praa-20240805

PRA Group Reports Second Quarter 2024 Results

Executing Successful Turnaround in U.S. Business

NORFOLK, Va., August 5, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2024 ("Q2 2024").

Q2 2024 Highlights

•Net income attributable to PRA Group, Inc. of $21.5 million, or diluted earnings per share of $0.54.

•Total portfolio purchases of $379.4 million.

•Total cash collections of $473.9 million.

•Estimated remaining collections (ERC)1 of $6.8 billion.

•Cash efficiency ratio2 of 58.9%.

•Adjusted EBITDA3 for the 12 months ended June 30, 2024 of $1.1 billion.



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands, except per share amounts)	2024		2023		2024		2023
Net income/(loss) attributable to PRA Group, Inc.	$	21,516	$	(3,804)	$	24,991	$	(62,433)
Diluted earnings per share	$	0.54	$	(0.10)	$	0.63	$	(1.60)

“The second quarter was another important step in demonstrating the turnaround in our U.S. business, delivering against our financial and operational targets for 2024, and positioning the Company for future growth," said Vikram Atal, president and chief executive officer. "We invested $379 million during the quarter, which represents our third highest quarterly level of purchases over the past five years. This was driven by the continued strength of U.S. portfolio supply coupled with stronger supply in Europe this quarter, with pricing remaining attractive globally. Cash collections grew 13% year-over-year, primarily reflecting higher recent purchases and the positive impact of our cash-generating and operational initiatives in our U.S. business, particularly in our legal collections channel where we have been investing for growth. We also experienced continued cash collections growth in our European business. Our net income for the quarter reflects the progress we have made in executing the turnaround with speed across a broad set of initiatives. Looking ahead, we remain focused on sustaining profitability and positioning the Company for attractive growth in the years to come."

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 Source	2024				2023
($ in thousands)	Q2		Q1		Q4		Q3		Q2
Americas and Australia Core	$	263,828	$	256,861	$	220,127	$	223,714	$	220,886
Americas Insolvency	26,971		25,209		24,293		27,809		26,384
Europe Core	156,739		145,933		144,361		144,402		149,324
Europe Insolvency	26,344		21,515		21,502		23,639		22,725
Total cash collections	$	473,882	$	449,518	$	410,283	$	419,564	$	419,319



Cash Collection Source -
Constant Currency-Adjusted	2024								2023
($ in thousands)	Q2								Q2
Americas and Australia Core	$	263,828							$	219,118
Americas Insolvency	26,971								26,377
Europe Core	156,739								149,889
Europe Insolvency	26,344								22,888
Total Cash collections	$	473,882							$	418,272

•Total cash collections in Q2 2024 increased 13.0% to $473.9 million compared to $419.3 million in the second quarter of 2023 ("Q2 2023"). The increase was primarily driven by higher cash collections in the U.S. and Europe. For the six months ended June 30, 2024, cash collections increased $92.8 million, or 11.2%, compared to the same period last year.

•Total portfolio revenue in Q2 2024 increased 37.6% to $282.6 million compared to $205.4 million in Q2 2023. For the six months ended June 30, 2024, total portfolio revenue increased 50.3% to $536.3 million compared to $356.8 million in the same period last year.



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2024		2023		2024		2023
Portfolio income	$	209,290	$	184,290	$	411,346	$	372,532
Recoveries received in excess of forecast	$	54,260	$	25,348	$	90,098	$	29,186
Changes in expected future recoveries	19,060		(4,212)		34,896		(44,962)
Changes in expected recoveries	$	73,320	$	21,136	$	124,994	$	(15,776)
Total portfolio revenue	$	282,610	$	205,426	$	536,340	$	356,756

Expenses

•Operating expenses in Q2 2024 increased $31.3 million, or 19.1%, to $195.0 million compared to $163.7 million in Q2 2023.

◦Legal collection costs increased $13.8 million, primarily due to increased investments in our U.S. legal channel to drive future cash growth, as well as expansion of legal collections activities in Europe.

◦Compensation and employee services expenses increased $8.5 million, primarily due to lower compensation accruals in Q2 2023.

◦Legal collection fees increased $4.2 million, due to higher external legal collections in our U.S. Core portfolio.

