Pra Group, Inc. · NASDAQ:PRAA
Pra — Q1 2023 Earnings Presentation
18 slides from Pra's earnings presentation, May 8, 2023
Slide 1: PRA Group Q1 2023 Conference Call Presentation
PRA Group Q1 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 • Joined PRA Board of Directors in 2015 • 27 years across various senior executive roles at Citigroup, Inc. • Oversaw operations spanning 50 countries, 30,000 employees, and 60 million customers • Managed $200 billion of high-risk consumer assets during the 2008 financial crisis • He
Slide 4: Where We Are Today
Where We Are Today Outstanding credibility and reputation among customers, investors, legislators, and other key stakeholders One of the industry’s strongest balance sheets, with flexibility to capitalize on our global presence Trusted, long-term relationships with key sellers around the world Disci
Slide 5: Looking Ahead
Looking Ahead The future is bright, but facing near-term challenges in U.S. business We are committed to addressing these challenges with urgency and intensity Our overall business strategy remains intact and on target 4 Nasdaq: PRAA
Slide 6: Q1 2023 Highlights
Q1 2023 Highlights Cash collections of $411 million Portfolio purchases of $230 million 5 Nasdaq: PRAA
Slide 7: U.S. Delinquency and Charge-Off Rates Continue to Climb
U.S. Delinquency and Charge-Off Rates Continue to Climb Delinquency Rate on Credit Card Loans Charge-Off Rate on Credit Card Loans 6 Nasdaq: PRAA
Slide 8: Q1 2023 Financial Results
Q1 2023 Financial Results $ in millions, except per share amounts Total Revenues Operating Expenses Net Income Attributable Diluted Earnings to PRA Group Per Share -35% +12% -247% -255% $241 $189 $40 $0.97 $169 $155 -$59 -$1.50 Q1 2022 Q1 2023 7 Nasdaq: PRAA
Slide 9: Cash Collections
Cash Collections First Quarter 2022 First Quarter 2023 Americas & Australia Core Europe Core Global Insolvency 8 Nasdaq: PRAA
Slide 10: Cash Efficiency Ratio Remained Strong on an Adjusted Basis in Q1
Cash Efficiency Ratio Remained Strong on an Adjusted Basis in Q1 Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts 64.5% 65.3% 61.0% 58.0% cash efficiency ratio, 59.9% as adjusted* 54.3% 2019 2020 2021 2022 Q1 2023 9 Nasdaq: PRAA *Excludes $7.5M of severance costs and $7.6M
Slide 11: Portfolio Investments Increased 56% Year-over-Year
Portfolio Investments Increased 56% Year-over-Year First Quarter 2022 First Quarter 2023 Americas & Australia Core Europe Core Global Insolvency 10 Nasdaq: PRAA
Slide 12: ERC is Diversified with 54% in Europe and 37% in U.S.
ERC1 is Diversified with 54% in Europe and 37% in U.S. As of December 31, 2022 As of March 31, 2023 United States United Kingdom Central Europe Northern Europe Other Americas and Australia Southern Europe 11 Nasdaq: PRAA 1. Estimated remaining collections (ERC) refers to the sum of all future projec
Slide 13: Strong and Conservative Capital Structure
Strong and Conservative Capital Structure $ in millions $3,000 $2,938 4.5 • $1.6 billion total available capacity $2,900 under credit facilities 4 $2,800 $2,700 • $437 million available capacity after 3.5 $2,600 considering borrowing base $2,495 2.89x restrictions $2,500 3 $2,400 2.55x • Debt to Adj
Slide 14: Key Takeaways
Key Takeaways Q1 was a strong purchasing quarter Economic signs continue to point to more supply coming Focused on executing strategy and delivering improved financial performance 13 Nasdaq: PRAA
Slide 15: Q&A
Q&A 14 Nasdaq: PRAA
Slide 16: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP Use of Non-GAAP Financial Measures PRA Group, Inc. reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, int
Slide 17: Reconciliation of Cash Efficiency Ratio
Reconciliation of Cash Efficiency Ratio Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts As Reported ($ in millions) Q1 2022 Q1 2023 Cash Collections $ 481 $ 411 Fee Income $ 2 $ 3 Operating Expenses $ 169 $ 189 Cash Efficiency As Reported 65.1% 54.3% As Adjusted ($ in mill
Slide 18: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM