Gross collections were $185.9 million, a 25% increase over the $149.2 million in the same period of the prior year.

Investment in receivable portfolios was $136.7 million, to purchase $3.8 billion in face value of debt, compared to $119.1 million, to purchase $3.9 billion in face value of debt in the same period of the prior year. Available capacity under the revolving credit facility, subject to borrowing base and applicable debt covenants, was $105.5 million as of December 31, 2011. Total debt, consisting of the revolving credit facility, senior secured notes and capital lease obligations, was $389.0 million as of December 31, 2011, compared to $385.3 million as of December 31, 2010.

Revenue from receivable portfolios, net was $116.5 million, a 22% increase over the $95.7 million in the same period of the prior year. Revenue recognized on receivable portfolios, as a percentage of portfolio collections, excluding the effects of net portfolio allowances, decreased to approximately 64% from 68% in the same period of the prior year.

Revenue from bankruptcy servicing was $4.2 million, compared to $4.0 million in the same period of the prior year.

Total operating expenses were $88.0 million, a 23% increase over the $71.6 million in the same period of the prior year. Adjusted operating expense (operating expenses excluding stock-based compensation expense and bankruptcy servicing operating expenses) per dollar collected decreased to 44.1% compared to 44.4% in the same period of the prior year.

Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, stock-based compensation expense and portfolio amortization, was $105.0 million, a 25% increase over the $83.9 million in the same period of the prior year.

Total interest expense remained consistent at $5.0 million, as compared to the same period of the prior year.

Net income was $17.1 million, or $0.67 per fully diluted share, compared to net income of $14.2 million, or $0.56 per fully diluted share in the same period of the prior year.

Tangible book value per share, computed by dividing total stockholders’ equity less goodwill and identifiable intangible assets by the number of diluted shares outstanding, was $13.84 as of December 31, 2011, a 22% increase over $11.35 as of December 31, 2010.

Gross collections were $761.2 million, a 26% increase over the $604.6 million in 2010.

Investment in receivable portfolios was $386.9 million, to purchase $11.7 billion in face value of debt, compared to $362.0 million, to purchase $10.9 billion in face value of debt in 2010.

Total revenue was $467.4 million, a 23% increase over the $381.3 million in 2010.

Total operating expenses were $346.6 million, a 22% increase over the $284.3 million in 2010. Adjusted operating expense (operating expenses excluding stock-based compensation expense and bankruptcy servicing operating expenses) per dollar collected decreased to 42.2% compared to 43.7% in 2010.

Adjusted EBITDA was $445.0 million, a 28% increase over the $346.7 million in 2010.

Net income was $61.0 million, or $2.37 per fully diluted share, compared to net income of $49.1 million, or $1.95 per fully diluted share in 2010.

Assets

Cash and cash equivalents

Accounts receivable, net

Investment in receivable portfolios, net

Deferred court costs, net

Property and equipment, net

Other assets

Goodwill

Identifiable intangible assets, net

Total assets

Liabilities and stockholders’ equity

Liabilities:

Accounts payable and accrued liabilities

Deferred tax liabilities, net

Debt

Other liabilities

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding

Common stock, $.01 par value, 50,000 shares authorized, 24,520 shares and 24,011 shares issued and outstanding as of December 31, 2011 and 2010, respectively

Additional paid-in capital

Accumulated earnings

Accumulated other comprehensive (loss) income

Total stockholders’ equity

Total liabilities and stockholders’ equity

Revenues

Revenue from receivable portfolios, net

Servicing fees and other related revenue

Total revenues

Operating expenses

Salaries and employee benefits (excluding stock-based compensation expense)

Stock-based compensation expense

Cost of legal collections

Other operating expenses

Collection agency commissions

General and administrative expenses

Depreciation and amortization

Total operating expenses

Income from operations

Other (expense) income

Interest expense

Other (expense) income

Total other expense

Income before income taxes

Provision for income taxes

Net income

Weighted average shares outstanding:

Basic

Diluted

Earnings per share:

Basic

Diluted

Operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Amortization of loan costs and debt discount

Stock-based compensation expense

Gain on repurchase of convertible notes, net

Deferred income tax (benefit) expense

Excess tax benefit from stock-based payment arrangements

Provision for allowances on receivable portfolios, net

Changes in operating assets and liabilities

Other assets

Deferred court costs

Prepaid income tax and income taxes payable

Accounts payable, accrued liabilities and other liabilities

Net cash provided by operating activities

Investing activities:

Purchases of receivable portfolios, net of forward flow allocation

Collections applied to investment in receivable portfolios, net

Proceeds from put-backs of receivable portfolios

Purchases of property and equipment

Net cash used in investing activities

Financing activities:

Payment of loan costs

Proceeds from senior secured notes

Proceeds from revolving credit facility

Repayment of revolving credit facility

Repayment of convertible notes

Proceeds from net settlement of certain call options

Proceeds from exercise of stock options

Taxes paid related to net share settlement of equity awards

Excess tax benefit from stock-based payment arrangements

Repayment of capital lease obligations

Net cash provided by financing activities

Net (decrease) increase in cash

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental disclosures of cash flow information:

Cash paid for interest

Cash paid for income taxes

Supplemental schedule of non-cash investing and financing activities:

Fixed assets acquired through capital lease

Allocation of forward flow asset to acquired receivable portfolios

GAAP net income, as reported

Interest expense

Provision for income taxes

Depreciation and amortization

Amount applied to principal on receivable portfolios

Stock-based compensation expense

Adjusted EBITDA

GAAP total operating expenses, as reported

Stock-based compensation expense

Bankruptcy servicing operating expenses

GAAP total stockholders’ equity, as reported

Goodwill

Identifiable intangible assets, net

Tangible book value

Diluted shares outstanding

Tangible book value per share