Originaltext
Diese Übersetzung bewerten
Mit deinem Feedback können wir Google Übersetzer weiter verbessern
Home
Pra Group, Inc.
PRA Group Reports Second Quarter 2021 Results
Aug 5 2021
4 min read

PRA Group Reports Second Quarter 2021 Results

NORFOLK, Va., Aug. 5, 2021 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2021.  The Company reported net income attributable to PRA Group, Inc. of $56.0 million in the second quarter, compared with $57.9 million in the prior year period. Diluted earnings per share were $1.22 versus $1.26 in the second quarter of 2020. For the six months ended June 30, 2021, net income attributable to PRA Group, Inc. was $114.4 million, or $2.48 per diluted share, compared with $77.0 million, or $1.68 per diluted share, during the same period in 2020. 

Second Quarter Highlights (compared to the second quarter of 2020, unless otherwise indicated)

  • Total cash collections increased 7% to $543.8 million.
  • Total revenues increased 5% to $285.6 million.
  • Cash efficiency ratio1 of 66.8%.
  • Diluted earnings per share were $1.22.
  • Debt to Adjusted EBITDA2 for the last 12 months improved to 1.69x from 1.99x at December 31, 2020.
  • Total portfolio purchases of $219.7 million, an increase of $61 million, or 38%, from the first quarter of 2021.
  • Estimated remaining collections (ERC) of $6.1 billion.
  • $1.2 billion available for portfolio purchases.

"This quarter's strong performance is yet another in a line of outstanding results that we have delivered in the past year and a half.  Global cash collections were only $12 million behind our record setting first quarter and Europe delivered the largest quarter ever.  Portfolio purchases during the quarter increased on a sequential basis, with the Americas registering its largest quarter since the second quarter of 2020, and Europe recording its second best Q2 since PRA became a global enterprise in July 2014," said Kevin Stevenson, president and chief executive officer.  "Based on our strong results and capital position, the Board of Directors approved a $150 million share repurchase program."

  1. Calculated by dividing cash receipts less operating expense by cash receipts.
  2. A reconciliation of this non-GAAP financial measure to the most comparable GAAP measure 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

2021

2020

($ in thousands)

Q2

Q1

Q4

Q3

Q2

Americas and Australia Core

$

324,845

$

347,638

$

286,524

$

336,322

$

343,269

Americas Insolvency

37,768

35,253

36,048

37,344

38,685

Europe Core

157,637

149,486

141,471

131,702

115,145

Europe Insolvency

23,579

23,510

17,830

13,971

12,841

Total Cash Collections

$

543,829

$

555,887

$

481,873

$

519,339

$

509,940

Cash Collection Source -

Constant Currency Adjusted

2021

2020

($ in thousands)

Q2

Q2

Americas and Australia Core

$

324,845

$

344,539

Americas Insolvency

37,768

38,732

Europe Core

157,637

128,859

Europe Insolvency

23,579

14,393

Total Cash Collections

$

543,829

$

526,523

 

  • Cash collections in the quarter increased $33.9 million compared to the second quarter of 2020. The increase was primarily due to a 42% increase in Europe cash collections and a 20% increase in Other Americas & Australia Core cash collections. This increase was partially offset by a decrease in U.S. call centers and U.S. legal cash collections. For the six months ended June 30, 2021, cash collections increased $95.2 million compared to the same period last year.
  • Total portfolio revenue was $282.7 million, an increase of $14.6 million, compared to $268.1 million during the second quarter of 2020. The Company has assumed that the majority of the current quarter overperformance was acceleration of future collections and made adjustments in some geographies to increase near term expected collections, bringing them in line with recent performance and trends in collections, with the corresponding reductions later in the forecast period.

Expenses

  • Operating expenses in the quarter increased $20.8 million compared to the second quarter of 2020. The increase is primarily driven by:
    • an increase in compensation and employee services primarily due to medical benefits, unfavorable foreign exchange and the timing of performance based compensation accruals;
    • an increase in agency fees due to increased fees outside the U.S.; and
    • an increase in other operating expenses primarily due to investments in digital and data.
  • For the six months ended June 30, 2021, operating expenses increased $8.3 million compared to the same period last year.
  • Interest expense, net decreased $4.6 million compared to the second quarter of 2020 primarily due to lower average borrowings this year and a change in accounting for convertible notes.
  • The effective tax rate for the six months ended June 30, 2021 was 19.3%.

