NORFOLK, Va., Nov. 6, 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 third quarter of 2023 (“Q3 2023”).
Q3 2023 Highlights
- Total portfolio purchases increased 69.9% year-over-year to $311.2 million; $231.8 million of portfolio purchases in the Americas and Australia, which represents the highest quarterly investment since 2017.
- Total cash collections were $419.6 million.
- Estimated remaining collections (ERC)1 were $6.0 billion, growing for the second consecutive quarter.
- Cash efficiency ratio2 of 58.9%.
- Diluted earnings per share were $(0.31). This includes a $5.0 million, or $0.10 per share, non-cash impairment charge associated with the Company’s decision to cease call center operations at one of its owned regional offices in the U.S.
- Debt to Adjusted EBITDA3 for the 12 months ended September 30, 2023 was 2.84x.
- Total availability under the Company’s credit facilities as of September 30, 2023 was $1.3 billion, comprised of $277.8 million based on current ERC and $1.1 billion of additional availability subject to debt covenants, including advance rates.
|
Three Months Ended Sept 30, |
Nine Months Ended Sept 30, |
|||||||
|
($ in thousands, except per share amounts) |
2023 |
2022 |
2023 |
2022 |
||||
|
Net income/(loss) attributable to PRA Group, Inc. |
$ (12,262) |
$ 24,732 |
$ (74,695) |
$ 101,188 |
||||
|
Diluted earnings per share |
$ (0.31) |
$ 0.63 |
$ (1.91) |
$ 2.52 |
||||
“I am highly encouraged by the scope and intensity of our initiatives to optimize our U.S. business, which expanded and accelerated through the third quarter,” said Vikram Atal, president and chief executive officer. “Total portfolio purchases of $311 million in the quarter were up 70% year-over-year, representing one of the highest buying quarters in our history, and were accompanied by improved pricing that reflects current market conditions. Cash collections exceeded expectations, led by operational results in Brazil and Europe, as well as modest overperformance in the U.S. In addition, operating expenses remained carefully controlled. These developments, alongside the tailwind of a continuation of increased portfolio supply in the U.S. and our strong and diversified positioning across markets in Europe, provide a strong framework to deliver significantly improved results in 2024.”
|
1. |
Refers to the sum of all future projected cash collections on the Company’s nonperforming loan portfolios. |
|
2. |
Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company’s nonperforming loan portfolios, fees and revenue recognized from the Company’s class action claims recovery services. |
|
3. |
A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. |
Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:
|
Cash Collection Source |
2023 |
2022 |
||||||||
|
($ in thousands) |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
|||||
|
Americas and Australia Core |
$ 223,714 |
$ 220,886 |
$ 227,960 |
$ 205,619 |
$ 225,775 |
|||||
|
Americas Insolvency |
27,809 |
26,384 |
25,751 |
27,971 |
31,911 |
|||||
|
Europe Core |
144,402 |
149,324 |
134,005 |
134,016 |
132,072 |
|||||
|
Europe Insolvency |
23,639 |
22,725 |
23,568 |
24,051 |
22,586 |
|||||
|
Total Cash Collections |
$ 419,564 |
$ 419,319 |
$ 411,284 |
$ 391,657 |
$ 412,344 |
|||||
|
Cash Collection Source – |
||||||||||
|
Constant Currency-Adjusted |
2023 |
2022 |
||||||||
|
($ in thousands) |
Q3 |
Q3 |
||||||||
|
Americas and Australia Core |
$ 223,714 |
$ 227,432 |
||||||||
|
Americas Insolvency |
27,809 |
31,900 |
||||||||
|
Europe Core |
144,402 |
140,472 |
||||||||
|
Europe Insolvency |
23,639 |
24,315 |
||||||||
|
Total Cash Collections |
$ 419,564 |
$ 424,119 |
||||||||
- Total cash collections in Q3 2023 increased 1.8% (or decreased 1.1% on a constant currency-adjusted basis) to $419.6 million compared to $412.3 million in the third quarter of 2022 (“Q3 2022”). The increase was primarily due to an increase in collections in Brazil and Europe. For the nine months ended September 30, 2023, cash collections decreased $87.2 million compared to the same period last year.
- Total portfolio revenue in Q3 2023 was $212.1 million compared to $234.2 million in Q3 2022. For the nine months ended September 30, 2023, total portfolio revenue was $568.9 million compared to $722.2 million in the same period last year due to lower portfolio purchases in 2021 and 2022.
Expenses
- Operating expenses in Q3 2023 decreased by $0.6 million, or 0.4%, to $173.4 million compared to $174.0 million in Q3 2022. This included a $5.0 million non-cash impairment charge associated with the Company’s previously announced decision to cease call center operations at one of its owned regional offices in the U.S. Excluding this non-cash impairment charge, operating expenses would have been $168.4 million.
- For the nine months ended September 30, 2023, operating expenses increased by $9.0 million to $526.2 million, compared to $517.2 million in the same period last year.
- The effective tax benefit rate for the nine months ended September 30, 2023 was 20.1%.
Portfolio Acquisitions
- The Company purchased $311.2 million in portfolios of nonperforming loans in Q3 2023, an increase of 69.9% compared to Q3 2022.
- At the end of Q3 2023, the Company had in place maximum forward flow commitments1 of up to $538.0 million, comprised of $356.4 million in the Americas and Australia and $181.6 million in Europe.
|
1. |
Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts are based on sellers’ estimates of future forward flow sales and are dependent on actual delivery compared to these estimates. Accordingly, amounts purchased under these agreements may vary and are often less than the maximum amounts. |
|
Portfolio Purchase Source |
2023 |
2022 |
||||||||
|
($ in thousands) |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
|||||
|
Americas and Australia Core |
$ 187,554 |
$ 171,440 |
$ 116,867 |
$ 118,581 |
$ 100,780 |
|||||
|
Americas Insolvency |
44,279 |
12,189 |
15,701 |
8,967 |
8,988 |
|||||
|
Europe Core |
60,628 |
136,834 |
90,454 |
140,011 |
59,426 |
|||||
|
Europe Insolvency |
18,722 |
7,296 |
7,203 |
20,535 |
13,910 |
|||||
|
Total Portfolio Acquisitions |
$ 311,183 |
$ 327,759 |
$ 230,225 |
$ 288,094 |
$ 183,104 |
|||||
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 November 6, 2024, or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 7678442 until November 13, 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. |
|||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
|
2023 |
2022 |
2023 |
2022 |
||||
|
Revenues: |
|||||||
|
Portfolio income |
$ 189,960 |
$ 185,853 |
$ 562,492 |
$ 587,394 |
|||
|
Changes in expected recoveries |
22,156 |
48,336 |
6,380 |
134,817 |
|||
|
Total portfolio revenue |
212,116 |
234,189 |
568,872 |
722,211 |
|||
|
Other revenue |
4,314 |
10,618 |
12,264 |
21,463 |
|||
|
Total revenues |
216,430 |
244,807 |
581,136 |
743,674 |
|||
|
Operating expenses: |
|||||||
|
Compensation and employee services |
69,517 |
70,382 |
217,708 |
215,615 |
|||
|
Legal collection fees |
9,839 |
8,963 |
28,228 |
29,390 |
|||
|
Legal collection costs |
20,761 |
23,391 |
66,228 |
57,694 |
|||
|
Agency fees |
19,436 |
15,160 |
54,491 |
47,374 |
|||
|
Outside fees and services |
18,858 |
24,618 |
62,064 |
71,489 |
|||
|
Communication |
9,881 |
9,951 |
30,525 |
32,062 |
|||
|
Rent and occupancy |
4,426 |
4,669 |
13,193 |
14,289 |
|||
|
Depreciation and amortization |
3,273 |
3,741 |
10,344 |
11,384 |
|||
|
Impairment of real estate |
5,037 |
— |
5,037 |
— |
|||
|
Other operating expenses |
12,356 |
13,144 |
38,355 |
37,885 |
|||
|
Total operating expenses |
173,384 |
174,019 |
526,173 |
517,182 |
|||
|
Income from operations |
43,046 |
70,788 |
54,963 |
226,492 |
|||
|
Other income and (expense): |
|||||||
|
Interest expense, net |
(49,473) |
(32,455) |
(130,778) |
(95,765) |
|||
|
Foreign exchange gain, net |
564 |
4 |
984 |
791 |
|||
|
Other |
(500) |
(83) |
(1,380) |
(754) |
|||
|
Income/(loss) before income taxes |
(6,363) |
38,254 |
(76,211) |
130,764 |
|||
|
Income tax expense/(benefit) |
1,788 |
11,072 |
(15,317) |
29,828 |
|||
|
Net income/(loss) |
(8,151) |
27,182 |
(60,894) |
100,936 |
|||
|
Adjustment for net income/(loss) |
4,111 |
2,450 |
13,801 |
(252) |
|||
|
Net income/(loss) attributable to PRA |
$ (12,262) |
$ 24,732 |
$ (74,695) |
$ 101,188 |
|||
|
Net income/(loss) per common share attributable to PRA |
|||||||
|
Basic |
$ (0.31) |
$ 0.63 |
$ (1.91) |
$ 2.54 |
|||
|
Diluted |
$ (0.31) |
$ 0.63 |
$ (1.91) |
$ 2.52 |
|||
|
Weighted average number of shares outstanding: |
|||||||
|
Basic |
39,242 |
39,018 |
39,155 |
39,858 |
|||
|
Diluted |
39,242 |
39,170 |
39,155 |
40,125 |
|||
|
PRA Group, Inc. |
|||
|
(unaudited) |
|||
|
September 30, |
December 31, |
||
|
Assets |
|||
|
Cash and cash equivalents |
$ 105,172 |
$ 83,376 |
|
|
Investments |
74,729 |
79,948 |
|
|
Finance receivables, net |
3,460,804 |
3,295,008 |
|
|
Income taxes receivable |
38,695 |
31,774 |
|
|
Deferred tax assets, net |
55,493 |
56,908 |
|
|
Right-of-use assets |
47,156 |
54,506 |
|
|
Property and equipment, net |
38,562 |
51,645 |
|
|
Goodwill |
412,513 |
435,921 |
|
|
Other assets |
96,851 |
86,588 |
|
|
Total assets |
$ 4,329,975 |
$ 4,175,674 |
|
|
Liabilities and Equity |
|||
|
Liabilities: |
|||
|
Accounts payable |
$ 6,159 |
$ 7,329 |
|
|
Accrued expenses |
106,391 |
111,395 |
|
|
Income taxes payable |
15,946 |
25,693 |
|
|
Deferred tax liabilities, net |
14,185 |
42,918 |
|
|
Lease liabilities |
51,658 |
59,384 |
|
|
Interest-bearing deposits |
100,505 |
112,992 |
|
|
Borrowings |
2,832,225 |
2,494,858 |
|
|
Other liabilities |
12,919 |
34,355 |
|
|
Total liabilities |
3,139,988 |
2,888,924 |
|
|
Equity: |
|||
