false000118534800011853482024-08-052024-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):August 5, 2024
PRA Group, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
Delaware000-5005875-3078675
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
120 Corporate Boulevard
Norfolk, Virginia23502
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(888)772-7326
Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐



Item 2.02 Results of Operations and Financial Condition.

On August 5, 2024, PRA Group, Inc. (the “Company”) issued a press release announcing its second quarter 2024 results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated into this Item 2.02 by reference.

Item 7.01 Regulation FD Disclosure.

The slide presentation being used in connection with the Company’s previously announced August 5, 2024 webcast and conference call to discuss its second quarter 2024 results is available in the Investor Relations section of the Company’s website at https://ir.pragroup.com/events-and-presentations.

None of the information furnished in Item 2.02, Item 7.01 or Exhibit 99.1 of this Form 8-K shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Unless expressly set forth by specific reference in such filings, none of the information furnished in this Form 8-K shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01 Financial Statements and Exhibits
(d)Exhibits
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PRA Group, Inc.
Date: August 5, 2024By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer





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PRA Group Reports Second Quarter 2024 Results

Executing Successful Turnaround in U.S. Business

NORFOLK, Va., August 5, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2024 ("Q2 2024").

Q2 2024 Highlights
•Net income attributable to PRA Group, Inc. of $21.5 million, or diluted earnings per share of $0.54.
•Total portfolio purchases of $379.4 million.
•Total cash collections of $473.9 million.
•Estimated remaining collections (ERC)1 of $6.8 billion.
•Cash efficiency ratio2 of 58.9%.
•Adjusted EBITDA3 for the 12 months ended June 30, 2024 of $1.1 billion.

Three Months Ended June 30,Six Months Ended June 30,
($ in thousands, except per share amounts)2024202320242023
Net income/(loss) attributable to PRA Group, Inc.$21,516 $(3,804)$24,991 $(62,433)
Diluted earnings per share$0.54 $(0.10)$0.63 $(1.60)

“The second quarter was another important step in demonstrating the turnaround in our U.S. business, delivering against our financial and operational targets for 2024, and positioning the Company for future growth," said Vikram Atal, president and chief executive officer. "We invested $379 million during the quarter, which represents our third highest quarterly level of purchases over the past five years. This was driven by the continued strength of U.S. portfolio supply coupled with stronger supply in Europe this quarter, with pricing remaining attractive globally. Cash collections grew 13% year-over-year, primarily reflecting higher recent purchases and the positive impact of our cash-generating and operational initiatives in our U.S. business, particularly in our legal collections channel where we have been investing for growth. We also experienced continued cash collections growth in our European business. Our net income for the quarter reflects the progress we have made in executing the turnaround with speed across a broad set of initiatives. Looking ahead, we remain focused on sustaining profitability and positioning the Company for attractive growth in the years to come."

1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
2.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.
3.A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release.

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

Cash Collection Source20242023
($ in thousands)Q2Q1Q4Q3Q2
Americas and Australia Core$263,828 $256,861 $220,127 $223,714 $220,886 
Americas Insolvency26,971 25,209 24,293 27,809 26,384 
Europe Core156,739 145,933 144,361 144,402 149,324 
Europe Insolvency26,344 21,515 21,502 23,639 22,725 
Total cash collections$473,882 $449,518 $410,283 $419,564 $419,319 
Cash Collection Source -
Constant Currency-Adjusted20242023
($ in thousands)Q2Q2
Americas and Australia Core$263,828 $219,118 
Americas Insolvency26,971 26,377 
Europe Core156,739 149,889 
Europe Insolvency26,344 22,888 
Total Cash collections$473,882 $418,272 

•Total cash collections in Q2 2024 increased 13.0% to $473.9 million compared to $419.3 million in the second quarter of 2023 ("Q2 2023"). The increase was primarily driven by higher cash collections in the U.S. and Europe. For the six months ended June 30, 2024, cash collections increased $92.8 million, or 11.2%, compared to the same period last year.
•Total portfolio revenue in Q2 2024 increased 37.6% to $282.6 million compared to $205.4 million in Q2 2023. For the six months ended June 30, 2024, total portfolio revenue increased 50.3% to $536.3 million compared to $356.8 million in the same period last year.

Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Portfolio income$209,290 $184,290 $411,346 $372,532 
Recoveries received in excess of forecast$54,260 $25,348 $90,098 $29,186 
Changes in expected future recoveries 19,060 (4,212)34,896 (44,962)
Changes in expected recoveries$73,320 $21,136 $124,994 $(15,776)
Total portfolio revenue$282,610 $205,426 $536,340 $356,756 

Expenses
•Operating expenses in Q2 2024 increased $31.3 million, or 19.1%, to $195.0 million compared to $163.7 million in Q2 2023.
◦Legal collection costs increased $13.8 million, primarily due to increased investments in our U.S. legal channel to drive future cash growth, as well as expansion of legal collections activities in Europe.
◦Compensation and employee services expenses increased $8.5 million, primarily due to lower compensation accruals in Q2 2023.
◦Legal collection fees increased $4.2 million, due to higher external legal collections in our U.S. Core portfolio.


•For the six months ended June 30, 2024, operating expenses increased by $31.4 million, or 8.9%, compared to the same period last year.
•Interest expense, net in Q2 2024 was $55.4 million, an increase of $12.3 million, or 28.7%, compared to $43.0 million in Q2 2023, reflecting increased interest rates and a higher average debt balance.
•The effective tax rate for the six months ended June 30, 2024 was 23.1%.

Portfolio Acquisitions
•The Company purchased $379.4 million in portfolios of nonperforming loans in Q2 2024.
•At the end of Q2 2024, the Company had in place estimated forward flow commitments1 of $385.6 million over the next 12 months, comprised of $272.1 million in the Americas and Australia and $113.5 million in Europe.
Portfolio Purchase Source20242023
($ in thousands)Q2Q1Q4Q3Q2
Americas & Australia Core$198,761 $174,660 $143,052 $187,554 $171,440 
Americas Insolvency26,627 22,156 18,608 44,279 12,189 
Europe Core127,991 43,997 110,780 60,628 136,834 
Europe Insolvency25,990 5,004 12,476 18,722 7,296 
Total portfolio acquisitions$379,369 $245,817 $284,916 $311,183 $327,759 

Credit Availability
•Total availability under the Company's credit facilities as of June 30, 2024 was $1.4 billion, comprised of $741.9 million based on current ERC and $706.6 million of additional availability subject to borrowing base and debt covenants, including advance rates.
•The Company intends to borrow $298.0 million under its North American revolving credit agreement on or about September 1, 2024 to redeem its Senior Notes due 2025, which, all other effects being equal, would cause a corresponding decrease to the availability under its credit facilities.

2024 Financial and Operational Targets
The Company expects 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
•6% - 8% return on average tangible equity2

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 August 5, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 71248# until August 12, 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.


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.

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 June 30,Six Months Ended June 30,
2024202320242023
Revenues:
Portfolio income$209,290 $184,290 $411,346 $372,532 
Changes in expected recoveries73,320 21,136 124,994 (15,776)
Total portfolio revenue282,610 205,426 536,340 356,756 
Other revenue1,619 3,810 3,475 7,950 
Total revenues284,229 209,236 539,815 364,706 
Operating expenses:
Compensation and employee services74,241 65,788 147,838 148,191 
Legal collection fees13,762 9,551 25,874 18,389 
Legal collection costs35,274 21,522 61,965 45,467 
Agency fees21,008 17,677 40,731 35,055 
Outside fees and services18,124 18,262 43,174 43,206 
Communication11,577 10,117 24,155 20,644 
Rent and occupancy4,136 4,319 8,280 8,767 
Depreciation and amortization2,637 3,482 5,357 7,071 
Other operating expenses14,248 12,957 26,823 25,999 
Total operating expenses195,007 163,675 384,197 352,789 
    Income from operations89,222 45,561 155,618 11,917 
Other income and (expense):
Interest expense, net(55,353)(43,022)(107,631)(81,305)
Foreign exchange gain/(loss), net(99)429 128 420 
Other46 (230)(160)(880)
Income/(loss) before income taxes33,816 2,738 47,955 (69,848)
Income tax expense/(benefit)8,702 1,578 11,088 (17,105)
Net income/(loss)25,114 1,160 36,867 (52,743)
Adjustment for net income attributable to noncontrolling interests3,598 4,964 11,876 9,690 
Net income/(loss) attributable to PRA Group, Inc.$21,516 $(3,804)$24,991 $(62,433)
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic$0.55 $(0.10)$0.64 $(1.60)
Diluted$0.54 $(0.10)$0.63 $(1.60)
Weighted average number of shares outstanding:
Basic39,364 39,190 39,319 39,111 
Diluted39,546 39,190 39,497 39,111 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
June 30,
2024		December 31,
2023
Assets
Cash and cash equivalents$118,865 $112,528 
Investments59,619 72,404 
Finance receivables, net3,820,186 3,656,598 
Income taxes receivable34,813 27,713 
Deferred tax assets, net76,486 74,694 
Right-of-use assets42,374 45,877 
Property and equipment, net32,827 36,450 
Goodwill415,646 431,564 
Other assets61,124 67,526 
Total assets$4,661,940 $4,525,354 
Liabilities and Equity
Liabilities:
Accounts payable$10,198 $6,325 
Accrued expenses114,260 131,893 
Income taxes payable23,583 17,912 
Deferred tax liabilities, net18,423 17,051 
Lease liabilities46,746 50,300 
Interest-bearing deposits114,991 115,589 
Borrowings3,113,777 2,914,270 
Other liabilities16,684 32,638 
Total liabilities3,458,662 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, 39,417 shares issued and outstanding as of June 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023394 392 
Additional paid-in capital12,339 7,071 
Retained earnings1,514,539 1,489,548 
Accumulated other comprehensive loss(381,809)(329,899)
Total stockholders' equity - PRA Group, Inc.1,145,463 1,167,112 
Noncontrolling interests57,815 72,264 
Total equity1,203,278 1,239,376 
Total liabilities and equity$4,661,940 $4,525,354 






Select Expenses (Income)
Amounts in thousands, pre-tax
Three Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Noncash interest expense - amortization of debt issuance costs$2,331 $2,200 $2,177 $2,220 $2,384 $2,441 $2,444 $2,555 
Change in fair value of derivatives(5,628)(5,930)(6,734)(6,545)(6,960)(5,470)(3,309)(1,042)
Amortization of intangibles58 60 69 69 68 66 73 73 
Impairment of real estate— — 202 5,037 — — — — 
Stock-based compensation expense3,555 3,327 2,952 1,629 2,715 3,799 2,206 3,101 




Purchase Price Multiples
as of June 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 $5,745,296 $54,130 297%233%
2014404,117 893,611 28,903 221%204%
2015443,114 912,525 39,549 206%205%
2016455,767 1,088,320 60,856 239%201%
2017532,851 1,209,023 92,474 227%193%
2018653,975 1,508,340 134,993 231%202%
2019581,476 1,302,954 143,944 224%206%
2020435,668 952,248 165,787 219%213%
2021435,846 740,020 286,888 170%191%
2022406,082 707,943 364,784 174%179%
2023622,583 1,224,773 948,003 197%197%
2024373,421 787,310 759,217 211%211%
Subtotal7,277,622 17,072,363 3,079,528 
Americas Insolvency
1996-20131,266,056 2,503,066 26 198%159%
2014148,420 218,933 46 148%124%
201563,170 88,083 35 139%125%
201691,442 118,282 232 129%123%
2017275,257 358,452 1,185 130%125%
201897,879 136,147 942 139%127%
2019123,077 168,485 7,765 137%128%
202062,130 91,590 20,018 147%136%
202155,187 74,273 26,054 135%136%
202233,442 47,143 29,305 141%139%
202391,282 120,038 97,797 132%135%
202448,783 71,770 68,932 147%147%
Subtotal2,356,125 3,996,262 252,337 
Total Americas and Australia9,633,747 21,068,625 3,331,865 
Europe Core
2012-201340,742 72,662 1 178%153%
2014773,811 2,564,807 415,481 331%208%
2015411,340 755,061 134,415 184%160%
2016333,090 579,777 156,278 174%167%
2017252,174 369,070 101,373 146%144%
2018341,775 557,913 185,378 163%148%
2019518,610 848,086 321,430 164%152%
2020324,119 568,114 237,561 175%172%
2021412,411 701,265 387,655 170%170%
2022359,447 584,036 440,058 162%162%
2023410,593 692,794 574,106 169%169%
2024170,988 312,073 304,681 183%183%
Subtotal4,349,100 8,605,658 3,258,417 
Europe Insolvency
201410,876 18,979 — 175%129%
201518,973 29,381 — 155%139%
201639,338 57,841 617 147%130%
201739,235 51,992 1,116 133%128%
201844,908 52,649 2,887 117%123%
201977,218 113,418 14,448 147%130%
2020105,440 157,743 29,880 150%129%
202153,230 73,783 26,655 139%134%
202244,604 61,840 39,949 139%137%
202346,558 64,255 53,764 138%138%
202430,994 45,761 42,648 147%147%
Subtotal511,374 727,642 211,964 
Total Europe4,860,474 9,333,300 3,470,381 
Total PRA Group$14,494,221 $30,401,925 $6,802,246 
(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 June 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
June 30, 2024 (year-to-date)As of June 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$18,065 $7,042 $11,887 $18,929 $16,523 
20147,024 2,805 4,887 7,692 11,018 
20158,806 3,405 7,303 10,708 16,993 
201612,623 6,530 5,537 12,067 21,359 
201720,755 9,295 6,625 15,920 38,305 
201841,881 14,656 17,007 31,663 73,826 
201943,863 17,389 7,800 25,189 80,381 
202050,041 19,482 2,557 22,039 92,936 
202156,615 27,707 (5,049)22,658 152,803 
202282,963 34,964 (3,612)31,352 221,981 
2023149,967 87,582 13,175 100,757 531,229 
202428,086 22,132 6,431 28,563 373,386 
Subtotal520,689 252,989 74,548 327,537 1,630,740 
Americas Insolvency
1996-2013518 65 454 519 — 
2014170 52 122 174 — 
2015112 19 74 93 20 
2016317 22 269 291 201 
20171,548 104 1,493 1,597 1,060 
20181,613 73 570 643 886 
201910,306 663 (212)451 7,445 
20209,106 1,419 889 2,308 18,223 
20218,214 1,670 501 2,171 22,789 
20225,489 1,637 336 1,973 24,327 
202311,945 5,781 (790)4,991 76,235 
20242,841 1,912 294 2,206 47,843 
Subtotal52,179 13,417 4,000 17,417 199,029 
Total Americas and Australia572,868 266,406 78,548 344,954 1,829,769 
Europe Core
2012-2013525 — 525 525 — 
201450,594 35,965 13,941 49,906 97,962 
201515,663 6,867 4,052 10,919 66,674 
201613,878 6,576 2,459 9,035 88,195 
20179,368 3,410 1,057 4,467 67,454 
201819,334 6,884 3,837 10,721 118,792 
201934,697 11,337 5,331 16,668 216,535 
202025,522 9,654 2,912 12,566 146,420 
202134,155 14,494 3,181 17,675 235,125 
202239,130 15,455 755 16,210 276,388 
202352,395 22,109 910 23,019 338,599 
20247,411 2,770 1,803 4,573 167,839 
Subtotal302,672 135,521 40,763 176,284 1,819,983 
Europe Insolvency
201486 — 86 86 — 
201599 2 70 72 — 
2016468 64 166 230 184 
2017874 73 (5)68 928 
20181,919 155 (14)141 2,599 
20197,495 782 1,100 1,882 12,648 
202013,446 1,559 1,011 2,570 27,211 
20217,542 1,420 910 2,330 23,263 
20227,167 1,984 915 2,899 32,264 
20235,656 2,578 50 2,628 41,559 
20243,108 802 1,394 2,196 29,778 
Subtotal47,860 9,419 5,683 15,102 170,434 
Total Europe350,532 144,940 46,446 191,386 1,990,417 
Total PRA Group$923,400 $411,346 $124,994 $536,340 $3,820,186 
(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 June 30, 2024 exchange rate.







