Press release
PRA Group Reports Second Quarter 2023 Results
NORFOLK, Va., Aug. 7, 2023 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans,
About this update from Pra Group, Inc.
[{"type":"text","content":"NORFOLK, Va., Aug. 7, 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 second quarter of 2023 (\"Q2 2023\").\n\n \n \n \n \n \n \n\n \nQ2 2023 Highlights \nTotal portfolio purchases increased 41.7% year-over-year to $327.8 million.Total cash collections were $419.3 million.Estimated remaining collections (ERC)1 of $5.9 billion.Cash efficiency ratio2 of 61.2%.Diluted earnings per share were $(0.10).Debt to Adjusted EBITDA3 for the 12 months ended June 30, 2023 was 2.76x.Available capacity under the Company's credit facilities of $1.4 billion; $332.5 million after considering borrowing base restrictions. \nThree Months Ended June 30,\nSix Months Ended June 30,\n($ in thousands, except per share amounts)\n2023\n2022\n2023\n2022\nNet income/(loss) attributable to PRA Group, Inc.\n$ (3,804)\n$ 36,484\n$ (62,433)\n$ 76,456\nDiluted earnings per share\n$ (0.10)\n$ 0.91\n$ (1.60)\n$ 1.88\n\"The second quarter was an important and positive step in the right direction, as we remain focused on driving organic growth, optimizing business processes, and further capitalizing on the increase in the supply of portfolios with improved pricing,\" said Vikram Atal, president and chief executive officer. \"Cash collections exceeded our internal expectations, primarily driven by the strength of our European operations. During the quarter, we purchased $328 million of portfolios globally, which represents a record amount for a second quarter in the Company's history. The recent improvements in U.S. supply, pricing, and returns have enabled us to gradually increase our investment levels in that market, while investments in Europe remain healthy. Our balance sheet remains strong, and we have the funding capacity to continue growing ERC. Overall, we believe we are laying the foundation for a stronger, profitable, and higher performing PRA.\"\n1.\nRefers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.\n2.\nCalculated 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.\n3.\nA reconciliat...