Portfolio Acquisitions

  • The Company purchased $219.7 million in finance receivables in the second quarter of 2021.
  • At the end of the second quarter, the Company had in place forward flow commitments of up to $521.1 million with $377.2 million in the Americas and Australia and $143.9 million in Europe.

 

Portfolio Purchase Source

2021

2020

($ in thousands)

Q2

Q1

Q4

Q3

Q2

Americas and Australia Core

$

98,901

$

88,912

$

67,460

$

84,139

$

110,474

Americas Insolvency

14,642

9,486

12,504

14,328

14,527

Europe Core

106,134

44,095

137,647

74,930

34,247

Europe Insolvency

—

16,468

72,171

4,203

5,251

Total Portfolio Acquisitions

$

219,677

$

158,961

$

289,782

$

177,600

$

164,499

Conference Call Information PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts.  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 for the PRA Group conference call.  To listen to a replay of the call, either visit the same website until August 5, 2022, or  call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 10158082 until August 12, 2021.                   

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 StatementsStatements 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 our 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,

2021

2020

2021

2020

Revenues:

Portfolio income

$

219,137

$

248,284

$

450,809

$

510,306

Changes in expected recoveries

63,548

19,801

113,684

6,985

Total portfolio revenue

282,685

268,085

564,493

517,291

Fee income

2,453

2,639

4,634

4,848

Other revenue

491

1,186

5,971

1,555

Total revenues

285,629

271,910

575,098

523,694

Operating expenses:

Compensation and employee services

79,632

70,472

153,616

145,643

Legal collection fees

12,289

13,742

25,215

28,314

Legal collection costs

18,469

19,507

39,781

53,954

Agency fees

15,908

10,343

31,499

23,719

Outside fees and services

20,973

18,683

41,733

38,077

Communication

10,594

8,812

23,257

22,323

Rent and occupancy

4,643

4,471

9,123

8,955

Depreciation and amortization

3,815

4,109

7,796

8,193

Other operating expenses

15,092

10,491

28,110

22,696

Total operating expenses

181,415

160,630

360,130

351,874

   Income from operations

104,214

111,280

214,968

171,820

Other income and (expense):

Interest expense, net

(30,836)

(35,416)

(62,388)

(72,627)

Foreign exchange (loss)/gain

(1,079)

683

(1,105)

2,966

Other

183

(1,582)

209

(1,658)

Income before income taxes

72,482

74,965

151,684

100,501

Income tax expense

11,921

14,137

29,243

17,237

Net income

60,561

60,828

122,441

83,264

Adjustment for net income attributable to noncontrolling interests

4,565

2,914

8,039

6,215

Net income attributable to PRA Group, Inc.

$

55,996

$

57,914

$

114,402

$

77,049

Net income per common share attributable to PRA Group, Inc.:

Basic

$

1.22

$

1.27

$

2.50

$

1.69

Diluted

$

1.22

$

1.26

$

2.48

$

1.68

Weighted average number of shares outstanding:

Basic

45,807

45,548

45,738

45,500

Diluted

46,059

45,987

46,051

45,886

 

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

(unaudited)

June 30, 2021

December 31,2020

Assets

Cash and cash equivalents

$

76,013

$

108,613

Restricted cash

4,631

12,434

Investments

87,631

55,759

Finance receivables, net

3,349,038

3,514,788

Other receivables, net

7,096

13,194

Income taxes receivable

21,366

21,928

Deferred tax assets, net

78,935

83,205

Right-of-use assets

50,068

52,951

Property and equipment, net

54,895

58,356

Goodwill

492,843

492,989

Other assets

38,777

38,844

Total assets

$

4,261,293

$

4,453,061

Liabilities and Equity

Liabilities:

Accounts payable

$

5,229

$

5,294

Accrued expenses

86,634

97,320

Income taxes payable

27,872

29,692

Deferred tax liabilities, net

35,682

40,867

Lease liabilities

54,506

57,348

Interest-bearing deposits

131,221

132,739

Borrowings

2,408,875

2,661,289

Other liabilities

36,334

54,986

Total liabilities

2,786,353

3,079,535

Equity:

Preferred stock, $0.01 par value, 2,000 shares authorized, 0 shares issued and outstanding

—

—

Common stock, $0.01 par value, 100,000 shares authorized, 45,837 shares issued and outstanding at June 30, 2021; 100,000 shares authorized, 45,585 shares issued and outstanding at December 31, 2020

458

456

Additional paid-in capital

51,206

75,282

Retained earnings

1,638,380

1,511,970

Accumulated other comprehensive loss

(235,359)

(245,791)

Total stockholders' equity - PRA Group, Inc.

