Debt Purchase and Collections Company Portfolio Recovery Associates Reports Record 2011

The debt collections industry has been booming as of late. A report from insideARM’s ARM (News - Alert) Barometer, a quarterly survey of collection agencies, debt buyers, collection law firms and credit grantors, revealed that many that accounts receivable management (ARM) companies in the outsourced business services sector of the U.S. economy added jobs in the second quarter of 2011. So it's not surprising to note that many collections companies are now reporting record revenue for 2011.

Financial and business services company Portfolio Recovery Associates, Inc., a player in the consumer debt purchase and collection industry, has reported both its fourth quarter and full year 2011 results. The company's full-year 2011 earnings totaled $100.8 million, or $5.85 per diluted share, compared with $73.5 million, or $4.35 per diluted share, for the full year of 2010. Full year 2011 revenues were $458.9 million, compared to $372.7 million for the full year 2010, said the company.

To break down the information further, the company noted that it saw a record net income for the fourth quarter of 2011 –  $26.6 million, which represents an increase of 29 percent over the fourth quarter of 2010. It also saw record diluted EPS of $1.54 for the quarter, compared with $1.20 in the fourth quarter of 2010. Fourth-quarter 2011 revenue, at $118.1 million, also reached record heights and represented a 17 percent increase from the fourth quarter of the previous year. The company saw cash collections of $180.3 million in 4Q 2011, which was up 25 percent from the fourth quarter of 2010, and and annualized return on average equity of 18.2 percent for the quarter.

“In 2011, PRA again experienced significant growth in revenues and net income, as well as improved operating efficiencies and a strengthened capital structure,” said Steven D. Fredrickson, chairman, president and chief executive officer of Portfolio Recovery Associates in a press release. “Our steadfast adherence to our core principles, our ability to evaluate and purchase high-value portfolios and our unwavering commitment to best practices for our industry helped to drive net income crossing the $100 million threshold for the first time in our history. We believe PRA has never been better positioned for long-term growth, and we intend to continue investing in our future through organic growth and select merger and acquisition opportunities. This is best illustrated through our acquisition of Mackenzie Hall in January 2012.”

Portfolio Recovery Associates as named to Forbes' list of Best Small Companies in 2011.