NORFOLK, Va.,
Nov. 6,
2023 /PRNewswire/ -- 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 2023 ("Q3 2023").
Q3 2023 Highlights
- Total portfolio purchases increased 69.9% year-over-year to
$311.2 million; $231.8 million of portfolio purchases in the
Americas and Australia, which
represents the highest quarterly investment since 2017.
- Total cash collections were $419.6
million.
- Estimated remaining collections (ERC)1 were
$6.0 billion, growing for the second
consecutive quarter.
- Cash efficiency ratio2 of 58.9%.
- Diluted earnings per share were $(0.31). This includes a $5.0 million, or $0.10 per share, non-cash impairment charge
associated with the Company's decision to cease call center
operations at one of its owned regional offices in the U.S.
- Debt to Adjusted EBITDA3 for the 12 months ended
September 30, 2023 was 2.84x.
- Total availability under the Company's credit facilities as of
September 30, 2023 was $1.3 billion, comprised of $277.8 million based on current ERC and
$1.1 billion of additional
availability subject to debt covenants, including advance
rates.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Sept 30,
|
|
Nine Months Ended
Sept 30,
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income/(loss)
attributable to PRA Group, Inc.
|
|
$
(12,262)
|
|
$
24,732
|
|
$
(74,695)
|
|
$
101,188
|
Diluted earnings per
share
|
|
$
(0.31)
|
|
$
0.63
|
|
$
(1.91)
|
|
$
2.52
|
|
|
|
|
|
|
|
|
|
"I am highly encouraged by the scope and intensity of our
initiatives to optimize our U.S. business, which expanded and
accelerated through the third quarter," said Vikram Atal, president and chief executive
officer. "Total portfolio purchases of $311
million in the quarter were up 70% year-over-year,
representing one of the highest buying quarters in our history, and
were accompanied by improved pricing that reflects current market
conditions. Cash collections exceeded expectations, led by
operational results in Brazil and
Europe, as well as modest
overperformance in the U.S. In addition, operating expenses
remained carefully controlled. These developments, alongside the
tailwind of a continuation of increased portfolio supply in the
U.S. and our strong and diversified positioning across markets in
Europe, provide a strong framework
to deliver significantly improved results in 2024."
1.
|
Refers to the sum of
all future projected cash collections on the Company's
nonperforming loan portfolios.
|
2.
|
Calculated by dividing
cash receipts less operating expenses by cash receipts. Cash
receipts refers to cash collections on the Company's nonperforming
loan portfolios, fees and revenue recognized from the Company's
class action claims recovery services.
|
3.
|
A reconciliation of net
income, the most directly comparable financial measure calculated
and reported in accordance with GAAP, to Adjusted EBITDA can be
found at the end of this press release.
|
Cash Collections and Revenues
The following table presents cash collections by quarter and by
source on an as reported and constant currency-adjusted basis:
|
|
|
|
|
|
|
|
|
|
|
Cash Collection
Source
|
|
2023
|
|
2022
|
($ in
thousands)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
Americas and Australia
Core
|
|
$
223,714
|
|
$
220,886
|
|
$
227,960
|
|
$
205,619
|
|
$
225,775
|
Americas
Insolvency
|
|
27,809
|
|
26,384
|
|
25,751
|
|
27,971
|
|
31,911
|
Europe Core
|
|
144,402
|
|
149,324
|
|
134,005
|
|
134,016
|
|
132,072
|
Europe
Insolvency
|
|
23,639
|
|
22,725
|
|
23,568
|
|
24,051
|
|
22,586
|
Total Cash
Collections
|
|
$
419,564
|
|
$
419,319
|
|
$
411,284
|
|
$
391,657
|
|
$
412,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Collection
Source -
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency-Adjusted
|
|
2023
|
|
|
|
|
|
|
|
2022
|
($ in
thousands)
|
|
Q3
|
|
|
|
|
|
|
|
Q3
|
Americas and Australia
Core
|
|
$
223,714
|
|
|
|
|
|
|
|
$
227,432
|
Americas
Insolvency
|
|
27,809
|
|
|
|
|
|
|
|
31,900
|
Europe Core
|
|
144,402
|
|
|
|
|
|
|
|
140,472
|
Europe
Insolvency
|
|
23,639
|
|
|
|
|
|
|
|
24,315
|
Total Cash
Collections
|
|
$
419,564
|
|
|
|
|
|
|
|
$
424,119
|
|
|
|
|
|
|
|
|
|
|
|
- Total cash collections in Q3 2023 increased 1.8% (or decreased
1.1% on a constant currency-adjusted basis) to $419.6 million compared to $412.3 million in the third quarter of 2022 ("Q3
2022"). The increase was primarily due to an increase in
collections in Brazil and
Europe. For the nine months ended
September 30, 2023, cash collections
decreased $87.2 million compared to
the same period last year.
- Total portfolio revenue in Q3 2023 was $212.1 million compared to $234.2 million in Q3 2022. For the nine months
ended September 30, 2023, total
portfolio revenue was $568.9 million
compared to $722.2 million in the
same period last year due to lower portfolio purchases in 2021 and
2022.
Expenses
- Operating expenses in Q3 2023 decreased by $0.6 million, or 0.4%, to $173.4 million compared to $174.0 million in Q3 2022. This included a
$5.0 million non-cash impairment
charge associated with the Company's previously announced decision
to cease call center operations at one of its owned regional
offices in the U.S. Excluding this non-cash impairment charge,
operating expenses would have been $168.4
million.
- For the nine months ended September 30,
2023, operating expenses increased by $9.0 million to $526.2
million, compared to $517.2
million in the same period last year.
- The effective tax benefit rate for the nine months ended
September 30, 2023 was 20.1%.
Portfolio Acquisitions
- The Company purchased $311.2
million in portfolios of nonperforming loans in Q3
2023, an increase of 69.9% compared to Q3 2022.
- At the end of Q3 2023, the Company had in place maximum forward
flow commitments1 of up to $538.0 million, comprised of $356.4 million in the Americas and
Australia and $181.6 million in Europe.
1.
|
Contractual agreements
with sellers of nonperforming loans that allow for the purchase of
nonperforming portfolios at pre-established prices. These amounts
are based on sellers' estimates of future forward flow sales and
are dependent on actual delivery compared to these estimates.
Accordingly, amounts purchased under these agreements may vary and
are often less than the maximum amounts.
|
Portfolio Purchase
Source
|
|
2023
|
|
2022
|
($ in
thousands)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
Americas and Australia
Core
|
|
$
187,554
|
|
$
171,440
|
|
$
116,867
|
|
$
118,581
|
|
$
100,780
|
Americas
Insolvency
|
|
44,279
|
|
12,189
|
|
15,701
|
|
8,967
|
|
8,988
|
Europe Core
|
|
60,628
|
|
136,834
|
|
90,454
|
|
140,011
|
|
59,426
|
Europe
Insolvency
|
|
18,722
|
|
7,296
|
|
7,203
|
|
20,535
|
|
13,910
|
Total Portfolio
Acquisitions
|
|
$
311,183
|
|
$
327,759
|
|
$
230,225
|
|
$
288,094
|
|
$
183,104
|
|
|
|
|
|
|
|
|
|
|
|
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 November 6, 2024,
or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S.
