PRA Reports First Quarter 2014 Results

PRA Reports First Quarter 2014 Results

NORFOLK, Va., April 30, 2014 (GLOBE NEWSWIRE) -- Portfolio Recovery
Associates, Inc. (Nasdaq:PRAA), a financial and business services company
operating in the U.S., Canada and U.K., today reported its financial results
for the first quarter 2014.

First Quarter Highlights

  *Cash collections of $313.4 million, up 14% from the first quarter of 2013.
  *Revenues of $193.9 million, up 14%.
  *Net income of $40.8 million, up 6%.
  *$0.81 diluted earnings per share, compared with $0.75 a year ago, up 8%.
    The Company incurred costs of $0.05 per diluted share in connection with
    the Aktiv Kapital acquisition. Excluding those costs, earnings per diluted
    share would have been $0.86.
  *18.2% return on average equity, annualized.
  *$152.7 million in portfolio acquisitions.

"PRA is pleased to announce that first quarter collections, revenues and net
income were up year-over-year. Our results in the first quarter met our
expectations and we've made good progress toward expanding our debt buying
business throughout Europe with our announced acquisition of Aktiv Kapital. We
are working hard to close the Aktiv acquisition along with the acquisition of
Pamplona's IVA platform," said Steve Fredrickson, chairman, president and
chief executive officer, PRA.

"While the supply of available debt to acquire in the U.S. remains lower than
in years past, PRA invested $153 million across North America and the U.K."
Fredrickson said.

                                   REVENUES

  *Revenues of $193.9 million in the first quarter, largely driven by cash
    collections, included finance receivables income net of principal
    amortization and allowance charges or reversals. Net finance receivables
    income was $178.0 million, up 15% from $154.8 million in the year-ago
    quarter.

Cash Collections from Finance Receivables

  *Cash collections increased 14% in the first quarter from the year-ago
    quarter to $313.4 million, and included collections from these finance
    receivables sources:

Cash Collection Source  Q12014     Q42013     Q32013     Q22013     Q12013
($ in thousands)
Call Center and Other   $ 97,736   $ 84,375   $89,512   $90,229  $89,037
Collections
External Legal          50,990    46,066    48,274    50,131    47,910
Collections
Internal Legal          43,939    34,101    33,288    30,365    29,283
Collections
Bankruptcy Court        120,702   114,384   120,577   125,672   109,233
Trustee Payments
Total Cash Collections  $313,367 $278,926 $291,651 $296,397 $275,463

  *Principal amortization of finance receivables in the first quarter was
    $135.4 million or 43.2% of cash collections, compared with 43.8% in the
    year-ago quarter. Principal amortization included a net allowance reversal
    of $2.0 million recorded against certain pools of finance receivables in
    the quarter, compared with a net allowance charge of $2.2 million recorded
    in the year-ago quarter. 

Fee Income

  *Revenues in the first quarter also included income from PRA's fee-based
    businesses of $15.9 million, compared with $14.8 million in the year-ago
    quarter. 

                        EXPENSES AND OPERATING INCOME

  *Operating expenses were $122.3 million in the first quarter of 2014,
    compared with $103.7 million a year ago, an increase of 18%.In
    association with the Company's legal collection strategy, external legal
    collection expenses (attorney's fees and court costs) increased $6.3
    million from the year-ago quarter.The Company also incurred approximately
    $4.4 million of expenses during the quarter related to its pending
    acquisition of Aktiv Kapital.The Company anticipates approximately $10
    million in expenses related to the acquisition of Aktiv Kapital in the
    second quarter.
    
  *Operating income increased 9% to $71.6 million, compared with $65.9
    million in the year-ago quarter.The operating margin was 36.9% in the
    first quarter of 2014.
    
  *The provision for income taxes was $25.9 million in the first quarter, up
    5% from the year-ago quarter.PRA's provision for income taxes was 38.8%
    of income before taxes in the first quarter, compared with 39.1% in the
    year-ago quarter.

                            PORTFOLIO ACQUISITIONS

  *PRA invested $152.7 million in new finance receivables from North American
    and U.K. creditors in the first quarter of 2014, compared with $214.9
    million in the year-ago quarter. Receivables purchased were acquired in
    104 portfolios from 14 different sellers.

                                                               
Portfolio Purchase       Q12014     Q42013    Q32013     Q22013     Q12013
Source($ in thousands)
Core Customer Debt       $80,711  $67,522 $100,081 $118,195 $128,338
Bankruptcy Court Claims  72,003    31,987   41,794    82,273    86,595
Total Portfolio          $152,714 $99,509 $141,875 $200,468 $214,933
Purchases

  *Core customer debt purchased in the first quarter included $79.1 million
    in North American accounts and $1.6 million in U.K. accounts.

                                BALANCE SHEET

  *Borrowings totaled $450.3 million at March 31, 2014, and consisted of
    $257.8 million in convertible senior notes and $192.5 million in other
    long-term debt.Total borrowings were $371.2 million at March 31,
    2013.Remaining borrowing availability, subject to normal borrowing and
    collateral provisions, under PRA's credit facility was $435.5 million at
    March 31, 2014.On April 1, 2014, the Company increased the availability
    of its credit facility to $650 million, all of which was available to be
    drawn.
    
  *Cash and cash equivalents were $191.8 million at March 31, 2014, compared
    with $39.1 million at March 31, 2013.
    
  *Net deferred tax liabilities were $220.9 million at March 31, 2014,
    compared with $185.8 million a year ago.
    
  *Stockholders' equity increased to $910.2 million at March 31, 2014, from
    $751.0 million at March 31, 2013.

Conference Call Information

PRA will hold a conference call today at 5:30 p.m. ET to discuss results with
institutional investors and stock analysts.A webcast of the call, both live
and archived, will be available at http://ir.PortfolioRecovery.com/events.cfm.
Please access the call by dialing 888-695-7639 in the U.S. or 970-315-0482
outside the U.S. The conference ID is 30835658.A question-and-answer session
will be open only to institutional investors and analysts.A replay of the
call and webcast will be available until May 7, 2014.Call 855-859-2056 in the
U.S. or 404-537-3406 outside the U.S. to hear a replay of the call.The
conference ID is 30835658.

About PRA

As a leader in the U.S. debt buying industry, Portfolio Recovery Associates,
Inc. (PRA) returns capital to client banks and other creditors to help expand
financial services for all consumers. PRA collaborates with customers to
create affordable, realistic repayment plans. PRA also provides a broad range
of collection and recovery services to business and government clients.

In 2013 and 2012, PRA was ranked among Fortune's100 Fastest-Growing Companies
and Forbes'Top 25 Best Small Companies in America.For more information,
please visitwww.PortfolioRecovery.com.

About Forward Looking Statements

Statements made herein which are not historical, including Portfolio Recovery
Associates' (PRA's) or its management's intentions, hopes, beliefs,
expectations, representations, projections, plans or predictions of the
future, including, but not limited to, statements with respect to future
revenue and earnings, and statements with respect to future contributions of
Aktiv Kapital; our ability to satisfy closing conditions or successfully, if
ever, complete the acquisition of Aktiv Kapital; our ability to fully realize
the expected benefits of the acquisition of Aktiv Kapital; the ability of
Aktiv Kapital, or of any of PRA's subsidiaries, to contribute to earnings and
future portfolio-purchase opportunities, all of which, 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.These forward-looking statements 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.

