PRA Reports Second Quarter 2013 Results

PRA Reports Second Quarter 2013 Results

NORFOLK, Va., July 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 second quarter 2013 financial results.

Second Quarter Highlights

  *Cash collections of $296 million, up 28% from the second quarter of 2012.
  *Revenues of $183.0 million, up 24%.
  *Net income attributable to PRA of $43.6 million, up 36%.
  *$2.56 diluted EPS, compared with $1.87 a year ago, up 37%, or $0.85
    compared with $0.62, adjusted for a 3:1 stock split by means of a stock
    dividend payable on August 1, 2013.
  *22.5% return on average equity, annualized.
  *$200 million of portfolio purchases.

Net income attributable to PRA for the first six months of 2013 was $82.2
million, or $4.81 per diluted share, compared with $57.5 million, or $3.34 per
diluted share for the first six months of 2012. On June 10, 2013, the
company's board of directors declared a three-for-one stock split by means of
a stock dividend. The new shares are expected to be distributed on or around
August 1, 2013. On a post-stock split basis, diluted earnings per share would
have been $1.60 for the first half of 2013 compared with $1.11 for the first
half of 2012.

Year-to-date 2013 revenues were $352.5 million, compared with $288.0 million
for the first six months of 2012. Cash collections were $571.9 million for the
first six months of 2013, compared with $450.4 million for the first half of
2012.

"PRA's very strong Q2 results are exceptional by any measure, with significant
new investment of $200 million, record revenue and record profitability," said
Steve Fredrickson, chairman, president and chief executive officer, PRA.

"The company continues to succeed by pressing its considerable competitive
advantages, including our underwriting capabilities across multiple asset
classes and account dispositions, our ample access to low cost funding, and
our operational excellence driven by best in class application of analytics
and activity-based ROI discipline," Fredrickson said.

                                   REVENUES

  *Revenues were $183.0 million for the quarter, up 24% from a year ago, and
    were comprised of $168.6 million in net finance receivables income and
    $14.4 million in fee income.

Finance Receivables Income and Cash Collections

  *Net finance receivables income increased 27% to $168.6 million in Q2 2013
    from $132.6 million in the year-ago period.
    
  *Cash collections from finance receivables increased 28% over Q2 2012 to
    $296 million, and were comprised of bankruptcy court trustee payments of
    $125.7 million, $90.2 million in call center and other collections, and
    $80.5 million in legal collections from customers with an ability to pay
    their debt, but who refuse attempts to collect.

                                                               
Cash Collection Source  Q22013     Q12013     Q42012     Q32012     Q22012
($ in thousands)
Call Center & Other     $90,229  $89,037  $72,624  $72,394  $73,582
Collections
External Legal          50,131    47,910    41,521    39,913    41,464
Collections
Internal Legal          30,365    29,283    23,968    25,650    25,361
Collections
Bankruptcy Court        125,672   109,233   91,098    91,095    92,018
Trustee Collections
Total Cash Collections  $296,397 $275,463 $229,211 $229,052 $232,425
                                                               

  *In Q2 2013, principal amortization of finance receivables was $127.8
    million, or 43.1% of cash collections. This compares with $99.8 million,
    or 43.0% of cash collections, recorded in the year-earlier quarter.
    Principal amortization includes net allowance reversals of $1.2 million
    recorded against certain pools of finance receivables in the quarter,
    compared with a net allowance charge of $2.2 million recorded in Q2 2012.

Fee Income

  *PRA's fee-based businesses generated $14.4 million in fee income in Q2
    2013, compared with $15.3 million a year ago.

                   OPERATING EXPENSES AND OPERATING INCOME

  *Q2 2013 operating expenses were $109.1 million, up $15.8 million or 17%
    from the year-earlier quarter.
    
  *Q2 2013 operating income was $73.8 million, compared with $54.6 million in
    Q2 2012, an increase of 35%.The operating margin increased from 36.9% to
    40.4%.

                             PORTFOLIO PURCHASING

  *In Q2 2013, PRA invested $200 million in portfolio purchases from U.S and
    U.K. creditors, compared with $125 million in Q2 2012.Receivables
    purchased during the recently completed quarter were acquired in 94
    portfolios from 14 different sellers.The company has invested $717
    million in portfolio purchases over the trailing twelve months.

                                                               
Finance Receivables
Portfolio               Q22013     Q12013     Q42012     Q32012     Q22012
Acquisitions ($ in
thousands)
Core Customer Debt      $118,195 $128,338 $88,107  $61,684  $71,599
Bankruptcy Court        82,273    86,595    111,001   41,277    53,460
Claims, U.S.
Total Portfolio         $200,468 $214,933 $199,108 $102,961 $125,059
Acquisitions

                                                               

  *Core customer purchases were comprised of $113.3 million of U.S. core
    customer accounts and $4.9 million of U.K. core customer accounts.

                                BALANCE SHEET

  *Cash balances were $43.5 million at June 30, 2013, compared with $42.6
    million a year ago.
    
  *Borrowings totaled $413.8 million at June 30, 2013, and consisted of
    $197.8 million in long-term debt and $216.0 million in revolving
    credit.Total borrowings were $292.8 million at June 30, 2012.
    
  *Net deferred tax liabilities were $187.7 million at June 30, 2013,
    compared with $190.6 million a year ago.
    
  *Stockholders' equity increased in Q2 2013 to $791.9 million from $751.0
    million at March 31, 2013.Stockholders' equity was $633.4 million at June
    30, 2012.

Conference Call Information

PRA will hold a conference call today with investors at 5:30 p.m. ET to
discuss its Q2 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
16240403.A replay will be available approximately one hour after the call
ends and will remain available until August 6, 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 16240403.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 PRA's or its
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 PRA's
presentations and web casts.The forward-looking statements in this press
release are based upon management's beliefs, assumptions and expectations of
PRA'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 PRA's filings with the Securities and
Exchange Commission (SEC) 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 SEC and available through PRA'swebsite, which contain a
more detailed discussion of PRA'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 SEC or otherwise. Except
as required by law, PRA assumes no obligation to publicly update or revise its
forward-looking statements contained herein to reflect any change in PRA'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 Six Months Six Months
                              Ended        Ended        Ended      Ended
                              June 30,     June 30,     June 30,   June 30,
                              2013         2012         2013       2012
                                                                
Revenues:                                                        
Income recognized on finance   $168,570    $132,587    $323,362  $256,812
receivables, net
Fee income                     14,391       15,298       29,158     31,218
                                                                
Total revenues                 182,961      147,885      352,520    288,030
                                                                
Operating expenses:                                              
Compensation and employee      48,202       42,479       93,199     82,173
services
Legal collection fees          10,609       8,988        21,138     16,606
Legal collection costs         22,717       18,227       43,218     41,895
Agent fees                     1,280        1,323        2,889      2,951
Outside fees and services      8,634        5,584        16,081     11,444
Communications                 7,560        7,007        16,521     15,260
Rent and occupancy             1,824        1,656        3,511      3,268
Depreciation and amortization  3,534        3,555        6,900      7,210
Other operating expenses       4,775        4,470        9,350      8,206
                                                                
Total operating expenses       109,135      93,289       212,807    189,013
                                                                
Income from operations         73,826       54,596       139,713    99,017
                                                                
Other income and (expense):                                      
Interest income                --           7            --         8
Interest expense               (2,923)      (2,381)      (5,612)    (5,034)
                                                                
Income before income taxes     70,903       52,222       134,101    93,991
                                                                
Provision for income taxes     27,489       20,171       52,170     36,751
                                                                
Net income                     $43,414     $32,051     $81,931   $57,240
                                                                
Adjustment for (loss)/income
attributable to redeemable     (185)        36           (268)      (237)
noncontrolling interest
                                                                
Net income attributable to
Portfolio Recovery Associates, $43,599     $32,015     $82,199   $57,477
Inc.
                                                                
Net income per common share attributable to Portfolio              
Recovery Associates, Inc.:
Basic                          $2.58      $1.88      $4.86    $3.36
Diluted                        $2.56      $1.87      $4.81    $3.34
                                                                
Weighted average number of shares                                 
outstanding:
Basic                          16,917       17,027       16,927     17,111
Diluted                        17,061       17,133       17,076     17,200
                                                                
