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PRA Group Reports Third Quarter 2024 Results

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PRA Group (PRAA) reported strong Q3 2024 results with net income of $27.2 million, or $0.69 per diluted share, including a $7.7 million tax benefit. The company achieved total portfolio purchases of $350.0 million and total cash collections of $477.1 million, representing a 13.7% year-over-year increase. The company reached a record estimated remaining collections (ERC) of $7.3 billion and maintained a cash efficiency ratio of 60.1%. Portfolio revenue increased 30.5% to $276.7 million compared to Q3 2023. The company is on track to exceed its 2024 targets and has announced new targets for 2025, including portfolio investments exceeding $1.0 billion and cash collections growth of 8-10%.

PRA Group (PRAA) ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di 27,2 milioni di dollari, ovvero 0,69 dollari per azione diluita, incluso un beneficio fiscale di 7,7 milioni di dollari. La società ha realizzato acquisti totali del portafoglio per 350,0 milioni di dollari e risultati totali di incasso di 477,1 milioni di dollari, che rappresentano un aumento del 13,7% rispetto all'anno precedente. L'azienda ha raggiunto un record di collezioni residue stimate (ERC) di 7,3 miliardi di dollari e ha mantenuto un rapporto di efficienza di cassa del 60,1%. Le entrate del portafoglio sono aumentate del 30,5%, raggiungendo 276,7 milioni di dollari rispetto al terzo trimestre del 2023. L'azienda è sulla buona strada per superare i suoi obiettivi per il 2024 e ha annunciato nuovi obiettivi per il 2025, inclusi investimenti nel portafoglio superiori a 1,0 miliardi di dollari e una crescita delle incassazioni dell'8-10%.

PRA Group (PRAA) reportó sólidos resultados en el tercer trimestre de 2024, con un ingreso neto de 27,2 millones de dólares, o 0,69 dólares por acción diluida, que incluye un beneficio fiscal de 7,7 millones de dólares. La compañía alcanzó compras totales de cartera de 350,0 millones de dólares y cobros totales de efectivo de 477,1 millones de dólares, lo que representa un aumento del 13,7% en comparación con el año anterior. La empresa alcanzó un récord de colecciones restantes estimadas (ERC) de 7,3 mil millones de dólares y mantuvo un índice de eficiencia en efectivo del 60,1%. Los ingresos de la cartera aumentaron un 30,5% a 276,7 millones de dólares en comparación con el tercer trimestre de 2023. La empresa está en camino de superar sus objetivos de 2024 y ha anunciado nuevos objetivos para 2025, que incluyen inversiones en la cartera que superen los 1,0 mil millones de dólares y un crecimiento en los cobros del 8-10%.

PRA 그룹 (PRAA)는 2024년 3분기에 순이익 2,720만 달러를 기록했으며, 희석주당 0.69달러에 해당하며, 770만 달러의 세금 혜택을 포함하고 있습니다. 회사는 총 포트폴리오 구매 3억 5천만 달러총 현금 수금 4억 7천7백1십만 달러를 달성했으며, 이는 전년 대비 13.7% 증가한 수치입니다. 회사는 잔여 추정 수금(ERC) 73억 달러의 기록을 세웠으며, 현금 효율성 비율은 60.1%를 유지했습니다. 포트폴리오 수익은 2023년 3분기와 비교하여 30.5% 증가하여 2억 7천6백7십만 달러에 달했습니다. 이 회사는 2024년 목표를 초과 달성할 예정이며, 2025년 목표로는 포트폴리오 투자 10억 달러 이상 및 현금 수금 8-10% 성장 목표를 발표했습니다.

