Executing Successful Turnaround in U.S.
Business
NORFOLK,
Va., Aug. 5, 2024 /PRNewswire/ -- PRA Group,
Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring
and collecting nonperforming loans, today reported its financial
results for the second quarter of 2024 ("Q2 2024").
Q2 2024 Highlights
- Net income attributable to PRA Group, Inc. of $21.5 million, or diluted earnings per share of
$0.54.
- Total portfolio purchases of $379.4
million.
- Total cash collections of $473.9
million.
- Estimated remaining collections (ERC)1 of
$6.8 billion.
- Cash efficiency ratio2 of 58.9%.
- Adjusted EBITDA3 for the 12 months ended
June 30, 2024 of $1.1 billion.
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|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
($ in thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
|
$
21,516
|
|
$
(3,804)
|
|
$
24,991
|
|
$
(62,433)
|
|
Diluted earnings per
share
|
|
$
0.54
|
|
$
(0.10)
|
|
$
0.63
|
|
$
(1.60)
|
"The second quarter was another important step in demonstrating
the turnaround in our U.S. business, delivering against our
financial and operational targets for 2024, and positioning the
Company for future growth," said Vikram
Atal, president and chief executive officer. "We invested
$379 million during the quarter,
which represents our third highest quarterly level of purchases
over the past five years. This was driven by the continued strength
of U.S. portfolio supply coupled with stronger supply in
Europe this quarter, with pricing
remaining attractive globally. Cash collections grew 13%
year-over-year, primarily reflecting higher recent purchases and
the positive impact of our cash-generating and operational
initiatives in our U.S. business, particularly in our legal
collections channel where we have been investing for growth. We
also experienced continued cash collections growth in our European
business. Our net income for the quarter reflects the progress we
have made in executing the turnaround with speed across a broad set
of initiatives. Looking ahead, we remain focused on sustaining
profitability and positioning the Company for attractive growth in
the years to come."
|
1.
|
Refers to the sum of
all future projected cash collections on the Company's
nonperforming loan portfolios.
|
|
2.
|
Calculated by dividing
cash receipts less operating expenses by cash receipts. Cash
receipts refers to cash collections on the Company's nonperforming
loan portfolios, fees and revenue recognized from the Company's
class action claims recovery services.
|
|
3.
|
A reconciliation of net
income, the most directly comparable financial measure calculated
and reported in accordance with GAAP, to Adjusted EBITDA can be
found at the end of this press release.
|
Cash Collections and Revenues
The following table
presents cash collections by quarter and by source on an as
reported and constant currency-adjusted basis:
|
|
|
|
|
|
|
|
|
|
|
|
Cash Collection
Source
|
|
2024
|
|
2023
|
|
($ in
thousands)
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Americas and Australia
Core
|
|
$
263,828
|
|
$
256,861
|
|
$
220,127
|
|
$
223,714
|
|
$
220,886
|
|
Americas
Insolvency
|
|
26,971
|
|
25,209
|
|
24,293
|
|
27,809
|
|
26,384
|
|
Europe Core
|
|
156,739
|
|
145,933
|
|
144,361
|
|
144,402
|
|
149,324
|
|
Europe
Insolvency
|
|
26,344
|
|
21,515
|
|
21,502
|
|
23,639
|
|
22,725
|
|
Total cash
collections
|
|
$
473,882
|
|
$
449,518
|
|
$
410,283
|
|
$
419,564
|
|
$
419,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Cash Collection
Source -
|
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency-Adjusted
|
|
2024
|
|
|
|
|
|
|
|
2023
|
|
($ in
thousands)
|
|
Q2
|
|
|
|
|
|
|
|
Q2
|
|
Americas and Australia
Core
|
|
$
263,828
|
|
|
|
|
|
|
|
$
219,118
|
|
Americas
Insolvency
|
|
26,971
|
|
|
|
|
|
|
|
26,377
|
|
Europe Core
|
|
156,739
|
|
|
|
|
|
|
|
149,889
|
|
Europe
Insolvency
|
|
26,344
|
|
|
|
|
|
|
|
22,888
|
|
Total Cash
collections
|
|
$
473,882
|
|
|
|
|
|
|
|
$
418,272
|
|
|
|
|
|
|
|
|
|
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|
- Total cash collections in Q2 2024 increased 13.0% to
$473.9 million compared to
$419.3 million in the second quarter
of 2023 ("Q2 2023"). The increase was primarily driven by higher
cash collections in the U.S. and Europe. For the six months ended June 30, 2024, cash collections increased
$92.8 million, or 11.2%, compared to
the same period last year.
- Total portfolio revenue in Q2 2024 increased 37.6% to
$282.6 million compared to
$205.4 million in Q2 2023. For the
six months ended June 30, 2024, total
portfolio revenue increased 50.3% to $536.3
million compared to $356.8
million in the same period last year.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
($ in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Portfolio
income
|
|
$
209,290
|
|
$
184,290
|
|
$
411,346
|
|
$
372,532
|
|
Recoveries received in
excess of forecast
|
|
$
54,260
|
|
$
25,348
|
|
$
90,098
|
|
$
29,186
|
|
Changes in expected
future recoveries
|
|
19,060
|
|
(4,212)
|
|
34,896
|
|
(44,962)
|
|
Changes in expected
recoveries
|
|
$
73,320
|
|
$
21,136
|
|
$
124,994
|
|
$
(15,776)
|
|
Total portfolio
revenue
|
|
$
282,610
|
|
$
205,426
|
|
$
536,340
|
|
$
356,756
|
|
|
|
|
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|
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|
Expenses
- Operating expenses in Q2 2024 increased $31.3 million, or 19.1%, to $195.0 million compared to $163.7 million in Q2 2023.
- Legal collection costs increased $13.8
million, primarily due to increased investments in our U.S.
legal channel to drive future cash growth, as well as expansion of
legal collections activities in Europe.
- Compensation and employee services expenses increased
$8.5 million, primarily due to lower
compensation accruals in Q2 2023.
- Legal collection fees increased $4.2
million, due to higher external legal collections in our
U.S. Core portfolio.
- For the six months ended June 30,
2024, operating expenses increased by $31.4 million, or 8.9%, compared to the same
period last year.
- Interest expense, net in Q2 2024 was $55.4 million, an increase of $12.3 million, or 28.7%, compared to $43.0 million in Q2 2023, reflecting increased
interest rates and a higher average debt balance.
- The effective tax rate for the six months ended June 30, 2024 was 23.1%.
Portfolio Acquisitions
- The Company purchased $379.4
million in portfolios of nonperforming loans in Q2
2024.
- At the end of Q2 2024, the Company had in place estimated
forward flow commitments1 of $385.6 million over the next 12 months, comprised
of $272.1 million in the Americas and
Australia and $113.5 million in Europe.
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|
|
|
|
|
|
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|
Portfolio Purchase
Source
|
|
2024
|
|
2023
|
|
($ in
thousands)
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Americas &
Australia Core
|
|
$
198,761
|
|
$
174,660
|
|
$
143,052
|
|
$
187,554
|
|
$
171,440
|
|
Americas
Insolvency
|
|
26,627
|
|
22,156
|
|
18,608
|
|
44,279
|
|
12,189
|
|
Europe Core
|
|
127,991
|
|
43,997
|
|
110,780
|
|
60,628
|
|
136,834
|
|
Europe
Insolvency
|
|
25,990
|
|
5,004
|
|
12,476
|
|
18,722
|
|
7,296
|
|
Total portfolio
acquisitions
|
|
$
379,369
|
|
$
245,817
|
|
$
284,916
|
|
$
311,183
|
|
$
327,759
|
|
|
|
|
|
|
|
|
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|
Credit Availability
- Total availability under the Company's credit facilities as of
June 30, 2024 was $1.4 billion, comprised of $741.9 million based on current ERC and
$706.6 million of additional
availability subject to borrowing base and debt covenants,
including advance rates.
- The Company intends to borrow $298.0
million under its North American revolving credit agreement
on or about September 1, 2024 to
redeem its Senior Notes due 2025, which, all other effects being
equal, would cause a corresponding decrease to the availability
under its credit facilities.
2024 Financial and Operational Targets
The Company
expects to achieve the following financial and operational targets
for full year 2024:
- Strong portfolio investment levels
- Double-digit cash collections growth
- ~60% cash efficiency ratio
- 6% - 8% return on average tangible equity2
Conference Call Information
PRA Group, Inc. will hold
a conference call today at 5:00 p.m.
ET to discuss its financial and operational results. To
listen to a webcast of the call and view the accompanying slides,
visit https://ir.pragroup.com/events-and-presentations. To listen
by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside
the U.S. and ask for the PRA Group conference call. To listen to a
replay of the call, either visit the same website until
August 5, 2025, or call 646-517-4150
in the U.S. or 1-888-660-6345 outside the U.S. and use access code
71248# until August 12, 2024.
About PRA Group, Inc.
As a global leader in acquiring
and collecting nonperforming loans, PRA Group, Inc. returns capital
to banks and other creditors to help expand financial services for
consumers in the Americas, Europe,
and Australia. With thousands of
employees worldwide, PRA Group, Inc. companies collaborate with
customers to help them resolve their debt. For more information,
please visit www.pragroup.com.
About Forward Looking Statements
Statements made
herein that are not historical in nature, including PRA Group,
Inc.'s or its management's intentions, hopes, beliefs,
expectations, representations, projections, plans or predictions of
the future, are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements in this press release are based
upon management's current beliefs, estimates, assumptions and
expectations of PRA Group, Inc.'s future operations and financial
and economic performance, taking into account currently available
information. These statements are not statements of historical fact
or guarantees of future performance, and there can be no assurance
that anticipated events will transpire or that the Company's
expectations will prove to be correct. Forward-looking statements
involve risks and uncertainties, some of which are not currently
known to PRA Group, Inc. Actual events or results may differ
materially from those expressed or implied in any such
forward-looking statements as a result of various factors,
including risk factors and other risks that are described from time
to time in PRA Group, Inc.'s filings with the Securities and
Exchange Commission, including PRA Group, Inc.'s annual reports on
Form 10-K, its quarterly reports on Form 10-Q and its current
reports on Form 8-K, which are available through PRA Group, Inc.'s
website and contain a detailed discussion of PRA Group, Inc.'s
business, including risks and uncertainties that may affect future
results.
Due to such uncertainties and risks, you are cautioned not to
place undue reliance on such forward-looking statements, which
speak only as of today. Information in this press release may be
superseded by more recent information or statements, which may be
disclosed in later press releases, subsequent filings with the
Securities and Exchange Commission or otherwise. Except as required
by law, PRA Group, Inc. assumes no obligation to publicly update or
revise its forward-looking statements contained herein to reflect
any change in PRA Group, Inc.'s expectations with regard thereto or
to reflect any change in events, conditions or circumstances on
which any such forward-looking statements are based, in whole or in
part.
|
1.
|
Contractual agreements
with sellers of nonperforming loans that allow for the purchase of
nonperforming portfolios at pre-established prices. These amounts
represent our estimated forward flow purchases over the next 12
months under the agreements in place, based on projections and
other factors, including sellers' estimates of future flow sales,
and are dependent on actual delivery by the sellers. Accordingly,
amounts purchased under these agreements may vary
significantly.
|
|
2.
|
A reconciliation of
total stockholders' equity – PRA Group, Inc., the most directly
comparable financial measure calculated and reported in accordance
with GAAP, to average tangible equity can be found at the end of
this press release.
|
|
PRA Group,
Inc.
