PRA Group Reports Fourth Quarter and Full Year 2023 Results
Press Releases

PRA Group Reports Fourth Quarter and Full Year 2023 Results

Total Portfolio Purchases of $1.2 billion, up 36% for 2023; U.S. Portfolio Purchases up 84% for 2023

Addressing U.S. Business Underperformance with Urgency; Well-positioned for Meaningful Profitability in 2024 with a Solid Platform for Future Growth

NORFOLK, Va., Feb. 15, 2024 /PRNewswire/ — PRA Group, Inc. (Nasdaq: PRAA) (the “Company”), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter (“Q4 2023”) and full year of 2023.

Q4 2023 Highlights

  • Total portfolio purchases of $284.9 million.
  • Total cash collections of $410.3 million.
  • Estimated remaining collections (ERC)1 of $6.4 billion.
  • Cash efficiency ratio2 of 57.3%.
  • Diluted earnings per share of $(0.22).

Full Year 2023 Highlights

  • Total portfolio purchases of $1.2 billion.
  • Total cash collections of $1.7 billion.
  • Cash efficiency ratio of 58.0%.
  • Diluted earnings per share of $(2.13).
  • Debt to Adjusted EBITDA3 was 2.89x.
  • Total availability under the Company’s credit facilities as of December 31, 2023 was $1.3 billion, comprised of $344.4 million based on current ERC and $938.5 million of additional availability subject to debt covenants, including advance rates.



Three Months Ended Dec 31,


Year Ended Dec 31,

($ in thousands, except per share amounts)


2023


2022


2023


2022

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


$          (8,782)


$           15,959


$        (83,477)


$           117,147

Diluted earnings per share


$            (0.22)


$               0.41


$            (2.13)


$                  2.94



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.

“2023 was an important and pivotal transition year for PRA. We delivered strong performance in our European business and worked with speed and intensity to address the shortcomings in our U.S. business,” said Vikram Atal, president and chief executive officer. “With growing portfolio supply in the U.S. and a stable investment environment in Europe, we purchased total portfolios of $285 million in the fourth quarter and $1.2 billion in 2023, with the latter representing an increase of 36% and the third highest level in company history. The impact of our cash generating and operational initiatives in our U.S. business—particularly around activity within call centers, post-judgment legal processes, and offshoring—have been highly encouraging, and demonstrate that we are on track to transform PRA into a more robust, efficient, and profitable enterprise. As we continue to grow ERC with discipline, maximize cash collections, and optimize our cost structure by reducing our marginal cost, we believe we are well-positioned to deliver meaningful profitability and shareholder value for full year 2024 with a solid platform for future growth.”

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


2023


2022

($ in thousands)


Q4


Q3


Q2


Q1


Q4

Americas and Australia Core


$       220,127


$       223,714


$       220,886


$       227,960


$       205,619

Americas Insolvency


24,293


27,809


26,384


25,751


27,971

Europe Core


144,361


144,402


149,324


134,005


134,016

Europe Insolvency


21,502


23,639


22,725


23,568


24,051

Total Cash Collections


$       410,283


$       419,564


$       419,319


$       411,284


$       391,657


































Cash Collection Source –











Constant Currency Adjusted


2023








2022

($ in thousands)


Q4








Q4

Americas and Australia Core


$       220,127








$       208,013

Americas Insolvency


24,293








27,970

Europe Core


144,361








140,393

Europe Insolvency


21,502








25,417

Total Cash Collections


$       410,283








$       401,793












  • Total cash collections in Q4 2023 increased 4.8%, or 2.1% on a constant currency-adjusted basis, to $410.3 million compared to $391.7 million in the fourth quarter of 2022 (“Q4 2022”). The increase was driven by higher cash collections in Brazil and Europe, which were partially offset by lower cash collections in the U.S. For the full year, total cash collections decreased $68.6 million compared to the full year of 2022, driven primarily by lower cash collections in the U.S.
  • Total portfolio revenue in Q4 2023 was $217.4 million compared to $219.0 million in Q4 2022. For the full year, total portfolio revenue was $786.3 million compared to $941.2 million in 2022.

Expenses

  • Operating expenses in Q4 2023 increased $12.4 million, or 7.6%, compared to Q4 2022. The increase was primarily driven by expenses related to growth in the Company’s portfolio:
    • a $3.8 million increase in legal collection costs due to a higher volume of accounts placed in the legal channel;
    • a $3.8 million increase in agency fees due to higher cash collections in Brazil; and
    • a $2.8 million increase in communication expenses due to higher business volumes related to customer contact strategies.
  • For the full year, operating expenses increased $21.4 million, or 3.1%, to $702.1 million compared to $680.7 million in the same period last year.
  • Interest expense, net was $181.7 million in 2023, an increase of $51.0 million, or 39.1%, compared to $130.7 million in 2022, primarily reflecting a higher average debt balance and increased interest rates.
  • The effective tax benefit rate for the full year was 19.5%.

Portfolio Acquisitions

  • The Company purchased $284.9 million in portfolios of nonperforming loans in Q4 2023.     
  • At the end of Q4 2023, the Company had in place estimated forward flow commitments1 of $550.0 million over the next 12 months, comprised of $400.0 million in the Americas and Australia and $150.0 million in Europe.   











Portfolio Purchase Source


2023


2022

($ in thousands)


Q4


Q3


Q2


Q1


Q4

Americas and Australia Core


$       143,052


$         187,554


$         171,440


$         116,867


$         118,581

Americas Insolvency


18,608


44,279


12,189


15,701


8,967

Europe Core


110,780


60,628


136,834


90,454


140,011

Europe Insolvency


12,476


18,722


7,296


7,203


20,535

Total Portfolio Acquisitions


$       284,916


$         311,183


$         327,759


$         230,225


$         288,094












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 February 15, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 01663# until February 22, 2024.

About PRA Group

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.

1.

Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts consider sellers’ estimates of future flow sales and our expectations about how the agreements will perform over the next 12 months, and are dependent on actual delivery compared to these estimates. Accordingly, amounts purchased under these agreements may vary significantly.

 

PRA Group, Inc.

Consolidated Income Statements

(Amounts in thousands, except per share amounts)



(unaudited)


(unaudited)




Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Revenues:








Portfolio income

$               194,636


$                   184,921


$                   757,128


$                   772,315

Changes in expected recoveries

22,754


34,087


29,134


168,904

        Total portfolio revenue

217,390


219,008


786,262


941,219

Other revenue

4,028


3,843


16,292


25,305

Total revenues

221,418


222,851


802,554


966,524

Operating expenses:








Compensation and employee services

71,070


69,922


288,778


285,537

Legal collection fees

9,844


9,060


38,072


38,450

Legal collection costs

22,903


19,063


89,131


76,757

Agency fees

20,208


16,434


74,699


63,808

Outside fees and services

20,555


20,866


82,619


92,355

Communication

9,905


7,143


40,430


39,205

Rent and occupancy

4,126


4,299


17,319


18,589

Depreciation and amortization

3,032


3,859


13,376


15,243

Impairment of real estate

202



5,239


Other operating expenses

14,044


12,893


52,399


50,778

Total operating expenses

175,889


163,539


702,062


680,722

Income from operations

45,529


59,312


100,492


285,802

Other income and (expense):








Interest expense, net

(50,946)


(34,912)


(181,724)


(130,677)

Foreign exchange gain/(loss), net

(695)


194


289


985

Other

(564)


(572)


(1,944)


(1,325)

Income/(loss) before income taxes

(6,676)


24,022


(82,887)


154,785

Income tax expense/(benefit)

(816)


6,960


(16,133)


36,787

Net income/(loss)

(5,860)


17,062


(66,754)


117,998

Adjustment for net income

attributable to noncontrolling

interests

2,922


1,103


16,723


851

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

$                  (8,782)


$                     15,959


$                    (83,477)


$                   117,147

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








Basic

$                    (0.22)


$                         0.41


$                        (2.13)


$                         2.96

Diluted

$                    (0.22)


$                         0.41


$                        (2.13)


$                         2.94

Weighted average number of shares outstanding:








Basic

39,245


38,978


39,177


39,638

Diluted

39,245


39,177


39,177


39,888

 

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)



(unaudited)




December 31, 2023


December 31, 2022

Assets




Cash and cash equivalents

$                    112,528


$                       83,376

Investments

72,404


79,948

Finance receivables, net

3,656,598


3,295,008

Income taxes receivable

27,713


31,774

Deferred tax assets, net

74,694


56,908

Right-of-use assets

45,877


54,506

Property and equipment, net

36,450


51,645

Goodwill

431,564


435,921

Other assets

67,526


86,588

Total assets

$                 4,525,354


$                 4,175,674

Liabilities and Equity




Liabilities:




Accounts payable

$                         6,325


$                         7,329

Accrued expenses

131,893


111,395

Income taxes payable

17,912


25,693

Deferred tax liabilities, net

17,051


42,918

Lease liabilities

50,300


59,384

Interest-bearing deposits

115,589


112,992

Borrowings

2,914,270


2,494,858

Other liabilities

32,638


34,355

Total liabilities

3,285,978


2,888,924

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, 39,247 shares

issued and outstanding as of December 31, 2023; 100,000 shares authorized,

38,980 shares issued and outstanding as of December 31, 2022

392


390

Additional paid-in capital

7,071


2,172

Retained earnings

1,489,548


1,573,025

Accumulated other comprehensive loss

(329,899)


(347,926)

Total stockholders’ equity – PRA Group, Inc.

1,167,112


1,227,661

Noncontrolling interests

72,264


59,089

Total equity

1,239,376


1,286,750

Total liabilities and equity

$                 4,525,354


$                 4,175,674

 

Select Expenses (Income)

Amounts in thousands, pre-tax











Three Months Ended


December 31,

2023

September 30,

2023

June 30,

2023

March 31,

2023

December 31,

2022

September 30,

2022

June 30,

2022

March 31,

2022

Noncash interest

expense – amortization of

debt issuance costs

2,177

2,220

2,384

2,441

2,444

2,555

2,471

2,627

Change in fair value of

derivatives

(6,734)

(6,545)

(6,960)

(5,470)

(3,309)

(1,042)

1,525

2,726

Amortization of

intangibles

69

69

68

66

73

73

77

83

Impairment of real estate

202

5,037

Stock-based

compensation expense

2,952

1,629

2,715

3,799

2,206

3,101

3,849

3,891

 

Purchase Price Multiples

as of December 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






1996-2013

$                  1,932,722

$              5,725,248

$                  52,146

296 %

233 %

2014

404,117

884,911

27,461

219 %

204 %

2015

443,114

899,839

35,758

203 %

205 %

2016

455,767

1,078,122

65,679

237 %

201 %

2017

532,851

1,200,599

105,245

225 %

193 %

2018

653,975

1,482,269

152,931

227 %

202 %

2019

581,476

1,294,462

182,487

223 %

206 %

2020

435,668

951,929

216,016

218 %

213 %

2021

435,846

749,966

362,191

172 %

191 %

2022

406,082

708,070

460,475

174 %

179 %

2023

622,583

1,227,985

1,118,683

197 %

197 %

Subtotal

6,904,201

16,203,400

2,779,072



Americas Insolvency





1996-2013

1,266,056

2,502,614

91

198 %

159 %

2014

148,420

218,811

98

147 %

124 %

2015

63,170

88,009

73

139 %

125 %

2016

91,442

117,987

256

129 %

123 %

2017

275,257

356,839

1,121

130 %

125 %

2018

97,879

135,530

1,939

138 %

127 %

2019

123,077

168,658

18,261

137 %

128 %

2020

62,130

90,690

28,225

146 %

136 %

2021

55,187

73,803

33,804

134 %

136 %

2022

33,442

46,811

34,461

140 %

139 %

2023

91,282

122,780

113,508

135 %

135 %

Subtotal

2,307,342

3,922,532

231,837



Total Americas and Australia

9,211,543

20,125,932

3,010,909



Europe Core






2012-2013

40,742

71,982

1

177 %

153 %

2014 (1)

773,811

2,465,052

394,133

319 %

208 %

2015

411,340

743,591

141,158

181 %

160 %

2016

333,090

567,702

162,940

170 %

167 %

2017

252,174

363,813

107,971

144 %

144 %

2018

341,775

544,970

194,808

159 %

148 %

2019

518,610

838,326

353,219

162 %

152 %

2020

324,119

561,192

262,884

173 %

172 %

2021

412,411

695,544

428,779

169 %

170 %

2022

359,447

582,380

489,333

162 %

162 %

2023

410,593

692,580

640,924

169 %

169 %

Subtotal

4,178,112

8,127,132

3,176,150



Europe Insolvency





2014 (1)

10,876

18,882

174 %

129 %

2015

18,973

29,301

29

154 %

139 %

2016

39,338

57,673

932

147 %

130 %

2017

39,235

51,995

2,020

133 %

128 %

2018

44,908

52,658

4,862

117 %

123 %

2019

77,218

112,260

20,970

145 %

130 %

2020

105,440

156,670

42,614

149 %

129 %

2021

53,230

72,736

33,441

137 %

134 %

2022

44,604

60,935

46,620

137 %

137 %

2023

46,558

64,411

60,029

138 %

138 %

Subtotal

480,380

677,521

211,517



Total Europe

4,658,492

8,804,653

3,387,667



Total PRA Group

$                13,870,035

$            28,930,585

$              6,398,576





(1)

Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(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 December 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

For the Year Ended December 31, 2023

Amounts in thousands

Purchase Period

Cash

Collections (2)

Portfolio

Income (2)

Changes in

Expected

Recoveries (2)

Total Portfolio

Revenue (2)

Net Finance

Receivables  as of

December 31, 2023 (3)

Americas and Australia Core






1996-2013

$                   28,414

$            14,689

$                   11,698

$                   26,387

$                       15,661

2014

11,826

5,085

6,623

11,708

10,416

2015

14,084

8,296

(352)

7,944

15,107

2016

24,898

16,456

(973)

15,483

21,960

2017

43,765

24,863

(5,960)

18,904

43,205

2018

92,931

38,221

13,105

51,326

84,611

2019

110,278

49,393

287

49,681

100,749

2020

125,832

55,634

(3,681)

51,953

121,292

2021

136,807

78,122

(52,274)

25,848

190,907

2022

195,438

95,009

(5,798)

89,211

281,983

2023

108,414

75,234

3,074

78,307

591,032

Subtotal

892,687

461,002

(34,251)

426,752

1,476,923

Americas Insolvency






1996-2013

1,089

336

756

1,092

2014

430

249

136

385

2015

325

105

121

226

39

2016

893

120

521

641

228

2017

4,852

438

1,457

1,895

1,013

2018

12,677

1,085

(1,751)

(667)

1,858

2019

28,698

3,149

651

3,800

17,310

2020

19,470

4,202

1,000

5,202

25,023

2021

17,474

4,590

924

5,515

28,874

2022

9,163

3,831

716

4,547

27,851

2023

9,166

4,998

2,237

7,234

85,331

Subtotal

104,237

23,103

6,768

29,870

187,527

Total Americas and Australia

996,924

484,105

(27,483)

456,622

1,664,450

Europe Core






2012-2013

1,029

1

1,028

1,029

2014 (1)

107,571

67,749

24,528

92,277

101,742

2015

33,779

16,091

2,643

18,734

72,591

2016

29,663

15,334

(3,008)

12,326

96,274

2017

20,166

7,471

1,012

8,484

73,646

2018

41,613

15,083

1,326

16,409

128,861

2019

75,074

23,993

23,157

47,150

238,759

2020

56,078

21,772

3,436

25,207

163,027

2021

73,017

32,638

(5,931)

26,707

258,670

2022

83,782

34,199

986

35,185

307,528

2023

50,320

20,129

(1,029)

19,099

377,193

Subtotal

572,092

254,460

48,148

302,607

1,818,291

Europe Insolvency






2014 (1)

235

235

235

2015

395

26

289

315

27

2016

1,315

248

330

578

429

2017

3,800

259

821

1,080

1,753

2018

7,154

650

39

690

4,417

2019

17,460

2,479

1,266

3,745

18,413

2020

29,687

4,643

3,180

7,823

38,342

2021

14,734

3,556

1,405

4,961

28,669

2022

12,352

4,588

195

4,783

36,875

2023

4,302

2,114

709

2,823

44,932

Subtotal

91,434

18,563

8,469

27,033

173,857

Total Europe

663,526

273,023

56,617

329,640

1,992,148

Total PRA Group

$              1,660,450

$          757,128

$                   29,134

$                  786,262

$                   3,656,598



(1)

Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(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 December 31, 2023 exchange rate.

 

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

as of December 31, 2023

Amounts in millions



Cash Collections


Purchase Period

Purchase

Price (3)(4)

1996-2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Total

Americas and Australia Core












1996-2013

$  1,932.7

$  3,618.9

$  660.3

$  474.4

$  299.7

$  197.0

$  140.3

$   99.7

$   64.7

$   46.5

$   36.0

$   28.4

$           5,665.9

2014

404.1

92.7

253.4

170.3

114.2

82.2

55.3

31.9

22.3

15.0

11.8

849.1

2015

443.1

117.0

228.4

185.9

126.6

83.6

57.2

34.9

19.5

14.1

867.2

2016

455.8

138.7

256.5

194.6

140.6

105.9

74.2

38.4

24.9

973.8

2017

532.9

107.3

278.7

256.5

192.5

130.0

76.3

43.8

1085.1

2018

654.0

122.7

361.9

337.7

239.9

146.1

92.9

1301.2

2019

581.5

143.8

349.0

289.8

177.7

110.3

1070.6

2020

435.7

132.9

284.3

192.0

125.8

735.0

2021

435.8

85.0

177.3

136.8

399.1

2022

406.1

67.7

195.4

263.1

2023

622.6

108.5

108.5

Subtotal

6,904.3

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

13,318.6

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

2,502.5

2014

148.4

37.0

50.9

44.3

37.4

28.8

15.8

2.2

1.1

0.7

0.4

218.6

2015

63.2

3.4

17.9

20.1

19.8

16.7

7.9

1.3

0.6

0.3

88.0

2016

91.4

18.9

30.4

25.0

19.9

14.4

7.4

1.8

0.9

118.7

2017

275.3

49.1

97.3

80.9

58.8

44.0

20.8

4.9

355.8

2018

97.9

6.7

27.4

30.5

31.6

24.6

12.7

133.5

2019

123.1

13.4

31.4

39.1

37.8

28.7

150.4

2020

62.1

6.5

16.1

20.4

19.5

62.5

2021

55.2

4.6

17.9

17.5

40.0

2022

33.4

3.2

9.2

12.4

2023

91.3

9.0

9.0

Subtotal

2,307.4

1,491.4

458.4

344.2

249.8

222.5

207.9

180.9

155.3

147.4

129.4

104.2

3,691.4

Total Americas

and Australia

9,211.7

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

17,010.0

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

66.0

2014 (2)

773.8

153.2

292.0

246.4

220.8

206.3

172.9

149.8

149.2

122.2

107.6

1,820.4

2015

411.3

45.8

100.3

86.2

80.9

66.1

54.3

51.4

40.7

33.8

559.5

2016

333.1

40.4

78.9

72.6

58.0

48.3

46.7

36.9

29.7

411.5

2017

252.2

17.9

56.0

44.1

36.1

34.8

25.2

20.2

234.3

2018

341.8

24.3

88.7

71.3

69.1

50.7

41.6

345.7

2019

518.6

48.0

125.7

121.4

89.8

75.1

460.0

2020

324.1

32.3

91.7

69.0

56.1

249.1

2021

412.4

48.5

89.9

73.0

211.4

2022

359.4

33.9

83.8

117.7

2023

410.6

50.2

50.2

Subtotal

4,178.0

27.7

167.4

343.3

390.6

407.1

443.4

480.2

519.7

614.6

559.7

572.1

4,525.8

Europe Insolvency












2014 (2)

10.9

4.3

3.9

3.2

2.6

1.5

0.8

0.3

0.2

0.2

17.0

2015

19.0

3.0

4.4

5.0

4.8

3.9

2.9

1.6

0.6

0.4

26.6

2016

39.3

6.2

12.7

12.9

10.7

7.9

6.0

2.7

1.3

60.4

2017

39.2

1.2

7.9

9.2

9.8

9.4

6.5

3.8

47.8

2018

44.9

0.6

8.4

10.3

11.7

9.8

7.2

48.0

2019

77.2

5.0

21.1

23.9

21.0

17.5

88.5

2020

105.4

6.0

34.6

34.1

29.7

104.4

2021

53.2

5.5

14.4

14.7

34.6

2022

44.6

4.5

12.4

16.9

2023

46.6

4.2

4.2

Subtotal

480.3

7.3

14.5

22.1

28.8

38.7

58.8

93.0

93.8

91.4

448.4

Total Europe

4,658.3

27.7

167.4

350.6

405.1

429.2

472.2

518.9

578.5

707.6

653.5

663.5

4,974.2

Total PRA Group

$ 13,870.0

$  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

$  21,984.2



(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.

(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 years ended December 31, 2023 and 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

 Adjusted EBITDA for PRA Group ($ in millions)

December 31, 2023

December 31, 2022

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

$                                  (83)

$                                  117

Adjustments:







Income tax expense/(benefit)

(16)

37

Foreign exchange (gain)/loss, net

(1)

Interest expense, net

181

131

Other expense

2

1

Depreciation and amortization

13

15

Impairment of real estate

5

Adjustment for net income attributable to noncontrolling interests

17

1

Recoveries applied to negative allowance less Changes in

expected recoveries





888

806

 Adjusted EBITDA

$                              1,007

$                              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 years ended December 31, 2023 and 2022 (amounts in millions):

Debt to Adjusted EBITDA





December 31, 2023

December 31, 2022

Borrowings

$                              2,914

$                              2,495

Adjusted EBITDA

1,007

1,107

Debt to Adjusted EBITDA

2.89

2.25

 

Investor Contact:

Najim Mostamand, CFA

Vice President, Investor Relations

(757) 431-7913

IR@PRAGroup.com

News Media Contact:

Elizabeth Kersey

Senior Vice President, Communications and Public Policy

(757) 641-0558

Elizabeth.Kersey@PRAGroup.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-fourth-quarter-and-full-year-2023-results-302063510.html

SOURCE PRA Group, Inc.

Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App