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PRA Reports First Quarter 2014 Results

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NORFOLK, Va., April 30, 2014 (GLOBE NEWSWIRE) -- 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

Source:Portfolio Recovery Associates