Cash Collections by Year, By Year of Purchase (1)
as of June 30, 2024
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (2)(3)
1996-201320142015201620172018201920202021202220232024Total
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 $18.1 $5,684.0 
2014404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 7.0 856.1 
2015443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 8.8 876.0 
2016455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 12.6 986.4 
2017532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 20.8 1105.9 
2018654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 41.9 1343.1 
2019581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 43.9 1114.5 
2020435.7 — — — — — — — 132.9 284.3 192.0 125.8 50.0 785.0 
2021435.8— — — — — — — — 85.0 177.3 136.8 56.6 455.7 
2022406.1 — — — — — — — — — 67.7 195.4 83.0 346.1 
2023622.5 — — — — — — — — — — 108.5 150.0 258.5 
2024373.4 — — — — — — — — — — — 28.0 28.0 
Subtotal7,277.6 3,618.9 753.0 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.7 520.7 13,839.3 
Americas Insolvency
1996-20131,266.1 1,491.4 421.4 289.9 168.7 85.5 30.3 6.8 3.6 2.2 1.6 1.1 0.5 2,503.0 
2014148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 0.2 218.8 
201563.2 — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.1 88.1 
201691.4 — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.3 119.0 
2017275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 1.5 357.3 
201897.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 1.6 135.1 
2019123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 10.3 160.7 
202062.1 — — — — — — — 6.5 16.1 20.4 19.5 9.1 71.6 
202155.2 — — — — — — — — 4.6 17.9 17.5 8.2 48.2 
202233.4 — — — — — — — — — 3.2 9.2 5.5 17.9 
202391.2 — — — — — — — — — — 9.0 11.9 20.9 
202448.8 — — — — — — — — — — — 2.9 2.9 
Subtotal2,356.1 1,491.4 458.4 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.2 52.1 3,743.5 
Total Americas and Australia9,633.7 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 1,075.4 996.9 572.8 17,582.8 
Europe Core
2012-201340.7 27.7 14.2 5.5 3.5 3.3 3.3 2.4 1.9 1.8 1.4 1.0 0.5 66.5 
2014773.8 — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.2 122.2 107.6 50.6 1,871.0 
2015411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 15.7 575.2 
2016333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 13.9 425.4 
2017252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 9.4 243.7 
2018341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 19.3 365.0 
2019518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 34.7 494.7 
2020324.1 — — — — — — — 32.3 91.7 69.0 56.1 25.5 274.6 
2021412.4 — — — — — — — — 48.5 89.9 73.0 34.2 245.6 
2022359.4 — — — — — — — — — 33.9 83.8 39.1 156.8 
2023410.6 — — — — — — — — — — 50.2 52.4 102.6 
2024171.1 — — — — — — — — — — — 7.4 7.4 
Subtotal4,349.1 27.7 167.4 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 302.7 4,828.5 
Europe Insolvency
201410.9 — — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 0.1 17.1 
201519.0 — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.1 26.7 
201639.3 — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.5 60.9 
201739.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 0.9 48.7 
201844.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 1.9 49.9 
201977.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 7.5 96.0 
2020105.4 — — — — — — — 6.0 34.6 34.1 29.7 13.4 117.8 
202153.2 — — — — — — — — 5.5 14.4 14.7 7.5 42.1 
202244.6 — — — — — — — — — 4.5 12.4 7.2 24.1 
202346.7 — — — — — — — — — — 4.2 5.7 9.9 
202431.0 — — — — — — — — — — — 3.1 3.1 
Subtotal511.4 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 47.9 496.3 
Total Europe4,860.5 27.7 167.4 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 350.6 5,324.8 
Total PRA Group$14,494.2 $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 $923.4 $22,907.6 
(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 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 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. The Company 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 June 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
LTMFor the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)June 30, 2024December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.$4 $(83)
Adjustments:
Income tax expense/(benefit)12 (16)
Interest expense, net208 181 
Other expense1 2 
Depreciation and amortization12 13 
Impairment of real estate5 5 
Net income attributable to noncontrolling interests19 17 
Recoveries applied to negative allowance less changes in expected recoveries804 888 
Adjusted EBITDA$1,065 $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 at Period EndSecond QuarterYear-to-Date
June 30, 2024June 30, 20232024202320242023
Total stockholders' equity - PRA Group, Inc.$1,145,463 $1,165,525 $1,137,395 $1,161,934 $1,147,300 $1,183,843 
Less: Goodwill415,646 414,905 413,746 417,776 419,685 423,824 
Less: Other intangible assets1,597 1,836 1,632 1,835 1,668 1,839 
Average tangible equity$722,017 $742,323 $725,947 $758,180 
Net income/(loss) attributable to PRA Group, Inc.$21,516 $(3,804)$24,991 $(62,433)
Return on average tangible equity (1)
11.9%(2.0)%6.9%(16.5)%

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
1.Based on annualized Net income/(loss) attributable to PRA Group, Inc.
v3.24.2.u1
Cover Page
Aug. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 05, 2024
Entity Registrant Name PRA Group, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-50058
Entity Tax Identification Number 75-3078675
Entity Address, Address Line One 120 Corporate Boulevard
Entity Address, City or Town Norfolk,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23502
City Area Code (888)
Local Phone Number 772-7326
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol PRAA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001185348
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