Pra Group, Inc. · NASDAQ:PRAA
Pra — Q3 2022 Earnings Presentation
18 slides from Pra's earnings presentation, 2022
Slide 1: PRA Group Q3 2022 Conference Call Presentation
PRA Group Q3 2022 Conference Call Presentation 1
Slide 2: Forward-Looking Statements
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 unce
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights Global cash collections of $412 million Net income attributable to PRA Group of $25 million Portfolio purchases of $183 million Repurchased $25 million of common stock Nasdaq: PRAA 3
Slide 4: Global Operations Show Strong Productivity
Global Operations Show Strong Productivity Highly productive collection operations Continue to build internal legal capabilities Digital collections capabilities in all operating markets Continue to leverage data and analytics No meaningful inflation impact on collections Efficiency gains positionin
Slide 5: Portfolio Investments
Portfolio Investments Q3 2022 total portfolio purchases of $183 million Invested $110 million in the Americas, with similar supply constraints as last two years Invested $73 million in Europe Nasdaq: PRAA 5
Slide 6: U.S. Card Balances Continue to Build with Loss Rates Ticking Further Up
U.S. Card Balances Continue to Build with Loss Rates Ticking Further Up Nasdaq: PRAA 6
Slide 7: U.S. Savings Balances Continue to Decline
U.S. Savings Balances Continue to Decline Nasdaq: PRAA 7
Slide 8: U.S. Credit Card Delinquency Rates Increasing, Especially in Card Issuers with More Non-Prime Accounts
U.S. Credit Card Delinquency Rates Increasing, Especially in Card Issuers with More Non-Prime Accounts Nasdaq: PRAA 8
Slide 9: Economic Data Suggest More Supply is on the Way
Economic Data Suggest More Supply is on the Way Higher Higher Higher Higher Higher Lower More Supply Consumer Credit Card Delinquency Charge-off Inflation Savings for PRA Spending Balances Rates Rates • Inflation in U.S. is at • Q3 2022 U.S. • U.S. savings rate as a • Q2 2022 U.S. credit • Delinquen
Slide 10: Q3 2022 Financial Results
Q3 2022 Financial Results Decreased Revenues and Expenses After Record Year $ in millions, except per share amounts Total Revenues Operating Expenses Net Income Attributable Diluted Earnings to PRA Group Per Share -7% -7% -28% -17% $186 $174 $264 $34 $245 $0.76 $25 $0.63 Q3 2021 Q3 2022 Nasdaq: PRAA
Slide 11: Cash Collections
Cash Collections Third Quarter 2021 Third Quarter 2022 Americas & Australia Core Americas Insolvency Europe Core Europe Insolvency Nasdaq: PRAA 11
Slide 12: Cash Efficiency Ratio
Cash Efficiency Ratio Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts 65.3% 64.5% 61.7% 59.9% 58.0% 2018 2019 2020 2021 YTD Q3 2022 Nasdaq: PRAA 12
Slide 13: ERC is Diversified with 50% in Europe and 41% in U.S.
ERC1 is Diversified with 50% in Europe and 41% in U.S. Continued strengthening of US dollar reduced ERC by ~$577 Million As of September 30, 2021 As of September 30, 2022 United States United Kingdom Central Europe Northern Europe Other Americas and Australia Southern Europe Nasdaq: PRAA 1. Estimate
Slide 14: Strong and Conservative Capital Structure
Strong and Conservative Capital Structure $ in millions Total Borrowings Debt to Adjusted EBITDA ▪ $1.7 billion total available $2,700 capacity under credit facilities $2,609 2.9 $2,600 2.7 ▪ $455 million available capacity $2,500 after considering borrowing base 2.5 restrictions $2,400 $2,380 2.3 ▪
Slide 15: Share Repurchase Program
Share Repurchase Program Repurchased $25 million, or 663 thousand shares, of our common stock in Q3 2022 Repurchased 16% of outstanding common shares since we began buying back shares in 2021 $68 million remained in our share repurchase authorization as of September 30, 2022 Nasdaq: PRAA 15
Slide 16: Key Takeaways
Key Takeaways d Delivered another quarter of solid results Economic signs pointing to more supply in the coming months We are ready with an efficient operation & access to capital Nasdaq: PRAA 16
Slide 17: Q&A
Q&A G HRS up
Slide 18: 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