|
Preferred stock, $0.01 par value, 2,000 shares authorized, 0 shares issued and |
— |
— |
|
|
Common stock, $0.01 par value, 100,000 shares authorized, 39,243 shares issued |
392 |
390 |
|
|
Additional paid-in capital |
4,157 |
2,172 |
|
|
Retained earnings |
1,498,330 |
1,573,025 |
|
|
Accumulated other comprehensive loss |
(387,289) |
(347,926) |
|
|
Total stockholders’ equity – PRA Group, Inc. |
1,115,590 |
1,227,661 |
|
|
Noncontrolling interest |
74,397 |
59,089 |
|
|
Total equity |
1,189,987 |
1,286,750 |
|
|
Total liabilities and equity |
$ 4,329,975 |
$ 4,175,674 |
|
|
Select Expenses (Income) Amounts in thousands, pre-tax |
||||||||
|
Three Months Ended |
||||||||
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
Noncash interest |
2,220 |
2,384 |
2,441 |
2,444 |
2,555 |
2,471 |
2,627 |
2,455 |
|
Change in fair value |
(6,545) |
(6,960) |
(5,470) |
(3,309) |
(1,042) |
1,525 |
2,726 |
3,115 |
|
Amortization of |
69 |
68 |
66 |
73 |
73 |
77 |
83 |
(269) |
|
Impairment of real |
5,037 |
— |
— |
— |
— |
— |
— |
— |
|
Stock-based |
1,629 |
2,715 |
3,799 |
2,206 |
3,101 |
3,849 |
3,891 |
3,470 |
|
Purchase Price Multiples as of September 30, 2023 Amounts in thousands |
|||||
|
Purchase Period |
Purchase Price (2)(3) |
Total Estimated |
Estimated |
Current Purchase |
Original Purchase |
|
Americas and Australia Core |
|||||
|
1996-2012 |
$ 1,541,896 |
$ 4,803,591 |
$ 34,002 |
312 % |
238 % |
|
2013 |
390,826 |
912,127 |
15,613 |
233 % |
211 % |
|
2014 |
404,117 |
878,252 |
23,547 |
217 % |
204 % |
|
2015 |
443,114 |
898,799 |
37,991 |
203 % |
205 % |
|
2016 |
455,767 |
1,075,382 |
68,523 |
236 % |
201 % |
|
2017 |
532,851 |
1,196,883 |
110,646 |
225 % |
193 % |
|
2018 |
653,975 |
1,463,965 |
153,173 |
224 % |
202 % |
|
2019 |
581,476 |
1,291,978 |
200,551 |
222 % |
206 % |
|
2020 |
435,668 |
947,163 |
236,196 |
217 % |
213 % |
|
2021 |
435,846 |
774,075 |
412,428 |
178 % |
191 % |
|
2022 |
406,082 |
709,920 |
502,071 |
175 % |
179 % |
|
2023 |
475,470 |
902,639 |
846,139 |
190 % |
190 % |
|
Subtotal |
6,757,088 |
15,854,774 |
2,640,880 |
||
|
Americas Insolvency |
|||||
|
1996-2012 |
1,038,223 |
2,146,670 |
96 |
207 % |
165 % |
|
2013 |
227,834 |
355,733 |
45 |
156 % |
133 % |
|
2014 |
148,420 |
218,770 |
139 |
147 % |
124 % |
|
2015 |
63,170 |
87,980 |
103 |
139 % |
125 % |
|
2016 |
91,442 |
117,770 |
270 |
129 % |
123 % |
|
2017 |
275,257 |
356,365 |
1,423 |
129 % |
125 % |
|
2018 |
97,879 |
136,160 |
4,288 |
139 % |
127 % |
|
2019 |
123,077 |
168,922 |
24,524 |
137 % |
128 % |
|
2020 |
62,130 |
90,853 |
32,652 |
146 % |
136 % |
|
2021 |
55,187 |
73,780 |
37,820 |
134 % |
136 % |
|
2022 |
33,442 |
46,734 |
36,834 |
140 % |
139 % |
|
2023 |
71,953 |
100,452 |
95,705 |
140 % |
140 % |
|
Subtotal |
2,288,014 |
3,900,189 |
233,899 |
||
|
Total Americas and Australia |
9,045,102 |
19,754,963 |
2,874,779 |
||
|
Europe Core |
|||||
|
2012 |
20,409 |
44,413 |
— |
218 % |
187 % |
|
2013 |
20,334 |
27,260 |
1 |
134 % |
119 % |
|
2014 (1) |
773,811 |
2,408,574 |
354,169 |
311 % |
208 % |
|
2015 |
411,340 |
743,660 |
141,522 |
181 % |
160 % |
|
2016 |
333,090 |
573,894 |
167,256 |
172 % |
167 % |
|
2017 |
252,174 |
362,855 |
107,001 |
144 % |
144 % |
|
2018 |
341,775 |
547,194 |
197,447 |
160 % |
148 % |
|
2019 |
518,610 |
822,604 |
338,588 |
159 % |
152 % |
|
2020 |
324,119 |
558,705 |
259,639 |
172 % |
172 % |
|
2021 |
412,411 |
694,192 |
423,855 |
168 % |
170 % |
|
2022 |
359,447 |
580,738 |
477,450 |
162 % |
162 % |
|
2023 |
281,356 |
457,931 |
429,428 |
163 % |
163 % |
|
Subtotal |
4,048,876 |
7,822,020 |
2,896,356 |
||
|
Europe Insolvency |
|||||
|
2014 (1) |
10,876 |
18,809 |
— |
173 % |
129 % |
|
2015 |
18,973 |
29,255 |
53 |
154 % |
139 % |
|
2016 |
39,338 |
57,698 |
1,123 |
147 % |
130 % |
|
2017 |
39,235 |
51,677 |
2,172 |
132 % |
128 % |
|
2018 |
44,908 |
52,473 |
5,713 |
117 % |
123 % |
|
2019 |
77,218 |
112,312 |
23,758 |
145 % |
130 % |
|
2020 |
105,440 |
156,926 |
47,485 |
149 % |
129 % |
|
2021 |
53,230 |
71,526 |
34,563 |
134 % |
134 % |
|
2022 |
44,604 |
60,714 |
47,585 |
136 % |
137 % |
|
2023 |
32,217 |
43,946 |
42,049 |
136 % |
136 % |
|
Subtotal |
466,039 |
655,336 |
204,501 |
||
|
Total Europe |
4,514,915 |
8,477,356 |
3,100,857 |
||
|
Total PRA Group |
$ 13,560,017 |
$ 28,232,319 |
$ 5,975,636 |
||
|
(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) |
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 September 30, 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 September 30, 2023 Amounts in thousands |
|||||
|
Purchase Period |
Cash Collections |
Portfolio |
Change in |
Total Portfolio |
Net Finance |
|
Americas and Australia Core |
|||||
|
1996-2012 |
$ 13,706 |
$ 8,270 |
$ 3,589 |
$ 11,859 |
$ 8,404 |
|
2013 |
7,709 |
3,013 |
3,849 |
6,862 |
6,588 |
|
2014 |
8,933 |
3,839 |
3,743 |
7,583 |
9,136 |
|
2015 |
10,697 |
6,477 |
(1,262) |
5,216 |
15,758 |
|
2016 |
18,926 |
12,877 |
(2,309) |
10,568 |
22,995 |
|
2017 |
34,496 |
19,670 |
(6,655) |
13,014 |
46,567 |
|
2018 |
73,748 |
30,229 |
5,437 |
35,666 |
87,935 |
|
2019 |
87,979 |
39,193 |
(1,760) |
37,433 |
109,991 |
|
2020 |
100,608 |
44,087 |
(4,707) |
39,380 |
133,793 |
|
2021 |
108,659 |
61,425 |
(36,553) |
24,872 |
216,634 |
|
2022 |
150,050 |
74,546 |
(3,079) |
71,467 |
306,568 |
|
2023 |
57,049 |
37,347 |
5,898 |
43,243 |
461,243 |
|
Subtotal |
672,560 |
340,973 |
(33,809) |
307,163 |
1,425,612 |
|
Americas Insolvency |
|||||
|
1996-2012 |
576 |
189 |
390 |
579 |
— |
|
2013 |
252 |
97 |
156 |
253 |
— |
|
2014 |
349 |
207 |
96 |
304 |
— |
|
2015 |
266 |
90 |
91 |
182 |
54 |
|
2016 |
662 |
105 |
312 |
418 |
236 |
|
2017 |
4,075 |
380 |
1,004 |
1,385 |
1,279 |
|
2018 |
10,958 |
975 |
(1,130) |
(155) |
4,091 |
|
2019 |
22,692 |
2,604 |
924 |
3,529 |
23,037 |
|
2020 |
15,206 |
3,326 |
1,162 |
4,488 |
28,574 |
|
2021 |
13,433 |
3,602 |
906 |
4,508 |
31,907 |
|
2022 |
6,715 |
2,936 |
645 |
3,581 |
29,333 |
|
2023 |
4,760 |
2,250 |
2,348 |
4,596 |
71,081 |
|
Subtotal |
79,944 |
16,761 |
6,904 |
23,668 |
189,592 |
|
Total Americas and Australia |
752,504 |
357,734 |
(26,905) |
330,831 |
1,615,204 |
|
Europe Core |
|||||
|
2012 |
531 |
— |
531 |
531 |
— |
|
2013 |
264 |
— |
264 |
264 |
— |
|
2014 (1) |
81,467 |
52,042 |
14,172 |
66,214 |
97,030 |
|
2015 |
25,924 |
12,437 |
(502) |
11,936 |
70,420 |
|
2016 |
22,350 |
11,777 |
(1,094) |
10,682 |
96,465 |
|
2017 |
15,398 |
5,698 |
707 |
6,405 |
73,062 |
|
2018 |
31,748 |
11,528 |
3,374 |
14,902 |
130,556 |
|
2019 |
57,349 |
18,293 |
13,923 |
32,216 |
229,949 |
|
2020 |
43,153 |
16,725 |
1,067 |
17,793 |
160,547 |
|
2021 |
55,633 |
25,087 |
(6,041) |
19,045 |
255,955 |
|
2022 |
64,593 |
26,164 |
(230) |
25,934 |
299,256 |
|
2023 |
29,321 |
11,082 |
202 |
11,284 |
263,039 |
|
Subtotal |
427,731 |
190,833 |
26,373 |
217,206 |
1,676,279 |
|
Europe Insolvency |
|||||
|
2014 (1) |
172 |
— |
172 |
172 |
— |
|
2015 |
331 |
21 |
250 |
270 |
45 |
|
2016 |
1,105 |
201 |
362 |
563 |
604 |
|
2017 |
3,279 |
216 |
648 |
865 |
1,986 |
|
2018 |
5,905 |
544 |
(130) |
414 |
5,195 |
|
2019 |
13,786 |
1,983 |
1,309 |
3,292 |
20,822 |
|
2020 |
23,164 |
3,681 |
3,414 |
7,095 |
42,445 |
|
2021 |
11,068 |
2,777 |
302 |
3,078 |
29,247 |
|
2022 |
9,171 |
3,529 |
(40) |
3,489 |
37,199 |
|
2023 |
1,951 |
973 |
625 |
1,597 |
31,778 |
|
Subtotal |
69,932 |
13,925 |
6,912 |
20,835 |
169,321 |
|
Total Europe |
497,663 |
204,758 |
33,285 |
238,041 |
1,845,600 |
|
Total PRA Group |
$ 1,250,167 |
$ 562,492 |
$ 6,380 |
$ 568,872 |
$ 3,460,804 |
|
(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 September 30, 2023 exchange rate. |
|
Cash Collections by Year, By Year of Purchase (1) as of September 30, 2023 Amounts in millions |
||||||||||||||
|
Cash Collections |
||||||||||||||
|
Purchase Period |
Purchase |
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 |
$ 13.7 |
$ 4,762.4 |
|
2013 |
390.8 |
— |
101.6 |
247.8 |
194.0 |
120.8 |
78.9 |
56.4 |
36.9 |
23.2 |
16.7 |
12.5 |
7.7 |
896.5 |
|
2014 |
404.1 |
— |
— |
92.7 |
253.4 |
170.3 |
114.2 |
82.2 |
55.3 |
31.9 |
22.3 |
15.0 |
8.9 |
846.2 |
|
2015 |
443.1 |
— |
— |
— |
117.0 |
228.4 |
185.9 |
126.6 |
83.6 |
57.2 |
34.9 |
19.5 |
10.7 |
863.8 |
|
2016 |
455.8 |
— |
— |
— |
— |
138.7 |
256.5 |
194.6 |
140.6 |
105.9 |
74.2 |
38.4 |
18.9 |
967.8 |
|
2017 |
532.9 |
— |
— |
— |
— |
— |
107.3 |
278.7 |
256.5 |
192.5 |
130.0 |
76.3 |
34.5 |
1075.8 |
|
2018 |
654.0 |
— |
— |
— |
— |
— |
— |
122.7 |
361.9 |
337.7 |
239.9 |
146.1 |
73.7 |
1282.0 |
|
2019 |
581.5 |
— |
— |
— |
— |
— |
— |
— |
143.8 |
349.0 |
289.8 |
177.7 |
88.0 |
1,048.3 |
|
2020 |
435.7 |
— |
— |
— |
— |
— |
— |
— |
— |
132.9 |
284.3 |
192.0 |
100.6 |
709.8 |
|
2021 |
435.8 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
85.0 |
177.3 |
108.7 |
371.0 |
|
2022 |
406.2 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
67.7 |
150.0 |
217.7 |
|
2023 |
475.5 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
56.9 |
56.9 |
|
Subtotal |
6,757.3 |
2,962.4 |
656.5 |
753.0 |
844.7 |
837.1 |
860.9 |
945.0 |
1,141.5 |
1,271.8 |
1,207.0 |
946.0 |
672.3 |
13,098.2 |
|
Americas Insolvency |
||||||||||||||
|
1996-2012 |
1,038.2 |
1,021.6 |
417.3 |
338.8 |
208.3 |
105.3 |
37.7 |
8.3 |
3.9 |
2.3 |
1.4 |
1.1 |
0.6 |
2,146.6 |
|
2013 |
227.8 |
— |
52.5 |
82.6 |
81.7 |
63.4 |
47.8 |
21.9 |
2.9 |
1.3 |
0.8 |
0.5 |
0.3 |
355.7 |
|
2014 |
148.4 |
— |
— |
37.0 |
50.9 |
44.3 |
37.4 |
28.8 |
15.8 |
2.2 |
1.1 |
0.7 |
0.3 |
218.5 |
|
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 |
0.7 |
118.5 |
|
2017 |
275.3 |
— |
— |
— |
— |
— |
49.1 |
97.3 |
80.9 |
58.8 |
44.0 |
20.8 |
4.1 |
355.0 |
|
2018 |
97.9 |
— |
— |
— |
— |
— |
— |
6.7 |
27.4 |
30.5 |
31.6 |
24.6 |
11.0 |
131.8 |
|
2019 |
123.1 |
— |
— |
— |
— |
— |
— |
— |
13.4 |
31.4 |
39.1 |
37.8 |
22.7 |
144.4 |
|
2020 |
62.1 |
— |
— |
— |
— |
— |
— |
— |
— |
6.5 |
16.1 |
20.4 |
15.2 |
58.2 |
|
2021 |
55.2 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4.6 |
17.9 |
13.4 |
35.9 |
|
2022 |
33.4 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
3.2 |
6.7 |
9.9 |
|
2023 |
72.0 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4.8 |
4.8 |
|
Subtotal |
2,288.0 |
1,021.6 |
469.8 |
458.4 |
344.3 |
249.8 |
222.5 |
207.8 |
180.9 |
155.3 |
147.4 |
129.4 |
80.1 |
3,667.3 |
|
Total Americas |
9,045.3 |
3,984.0 |
1,126.3 |
1,211.4 |
1,189.0 |
1,086.9 |
1,083.4 |
1,152.8 |
1,322.4 |
1,427.1 |
1,354.4 |
1,075.4 |
752.4 |
16,765.5 |
|
Europe Core |
||||||||||||||
|
2012 |
20.4 |
11.6 |
9.0 |
5.6 |
3.2 |
2.2 |
2.0 |
2.0 |
1.4 |
1.2 |
1.2 |
0.9 |
0.5 |
40.8 |
|
2013 |
20.3 |
— |
7.1 |
8.5 |
2.3 |
1.3 |
1.2 |
1.3 |
0.9 |
0.7 |
0.7 |
0.5 |
0.3 |
24.8 |
|
2014 (2) |
773.8 |
— |
— |
153.2 |
292.0 |
246.4 |
220.8 |
206.3 |
172.9 |
149.8 |
149.2 |
122.2 |
81.5 |
1,794.3 |
|
2015 |
411.3 |
— |
— |
— |
45.8 |
100.3 |
86.2 |
80.9 |
66.1 |
54.3 |
51.4 |
40.7 |
25.9 |
551.6 |
|
2016 |
333.1 |
— |
— |
— |
— |
40.4 |
78.9 |
72.6 |
58.0 |
48.3 |
46.7 |
36.9 |
22.4 |
404.2 |
|
2017 |
252.2 |
— |
— |
— |
— |
— |
17.9 |
56.0 |
44.1 |
36.1 |
34.8 |
25.2 |
15.4 |
229.5 |
|
2018 |
341.8 |
— |
— |
— |
— |
— |
— |
24.3 |
88.7 |
71.3 |
69.1 |
50.7 |
31.7 |
335.8 |
|
2019 |
518.6 |
— |
— |
— |
— |
— |
— |
— |
48.0 |
125.7 |
121.4 |
89.8 |
57.3 |
442.2 |
|
2020 |
324.1 |
— |
— |
— |
— |
— |
— |
— |
— |
32.3 |
91.7 |
69.0 |
43.2 |
236.2 |
|
2021 |
