Pra Group, Inc. · NASDAQ:PRAA
Pra — Q2 2021 Earnings Presentation
13 slides from Pra's earnings presentation, 2021
Slide 1: Q2 2021 Conference Call Presentation
Q2 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: Another Quarter of Strong Performance
ANOTHER QUARTER OF STRONG PERFORMANCE Global cash collections of $544 million Net income attributable to PRA Group of $56 million Portfolio purchases of $220 million 3
Slide 4: Global Operations Continue to Produce Good Results
GLOBAL OPERATIONS CONTINUE TO PRODUCE GOOD RESULTS Past investments and decisions continue to contribute to results Powerful global enterprise U.S. productivity increased 3% when compared to Q2 2020 Europe is delivering record results 4
Slide 5: Quarterly Global Portfolio Purchases Increased $61 Million From Q1 2021
QUARTERLY GLOBAL PORTFOLIO PURCHASES INCREASED $61 MILLION FROM Q1 2021 Total purchases of $220 million Monitoring credit trends in the U.S. European pipeline continues to look strong for remainder of year 5
Slide 6: Cash Collections and Revenue Growth Deliver Solid EPS
CASH COLLECTIONS AND REVENUE GROWTH DELIVER SOLID EPS ($ in millions, except per share results) Q2 2020 vs Q2 2021 Cash Collections Total Revenues Operating Expenses +7% +5% +13% $544 $272 $286 $181 $510 $161 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Net Income Attributable to PRA Group Dilute
Slide 7: Continued Strong Collections Driven By Europe Record In Q2
CONTINUED STRONG COLLECTIONS DRIVEN BY EUROPE RECORD IN Q2 ($ in millions) Q2 Cash Collections YTD Cash Collections Q2 2020 Q2 2021 YTD 2020 YTD 2021 $343 672 325 $649 $158 $307 $246 $115 $39 $38 $82 $73 $13 $24 $27 $47 Americas Americas Europe Core Europe Americas Americas Europe Core Europe and Au
Slide 8: Q2 2021 Cash Efficiency Ratio Was 66.8%, YTD Was 67.4%
Q2 2021 CASH EFFICIENCY RATIO WAS 66.8%, YTD WAS 67.4% (Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts) Cash Efficiency Ratio Increasing Full Year Expectation to 64% 67.4% 64.5% 59.9% 58.0% 2018 2019 2020 YTD Q2 2021 8
Slide 9: ERC Is Diversified With 44% In U.S. And 51% In Europe
ERC IS DIVERSIFIED WITH 44% IN U.S. AND 51% IN EUROPE ($ in millions) as of June 30, 2021 as of June 30, 2020 Southern Southern Other Europe, $159 Europe, $196 Americas and Other Australia, $294 Americas, Northern $287 Northern Europe, $457 Europe, $604 Central United States, Europe, $731 Central $2
Slide 10: Strong And Conservative Capital Structure
STRONG AND CONSERVATIVE CAPITAL STRUCTURE ($ in millions) Total Borrowings Debt to Adjusted EBITDA * $2,700 $2,661 2.9 $2,600 2.7 $2,500 2.5 $2,409 $2,400 2.3 $2,300 2.1 1.99x $2,200 1.9 1.69x $2,100 1.7 $2,000 1.5 December 31, 2020 June 30, 2021 $1.2 Billion Available for Portfolio Acquisitions *Pl
Slide 11: Strategies That Will Continue To Drive The Future
STRATEGIES THAT WILL CONTINUE TO DRIVE THE FUTURE Expand market share and products Modernize collections Improve cash efficiency Become a recognized and trusted brand Foster a high performing workforce 11
Slide 12: Q&A
Q&A 12
Slide 13: 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 financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internal