PRA Group Reports Second Quarter 2024 Results

About this update from Pra Group, Inc.

Executing Successful Turnaround in U.S. Business NORFOLK, Va. , Aug. 5, 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 second quarter of 2024 ("Q2 2024"). Q2 2024 Highlights Net income attributable to PRA Group, Inc. of $21.5 million , or diluted earnings per share of $0.54 . Total portfolio purchases of $379.4 million . Total cash collections of $473.9 million . Estimated remaining collections (ERC)1 of $6.8 billion . Cash efficiency ratio2 of 58.9%. Adjusted EBITDA3 for the 12 months ended June 30, 2024 of $1.1 billion . Three Months Ended June 30 , Six Months Ended June 30 , ($ in thousands, except per share amounts) 2024 2023 2024 2023 Net income/(loss) attributable to PRA Group, Inc. $ 21,516 $ (3,804) $ 24,991 $ (62,433) Diluted earnings per share $ 0.54 $ (0.10) $ 0.63 $ (1.60) "The second quarter was another important step in demonstrating the turnaround in our U.S. business, delivering against our financial and operational targets for 2024, and positioning the Company for future growth," said Vikram Atal , president and chief executive officer. "We invested $379 million during the quarter, which represents our third highest quarterly level of purchases over the past five years. This was driven by the continued strength of U.S. portfolio supply coupled with stronger supply in Europe this quarter, with pricing remaining attractive globally. Cash collections grew 13% year-over-year, primarily reflecting higher recent purchases and the positive impact of our cash-generating and operational initiatives in our U.S. business, particularly in our legal collections channel where we have been investing for growth. We also experienced continued cash collections growth in our European business. Our net income for the quarter reflects the progress we have made in executing the turnaround with speed across a broad set of initiatives. Looking ahead, we remain focused on sustaining profitability and positioning the Company for attractive growth in the years to come." 1. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. 2. Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. 3. A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. Cash Collections and Revenues The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis: Cash Collection Source 2024 2023 ($ in thousands) Q2 Q1 Q4 Q3 Q2 Americas and Australia Core $ 263,828 $ 256,861 $ 220,127 $ 223,714 $ 220,886 Americas Insolvency 26,971 25,209 24,293 27,809 26,384 Europe Core 156,739 145,933 144,361 144,402 149,324 Europe Insolvency 26,344 21,515 21,502 23,639 22,725 Total cash collections $ 473,882 $ 449,518 $ 410,283 $ 419,564 $ 419,319 Cash Collection Source - Constant Currency-Adjusted 2024 2023 ($ in thousands) Q2 Q2 Americas and Australia Core $ 263,828 $ 219,118 Americas Insolvency 26,971 26,377 Europe Core 156,739 149,889 Europe Insolvency 26,344 22,888 Total Cash collections $ 473,882 $ 418,272 Total cash collections in Q2 2024 increased 13.0% to $473.9 million compared to $419.3 million in the second quarter of 2023 ("Q2 2023"). The increase was primarily driven by higher cash collections in the U.S. and Europe . For the six months ended June 30, 2024 , cash collections increased $92.8 million , or 11.2%, compared to the same period last year. Total portfolio revenue in Q2 2024 increased 37.6% to $282.6 million compared to $205.4 million in Q2 2023. For the six months ended June 30, 2024 , total portfolio revenue increased 50.3% to $536.3 million compared to $356.8 million in the same period last year. Three Months Ended June 30 , Six Months Ended June 30 , ($ in thousands) 2024 2023 2024 2023 Portfolio income $ 209,290 $ 184,290 $ 411,346 $ 372,532 Recoveries received in excess of forecast $ 54,260 $ 25,348 $ 90,098 $ 29,186 Changes in expected future recoveries 19,060 (4,212) 34,896 (44,962) Changes in expected recoveries $ 73,320 $ 21,136 $ 124,994 $ (15,776) Total portfolio revenue $ 282,610 $ 205,426 $ 536,340 $ 356,756 Expenses Operating expenses in Q2 2024 increased $31.3 million , or 19.1%, to $195.0 million compared to $163.7 million in Q2 2023. Legal collection costs increased $13.8 million , primarily due to increased investments in our U.S. legal channel to drive future cash growth, as well as expansion of legal collections activities in Europe . Compensation and employee services expenses increased $8.5 million , primarily due to lower compensation accruals in Q2 2023. Legal collection fees increased $4.2 million , due to higher external legal collections in our U.S. Core portfolio. For the six months ended June 30, 2024 , operating expenses increased by $31.4 million , or 8.9%, compared to the same period last year. Interest expense, net in Q2 2024 was $55.4 million , an increase of $12.3 million , or 28.7%, compared to $43.0 million in Q2 2023, reflecting increased interest rates and a higher average debt balance. The effective tax rate for the six months ended June 30, 2024 was 23.1%. Portfolio Acquisitions The Company purchased $379.4 million in portfolios of nonperforming loans in Q2 2024. At the end of Q2 2024, the Company had in place estimated forward flow commitments1 of $385.6 million over the next 12 months, comprised of $272.1 million in the Americas and Australia and $113.5 million in Europe . Portfolio Purchase Source 2024 2023 ($ in thousands) Q2 Q1 Q4 Q3 Q2 Americas & Australia Core $ 198,761 $ 174,660 $ 143,052 $ 187,554 $ 171,440 Americas Insolvency 26,627 22,156 18,608 44,279 12,189 Europe Core 127,991 43,997 110,780 60,628 136,834 Europe Insolvency 25,990 5,004 12,476 18,722 7,296 Total portfolio acquisitions $ 379,369 $ 245,817 $ 284,916 $ 311,183 $ 327,759 Credit Availability Total availability under the Company's credit facilities as of June 30, 2024 was $1.4 billion , comprised of $741.9 million based on current ERC and $706.6 million of additional availability subject to borrowing base and debt covenants, including advance rates. The Company intends to borrow $298.0 million under its North American revolving credit agreement on or about September 1, 2024 to redeem its Senior Notes due 2025, which, all other effects being equal, would cause a corresponding decrease to the availability under its credit facilities. 2024 Financial and Operational Targets The Company expects to achieve the following financial and operational targets for full year 2024: Strong portfolio investment levels Double-digit cash collections 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 August 5, 2025 , or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 71248# until August 12, 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 under the agreements in place, based on projections and other factors, including sellers' estimates of future flow 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 June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Revenues: Portfolio income $ 209,290 $ 184,290 $ 411,346 $ 372,532 Changes in expected recoveries 73,320 21,136 124,994 (15,776) Total portfolio revenue 282,610 205,426 536,340 356,756 Other revenue 1,619 3,810 3,475 7,950 Total revenues 284,229 209,236 539,815 364,706 Operating expenses: Compensation and employee services 74,241 65,788 147,838 148,191 Legal collection fees 13,762 9,551 25,874 18,389 Legal collection costs 35,274 21,522 61,965 45,467 Agency fees 21,008 17,677 40,731 35,055 Outside fees and services 18,124 18,262 43,174 43,206 Communication 11,577 10,117 24,155 20,644 Rent and occupancy 4,136 4,319 8,280 8,767 Depreciation and amortization 2,637 3,482 5,357 7,071 Other operating expenses 14,248 12,957 26,823 25,999 Total operating expenses 195,007 163,675 384,197 352,789 Income from operations 89,222 45,561 155,618 11,917 Other income and (expense): Interest expense, net (55,353) (43,022) (107,631) (81,305) Foreign exchange gain/(loss), net (99) 429 128 420 Other 46 (230) (160) (880) Income/(loss) before income taxes 33,816 2,738 47,955 (69,848) Income tax expense/(benefit) 8,702 1,578 11,088 (17,105) Net income/(loss) 25,114 1,160 36,867 (52,743) Adjustment for net income attributable to noncontrolling interests 3,598 4,964 11,876 9,690 Net income/(loss) attributable to PRA Group, Inc. $ 21,516 $ (3,804) $ 24,991 $ (62,433) Net income/(loss) per common share attributable to PRA Group, Inc. : Basic $ 0.55 $ (0.10) $ 0.64 $ (1.60) Diluted $ 0.54 $ (0.10) $ 0.63 $ (1.60) Weighted average number of shares outstanding: Basic 39,364 39,190 39,319 39,111 Diluted 39,546 39,190 39,497 39,111 PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands) (unaudited) June 30 , 2024 December 31 , 2023 Assets Cash and cash equivalents $ 118,865 $ 112,528 Investments 59,619 72,404 Finance receivables, net 3,820,186 3,656,598 Income taxes receivable 34,813 27,713 Deferred tax assets, net 76,486 74,694 Right-of-use assets 42,374 45,877 Property and equipment, net 32,827 36,450 Goodwill 415,646 431,564 Other assets 61,124 67,526 Total assets $ 4,661,940 $ 4,525,354 Liabilities and Equity Liabilities: Accounts payable $ 10,198 $ 6,325 Accrued expenses 114,260 131,893 Income taxes payable 23,583 17,912 Deferred tax liabilities, net 18,423 17,051 Lease liabilities 46,746 50,300 Interest-bearing deposits 114,991 115,589 Borrowings 3,113,777 2,914,270 Other liabilities 16,684 32,638 Total liabilities 3,458,662 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, 39,417 shares issued and outstanding as of June 30, 2024 ; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023 394 392 Additional paid-in capital 12,339 7,071 Retained earnings 1,514,539 1,489,548 Accumulated other comprehensive loss (381,809) (329,899) Total stockholders' equity - PRA Group, Inc. 1,145,463 1,167,112 Noncontrolling interests 57,815 72,264 Total equity 1,203,278 1,239,376 Total liabilities and equity $ 4,661,940 $ 4,525,354 Select Expenses (Income) Amounts in thousands, pre-tax Three Months Ended June 30 , 2024 March 31 , 2024 December 31 , 2023 September 30 , 2023 June 30 , 2023 March 31 , 2023 December 31 , 2022 September 30 , 2022 Noncash interest expense - amortization of debt issuance costs $ 2,331 $ 2,200 $ 2,177 $ 2,220 $ 2,384 $ 2,441 $ 2,444 $ 2,555 Change in fair value of derivatives (5,628) (5,930) (6,734) (6,545) (6,960) (5,470) (3,309) (1,042) Amortization of intangibles 58 60 69 69 68 66 73 73 Impairment of real estate — — 202 5,037 — — — — Stock-based compensation expense 3,555 3,327 2,952 1,629 2,715 3,799 2,206 3,101 Purchase Price Multiples as of June 30, 2024 Amounts in thousands Purchase Period Purchase Price (1)(2) Total EstimatedCollections (3) Estimated Remaining Collections (4) Current PurchasePrice Multiple Original PurchasePrice Multiple (5) Americas and Australia Core 1996-2013 $ 1,932,722 $ 5,745,296 $ 54,130 297 % 233 % 2014 404,117 893,611 28,903 221 % 204 % 2015 443,114 912,525 39,549 206 % 205 % 2016 455,767 1,088,320 60,856 239 % 201 % 2017 532,851 1,209,023 92,474 227 % 193 % 2018 653,975 1,508,340 134,993 231 % 202 % 2019 581,476 1,302,954 143,944 224 % 206 % 2020 435,668 952,248 165,787 219 % 213 % 2021 435,846 740,020 286,888 170 % 191 % 2022 406,082 707,943 364,784 174 % 179 % 2023 622,583 1,224,773 948,003 197 % 197 % 2024 373,421 787,310 759,217 211 % 211 % Subtotal 7,277,622 17,072,363 3,079,528 Americas Insolvency 1996-2013 1,266,056 2,503,066 26 198 % 159 % 2014 148,420 218,933 46 148 % 124 % 2015 63,170 88,083 35 139 % 125 % 2016 91,442 118,282 232 129 % 123 % 2017 275,257 358,452 1,185 130 % 125 % 2018 97,879 136,147 942 139 % 127 % 2019 123,077 168,485 7,765 137 % 128 % 2020 62,130 91,590 20,018 147 % 136 % 2021 55,187 74,273 26,054 135 % 136 % 2022 33,442 47,143 29,305 141 % 139 % 2023 91,282 120,038 97,797 132 % 135 % 2024 48,783 71,770 68,932 147 % 147 % Subtotal 2,356,125 3,996,262 252,337 Total Americas and Australia 9,633,747 21,068,625 3,331,865 Europe Core 2012-2013 40,742 72,662 1 178 % 153 % 2014 773,811 2,564,807 415,481 331 % 208 % 2015 411,340 755,061 134,415 184 % 160 % 2016 333,090 579,777 156,278 174 % 167 % 2017 252,174 369,070 101,373 146 % 144 % 2018 341,775 557,913 185,378 163 % 148 % 2019 518,610 848,086 321,430 164 % 152 % 2020 324,119 568,114 237,561 175 % 172 % 2021 412,411 701,265 387,655 170 % 170 % 2022 359,447 584,036 440,058 162 % 162 % 2023 410,593 692,794 574,106 169 % 169 % 2024 170,988 312,073 304,681 183 % 183 % Subtotal 4,349,100 8,605,658 3,258,417 Europe Insolvency 2014 10,876 18,979 — 175 % 129 % 2015 18,973 29,381 — 155 % 139 % 2016 39,338 57,841 617 147 % 130 % 2017 39,235 51,992 1,116 133 % 128 % 2018 44,908 52,649 2,887 117 % 123 % 2019 77,218 113,418 14,448 147 % 130 % 2020 105,440 157,743 29,880 150 % 129 % 2021 53,230 73,783 26,655 139 % 134 % 2022 44,604 61,840 39,949 139 % 137 % 2023 46,558 64,255 53,764 138 % 138 % 2024 30,994 45,761 42,648 147 % 147 % Subtotal 511,374 727,642 211,964 Total Europe 4,860,474 9,333,300 3,470,381 Total PRA Group $ 14,494,221 $ 30,401,925 $ 6,802,246 (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 June 30, 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 June 30, 2024 (year-to-date) As of June 30, 2024 Purchase Period CashCollections (2) PortfolioIncome (2) Change inExpectedRecoveries (2) Total PortfolioRevenue (2) Net FinanceReceivables (3) Americas and Australia Core 1996-2013 $ 18,065 $ 7,042 $ 11,887 $ 18,929 $ 16,523 2014 7,024 2,805 4,887 7,692 11,018 2015 8,806 3,405 7,303 10,708 16,993 2016 12,623 6,530 5,537 12,067 21,359 2017 20,755 9,295 6,625 15,920 38,305 2018 41,881 14,656 17,007 31,663 73,826 2019 43,863 17,389 7,800 25,189 80,381 2020 50,041 19,482 2,557 22,039 92,936 2021 56,615 27,707 (5,049) 22,658 152,803 2022 82,963 34,964 (3,612) 31,352 221,981 2023 149,967 87,582 13,175 100,757 531,229 2024 28,086 22,132 6,431 28,563 373,386 Subtotal 520,689 252,989 74,548 327,537 1,630,740 Americas Insolvency 1996-2013 518 65 454 519 — 2014 170 52 122 174 — 2015 112 19 74 93 20 2016 317 22 269 291 201 2017 1,548 104 1,493 1,597 1,060 2018 1,613 73 570 643 886 2019 10,306 663 (212) 451 7,445 2020 9,106 1,419 889 2,308 18,223 2021 8,214 1,670 501 2,171 22,789 2022 5,489 1,637 336 1,973 24,327 2023 11,945 5,781 (790) 4,991 76,235 2024 2,841 1,912 294 2,206 47,843 Subtotal 52,179 13,417 4,000 17,417 199,029 Total Americas and Australia 572,868 266,406 78,548 344,954 1,829,769 Europe Core 2012-2013 525 — 525 525 — 2014 50,594 35,965 13,941 49,906 97,962 2015 15,663 6,867 4,052 10,919 66,674 2016 13,878 6,576 2,459 9,035 88,195 2017 9,368 3,410 1,057 4,467 67,454 2018 19,334 6,884 3,837 10,721 118,792 2019 34,697 11,337 5,331 16,668 216,535 2020 25,522 9,654 2,912 12,566 146,420 2021 34,155 14,494 3,181 17,675 235,125 2022 39,130 15,455 755 16,210 276,388 2023 52,395 22,109 910 23,019 338,599 2024 7,411 2,770 1,803 4,573 167,839 Subtotal 302,672 135,521 40,763 176,284 1,819,983 Europe Insolvency 2014 86 — 86 86 — 2015 99 2 70 72 — 2016 468 64 166 230 184 2017 874 73 (5) 68 928 2018 1,919 155 (14) 141 2,599 2019 7,495 782 1,100 1,882 12,648 2020 13,446 1,559 1,011 2,570 27,211 2021 7,542 1,420 910 2,330 23,263 2022 7,167 1,984 915 2,899 32,264 2023 5,656 2,578 50 2,628 41,559 2024 3,108 802 1,394 2,196 29,778 Subtotal 47,860 9,419 5,683 15,102 170,434 Total Europe 350,532 144,940 46,446 191,386 1,990,417 Total PRA Group $ 923,400 $ 411,346 $ 124,994 $ 536,340 $ 3,820,186 (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 June 30, 2024 exchange rate. Cash Collections by Year, By Year of Purchase (1) as of June 30, 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 $ 18.1 $ 5,684.0 2014 404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 7.0 856.1 2015 443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 8.8 876.0 2016 455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 12.6 986.4 2017 532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 20.8 1105.9 2018 654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 41.9 1343.1 2019 581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 43.9 1114.5 2020 435.7 — — — — — — — 132.9 284.3 192.0 125.8 50.0 785.0 2021 435.8 — — — — — — — — 85.0 177.3 136.8 56.6 455.7 2022 406.1 — — — — — — — — — 67.7 195.4 83.0 346.1 2023 622.5 — — — — — — — — — — 108.5 150.0 258.5 2024 373.4 — — — — — — — — — — — 28.0 28.0 Subtotal 7,277.6 3,618.9 753.0 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.7 520.7 13,839.3 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 0.5 2,503.0 2014 148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 0.2 218.8 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 0.3 119.0 2017 275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 1.5 357.3 2018 97.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 1.6 135.1 2019 123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 10.3 160.7 2020 62.1 — — — — — — — 6.5 16.1 20.4 19.5 9.1 71.6 2021 55.2 — — — — — — — — 4.6 17.9 17.5 8.2 48.2 2022 33.4 — — — — — — — — — 3.2 9.2 5.5 17.9 2023 91.2 — — — — — — — — — — 9.0 11.9 20.9 2024 48.8 — — — — — — — — — — — 2.9 2.9 Subtotal 2,356.1 1,491.4 458.4 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.2 52.1 3,743.5 Total Americas and Australia 9,633.7 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 1,075.4 996.9 572.8 17,582.8 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 0.5 66.5 2014 773.8 — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.2 122.2 107.6 50.6 1,871.0 2015 411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 15.7 575.2 2016 333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 13.9 425.4 2017 252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 9.4 243.7 2018 341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 19.3 365.0 2019 518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 34.7 494.7 2020 324.1 — — — — — — — 32.3 91.7 69.0 56.1 25.5 274.6 2021 412.4 — — — — — — — — 48.5 89.9 73.0 34.2 245.6 2022 359.4 — — — — — — — — — 33.9 83.8 39.1 156.8 2023 410.6 — — — — — — — — — — 50.2 52.4 102.6 2024 171.1 — — — — — — — — — — — 7.4 7.4 Subtotal 4,349.1 27.7 167.4 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 302.7 4,828.5 Europe Insolvency 2014 10.9 — — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 0.1 17.1 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 0.5 60.9 2017 39.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 0.9 48.7 2018 44.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 1.9 49.9 2019 77.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 7.5 96.0 2020 105.4 — — — — — — — 6.0 34.6 34.1 29.7 13.4 117.8 2021 53.2 — — — — — — — — 5.5 14.4 14.7 7.5 42.1 2022 44.6 — — — — — — — — — 4.5 12.4 7.2 24.1 2023 46.7 — — — — — — — — — — 4.2 5.7 9.9 2024 31.0 — — — — — — — — — — — 3.1 3.1 Subtotal 511.4 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 47.9 496.3 Total Europe 4,860.5 27.7 167.4 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 350.6 5,324.8 Total PRA Group $ 14,494.2 $ 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 $ 1,660.4 $ 923.4 $ 22,907.6 (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); plus foreign exchange loss (or less foreign exchange gain); 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 June 30, 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) June 30, 2024 December 31, 2023 Net income/(loss) attributable to PRA Group, Inc. $ 4 $ (83) Adjustments: Income tax expense/(benefit) 12 (16) Interest expense, net 208 181 Other expense 1 2 Depreciation and amortization 12 13 Impairment of real estate 5 5 Net income attributable to noncontrolling interests 19 17 Recoveries applied to negative allowance less changes in expected recoveries 804 888 Adjusted EBITDA $ 1,065 $ 1,007 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): Average Balance Balance at Period End Second Quarter Year-to-Date June 30, 2024 June 30, 2023 2024 2023 2024 2023 Total stockholders' equity - PRA Group, Inc. $ 1,145,463 $ 1,165,525 $ 1,137,395 $ 1,161,934 $ 1,147,300 $ 1,183,843 Less: Goodwill 415,646 414,905 413,746 417,776 419,685 423,824 Less: Other intangible assets 1,597 1,836 1,632 1,835 1,668 1,839 Average tangible equity $ 722,017 $ 742,323 $ 725,947 $ 758,180 Net income/(loss) attributable to PRA Group, Inc. $ 21,516 $ (3,804) $ 24,991 $ (62,433) Return on average tangible equity (1) 11.9 % (2.0) % 6.9 % (16.5) % (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-second-quarter-2024-results-302214730.html SOURCE PRA Group, Inc.

View stock analysis, news, and events for Pra Group, Inc.