PRA Group (PRAA) a annoncé des résultats solides pour le troisième trimestre 2024, avec un revenu net de 27,2 millions de dollars, soit 0,69 dollar par action diluée, y compris un avantage fiscal de 7,7 millions de dollars. La société a réalisé des achats totaux de portefeuille de 350,0 millions de dollars et des encaissements totaux en espèces de 477,1 millions de dollars, représentant une augmentation de 13,7% par rapport à l'année précédente. L'entreprise a atteint un montant record des encaissements restants estimés (ERC) de 7,3 milliards de dollars et a maintenu un ratio d'efficacité de la trésorerie de 60,1%. Les revenus du portefeuille ont augmenté de 30,5%, atteignant 276,7 millions de dollars par rapport au troisième trimestre 2023. L'entreprise est en bonne voie pour dépasser ses objectifs de 2024 et a annoncé de nouveaux objectifs pour 2025, y compris des investissements en portefeuille dépassant 1,0 milliard de dollars et une croissance des encaissements de 8-10%.

PRA Group (PRAA) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Nettoeinkommen von 27,2 Millionen Dollar, oder 0,69 Dollar pro verwässerter Aktie, einschließlich eines Steuerbenefits von 7,7 Millionen Dollar. Das Unternehmen erzielte Gesamtportfolio-Käufe von 350,0 Millionen Dollar und Gesamtbarzahlungen von 477,1 Millionen Dollar, was einem Anstieg von 13,7% im Vergleich zum Vorjahr entspricht. Das Unternehmen erreichte einen Rekord bei den geschätzten verbleibenden Einzahlungen (ERC) von 7,3 Milliarden Dollar und hielt eine Bar效率 von 60,1% aufrecht. Die Portfolio-Einnahmen stiegen um 30,5% auf 276,7 Millionen Dollar im Vergleich zum dritten Quartal 2023. Das Unternehmen ist auf Kurs, seine Ziele für 2024 zu übertreffen, und hat neue Ziele für 2025 bekannt gegeben, einschließlich Portfolio-Investitionen von über 1,0 Milliarden Dollar und einem Wachstum der Barzahlungen von 8-10%.

Positive
  • Net income improved to $27.2 million from a loss of $12.2 million in Q3 2023
  • Cash collections increased 13.7% YoY to $477.1 million
  • Portfolio revenue grew 30.5% YoY to $276.7 million
  • Record ERC of $7.3 billion
  • Strong portfolio purchases of $350.0 million in Q3
Negative
  • Interest expense increased 23.4% YoY to $61.1 million
  • Operating expenses rose 10.4% YoY to $191.5 million
  • Legal collection costs increased by $8.0 million

Insights

The Q3 2024 results show significant improvement in PRA Group's financial performance. Net income reached $27.2 million ($0.69 per share), compared to a loss in Q3 2023, with total cash collections increasing by 13.7% to $477.1 million. Portfolio revenue saw a substantial jump of 30.5% to $276.7 million.

Key operational metrics are robust, with record estimated remaining collections (ERC) of $7.3 billion and strong portfolio purchases of $350 million. The cash efficiency ratio of 60.1% and Adjusted EBITDA of $1.1 billion indicate effective operational management. The company's forward flow commitments of $491.1 million and available credit facility of $1.0 billion suggest strong growth potential.

The company is exceeding its 2024 targets and has set ambitious 2025 goals, including portfolio investments over $1.0 billion and 8-10% cash collections growth, indicating confidence in sustained growth trajectory.

Transformation in U.S. Business Clearly Visible

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

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

Q3 2024 Highlights

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

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.












Three Months Ended Sept 30,


Nine Months Ended Sept 30,

($ in thousands, except per share amounts)


2024


2023


2024


2023

Net income/(loss) attributable to PRA Group, Inc.


$              27,154


$           (12,262)


$              52,145


$           (74,695)

Diluted earnings per share


$                  0.69


$                (0.31)


$                  1.32


$                (1.91)










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

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

Cash Collections and Revenues

The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:












Cash Collection Source


2024


2023

($ in thousands)


Q3


Q2


Q1


Q4


Q3

Americas and Australia Core


$       266,977


$       263,828


$       256,861


$       220,127


$       223,714

Americas Insolvency


26,065


26,971


25,209


24,293


27,809

Europe Core


158,242


156,739


145,933


144,361


144,402

Europe Insolvency


25,826


26,344


21,515


21,502


23,639

Total cash collections


$       477,110


$       473,882


$       449,518


$       410,283


$       419,564


































Cash Collection Source -











Constant Currency-Adjusted


2024








2023

($ in thousands)


Q3








Q3

Americas and Australia Core


$       266,977








$       218,303

Americas Insolvency


26,065








27,785

Europe Core


158,242








147,597

Europe Insolvency


25,826








24,255

Total cash collections


$       477,110








$       417,940












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











Three Months Ended Sept 30,


Nine Months Ended Sept 30,

($ in thousands)


2024


2023


2024


2023

Portfolio income


$            216,122


$          189,960


$        627,468


$          562,492

Recoveries received in excess of forecast


$              34,158


$            18,090


$        124,256


$            47,276

Changes in expected future recoveries


26,456


4,066


61,352


(40,896)

Changes in expected recoveries


$              60,614


$            22,156


$        185,608


$              6,380

Total portfolio revenue


$            276,736


$          212,116


$        813,076


$          568,872










Expenses

  • Operating expenses in Q3 2024 increased $18.1 million, or 10.4%, to $191.5 million compared to $173.4 million in Q3 2023.
    • Legal collection costs increased $8.0 million, primarily due to increased investments in our U.S. legal collections channel, which are expected to drive future cash collections growth.
    • Compensation and employee services expenses increased $6.6 million, primarily due to lower compensation accruals and benefits related expenses in Q3 2023 and higher wage costs in the current year period.
    • Legal collection fees increased $4.6 million, primarily due to higher external legal collections in our U.S. Core portfolio.
  • For the nine months ended September 30, 2024, operating expenses increased by $49.5 million, or 9.4%, compared to the same period last year, which included higher legal collection costs of $24.5 million related to increased investments in our U.S. legal collections channel.
  • Interest expense, net in Q3 2024 was $61.1 million, an increase of $11.6 million, or 23.4%, compared to $49.5 million in Q3 2023, primarily reflecting higher debt balances to support portfolio investments.
  • The effective tax rate for the nine months ended September 30, 2024 was 13.7%.

Portfolio Acquisitions

  • The Company purchased $350.0 million in portfolios of nonperforming loans in Q3 2024.
  • At the end of Q3 2024, the Company had in place estimated forward flow commitments1 of $491.1 million over the next 12 months, comprised of $406.3 million in the Americas and Australia and $84.8 million in Europe.











Portfolio Purchase Source


2024


2023

($ in thousands)


Q3


Q2


Q1


Q4


Q3

Americas & Australia Core


$       263,613


$         198,761


$         174,660


$         143,052


$         187,554

Americas Insolvency


10,162


26,627


22,156


18,608


44,279

Europe Core


71,507


127,991


43,997


110,780


60,628

Europe Insolvency


4,696


25,990


5,004


12,476


18,722

Total portfolio acquisitions


$       349,978


$         379,369


$         245,817


$         284,916


$         311,183












Credit Availability

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

Financial and Operational Targets for 2024 and 2025

The Company is on track to achieve the following financial and operational targets for full year 2024:

  • Strong portfolio investment levels
  • Double-digit cash collections growth
  • ~60% cash efficiency ratio
  • 8%+ return on average tangible equity2 (up from 6% - 8% previously)

In addition, the Company announces the following financial and operational targets for full year 2025:

  • Portfolio investment levels to exceed $1.0 billion
  • Cash collections growth of 8% - 10%
  • 60%+ cash efficiency ratio
  • Double-digit return on average tangible equity2

1.

Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place, based on projections and other factors, including sellers' estimates of future flow sales, and are dependent on actual delivery by the sellers. Accordingly, amounts purchased under these agreements may vary significantly.

2.

A reconciliation of total stockholders' equity – PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to average tangible equity can be found at the end of this press release.

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until November 4, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 29879# until November 11, 2024.                                                                                

About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and 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,


2024


2023


2024


2023

Revenues:








Portfolio income

$          216,122


$         189,960


$         627,468


$           562,492

Changes in expected recoveries

60,614


22,156


185,608


6,380

Total portfolio revenue

276,736


212,116


813,076


568,872

Other revenue

4,741


4,314


8,216


12,264

Total revenues

281,477


216,430


821,292


581,136

Operating expenses:








Compensation and employee services

76,106


69,517


223,944


217,708

Legal collection fees

14,479


9,839


40,353


28,228

Legal collection costs

28,781


20,761


90,746


66,228

Agency fees

21,020


19,436


61,751


54,491

Outside fees and services

20,452


18,858


63,626


62,064

Communication

10,048


9,881


34,203


30,525

Rent and occupancy

4,175


4,426


12,455


13,193

Depreciation and amortization

2,469


3,273


7,826


10,344

Impairment of real estate


5,037



5,037

Other operating expenses

13,969


12,356


40,792


38,355

Total operating expenses

191,499


173,384


575,696


526,173

    Income from operations

89,978


43,046


245,596


54,963

Other income and (expense):








Interest expense, net

(61,062)


(49,473)


(168,693)


(130,778)

Foreign exchange gain, net

10


564


138


984

Other

(676)


(500)


(836)


(1,380)

Income/(loss) before income taxes

28,250


(6,363)


76,205


(76,211)

Income tax expense/(benefit)

(672)


1,788


10,416


(15,317)

Net income/(loss)

28,922


(8,151)


65,789


(60,894)

Adjustment for net income attributable to noncontrolling interests

1,768


4,111


13,644


13,801

Net income/(loss) attributable to PRA Group, Inc.

$            27,154


$         (12,262)


$            52,145


$            (74,695)

Net income/(loss) per common share attributable to PRA Group, Inc.:








Basic

$                0.69


$              (0.31)


$                1.33


$                (1.91)

Diluted

$                0.69


$              (0.31)


$                1.32


$                (1.91)

Weighted average number of shares outstanding:








Basic

39,421


39,242


39,353


39,155

Diluted

39,492


39,242


39,495


39,155

 

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

 


(unaudited)




September 30,
2024


December 31,
2023

Assets




Cash and cash equivalents

$                141,135


$                112,528

Investments

61,322


72,404

Finance receivables, net

4,064,467


3,656,598

Income taxes receivable

33,368


27,713

Deferred tax assets, net

88,260


74,694

Right-of-use assets

40,831


45,877

Property and equipment, net

31,835


36,450

Goodwill

423,011


431,564

Other assets

51,841


67,526

Total assets

$             4,936,070


$             4,525,354

Liabilities and Equity




Liabilities:




Accounts payable

$                     8,176


$                     6,325

Accrued expenses

108,926


131,893

Income taxes payable

27,501


17,912

Deferred tax liabilities, net

19,881


17,051

Lease liabilities

45,222


50,300

Interest-bearing deposits

128,594


115,589

Borrowings

3,296,172


2,914,270

Other liabilities

19,806


32,638

Total liabilities

3,654,278


3,285,978

Equity:




Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding


Common stock, $0.01 par value, 100,000 shares authorized, 39,426 shares issued and outstanding as of September 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023

394


392

Additional paid-in capital

15,415


7,071

Retained earnings

1,541,693


1,489,548

Accumulated other comprehensive loss

(338,620)


(329,899)

Total stockholders' equity - PRA Group, Inc.

1,218,882


1,167,112

Noncontrolling interests

62,910


72,264

Total equity

1,281,792


1,239,376

Total liabilities and equity

$             4,936,070


$             4,525,354

 

Select Expenses (Income)

Amounts in thousands, pre-tax











Three Months Ended


September 30,
2024

June 30,
2024

March 31,
2024

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

Noncash interest expense - amortization of debt issuance costs

$          3,795

$         2,331

$         2,200

$         2,177

$          2,220

$          2,384

$           2,441

$            2,444

Change in fair value of derivatives

(5,706)

(5,628)

(5,930)

(6,734)

(6,545)

(6,960)

(5,470)

(3,309)

Amortization of intangibles

60

58

60

69

69

68

66

73

Impairment of real estate

202

5,037

Stock-based compensation expense

3,251

3,555

3,327

2,952

1,629

2,715

3,799

2,206

 

Purchase Price Multiples

as of September 30, 2024

Amounts in thousands

Purchase Period

Purchase Price (1)(2)

Total Estimated
Collections (3)

Estimated
Remaining
Collections (4)

Current Purchase
Price Multiple

Original Purchase
Price Multiple (5)

Americas and Australia Core






1996-2013

$                  1,932,722

$              5,754,451

$                  54,564

298 %

233 %

2014

404,117

899,280

30,956

223 %

204 %

2015

443,114

921,016

43,600

208 %

205 %

2016

455,767

1,094,043

60,873

240 %

201 %

2017

532,851

1,218,849

92,454

229 %

193 %

2018

653,975

1,520,429

128,845

232 %

202 %

2019

581,476

1,311,448

134,279

226 %

206 %

2020

435,668

956,953

150,536

220 %

213 %

2021

435,846

736,409

261,863

169 %

191 %

2022

406,082

708,712

334,578

175 %

179 %

2023

622,583

1,222,835

877,849

196 %

197 %

2024

638,147

1,339,929

1,261,602

210 %

210 %

Subtotal

7,542,348

17,684,354

3,431,999



Americas Insolvency





1996-2013

1,266,056

2,503,285

6

198 %

159 %

2014

148,420

218,963

30

148 %

124 %

2015

63,170

88,112

23

139 %

125 %

2016

91,442

118,378

188

129 %

123 %

2017

275,257

358,774

950

130 %

125 %

2018

97,879

136,385

692

139 %

127 %

2019

123,077

167,548

4,005

136 %

128 %

2020

62,130

91,718

16,018

148 %

136 %

2021

55,187

74,453

22,486

135 %

136 %

2022

33,442

47,352

26,688

142 %

139 %

2023

91,282

119,692

91,017

131 %

135 %

2024

58,945

87,085

79,949

148 %

148 %

Subtotal

2,366,287

4,011,745

242,052



Total Americas and Australia

9,908,635

21,696,099

3,674,051



Europe Core






2012-2013

40,742

72,994

1

179 %

153 %

2014

773,811

2,584,292

423,498

334 %

208 %

2015

411,340

756,321

134,898

184 %

160 %

2016

333,090

581,121

156,172

174 %

167 %

2017

252,174

369,927

102,638

147 %

144 %

2018

341,775

559,571

187,631

164 %

148 %

2019

518,610

852,264

323,682

164 %

152 %

2020

324,119

574,755

242,053

177 %

172 %

2021

412,411

707,823

390,545

172 %

170 %

2022

359,447

586,297

445,461

163 %

162 %

2023

410,593

693,472

574,464

169 %

169 %

2024

251,874

453,608

430,252

180 %

180 %

Subtotal

4,429,986

8,792,445

3,411,295



Europe Insolvency





2014

10,876

19,038

175 %

129 %

2015

18,973

29,429

155 %

139 %

2016

39,338

57,983

598

147 %

130 %

2017

39,235

52,046

841

133 %

128 %

2018

44,908

52,881

2,335

118 %

123 %

2019

77,218

113,945

12,563

148 %

130 %

2020

105,440

159,030

26,032

151 %

129 %

2021

53,230

74,452

24,736

140 %

134 %

2022

44,604

62,450

38,756

140 %

137 %

2023

46,558

64,602

53,683

139 %

138 %

2024

37,783

54,855

48,388

145 %

145 %

Subtotal

518,163

740,711

207,932



Total Europe

4,948,149

9,533,156

3,619,227



Total PRA Group

$                14,856,784

$            31,229,255

$              7,293,278





(1)

Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.

(2)

Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.

(3)

Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.

(4)

Non-U.S. amounts are presented at the September 30, 2024 exchange rate.

(5)

The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.

 

Portfolio Financial Information (1)

Amounts in thousands


September 30, 2024 (year-to-date)


As of September 30, 2024

Purchase Period

Cash
Collections (2)

Portfolio
Income (2)

Change in
Expected
Recoveries (2)

Total Portfolio Revenue (2)


Net Finance Receivables (3)

Americas and Australia Core







1996-2013

$               26,786

$               10,656

$               17,243

$               27,899


$                                16,771

2014

10,691

4,303

8,039

12,342


12,019

2015

13,258

5,305

11,778

17,083


18,918

2016

18,506

9,782

8,634

18,416


21,833

2017

30,470

13,521

11,941

25,462


38,195

2018

60,243

21,259

25,535

46,794


70,664

2019

62,311

24,744

13,609

38,353


75,355

2020

70,086

27,464

6,632

34,096


85,017

2021

79,282

39,444

(10,559)

28,885


136,930

2022

116,142

49,024

(5,628)

43,396


202,091

2023

221,800

126,913

7,595

134,508


494,772

2024

78,091

60,269

11,125

71,394


630,678

Subtotal

787,666

392,684

105,944

498,628


1,803,243

Americas Insolvency







1996-2013

756

85

672

757


2014

216

68

151

219


2015

153

24

103

127


13

2016

458

31

363

394


163

2017

2,105

153

1,800

1,953


854

2018

2,102

98

802

900


653

2019

13,129

825

(1,169)

(344)


3,827

2020

13,236

1,961

1,014

2,975


14,760

2021

11,963

2,352

679

3,031


19,901

2022

8,314

2,370

542

2,912


22,440

2023

18,678

8,407

(983)

7,424


72,108

2024

7,134

4,419

189

4,608


55,878

Subtotal

78,244

20,793

4,163

24,956


190,597

Total Americas and Australia

865,910

413,477

110,107

523,584


1,993,840

Europe Core







2012-2013

789

789

789


2014

75,739

46,494

22,135

68,629


95,353

2015

23,089

10,203

4,535

14,738


66,317

2016

20,460

9,757

3,067

12,824


88,047

2017

13,600

5,048

1,309

6,357


68,268

2018

28,500

10,315

4,879

15,194


120,450

2019

51,635

16,799

8,537

25,336


218,471

2020

38,069

14,275

6,685

20,960


148,879

2021

50,687

21,458

5,636

27,094


236,349

2022

57,408

22,884

2,696

25,580


280,574

2023

78,264

32,685

2,517

35,202


340,067

2024

22,674

9,521

2,574

12,095


240,351

Subtotal

460,914

199,439

65,359

264,798


1,903,126

Europe Insolvency







2014

138

138

138


2015

141

2

113

115


2016

659

87

306

393


164

2017

1,246

97

44

141


669

2018

2,839

207

217

424


2,087

2019

10,653

1,083

1,620

2,703


10,971

2020

20,081

2,174

2,681

4,855


23,842

2021

11,540

2,041

1,546

3,587


21,779

2022

11,129

2,907

1,983

4,890


31,794

2023

9,057

3,827

449

4,276


42,090

2024

6,203

2,127

1,045

3,172


34,105

Subtotal

73,686

14,552

10,142

24,694


167,501

Total Europe

534,600

213,991

75,501

289,492


2,070,627

Total PRA Group

$          1,400,510

$             627,468

$              185,608

$             813,076


$                            4,064,467



(1)

Includes the nonperforming loan portfolios that were acquired through our business acquisitions.

(2)

Non-U.S. amounts are presented using the average exchange rates during the current reporting period. 

(3)

Non-U.S. amounts are presented at the September 30, 2024 exchange rate.

 

Cash Collections by Year, By Year of Purchase (1)

as of September 30, 2024

Amounts in millions



Cash Collections

Purchase Period

Purchase
Price (2)(3)

