Pra Group, Inc. · NASDAQ:PRAA
Pra — Q2 2023 Earnings Presentation
14 slides from Pra's earnings presentation, Aug 7, 2023
Slide 1: PRA Group Q2 2023 Conference Call Presentation
PRA Group Q2 2023 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: Opening Remarks
Opening Remarks Growing Creating People Europe Portfolio U.S. Shareholder Supply Value Talented team Over 50% of Total portfolio Optimizing Acting with of individuals in ERC1 purchases up customer urgency every function 47% in 1H 2023 interactions and and geography Broad vs. 1H 2022 reve
Slide 4: Optimizing Performance: A Framework
Optimizing Performance: A Framework Framework to Address Large and Levers Expanding Customer Universe • Decision criteria/execution Omni-channel approach (call center/digital/legal) • Capacity optimization • Expand outsourcing/offshoring Strategies Real time Cash dynamically tailored to • Legal chan
Slide 5: Q2 Portfolio Investments Increased 42% Year-over-Year
Q2 Portfolio Investments Increased 42% Year-over-Year $ in millions Q2 Portfolio Investments YTD Portfolio Investments $558 $42 $379 $227 $328 $26 $19 $231 $163 $8 $137 $124 $288 $171 $191 $100 Q2 2022 Q2 2023 2022 2023 Americas and Australia Core Europe Core Global Insolvency 4 Nasdaq: PRAA
Slide 6: Q2 2023 Financial Results
Q2 2023 Financial Results $ in millions, except per share amounts Total Revenues Operating Expenses Net Income/(Loss) Diluted Earnings Attributable Per Share to PRA Group -19% -6% -110% -111% $258 $175 $164 $36 $0.91 $209 ($4) ($0.10) Q2 2022 Q2 2023 5 Nasdaq: PRAA
Slide 7: Cash Collections
Cash Collections Second Quarter 2022 Second Quarter 2023 Americas & Australia Core Europe Core Global Insolvency 6 Nasdaq: PRAA
Slide 8: Cash Efficiency Ratio
Cash Efficiency Ratio Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts 65.3% 64.5% 61.0% 61.2% 59.9% 2019 2020 2021 2022 Q2 2023 7 Nasdaq: PRAA
Slide 9: ERC is Diversified with 36% in U.S. and 54% in Europe
ERC is Diversified with 36% in U.S. and 54% in Europe As of March 31, 2023 As of June 30, 2023 United States United Kingdom Central Europe Northern Europe Other Americas and Australia Southern Europe 8 Nasdaq: PRAA
Slide 10: Strong and Conservative Capital Structure
Strong and Conservative Capital Structure $ in millions $3,000 $2,740 4.5 • $1.4 billion total available capacity $2,495 under credit facilities $2,500 4 • $332 million available capacity after $2,000 3.5 considering borrowing base restrictions $1,500 3 2.76x • Debt to Adjusted EBITDA* of 2.76x $1,0
Slide 11: Key Takeaways
Key Takeaways Record purchasing for a second quarter in Company history Supply is gradually building, with economic signs for more coming Focused on executing strategy, returning to profitability and capitalizing on next stage of the consumer credit cycle 10 Nasdaq: PRAA
Slide 12: Q&A
Q&A 11 Nasdaq: PRAA
Slide 13: 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 14: Najim Mostamand, CFA, VP, Investor Relations
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM