NORFOLK,
Va., May 8, 2023 /PRNewswire/ -- PRA Group,
Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring
and collecting nonperforming loans, today reported its financial
results for the first quarter of 2023 ("Q1 2023").
Q1 2023 Highlights
- Total portfolio purchases of $230.2
million.
- Total cash collections were $411.3
million.
- Estimated remaining collections (ERC)1 of
$5.7 billion.
- Cash efficiency ratio2 of 54.3%.
- Diluted earnings per share were $(1.50).
- Debt to Adjusted EBITDA3 for the 12 months ended
March 31, 2023 was 2.89x.
- Pro forma Debt to Adjusted EBITDA3 for the 12 months
ended March 31, 2023 was 2.55x,
considering prefunding of 2023 convertible notes maturity.
- Available capacity under the Company's credit facilities of
$1.6 billion; $436.8 million after considering borrowing base
restrictions.
- Appointed Vikram Atal as
president and chief executive officer in March 2023 and Owen
James as global investments officer in April 2023.
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|
|
|
|
|
|
|
Three Months Ended
Mar 31,
|
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
Net (loss)/income
attributable to PRA Group, Inc.
|
|
$
(58,629)
|
|
$
39,972
|
|
Diluted earnings per
share
|
|
$
(1.50)
|
|
$
0.97
|
|
|
|
|
|
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|
"While the first quarter earnings presented some challenges,
including a softer-than-expected U.S. tax season, we met our
collections expectations on a consolidated basis, delivering total
cash collections of $411 million
globally. We also had another strong purchasing quarter, investing
$230 million in portfolios, which was
up 56% year-over-year, as we further capitalize on what we believe
to be an increasingly improving supply environment," said
Vikram Atal, president and chief
executive officer. "We continue to have a solid base of deeply
experienced employees, business fundamentals that remain strong,
and a financial profile and global presence that provide the
flexibility to invest across markets as opportunities become
available. Looking ahead, our strategy remains intact, and I am
committed to accelerating the pace and intensity of our efforts to
deliver sustained performance and create value for our
shareholders."
1.
|
Refers to the sum of
all future projected cash collections on the Company's
nonperforming loan portfolios.
|
2.
|
Calculated by dividing
cash receipts less operating expenses by cash receipts. Cash
receipts refers to cash collections on the Company's nonperforming
loan portfolios, fees and revenue recognized from the Company's
class action claims recovery services.
|
3.
|
A reconciliation of net
income, the most directly comparable financial measure calculated
and reported in accordance with GAAP, to Adjusted EBITDA can be
found at the end of this press release.
|
Cash Collections and Revenues
The following table
presents cash collections by quarter and by source on an as
reported and constant currency-adjusted basis:
|
|
|
|
|
|
|
|
|
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|
Cash Collection
Source
|
|
2023
|
|
2022
|
($ in
thousands)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
Americas and Australia
Core
|
|
$
227,960
|
|
$
205,619
|
|
$
225,775
|
|
$
244,377
|
|
$
270,284
|
Americas
Insolvency
|
|
25,751
|
|
27,971
|
|
31,911
|
|
34,278
|
|
35,209
|
Europe Core
|
|
134,005
|
|
134,016
|
|
132,072
|
|
142,470
|
|
151,162
|
Europe
Insolvency
|
|
23,568
|
|
24,051
|
|
22,586
|
|
22,935
|
|
24,325
|
Total Cash
Collections
|
|
$
411,284
|
|
$
391,657
|
|
$
412,344
|
|
$
444,060
|
|
$
480,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Cash Collection
Source -
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency-Adjusted
|
|
2023
|
|
|
|
|
|
|
|
2022
|
($ in
thousands)
|
|
Q1
|
|
|
|
|
|
|
|
Q1
|
Americas and Australia
Core
|
|
$
227,960
|
|
|
|
|
|
|
|
$
269,430
|
Americas
Insolvency
|
|
25,751
|
|
|
|
|
|
|
|
35,176
|
Europe Core
|
|
134,005
|
|
|
|
|
|
|
|
138,585
|
Europe
Insolvency
|
|
23,568
|
|
|
|
|
|
|
|
22,091
|
Total Cash
Collections
|
|
$
411,284
|
|
|
|
|
|
|
|
$
465,282
|
|
|
|
|
|
|
|
|
|
|
|
- Total cash collections in Q1 2023 decreased 14.5% (or 11.6% on
a constant currency-adjusted basis) to $411.3 million, compared to $481.0 million in the first quarter of 2022 ("Q1
2022"). The decrease was primarily due to a 30.2% decrease in U.S.
call center and other collections, which was driven by lower levels
of portfolio purchases. Europe
cash collections decreased by 10.2%, and 1.9% on a constant
currency-adjusted basis.
- Total portfolio revenue in Q1 2023 was $151.3 million compared to $237.4 million in Q1 2022. The decrease was
primarily due to a softer-than-expected U.S. tax season, which
prompted a reduction in forward-looking ERC.
Expenses
- Operating expenses in Q1 2023 increased by $20.5 million, or 12.1%, compared to Q1 2022. The
increase was primarily driven by:
-
- an $11.3 million increase in
compensation and employee services expenses primarily due to
$7.5 million in severance
expenses;
- a $7.3 million increase in legal
collections costs due to the higher volume of accounts placed into
the legal channel in the U.S; and
- a $5.5 million increase in
outside fees and services due to $7.6
million in certain case-specific litigation expenses.
- The effective tax rate for Q1 2023 was 25.7%.
Portfolio Acquisitions
- The Company purchased $230.2
million in portfolios of nonperforming loans in Q1
2023.
- At the end of Q1 2023, the Company had in place maximum forward
flow commitments1 of up to $622.4
million, comprised of $344.6
million in the Americas and Australia and $277.8
million in Europe.
1.
|
Contractual agreements
with sellers of nonperforming loans that allow for the purchase of
nonperforming portfolios at pre-established prices.
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Purchase
Source
|
|
2023
|
|
2022
|
($ in
thousands)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
Americas and Australia
Core
|
|
$
116,867
|
|
$
118,581
|
|
$
100,780
|
|
$
99,962
|
|
$
90,639
|
Americas
Insolvency
|
|
15,701
|
|
8,967
|
|
8,988
|
|
6,369
|
|
9,118
|
Europe Core
|
|
90,454
|
|
140,011
|
|
59,426
|
|
123,814
|
|
38,764
|
Europe
Insolvency
|
|
7,203
|
|
20,535
|
|
13,910
|
|
1,202
|
|
8,929
|
Total Portfolio
Acquisitions
|
|
$
230,225
|
|
$
288,094
|
|
$
183,104
|
|
$
231,347
|
|
$
147,450
|
|
|
|
|
|
|
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|
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 May 8, 2024, or call
877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use
access code 1921134 until May 15,
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
March 31,
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
Portfolio
income
|
$
188,242
|
|
$
207,532
|
Changes in expected
recoveries
|
(36,912)
|
|
29,914
|
Total portfolio
revenue
|
151,330
|
|
237,446
|
Other
revenue
|
4,140
|
|
3,159
|
Total
revenues
|
155,470
|
|
240,605
|
Operating
expenses:
|
|
|
|
Compensation and
employee services
|
82,403
|
|
71,096
|
Legal collection
fees
|
8,838
|
|
10,873
|
Legal collection
costs
|
23,945
|
|
16,557
|
Agency fees
|
17,378
|
|
17,388
|
Outside fees and
services
|
24,944
|
|
19,378
|
Communication
|
10,527
|
|
12,583
|
Rent and
occupancy
|
4,448
|
|
4,987
|
Depreciation and
amortization
|
3,589
|
|
3,778
|
Other operating
expenses
|
13,042
|
|
11,998
|
Total operating
expenses
|
189,114
|
|
168,638
|
(Loss)/income from operations
|
(33,644)
|
|
71,967
|
Other income and
(expense):
|
|
|
|
Interest expense,
net
|
(38,283)
|
|
(31,748)
|
Foreign exchange loss,
net
|
(9)
|
|
(532)
|
Other
|
(650)
|
|
(490)
|
(Loss)/income before
income taxes
|
(72,586)
|
|
39,197
|
Income tax
(benefit)/expense
|
(18,683)
|
|
4,579
|
Net
(loss)/income
|
(53,903)
|
|
34,618
|
Adjustment for net
income/(loss) attributable to
noncontrolling interests
|
4,726
|
|
(5,354)
|
Net (loss)/income
attributable to PRA Group, Inc.
|
$
(58,629)
|
|
$
39,972
|
Net (loss)/income per
common share attributable to PRA Group, Inc.:
|
|
|
|
Basic
|
$
(1.50)
|
|
$
0.98
|
Diluted
|
$
(1.50)
|
|
$
0.97
|
Weighted average number
of shares outstanding:
|
|
|
|
Basic
|
39,033
|
|
40,777
|
Diluted
|
39,033
|
|
41,304
|
PRA Group,
Inc.
