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| 8-K - FORM 8-K FILING DOCUMENT - PRA GROUP INC | document.htm |
EXHIBIT 99.1
PRA Reports Fourth Quarter and Full Year 2012 Results
NORFOLK, Va., Feb. 13, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (PRA), a financial and business services company, today reported its fourth quarter and full year 2012 results.
Fourth Quarter Highlights
- Cash collections of $229.2 million, up 27% from the fourth quarter of 2011.
- Revenues of $154.3 million, up 31%.
- Net income of $35.8 million, up 35%.
- Diluted EPS of $2.10, compared with $1.54 a year ago.
- Annualized return on average equity of 20.6%.
- $199.1 million of portfolio purchases, up from $88.9 million in the fourth quarter of 2011.
For the full year 2012, net income was $126.6 million, compared with $100.8 million in 2011, an increase of 26%. Diluted earnings per share increased from $5.85 in 2011 to $7.39 in 2012. Revenues increased from $458.9 million in 2011 to $592.8 million in 2012.
"PRA again reported record operating results in the fourth quarter and for full year 2012, continuing a trend of strong year-over-year growth," said Steve Fredrickson, chairman, president and chief executive officer, PRA.
"Our financial results were led by increases in cash collections from our receivables portfolios. Cash collections were $908.7 million in 2012, up 29% over 2011. In 2012, we received a record 8 million payments on our debt portfolios. This includes growth in the number of recurring payment plans from customers to eliminate their debt, which provides a low-cost, recurring revenue stream for PRA. This record level of payments places PRA in an excellent position to continue to prosper in 2013 and beyond," Fredrickson said.
FINANCIAL AND OPERATING REVIEW – FOURTH QUARTER 2012
Revenues
- Revenues were $154.3 million for the quarter, up 31% from a year ago. This was driven by cash receipts of $245.4 million, up 25% from $195.7 million in Q4 2011. PRA defines cash receipts as the total of cash collections and fee income.
Finance Receivables Income and Cash Collections
- Finance receivables income, driven by cash collections from finance receivables, increased 34% to $138.1 million in Q4 2012 from $102.7 million in the year-ago period. Cash collections from finance receivables advanced 27% over Q4 2011, led by increases in core portfolio legal collections. These legal collections increased 49% in Q4 2012 from a year ago, due in part to PRA's expanded focus on collections from customers with an ability to pay back their debt, but who refuse attempts to collect. Bankruptcy portfolio collections and call center collections increased 21% and 19%, respectively.
| Cash Collection Source ($ in thousands) | Q42012 | Q32012 | Q22012 | Q12012 | Q42011 |
| Call Center & Other Collections | $ 72,624 | $ 72,394 | $ 73,582 | $ 79,805 | $ 61,227 |
| External Legal Collections | 41,521 | 39,913 | 41,464 | 34,852 | 26,316 |
| Internal Legal Collections | 23,968 | 25,650 | 25,361 | 23,345 | 17,615 |
| Purchased Bankruptcy Collections | 91,098 | 91,095 | 92,018 | 79,994 | 75,166 |
| Total Cash Collections | $ 229,211 | $ 229,052 | $ 232,425 | $ 217,996 | $ 180,324 |
- In Q4 2012, principal amortization of finance receivables was $91.1 million, or 39.8% of cash collections. This compares with $77.6 million, or 43.0% of cash collections, recorded in the year-earlier quarter. Principal amortization includes net allowance charges of $2.3 million against certain pools of finance receivables accounts recorded in the quarter, compared with $3.1 million recorded in Q4 2011.
Fee Income
- PRA's fee-based businesses generated Q4 2012 fee income of $16.2 million, compared with $15.3 million in the same period a year ago, which accounted for 10% of PRA's total revenues in Q4 2012 compared with 13% a year ago. Fee income from PRA's UK business acquired in January 2012 more than offset a decrease in fee income from PRA's US fee-based businesses, which continued to be impacted by the economic downturn. The company anticipates that its U.S. subsidiary, Claims Compensation Bureau, may generate substantially higher fee income during 2013, with a single, large case expected to provide $4 million to $6 million in fees during the first half of the year.
Operating Expenses and Income
-
Q4 2012 operating expenses were $94.3 million, up $22.1 million or 31% from the year-earlier quarter. The increase was due in large part to costs associated with business growth, including a $9.1 million increase in personnel-related expenses, an $8.1 million increase in legal costs and fees related to PRA's expanded focus on legal collections, and the inclusion of operating expenses of PRA's U.K. business acquired in January 2012.
- Q4 2012 operating income was $60.0 million, compared with $46.0 million in Q4 2011, an increase of 31%. The operating margin was 38.9% in both quarterly periods.
Balance Sheet and Purchasing
-
During the fourth quarter of 2012, PRA invested $199.1 million in portfolio purchases, compared with $88.9 million in the fourth quarter of 2011. Fourth quarter 2012 domestic purchasing volume was $196.5 million, and was comprised of $111.0 million in bankruptcy portfolio purchases and $85.5 million in core portfolio purchases. Fourth quarter 2012 bankruptcy portfolio investment included the acquisition of portfolios from National Capital Management, LLC announced on December 21, 2012. Domestic receivables purchased during the quarter were acquired in 94 portfolios from 15 different sellers.
-
Cash balances were $32.7 million as of December 31, 2012.
- As of December 31, 2012, long-term debt was $200.5 million and revolving debt was $127.0 million. Remaining borrowing availability, subject to normal borrowing and collateral provisions, under PRA's credit facility was $273.0 million.
Conference Call Information
PRA will hold a conference call today with investors at 6:15 p.m. ET to discuss its Q4 2012 results. Investors may access the call by calling 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 92957383. A replay will be available approximately one hour after the call ends and will remain available until February 20, 2013. Investors may access the replay of the call by calling 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. To access the replay, use the conference ID 92957383. Investors also may listen to the conference call via webcast, both live and archived, at http://ir.PortfolioRecovery.com/events.cfm.
About PRA
Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) is a financial and business services company operating in the U.S. and the U.K. As a leader in the U.S. debt buying industry, PRA returns capital to banks and other creditors that helps expand financial services for consumers. PRA collaborates with its customers to create affordable, realistic debt repayment plans in compliance with consumer protection laws. The company also provides a broad range of fee-based services to local governments and law enforcement, U.S. businesses, institutional investors, global hedge funds, and U.K. banks and creditors.
PRA was recognized as one of Fortune's 100 Fastest Growing Companies in 2012. The company also was named to Forbes' Top 25 Best Small Companies in America in 2012, and has been annually ranked as one of Forbes' 100 Best Small Companies since 2007. For more information, visit www.PortfolioRecovery.com.
The Portfolio Recovery Associates logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13727
About Forward-Looking Statements
Statements herein which are not historical, including Portfolio Recovery Associates' or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, including future revenue and earnings growth, statements with respect to future contributions of its subsidiaries to earnings and future portfolio-purchase opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include references to Portfolio Recovery Associates' presentations and web casts. The forward-looking statements in this press release are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in the Company's filings with the Securities and Exchange Commission including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, filed with the Securities and Exchange Commission and available through the Company's website, which contain a more detailed discussion of the Company's business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.
| Portfolio Recovery Associates, Inc. | ||||
| Unaudited Consolidated Income Statements | ||||
| (in thousands, except per share amounts) | ||||
| Three Months | Three Months | Year | Year | |
| Ended | Ended | Ended | Ended | |
| December 31, | December 31, | December 31, | December 31, | |
| 2012 | 2011 | 2012 | 2011 | |
| Revenues: | ||||
| Income recognized on finance receivables, net | $ 138,068 | $ 102,743 | $ 530,635 | $ 401,895 |
| Fee income | 16,183 | 15,344 | 62,166 | 57,040 |
| Total revenues | 154,251 | 118,087 | 592,801 | 458,935 |
| Operating expenses: | ||||
| Compensation and employee services | 44,849 | 35,759 | 168,356 | 138,202 |
| Legal collection fees | 9,153 | 5,940 | 34,393 | 23,621 |
| Legal collection costs | 14,619 | 9,710 | 72,325 | 38,659 |
| Agent fees | 1,411 | 1,647 | 5,906 | 7,653 |
| Outside fees and services | 7,292 | 5,607 | 28,867 | 19,310 |
| Communications | 7,073 | 5,487 | 29,110 | 23,372 |
| Rent and occupancy | 1,728 | 1,539 | 6,781 | 5,891 |
| Depreciation and amortization | 3,681 | 3,188 | 14,515 | 12,943 |
| Other operating expenses | 4,456 | 3,255 | 16,484 | 12,416 |
| Total operating expenses | 94,262 | 72,132 | 376,737 | 282,067 |
| Gain on sale of property | -- | -- | -- | 1,157 |
| Income from operations | 59,989 | 45,955 | 216,064 | 178,025 |
| Other income and (expense): | ||||
| Interest income | 2 | -- | 10 | 7 |
| Interest expense | (1,818) | (2,512) | (9,041) | (10,569) |
| Income before income taxes | 58,173 | 43,443 | 207,033 | 167,463 |
| Provision for income taxes | 22,441 | 16,776 | 80,934 | 66,319 |
| Net income | $ 35,732 | $ 26,667 | $ 126,099 | $ 101,144 |
| Adjustment for (loss)/income attributable to redeemable noncontrolling interest | (70) | 77 | (494) | 353 |
| Net income attributable to Portfolio Recovery Associates, Inc. | $ 35,802 | $ 26,590 | $ 126,593 | $ 100,791 |
| Net income per common share attributable to Portfolio Recovery Associates, Inc.: | ||||
| Basic | $ 2.12 | $ 1.55 | $ 7.45 | $ 5.89 |
| Diluted | $ 2.10 | $ 1.54 | $ 7.39 | $ 5.85 |
| Weighted average number of shares outstanding: | ||||
| Basic | 16,883 | 17,121 | 16,997 | 17,110 |
| Diluted | 17,072 | 17,269 | 17,123 | 17,230 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Condensed Consolidated Balance Sheets | ||
| (in thousands, except per share amounts) | ||
| December 31, | December 31, | |
| ASSETS | 2012 | 2011 |
| Cash and cash equivalents | $ 32,687 | $ 26,697 |
| Finance receivables, net | 1,078,951 | 926,734 |
| Accounts receivable, net | 10,486 | 7,862 |
| Property and equipment, net | 25,312 | 25,727 |
| Goodwill | 114,688 | 61,678 |
| Intangible assets, net | 20,364 | 14,596 |
| Other assets | 11,668 | 7,829 |
| Total assets | $ 1,294,156 | $ 1,071,123 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Accounts payable and accrued liabilities | $ 52,237 | $ 42,660 |
| Net deferred tax liability | 185,277 | 193,898 |
| Line of credit | 127,000 | 220,000 |
| Long-term debt | 200,542 | 1,246 |
| Total liabilities | 565,056 | 457,804 |
| Redeemable noncontrolling Interest | 20,673 | 17,831 |
| Stockholders' equity: | ||
| Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares - 0 | -- | -- |
| Common stock, par value $0.01, 60,000 authorized shares, 16,909 issued and outstanding shares at December 31, 2012, and 17,134 issued and outstanding shares at December 31, 2011 | 169 | 171 |
| Additional paid-in capital | 151,216 | 167,719 |
| Retained earnings | 554,191 | 427,598 |
| Accumulated other comprehensive income | 2,851 | -- |
| Total stockholders' equity | 708,427 | 595,488 |
| Total liabilities and equity | $ 1,294,156 | $ 1,071,123 |
| Portfolio Recovery Associates, Inc. | ||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| Year | Year | |
| Ended | Ended | |
| December 31, | December 31, | |
| 2012 | 2011 | |
| Cash flows from operating activities: | ||
| Net income | $ 126,099 | $ 101,144 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Amortization of share-based compensation | 11,282 | 7,759 |
| Depreciation and amortization | 14,515 | 12,943 |
| Deferred tax (benefit)/expense | (8,634) | 28,927 |
| Gain on sale of property | -- | (1,157) |
| Changes in operating assets and liabilities: | ||
| Other assets | 2,073 | (54) |
| Accounts receivable | (474) | 1,070 |
| Accounts payable and accrued liabilities | (13,444) | 22,393 |
| Net cash provided by operating activities | 131,417 | 173,025 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (7,115) | (9,634) |
| Proceeds from sale of property | -- | 1,267 |
| Acquisition of finance receivables, net of buybacks | (457,068) | (398,999) |
| Collections applied to principal on finance receivables | 378,049 | 303,595 |
| Business acquisitions, net of cash acquired | (148,995) | (985) |
| Proceeds from due from seller | 29,548 | -- |
| Net cash used in investing activities | (205,581) | (104,756) |
| Cash flows from financing activities: | ||
| Proceeds from exercise of options | -- | 150 |
| Income tax benefit from share-based compensation | 2,138 | 641 |
| Proceeds from line of credit | 294,000 | 32,000 |
| Principal payments on line of credit | (187,000) | (112,000) |
| Repurchases of common stock | (22,735) | -- |
| Payments of line of credit origination costs and fees | (4,994) | -- |
| Distributions paid to noncontrolling interest | -- | (2,307) |
| Principal payments on long-term debt | (704) | (1,150) |
| Net cash provided by/(used in) financing activities | 80,705 | (82,666) |
| Effect of exchange rate on cash | (551) | -- |
| Net increase/(decrease) in cash and cash equivalents | 5,990 | (14,397) |
| Cash and cash equivalents, beginning of year | 26,697 | 41,094 |
| Cash and cash equivalents, end of year | $ 32,687 | $ 26,697 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | $ 9,566 | $ 10,280 |
| Cash paid for income taxes | 98,738 | 23,641 |
| Noncash investing and financing activities: | ||
| Adjustment of the noncontrolling interest measurement amount | $ (3,597) | $ (4,112) |
| Distributions payable relating to noncontrolling interest | 261 | 67 |
| Employee stock relinquished for payment of taxes | (3,593) | (257) |
| Conversion of revolving line of credit to long-term debt | 200,000 | -- |
| Purchase Price Multiples at December 31, 2012, Entire Domestic Portfolio | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996 | $ 3,080 | $ 10,222 | $ -- | $ 10,183 | $ 39 | 332% |
| 1997 | 7,685 | 25,590 | -- | 25,422 | 168 | 333% |
| 1998 | 11,089 | 37,582 | -- | 37,178 | 404 | 339% |
| 1999 | 18,898 | 69,947 | -- | 68,872 | 1,075 | 370% |
| 2000 | 25,020 | 117,808 | -- | 115,316 | 2,492 | 471% |
| 2001 | 33,481 | 177,086 | -- | 173,568 | 3,518 | 529% |
| 2002 | 42,325 | 201,365 | -- | 195,044 | 6,321 | 476% |
| 2003 | 61,448 | 272,359 | -- | 259,874 | 12,485 | 443% |
| 2004 | 59,176 | 205,011 | -- | 193,754 | 11,257 | 346% |
| 2005 | 143,168 | 315,867 | 8,298 | 301,186 | 14,681 | 221% |
| 2006 | 107,674 | 214,994 | 9,170 | 199,716 | 15,278 | 200% |
| 2007 | 258,397 | 507,936 | 33,314 | 449,362 | 58,574 | 197% |
| 2008 | 275,165 | 522,112 | 55,112 | 430,738 | 91,374 | 190% |
| 2009 | 281,456 | 851,686 | 73,461 | 599,137 | 252,549 | 303% |
| 2010 | 358,143 | 942,234 | 137,577 | 539,508 | 402,726 | 263% |
| 2011 | 394,198 | 874,241 | 255,488 | 318,030 | 556,211 | 222% |
| 2012 | 518,333 | 937,983 | 492,013 | 74,289 | 863,694 | 181% |
| Total | $ 2,598,736 | $ 6,284,023 | $ 1,064,433 | $ 3,991,177 | $ 2,292,846 | 242% |
| Purchase Price Multiples at December 31, 2012, Purchased Bankruptcy Portfolio | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996-2003 | $ -- | $ -- | $ -- | $ -- | $ -- | 0% |
| 2004 | 7,468 | 14,501 | -- | 14,402 | 99 | 194% |
| 2005 | 29,301 | 43,569 | 56 | 43,472 | 97 | 149% |
| 2006 | 17,630 | 31,486 | 110 | 31,146 | 340 | 179% |
| 2007 | 78,544 | 104,796 | 1,531 | 102,925 | 1,871 | 133% |
| 2008 | 108,607 | 175,892 | 18,488 | 152,538 | 23,354 | 162% |
| 2009 | 156,053 | 442,700 | 44,090 | 309,083 | 133,617 | 284% |
| 2010 | 209,224 | 471,459 | 87,294 | 269,005 | 202,454 | 225% |
| 2011 | 182,175 | 290,933 | 140,044 | 81,597 | 209,336 | 160% |
| 2012 | 258,317 | 351,356 | 251,445 | 17,388 | 333,968 | 136% |
| Total | $ 1,047,319 | $ 1,926,692 | $ 543,058 | $ 1,021,556 | $ 905,136 | 184% |
| Purchase Price Multiples at December 31, 2012, Core Portfolio | ||||||
| ($ in thousands) | ||||||
| Actual Cash | ||||||
| Total | Net Finance | Collections | Estimated | Total Estimated | ||
| Purchase | Purchase | Estimated | Receivables | Including Cash | Remaining | Collections to |
| Period | Price | Collections | Balance | Sales | Collections | Purchase Price |
| 1996 | $ 3,080 | $ 10,222 | $ -- | $ 10,183 | $ 39 | 332% |
| 1997 | 7,685 | 25,590 | -- | 25,422 | 168 | 333% |
| 1998 | 11,089 | 37,582 | -- | 37,178 | 404 | 339% |
| 1999 | 18,898 | 69,947 | -- | 68,872 | 1,075 | 370% |
| 2000 | 25,020 | 117,808 | -- | 115,316 | 2,492 | 471% |
| 2001 | 33,481 | 177,086 | -- | 173,568 | 3,518 | 529% |
| 2002 | 42,325 | 201,365 | -- | 195,044 | 6,321 | 476% |
| 2003 | 61,448 | 272,359 | -- | 259,874 | 12,485 | 443% |
| 2004 | 51,708 | 190,510 | -- | 179,352 | 11,158 | 368% |
| 2005 | 113,867 | 272,298 | 8,242 | 257,714 | 14,584 | 239% |
| 2006 | 90,044 | 183,508 | 9,060 | 168,570 | 14,938 | 204% |
| 2007 | 179,853 | 403,140 | 31,783 | 346,437 | 56,703 | 224% |
| 2008 | 166,558 | 346,220 | 36,624 | 278,200 | 68,020 | 208% |
| 2009 | 125,403 | 408,986 | 29,371 | 290,054 | 118,932 | 326% |
| 2010 | 148,919 | 470,775 | 50,283 | 270,503 | 200,272 | 316% |
| 2011 | 212,023 | 583,308 | 115,444 | 236,433 | 346,875 | 275% |
| 2012 | 260,016 | 586,627 | 240,568 | 56,901 | 529,726 | 226% |
| Total | $ 1,551,417 | $ 4,357,331 | $ 521,375 | $ 2,969,621 | $ 1,387,710 | 281% |
| FINANCIAL HIGHLIGHTS | ||||||
| Three Months Ended | Twelve Months Ended | |||||
| December 31, | % | December 31, | % | |||
| 2012 | 2011 | Change | 2012 | 2011 | Change | |
| EARNINGS (in thousands) | ||||||
| Income recognized on finance receivables, net | $ 138,068 | $ 102,743 | 34% | $ 530,635 | $ 401,895 | 32% |
| Fee income | 16,183 | 15,344 | 5% | 62,166 | 57,040 | 9% |
| Total revenues | 154,251 | 118,087 | 31% | 592,801 | 458,935 | 29% |
| Operating expenses | 94,262 | 72,134 | 31% | 376,737 | 282,067 | 34% |
| Income from operations | 59,989 | 45,953 | 31% | 216,064 | 178,025 | 21% |
| Net interest expense | 1,816 | 2,512 | -28% | 9,031 | 10,562 | -15% |
| Net income | 35,732 | 26,666 | 34% | 126,099 | 101,144 | 25% |
| Net income attributable to Portfolio Recovery Associates, Inc. | 35,802 | 26,590 | 35% | 126,593 | 100,791 | 26% |
| PERIOD-END BALANCES (in thousands) | ||||||
| Cash and cash equivalents | $ 32,687 | $ 26,697 | 22% | $ 32,687 | $ 26,697 | 22% |
| Finance receivables, net | 1,078,951 | 926,734 | 16% | 1,078,951 | 926,734 | 16% |
| Goodwill and intangible assets, net | 135,052 | 76,274 | 77% | 135,052 | 76,274 | 77% |
| Total assets | 1,294,156 | 1,071,123 | 21% | 1,294,156 | 1,071,123 | 21% |
| Line of credit and long-term debt | 327,542 | 221,246 | 48% | 327,542 | 221,246 | 48% |
| Total liabilities | 565,056 | 457,804 | 23% | 565,056 | 457,804 | 23% |
| Total equity | 708,427 | 595,488 | 19% | 708,427 | 595,488 | 19% |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | ||||||
| Cash collections | $ 229,211 | $ 180,324 | 27% | $ 908,684 | $ 705,490 | 29% |
| Principal amortization without allowance charges | 88,851 | 74,481 | 19% | 371,497 | 293,431 | 27% |
| Principal amortization with allowance charges | 91,142 | 77,581 | 17% | 378,049 | 303,595 | 25% |
| Principal amortization w/ allowance charges as % of cash collections: | ||||||
| Including fully amortized pools | 39.8% | 43.0% | -8% | 41.6% | 43.0% | -3% |
| Excluding fully amortized pools | 40.9% | 44.9% | -9% | 43.0% | 45.4% | -5% |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | ||||||
| Balance at period-end | $ 93,123 | $ 86,571 | 8% | $ 93,123 | $ 86,571 | 8% |
| Allowance charge | 2,291 | 3,100 | -26% | 6,552 | 10,164 | -36% |
| Allowance charge to period-end net finance receivables | 0.21% | 0.33% | -37% | 0.61% | 1.10% | -45% |
| Allowance charge to net finance receivable income | 1.66% | 3.02% | -45% | 1.23% | 2.53% | -51% |
| Allowance charge to cash collections | 1.00% | 1.72% | -42% | 0.72% | 1.44% | -50% |
| PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands) | ||||||
| Purchase price - core | $ 85,476 | $ 42,532 | 101% | $ 259,795 | $ 213,389 | 22% |
| Face value - core | 901,512 | 829,232 | 9% | 3,581,246 | 7,900,761 | -55% |
| Purchase price - bankruptcy | 111,001 | 46,360 | 139% | 262,630 | 195,019 | 35% |
| Face value - bankruptcy | 946,927 | 376,094 | 152% | 2,104,977 | 1,891,595 | 11% |
| Purchase price - total | 196,477 | 88,892 | 121% | 522,425 | 408,408 | 28% |
| Face value - total | 1,848,439 | 1,205,326 | 53% | 5,686,223 | 9,792,356 | -42% |
| Number of portfolios - total | 94 | 83 | 13% | 376 | 333 | 13% |
| ESTIMATED REMAINING COLLECTIONS (1) (in thousands) | ||||||
| Estimated remaining collections - core | $ 1,387,711 | $ 1,159,086 | 20% | $ 1,387,711 | $ 1,159,086 | 20% |
| Estimated remaining collections - bankruptcy | 905,136 | 794,262 | 14% | 905,136 | 794,262 | 14% |
| Estimated remaining collections - total | 2,292,847 | 1,953,348 | 17% | 2,292,847 | 1,953,348 | 17% |
| SHARE DATA (share amounts in thousands) | ||||||
| Net income per common share - diluted | $ 2.10 | $ 1.54 | 36% | $ 7.39 | $ 5.85 | 26% |
| Weighted average number of shares outstanding - diluted | 17,072 | 17,269 | -1% | 17,123 | 17,230 | -1% |
