UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 13, 2013
Portfolio Recovery Associates, Inc
(Exact name of registrant as specified in its charter)
Delaware |
000-50058 |
75-3078675 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
120 Corporate Boulevard, Suite 100, Norfolk, Virginia |
23502 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 888-772-7326
________________________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On February 13, 2013 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated February 13, 2013
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Portfolio Recovery Associates, Inc
(Registrant) |
||
February 13, 2013
(Date) |
/s/ KEVIN P. STEVENSON
Kevin P. Stevenson Executive Vice President & Chief Financial Officer |
Exhibit Index | ||
99.1 | Press release dated February 13, 2013 |
EXHIBIT 99.1
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
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 $908.7 million in 2012, up 29% over 2011. In 2012, we received a record 8 million payments on our debt portfolios. This includes growth in the number of recurring payment plans from customers to eliminate their debt, which provides a low-cost, recurring revenue stream for PRA. This record level of payments places PRA in an excellent position to continue to prosper in 2013 and beyond," Fredrickson said.
FINANCIAL AND OPERATING REVIEW – FOURTH QUARTER 2012
Revenues
Finance Receivables Income and Cash Collections
Cash Collection Source ($ 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 |
Fee Income
Operating Expenses and Income
Balance Sheet and Purchasing
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