 | 125,672 | 109,233 |
| Total Cash Collections | $ 313,367 | $ 278,926 | $ 291,651 | $ 296,397 | $ 275,463 |
- Principal amortization of finance receivables in the first quarter was $135.4 million or 43.2% of cash collections, compared with 43.8% in the year-ago quarter. Principal amortization included a net allowance reversal of $2.0 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance charge of $2.2 million recorded in the year-ago quarter.
Fee Income
- Revenues in the first quarter also included income from PRA's fee-based businesses of $15.9 million, compared with $14.8 million in the year-ago quarter.
EXPENSES AND OPERATING INCOME
- Operating expenses were $122.3 million in the first quarter of 2014, compared with $103.7 million a year ago, an increase of 18%. In association with the Company's legal collection strategy, external legal collection expenses (attorney's fees and court costs) increased $6.3 million from the year-ago quarter. The Company also incurred approximately $4.4 million of expenses during the quarter related to its pending acquisition of Aktiv Kapital. The Company anticipates approximately $10 million in expenses related to the acquisition of Aktiv Kapital in the second quarter.
- Operating income increased 9% to $71.6 million, compared with $65.9 million in the year-ago quarter. The operating margin was 36.9% in the first quarter of 2014.
- The provision for income taxes was $25.9 million in the first quarter, up 5% from the year-ago quarter. PRA's provision for income taxes was 38.8% of income before taxes in the first quarter, compared with 39.1% in the year-ago quarter.
PORTFOLIO ACQUISITIONS
- PRA invested $152.7 million in new finance receivables from North American and U.K. creditors in the first quarter of 2014, compared with $214.9 million in the year-ago quarter. Receivables purchased were acquired in 104 portfolios from 14 different sellers.
| Portfolio Purchase Source ($ in thousands) | Q12014 | Q42013 | Q32013 | Q22013 | Q12013 |
| Core Customer Debt | $ 80,711 | $ 67,522 | $ 100,081 | $ 118,195 | $ 128,338 |
| Bankruptcy Court Claims | 72,003 | 31,987 | 41,794 | 82,273 | 86,595 |
| Total Portfolio Purchases | $ 152,714 | $ 99,509 | $ 141,875 | $ 200,468 | $ 214,933 |
- Core customer debt purchased in the first quarter included $79.1 million in North American accounts and $1.6 million in U.K. accounts.
BALANCE SHEET
- Borrowings totaled $450.3 million at March 31, 2014, and consisted of $257.8 million in convertible senior notes and $192.5 million in other long-term debt. Total borrowings were $371.2 million at March 31, 2013. Remaining borrowing availability, subject to normal borrowing and collateral provisions, under PRA's credit facility was $435.5 million at March 31, 2014. On April 1, 2014, the Company increased the availability of its credit facility to $650 million, all of which was available to be drawn.
- Cash and cash equivalents were $191.8 million at March 31, 2014, compared with $39.1 million at March 31, 2013.
- Net deferred tax liabilities were $220.9 million at March 31, 2014, compared with $185.8 million a year ago.
- Stockholders' equity increased to $910.2 million at March 31, 2014, from $751.0 million at March 31, 2013.
Conference Call Information
PRA will hold a conference call today at 5:30 p.m. ET to discuss results with institutional investors and stock analysts. A webcast of the call, both live and archived, will be available at http://ir.PortfolioRecovery.com/events.cfm. Please access the call by dialing 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 30835658. A question-and-answer session will be open only to institutional investors and analysts. A replay of the call and webcast will be available until May 7, 2014. Call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. to hear a replay of the call. The conference ID is 30835658.
About PRA
As a leader in the U.S. debt buying industry, Portfolio Recovery Associates, Inc. (PRA) returns capital to client banks and other creditors to help expand financial services for all consumers. PRA collaborates with customers to create affordable, realistic repayment plans. PRA also provides a broad range of collection and recovery services to business and government clients.
