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PRA Reports First Quarter 2013 Results

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NORFOLK, Va., April 30, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (PRA), a financial and business services company operating in the U.S. and U.K., today reported its first quarter 2013 financial results.

First Quarter Highlights

  • Cash collections of $275.5 million, up 26% from the first quarter of 2012
  • Revenues of $169.6 million, up 21%
  • Net income attributable to PRA of $38.6 million, up 52%
  • $2.26 diluted EPS, compared with $1.47 a year ago
  • 21.1% return on average equity, annualized
  • $214.9 million of portfolio purchases, including $126.9 million of U.S. core customer accounts and $1.4 million of U.K. core customer accounts, plus $86.6 million in U.S. bankruptcy court claims.

"PRA began 2013 the same way we ended 2012, reporting record, year-over-year results," said Steve Fredrickson, chairman, president and chief executive officer, PRA.

"This quarter we produced across the board growth in cash collections, revenue and net income, which again drove return on average equity over our target of 20%. Our investment in new U.S. and U.K. portfolios of consumer debt surpassed even our extraordinary Q4 2012 level of acquisitions. PRA has now acquired $414 million in new accounts during the last six months that will drive revenue and income for years to come," Fredrickson said.

REVENUES

  • Revenues were $169.6 million for the quarter, up 21% from a year ago, and were comprised of $154.8 million in net finance receivable income and $14.8 million in fee income.

Finance Receivables Income and Cash Collections

  • Finance receivables income increased 25% to $154.8 million in Q1 2013 from $124.2 million in the year-ago period. Cash collections from finance receivables increased 26% over Q1 2012 to $275.5 million, and were comprised of bankruptcy court trustee payments of $109.2 million, $89.0 million in call center and other collections, and $77.2 million in legal collections from customers with an ability to pay their debt, but who refuse attempts to collect.

Cash Collection Source ($ in thousands) Q12013 Q42012 Q32012 Q22012 Q12012
Call Center & Other Collections $ 89,037 $ 72,624 $ 72,394 $ 73,582 $ 79,805
External Legal Collections 47,910 41,521 39,913 41,464 34,852
Internal Legal Collections 29,283 23,968 25,650 25,361 23,345
Bankruptcy Court Trustee Collections 109,233 91,098 91,095 92,018 79,994
Total Cash Collections $ 275,463 $ 229,211 $ 229,052 $ 232,425 $ 217,996

  • In Q1 2013, principal amortization of finance receivables was $120.7 million, or 43.8% of cash collections. This compares with $93.8 million, or 43.0% of cash collections, recorded in the year-earlier quarter. Principal amortization includes net allowance charges of $2.2 million recorded against certain pools of finance receivables in the quarter, compared with $0.5 million recorded in Q1 2012.

Fee Income

  • Results from PRA's fee-based businesses were in line with expectations, generating $14.8 million in fee income in Q1 2013. PRA now owns 81% of Claims Compensation Bureau (CCB), having closed on the purchase of an additional 19% interest during the first quarter. CCB continues to expect substantially higher fee income in 2013 compared to 2012, with a single large case anticipated to generate approximately $6 million or more in fees to PRA during the second or third quarter of the year.

OPERATING EXPENSES AND OPERATING INCOME

  • Q1 2013 operating expenses were $103.7 million, up $7.9 million or 8% from the year-earlier quarter. The increase was due in large part to costs associated with business growth. PRA anticipates legal collection court fees and document expenses will be approximately $23 million in Q2 2013.
  • Q1 2013 operating income was $65.9 million, compared with $44.4 million in Q1 2012, an increase of 48%. The operating margin increased from 31.7% to 38.9%.

PORTFOLIO PURCHASING

  • In Q1 2013, PRA invested $214.9 million in portfolio purchases from U.S and U.K. creditors, compared with $111.4 million in Q1 2012. Receivables purchased during the recently completed quarter were acquired in 91 portfolios from 13 different sellers.

