Debt buyer Portfolio Recovery Associates reported across-the-board records in cash collections, revenue and net income for the second quarter ended June 30.
Cash collections for the quarter totaled $232 million, up 32% from the year-ago quarter. Revenue rose 29% to $148 million from the same quarter a year ago. Net income increased 25% from a year ago to $32 million.
"[We] reported a record quarter for cash collections, revenue and net income, in addition to a record quarter of portfolio acquisitions," said Steve Fredrickson, chairman, president and CEO for the Norfolk, Va.-based company. "It is important to note that we achieved these record results while making planned increases in court costs for legal collections from those who can, but won't pay back their debt. This renewed focus resulted in legal cash collections increasing 54% over second quarter 2011, exceeding our expectations."
PRA in the second quarter paid $123 million for domestic portfolio purchases with a face value of $1.48 billion. The total spent was up 37% from the year-ago quarter.
"Our account representatives, working with customers to pay down their debt, also successfully negotiated more than two million U.S. payments in a single quarter for the first time in the company's history," Fredrickson said.
The company repurchased approximately 301,000 shares of stock in the second quarter. Through June 30, PRA has invested a total of $22.7 million under a $100 million repurchase program. "We continue to monitor market conditions to administer the remaining $77 million," Fredrickson said.