PR Newswire
NORFOLK, Va., Nov. 8, 2021
NORFOLK, Va., Nov. 8, 2021 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2021. The Company reported net income attributable to PRA Group, Inc. of $34.5 million in the third quarter, compared with $42.5 million in the prior year period. Diluted earnings per share were $0.76 versus $0.92 in the third quarter of 2020. For the nine months ended September 30, 2021, net income attributable to PRA Group, Inc. was $148.9 million, or $3.24 per diluted share, compared with $119.5 million, or $2.60 per diluted share, during the same period in 2020.
Third Quarter Highlights
"We deployed almost $400 million in the third quarter, making it one of our largest portfolio purchasing quarters. In Europe, we invested $220 million, where we have seen a very healthy pipeline of deals coming to market and we also secured a large multi-year forward flow agreement. We invested $172 million in the Americas and Australia, highlighted by sizeable portfolio spot purchases in South America, which further demonstrates the benefits of our geographic diversification," said Kevin Stevenson, president and chief executive officer. "We also made excellent progress in returning capital to shareholders through the $150 million share repurchase program launched during the third quarter, repurchasing $74 million of our common stock at an average price of $41.10. Our leverage ratios remain well below our target range, despite the strong portfolio purchasing quarter and the utilization of nearly half of our initial share repurchase authorization. On November 1, we announced an $80 million increase to our share repurchase program, raising the total authorization to $230 million."
1. | Calculated by dividing cash receipts less operating expense by cash receipts. |
2. | A reconciliation of this non-GAAP financial measure to the most comparable GAAP measure can be found at the end of this press release. |
Cash Collections and Revenues
Cash Collection Source | 2021 | 2020 | ||||||||||||||||||
($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||
Americas and Australia Core | $ | 276,691 | $ | 324,845 | $ | 347,638 | $ | 286,524 | $ | 336,322 | ||||||||||
Americas Insolvency | 37,464 | 37,768 | 35,253 | 36,048 | 37,344 | |||||||||||||||
Europe Core | 151,625 | 157,637 | 149,486 | 141,471 | 131,702 | |||||||||||||||
Europe Insolvency | 22,574 | 23,579 | 23,510 | 17,830 | 13,971 | |||||||||||||||
Total Cash Collections | $ | 488,354 | $ | 543,829 | $ | 555,887 | $ | 481,873 | $ | 519,339 | ||||||||||
Cash Collection Source - | ||||||||||||||||||||
Constant Currency Adjusted | 2021 | 2020 | ||||||||||||||||||
($ in thousands) | Q3 | Q3 | ||||||||||||||||||
Americas and Australia Core | $ | 276,691 | $ | 337,483 | ||||||||||||||||
Americas Insolvency | 37,464 | 37,373 | ||||||||||||||||||
Europe Core | 151,625 | 136,747 | ||||||||||||||||||
Europe Insolvency | 22,574 | 14,810 | ||||||||||||||||||
Total Cash Collections | $ | 488,354 | $ | 526,413 |
Expenses
Portfolio Acquisitions
Portfolio Purchase Source | 2021 | 2020 | ||||||||||||||||||
($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||
Americas and Australia Core | $ | 162,451 | $ | 98,901 | $ | 88,912 | $ | 67,460 | $ | 84,139 | ||||||||||
Americas Insolvency | 9,878 | 14,642 | 9,486 | 12,504 | 14,328 | |||||||||||||||
Europe Core | 212,194 | 106,134 | 44,095 | 137,647 | 74,930 | |||||||||||||||
Europe Insolvency | 7,424 | — | 16,468 | 72,171 | 4,203 | |||||||||||||||
Total Portfolio Acquisitions | $ | 391,947 | $ | 219,677 | $ | 158,961 | $ | 289,782 | $ | 177,600 | ||||||||||
Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts. 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 844-835-9982 in the U.S. or 412-317-5267 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 November 8, 2022, or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 10160856 until November 15, 2021.
The Company is also announcing that it currently plans to report fourth quarter 2021 results after market close on February 28, 2022.