1996-2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Total

Americas and Australia Core












1996-2013

$       1,932.7

$  3,618.9

$ 660.3

$ 474.4

$ 299.7

$ 197.0

$ 140.3

$   99.7

$   64.7

$   46.5

$   36.0

$   28.4

$   26.8

$ 5,692.7

2014

404.1

92.7

253.4

170.3

114.2

82.2

55.3

31.9

22.3

15.0

11.8

10.7

859.8

2015

443.1

117.0

228.4

185.9

126.6

83.6

57.2

34.9

19.5

14.1

13.3

880.5

2016

455.8

138.7

256.5

194.6

140.6

105.9

74.2

38.4

24.9

18.5

992.3

2017

532.9

107.3

278.7

256.5

192.5

130.0

76.3

43.8

30.5

1115.6

2018

654.0

122.7

361.9

337.7

239.9

146.1

92.9

60.2

1361.4

2019

581.5

143.8

349.0

289.8

177.7

110.3

62.3

1132.9

2020

435.7

132.9

284.3

192.0

125.8

70.1

805.1

2021

435.8

85.0

177.3

136.8

79.3

478.4

2022

406.1

67.7

195.4

116.1

379.2

2023

622.5

108.5

221.8

330.3

2024

638.1

78.1

78.1

Subtotal

7,542.3

3,618.9

753.0

844.8

837.1

860.9

945.1

1,141.4

1,271.8

1,206.9

946.0

892.7

787.7

14,106.3

Americas Insolvency














1996-2013

1,266.1

1,491.4

421.4

289.9

168.7

85.5

30.3

6.8

3.6

2.2

1.6

1.1

0.8

2,503.3

2014

148.4

37.0

50.9

44.3

37.4

28.8

15.8

2.2

1.1

0.7

0.4

0.2

218.8

2015

63.2

3.4

17.9

20.1

19.8

16.7

7.9

1.3

0.6

0.3

0.2

88.2

2016

91.4

18.9

30.4

25.0

19.9

14.4

7.4

1.8

0.9

0.5

119.2

2017

275.3

49.1

97.3

80.9

58.8

44.0

20.8

4.9

2.1

357.9

2018

97.9

6.7

27.4

30.5

31.6

24.6

12.7

2.1

135.6

2019

123.1

13.4

31.4

39.1

37.8

28.7

13.1

163.5

2020

62.1

6.5

16.1

20.4

19.5

13.2

75.7

2021

55.2

4.6

17.9

17.5

12.0

52.0

2022

33.4

3.2

9.2

8.3

20.7

2023

91.2

9.0

18.7

27.7

2024

59.0

7.0

7.0

Subtotal

2,366.3

1,491.4

458.4

344.2

249.8

222.5

207.9

180.9

155.3

147.4

129.4

104.2

78.2

3,769.6

Total Americas and Australia

9,908.6

5,110.3

1,211.4

1,189.0

1,086.9

1,083.4

1,153.0

1,322.3

1,427.1

1,354.3

1,075.4

996.9

865.9

17,875.9

Europe Core














2012-2013

40.7

27.7

14.2

5.5

3.5

3.3

3.3

2.4

1.9

1.8

1.4

1.0

0.8

66.8

2014

773.8

153.2

292.0

246.4

220.8

206.3

172.9

149.8

149.2

122.2

107.6

75.7

1,896.1

2015

411.3

45.8

100.3

86.2

80.9

66.1

54.3

51.4

40.7

33.8

23.1

582.6

2016

333.1

40.4

78.9

72.6

58.0

48.3

46.7

36.9

29.7

20.5

432.0

2017

252.2

17.9

56.0

44.1

36.1

34.8

25.2

20.2

13.6

247.9

2018

341.8

24.3

88.7

71.3

69.1

50.7

41.6

28.5

374.2

2019

518.6

48.0

125.7

121.4

89.8

75.1

51.6

511.6

2020

324.1

32.3

91.7

69.0

56.1

38.1

287.2

2021

412.4

48.5

89.9

73.0

50.7

262.1

2022

359.4

33.9

83.8

57.4

175.1

2023

410.6

50.2

78.3

128.5

2024

252.0

22.6

22.6

Subtotal

4,430.0

27.7

167.4

343.3

390.6

407.1

443.4

480.2

519.7

614.6

559.7

572.1

460.9

4,986.7

Europe Insolvency













2014

10.9

4.3

3.9

3.2

2.6

1.5

0.8

0.3

0.2

0.2

0.1

17.1

2015

19.0

3.0

4.4

5.0

4.8

3.9

2.9

1.6

0.6

0.4

0.1

26.7

2016

39.3

6.2

12.7

12.9

10.7

7.9

6.0

2.7

1.3

0.7

61.1

2017

39.2

1.2

7.9

9.2

9.8

9.4

6.5

3.8

1.2

49.0

2018

44.9

0.6

8.4

10.3

11.7

9.8

7.2

2.8

50.8

2019

77.2

5.0

21.1

23.9

21.0

17.5

10.7

99.2

2020

105.4

6.0

34.6

34.1

29.7

20.1

124.5

2021

53.2

5.5

14.4

14.7

11.5

46.1

2022

44.6

4.5

12.4

11.1

28.0

2023

46.7

4.2

9.1

13.3

2024

37.8

6.3

6.3

Subtotal

518.2

7.3

14.5

22.1

28.8

38.7

58.8

93.0

93.8

91.4

73.7

522.1

Total Europe

4,948.2

27.7

167.4

350.6

405.1

429.2

472.2

518.9

578.5

707.6

653.5

663.5

534.6

5,508.8

Total PRA Group

$     14,856.8

$  5,138.0

$  1,378.8

$  1,539.6

$  1,492.0

$  1,512.6

$  1,625.2

$  1,841.2

$  2,005.6

$  2,061.9

$  1,728.9

$  1,660.4

$  1,400.5

$  23,384.7



(1)