•For the six months ended June 30, 2024, operating expenses increased by $31.4 million, or 8.9%, compared to the same period last year.

•Interest expense, net in Q2 2024 was $55.4 million, an increase of $12.3 million, or 28.7%, compared to $43.0 million in Q2 2023, reflecting increased interest rates and a higher average debt balance.

•The effective tax rate for the six months ended June 30, 2024 was 23.1%.

Portfolio Acquisitions

•The Company purchased $379.4 million in portfolios of nonperforming loans in Q2 2024.

•At the end of Q2 2024, the Company had in place estimated forward flow commitments1 of $385.6 million over the next 12 months, comprised of $272.1 million in the Americas and Australia and $113.5 million in Europe.



Portfolio Purchase Source	2024				2023
($ in thousands)	Q2		Q1		Q4		Q3		Q2
Americas & Australia Core	$	198,761	$	174,660	$	143,052	$	187,554	$	171,440
Americas Insolvency	26,627		22,156		18,608		44,279		12,189
Europe Core	127,991		43,997		110,780		60,628		136,834
Europe Insolvency	25,990		5,004		12,476		18,722		7,296
Total portfolio acquisitions	$	379,369	$	245,817	$	284,916	$	311,183	$	327,759

Credit Availability

•Total availability under the Company's credit facilities as of June 30, 2024 was $1.4 billion, comprised of $741.9 million based on current ERC and $706.6 million of additional availability subject to borrowing base and debt covenants, including advance rates.

•The Company intends to borrow $298.0 million under its North American revolving credit agreement on or about September 1, 2024 to redeem its Senior Notes due 2025, which, all other effects being equal, would cause a corresponding decrease to the availability under its credit facilities.

2024 Financial and Operational Targets

The Company expects to achieve the following financial and operational targets for full year 2024:

•Strong portfolio investment levels

•Double-digit cash collections 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 August 5, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 71248# until August 12, 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.

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 under the agreements in place, based on projections and other factors, including sellers' estimates of future flow 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.

About Forward Looking Statements

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

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

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

PRA Group, Inc.

Unaudited Consolidated Income Statements

(Amounts in thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues:
Portfolio income	$	209,290	$	184,290	$	411,346	$	372,532
Changes in expected recoveries	73,320		21,136		124,994		(15,776)
Total portfolio revenue	282,610		205,426		536,340		356,756
Other revenue	1,619		3,810		3,475		7,950
Total revenues	284,229		209,236		539,815		364,706
Operating expenses:
Compensation and employee services	74,241		65,788		147,838		148,191
Legal collection fees	13,762		9,551		25,874		18,389
Legal collection costs	35,274		21,522		61,965		45,467
Agency fees	21,008		17,677		40,731		35,055
Outside fees and services	18,124		18,262		43,174		43,206
Communication	11,577		10,117		24,155		20,644
Rent and occupancy	4,136		4,319		8,280		8,767
Depreciation and amortization	2,637		3,482		5,357		7,071

Other operating expenses	14,248		12,957		26,823		25,999

Total operating expenses	195,007		163,675		384,197		352,789

Income from operations	89,222		45,561		155,618		11,917
Other income and (expense):

Interest expense, net	(55,353)		(43,022)		(107,631)		(81,305)

Foreign exchange gain/(loss), net	(99)		429		128		420
Other	46		(230)		(160)		(880)
Income/(loss) before income taxes	33,816		2,738		47,955		(69,848)

Income tax expense/(benefit)	8,702		1,578		11,088		(17,105)
Net income/(loss)	25,114		1,160		36,867		(52,743)
Adjustment for net income attributable to noncontrolling interests	3,598		4,964		11,876		9,690
Net income/(loss) attributable to PRA Group, Inc.	$	21,516	$	(3,804)	$	24,991	$	(62,433)
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic	$	0.55	$	(0.10)	$	0.64	$	(1.60)
Diluted	$	0.54	$	(0.10)	$	0.63	$	(1.60)
Weighted average number of shares outstanding:
Basic	39,364		39,190		39,319		39,111
Diluted	39,546		39,190		39,497		39,111

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)


	(unaudited)
	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	118,865	$	112,528

Investments	59,619		72,404
Finance receivables, net	3,820,186		3,656,598
Income taxes receivable	34,813		27,713
Deferred tax assets, net	76,486		74,694
Right-of-use assets	42,374		45,877
Property and equipment, net	32,827		36,450
Goodwill	415,646		431,564
Other assets	61,124		67,526
Total assets	$	4,661,940	$	4,525,354
Liabilities and Equity
Liabilities:
Accounts payable	$	10,198	$	6,325
Accrued expenses	114,260		131,893
Income taxes payable	23,583		17,912
Deferred tax liabilities, net	18,423		17,051
Lease liabilities	46,746		50,300
Interest-bearing deposits	114,991		115,589
Borrowings	3,113,777		2,914,270
Other liabilities	16,684		32,638
Total liabilities	3,458,662		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, 39,417 shares issued and outstanding as of June 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023	394		392
Additional paid-in capital	12,339		7,071
Retained earnings	1,514,539		1,489,548
Accumulated other comprehensive loss	(381,809)		(329,899)
Total stockholders' equity - PRA Group, Inc.	1,145,463		1,167,112
Noncontrolling interests	57,815		72,264
Total equity	1,203,278		1,239,376
Total liabilities and equity	$	4,661,940	$	4,525,354


Select Expenses (Income) Amounts in thousands, pre-tax

	Three Months Ended
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022




Noncash interest expense - amortization of debt issuance costs	$	2,331	$	2,200	$	2,177	$	2,220	$	2,384	$	2,441	$	2,444	$	2,555
Change in fair value of derivatives	(5,628)		(5,930)		(6,734)		(6,545)		(6,960)		(5,470)		(3,309)		(1,042)
Amortization of intangibles	58		60		69		69		68		66		73		73
Impairment of real estate	—		—		202		5,037		—		—		—		—
Stock-based compensation expense	3,555		3,327		2,952		1,629		2,715		3,799		2,206		3,101


Purchase Price Multiples as of June 30, 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	$	5,745,296	$	54,130	297%	233%
2014	404,117		893,611		28,903		221%	204%
2015	443,114		912,525		39,549		206%	205%
2016	455,767		1,088,320		60,856		239%	201%
2017	532,851		1,209,023		92,474		227%	193%
2018	653,975		1,508,340		134,993		231%	202%
2019	581,476		1,302,954		143,944		224%	206%
2020	435,668		952,248		165,787		219%	213%
2021	435,846		740,020		286,888		170%	191%
2022	406,082		707,943		364,784		174%	179%
2023	622,583		1,224,773		948,003		197%	197%
2024	373,421		787,310		759,217		211%	211%
Subtotal	7,277,622		17,072,363		3,079,528
Americas Insolvency
1996-2013	1,266,056		2,503,066		26		198%	159%
2014	148,420		218,933		46		148%	124%
2015	63,170		88,083		35		139%	125%
2016	91,442		118,282		232		129%	123%
2017	275,257		358,452		1,185		130%	125%
2018	97,879		136,147		942		139%	127%
2019	123,077		168,485		7,765		137%	128%
2020	62,130		91,590		20,018		147%	136%
2021	55,187		74,273		26,054		135%	136%
2022	33,442		47,143		29,305		141%	139%
2023	91,282		120,038		97,797		132%	135%
2024	48,783		71,770		68,932		147%	147%
Subtotal	2,356,125		3,996,262		252,337
Total Americas and Australia	9,633,747		21,068,625		3,331,865
Europe Core
2012-2013	40,742		72,662		1		178%	153%
2014	773,811		2,564,807		415,481		331%	208%
2015	411,340		755,061		134,415		184%	160%
2016	333,090		579,777		156,278		174%	167%
2017	252,174		369,070		101,373		146%	144%
2018	341,775		557,913		185,378		163%	148%
2019	518,610		848,086		321,430		164%	152%
2020	324,119		568,114		237,561		175%	172%
2021	412,411		701,265		387,655		170%	170%
2022	359,447		584,036		440,058		162%	162%
2023	410,593		692,794		574,106		169%	169%
2024	170,988		312,073		304,681		183%	183%
Subtotal	4,349,100		8,605,658		3,258,417
Europe Insolvency
2014	10,876		18,979		—		175%	129%
2015	18,973		29,381		—		155%	139%
2016	39,338		57,841		617		147%	130%
2017	39,235		51,992		1,116		133%	128%
2018	44,908		52,649		2,887		117%	123%
2019	77,218		113,418		14,448		147%	130%
2020	105,440		157,743		29,880		150%	129%
2021	53,230		73,783		26,655		139%	134%
2022	44,604		61,840		39,949		139%	137%
2023	46,558		64,255		53,764		138%	138%
2024	30,994		45,761		42,648		147%	147%
Subtotal	511,374		727,642		211,964
Total Europe	4,860,474		9,333,300		3,470,381
Total PRA Group	$	14,494,221	$	30,401,925	$	6,802,246

(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 June 30, 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
	June 30, 2024 (year-to-date)								As of June 30, 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	$	18,065	$	7,042	$	11,887	$	18,929	$	16,523
2014	7,024		2,805		4,887		7,692		11,018
2015	8,806		3,405		7,303		10,708		16,993
2016	12,623		6,530		5,537		12,067		21,359
2017	20,755		9,295		6,625		15,920		38,305
2018	41,881		14,656		17,007		31,663		73,826
2019	43,863		17,389		7,800		25,189		80,381
2020	50,041		19,482		2,557		22,039		92,936
2021	56,615		27,707		(5,049)		22,658		152,803
2022	82,963		34,964		(3,612)		31,352		221,981
2023	149,967		87,582		13,175		100,757		531,229
2024	28,086		22,132		6,431		28,563		373,386
Subtotal	520,689		252,989		74,548		327,537		1,630,740
Americas Insolvency
1996-2013	518		65		454		519		—
2014	170		52		122		174		—
2015	112		19		74		93		20
2016	317		22		269		291		201
2017	1,548		104		1,493		1,597		1,060
2018	1,613		73		570		643		886
2019	10,306		663		(212)		451		7,445
2020	9,106		1,419		889		2,308		18,223
2021	8,214		1,670		501		2,171		22,789
2022	5,489		1,637		336		1,973		24,327
2023	11,945		5,781		(790)		4,991		76,235
2024	2,841		1,912		294		2,206		47,843
Subtotal	52,179		13,417		4,000		17,417		199,029
Total Americas and Australia	572,868		266,406		78,548		344,954		1,829,769
Europe Core
2012-2013	525		—		525		525		—
2014	50,594		35,965		13,941		49,906		97,962
2015	15,663		6,867		4,052		10,919		66,674
2016	13,878		6,576		2,459		9,035		88,195
2017	9,368		3,410		1,057		4,467		67,454
2018	19,334		6,884		3,837		10,721		118,792
2019	34,697		11,337		5,331		16,668		216,535
2020	25,522		9,654		2,912		12,566		146,420
2021	34,155		14,494		3,181		17,675		235,125
2022	39,130		15,455		755		16,210		276,388
2023	52,395		22,109		910		23,019		338,599
2024	7,411		2,770		1,803		4,573		167,839
Subtotal	302,672		135,521		40,763		176,284		1,819,983
Europe Insolvency
2014	86		—		86		86		—
2015	99		2		70		72		—
2016	468		64		166		230		184
2017	874		73		(5)		68		928
2018	1,919		155		(14)		141		2,599
2019	7,495		782		1,100		1,882		12,648
2020	13,446		1,559		1,011		2,570		27,211
2021	7,542		1,420		910		2,330		23,263
2022	7,167		1,984		915		2,899		32,264
2023	5,656		2,578		50		2,628		41,559
2024	3,108		802		1,394		2,196		29,778
Subtotal	47,860		9,419		5,683		15,102		170,434
Total Europe	350,532		144,940		46,446		191,386		1,990,417
Total PRA Group	$	923,400	$	411,346	$	124,994	$	536,340	$	3,820,186

(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 June 30, 2024 exchange rate.


