PRA Group Reports First Quarter 2024 Results

About this update from Pra Group, Inc.

Accelerated Turnaround of U.S. Business Continuing to Gain Momentum NORFOLK, Va. , May 6, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2024 ("Q1 2024"). Q1 2024 Highlights Total portfolio purchases of $245.8 million . Total cash collections of $449.5 million . Estimated remaining collections (ERC)1 of $6.5 billion . Cash efficiency ratio2 of 58.0%. Diluted earnings per share of $0.09 . Debt to Adjusted EBITDA3 for the 12 months ended March 31, 2024 was 2.83x. Total availability under the Company's credit facilities as of March 31, 2024 was $1.2 billion , comprised of $366.9 million based on current ERC and $855.2 million of additional availability subject to borrowing base and debt covenants, including advance rates. Three Months Ended March 31 , ($ in thousands, except per share amounts) 2024 2023 Net income/(loss) attributable to PRA Group, Inc. $ 3,475 $ (58,629) Diluted earnings per share $ 0.09 $ (1.50) 1. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. 2. Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. 3. A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. "We began 2024 on a positive note, and are well-positioned to achieve our financial and operational targets for the full year. Building on the momentum from last year, the first quarter demonstrated continued progress as we drive the turnaround and deliver substantially improved results," said Vikram Atal , president and chief executive officer. "Total cash collections of $450 million were up 9% year-over-year, reflecting higher portfolio purchases and the impact of our cash-generating and operational initiatives. Looking ahead, we are keenly focused on expanding profitability and delivering shareholder value." Cash Collections and Revenues The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis: Cash Collection Source 2024 2023 ($ in thousands) Q1 Q4 Q3 Q2 Q1 Americas and Australia Core $ 256,861 $ 220,127 $ 223,714 $ 220,886 $ 227,960 Americas Insolvency 25,209 24,293 27,809 26,384 25,751 Europe Core 145,933 144,361 144,402 149,324 134,005 Europe Insolvency 21,515 21,502 23,639 22,725 23,568 Total Cash Collections $ 449,518 $ 410,283 $ 419,564 $ 419,319 $ 411,284 Cash Collection Source - Constant Currency-Adjusted 2024 2023 ($ in thousands) Q1 Q1 Americas and Australia Core $ 256,861 $ 230,382 Americas Insolvency 25,209 25,752 Europe Core 145,933 138,330 Europe Insolvency 21,515 24,580 Total Cash Collections $ 449,518 $ 419,044 Total cash collections in Q1 2024 increased 9.3%, or 7.3% on a constant currency-adjusted basis, to $449.5 million compared to $411.3 million in the first quarter of 2023 ("Q1 2023"). The increase was driven by higher cash collections in our U.S. , Europe , and Brazil Core portfolios. Total portfolio revenue in Q1 2024 was $253.7 million compared to $151.3 million in Q1 2023. Three Months Ended March 31 , ($ in thousands) 2024 2023 Portfolio income $ 202,056 $ 188,242 Changes in expected future recoveries $ 15,836 $ (40,750) Recoveries received in excess of forecast 35,838 3,838 Changes in expected recoveries $ 51,674 $ (36,912) Total portfolio revenue $ 253,730 $ 151,330 Expenses Operating expenses in Q1 2024 increased $0.1 million , or 0.1%, to $189.2 million compared to $189.1 million in Q1 2023. Compensation and employee services expenses decreased $8.8 million , primarily due to $7.5 million in severance expenses in Q1 2023. Legal collection fees increased $3.3 million , primarily due to higher external legal collections within our U.S. Core portfolio. Legal collection costs increased $2.8 million , primarily due to higher volumes of lawsuits filed in Europe , as well as the costs associated with our legal cash-generating initiatives in the U.S. Agency