Unaudited
Consolidated Income Statements
(Amounts in
thousands, except per share amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Portfolio
income
|
$
209,290
|
|
$
184,290
|
|
$
411,346
|
|
$
372,532
|
|
Changes in expected
recoveries
|
73,320
|
|
21,136
|
|
124,994
|
|
(15,776)
|
|
Total portfolio
revenue
|
282,610
|
|
205,426
|
|
536,340
|
|
356,756
|
|
Other
revenue
|
1,619
|
|
3,810
|
|
3,475
|
|
7,950
|
|
Total
revenues
|
284,229
|
|
209,236
|
|
539,815
|
|
364,706
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
employee services
|
74,241
|
|
65,788
|
|
147,838
|
|
148,191
|
|
Legal collection
fees
|
13,762
|
|
9,551
|
|
25,874
|
|
18,389
|
|
Legal collection
costs
|
35,274
|
|
21,522
|
|
61,965
|
|
45,467
|
|
Agency fees
|
21,008
|
|
17,677
|
|
40,731
|
|
35,055
|
|
Outside fees and
services
|
18,124
|
|
18,262
|
|
43,174
|
|
43,206
|
|
Communication
|
11,577
|
|
10,117
|
|
24,155
|
|
20,644
|
|
Rent and
occupancy
|
4,136
|
|
4,319
|
|
8,280
|
|
8,767
|
|
Depreciation and
amortization
|
2,637
|
|
3,482
|
|
5,357
|
|
7,071
|
|
Other operating
expenses
|
14,248
|
|
12,957
|
|
26,823
|
|
25,999
|
|
Total operating
expenses
|
195,007
|
|
163,675
|
|
384,197
|
|
352,789
|
|
Income from operations
|
89,222
|
|
45,561
|
|
155,618
|
|
11,917
|
|
Other income and
(expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(55,353)
|
|
(43,022)
|
|
(107,631)
|
|
(81,305)
|
|
Foreign exchange
gain/(loss), net
|
(99)
|
|
429
|
|
128
|
|
420
|
|
Other
|
46
|
|
(230)
|
|
(160)
|
|
(880)
|
|
Income/(loss) before
income taxes
|
33,816
|
|
2,738
|
|
47,955
|
|
(69,848)
|
|
Income tax
expense/(benefit)
|
8,702
|
|
1,578
|
|
11,088
|
|
(17,105)
|
|
Net
income/(loss)
|
25,114
|
|
1,160
|
|
36,867
|
|
(52,743)
|
|
Adjustment for net
income attributable to noncontrolling interests
|
3,598
|
|
4,964
|
|
11,876
|
|
9,690
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
$
21,516
|
|
$
(3,804)
|
|
$
24,991
|
|
$
(62,433)
|
|
Net income/(loss) per
common share attributable to PRA Group, Inc.:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$
(0.10)
|
|
$
0.64
|
|
$
(1.60)
|
|
Diluted
|
$
0.54
|
|
$
(0.10)
|
|
$
0.63
|
|
$
(1.60)
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
39,364
|
|
39,190
|
|
39,319
|
|
39,111
|
|
Diluted
|
39,546
|
|
39,190
|
|
39,497
|
|
39,111
|
|
PRA Group,
Inc.
Consolidated Balance
Sheets
(Amounts in
thousands)
|
|
|
(unaudited)
|
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
118,865
|
|
$
112,528
|
|
Investments
|
59,619
|
|
72,404
|
|
Finance receivables,
net
|
3,820,186
|
|
3,656,598
|
|
Income taxes
receivable
|
34,813
|
|
27,713
|
|
Deferred tax assets,
net
|
76,486
|
|
74,694
|
|
Right-of-use
assets
|
42,374
|
|
45,877
|
|
Property and
equipment, net
|
32,827
|
|
36,450
|
|
Goodwill
|
415,646
|
|
431,564
|
|
Other
assets
|
61,124
|
|
67,526
|
|
Total
assets
|
$
4,661,940
|
|
$
4,525,354
|
|
Liabilities and
Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
10,198
|
|
$
6,325
|
|
Accrued
expenses
|
114,260
|
|
131,893
|
|
Income taxes
payable
|
23,583
|
|
17,912
|
|
Deferred tax
liabilities, net
|
18,423
|
|
17,051
|
|
Lease
liabilities
|
46,746
|
|
50,300
|
|
Interest-bearing
deposits
|
114,991
|
|
115,589
|
|
Borrowings
|
3,113,777
|
|
2,914,270
|
|
Other
liabilities
|
16,684
|
|
32,638
|
|
Total
liabilities
|
3,458,662
|
|
3,285,978
|
|
Equity:
|
|
|
|
|
Preferred stock, $0.01
par value, 2,000 shares authorized, no shares issued and
outstanding
|
—
|
|
—
|
|
Common stock, $0.01
par value, 100,000 shares authorized, 39,417 shares issued and
outstanding as of June 30, 2024; 100,000 shares authorized, 39,247
shares issued and
outstanding as of December 31, 2023
|
394
|
|
392
|
|
Additional paid-in
capital
|
12,339
|
|
7,071
|
|
Retained
earnings
|
1,514,539
|
|
1,489,548
|
|
Accumulated other
comprehensive loss
|
(381,809)
|
|
(329,899)
|
|
Total stockholders'
equity - PRA Group, Inc.
|
1,145,463
|
|
1,167,112
|
|
Noncontrolling
interests
|
57,815
|
|
72,264
|
|
Total
equity
|
1,203,278
|
|
1,239,376
|
|
Total liabilities and
equity
|
$
4,661,940
|
|
$
4,525,354
|
|
Select Expenses
(Income)
Amounts in
thousands, pre-tax
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
September
30,
2023
|
June 30,
2023
|
March 31,
2023
|
December 31,
2022
|
September
30,
2022
|
|
Noncash interest
expense - amortization of debt issuance costs
|
$
2,331
|
$
2,200
|
$
2,177
|
$
2,220
|
$
2,384
|
$
2,441
|
$
2,444
|
$
2,555
|
|
Change in fair value of
derivatives
|
(5,628)
|
(5,930)
|
(6,734)
|
(6,545)
|
(6,960)
|
(5,470)
|
(3,309)
|
(1,042)
|
|
Amortization of
intangibles
|
58
|
60
|
69
|
69
|
68
|
66
|
73
|
73
|
|
Impairment of real
estate
|
—
|
—
|
202
|
5,037
|
—
|
—
|
—
|
—
|
|
Stock-based
compensation expense
|
3,555
|
3,327
|
2,952
|
1,629
|
2,715
|
3,799
|
2,206
|
3,101
|
|
Purchase Price
Multiples
as of June 30,
2024
Amounts in
thousands
|
|
|
|
|
|
|
|
Purchase
Period
|
Purchase Price
(1)(2)
|
Total Estimated
Collections (3)
|
Estimated
Remaining
Collections (4)
|
Current Purchase
Price Multiple
|
Original
Purchase
Price Multiple (5)
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
1996-2013
|
$
1,932,722
|
$
5,745,296
|
$
54,130
|
297 %
|
233 %
|
|
2014
|
404,117
|
893,611
|
28,903
|
221 %
|
204 %
|
|
2015
|
443,114
|
912,525
|
39,549
|
206 %
|
205 %
|
|
2016
|
455,767
|
1,088,320
|
60,856
|
239 %
|
201 %
|
|
2017
|
532,851
|
1,209,023
|
92,474
|
227 %
|
193 %
|
|
2018
|
653,975
|
1,508,340
|
134,993
|
231 %
|
202 %
|
|
2019
|
581,476
|
1,302,954
|
143,944
|
224 %
|
206 %
|
|
2020
|
435,668
|
952,248
|
165,787
|
219 %
|
213 %
|
|
2021
|
435,846
|
740,020
|
286,888
|
170 %
|
191 %
|
|
2022
|
406,082
|
707,943
|
364,784
|
174 %
|
179 %
|
|
2023
|
622,583
|
1,224,773
|
948,003
|
197 %
|
197 %
|
|
2024
|
373,421
|
787,310
|
759,217
|
211 %
|
211 %
|
|
Subtotal
|
7,277,622
|
17,072,363
|
3,079,528
|
|
|
|
Americas
Insolvency
|
|
|
|
|
|
1996-2013
|
1,266,056
|
2,503,066
|
26
|
198 %
|
159 %
|
|
2014
|
148,420
|
218,933
|
46
|
148 %
|
124 %
|
|
2015
|
63,170
|
88,083
|
35
|
139 %
|
125 %
|
|
2016
|
91,442
|
118,282
|
232
|
129 %
|
123 %
|
|
2017
|
275,257
|
358,452
|
1,185
|
130 %
|
125 %
|
|
2018
|
97,879
|
136,147
|
942
|
139 %
|
127 %
|
|
2019
|
123,077
|
168,485
|
7,765
|
137 %
|
128 %
|
|
2020
|
62,130
|
91,590
|
20,018
|
147 %
|
136 %
|
|
2021
|
55,187
|
74,273
|
26,054
|
135 %
|
136 %
|
|
2022
|
33,442
|
47,143
|
29,305
|
141 %
|
139 %
|
|
2023
|
91,282
|
120,038
|
97,797
|
132 %
|
135 %
|
|
2024
|
48,783
|
71,770
|
68,932
|
147 %
|
147 %
|
|
Subtotal
|
2,356,125
|
3,996,262
|
252,337
|
|
|
|
Total Americas and
Australia
|
9,633,747
|
21,068,625
|
3,331,865
|
|
|
|
Europe
Core
|
|
|
|
|
|
|
2012-2013
|
40,742
|
72,662
|
1
|
178 %
|
153 %
|
|
2014
|
773,811
|
2,564,807
|
415,481
|
331 %
|
208 %
|
|
2015
|
411,340
|
755,061
|
134,415
|
184 %
|
160 %
|
|
2016
|
333,090
|
579,777
|
156,278
|
174 %
|
167 %
|
|
2017
|
252,174
|
369,070
|
101,373
|
146 %
|
144 %
|
|
2018
|
341,775
|
557,913
|
185,378
|
163 %
|
148 %
|
|
2019
|
518,610
|
848,086
|
321,430
|
164 %
|
152 %
|
|
2020
|
324,119
|
568,114
|
237,561
|
175 %
|
172 %
|
|
2021
|
412,411
|
701,265
|
387,655
|
170 %
|
170 %
|
|
2022
|
359,447
|
584,036
|
440,058
|
162 %
|
162 %
|
|
2023
|
410,593
|
692,794
|
574,106
|
169 %
|
169 %
|
|
2024
|
170,988
|
312,073
|
304,681
|
183 %
|
183 %
|
|
Subtotal
|
4,349,100
|
8,605,658
|
3,258,417
|
|
|
|
Europe
Insolvency
|
|
|
|
|
|
2014
|
10,876
|
18,979
|
—
|
175 %
|
129 %
|
|
2015
|
18,973
|
29,381
|
—
|
155 %
|
139 %
|
|
2016
|
39,338
|
57,841
|
617
|
147 %
|
130 %
|
|
2017
|
39,235
|
51,992
|
1,116
|
133 %
|
128 %
|
|
2018
|
44,908
|
52,649
|
2,887
|
117 %
|
123 %
|
|
2019
|
77,218
|
113,418
|
14,448
|
147 %
|
130 %
|
|
2020
|
105,440
|
157,743
|
29,880
|
150 %
|
129 %
|
|
2021
|
53,230
|
73,783
|
26,655
|
139 %
|
134 %
|
|
2022
|
44,604
|
61,840
|
39,949
|
139 %
|
137 %
|
|
2023
|
46,558
|
64,255
|
53,764
|
138 %
|
138 %
|
|
2024
|
30,994
|
45,761
|
42,648
|
147 %
|
147 %
|
|
Subtotal
|
511,374
|
727,642
|
211,964
|
|
|
|
Total Europe
|
4,860,474
|
9,333,300
|
3,470,381
|
|
|
|
Total PRA
Group
|
$
14,494,221
|
$
30,401,925
|
$
6,802,246
|
|
|
|
|
|
(1)
|
Includes the
acquisition date finance receivables portfolios that were acquired
through our business acquisitions.
|
|
(2)
|
Non-U.S. amounts are
presented at the exchange rate at the end of the year in which the
portfolio was purchased. In addition, any purchase price
adjustments that occur throughout the life of the portfolio are
presented at the year-end exchange rate for the respective year of
purchase.
|
|
(3)
|
Non-U.S. amounts are
presented at the year-end exchange rate for the respective year of
purchase.
|
|
(4)
|
Non-U.S. amounts are
presented at the June 30, 2024 exchange rate.
|
|
(5)
|
The Original Purchase
Price Multiple represents the purchase price multiple at the end of
the year of acquisition.
|
|
Portfolio Financial
Information (1)
|
|
Amounts in
thousands
|
|
June 30, 2024
(year-to-date)
|
|
As of June 30,
2024
|
|
Purchase
Period
|
Cash
Collections (2)
|
Portfolio
Income (2)
|
Change in
Expected
Recoveries (2)
|
Total Portfolio
Revenue (2)
|
|
Net Finance
Receivables (3)
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
|
1996-2013
|
$
18,065
|
$
7,042
|
$
11,887
|
$
18,929
|
|
$
16,523
|
|
2014
|
7,024
|
2,805
|
4,887
|
7,692
|
|
11,018
|
|
2015
|
8,806
|
3,405
|
7,303
|
10,708
|
|
16,993
|
|
2016
|
12,623
|
6,530
|
5,537
|
12,067
|
|
21,359
|
|
2017
|
20,755
|
9,295
|
6,625
|
15,920
|
|
38,305
|
|
2018
|
41,881
|
14,656
|
17,007
|
31,663
|
|
73,826
|
|
2019
|
43,863
|
17,389
|
7,800
|
25,189
|
|
80,381
|
|
2020
|
50,041
|
19,482
|
2,557
|
22,039
|
|
92,936
|
|
2021
|
56,615
|
27,707
|
(5,049)
|
22,658
|
|
152,803
|
|
2022
|
82,963
|
34,964
|
(3,612)
|
31,352
|
|
221,981
|
|
2023
|
149,967
|
87,582
|
13,175
|
100,757
|
|
531,229
|
|
2024
|
28,086
|
22,132
|
6,431
|
28,563
|
|
373,386
|
|
Subtotal
|
520,689
|
252,989
|
74,548
|
327,537
|
|
1,630,740
|
|
Americas
Insolvency
|
|
|
|
|
|
|
|
1996-2013
|
518
|
65
|
454
|
519
|
|
—
|
|
2014
|
170
|
52
|
122
|
174
|
|
—
|
|
2015
|
112
|
19
|
74
|
93
|
|
20
|
|
2016
|
317
|
22
|
269
|
291
|
|
201
|
|
2017
|
1,548
|
104
|
1,493
|
1,597
|
|
1,060
|
|
2018
|
1,613
|
73
|
570
|
643
|
|
886
|
|
2019
|
10,306
|
663
|
(212)
|
451
|
|
7,445
|
|
2020
|
9,106
|
1,419
|
889
|
2,308
|
|
18,223
|
|
2021
|
8,214
|
1,670
|
501
|
2,171
|
|
22,789
|
|
2022
|
5,489
|
1,637
|
336
|
1,973
|
|
24,327
|
|
2023
|
11,945
|
5,781
|
(790)
|
4,991
|
|
76,235
|
|
2024
|
2,841
|
1,912
|
294
|
2,206
|
|
47,843
|
|
Subtotal
|
52,179
|
13,417
|
4,000
|
17,417
|
|
199,029
|
|
Total Americas and
Australia
|
572,868
|
266,406
|
78,548
|
344,954
|
|
1,829,769
|
|
Europe
Core
|
|
|
|
|
|
|
|
2012-2013
|
525
|
—
|
525
|
525
|
|
—
|
|
2014
|
50,594
|
35,965
|
13,941
|
49,906
|
|
97,962
|
|
2015
|
15,663
|
6,867
|
4,052
|
10,919
|
|
66,674
|
|
2016
|
13,878
|
6,576
|
2,459
|
9,035
|
|
88,195
|
|
2017
|
9,368
|
3,410
|
1,057
|
4,467
|
|
67,454
|
|
2018
|
19,334
|
6,884
|
3,837
|
10,721
|
|
118,792
|
|
2019
|
34,697
|
11,337
|
5,331
|
16,668
|
|
216,535
|
|
2020
|
25,522
|
9,654
|
2,912
|
12,566
|
|
146,420
|
|
2021
|
34,155
|
14,494
|
3,181
|
17,675
|
|
235,125
|
|
2022
|
39,130
|
15,455
|
755
|
16,210
|
|
276,388
|
|
2023
|
52,395
|
22,109
|
910
|
23,019
|
|
338,599
|
|
2024
|
7,411
|
2,770
|
1,803
|
4,573
|
|
167,839
|
|
Subtotal
|
302,672
|
135,521
|
40,763
|
176,284
|
|
1,819,983
|
|
Europe
Insolvency
|
|
|
|
|
|
|
|
2014
|
86
|
—
|
86
|
86
|
|
—
|
|
2015
|
99
|
2
|
70
|
72
|
|
—
|
|
2016
|
468
|
64
|
166
|
230
|
|
184
|
|
2017
|
874
|
73
|
(5)
|
68
|
|
928
|
|
2018
|
1,919
|
155
|
(14)
|
141
|
|
2,599
|
|
2019
|
7,495
|
782
|
1,100
|
1,882
|
|
12,648
|
|
2020
|
13,446
|
1,559
|
1,011
|
2,570
|
|
27,211
|
|
2021
|
7,542
|
1,420
|
910
|
2,330
|
|
23,263
|
|
2022
|
7,167
|
1,984
|
915
|
2,899
|
|
32,264
|
|
2023
|
5,656
|
2,578
|
50
|
2,628
|
|
41,559
|
|
2024
|
3,108
|
802
|
1,394
|
2,196
|
|
29,778
|
|
Subtotal
|
47,860
|
9,419
|
5,683
|
15,102
|
|
170,434
|
|
Total Europe
|
350,532
|
144,940
|
46,446
|
191,386
|
|
1,990,417
|
|
Total PRA
Group
|
$
923,400
|
$
411,346
|
$
124,994
|
$
536,340
|
|
$
3,820,186
|
|
|
|
(1)
|
Includes the
nonperforming loan portfolios that were acquired through our
business acquisitions.
|
|
(2)
|
Non-U.S. amounts are
presented using the average exchange rates during the current
reporting period.
|
|
(3)
|
Non-U.S. amounts are
presented at the June 30, 2024 exchange rate.
|
|
Cash Collections by
Year, By Year of Purchase (1)
as of June 30,
2024
Amounts in
millions
|
|
|
Cash
Collections
|
|
Purchase
Period
|
Purchase
Price (2)(3)
|
1996-2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Total
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2013
|
$
1,932.7
|
$
3,618.9
|
$ 660.3
|
$ 474.4
|
$ 299.7
|
$ 197.0
|
$ 140.3
|
$
99.7
|
$
64.7
|
$
46.5
|
$
36.0
|
$
28.4
|
$
18.1
|
$ 5,684.0
|
|
2014
|
404.1
|
—
|
92.7
|
253.4
|
170.3
|
114.2
|
82.2
|
55.3
|
31.9
|
22.3
|
15.0
|
11.8
|
7.0
|
856.1
|
|
2015
|
443.1
|
—
|
—
|
117.0
|
228.4
|
185.9
|
126.6
|
83.6
|
57.2
|
34.9
|
19.5
|
14.1
|
8.8
|
876.0
|
|
2016
|
455.8
|
—
|
—
|
—
|
138.7
|
256.5
|
194.6
|
140.6
|
105.9
|
74.2
|
38.4
|
24.9
|
12.6
|
986.4
|
|
2017
|
532.9
|
—
|
—
|
—
|
—
|
107.3
|
278.7
|
256.5
|
192.5
|
130.0
|
76.3
|
43.8
|
20.8
|
1105.9
|
|
2018
|
654.0
|
—
|
—
|
—
|
—
|
—
|
122.7
|
361.9
|
337.7
|
239.9
|
146.1
|
92.9
|
41.9
|
1343.1
|
|
2019
|
581.5
|
—
|
—
|
—
|
—
|
—
|
—
|
143.8
|
349.0
|
289.8
|
177.7
|
110.3
|
43.9
|
1114.5
|
|
2020
|
435.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
132.9
|
284.3
|
192.0
|
125.8
|
50.0
|
785.0
|
|
2021
|
435.8
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
85.0
|
177.3
|
136.8
|
56.6
|
455.7
|
|
2022
|
406.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
67.7
|
195.4
|
83.0
|
346.1
|
|
2023
|
622.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
108.5
|
150.0
|
258.5
|
|
2024
|
373.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
28.0
|
28.0
|
|
Subtotal
|
7,277.6
|
3,618.9
|
753.0
|
844.8
|
837.1
|
860.9
|
945.1
|
1,141.4
|
1,271.8
|
1,206.9
|
946.0
|
892.7
|
520.7
|
13,839.3
|
|
Americas
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2013
|
1,266.1
|
1,491.4
|
421.4
|
289.9
|
168.7
|
85.5
|
30.3
|
6.8
|
3.6
|
2.2
|
1.6
|
1.1
|
0.5
|
2,503.0
|
|
2014
|
148.4
|
—
|
37.0
|
50.9
|
44.3
|
37.4
|
28.8
|
15.8
|
2.2
|
1.1
|
0.7
|
0.4
|
0.2
|
218.8
|
|
2015
|
63.2
|
—
|
—
|
3.4
|
17.9
|
20.1
|
19.8
|
16.7
|
7.9
|
1.3
|
0.6
|
0.3
|
0.1
|
88.1
|
|
2016
|
91.4
|
—
|
—
|
—
|
18.9
|
30.4
|
25.0
|
19.9
|
14.4
|
7.4
|
1.8
|
0.9
|
0.3
|
119.0
|
|
2017
|
275.3
|
—
|
—
|
—
|
—
|
49.1
|
97.3
|
80.9
|
58.8
|
44.0
|
20.8
|
4.9
|
1.5
|
357.3
|
|
2018
|
97.9
|
—
|
—
|
—
|
—
|
—
|
6.7
|
27.4
|
30.5
|
31.6
|
24.6
|
12.7
|
1.6
|
135.1
|
|
2019
|
123.1
|
—
|
—
|
—
|
—
|
—
|
—
|
13.4
|
31.4
|
39.1
|
37.8
|
28.7
|
10.3
|
160.7
|
|
2020
|
62.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.5
|
16.1
|
20.4
|
19.5
|
9.1
|
71.6
|
|
2021
|
55.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.6
|
17.9
|
17.5
|
8.2
|
48.2
|
|
2022
|
33.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.2
