Pra Group, Inc. · NASDAQ:PRAA
Pra — Q4 2022 Earnings Presentation
18 slides from Pra's earnings presentation, 2023
Slide 1: PRA Group Q4 2022 Conference Call Presentation
PRA Group Q4 2022 Conference Call Presentation Nasdaq: PRAA
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: 2022: A Year in Review
2022: A Year in Review Successfully navigated a challenging macroeconomic environment that included high inflation, rising interest rates, and the strengthening U.S. dollar Celebrated 20th anniversary as a publicly traded company on Nasdaq Celebrated 10 years of operations in U.K. market 2 Nasdaq: P
Slide 4: Execution on Strategic Objectives in 2022
Execution on Strategic Objectives in 2022 Modernizing Fostering a Expanding products collections and Being a recognized high-performing and market share improving efficiency and trusted brand workforce at all levels • Record European • Global digital • Meetings with 300+ • Launched two cash collecti
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights Global cash collections of $392 million Net income attributable to PRA Group of $16 million Portfolio purchases of $288 million 4 Nasdaq: PRAA
Slide 6: Portfolio Investments
Portfolio Investments Q4 2022 total portfolio purchases of $288 million Invested $128 million in the Americas Invested $161 million in Europe 5 Nasdaq: PRAA
Slide 7: Highest Credit Card Balances In U.S. History
Highest Credit Card Balances In U.S. History ($ in billions) 6 Nasdaq: PRAA
Slide 8: Share of Household Income Going Toward Consumer Debt is at Pre-Pandemic Levels
Share of Household Income Going Toward Consumer Debt is at Pre-Pandemic Levels Household debt service payments as a percent of disposable personal income 6.0% 5.76% 5.0% 4.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 Source: Board of Governors of the Federal Reserve System 7 N
Slide 9: Rebounding Delinquency Rates and Credit Card Charge-Off Rates
Rebounding Delinquency Rates and Credit Card Charge-Off Rates Delinquency Rate on Credit Card Loans Charge-Off Rate on Credit Card Loans 8 Nasdaq: PRAA
Slide 10: Q4 and Full Year 2022 Financials
Q4 and Full Year 2022 Financials $ in millions, except per share amounts Q4 2021 vs Q4 2022 2021 vs 2022 Total Revenues Operating Expenses Total Revenues Operating Expenses -12% -6% -13% -6% $1,096 $721 $681 $257 $174 $967 $223 $164 Q4 2021 Q4 2022 Q4 2021 Q4 2022 2021 2022 2021 2022 Net Income Attr
Slide 11: Cash Collections
Cash Collections $ in millions Q4 Cash Collections Full Year Cash Collections $474 $2,062 $60 $240 $392 $1,729 $52 $223 $156 $615 $134 $560 $258 $1,207 $206 $946 Q4 2021 Q4 2022 2021 2022 Americas and Australia Core Europe Core Global Insolvency 10 Nasdaq: PRAA
Slide 12: Cash Efficiency Ratio Improved Over Pre-Pandemic Levels
Cash Efficiency Ratio Improved Over Pre-Pandemic Levels Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts 65.3% 64.5% 61.0% 59.9% 58.0% 2018 2019 2020 2021 2022 11 Nasdaq: PRAA
Slide 13: ERC is Diversified with 53% in Europe and 38% in U.S.
ERC1 is Diversified with 53% in Europe and 38% in U.S. Continued strengthening of US dollar reduced ERC by ~$0.3 Billion2 As of December 31, 2021 As of December 31, 2022 United States United Kingdom Central Europe Northern Europe Other Americas and Australia Southern Europe 1. Estimated remaining co
Slide 14: Strong and Conservative Capital Structure
Strong and Conservative Capital Structure $ in millions $2,700 2.9 ▪ $1.6 billion total available $2,609 $2,600 capacity under credit facilities 2.7 $2,495 $2,500 ▪ $465 million available capacity 2.5 after considering borrowing base $2,400 2.25x 2.3 restrictions $2,300 2.1 ▪ As we purchase more por
Slide 15: Key Takeaways
Key Takeaways 2022 was another strong year, led by performance in Europe Economic signs pointing to more supply in the coming months We are ready with an efficient operation & access to capital 14 Nasdaq: PRAA
Slide 16: Q&A
Q&A 15 Nasdaq: PRAA
Slide 17: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures 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, int
Slide 18: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM