Transformational Year Culminates in Return to
Enhanced Profitability
Record Portfolio Purchases of $1.4 Billion and Cash Collections Growth of 13%
to $1.9 Billion
Company Updates 2025 Financial Targets,
Raising Portfolio Purchases Target to $1.2
Billion
NORFOLK,
Va., Feb. 19, 2025 /PRNewswire/ -- PRA Group,
Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring
and collecting nonperforming loans, today reported its financial
results for the fourth quarter ("Q4 2024") and full year of
2024.
Q4 2024 Highlights
- Net income attributable to PRA Group, Inc. of $18.5 million, or diluted earnings per share of
$0.47.
- Total portfolio purchases of $432.7
million.
- Total cash collections of $468.1
million.
- Record estimated remaining collections ("ERC")1 of
$7.5 billion.
- Cash efficiency ratio2 of 58.0%.
Full Year 2024 Highlights
- Net income attributable to PRA Group, Inc. of $70.6 million, or diluted earnings per share of
$1.79.
- Record total portfolio purchases of $1.4
billion.
- Total cash collections of $1.9
billion.
- Cash efficiency ratio2 of 58.8%.
- Adjusted EBITDA3 of $1.1
billion.
|
1.
|
Refers to the sum of
all future projected cash collections on the Company's
nonperforming loan portfolios.
|
|
2.
|
Calculated by dividing
cash receipts less operating expenses by cash receipts. Cash
receipts refers to cash collections on the Company's nonperforming
loan portfolios, fees and revenue recognized from the Company's
class action claims recovery services.
|
|
3.
|
A reconciliation of net
income, the most directly comparable financial measure calculated
and reported in accordance with GAAP, to Adjusted EBITDA can be
found at the end of this press release.
|
|
|
Three Months Ended
Dec 31,
|
|
Year Ended Dec
31,
|
|
($ in thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
|
$
18,456
|
|
$
(8,782)
|
|
$
70,601
|
|
$
(83,477)
|
|
Diluted earnings per
share
|
|
$
0.47
|
|
$
(0.22)
|
|
$
1.79
|
|
$
(2.13)
|
|
|
|
|
|
|
|
|
|
"2024 was a transformational year reflecting decisive action and
rigorous execution, which drove significantly improved results. We
expanded our senior leadership team, delivered on our
cash-generating and operational initiatives in the U.S., further
differentiated our European platform, and strengthened our capital
structure," said Vikram Atal, president and chief executive
officer. "We achieved record portfolio purchases of $1.4 billion, up 22% year-over-year, as we
continued to invest with discipline and capitalize on the strong
portfolio supply in the U.S., with pricing remaining attractive
globally. Cash collections of $1.9 billion represented 13%
year-over-year growth, as we not only benefited from recent
purchases but, just as importantly, extracted additional value from
our existing portfolios. With strong topline growth and expense
management, we achieved net income attributable to PRA Group, Inc.
of $70.6 million. The progress
we have made over the last two years positions us to further
optimize the platform, sustain profitable growth and drive
shareholder value. As a result, we remain optimistic about the
future and are updating our 2025 targets, including raising our
portfolio purchases target to $1.2
billion."
Cash Collections and Revenues
The following table presents cash collections by quarter and by
source on an as reported and constant currency-adjusted basis:
|
|
|
|
|
|
|
|
|
|
|
|
Cash Collection
Source
|
|
2024
|
|
2023
|
|
($ in
thousands)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Americas and Australia
Core
|
|
$
257,711
|
|
$
266,977
|
|
$
263,828
|
|
$
256,861
|
|
$
220,127
|
|
Americas
Insolvency
|
|
24,067
|
|
26,065
|
|
26,971
|
|
25,209
|
|
24,293
|
|
Europe Core
|
|
162,564
|
|
158,242
|
|
156,739
|
|
145,933
|
|
144,361
|
|
Europe
Insolvency
|
|
23,724
|
|
25,826
|
|
26,344
|
|
21,515
|
|
21,502
|
|
Total Cash
Collections
|
|
$
468,066
|
|
$
477,110
|
|
$
473,882
|
|
$
449,518
|
|
$
410,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Collection
Source -
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency
Adjusted
|
|
2024
|
|
|
|
|
|
|
|
2023
|
|
($ in
thousands)
|
|
Q4
|
|
|
|
|
|
|
|
Q4
|
|
Americas and Australia
Core
|
|
$
257,711
|
|
|
|
|
|
|
|
$
212,783
|
|
Americas
Insolvency
|
|
24,067
|
|
|
|
|
|
|
|
24,209
|
|
Europe Core
|
|
162,564
|
|
|
|
|
|
|
|
145,808
|
|
Europe
Insolvency
|
|
23,724
|
|
|
|
|
|
|
|
22,145
|
|
Total Cash
Collections
|
|
$
468,066
|
|
|
|
|
|
|
|
$
404,945
|
|
|
|
|
|
|
|
|
|
|
|
- Total cash collections in Q4 2024 increased 14.1% to
$468.1 million compared to
$410.3 million in the fourth quarter
of 2023 ("Q4 2023"). For the full year, total cash collections
increased 12.5% to $1.9 billion,
compared to $1.7 billion in
2023.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec 31,
|
|
Year Ended Dec
31,
|
|
($ in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Portfolio
income
|
|
$
229,720
|
|
$
194,636
|
|
$
857,188
|
|
$
757,128
|
|
Recoveries collected in
excess of forecast
|
|
$
31,879
|
|
$
17,856
|
|
$
156,135
|
|
$
65,132
|
|
Changes in expected
future recoveries
|
|
23,381
|
|
4,898
|
|
84,733
|
|
(35,998)
|
|
Changes in expected
recoveries
|
|
$
55,260
|
|
$
22,754
|
|
$
240,868
|
|
$
29,134
|
|
Total portfolio
revenue
|
|
$
284,980
|
|
$
217,390
|
|
$ 1,098,056
|
|
$
786,262
|
|
|
|
|
|
|
|
|
|
- Total portfolio revenue in Q4 2024 increased 31.1% to
$285.0 million, compared to
$217.4 million in Q4 2023. For the
full year, total portfolio revenue increased 39.7% to $1.1 billion, compared to $786.3 million in 2023.
Expenses
- Operating expenses in Q4 2024 increased 13.2% to $199.1 million, compared to $175.9 million in Q4 2023.
- Legal collection costs increased $11.1 million, primarily due to increased
investments in our U.S. legal collections channel to drive future
cash collections growth.
- Legal collection fees increased $6.4 million, primarily due to higher
external legal collections in our U.S. Core portfolio.
- For the full year, operating expenses increased by 10.4% to
$774.8 million, compared to
$702.1 million in 2023.
- For the full year, interest expense, net increased by 26.2% to
$229.3 million, compared to
$181.7 million in 2023, primarily
reflecting higher debt balances to support portfolio
investments.
- The effective tax rate for the full year was 19.2%.
Portfolio Purchases
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Purchase
Source
|
|
2024
|
|
2023
|
|
($ in
thousands)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Americas and Australia
Core
|
|
$
194,063
|
|
$
263,613
|
|
$
198,761
|
|
$
174,660
|
|
$
143,052
|
|
Americas
Insolvency
|
|
9,460
|
|
10,162
|
|
26,627
|
|
22,156
|
|
18,608
|
|
Europe Core
|
|
220,875
|
|
71,507
|
|
127,991
|
|
43,997
|
|
110,780
|
|
Europe
Insolvency
|
|
8,272
|
|
4,696
|
|
25,990
|
|
5,004
|
|
12,476
|
|
Total Portfolio
Purchases
|
|
$
432,670
|
|
$
349,978
|
|
$
379,369
|
|
$
245,817
|
|
$
284,916
|
|
|
|
|
|
|
|
|
|
|
|
- The Company purchased $432.7
million in portfolios of nonperforming loans in Q4 2024 and
$1.4 billion in 2024, the latter of
which represented a Company record.
- At the end of Q4 2024, the Company had in place estimated
forward flow commitments1 of $498.9 million over the next 12 months, comprised
of $403.1 million in the Americas and
Australia and $95.8 million in Europe.
Credit Availability
- Total availability under the Company's credit facilities as of
December 31, 2024 was $1.0 billion, comprised of $564.3 million based on current ERC and subject
to debt covenants, and $462.0 million
of additional availability subject to borrowing base and debt
covenants, including advance rates.
Financial and Operational Targets for 2025
The Company has updated its financial and operational targets
for the full year 2025:
- $1.2 billion of portfolio
investments
- High single-digit cash collections growth
- 60%+ cash efficiency ratio
- ~12% return on average tangible equity2
|
1.
|
Contractual agreements
with sellers of nonperforming loans that allow for the purchase of
nonperforming loan 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 forward
flow sales, and are dependent on actual delivery by the sellers
and, in some cases, the impact of foreign exchange rate
fluctuations. 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.
|
These targets exclude the impact of the Company exercising its
right to sell its equity interest in RCB Investimentos S.A., the
servicing company for the Company's nonperforming loans in
Brazil. This transaction does not
impact the Company's ownership of any portfolios in Brazil, and the Company does not expect this
to impact its existing operations or future portfolio investment
opportunities in this market.
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
February 19, 2026, or call
646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use
access code 21638# until February 26,
2025.
About PRA Group
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.
|
PRA Group,
Inc.
|
|
Consolidated Income
Statements
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Portfolio
income
|
$
229,720
|
|
$
194,636
|
|
$
857,188
|
|
$
757,128
|
|
Changes in expected
recoveries
|
55,260
|
|
22,754
|
|
240,868
|
|
29,134
|
|
Total
portfolio revenue
|
284,980
|
|
217,390
|
|
1,098,056
|
|
786,262
|
|
Other
revenue
|
8,252
|
|
4,028
|
|
16,468
|
|
16,292
|
|
Total
revenues
|
293,232
|
|
221,418
|
|
1,114,524
|
|
802,554
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
74,959
|
|
71,070
|
|
298,903
|
|
288,778
|
|
Legal collection
costs
|
34,036
|
|
22,903
|
|
124,782
|
|
89,131
|
|
Legal collection
fees
|
16,270
|
|
9,844
|
|
56,623
|
|
38,072
|
|
Agency fees
|
21,583
|
|
20,208
|
|
83,334
|
|
74,699
|
|
Professional and
outside services
|
19,592
|
|
20,555
|
|
83,218
|
|
82,619
|
|
Communication
|
9,230
|
|
9,905
|
|
43,433
|
|
40,430
|
|
Rent and
occupancy
|
4,474
|
|
4,126
|
|
16,929
|
|
17,319
|
|
Depreciation,
amortization and impairment
|
2,966
|
|
3,234
|
|
10,792
|
|
18,615
|
|
Other operating
expenses
|
15,986
|
|
14,044
|
|
56,778
|
|
52,399
|
|
Total operating
expenses
|
199,096
|
|
175,889
|
|
774,792
|
|
702,062
|
|
Income from
operations
|
94,136
|
|
45,529
|
|
339,732
|
|
100,492
|
|
Other income and
(expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(60,574)
|
|
(50,946)
|
|
(229,267)
|
|
(181,724)
|
|
Foreign exchange
gain/(loss), net
|
(147)
|
|
(695)
|
|
(9)
|
|
289
|
|
Other
|
(15)
|
|
(564)
|
|
(851)
|
|
(1,944)
|
|
Income/(loss) before
income taxes
|
33,400
|
|
(6,676)
|
|
109,605
|
|
(82,887)
|
|
Income tax
expense/(benefit)
|
10,616
|
|
(816)
|
|
21,032
|
|
(16,133)
|
|
Net
Income/(loss)
|
22,784
|
|
(5,860)
|
|
88,573
|
|
(66,754)
|
|
Adjustment for net
income
attributable to noncontrolling
interests
|
4,328
|
|
2,922
|
|
17,972
|
|
16,723
|
|
Net income/(loss)
attributable
to PRA Group, Inc.
|
$
18,456
|
|
$
(8,782)
|
|
$
70,601
|
|
$
(83,477)
|
|
Net income/(loss) per
common share attributable
to PRA Group, Inc.:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.47
|
|
$
(0.22)
|
|
$
1.79
|
|
$
(2.13)
|
|
Diluted
|
$
0.47
|
|
$
(0.22)
|
|
$
1.79
|
|
$
(2.13)
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
39,468
|
|
39,245
|
|
39,382
|
|
39,177
|
|
Diluted
|
39,681
|
|
39,245
|
|
39,542
|
|
39,177
|
|
PRA Group,
Inc.
|
|
Consolidated Balance
Sheets
|
|
(Amounts in
thousands)
|
|
|
(unaudited)
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
105,938
|
|
$
112,528
|
|
Investments
|
66,304
|
|
72,404
|
|
Finance receivables,
net
|
4,140,742
|
|
3,656,598
|
|
Income taxes
receivable
|
19,559
|
|
27,713
|
|
Deferred tax assets,
net
|
75,134
|
|
74,694
|
|
Right-of-use
assets
|
32,173
|
|
45,877
|
|
Property and
equipment, net
|
29,498
|
|
36,450
|
|
Goodwill
|
396,357
|
|
431,564
|
|
Other
assets
|
65,450
|
|
67,526
|
|
Total
assets
|
$
4,931,155
|
|
$
4,525,354
|
|
Liabilities and
Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accrued expenses and
accounts payable
|
$
141,211
|
|
$
138,218
|
|
Income taxes
payable
|
28,584
|
|
17,912
|
|
Deferred tax
liabilities, net
|
16,813
|
|
17,051
|
|
Lease
liabilities
|
36,437
|
|
50,300
|
|
Interest-bearing
deposits
|
163,406
|
|
115,589
|
|
Borrowings
|
3,326,621
|
|
2,914,270
|
|
Other
liabilities
|
24,476
|
|
32,638
|
|
Total
liabilities
|
3,737,548
|
|
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, 39,510 shares
issued and outstanding as of December 31, 2024; 100,000 shares
authorized,
39,247 shares issued and outstanding as of December 31,
2023
|
395
|
|
392
|
|
Additional paid-in
capital
|
17,882
|
|
7,071
|
|
Retained
earnings
|
1,560,149
|
|
1,489,548
|
|
Accumulated other
comprehensive loss
|
(443,394)
|
|
(329,899)
|
|
Total stockholders'
equity - PRA Group, Inc.
|
1,135,032
|
|
1,167,112
|
|
Noncontrolling
interests
|
58,575
|
|
72,264
|
|
Total
equity
|
1,193,607
|
|
1,239,376
|
|
Total liabilities and
equity
|
$
4,931,155
|
|
$
4,525,354
|
|
Select Expenses
(Income)
Amounts in
thousands, pre-tax
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
December 31,
2024
|
September
30,
2024
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
September
30,
2023
|
June 30,
2023
|
March 31,
2023
|
|
Noncash interest
expense - amortization of
debt discount/premium and
issuance costs
|
2,241
|
3,795
|
2,331
|
2,200
|
2,177
|
2,220
|
2,384
|
2,441
|
|
Change in fair value
of
derivatives
|
(4,686)
|
(5,706)
|
(5,628)
|
(5,930)
|
(6,734)
|
(6,545)
|
(6,960)
|
(5,470)
|
|
Amortization of
intangibles
|
58
|
60
|
58
|
60
|
69
|
69
|
68
|
66
|
|
Impairment of real
estate
|
—
|
—
|
—
|
—
|
202
|
5,037
|
—
|
—
|
|
Stock-based
compensation expense
|
3,337
|
3,251
|
3,555
|
3,327
|
2,952
|
1,629
|
2,715
|
3,799
|
|
Purchase Price
Multiples
as of December 31,
2024
Amounts in
thousands
|
|
Purchase
Period
|
Purchase Price
(1)(2)
|
Total Estimated
Collections (3)
|
Estimated
Remaining
Collections (4)
|
Current
Purchase
Price Multiple
|
Original
Purchase
Price Multiple (5)
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
1996-2014
|
$
2,336,839
|
$
6,666,570
|
$
86,032
|
285 %
|
228 %
|
|
2015
|
443,114
|
927,658
|
46,128
|
209 %
|
205 %
|
|
2016
|
455,767
|
1,098,337
|
57,944
|
241 %
|
201 %
|
|
2017
|
532,851
|
1,224,240
|
88,789
|
230 %
|
193 %
|
|
2018
|
653,975
|
1,541,030
|
132,482
|
236 %
|
202 %
|
|
2019
|
581,476
|
1,318,780
|
123,568
|
227 %
|
206 %
|
|
2020
|
435,668
|
961,295
|
137,424
|
221 %
|
213 %
|
|
2021
|
435,846
|
736,453
|
237,332
|
169 %
|
191 %
|
|
2022
|
406,082
|
711,153
|
299,192
|
175 %
|
179 %
|
|
2023
|
622,583
|
1,222,214
|
800,016
|
196 %
|
197 %
|
|
2024
|
823,662
|
1,738,041
|
1,593,881
|
211 %
|
211 %
|
|
Subtotal
|
7,727,863
|
18,145,771
|
3,602,788
|
|
|
|
Americas
Insolvency
|
|
|
|
|
|
1996-2014
|
1,414,476
|
2,722,528
|
18
|
192 %
|
155 %
|
|
2015
|
63,170
|
88,142
|
14
|
140 %
|
125 %
|
|
2016
|
91,442
|
118,446
|
152
|
130 %
|
123 %
|
|
2017
|
275,257
|
359,007
|
773
|
130 %
|
125 %
|
|
2018
|
97,879
|
136,633
|
539
|
140 %
|
127 %
|
|
2019
|
123,077
|
167,054
|
1,987
|
136 %
|
128 %
|
|
2020
|
62,130
|
91,244
|
11,795
|
147 %
|
136 %
|
|
2021
|
55,187
|
74,384
|
19,064
|
135 %
|
136 %
|
|
2022
|
33,442
|
47,469
|
23,982
|
142 %
|
139 %
|
|
2023
|
91,282
|
119,560
|
83,007
|
131 %
|
135 %
|
|
2024
|
68,391
|
101,716
|
89,633
|
149 %
|
149 %
|
|
Subtotal
|
2,375,733
|
4,026,183
|
230,964
|
|
|
|
Total Americas and
Australia
|
10,103,596
|
22,171,954
|
3,833,752
|
|
|
|
Europe
Core
|
|
|
|
|
|
|
2012-2014
|
814,553
|
2,669,874
|
379,300
|
328 %
|
205 %
|
|
2015
|
411,340
|
758,443
|
120,732
|
184 %
|
160 %
|
|
2016
|
333,090
|
583,379
|
140,510
|
175 %
|
167 %
|
|
2017
|
252,174
|
366,781
|
89,512
|
145 %
|
144 %
|
|
2018
|
341,775
|
561,190
|
168,307
|
164 %
|
148 %
|
|
2019
|
518,610
|
856,928
|
290,123
|
165 %
|
152 %
|
|
2020
|
324,119
|
581,309
|
219,274
|
179 %
|
172 %
|
|
2021
|
412,411
|
713,243
|
352,787
|
173 %
|
170 %
|
|
2022
|
359,447
|
587,410
|
398,171
|
163 %
|
162 %
|
|
2023
|
410,593
|
693,410
|
510,556
|
169 %
|
169 %
|
|
2024
|
451,786
|
815,403
|
770,745
|
180 %
|
180 %
|
|
Subtotal
|
4,629,898
|
9,187,370
|
3,440,017
|
|
|
|
Europe
Insolvency
|
|
|
|
|
|
2014
|
10,876
|
19,087
|
—
|
175 %
|
129 %
|
|
2015
|
18,973
|
29,488
|
—
|
155 %
|
139 %
|
|
2016
|
39,338
|
58,074
|
517
|
148 %
|
130 %
|
|
2017
|
39,235
|
52,129
|
571
|
133 %
|
128 %
|
|
2018
|
44,908
|
52,994
|
1,685
|
118 %
|
123 %
|
|
2019
|
77,218
|
114,028
|
9,631
|
148 %
|
130 %
|
|
2020
|
105,440
|
159,773
|
19,710
|
152 %
|
129 %
|
|
2021
|
53,230
|
75,089
|
19,991
|
141 %
|
134 %
|
|
2022
|
44,604
|
63,240
|
33,069
|
142 %
|
137 %
|
|
2023
|
46,558
|
65,196
|
47,203
|
140 %
|
138 %
|
|
2024
|
43,459
|
63,717
|
54,480
|
147 %
|
147 %
|
|
Subtotal
|
523,839
|
752,815
|
186,857
|
|
|
|
Total Europe
|
5,153,737
|
9,940,185
|
3,626,874
|
|
|
|
Total PRA
Group
|
$
15,257,333
|
$
32,112,139
|
$
7,460,626
|
|
|
|
(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 December 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
|
|
Year Ended December
31, 2024
|
|
As of December 31,
2024
|
|
Purchase
Period
|
Cash
Collections
(2)
|
Portfolio
Income (2)
|
Changes in
Expected
Recoveries (2)
|
Total Portfolio
Revenue (2)
|
|
Net Finance
Receivables (3)
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
|
1996-2014
|
$
49,430
|
$
20,182
|
$
32,247
|
$
52,429
|
|
$
28,916
|
|
2015
|
17,254
|
7,416
|
15,087
|
22,503
|
|
20,325
|
|
2016
|
23,996
|
12,863
|
10,866
|
23,729
|
|
21,595
|
|
2017
|
39,179
|
17,745
|
15,041
|
32,786
|
|
36,691
|
|
2018
|
75,887
|
27,489
|
34,009
|
61,498
|
|
69,363
|
|
2019
|
77,702
|
31,575
|
17,210
|
48,785
|
|
69,098
|
|
2020
|
87,038
|
34,766
|
9,314
|
44,080
|
|
77,729
|
|
2021
|
98,398
|
49,853
|
(11,413)
|
38,440
|
|
124,903
|
|
2022
|
144,656
|
61,438
|
(4,581)
|
56,857
|
|
181,937
|
|
2023
|
285,853
|
162,745
|
(1,541)
|
161,204
|
|
450,432
|
|
2024
|
145,984
|
116,143
|
13,780
|
129,923
|
|
807,358
|
|
Subtotal
|
1,045,377
|
542,215
|
130,019
|
672,234
|
|
1,888,347
|
|
Americas
Insolvency
|
|
|
|
|
|
|
|
1996-2014
|
1,269
|
170
|
1,104
|
1,274
|
|
—
|
|
2015
|
192
|
28
|
134
|
162
|
|
9
|
|
2016
|
560
|
39
|
429
|
468
|
|
133
|
|
2017
|
2,516
|
192
|
2,016
|
2,208
|
|
699
|
|
2018
|
2,503
|
117
|
1,043
|
1,160
|
|
511
|
|
2019
|
14,648
|
909
|
(1,651)
|
(742)
|
|
1,903
|
|
2020
|
16,984
|
2,393
|
565
|
2,958
|
|
10,991
|
|
2021
|
15,316
|
2,942
|
612
|
3,554
|
|
17,067
|
|
2022
|
11,137
|
3,042
|
661
|
3,703
|
|
20,404
|
|
2023
|
25,104
|
10,831
|
(1,272)
|
9,559
|
|
66,685
|
|
2024
|
12,083
|
7,241
|
445
|
7,686
|
|
63,027
|
|
Subtotal
|
102,312
|
27,904
|
4,086
|
31,990
|
|
181,429
|
|
Total Americas and
Australia
|
1,147,689
|
570,119
|
134,105
|
704,224
|
|
2,069,776
|
|
Europe
Core
|
|
|
|
|
|
|
|
2012-2014
|
101,686
|
61,342
|
30,572
|
91,914
|
|
86,106
|
|
2015
|
30,431
|
13,316
|
6,116
|
19,432
|
|
59,318
|
|
2016
|
27,447
|
12,746
|
4,522
|
17,268
|
|
79,412
|
|
2017
|
17,868
|
6,600
|
(133)
|
6,467
|
|
59,637
|
|
2018
|
37,136
|
13,543
|
5,850
|
19,393
|
|
108,195
|
|
2019
|
68,188
|
21,935
|
11,709
|
33,644
|
|
195,751
|
|
2020
|
50,148
|
18,667
|
10,654
|
29,321
|
|
134,983
|
|
2021
|
66,645
|
28,048
|
8,116
|
36,164
|
|
213,432
|
|
2022
|
74,718
|
29,894
|
4,613
|
34,507
|
|
251,662
|
|
2023
|
103,129
|
42,584
|
4,380
|
46,964
|
|
303,553
|
|
2024
|
46,082
|
19,035
|
6,759
|
25,794
|
|
429,327
|
|
Subtotal
|
623,478
|
267,710
|
93,158
|
360,868
|
|
1,921,376
|
|
Europe
Insolvency
|
|
|
|
|
|
|
|
2014
|
181
|
—
|
181
|
181
|
|
—
|
|
2015
|
193
|
2
|
164
|
166
|
|
—
|
|
2016
|
794
|
109
|
401
|
510
|
|
134
|
|
2017
|
1,542
|
115
|
121
|
236
|
|
428
|
|
2018
|
3,462
|
246
|
331
|
577
|
|
1,491
|
|
2019
|
12,916
|
1,326
|
1,717
|
3,043
|
|
8,378
|
|
2020
|
25,549
|
2,674
|
3,403
|
6,077
|
|
18,148
|
|
2021
|
15,376
|
2,580
|
2,190
|
4,770
|
|
17,754
|
|
2022
|
15,198
|
3,753
|
2,803
|
6,556
|
|
27,385
|
|
2023
|
12,744
|
5,001
|
1,068
|
6,069
|
|
37,503
|
|
2024
|
9,454
|
3,553
|
1,226
|
4,779
|
|
38,369
|
|
Subtotal
|
97,409
|
19,359
|
13,605
|
32,964
|
|
149,590
|
|
Total Europe
|
720,887
|
287,069
|
106,763
|
393,832
|
|
2,070,966
|
|
Total PRA
Group
|
$
1,868,576
|
$
857,188
|
$
240,868
|
$
1,098,056
|
|
$
4,140,742
|
|
(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
year.
|
|
(3) Non-U.S. amounts are
presented at the December 31, 2024 exchange rate.
|
|
Cash Collections by
Year, By Year of Purchase (1)
as of December 31,
2024
Amounts in
millions
|
|
|
Cash
Collections
|
|
|
Purchase
Period
|
Purchase Price
(2)(3)
|
1996-2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Total
|
|
Americas and
Australia Core
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2014
|
$
2,336.8
|
$
4,371.9
|
$
727.8
|
$
470.0
|
$
311.2
|
$
222.5
|
$
155.0
|
$
96.6
|
$
68.8
|
$
51.0
|
$
40.2
|
$
49.4
|
$ 6,564.4
|
|
2015
|
443.1
|
—
|
117.0
|
228.4
|
185.9
|
126.6
|
83.6
|
57.2
|
34.9
|
19.5
|
14.1
|
17.3
|
884.5
|
|
2016
|
455.8
|
—
|
—
|
138.7
|
256.5
|
194.6
|
140.6
|
105.9
|
74.2
|
38.4
|
24.9
|
24.0
|
997.8
|
|
2017
|
532.9
|
—
|
—
|
—
|
107.3
|
278.7
|
256.5
|
192.5
|
130.0
|
76.3
|
43.8
|
39.2
|
1124.3
|
|
2018
|
654.0
|
—
|
—
|
—
|
—
|
122.7
|
361.9
|
337.7
|
239.9
|
146.1
|
92.9
|
75.9
|
1377.1
|
|
2019
|
581.5
|
—
|
—
|
—
|
—
|
—
|
143.8
|
349.0
|
289.8
|
177.7
|
110.3
|
77.7
|
1148.3
|
|
2020
|
435.7
|
—
|
—
|
—
|
—
|
—
|
—
|
132.9
|
284.3
|
192.0
|
125.8
|
87.0
|
822.0
|
|
2021
|
435.8
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
85.0
|
177.3
|
136.8
|
98.4
|
497.5
|
|
2022
|
406.1
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
67.7
|
195.4
|
144.7
|
407.8
|
|
2023
|
622.5
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
108.5
|
285.9
|
394.4
|
|
2024
|
823.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
145.9
|
145.9
|
|
Subtotal
|
7,727.9
|
4,371.9
|
844.8
|
837.1
|
860.9
|
945.1
|
1,141.4
|
1,271.8
|
1,206.9
|
946.0
|
892.7
|
1,045.4
|
14,364.0
|
|
Americas
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
1996-2014
|
1,414.5
|
1,949.8
|
340.8
|
213.0
|
122.9
|
59.1
|
22.6
|
5.8
|
3.3
|
2.3
|
1.5
|
1.3
|
2,722.4
|
|
2015
|
63.2
|
—
|
3.4
|
17.9
|
20.1
|
19.8
|
16.7
|
7.9
|
1.3
|
0.6
|
0.3
|
0.2
|
88.2
|
|
2016
|
91.4
|
—
|
—
|
18.9
|
30.4
|
25.0
|
19.9
|
14.4
|
7.4
|
1.8
|
0.9
|
0.6
|
119.3
|
|
2017
|
275.3
|
—
|
—
|
—
|
49.1
|
97.3
|
80.9
|
58.8
|
44.0
|
20.8
|
4.9
|
2.5
|
358.3
|
|
2018
|
97.9
|
—
|
—
|
—
|
—
|
6.7
|
27.4
|
30.5
|
31.6
|
24.6
|
12.7
|
2.5
|
136.0
|
|
2019
|
123.1
|
—
|
—
|
—
|
—
|
—
|
13.4
|
31.4
|
39.1
|
37.8
|
28.7
|
14.6
|
165.0
|
|
2020
|
62.1
|
—
|
—
|
—
|
—
|
—
|
—
|
6.5
|
16.1
|
20.4
|
19.5
|
17.0
|
79.5
|
|
2021
|
55.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.6
|
17.9
|
17.5
|
15.3
|
55.3
|
|
2022
|
33.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
3.2
|
9.2
|
11.1
|
23.5
|
|
2023
|
91.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
9.0
|
25.1
|
34.1
|
|
2024
|
68.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
12.1
|
12.1
|
|
Subtotal
|
2,375.7
|
1,949.8
|
344.2
|
249.8
|
222.5
|
207.9
|
180.9
|
155.3
|
147.4
|
129.4
|
104.2
|
102.3
|
3,793.7
|
|
Total Americas and
Australia
|
10,103.6
|
6,321.7
|
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
|
1,147.7
|
18,157.7
|
|
Europe
Core
|
|
|
|
|
|
|
|
|
|
|
|
|
2012-2014
|
814.5
|
195.1
|
297.5
|
249.9
|
224.1
|
209.6
|
175.3
|
151.7
|
151.0
|
123.6
|
108.6
|
101.7
|
1,988.1
|
|
2015
|
411.3
|
—
|
45.8
|
100.3
|
86.2
|
80.9
|
66.1
|
54.3
|
51.4
|
40.7
|
33.8
|
30.4
|
589.9
|
|
2016
|
333.1
|
—
|
—
|
40.4
|
78.9
|
72.6
|
58.0
|
48.3
|
46.7
|
36.9
|
29.7
|
27.4
|
438.9
|
|
2017
|
252.2
|
—
|
—
|
—
|
17.9
|
56.0
|
44.1
|
36.1
|
34.8
|
25.2
|
20.2
|
17.9
|
252.2
|
|
2018
|
341.8
|
—
|
—
|
—
|
—
|
24.3
|
88.7
|
71.3
|
69.1
|
50.7
|
41.6
|
37.1
|
382.8
|
|
2019
|
518.6
|
—
|
—
|
—
|
—
|
—
|
48.0
|
125.7
|
121.4
|
89.8
|
75.1
|
68.2
|
528.2
|
|
2020
|
324.1
|
—
|
—
|
—
|
—
|
—
|
—
|
32.3
|
91.7
|
69.0
|
56.1
|
50.1
|
299.2
|
|
2021
|
412.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
48.5
|
89.9
|
73.0
|
66.6
|
278.0
|
|
2022
|
359.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
33.9
|
83.8
|
74.7
|
192.4
|
|
2023
|
410.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
50.2
|
103.1
|
153.3
|
|
2024
|
451.9
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
46.3
|
46.3
|
|
Subtotal
|
4,629.9
|
195.1
|
343.3
|
390.6
|
407.1
|
443.4
|
480.2
|
519.7
|
614.6
|
559.7
|
572.1
|
623.5
|
5,149.3
|
|
Europe
Insolvency
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
10.9
|
—
|
4.3
|
3.9
|
3.2
|
2.6
|
1.5
|
0.8
|
0.3
|
0.2
|
0.2
|
0.2
|
17.2
|
|
2015
|
19.0
|
—
|
3.0
|
4.4
|
5.0
|
4.8
|
3.9
|
2.9
|
1.6
|
0.6
|
0.4
|
0.2
|
26.8
|
|
2016
|
39.3
|
—
|
—
|
6.2
|
12.7
|
12.9
|
10.7
|
7.9
|
6.0
|
2.7
|
1.3
|
0.8
|
61.2
|
|
2017
|
39.2
|
—
|
—
|
—
|
1.2
|
7.9
|
9.2
|
9.8
|
9.4
|
6.5
|
3.8
|
1.5
|
49.3
|
|
2018
|
44.9
|
—
|
—
|
—
|
—
|
0.6
|
8.4
|
10.3
|
11.7
|
9.8
|
7.2
|
3.5
|
51.5
|
|
2019
|
77.2
|
—
|
—
|
—
|
—
|
—
|
5.0
|
21.1
|
23.9
|
21.0
|
17.5
|
12.9
|
101.4
|
|
2020
|
105.4
|
—
|
—
|
—
|
—
|
—
|
—
|
6.0
|
34.6
|
34.1
|
29.7
|
25.5
|
129.9
|
|
2021
|
53.2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
5.5
|
14.4
|
14.7
|
15.4
|
50.0
|
|
2022
|
44.6
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.5
|
12.4
|
15.2
|
32.1
|
|
2023
|
46.7
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4.2
|
12.7
|
16.9
|
|
2024
|
43.4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
9.5
|
9.5
|
|
Subtotal
|
523.8
|
—
|
7.3
|
14.5
|
22.1
|
28.8
|
38.7
|
58.8
|
93.0
|
93.8
|
91.4
|
97.4
|
545.8
|
|
Total Europe
|
5,153.7
|
195.1
|
350.6
|
405.1
|
429.2
|
472.2
|
518.9
|
578.5
|
707.6
|
653.5
|
663.5
|
720.9
|
5,695.1
|
|
Total PRA
Group
|
$ 15,257.3
|
$
6,516.8
|
$
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
|
$
1,868.6
|
$
23,852.8
|
|
(1)
|
Non-U.S. amounts are
presented using the average exchange rates during the respective
year.
|
|
(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 (or loss)
attributable to PRA Group, Inc. plus income tax expense (or less
income tax benefit); plus interest expense, net; plus other
expense; plus depreciation and amortization; plus impairment of
real estate; plus net income attributable to noncontrolling
interests; and plus recoveries collected and applied to finance
receivables, net 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 its operational and financial
performance. Management believes Adjusted EBITDA helps provide
enhanced period-to-period comparability of the Company's
operational 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 years ended December 31, 2024 and 2023. The calculation of
Adjusted EBITDA below may not be comparable to the calculation of
similarly titled measures reported by other companies.
|
Adjusted
EBITDA for PRA Group ($ in millions)
|
2024
|
2023
|
|
Net income/(loss)
attributable to PRA Group, Inc.
|
$
71
|
$
(83)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Income tax
expense/(benefit)
|
21
|
(16)
|
|
Interest expense,
net
|
229
|
181
|
|
Other
expense
|
1
|
2
|
|
Depreciation and
amortization
|
11
|
13
|
|
Impairment of real
estate
|
—
|
5
|
|
Net income attributable
to noncontrolling interests
|
18
|
17
|
|
Recoveries collected
and applied to Finance receivables, net less Changes
in expected recoveries
|
787
|
888
|
|
Adjusted
EBITDA
|
$
1,138
|
$
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 is defined as average Total stockholders' equity -
PRA Group, Inc. less average goodwill and average other intangible
assets. ROATE is calculated by dividing Net income/(loss)
attributable to PRA Group, Inc. by average tangible equity.
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 average tangible equity for the
years indicated (amounts in thousands, except for ratio data):
|
|
Balance as of Year
End
|
|
Average
Balance
|
|
|
2024
|
|
2023
|
|
2022
|
|
2024
|
|
2023
|
|
2022
|
|
Total stockholders'
equity - PRA
Group, Inc.
|
|
$
1,135,032
|
|
$
1,167,112
|
|
$
1,227,661
|
|
$
1,159,163
|
|
$
1,166,846
|
|
$
1,231,546
|
|
Less:
Goodwill
|
|
396,357
|
|
431,564
|
|
435,921
|
|
415,685
|
|
423,110
|
|
448,214
|
|
Less: Other intangible
assets
|
|
1,453
|
|
1,742
|
|
1,847
|
|
1,616
|
|
1,786
|
|
2,017
|
|
Average tangible
equity
|
|
|
|
|
|
|
|
$
741,862
|
|
$
741,950
|
|
$
781,315
|
|
Net income/(loss)
attributable to
PRA Group, Inc.
|
|
|
|
|
|
|
|
$
70,601
|
|
$
(83,477)
|
|
$
117,147
|
|
Return on average
tangible
equity
|
|
|
|
|
|
|
|
9.5 %
|
|
(11.3) %
|
|
15.0 %
|
Investor Contact:
Najim
Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com
News Media Contact:
Elizabeth
Kersey
Senior Vice President, Communications and Public Policy
(757) 641-0558
Elizabeth.Kersey@PRAGroup.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-fourth-quarter-and-full-year-2024-results-302380690.html
SOURCE PRA Group, Inc.
