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Portfolio Recovery Associates Reports Third Quarter 2012 Results

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NORFOLK, Va., Oct. 30, 2012 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (Nasdaq:PRAA), a specialized financial and business services company, today reported its third quarter 2012 results.

Third Quarter Highlights

  • Cash collections of $229 million, up 26% from the third quarter of 2011.
  • Revenue of $151 million, up 32% from the year-earlier quarter.
  • Net income of $33 million, an increase of 31% over the third quarter of 2011.
  • Diluted EPS of $1.96, compared with $1.48 in the third quarter of 2011.
  • Annualized return on average equity of 20.3%.

"As the US economy slowly recovers, more and more consumers are paying down their debt, resulting in strong, year-over-year growth in cash collections, as well as record revenue and net income for PRA," said Steve Fredrickson, chairman, president and chief executive officer. "Our business model of diversified purchases and cash collections from both bankrupt and non-bankrupt portfolios of debt, combined with domestic-led call centers and fees earned from our business services, continued to drive our record results."

FINANCIAL AND OPERATING REVIEW – THIRD QUARTER 2012

Revenues

  • Revenues were $150.5 million for the quarter, up 32% from a year ago. This was driven by cash receipts of $243.8 million, up 26% from $193.6 million in Q3 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 32% to $135.8 million in Q3 2012 from $102.9 million in the year-ago period. Cash collections from finance receivables advanced 26% over Q3 2011, led by increases in Core portfolio legal collections as well as collections on bankruptcy portfolios. Core portfolio legal collections increased 50% in Q3 2012 from a year ago, due in part to the company's expanded focus on collections from those who can, but won't, pay back their debt. Bankruptcy portfolio collections increased 22%.
Cash Collection Source ($ in thousands) Q32012 Q22012 Q12012 Q42011 Q32011
Call Center & Other Collections $ 72,394 $ 73,582 $ 79,805 $ 61,227 $ 63,967
External Legal Collections 39,913 41,464 34,852 26,316 27,245
Internal Legal Collections 25,650 25,361 23,345 17,615 16,444
Purchased Bankruptcy Collections 91,095 92,018 79,994 75,166 74,512
Total Cash Collections $ 229,052 $ 232,425 $ 217,996 $ 180,324 $ 182,168
  • In Q3 2012, principal amortization of finance receivables as a percentage of cash collections was 40.7%, compared with 43.5% in the year-earlier quarter. Principal amortization includes net allowance charges of $1.6 million against certain pools of finance receivables accounts recorded in the quarter, compared with $0.7 million recorded in Q3 2011.

Fee Income

  • PRA's businesses services companies generated Q3 2012 fee income of $14.8 million, compared with $11.4 million in the same period a year ago. This increase was due primarily to income generated from our UK business acquired in January 2012. Together, the fee-based businesses accounted for 10% of PRA's total revenues this quarter and in Q3 2011.

Operating Expenses and Income

  • Q3 2012 operating expenses were $93.5 million, up $23.0 million or 33% from the year-earlier quarter. The increase was due in large part to costs associated with business growth, including an $8.8 million increase in legal costs and fees related to PRA's expanded focus on legal collections, and the inclusion of the operating expenses of PRA's U.K. business acquired in January 2012.
  • Q3 2012 operating income was $57.1 million, compared with $43.8 million in Q3 2011, an increase of 30%. The operating margin decreased slightly from 38.4% in the year-earlier quarter to 37.9% in the recently completed quarter.

Balance Sheet

  • PRA purchased $1.0 billion of domestic portfolio face-value finance receivables in Q3 2012 for $94.0 million. These receivables were acquired in 95 defaulted portfolios from 12 different sellers.
  • Cash balances were $31.5 million as of September 30, 2012.
  • As of September 30, 2012, the balance on PRA's line of credit was $250 million, with remaining borrowing availability, subject to normal borrowing and collateral provisions, under the line of $214.5 million.

Conference Call Information

The company will hold a conference call today with investors at 5:30 p.m. ET to discuss its Q3 2012 results. Investors may access the call by dialing 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 38849567. A replay will be available approximately one hour after the call ends and will remain available until November 6, 2012. Investors may access the replay of the call by dialing 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. To access the replay, use the conference ID 38849567. Investors also may listen to the conference call via webcast, both live and archived at http://ir.PortfolioRecovery.com/events.cfm.

About Portfolio Recovery Associates

Portfolio Recovery Associates, Inc. (PRA) is a specialized financial and business services company. A market leader in the consumer debt purchase and collection industry, PRA has a longstanding culture of compliance, engaging collaboratively with its customers to create realistic, affordable repayment plans. The company provides a broad range of business services to local government, auto lenders, law enforcement, institutional investors, manufacturers and retailers, 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 one of 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, please 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 Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2012 2011 2012 2011
Revenues:
Income recognized on finance receivables, net $ 135,754 $ 102,875 $ 392,566 $ 299,152
Fee income 14,765 11,401 45,983 41,696
Total revenues 150,519 114,276 438,549 340,848
Operating expenses:
Compensation and employee services 41,334 33,475 123,508 102,443
Legal collection fees 8,635 5,962 25,241 17,681
Legal collection costs 15,810 9,731 57,705 28,949
Agent fees 1,545 1,643 4,495 6,005
Outside fees and services 10,131 6,222 21,575 13,702
Communications 6,777 5,865 22,037 17,884
Rent and occupancy 1,786 1,517 5,053 4,353
Depreciation and amortization 3,623 3,223 10,833 9,755
Other operating expenses 3,820 2,808 12,027 9,161
Total operating expenses 93,461 70,446 282,474 209,933
Gain on sale of property -- -- -- 1,157
Income from operations 57,058 43,830 156,075 132,072
Other income and (expense):
Interest income -- 7 8 7
Interest expense (2,189) (2,555) (7,223) (8,057)
Income before income taxes 54,869 41,282 148,860 124,022
Provision for income taxes 21,742 16,089 58,493 49,544
Net income $ 33,127 $ 25,193 $ 90,367 $ 74,478
Adjustment for (loss)/income attributable to redeemable noncontrolling interest (187) (313) (424) 277
Net income attributable to Portfolio Recovery Associates, Inc. $ 33,314 $ 25,506 $ 90,791 $ 74,201
Net income per common share attributable to Portfolio Recovery Associates, Inc.:
Basic $ 1.97 $ 1.49 $ 5.33 $ 4.34
Diluted $ 1.96 $ 1.48 $ 5.30 $ 4.31
Weighted average number of shares outstanding:
Basic 16,881 17,117 17,034 17,106
Diluted 17,022 17,228 17,140 17,218
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
September 30, December 31,
ASSETS 2012 2011
Cash and cash equivalents $ 31,488 $ 26,697
Finance receivables, net 973,594 926,734
Accounts receivable, net 8,417 7,862
Property and equipment, net 25,506 25,727
Goodwill 100,456 61,678
Intangible assets, net 21,167 14,596
Other assets 9,070 7,829
Total assets $ 1,169,698 $ 1,071,123
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued liabilities $ 42,031 $ 42,660
Net deferred tax liability 186,506 193,898
Line of credit 250,000 220,000
Long-term debt 674 1,246
Total liabilities 479,211 457,804
Redeemable noncontrolling Interest 19,998 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, 16,881 issued and outstanding shares at September 30, 2012, and 17,134 issued and outstanding shares at December 31, 2011 169 171
Additional paid-in capital 149,818 167,719
Retained earnings 518,389 427,598
Accumulated other comprehensive income 2,113 --
Total stockholders' equity 670,489 595,488
Total liabilities and equity $ 1,169,698 $ 1,071,123
Portfolio Recovery Associates, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine Months Nine Months
Ended Ended
September 30, September 30,
2012 2011
Cash flows from operating activities:
Net income $ 90,367 $ 74,478
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of share-based compensation 8,361 6,110
Depreciation and amortization 10,833 9,755
Deferred tax (benefit)/expense (7,377) 27,327
Gain on sale of property -- (1,157)
Changes in operating assets and liabilities:
Other assets (353) (953)
Accounts receivable 1,579 2,470
Accounts payable and accrued liabilities (9,748) 5,141
Net cash provided by operating activities 93,662 123,171
Cash flows from investing activities:
Purchases of property and equipment (5,362) (4,851)
Proceeds from sale of property -- 1,267
Acquisition of finance receivables, net of buybacks (329,444) (314,162)
Collections applied to principal on finance receivables 286,907 226,014
Business acquisitions, net of cash acquired (48,653) --
Net cash used in investing activities (96,552) (91,732)
Cash flows from financing activities:
Proceeds from exercise of options -- 150
Income tax benefit from share-based compensation 1,484 503
Proceeds from line of credit 160,000 27,000
Principal payments on line of credit (130,000) (67,000)
Repurchases of common stock (22,726) --
Distributions paid to noncontrolling interest -- (2,308)
Principal payments on long-term debt (572) (843)
Net cash provided by/(used in) financing activities 8,186 (42,498)
Effect of exchange rate on cash (505) --
Net increase/(decrease) in cash and cash equivalents 4,791 (11,059)
Cash and cash equivalents, beginning of year 26,697 41,094
Cash and cash equivalents, end of period $ 31,488 $ 30,035
Supplemental disclosure of cash flow information:
Cash paid for interest $ 7,577 $ 7,771
Cash paid for income taxes 71,521 19,058
Noncash investing and financing activities:
Adjustment of the noncontrolling interest measurement amount $ (2,852) $ (3,175)
Distributions payable relating to noncontrolling interest 261 --
Employee stock relinquished for payment of taxes (2,170) --
FINANCIAL HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30, % September 30, %
2012 2011 Change 2012 2011 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 135,754 $ 102,875 32% $ 392,566 $ 299,152 31%
Fee income 14,765 11,401 30% 45,983 41,696 10%
Total revenues 150,519 114,276 32% 438,549 340,848 29%
Operating expenses 93,461 70,446 33% 282,474 209,933 35%
Income from operations 57,058 43,830 30% 156,075 132,072 18%
Net interest expense 2,189 2,548 -14% 7,215 8,050 -10%
Net income 33,127 25,193 31% 90,367 74,478 21%
Net income attributable to Portfolio Recovery Associates, Inc. 33,314 25,506 31% 90,791 74,201 22%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 31,488 $ 30,035 5% $ 31,488 $ 30,035 5%
Finance receivables, net 973,594 919,478 6% 973,594 919,478 6%
Goodwill and intangible assets, net 121,623 76,426 59% 121,623 76,426 59%
Total assets 1,169,698 1,064,104 10% 1,169,698 1,064,104 10%
Line of credit 250,000 260,000 -4% 250,000 260,000 -4%
Total liabilities 479,211 478,915 0% 479,211 478,915 0%
Total equity 670,489 568,305 18% 670,489 568,305 18%
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 229,053 $ 182,168 26% $ 679,473 $ 525,166 29%
Principal amortization without allowance charges 91,736 78,552 17% 282,646 218,950 29%
Principal amortization with allowance charges 93,299 79,293 18% 286,907 226,014 27%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 40.7% 43.5% -6% 42.2% 43.0% -2%
Excluding fully amortized pools 42.0% 45.7% -8% 43.7% 45.6% -4%
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)
Balance at period-end $ 90,832 $ 83,471 9% $ 90,832 $ 83,471 9%
Allowance charge 1,563 741 111% 4,261 7,064 -40%
Allowance charge to period-end net finance receivables 0.16% 0.08% 99% 0.44% 0.77% -43%
Allowance charge to net finance receivable income 1.15% 0.72% 60% 1.09% 2.36% -54%
Allowance charge to cash collections 0.68% 0.41% 68% 0.63% 1.35% -53%
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)
Purchase price - core $ 52,703 $ 57,240 -8% $ 174,319 $ 170,857 2%
Face value - core 674,135 5,027,874 -87% 2,679,734 7,071,530 -62%
Purchase price - bankruptcy 41,277 64,848 -36% 151,629 148,659 2%
Face value - bankruptcy 341,359 654,508 -48% 1,158,050 1,515,501 -24%
Purchase price - total 93,980 122,088 -23% 325,948 319,516 2%
Face value - total 1,015,494 5,682,382 -82% 3,837,784 8,587,031 -55%
Number of portfolios - total 95 95 0% 282 250 13%
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)
Estimated remaining collections - core $ 1,323,134 $ 1,154,406 15% $ 1,323,134 $ 1,154,406 15%
Estimated remaining collections - bankruptcy 791,018 770,886 3% 791,018 770,886 3%
Estimated remaining collections - total 2,114,152 1,925,292 10% 2,114,152 1,925,292 10%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 1.96 $ 1.48 32% $ 5.30 $ 4.31 23%
Weighted average number of shares outstanding - diluted 17,022 17,228 -1% 17,140 17,218 0%
Shares repurchased -- -- 100% 331,449 -- 100%
Average price paid per share repurchased (including acquisitions costs) $ -- -- 100% $ 68.56 -- 100%
Closing market price $ 104.43 $ 62.22 68% $ 104.43 $ 62.22 68%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (2) 20.29% 18.27% 11% 19.15% 18.57% 3%
Return on revenue (3) 22.01% 22.05% 0% 20.61% 21.85% -6%
Operating margin (4) 37.91% 38.35% -1% 35.59% 38.75% -8%
Operating expense to cash receipts (5) 38.33% 36.39% 5% 38.94% 37.03% 5%
Debt to equity (6) 37.39% 46.02% -19% 37.39% 46.02% -19%
Number of collectors 1,992 1,520 31% 1,992 1,520 31%
Number of employees 3,103 2,504 24% 3,103 2,504 24%
Cash receipts (5) $ 243,818 $ 193,569 26% $ 725,456 $ 566,862 28%
Line of credit - unused portion at period end 214,450 147,500 45% 214,450 147,500 45%
(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
September 30 June 30 March 31 December 31 September 30
2012 2012 2012 2011 2011
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 135,754 $ 132,587 $ 124,226 $ 102,743 $ 102,875
Fee income 14,765 15,298 15,920 15,344 11,401
Total revenues 150,519 147,885 140,146 118,087 114,276
Operating expenses 93,461 93,289 95,725 72,134 70,446
Income from operations 57,058 54,596 44,421 45,953 43,830
Net interest expense 2,189 2,374 2,652 2,512 2,548
Net income 33,127 32,051 25,189 26,666 25,193
Net income attributable to Portfolio Recovery Associates, Inc. 33,314 32,015 25,462 26,590 25,506
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 31,488 $ 42,621 $ 28,068 $ 26,697 $ 30,035
Finance receivables, net 973,594 966,508 945,242 926,734 919,478
Goodwill and intangible assets, net 121,623 121,748 124,659 76,274 76,426
Total assets 1,169,698 1,173,738 1,142,026 1,071,123 1,064,104
Line of credit 250,000 292,000 265,000 220,000 260,000
Total liabilities 479,211 520,911 502,531 457,804 478,915
Total equity 670,489 633,446 620,712 595,488 568,305
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 229,053 $ 232,425 $ 217,996 $ 180,324 $ 182,168
Principal amortization without allowance charges 91,736 97,634 93,276 74,481 78,552
Principal amortization with allowance charges 93,299 99,838 93,770 77,581 79,293
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 40.7% 43.0% 43.0% 43.0% 43.5%
Excluding fully amortized pools 42.0% 44.4% 44.8% 44.9% 45.7%
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)
Balance at period-end $ 90,832 $ 89,269 $ 87,065 $ 86,571 $ 83,471
Allowance charge 1,563 2,204 494 3,100 741
Allowance charge to period-end net finance receivables 0.16% 0.23% 0.05% 0.33% 0.08%
Allowance charge to net finance receivable income 1.15% 1.66% 0.40% 3.02% 0.72%
Allowance charge to cash collections 0.68% 0.95% 0.23% 1.72% 0.41%
PURCHASES OF FINANCE RECEIVABLES (1) (dollars in thousands)
Purchase price - core $ 52,703 $ 69,512 $ 52,104 $ 42,532 $ 57,240
Face value - core 674,135 1,033,331 972,268 829,232 5,027,874
Purchase price - bankruptcy 41,277 53,460 56,892 46,360 64,848
Face value - bankruptcy 341,359 448,244 368,447 376,094 654,508
Purchase price - total 93,980 122,972 108,996 88,892 122,088
Face value - total 1,015,494 1,481,575 1,340,715 1,205,326 5,682,382
Number of portfolios - total 95 105 82 83 95
ESTIMATED REMAINING COLLECTIONS (1) (in thousands)
Estimated remaining collections - core $ 1,323,134 $ 1,305,641 $ 1,226,292 $ 1,159,086 $ 1,154,406
Estimated remaining collections - bankruptcy 791,018 802,353 796,161 794,262 770,886
Estimated remaining collections - total 2,114,152 2,107,994 2,022,453 1,953,348 1,925,292
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 1.96 $ 1.87 $ 1.47 $ 1.54 $ 1.48
Weighted average number of shares outstanding - diluted 17,022 17,133 17,267 17,269 17,228
Shares repurchased -- 300,849 30,600 -- --
Average price paid per share repurchased (including acquisitions costs) $ -- $ 68.62 $ 68.02 -- --
Closing market price $ 104.43 $ 91.26 $ 71.72 $ 67.52 $ 62.22
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (2) 20.29% 20.34% 16.70% 18.18% 18.27%
Return on revenue (3) 22.01% 21.67% 17.97% 22.58% 22.05%
Operating margin (4) 37.91% 36.92% 31.70% 38.91% 38.35%
Operating expense to cash receipts (5) 38.33% 37.66% 40.92% 36.87% 36.39%
Debt to equity (6) 37.39% 46.33% 42.84% 37.15% 46.02%
Number of collectors 1,992 1,952 1,934 1,658 1,520
Number of employees 3,103 3,032 3,014 2,641 2,504
Cash receipts (5) $ 243,818 $ 247,723 $ 233,916 $ 195,668 $ 193,569
Line of credit - unused portion at period end 214,450 166,450 142,500 187,500 147,500
(1) Domestic portfolio only
(2) Calculated as annualized net income divided by average equity for the period
(3) Calculated as net income divided by total revenues
(4) Calculated as income from operations divided by total revenues
(5) "Cash receipts" is defined as cash collections plus fee income
(6) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt
Purchase Price Multiples at September 30, 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 $ 10,214 $ -- $ 10,171 $ 43 332%
1997 7,685 25,534 -- 25,387 147 332%
1998 11,089 37,585 -- 37,130 455 339%
1999 18,898 69,748 -- 68,715 1,033 369%
2000 25,020 117,469 -- 114,900 2,569 470%
2001 33,481 176,653 -- 172,937 3,716 528%
2002 42,325 201,333 -- 194,041 7,292 476%
2003 61,448 271,159 -- 258,244 12,915 441%
2004 59,176 204,729 -- 192,361 12,368 346%
2005 143,168 314,232 8,853 298,170 16,062 219%
2006 107,673 215,261 10,496 197,088 18,173 200%
2007 258,379 508,637 38,359 440,216 68,421 197%
2008 275,148 526,639 67,272 415,563 111,076 191%
2009 281,438 820,543 85,138 558,585 261,958 292%
2010 358,149 895,607 154,974 484,149 411,458 250%
2011 394,261 869,129 283,307 258,182 610,947 220%
2012 324,627 615,027 311,561 39,508 575,519 189%
Total $ 2,405,045 $ 5,879,499 $ 959,960 $ 3,765,347 $ 2,114,152 244%
Purchase Price Multiples at September 30, 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 14,462 -- 14,378 84 194%
2005 29,301 43,492 38 43,418 74 148%
2006 17,630 31,458 70 31,011 447 178%
2007 78,544 105,590 2,918 102,050 3,540 134%
2008 108,607 181,980 27,141 146,362 35,618 168%
2009 156,054 414,562 53,167 282,968 131,594 266%
2010 209,224 427,223 99,242 237,297 189,926 204%
2011 182,180 289,553 151,416 63,270 226,283 159%
2012 149,633 213,156 146,410 9,704 203,452 142%
Total $ 938,641 $ 1,721,476 $ 480,402 $ 930,458 $ 791,018 183%
Purchase Price Multiples at September 30, 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 $ 10,214 $ -- $ 10,171 $ 43 332%
1997 7,685 25,534 -- 25,387 147 332%
1998 11,089 37,585 -- 37,130 455 339%
1999 18,898 69,748 -- 68,715 1,033 369%
2000 25,020 117,469 -- 114,900 2,569 470%
2001 33,481 176,653 -- 172,937 3,716 528%
2002 42,325 201,333 -- 194,041 7,292 476%
2003 61,448 271,159 -- 258,244 12,915 441%
2004 51,708 190,267 -- 177,983 12,284 368%
2005 113,867 270,740 8,815 254,752 15,988 238%
2006 90,043 183,803 10,426 166,077 17,726 204%
2007 179,835 403,047 35,441 338,166 64,881 224%
2008 166,541 344,659 40,131 269,201 75,458 207%
2009 125,384 405,981 31,971 275,617 130,364 324%
2010 148,925 468,384 55,732 246,852 221,532 315%
2011 212,081 579,576 131,891 194,912 384,664 273%
2012 174,994 401,871 165,151 29,804 372,067 230%
Total $ 1,466,404 $ 4,158,023 $ 479,558 $ 2,834,889 $ 1,323,134 284%
CONTACT: Rick Goulart Vice President, Corporate Communications (757) 961-3525 RickGoulart@PortfolioRecovery.com

Source:Portfolio Recovery Associates