Portfolio Recovery Associates, a Norfolk, Va.-based debt buyer, reported across-the-board gains in third quarter cash collections, earnings and revenues.
Cash collections increased 33% to a record $182.2 million during for the period ended Sept. 30. Call center and other collections rose 24%, external legal collections increased 35%, and purchased bankruptcy collections gained 40%.
Net income reached $25.5 million, up 38% from the year-ago period. Revenues jumped to $114.3 million, a 20% jump attributed to record cash receipts of $193.6 million during the quarter, up 27%, the company reported. Cash receipts include cash collections and revenues from the company's fee-for-service businesses, according to the company.
“Our third-quarter results are indicative of our efforts to drive the top line, identify and improve operational efficiencies, and maintain a strong and flexible capital structure,” said Steven D. Fredrickson, Portfolio Recovery chairman, president and chief executive officer. “The key drivers of our results continue to be strong cash collections from both bankruptcy and core portfolios, supported by an impressive performance at our call centers. We were able to deliver these results despite a weak and volatile economy. Looking ahead, we will continue to focus on strengthening our core business, reducing costs and allocating the necessary resources to support continued growth in our fee-for-service businesses.”
Portfolio Recovery bought 95 portfolios from 12 different sellers during the quarter, spending $122.1 million, up 32% from a year ago, to buy $5.7 billion of face value debt.