Non-U.S. amounts are presented using the average exchange rates during the cash collection period.

(2)

Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.

(3)

Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased.  In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internally to evaluate the Company's performance and to set performance goals. Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); plus foreign exchange loss (or less foreign exchange gain); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; plus impairment of real estate; plus net income attributable to noncontrolling interests; and plus recoveries applied to negative allowance less changes in expected recoveries. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Set forth below is a reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2024 and for the year ended December 31, 2023. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.

Reconciliation of Non-GAAP Financial Measures


LTM

For the Year Ended

Adjusted EBITDA for PRA Group ($ in millions)

September 30, 2024

December 31, 2023

Net income/(loss) attributable to PRA Group, Inc.

$                                    43

$                                  (83)

Adjustments:



Income tax expense/(benefit)

10

(16)

Foreign exchange loss

1

Interest expense, net

220

181

Other expense

1

2

Depreciation and amortization

11

13

Impairment of real estate

5

Net income attributable to noncontrolling interests

17

17

Recoveries applied to negative allowance less changes in expected recoveries

797

888

Adjusted EBITDA

$                              1,100

$                              1,007

 

In addition, the Company uses return on average tangible equity (ROATE), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity (ATE) is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by ATE.

The following table displays the Company's ROATE and provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to ATE for the periods indicated (amounts in thousands, except for ratio data):







Average Balance



Balance as of Period End


Third Quarter


Year-to-Date



September 30, 2024


September 30, 2023


2024


2023


2024


2023

Total stockholders' equity - PRA Group, Inc.


$      1,218,882


$     1,115,590


$  1,182,173


$  1,140,558


$  1,165,196


$  1,166,780

Less: Goodwill


423,011


412,513


419,329


413,709


420,517


420,997

Less: Other intangible assets


1,620


1,670


1,609


1,753


1,656


1,797

Average tangible equity






$     761,235


$     725,096


$     743,023


$     743,986

Net income/(loss) attributable to PRA Group, Inc.






$       27,154


$      (12,262)


$       52,145


$      (74,695)

Return on average tangible equity (1)






14.3 %


(6.8) %


9.4 %


(13.4) %

 

Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com 

News Media Contact:
Elizabeth Kersey
Senior Vice President, Communications and Public Policy
(757) 641-0558
Elizabeth.Kersey@PRAGroup.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-third-quarter-2024-results-302295784.html

SOURCE PRA Group, Inc.

FAQ

What was PRA Group's (PRAA) earnings per share in Q3 2024?

PRA Group reported diluted earnings per share of $0.69 in Q3 2024, including a tax benefit of $0.20 per share.

How much were PRA Group's (PRAA) total cash collections in Q3 2024?

PRA Group's total cash collections in Q3 2024 were $477.1 million, a 13.7% increase from Q3 2023.

What is PRA Group's (PRAA) estimated remaining collections (ERC) as of Q3 2024?

PRA Group reported a record ERC of $7.3 billion as of Q3 2024.

What are PRA Group's (PRAA) portfolio investment targets for 2025?

PRA Group targets portfolio investments to exceed $1.0 billion in 2025.

PRA Group, Inc.

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