8-K

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):	February 15, 2024

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.☐

Item 2.02 Results of Operations and Financial Condition.

On February 15, 2024, PRA Group, Inc. (the “Company”) issued a press release announcing its fourth quarter and full year 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 February 15, 2024 webcast and conference call to discuss its fourth quarter and full year 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 February 15, 2024
	104	Cover 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: February 15, 2024	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer

Document

PRA Group Reports Fourth Quarter and Full Year 2023 Results

Total Portfolio Purchases of $1.2 billion, up 36% for 2023; U.S. Portfolio Purchases up 84% for 2023

Addressing U.S. Business Underperformance with Urgency; Well-positioned for Meaningful Profitability in 2024 with a Solid Platform for Future Growth

NORFOLK, Va., February 15, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter ("Q4 2023") and full year of 2023.

Q4 2023 Highlights

•Total portfolio purchases of $284.9 million.

•Total cash collections of $410.3 million.

•Estimated remaining collections (ERC)1 of $6.4 billion.

•Cash efficiency ratio2 of 57.3%.

•Diluted earnings per share of $(0.22).

Full Year 2023 Highlights

•Total portfolio purchases of $1.2 billion.

•Total cash collections of $1.7 billion.

•Cash efficiency ratio of 58.0%.

•Diluted earnings per share of $(2.13).

•Debt to Adjusted EBITDA3 was 2.89x.

•Total availability under the Company's credit facilities as of December 31, 2023 was $1.3 billion, comprised of $344.4 million based on current ERC and $938.5 million of additional availability subject to debt covenants, including advance rates.

	Three Months Ended Dec 31,				Year Ended Dec 31,
($ in thousands, except per share amounts)	2023		2022		2023		2022
Net income/(loss) attributable to PRA Group, Inc.	$	(8,782)	$	15,959	$	(83,477)	$	117,147
Diluted earnings per share	$	(0.22)	$	0.41	$	(2.13)	$	2.94

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.

“2023 was an important and pivotal transition year for PRA. We delivered strong performance in our European business and worked with speed and intensity to address the shortcomings in our U.S. business,” said Vikram Atal, president and chief executive officer. "With growing portfolio supply in the U.S. and a stable investment environment in Europe, we purchased total portfolios of $285 million in the fourth quarter and $1.2 billion in 2023, with the latter representing an increase of 36% and the third highest level in company history. The impact of our cash generating and operational initiatives in our U.S. business—particularly around activity within call centers, post-judgment legal processes, and offshoring—have been highly encouraging, and demonstrate that we are on track to transform PRA into a more robust, efficient, and profitable enterprise. As we continue to grow ERC with discipline, maximize cash collections, and optimize our cost structure by reducing our marginal cost, we believe we are well-positioned to deliver meaningful profitability and shareholder value for full year 2024 with a solid platform for future growth.”

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)	Q4		Q3		Q2		Q1		Q4
Americas and Australia Core	$	220,127	$	223,714	$	220,886	$	227,960	$	205,619
Americas Insolvency	24,293		27,809		26,384		25,751		27,971
Europe Core	144,361		144,402		149,324		134,005		134,016
Europe Insolvency	21,502		23,639		22,725		23,568		24,051
Total Cash Collections	$	410,283	$	419,564	$	419,319	$	411,284	$	391,657
Cash Collection Source -
Constant Currency Adjusted	2023								2022
($ in thousands)	Q4								Q4
Americas and Australia Core	$	220,127							$	208,013
Americas Insolvency	24,293								27,970
Europe Core	144,361								140,393
Europe Insolvency	21,502								25,417
Total Cash Collections	$	410,283							$	401,793

•Total cash collections in Q4 2023 increased 4.8%, or 2.1% on a constant currency-adjusted basis, to $410.3 million compared to $391.7 million in the fourth quarter of 2022 ("Q4 2022"). The increase was driven by higher cash collections in Brazil and Europe, which were partially offset by lower cash collections in the U.S. For the full year, total cash collections decreased $68.6 million compared to the full year of 2022, driven primarily by lower cash collections in the U.S.

•Total portfolio revenue in Q4 2023 was $217.4 million compared to $219.0 million in Q4 2022. For the full year, total portfolio revenue was $786.3 million compared to $941.2 million in 2022.

Expenses

•Operating expenses in Q4 2023 increased $12.4 million, or 7.6%, compared to Q4 2022. The increase was primarily driven by expenses related to growth in the Company's portfolio:

◦a $3.8 million increase in legal collection costs due to a higher volume of accounts placed in the legal channel;

◦a $3.8 million increase in agency fees due to higher cash collections in Brazil; and

◦a $2.8 million increase in communication expenses due to higher business volumes related to customer contact strategies.

•For the full year, operating expenses increased $21.4 million, or 3.1%, to $702.1 million compared to $680.7 million in the same period last year.

•Interest expense, net was $181.7 million in 2023, an increase of $51.0 million, or 39.1%, compared to $130.7 million in 2022, primarily reflecting a higher average debt balance and increased interest rates.

•The effective tax benefit rate for the full year was 19.5%.

Portfolio Acquisitions

•The Company purchased $284.9 million in portfolios of nonperforming loans in Q4 2023.

•At the end of Q4 2023, the Company had in place estimated forward flow commitments1 of $550.0 million over the next 12 months, comprised of $400.0 million in the Americas and Australia and $150.0 million in Europe.

Portfolio Purchase Source	2023								2022
($ in thousands)	Q4		Q3		Q2		Q1		Q4
Americas and Australia Core	$	143,052	$	187,554	$	171,440	$	116,867	$	118,581
Americas Insolvency	18,608		44,279		12,189		15,701		8,967
Europe Core	110,780		60,628		136,834		90,454		140,011
Europe Insolvency	12,476		18,722		7,296		7,203		20,535
Total Portfolio Acquisitions	$	284,916	$	311,183	$	327,759	$	230,225	$	288,094

Conference Call Information

PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until February 15, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 01663# until February 22, 2024.

About PRA Group

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

About Forward-Looking Statements

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

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.’s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described

1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices. These amounts consider sellers' estimates of future flow sales and our expectations about how the agreements will perform over the next 12 months, and are dependent on actual delivery compared to these estimates. Accordingly, amounts purchased under these agreements may vary significantly.

from time to time in PRA Group, Inc.’s filings with the Securities and Exchange Commission, including PRA Group, Inc.’s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

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

PRA Group, Inc.

Consolidated Income Statements

(Amounts in thousands, except per share amounts)

	(unaudited)				(unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
Revenues:
Portfolio income	$	194,636	$	184,921	$	757,128	$	772,315
Changes in expected recoveries	22,754		34,087		29,134		168,904
Total portfolio revenue	217,390		219,008		786,262		941,219
Other revenue	4,028		3,843		16,292		25,305
Total revenues	221,418		222,851		802,554		966,524
Operating expenses:
Compensation and employee services	71,070		69,922		288,778		285,537
Legal collection fees	9,844		9,060		38,072		38,450
Legal collection costs	22,903		19,063		89,131		76,757
Agency fees	20,208		16,434		74,699		63,808
Outside fees and services	20,555		20,866		82,619		92,355
Communication	9,905		7,143		40,430		39,205
Rent and occupancy	4,126		4,299		17,319		18,589
Depreciation and amortization	3,032		3,859		13,376		15,243
Impairment of real estate	202		—		5,239		—
Other operating expenses	14,044		12,893		52,399		50,778
Total operating expenses	175,889		163,539		702,062		680,722
Income from operations	45,529		59,312		100,492		285,802
Other income and (expense):
Interest expense, net	(50,946)		(34,912)		(181,724)		(130,677)
Foreign exchange gain/(loss)	(695)		194		289		985
Other	(564)		(572)		(1,944)		(1,325)
Income/(loss) before income taxes	(6,676)		24,022		(82,887)		154,785
Income tax expense/(benefit)	(816)		6,960		(16,133)		36,787
Net Income/(loss)	(5,860)		17,062		(66,754)		117,998
Adjustment for net income attributable to noncontrolling interests	2,922		1,103		16,723		851
Net income/(loss) attributable to PRA Group, Inc.	$	(8,782)	$	15,959	$	(83,477)	$	117,147
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic	$	(0.22)	$	0.41	$	(2.13)	$	2.96
Diluted	$	(0.22)	$	0.41	$	(2.13)	$	2.94
Weighted average number of shares outstanding:
Basic	39,245		38,978		39,177		39,638
Diluted	39,245		39,177		39,177		39,888

