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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):			November 6, 2023

PRA Group, Inc.

_________________________________________

(Exact name of registrant as specified in its charter)

Delaware

000-50058

75-3078675

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

120 Corporate Boulevard

Norfolk,

Virginia

23502

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:						(888)			772-7326

Not Applicable

______________________________________________

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01 par value per share			PRAA			NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

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Item 2.02 Results of Operations and Financial Condition.

On November 6, 2023, PRA Group, Inc. (the “Company”) issued a press release announcing its third quarter 2023 results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated into this Item 2.02 by reference.

Item 7.01 Regulation FD Disclosure.

The slide presentation being used in connection with the Company’s previously announced November 6, 2023 webcast and conference call to discuss its third quarter 2023 results is available in the Investor Relations section of the Company’s website at https://ir.pragroup.com/events-and-presentations.

None of the information furnished in Item 2.02, Item 7.01 or Exhibit 99.1 of this Form 8-K shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Unless expressly set forth by specific reference in such filings, none of the information furnished in this Form 8-K shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01 Financial Statements and Exhibits

(d)			Exhibits
			99.1			Press release dated November 6, 2023
			104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PRA Group, Inc.
Date: November 6, 2023			By:			/s/ Rakesh Sehgal
						Rakesh Sehgal
						Executive Vice President and Chief Financial Officer

PRA Group Reports Third Quarter 2023 Results

NORFOLK, Va., November 6, 2023 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2023 ("Q3 2023").

Q3 2023 Highlights

•Total portfolio purchases increased 69.9% year-over-year to $311.2 million; $231.8 million of portfolio purchases in the Americas and Australia, which represents the highest quarterly investment since 2017.

•Total cash collections were $419.6 million.

•Estimated remaining collections (ERC)1 were $6.0 billion, growing for the second consecutive quarter.

•Cash efficiency ratio2 of 58.9%.

•Diluted earnings per share were $(0.31). This includes a $5.0 million, or $0.10 per share, non-cash impairment charge associated with the Company's decision to cease call center operations at one of its owned regional offices in the U.S.

•Debt to Adjusted EBITDA3 for the 12 months ended September 30, 2023 was 2.84x.

•Total availability under the Company's credit facilities as of September 30, 2023 was $1.3 billion, comprised of $277.8 million based on current ERC and $1.1 billion of additional availability subject to debt covenants, including advance rates.

						Three Months Ended Sept 30,												Nine Months Ended Sept 30,
($ in thousands, except per share amounts)						2023						2022						2023						2022
Net income/(loss) attributable to PRA Group, Inc.						$	(12,262)					$	24,732					$	(74,695)					$	101,188
Diluted earnings per share						$	(0.31)					$	0.63					$	(1.91)					$	2.52

“I am highly encouraged by the scope and intensity of our initiatives to optimize our U.S. business, which expanded and accelerated through the third quarter,” said Vikram Atal, president and chief executive officer. "Total portfolio purchases of $311 million in the quarter were up 70% year-over-year, representing one of the highest buying quarters in our history, and were accompanied by improved pricing that reflects current market conditions. Cash collections exceeded expectations, led by operational results in Brazil and Europe, as well as modest overperformance in the U.S. In addition, operating expenses remained carefully controlled. These developments, alongside the tailwind of a continuation of increased portfolio supply in the U.S. and our strong and diversified positioning across markets in Europe, provide a strong framework to deliver significantly improved results in 2024."

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.

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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						2023																		2022
($ in thousands)						Q3						Q2						Q1						Q4						Q3
Americas and Australia Core						$	223,714					$	220,886					$	227,960					$	205,619					$	225,775
Americas Insolvency						27,809						26,384						25,751						27,971						31,911
Europe Core						144,402						149,324						134,005						134,016						132,072
Europe Insolvency						23,639						22,725						23,568						24,051						22,586
Total Cash Collections						$	419,564					$	419,319					$	411,284					$	391,657					$	412,344
Cash Collection Source -
Constant Currency-Adjusted						2023																								2022
($ in thousands)						Q3																								Q3
Americas and Australia Core						$	223,714																							$	227,432
Americas Insolvency						27,809																								31,900
Europe Core						144,402																								140,472
Europe Insolvency						23,639																								24,315
Total Cash Collections						$	419,564																							$	424,119

•Total cash collections in Q3 2023 increased 1.8% (or decreased 1.1% on a constant currency-adjusted basis) to $419.6 million compared to $412.3 million in the third quarter of 2022 ("Q3 2022"). The increase was primarily due to an increase in collections in Brazil and Europe. For the nine months ended September 30, 2023, cash collections decreased $87.2 million compared to the same period last year.

•Total portfolio revenue in Q3 2023 was $212.1 million compared to $234.2 million in Q3 2022. For the nine months ended September 30, 2023, total portfolio revenue was $568.9 million compared to $722.2 million in the same period last year due to lower portfolio purchases in 2021 and 2022.

Expenses

•Operating expenses in Q3 2023 decreased by $0.6 million, or 0.4%, to $173.4 million compared to $174.0 million in Q3 2022. This included a $5.0 million non-cash impairment charge associated with the Company's previously announced decision to cease call center operations at one of its owned regional offices in the U.S. Excluding this non-cash impairment charge, operating expenses would have been $168.4 million.

•For the nine months ended September 30, 2023, operating expenses increased by $9.0 million to $526.2 million, compared to $517.2 million in the same period last year.

•The effective tax benefit rate for the nine months ended September 30, 2023 was 20.1%.

Portfolio Acquisitions

•The Company purchased $311.2 million in portfolios of nonperforming loans in Q3 2023, an increase of 69.9% compared to Q3 2022.

•At the end of Q3 2023, the Company had in place maximum forward flow commitments1 of up to $538.0 million, comprised of $356.4 million in the Americas and Australia and $181.6 million in Europe.

1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts are based on sellers' estimates of future forward flow sales and are dependent on actual delivery compared to these estimates. Accordingly, amounts purchased under these agreements may vary and are often less than the maximum amounts.

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Portfolio Purchase Source						2023																		2022
($ in thousands)						Q3						Q2						Q1						Q4						Q3
Americas and Australia Core						$	187,554					$	171,440					$	116,867					$	118,581					$	100,780
Americas Insolvency						44,279						12,189						15,701						8,967						8,988
Europe Core						60,628						136,834						90,454						140,011						59,426
Europe Insolvency						18,722						7,296						7,203						20,535						13,910
Total Portfolio Acquisitions						$	311,183					$	327,759					$	230,225					$	288,094					$	183,104

Conference Call Information

PRA Group, Inc. will hold a conference call today at 5:00 p.m. Eastern time 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 844-835-9982 in the U.S. or 412-317-5267 outside the U.S., and ask the operator for the PRA Group conference call. To listen to a replay of the call, either visit the same website until November 6, 2024, or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 7678442 until November 13, 2023.

About PRA Group, Inc.

As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

About Forward Looking Statements

Statements made herein that are not historical in nature, including PRA Group, Inc.’s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.’s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.’s filings with the Securities and Exchange Commission, including PRA Group, Inc.’s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.’s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

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PRA Group, Inc.

Unaudited Consolidated Income Statements

(Amounts in thousands, except per share amounts)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2023						2022						2023						2022
Revenues:
Portfolio income			$	189,960					$	185,853					$	562,492					$	587,394
Changes in expected recoveries			22,156						48,336						6,380						134,817
Total portfolio revenue			212,116						234,189						568,872						722,211
Other revenue			4,314						10,618						12,264						21,463
Total revenues			216,430						244,807						581,136						743,674
Operating expenses:
Compensation and employee services			69,517						70,382						217,708						215,615
Legal collection fees			9,839						8,963						28,228						29,390
Legal collection costs			20,761						23,391						66,228						57,694
Agency fees			19,436						15,160						54,491						47,374
Outside fees and services			18,858						24,618						62,064						71,489
Communication			9,881						9,951						30,525						32,062
Rent and occupancy			4,426						4,669						13,193						14,289
Depreciation and amortization			3,273						3,741						10,344						11,384
Impairment of real estate			5,037						—						5,037						—
Other operating expenses			12,356						13,144						38,355						37,885
Total operating expenses			173,384						174,019						526,173						517,182
Income from operations			43,046						70,788						54,963						226,492
Other income and (expense):
Interest expense, net			(49,473)						(32,455)						(130,778)						(95,765)
Foreign exchange gain, net			564						4						984						791
Other			(500)						(83)						(1,380)						(754)
Income/(loss) before income taxes			(6,363)						38,254						(76,211)						130,764
Income tax expense/(benefit)			1,788						11,072						(15,317)						29,828
Net income/(loss)			(8,151)						27,182						(60,894)						100,936
Adjustment for net income/(loss) attributable to noncontrolling interests			4,111						2,450						13,801						(252)
Net income/(loss) attributable to PRA Group, Inc.			$	(12,262)					$	24,732					$	(74,695)					$	101,188
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic			$	(0.31)					$	0.63					$	(1.91)					$	2.54
Diluted			$	(0.31)					$	0.63					$	(1.91)					$	2.52
Weighted average number of shares outstanding:
Basic			39,242						39,018						39,155						39,858
Diluted			39,242						39,170						39,155						40,125

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PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

			(unaudited)
			September 30, 2023						December 31, 2022
Assets
Cash and cash equivalents			$	105,172					$	83,376
Investments			74,729						79,948
Finance receivables, net			3,460,804						3,295,008
Income taxes receivable			38,695						31,774
Deferred tax assets, net			55,493						56,908
Right-of-use assets			47,156						54,506
Property and equipment, net			38,562						51,645
Goodwill			412,513						435,921
Other assets			96,851						86,588
Total assets			$	4,329,975					$	4,175,674
Liabilities and Equity
Liabilities:
Accounts payable			$	6,159					$	7,329
Accrued expenses			106,391						111,395
Income taxes payable			15,946						25,693
Deferred tax liabilities, net			14,185						42,918
Lease liabilities			51,658						59,384
Interest-bearing deposits			100,505						112,992
Borrowings			2,832,225						2,494,858
Other liabilities			12,919						34,355
Total liabilities			3,139,988						2,888,924
Equity:
Preferred stock, $0.01 par value, 2,000 shares authorized, 0 shares issued and outstanding			—						—
Common stock, $0.01 par value, 100,000 shares authorized, 39,243 shares issued and outstanding at September 30, 2023; 100,000 shares authorized, 38,980 shares issued and outstanding at December 31, 2022			392						390
Additional paid-in capital			4,157						2,172
Retained earnings			1,498,330						1,573,025
Accumulated other comprehensive loss			(387,289)						(347,926)
Total stockholders' equity - PRA Group, Inc.			1,115,590						1,227,661
Noncontrolling interest			74,397						59,089
Total equity			1,189,987						1,286,750
Total liabilities and equity			$	4,329,975					$	4,175,674

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Select Expenses (Income) Amounts in thousands, pre-tax
			Three Months Ended
			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Noncash interest expense - amortization of debt issuance costs			2,220			2,384			2,441			2,444			2,555			2,471			2,627			2,455
Change in fair value of derivatives			(6,545)			(6,960)			(5,470)			(3,309)			(1,042)			1,525			2,726			3,115
Amortization of intangibles			69			68			66			73			73			77			83			(269)
Impairment of real estate			5,037			—			—			—			—			—			—			—
Stock-based compensation expense			1,629			2,715			3,799			2,206			3,101			3,849			3,891			3,470