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 our 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. | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | |||||||||||||||
Portfolio income | $ | 212,905 | $ | 240,250 | $ | 663,714 | $ | 750,556 | |||||||
Changes in expected recoveries | 43,820 | 25,403 | 157,504 | 32,388 | |||||||||||
Total portfolio revenue | 256,725 | 265,653 | 821,218 | 782,944 | |||||||||||
Fee income | 6,209 | 1,978 | 10,843 | 6,826 | |||||||||||
Other revenue | 764 | 233 | 6,735 | 1,788 | |||||||||||
Total revenues | 263,698 | 267,864 | 838,796 | 791,558 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation and employee services | 74,584 | 71,974 | 228,200 | 217,617 | |||||||||||
Legal collection fees | 10,993 | 13,661 | 36,208 | 41,975 | |||||||||||
Legal collection costs | 21,450 | 26,043 | 61,231 | 79,997 | |||||||||||
Agency fees | 15,646 | 14,900 | 47,145 | 38,619 | |||||||||||
Outside fees and services | 29,434 | 22,719 | 71,167 | 60,796 | |||||||||||
Communication | 9,782 | 9,379 | 33,039 | 31,702 | |||||||||||
Rent and occupancy | 4,571 | 4,460 | 13,694 | 13,415 | |||||||||||
Depreciation and amortization | 3,724 | 4,301 | 11,520 | 12,494 | |||||||||||
Other operating expenses | 15,935 | 11,761 | 44,045 | 34,457 | |||||||||||
Total operating expenses | 186,119 | 179,198 | 546,249 | 531,072 | |||||||||||
Income from operations | 77,579 | 88,666 | 292,547 | 260,486 | |||||||||||
Other income and (expense): | |||||||||||||||
Interest expense, net | (29,599) | (33,692) | (91,987) | (106,319) | |||||||||||
Foreign exchange gain | 1,232 | 61 | 127 | 3,027 | |||||||||||
Other | 85 | 291 | 294 | (1,367) | |||||||||||
Income before income taxes | 49,297 | 55,326 | 200,981 | 155,827 | |||||||||||
Income tax expense | 12,627 | 7,497 | 41,870 | 24,734 | |||||||||||
Net income | 36,670 | 47,829 | 159,111 | 131,093 | |||||||||||
Adjustment for net income attributable | 2,190 | 5,337 | 10,229 | 11,552 | |||||||||||
Net income attributable to PRA Group, Inc. | $ | 34,480 | $ | 42,492 | $ | 148,882 | $ | 119,541 | |||||||
Net income per common share attributable to PRA Group, Inc.: | |||||||||||||||
Basic | $ | 0.76 | $ | 0.93 | $ | 3.27 | $ | 2.63 | |||||||
Diluted | $ | 0.76 | $ | 0.92 | $ | 3.24 | $ | 2.60 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 45,305 | 45,579 | 45,594 | 45,526 | |||||||||||
Diluted | 45,656 | 46,140 | 45,920 | 45,971 |
PRA Group, Inc. | |||||||
(unaudited) | |||||||
September 30, 2021 | December 31, | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 56,545 | $ | 108,613 | |||
Restricted cash | 4,752 | 12,434 | |||||
Investments | 85,171 | 55,759 | |||||
Finance receivables, net | 3,449,939 | 3,514,788 | |||||
Other receivables, net | 7,065 | 13,194 | |||||
Income taxes receivable | 21,863 | 21,928 | |||||
Deferred tax assets, net | 77,213 | 83,205 | |||||
Right-of-use assets | 51,998 | 52,951 | |||||
Property and equipment, net | 53,767 | 58,356 | |||||
Goodwill | 482,479 | 492,989 | |||||
