false000118534800011853482023-08-072023-08-07

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):August 7, 2023
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 August 7, 2023, PRA Group, Inc. (the “Company”) issued a press release announcing its second quarter 2023 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 August 7, 2023 webcast and conference call to discuss its second quarter 2023 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: August 7, 2023By:/s/ Peter M. Graham
Peter M. Graham
Executive Vice President and Chief Financial Officer





pralogoa06.gif

PRA Group Reports Second Quarter 2023 Results

NORFOLK, Va., August 7, 2023 - 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 2023 ("Q2 2023").

Q2 2023 Highlights
•Total portfolio purchases increased 41.7% year-over-year to $327.8 million.
•Total cash collections were $419.3 million.
•Estimated remaining collections (ERC)1 of $5.9 billion.
•Cash efficiency ratio2 of 61.2%.
•Diluted earnings per share were $(0.10).
•Debt to Adjusted EBITDA3 for the 12 months ended June 30, 2023 was 2.76x.
•Available capacity under the Company's credit facilities of $1.4 billion; $332.5 million after considering borrowing base restrictions.

Three Months Ended June 30,Six Months Ended June 30,
($ in thousands, except per share amounts)2023202220232022
Net income/(loss) attributable to PRA Group, Inc.$(3,804)$36,484 $(62,433)$76,456 
Diluted earnings per share$(0.10)$0.91 $(1.60)$1.88 

“The second quarter was an important and positive step in the right direction, as we remain focused on driving organic growth, optimizing business processes, and further capitalizing on the increase in the supply of portfolios with improved pricing,” said Vikram Atal, president and chief executive officer. "Cash collections exceeded our internal expectations, primarily driven by the strength of our European operations. During the quarter, we purchased $328 million of portfolios globally, which represents a record amount for a second quarter in the Company's history. The recent improvements in U.S. supply, pricing, and returns have enabled us to gradually increase our investment levels in that market, while investments in Europe remain healthy. Our balance sheet remains strong, and we have the funding capacity to continue growing ERC. Overall, we believe we are laying the foundation for a stronger, profitable, and higher performing PRA."

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 Source20232022
($ in thousands)Q2Q1Q4Q3Q2
Americas and Australia Core$220,886 $227,960 $205,619 $225,775 $244,377 
Americas Insolvency26,384 25,751 27,971 31,911 34,278 
Europe Core149,324 134,005 134,016 132,072 142,470 
Europe Insolvency22,725 23,568 24,051 22,586 22,935 
Total Cash Collections$419,319 $411,284 $391,657 $412,344 $444,060 
Cash Collection Source -
Constant Currency-Adjusted20232022
($ in thousands)Q2Q2
Americas and Australia Core$220,886 $243,506 
Americas Insolvency26,384 34,253 
Europe Core149,324 141,056 
Europe Insolvency22,725 22,882 
Total Cash Collections$419,319 $441,697 

•Total cash collections in Q2 2023 decreased 5.6% (or 5.1% on a constant currency-adjusted basis) to $419.3 million, compared to $444.1 million in the second quarter of 2022 ("Q2 2022"). The decrease was primarily due to a 23.9% decrease in U.S. call center and other collections. This decrease was partially offset by a 58.6% increase in Other Americas and Australia Core cash collections. For the six months ended June 30, 2023, cash collections decreased $94.4 million compared to the same period last year.
•Total portfolio revenue in Q2 2023 was $205.4 million compared to $250.6 million in Q2 2022. For the six months ended June 30, 2023, total portfolio revenue was $356.8 million compared to $488.0 million in the same period last year.

