Slide 1: Q3 2020 Conference Call Presentation
Q3 2020 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: Third quarter trends were similar to first half 2020
THIRD QUARTER TRENDS WERE SIMILAR TO FIRST HALF 2020 Record global cash collections of $519 million Portfolio purchases of $178 million Estimated remaining collections of $6.3 billion 3
Slide 4: Results in Americas continued to be strong
RESULTS IN AMERICAS CONTINUED TO BE STRONG Cash collections of $374 million Seeing collection shift from legal to call centers and digital channel Invested $98 million 4
Slide 5: Record purchases in 2019 drive record cash collections in Q3 in Europe
RECORD PURCHASES IN 2019 DRIVE RECORD CASH COLLECTIONS IN Q3 IN EUROPE Record cash collections of $146 million in Europe Invested $79 million 5
Slide 6: Quarterly net income increased 70% from Q3 2019
QUARTERLY NET INCOME INCREASED 70% FROM Q3 2019 ($ in millions, except per share results) Q3 2019 vs Q3 2020 Cash Collections Total Revenues* Operating Expenses +15% +9% -1% $519 $268 $181 $179 $453 $246 Q3 2019 Q3 2020 Q3 2019* Q3 2020 Q3 2019 Q3 2020 Net Income Diluted Earnings Per Share +70% +67%
Slide 7: Cash collections performing well
CASH COLLECTIONS PERFORMING WELL ($ in millions) Third Quarter 2020 Third Quarter 2019 Europe Europe Insolvency, Insolvency, $14.0 $8.6 Europe Core, Europe Core, $131.7 $118.9 Americas Americas Core, Insolvency, Americas Core, Americas $279.9 $37.3 $336.3 Insolvency, $45.8 7
Slide 8: YTD cash efficiency ratio is 65.3%
YTD CASH EFFICIENCY RATIO IS 65.3% ($ 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 $1,531 $1,444 $1,400 50% $1,214 $1,200 40% $971 $1,000 $762 30% $800 $592 $600 20% $383 $433 $400 $298 10% $2
Slide 9: ERC is diversified
ERC IS DIVERSIFIED ($ in millions) as of September 30, 2020 as of September 30, 2019 Southern Southern Europe, $189 Europe, $167 Other Other Americas, Americas, Northern $270 $379 Northern Europe, $461 Europe, $452 Central Central Europe, $737 Europe, $675 United States, $3,186 United States, $3,463
Slide 10: Strong financial performance drives solid leverage position
STRONG FINANCIAL PERFORMANCE DRIVES SOLID LEVERAGE POSITION ($ in millions) Total Borrowings Debt to Adjusted EBITDA * $2,900 $2,808 2.9 $2,800 2.7 $2,700 2.54x $2,600 2.5 $2,524 $2,500 2.3 $2,400 2.1 $2,300 1.90x 1.9 $2,200 1.7 $2,100 $2,000 1.5 December 31, 2019 September 30, 2020 $1.0 Billion Ava
Slide 11: PRA Group remains in a strong competitive position
PRA GROUP REMAINS IN A STRONG COMPETITIVE POSITION Believe supply will increase Sustainable, efficient operating capacity Over a billion dollars ready to invest in NPLs in addition to generating $1.3 billion in LTM adjusted EBITDA 11
Slide 12: Q&A
Q&A 12
Slide 13: Reconciliation of non-GAAP financial measure to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP ($ in thousands) Use of Non-GAAP Financial Measures PRA Group, Inc. reports financial results in accordance with U.S. GAAP. However, the Company believes that the use of certain metrics assists with the meaningful comparison between current year r