Pra Group, Inc. · NASDAQ:PRAA
Pra — Q1 2020 Earnings Presentation
15 slides from Pra's earnings presentation, 2020
Slide 1: Q1 2020 Conference Call Presentation
Q1 2020 CONFERENCE CALL PRESENTATION 1
Slide 2: Forward-looking statements
Statements herein, 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 of which are no
Slide 3: PRA Has a Significant Role to Play in This Environment
PRA HAS A SIGNIFICANT ROLE TO PLAY IN THIS ENVIRONMENT Our thoughts go out to those affected by COVID-19 PRA has a significant role to play by ushering people through financial challenges A stressed economic environment is where PRA becomes more important 3
Slide 4: 2020 Began with Strong Results
2020 BEGAN WITH STRONG RESULTS Record global cash collections of $495 million Portfolio purchases of $273 million Estimated remaining collections of $6.5 billion 4
Slide 5: Americas Q1 2020 Results
AMERICAS Q1 2020 RESULTS Record cash collections of $349 million Increasing productivity Invested $193 million in Americas Core and Insolvency 5
Slide 6: Americas Operational Update
AMERICAS OPERATIONAL UPDATE Mid-March U.S. staffing was reduced to 60%-70% in U.S. call centers Took measures to keep our employees safe Enacted existing policies and procedures to help customers Canadian and South American employees working from home Today Accommodated a select number
Slide 7: Europe Q1 2020 Results
EUROPE Q1 2020 RESULTS Record cash collections of $146 million in Europe Invested $80 million in Europe Core and Insolvency 7
Slide 8: Europe Operational Update
EUROPE OPERATIONAL UPDATE To keep employees safe – we are operating in a combination work from home and in office status according to local regulations Countries are starting to relax travel restrictions Different operating requirements across Europe 8
Slide 9: Financial Results
FINANCIAL RESULTS ($ in millions, except per share results) Q1 2019 vs Q1 2020 Cash Total Revenues Operating Expenses +7% +5% 0% $495 $240 $252 $191 $191 $461 Q1 2019 Q1 2020 Q1 2019* Q1 2020 Q1 2019 Q1 2020 Net Income Earnings Per Share +26% +24% $19 $0.42 $15 $0.34 Q1 2019 Q1 2020 Q1 2019 Q1 2020
Slide 10: Cash Collections
CASH COLLECTIONS ($ in millions) First Quarter 2020 First Quarter 2019 Global Global Insolvency, Insolvency, $57.5 $53.6 Europe Core, Europe Core, $131.3 $116.9 Americas Core, Americas Core, $305.8 $290.7 10
Slide 11: Q1 2020 Cash Efficiency Ratio of 61.5%
Q1 2020 CASH EFFICIENCY RATIO OF 61.5% ($ in millions, Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts) $2,000 70% $1,857 $1,800 $1,640 60% $1,604 $1,569 $1,600 $1,538 $1,444 $1,400 50% $1,214 $1,200 40% $971 $1,000 $762 30% $800 $592 $600 $497 20% $383 $433 $400 $298 10%
Slide 12: Estimated Remaining Collections and Available Capital
ESTIMATED REMAINING COLLECTIONS AND AVAILABLE CAPITAL ($ in millions) as of March 31, 2020 Estimated Remaining Collections United States - $3,469 United Kingdom - $1,437 Central Europe - $722 Northern Europe - $396 Other Americas - $303 Southern Europe - $205 $846 Million Available for Portfolio Acq
Slide 13: PRA Group Is in a Strong Competitive Position
PRA GROUP IS IN A STRONG COMPETITIVE POSITION Very active in the Government Relations space April results are promising Sellers continue sale process 2020 began with very strong results 13
Slide 14: Q&A
Q&A 14
Slide 15: Reconciliation of Non-GAAP Financial Measure to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP ($ in thousands) Use of Non-GAAP Financial Measure PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company believes that the use of Adjusted Total Revenues assists wit