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Purchase Price Multiples as of September 30, 2023 Amounts in thousands
Purchase Period			Purchase Price (2)(3)			Total Estimated Collections (4)			Estimated Remaining Collections (5)			Current Purchase Price Multiple			Original Purchase Price Multiple (6)
Americas and Australia Core
1996-2012			$	1,541,896		$	4,803,591		$	34,002		312%			238%
2013			390,826			912,127			15,613			233%			211%
2014			404,117			878,252			23,547			217%			204%
2015			443,114			898,799			37,991			203%			205%
2016			455,767			1,075,382			68,523			236%			201%
2017			532,851			1,196,883			110,646			225%			193%
2018			653,975			1,463,965			153,173			224%			202%
2019			581,476			1,291,978			200,551			222%			206%
2020			435,668			947,163			236,196			217%			213%
2021			435,846			774,075			412,428			178%			191%
2022			406,082			709,920			502,071			175%			179%
2023			475,470			902,639			846,139			190%			190%
Subtotal			6,757,088			15,854,774			2,640,880
Americas Insolvency
1996-2012			1,038,223			2,146,670			96			207%			165%
2013			227,834			355,733			45			156%			133%
2014			148,420			218,770			139			147%			124%
2015			63,170			87,980			103			139%			125%
2016			91,442			117,770			270			129%			123%
2017			275,257			356,365			1,423			129%			125%
2018			97,879			136,160			4,288			139%			127%
2019			123,077			168,922			24,524			137%			128%
2020			62,130			90,853			32,652			146%			136%
2021			55,187			73,780			37,820			134%			136%
2022			33,442			46,734			36,834			140%			139%
2023			71,953			100,452			95,705			140%			140%
Subtotal			2,288,014			3,900,189			233,899
Total Americas and Australia			9,045,102			19,754,963			2,874,779
Europe Core
2012			20,409			44,413			—			218%			187%
2013			20,334			27,260			1			134%			119%
2014 (1)			773,811			2,408,574			354,169			311%			208%
2015			411,340			743,660			141,522			181%			160%
2016			333,090			573,894			167,256			172%			167%
2017			252,174			362,855			107,001			144%			144%
2018			341,775			547,194			197,447			160%			148%
2019			518,610			822,604			338,588			159%			152%
2020			324,119			558,705			259,639			172%			172%
2021			412,411			694,192			423,855			168%			170%
2022			359,447			580,738			477,450			162%			162%
2023			281,356			457,931			429,428			163%			163%
Subtotal			4,048,876			7,822,020			2,896,356
Europe Insolvency
2014 (1)			10,876			18,809			—			173%			129%
2015			18,973			29,255			53			154%			139%
2016			39,338			57,698			1,123			147%			130%
2017			39,235			51,677			2,172			132%			128%
2018			44,908			52,473			5,713			117%			123%
2019			77,218			112,312			23,758			145%			130%
2020			105,440			156,926			47,485			149%			129%
2021			53,230			71,526			34,563			134%			134%
2022			44,604			60,714			47,585			136%			137%
2023			32,217			43,946			42,049			136%			136%
Subtotal			466,039			655,336			204,501
Total Europe			4,514,915			8,477,356			3,100,857
Total PRA Group			$	13,560,017		$	28,232,319		$	5,975,636

(1)    Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our 2022 Form 10-K).

(2)Includes the acquisition date finance receivables portfolios that were 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 portfolio are presented at the year-end exchange rate for the respective year of purchase.

(4)Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.

(5)Non-U.S. amounts are presented at the September 30, 2023 exchange rate.

(6)The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.