As adjusted for the three-for-one stock split by means             
of a stock dividend:
Net income per common share attributable to Portfolio              
Recovery Associates, Inc.:
Basic                          $0.86      $0.63      $1.62    $1.12
Diluted                        $0.85      $0.62      $1.60    $1.11
                                                                
Weighted average number of shares                                 
outstanding:
Basic                          50,751       51,081       50,781     51,333
Diluted                        51,183       51,399       51,228     51,600
                                                                

                                                                
Portfolio Recovery Associates, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
                                                                
                                                     June 30,    December 31,
ASSETS                                                2013        2012
                                                                
Cash and cash equivalents                             $43,459    $32,687
Finance receivables, net                              1,236,859   1,078,951
Accounts receivable, net                              10,421      10,486
Income taxes receivable                               2,487       --
Property and equipment, net                           27,278      25,312
Goodwill                                              106,953     109,488
Intangible assets, net                                17,396      20,364
Other assets                                          12,393      11,668
                                                                
Total assets                                          $ 1,457,246 $1,288,956
                                                                
LIABILITIES AND EQUITY                                           
                                                                
Liabilities:                                                     
Accounts payable                                      $9,356     $12,155
Accrued expenses and other liabilities                29,600      18,953
Income taxes payable                                  --          3,125
Accrued payroll and bonuses                           14,552      12,804
Net deferred tax liability                            187,730     185,277
Line of credit                                        216,000     127,000
Long-term debt                                        197,774     200,542
                                                                
Total liabilities                                     655,012     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, 16,910 issued and outstanding shares at June
30, 2013, and 16,909 issued and outstanding shares at
December 31, 2012 or 50,730 and 50,727 issued and     169         169
outstanding shares at June 30, 2013 and December 31,
2012, respectively as adjusted for the 3-for-1 stock
split by means of a stock dividend payable on August
1, 2013
Additional paid-in capital                            156,912     151,216
Retained earnings                                     636,390     554,191
Accumulated other comprehensive (loss)/income         (1,573)     2,851
Total stockholders' equity                            791,898     708,427
                                                                
Total liabilities and equity                          $ 1,457,246 $1,288,956
                                                                

                                                                  
Portfolio Recovery Associates, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
                                                                  
                                                        Six Months Six Months
                                                        Ended      Ended
                                                        June 30,   June 30,
                                                        2013       2012
Cash flows from operating activities:                               
Net income                                               $81,931   $57,240
Adjustments to reconcile net income to net cash provided           
by operating activities:
Amortization of share-based compensation                 6,651      5,576
Depreciation and amortization                            6,900      7,210
Deferred tax expense/(benefit)                           2,488      (3,244)
Changes in operating assets and liabilities:                        
Other assets                                             (1,284)    (121)
Accounts receivable                                      (46)       1,320
Accounts payable                                         (2,633)    (432)
Income taxes                                             (5,748)    (5,850)
Accrued expenses                                         7,313      (3,016)
Accrued payroll and bonuses                              1,757      (4,447)
                                                                  
Net cash provided by operating activities                97,329     54,236
                                                                  
Cash flows from investing activities:                               
Purchases of property and equipment                      (6,639)    (2,952)
Acquisition of finance receivables, net of buybacks      (407,347)  (229,388)
Collections applied to principal on finance receivables  248,498    193,608
Business acquisition, net of cash acquired               --         (48,653)
                                                                  
Net cash used in investing activities                    (165,488)  (87,385)
                                                                  
Cash flows from financing activities:                               
Income tax benefit from share-based compensation         2,659      1,435
Proceeds from line of credit                             217,000    151,000
Principal payments on line of credit                     (128,000)  (79,000)
Repurchases of common stock                              (8,506)    (22,726)
Cash paid for purchase of portion of noncontrolling      (1,150)    --
interest
Distributions paid to noncontrolling interest            (51)       --
Principal payments on long-term debt                     (2,768)    (397)
                                                                  
Net cash provided by financing activities                79,184     50,312
                                                                  
Effect of exchange rate on cash                          (253)      (1,239)
                                                                  