Cash Collections by Year, By Year of Purchase (1) as of June 30, 2024 Amounts in millions
			Cash Collections
Purchase Period	Purchase Price (2)(3)		1996-2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		Total
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	$	18.1	$	5,684.0
2014	404.1		—		92.7		253.4		170.3		114.2		82.2		55.3		31.9		22.3		15.0		11.8		7.0		856.1
2015	443.1		—		—		117.0		228.4		185.9		126.6		83.6		57.2		34.9		19.5		14.1		8.8		876.0
2016	455.8		—		—		—		138.7		256.5		194.6		140.6		105.9		74.2		38.4		24.9		12.6		986.4
2017	532.9		—		—		—		—		107.3		278.7		256.5		192.5		130.0		76.3		43.8		20.8		1105.9
2018	654.0		—		—		—		—		—		122.7		361.9		337.7		239.9		146.1		92.9		41.9		1343.1
2019	581.5		—		—		—		—		—		—		143.8		349.0		289.8		177.7		110.3		43.9		1114.5
2020	435.7		—		—		—		—		—		—		—		132.9		284.3		192.0		125.8		50.0		785.0
2021	435.8		—		—		—		—		—		—		—		—		85.0		177.3		136.8		56.6		455.7
2022	406.1		—		—		—		—		—		—		—		—		—		67.7		195.4		83.0		346.1
2023	622.5		—		—		—		—		—		—		—		—		—		—		108.5		150.0		258.5
2024	373.4		—		—		—		—		—		—		—		—		—		—		—		28.0		28.0
Subtotal	7,277.6		3,618.9		753.0		844.8		837.1		860.9		945.1		1,141.4		1,271.8		1,206.9		946.0		892.7		520.7		13,839.3
Americas Insolvency
1996-2013	1,266.1		1,491.4		421.4		289.9		168.7		85.5		30.3		6.8		3.6		2.2		1.6		1.1		0.5		2,503.0
2014	148.4		—		37.0		50.9		44.3		37.4		28.8		15.8		2.2		1.1		0.7		0.4		0.2		218.8
2015	63.2		—		—		3.4		17.9		20.1		19.8		16.7		7.9		1.3		0.6		0.3		0.1		88.1
2016	91.4		—		—		—		18.9		30.4		25.0		19.9		14.4		7.4		1.8		0.9		0.3		119.0
2017	275.3		—		—		—		—		49.1		97.3		80.9		58.8		44.0		20.8		4.9		1.5		357.3
2018	97.9		—		—		—		—		—		6.7		27.4		30.5		31.6		24.6		12.7		1.6		135.1
2019	123.1		—		—		—		—		—		—		13.4		31.4		39.1		37.8		28.7		10.3		160.7
2020	62.1		—		—		—		—		—		—		—		6.5		16.1		20.4		19.5		9.1		71.6
2021	55.2		—		—		—		—		—		—		—		—		4.6		17.9		17.5		8.2		48.2
2022	33.4		—		—		—		—		—		—		—		—		—		3.2		9.2		5.5		17.9
2023	91.2		—		—		—		—		—		—		—		—		—		—		9.0		11.9		20.9
2024	48.8		—		—		—		—		—		—		—		—		—		—		—		2.9		2.9
Subtotal	2,356.1		1,491.4		458.4		344.2		249.8		222.5		207.9		180.9		155.3		147.4		129.4		104.2		52.1		3,743.5
Total Americas and Australia	9,633.7		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		996.9		572.8		17,582.8
Europe Core
2012-2013	40.7		27.7		14.2		5.5		3.5		3.3		3.3		2.4		1.9		1.8		1.4		1.0		0.5		66.5
2014	773.8		—		153.2		292.0		246.4		220.8		206.3		172.9		149.8		149.2		122.2		107.6		50.6		1,871.0
2015	411.3		—		—		45.8		100.3		86.2		80.9		66.1		54.3		51.4		40.7		33.8		15.7		575.2
2016	333.1		—		—		—		40.4		78.9		72.6		58.0		48.3		46.7		36.9		29.7		13.9		425.4
2017	252.2		—		—		—		—		17.9		56.0		44.1		36.1		34.8		25.2		20.2		9.4		243.7
2018	341.8		—		—		—		—		—		24.3		88.7		71.3		69.1		50.7		41.6		19.3		365.0
2019	518.6		—		—		—		—		—		—		48.0		125.7		121.4		89.8		75.1		34.7		494.7
2020	324.1		—		—		—		—		—		—		—		32.3		91.7		69.0		56.1		25.5		274.6
2021	412.4		—		—		—		—		—		—		—		—		48.5		89.9		73.0		34.2		245.6
2022	359.4		—		—		—		—		—		—		—		—		—		33.9		83.8		39.1		156.8
2023	410.6		—		—		—		—		—		—		—		—		—		—		50.2		52.4		102.6
2024	171.1		—		—		—		—		—		—		—		—		—		—		—		7.4		7.4
Subtotal	4,349.1		27.7		167.4		343.3		390.6		407.1		443.4		480.2		519.7		614.6		559.7		572.1		302.7		4,828.5
Europe Insolvency
2014	10.9		—		—		4.3		3.9		3.2		2.6		1.5		0.8		0.3		0.2		0.2		0.1		17.1
2015	19.0		—		—		3.0		4.4		5.0		4.8		3.9		2.9		1.6		0.6		0.4		0.1		26.7
2016	39.3		—		—		—		6.2		12.7		12.9		10.7		7.9		6.0		2.7		1.3		0.5		60.9
2017	39.2		—		—		—		—		1.2		7.9		9.2		9.8		9.4		6.5		3.8		0.9		48.7
2018	44.9		—		—		—		—		—		0.6		8.4		10.3		11.7		9.8		7.2		1.9		49.9
2019	77.2		—		—		—		—		—		—		5.0		21.1		23.9		21.0		17.5		7.5		96.0
2020	105.4		—		—		—		—		—		—		—		6.0		34.6		34.1		29.7		13.4		117.8
2021	53.2		—		—		—		—		—		—		—		—		5.5		14.4		14.7		7.5		42.1
2022	44.6		—		—		—		—		—		—		—		—		—		4.5		12.4		7.2		24.1
2023	46.7		—		—		—		—		—		—		—		—		—		—		4.2		5.7		9.9
2024	31.0		—		—		—		—		—		—		—		—		—		—		—		3.1		3.1
Subtotal	511.4		—		—		7.3		14.5		22.1		28.8		38.7		58.8		93.0		93.8		91.4		47.9		496.3
Total Europe	4,860.5		27.7		167.4		350.6		405.1		429.2		472.2		518.9		578.5		707.6		653.5		663.5		350.6		5,324.8
Total PRA Group	$	14,494.2	$	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	$	1,660.4	$	923.4	$	22,907.6

(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); plus foreign exchange loss (or less foreign exchange gain); 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 June 30, 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
	LTM		For the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)	June 30, 2024		December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.	$	4	$	(83)
Adjustments:
Income tax expense/(benefit)	12		(16)

Interest expense, net	208		181
Other expense	1		2
Depreciation and amortization	12		13
Impairment of real estate	5		5
Net income attributable to noncontrolling interests	19		17

Recoveries applied to negative allowance less changes in expected recoveries	804		888
Adjusted EBITDA	$	1,065	$	1,007

In addition, the Company uses return on average tangible equity (ROATE), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity ("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):


					Average Balance
	Balance at Period End				Second Quarter				Year-to-Date
	June 30, 2024		June 30, 2023		2024		2023		2024		2023
Total stockholders' equity - PRA Group, Inc.	$	1,145,463	$	1,165,525	$	1,137,395	$	1,161,934	$	1,147,300	$	1,183,843
Less: Goodwill	415,646		414,905		413,746		417,776		419,685		423,824
Less: Other intangible assets	1,597		1,836		1,632		1,835		1,668		1,839
Average tangible equity					$	722,017	$	742,323	$	725,947	$	758,180
Net income/(loss) attributable to PRA Group, Inc.					$	21,516	$	(3,804)	$	24,991	$	(62,433)
Return on average tangible equity (1)					11.9%		(2.0)%		6.9%		(16.5)%

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]

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


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



(d)	Exhibits
	99.1	Press release dated August 5, 2024
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


	PRA Group, Inc.

Date: August 5, 2024	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer


Date of Report (Date of Earliest Event Reported):			August 5, 2024


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