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 PRA. Actual events or results may differ materially 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
including but not limited to PRA'sannual 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 PRA's website, which
contain detailed discussion of PRA's business, including risks and
uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue
reliance on such forward-looking statements, which speak only as of
today.Information in this presentation may be superseded by recent
information or statements, which may be disclosed in later press releases,
subsequent filings with the Securities and Exchange Commission or otherwise.
Except as required by law, PRA assumes no obligation topublicly 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
                                                    Ended        Ended
                                                    March 31,    March 31,
                                                    2014         2013
                                                                
Revenues:                                                        
Income recognized on finance receivables, net        $177,970    $154,792
Fee income                                           15,952       14,767
                                                                
Total revenues                                       193,922      169,559
                                                                
Operating expenses:                                              
Compensation and employee services                  51,385       44,997
Legal collection fees                               10,833       10,529
Legal collection costs                              26,533       20,501
Agent fees                                          1,450        1,609
Outside fees and services                           10,791       7,447
Communications                                      9,154        8,079
Rent and occupancy                                  2,147        1,687
Depreciation and amortization                       3,947        3,366
Other operating expenses                            6,092        5,457
                                                                
Total operating expenses                             122,332      103,672
                                                                
Income from operations                               71,590       65,887
                                                                
Other income and (expense):                                      
Interest income                                      1            --
Interest expense                                     (4,860)      (2,689)
                                                                
Income before income taxes                           66,731       63,198
                                                                
Provision for income taxes                           25,891       24,681
                                                                
Net income                                           $40,840     $38,517
                                                                
Adjustment for net loss attributable to redeemable   --           83
noncontrolling interest
                                                                
Net income attributable to Portfolio Recovery        $40,840     $38,600
Associates, Inc.
                                                                
Net income per common share attributable to                      
Portfolio Recovery Associates, Inc.:
Basic                                                $0.82      $0.76
Diluted                                              $0.81      $0.75
                                                                
Weighted average number of shares outstanding:                   
Basic                                                49,929       50,811
Diluted                                              50,363       51,273



Portfolio Recovery Associates, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
                                                                
                                                     March 31,   December 31,
ASSETS                                                2014        2013
                                                                
Cash and cash equivalents                             $191,819   $162,004
Finance receivables, net                              1,253,961   1,239,191
Accounts receivable, net                              11,551      12,359
Income taxes receivable                               1,015       11,710
Property and equipment, net                           35,130      31,541
Net deferred tax asset                                1,369       1,361
Goodwill                                              104,086     103,843
Intangible assets, net                                14,714      15,767
Other assets                                          28,968      23,456
                                                                
Total assets                                          $1,642,613 $1,601,232
                                                                
LIABILITIES AND EQUITY                                           
                                                                
Liabilities:                                                     
Accounts payable                                      $24,199    $14,819
Accrued expenses and other liabilities                28,351      27,655
Accrued compensation                                  8,684       27,431
Net deferred tax liability                            220,883     210,071
Borrowings                                            450,278     451,780
                                                                
Total liabilities                                     732,395     731,756
                                                                
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, 50,060 issued and outstanding shares at March 501         498
31, 2014, and 49,840 issued and outstanding shares at
December 31, 2013
Additional paid-in capital                            134,892     135,441
Retained earnings                                     770,345     729,505
Accumulated other comprehensive income                4,480       4,032
Total stockholders' equity                            910,218     869,476
                                                                
Total liabilities and equity                          $1,642,613 $1,601,232



Portfolio Recovery Associates, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
                                                               
                                                               
                                                               
                                                 Three Months Ended March 31,
                                                 2014           2013
Cash flows from operating activities:                           
Net income                                        $40,840       $38,517
Adjustments to reconcile net income to net cash                 
provided by operating activities:
Amortization of share-based compensation          2,836          2,986
Depreciation and amortization                     3,947          3,366
Amortization of debt discount                     998            --
Deferred tax expense                              10,812         529
Changes in operating assets and liabilities:                    
Other assets                                      (5,496)        (2,070)
Accounts receivable                               821            1,149
Accounts payable                                  9,361          588
Income tax payable/receivable, net                10,695         19,088
Accrued expenses                                  686            (2,503)
Accrued compensation                              (26,245)       (3,537)
                                                               
Net cash provided by operating activities         49,255         58,113
                                                               
Cash flows from investing activities:                           
Purchases of property and equipment               (6,416)        (2,466)
Acquisition of finance receivables, net of        (150,087)      (212,389)
buybacks
Collections applied to principal on finance       135,397        120,671
receivables
                                                               
Net cash used in investing activities             (21,106)       (94,184)
                                                               
Cash flows from financing activities:                           
Income tax benefit from share-based compensation  4,115          2,207
Proceeds from line of credit                      --             95,000
Principal payments on line of credit              --             (50,000)
Repurchases of common stock                       --             (1,912)
Cash paid for noncontrolling interest             --             (1,150)
Distributions paid to noncontrolling interest     --             (51)
Principal payments on long-term debt              (2,500)        (1,384)
                                                               
Net cash provided by financing activities         1,615          42,710
                                                               
Effect of exchange rate on cash                   51             (215)
                                                               
Net increase in cash and cash equivalents         29,815         6,424
                                                               
Cash and cash equivalents, beginning of period    162,004        32,687
                                                               
Cash and cash equivalents, end of period          $191,819      $39,111
                                                               
Supplemental disclosure of cash flow information:               
Cash paid for interest                            $5,731        $2,656
Cash paid for income taxes                        1,868         2,866
                                                               
Noncash investing and financing activities:                     
Adjustment of the redeemable noncontrolling       $--           $(60)
interest measurement amount
Purchase of noncontrolling interest               --           9,162
Distributions payable relating to noncontrolling  --           2
interest
Employee stock relinquished for payment of taxes  (7,498)       (4,002)



FINANCIAL HIGHLIGHTS
                               As of and for the Three Months Ended   
                               March31,                              %
                               2014                2013               Change
EARNINGS (in thousands)                                              
Income recognized on finance    $177,970          $154,792         15%
receivables, net
Fee income                      15,952             14,767            8%
Total revenues                  193,922            169,559           14%
Operating expenses              122,332            103,672           18%
Income from operations          71,590             65,887            9%
Net interest expense            4,859              2,689             81%
Net income                      40,840             38,517            6%
Net income attributable to
Portfolio Recovery Associates,  40,840             38,600            6%
Inc.
                                                                    
PERIOD-END BALANCES (in                                              
thousands)
Cash and cash equivalents       $191,819          $39,111          390%
Finance receivables, net        1,253,961          1,169,747         7%
Goodwill and intangible assets, 118,800            125,462           -5%
net
Total assets                    1,642,613          1,382,739         19%
Borrowings                      450,278            371,159           21%
Total liabilities               732,395            621,413           18%
Total equity                    910,218            750,990           21%
                                                                    
FINANCE RECEIVABLE COLLECTIONS                                       
(dollars in thousands)
Cash collections                $313,367          $275,463         14%
Cash collections on fully       16,516             6,345             160%
amortized pools
Principal amortization without  137,350            118,498           16%
allowance charges
Principal amortization with     135,397            120,671           12%
allowance charges
Principal amortization w/
allowance charges as % of cash                                       
collections:
Including fully amortized pools 43.2%               43.8%              -1%
Excluding fully amortized pools 45.6%               44.8%              2%
                                                                    
ALLOWANCE FOR FINANCE
RECEIVABLES (dollars in                                              
thousands)
Allowance (reversal)/charge     (1,953)            2,173             -190%
Allowance (reversal)/charge to
period-end net finance          -0.2%               0.2%               -184%
receivables
Allowance (reversal)/charge to  -1.1%               1.4%               -178%
net finance receivable income
Allowance (reversal)/charge to  -0.6%               0.8%               -179%
cash collections
                                                                    