In 2013 and 2012, PRA was ranked among Fortune's 100 Fastest-Growing Companies and Forbes' Top 25 Best Small Companies in America. For more information, please visit www.PortfolioRecovery.com.
About Forward Looking Statements
Statements made herein which are not historical, including Portfolio Recovery Associates' (PRA's) or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, including, but not limited to, statements with respect to future revenue and earnings, and statements with respect to future contributions of Aktiv Kapital; our ability to satisfy closing conditions or successfully, if ever, complete the acquisition of Aktiv Kapital; our ability to fully realize the expected benefits of the acquisition of Aktiv Kapital; the ability of Aktiv Kapital, or of any of PRA's subsidiaries, to contribute to earnings and future portfolio-purchase opportunities, all of which, 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. These forward-looking statements 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.
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 PRA. Actual events or results may differ materially 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 PRA's filings with the Securities and Exchange Commission including but not limited to PRA's 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 PRA's website, which contain detailed discussion of PRA's business, including risks and uncertainties that may affect future results.
Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this presentation may be superseded by recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission 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 | |
| Ended | Ended | |
| March 31, | March 31, | |
| 2014 | 2013 | |
| Revenues: | ||
| Income recognized on finance receivables, net | $ 177,970 | $ 154,792 |
| Fee income | 15,952 | 14,767 |
| Total revenues | 193,922 | 169,559 |
| Operating expenses: | ||
| Compensation and employee services | 51,385 | 44,997 |
| Legal collection fees | 10,833 | 10,529 |
| Legal collection costs | 26,533 | 20,501 |
| Agent fees | 1,450 | 1,609 |
| Outside fees and services | 10,791 | 7,447 |
| Communications | 9,154 | 8,079 |
| Rent and occupancy | 2,147 | 1,687 |
| Depreciation and amortization | 3,947 | 3,366 |
| Other operating expenses | 6,092 | 5,457 |
| Total operating expenses | 122,332 | 103,672 |
| Income from operations | 71,590 | 65,887 |
| Other income and (expense): | ||
| Interest income | 1 | -- |
| Interest expense | (4,860) | (2,689) |
| Income before income taxes | 66,731 | 63,198 |
| Provision for income taxes | 25,891 | 24,681 |
| Net income | $ 40,840 | $ 38,517 |
| Adjustment for net loss attributable to redeemable noncontrolling interest | -- | 83 |
| Net income attributable to Portfolio Recovery Associates, Inc. | $ 40,840 | $ 38,600 |
| Net income per common share attributable to Portfolio Recovery Associates, Inc.: | ||
| Basic | $ 0.82 | $ 0.76 |
| Diluted | $ 0.81 | $ 0.75 |
| Weighted average number of shares outstanding: | ||
| Basic | 49,929 | 50,811 |
| Diluted | 50,363 | 51,273 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Consolidated Balance Sheets | ||
| (in thousands, except per share amounts) | ||
| March 31, | December 31, | |
| ASSETS | 2014 | 2013 |
