PRA Group Reports Fourth Quarter and Full Year 2024 Results
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., February 19, 2025 - 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 $1.1 billion.
| Three Months Ended Dec 31, | Year Ended Dec 31, | |||||||||||||||||||||||||
| ($ 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
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.
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
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.
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.
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