Other assets | 41,168 | 38,844 | |||||
Total assets | $ | 4,331,960 | $ | 4,453,061 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Accounts payable | $ | 5,379 | $ | 5,294 | |||
Accrued expenses | 100,342 | 97,320 | |||||
Income taxes payable | 20,719 | 29,692 | |||||
Deferred tax liabilities, net | 32,604 | 40,867 | |||||
Lease liabilities | 56,409 | 57,348 | |||||
Interest-bearing deposits | 132,612 | 132,739 | |||||
Borrowings | 2,520,903 | 2,661,289 | |||||
Other liabilities | 34,342 | 54,986 | |||||
Total liabilities | 2,903,310 | 3,079,535 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 2,000 shares authorized, 0 shares issued | — | — | |||||
Common stock, $0.01 par value, 100,000 shares authorized, 44,040 shares | 440 | 456 | |||||
Additional paid-in capital | — | 75,282 | |||||
Retained earnings | 1,654,544 | 1,511,970 | |||||
Accumulated other comprehensive loss | (264,781) | (245,791) | |||||
Total stockholders' equity - PRA Group, Inc. | 1,390,203 | 1,341,917 | |||||
Noncontrolling interest | 38,447 | 31,609 | |||||
Total equity | 1,428,650 | 1,373,526 | |||||
Total liabilities and equity | $ | 4,331,960 | $ | 4,453,061 |
Select Expenses (Income) Amounts in thousands, pre-tax | ||||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||
Noncash interest | — | — | — | 1,959 | 2,388 | 3,247 | 3,217 | 3,157 | ||||||||
Noncash interest | 2,406 | 2,391 | 2,256 | 2,393 | 2,476 | 2,743 | 2,640 | 2,649 | ||||||||
Change in fair value of | 2,982 | 2,911 | 3,102 | 3,875 | 3,701 | 3,284 | 2,039 | 1,247 | ||||||||
Amortization of | 104 | 105 | 181 | 1,792 | 360 | 351 | 349 | 407 | ||||||||
Stock-based | 4,317 | 4,040 | 4,113 | 5,370 | 3,097 | 3,063 | 2,857 | 2,809 |
Purchase Price Multiples as of September 30, 2021 Amounts in thousands | |||||||||||
Purchase Period | Purchase Price (1)(2) | Total Estimated | Estimated | Current Purchase | Original Purchase | ||||||
Americas and Australia Core | |||||||||||
1996-2010 | $ | 1,078,219 | $ | 3,400,695 | $ | 20,886 | 315% | 240% | |||
2011 | 209,602 | 719,844 | 12,296 | 343% | 245% | ||||||
2012 | 254,076 | 652,359 | 13,851 | 257% | 226% | ||||||
2013 | 390,826 | 894,134 | 21,565 | 229% | 211% | ||||||
2014 | 404,117 | 859,487 | 34,155 | 213% | 204% | ||||||
2015 | 443,114 | 908,490 | 84,319 | 205% | 205% | ||||||
2016 | 455,767 | 1,112,953 | 174,608 | 244% | 201% | ||||||
2017 | 532,851 | 1,214,479 | 263,966 | 228% | 193% | ||||||
2018 | 653,975 | 1,396,690 | 350,509 | 214% | 202% | ||||||
2019 | 581,476 | 1,249,471 | 487,764 | 215% | 206% | ||||||
2020 | 435,668 | 931,651 | 572,004 | 214% | 213% | ||||||
2021 | 347,641 | 672,752 | 624,805 | 194% | 194% | ||||||
Subtotal | 5,787,332 | 14,013,005 | 2,660,728 | ||||||||
Americas Insolvency | |||||||||||
1996-2010 | 606,395 | 1,382,652 | 604 | 228% | 180% | ||||||
2011 | 180,432 | 370,146 | 370 | 205% | 155% | ||||||
2012 | 251,395 | 392,933 | 94 | 156% | 136% | ||||||
2013 | 227,834 | 355,191 | 453 | 156% | 133% | ||||||
2014 | 148,420 | 219,081 | 1,760 | 148% | 124% | ||||||
2015 | 63,170 | 87,229 | 418 | 138% | 125% | ||||||
2016 | 91,442 | 117,105 | 2,878 | 128% | 123% | ||||||
2017 | 275,257 | 350,845 | 30,193 | 127% | 125% | ||||||
2018 | 97,879 | 131,527 | 42,766 | 134% | 127% | ||||||
2019 | 123,077 | 159,298 | 86,020 | 129% | 128% | ||||||
2020 | 62,130 | 85,128 | 67,104 | 137% | 136% | ||||||
2021 | 34,003 | 47,105 | 45,525 | 139% | 139% | ||||||
Subtotal | 2,161,434 | 3,698,240 | 278,185 | ||||||||
Total Americas and Australia | 7,948,766 | 17,711,245 | 2,938,913 | ||||||||
Europe Core | |||||||||||
2012 | 20,409 | 42,267 | — | 207% | 187% | ||||||
2013 | 20,334 | 26,084 | — | 128% | 119% | ||||||
2014 | 773,811 | 2,240,031 | 502,932 | 289% | 208% | ||||||
2015 | 411,340 | 723,559 | 218,870 | 176% | 160% | ||||||
2016 | 333,090 | 561,613 | 256,468 | 169% | 167% | ||||||
2017 | 252,174 | 353,381 | 162,591 | 140% | 144% | ||||||
2018 | 341,775 | 527,899 | 304,855 | 154% | 148% | ||||||
2019 | 518,610 | 775,332 | 515,554 | 150% | 152% | ||||||
2020 | 324,119 | 554,041 | 433,847 | 171% | 172% | ||||||
2021 | 353,539 | 599,818 | 577,137 | 170% | 170% | ||||||
Subtotal | 3,349,201 | 6,404,025 | 2,972,254 | ||||||||
Europe Insolvency | |||||||||||
2014 | 10,876 | 18,297 | 46 | 168% | 129% | ||||||
2015 | 18,973 | 29,009 | 1,157 | 153% | 139% | ||||||
2016 | 39,338 | 56,850 | 5,593 | 145% | 130% | ||||||
2017 | 39,235 | 49,180 | 12,650 | 125% | 128% | ||||||
2018 | 44,908 | 51,977 | 25,606 | 116% | 123% | ||||||
2019 | 77,218 | 102,011 | 58,984 | 132% | 130% | ||||||
2020 | 105,440 | 135,893 | 102,428 | 129% | 129% | ||||||
2021 | 23,485 | 29,676 | 27,003 | 126% | 126% | ||||||
Subtotal | 359,473 | 472,893 | 233,467 | ||||||||
Total Europe | 3,708,674 | 6,876,918 | 3,205,721 | ||||||||
Total PRA Group | $ | 11,657,440 | $ | 24,588,163 | $ | 6,144,634 |
(1) | Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions. |
(2) | For our non-U.S. amounts, purchase price is 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) | For our non-U.S. amounts, TEC is presented at the year-end exchange rate for the respective year of purchase. |
(4) | For our non-U.S. amounts, ERC is presented at the September 30, 2021 exchange rate. |
(5) | The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition. |
Portfolio Financial Information Year-to-date as of September 30, 2021 Amounts in thousands | |||||||||||||||
Purchase Period | Cash Collections (1) | Portfolio Income (1) | Change in Expected | Total Portfolio | Net Finance | ||||||||||
Americas and Australia Core | |||||||||||||||
1996-2010 | $ | 10,168 | $ | 6,227 | $ | 2,465 | $ | 8,692 | $ | 4,657 | |||||
2011 | 6,086 | 3,717 | 1,223 | 4,940 | 1,995 | ||||||||||
2012 | 7,061 | 3,290 | 1,387 | 4,677 | 4,375 | ||||||||||
2013 | 12,948 | 6,289 | (1,772) | 4,517 | 7,857 | ||||||||||
2014 | 17,717 | 8,350 | (3,773) | 4,577 | 12,105 | ||||||||||
2015 | 28,449 | 15,707 | (9,526) | 6,181 | 33,589 | ||||||||||
2016 | 60,990 | 32,106 | (115) | 31,991 | 63,980 | ||||||||||
2017 | 105,643 | 48,701 | 10,228 | 58,929 | 118,667 | ||||||||||
2018 | 193,699 | 66,584 | 31,149 | 97,733 | 189,064 | ||||||||||
2019 | 232,297 | 92,750 | 26,418 | 119,168 | 265,681 | ||||||||||
2020 | 226,068 | 97,175 | 52,411 | 149,586 | 322,912 | ||||||||||
2021 | 48,048 | 33,002 | (183) | 32,819 | 331,622 | ||||||||||
Subtotal | 949,174 | 413,898 | 109,912 | 523,810 | 1,356,504 | ||||||||||
Americas Insolvency | |||||||||||||||
1996-2010 | 471 | 501 | (15) | 486 | — | ||||||||||
2011 | 162 | 196 | (33) | 163 | — | ||||||||||
2012 | 489 | 161 | 340 | 501 | — | ||||||||||
2013 | 647 | 379 | 268 | 647 | — | ||||||||||
2014 | 881 | 856 | (32) | 824 | 156 | ||||||||||
2015 | 1,046 | 471 | (85) | 386 | 238 | ||||||||||
2016 | 6,543 | 1,137 | 230 | 1,367 | 2,247 | ||||||||||
2017 | 34,514 | 6,501 | 2,351 | 8,852 | 26,108 | ||||||||||
2018 | 24,111 | 4,768 | 1,079 | 5,847 | 37,385 | ||||||||||
2019 | 28,538 | 6,855 | (1,017) | 5,838 | 74,558 | ||||||||||
2020 | 11,501 | 5,533 | 903 | 6,436 | 52,559 | ||||||||||
2021 | 1,582 | 1,448 | 229 | 1,677 | 33,916 | ||||||||||
Subtotal | 110,485 | 28,806 | 4,218 | 33,024 | 227,167 | ||||||||||
Total Americas and Australia | 1,059,659 | 442,704 | 114,130 | 556,834 | 1,583,671 | ||||||||||
Europe Core | |||||||||||||||
2012 | 901 | — | 901 | 901 | — | ||||||||||
2013 | 532 | — | 533 | 533 | — | ||||||||||
2014 | 113,726 | 73,152 | 21,097 | 94,249 | 142,909 | ||||||||||
2015 | 39,404 | 20,653 | (8,937) | 11,716 | 112,919 | ||||||||||
2016 | 35,457 | 18,422 | (1,387) | 17,035 | 149,054 | ||||||||||
2017 | 27,247 | 9,083 | (2,960) | 6,123 | 111,143 | ||||||||||
2018 | 53,130 | 18,174 | 5,817 | 23,991 | 201,056 | ||||||||||
2019 | 93,839 | 28,871 | 9,890 | 38,761 | 347,599 | ||||||||||
2020 | 71,264 | 27,566 | 10,664 | 38,230 | 263,916 | ||||||||||
2021 | 23,248 | 8,152 | 3,645 | 11,797 | 342,204 | ||||||||||
Subtotal | 458,748 | 204,073 | 39,263 | 243,336 | 1,670,800 | ||||||||||
Europe Insolvency | |||||||||||||||
2014 | 242 | 97 | 76 | 173 | 21 | ||||||||||
2015 | 1,342 | 544 | 43 | 587 | 853 | ||||||||||
2016 | 4,783 | 1,388 | 226 | 1,614 | 4,301 | ||||||||||
2017 | 7,236 | 1,056 | 249 | 1,305 | 11,426 | ||||||||||
2018 | 8,846 | 1,750 | (748) | 1,002 | 22,699 | ||||||||||
2019 | 18,390 | 4,353 | 1,070 | 5,423 | 49,581 | ||||||||||
2020 | 26,073 | 6,845 | 2,045 | 8,890 | 84,688 | ||||||||||
2021 | 2,751 | 904 | 1,150 | 2,054 | 21,899 | ||||||||||
Subtotal | 69,663 | 16,937 | 4,111 | 21,048 | 195,468 | ||||||||||
Total Europe | 528,411 | 221,010 | 43,374 | 264,384 | 1,866,268 | ||||||||||
Total PRA Group | $ | 1,588,070 | $ | 663,714 | $ | 157,504 | $ | 821,218 | $ | 3,449,939 |
(1) | For our non-U.S. amounts, amounts are presented using the average exchange rates during the current reporting period. |
(2) | For our non-U.S. amounts, Net Finance Receivables are presented at the September 30, 2021 exchange rate. |
Cash Collections by Year, By Year of Purchase (1) as of September 30, 2021 Amounts in millions | ||||||||||||||||||||||||||||||||||||||||||
Cash Collections | ||||||||||||||||||||||||||||||||||||||||||
Purchase | Purchase | 1996- | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | Total | ||||||||||||||||||||||||||||
Americas and Australia Core | ||||||||||||||||||||||||||||||||||||||||||
1996-2010 | $ | 1,078.2 | $ | 1,990.5 | $ | 367.1 | $ | 311.5 | $ | 228.4 | $ | 157.7 | $ | 109.3 | $ | 70.2 | $ | 46.0 | $ | 34.4 | $ | 28.4 | $ | 18.8 | $ | 10.2 | $ | 3,372.5 | ||||||||||||||
2011 | 209.6 | — | 62.0 | 174.5 | 152.9 | 108.5 | 73.8 | 48.7 | 32.0 | 21.6 | 16.6 | 10.9 | 6.1 | 707.6 | ||||||||||||||||||||||||||||
2012 | 254.1 | — | — | 56.9 | 173.6 | 146.2 | 97.3 | 60.0 | 40.0 | 27.8 | 17.9 | 11.8 | 7.1 | 638.6 | ||||||||||||||||||||||||||||
2013 | 390.8 | — | — | — | 101.6 | 247.8 | 194.0 | 120.8 | 78.9 | 56.4 | 36.9 | 23.2 | 12.9 | 872.5 | ||||||||||||||||||||||||||||
2014 | 404.1 | — | — | — | — | 92.7 | 253.4 | 170.3 | 114.2 | 82.2 | 55.3 | 31.9 | 17.7 | 817.7 | ||||||||||||||||||||||||||||
2015 | 443.1 | — | — | — | — | — | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 28.4 | 827.1 | ||||||||||||||||||||||||||||
2016 | 455.8 | — | — | — | — | — | — | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 61.0 | 897.3 | ||||||||||||||||||||||||||||
2017 | 532.9 | — | — | — | — | — | — | — | 107.3 | 278.7 | 256.5 | 192.5 | 105.6 | 940.6 | ||||||||||||||||||||||||||||
2018 | 654.0 | — | — | — | — | — | — | — | — | 122.7 | 361.9 | 337.7 | 193.7 | 1016.0 | ||||||||||||||||||||||||||||
2019 | 581.5 | — | — | — | — | — | — | — | — | — | 143.8 | 349.0 | 232.3 | 725.1 | ||||||||||||||||||||||||||||
2020 | 435.7 | — | — | — | — | — | — | — | — | — | — | 133.0 | 226.1 | 359.1 | ||||||||||||||||||||||||||||
2021 | 347.6 | — | — | — | — | — | — | — | — | — | — | — | 48.1 | 48.1 | ||||||||||||||||||||||||||||
Subtotal | 5,787.4 | 1,990.5 | 429.1 | 542.9 | 656.5 | 752.9 | 844.8 | 837.1 | 860.8 | 945.0 | 1,141.5 | 1,271.9 | 949.2 | 11,222.2 | ||||||||||||||||||||||||||||
Americas Insolvency | ||||||||||||||||||||||||||||||||||||||||||
1996-2010 | 606.4 | 390.9 | 261.2 | 270.4 | 231.0 | 158.9 | 51.2 | 8.6 | 4.6 | 2.5 | 1.4 | 0.8 | 0.5 | 1,382.0 | ||||||||||||||||||||||||||||
2011 | 180.4 | — | 15.2 | 66.4 | 82.8 | 85.8 | 76.9 | 36.0 | 3.7 | 1.6 | 0.7 | 0.5 | 0.2 | 369.8 | ||||||||||||||||||||||||||||
2012 | 251.4 | — | — | 17.4 | 103.6 | 94.1 | 80.1 | 60.7 | 29.3 | 4.3 | 1.9 | 0.9 | 0.5 | 392.8 | ||||||||||||||||||||||||||||
2013 | 227.8 | — | — | — | 52.5 | 82.6 | 81.7 | 63.4 | 47.8 | 21.9 | 2.9 | 1.3 | 0.6 | 354.7 | ||||||||||||||||||||||||||||
2014 | 148.4 | — | — | — | — | 37.0 | 50.9 | 44.3 | 37.4 | 28.8 | 15.8 | 2.2 | 0.9 | 217.3 | ||||||||||||||||||||||||||||
2015 | 63.2 | — | — | — | — | — | 3.4 | 17.9 | 20.1 | 19.8 | 16.7 | 7.9 | 1.0 | 86.8 | ||||||||||||||||||||||||||||
2016 | 91.4 | — | — | — | — | — | — | 18.9 | 30.4 | 25.0 | 19.9 | 14.4 | 6.5 | 115.1 | ||||||||||||||||||||||||||||
2017 | 275.3 | — | — | — | — | — | — | — | 49.1 | 97.3 | 80.9 | 58.8 | 34.5 | 320.6 | ||||||||||||||||||||||||||||
2018 | 97.9 | — | — | — | — | — | — | — | — | 6.7 | 27.4 | 30.5 | 24.1 | 88.7 | ||||||||||||||||||||||||||||
2019 | 123.1 | — | — | — | — | — | — | — | — | — | 13.3 | 31.4 | 28.5 | 73.2 | ||||||||||||||||||||||||||||
2020 | 62.1 | — | — | — | — | — | — | — | — | — | — | 6.6 | 11.5 | 18.1 | ||||||||||||||||||||||||||||
2021 | 34.0 | — | — | — | — | — | — | — | — | — | — | — | 1.7 | 1.7 | ||||||||||||||||||||||||||||
Subtotal | 2,161.4 | 390.9 | 276.4 | 354.2 | 469.9 | 458.4 | 344.2 | 249.8 | 222.4 | 207.9 | 180.9 | 155.3 | 110.5 | 3,420.8 | ||||||||||||||||||||||||||||
Total Americas and Australia | 7,948.8 | 2,381.4 | 705.5 | 897.1 | 1,126.4 | 1,211.3 | 1,189.0 | 1,086.9 | 1,083.2 | 1,152.9 | 1,322.4 | 1,427.2 | 1,059.7 | 14,643.0 | ||||||||||||||||||||||||||||
Europe Core | ||||||||||||||||||||||||||||||||||||||||||
2012 | 20.4 | — | — | 11.6 | 9.0 | 5.6 | 3.2 | 2.2 | 2.0 | 2.0 | 1.5 | 1.2 | 0.9 | 39.2 | ||||||||||||||||||||||||||||
2013 | 20.3 | — | — | — | 7.1 | 8.5 | 2.3 | 1.3 | 1.2 | 1.3 | 0.9 | 0.7 | 0.5 | 23.8 | ||||||||||||||||||||||||||||
2014 | 773.8 | — | — | — | — | 153.2 | 292.0 | 246.4 | 220.8 | 206.3 | 172.9 | 149.8 | 113.7 | 1,555.1 | ||||||||||||||||||||||||||||
2015 | 411.3 | — | — | — | — | — | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 39.4 | 473.0 | ||||||||||||||||||||||||||||
2016 | 333.1 | — | — | — | — | — | — | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 35.5 | 333.7 | ||||||||||||||||||||||||||||
2017 | 252.2 | — | — | — | — | — | — | — | 17.9 | 56.0 | 44.1 | 36.1 | 27.2 | 181.3 | ||||||||||||||||||||||||||||
2018 | 341.8 | — | — | — | — | — | — | — | — | 24.3 | 88.7 | 71.2 | 53.1 | 237.3 | ||||||||||||||||||||||||||||
2019 | 518.6 | — | — | — | — | — | — | — | — | — | 47.9 | 125.7 | 93.8 | 267.4 | ||||||||||||||||||||||||||||
2020 | 324.1 | — | — | — | — | — | — | — | — | — | — | 32.4 | 71.3 | 103.7 | ||||||||||||||||||||||||||||
2021 | 353.6 | — | — | — | — | — | — | — | — | — | — | — | 23.3 | 23.3 | ||||||||||||||||||||||||||||
Subtotal | 3,349.2 | — | — | 11.6 | 16.1 | 167.3 | 343.3 | 390.6 | 407.0 | 443.4 | 480.1 | 519.7 | 458.7 | 3,237.8 | ||||||||||||||||||||||||||||
Europe Insolvency | ||||||||||||||||||||||||||||||||||||||||||
2014 | 10.9 | — | — | — | — | — | 4.3 | 3.9 | 3.2 | 2.6 | 1.5 | 0.8 | 0.2 | 16.5 | ||||||||||||||||||||||||||||
2015 | 19.0 | — | — | — | — | — | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.3 | 25.3 | ||||||||||||||||||||||||||||
2016 | 39.3 | — | — | — | — | — | — | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 4.8 | 55.2 | ||||||||||||||||||||||||||||
2017 | 39.2 | — | — | — | — | — | — | — | 1.2 | 7.9 | 9.2 | 9.8 | 7.2 | 35.3 | ||||||||||||||||||||||||||||
2018 | 44.9 | — | — | — | — | — | — | — | — | 0.6 | 8.4 | 10.3 | 8.8 | 28.1 | ||||||||||||||||||||||||||||
2019 | 77.2 | — | — | — | — | — | — | — | — | — | 5.1 | 21.1 | 18.4 | 44.6 | ||||||||||||||||||||||||||||
2020 | 105.4 | — | — | — | — | — | — | — | — | — | — | 6.1 | 26.1 | 32.2 | ||||||||||||||||||||||||||||
2021 | 23.5 | — | — | — | — | — | — | — | — | — | — | — | 2.8 | 2.8 | ||||||||||||||||||||||||||||
Subtotal | 359.4 | — | — | — | — | — | 7.3 | 14.5 | 22.1 | 28.8 | 38.8 | 58.9 | 69.6 | 240.0 | ||||||||||||||||||||||||||||
Total Europe | 3,708.6 | — | — | 11.6 | 16.1 | 167.3 | 350.6 | 405.1 | 429.1 | 472.2 | 518.9 | 578.6 | 528.3 | 3,477.8 | ||||||||||||||||||||||||||||
Total PRA Group | $ | 11,657.4 | $ | 2,381.4 | $ | 705.5 | $ | 908.7 | $ | 1,142.5 | $ | 1,378.6 | $ | 1,539.6 | $ | 1,492.0 | $ | 1,512.3 | $ | 1,625.1 | $ | 1,841.3 | $ | 2,005.8 | $ | 1,588.0 | $ | 18,120.8 |
(1) | For our non-U.S. amounts, cash collections are presented using the average exchange rates during the cash collection period. |
(2) | Includes the finance receivables portfolios that were acquired through our business acquisitions. |
(3) | For our non-U.S. amounts, purchase price is 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
PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, 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; less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; 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. PRA Group, Inc. 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 Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2021 and for the year ended December 31, 2020, to net income, the most directly comparable financial measure calculated and reported in accordance with GAAP. 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) | September 30, 2021 | December 31, 2020 | ||||||||
Net income attributable to PRA Group, Inc. | $ | 179 | $ | 149 | ||||||
Adjustments: | ||||||||||
Income tax expense | 58 | 41 | ||||||||
Foreign exchange losses/(gains) | 1 | (2) | ||||||||
Interest expense, net | 127 | 142 | ||||||||
Other expense | (1) | 1 | ||||||||
Depreciation and amortization | 17 | 18 | ||||||||
Adjustment for net income attributable to noncontrolling interests | 17 | 18 | ||||||||
Recoveries applied to negative allowance less Changes in expected recoveries | 993 | 968 | ||||||||
Adjusted EBITDA | $ | 1,392 | $ | 1,337 |
Additionally, management evaluates the Company's business using certain ratios that use Adjusted EBITDA, including Debt to Adjusted EBITDA, which is calculated by dividing borrowings by Adjusted EBITDA. The following table reflects our Debt to Adjusted EBITDA for LTM as of September 30, 2021 and for the year ended December 31, 2020 (amounts in millions):
Debt to Adjusted EBITDA | ||||||
LTM | For the Year Ended | |||||
September 30, 2021 | December 31, 2020 | |||||
Borrowings | $ | 2,521 | $ | 2,661 | ||
LTM Adjusted EBITDA | 1,392 | 1,337 | ||||
Debt to LTM Adjusted EBITDA | 1.81 | 1.99 |
Investor Contact:
Pete Graham
Executive Vice President and Chief Financial Officer
(757) 431-7913
[email protected]
News Media Contact:
Elizabeth Kersey
Senior Vice President, Communications and Public Policy
(757) 431-3398
[email protected]
View original content:https://www.prnewswire.com/news-releases/pra-group-reports-third-quarter-2021-results-301418783.html
SOURCE PRA Group
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