and use access code 7678442 until November
13, 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 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Portfolio
income
|
$
189,960
|
|
$
185,853
|
|
$
562,492
|
|
$
587,394
|
Changes in expected
recoveries
|
22,156
|
|
48,336
|
|
6,380
|
|
134,817
|
Total portfolio
revenue
|
212,116
|
|
234,189
|
|
568,872
|
|
722,211
|
Other
revenue
|
4,314
|
|
10,618
|
|
12,264
|
|
21,463
|
Total
revenues
|
216,430
|
|
244,807
|
|
581,136
|
|
743,674
|
Operating
expenses:
|
|
|
|
|
|
|
|
Compensation and
employee services
|
69,517
|
|
70,382
|
|
217,708
|
|
215,615
|
Legal collection
fees
|
9,839
|
|
8,963
|
|
28,228
|
|
29,390
|
Legal collection
costs
|
20,761
|
|
23,391
|
|
66,228
|
|
57,694
|
Agency fees
|
19,436
|
|
15,160
|
|
54,491
|
|
47,374
|
Outside fees and
services
|
18,858
|
|
24,618
|
|
62,064
|
|
71,489
|
Communication
|
9,881
|
|
9,951
|
|
30,525
|
|
32,062
|
Rent and
occupancy
|
4,426
|
|
4,669
|
|
13,193
|
|
14,289
|
Depreciation and
amortization
|
3,273
|
|
3,741
|
|
10,344
|
|
11,384
|
Impairment of real
estate
|
5,037
|
|
—
|
|
5,037
|
|
—
|
Other operating
expenses
|
12,356
|
|
13,144
|
|
38,355
|
|
37,885
|
Total operating
expenses
|
173,384
|
|
174,019
|
|
526,173
|
|
517,182
|
Income from operations
|
43,046
|
|
70,788
|
|
54,963
|
|
226,492
|
Other income and
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(49,473)
|
|
(32,455)
|
|
(130,778)
|
|
(95,765)
|
Foreign exchange gain,
net
|
564
|
|
4
|
|
984
|
|
791
|
Other
|
(500)
|
|
(83)
|
|
(1,380)
|
|
(754)
|
Income/(loss) before
income taxes
|
(6,363)
|
|
38,254
|
|
(76,211)
|
|
130,764
|
Income tax
expense/(benefit)
|
1,788
|
|
11,072
|
|
(15,317)
|
|
29,828
|
Net
income/(loss)
|
(8,151)
|
|
27,182
|
|
(60,894)
|
|
100,936
|
Adjustment for net
income/(loss)
attributable to noncontrolling interests
|
4,111
|
|
2,450
|
|
13,801
|
|
(252)
|
Net income/(loss)
attributable to PRA
Group, Inc.
|
$
(12,262)
|
|
$
24,732
|
|
$
(74,695)
|
|
$
101,188
|
Net income/(loss) per
common share attributable to PRA
Group, Inc.:
|
|
|
|
|
|
|
|
Basic
|
$
(0.31)
|
|
$
0.63
|
|
$
(1.91)
|
|
$
2.54
|
Diluted
|
$
(0.31)
|
|
$
0.63
|
|
$
(1.91)
|
|
$
2.52
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
39,242
|
|
39,018
|
|
39,155
|
|
39,858
|
Diluted
|
39,242
|
|
39,170
|
|
39,155
|
|
40,125
|
PRA Group,
Inc. Consolidated Balance Sheets (Amounts in
thousands)
|
|
|
(unaudited)
|
|
|
|
September
30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
105,172
|
|
$
83,376
|
Investments
|
74,729
|
|
79,948
|
Finance receivables,
net
|
3,460,804
|
|
3,295,008
|
Income taxes
receivable
|
38,695
|
|
31,774
|
Deferred tax assets,
net
|
55,493
|
|
56,908
|
Right-of-use
assets
|
47,156
|
|
54,506
|
Property and
equipment, net
|
38,562
|
|
51,645
|
Goodwill
|
412,513
|
|
435,921
|
Other
assets
|
96,851
|
|
86,588
|
Total
assets
|
$
4,329,975
|
|
$
4,175,674
|
Liabilities and
Equity
|
|
|
|
Liabilities:
|
|
|
|
Accounts
payable
|
$
6,159
|
|
$
7,329
|
Accrued
expenses
|
106,391
|
|
111,395
|
Income taxes
payable
|
15,946
|
|
25,693
|
Deferred tax
liabilities, net
|
14,185
|
|
42,918
|
Lease
liabilities
|
51,658
|
|
59,384
|
Interest-bearing
deposits
|
100,505
|
|
112,992
|
Borrowings
|
2,832,225
|
|
2,494,858
|
Other
liabilities
|
12,919
|
|
34,355
|
Total
liabilities
|
3,139,988
|
|
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, 39,243 shares issued
and outstanding at September 30, 2023; 100,000 shares authorized,
38,980
shares issued and outstanding at December 31, 2022
|
392
|
|
390
|
Additional paid-in
capital
|
4,157
|
|
2,172
|
Retained
earnings
|
1,498,330
|
|
1,573,025
|
Accumulated other
comprehensive loss
|
(387,289)
|
|
(347,926)
|
Total stockholders'
equity - PRA Group, Inc.
