Press release
PRA Group Reports Third Quarter 2020 Results
NORFOLK, Va., Nov. 5, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its
About this update from Pra Group, Inc.
[{"type":"text","content":"NORFOLK, Va., Nov. 5, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2020. Net income attributable to PRA Group, Inc. was $42.5 million compared to $25.0 million in the third quarter of 2019. Diluted earnings per share were $0.92 compared to $0.55 in the third quarter of 2019. For the nine months ended September 30, 2020, net income attributable to PRA Group, Inc. was $119.5 million, or $2.60 per diluted share, compared to $58.8 million, or $1.29 per diluted share, during the same period in 2019. \nThird Quarter Highlights\nRecord global cash collections of $519.3 million, an increase of 15%, or 14% on a constant currency adjusted basis, compared to the third quarter of 2019. Total revenues of $267.9 million, an increase of 7% compared to the third quarter of 2019. Income from operations of $88.7 million, an increase of 37% compared to the third quarter of 2019. Cash efficiency ratio of 65.6% during the quarter compared to 60.2% in the third quarter of 2019. Net income of $42.5 million, an increase of 70% compared to the third quarter of 2019. Diluted earnings per share of $0.92, an increase of 67% compared to the third quarter of 2019. Debt to Adjusted EBITDA1 for the last twelve months was 1.90x, a decrease from 2.54x at December 31, 2019. Total portfolio purchases of $177.6 million. Estimated Remaining Collections (ERC) of $6.3 billion. \"The third quarter of 2020 built upon the trends that we saw during the first half of the year. We produced record quarterly global cash collections driven by growth in both the Americas and Europe. U.S. cash collections continued to be strong and Europe cash collections grew as countries relaxed restrictions and courts returned to more normal operations,\" said Kevin Stevenson, president and chief executive officer. \"Investment levels in Europe were strong in a quarter that is typically seasonally softer as sellers restarted their sales processes. In the U.S., supply was impacted by lower bankruptcy filings and payment deferral programs which depressed charge-off volumes during the quarter. Based on the significant loss provisioning by most financial institutions, we believe that charge-off rates will rise over the next year, increasing supply globally.\" \nCa...