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

	(unaudited)
	December 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	112,528	$	83,376
Investments	72,404		79,948
Finance receivables, net	3,656,598		3,295,008
Income taxes receivable	27,713		31,774
Deferred tax assets, net	74,694		56,908
Right-of-use assets	45,877		54,506
Property and equipment, net	36,450		51,645
Goodwill	431,564		435,921
Other assets	67,526		86,588
Total assets	$	4,525,354	$	4,175,674
Liabilities and Equity
Liabilities:
Accounts payable	$	6,325	$	7,329
Accrued expenses	131,893		111,395
Income taxes payable	17,912		25,693
Deferred tax liabilities, net	17,051		42,918
Lease liabilities	50,300		59,384
Interest-bearing deposits	115,589		112,992
Borrowings	2,914,270		2,494,858
Other liabilities	32,638		34,355
Total liabilities	3,285,978		2,888,924
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, 39,247 shares issued and outstanding as of December 31, 2023; 100,000 shares authorized, 38,980 shares issued and outstanding as of December 31, 2022	392		390
Additional paid-in capital	7,071		2,172
Retained earnings	1,489,548		1,573,025
Accumulated other comprehensive loss	(329,899)		(347,926)
Total stockholders' equity - PRA Group, Inc.	1,167,112		1,227,661
Noncontrolling interests	72,264		59,089
Total equity	1,239,376		1,286,750
Total liabilities and equity	$	4,525,354	$	4,175,674
Select Expenses (Income)<br><br>Amounts in thousands, pre-tax
---	---	---	---	---	---	---	---	---
	Three Months Ended
	December 31,<br>2023	September 30,<br>2023	June 30,<br>2023	March 31,<br>2023	December 31,<br>2022	September 30,<br>2022	June 30,<br>2022	March 31,<br>2022
Noncash interest expense - amortization of debt issuance costs	2,177	2,220	2,384	2,441	2,444	2,555	2,471	2,627
Change in fair value of derivatives	(6,734)	(6,545)	(6,960)	(5,470)	(3,309)	(1,042)	1,525	2,726
Amortization of intangibles	69	69	68	66	73	73	77	83
Impairment of real estate	202	5,037	—	—	—	—	—	—
Stock-based compensation expense	2,952	1,629	2,715	3,799	2,206	3,101	3,849	3,891
Purchase Price Multiples<br><br>as of December 31, 2023<br><br>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
1996-2013	$	1,932,722	$	5,725,248	$	52,146	296%	233%
2014	404,117		884,911		27,461		219%	204%
2015	443,114		899,839		35,758		203%	205%
2016	455,767		1,078,122		65,679		237%	201%
2017	532,851		1,200,599		105,245		225%	193%
2018	653,975		1,482,269		152,931		227%	202%
2019	581,476		1,294,462		182,487		223%	206%
2020	435,668		951,929		216,016		218%	213%
2021	435,846		749,966		362,191		172%	191%
2022	406,082		708,070		460,475		174%	179%
2023	622,583		1,227,985		1,118,683		197%	197%
Subtotal	6,904,201		16,203,400		2,779,072
Americas Insolvency
1996-2013	1,266,056		2,502,614		91		198%	159%
2014	148,420		218,811		98		147%	124%
2015	63,170		88,009		73		139%	125%
2016	91,442		117,987		256		129%	123%
2017	275,257		356,839		1,121		130%	125%
2018	97,879		135,530		1,939		138%	127%
2019	123,077		168,658		18,261		137%	128%
2020	62,130		90,690		28,225		146%	136%
2021	55,187		73,803		33,804		134%	136%
2022	33,442		46,811		34,461		140%	139%
2023	91,282		122,780		113,508		135%	135%
Subtotal	2,307,342		3,922,532		231,837
Total Americas and Australia	9,211,543		20,125,932		3,010,909
Europe Core
2012-2013	40,742		71,982		1		177%	153%
2014 (1)	773,811		2,465,052		394,133		319%	208%
2015	411,340		743,591		141,158		181%	160%
2016	333,090		567,702		162,940		170%	167%
2017	252,174		363,813		107,971		144%	144%
2018	341,775		544,970		194,808		159%	148%
2019	518,610		838,326		353,219		162%	152%
2020	324,119		561,192		262,884		173%	172%
2021	412,411		695,544		428,779		169%	170%
2022	359,447		582,380		489,333		162%	162%
2023	410,593		692,580		640,924		169%	169%
Subtotal	4,178,112		8,127,132		3,176,150
Europe Insolvency
2014 (1)	10,876		18,882		—		174%	129%
2015	18,973		29,301		29		154%	139%
2016	39,338		57,673		932		147%	130%
2017	39,235		51,995		2,020		133%	128%
2018	44,908		52,658		4,862		117%	123%
2019	77,218		112,260		20,970		145%	130%
2020	105,440		156,670		42,614		149%	129%
2021	53,230		72,736		33,441		137%	134%
2022	44,604		60,935		46,620		137%	137%
2023	46,558		64,411		60,029		138%	138%
Subtotal	480,380		677,521		211,517
Total Europe	4,658,492		8,804,653		3,387,667
Total PRA Group	$	13,870,035	$	28,930,585	$	6,398,576