Finance Receivables Portfolio Acquisitions ($ in thousands) Q12013 Q42012 Q32012 Q22012 Q12012
Core Customer Debt $ 128,338 $ 88,107 $ 61,684 $ 71,599 $ 54,525
Bankruptcy Court Claims, U.S. 86,595 111,001 41,277 53,460 56,892
Total Portfolio Acquisitions $ 214,933 $ 199,108 $ 102,961 $ 125,059 $ 111,417

BALANCE SHEET

  • Cash balances were $39.1 million at March 31, 2013, compared with $32.7 million at December 31, 2012 and $28.1 million at March 31, 2012.
  • Borrowings totaled $371.2 million at March 31, 2013, and consisted of $199.2 million in long-term debt and $172.0 million in revolving credit. Total borrowings were $327.5 million at December 31, 2012 and $265.9 million at March 31, 2012.
  • Net deferred tax liabilities were $185.8 million at March 31, 2013, compared with $185.3 million at December 31, 2012 and $194.3 million at March 31, 2012.
  • Stockholders' equity increased from $708.4 million at year-end 2012 to $751.0 million at March 31, 2013. Stockholders' equity was $620.7 million at March 31, 2012.

Conference Call Information

PRA will hold a conference call today with investors at 5:30 p.m. ET to discuss its Q1 2013 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 35708302. A replay will be available approximately one hour after the call ends and will remain available until May 7, 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 35708302. Investors also may listen to the conference call via webcast, both live and archived, at http://ir.PortfolioRecovery.com/events.cfm.

About PRA

As a leader in the U.S. debt buying industry, Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) 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. 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 has been annually ranked as one of Forbes' 100 Best Small Companies in America since 2007, advancing to the Top 25 in 2012. The company also was recognized last year as one of Fortune's 100 Fastest-Growing Companies in the U.S. For more information, visit www.PortfolioRecovery.com.

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
Ended Ended
March 31, March 31,
2013 2012
Revenues:
Income recognized on finance receivables, net $ 154,791 $ 124,226
Fee income 14,768 15,920
Total revenues 169,559 140,146
Operating expenses:
Compensation and employee services 44,997 39,694
Legal collection fees 10,529 7,617
Legal collection costs 20,501 23,669
Agent fees 1,609 1,627
Outside fees and services 7,447 5,860
Communications 8,961 8,253
Rent and occupancy 1,687 1,611
Depreciation and amortization 3,366 3,656
Other operating expenses 4,575 3,738
Total operating expenses 103,672 95,725
Income from operations 65,887 44,421
Other income and (expense):
Interest income -- 1
Interest expense (2,689) (2,653)
Income before income taxes 63,198 41,769
Provision for income taxes 24,681 16,580
Net income $ 38,517 $ 25,189
Adjustment for net loss attributable to redeemable noncontrolling interest 83 273
Net income attributable to Portfolio Recovery Associates, Inc. $ 38,600 $ 25,462
Net income per common share attributable to Portfolio Recovery Associates, Inc.:
Basic $ 2.28 $ 1.48
Diluted $ 2.26 $ 1.47
Weighted average number of shares outstanding:
Basic 16,934 17,196
Diluted 17,091 17,267
Portfolio Recovery Associates, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
March 31, December 31,
ASSETS 2013 2012
Cash and cash equivalents $ 39,111 $ 32,687
Finance receivables, net 1,169,747 1,078,951
Accounts receivable, net 9,234 10,486
Property and equipment, net 25,470 25,312
Goodwill 106,912 109,488
Intangible assets, net 18,550 20,364
Other assets 13,715 11,668
Total assets $ 1,382,739 $ 1,288,956
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 12,590 $ 12,155
Accrued expenses and other liabilities 20,283 18,953
Income taxes payable 22,349 3,125
Accrued payroll and bonuses 9,260 12,804
Net deferred tax liability 185,772 185,277
Line of credit 172,000 127,000
Long-term debt 199,159 200,542
Total liabilities 621,413 559,856
Redeemable noncontrolling Interest 10,336 20,673
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, 16,959 issued and outstanding shares at March 31, 2013, and 16,909 issued and outstanding shares at December 31, 2012 170 169
Additional paid-in capital 159,596 151,216
Retained earnings 592,791 554,191
Accumulated other comprehensive (loss)/income (1,567) 2,851
Total stockholders' equity 750,990 708,427
Total liabilities and equity $ 1,382,739 $ 1,288,956
Portfolio Recovery Associates, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Three Months Three Months
Ended Ended
March 31, March 31,
2013 2012
Cash flows from operating activities:
Net income $ 38,517 $ 25,189
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of share-based compensation 2,983 2,347
Depreciation and amortization 3,366 3,656
Deferred tax expense 529 403
Changes in operating assets and liabilities:
Other assets (2,070) 711
Accounts receivable 1,149 2,922
Accounts payable 588 (3,687)
Income taxes 19,088 1,118
Accrued expenses (2,503) (3,419)
Accrued payroll and bonuses (3,537) (9,181)
Net cash provided by operating activities 58,110 20,059
Cash flows from investing activities:
Purchases of property and equipment (2,463) (1,152)
Acquisition of finance receivables, net of buybacks (212,389) (108,176)
Collections applied to principal on finance receivables 120,671 93,770
Business acquisitions, net of cash acquired -- (48,653)
Net cash used in investing activities (94,181) (64,211)
Cash flows from financing activities:
Income tax benefit from share-based compensation 2,207 1,440
Proceeds from line of credit 95,000 95,000
Principal payments on line of credit (50,000) (50,000)
Repurchases of common stock (1,912) (2,081)
Purchase of portion of noncontrolling interest (1,150) --
Distributions paid to noncontrolling interest (51) --
Principal payments on long-term debt (1,384) (310)
Net cash provided by financing activities 42,710 44,049
Effect of exchange rate on cash (215) 1,474
Net increase in cash and cash equivalents 6,424 1,371
Cash and cash equivalents, beginning of year 32,687 26,697
Cash and cash equivalents, end of period $ 39,111 $ 28,068
Supplemental disclosure of cash flow information:
Cash paid for interest $ 2,656 $ 2,557
Cash paid for income taxes 2,866 12,497
Noncash investing and financing activities:
Adjustment of the noncontrolling interest measurement amount $ (60) $ (1,225)
Distributions payable relating to noncontrolling interest 2 --
Employee stock relinquished for payment of taxes (4,002) (2,066)
Purchase Price Multiples at March 31, 2013, 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 $ 10,228 $ -- $ 10,189 $ 39 332%
1997 7,685 25,569 -- 25,447 122 333%
1998 11,089 37,600 -- 37,224 376 339%