fees increased $2.3 million , primarily due to higher cash collections in Brazil . Communication expenses increased $2.1 million , primarily due to higher account volumes. Interest expense, net in Q1 2024 was $52.3 million , an increase of $14.0 million , or 36.6%, compared to $38.3 million in Q1 2023, primarily reflecting a higher average debt balance and increased interest rates. The effe ctive tax rate for Q1 2024 was 16.9%. Portfolio Acquisitions The Company purchased $245.8 million in portfolios of nonperforming loans in Q1 2024. At the end of Q1 2024, the Company had in place estimated forward flow commitments1 of $473.9 million over the next 12 months, comprised of $375.8 million in the Americas and Australia and $98.1 million in Europe . Portfolio Purchase Source 2024 2023 ($ in thousands) Q1 Q4 Q3 Q2 Q1 Americas & Australia Core $ 174,660 $ 143,052 $ 187,554 $ 171,440 $ 116,867 Americas Insolvency 22,156 18,608 44,279 12,189 15,701 Europe Core 43,997 110,780 60,628 136,834 90,454 Europe Insolvency 5,004 12,476 18,722 7,296 7,203 Total Portfolio Acquisitions $ 245,817 $ 284,916 $ 311,183 $ 327,759 $ 230,225 2024 Financial and Operational Targets The Company reiterates its expectation to achieve the following financial and operational targets for full year 2024: Strong portfolio investment levels Double-digit cash collections growth Modest expense growth 60%+ cash efficiency ratio 6% - 8% return on average tangible equity2 Conference Call Information PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations . To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 6, 2025 , or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 41062# until May 13, 2024 . About PRA Group, Inc. As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas , Europe , and Australia . With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com . About Forward Looking Statements Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission , including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part. 1. Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months based on projections and other factors, including sellers' estimates of future flows sales, and are dependent on actual delivery by the sellers. Accordingly, amounts purchased under these agreements may vary significantly. 2. A reconciliation of total stockholders' equity – PRA Group, Inc. , the most directly comparable financial measure calculated and reported in accordance with GAAP, to average tangible equity can be found at the end of this press release. PRA Group, Inc. Unaudited Consolidated Income Statements (Amounts in thousands, except per share amounts) Three Months Ended March 31 , 2024 2023 Revenues: Portfolio income $ 202,056 $ 188,242 Changes in expected recoveries 51,674 (36,912) Total portfolio revenue 253,730 151,330 Other revenue 1,856 4,140 Total revenues 255,586 155,470 Operating expenses: Compensation and employee services 73,597 82,403 Legal collection fees 12,112 8,838 Legal collection costs 26,691 23,945 Agency fees 19,723 17,378 Outside fees and services 25,050 24,944 Communication 12,578 10,527 Rent and occupancy 4,144 4,448 Depreciation and amortization 2,720 3,589 Other operating expenses 12,575 13,042 Total operating expenses 189,190 189,114 Income/(loss) from operations 66,396 (33,644) Other income and (expense): Interest expense, net (52,278) (38,283) Foreign exchange gain/(loss), net 227 (9) Other (206) (650) Income/(loss) before income taxes 14,139 (72,586) Income tax expense/(benefit) 2,386 (18,683) Net income/(loss) 11,753 (53,903) Adjustment for net income attributable to noncontrolling interests 8,278 4,726 Net income/(loss) attributable to PRA Group, Inc. $ 3,475 $ (58,629) Net income/(loss) per common share attributable to PRA Group, Inc. : Basic $ 0.09 $ (1.50) Diluted $ 0.09 $ (1.50) Weighted average number of shares outstanding: Basic 39,274 39,033 Diluted 39,448 39,033 PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands) (unaudited) March 31 , 2024 December 31 , 2023 Assets Cash and cash equivalents $ 108,100 $ 112,528 Investments 58,879 72,404 Finance receivables, net 3,650,195 3,656,598 Income taxes receivable 32,067 27,713 Deferred tax assets, net 78,883 74,694 Right-of-use assets 44,187 45,877 Property and equipment, net 34,054 36,450 Goodwill 411,846 431,564 Other assets 63,971 67,526 Total assets $ 4,482,182 $ 4,525,354 Liabilities and Equity Liabilities: Accounts payable $ 10,814 $ 6,325 Accrued expenses 98,902 131,893 Income taxes payable 23,541 17,912 Deferred tax liabilities, net 16,888 17,051 Lease liabilities 48,557 50,300 Interest-bearing deposits 113,259 115,589 Borrowings 2,953,048 2,914,270 Other liabilities 20,855 32,638 Total liabilities 3,285,864 3,285,978 Equity: Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 100,000 shares authorized, 39,345 shares issued andoutstanding as of March 31, 2024 ; 100,000 shares authorized, 39,247 shares issued andoutstanding as of December 31, 2023 393 392 Additional paid-in capital 8,928 7,071 Retained earnings 1,493,023 1,489,548 Accumulated other comprehensive loss (373,018) (329,899) Total stockholders' equity - PRA Group, Inc. 1,129,326 1,167,112 Noncontrolling interests 66,992 72,264 Total equity 1,196,318 1,239,376 Total liabilities and equity $ 4,482,182 $ 4,525,354 Select Expenses (Income) Amounts in thousands, pre-tax Three Months Ended March 31 , 2024 December 31 , 2023 September 30 , 2023 June 30 , 2023 March 31 , 2023 December 31 , 2022 September 30 , 2022 June 30 , 2022 Noncash interest expense - amortization of debt issuance costs 2,200 2,177 2,220 2,384 2,441 2,444 2,555 2,471 Change in fair value of derivatives (5,930) (6,734) (6,545) (6,960) (5,470) (3,309) (1,042) 1,525 Amortization of intangibles 60 69 69 68 66 73 73 77 Impairment of real estate — 202 5,037 — — — — — Stock-based compensation expense 3,327 2,952 1,629 2,715 3,799 2,206 3,101 3,849 Purchase Price Multiples as of March 31, 2024 Amounts in thousands Purchase Period Purchase Price (1)(2) Total EstimatedCollections (3) EstimatedRemainingCollections (4) Current PurchasePrice Multiple Original PurchasePrice Multiple (5) Americas and Australia Core 1996-2013 $ 1,932,722 $ 5,735,181 $ 53,058 297 % 233 % 2014 404,117 887,557 26,537 220 % 204 % 2015 443,114 903,490 35,096 204 % 205 % 2016 455,767 1,081,231 61,791 237 % 201 % 2017 532,851 1,204,662 98,626 226 % 193 % 2018 653,975 1,495,710 144,303 229 % 202 % 2019 581,476 1,294,975 159,210 223 % 206 % 2020 435,668 952,081 189,210 219 % 213 % 2021 435,846 745,705 325,686 171 % 191 % 2022 406,082 712,575 417,252 175 % 179 % 2023 622,583 1,227,658 1,038,459 197 % 197 % 2024 174,596 368,538 362,801 211 % 211 % Subtotal 7,078,797 16,609,363 2,912,029 Americas Insolvency 1996-2013 1,266,056 2,502,843 54 198 % 159 % 2014 148,420 218,846 67 147 % 124 % 2015 63,170 88,037 51 139 % 125 % 2016 91,442 118,193 268 129 % 123 % 2017 275,257 357,959 1,435 130 % 125 % 2018 97,879 135,560 1,013 138 % 127 % 2019 123,077 168,504 12,379 137 % 128 % 2020 62,130 91,371 24,293 147 % 136 % 2021 55,187 73,991 29,902 134 % 136 % 2022 33,442 46,945 31,961 140 % 139 % 2023 91,282 120,803 105,383 132 % 135 % 2024 22,156 33,077 32,692 149 % 149 % Subtotal 2,329,498 3,956,129 239,498 Total Americas and Australia 9,408,295 20,565,492 3,151,527 Europe Core 2012-2013 40,742 72,345 1 178 % 153 % 2014 773,811 2,551,509 431,677 330 % 208 % 2015 411,340 750,954 138,612 183 % 160 % 2016 333,090 578,002 161,067 174 % 167 % 2017 252,174 368,260 105,187 146 % 144 % 2018 341,775 548,888 186,849 161 % 148 % 2019 518,610 843,205 334,701 163 % 152 % 2020 