| Cash and cash equivalents | $ 191,819 | $ 162,004 |
| Finance receivables, net | 1,253,961 | 1,239,191 |
| Accounts receivable, net | 11,551 | 12,359 |
| Income taxes receivable | 1,015 | 11,710 |
| Property and equipment, net | 35,130 | 31,541 |
| Net deferred tax asset | 1,369 | 1,361 |
| Goodwill | 104,086 | 103,843 |
| Intangible assets, net | 14,714 | 15,767 |
| Other assets | 28,968 | 23,456 |
| Total assets | $ 1,642,613 | $ 1,601,232 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Accounts payable | $ 24,199 | $ 14,819 |
| Accrued expenses and other liabilities | 28,351 | 27,655 |
| Accrued compensation | 8,684 | 27,431 |
| Net deferred tax liability | 220,883 | 210,071 |
| Borrowings | 450,278 | 451,780 |
| Total liabilities | 732,395 | 731,756 |
| 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, 50,060 issued and outstanding shares at March 31, 2014, and 49,840 issued and outstanding shares at December 31, 2013 | 501 | 498 |
| Additional paid-in capital | 134,892 | 135,441 |
| Retained earnings | 770,345 | 729,505 |
| Accumulated other comprehensive income | 4,480 | 4,032 |
| Total stockholders' equity | 910,218 | 869,476 |
| Total liabilities and equity | $ 1,642,613 | $ 1,601,232 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| Three Months Ended March 31, | ||
| 2014 | 2013 | |
| Cash flows from operating activities: | ||
| Net income | $ 40,840 | $ 38,517 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Amortization of share-based compensation | 2,836 | 2,986 |
| Depreciation and amortization | 3,947 | 3,366 |
| Amortization of debt discount | 998 | -- |
| Deferred tax expense | 10,812 | 529 |
| Changes in operating assets and liabilities: | ||
| Other assets | (5,496) | (2,070) |
| Accounts receivable | 821 | 1,149 |
| Accounts payable | 9,361 | 588 |
| Income tax payable/receivable, net | 10,695 | 19,088 |
| Accrued expenses | 686 | (2,503) |
| Accrued compensation | (26,245) | (3,537) |
| Net cash provided by operating activities | 49,255 | 58,113 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (6,416) | (2,466) |
| Acquisition of finance receivables, net of buybacks | (150,087) | (212,389) |
| Collections applied to principal on finance receivables | 135,397 | 120,671 |
| Net cash used in investing activities | (21,106) | (94,184) |
| Cash flows from financing activities: | ||
| Income tax benefit from share-based compensation | 4,115 | 2,207 |
| Proceeds from line of credit | -- | 95,000 |
| Principal payments on line of credit | -- | (50,000) |
| Repurchases of common stock | -- | (1,912) |
| Cash paid for noncontrolling interest | -- | (1,150) |
| Distributions paid to noncontrolling interest | -- | (51) |
| Principal payments on long-term debt | (2,500) | (1,384) |
| Net cash provided by financing activities | 1,615 | 42,710 |
| Effect of exchange rate on cash | 51 | (215) |
| Net increase in cash and cash equivalents | 29,815 | 6,424 |
| Cash and cash equivalents, beginning of period | 162,004 | 32,687 |
| Cash and cash equivalents, end of period | $ 191,819 | $ 39,111 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | $ 5,731 | $ 2,656 |
| Cash paid for income taxes | 1,868 | 2,866 |
| Noncash investing and financing activities: | ||
| Adjustment of the redeemable noncontrolling interest measurement amount | $ -- | $ (60) |
| Purchase of noncontrolling interest | -- | 9,162 |
| Distributions payable relating to noncontrolling interest | -- | 2 |
| Employee stock relinquished for payment of taxes | (7,498) | (4,002) |
| FINANCIAL HIGHLIGHTS | |||
| As of and for the Three Months Ended | |||
| March 31, | % | ||
| 2014 | 2013 | Change | |
| EARNINGS (in thousands) | |||
| Income recognized on finance receivables, net | $ 177,970 | $ 154,792 | 15% |
| Fee income | 15,952 | 14,767 | 8% |
| Total revenues | 193,922 | 169,559 | 14% |
| Operating expenses | 122,332 | 103,672 | 18% |
| Income from operations | 71,590 | 65,887 | 9% |
| Net interest expense | 4,859 | 2,689 | 81% |
| Net income | 40,840 | 38,517 | 6% |
| Net income attributable to Portfolio Recovery Associates, Inc. | 40,840 | 38,600 | 6% |
| PERIOD-END BALANCES (in thousands) | |||
| Cash and cash equivalents | $ 191,819 | $ 39,111 | 390% |
| Finance receivables, net | 1,253,961 | 1,169,747 | 7% |
| Goodwill and intangible assets, net | 118,800 | 125,462 | -5% |
| Total assets | 1,642,613 | 1,382,739 | 19% |
| Borrowings | 450,278 | 371,159 | 21% |
| Total liabilities | 732,395 | 621,413 | 18% |
| Total equity | 910,218 | 750,990 | 21% |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | |||
| Cash collections | $ 313,367 | $ 275,463 | 14% |
| Cash collections on fully amortized pools | 16,516 | 6,345 | 160% |
| Principal amortization without allowance charges | 137,350 | 118,498 | 16% |
| Principal amortization with allowance charges | 135,397 | 120,671 | 12% |
| Principal amortization w/ allowance charges as % of cash collections: | |||
| Including fully amortized pools | 43.2% | 43.8% | -1% |
| Excluding fully amortized pools | 45.6% | 44.8% | 2% |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | |||
| Allowance (reversal)/charge | (1,953) | 2,173 | -190% |
| Allowance (reversal)/charge to period-end net finance receivables | -0.2% | 0.2% | -184% |
| Allowance (reversal)/charge to net finance receivable income | -1.1% | 1.4% | -178% |
| Allowance (reversal)/charge to cash collections | -0.6% | 0.8% | -179% |
| PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) | |||
| Purchase price - core | $ 79,085 | $ 126,951 | -38% |
| Face value - core | 837,036 | 1,398,960 | -40% |
| Purchase price - bankruptcy | 65,501 | 86,595 | -24% |
| Face value - bankruptcy | 557,220 | 436,508 | 28% |
| Purchase price - other | 8,128 | 1,387 | 486% |
| Face value - other | 519,118 | 18,570 | 2695% |
| Purchase price - total | 152,714 | 214,933 | -29% |
| Face value - total | 1,913,374 | 1,854,038 | 3% |
| Number of portfolios - total | 104 | 91 | 14% |
| ESTIMATED REMAINING COLLECTIONS (in thousands) | |||
| Estimated remaining collections - core | $ 1,891,511 | $ 1,547,644 | 22% |
| Estimated remaining collections - bankruptcy | 788,774 | 924,520 | -15% |
| Estimated remaining collections - other | 24,439 | 14,739 | 66% |
| Estimated remaining collections - total | 2,704,724 | 2,486,903 | 9% |
| SHARE DATA-ADJUSTED (7) (share amounts in thousands) | |||
| Net income per common share - diluted | $ 0.81 | $ 0.75 | 8% |
| Weighted average number of shares outstanding - diluted | 50,363 | 51,273 | -2% |
| Shares repurchased | -- | 48 | -100% |
| Average price paid per share repurchased (including acquisitions costs) | $ -- | $ 39.34 | -100% |
| Closing market price | $ 57.86 | $ 42.31 | 37% |
| RATIOS AND OTHER DATA (dollars in thousands) | |||
| Return on average equity (1) | 18.2% | 21.1% | -14% |
| Return on revenue (2) | 21.1% | 22.7% | -7% |
| Return on average assets (3) | 10.0% | 11.3% | -12% |
| Operating margin (4) | 36.9% | 38.9% | -5% |
| Operating expense to cash receipts (5) | 37.1% | 35.7% | 4% |
| Debt to equity (6) | 49.5% | 49.4% | 0% |
| Number of collectors | 2,379 | 2,159 | 10% |
| Number of full-time equivalent employees | 3,621 | 3,250 | 11% |
| Cash receipts (5) | $ 329,319 | $ 290,230 | 13% |
| Line of credit - unused portion at period end | 435,500 | 228,000 | 91% |
| (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 borrowings | |||
| (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 | |||||
| March 31 | December 31 | September 30 | June 30 | March 31 | |
| 2014 | 2013 | 2013 | 2013 | 2013 | |
| EARNINGS (in thousands) | |||||
| Income recognized on finance receivables, net | $ 177,970 | $ 168,728 | $ 171,456 | $ 168,570 | $ 154,792 |
| Fee income | 15,952 | 16,125 | 26,306 | 14,391 | 14,767 |
| Total revenues | 193,922 | 184,853 | 197,762 | 182,961 | 169,559 |
| Operating expenses | 122,332 | 106,503 | 118,294 | 109,135 | 103,672 |
| Income from operations | 71,590 | 78,350 | 79,468 | 73,826 | 65,887 |
| Net interest expense | 4,859 | 4,860 | 3,995 | 2,923 | 2,689 |
| Net income | 40,840 | 45,777 | 49,211 | 43,414 | 38,517 |
| Net income attributable to Portfolio Recovery Associates, Inc. | 40,840 | 45,777 | 47,338 | 43,599 | 38,600 |
| PERIOD-END BALANCES (in thousands) | |||||
| Cash and cash equivalents | $ 191,819 | $ 162,004 | $ 108,705 | $ 43,459 | $ 39,111 |
| Finance receivables, net | 1,253,961 | 1,239,191 | 1,256,822 | 1,236,859 | 1,169,747 |
| Goodwill and intangible assets, net | 118,800 | 119,610 | 119,636 | 124,349 | 125,462 |
| Total assets | 1,642,613 | 1,601,232 | 1,547,985 | 1,457,246 | 1,382,739 |
| Borrowings | 450,278 | 451,780 | 452,229 | 413,774 | 371,159 |
| Total liabilities | 732,395 | 731,756 | 721,001 | 655,012 | 621,413 |
| Total equity | 910,218 | 869,476 | 816,647 | 791,898 | 750,990 |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | |||||
| Cash collections | $ 313,367 | $ 278,926 | $ 291,651 | $ 296,397 | $ 275,463 |
| Cash collections on fully amortized pools | 16,516 | 9,801 | 8,762 | 10,612 | 6,345 |
| Principal amortization without allowance charges | 137,350 | 110,626 | 122,776 | 129,012 | 118,498 |
| Principal amortization with allowance charges | 135,397 | 110,197 | 120,195 | 127,827 | 120,671 |
| Principal amortization w/ allowance charges as % of cash collections: | |||||
| Including fully amortized pools | 43.2% | 39.5% | 41.2% | 43.1% | 43.8% |
| Excluding fully amortized pools | 45.6% | 40.9% | 42.5% | 44.7% | 44.8% |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | |||||
| Allowance (reversal)/charge | (1,953) | (429) | (2,581) | (1,185) | 2,173 |
| Allowance (reversal)/charge to period-end net finance receivables | -0.2% | 0.0% | -0.2% | -0.1% | 0.2% |
| Allowance (reversal)/charge to net finance receivable income | -1.1% | -0.3% | -1.5% | -0.7% | 1.4% |
| Allowance (reversal)/charge to cash collections | -0.6% | -0.2% | -0.9% | -0.4% | 0.8% |
| PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) | |||||
| Purchase price - core | $ 79,085 | $ 65,759 | $ 89,044 | $ 113,314 | $ 126,951 |
| Face value - core | 837,036 | 774,543 | 1,352,877 | 1,178,229 | 1,398,960 |
| Purchase price - bankruptcy | 65,501 | 31,987 | 41,794 | 82,273 | 86,595 |
| Face value - bankruptcy | 557,220 | 235,064 | 215,957 | 1,926,515 | 436,508 |
| Purchase price - other | 8,128 | 1,763 | 11,037 | 4,881 | 1,387 |
| Face value - other | 519,118 | 22,493 | 218,528 | 81,852 | 18,570 |
| Purchase price - total | 152,714 | 99,509 | 141,875 | 200,468 | 214,933 |
| Face value - total | 1,913,374 | 1,032,100 | 1,787,362 | 3,186,596 | 1,854,038 |
| Number of portfolios - total | 104 | 83 | 79 | 94 | 91 |
| ESTIMATED REMAINING COLLECTIONS (in thousands) | |||||
| Estimated remaining collections - core | $ 1,891,511 | $ 1,824,132 | $ 1,762,369 | $ 1,694,262 | $ 1,547,644 |
| Estimated remaining collections - bankruptcy | 788,774 | 822,988 | 877,722 | 925,223 | 924,520 |
| Estimated remaining collections - other | 24,439 | 22,150 | 32,272 | 16,744 | 14,739 |
| Estimated remaining collections - total | 2,704,724 | 2,669,270 | 2,672,363 | 2,636,229 | 2,486,903 |
| SHARE DATA-ADJUSTED (7) (share amounts in thousands) | |||||
| Net income per common share - diluted | $ 0.81 | $ 0.91 | $ 0.93 | $ 0.85 | $ 0.75 |
| Weighted average number of shares outstanding - diluted | 50,363 | 50,375 | 50,660 | 51,183 | 51,273 |
| Shares repurchased | -- | -- | 989 | 166 | 48 |
| Average price paid per share repurchased (including acquisitions costs) | $ -- | $ -- | $ 50.55 | $ 39.82 | $ 39.34 |
| Closing market price | $ 57.86 | $ 52.84 | $ 59.93 | $ 51.21 | $ 42.31 |
| RATIOS AND OTHER DATA (dollars in thousands) | |||||
| Return on average equity (1) | 18.2% | 21.5% | 23.5% | 22.5% | 21.1% |
| Return on revenue (2) | 21.1% | 24.8% | 24.9% | 23.7% | 22.7% |
| Return on average assets (3) | 10.0% | 11.5% | 12.5% | 12.1% | 11.3% |
| Operating margin (4) | 36.9% | 42.4% | 40.2% | 40.4% | 38.9% |
| Operating expense to cash receipts (5) | 37.1% | 36.1% | 37.2% | 35.1% | 35.7% |
| Debt to equity (6) | 49.5% | 52.0% | 55.4% | 52.3% | 49.4% |
| Number of collectors | 2,379 | 2,313 | 2,054 | 2,190 | 2,159 |
| Number of full-time equivalent employees | 3,621 | 3,543 | 3,223 | 3,362 | 3,250 |
| Cash receipts (5) | $ 329,319 | $ 295,051 | $ 317,957 | $ 310,788 | $ 290,230 |
| Line of credit - unused portion at period end | 435,500 | 435,500 | 435,500 | 184,000 | 228,000 |
| (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 borrowings | |||||
| (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 | |||||
| Summary Portfolio Data at March 31, 2014, 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 | $ 10,227 | $ -- | $ 10,211 | $ 16 | 332% |
| 1997 | 7,685 | 25,600 | -- | 25,521 | 79 | 333% |
| 1998 | 11,089 | 37,581 | -- | 37,384 | 197 | 339% |
| 1999 | 18,898 | 69,836 | -- | 69,433 | 403 | 370% |
| 2000 | 25,020 | 118,678 | -- | 116,918 | 1,760 | 474% |
| 2001 | 33,481 | 178,936 | -- | 176,364 | 2,572 | 534% |
| 2002 | 42,325 | 203,979 | -- | 199,228 | 4,751 | 482% |
| 2003 | 61,447 | 273,719 | -- | 266,348 | 7,371 | 445% |
| 2004 | 59,176 | 206,294 | -- | 199,213 | 7,081 | 349% |
| 2005 | 143,167 | 328,076 | 5,725 | 313,029 | 15,047 | 229% |
| 2006 | 107,667 | 222,758 | 5,878 | 210,205 | 12,553 | 207% |
| 2007 | 258,367 | 526,977 | 19,091 | 484,621 | 42,356 | 204% |
| 2008 | 275,121 | 533,621 | 24,564 | 480,864 | 52,757 | 194% |
| 2009 | 281,333 | 912,530 | 22,742 | 776,617 | 135,913 | 324% |
| 2010 | 357,810 | 1,048,010 | 68,117 | 786,876 | 261,134 | 293% |
| 2011 | 392,929 | 1,018,831 | 142,431 | 606,679 | 412,152 | 259% |
| 2012 | 508,683 | 1,018,297 | 299,429 | 419,298 | 598,999 | 200% |
| 2013 | 627,917 | 1,133,180 | 508,564 | 235,921 | 897,259 | 180% |
| 2014 | 144,899 | 238,052 | 138,336 | 10,167 | 227,885 | 164% |
| Total | $ 3,360,094 | $ 8,105,182 | $ 1,234,877 | $ 5,424,897 | $ 2,680,285 | 241% |
| Summary Portfolio Data at March 31, 2014, 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 | 14,580 | -- | 14,520 | 60 | 195% |
| 2005 | 29,301 | 43,774 | 16 | 43,673 | 101 | 149% |
| 2006 | 17,627 | 31,957 | 47 | 31,659 | 298 | 181% |
| 2007 | 78,526 | 106,177 | 221 | 104,337 | 1,840 | 135% |
| 2008 | 108,586 | 168,841 | 1,814 | 164,846 | 3,995 | 155% |
| 2009 | 156,030 | 471,250 | 6,453 | 425,189 | 46,061 | 302% |
| 2010 | 209,164 | 519,964 | 37,920 | 417,853 | 102,111 | 249% |
| 2011 | 181,897 | 310,097 | 77,312 | 185,643 | 124,454 | 170% |
| 2012 | 252,383 | 347,328 | 156,771 | 145,384 | 201,944 | 138% |
| 2013 | 234,193 | 304,089 | 184,899 | 71,823 | 232,266 | 130% |
| 2014 | 65,501 | 81,666 | 60,192 | 6,022 | 75,644 | 125% |
| Total | $ 1,340,676 | $ 2,399,723 | $ 525,645 | $ 1,610,949 | $ 788,774 | 179% |
| Summary Portfolio Data at March 31, 2014, 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 | $ 10,227 | $ -- | $ 10,211 | $ 16 | 332% |
| 1997 | 7,685 | 25,600 | -- | 25,521 | 79 | 333% |
| 1998 | 11,089 | 37,581 | -- | 37,384 | 197 | 339% |
| 1999 | 18,898 | 69,836 | -- | 69,433 | 403 | 370% |
| 2000 | 25,020 | 118,678 | -- | 116,918 | 1,760 | 474% |
| 2001 | 33,481 | 178,936 | -- | 176,364 | 2,572 | 534% |
| 2002 | 42,325 | 203,979 | -- | 199,228 | 4,751 | 482% |
| 2003 | 61,447 | 273,719 | -- | 266,348 | 7,371 | 445% |
| 2004 | 51,708 | 191,714 | -- | 184,693 | 7,021 | 371% |
| 2005 | 113,866 | 284,302 | 5,709 | 269,356 | 14,946 | 250% |
| 2006 | 90,040 | 190,801 | 5,831 | 178,546 | 12,255 | 212% |
| 2007 | 179,841 | 420,800 | 18,870 | 380,284 | 40,516 | 234% |
| 2008 | 166,535 | 364,780 | 22,750 | 316,018 | 48,762 | 219% |
| 2009 | 125,303 | 441,280 | 16,289 | 351,428 | 89,852 | 352% |
| 2010 | 148,646 | 528,046 | 30,197 | 369,023 | 159,023 | 355% |
| 2011 | 211,032 | 708,734 | 65,119 | 421,036 | 287,698 | 336% |
| 2012 | 256,300 | 670,969 | 142,658 | 273,914 | 397,055 | 262% |
| 2013 | 393,724 | 829,091 | 323,665 | 164,098 | 664,993 | 211% |
| 2014 | 79,398 | 156,386 | 78,144 | 4,145 | 152,241 | 197% |
| Total | $ 2,019,418 | $ 5,705,459 | $ 709,232 | $ 3,813,948 | $ 1,891,511 | 283% |
CONTACT: Investor Contact:
Darby Schoenfeld
Director of Investor Relations
Portfolio Recovery Associates, Inc.
(757) 431-7913
DCSchoenfeld@PortfolioRecovery.com
News Media Contact:
Rick Goulart
Vice President, Corporate Communications
Portfolio Recovery Associates, Inc.
(757) 961-3525
RickGoulart@PortfolioRecovery.com