Consolidated Balance
Sheets
(Amounts in
thousands)
|
|
|
(unaudited)
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
116,471
|
|
$
83,376
|
Restricted cash and
cash equivalents
|
359,208
|
|
1,382
|
Investments
|
77,877
|
|
79,948
|
Finance receivables,
net
|
3,286,497
|
|
3,295,008
|
Income taxes
receivable
|
41,398
|
|
31,774
|
Deferred tax assets,
net
|
57,551
|
|
56,908
|
Right-of-use
assets
|
53,187
|
|
54,506
|
Property and
equipment, net
|
48,500
|
|
51,645
|
Goodwill
|
420,647
|
|
435,921
|
Other
assets
|
82,293
|
|
85,206
|
Total
assets
|
$
4,543,629
|
|
$
4,175,674
|
Liabilities and
Equity
|
|
|
|
Liabilities:
|
|
|
|
Accounts
payable
|
$
4,837
|
|
$
7,329
|
Accrued
expenses
|
120,640
|
|
111,395
|
Income taxes
payable
|
19,809
|
|
25,693
|
Deferred tax
liabilities, net
|
29,324
|
|
42,918
|
Lease
liabilities
|
57,939
|
|
59,384
|
Interest-bearing
deposits
|
108,779
|
|
112,992
|
Borrowings
|
2,937,895
|
|
2,494,858
|
Other
liabilities
|
39,697
|
|
34,355
|
Total
liabilities
|
3,318,920
|
|
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, 39,170 shares issued
and outstanding at March 31, 2023; 100,000 shares authorized,
38,980 shares
issued and outstanding at December 31, 2022
|
392
|
|
390
|
Additional paid-in
capital
|
285
|
|
2,172
|
Retained
earnings
|
1,514,396
|
|
1,573,025
|
Accumulated other
comprehensive loss
|
(356,730)
|
|
(347,926)
|
Total stockholders'
equity - PRA Group, Inc.
|
1,158,343
|
|
1,227,661
|
Noncontrolling
interest
|
66,366
|
|
59,089
|
Total
equity
|
1,224,709
|
|
1,286,750
|
Total liabilities and
equity
|
$
4,543,629
|
|
$
4,175,674
|
Select Expenses
(Income)
Amounts in
thousands, pre-tax
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2023
|
December 31,
2022
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
June 30,
2021
|
Noncash interest
expense -
amortization of debt
issuance costs
|
2,441
|
2,444
|
2,555
|
2,471
|
2,627
|
2,455
|
2,406
|
2,391
|
Change in fair
value
of derivatives
|
(5,470)
|
(3,309)
|
(1,042)
|
1,525
|
2,726
|
3,115
|
2,982
|
2,911
|
Amortization of
intangibles
|
66
|
73
|
73
|
77
|
83
|
(269)
|
104
|
105
|
Stock-based
compensation
expense
|
3,799
|
2,206
|
3,101
|
3,849
|
3,891
|
3,470
|
4,317
|
4,040
|
Purchase Price
Multiples
as of March 31,
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
|
$
4,797,375
|
$
36,563
|
311 %
|
238 %
|
2013
|
390,826
|
905,829
|
14,434
|
232 %
|
211 %
|
2014
|
404,117
|
872,324
|
23,500
|
216 %
|
204 %
|
2015
|
443,114
|
899,293
|
45,410
|
203 %
|
205 %
|
2016
|
455,767
|
1,075,915
|
81,221
|
236 %
|
201 %
|
2017
|
532,851
|
1,200,467
|
135,622
|
225 %
|
193 %
|
2018
|
653,975
|
1,464,662
|
199,190
|
224 %
|
202 %
|
2019
|
581,476
|
1,294,091
|
256,184
|
223 %
|
206 %
|
2020
|
435,668
|
947,844
|
299,252
|
218 %
|
213 %
|
2021
|
435,846
|
781,115
|
486,989
|
179 %
|
191 %
|
2022
|
406,082
|
721,791
|
610,010
|
178 %
|
179 %
|
2023
|
117,160
|
204,528
|
201,535
|
175 %
|
175 %
|
Subtotal
|
6,398,778
|
15,165,234
|
2,389,910
|
|
|
Americas
Insolvency
|
|
|
|
|
1996-2012
|
1,038,223
|
2,146,434
|
203
|
207 %
|
165 %
|
2013
|
227,834
|
355,606
|
103
|
156 %
|
133 %
|
2014
|
148,420
|
218,685
|
280
|
147 %
|
124 %
|
2015
|
63,170
|
87,919
|
201
|
139 %
|
125 %
|
2016
|
91,442
|
117,460
|
433
|
128 %
|
123 %
|
2017
|
275,257
|
355,158
|
2,686
|
129 %
|
125 %
|
2018
|
97,879
|
137,184
|
11,869
|
140 %
|
127 %
|
2019
|
123,077
|
168,061
|
38,651
|
137 %
|
128 %
|
2020
|
62,130
|
89,842
|
41,929
|
145 %
|
136 %
|
2021
|
55,187
|
72,875
|
46,009
|
132 %
|
136 %
|
2022
|
33,442
|
46,205
|
41,226
|
138 %
|
139 %
|
2023
|
15,701
|
21,079
|
20,811
|
134 %
|
134 %
|
Subtotal
|
2,231,762
|
3,816,508
|
204,401
|
|
|
Total Americas and
Australia
|
8,630,540
|
18,981,742
|
2,594,311
|
|
|
Europe
Core
|
|
|
|
|
|
2012
|
20,409
|
43,973
|
—
|
215 %
|
187 %
|
2013
|
20,334
|
27,039
|
1
|
133 %
|
119 %
|
2014
(1)
|
773,811
|
2,365,846
|
385,266
|
306 %
|
208 %
|
2015
|
411,340
|
727,491
|
146,999
|
177 %
|
160 %
|
2016
|
333,090
|
567,548
|
179,801
|
170 %
|
167 %
|
2017
|
252,174
|
358,180
|
115,098
|
142 %
|
144 %
|
2018
|
341,775
|
540,907
|
215,509
|
158 %
|
148 %
|
2019
|
518,610
|
805,423
|
366,897
|
155 %
|
152 %
|
2020
|
324,119
|
557,152
|
292,626
|
172 %
|
172 %
|
2021
|
412,411
|
698,282
|
472,516
|
169 %
|
170 %
|
2022
|
359,447
|
580,548
|
534,007
|
162 %
|
162 %
|
2023
|
91,945
|
157,933
|
155,919
|
172 %
|
172 %
|
Subtotal
|
3,859,465
|
7,430,322
|
2,864,639
|
|
|
Europe
Insolvency
|
|
|
|
|
2014
(1)
|
10,876
|
18,669
|
—
|
172 %
|
129 %
|
2015
|
18,973
|
29,000
|
70
|
153 %
|
139 %
|
2016
|
39,338
|
57,076
|
1,156
|
145 %
|
130 %
|
2017
|
39,235
|
51,169
|
3,700
|
130 %
|
128 %
|
2018
|
44,908
|
52,454
|
9,681
|
117 %
|
123 %
|
2019
|
77,218
|
110,875
|
31,642
|
144 %
|
130 %
|
2020
|
105,440
|
156,589
|
62,485
|
149 %
|
129 %
|
2021
|
53,230
|
71,526
|
42,227
|
134 %
|
134 %
|
2022
|
44,604
|
61,034
|
54,759
|
137 %
|
137 %
|
2023
|
7,352
|
10,087
|
10,011
|
137 %
|
137 %
|
Subtotal
|
441,174
|
618,479
|
215,731
|
|
|
Total Europe
|
4,300,639
|
8,048,801
|
3,080,370
|
|
|
Total PRA
Group
|
$
12,931,179
|
$
27,030,543
|
$
5,674,681
|
|
|
|
|
(1)
|
Includes finance
receivables portfolios that were acquired through the acquisition
of Aktiv Kapital AS in 2014 (as described in our Annual Report on
Form 10-K for the year ended December 31, 2022 ("2022 Form
10-K")).
|
(2)
|
Includes the
acquisition date finance receivables portfolios that were acquired
through our business acquisitions.
|
(3)
|
Non-U.S. amounts are
presented at the exchange rate at the end of the year in which the
portfolio was purchased. In addition, any purchase price
adjustments that occur throughout the life of the portfolio are
presented at the year-end exchange rate for the respective year of
purchase.
|
(4)
|
Non-U.S. amounts are
presented at the year-end exchange rate for the respective year of
purchase.
|
(5)
|
Non-U.S. amounts are
presented at the March 31, 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
March 31, 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
March 31, 2023(3)
|
Americas and
Australia Core
|
|
|
|
|
|
1996-2012
|
$
4,930
|
$
3,132
|
$
345
|
$
3,477
|
$
8,799
|
2013
|
2,590
|
1,119
|
429
|
1,548
|
6,395
|
2014
|
3,117
|
1,429
|
161
|
1,590
|
8,983
|
2015
|
3,789
|
2,453
|
(1,852)
|
601
|
18,065
|
2016
|
6,740
|
4,712
|
(3,078)
|
1,634
|
26,353
|
2017
|
13,064
|
7,622
|
(5,636)
|
1,986
|
57,300
|
2018
|
27,614
|
11,442
|
(1,040)
|
10,402
|
108,717
|
2019
|
33,145
|
14,841
|
(2,958)
|
11,883
|
138,869
|
2020
|
38,142
|
16,845
|
(6,426)
|
10,419
|
167,501
|
2021
|
40,213
|
23,087
|
(22,356)
|
731
|
260,663
|
2022
|
51,622
|
26,692
|
937
|
27,629
|
360,224
|
2023
|
2,994
|
1,811
|
378
|
2,189
|
116,249
|
Subtotal
|
227,960
|
115,185
|
(41,096)
|
74,089
|
1,278,118
|
Americas
Insolvency
|
|
|
|
|
|
1996-2012
|
234
|
83
|
153
|
236
|
—
|
2013
|
67
|
39
|
28
|
67
|
—
|
2014
|
123
|
66
|
12
|
78
|
—
|
2015
|
106
|
40
|
29
|
69
|
102
|
2016
|
190
|
47
|
9
|
56
|
348
|
2017
|
1,605
|
181
|
(123)
|
58
|
2,424
|
2018
|
4,401
|
455
|
(133)
|
322
|
11,128
|
2019
|
7,705
|
1,036
|
57
|
1,093
|
35,596
|
2020
|
4,919
|
1,226
|
145
|
1,371
|
35,750
|
2021
|
4,339
|
1,309
|
(20)
|
1,289
|
37,812
|
2022
|
1,794
|
1,018
|
(27)
|
991
|
31,722
|
2023
|
268
|
215
|
(31)
|
184
|
15,614
|
Subtotal
|
25,751
|
5,715
|
99
|
5,814
|
170,496
|
Total Americas and
Australia
|
253,711
|
120,900
|
(40,997)
|
79,903
|
1,448,614
|
Europe
Core
|
|
|
|
|
|
2012
|
191
|
—
|
191
|
191
|
—
|
2013
|
95
|
—
|
95
|
95
|
—
|
2014
(1)
|
25,462
|
18,404
|
109
|
18,513
|
107,836
|
2015
|
8,748
|
4,274
|
(408)
|
3,866
|
80,755
|
2016
|
7,515
|
4,040
|
(807)
|
3,233
|
105,983
|
2017
|
5,322
|
1,963
|
(558)
|
1,405
|
79,388
|
2018
|
10,568
|
3,930
|
(123)
|
3,807
|
142,505
|
2019
|
19,118
|
6,210
|
4,178
|
10,388
|
250,616
|
2020
|
14,641
|
5,794
|
(994)
|
4,800
|
179,990
|
2021
|
19,176
|
8,685
|
(2,405)
|
6,280
|
284,941
|
2022
|
21,193
|
8,965
|
(124)
|
8,841
|
334,594
|
2023
|
1,976
|
397
|
816
|
1,213
|
91,123
|
Subtotal
|
134,005
|
62,662
|
(30)
|
62,632
|
1,657,731
|
Europe
Insolvency
|
|
|
|
|
|
2014
(1)
|
49
|
—
|
49
|
49
|
—
|
2015
|
98
|
12
|
41
|
53
|
61
|
2016
|
454
|
83
|
86
|
169
|
864
|
2017
|
1,295
|
90
|
237
|
327
|
3,436
|
2018
|
1,942
|
216
|
(122)
|
94
|
8,864
|
2019
|
4,714
|
736
|
330
|
1,066
|
27,828
|
2020
|
8,233
|
1,307
|
3,089
|
4,396
|
55,042
|
2021
|
3,745
|
976
|
156
|
1,132
|
34,889
|
2022
|
2,963
|
1,201
|
131
|
1,332
|
41,786
|
2023
|
75
|
59
|
118
|
177
|
7,382
|
Subtotal
|
23,568
|
4,680
|
4,115
|
8,795
|
180,152
|
Total Europe
|
157,573
|
67,342
|
4,085
|
71,427
|
1,837,883
|
Total PRA
Group
|
$
411,284
|
$
188,242
|
$
(36,912)
|
$
151,330
|
$
3,286,497
|
|
|
(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 March 31, 2023 exchange rate.