324,119 564,901 247,220 174 % 172 % 2021 412,411 698,784 399,930 169 % 170 % 2022 359,447 583,939 460,431 162 % 162 % 2023 410,593 693,985 603,457 169 % 169 % 2024 43,809 82,653 81,224 189 % 189 % Subtotal 4,221,921 8,337,425 3,150,356 Europe Insolvency 2014 10,876 18,933 — 174 % 129 % 2015 18,973 29,335 — 155 % 139 % 2016 39,338 57,747 742 147 % 130 % 2017 39,235 52,006 1,517 133 % 128 % 2018 44,908 52,670 3,747 117 % 123 % 2019 77,218 112,606 17,421 146 % 130 % 2020 105,440 156,347 35,698 148 % 129 % 2021 53,230 73,023 29,947 137 % 134 % 2022 44,604 61,163 43,051 137 % 137 % 2023 46,558 64,359 56,671 138 % 138 % 2024 4,978 7,530 7,495 151 % 151 % Subtotal 485,358 685,719 196,289 Total Europe 4,707,279 9,023,144 3,346,645 Total PRA Group $ 14,115,574 $ 29,588,636 $ 6,498,172 (1) Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions. (2) Non- U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase. (3) Non- U.S. amounts are presented at the year-end exchange rate for the respective year of purchase. (4) Non- U.S. amounts are presented at the March 31, 2024 exchange rate. (5) The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition. Portfolio Financial Information (1) Amounts in thousands March 31, 2024 (year-to-date) As of March 31, 2024 Purchase Period CashCollections (2) PortfolioIncome (2) Change inExpectedRecoveries (2) Total PortfolioRevenue (2) Net FinanceReceivables (3) Americas and Australia Core 1996-2013 $ 9,021 $ 3,462 $ 5,949 $ 9,411 $ 16,050 2014 3,410 1,423 1,852 3,275 10,235 2015 4,262 1,713 2,582 4,294 15,130 2016 6,247 3,288 1,994 5,282 20,969 2017 10,450 4,796 3,180 7,976 40,703 2018 21,334 7,599 8,233 15,833 78,949 2019 22,567 9,256 2,710 11,966 89,544 2020 26,730 10,437 1,040 11,478 105,887 2021 29,841 14,658 (3,302) 11,356 171,251 2022 43,687 18,510 421 18,930 254,765 2023 73,573 45,156 8,060 53,215 565,671 2024 5,739 4,114 974 5,086 173,900 Subtotal 256,861 124,412 33,693 158,102 1,543,054 Americas Insolvency 1996-2013 267 37 231 268 — 2014 64 30 38 68 — 2015 50 11 28 39 28 2016 194 11 186 197 231 2017 805 46 1,028 1,074 1,280 2018 956 48 17 65 967 2019 5,719 399 (158) 240 11,825 2020 4,612 762 672 1,434 21,843 2021 4,090 885 193 1,079 25,851 2022 2,634 846 130 976 26,191 2023 5,432 2,984 (1,004) 1,981 80,736 2024 386 353 19 372 22,142 Subtotal 25,209 6,412 1,380 7,793 191,094 Total Americas and Australia 282,070 130,824 35,073 165,895 1,734,148 Europe Core 2012-2013 281 — 281 281 — 2014 24,056 16,757 6,329 23,086 97,667 2015 7,696 3,524 1,324 4,848 68,718 2016 6,809 3,351 1,410 4,762 90,482 2017 4,609 1,745 688 2,434 70,014 2018 9,554 3,534 (143) 3,392 121,309 2019 17,474 5,802 2,086 7,888 225,375 2020 12,662 4,951 1,190 6,141 152,642 2021 17,293 7,418 1,470 8,888 241,757 2022 18,662 7,916 273 8,190 288,841 2023 25,401 11,317 401 11,718 354,946 2024 1,436 369 563 932 43,288 Subtotal 145,933 66,684 15,872 82,560 1,755,039 Europe Insolvency 2014 45 — 45 45 — 2015 60 2 31 33 — 2016 250 36 69 105 278 2017 488 42 8 50 1,296 2018 1,080 88 9 97 3,393 2019 3,710 428 316 743 15,271 2020 6,272 847 (285) 561 32,321 2021 3,485 746 208 954 25,897 2022 3,332 1,025 227 1,252 34,421 2023 2,760 1,315 75 1,390 43,143 2024 33 19 26 45 4,988 Subtotal 21,515 4,548 729 5,275 161,008 Total Europe 167,448 71,232 16,601 87,835 1,916,047 Total PRA Group $ 449,518 $ 202,056 $ 51,674 $ 253,730 $ 3,650,195 (1) Includes the nonperforming loan portfolios that were acquired through our business acquisitions. (2) Non- U.S. amounts are presented using the average exchange rates during the current reporting period. (3) Non- U.S. amounts are presented at the March 31, 2024 exchange rate. Cash Collections by Year, By Year of Purchase (1) as of March 31, 2024 Amounts in millions Cash Collections Purchase Period PurchasePrice (2)(3) 1996-2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Americas and Australia Core 1996-2013 $ 1,932.7 $ 3,618.9 $ 660.3 $ 474.4 $ 299.7 $ 197.0 $ 140.3 $ 99.7 $ 64.7 $ 46.5 $ 36.0 $ 28.4 $ 9.0 $ 5,674.9 2014 404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 3.4 852.5 2015 443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 4.3 871.5 2016 455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 6.2 980.0 2017 532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 10.4 1095.5 2018 654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 21.3 1322.5 2019 581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 22.6 1093.2 2020 435.7 — — — — — — — 132.9 284.3 192.0 125.8 26.7 761.7 2021 435.8 — — — — — — — — 85.0 177.3 136.8 29.8 428.9 2022 406.1 — — — — — — — — — 67.7 195.4 43.7 306.8 2023 622.6 — — — — — — — — — — 108.4 73.6 182.0 2024 174.5 — — — — — — — — — — — 5.9 5.9 Subtotal 7,078.8 3,618.9 753.0 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.6 256.9 13,575.4 Americas Insolvency 1996-2013 1,266.1 1,491.4 421.4 289.9 168.7 85.5 30.3 6.8 3.6 2.2 1.6 1.1 0.3 2,502.8 2014 148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 0.1 218.7 2015 63.2 — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.1 88.1 2016 91.4 — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.2 118.9 2017 275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 0.8 356.6 2018 97.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 1.0 134.5 2019 123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 5.7 156.1 2020 62.1 — — — — — — — 6.5 16.1 20.4 19.5 4.6 67.1 2021 55.2 — — — — — — — — 4.6 17.9 17.5 4.1 44.1 2022 33.4 — — — — — — — — — 3.2 9.2 2.6 15.0 2023 91.3 — — — — — — — — — — 9.2 5.4 14.6 2024 22.1 — — — — — — — — — — — 0.3 0.3 Subtotal 2,329.5 1,491.4 458.4 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.4 25.2 3,716.8 Total Americas and Australia 9,408.3 5,110.3 1,211.4 1,189.0 1,086.9 1,083.4 1,153.0 1,322.3 1,427.1 1,354.3 1,075.4 997.0 282.1 17,292.2 Europe Core 2012-2013 40.7 27.7 14.2 5.5 3.5 3.3 3.3 2.4 1.9 1.8 1.4 1.0 0.3 66.3 2014 773.8 — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.2 122.2 107.6 24.1 1,844.5 2015 411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 7.7 567.2 2016 333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 6.8 418.3 2017 252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 4.6 238.9 2018 341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 9.6 355.3 2019 518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 17.5 477.5 2020 324.1 — — — — — — — 32.3 91.7 69.0 56.1 12.7 261.8 2021 412.4 — — — — — — — — 48.5 89.9 73.0 17.3 228.7 2022 359.4 — — — — — — — — — 33.9 83.8 18.7 136.4 2023 410.6 — — — — — — — — — — 50.3 25.4 75.7 2024 43.9 — — — — — — — — — — — 1.2 1.2 Subtotal 4,221.9 27.7 167.4 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.2 145.9 4,671.8 Europe Insolvency 2014 10.9 — — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 — 17.0 2015 19.0 — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.1 26.7 2016 39.3 — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.3 60.7 2017 39.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 0.5 48.3 2018 44.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 1.1 49.1 2019 77.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 3.7 92.2 2020 105.4 — — — — — — — 6.0 34.6 34.1 29.7 6.3 110.7 2021 53.2 — — — — — — — — 5.5 14.4 14.7 3.3 37.9 2022 44.6 — — — — — — — — — 4.5 12.4 3.5 20.4 2023 46.6 — — — — — — — — — — 4.3 2.7 7.0 2024 5.0 — — — — — — — — — — — — — Subtotal 485.4 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.5 21.5 470.0 Total Europe 4,707.3 27.7 167.4 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.7 167.4 5,141.8 Total PRA Group $ 14,115.6 $ 5,138.0 $ 1,378.8 $ 1,539.6 $ 1,492.0 $ 1,512.6 $ 1,625.2 $ 1,841.2 $ 2,005.6 $ 2,061.9 $ 1,728.9 $ 1,660.7 $ 449.5 $ 22,434.0 (1) Non- U.S. amounts are presented using the average exchange rates during the cash collection period. (2) Includes the acquisition date finance receivables portfolios acquired through our business acquisitions. (3) Non- U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase. 