praa-20240506
false000118534800011853482024-05-062024-05-06

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):May 6, 2024
PRA Group, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
Delaware000-5005875-3078675
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
120 Corporate Boulevard
Norfolk, Virginia23502
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ 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.☐



Item 2.02 Results of Operations and Financial Condition.

On May 6, 2024, PRA Group, Inc. (the “Company”) issued a press release announcing its first quarter 2024 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 May 6, 2024 webcast and conference call to discuss its first quarter 2024 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
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




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: May 6, 2024By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer






PRA Group Reports First Quarter 2024 Results

Accelerated Turnaround of U.S. Business Continuing to Gain Momentum

NORFOLK, Va., May 6, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2024 ("Q1 2024").

Q1 2024 Highlights
•Total portfolio purchases of $245.8 million.
•Total cash collections of $449.5 million.
•Estimated remaining collections (ERC)1 of $6.5 billion.
•Cash efficiency ratio2 of 58.0%.
•Diluted earnings per share of $0.09.
•Debt to Adjusted EBITDA3 for the 12 months ended March 31, 2024 was 2.83x.
•Total availability under the Company's credit facilities as of March 31, 2024 was $1.2 billion, comprised of $366.9 million based on current ERC and $855.2 million of additional availability subject to borrowing base and debt covenants, including advance rates.

Three Months Ended March 31,
($ in thousands, except per share amounts)20242023
Net income/(loss) attributable to PRA Group, Inc.$3,475 $(58,629)
Diluted earnings per share$0.09 $(1.50)

“We began 2024 on a positive note, and are well-positioned to achieve our financial and operational targets for the full year. Building on the momentum from last year, the first quarter demonstrated continued progress as we drive the turnaround and deliver substantially improved results," said Vikram Atal, president and chief executive officer. "Total cash collections of $450 million were up 9% year-over-year, reflecting higher portfolio purchases and the impact of our cash-generating and operational initiatives. Looking ahead, we are keenly focused on expanding profitability and delivering shareholder value."

1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
2.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.
3.A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release.

Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:

Cash Collection Source20242023
($ in thousands)Q1Q4Q3Q2Q1
Americas and Australia Core$256,861 $220,127 $223,714 $220,886 $227,960 
Americas Insolvency25,209 24,293 27,809 26,384 25,751 
Europe Core145,933 144,361 144,402 149,324 134,005 
Europe Insolvency21,515 21,502 23,639 22,725 23,568 
Total Cash Collections$449,518 $410,283 $419,564 $419,319 $411,284 
Cash Collection Source -
Constant Currency-Adjusted20242023
($ in thousands)Q1Q1
Americas and Australia Core$256,861 $230,382 
Americas Insolvency25,209 25,752 
Europe Core145,933 138,330 
Europe Insolvency21,515 24,580 
Total Cash Collections$449,518 $419,044 

•Total cash collections in Q1 2024 increased 9.3%, or 7.3% on a constant currency-adjusted basis, to $449.5 million compared to $411.3 million in the first quarter of 2023 ("Q1 2023"). The increase was driven by higher cash collections in our U.S., Europe, and Brazil Core portfolios.
•Total portfolio revenue in Q1 2024 was $253.7 million compared to $151.3 million in Q1 2023.

Three Months Ended March 31,
($ in thousands)20242023
Portfolio income$202,056 $188,242 
Changes in expected future recoveries $15,836 $(40,750)
Recoveries received in excess of forecast35,838 3,838 
Changes in expected recoveries$51,674 $(36,912)
Total portfolio revenue$253,730 $151,330 

Expenses
•Operating expenses in Q1 2024 increased $0.1 million, or 0.1%, to $189.2 million compared to $189.1 million in Q1 2023.
◦Compensation and employee services expenses decreased $8.8 million, primarily due to $7.5 million in severance expenses in Q1 2023.
◦Legal collection fees increased $3.3 million, primarily due to higher external legal collections within our U.S. Core portfolio.
◦Legal collection costs increased $2.8 million, primarily due to higher volumes of lawsuits filed in Europe, as well as the costs associated with our legal cash-generating initiatives in the U.S.
◦Agency fees increased $2.3 million, primarily due to higher cash collections in Brazil.
◦Communication expenses increased $2.1 million, primarily due to higher account volumes.


•Interest expense, net in Q1 2024 was $52.3 million, an increase of $14.0 million, or 36.6%, compared to $38.3 million in Q1 2023, primarily reflecting a higher average debt balance and increased interest rates.
•The effective tax rate for Q1 2024 was 16.9%.

Portfolio Acquisitions
•The Company purchased $245.8 million in portfolios of nonperforming loans in Q1 2024.
•At the end of Q1 2024, the Company had in place estimated forward flow commitments1 of $473.9 million over the next 12 months, comprised of $375.8 million in the Americas and Australia and $98.1 million in Europe.
Portfolio Purchase Source20242023
($ in thousands)Q1Q4Q3Q2Q1
Americas & Australia Core$174,660 $143,052 $187,554 $171,440 $116,867 
Americas Insolvency22,156 18,608 44,279 12,189 15,701 
Europe Core43,997 110,780 60,628 136,834 90,454 
Europe Insolvency5,004 12,476 18,722 7,296 7,203 
Total Portfolio Acquisitions$245,817 $284,916 $311,183 $327,759 $230,225 

2024 Financial and Operational Targets
The Company reiterates its expectation to achieve the following financial and operational targets for full year 2024:

•Strong portfolio investment levels
•Double-digit cash collections growth
•Modest expense growth
•60%+ cash efficiency ratio
•6% - 8% return on average tangible equity2

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 6, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 41062# until May 13, 2024.

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

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




1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months based on projections and other factors, including sellers' estimates of future flows sales, and are dependent on actual delivery by the sellers. Accordingly, amounts purchased under these agreements may vary significantly.
2.A reconciliation of total stockholders' equity – PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to average tangible equity can be found at the end of this press release.




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.
Unaudited Consolidated Income Statements
(Amounts in thousands, except per share amounts)
Three Months Ended March 31,
20242023
Revenues:
Portfolio income$202,056 $188,242 
Changes in expected recoveries51,674 (36,912)
Total portfolio revenue253,730 151,330 
Other revenue1,856 4,140 
Total revenues255,586 155,470 
Operating expenses:
Compensation and employee services73,597 82,403 
Legal collection fees12,112 8,838 
Legal collection costs26,691 23,945 
Agency fees19,723 17,378 
Outside fees and services25,050 24,944 
Communication12,578 10,527 
Rent and occupancy4,144 4,448 
Depreciation and amortization2,720 3,589 
Other operating expenses12,575 13,042 
Total operating expenses189,190 189,114 
    Income/(loss) from operations66,396 (33,644)
Other income and (expense):
Interest expense, net(52,278)(38,283)
Foreign exchange gain/(loss), net227 (9)
Other(206)(650)
Income/(loss) before income taxes14,139 (72,586)
Income tax expense/(benefit)2,386 (18,683)
Net income/(loss)11,753 (53,903)
Adjustment for net income attributable to noncontrolling interests8,278 4,726 
Net income/(loss) attributable to PRA Group, Inc.$3,475 $(58,629)
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic$0.09 $(1.50)
Diluted$0.09 $(1.50)
Weighted average number of shares outstanding:
Basic39,274 39,033 
Diluted39,448 39,033 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
March 31,
2024		December 31,
2023
Assets
Cash and cash equivalents$108,100 $112,528 
Investments58,879 72,404 
Finance receivables, net3,650,195 3,656,598 
Income taxes receivable32,067 27,713 
Deferred tax assets, net78,883 74,694 
Right-of-use assets44,187 45,877 
Property and equipment, net34,054 36,450 
Goodwill411,846 431,564 
Other assets63,971 67,526 
Total assets$4,482,182 $4,525,354 
Liabilities and Equity
Liabilities:
Accounts payable$10,814 $6,325 
Accrued expenses98,902 131,893 
Income taxes payable23,541 17,912 
Deferred tax liabilities, net16,888 17,051 
Lease liabilities48,557 50,300 
Interest-bearing deposits113,259 115,589 
Borrowings2,953,048 2,914,270 
Other liabilities20,855 32,638 
Total liabilities3,285,864 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, 39,345 shares issued and outstanding as of March 31, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023393 392 
Additional paid-in capital8,928 7,071 
Retained earnings1,493,023 1,489,548 
Accumulated other comprehensive loss(373,018)(329,899)
Total stockholders' equity - PRA Group, Inc.1,129,326 1,167,112 
Noncontrolling interests66,992 72,264 
Total equity1,196,318 1,239,376 
Total liabilities and equity$4,482,182 $4,525,354 