|
9.2
|
5.5
|
17.9
|
|
2023
|
91.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
9.0
|
11.9
|
20.9
|
|
2024
|
48.8
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
2.9
|
2.9
|
|
Subtotal
|
2,356.1
|
1,491.4
|
458.4
|
344.2
|
249.8
|
222.5
|
207.9
|
180.9
|
155.3
|
147.4
|
129.4
|
104.2
|
52.1
|
3,743.5
|
|
Total Americas and
Australia
|
9,633.7
|
5,110.3
|
1,211.4
|
1,189.0
|
1,086.9
|
1,083.4
|
1,153.0
|
1,322.3
|
1,427.1
|
1,354.3
|
1,075.4
|
996.9
|
572.8
|
17,582.8
|
|
Europe
Core
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012-2013
|
40.7
|
27.7
|
14.2
|
5.5
|
3.5
|
3.3
|
3.3
|
2.4
|
1.9
|
1.8
|
1.4
|
1.0
|
0.5
|
66.5
|
|
2014
|
773.8
|
—
|
153.2
|
292.0
|
246.4
|
220.8
|
206.3
|
172.9
|
149.8
|
149.2
|
122.2
|
107.6
|
50.6
|
1,871.0
|
|
2015
|
411.3
|
—
|
—
|
45.8
|
100.3
|
86.2
|
80.9
|
66.1
|
54.3
|
51.4
|
40.7
|
33.8
|
15.7
|
575.2
|
|
2016
|
333.1
|
—
|
—
|
—
|
40.4
|
78.9
|
72.6
|
58.0
|
48.3
|
46.7
|
36.9
|
29.7
|
13.9
|
425.4
|
|
2017
|
252.2
|
—
|
—
|
—
|
—
|
17.9
|
56.0
|
44.1
|
36.1
|
34.8
|
25.2
|
20.2
|
9.4
|
243.7
|
|
2018
|
341.8
|
—
|
—
|
—
|
—
|
—
|
24.3
|
88.7
|
71.3
|
69.1
|
50.7
|
41.6
|
19.3
|
365.0
|
|
2019
|
518.6
|
—
|
—
|
—
|
—
|
—
|
—
|
48.0
|
125.7
|
121.4
|
89.8
|
75.1
|
34.7
|
494.7
|
|
2020
|
324.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
32.3
|
91.7
|
69.0
|
56.1
|
25.5
|
274.6
|
|
2021
|
412.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.5
|
89.9
|
73.0
|
34.2
|
245.6
|
|
2022
|
359.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
33.9
|
83.8
|
39.1
|
156.8
|
|
2023
|
410.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
50.2
|
52.4
|
102.6
|
|
2024
|
171.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
7.4
|
7.4
|
|
Subtotal
|
4,349.1
|
27.7
|
167.4
|
343.3
|
390.6
|
407.1
|
443.4
|
480.2
|
519.7
|
614.6
|
559.7
|
572.1
|
302.7
|
4,828.5
|
|
Europe
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
10.9
|
—
|
—
|
4.3
|
3.9
|
3.2
|
2.6
|
1.5
|
0.8
|
0.3
|
0.2
|
0.2
|
0.1
|
17.1
|
|
2015
|
19.0
|
—
|
—
|
3.0
|
4.4
|
5.0
|
4.8
|
3.9
|
2.9
|
1.6
|
0.6
|
0.4
|
0.1
|
26.7
|
|
2016
|
39.3
|
—
|
—
|
—
|
6.2
|
12.7
|
12.9
|
10.7
|
7.9
|
6.0
|
2.7
|
1.3
|
0.5
|
60.9
|
|
2017
|
39.2
|
—
|
—
|
—
|
—
|
1.2
|
7.9
|
9.2
|
9.8
|
9.4
|
6.5
|
3.8
|
0.9
|
48.7
|
|
2018
|
44.9
|
—
|
—
|
—
|
—
|
—
|
0.6
|
8.4
|
10.3
|
11.7
|
9.8
|
7.2
|
1.9
|
49.9
|
|
2019
|
77.2
|
—
|
—
|
—
|
—
|
—
|
—
|
5.0
|
21.1
|
23.9
|
21.0
|
17.5
|
7.5
|
96.0
|
|
2020
|
105.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.0
|
34.6
|
34.1
|
29.7
|
13.4
|
117.8
|
|
2021
|
53.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.5
|
14.4
|
14.7
|
7.5
|
42.1
|
|
2022
|
44.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.5
|
12.4
|
7.2
|
24.1
|
|
2023
|
46.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.2
|
5.7
|
9.9
|
|
2024
|
31.0
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.1
|
3.1
|
|
Subtotal
|
511.4
|
—
|
—
|
7.3
|
14.5
|
22.1
|
28.8
|
38.7
|
58.8
|
93.0
|
93.8
|
91.4
|
47.9
|
496.3
|
|
Total Europe
|
4,860.5
|
27.7
|
167.4
|
350.6
|
405.1
|
429.2
|
472.2
|
518.9
|
578.5
|
707.6
|
653.5
|
663.5
|
350.6
|
5,324.8
|
|
Total PRA
Group
|
$ 14,494.2
|
$
5,138.0
|
$
1,378.8
|
$
1,539.6
|
$
1,492.0
|
$
1,512.6
|
$
1,625.2
|
$
1,841.2
|
$
2,005.6
|
$
2,061.9
|
$
1,728.9
|
$
1,660.4
|
$ 923.4
|
$
22,907.6
|
|
|
|
(1)
|
Non-U.S. amounts are
presented using the average exchange rates during the cash
collection period.
|
|
(2)
|
Includes the
acquisition date finance receivables portfolios acquired through
our business acquisitions.
|
|
(3)
|
Non-U.S. amounts are
presented at the exchange rate at the end of the year in which the
portfolio was purchased. In addition, any purchase price
adjustments that occur throughout the life of the pool are
presented at the year-end exchange rate for the respective year of
purchase.
|
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management uses certain non-GAAP financial measures, including
Adjusted EBITDA, internally to evaluate the Company's performance
and to set performance goals. Adjusted EBITDA is calculated
as net income attributable to PRA Group, Inc. plus income tax
expense (or less income tax benefit); plus foreign exchange loss
(or less foreign exchange gain); plus interest expense, net; plus
other expense (or less other income); plus depreciation and
amortization; plus impairment of real estate; plus adjustment for
net income attributable to noncontrolling interests; and plus
recoveries applied to negative allowance less changes in expected
recoveries. Adjusted EBITDA is a supplemental measure of
performance that is not required by, or presented in accordance
with, GAAP. The Company presents Adjusted EBITDA because the
Company considers it an important supplemental measure of
operations and financial performance. Management believes Adjusted
EBITDA helps provide enhanced period-to-period comparability of
operations and financial performance and is useful to investors as
other companies in the industry report similar financial measures.
Adjusted EBITDA should not be considered as an alternative to net
income determined in accordance with GAAP. Set forth below is a
reconciliation of net income, the most directly comparable
financial measure calculated and reported in accordance with GAAP,
to Adjusted EBITDA for the last twelve months (LTM) ended
June 30, 2024 and for the year ended
December 31, 2023. The calculation of
Adjusted EBITDA below may not be comparable to the calculation of
similarly titled measures reported by other companies.
|
Reconciliation of
Non-GAAP Financial Measures
|
|
LTM
|
For the Year
Ended
|
|
Adjusted EBITDA for
PRA Group ($ in millions)
|
June 30,
2024
|
December 31,
2023
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
$
4
|
$
(83)
|
|
Adjustments:
|
|
|
|
Income tax
expense/(benefit)
|
12
|
(16)
|
|
Interest expense,
net
|
208
|
181
|
|
Other
expense
|
1
|
2
|
|
Depreciation and
amortization
|
12
|
13
|
|
Impairment of real
estate
|
5
|
5
|
|
Net income attributable
to noncontrolling interests
|
19
|
17
|
|
Recoveries applied to
negative allowance less changes in expected recoveries
|
804
|
888
|
|
Adjusted
EBITDA
|
$
1,065
|
$
1,007
|
In addition, the Company uses return on average tangible equity
(ROATE), which is a supplemental measure of performance that is not
required by, or presented in accordance with, GAAP, to monitor and
evaluate operating performance relative to the Company's equity.
Management believes ROATE is a useful financial measure for
investors in evaluating the effective use of equity, and is an
important component of its long-term shareholder return. Average
tangible equity ("ATE") is defined as average Total stockholders'
equity - PRA Group, Inc. less average goodwill and average other
intangible assets. ROATE is calculated by dividing annualized Net
income/(loss) attributable to PRA Group, Inc. by ATE.
The following table displays the Company's ROATE and provides a
reconciliation of Total stockholders' equity - PRA Group, Inc. as
reported in accordance with GAAP to ATE for the periods indicated
(amounts in thousands, except for ratio data):
|
|
|
|
|
|
Average
Balance
|
|
|
Balance at Period
End
|
|
Second
Quarter
|
|
Year-to-Date
|
|
|
June 30,
2024
|
|
June 30,
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total stockholders'
equity - PRA Group, Inc.
|
|
$ 1,145,463
|
|
$ 1,165,525
|
|
$ 1,137,395
|
|
$ 1,161,934
|
|
$ 1,147,300
|
|
$
1,183,843
|
|
Less:
Goodwill
|
|
415,646
|
|
414,905
|
|
413,746
|
|
417,776
|
|
419,685
|
|
423,824
|
|
Less: Other intangible
assets
|
|
1,597
|
|
1,836
|
|
1,632
|
|
1,835
|
|
1,668
|
|
1,839
|
|
Average tangible
equity
|
|
|
|
|
|
$ 722,017
|
|
$
742,323
|
|
$ 725,947
|
|
$ 758,180
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
|
|
|
|
|
$
21,516
|
|
$
(3,804)
|
|
$
24,991
|
|
$ (62,433)
|
|
Return on average
tangible equity (1)
|
|
|
|
|
|
11.9 %
|
|
(2.0) %
|
|
6.9 %
|
|
(16.5) %
|
|
|
|
(1)
|
Based on
annualized Net income/(loss) attributable to PRA Group,
Inc.
|
Investor Contact:
Najim
Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com
News Media Contact:
Elizabeth
Kersey
Senior Vice President, Communications and Public Policy
(757) 641-0558
Elizabeth.Kersey@PRAGroup.com
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multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-second-quarter-2024-results-302214730.html
SOURCE PRA Group, Inc.