PURCHASES OF FINANCE
RECEIVABLES (dollars in                                              
thousands)
Purchase price - core           $79,085           $126,951         -38%
Face value - core               837,036            1,398,960         -40%
Purchase price - bankruptcy     65,501             86,595            -24%
Face value - bankruptcy         557,220            436,508           28%
Purchase price - other          8,128              1,387             486%
Face value - other              519,118            18,570            2695%
Purchase price - total          152,714            214,933           -29%
Face value - total              1,913,374          1,854,038         3%
Number of portfolios - total    104                 91                 14%
                                                                    
ESTIMATED REMAINING COLLECTIONS                                      
(in thousands)
Estimated remaining collections $1,891,511        $1,547,644       22%
- core
Estimated remaining collections 788,774            924,520           -15%
- bankruptcy
Estimated remaining collections 24,439             14,739            66%
- other
Estimated remaining collections 2,704,724          2,486,903         9%
- total
                                                                    
SHARE DATA-ADJUSTED (7) (share                                       
amounts in thousands)
Net income per common share -   $0.81             $0.75            8%
diluted
Weighted average number of      50,363             51,273            -2%
shares outstanding - diluted
Shares repurchased              --                 48                -100%
Average price paid per share
repurchased (including          $--              $39.34           -100%
acquisitions costs)
Closing market price            $57.86            $42.31           37%
                                                                    
RATIOS AND OTHER DATA (dollars                                       
in thousands)
Return on average equity (1)    18.2%               21.1%              -14%
Return on revenue (2)           21.1%               22.7%              -7%
Return on average assets (3)    10.0%               11.3%              -12%
Operating margin (4)            36.9%               38.9%              -5%
Operating expense to cash       37.1%               35.7%              4%
receipts (5)
Debt to equity (6)              49.5%               49.4%              0%
Number of collectors            2,379               2,159              10%
Number of full-time equivalent  3,621               3,250              11%
employees
Cash receipts (5)               $329,319          $290,230         13%
Line of credit - unused portion 435,500            228,000           91%
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 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 borrowings
(7) All per share data has been adjusted for a 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



FINANCIAL HIGHLIGHTS
                 For the Quarter Ended
                 March 31     December 31  September 30 June 30      March 31
                 2014         2013         2013         2013         2013
EARNINGS (in                                                      
thousands)
Income recognized
on finance        $177,970   $168,728   $171,456   $168,570   $154,792
receivables, net
Fee income        15,952      16,125      26,306      14,391      14,767
Total revenues    193,922     184,853     197,762     182,961     169,559
Operating         122,332     106,503     118,294     109,135     103,672
expenses
Income from       71,590      78,350      79,468      73,826      65,887
operations
Net interest      4,859       4,860       3,995       2,923       2,689
expense
Net income        40,840      45,777      49,211      43,414      38,517
Net income
attributable to
Portfolio         40,840      45,777      47,338      43,599      38,600
Recovery
Associates, Inc.
                                                                 
PERIOD-END
BALANCES (in                                                      
thousands)
Cash and cash     $191,819   $162,004   $108,705   $43,459    $39,111
equivalents
Finance           1,253,961   1,239,191   1,256,822   1,236,859   1,169,747
receivables, net
Goodwill and
intangible        118,800     119,610     119,636     124,349     125,462
assets, net
Total assets      1,642,613   1,601,232   1,547,985   1,457,246   1,382,739
Borrowings        450,278     451,780     452,229     413,774     371,159
Total liabilities 732,395     731,756     721,001     655,012     621,413
Total equity      910,218     869,476     816,647     791,898     750,990
                                                                 
FINANCE
RECEIVABLE
COLLECTIONS                                                       
(dollars in
thousands)
Cash collections  $313,367   $278,926   $291,651   $296,397   $275,463
Cash collections
on fully          16,516      9,801       8,762       10,612      6,345
amortized pools
Principal
amortization      137,350     110,626     122,776     129,012     118,498
without allowance
charges
Principal
amortization with 135,397     110,197     120,195     127,827     120,671
allowance charges
Principal
amortization w/
allowance charges                                                 
as % of cash
collections:
Including fully   43.2%        39.5%        41.2%        43.1%        43.8%
amortized pools
Excluding fully   45.6%        40.9%        42.5%        44.7%        44.8%
amortized pools
                                                                 