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 EBITDA, internally to evaluate the Company's performance and to set performance goals. Adjusted EBITDA is calculated as net income attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; plus impairment of real estate; plus adjustment for net income attributable to noncontrolling interests; and plus recoveries applied to negative allowance less changes in expected recoveries. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of operations and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of operations and financial performance and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Set forth below is a reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended March 31, 2024 and for the year ended December 31, 2023 . The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies. Reconciliation of Non-GAAP Financial Measures LTM For the Year Ended Adjusted EBITDA for PRA Group ($ in millions) March 31, 2024 December 31, 2023 Net income/(loss) attributable to PRA Group, Inc. $ (21) $ (83) Adjustments: Income tax expense/(benefit) 5 (16) Foreign exchange gain (1) — Interest expense, net 196 181 Other expense 2 2 Depreciation and amortization 13 13 Impairment of real estate 5 5 Adjustment for net income attributable to noncontrolling interests 20 17 Recoveries applied to negative allowance less Changes in expected recoveries 825 888 Adjusted EBITDA $ 1,044 $ 1,007 The Company also evaluates its business using certain ratios that use Adjusted EBITDA. Debt to Adjusted EBITDA is calculated by dividing borrowings by Adjusted EBITDA. The following table reflects the Company's Debt to Adjusted EBITDA for the LTM as of March 31, 2024 and for the year ended December 31, 2023 ($ in millions): Debt to Adjusted EBITDA LTM For the Year Ended March 31, 2024 December 31, 2023 Borrowings $ 2,953 $ 2,914 Adjusted EBITDA 1,044 1,007 Debt to Adjusted EBITDA 2.83 2.89 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 and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity ("ATE") is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by ATE. The following table displays the Company's ROATE and provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to ATE for the periods indicated (amounts in thousands, except for ratio data): Return on Average Tangible Equity Period Ended Average Period Ended Average March 31 ,2024 December 31 ,2023 First Quarter2024 March 31 ,2023 December 31 ,2022 First Quarter2023 Total stockholders' equity - PRA Group, Inc. $ 1,129,326 $ 1,167,112 $ 1,148,219 $ 1,158,343 $ 1,227,661 $ 1,193,002 Less: Goodwill 411,846 431,564 421,705 420,647 435,921 428,284 Less: Other intangible assets 1,666 1,742 1,704 1,833 1,847 1,840 Average tangible equity $ 724,810 $ 762,878 First Quarter2024 First Quarter2023 Net income/(loss) attributable to PRA Group, Inc. $ 3,475 $ (58,629) Return on average tangible equity (1) 1.9 % (30.7) % 1. Based on annualized Net income/(loss) attributable to PRA Group , Inc. Investor Contact: Najim Mostamand , CFAVice President, Investor Relations757-431-7913 [email protected] News Media Contact: Elizabeth Kersey Senior Vice President, Communications and Public Policy(757) 641-0558 [email protected] View original content to download multimedia: https://www.prnewswire.com/news-releases/pra-group-reports-first-quarter-2024-results-302137215.html SOURCE PRA Group, Inc.

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