| Shares repurchased | 0.1 | -- | 100% | 332 | -- | 100% |
| Average price paid per share repurchased (including acquisitions costs) | $ 93.02 | -- | 100% | $ 68.57 | -- | 100% |
| Closing market price | $ 106.86 | $ 67.52 | 58% | $ 106.86 | $ 67.52 | 58% |
| RATIOS AND OTHER DATA (dollars in thousands) | ||||||
| Return on average equity (2) | 20.6% | 18.2% | 14% | 19.6% | 18.5% | 6% |
| Return on revenue (3) | 23.2% | 22.6% | 3% | 21.3% | 22.0% | -3% |
| Operating margin (4) | 38.9% | 38.9% | 0% | 36.4% | 38.8% | -6% |
| Operating expense to cash receipts (5) | 38.4% | 36.9% | 4% | 38.8% | 37.0% | 5% |
| Debt to equity (6) | 46.2% | 37.2% | 24% | 46.2% | 37.2% | 24% |
| Number of collectors | 2,153 | 1,658 | 30% | 2,153 | 1,658 | 30% |
| Number of full-time equivalent employees | 3,221 | 2,641 | 22% | 3,221 | 2,641 | 22% |
| Cash receipts (5) | $ 245,394 | $ 195,668 | 25% | $ 970,850 | $ 762,530 | 27% |
| Line of credit - unused portion at period end | 273,000 | 187,500 | 46% | 273,000 | 187,500 | 46% |
| (1) Domestic portfolio only | ||||||
| (2) Calculated as annualized net income divided by average equity for the period | ||||||
| (3) Calculated as net income divided by total revenues | ||||||
| (4) Calculated as income from operations divided by total revenues | ||||||
| (5) "Cash receipts" is defined as cash collections plus fee income | ||||||
| (6) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt | ||||||
| FINANCIAL HIGHLIGHTS | ||||||
| For the Quarter Ended | ||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||
| 2012 | 2012 | 2012 | 2012 | 2011 | ||
| EARNINGS (in thousands) | ||||||
| Income recognized on finance receivables, net | $ 138,068 | $ 135,754 | $ 132,587 | $ 124,226 | $ 102,743 | |
| Fee income | 16,183 | 14,765 | 15,298 | 15,920 | 15,344 | |
| Total revenues | 154,251 | 150,519 | 147,885 | 140,146 | 118,087 | |
| Operating expenses | 94,262 | 93,461 | 93,289 | 95,725 | 72,134 | |
| Income from operations | 59,989 | 57,058 | 54,596 | 44,421 | 45,953 | |
| Net interest expense | 1,816 | 2,189 | 2,374 | 2,652 | 2,512 | |
| Net income | 35,732 | 33,127 | 32,051 | 25,189 | 26,666 | |
| Net income attributable to Portfolio Recovery Associates, Inc. | 35,802 | 33,314 | 32,015 | 25,462 | 26,590 | |
| PERIOD-END BALANCES (in thousands) | ||||||
| Cash and cash equivalents | $ 32,687 | $ 31,488 | $ 42,621 | $ 28,068 | $ 26,697 | |
| Finance receivables, net | 1,078,951 | 973,594 | 966,508 | 945,242 | 926,734 | |
| Goodwill and intangible assets, net | 135,052 | 121,623 | 121,748 | 124,659 | 76,274 | |
| Total assets | 1,294,156 | 1,169,698 | 1,173,738 | 1,142,026 | 1,071,123 | |
| Line of credit and long-term debt | 327,542 | 250,675 | 292,850 | 265,936 | 221,246 | |
| Total liabilities | 565,056 | 479,211 | 520,911 | 502,531 | 457,804 | |
| Total equity | 708,427 | 670,489 | 633,446 | 620,712 | 595,488 | |
| FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) | ||||||
| Cash collections | $ 229,211 | $ 229,053 | $ 232,425 | $ 217,996 | $ 180,324 | |
| Principal amortization without allowance charges | 88,851 | 91,736 | 97,634 | 93,276 | 74,481 | |
| Principal amortization with allowance charges | 91,142 | 93,299 | 99,838 | 93,770 | 77,581 | |
| Principal amortization w/ allowance charges as % of cash collections: | ||||||
| Including fully amortized pools | 39.8% | 40.7% | 43.0% | 43.0% | 43.0% | |
| Excluding fully amortized pools | 40.9% | 42.0% | 44.4% | 44.8% | 44.9% | |
| ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands) | ||||||
| Balance at period-end | $ 93,123 | $ 90,832 | $ 89,269 | $ 87,065 | $ 86,571 | |
| Allowance charge | 2,291 | 1,563 | 2,204 | 494 | 3,100 | |
| Allowance charge to period-end net finance receivables | 0.21% | 0.16% | 0.23% | 0.05% | 0.33% | |
| Allowance charge to net finance receivable income | 1.66% | 1.15% | 1.66% | 0.40% | 3.02% | |
| Allowance charge to cash collections | 1.00% | 0.68% | 0.95% | 0.23% | 1.72% | |
| PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands) | ||||||
| Purchase price - core | $ 85,476 | $ 52,703 | $ 69,512 | $ 52,104 | $ 42,532 | |
| Face value - core | 901,512 | 674,135 | 1,033,331 | 972,268 | 829,232 | |
| Purchase price - bankruptcy | 111,001 | 41,277 | 53,460 | 56,892 | 46,360 | |
| Face value - bankruptcy | 946,927 | 341,359 | 448,244 | 368,447 | 376,094 | |
| Purchase price - total | 196,477 | 93,980 | 122,972 | 108,996 | 88,892 | |
| Face value - total | 1,848,439 | 1,015,494 | 1,481,575 | 1,340,715 | 1,205,326 | |
| Number of portfolios - total | 94 | 95 | 105 | 82 | 83 | |
| ESTIMATED REMAINING COLLECTIONS (1) (in thousands) | ||||||
| Estimated remaining collections - core | $ 1,387,711 | $ 1,323,134 | $ 1,305,641 | $ 1,226,292 | $ 1,159,086 | |
| Estimated remaining collections - bankruptcy | 905,136 | 791,018 | 802,353 | 796,161 | 794,262 | |
| Estimated remaining collections - total | 2,292,847 | 2,114,152 | 2,107,994 | 2,022,453 | 1,953,348 | |
| SHARE DATA (share amounts in thousands) | ||||||
| Net income per common share - diluted | $ 2.10 | $ 1.96 | $ 1.87 | $ 1.47 | $ 1.54 | |
| Weighted average number of shares outstanding - diluted | 17,072 | 17,022 | 17,133 | 17,267 | 17,269 | |
| Shares repurchased | 0 | -- | 300,849 | 30,600 | -- | |
| Average price paid per share repurchased (including acquisitions costs) | $ 93.02 | $ -- | $ 68.62 | $ 68.02 | -- | |
| Closing market price | $ 106.86 | $ 104.43 | $ 91.26 | $ 71.72 | $ 67.52 | |
| RATIOS AND OTHER DATA (dollars in thousands) | ||||||
| Return on average equity (2) | 20.64% | 20.29% | 20.34% | 16.70% | 18.18% | |
| Return on revenue (3) | 23.16% | 22.01% | 21.67% | 17.97% | 22.58% | |
| Operating margin (4) | 38.89% | 37.91% | 36.92% | 31.70% | 38.91% | |
| Operating expense to cash receipts (5) | 38.41% | 38.33% | 37.66% | 40.92% | 36.87% | |
| Debt to equity (6) | 46.24% | 37.39% | 46.33% | 42.84% | 37.15% | |
| Number of collectors | 2,153 | 1,992 | 1,952 | 1,934 | 1,658 | |
| Number of full-time equivalent employees | 3,221 | 3,103 | 3,032 | 3,014 | 2,641 | |
| Cash receipts (5) | $ 245,394 | $ 243,818 | $ 247,723 | $ 233,916 | $ 195,668 | |
| Line of credit - unused portion at period end | 273,000 | 214,450 | 166,450 | 142,500 | 187,500 | |
| (1) Domestic portfolio only | ||||||
| (2) Calculated as annualized net income divided by average equity for the period | ||||||
| (3) Calculated as net income divided by total revenues | ||||||
| (4) Calculated as income from operations divided by total revenues | ||||||
| (5) "Cash receipts" is defined as cash collections plus fee income | ||||||
| (6) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt | ||||||
CONTACT: Rick Goulart
Vice President, Corporate Communications
757-961-3525
RickGoulart@PortfolioRecovery.com