Net increase in cash and cash equivalents                10,772     15,924
                                                                  
Cash and cash equivalents, beginning of year             32,687     26,697
                                                                  
Cash and cash equivalents, end of period                 $43,459   $42,621
                                                                  
Supplemental disclosure of cash flow information:                   
Cash paid for interest                                   $5,581    $5,312
Cash paid for income taxes                               52,809    44,509
                                                                  
Noncash investing and financing activities:                         
Adjustment of the noncontrolling interest measurement    $(245)    $(2,048)
amount
Purchase of noncontrolling interest                      9,162     --
Distributions payable relating to noncontrolling         2         261
interest
Employee stock relinquished for payment of taxes         (4,025)   (2,077)
                                                                  

                                                                
Purchase Price Multiples at June 30, 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  $10,229   $--       $10,194    $35       332%
1997      7,685    25,567     --         25,465      102        333%
1998      11,089   37,679     --         37,279      400        340%
1999      18,898   69,973     --         69,162      811        370%
2000      25,020   118,136    --         116,114     2,022      472%
2001      33,481   178,285    --         174,875     3,410      532%
2002      42,325   202,244    --         197,028     5,216      478%
2003      61,448   273,133    --         262,911     10,222     444%
2004      59,177   206,029    --         196,376     9,653      348%
2005      143,169  317,167    6,150       306,869     10,298     222%
2006      107,673  216,007    6,355       204,867     11,140     201%
2007      258,394  510,832    23,193      466,671     44,161     198%
2008      275,170  524,225    37,427      456,847     67,378     191%
2009      281,455  876,990    51,114      677,819     199,171    312%
2010      358,114  992,860    104,951     649,082     343,778    277%
2011      394,100  933,696    201,449     442,739     490,957    237%
2012      512,678  952,915    406,473     217,979     734,936    186%
2013      406,883  730,475    386,003     44,681      685,794    180%
Total     $        $          $1,223,115 $4,556,958 $          239%
          2,999,839 7,176,442                             2,619,484
                                                                

Purchase Price Multiples at June 30, 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    14,586     --         14,461      125        195%
2005      29,301   43,670     46          43,579      91         149%
2006      17,630   31,699     63          31,391      308        180%
2007      78,542   105,019    214         103,654     1,365      134%
2008      108,602  170,078    7,293       160,701     9,377      157%
2009      156,049  457,691    28,950      358,923     98,768     293%
2010      209,212  500,121    65,248      332,601     167,520    239%
2011      182,101  295,727    115,416     122,328     173,399    162%
2012      253,658  344,392    211,472     69,681      274,711    136%
2013      166,165  218,701    153,147     19,142      199,559    132%
Total     $        $          $581,849   $1,256,461 $925,223  180%
          1,208,728 2,181,684
                                                                

                                                              
Purchase Price Multiples at June 30, 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  $10,229   $--      $10,194    $35       332%
1997     7,685    25,567     --        25,465      102        333%
1998     11,089   37,679     --        37,279      400        340%
1999     18,898   69,973     --        69,162      811        370%
2000     25,020   118,136    --        116,114     2,022      472%
2001     33,481   178,285    --        174,875     3,410      532%
2002     42,325   202,244    --        197,028     5,216      478%
2003     61,448   273,133    --        262,911     10,222     444%
2004     51,709   191,443    --        181,915     9,528      370%
2005     113,868  273,497    6,104      263,290     10,207     240%
2006     90,043   184,308    6,292      173,476     10,832     205%
2007     179,852  405,813    22,979     363,017     42,796     226%
2008     166,568  354,147    30,134     296,146     58,001     213%
2009     125,406  419,299    22,164     318,896     100,403    334%
2010     148,902  492,739    39,703     316,481     176,258    331%
2011     211,999  637,969    86,033     320,411     317,558    301%
2012     259,020  608,523    195,001    148,298     460,225    235%
2013     240,718  511,774    232,856    25,539      486,235    213%
Total    $        $          $641,266  $3,300,497 $          279%
         1,791,111 4,994,758                            1,694,261
                                                              

                                                                       
FINANCIAL HIGHLIGHTS
                 Three Months Ended              Six Months Ended          
                 June 30,                  %      June 30,                  %
                 2013         2012         Change 2013         2012         Change
EARNINGS (in                                                            
thousands)
Income recognized
on finance        $168,570   $132,587   27%    $323,362   $256,812   26%
receivables, net
Fee income        14,391      15,298      -6%    29,158      31,218      -7%
Total revenues    182,961     147,885     24%    352,520     288,030     22%
Operating         109,135     93,289      17%    212,807     189,013     13%
expenses
Income from       73,826      54,596      35%    139,713     99,017      41%
operations
Net interest      2,923       2,374       23%    5,612       5,026       12%
expense
Net income        43,414      32,051      35%    81,931      57,240      43%
Net income
attributable to
Portfolio         43,599      32,015      36%    82,199      57,477      43%
Recovery
Associates, Inc.
                                                                       
PERIOD-END
BALANCES (in                                                            
thousands)
Cash and cash     $43,459    $42,621    2%     $43,459    $42,621    2%
equivalents
Finance           1,236,859   966,508     28%    1,236,859   966,508     28%
receivables, net
Goodwill and
intangible        124,349     121,748     2%     124,349     121,748     2%
assets, net
Total assets      1,457,246   1,173,738   24%    1,457,246   1,173,738   24%
Line of credit
and long-term     413,774     292,849     41%    413,774     292,849     41%
debt
Total liabilities 655,012     520,911     26%    655,012     520,911     26%
Total equity      791,898     633,446     25%    791,898     633,446     25%
                                                                       
FINANCE
RECEIVABLE
COLLECTIONS                                                             
(dollars in
thousands)
Cash collections  $296,397   $232,425   28%    $571,860   $450,420   27%
Principal
amortization      129,012     97,634      32%    247,510     190,910     30%
without allowance
charges
Principal
amortization with 127,827     99,838      28%    248,498     193,608     28%
allowance charges
Principal
amortization w/
allowance charges                                                       
as % of cash
collections:
Including fully  43.1%        43.0%        0%     43.5%        43.0%        1%
amortized pools
Excluding fully  44.7%        44.4%        1%     44.8%        44.6%        0%
amortized pools
                                                                       
ALLOWANCE FOR
FINANCE
RECEIVABLES                                                             
(dollars in
thousands)
Balance at        $94,111    $89,269    5%     $94,111    $89,269    5%
period-end
Allowance         (1,185)     2,204       -154%  988         2,698       -63%
(reversal)/charge
Allowance
(reversal)/charge
to period-end net -0.1%        0.2%         -142%  0.1%         0.3%         -71%
finance
receivables
Allowance
(reversal)/charge -0.7%        1.7%         -142%  0.3%         1.1%         -71%
to net finance
receivable income
Allowance
(reversal)/charge -0.4%        0.9%         -142%  0.2%         0.6%         -71%
to cash
collections
                                                                       
PURCHASES OF
FINANCE
RECEIVABLES                                                             
(dollars in
thousands)
Purchase price -  $113,314   $69,512    63%    $240,265   $121,616   98%
core
Face value - core 1,178,229   1,033,331   14%    2,577,189   2,005,599   28%
Purchase price -  82,273      53,460      54%    168,868     110,352     53%
bankruptcy
Face value -      1,926,515   448,244     330%   2,363,023   816,691     189%
bankruptcy
Purchase price -  4,881       2,087       134%   6,268       4,508       39%
UK
Face value - UK   81,852      44,779      83%    100,422     160,130     -37%
Purchase price -  200,468     125,059     60%    415,401     236,476     76%
total
Face value -      3,186,596   1,526,354   109%   5,040,634   2,982,420   69%
total
Number of
portfolios -      94           114          -18%   185          205          -10%
total
ESTIMATED
REMAINING                                                               
COLLECTIONS (in
thousands)
Estimated
remaining         $1,711,006 $1,315,809 30%    $1,711,006 $1,315,809 30%
collections -
core
Estimated
remaining         925,223     802,353     15%    925,223     802,353     15%
collections -
bankruptcy
Estimated
remaining         2,636,229   2,118,162   24%    2,636,229   2,118,162   24%
collections -
total
                                                                       
SHARE DATA (share
amounts in                                                              
thousands)
Net income per
common share -    $2.56      $1.87      37%    $4.81      $3.34      44%
diluted
Weighted average
number of shares  17,061      17,133      0%     17,076      17,200      -1%
outstanding -
diluted
Shares            55          301         -82%   71          331         -79%
repurchased
Average price
paid per share
repurchased       $119.45    $68.62     74%    $119.13    $68.56     74%
(including
acquisitions
costs)
Closing market    $153.63    $91.26     68%    $153.63    $91.26     68%
price
                                                                       
