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.
- 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 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.
- 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.
- 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%.
- 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|
- 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.