ALLOWANCE FOR
FINANCE
RECEIVABLES                                                       
(dollars in
thousands)
Allowance         (1,953)     (429)       (2,581)     (1,185)     2,173
(reversal)/charge
Allowance
(reversal)/charge
to period-end net -0.2%        0.0%         -0.2%        -0.1%        0.2%
finance
receivables
Allowance
(reversal)/charge -1.1%        -0.3%        -1.5%        -0.7%        1.4%
to net finance
receivable income
Allowance
(reversal)/charge -0.6%        -0.2%        -0.9%        -0.4%        0.8%
to cash
collections
                                                                 
PURCHASES OF
FINANCE
RECEIVABLES                                                       
(dollars in
thousands)
Purchase price -  $79,085    $65,759    $89,044    $113,314   $126,951
core
Face value - core 837,036     774,543     1,352,877   1,178,229   1,398,960
Purchase price -  65,501      31,987      41,794      82,273      86,595
bankruptcy
Face value -      557,220     235,064     215,957     1,926,515   436,508
bankruptcy
Purchase price -  8,128       1,763       11,037      4,881       1,387
other
Face value -      519,118     22,493      218,528     81,852      18,570
other
Purchase price -  152,714     99,509      141,875     200,468     214,933
total
Face value -      1,913,374   1,032,100   1,787,362   3,186,596   1,854,038
total
Number of
portfolios -      104          83           79           94           91
total
                                                                 
ESTIMATED
REMAINING                                                         
COLLECTIONS (in
thousands)
Estimated
remaining         $1,891,511 $1,824,132 $1,762,369 $1,694,262 $1,547,644
collections -
core
Estimated
remaining         788,774     822,988     877,722     925,223     924,520
collections -
bankruptcy
Estimated
remaining         24,439      22,150      32,272      16,744      14,739
collections -
other
Estimated
remaining         2,704,724   2,669,270   2,672,363   2,636,229   2,486,903
collections -
total
                                                                 
SHARE
DATA-ADJUSTED (7)                                                 
(share amounts in
thousands)
Net income per
common share -    $0.81      $0.91      $0.93      $0.85      $0.75
diluted
Weighted average
number of shares  50,363      50,375      50,660      51,183      51,273
outstanding -
diluted
Shares            --          --          989         166         48
repurchased
Average price
paid per share
repurchased       $--       $--       $50.55     $39.82     $39.34
(including
acquisitions
costs)
Closing market    $57.86     $52.84     $59.93     $51.21     $42.31
price
                                                                 
RATIOS AND OTHER
DATA (dollars in                                                  
thousands)
Return on average 18.2%        21.5%        23.5%        22.5%        21.1%
equity (1)
Return on revenue 21.1%        24.8%        24.9%        23.7%        22.7%
(2)
Return on average 10.0%        11.5%        12.5%        12.1%        11.3%
assets (3)
Operating margin  36.9%        42.4%        40.2%        40.4%        38.9%
(4)
Operating expense
to cash receipts  37.1%        36.1%        37.2%        35.1%        35.7%
(5)
Debt to equity    49.5%        52.0%        55.4%        52.3%        49.4%
(6)
Number of         2,379        2,313        2,054        2,190        2,159
collectors
Number of
full-time         3,621        3,543        3,223        3,362        3,250
equivalent
employees
Cash receipts (5) $329,319   $295,051   $317,957   $310,788   $290,230
Line of credit -
unused portion at 435,500     435,500     435,500     184,000     228,000
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 borrowings
(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


Summary Portfolio Data at March 31, 2014, 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     $10,227    $--       $10,211    $16        332%
1997      7,685       25,600      --         25,521      79          333%
1998      11,089      37,581      --         37,384      197         339%
1999      18,898      69,836      --         69,433      403         370%
2000      25,020      118,678     --         116,918     1,760       474%
2001      33,481      178,936     --         176,364     2,572       534%
2002      42,325      203,979     --         199,228     4,751       482%
2003      61,447      273,719     --         266,348     7,371       445%
2004      59,176      206,294     --         199,213     7,081       349%
2005      143,167     328,076     5,725       313,029     15,047      229%
2006      107,667     222,758     5,878       210,205     12,553      207%
2007      258,367     526,977     19,091      484,621     42,356      204%
2008      275,121     533,621     24,564      480,864     52,757      194%
2009      281,333     912,530     22,742      776,617     135,913     324%
2010      357,810     1,048,010   68,117      786,876     261,134     293%
2011      392,929     1,018,831   142,431     606,679     412,152     259%
2012      508,683     1,018,297   299,429     419,298     598,999     200%
2013      627,917     1,133,180   508,564     235,921     897,259     180%
2014      144,899     238,052     138,336     10,167      227,885     164%
Total     $3,360,094 $8,105,182 $1,234,877 $5,424,897 $2,680,285 241%
                                                                     
Summary Portfolio Data at March 31, 2014, 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       14,580      --         14,520      60          195%
2005      29,301      43,774      16          43,673      101         149%
2006      17,627      31,957      47          31,659      298         181%
2007      78,526      106,177     221         104,337     1,840       135%
2008      108,586     168,841     1,814       164,846     3,995       155%
2009      156,030     471,250     6,453       425,189     46,061      302%
2010      209,164     519,964     37,920      417,853     102,111     249%
2011      181,897     310,097     77,312      185,643     124,454     170%
2012      252,383     347,328     156,771     145,384     201,944     138%
2013      234,193     304,089     184,899     71,823      232,266     130%
2014      65,501      81,666      60,192      6,022       75,644      125%
Total     $1,340,676 $2,399,723 $525,645   $1,610,949 $788,774   179%
                                                                     
Summary Portfolio Data at March 31, 2014, 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     $10,227    $--       $10,211    $16        332%
1997      7,685       25,600      --         25,521      79          333%
1998      11,089      37,581      --         37,384      197         339%
1999      18,898      69,836      --         69,433      403         370%
2000      25,020      118,678     --         116,918     1,760       474%
2001      33,481      178,936     --         176,364     2,572       534%
2002      42,325      203,979     --         199,228     4,751       482%
2003      61,447      273,719     --         266,348     7,371       445%
2004      51,708      191,714     --         184,693     7,021       371%
2005      113,866     284,302     5,709       269,356     14,946      250%
2006      90,040      190,801     5,831       178,546     12,255      212%
2007      179,841     420,800     18,870      380,284     40,516      234%
2008      166,535     364,780     22,750      316,018     48,762      219%
2009      125,303     441,280     16,289      351,428     89,852      352%
2010      148,646     528,046     30,197      369,023     159,023     355%
2011      211,032     708,734     65,119      421,036     287,698     336%
2012      256,300     670,969     142,658     273,914     397,055     262%
2013      393,724     829,091     323,665     164,098     664,993     211%
2014      79,398      156,386     78,144      4,145       152,241     197%
Total     $2,019,418 $5,705,459 $709,232   $3,813,948 $1,891,511 283%

CONTACT: Investor Contact:
        
         Darby Schoenfeld
         Director of Investor Relations
         Portfolio Recovery Associates, Inc.
         (757) 431-7913
         DCSchoenfeld@PortfolioRecovery.com
        
         News Media Contact:
        
         Rick Goulart
         Vice President, Corporate Communications
         Portfolio Recovery Associates, Inc.
         (757) 961-3525
         RickGoulart@PortfolioRecovery.com

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