SHARE
DATA-ADJUSTED (7)                                                       
(share amounts in
thousands)
Net income per
common share -    $0.85      $0.62      37%    $1.60      $1.11      44%
diluted
Weighted average
number of shares  51,183      51,399      0%     51,228      51,600      -1%
outstanding -
diluted
Shares            166         903         -82%   214         994         -79%
repurchased
Average price
paid per share
repurchased       $39.82     $22.87     74%    $39.71     $22.85     74%
(including
acquisitions
costs)
Closing market    $51.21     $30.42     68%    $51.21     $30.42     68%
price
                                                                       
RATIOS AND OTHER
DATA (dollars in                                                        
thousands)
Return on average 22.5%        20.3%        11%    21.8%        18.5%        18%
equity (1)
Return on revenue 23.7%        21.7%        9%     23.2%        19.9%        17%
(2)
Return on average 12.1%        11.1%        9%     11.7%        10.0%        17%
assets (3)
Operating margin  40.4%        36.9%        9%     39.6%        34.4%        15%
(4)
Operating expense
to cash receipts  35.1%        37.7%        -7%    35.4%        39.2%        -10%
(5)
Debt to equity    52.3%        46.2%        13%    52.3%        46.2%        13%
(6)
Number of         2,190        1,952        12%    2,190        1,952        12%
collectors
Number of
full-time         3,362        3,032        11%    3,362        3,032        11%
equivalent
employees
Cash receipts (5) $310,788   $247,723   25%    $601,018   $481,639   25%
Line of credit -
unused portion at 184,000     166,450     11%    184,000     166,450     11%
period end
                                                                       

                                                                 
FINANCIAL HIGHLIGHTS
                 For the Quarter Ended
                 June 30      March 31     December 31  September 30 June 30
                 2013         2013         2012         2012         2012
EARNINGS (in                                                      
thousands)
Income recognized
on finance        $168,570   $154,792   $138,068   $135,754   $132,587
receivables, net
Fee income        14,391      14,767      16,183      14,765      15,298
Total revenues    182,961     169,559     154,251     150,519     147,885
Operating         109,135     103,672     94,262      93,461      93,289
expenses
Income from       73,826      65,887      59,989      57,058      54,596
operations
Net interest      2,923       2,689       1,816       2,189       2,374
expense
Net income        43,414      38,517      35,732      33,127      32,051
Net income
attributable to
Portfolio         43,599      38,600      35,802      33,314      32,015
Recovery
Associates, Inc.
                                                                 
PERIOD-END
BALANCES (in                                                      
thousands)
Cash and cash     $43,459    $39,111    $32,687    $31,488    $42,621
equivalents
Finance           1,236,859   1,169,747   1,078,951   973,594     966,508
receivables, net
Goodwill and
intangible        124,349     125,462     129,852     121,623     121,748
assets, net
Total assets      1,457,246   1,382,739   1,288,956   1,169,698   1,173,738
Line of credit
and long-term     413,774     371,159     327,542     250,674     292,849
debt
Total liabilities 655,012     621,413     559,856     479,211     520,911
Total equity      791,898     750,990     708,427     670,489     633,446
                                                                 
FINANCE
RECEIVABLE
COLLECTIONS                                                       
(dollars in
thousands)
Cash collections  $296,397   $275,463   $229,211   $229,052   $232,425
Principal
amortization      129,012     118,498     88,851      91,736      97,634
without allowance
charges
Principal
amortization with 127,827     120,671     91,142      93,298      99,838
allowance charges
Principal
amortization w/
allowance charges                                                 
as % of cash
collections:
Including fully  43.1%        43.8%        39.8%        40.7%        43.0%
amortized pools
Excluding fully  44.7%        44.8%        40.9%        42.0%        44.4%
amortized pools
                                                                 