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Portfolio Financial Information Year-to-date as of September 30, 2023 Amounts in thousands
Purchase Period			Cash Collections (2)			Portfolio Income (2)			Change in Expected Recoveries (2)			Total Portfolio Revenue (2)			Net Finance Receivables as of September 30, 2023 (3)
Americas and Australia Core
1996-2012			$	13,706		$	8,270		$	3,589		$	11,859		$	8,404
2013			7,709			3,013			3,849			6,862			6,588
2014			8,933			3,839			3,743			7,583			9,136
2015			10,697			6,477			(1,262)			5,216			15,758
2016			18,926			12,877			(2,309)			10,568			22,995
2017			34,496			19,670			(6,655)			13,014			46,567
2018			73,748			30,229			5,437			35,666			87,935
2019			87,979			39,193			(1,760)			37,433			109,991
2020			100,608			44,087			(4,707)			39,380			133,793
2021			108,659			61,425			(36,553)			24,872			216,634
2022			150,050			74,546			(3,079)			71,467			306,568
2023			57,049			37,347			5,898			43,243			461,243
Subtotal			672,560			340,973			(33,809)			307,163			1,425,612
Americas Insolvency
1996-2012			576			189			390			579			—
2013			252			97			156			253			—
2014			349			207			96			304			—
2015			266			90			91			182			54
2016			662			105			312			418			236
2017			4,075			380			1,004			1,385			1,279
2018			10,958			975			(1,130)			(155)			4,091
2019			22,692			2,604			924			3,529			23,037
2020			15,206			3,326			1,162			4,488			28,574
2021			13,433			3,602			906			4,508			31,907
2022			6,715			2,936			645			3,581			29,333
2023			4,760			2,250			2,348			4,596			71,081
Subtotal			79,944			16,761			6,904			23,668			189,592
Total Americas and Australia			752,504			357,734			(26,905)			330,831			1,615,204
Europe Core
2012			531			—			531			531			—
2013			264			—			264			264			—
2014 (1)			81,467			52,042			14,172			66,214			97,030
2015			25,924			12,437			(502)			11,936			70,420
2016			22,350			11,777			(1,094)			10,682			96,465
2017			15,398			5,698			707			6,405			73,062
2018			31,748			11,528			3,374			14,902			130,556
2019			57,349			18,293			13,923			32,216			229,949
2020			43,153			16,725			1,067			17,793			160,547
2021			55,633			25,087			(6,041)			19,045			255,955
2022			64,593			26,164			(230)			25,934			299,256
2023			29,321			11,082			202			11,284			263,039
Subtotal			427,731			190,833			26,373			217,206			1,676,279
Europe Insolvency
2014 (1)			172			—			172			172			—
2015			331			21			250			270			45
2016			1,105			201			362			563			604
2017			3,279			216			648			865			1,986
2018			5,905			544			(130)			414			5,195
2019			13,786			1,983			1,309			3,292			20,822
2020			23,164			3,681			3,414			7,095			42,445
2021			11,068			2,777			302			3,078			29,247
2022			9,171			3,529			(40)			3,489			37,199
2023			1,951			973			625			1,597			31,778
Subtotal			69,932			13,925			6,912			20,835			169,321
Total Europe			497,663			204,758			33,285			238,041			1,845,600
Total PRA Group			$	1,250,167		$	562,492		$	6,380		$	568,872		$	3,460,804

(1)    Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our 2022 Form 10-K).

(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.

(3)Non-U.S. amounts are presented at the September 30, 2023 exchange rate.

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Cash Collections by Year, By Year of Purchase (1) as of September 30, 2023 Amounts in millions
						Cash Collections
Purchase Period			Purchase Price (3)(4)			1996-2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			2022			2023			Total
Americas and Australia Core
1996-2012			$	1,541.9		$	2,962.4		$	554.9		$	412.5		$	280.3		$	178.9		$	118.1		$	83.8		$	62.9		$	41.5		$	29.9		$	23.5		$	13.7		$	4,762.4
2013			390.8			—			101.6			247.8			194.0			120.8			78.9			56.4			36.9			23.2			16.7			12.5			7.7			896.5
2014			404.1			—			—			92.7			253.4			170.3			114.2			82.2			55.3			31.9			22.3			15.0			8.9			846.2
2015			443.1			—			—			—			117.0			228.4			185.9			126.6			83.6			57.2			34.9			19.5			10.7			863.8
2016			455.8			—			—			—			—			138.7			256.5			194.6			140.6			105.9			74.2			38.4			18.9			967.8
2017			532.9			—			—			—			—			—			107.3			278.7			256.5			192.5			130.0			76.3			34.5			1075.8
2018			654.0			—			—			—			—			—			—			122.7			361.9			337.7			239.9			146.1			73.7			1282.0
2019			581.5			—			—			—			—			—			—			—			143.8			349.0			289.8			177.7			88.0			1,048.3
2020			435.7			—			—			—			—			—			—			—			—			132.9			284.3			192.0			100.6			709.8
2021			435.8			—			—			—			—			—			—			—			—			—			85.0			177.3			108.7			371.0
2022			406.2			—			—			—			—			—			—			—			—			—			—			67.7			150.0			217.7
2023			475.5			—			—			—			—			—			—			—			—			—			—			—			56.9			56.9
Subtotal			6,757.3			2,962.4			656.5			753.0			844.7			837.1			860.9			945.0			1,141.5			1,271.8			1,207.0			946.0			672.3			13,098.2
Americas Insolvency
1996-2012			1,038.2			1,021.6			417.3			338.8			208.3			105.3			37.7			8.3			3.9			2.3			1.4			1.1			0.6			2,146.6
2013			227.8			—			52.5			82.6			81.7			63.4			47.8			21.9			2.9			1.3			0.8			0.5			0.3			355.7
2014			148.4			—			—			37.0			50.9			44.3			37.4			28.8			15.8			2.2			1.1			0.7			0.3			218.5
2015			63.2			—			—			—			3.4			17.9			20.1			19.8			16.7			7.9			1.3			0.6			0.3			88.0
2016			91.4			—			—			—			—			18.9			30.4			25.0			19.9			14.4			7.4			1.8			0.7			118.5
2017			275.3			—			—			—			—			—			49.1			97.3			80.9			58.8			44.0			20.8			4.1			355.0
2018			97.9			—			—			—			—			—			—			6.7			27.4			30.5			31.6			24.6			11.0			131.8
2019			123.1			—			—			—			—			—			—			—			13.4			31.4			39.1			37.8			22.7			144.4
2020			62.1			—			—			—			—			—			—			—			—			6.5			16.1			20.4			15.2			58.2
2021			55.2			—			—			—			—			—			—			—			—			—			4.6			17.9			13.4			35.9
2022			33.4			—			—			—			—			—			—			—			—			—			—			3.2			6.7			9.9
2023			72.0			—			—			—			—			—			—			—			—			—			—			—			4.8			4.8
Subtotal			2,288.0			1,021.6			469.8			458.4			344.3			249.8			222.5			207.8			180.9			155.3			147.4			129.4			80.1			3,667.3
Total Americas and Australia			9,045.3			3,984.0			1,126.3			1,211.4			1,189.0			1,086.9			1,083.4			1,152.8			1,322.4			1,427.1			1,354.4			1,075.4			752.4			16,765.5
Europe Core
2012			20.4			11.6			9.0			5.6			3.2			2.2			2.0			2.0			1.4			1.2			1.2			0.9			0.5			40.8
2013			20.3			—			7.1			8.5			2.3			1.3			1.2			1.3			0.9			0.7			0.7			0.5			0.3			24.8
2014 (2)			773.8			—			—			153.2			292.0			246.4			220.8			206.3			172.9			149.8			149.2			122.2			81.5			1,794.3
2015			411.3			—			—			—			45.8			100.3			86.2			80.9			66.1			54.3			51.4			40.7			25.9			551.6
2016			333.1			—			—			—			—			40.4			78.9			72.6			58.0			48.3			46.7			36.9			22.4			404.2
2017			252.2			—			—			—			—			—			17.9			56.0			44.1			36.1			34.8			25.2			15.4			229.5
2018			341.8			—			—			—			—			—			—			24.3			88.7			71.3			69.1			50.7			31.7			335.8
2019			518.6			—			—			—			—			—			—			—			48.0			125.7			121.4			89.8			57.3			442.2
2020			324.1			—			—			—			—			—			—			—			—			32.3			91.7			69.0			43.2			236.2
2021			412.4			—			—			—			—			—			—			—			—			—			48.5			89.9			55.6			194.0
2022			359.4			—			—			—			—			—			—			—			—			—			—			33.9			64.6			98.5
2023			281.4			—			—			—			—			—			—			—			—			—			—			—			29.3			29.3
Subtotal			4,048.8			11.6			16.1			167.3			343.3			390.6			407.0			443.4			480.1			519.7			614.7			559.7			427.7			4,381.2
Europe Insolvency
2014 (2)			10.9			—			—			—			4.3			3.9			3.2			2.6			1.5			0.8			0.3			0.2			0.2			17.0
2015			19.0			—			—			—			3.0			4.4			5.0			4.8			3.9			2.9			1.6			0.6			0.3			26.5
2016			39.3			—			—			—			—			6.2			12.7			12.9			10.7			7.9			6.0			2.7			1.1			60.2
2017			39.2			—			—			—			—			—			1.2			7.9			9.2			9.8			9.4			6.5			3.3			47.3
2018			44.9			—			—			—			—			—			—			0.6			8.4			10.3			11.7			9.8			5.9			46.7
2019			77.2			—			—			—			—			—			—			—			5.0			21.1			23.9			21.0			13.8			84.8
2020			105.4			—			—			—			—			—			—			—			—			6.0			34.6			34.1			23.2			97.9
2021			53.2			—			—			—			—			—			—			—			—			—			5.5			14.4			11.1			31.0
2022			44.6			—			—			—			—			—			—			—			—			—			—			4.5			9.2			13.7
2023			32.2			—			—			—			—			—			—			—			—			—			—			—			2.0			2.0
Subtotal			465.9			—			—			—			7.3			14.5			22.1			28.8			38.7			58.8			93.0			93.8			70.1			427.1
Total Europe			4,514.7			11.6			16.1			167.3			350.6			405.1			429.1			472.2			518.8			578.5			707.7			653.5			497.8			4,808.3
Total PRA Group			$	13,560.0		$	3,995.6		$	1,142.4		$	1,378.7		$	1,539.6		$	1,492.0		$	1,512.5		$	1,625.0		$	1,841.2		$	2,005.6		$	2,062.1		$	1,728.9		$	1,250.2		$	21,573.8