1,454,685

1,341,917

Noncontrolling interest

20,255

31,609

Total equity

1,474,940

1,373,526

Total liabilities and equity

$

4,261,293

$

4,453,061

 

Select Expenses (Income)

Amounts in thousands, pre-tax

Three Months Ended

June 30,2021

March 31,2021

December 31,2020

September 30,2020

June 30,2020

March 31,2020

December 31,2019

September 30,2019

Acquisition/divestiture-related expenses

—

—

—

—

—

—

—

—

Legal costs not associated with normal operations

—

—

—

—

—

—

—

—

Noncash interest expense - amortization of debt discount

—

—

1,959

2,388

3,247

3,217

3,157

3,128

Noncash interest expense - amortization of debt issuance costs

2,391

2,256

2,393

2,476

2,743

2,640

2,649

2,649

Change in fair value of derivatives

2,911

3,102

3,875

3,701

3,284

2,039

1,247

1,126

Amortization of intangibles

105

181

1,792

360

351

349

407

400

Stock-based compensation expense

4,040

4,113

5,370

3,097

3,063

2,857

2,809

2,974

 

Purchase Price Multiples

as of June 30, 2021

Amounts in thousands

Purchase Period

Purchase Price (1)(2)

Total EstimatedCollections (3)

EstimatedRemainingCollections (4)

Current EstimatedPurchase PriceMultiple

Original EstimatedPurchase PriceMultiple (5)

Americas and Australia Core

1996-2010

$

1,078,219

$

3,399,742

$

22,911

315%

240%

2011

209,602

719,746

13,914

343%

245%

2012

254,076

652,359

15,602

257%

226%

2013

390,826

894,134

24,948

229%

211%

2014

404,117

859,490

39,040

213%

204%

2015

443,114

908,215

90,848

205%

205%

2016

455,767

1,101,515

185,065

242%

201%

2017

532,851

1,213,368

292,041

228%

193%

2018

653,975

1,405,115

413,129

215%

202%

2019

581,476

1,245,056

555,835

214%

206%

2020

435,668

931,600

639,764

214%

213%

2021

187,751

372,447

351,984

198%

198%

Subtotal

5,627,442

13,702,787

2,645,081

Americas Insolvency

1996-2010

606,395

1,382,687

753

228%

180%

2011

180,432

370,168

428

205%

155%

2012

251,395

392,828

132

156%

136%

2013

227,834

355,056

545

156%

133%

2014

148,420

218,441

1,370

147%

124%

2015

63,170

87,122

562

138%

125%

2016

91,442

117,355

4,647

128%

123%

2017

275,257

349,729

40,051

127%

125%

2018

97,879

131,541

50,765

134%

127%

2019

123,077

158,965

95,913

129%

128%

2020

62,130

84,971

71,527

137%

136%

2021

24,133

33,183

32,819

138%

138%

Subtotal

2,151,564

3,682,046

299,512

Total Americas and Australia

7,779,006

17,384,833

2,944,593

Europe Core

2012

20,409

41,917

—

205%

187%

2013

20,334

25,881

—

127%

119%

2014

773,811

2,240,702

552,490

290%

208%

2015

411,340

724,135

238,174

176%

160%

2016

333,090

561,788

274,769

169%

167%

2017

252,174

353,405

175,394

140%

144%

2018

341,775

528,763

331,552

155%

148%

2019

518,610

775,304

560,752

149%

152%

2020

324,119

554,083

468,618

171%

172%

2021

148,907

262,529

254,428

176%

176%

Subtotal

3,144,569

6,068,507

2,856,177

Europe Insolvency

2014

10,876

18,258

79

168%

129%

2015

18,973

29,005

1,539

153%

139%

2016

39,338

56,883

7,124

145%

130%

2017

39,235

49,255

15,447

126%

128%

2018

44,908

52,080

29,309

116%

123%

2019

77,218

101,982

66,492

132%

130%

2020

105,440

135,895

113,782

129%

129%

2021

16,705

20,633

19,137

124%

124%

Subtotal

352,693

463,991

252,909

Total Europe

3,497,262

6,532,498

3,109,086

Total PRA Group

$

11,276,268

$

23,917,331

$

6,053,679

(1)

Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.

