Pra Group, Inc. · NASDAQ:PRAA
Pra — Q4 2024 Earnings Presentation
17 slides from Pra's earnings presentation, Feb 19, 2025
Slide 1: PRA Group Q4 and FY 2024 Conference Call Presentation
PRA Group Q4 and FY 2024 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: 2024 Accomplishments
2024 Accomplishments1 Executed on our cash- Achieved financial Capitalized on Further Expanded senior generating and Strengthened our targets and drove rebound in U.S. differentiated our leadership team operational initiatives capital structure business turnaround portfolio supply European business
Slide 4: Delivering Across Three Pillars Positions Us to Sustain Momentum in 2025
Delivering Across Three Pillars Positions Us to Sustain Momentum in 2025 2024 2025 Optimizing Record purchases of $1.4B, up 22% YoY • Positioned to capitalize on sustained elevated levels of U.S. portfolio supply Investments Purchase price multiples up meaningfully YoY • Europe portfolio supply
Slide 5: Q4 Investments of $433 Million, Up 52% Year-Over-Year
Q4 Investments of $433 Million, Up 52% Year-Over-Year Record Annual Investments of $1.4 Billion $ in millions Quarterly Investments Annual Investments +22% +52% $1,408 $433 $1,289 $379 $1,154 $350 $328 $972 $311 $229 $905 $288 $285 $154 $76 $850 $79 $246 $231 $230 $144 $123 $49 $183 $161 $125 $98 $1
Slide 6: The Two Components of Portfolio Revenue
The Two Components of Portfolio Revenue Both Represent an Important Part of Revenue & Profitability $ in millions Portfolio Income Changes in Expected Recoveries Portfolio Income Continues to Grow Recent Periods Exceed Three-Year Average $300 $80 $73 $61 $250 $60 $57 $55 $230 $52 Avg: $216 $48 $37 $
Slide 7: Q4 and Full Year 2024 Financial Results
Q4 and Full Year 2024 Financial Results $ in millions, except per share amounts Q4 2023 vs Q4 2024 2023 vs 2024 Total Revenues Portfolio Income Operating Expenses Total Revenues Portfolio Income Operating Expenses +32% +18% +13% +39% +13% +10% $293 $230 $199 $1,115 $857 $775 $195 $176 $757 $702 $221
Slide 8: Q4 Cash Collections Increased 14% Year-Over-Year
Q4 Cash Collections Increased 14% Year-Over-Year Annual Collections Up 13% Year-Over-Year $ in millions Quarterly Cash Collections Annual Cash Collections -13% -18% -16% -17% -14% -6% +2% +5% +9% +13% +14% +14% +13% $2,006 $2,062 $481 $1,841 $1,869 $474 $477 $468 $444 $450 $1,729 $1,660 $412 $411 $4
Slide 9: Select U.S. Economic Indicators
Select U.S. Economic Indicators 1 2 3 Unemployment Rate1 Inflation2 and Interest Rates3 Gas Prices4 Inflation Interest Rates 15% 10% $5.50 9.1% 8% $4.50 10% 6% 4.5% $3.50 $3.28 4% $2.60 5% 2.9% 4.0% 4.1% 2.1% $2.50 2% 1.4% 0% 0% $1.50 Jan Dec Jan Dec Jan Dec 2018 2024 2018 2024 2018 2024 1. U.S. Bur
Slide 10: ERC Increased 17% Year-Over-Year to a Record $7.5 Billion
ERC Increased 17% Year-Over-Year to a Record $7.5 Billion Up $167 Million Sequentially Amid Strengthening Dollar and FX Headwinds $ in billions ERC +17% $8.0 $7.3 $7.5 $6.8 $0.5 $0.5 $7.0 $6.5 $6.4 $0.5 $5.9 $6.0 $0.6 $0.5 $6.0 $5.7 $5.6 $5.7 $5.7 $0.4 $5.3 $0.6 $0.6 $0.4 $0.5 $0.5 $3.3 $0.5 $3.2 $5
Slide 11: Leverage in Target Range Supports Higher Portfolio Purchases
Leverage in Target Range Supports Higher Portfolio Purchases $ in billions Debt to Total Total Borrowings and Debt to Adjusted EBITDA* Adjusted Borrowings EBITDA $3.5 $3.3 $3.3 4.0x $3.1 $2.9 $2.9 $3.0 $3.0 $2.7 $2.8 $2.5 3.5x $2.5 $2.4 $2.5 $2.5 $2.0 3.0x 2.92x 3.00x 2.92x 2.89x 2.76x 2.84x 2.89x 2
Slide 12: Strong Capital Structure
Strong Capital Structure Well-Positioned to Continue Capitalizing on Elevated Portfolio Supply $ in millions Debt Maturity Profile • $1.0 billion available under our credit facilities as of December 31, 2024 $1,834 • $564 million available based on current ERC • $462 million of additional availabili
Slide 13: Financial Outlook
Financial Outlook Delivered 2024 Targets and Updated 2025 Targets 2025 TARGETS1 Portfolio Purchases • $1.2 billion of portfolio investments • High single-digit cash collections growth due to strong portfolio purchases and Cash Collections impact from cash-generating initiatives • 60%+ cash efficienc
Slide 14: Q&A
Q&A 13 Nasdaq: PRAA
Slide 15: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP $ in millions Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted E
Slide 16: Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.)
Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.) Use of Non-GAAP Financial Measures (Cont.) In addition, the Company uses return on average tangible equity (ROATE), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor
Slide 17: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM