false000118534800011853482024-11-042024-11-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):November 4, 2024
PRA Group, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
Delaware000-5005875-3078675
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
120 Corporate Boulevard
Norfolk, Virginia23502
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(888)772-7326
Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐



Item 2.02 Results of Operations and Financial Condition.

On November 4, 2024, PRA Group, Inc. (the “Company”) issued a press release announcing its third quarter 2024 results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated into this Item 2.02 by reference.

Item 7.01 Regulation FD Disclosure.

The slide presentation being used in connection with the Company’s previously announced November 4, 2024, webcast and conference call to discuss its third quarter 2024 results is available in the Investor Relations section of the Company’s website at https://ir.pragroup.com/events-and-presentations.

None of the information furnished in Item 2.02, Item 7.01 or Exhibit 99.1 of this Form 8-K shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Unless expressly set forth by specific reference in such filings, none of the information furnished in this Form 8-K shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01 Financial Statements and Exhibits
(d)Exhibits
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PRA Group, Inc.
Date: November 4, 2024By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer





pralogoa06a.gif

PRA Group Reports Third Quarter 2024 Results

Transformation in U.S. Business Clearly Visible

Company On Track to Achieve Financial and Operational Targets for 2024; Announces Targets for 2025

NORFOLK, Va., November 4, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2024 ("Q3 2024").

Q3 2024 Highlights
•Net income attributable to PRA Group, Inc. of $27.2 million, or diluted earnings per share of $0.69, including a tax benefit item of $7.7 million, or $0.20 per share.
•Total portfolio purchases of $350.0 million.
•Total cash collections of $477.1 million.
•Record estimated remaining collections (ERC)1 of $7.3 billion.
•Cash efficiency ratio2 of 60.1%.
•Adjusted EBITDA3 for the 12 months ended September 30, 2024 of $1.1 billion.

Three Months Ended Sept 30,Nine Months Ended Sept 30,
($ in thousands, except per share amounts)2024202320242023
Net income/(loss) attributable to PRA Group, Inc.$27,154 $(12,262)$52,145 $(74,695)
Diluted earnings per share$0.69 $(0.31)$1.32 $(1.91)

“Our third quarter financial results reflected strong cash collections, robust portfolio buying, significant revenue increases and solid net income. Over the past 18 months, we have built out a highly experienced senior leadership team, capitalized on the rebound in U.S. portfolio supply, executed on our cash-generating and operational initiatives with intense focus, speed and discipline, and driven the financial and operational turnaround in our U.S. business, while continuing to differentiate ourselves in Europe at a time when certain of our competitors in that region have been under pressure," said Vikram Atal, president and chief executive officer.

"We invested $350 million during the quarter, which helped us achieve record ERC of $7.3 billion. Cash collections grew 14% year-over-year, reflecting both higher portfolio purchases and the positive impact of our operational initiatives. As we enter the fourth quarter, we are on track to exceed our 2024 targets. We are also announcing 2025 targets as we continue to gain momentum in our business and focus on driving growth, profitability, and shareholder value."

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 Source20242023
($ in thousands)Q3Q2Q1Q4Q3
Americas and Australia Core$266,977 $263,828 $256,861 $220,127 $223,714 
Americas Insolvency26,065 26,971 25,209 24,293 27,809 
Europe Core158,242 156,739 145,933 144,361 144,402 
Europe Insolvency25,826 26,344 21,515 21,502 23,639 
Total cash collections$477,110 $473,882 $449,518 $410,283 $419,564 
Cash Collection Source -
Constant Currency-Adjusted20242023
($ in thousands)Q3Q3
Americas and Australia Core$266,977 $218,303 
Americas Insolvency26,065 27,785 
Europe Core158,242 147,597 
Europe Insolvency25,826 24,255 
Total cash collections$477,110 $417,940 

•Total cash collections in Q3 2024 increased 13.7% to $477.1 million compared to $419.6 million in the third quarter of 2023 ("Q3 2023"). The increase was driven by higher cash collections in both the U.S. and Europe. For the nine months ended September 30, 2024, cash collections increased $150.3 million, or 12.0%, compared to the same period last year.
•Total portfolio revenue in Q3 2024 increased 30.5% to $276.7 million compared to $212.1 million in Q3 2023. For the nine months ended September 30, 2024, total portfolio revenue increased 42.9% to $813.1 million compared to $568.9 million in the same period last year.

Three Months Ended Sept 30,Nine Months Ended Sept 30,
($ in thousands)2024202320242023
Portfolio income$216,122 $189,960 $627,468 $562,492 
Recoveries received in excess of forecast$34,158 $18,090 $124,256 $47,276 
Changes in expected future recoveries 26,456 4,066 61,352 (40,896)
Changes in expected recoveries$60,614 $22,156 $185,608 $6,380 
Total portfolio revenue$276,736 $212,116 $813,076 $568,872 

Expenses
•Operating expenses in Q3 2024 increased $18.1 million, or 10.4%, to $191.5 million compared to $173.4 million in Q3 2023.
◦Legal collection costs increased $8.0 million, primarily due to increased investments in our U.S. legal collections channel, which are expected to drive future cash collections growth.
◦Compensation and employee services expenses increased $6.6 million, primarily due to lower compensation accruals and benefits related expenses in Q3 2023 and higher wage costs in the current year period.
◦Legal collection fees increased $4.6 million, primarily due to higher external legal collections in our U.S. Core portfolio.


•For the nine months ended September 30, 2024, operating expenses increased by $49.5 million, or 9.4%, compared to the same period last year, which included higher legal collection costs of $24.5 million related to increased investments in our U.S. legal collections channel.
•Interest expense, net in Q3 2024 was $61.1 million, an increase of $11.6 million, or 23.4%, compared to $49.5 million in Q3 2023, primarily reflecting higher debt balances to support portfolio investments.
•The effective tax rate for the nine months ended September 30, 2024 was 13.7%.

Portfolio Acquisitions
•The Company purchased $350.0 million in portfolios of nonperforming loans in Q3 2024.
•At the end of Q3 2024, the Company had in place estimated forward flow commitments1 of $491.1 million over the next 12 months, comprised of $406.3 million in the Americas and Australia and $84.8 million in Europe.
Portfolio Purchase Source20242023
($ in thousands)Q3Q2Q1Q4Q3
Americas & Australia Core$263,613 $198,761 $174,660 $143,052 $187,554 
Americas Insolvency10,162 26,627 22,156 18,608 44,279 
Europe Core71,507 127,991 43,997 110,780 60,628 
Europe Insolvency4,696 25,990 5,004 12,476 18,722 
Total portfolio acquisitions$349,978 $379,369 $245,817 $284,916 $311,183 

Credit Availability
•Total availability under the Company's credit facilities as of September 30, 2024 was $1.0 billion, comprised of $412.7 million based on current ERC and subject to debt covenants, and $585.9 million of additional availability subject to borrowing base and debt covenants, including advance rates.

Financial and Operational Targets for 2024 and 2025
The Company is on track 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
•8%+ return on average tangible equity2 (up from 6% - 8% previously)

In addition, the Company announces the following financial and operational targets for full year 2025:
•Portfolio investment levels to exceed $1.0 billion
•Cash collections growth of 8% - 10%
•60%+ cash efficiency ratio
•Double-digit 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 November 4, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 29879# until November 11, 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
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.

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.




PRA Group, Inc.
Unaudited Consolidated Income Statements
(Amounts in thousands, except per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues:
Portfolio income$216,122 $189,960 $627,468 $562,492 
Changes in expected recoveries60,614 22,156 185,608 6,380 
Total portfolio revenue276,736 212,116 813,076 568,872 
Other revenue4,741 4,314 8,216 12,264 
Total revenues281,477 216,430 821,292 581,136 
Operating expenses:
Compensation and employee services76,106 69,517 223,944 217,708 
Legal collection fees14,479 9,839 40,353 28,228 
Legal collection costs28,781 20,761 90,746 66,228 
Agency fees21,020 19,436 61,751 54,491 
Outside fees and services20,452 18,858 63,626 62,064 
Communication10,048 9,881 34,203 30,525 
Rent and occupancy4,175 4,426 12,455 13,193 
Depreciation and amortization2,469 3,273 7,826 10,344 
Impairment of real estate— 5,037 — 5,037 
Other operating expenses13,969 12,356 40,792 38,355 
Total operating expenses191,499 173,384 575,696 526,173 
    Income from operations89,978 43,046 245,596 54,963 
Other income and (expense):
Interest expense, net(61,062)(49,473)(168,693)(130,778)
Foreign exchange gain, net10 564 138 984 
Other(676)(500)(836)(1,380)
Income/(loss) before income taxes28,250 (6,363)76,205 (76,211)
Income tax expense/(benefit)(672)1,788 10,416 (15,317)
Net income/(loss)28,922 (8,151)65,789 (60,894)
Adjustment for net income attributable to noncontrolling interests1,768 4,111 13,644 13,801 
Net income/(loss) attributable to PRA Group, Inc.$27,154 $(12,262)$52,145 $(74,695)
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic$0.69 $(0.31)$1.33 $(1.91)
Diluted$0.69 $(0.31)$1.32 $(1.91)
Weighted average number of shares outstanding:
Basic39,421 39,242 39,353 39,155 
Diluted39,492 39,242 39,495 39,155 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
September 30,
2024		December 31,
2023
Assets
Cash and cash equivalents$141,135 $112,528 
Investments61,322 72,404 
Finance receivables, net4,064,467 3,656,598 
Income taxes receivable33,368 27,713 
Deferred tax assets, net88,260 74,694 
Right-of-use assets40,831 45,877 
Property and equipment, net31,835 36,450 
Goodwill423,011 431,564 
Other assets51,841 67,526 
Total assets$4,936,070 $4,525,354 
Liabilities and Equity
Liabilities:
Accounts payable$8,176 $6,325 
Accrued expenses108,926 131,893 
Income taxes payable27,501 17,912 
Deferred tax liabilities, net19,881 17,051 
Lease liabilities45,222 50,300 
Interest-bearing deposits128,594 115,589 
Borrowings3,296,172 2,914,270 
Other liabilities19,806 32,638 
Total liabilities3,654,278 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, 39,426 shares issued and outstanding as of September 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023394 392 
Additional paid-in capital15,415 7,071 
Retained earnings1,541,693 1,489,548 
Accumulated other comprehensive loss(338,620)(329,899)
Total stockholders' equity - PRA Group, Inc.1,218,882 1,167,112 
Noncontrolling interests62,910 72,264 
Total equity1,281,792 1,239,376 
Total liabilities and equity$4,936,070 $4,525,354 