412.4 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
48.5 |
89.9 |
55.6 |
194.0 |
|
2022 |
359.4 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
33.9 |
64.6 |
98.5 |
|
2023 |
281.4 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
29.3 |
29.3 |
|
Subtotal |
4,048.8 |
11.6 |
16.1 |
167.3 |
343.3 |
390.6 |
407.0 |
443.4 |
480.1 |
519.7 |
614.7 |
559.7 |
427.7 |
4,381.2 |
|
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 |
0.3 |
26.5 |
|
2016 |
39.3 |
— |
— |
— |
— |
6.2 |
12.7 |
12.9 |
10.7 |
7.9 |
6.0 |
2.7 |
1.1 |
60.2 |
|
2017 |
39.2 |
— |
— |
— |
— |
— |
1.2 |
7.9 |
9.2 |
9.8 |
9.4 |
6.5 |
3.3 |
47.3 |
|
2018 |
44.9 |
— |
— |
— |
— |
— |
— |
0.6 |
8.4 |
10.3 |
11.7 |
9.8 |
5.9 |
46.7 |
|
2019 |
77.2 |
— |
— |
— |
— |
— |
— |
— |
5.0 |
21.1 |
23.9 |
21.0 |
13.8 |
84.8 |
|
2020 |
105.4 |
— |
— |
— |
— |
— |
— |
— |
— |
6.0 |
34.6 |
34.1 |
23.2 |
97.9 |
|
2021 |
53.2 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
5.5 |
14.4 |
11.1 |
31.0 |
|
2022 |
44.6 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4.5 |
9.2 |
13.7 |
|
2023 |
32.2 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
2.0 |
2.0 |
|
Subtotal |
465.9 |
— |
— |
— |
7.3 |
14.5 |
22.1 |
28.8 |
38.7 |
58.8 |
93.0 |
93.8 |
70.1 |
427.1 |
|
Total Europe |
4,514.7 |
11.6 |
16.1 |
167.3 |
350.6 |
405.1 |
429.1 |
472.2 |
518.8 |
578.5 |
707.7 |
653.5 |
497.8 |
4,808.3 |
|
Total PRA Group |
$ 13,560.0 |
$ 3,995.6 |
$ 1,142.4 |
$ 1,378.7 |
$ 1,539.6 |
$ 1,492.0 |
$ 1,512.5 |
$ 1,625.0 |
$ 1,841.2 |
$ 2,005.6 |
$ 2,062.1 |
$ 1,728.9 |
$ 1,250.2 |
$ 21,573.8 |
|
(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 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. 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 September 30, 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) |
September 30, 2023 |
December 31, 2022 |
|
Net income/(loss) attributable to PRA Group, Inc. |
$ (59) |
$ 117 |
|
Adjustments: |
||
|
Income tax expense |
(8) |
37 |
|
Foreign exchange gains |
(1) |
(1) |
|
Interest expense, net |
166 |
131 |
|
Other expense |
2 |
1 |
|
Depreciation and amortization |
14 |
15 |
|
Impairment of real estate |
5 |
— |
|
Adjustment for net income attributable to noncontrolling interests |
15 |
1 |
|
Recoveries applied to negative allowance less Changes in expected |
864 |
806 |
|
Adjusted EBITDA |
$ 998 |
$ 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 September 30, 2023 and for the year ended December 31, 2022 ($ in millions):
|
Debt to Adjusted EBITDA |
||
|
LTM |
For the Year Ended |
|
|
September 30, 2023 |
December 31, 2022 |
|
|
Borrowings |
$ 2,832 |
$ 2,495 |
|
LTM Adjusted EBITDA |
998 |
1,107 |
|
Debt to LTM Adjusted EBITDA |
2.84 |
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-third-quarter-2023-results-301979024.html
SOURCE PRA Group
