Press release
PRA Group Reports Second Quarter 2024 Results
Executing Successful Turnaround in U.S. Business NORFOLK, Va., Aug. 5, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in
About this update from Pra Group, Inc.
[{"type":"text","content":"Executing Successful Turnaround in U.S. Business\nNORFOLK, Va., Aug. 5, 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 second quarter of 2024 (\"Q2 2024\").\n\n \n \n \n \n \n \n\n \nQ2 2024 Highlights \nNet income attributable to PRA Group, Inc. of $21.5 million, or diluted earnings per share of $0.54.Total portfolio purchases of $379.4 million.Total cash collections of $473.9 million.Estimated remaining collections (ERC)1 of $6.8 billion.Cash efficiency ratio2 of 58.9%.Adjusted EBITDA3 for the 12 months ended June 30, 2024 of $1.1 billion.Three Months Ended June 30,\nSix Months Ended June 30,\n($ in thousands, except per share amounts)\n2024\n2023\n2024\n2023\nNet income/(loss) attributable to PRA Group, Inc.\n$ 21,516\n$ (3,804)\n$ 24,991\n$ (62,433)\nDiluted earnings per share\n$ 0.54\n$ (0.10)\n$ 0.63\n$ (1.60)\n\"The second quarter was another important step in demonstrating the turnaround in our U.S. business, delivering against our financial and operational targets for 2024, and positioning the Company for future growth,\" said Vikram Atal, president and chief executive officer. \"We invested $379 million during the quarter, which represents our third highest quarterly level of purchases over the past five years. This was driven by the continued strength of U.S. portfolio supply coupled with stronger supply in Europe this quarter, with pricing remaining attractive globally. Cash collections grew 13% year-over-year, primarily reflecting higher recent purchases and the positive impact of our cash-generating and operational initiatives in our U.S. business, particularly in our legal collections channel where we have been investing for growth. We also experienced continued cash collections growth in our European business. Our net income for the quarter reflects the progress we have made in executing the turnaround with speed across a broad set of initiatives. Looking ahead, we remain focused on sustaining profitability and positioning the Company for attractive growth in the years to come.\"\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 rece...