(1)Non-U.S. amounts are presented using the average exchange rates during the cash collection period.

(2)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014 (as described in our 2022 Form 10-K).

(3)Includes the nonperforming loan portfolios that were acquired through our business acquisitions.

(4)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.

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Use of Non-GAAP Financial Measures

PRA Group, Inc. reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internally to evaluate the Company’s performance and to set performance goals. Adjusted EBITDA is calculated as net income attributable to PRA Group, Inc. plus income tax expense; less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; plus impairment of real estate; plus adjustment for net income attributable to noncontrolling interests; and plus recoveries applied to negative allowance less changes in expected recoveries. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. 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 net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2023 and for the year ended December 31, 2022. 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, 2023			December 31, 2022
Net income/(loss) attributable to PRA Group, Inc.			$	(59)		$	117
Adjustments:
Income tax expense			(8)			37
Foreign exchange gains			(1)			(1)
Interest expense, net			166			131
Other expense			2			1
Depreciation and amortization			14			15
Impairment of real estate			5			—
Adjustment for net income attributable to noncontrolling interests			15			1
Recoveries applied to negative allowance less Changes in expected recoveries			864			806
Adjusted EBITDA			$	998		$	1,107

Additionally, the Company evaluates its business using certain ratios that use Adjusted EBITDA. Debt to Adjusted EBITDA is calculated by dividing borrowings by Adjusted EBITDA. The following table reflects the Company's Debt to Adjusted EBITDA for the LTM as of September 30, 2023 and for the year ended December 31, 2022 ($ in millions):

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Debt to Adjusted EBITDA
			LTM			For the Year Ended
			September 30, 2023			December 31, 2022
Borrowings			$	2,832		$	2,495
LTM Adjusted EBITDA			998			1,107
Debt to LTM Adjusted EBITDA			2.84			2.25

Investor Contact:

Najim Mostamand, CFA

Vice President, Investor Relations

757-431-7913

[email protected]

News Media Contact:

Elizabeth Kersey

Senior Vice President, Communications and Public Policy

(757) 641-0558

[email protected]