"For the second quarter,
For the quarter ended
• Cash proceeds on purchased debt were
• Investment in purchased debt was
• Revenue recognized on purchased debt, net was
• Costs to collect on purchased debt including gross court costs were
• EBITDA was
• Net loss was
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was
Total revenues :
Total operating expenses: 61,131
Operating income: 5,716
Total other expenses: 11,162
Loss before income taxes: (5,446)
Income tax expense: (2,071)
Adjusted EBITDA ($ in thousands)
Voluntary, non-legal collections:
Legal collections: 54,388
Other collections(1): 4,965
Sales, recourse & bankruptcy proceeds: 1,893
Contribution of other business activities(2): 1,615
Total inflows: 113,519 Purchased debt expense: 34,495
Court costs, net: 9,958
Other direct operating expense: 3,904
Salaries, general and administrative expenses: 11,068
Total outflows: 59,907
(2) Includes royalties on purchased debt and other revenue.
(3) Represents certain other items consistent with our debt covenant calculation.
(4) Consistent with the covenant calculations within our revolving credit facility, adjustments include the non-cash expense related to option grants of
Reconciliation of Net Loss to Adjusted EBITDA ($ in thousands)
Interest expense: 11,075
Interest income: (38)
Income tax expense: 2,071
Depreciation and amortization: 1,706
Adjustments related to purchased debt accounting
Proceeds applied to purchased debt principal(1): 46,633
Purchased debt valuation allowance reversals(2): (318)
Certain other or non-cash expenses
Stock option expense(3): 25
(2) Represents net non-cash valuation allowance reversals on purchased debt.
(3) Represents the non-cash expense related to option grants of
(4) Consistent with the covenant calculations within our revolving credit facility, other includes branch office note reserves, lease breakup costs, certain consulting fees, management fees paid to
Net cash (used in) provided by operating activities:
Proceeds applied to purchased debt principal(1): 88,900
Interest expense to be paid in cash(2): 20,618
Interest income: (57)
Amortization of prepaid and other non-cash expenses: (2,084)
Changes in operating assets and liabilities and deferred taxes:
Restricted cash(3): 822
Other operating assets and liabilities and deferred taxes(4): 5,942
Income tax expense: 3,108
(2) Represents interest expense, excluding non-cash amortization of loan origination fees and debt discount.
(3) Represents the change in restricted cash balances for the period due to the timing of payments on our lines of credit and semi-annual interest payments on our Senior Second Lien Notes.
(4) The amount represents timing differences due to the recognition of certain expenses and revenue items on a cash versus accrual basis.
(5) Consistent with the covenant calculations within our revolving credit facility, other includes branch office note reserves, lease breakup costs, certain consulting fees, management fees paid to
• In the quarter ended
The Company will hold a conference call today at
Members of the public are invited to listen to the event. To access the live telephone conference line, please dial (877) 522-6079 for domestic access, and (706) 643-9734 for international access. Please reference Conference ID 78058392 for the call.
For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company's website.
Non-GAAP Financial Measures
Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. ("GAAP"). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.
Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q as of
We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.
The information in this subsection is a summary and should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our condensed consolidated financial statements and footnotes in our 10-Q as of
Read the full story at http://www.prweb.com/releases/2014/08/prweb12092815.htm
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