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Portfolio Recovery Associates Inc., a debt purchaser that buys and collects delinquent credit card portfolios, yesterday reported net income of $11.7 million, a 3% increase from net income of $11.4 million in the year-ago period, according to the Norfolk, Va.-based debt buyer.
The company paid $84.7 million to acquire 119 portfolios from 15 different sellers during the quarter. The face value of the purchased accounts totaled $3.38 billion.
"Portfolio Recovery Associates completed the first half of 2009 with another solid quarter, despite the continued impact of a difficult economy on collections," says Steven D. Fredrickson, chairman, president and CEO. "Our collector workforce deserves a great deal of credit for driving record cash collections in this recessionary environment. The company's fee-for-service businesses demonstrated impressive growth in the second quarter and portfolio acquisitions totaled a strong $85 million, building a solid foundation for growth in the years to come."
Cash collections rose 6%, to $90.5 million from $85 million in the year-ago period. The company also reported call center collections increased 7%, and external legal collections decreased 26%. The debt buyer reported purchased bankruptcy collections increased 43% in the quarter compared with the year-ago period.
