false000118534800011853482023-11-062023-11-06

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 6, 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 November 6, 2023, PRA Group, Inc. (the “Company”) issued a press release announcing its third 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 November 6, 2023 webcast and conference call to discuss its third 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: November 6, 2023By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer





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PRA Group Reports Third Quarter 2023 Results

NORFOLK, Va., November 6, 2023 - 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)2023202220232022
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 Source20232022
($ in thousands)Q3Q2Q1Q4Q3
Americas and Australia Core$223,714 $220,886 $227,960 $205,619 $225,775 
Americas Insolvency27,809 26,384 25,751 27,971 31,911 
Europe Core144,402 149,324 134,005 134,016 132,072 
Europe Insolvency23,639 22,725 23,568 24,051 22,586 
Total Cash Collections$419,564 $419,319 $411,284 $391,657 $412,344 
Cash Collection Source -
Constant Currency-Adjusted20232022
($ in thousands)Q3Q3
Americas and Australia Core$223,714 $227,432 
Americas Insolvency27,809 31,900 
Europe Core144,402 140,472 
Europe Insolvency23,639 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 Source20232022
($ in thousands)Q3Q2Q1Q4Q3
Americas and Australia Core$187,554 $171,440 $116,867 $118,581 $100,780 
Americas Insolvency44,279 12,189 15,701 8,967 8,988 
Europe Core60,628 136,834 90,454 140,011 59,426 
Europe Insolvency18,722 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,
2023202220232022
Revenues:
Portfolio income$189,960 $185,853 $562,492 $587,394 
Changes in expected recoveries22,156 48,336 6,380 134,817 
Total portfolio revenue212,116 234,189 568,872 722,211 
Other revenue4,314 10,618 12,264 21,463 
Total revenues216,430 244,807 581,136 743,674 
Operating expenses:
Compensation and employee services69,517 70,382 217,708 215,615 
Legal collection fees9,839 8,963 28,228 29,390 
Legal collection costs20,761 23,391 66,228 57,694 
Agency fees19,436 15,160 54,491 47,374 
Outside fees and services18,858 24,618 62,064 71,489 
Communication9,881 9,951 30,525 32,062 
Rent and occupancy4,426 4,669 13,193 14,289 
Depreciation and amortization3,273 3,741 10,344 11,384 
Impairment of real estate5,037 — 5,037 — 
Other operating expenses12,356 13,144 38,355 37,885 
Total operating expenses173,384 174,019 526,173 517,182 
    Income from operations43,046 70,788 54,963 226,492 
Other income and (expense):
Interest expense, net(49,473)(32,455)(130,778)(95,765)
Foreign exchange gain, net564 4 984 791 
Other(500)(83)(1,380)(754)
Income/(loss) before income taxes(6,363)38,254 (76,211)130,764 
Income tax expense/(benefit)1,788 11,072 (15,317)29,828 
Net income/(loss)(8,151)27,182 (60,894)100,936 
Adjustment for net income/(loss) attributable to noncontrolling interests4,111 2,450 13,801 (252)
Net income/(loss) attributable to PRA Group, Inc.$(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:
Basic39,242 39,018 39,155 39,858 
Diluted39,242 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 
Investments74,729 79,948 
Finance receivables, net3,460,804 3,295,008 
Income taxes receivable38,695 31,774 
Deferred tax assets, net55,493 56,908 
Right-of-use assets47,156 54,506 
Property and equipment, net38,562 51,645 
Goodwill412,513 435,921 
Other assets96,851 86,588 
Total assets$4,329,975 $4,175,674 
Liabilities and Equity
Liabilities:
Accounts payable$6,159 $7,329 
Accrued expenses106,391 111,395 
Income taxes payable15,946 25,693 
Deferred tax liabilities, net14,185 42,918 
Lease liabilities51,658 59,384 
Interest-bearing deposits100,505 112,992 
Borrowings2,832,225 2,494,858 
Other liabilities12,919 34,355 
Total liabilities3,139,988 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, 2022392 390 
Additional paid-in capital4,157 2,172 
Retained earnings1,498,330 1,573,025 
Accumulated other comprehensive loss(387,289)(347,926)
Total stockholders' equity - PRA Group, Inc.1,115,590 1,227,661 
Noncontrolling interest74,397 59,089 
Total equity1,189,987 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 costs2,220 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 intangibles69 68 66 73 73 77 83 (269)
Impairment of real estate5,037 — — — — — — — 
Stock-based compensation expense1,629 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%
2013390,826 912,127 15,613 233%211%
2014404,117 878,252 23,547 217%204%
2015443,114 898,799 37,991 203%205%
2016455,767 1,075,382 68,523 236%201%
2017532,851 1,196,883 110,646 225%193%
2018653,975 1,463,965 153,173 224%202%
2019581,476 1,291,978 200,551 222%206%
2020435,668 947,163 236,196 217%213%
2021435,846 774,075 412,428 178%191%
2022406,082 709,920 502,071 175%179%
2023475,470 902,639 846,139 190%190%
Subtotal6,757,088 15,854,774 2,640,880 
Americas Insolvency
1996-20121,038,223 2,146,670 96 207%165%
2013227,834 355,733 45 156%133%
2014148,420 218,770 139 147%124%
201563,170 87,980 103 139%125%
201691,442 117,770 270 129%123%
2017275,257 356,365 1,423 129%125%
201897,879 136,160 4,288 139%127%
2019123,077 168,922 24,524 137%128%
202062,130 90,853 32,652 146%136%
202155,187 73,780 37,820 134%136%
202233,442 46,734 36,834 140%139%
202371,953 100,452 95,705 140%140%
Subtotal2,288,014 3,900,189 233,899 
Total Americas and Australia9,045,102 19,754,963 2,874,779 
Europe Core
201220,409 44,413 — 218%187%
201320,334 27,260 1 134%119%
2014 (1)
773,811 2,408,574 354,169 311%208%
2015411,340 743,660 141,522 181%160%
2016333,090 573,894 167,256 172%167%
2017252,174 362,855 107,001 144%144%
2018341,775 547,194 197,447 160%148%
2019518,610 822,604 338,588 159%152%
2020324,119 558,705 259,639 172%172%
2021412,411 694,192 423,855 168%170%
2022359,447 580,738 477,450 162%162%
2023281,356 457,931 429,428 163%163%
Subtotal4,048,876 7,822,020 2,896,356 
Europe Insolvency
2014 (1)
10,876 18,809 — 173%129%
201518,973 29,255 53 154%139%
201639,338 57,698 1,123 147%130%
201739,235 51,677 2,172 132%128%
201844,908 52,473 5,713 117%123%
201977,218 112,312 23,758 145%130%
2020105,440 156,926 47,485 149%129%
202153,230 71,526 34,563 134%134%
202244,604 60,714 47,585 136%137%
202332,217 43,946 42,049 136%136%
Subtotal466,039 655,336 204,501 
Total Europe4,514,915 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 
20137,709 3,013 3,849 6,862 6,588 
20148,933 3,839 3,743 7,583 9,136 
201510,697 6,477 (1,262)5,216 15,758 
201618,926 12,877 (2,309)10,568 22,995 
201734,496 19,670 (6,655)13,014 46,567 
201873,748 30,229 5,437 35,666 87,935 
201987,979 39,193 (1,760)37,433 109,991 
2020100,608 44,087 (4,707)39,380 133,793 
2021108,659 61,425 (36,553)24,872 216,634 
2022150,050 74,546 (3,079)71,467 306,568 
202357,049 37,347 5,898 43,243 461,243 
Subtotal672,560 340,973 (33,809)307,163 1,425,612 
Americas Insolvency
1996-2012576 189 390 579 — 
2013252 97 156 253 — 
2014349 207 96 304 — 
2015266 90 91 182 54 
2016662 105 312 418 236 
20174,075 380 1,004 1,385 1,279 
201810,958 975 (1,130)(155)4,091 
201922,692 2,604 924 3,529 23,037 
202015,206 3,326 1,162 4,488 28,574 
202113,433 3,602 906 4,508 31,907 
20226,715 2,936 645 3,581 29,333 
20234,760 2,250 2,348 4,596 71,081 
Subtotal79,944 16,761 6,904 23,668 189,592 
Total Americas and Australia752,504 357,734 (26,905)330,831 1,615,204 
Europe Core
2012531 — 531 531 — 
2013264 — 264 264 — 
2014 (1)
81,467 52,042 14,172 66,214 97,030 
201525,924 12,437 (502)11,936 70,420 
201622,350 11,777 (1,094)10,682 96,465 
201715,398 5,698 707 6,405 73,062 
201831,748 11,528 3,374 14,902 130,556 
201957,349 18,293 13,923 32,216 229,949 
202043,153 16,725 1,067 17,793 160,547 
202155,633 25,087 (6,041)19,045 255,955 
202264,593 26,164 (230)25,934 299,256 
202329,321 11,082 202 11,284 263,039 
Subtotal427,731 190,833 26,373 217,206 1,676,279 
Europe Insolvency
2014 (1)
172 — 172 172 — 
2015331 21 250 270 45 
20161,105 201 362 563 604 
20173,279 216 648 865 1,986 
20185,905 544 (130)414 5,195 
201913,786 1,983 1,309 3,292 20,822 
202023,164 3,681 3,414 7,095 42,445 
202111,068 2,777 302 3,078 29,247 
20229,171 3,529 (40)3,489 37,199 
20231,951 973 625 1,597 31,778 
Subtotal69,932 13,925 6,912 20,835 169,321 
Total Europe497,663 204,758 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)
1996-201220132014201520162017201820192020202120222023Total
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 $13.7 $4,762.4 
2013390.8 — 101.6 247.8 194.0 120.8 78.9 56.4 36.9 23.2 16.7 12.5 7.7 896.5 
2014404.1 — — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 8.9 846.2 
2015443.1 — — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 10.7 863.8 
2016455.8 — — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 18.9 967.8 
2017532.9 — — — — — 107.3 278.7 256.5 192.5 130.0 76.3 34.5 1075.8 
2018654.0 — — — — — — 122.7 361.9 337.7 239.9 146.1 73.7 1282.0 
2019581.5 — — — — — — — 143.8 349.0 289.8 177.7 88.0 1,048.3 
2020435.7— — — — — — — — 132.9 284.3 192.0 100.6 709.8 
2021435.8 — — — — — — — — — 85.0 177.3 108.7 371.0 
2022406.2 — — — — — — — — — — 67.7 150.0 217.7 
2023475.5 — — — — — — — — — — — 56.9 56.9 
Subtotal6,757.3 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
1996-20121,038.2 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 
2013227.8 — 52.5 82.6 81.7 63.4 47.8 21.9 2.9 1.3 0.8 0.5 0.3 355.7 
2014148.4 — — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.3 218.5 
201563.2 — — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 88.0 
201691.4 — — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.7 118.5 
2017275.3 — — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.1 355.0 
201897.9 — — — — — — 6.7 27.4 30.5 31.6 24.6 11.0 131.8 
2019123.1 — — — — — — — 13.4 31.4 39.1 37.8 22.7 144.4 
202062.1 — — — — — — — — 6.5 16.1 20.4 15.2 58.2 
202155.2 — — — — — — — — — 4.6 17.9 13.4 35.9 
202233.4 — — — — — — — — — — 3.2 6.7 9.9 
202372.0 — — — — — — — — — — — 4.8 4.8 
Subtotal2,288.0 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 Australia9,045.3 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
201220.4 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 
201320.3 — 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 
2015411.3 — — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 25.9 551.6 
2016333.1 — — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 22.4 404.2 
2017252.2 — — — — — 17.9 56.0 44.1 36.1 34.8 25.2 15.4 229.5 
2018341.8 — — — — — — 24.3 88.7 71.3 69.1 50.7 31.7 335.8 
2019518.6 — — — — — — — 48.0 125.7 121.4 89.8 57.3 442.2 
2020324.1 — — — — — — — — 32.3 91.7 69.0 43.2 236.2 
2021412.4 — — — — — — — — — 48.5 89.9 55.6 194.0 
2022359.4 — — — — — — — — — — 33.9 64.6 98.5 
2023281.4 — — — — — — — — — — — 29.3 29.3 
Subtotal4,048.8 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 
201519.0 — — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.3 26.5 
201639.3 — — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.1 60.2 
201739.2 — — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.3 47.3 
201844.9 — — — — — — 0.6 8.4 10.3 11.7 9.8 5.9 46.7 
201977.2 — — — — — — — 5.0 21.1 23.9 21.0 13.8 84.8 
2020105.4 — — — — — — — — 6.0 34.6 34.1 23.2 97.9 
202153.2 — — — — — — — — — 5.5 14.4 11.1 31.0 
202244.6 — — — — — — — — — — 4.5 9.2 13.7 
202332.2 — — — — — — — — — — — 2.0 2.0 
Subtotal465.9 — — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 70.1 427.1 
Total Europe4,514.7 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
LTMFor the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)September 30, 2023December 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, net166 131 
Other expense2 1 
Depreciation and amortization14 15 
Impairment of real estate5 — 
Adjustment for net income attributable to noncontrolling interests15 1 
Recoveries applied to negative allowance less Changes in expected recoveries864 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
LTMFor the Year Ended
September 30, 2023December 31, 2022
Borrowings$2,832 $2,495 
LTM Adjusted EBITDA998 1,107 
Debt to LTM Adjusted EBITDA2.84 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

v3.23.3
Cover Page
Nov. 06, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 06, 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
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