Debt buyer Portfolio Recovery Associates' shares reached a 52-week high on Friday, with stock trading as high as $76.80. The stock previously had closed at $74.20. At mid-day on Monday, the stock was trading at $76.17.
The Norfolk, Va.-based company purchases, manages and collects portfolios of defaulted consumer receivables, and offers various accounts receivable management and payment processing services.
Last month, the company reported net income of $18.5 million for the quarter ended September 30, an 83% increase from $10.1 million in the same period a year earlier. Total revenue was up 39% from the year-earlier period to a record $95.5 million.
"In the third quarter, we produced record cash collections, record cash receipts and record revenue. At the same time, net income and earnings per share both demonstrated strong growth," says Steven D. Fredrickson, the company's chairman, president and chief executive.
The bulk of the company's business involves the purchase, management and collection of defaulted consumer receivables. It also provides fee-based services, including collateral-location services for credit originators, through PRA Location Services LLC and revenue administration, audit and debt discovery/recovery services for government entities through PRA Government Services LLC and MuniServices LLC.
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