(1)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(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 December 31, 2023 exchange rate.

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

Portfolio Financial Information<br><br>For the Year Ended December 31, 2023<br><br>Amounts in thousands
Purchase Period	Cash<br><br>Collections (2)		Portfolio Income (2)		Changes in Expected Recoveries (2)		Total Portfolio Revenue (2)		Net Finance Receivables as of December 31, 2023 (3)
Americas and Australia Core
1996-2013	$	28,414	$	14,689	$	11,698	$	26,387	$	15,661
2014	11,826		5,085		6,623		11,708		10,416
2015	14,084		8,296		(352)		7,944		15,107
2016	24,898		16,456		(973)		15,483		21,960
2017	43,765		24,863		(5,960)		18,904		43,205
2018	92,931		38,221		13,105		51,326		84,611
2019	110,278		49,393		287		49,681		100,749
2020	125,832		55,634		(3,681)		51,953		121,292
2021	136,807		78,122		(52,274)		25,848		190,907
2022	195,438		95,009		(5,798)		89,211		281,983
2023	108,414		75,234		3,074		78,307		591,032
Subtotal	892,687		461,002		(34,251)		426,752		1,476,923
Americas Insolvency
1996-2013	1,089		336		756		1,092		—
2014	430		249		136		385		—
2015	325		105		121		226		39
2016	893		120		521		641		228
2017	4,852		438		1,457		1,895		1,013
2018	12,677		1,085		(1,751)		(667)		1,858
2019	28,698		3,149		651		3,800		17,310
2020	19,470		4,202		1,000		5,202		25,023
2021	17,474		4,590		924		5,515		28,874
2022	9,163		3,831		716		4,547		27,851
2023	9,166		4,998		2,237		7,234		85,331
Subtotal	104,237		23,103		6,768		29,870		187,527
Total Americas and Australia	996,924		484,105		(27,483)		456,622		1,664,450
Europe Core
2012-2013	1,029		1		1,028		1,029		—
2014 (1)	107,571		67,749		24,528		92,277		101,742
2015	33,779		16,091		2,643		18,734		72,591
2016	29,663		15,334		(3,008)		12,326		96,274
2017	20,166		7,471		1,012		8,484		73,646
2018	41,613		15,083		1,326		16,409		128,861
2019	75,074		23,993		23,157		47,150		238,759
2020	56,078		21,772		3,436		25,207		163,027
2021	73,017		32,638		(5,931)		26,707		258,670
2022	83,782		34,199		986		35,185		307,528
2023	50,320		20,129		(1,029)		19,099		377,193
Subtotal	572,092		254,460		48,148		302,607		1,818,291
Europe Insolvency
2014 (1)	235		—		235		235		—
2015	395		26		289		315		27
2016	1,315		248		330		578		429
2017	3,800		259		821		1,080		1,753
2018	7,154		650		39		690		4,417
2019	17,460		2,479		1,266		3,745		18,413
2020	29,687		4,643		3,180		7,823		38,342
2021	14,734		3,556		1,405		4,961		28,669
2022	12,352		4,588		195		4,783		36,875
2023	4,302		2,114		709		2,823		44,932
Subtotal	91,434		18,563		8,469		27,033		173,857
Total Europe	663,526		273,023		56,617		329,640		1,992,148
Total PRA Group	$	1,660,450	$	757,128	$	29,134	$	786,262	$	3,656,598

(1)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(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 December 31, 2023 exchange rate.

