PRA Reports First Quarter 2013 Results

PRA Reports First Quarter 2013 Results

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   Q12013    Q42012     Q32012     Q22012     Q12012
($ in thousands)
Call Center & Other      $ 89,037  $ 72,624   $ 72,394   $ 73,582   $ 79,805
Collections
External Legal           47,910    41,521     39,913     41,464     34,852
Collections
Internal Legal           29,283    23,968     25,650     25,361     23,345
Collections
Bankruptcy Court Trustee 109,233   91,098     91,095     92,018     79,994
Collections
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  Q12013     Q42012     Q32012     Q22012     Q12012
($ in thousands)
Core Customer Debt      $128,338 $88,107  $61,684  $71,599  $54,525
Bankruptcy Court        86,595    111,001   41,277    53,460    56,892
Claims, U.S.
Total Portfolio         $214,933 $199,108 $102,961 $125,059 $111,417
Acquisitions
                                                               

                                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 ofFortune's100 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 fornet loss attributable to redeemable   83           273
noncontrolling interest
                                                                
Net income attributable to Portfolio Recovery        $38,600     $25,462
Associates, Inc.
                                                                
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 170         169
31, 2013, and 16,909 issued and outstanding shares at
December 31, 2012
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          120,671      93,770
receivables
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            $(60)       $(1,225)
measurement amount
Distributions payable relating to noncontrolling     2           --
interest
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    Remaining  Collections
                                             Cash                     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     $        $          $1,157,792 $4,263,610 $          240%
          2,809,737 6,735,775                             2,472,165
                                                                
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    Remaining  Collections
                                             Cash                     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     $        $          $570,877   $1,130,789 $924,520  182%
          1,131,749 2,055,309
                                                                
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    Remaining  Collections
                                             Cash                     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     $        $          $586,915   $3,132,821 $          279%
          1,677,988 4,680,466                             1,547,645



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 38,600      25,462      52%
Associates, Inc.
                                                                     
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      118,498     93,276      27%
charges
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    0.19%        0.05%        256%
receivables
Allowance charge to net finance receivable    1.40%        0.40%        253%
income
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 17,091      17,267      -1%
- diluted
Shares repurchased                            16          31          100%
Average price paid per share repurchased      $118.03    $68.02     100%
(including acquisitions costs)
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       $154,791   $138,068   $135,754   $132,587   $124,226
receivables,
net
Fee income    14,768      16,183      14,765      15,298      15,920
Total         169,559     154,251     150,519     147,885     140,146
revenues
Operating     103,672     94,262      93,461      93,289      95,725
expenses
Income from   65,887      59,989      57,058      54,596      44,421
operations
Net interest  2,689       1,816       2,189       2,374       2,652
expense
Net income    38,517      35,732      33,127      32,051      25,189
Net income
attributable
to Portfolio  38,600      35,802      33,314      32,015      25,462
Recovery
Associates,
Inc.
                                                             
PERIOD-END
BALANCES (in                                                  
thousands)
Cash and cash $39,111    $32,687    $31,488    $42,621    $28,068
equivalents
Finance
receivables,  1,167,747   1,078,951   973,594     966,508     945,242
net
Goodwill and
intangible    125,462     129,852     121,623     121,748     124,659
assets, net
Total assets  1,382,739   1,288,956   1,169,698   1,173,738   1,142,026
Line of
credit and    371,159     327,542     250,675     292,850     265,936
long-term
debt
Total         621,413     559,856     479,211     520,911     502,531
liabilities
Total equity  750,990     708,427     670,489     633,446     620,712
                                                             
FINANCE
RECEIVABLE
COLLECTIONS                                                   
(dollars in
thousands)
Cash          $275,463   $229,211   $229,053   $232,425   $217,996
collections
Principal
amortization
without       118,498     88,851      91,736      97,634      93,276
allowance
charges
Principal
amortization
with          120,671     91,142      93,299      99,838      93,770
allowance
charges
Principal
amortization
w/ allowance                                                  
charges as %
of cash
collections:
Including
fully         43.8%        39.8%        40.7%        43.0%        43.0%
amortized
pools
Excluding
fully         45.2%        40.9%        42.0%        44.4%        44.8%
amortized
pools
                                                             
ALLOWANCE FOR
FINANCE
RECEIVABLES                                                   
(dollars in
thousands)
Balance at    $95,296    $93,123    $90,832    $89,269    $87,065
period-end
Allowance     2,173       2,291       1,563       2,204       494
charge
Allowance
charge to
period-end    0.19%        0.21%        0.16%        0.23%        0.05%
net finance
receivables
Allowance
charge to net
finance       1.40%        1.66%        1.15%        1.66%        0.40%
receivable
income
Allowance
charge to     0.79%        1.00%        0.68%        0.95%        0.23%
cash
collections
                                                             
PURCHASES OF
FINANCE
RECEIVABLES                                                   
(dollars in
thousands)
Purchase      $126,951   $85,476    $52,703    $69,512    $52,104
price - core
Face value -  1,398,960   901,512     674,135     1,033,331   972,268
core
Purchase
price -       86,595      111,001     41,277      53,460      56,892
bankruptcy
Face value -  436,508     946,927     341,359     448,244     368,447
bankruptcy
Purchase      1,387       2,631       8,981       2,087       2,421
price - UK
Face value -  18,570      59,953      248,667     44,779      115,351
UK
Purchase      214,933     199,108     102,961     125,059     111,417
price - total
Face value -  1,854,038   1,908,392   1,264,161   1,526,354   1,456,066
total
Number of
portfolios -  91           104          107          114          91
total
                                                             
ESTIMATED
REMAINING
COLLECTIONS                                                   
(in
thousands)
Estimated
remaining     $1,562,384 $1,410,053 $1,346,562 $1,315,809 $1,236,712
collections -
core
Estimated
remaining     924,519     905,136     791,018     802,353     796,161
collections -
bankruptcy
Estimated
remaining     2,486,903   2,315,189   2,137,580   2,118,162   2,032,873
collections -
total
                                                             
SHARE DATA
(share                                                        
amounts in
thousands)
Net income
per common    $2.26      $2.10      $1.96      $1.87      $1.47
share -
diluted
Weighted
average
number of     17,091      17,072      17,022      17,133      17,267
shares
outstanding -
diluted
Shares        16          0           --          301         31
repurchased
Average price
paid per
share
repurchased   $118.03    $93.02     $--       $68.62     $68.02
(including
acquisitions
costs)
Closing       $126.92    $106.86    $104.43    $91.26     $71.72
market price
                                                             
RATIOS AND
OTHER DATA                                                    
(dollars in
thousands)
Return on
average       21.09%       20.64%       20.29%       20.34%       16.70%
equity (1)
Return on     22.72%       23.16%       22.01%       21.67%       17.97%
revenue (2)
Operating     38.86%       38.89%       37.91%       36.92%       31.70%
margin (3)
Operating
expense to    35.72%       38.41%       38.33%       37.66%       40.92%
cash receipts
(4)
Debt to       49.42%       46.24%       37.39%       46.33%       42.84%
equity (5)
Number of     2,159        2,153        1,992        1,952        1,934
collectors
Number of
full-time     3,250        3,221        3,103        3,032        3,014
equivalent
employees
Cash receipts $290,231   $245,394   $243,818   $247,723   $233,916
(4)
Line of
credit -
unused        228,000     273,000     214,450     166,450     142,500
portion at
period end
(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

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