ALLOWANCE FOR
FINANCE
RECEIVABLES                                                       
(dollars in
thousands)
Balance at        $94,111    $95,296    $93,123    $90,832    $89,269
period-end
Allowance         (1,185)     2,173       2,291       1,563       2,204
(reversal)/charge
Allowance
(reversal)/charge
to period-end net -0.10%       0.19%        0.21%        0.16%        0.23%
finance
receivables
Allowance
(reversal)/charge -0.70%       1.40%        1.66%        1.15%        1.66%
to net finance
receivable income
Allowance
(reversal)/charge -0.40%       0.79%        1.00%        0.68%        0.95%
to cash
collections
                                                                 
PURCHASES OF
FINANCE
RECEIVABLES                                                       
(dollars in
thousands)
Purchase price -  $113,314   $126,951   $85,476    $52,703    $69,512
core
Face value - core 1,178,229   1,398,960   901,512     674,135     1,033,331
Purchase price -  82,273      86,595      111,001     41,277      53,460
bankruptcy
Face value -      1,926,515   436,508     946,927     341,359     448,244
bankruptcy
Purchase price -  4,881       1,387       2,631       8,981       2,087
UK
Face value - UK   81,852      18,570      59,953      248,667     44,779
Purchase price -  200,468     214,933     199,108     102,961     125,059
total
Face value -      3,186,596   1,854,038   1,908,392   1,264,161   1,526,354
total
Number of
portfolios -      94           91           104          107          114
total
ESTIMATED
REMAINING                                                         
COLLECTIONS (in
thousands)
Estimated
remaining         $1,711,006 $1,562,383 $1,410,053 $1,346,562 $1,315,809
collections -
core
Estimated
remaining         925,223     924,520     905,136     791,018     802,353
collections -
bankruptcy
Estimated
remaining         2,636,229   2,486,903   2,315,189   2,137,580   2,118,162
collections -
total
                                                                 
SHARE DATA (share
amounts in                                                        
thousands)
Net income per
common share -    $2.56      $2.26      $2.10      $1.96      $1.87
diluted
Weighted average
number of shares  17,061      17,091      17,072      17,022      17,133
outstanding -
diluted
Shares            55          16          --          --          301
repurchased
Average price
paid per share
repurchased       $119.45    $118.03    $93.02     $--       $68.62
(including
acquisitions
costs)
Closing market    $153.63    $126.92    $106.86    $104.43    $91.26
price
                                                                 
SHARE
DATA-ADJUSTED (7)                                                 
(share amounts in
thousands)
Net income per
common share -    $0.85      $0.75      $0.70      $0.65      $0.62
diluted
Weighted average
number of shares  51,183      51,273      51,217      51,066      51,399
outstanding -
diluted
Shares            166         48          --          --          903
repurchased
Average price
paid per share
repurchased       $39.82     $39.34     $31.01     $--       $22.87
(including
acquisitions
costs)
Closing market    $51.21     $42.31     $35.62     $34.81     $30.42
price
                                                                 
RATIOS AND OTHER
DATA (dollars in                                                  
thousands)
Return on average 22.5%        21.1%        20.6%        20.3%        20.3%
equity (1)
Return on revenue 23.7%        22.7%        23.2%        22.0%        21.7%
(2)
Return on average 12.1%        11.3%        11.8%        11.4%        11.1%
assets (3)
Operating margin  40.4%        38.9%        38.9%        37.9%        36.9%
(4)
Operating expense
to cash receipts  35.1%        35.7%        38.4%        38.3%        37.7%
(5)
Debt to equity    52.3%        49.4%        46.2%        37.4%        46.3%
(6)
Number of         2,190        2,159        2,153        1,992        1,952
collectors
Number of
full-time         3,362        3,250        3,221        3,103        3,032
equivalent
employees
Cash receipts (5) $310,788   $290,230   $245,394   $243,817   $247,723
Line of credit -
unused portion at 184,000     228,000     273,000     214,450     166,450
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 annualized net income divided by average assets for the period
(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
(7) All per share data has been adjusted to reflect the 3-for-1 stock split by
means of a stock dividend which was declared on June 10, 2013 and payable August
1, 2013 to holders of record as of July 1, 2013
                                                                 

CONTACT: Rick Goulart
         Vice President, Corporate Communications
         757-961-3525
         RickGoulart@PortfolioRecovery.com

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