Select Expenses (Income)
Amounts in thousands, pre-tax
Three Months Ended
March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022
Noncash interest expense - amortization of debt issuance costs2,200 2,177 2,220 2,384 2,441 2,444 2,555 2,471 
Change in fair value of derivatives(5,930)(6,734)(6,545)(6,960)(5,470)(3,309)(1,042)1,525 
Amortization of intangibles60 69 69 68 66 73 73 77 
Impairment of real estate— 202 5,037 — — — — — 
Stock-based compensation expense3,327 2,952 1,629 2,715 3,799 2,206 3,101 3,849 




Purchase Price Multiples
as of March 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
1996-2013$1,932,722 $5,735,181 $53,058 297%233%
2014404,117 887,557 26,537 220%204%
2015443,114 903,490 35,096 204%205%
2016455,767 1,081,231 61,791 237%201%
2017532,851 1,204,662 98,626 226%193%
2018653,975 1,495,710 144,303 229%202%
2019581,476 1,294,975 159,210 223%206%
2020435,668 952,081 189,210 219%213%
2021435,846 745,705 325,686 171%191%
2022406,082 712,575 417,252 175%179%
2023622,583 1,227,658 1,038,459 197%197%
2024174,596 368,538 362,801 211%211%
Subtotal7,078,797 16,609,363 2,912,029 
Americas Insolvency
1996-20131,266,056 2,502,843 54 198%159%
2014148,420 218,846 67 147%124%
201563,170 88,037 51 139%125%
201691,442 118,193 268 129%123%
2017275,257 357,959 1,435 130%125%
201897,879 135,560 1,013 138%127%
2019123,077 168,504 12,379 137%128%
202062,130 91,371 24,293 147%136%
202155,187 73,991 29,902 134%136%
202233,442 46,945 31,961 140%139%
202391,282 120,803 105,383 132%135%
202422,156 33,077 32,692 149%149%
Subtotal2,329,498 3,956,129 239,498 
Total Americas and Australia9,408,295 20,565,492 3,151,527 
Europe Core
2012-201340,742 72,345 1 178%153%
2014773,811 2,551,509 431,677 330%208%
2015411,340 750,954 138,612 183%160%
2016333,090 578,002 161,067 174%167%
2017252,174 368,260 105,187 146%144%
2018341,775 548,888 186,849 161%148%
2019518,610 843,205 334,701 163%152%
2020324,119 564,901 247,220 174%172%
2021412,411 698,784 399,930 169%170%
2022359,447 583,939 460,431 162%162%
2023410,593 693,985 603,457 169%169%
202443,809 82,653 81,224 189%189%
Subtotal4,221,921 8,337,425 3,150,356 
Europe Insolvency
201410,876 18,933 — 174%129%
201518,973 29,335 — 155%139%
201639,338 57,747 742 147%130%
201739,235 52,006 1,517 133%128%
201844,908 52,670 3,747 117%123%
201977,218 112,606 17,421 146%130%
2020105,440 156,347 35,698 148%129%
202153,230 73,023 29,947 137%134%
202244,604 61,163 43,051 137%137%
202346,558 64,359 56,671 138%138%
20244,978 7,530 7,495 151%151%
Subtotal485,358 685,719 196,289 
Total Europe4,707,279 9,023,144 3,346,645 
Total PRA Group$14,115,574 $29,588,636 $6,498,172 
(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 March 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
March 31, 2024 (year-to-date)As of March 31, 2024
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Change in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables (3)
Americas and Australia Core
1996-2013$9,021 $3,462 $5,949 $9,411 $16,050 
20143,410 1,423 1,852 3,275 10,235 
20154,262 1,713 2,582 4,294 15,130 
20166,247 3,288 1,994 5,282 20,969 
201710,450 4,796 3,180 7,976 40,703 
201821,334 7,599 8,233 15,833 78,949 
201922,567 9,256 2,710 11,966 89,544 
202026,730 10,437 1,040 11,478 105,887 
202129,841 14,658 (3,302)11,356 171,251 
202243,687 18,510 421 18,930 254,765 
202373,573 45,156 8,060 53,215 565,671 
20245,739 4,114 974 5,086 173,900 
Subtotal256,861 124,412 33,693 158,102 1,543,054 
Americas Insolvency
1996-2013267 37 231 268 — 
201464 30 38 68 — 
201550 11 28 39 28 
2016194 11 186 197 231 
2017805 46 1,028 1,074 1,280 
2018956 48 17 65 967 
20195,719 399 (158)240 11,825 
20204,612 762 672 1,434 21,843 
20214,090 885 193 1,079 25,851 
20222,634 846 130 976 26,191 
20235,432 2,984 (1,004)1,981 80,736 
2024386 353 19 372 22,142 
Subtotal25,209 6,412 1,380 7,793 191,094 
Total Americas and Australia282,070 130,824 35,073 165,895 1,734,148 
Europe Core
2012-2013281 — 281 281 — 
201424,056 16,757 6,329 23,086 97,667 
20157,696 3,524 1,324 4,848 68,718 
20166,809 3,351 1,410 4,762 90,482 
20174,609 1,745 688 2,434 70,014 
20189,554 3,534 (143)3,392 121,309 
201917,474 5,802 2,086 7,888 225,375 
202012,662 4,951 1,190 6,141 152,642 
202117,293 7,418 1,470 8,888 241,757 
202218,662 7,916 273 8,190 288,841 
202325,401 11,317 401 11,718 354,946 
20241,436 369 563 932 43,288 
Subtotal145,933 66,684 15,872 82,560 1,755,039 
Europe Insolvency
201445 — 45 45 — 
201560 2 31 33 — 
2016250 36 69 105 278 
2017488 42 8 50 1,296 
20181,080 88 9 97 3,393 
20193,710 428 316 743 15,271 
20206,272 847 (285)561 32,321 
20213,485 746 208 954 25,897 
20223,332 1,025 227 1,252 34,421 
20232,760 1,315 75 1,390 43,143 
202433 19 26 45 4,988 
Subtotal21,515 4,548 729 5,275 161,008 
Total Europe167,448 71,232 16,601 87,835 1,916,047 
Total PRA Group$449,518 $202,056 $51,674 $253,730 $3,650,195 
(1)    Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.
(3)Non-U.S. amounts are presented at the March 31, 2024 exchange rate.