|
Cash Collections by
Year, By Year of Purchase (1)
as of March 31,
2023
Amounts in
millions
|
|
|
Cash
Collections
|
Purchase
Period
|
Purchase
Price (3)(4)
|
1996-2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
Total
|
Americas and
Australia Core
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2012
|
$
1,541.9
|
$
2,962.4
|
$ 554.9
|
$ 412.5
|
$ 280.3
|
$ 178.9
|
$ 118.1
|
$
83.8
|
$
62.9
|
$
41.5
|
$
29.9
|
$
23.5
|
$ 5.1
|
$ 4,753.8
|
2013
|
390.8
|
—
|
101.6
|
247.9
|
194.0
|
120.8
|
78.9
|
56.5
|
36.9
|
23.2
|
16.7
|
12.5
|
2.6
|
891.6
|
2014
|
404.1
|
—
|
—
|
92.7
|
253.5
|
170.3
|
114.2
|
82.2
|
55.3
|
31.9
|
22.3
|
15.0
|
3.1
|
840.5
|
2015
|
443.1
|
—
|
—
|
—
|
117.0
|
228.4
|
185.9
|
126.6
|
83.6
|
57.2
|
34.9
|
19.5
|
3.8
|
856.9
|
2016
|
455.8
|
—
|
—
|
—
|
—
|
138.7
|
256.5
|
194.6
|
140.6
|
105.9
|
74.2
|
38.4
|
6.7
|
955.6
|
2017
|
532.9
|
—
|
—
|
—
|
—
|
—
|
107.3
|
278.7
|
256.5
|
192.5
|
130.0
|
76.3
|
13.1
|
1054.4
|
2018
|
654.0
|
—
|
—
|
—
|
—
|
—
|
—
|
122.7
|
361.9
|
337.7
|
239.9
|
146.1
|
27.6
|
1235.9
|
2019
|
581.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
143.8
|
349.0
|
289.8
|
177.7
|
33.1
|
993.4
|
2020
|
435.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
132.9
|
284.3
|
192.0
|
38.1
|
647.3
|
2021
|
435.9
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
85.0
|
177.3
|
40.2
|
302.5
|
2022
|
406.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
67.7
|
51.6
|
119.3
|
2023
|
117.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.0
|
3.0
|
Subtotal
|
6,399.0
|
2,962.4
|
656.5
|
753.1
|
844.8
|
837.1
|
860.9
|
945.1
|
1,141.5
|
1,271.8
|
1,207.0
|
946.0
|
228.0
|
12,654.2
|
Americas
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2012
|
1,038.2
|
1,021.6
|
417.3
|
338.8
|
208.3
|
105.4
|
37.7
|
8.3
|
3.9
|
2.3
|
1.4
|
1.1
|
0.2
|
2,146.3
|
2013
|
227.8
|
—
|
52.5
|
82.6
|
81.7
|
63.4
|
47.8
|
22.0
|
2.9
|
1.3
|
0.8
|
0.5
|
0.1
|
355.6
|
2014
|
148.4
|
—
|
—
|
37.1
|
50.9
|
44.3
|
37.4
|
28.8
|
15.8
|
2.2
|
1.1
|
0.7
|
0.1
|
218.4
|
2015
|
63.2
|
—
|
—
|
—
|
3.4
|
17.9
|
20.1
|
19.8
|
16.7
|
7.9
|
1.3
|
0.6
|
0.1
|
87.8
|
2016
|
91.4
|
—
|
—
|
—
|
—
|
18.9
|
30.4
|
25.1
|
19.9
|
14.4
|
7.4
|
1.8
|
0.2
|
118.1
|
2017
|
275.3
|
—
|
—
|
—
|
—
|
—
|
49.1
|
97.3
|
80.9
|
58.8
|
44.0
|
20.8
|
1.6
|
352.5
|
2018
|
97.9
|
—
|
—
|
—
|
—
|
—
|
—
|
6.7
|
27.4
|
30.5
|
31.6
|
24.6
|
4.4
|
125.2
|
2019
|
123.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
13.5
|
31.4
|
39.1
|
37.8
|
7.7
|
129.5
|
2020
|
62.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.5
|
16.1
|
20.4
|
4.9
|
47.9
|
2021
|
55.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.6
|
17.9
|
4.3
|
26.8
|
2022
|
33.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.2
|
1.8
|
5.0
|
2023
|
15.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.3
|
0.3
|
Subtotal
|
2,231.7
|
1,021.6
|
469.8
|
458.5
|
344.3
|
249.9
|
222.5
|
208.0
|
181.0
|
155.3
|
147.4
|
129.4
|
25.7
|
3,613.4
|
Total Americas and
Australia
|
8,630.7
|
3,984.0
|
1,126.3
|
1,211.6
|
1,189.1
|
1,087.0
|
1,083.4
|
1,153.1
|
1,322.5
|
1,427.1
|
1,354.4
|
1,075.4
|
253.7
|
16,267.6
|
Europe
Core
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
20.4
|
11.6
|
9.0
|
5.6
|
3.2
|
2.2
|
2.0
|
2.0
|
1.5
|
1.2
|
1.2
|
0.9
|
0.1
|
40.5
|
2013
|
20.3
|
—
|
7.1
|
8.5
|
2.4
|
1.3
|
1.2
|
1.3
|
0.9
|
0.7
|
0.7
|
0.5
|
0.1
|
24.7
|
2014
(2)
|
773.8
|
—
|
—
|
153.2
|
292.0
|
246.4
|
220.8
|
206.3
|
172.9
|
149.8
|
149.3
|
122.2
|
25.5
|
1,738.4
|
2015
|
411.3
|
—
|
—
|
—
|
45.8
|
100.3
|
86.2
|
80.9
|
66.1
|
54.3
|
51.4
|
40.7
|
8.8
|
534.5
|
2016
|
333.1
|
—
|
—
|
—
|
—
|
40.4
|
78.9
|
72.6
|
58.0
|
48.3
|
46.7
|
36.9
|
7.5
|
389.3
|
2017
|
252.2
|
—
|
—
|
—
|
—
|
—
|
17.9
|
56.0
|
44.1
|
36.1
|
34.8
|
25.2
|
5.3
|
219.4
|
2018
|
341.8
|
—
|
—
|
—
|
—
|
—
|
—
|
24.3
|
88.7
|
71.3
|
69.1
|
50.7
|
10.6
|
314.7
|
2019
|
518.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.0
|
125.7
|
121.4
|
89.8
|
19.1
|
404.0
|
2020
|
324.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
32.3
|
91.7
|
69.1
|
14.6
|
207.7
|
2021
|
412.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.5
|
89.9
|
19.2
|
157.6
|
2022
|
359.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
33.9
|
21.2
|
55.1
|
2023
|
91.9
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
2.0
|
2.0
|
Subtotal
|
3,859.4
|
11.6
|
16.1
|
167.3
|
343.4
|
390.6
|
407.0
|
443.4
|
480.2
|
519.7
|
614.8
|
559.8
|
134.0
|
4,087.9
|
Europe
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
(2)
|
10.9
|
—
|
—
|
—
|
4.3
|
3.9
|
3.2
|
2.6
|
1.6
|
0.8
|
0.3
|
0.2
|
0.1
|
17.0
|
2015
|
19.0
|
—
|
—
|
—
|
3.0
|
4.4
|
5.0
|
4.8
|
3.9
|
2.9
|
1.6
|
0.7
|
0.1
|
26.4
|
2016
|
39.3
|
—
|
—
|
—
|
—
|
6.2
|
12.7
|
12.9
|
10.7
|
8.0
|
6.0
|
2.7
|
0.5
|
59.7
|
2017
|
39.2
|
—
|
—
|
—
|
—
|
—
|
1.2
|
7.9
|
9.2
|
9.8
|
9.4
|
6.5
|
1.3
|
45.3
|
2018
|
44.9
|
—
|
—
|
—
|
—
|
—
|
—
|
0.6
|
8.4
|
10.3
|
11.7
|
9.8
|
1.9
|
42.7
|
2019
|
77.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.0
|
21.1
|
23.9
|
21.0
|
4.7
|
75.7
|
2020
|
105.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6.1
|
34.7
|
34.1
|
8.2
|
83.1
|
2021
|
53.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.5
|
14.4
|
3.7
|
23.6
|
2022
|
44.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.5
|
3.0
|
7.5
|
2023
|
7.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.1
|
0.1
|
Subtotal
|
441.1
|
—
|
—
|
—
|
7.3
|
14.5
|
22.1
|
28.8
|
38.8
|
59.0
|
93.1
|
93.9
|
23.6
|
381.1
|
Total Europe
|
4,300.5
|
11.6
|
16.1
|
167.3
|
350.7
|
405.1
|
429.1
|
472.2
|
519.0
|
578.7
|
707.9
|
653.7
|
157.6
|
4,469.0
|
Total PRA
Group
|
$ 12,931.2
|
$
3,995.6
|
$
1,142.4
|
$
1,378.9
|
$
1,539.8
|
$
1,492.1
|
$
1,512.5
|
$
1,625.3
|
$
1,841.5
|
$
2,005.8
|
$
2,062.3
|
$
1,729.1
|
$ 411.3
|
$
20,736.6
|
|
|
(1)
|
Non-U.S. amounts are
presented using the average exchange rates during the cash
collection period.
|
(2)
|
Includes finance
receivables portfolios that were acquired through the acquisition
of Aktiv Kapital AS in 2014 (as described in our 2022 Form
10-K).
|
(3)
|
Includes the
nonperforming loan portfolios that were acquired through our
business acquisitions.
|
(4)
|
Non-U.S. amounts are
presented at the exchange rate at the end of the year in which the
portfolio was purchased. In addition, any purchase price
adjustments that occur throughout the life of the pool are
presented at the year-end exchange rate for the respective year of
purchase.
|
Use of Non-GAAP Financial Measures
PRA Group, Inc. reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management uses certain non-GAAP financial measures,
including Adjusted EBITDA, internally to evaluate the
Company's performance and to set performance goals. Adjusted
EBITDA is calculated as net income attributable to PRA Group, Inc.
plus income tax expense; less foreign exchange gain (or plus
foreign exchange loss); plus interest expense, net; plus other
expense (or less other income); plus depreciation and amortization;
plus adjustment for net income attributable to noncontrolling
interests; and plus recoveries applied to negative allowance less
changes in expected recoveries. Adjusted EBITDA is a supplemental
measure of performance that is not required by, or presented in
accordance with, GAAP. PRA Group, Inc. presents Adjusted EBITDA
because the Company considers it an important supplemental measure
of operations and financial performance. Management believes
Adjusted EBITDA helps provide enhanced period-to-period
comparability of operations and financial performance and is useful
to investors as other companies in the industry report similar
financial measures. Adjusted EBITDA should not be considered as an
alternative to net income determined in accordance with GAAP. Set
forth below is a reconciliation of net income, the most directly
comparable financial measure calculated and reported in accordance
with GAAP, to Adjusted EBITDA for the last twelve months (LTM)
ended March 31, 2023 and for the year
ended December 31, 2022. The
calculation of Adjusted EBITDA below may not be comparable to the
calculation of similarly titled measures reported by other
companies.
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
LTM
|
For the Year
Ended
|
Adjusted EBITDA for
PRA Group ($ in millions)
|
March 31,
2023
|
December 31,
2022
|
Net income attributable
to PRA Group, Inc.
|
$
19
|
$
117
|
Adjustments:
|
|
|
|
|
|
|
Income tax
expense
|
14
|
37
|
Foreign exchange
gains
|
(2)
|
(1)
|
Interest expense,
net
|
137
|
131
|
Other
expense/(income)
|
1
|
1
|
Depreciation and
amortization
|
15
|
15
|
Adjustment for net
income attributable to noncontrolling interests
|
11
|
1
|
Recoveries applied to
negative allowance less Changes in expected
recoveries
|
820
|
806
|
Adjusted
EBITDA
|
$
1,015
|
$
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 March 31, 2023, for the LTM as of
March 31, 2023 assuming repayment of
our 2023 convertible notes on March 31,
2023, and for the year ended December
31, 2022 (amounts in millions):
Debt to Adjusted
EBITDA
|
|
LTM
|
LTM
|
For the Year
Ended
|
|
March 31,
2023
|
March 31,
2023(1)
|
December 31,
2022
|
Borrowings
|
$
2,938
|
$
2,593
|
$
2,495
|
LTM Adjusted
EBITDA
|
1,015
|
1,015
|
1,107
|
Debt to LTM Adjusted
EBITDA
|
2.89
|
2.55
|
2.25
|
(1)
|
For the LTM as of March
31, 2023, as adjusted, assuming repayment of our 2023 Notes on
March 31, 2023.
|
Investor Contact:
Najim
Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com
News Media Contact:
Elizabeth
Kersey
Senior Vice President, Communications and Public Policy
(757) 431-3398
Elizabeth.Kersey@PRAGroup.com
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SOURCE PRA Group