1999 18,898 69,926 -- 69,012 914 370%
2000 25,020 118,185 -- 115,739 2,446 472%
2001 33,481 178,140 -- 174,230 3,910 532%
2002 42,325 202,393 -- 196,092 6,301 478%
2003 61,448 272,718 -- 261,489 11,229 444%
2004 59,176 206,023 -- 195,148 10,875 348%
2005 143,168 317,055 7,470 304,195 12,860 221%
2006 107,673 215,887 7,665 202,391 13,496 201%
2007 258,397 509,239 27,384 458,571 50,668 197%
2008 275,157 521,136 44,184 444,740 76,396 189%
2009 281,443 860,202 62,846 638,313 221,889 306%
2010 358,122 968,637 121,384 594,480 374,157 270%
2011 394,145 900,943 226,888 380,980 519,963 229%
2012 515,690 935,365 450,434 144,714 790,651 181%
2013 213,740 386,529 209,537 10,656 375,873 181%
Total $ 2,809,737 $ 6,735,775 $ 1,157,792 $ 4,263,610 $ 2,472,165 240%
Purchase Price Multiples at March 31, 2013, 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 14,497 -- 14,422 75 194%
2005 29,301 43,631 53 43,524 107 149%
2006 17,630 31,623 103 31,280 343 179%
2007 78,544 104,998 430 103,337 1,661 134%
2008 108,604 170,787 10,837 157,158 13,629 157%
2009 156,050 448,290 37,568 332,950 115,340 287%
2010 209,215 486,660 77,060 299,758 186,902 233%
2011 182,133 290,759 128,778 100,400 190,359 160%
2012 256,209 345,435 233,316 42,118 303,317 135%
2013 86,595 118,629 82,732 5,842 112,787 137%
Total $ 1,131,749 $ 2,055,309 $ 570,877 $ 1,130,789 $ 924,520 182%
Purchase Price Multiples at March 31, 2013, 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 $ 10,228 $ -- $ 10,189 $ 39 332%
1997 7,685 25,569 -- 25,447 122 333%
1998 11,089 37,600 -- 37,224 376 339%
1999 18,898 69,926 -- 69,012 914 370%
2000 25,020 118,185 -- 115,739 2,446 472%
2001 33,481 178,140 -- 174,230 3,910 532%
2002 42,325 202,393 -- 196,092 6,301 478%
2003 61,448 272,718 -- 261,489 11,229 444%
2004 51,708 191,526 -- 180,726 10,800 370%
2005 113,867 273,424 7,417 260,671 12,753 240%
2006 90,043 184,264 7,562 171,111 13,153 205%
2007 179,853 404,241 26,954 355,234 49,007 225%
2008 166,553 350,349 33,347 287,582 62,767 210%
2009 125,393 411,912 25,278 305,363 106,549 328%
2010 148,907 481,977 44,324 294,722 187,255 324%
2011 212,012 610,184 98,110 280,580 329,604 288%
2012 259,481 589,930 217,118 102,596 487,334 227%
2013 127,145 267,900 126,805 4,814 263,086 211%
Total $ 1,677,988 $ 4,680,466 $ 586,915 $ 3,132,821 $ 1,547,645 279%
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31, %
2013 2012 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 154,791 $ 124,226 25%
Fee income 14,768 15,920 -7%
Total revenues 169,559 140,146 21%
Operating expenses 103,672 95,725 8%
Income from operations 65,887 44,421 48%
Net interest expense 2,689 2,652 1%
Net income 38,517 25,189 53%
Net income attributable to Portfolio Recovery Associates, Inc. 38,600 25,462 52%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 39,111 $ 28,068 39%
Finance receivables, net 1,167,747 945,242 24%
Goodwill and intangible assets, net 125,462 124,659 1%
Total assets 1,382,739 1,142,026 21%
Line of credit and long-term debt 371,159 265,936 40%
Total liabilities 621,413 502,531 24%
Total equity 750,990 620,712 21%
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 275,463 $ 217,996 26%
Principal amortization without allowance charges 118,498 93,276 27%
Principal amortization with allowance charges 120,671 93,770 29%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 43.8% 43.0% 2%
Excluding fully amortized pools 45.2% 44.8% 1%
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)
Balance at period-end $ 95,296 $ 87,065 9%
Allowance charge 2,173 494 340%
Allowance charge to period-end net finance receivables 0.19% 0.05% 256%
Allowance charge to net finance receivable income 1.40% 0.40% 253%
Allowance charge to cash collections 0.79% 0.23% 248%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - core $ 126,951 $ 52,104 144%
Face value - core 1,398,960 972,268 44%
Purchase price - bankruptcy 86,595 56,892 52%
Face value - bankruptcy 436,508 368,447 18%
Purchase price - UK 1,387 2,421 -43%
Face value - UK 18,570 115,351 -84%
Purchase price - total 214,933 111,417 93%
Face value - total 1,854,038 1,456,066 27%
Number of portfolios - total 91 91 0%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - core $ 1,562,384 $ 1,236,712 26%
Estimated remaining collections - bankruptcy 924,519 796,161 16%
Estimated remaining collections - total 2,486,903 2,032,873 22%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 2.26 $ 1.47 54%
Weighted average number of shares outstanding - diluted 17,091 17,267 -1%
Shares repurchased 16 31 100%
Average price paid per share repurchased (including acquisitions costs) $ 118.03 $ 68.02 100%
Closing market price $ 126.92 $ 71.72 77%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 21.1% 16.7% 26%
Return on revenue (2) 22.7% 18.0% 26%
Operating margin (3) 38.9% 31.7% 23%
Operating expense to cash receipts (4) 35.7% 40.9% -13%
Debt to equity (5) 49.4% 42.8% 15%
Number of collectors 2,159 1,934 12%
Number of full-time equivalent employees 3,250 3,014 8%
Cash receipts (4) $ 290,231 $ 233,916 24%
Line of credit - unused portion at period end 228,000 142,500 60%
(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 income from operations divided by total revenues
(4) "Cash receipts" is defined as cash collections plus fee income
(5) For purposes of this ratio, "debt" equals the line of credit balance plus long-term debt
FINANCIAL HIGHLIGHTS
For the Quarter Ended
March 31 December 31 September 30 June 30 March 31
2013 2012 2012 2012 2012
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 154,791 $ 138,068 $ 135,754 $ 132,587 $ 124,226
Fee income 14,768 16,183 14,765 15,298 15,920
Total revenues 169,559 154,251 150,519 147,885 140,146
Operating expenses 103,672 94,262 93,461 93,289 95,725
Income from operations 65,887 59,989 57,058 54,596 44,421
Net interest expense 2,689 1,816 2,189 2,374 2,652
Net income 38,517 35,732 33,127 32,051 25,189
Net income attributable to Portfolio Recovery Associates, Inc. 38,600 35,802 33,314 32,015 25,462
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 39,111 $ 32,687 $ 31,488 $ 42,621 $ 28,068
Finance receivables, net 1,167,747 1,078,951 973,594 966,508 945,242
Goodwill and intangible assets, net 125,462 129,852 121,623 121,748 124,659
Total assets 1,382,739 1,288,956 1,169,698 1,173,738 1,142,026
Line of credit and long-term debt 371,159 327,542 250,675 292,850 265,936
Total liabilities 621,413 559,856 479,211 520,911 502,531
Total equity 750,990 708,427 670,489 633,446 620,712
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 275,463 $ 229,211 $ 229,053 $ 232,425 $ 217,996
Principal amortization without allowance charges 118,498 88,851 91,736 97,634 93,276
Principal amortization with allowance charges 120,671 91,142 93,299 99,838 93,770
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 43.8% 39.8% 40.7% 43.0% 43.0%
Excluding fully amortized pools 45.2% 40.9% 42.0% 44.4% 44.8%
ALLOWANCE FOR FINANCE RECEIVABLES (dollars in thousands)
Balance at period-end $ 95,296 $ 93,123 $ 90,832 $ 89,269 $ 87,065
Allowance charge 2,173 2,291 1,563 2,204 494
Allowance charge to period-end net finance receivables 0.19% 0.21% 0.16% 0.23% 0.05%
Allowance charge to net finance receivable income 1.40% 1.66% 1.15% 1.66% 0.40%
Allowance charge to cash collections 0.79% 1.00% 0.68% 0.95% 0.23%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - core $ 126,951 $ 85,476 $ 52,703 $ 69,512 $ 52,104
Face value - core 1,398,960 901,512 674,135 1,033,331 972,268
Purchase price - bankruptcy 86,595 111,001 41,277 53,460 56,892
Face value - bankruptcy 436,508 946,927 341,359 448,244 368,447
Purchase price - UK 1,387 2,631 8,981 2,087 2,421
Face value - UK 18,570 59,953 248,667 44,779 115,351
Purchase price - total 214,933 199,108 102,961 125,059 111,417
Face value - total 1,854,038 1,908,392 1,264,161 1,526,354 1,456,066
Number of portfolios - total 91 104 107 114 91
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - core $ 1,562,384 $ 1,410,053 $ 1,346,562 $ 1,315,809 $ 1,236,712
Estimated remaining collections - bankruptcy 924,519 905,136 791,018 802,353 796,161
Estimated remaining collections - total 2,486,903 2,315,189 2,137,580 2,118,162 2,032,873
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 2.26 $ 2.10 $ 1.96 $ 1.87 $ 1.47
Weighted average number of shares outstanding - diluted 17,091 17,072 17,022 17,133 17,267
Shares repurchased 16 0 -- 301 31
Average price paid per share repurchased (including acquisitions costs) $ 118.03 $ 93.02 $ -- $ 68.62 $ 68.02
Closing market price $ 126.92 $ 106.86 $ 104.43 $ 91.26 $ 71.72
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 21.09% 20.64% 20.29% 20.34% 16.70%
Return on revenue (2) 22.72% 23.16% 22.01% 21.67% 17.97%
Operating margin (3) 38.86% 38.89% 37.91% 36.92% 31.70%
Operating expense to cash receipts (4) 35.72% 38.41% 38.33% 37.66% 40.92%
Debt to equity (5) 49.42% 46.24% 37.39% 46.33% 42.84%
Number of collectors 2,159 2,153 1,992 1,952 1,934
Number of full-time equivalent employees 3,250 3,221 3,103 3,032 3,014
Cash receipts (4) $ 290,231 $ 245,394 $ 243,818 $ 247,723 $ 233,916
Line of credit - unused portion at period end 228,000 273,000 214,450 166,450 142,500
(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 income from operations divided by total revenues
(4) "Cash receipts" is defined as cash collections plus fee income
(5) 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

Source:Portfolio Recovery Associates