Cash Collections by Year, By Year of Purchase (1)
as of March 31, 2024
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (2)(3)
1996-201320142015201620172018201920202021202220232024Total
Americas and Australia Core
1996-2013$1,932.7 $3,618.9 $660.3 $474.4 $299.7 $197.0 $140.3 $99.7 $64.7 $46.5 $36.0 $28.4 $9.0 $5,674.9 
2014404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 3.4 852.5 
2015443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 4.3 871.5 
2016455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 6.2 980.0 
2017532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 10.4 1095.5 
2018654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 21.3 1322.5 
2019581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 22.6 1093.2 
2020435.7 — — — — — — — 132.9 284.3 192.0 125.8 26.7 761.7 
2021435.8— — — — — — — — 85.0 177.3 136.8 29.8 428.9 
2022406.1 — — — — — — — — — 67.7 195.4 43.7 306.8 
2023622.6 — — — — — — — — — — 108.4 73.6 182.0 
2024174.5 — — — — — — — — — — — 5.9 5.9 
Subtotal7,078.8 3,618.9 753.0 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.6 256.9 13,575.4 
Americas Insolvency
1996-20131,266.1 1,491.4 421.4 289.9 168.7 85.5 30.3 6.8 3.6 2.2 1.6 1.1 0.3 2,502.8 
2014148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 0.1 218.7 
201563.2 — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.1 88.1 
201691.4 — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.2 118.9 
2017275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 0.8 356.6 
201897.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 1.0 134.5 
2019123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 5.7 156.1 
202062.1 — — — — — — — 6.5 16.1 20.4 19.5 4.6 67.1 
202155.2 — — — — — — — — 4.6 17.9 17.5 4.1 44.1 
202233.4 — — — — — — — — — 3.2 9.2 2.6 15.0 
202391.3 — — — — — — — — — — 9.2 5.4 14.6 
202422.1 — — — — — — — — — — — 0.3 0.3 
Subtotal2,329.5 1,491.4 458.4 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.4 25.2 3,716.8 
Total Americas and Australia9,408.3 5,110.3 1,211.4 1,189.0 1,086.9 1,083.4 1,153.0 1,322.3 1,427.1 1,354.3 1,075.4 997.0 282.1 17,292.2 
Europe Core
2012-201340.7 27.7 14.2 5.5 3.5 3.3 3.3 2.4 1.9 1.8 1.4 1.0 0.3 66.3 
2014773.8 — 153.2 292.0 246.4 220.8 206.3 172.9 149.8 149.2 122.2 107.6 24.1 1,844.5 
2015411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 7.7 567.2 
2016333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 6.8 418.3 
2017252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 4.6 238.9 
2018341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 9.6 355.3 
2019518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 17.5 477.5 
2020324.1 — — — — — — — 32.3 91.7 69.0 56.1 12.7 261.8 
2021412.4 — — — — — — — — 48.5 89.9 73.0 17.3 228.7 
2022359.4 — — — — — — — — — 33.9 83.8 18.7 136.4 
2023410.6 — — — — — — — — — — 50.3 25.4 75.7 
202443.9 — — — — — — — — — — — 1.2 1.2 
Subtotal4,221.9 27.7 167.4 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.2 145.9 4,671.8 
Europe Insolvency
201410.9 — — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 — 17.0 
201519.0 — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.1 26.7 
201639.3 — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.3 60.7 
201739.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 0.5 48.3 
201844.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 1.1 49.1 
201977.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 3.7 92.2 
2020105.4 — — — — — — — 6.0 34.6 34.1 29.7 6.3 110.7 
202153.2 — — — — — — — — 5.5 14.4 14.7 3.3 37.9 
202244.6 — — — — — — — — — 4.5 12.4 3.5 20.4 
202346.6 — — — — — — — — — — 4.3 2.7 7.0 
20245.0 — — — — — — — — — — — — — 
Subtotal485.4 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.5 21.5 470.0 
Total Europe4,707.3 27.7 167.4 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.7 167.4 5,141.8 
Total PRA Group$14,115.6 $5,138.0 $1,378.8 $1,539.6 $1,492.0 $1,512.6 $1,625.2 $1,841.2 $2,005.6 $2,061.9 $1,728.9 $1,660.7 $449.5 $22,434.0 
(1)Non-U.S. amounts are presented using the average exchange rates during the cash collection period.
(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.
(3)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.




Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internally to evaluate the Company’s performance and to set performance goals. Adjusted EBITDA is calculated as net income attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); 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. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of operations and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of operations and financial performance and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Set forth below is a reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended March 31, 2024 and for the year ended December 31, 2023. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.

Reconciliation of Non-GAAP Financial Measures
LTMFor the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)March 31, 2024December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.$(21)$(83)
Adjustments:
Income tax expense/(benefit)5 (16)
Foreign exchange gain(1)— 
Interest expense, net196 181 
Other expense2 2 
Depreciation and amortization13 13 
Impairment of real estate5 5 
Adjustment for net income attributable to noncontrolling interests20 17 
Recoveries applied to negative allowance less Changes in expected recoveries825 888 
Adjusted EBITDA$1,044 $1,007 

The Company also 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 March 31, 2024 and for the year ended December 31, 2023 ($ in millions):

Debt to Adjusted EBITDA
LTMFor the Year Ended
March 31, 2024December 31, 2023
Borrowings$2,953 $2,914 
Adjusted EBITDA1,044 1,007 
Debt to Adjusted EBITDA2.83 2.89 







In addition, the Company uses return on average tangible equity (ROATE), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity ("ATE") is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by ATE. The following table displays the Company's ROATE and provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to ATE for the periods indicated (amounts in thousands, except for ratio data):

Return on Average Tangible Equity
Period EndedAveragePeriod EndedAverage
March 31, 2024December 31, 2023First Quarter 2024March 31, 2023December 31, 2022First Quarter 2023
Total stockholders' equity - PRA Group, Inc.$1,129,326 $1,167,112 $1,148,219 $1,158,343 $1,227,661 $1,193,002 
Less: Goodwill411,846 431,564 421,705 420,647 435,921 428,284 
Less: Other intangible assets1,666 1,742 1,704 1,833 1,847 1,840 
Average tangible equity$724,810 $762,878 
First Quarter 2024First Quarter 2023
Net income/(loss) attributable to PRA Group, Inc.$3,475 $(58,629)
Return on average tangible equity (1)
1.9%(30.7)%

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
1.Based on annualized Net income/(loss) attributable to PRA Group, Inc.