Expenses
•Operating expenses in Q2 2023 decreased by $10.9 million, or 6.2%, compared to Q2 2022. The decrease was primarily driven by:
◦a $9.2 million decrease in outside fees and services, primarily due to higher corporate legal expenses in the prior year; and
◦an $8.3 million decrease in compensation and employee services, primarily due to lower compensation accruals and lower healthcare expenses compared to the prior year.
•This decrease was partially offset by:
◦a $3.8 million increase in legal collection costs; and
◦a $2.9 million increase in agency fees, driven by higher cash collections in South America
•For the six months ended June 30, 2023, operating expenses increased by $9.6 million to $352.8 million, compared to $343.2 million in the same period last year.
•The effective tax rate for the six months ended June 30, 2023 was 24.5%.

Portfolio Acquisitions
•The Company purchased $327.8 million in portfolios of nonperforming loans in Q2 2023, an increase of 41.7% compared to Q2 2022.



•At the end of Q2 2023, the Company had in place maximum forward flow commitments1 of up to $557.7 million, comprised of $398.4 million in the Americas and Australia and $159.3 million in Europe.
Portfolio Purchase Source20232022
($ in thousands)Q2Q1Q4Q3Q2
Americas and Australia Core$171,440 $116,867 $118,581 $100,780 $99,962 
Americas Insolvency12,189 15,701 8,967 8,988 6,369 
Europe Core136,834 90,454 140,011 59,426 123,814 
Europe Insolvency7,296 7,203 20,535 13,910 1,202 
Total Portfolio Acquisitions$327,759 $230,225 $288,094 $183,104 $231,347 

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. Eastern time 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 844-835-9982 in the U.S. or 412-317-5267 outside the U.S., and ask the operator for the PRA Group conference call. To listen to a replay of the call, either visit the same website until August 7, 2024, or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 5942652 until August 14, 2023.

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
1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices.

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 June 30,Six Months Ended June 30,
2023202220232022
Revenues:
Portfolio income$184,290 $194,009 $372,532 $401,541 
Changes in expected recoveries21,136 56,567 (15,776)86,481 
Total portfolio revenue205,426 250,576 356,756 488,022 
Other revenue3,810 7,686 7,950 10,845 
Total revenues209,236 258,262 364,706 498,867 
Operating expenses:
Compensation and employee services65,788 74,137 148,191 145,233 
Legal collection fees9,551 9,554 18,389 20,427 
Legal collection costs21,522 17,746 45,467 34,303 
Agency fees17,677 14,826 35,055 32,214 
Outside fees and services18,262 27,493 43,206 46,871 
Communication10,117 9,528 20,644 22,111 
Rent and occupancy4,319 4,633 8,767 9,620 
Depreciation and amortization3,482 3,865 7,071 7,643 
Other operating expenses12,957 12,743 25,999 24,741 
Total operating expenses163,675 174,525 352,789 343,163 
   Income from operations45,561 83,737 11,917 155,704 
Other income and (expense):
Interest expense, net(43,022)(31,562)(81,305)(63,310)
Foreign exchange gain, net429 1,319 420 787 
Other(230)(181)(880)(671)
Income/(loss) before income taxes2,738 53,313 (69,848)92,510 
Income tax expense/(benefit)1,578 14,177 (17,105)18,756 
Net income/(loss)1,160 39,136 (52,743)73,754 
Adjustment for net income/(loss) attributable to noncontrolling interests4,964 2,652 9,690 (2,702)
Net income/(loss) attributable to PRA Group, Inc.$(3,804)$36,484 $(62,433)$76,456 
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic$(0.10)$0.92 $(1.60)$1.90 
Diluted$(0.10)$0.91 $(1.60)$1.88 
Weighted average number of shares outstanding:
Basic39,190 39,779 39,111 40,278 
Diluted39,190 39,900 39,111 40,602 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
June 30,
2023		December 31,
2022
Assets
Cash and cash equivalents$111,375 $83,376 
Investments76,169 79,948 
Finance receivables, net3,424,548 3,295,008 
Income taxes receivable36,327 31,774 
Deferred tax assets, net56,758 56,908 
Right-of-use assets51,135 54,506 
Property and equipment, net45,874 51,645 
Goodwill414,905 435,921 
Other assets103,768 86,588 
Total assets$4,320,859 $4,175,674 
Liabilities and Equity
Liabilities:
Accounts payable$6,345 $7,329 
Accrued expenses118,877 111,395 
Income taxes payable18,658 25,693 
Deferred tax liabilities, net18,463 42,918 
Lease liabilities55,723 59,384 
Interest-bearing deposits99,318 112,992 
Borrowings2,739,667 2,494,858 
Other liabilities24,134 34,355 
Total liabilities3,081,185 2,888,924 
Equity:
Preferred stock, $0.01 par value, 2,000 shares authorized, 0 shares issued and outstanding— — 
Common stock, $0.01 par value, 100,000 shares authorized, 39,242 shares issued and outstanding at June 30, 2023; 100,000 shares authorized, 38,980 shares issued and outstanding at December 31, 2022392 390 
Additional paid-in capital2,541 2,172 
Retained earnings1,510,592 1,573,025 
Accumulated other comprehensive loss(348,000)(347,926)
Total stockholders' equity - PRA Group, Inc.1,165,525 1,227,661 
Noncontrolling interest74,149 59,089 
Total equity1,239,674 1,286,750 
Total liabilities and equity$4,320,859 $4,175,674 






Select Expenses (Income)
Amounts in thousands, pre-tax
Three Months Ended
June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		September 30,
2021
Noncash interest expense - amortization of debt issuance costs2,384 2,441 2,444 2,555 2,471 2,627 2,455 2,406 
Change in fair value of derivatives(6,960)(5,470)(3,309)(1,042)1,525 2,726 3,115 2,982 
Amortization of intangibles68 66 73 73 77 83 (269)104 
Stock-based compensation expense2,715 3,799 2,206 3,101 3,849 3,891 3,470 4,317 



Purchase Price Multiples
as of June 30, 2023
Amounts in thousands
Purchase Period
Purchase Price (2)(3)
Total Estimated Collections (4)
Estimated Remaining Collections (5)
Current Purchase Price Multiple
Original Purchase Price Multiple (6)
Americas and Australia Core
1996-2012$1,541,896 $4,801,032 $35,742 311%238%
2013390,826 908,961 15,139 233%211%
2014404,117 875,120 23,495 217%204%
2015443,114 898,649 41,331 203%205%
2016455,767 1,075,028 75,099 236%201%
2017532,851 1,196,768 121,179 225%193%
2018653,975 1,463,790 175,567 224%202%
2019581,476 1,292,608 228,655 222%206%
2020435,668 947,717 266,397 218%213%
2021435,846 779,861 454,830 179%191%
2022406,082 717,643 565,409 177%179%
2023290,363 543,178 521,588 187%187%
Subtotal6,571,981 15,500,355 2,524,431 
Americas Insolvency
1996-20121,038,223 2,146,538 141 207%165%
2013227,834 355,648 71 156%133%
2014148,420 218,724 198 147%124%
201563,170 87,934 144 139%125%
201691,442 117,589 300 129%123%
2017275,257 356,042 2,196 129%125%
201897,879 136,240 7,243 139%127%
2019123,077 168,530 31,391 137%128%
202062,130 90,253 37,232 145%136%
202155,187 73,503 41,973 133%136%
202233,442 46,367 39,066 139%139%
202327,890 37,711 36,646 135%135%
Subtotal2,243,951 3,835,079 196,601 
Total Americas and Australia8,815,932 19,335,434 2,721,032 
Europe Core
201220,409 44,201 — 217%187%
201320,334 27,152 1 134%119%
2014 (1)
773,811 2,376,921 364,157 307%208%
2015411,340 728,356 141,410 177%160%
2016333,090 569,221 174,415 171%167%
2017252,174 358,126 111,139 142%144%
2018341,775 542,585 211,437 159%148%
2019518,610 811,906 359,355 157%152%
2020324,119 557,541 280,147 172%172%
2021412,411 696,596 453,152 169%170%
2022359,447 579,891 512,047 161%162%
2023229,639 380,036 367,155 165%165%
Subtotal3,997,159 7,672,532 2,974,415 
Europe Insolvency
2014 (1)
10,876 18,759 — 172%129%
201518,973 29,137 29 154%139%
201639,338 57,203 879 145%130%
201739,235 51,448 2,859 131%128%
201844,908 52,496 7,939 117%123%
201977,218 111,099 27,995 144%130%
2020105,440 156,603 56,480 149%129%
202153,230 71,526 39,592 134%134%
202244,604 60,962 52,786 137%137%
202314,903 20,194 19,764 136%136%
Subtotal448,725 629,427 208,323 
Total Europe4,445,884 8,301,959 3,182,738 
Total PRA Group$13,261,816 $27,637,393 $5,903,770 
(1)    Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Form 10-K")).
(2)Includes the acquisition date finance receivables portfolios that were 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 portfolio are presented at the year-end exchange rate for the respective year of purchase.
(4)Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.
(5)Non-U.S. amounts are presented at the June 30, 2023 exchange rate.
(6)The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.


