Pra Group, Inc. · NASDAQ:PRAA
Pra — Q4 2021 Earnings Presentation
14 slides from Pra's earnings presentation, February 2022
Slide 1: Q4 2021 Conference Call Presentation
Q4 2021 CONFERENCE CALL PRESENTATION 1
Slide 2: Forward-looking statements
Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some o
Slide 3: Q4 2021 Highlights
Q4 2021 HIGHLIGHTS Global cash collections of $474 million Net income attributable to PRA Group of $34 million Portfolio purchases of $202 million Repurchased $139 million of common stock 3
Slide 4: Execution on Strategic Objectives Resulted in Back-to-Back Record Years
EXECUTION ON STRATEGIC OBJECTIVES RESULTED IN BACK-TO-BACK RECORD YEARS FOR PRA Expand market share and products Modernize collections Improve efficiency Become a recognized and trusted brand Foster a high performing workforce 4
Slide 5: In 2021, Deployed Capital in Nearly All of Our Markets
IN 2021, DEPLOYED CAPITAL IN NEARLY ALL OF OUR MARKETS Q4 2021 total portfolio purchases of $202 million 2021 portfolio purchases of $972 million, an increase of $67 million from 2020 Purchases in Northern Europe and South America provided additional diversification 5
Slide 6: Double-Digit Growth to Net Income and Diluted EPS in Q4 and Full Year 2021
DOUBLE-DIGIT GROWTH TO NET INCOME ATTRIBUTABLE TO PRA GROUP AND DILUTED EPS ACHIEVED IN Q4 AND FULL YEAR 2021 ($ in millions, except per share results) Q4 2020 vs Q4 2021 2020 vs 2021 Total Revenues Operating Expenses Total Revenues Operating Expenses +3% +1% -6% -6% $1,065 $1,096 $716 $721 $274 $25
Slide 7: 2021 Cash Collections Beat 2020 Record by 3%
2021 CASH COLLECTIONS BEAT 2020 RECORD BY 3% ($ in millions) Q4 Cash Collections Full Year Cash Collections Q4 2020 Q4 2021 2020 2021 $287 $1,272 $1,207 $258 $156 $141 $615 $520 $36 $37 $155 $147 $23 $18 $59 $93 Americas and Americas Europe Core Europe Americas and Americas Europe Core Europe Austra
Slide 8: Q4 2021 Cash Efficiency Ratio Was 63.5%, Full Year Record of 65.3%
Q4 2021 CASH EFFICIENCY RATIO WAS 63.5%, FULL YEAR WAS A PRA RECORD OF 65.3% (Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts) Cash Efficiency Ratio 65.3% 64.5% 59.9% 58.0% 2018 2019 2020 2021 8
Slide 9: ERC Is Diversified with 52% in Europe and 41% in U.S.
ERC IS DIVERSIFIED WITH 52% IN EUROPE AND 41% IN U.S. ($ in millions) as of December 31, 2020 as of December 31, 2021 Southern Southern Europe, $184 Other Europe, $138 Other Americas and Americas, Australia, $393 $272 Northern Europe, $565 Northern Europe, $718 United States, Central $2,465 Europe,
Slide 10: Strong and Conservative Capital Structure
STRONG AND CONSERVATIVE CAPITAL STRUCTURE ($ in millions) Total Borrowings Debt to Adjusted EBITDA * $2,700 $2,661 2.9 $2,609 $2,600 2.7 $2,500 2.5 $2,400 2.3 $2,300 2.1 1.99x $2,200 1.89x 1.9 $2,100 1.7 $2,000 1.5 December 31, 2020 December 31, 2021 $1.4 Billion Available for Portfolio Acquisitions
Slide 11: Share Repurchase Program
SHARE REPURCHASE PROGRAM Q4 2021 share repurchase of $139 million at an average price of $45.66 Repurchased 11% of outstanding common shares in 2021 Completed $230 million share repurchase program on February 25, 2022 PRA Board of Directors approved a new $150M share repurchase program on February 2
Slide 12: PRA Group Accomplished Even Greater Things in 2021
PRA GROUP ACCOMPLISHED EVEN GREATER THINGS IN 2021 Resilient workforce achieves multiple records Adapting to financial services industry transformation Returned additional value to shareholders 12
Slide 13: Q&A
Q&A 13
Slide 14: Reconciliation of Non-GAAP Financial Measure to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP 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, inte