|
1,115,590
|
|
1,227,661
|
Noncontrolling
interest
|
74,397
|
|
59,089
|
Total
equity
|
1,189,987
|
|
1,286,750
|
Total liabilities
and equity
|
$
4,329,975
|
|
$
4,175,674
|
Select Expenses
(Income)
Amounts in
thousands, pre-tax
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
2023
|
June 30,
2023
|
March 31,
2023
|
December 31,
2022
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
Noncash interest
expense -
amortization of debt
issuance costs
|
2,220
|
2,384
|
2,441
|
2,444
|
2,555
|
2,471
|
2,627
|
2,455
|
Change in fair
value
of derivatives
|
(6,545)
|
(6,960)
|
(5,470)
|
(3,309)
|
(1,042)
|
1,525
|
2,726
|
3,115
|
Amortization of
intangibles
|
69
|
68
|
66
|
73
|
73
|
77
|
83
|
(269)
|
Impairment of real
estate
|
5,037
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Stock-based
compensation
expense
|
1,629
|
2,715
|
3,799
|
2,206
|
3,101
|
3,849
|
3,891
|
3,470
|
Purchase Price
Multiples
as of September 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
|
$
4,803,591
|
$
34,002
|
312 %
|
238 %
|
2013
|
390,826
|
912,127
|
15,613
|
233 %
|
211 %
|
2014
|
404,117
|
878,252
|
23,547
|
217 %
|
204 %
|
2015
|
443,114
|
898,799
|
37,991
|
203 %
|
205 %
|
2016
|
455,767
|
1,075,382
|
68,523
|
236 %
|
201 %
|
2017
|
532,851
|
1,196,883
|
110,646
|
225 %
|
193 %
|
2018
|
653,975
|
1,463,965
|
153,173
|
224 %
|
202 %
|
2019
|
581,476
|
1,291,978
|
200,551
|
222 %
|
206 %
|
2020
|
435,668
|
947,163
|
236,196
|
217 %
|
213 %
|
2021
|
435,846
|
774,075
|
412,428
|
178 %
|
191 %
|
2022
|
406,082
|
709,920
|
502,071
|
175 %
|
179 %
|
2023
|
475,470
|
902,639
|
846,139
|
190 %
|
190 %
|
Subtotal
|
6,757,088
|
15,854,774
|
2,640,880
|
|
|
Americas
Insolvency
|
|
|
|
|
1996-2012
|
1,038,223
|
2,146,670
|
96
|
207 %
|
165 %
|
2013
|
227,834
|
355,733
|
45
|
156 %
|
133 %
|
2014
|
148,420
|
218,770
|
139
|
147 %
|
124 %
|
2015
|
63,170
|
87,980
|
103
|
139 %
|
125 %
|
2016
|
91,442
|
117,770
|
270
|
129 %
|
123 %
|
2017
|
275,257
|
356,365
|
1,423
|
129 %
|
125 %
|
2018
|
97,879
|
136,160
|
4,288
|
139 %
|
127 %
|
2019
|
123,077
|
168,922
|
24,524
|
137 %
|
128 %
|
2020
|
62,130
|
90,853
|
32,652
|
146 %
|
136 %
|
2021
|
55,187
|
73,780
|
37,820
|
134 %
|
136 %
|
2022
|
33,442
|
46,734
|
36,834
|
140 %
|
139 %
|
2023
|
71,953
|
100,452
|
95,705
|
140 %
|
140 %
|
Subtotal
|
2,288,014
|
3,900,189
|
233,899
|
|
|
Total Americas and
Australia
|
9,045,102
|
19,754,963
|
2,874,779
|
|
|
Europe
Core
|
|
|
|
|
|
2012
|
20,409
|
44,413
|
—
|
218 %
|
187 %
|
2013
|
20,334
|
27,260
|
1
|
134 %
|
119 %
|
2014
(1)
|
773,811
|
2,408,574
|
354,169
|
311 %
|
208 %
|
2015
|
411,340
|
743,660
|
141,522
|
181 %
|
160 %
|
2016
|
333,090
|
573,894
|
167,256
|
172 %
|
167 %
|
2017
|
252,174
|
362,855
|
107,001
|
144 %
|
144 %
|
2018
|
341,775
|
547,194
|
197,447
|
160 %
|
148 %
|
2019
|
518,610
|
822,604
|
338,588
|
159 %
|
152 %
|
2020
|
324,119
|
558,705
|
259,639
|
172 %
|
172 %
|
2021
|
412,411
|
694,192
|
423,855
|
168 %
|
170 %
|
2022
|
359,447
|
580,738
|
477,450
|
162 %
|
162 %
|
2023
|
281,356
|
457,931
|
429,428
|
163 %
|
163 %
|
Subtotal
|
4,048,876
|
7,822,020
|
2,896,356
|
|
|
Europe
Insolvency
|
|
|
|
|
2014
(1)
|
10,876
|
18,809
|
—
|
173 %
|
129 %
|
2015
|
18,973
|
29,255
|
53
|
154 %
|
139 %
|
2016
|
39,338
|
57,698
|
1,123
|
147 %
|
130 %
|
2017
|
39,235
|
51,677
|
2,172
|
132 %
|
128 %
|
2018
|
44,908
|
52,473
|
5,713
|
117 %
|
123 %
|
2019
|
77,218
|
112,312
|
23,758
|
145 %
|
130 %
|
2020
|
105,440
|
156,926
|
47,485
|
149 %
|
129 %
|
2021
|
53,230
|
71,526
|
34,563
|
134 %
|
134 %
|
2022
|
44,604
|
60,714
|
47,585
|
136 %
|
137 %
|
2023
|
32,217
|
43,946
|
42,049
|
136 %
|
136 %
|
Subtotal
|
466,039
|
655,336
|
204,501
|
|
|
Total Europe
|
4,514,915
|
8,477,356
|
3,100,857
|
|
|
Total PRA
Group
|
$
13,560,017
|
$
28,232,319
|
$
5,975,636
|
|
|
|
|
(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)
|
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 September 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
September 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
September 30, 2023 (3)
|
Americas and
Australia Core
|
|
|
|
|
|
1996-2012
|
$
13,706
|
$
8,270
|
$
3,589
|
$
11,859
|
$
8,404
|
2013
|
7,709
|
3,013
|
3,849
|
6,862
|
6,588
|
2014
|
8,933
|
3,839
|
3,743
|
7,583
|
9,136
|
2015
|
10,697
|
6,477
|
(1,262)
|
5,216
|
15,758
|
2016
|
18,926
|
12,877
|
(2,309)
|
10,568
|
22,995
|
2017
|
34,496
|
19,670
|
(6,655)
|
13,014
|
46,567
|
2018
|
73,748
|
30,229
|
5,437
|
35,666
|
87,935
|
2019
|
87,979
|
39,193
|
(1,760)
|
37,433
|
109,991
|
2020
|
100,608
|
44,087
|
(4,707)
|
39,380
|
133,793
|
2021
|
108,659
|
61,425
|
(36,553)
|
24,872
|
216,634
|
2022
|
150,050
|
74,546
|
(3,079)
|
71,467
|
306,568
|
2023
|
57,049
|
37,347
|
5,898
|
43,243
|
461,243
|
Subtotal
|
672,560
|
340,973
|
(33,809)
|
307,163
|
1,425,612
|
Americas
Insolvency
|
|
|
|
|
|
1996-2012
|
576
|
189
|
390
|
579
|
—
|
2013
|
252
|
97
|
156
|
253
|
—
|
2014
|
349
|
207
|
96
|
304
|
—
|
2015
|
266
|
90
|
91
|
182
|
54
|
2016
|
662
|
105
|
312
|
418
|
236
|
2017
|
4,075
|
380
|
1,004
|
1,385
|
1,279
|
2018
|
10,958
|
975
|
(1,130)
|
(155)
|
4,091
|
2019
|
22,692
|
2,604
|
924
|
3,529
|
23,037
|
2020
|
15,206
|
3,326
|
1,162
|
4,488
|
28,574
|
2021
|
13,433
|
3,602
|
906
|
4,508
|
31,907
|
2022
|
6,715
|
2,936
|
645
|
3,581
|
29,333
|
2023
|
4,760
|
2,250
|
2,348
|
4,596
|
71,081
|
Subtotal
|
79,944
|
16,761
|
6,904
|
23,668
|
189,592
|
Total Americas and
Australia
|
752,504
|
357,734
|
(26,905)
|
330,831
|
1,615,204
|
Europe
Core
|
|
|
|
|
|
2012
|
531
|
—
|
531
|
531
|
—
|
2013
|
264
|
—
|
264
|
264
|
—
|
2014
(1)
|
81,467
|
52,042
|
14,172
|
66,214
|
97,030
|
2015
|
25,924
|
12,437
|
(502)
|
11,936
|
70,420
|
2016
|
22,350
|
11,777
|
(1,094)
|
10,682
|
96,465
|
2017
|
15,398
|
5,698
|
707
|
6,405
|
73,062
|
2018
|
31,748
|
11,528
|
3,374
|
14,902
|
130,556
|
2019
|
57,349
|
18,293
|
13,923
|
32,216
|
229,949
|
2020
|
43,153
|
16,725
|
1,067
|
17,793
|
160,547
|
2021
|
55,633
|
25,087
|
(6,041)
|
19,045
|
255,955
|
2022
|
64,593
|
26,164
|
(230)
|
25,934
|
299,256
|
2023
|
29,321
|
11,082
|
202
|
11,284
|
263,039
|
Subtotal
|
427,731
|
190,833
|
26,373
|
217,206
|
1,676,279
|
Europe
Insolvency
|
|
|
|
|
|
2014
(1)
|
172
|
—
|
172
|
172
|
—
|
2015
|
331
|
21
|
250
|
270
|
45
|
2016
|
1,105
|
201
|
362
|
563
|
604
|
2017
|
3,279
|
216
|
648
|
865
|
1,986
|
2018
|
5,905
|
544
|
(130)
|
414
|
5,195
|
2019
|
13,786
|
1,983
|
1,309
|
3,292
|
20,822
|
2020
|
23,164
|
3,681
|
3,414
|
7,095
|
42,445
|
2021
|
11,068
|
2,777
|
302
|
3,078
|
29,247
|
2022
|
9,171
|
3,529
|
(40)
|
3,489
|
37,199
|
2023
|
1,951
|
973
|
625
|
1,597
|
31,778
|
Subtotal
|
69,932
|
13,925
|
6,912
|
20,835
|
169,321
|
Total Europe
|
497,663
|
204,758
|
33,285
|
238,041
|
1,845,600
|
Total PRA
Group
|
$
1,250,167
|
$
562,492
|
$
6,380
|
$
568,872
|
$
3,460,804
|
|
|
(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 September 30, 2023 exchange rate.
|
Cash Collections by
Year, By Year of Purchase (1)
as of September 30,
2023
Amounts in
millions
|
|
|
Cash
Collections
|
Purchase
Period
|
Purchase
Price (3)(4)
|
1996-2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
Total
|
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
|
$
13.7
|
$ 4,762.4
|
2013
|
390.8
|
—
|
101.6
|
247.8
|
194.0
|
120.8
|
78.9
|
56.4
|
36.9
|
23.2
|
16.7
|
12.5
|
7.7
|
896.5
|
2014
|
404.1
|
—
|
—
|
92.7
|
253.4
|
170.3
|
114.2
|
82.2
|
55.3
|
31.9
|
22.3
|
15.0
|
8.9
|
846.2
|
2015
|
443.1
|
—
|
—
|
—
|
117.0
|
228.4
|
185.9
|
126.6
|
83.6
|
57.2
|
34.9
|
19.5
|
10.7
|
863.8
|
2016
|
455.8
|
—
|
—
|
—
|
—
|
138.7
|
256.5
|
194.6
|
140.6
|
105.9
|
74.2
|
38.4
|
18.9
|
967.8
|
2017
|
532.9
|
—
|
—
|
—
|
—
|
—
|
107.3
|
278.7
|
256.5
|
192.5
|
130.0
|
76.3
|
34.5
|
1075.8
|
2018
|
654.0
|
—
|
—
|
—
|
—
|
—
|
—
|
122.7
|
361.9
|
337.7
|
239.9
|
146.1
|
73.7
|
1282.0
|
2019
|
581.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
143.8
|
349.0
|
289.8
|
177.7
|
88.0
|
1,048.3
|
2020
|
435.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
132.9
|
284.3
|
192.0
|
100.6
|
709.8
|
2021
|
435.8
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
85.0
|
177.3
|
108.7
|
371.0
|
2022
|
406.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
67.7
|
150.0
|
217.7
|
2023
|
475.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
56.9
|
56.9
|
Subtotal
|
6,757.3
|
2,962.4
|
656.5
|
753.0
|
844.7
|
837.1
|
860.9
|
945.0
|
1,141.5
|
1,271.8
|
1,207.0
|
946.0
|
672.3
|
13,098.2
|
Americas
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2012
|
1,038.2
|
1,021.6
|
417.3
|
338.8
|
208.3
|
105.3
|
37.7
|
8.3
|
3.9
|
2.3
|
1.4
|
1.1
|
0.6
|
2,146.6
|
2013
|
227.8
|
—
|
52.5
|
82.6
|
81.7
|
63.4
|
47.8
|
21.9
|
2.9
|
1.3
|
0.8
|
0.5
|
0.3
|
355.7
|
2014
|
148.4
|
—
|
—
|
37.0
|
50.9
|
44.3
|
37.4
|
28.8
|
15.8
|
2.2
|
1.1
|
0.7
|
0.3
|
218.5
|
2015
|
63.2
|
—
|
—
|
—
|
3.4
|
17.9
|
20.1
|
19.8
|
16.7
|
7.9
|
1.3
|
0.6
|
0.3
|
88.0
|
2016
|
91.4
|
—
|
—
|
—
|
—
|
18.9
|
30.4
|
25.0
|
19.9
|
14.4
|
7.4
|
1.8
|
0.7
|
118.5
|
2017
|
275.3
|
—
|
—
|
—
|
—
|
—
|
49.1
|
97.3
|
80.9
|
58.8
|
44.0
|
20.8
|
4.1
|
355.0
|
2018
|
97.9
|
—
|
—
|
—
|
—
|
—
|
—
|
6.7
|
27.4
|
30.5
|
31.6
|
24.6
|
11.0
|
131.8
|
2019
|
123.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
13.4
|
31.4
|
39.1
|
37.8
|
22.7
|
144.4
|
2020
|
62.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.5
|
16.1
|
20.4
|
15.2
|
58.2
|
2021
|
55.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.6
|
17.9
|
13.4
|
35.9
|
2022
|
33.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.2
|
6.7
|
9.9
|
2023
|
72.0
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.8
|
4.8
|
Subtotal
|
2,288.0
|
1,021.6
|
469.8
|
458.4
|
344.3
|
249.8
|
222.5
|
207.8
|
180.9
|
155.3
|
147.4
|
129.4
|
80.1
|
3,667.3
|
Total Americas
and Australia
|
9,045.3
|
3,984.0
|
1,126.3
|
1,211.4
|
1,189.0
|
1,086.9
|
1,083.4
|
1,152.8
|
1,322.4
|
1,427.1
|
1,354.4
|
1,075.4
|
752.4
|
16,765.5
|
Europe
Core
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
20.4
|
11.6
|
9.0
|
5.6
|
3.2
|
2.2
|
2.0
|
2.0
|
1.4
|
1.2
|
1.2
|
0.9
|
0.5
|
40.8
|
2013
|
20.3
|
—
|
7.1
|
8.5
|
2.3
|
1.3
|
1.2
|
1.3
|
0.9
|
0.7
|
0.7
|
0.5
|
0.3
|
24.8
|
2014
(2)
|
773.8
|
—
|
—
|
153.2
|
292.0
|
246.4
|
220.8
|
206.3
|
172.9
|
149.8
|
149.2
|
122.2
|
81.5
|
1,794.3
|
2015
|
411.3
|
—
|
—
|
—
|
45.8
|
100.3
|
86.2
|
80.9
|
66.1
|
54.3
|
51.4
|
40.7
|
25.9
|
551.6
|
2016
|
333.1
|
—
|
—
|
—
|
—
|
40.4
|
78.9
|
72.6
|
58.0
|
48.3
|
46.7
|
36.9
|
22.4
|
404.2
|
2017
|
252.2
|
—
|
—
|
—
|
—
|
—
|
17.9
|
56.0
|
44.1
|
36.1
|
34.8
|
25.2
|
15.4
|
229.5
|
2018
|
341.8
|
—
|
—
|
—
|
—
|
—
|
—
|
24.3
|
88.7
|
71.3
|
69.1
|
50.7
|
31.7
|
335.8
|
2019
|
518.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.0
|
125.7
|
121.4
|
89.8
|
57.3
|
442.2
|
2020
|
324.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
32.3
|
91.7
|
69.0
|
43.2
|
236.2
|
2021
|
412.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.5
|
89.9
|
55.6
|
194.0
|
2022
|
359.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
33.9
|
64.6
|
98.5
|
2023
|
281.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
29.3
|
29.3
|
Subtotal
|
4,048.8
|
11.6
|
16.1
|
167.3
|
343.3
|
390.6
|
407.0
|
443.4
|
480.1
|
519.7
|
614.7
|
559.7
|
427.7
|
4,381.2
|
Europe
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
(2)
|
10.9
|
—
|
—
|
—
|
4.3
|
3.9
|
3.2
|
2.6
|
1.5
|
0.8
|
0.3
|
0.2
|
0.2
|
17.0
|
2015
|
19.0
|
—
|
—
|
—
|
3.0
|
4.4
|
5.0
|
4.8
|
3.9
|
2.9
|
1.6
|
0.6
|
0.3
|
26.5
|
2016
|
39.3
|
—
|
—
|
—
|
—
|
6.2
|
12.7
|
12.9
|
10.7
|
7.9
|
6.0
|
2.7
|
1.1
|
60.2
|
2017
|
39.2
|
—
|
—
|
—
|
—
|
—
|
1.2
|
7.9
|
9.2
|
9.8
|
9.4
|
6.5
|
3.3
|
47.3
|
2018
|
44.9
|
—
|
—
|
—
|
—
|
—
|
—
|
0.6
|
8.4
|
10.3
|
11.7
|
9.8
|
5.9
|
46.7
|
2019
|
77.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.0
|
21.1
|
23.9
|
21.0
|
13.8
|
84.8
|
2020
|
105.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.0
|
34.6
|
34.1
|
23.2
|
97.9
|
2021
|
53.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.5
|
14.4
|
11.1
|
31.0
|
2022
|
44.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.5
|
9.2
|
13.7
|
2023
|
32.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
2.0
|
2.0
|
Subtotal
|
465.9
|
—
|
—
|
—
|
7.3
|
14.5
|
22.1
|
28.8
|
38.7
|
58.8
|
93.0
|
93.8
|
70.1
|
427.1
|
Total Europe
|
4,514.7
|
11.6
|
16.1
|
167.3
|
350.6
|
405.1
|
429.1
|
472.2
|
518.8
|
578.5
|
707.7
|
653.5
|
497.8
|
4,808.3
|
Total PRA
Group
|
$ 13,560.0
|
$
3,995.6
|
$
1,142.4
|
$
1,378.7
|
$
1,539.6
|
$
1,492.0
|
$
1,512.5
|
$
1,625.0
|
$
1,841.2
|
$
2,005.6
|
$
2,062.1
|
$
1,728.9
|
$
1,250.2
|
$
21,573.8
|
|
|
(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 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. 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 September 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
|
|
LTM
|
For the Year
Ended
|
Adjusted EBITDA for
PRA Group ($ in millions)
|
September 30,
2023
|
December 31,
2022
|
Net income/(loss)
attributable to PRA Group, Inc.
|
$
(59)
|
$
117
|
Adjustments:
|
|
|
Income tax
expense
|
(8)
|
37
|
Foreign exchange
gains
|
(1)
|
(1)
|
Interest expense,
net
|
166
|
131
|
Other
expense
|
2
|
1
|
Depreciation and
amortization
|
14
|
15
|
Impairment of real
estate
|
5
|
—
|
Adjustment for net
income attributable to noncontrolling interests
|
15
|
1
|
Recoveries applied to
negative allowance less Changes in expected
recoveries
|
864
|
806
|
Adjusted
EBITDA
|
$
998
|
$
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 September 30, 2023 and for the
year ended December 31, 2022 ($ in
millions):
Debt to Adjusted
EBITDA
|
|
LTM
|
For the Year
Ended
|
|
September 30,
2023
|
December 31,
2022
|
Borrowings
|
$
2,832
|
$
2,495
|
LTM Adjusted
EBITDA
|
998
|
1,107
|
Debt to LTM Adjusted
EBITDA
|
2.84
|
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) 641-0558
Elizabeth.Kersey@PRAGroup.com
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SOURCE PRA Group