Portfolio Financial Information
Year-to-date as of June 30, 2023
Amounts in thousands
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Change in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables as of June 30, 2023 (3)
Americas and Australia Core
1996-2012$9,407 $5,726 $2,165 $7,891 $8,736 
20135,018 2,074 1,691 3,765 6,184 
20146,072 2,647 1,592 4,239 8,721 
20157,298 4,546 (1,742)2,804 16,768 
201612,881 8,924 (2,923)6,001 24,568 
201724,012 14,002 (7,329)6,673 50,764 
201851,716 21,384 1,099 22,483 96,987 
201962,005 27,748 (3,330)24,418 123,803 
202071,291 31,280 (6,902)24,378 148,339 
202176,537 43,081 (28,614)14,467 240,168 
2022101,232 51,627 959 52,586 339,760 
202321,377 12,774 3,748 16,522 285,203 
Subtotal448,846 225,813 (39,586)186,227 1,350,001 
Americas Insolvency
1996-2012400 145 258 403 — 
2013142 71 71 142 — 
2014245 148 51 199 — 
2015178 69 44 113 74 
2016451 82 138 220 249 
20172,978 291 680 971 1,963 
20188,083 780 (1,051)(271)6,851 
201915,448 1,902 531 2,433 29,200 
202010,026 2,334 561 2,895 32,162 
20219,004 2,508 614 3,122 34,969 
20224,115 1,997 270 2,267 30,625 
20231,065 795 300 1,095 27,709 
Subtotal52,135 11,122 2,467 13,589 163,802 
Total Americas and Australia500,981 236,935 (37,119)199,816 1,513,803 
Europe Core
2012365 — 365 365 — 
2013181 — 181 181 — 
2014 (1)
55,192 35,710 7,687 43,397 102,679 
201517,749 8,435 275 8,710 77,966 
201615,146 7,950 (274)7,676 102,601 
201710,432 3,863 (734)3,129 76,915 
201821,311 7,788 1,290 9,078 140,472 
201938,976 12,329 9,440 21,769 246,350 
202029,367 11,374 (96)11,278 172,695 
202137,411 17,015 (4,298)12,717 273,361 
202244,445 17,762 (207)17,555 320,550 
202312,754 4,091 2,628 6,719 222,815 
Subtotal283,329 126,317 16,257 142,574 1,736,404 
Europe Insolvency
2014 (1)
128 — 128 128 — 
2015256 18 157 175 26 
2016875 149 214 363 651 
20172,461 162 491 653 2,663 
20183,909 397 (82)315 7,290 
20199,275 1,401 543 1,944 24,764 
202015,653 2,559 3,104 5,663 50,125 
20217,343 1,907 187 2,094 33,095 
20225,969 2,386 143 2,529 40,826 
2023424 301 201 502 14,901 
Subtotal46,293 9,280 5,086 14,366 174,341 
Total Europe329,622 135,597 21,343 156,940 1,910,745 
Total PRA Group$830,603 $372,532 $(15,776)$356,756 $3,424,548 
(1)    Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our 2022 Form 10-K).
(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, 2023 exchange rate.









Cash Collections by Year, By Year of Purchase (1)
as of June 30, 2023
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (3)(4)
1996-201220132014201520162017201820192020202120222023Total
Americas and Australia Core
1996-2012$1,541.9 $2,962.4 $554.9 $412.5 $280.3 $178.9 $118.1 $83.8 $62.9 $41.5 $29.9 $23.5 $9.4 $4,758.1 
2013390.8 — 101.6 247.9 194.0 120.8 78.9 56.5 36.9 23.2 16.7 12.5 5.0 894.0 
2014404.1 — — 92.7 253.5 170.3 114.2 82.2 55.3 31.9 22.3 15.0 6.1 843.5 
2015443.1 — — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 7.3 860.4 
2016455.8 — — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 12.9 961.8 
2017532.9 — — — — — 107.3 278.7 256.5 192.5 130.0 76.3 24.0 1065.3 
2018654.0 — — — — — — 122.7 361.9 337.7 239.9 146.1 51.7 1260.0 
2019581.5 — — — — — — — 143.8 349.0 289.8 177.7 62.0 1,022.3 
2020435.7— — — — — — — — 132.9 284.3 192.0 71.3 680.5 
2021435.9 — — — — — — — — — 85.0 177.3 76.5 338.8 
2022406.1 — — — — — — — — — — 67.7 101.2 168.9 
2023290.4 — — — — — — — — — — — 21.4 21.4 
Subtotal6,572.2 2,962.4 656.5 753.1 844.8 837.1 860.9 945.1 1,141.5 1,271.8 1,207.0 946.0 448.8 12,875.0 
Americas Insolvency
1996-20121,038.2 1,021.6 417.3 338.8 208.3 105.4 37.7 8.3 3.9 2.3 1.4 1.1 0.4 2,146.5 
2013227.8 — 52.5 82.6 81.7 63.4 47.8 22.0 2.9 1.3 0.8 0.5 0.1 355.6 
2014148.4 — — 37.1 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.2 218.5 
201563.2 — — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.2 87.9 
201691.4 — — — — 18.9 30.4 25.1 19.9 14.4 7.4 1.8 0.5 118.4 
2017275.3 — — — — — 49.1 97.3 80.9 58.8 44.0 20.8 3.0 353.9 
201897.9 — — — — — — 6.7 27.4 30.5 31.6 24.6 8.1 128.9 
2019123.1 — — — — — — — 13.5 31.4 39.1 37.8 15.4 137.2 
202062.1 — — — — — — — — 6.5 16.1 20.4 10.0 53.0 
202155.2 — — — — — — — — — 4.6 17.9 9.0 31.5 
202233.4 — — — — — — — — — — 3.2 4.1 7.3 
202327.9 — — — — — — — — — — — 1.1 1.1 
Subtotal2,243.9 1,021.6 469.8 458.5 344.3 249.9 222.5 208.0 181.0 155.3 147.4 129.4 52.1 3,639.8 
Total Americas and Australia8,816.1 3,984.0 1,126.3 1,211.6 1,189.1 1,087.0 1,083.4 1,153.1 1,322.5 1,427.1 1,354.4 1,075.4 500.9 16,514.8 
Europe Core
201220.4 11.6 9.0 5.6 3.2 2.2 2.0 2.0 1.5 1.2 1.2 0.9 0.4 40.8 
201320.3 — 7.1 8.5 2.4 1.3 1.2 1.3 0.9 0.7 0.7 0.5 0.2 24.8 
2014 (2)
773.8 — — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.3 122.2 55.2 1,768.1 
2015411.3 — — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 17.7 543.4 
2016333.1 — — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 15.1 396.9 
2017252.2 — — — — — 17.9 56.0 44.1 36.1 34.8 25.2 10.4 224.5 
2018341.8 — — — — — — 24.3 88.7 71.3 69.1 50.7 21.3 325.4 
2019518.6 — — — — — — — 48.0 125.7 121.4 89.8 39.0 423.9 
2020324.1 — — — — — — — — 32.3 91.7 69.1 29.4 222.5 
2021412.4 — — — — — — — — — 48.5 89.9 37.4 175.8 
2022359.5 — — — — — — — — — — 33.9 44.4 78.3 
2023229.6 — — — — — — — — — — — 12.8 12.8 
Subtotal3,997.1 11.6 16.1 167.3 343.4 390.6 407.0 443.4 480.2 519.7 614.8 559.8 283.3 4,237.2 
Europe Insolvency
2014 (2)
10.9 — — — 4.3 3.9 3.2 2.6 1.6 0.8 0.3 0.2 0.1 17.0 
201519.0 — — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.7 0.3 26.6 
201639.3 — — — — 6.2 12.7 12.9 10.7 8.0 6.0 2.7 0.9 60.1 
201739.2 — — — — — 1.2 7.9 9.2 9.8 9.4 6.5 2.5 46.5 
201844.9 — — — — — — 0.6 8.4 10.3 11.7 9.8 3.9 44.7 
201977.2 — — — — — — — 5.0 21.1 23.9 21.0 9.3 80.3 
2020105.4 — — — — — — — — 6.1 34.7 34.1 15.7 90.6 
202153.2 — — — — — — — — — 5.5 14.4 7.3 27.2 
202244.6 — — — — — — — — — — 4.5 6.0 10.5 
202314.9 — — — — — — — — — — — 0.4 0.4 
Subtotal448.6 — — — 7.3 14.5 22.1 28.8 38.8 59.0 93.1 93.9 46.4 403.9 
Total Europe4,445.7 11.6 16.1 167.3 350.7 405.1 429.1 472.2 519.0 578.7 707.9 653.7 329.7 4,641.1 
Total PRA Group$13,261.8 $3,995.6 $1,142.4 $1,378.9 $1,539.8 $1,492.1 $1,512.5 $1,625.3 $1,841.5 $2,005.8 $2,062.3 $1,729.1 $830.6 $21,155.9 
(1)Non-U.S. amounts are presented using the average exchange rates during the cash collection period.
(2)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our 2022 Form 10-K).
(3)Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(4)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

PRA Group, Inc. 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; less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; 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. PRA Group, Inc. 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, 2023 and for the year ended December 31, 2022. 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)June 30, 2023December 31, 2022
Net income/(loss) attributable to PRA Group, Inc.$(22)$117 
Adjustments:
Income tax expense1 37 
Foreign exchange gains(1)(1)
Interest expense, net149 131 
Other expense1 1 
Depreciation and amortization15 15 
Adjustment for net income attributable to noncontrolling interests13 1 
Recoveries applied to negative allowance less Changes in expected recoveries837 806 
Adjusted EBITDA$993 $1,107 

Additionally, the Company evaluates its business using certain ratios that use Adjusted EBITDA. Debt to Adjusted EBITDA is calculated by dividing borrowings by Adjusted EBITDA. The following table reflects the Company's Debt to Adjusted EBITDA for the LTM as of June 30, 2023 and for the year ended December 31, 2022 ($ in millions):

Debt to Adjusted EBITDA
LTMFor the Year Ended
June 30, 2023December 31, 2022
Borrowings$2,740 $2,495 
LTM Adjusted EBITDA993 1,107 
Debt to LTM Adjusted EBITDA2.76 2.25 



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) 431-3398
Elizabeth.Kersey@PRAGroup.com

v3.23.2
Cover Page
Aug. 07, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2023
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 Apr 2024 to May 2024 Click Here for more PRA Charts.
PRA (NASDAQ:PRAA)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more PRA Charts.