PRA Group Reports Third Quarter 2024 Results
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 달러와 총 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%.
- 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
- 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
Key operational metrics are robust, with record estimated remaining collections (ERC) of
The company is exceeding its 2024 targets and has set ambitious 2025 goals, including portfolio investments over
Transformation in
Company On Track to Achieve Financial and Operational Targets for 2024; Announces Targets for 2025
Q3 2024 Highlights
- Net income attributable to PRA Group, Inc. of
, or diluted earnings per share of$27.2 million , including a tax benefit item of$0.69 , or$7.7 million per share.$0.20 - 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
"We invested
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 | |||||
$ 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 | ||||||||
$ 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 compared to$477.1 million in the third quarter of 2023 ("Q3 2023"). The increase was driven by higher cash collections in both the$419.6 million U.S. andEurope . For the nine months ended September 30, 2024, cash collections increased , or$150.3 million 12.0% , compared to the same period last year. - Total portfolio revenue in Q3 2024 increased
30.5% to compared to$276.7 million in Q3 2023. For the nine months ended September 30, 2024, total portfolio revenue increased$212.1 million 42.9% to compared to$813.1 million in the same period last year.$568.9 million
Three Months Ended Sept 30, | Nine Months Ended Sept 30, | |||||||
($ 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
, or$18.1 million 10.4% , to compared to$191.5 million in Q3 2023.$173.4 million - Legal collection costs increased
, primarily due to increased investments in our$8.0 million U.S. legal collections channel, which are expected to drive future cash collections growth. - Compensation and employee services expenses increased
, primarily due to lower compensation accruals and benefits related expenses in Q3 2023 and higher wage costs in the current year period.$6.6 million - Legal collection fees increased
, primarily due to higher external legal collections in our$4.6 million U.S. Core portfolio.
- Legal collection costs increased
- For the nine months ended September 30, 2024, operating expenses increased by
, or$49.5 million 9.4% , compared to the same period last year, which included higher legal collection costs of related to increased investments in our$24.5 million U.S. legal collections channel. - Interest expense, net in Q3 2024 was
, an increase of$61.1 million , or$11.6 million 23.4% , compared to in Q3 2023, primarily reflecting higher debt balances to support portfolio investments.$49.5 million - The effective tax rate for the nine months ended September 30, 2024 was
13.7% .
Portfolio Acquisitions
- The Company purchased
in portfolios of nonperforming loans in Q3 2024.$350.0 million - At the end of Q3 2024, the Company had in place estimated forward flow commitments1 of
over the next 12 months, comprised of$491.1 million in the$406.3 million Americas andAustralia and in$84.8 million Europe .
Portfolio Purchase Source | 2024 | 2023 | ||||||||
($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||
$ 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
.0 billion, comprised of$1 .7 million based on current ERC and subject to debt covenants, and$412 .9 million of additional availability subject to borrowing base and debt covenants, including advance rates.$585
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 from6% -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
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
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 | Nine Months Ended | ||||||
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, | December 31, | ||
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, | — | — | |
Common stock, | 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, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |
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 | Estimated | Current Purchase | Original Purchase |
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 | 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 | 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- |
(3) | Non- |
(4) | Non- |
(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 | Portfolio | Change in | Total Portfolio Revenue (2) | Net Finance Receivables (3) | |
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 | 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 | 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- |
(3) | Non- |
Cash Collections by Year, By Year of Purchase (1) as of September 30, 2024 Amounts in millions | ||||||||||||||
Cash Collections | ||||||||||||||
Purchase Period | Purchase | 1996-2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
1996-2013 | $ 1,932.7 | $ 3,618.9 | $ 99.7 | $ 64.7 | $ 46.5 | $ 36.0 | $ 28.4 | $ 26.8 | ||||||
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 | 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 | 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- |
(2) | Includes the acquisition date finance receivables portfolios acquired through our business acquisitions. |
(3) | Non- |
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
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
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SOURCE PRA Group, Inc.
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