(2)

For our non-U.S. amounts, purchase price is 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)

For our non-U.S. amounts, TEC is presented at the year-end exchange rate for the respective year of purchase.

(4)

For our non-U.S. amounts, ERC is presented at the June 30, 2021 exchange rate.

(5)

The Original Estimated Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.

 

Portfolio Financial Information

Year-to-date as of June 30, 2021

Amounts in thousands

Purchase Period

Cash

Collections (1)

Portfolio Income(1)

Change in ExpectedRecoveries (1)

Total PortfolioRevenue (1)(2)

Net FinanceReceivables as ofJune 30, 2021 (3)

Americas and Australia Core

1996-2010

$

7,190

$

4,282

$

1,944

$

6,226

$

5,173

2011

4,371

2,586

1,146

3,732

2,503

2012

5,310

2,364

1,042

3,406

4,857

2013

9,565

4,580

(493)

4,087

10,810

2014

13,130

6,135

(2,361)

3,774

15,970

2015

21,951

11,424

(8,717)

2,707

36,653

2016

45,983

22,459

3,354

25,813

72,898

2017

77,310

34,297

7,802

42,099

130,286

2018

141,054

47,049

24,688

71,737

216,883

2019

166,716

65,539

18,558

84,097

299,328

2020

159,431

67,614

35,441

103,055

341,846

2021

20,472

13,641

148

13,789

180,575

Subtotal

672,483

281,970

82,552

364,522

1,317,782

Americas Insolvency

1996-2010

357

352

5

357

—

2011

126

138

(12)

126

—

2012

347

124

225

349

—

2013

421

287

134

421

—

2014

633

652

(117)

535

125

2015

795

383

(167)

216

319

2016

5,031

867

447

1,314

3,707

2017

23,539

4,792

1,113

5,905

34,136

2018

16,125

3,380

932

4,312

43,837

2019

18,361

4,768

(1,467)

3,301

82,243

2020

6,920

3,755

637

4,392

55,112

2021

366

566

(92)

474

24,153

Subtotal

73,021

20,064

1,638

21,702

243,632

Total Americas and Australia

745,504

302,034

84,190

386,224

1,561,414

Europe Core

2012

604

—

604

604

—

2013

363

—

363

363

—

2014

77,988

50,288

15,601

65,889

153,921

2015

26,926

14,276

(7,091)

7,185

124,109

2016

24,620

12,632

(597)

12,035

158,984

2017

18,839

6,259

(3,049)

3,210

119,645

2018

36,684

12,439

5,101

17,540

217,182

2019

63,968

19,814

7,106

26,920

376,028

2020

48,947

18,892

6,322

25,214

282,525

2021

8,184

2,474

1,680

4,154

144,787

Subtotal

307,123

137,074

26,040

163,114

1,577,181

Europe Insolvency

2014

171

79

36

115

34

2015

989

406

64

470

1,115

2016

3,449

1,012

295

1,307

5,454

2017

4,874

754

298

1,052

13,865

2018

5,962

1,224

(655)

569

25,789

2019

12,523

3,017

880

3,897

55,338

2020

17,618

4,713

1,545

6,258

92,948

2021

1,503

496

991

1,487

15,900

Subtotal

47,089

11,701

3,454

15,155

210,443

Total Europe

354,212

148,775

29,494

178,269

1,787,624

Total PRA Group

$

1,099,716

$

450,809

$

113,684

$

564,493

$

3,349,038

(1)

For our non-U.S. amounts, amounts are presented using the average exchange rates during the current reporting period.

(2)

Total Portfolio Revenue refers to Portfolio Income and Changes in Expected Recoveries combined.

(3)

For our non-U.S. amounts, Net Finance Receivables are presented at the June 30, 2021 exchange rate.

 

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

as of June 30, 2021 

Amounts in millions

Cash Collections

Purchase Period

PurchasePrice (2)(3)

1996-2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total

Americas and Australia Core

1996-2010

$

1,078.2

$

1,990.5

$

367.1

$

311.5

$

228.4

$

157.7

$

109.3

$

70.2

$

46.0

$

34.4

$

28.4

$

18.8

$

7.2

$

3,369.5

2011

209.6

—

62.0

174.5

152.9

108.5

73.8

48.7

32.0

21.6

16.6

10.9

4.4

705.9

2012

254.1

—

—

56.9

173.6

146.2

97.3

60.0

40.0

27.8

17.9

11.8

5.3

636.8

2013

390.8

—

—

—

101.6

247.8

194.0

120.8

78.9

56.4

36.9

23.2

9.6

869.2

2014

404.1

—

—

—

—

92.7

253.4

170.3

114.2

82.2

55.3

31.9

13.1

813.1

2015

443.1

—

—

—

—

—

117.0

228.4

185.9

126.6

83.6

57.2

22.0

820.7

2016

455.8

—

—

—

—

—

—

138.7

256.5

194.6

140.6

105.9

46.0

882.3

2017

532.9

—

—

—

—

—

—

—

107.3

278.7

256.5

192.5

77.3

912.3

2018

654.0

—

—

—

—

—

—

—

—

122.7

361.9

337.7

141.1

963.4

2019

581.5

—

—

—

—

—

—

—

—

—

143.8

349.0

166.7

659.5

2020

435.7

—

—

—

—

—

—

—

—

—

—

133.0

159.4

292.4

2021

187.8

—

—

—

—

—

—

—

—

—

—

—

20.4

20.4

Subtotal

5,627.6

1,990.5

429.1

542.9

656.5

752.9

844.8

837.1

860.8

945.0

1,141.5

1,271.9

672.5

10,945.5

Americas Insolvency

1996-2010

606.4

390.9

261.2

270.4

231.0

158.9

51.2

8.6

4.6

2.5

1.4

0.8

0.4

1,381.9

2011

180.4

—

15.2

66.4

82.8

85.8

76.9

36.0

3.7

1.6

0.7

0.5

0.1

369.7

2012

251.4

—

—

17.4

103.6

94.1

80.1

60.7

29.3

4.3

1.9

0.9

0.3

392.6

2013

227.8

—

—

—

52.5

82.6

81.7

63.4

47.8

21.9

2.9

1.3

0.4

354.5

2014

148.4

—

—

—

—

37.0

50.9

44.3

37.4

28.8

15.8

2.2

0.6

217.0

2015

63.2

—

—

—

—

—

3.4

17.9

20.1

19.8

16.7

7.9

0.8

86.6

2016

91.4

—

—

—

—

—

—

18.9

30.4

25.0

19.9

14.4

5.0

113.6

2017

275.3

—

—

—

—

—

—

—

49.1

97.3

80.9

58.8

23.6

309.7

2018

97.9

—

—

—

—

—

—

—

—

6.7

27.4

30.5

16.1

80.7

2019

123.1

—

—

—

—

—

—

—

—

—

13.3

31.4

18.4

63.1

2020

62.1

—

—

—

—

—

—

—

—

—

—

6.6

6.9

13.5

2021

24.1

—

—

—

—

—

—

—

—

—

—

—

0.4

0.4

Subtotal

2,151.5

390.9

276.4

354.2

469.9

458.4

344.2

249.8

222.4

207.9

180.9

155.3

73.0

3,383.3

Total Americas and Australia

7,779.1

2,381.4

705.5

897.1

1,126.4

1,211.3

1,189.0

1,086.9

1,083.2

1,152.9

1,322.4

1,427.2

745.5

14,328.8

Europe Core

2012

20.4

—

—

11.6

9.0

5.6

3.2

2.2

2.0

2.0

1.5

1.2

0.6

38.9

2013

20.3

—

—

—

7.1

8.5

2.3

1.3

1.2

1.3

0.9

0.7

0.4

23.7

2014

773.8

—

—

—

—

153.2

292.0

246.4

220.8

206.3

172.9

149.8

78.0

1,519.4

2015

411.3

—

—

—

—

—

45.8

100.3

86.2

80.9

66.1

54.3

26.9

460.5

2016

333.1

—

—

—

—

—

—

40.4

78.9

72.6

58.0

48.3

24.6

322.8

2017

252.2

—

—

—

—

—

—

—

17.9

56.0

44.1

36.1

18.8

172.9

2018

341.8

—

—

—

—

—

—

—

—

24.3

88.7

71.2

36.7

220.9

2019

518.6

—

—

—

—

—

—

—

—

—

47.9

125.7

64.0

237.6

2020

324.1

—

—

—

—

—

—

—

—

—

—

32.4

48.9

81.3

2021

148.9

—

—

—

—

—

—

—

—

—

—

—

8.2

8.2

Subtotal

3,144.5

—

—

11.6

16.1

167.3

343.3

390.6

407.0

443.4

480.1

519.7

307.1

3,086.2

Europe Insolvency

2014

10.9

—

—

—

—

—

4.3

3.9

3.2

2.6

1.5

0.8

0.2

16.5

2015

19.0

—

—

—

—

—

3.0

4.4

5.0

4.8

3.9

2.9

1.0

25.0

2016

39.3

—

—

—

—

—

—

6.2

12.7

12.9

10.7

7.9

3.4

53.8

2017

39.2

—

—

—

—

—

—

—

1.2

7.9

9.2

9.8

4.9

33.0

2018

44.9

—

—

—

—

—

—

—

—

0.6

8.4

10.3

6.0

25.3

2019

77.2

—

—

—

—

—

—

—

—

—

5.1

21.1

12.5

38.7

2020

105.4

—

—

—

—

—

—

—

—

—

—

6.1

17.6

23.7

2021

16.7

—

—

—

—

—

—

—

—

—

—

—

1.5

1.5

Subtotal

352.6

—

—

—

—

—

7.3

14.5

22.1

28.8

38.8

58.9

47.1

217.5

Total Europe

3,497.1

—

—

11.6

16.1

167.3

350.6

405.1

429.1

472.2

518.9

578.6

354.2

3,303.7

Total PRA Group

$

11,276.2

$

2,381.4

$

705.5

$

908.7

$

1,142.5

$

1,378.6

$

1,539.6

$

1,492.0

$

1,512.3

$

1,625.1

$

1,841.3

$

2,005.8

$

1,099.7

$

17,632.5

(1)

For our non-U.S. amounts, cash collections are presented using the average exchange rates during the cash collection period.

(2)

Includes the finance receivables portfolios that were acquired through our business acquisitions.

(3)

For our non-U.S. amounts, purchase price is 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 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; 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 Adjusted EBITDA for the last twelve months (LTM) ended June 30, 2021 and for the year ended December 31, 2020, to net income, the most directly comparable financial measure calculated and reported in accordance with GAAP. 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)

June 30, 2021

December 31, 2020

Net income attributable to PRA Group, Inc.

$

187

$

149

Adjustments:

Income tax expense

53

41

Foreign exchange losses/(gains)

2

(2)

Interest expense, net

131

142

Other expense

(1)

1

Depreciation and amortization

18

18

Adjustment for net income attributable to noncontrolling interests

20

18

Recoveries applied to negative allowance less Changes in expected recoveries

1,017

968

Adjusted EBITDA

$

1,428

$

1,337

Additionally, management evaluates the Company's business using certain ratios that use Adjusted EBITDA, including Debt to Adjusted EBITDA, which is calculated by dividing borrowings by Adjusted EBITDA.  The following table reflects our Debt to Adjusted EBITDA for LTM as of June 30, 2021 and for the year ended December 31, 2020 (amounts in millions):

Debt to Adjusted EBITDA

LTM

For the Year Ended

June 30, 2021

December 31, 2020

Borrowings

$

2,409

$

2,661

LTM Adjusted EBITDA

1,428

1,337

Debt to LTM Adjusted EBITDA

1.69

1.99

Investor Contact:Darby Schoenfeld, CPAVice President, Investor Relations(757) 431-7913Darby.Schoenfeld@PRAGroup.com

News Media Contact:Elizabeth KerseySenior Vice President, Communications and Public Policy(757) 431-3398Elizabeth.Kersey@PRAGroup.com

Cision View original content:https://www.prnewswire.com/news-releases/pra-group-reports-second-quarter-2021-results-301349658.html

SOURCE PRA Group