Pra Group, Inc. · NASDAQ:PRAA
Pra — Q1 2021 Earnings Presentation
13 slides from Pra's earnings presentation, 2021
Slide 1: Q1 2021 Conference Call Presentation
Slide 2: About Forward-Looking Statements
ABOUT 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 involv
Slide 3: Record Global Cash Collections Drive First Quarter Results
RECORD GLOBAL CASH COLLECTIONS DRIVE FIRST QUARTER RESULTS Record global cash collections of $556 million Net income attributable to PRA Group of $58 million Portfolio purchases of $159 million Estimated remaining collections of $6.1 billion
Slide 4: Global Operations Show Strong Productivity
GLOBAL OPERATIONS SHOW STRONG PRODUCTIVITY Significant growth in digital Continued to leverage data and analytics Improved cash collected per hour paid in the U.S. by more than 60% versus Q1 2020 Portfolio investments helped drive record cash collections in Europe Committed to keeping workforce safe
Slide 5: Total purchases of $159 million
Total purchases of $159 million European market expected to exceed that of 2020 First Australian portfolio is a forward flow
Slide 6: Revenue Growth with Lower Operating Expenses Drives Higher Diluted EPS
REVENUE GROWTH WITH LOWER OPERATING EXPENSES DRIVES HIGHER DILUTED EPS Q1 2020 = Q1:2021 Q1 2020 =Q1 2021 Q1 2020 Q1 2021 Net Income Attributable to PRA Group Diluted Earnings Per Share $58 $1.27 $19 | $0.42 i Q1 2020 Qi 2021 Q1 2020 Q1 2021 cron Sale
Slide 7: Significant Cash Collections Growth in Americas and Australia Core and Europe
SIGNIFICANT CASH COLLECTIONS GROWTH IN AMERICAS AND AUSTRALIA CORE AND EUROPE (S in millions) Record global cash collections Wi ai 2020 MM Qi 2021 of $556 million Shift to call centers and digital platforms continues in U.S. Strong portfolio purchases in Europe help drive growth Americas and America
Slide 8: Cash Efficiency Ratio for Q1 2021 Was 68.0%
CASH EFFICIENCY RATIO FOR Q1 2021 WAS 68.0% INCREASING FULL YEAR EXPECTATION TO 63% (S in millions, Cash efficiency ratio = (cash receipts — operating expenses)/cash receipts) $2,000 $1,500 $1,000 2014 2015 2016 2017 EE Cash Receipts = ———Cash Efficiency Ratio = —=Insolvency as a % of Cash Collectio
Slide 9: Estimated Remaining Collections as of March 31, 2021
as of March 31, 2021 as of March 31, 2020 40° Bitlian United States, $3,469 eis RA
Slide 10: Strong Results and Leverage Position Put PRA in Good Position to Purchase Portfolios
STRONG RESULTS AND LEVERAGE POSITION PUT PRA IN GOOD POSITION TO PURCHASE PORTFOLIOS ($ in millions) sam Total Borrowings ©—Debt to Adusted EBITDA* $2,661 December 31, 2020 March 31, 2021 $1.2 Billion Available for Portfolio Acquisitions *Please refer to the reconciliation of this metric to the most
Slide 11: Closing summary of results
—— eos Set four quarterly global cash records Grew net income more than 30% in four of last five quarters Expanded and improved digital websites resulting in strong digital performance across the globe — ia. G Ra ale
Slide 12: Q&A
Slide 13: Reconciliation of Non-GAAP Financial Measure to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP Use of Non-GAAP Financial Measures PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internal