Select Expenses (Income)
Amounts in thousands, pre-tax
Three Months Ended
September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022
Noncash interest expense - amortization of debt issuance costs$3,795 $2,331 $2,200 $2,177 $2,220 $2,384 $2,441 $2,444 
Change in fair value of derivatives(5,706)(5,628)(5,930)(6,734)(6,545)(6,960)(5,470)(3,309)
Amortization of intangibles60 58 60 69 69 68 66 73 
Impairment of real estate— — — 202 5,037 — — — 
Stock-based compensation expense3,251 3,555 3,327 2,952 1,629 2,715 3,799 2,206 




Purchase Price Multiples
as of September 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 $5,754,451 $54,564 298%233%
2014404,117 899,280 30,956 223%204%
2015443,114 921,016 43,600 208%205%
2016455,767 1,094,043 60,873 240%201%
2017532,851 1,218,849 92,454 229%193%
2018653,975 1,520,429 128,845 232%202%
2019581,476 1,311,448 134,279 226%206%
2020435,668 956,953 150,536 220%213%
2021435,846 736,409 261,863 169%191%
2022406,082 708,712 334,578 175%179%
2023622,583 1,222,835 877,849 196%197%
2024638,147 1,339,929 1,261,602 210%210%
Subtotal7,542,348 17,684,354 3,431,999 
Americas Insolvency
1996-20131,266,056 2,503,285 6 198%159%
2014148,420 218,963 30 148%124%
201563,170 88,112 23 139%125%
201691,442 118,378 188 129%123%
2017275,257 358,774 950 130%125%
201897,879 136,385 692 139%127%
2019123,077 167,548 4,005 136%128%
202062,130 91,718 16,018 148%136%
202155,187 74,453 22,486 135%136%
202233,442 47,352 26,688 142%139%
202391,282 119,692 91,017 131%135%
202458,945 87,085 79,949 148%148%
Subtotal2,366,287 4,011,745 242,052 
Total Americas and Australia9,908,635 21,696,099 3,674,051 
Europe Core
2012-201340,742 72,994 1 179%153%
2014773,811 2,584,292 423,498 334%208%
2015411,340 756,321 134,898 184%160%
2016333,090 581,121 156,172 174%167%
2017252,174 369,927 102,638 147%144%
2018341,775 559,571 187,631 164%148%
2019518,610 852,264 323,682 164%152%
2020324,119 574,755 242,053 177%172%
2021412,411 707,823 390,545 172%170%
2022359,447 586,297 445,461 163%162%
2023410,593 693,472 574,464 169%169%
2024251,874 453,608 430,252 180%180%
Subtotal4,429,986 8,792,445 3,411,295 
Europe Insolvency
201410,876 19,038 — 175%129%
201518,973 29,429 — 155%139%
201639,338 57,983 598 147%130%
201739,235 52,046 841 133%128%
201844,908 52,881 2,335 118%123%
201977,218 113,945 12,563 148%130%
2020105,440 159,030 26,032 151%129%
202153,230 74,452 24,736 140%134%
202244,604 62,450 38,756 140%137%
202346,558 64,602 53,683 139%138%
202437,783 54,855 48,388 145%145%
Subtotal518,163 740,711 207,932 
Total Europe4,948,149 9,533,156 3,619,227 
Total PRA Group$14,856,784 $31,229,255 $7,293,278 
(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 September 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
September 30, 2024 (year-to-date)As of September 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$26,786 $10,656 $17,243 $27,899 $16,771 
201410,691 4,303 8,039 12,342 12,019 
201513,258 5,305 11,778 17,083 18,918 
201618,506 9,782 8,634 18,416 21,833 
201730,470 13,521 11,941 25,462 38,195 
201860,243 21,259 25,535 46,794 70,664 
201962,311 24,744 13,609 38,353 75,355 
202070,086 27,464 6,632 34,096 85,017 
202179,282 39,444 (10,559)28,885 136,930 
2022116,142 49,024 (5,628)43,396 202,091 
2023221,800 126,913 7,595 134,508 494,772 
202478,091 60,269 11,125 71,394 630,678 
Subtotal787,666 392,684 105,944 498,628 1,803,243 
Americas Insolvency
1996-2013756 85 672 757 — 
2014216 68 151 219 — 
2015153 24 103 127 13 
2016458 31 363 394 163 
20172,105 153 1,800 1,953 854 
20182,102 98 802 900 653 
201913,129 825 (1,169)(344)3,827 
202013,236 1,961 1,014 2,975 14,760 
202111,963 2,352 679 3,031 19,901 
20228,314 2,370 542 2,912 22,440 
202318,678 8,407 (983)7,424 72,108 
20247,134 4,419 189 4,608 55,878 
Subtotal78,244 20,793 4,163 24,956 190,597 
Total Americas and Australia865,910 413,477 110,107 523,584 1,993,840 
Europe Core
2012-2013789 — 789 789 — 
201475,739 46,494 22,135 68,629 95,353 
201523,089 10,203 4,535 14,738 66,317 
201620,460 9,757 3,067 12,824 88,047 
201713,600 5,048 1,309 6,357 68,268 
201828,500 10,315 4,879 15,194 120,450 
201951,635 16,799 8,537 25,336 218,471 
202038,069 14,275 6,685 20,960 148,879 
202150,687 21,458 5,636 27,094 236,349 
202257,408 22,884 2,696 25,580 280,574 
202378,264 32,685 2,517 35,202 340,067 
202422,674 9,521 2,574 12,095 240,351 
Subtotal460,914 199,439 65,359 264,798 1,903,126 
Europe Insolvency
2014138 — 138 138 — 
2015141 2 113 115 — 
2016659 87 306 393 164 
20171,246 97 44 141 669 
20182,839 207 217 424 2,087 
201910,653 1,083 1,620 2,703 10,971 
202020,081 2,174 2,681 4,855 23,842 
202111,540 2,041 1,546 3,587 21,779 
202211,129 2,907 1,983 4,890 31,794 
20239,057 3,827 449 4,276 42,090 
20246,203 2,127 1,045 3,172 34,105 
Subtotal73,686 14,552 10,142 24,694 167,501 
Total Europe534,600 213,991 75,501 289,492 2,070,627 
Total PRA Group$1,400,510 $627,468 $185,608 $813,076 $4,064,467 
(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 September 30, 2024 exchange rate.







Cash Collections by Year, By Year of Purchase (1)
as of September 30, 2024
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (2)(3)
1996-201320142015201620172018201920202021202220232024Total
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 $26.8 $5,692.7 
2014404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 10.7 859.8 
2015443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 13.3 880.5 
2016455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 18.5 992.3 
2017532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 30.5 1115.6 
2018654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 60.2 1361.4 
2019581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 62.3 1132.9 
2020435.7 — — — — — — — 132.9 284.3 192.0 125.8 70.1 805.1 
2021435.8— — — — — — — — 85.0 177.3 136.8 79.3 478.4 
2022406.1 — — — — — — — — — 67.7 195.4 116.1 379.2 
2023622.5 — — — — — — — — — — 108.5 221.8 330.3 
2024638.1 — — — — — — — — — — — 78.1 78.1 
Subtotal7,542.3 3,618.9 753.0 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.7 787.7 14,106.3 
Americas Insolvency
1996-20131,266.1 1,491.4 421.4 289.9 168.7 85.5 30.3 6.8 3.6 2.2 1.6 1.1 0.8 2,503.3 
2014148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 0.2 218.8 
201563.2 — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.2 88.2 
201691.4 — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.5 119.2 
2017275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.1 357.9 
201897.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.1 135.6 
2019123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 13.1 163.5 
202062.1 — — — — — — — 6.5 16.1 20.4 19.5 13.2 75.7 
202155.2 — — — — — — — — 4.6 17.9 17.5 12.0 52.0 
202233.4 — — — — — — — — — 3.2 9.2 8.3 20.7 
202391.2 — — — — — — — — — — 9.0 18.7 27.7 
202459.0 — — — — — — — — — — — 7.0 7.0 
Subtotal2,366.3 1,491.4 458.4 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.2 78.2 3,769.6 
Total Americas and Australia9,908.6 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 1,075.4 996.9 865.9 17,875.9 
Europe Core
2012-201340.7 27.7 14.2 5.5 3.5 3.3 3.3 2.4 1.9 1.8 1.4 1.0 0.8 66.8 
2014773.8 — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.2 122.2 107.6 75.7 1,896.1 
2015411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 23.1 582.6 
2016333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 20.5 432.0 
2017252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 13.6 247.9 
2018341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 28.5 374.2 
2019518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 51.6 511.6 
2020324.1 — — — — — — — 32.3 91.7 69.0 56.1 38.1 287.2 
2021412.4 — — — — — — — — 48.5 89.9 73.0 50.7 262.1 
2022359.4 — — — — — — — — — 33.9 83.8 57.4 175.1 
2023410.6 — — — — — — — — — — 50.2 78.3 128.5 
2024252.0 — — — — — — — — — — — 22.6 22.6 
Subtotal4,430.0 27.7 167.4 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 460.9 4,986.7 
Europe Insolvency
201410.9 — — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 0.1 17.1 
201519.0 — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.1 26.7 
201639.3 — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.7 61.1 
201739.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.2 49.0 
201844.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 2.8 50.8 
201977.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 10.7 99.2 
2020105.4 — — — — — — — 6.0 34.6 34.1 29.7 20.1 124.5 
202153.2 — — — — — — — — 5.5 14.4 14.7 11.5 46.1 
202244.6 — — — — — — — — — 4.5 12.4 11.1 28.0 
202346.7 — — — — — — — — — — 4.2 9.1 13.3 
202437.8 — — — — — — — — — — — 6.3 6.3 
Subtotal518.2 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 73.7 522.1 
Total Europe4,948.2 27.7 167.4 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 534.6 5,508.8 
Total PRA Group$14,856.8 $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 $1,400.5 $23,384.7 
(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 (or loss) 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 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 its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational 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 September 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
LTMFor the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)September 30, 2024December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.$43 $(83)
Adjustments:
Income tax expense/(benefit)10 (16)
Foreign exchange loss1 — 
Interest expense, net220 181 
Other expense1 2 
Depreciation and amortization11 13 
Impairment of real estate— 5 
Net income attributable to noncontrolling interests17 17 
Recoveries applied to negative allowance less changes in expected recoveries797 888 
Adjusted EBITDA$1,100 $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 as of Period EndThird QuarterYear-to-Date
September 30, 2024September 30, 20232024202320242023
Total stockholders' equity - PRA Group, Inc.$1,218,882 $1,115,590 $1,182,173 $1,140,558 $1,165,196 $1,166,780 
Less: Goodwill423,011 412,513 419,329 413,709 420,517 420,997 
Less: Other intangible assets1,620 1,670 1,609 1,753 1,656 1,797 
Average tangible equity$761,235 $725,096 $743,023 $743,986 
Net income/(loss) attributable to PRA Group, Inc.$27,154 $(12,262)$52,145 $(74,695)
Return on average tangible equity (1)
14.3%(6.8)%9.4%(13.4)%

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
1.Based on annualized Net income/(loss) attributable to PRA Group, Inc.
v3.24.3
Cover Page
Nov. 04, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 04, 2024
Entity Registrant Name PRA Group, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-50058
Entity Tax Identification Number 75-3078675
Entity Address, Address Line One 120 Corporate Boulevard
Entity Address, City or Town Norfolk,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23502
City Area Code (888)
Local Phone Number 772-7326
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol PRAA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001185348
PRA (NASDAQ:PRAA)
Historical Stock Chart
From Mar 2025 to Apr 2025 Click Here for more PRA Charts.
PRA (NASDAQ:PRAA)
Historical Stock Chart
From Apr 2024 to Apr 2025 Click Here for more PRA Charts.