Cash Collections by Year, By Year of Purchase (1)<br><br>as of December 31, 2023<br><br>Amounts in millions
			Cash Collections
Purchase Period	Purchase Price (3)(4)		1996-2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		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	$	5,665.9
2014	404.1		—		92.7		253.4		170.3		114.2		82.2		55.3		31.9		22.3		15.0		11.8		849.1
2015	443.1		—		—		117.0		228.4		185.9		126.6		83.6		57.2		34.9		19.5		14.1		867.2
2016	455.8		—		—		—		138.7		256.5		194.6		140.6		105.9		74.2		38.4		24.9		973.8
2017	532.9		—		—		—		—		107.3		278.7		256.5		192.5		130.0		76.3		43.8		1085.1
2018	654.0		—		—		—		—		—		122.7		361.9		337.7		239.9		146.1		92.9		1301.2
2019	581.5		—		—		—		—		—		—		143.8		349.0		289.8		177.7		110.3		1070.6
2020	435.7		—		—		—		—		—		—		—		132.9		284.3		192.0		125.8		735.0
2021	435.8		—		—		—		—		—		—		—		—		85.0		177.3		136.8		399.1
2022	406.1		—		—		—		—		—		—		—		—		—		67.7		195.4		263.1
2023	622.6		—		—		—		—		—		—		—		—		—		—		108.5		108.5
Subtotal	6,904.3		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		13,318.6
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		2,502.5
2014	148.4		—		37.0		50.9		44.3		37.4		28.8		15.8		2.2		1.1		0.7		0.4		218.6
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		0.9		118.7
2017	275.3		—		—		—		—		49.1		97.3		80.9		58.8		44.0		20.8		4.9		355.8
2018	97.9		—		—		—		—		—		6.7		27.4		30.5		31.6		24.6		12.7		133.5
2019	123.1		—		—		—		—		—		—		13.4		31.4		39.1		37.8		28.7		150.4
2020	62.1		—		—		—		—		—		—		—		6.5		16.1		20.4		19.5		62.5
2021	55.2		—		—		—		—		—		—		—		—		4.6		17.9		17.5		40.0
2022	33.4		—		—		—		—		—		—		—		—		—		3.2		9.2		12.4
2023	91.3		—		—		—		—		—		—		—		—		—		—		9.0		9.0
Subtotal	2,307.4		1,491.4		458.4		344.2		249.8		222.5		207.9		180.9		155.3		147.4		129.4		104.2		3,691.4
Total Americas and Australia	9,211.7		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		17,010.0
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		66.0
2014 (2)	773.8		—		153.2		292.0		246.4		220.8		206.3		172.9		149.8		149.2		122.2		107.6		1,820.4
2015	411.3		—		—		45.8		100.3		86.2		80.9		66.1		54.3		51.4		40.7		33.8		559.5
2016	333.1		—		—		—		40.4		78.9		72.6		58.0		48.3		46.7		36.9		29.7		411.5
2017	252.2		—		—		—		—		17.9		56.0		44.1		36.1		34.8		25.2		20.2		234.3
2018	341.8		—		—		—		—		—		24.3		88.7		71.3		69.1		50.7		41.6		345.7
2019	518.6		—		—		—		—		—		—		48.0		125.7		121.4		89.8		75.1		460.0
2020	324.1		—		—		—		—		—		—		—		32.3		91.7		69.0		56.1		249.1
2021	412.4		—		—		—		—		—		—		—		—		48.5		89.9		73.0		211.4
2022	359.4		—		—		—		—		—		—		—		—		—		33.9		83.8		117.7
2023	410.6		—		—		—		—		—		—		—		—		—		—		50.2		50.2
Subtotal	4,178.0		27.7		167.4		343.3		390.6		407.1		443.4		480.2		519.7		614.6		559.7		572.1		4,525.8
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		0.4		26.6
2016	39.3		—		—		—		6.2		12.7		12.9		10.7		7.9		6.0		2.7		1.3		60.4
2017	39.2		—		—		—		—		1.2		7.9		9.2		9.8		9.4		6.5		3.8		47.8
2018	44.9		—		—		—		—		—		0.6		8.4		10.3		11.7		9.8		7.2		48.0
2019	77.2		—		—		—		—		—		—		5.0		21.1		23.9		21.0		17.5		88.5
2020	105.4		—		—		—		—		—		—		—		6.0		34.6		34.1		29.7		104.4
2021	53.2		—		—		—		—		—		—		—		—		5.5		14.4		14.7		34.6
2022	44.6		—		—		—		—		—		—		—		—		—		4.5		12.4		16.9
2023	46.6		—		—		—		—		—		—		—		—		—		—		4.2		4.2
Subtotal	480.3		—		—		7.3		14.5		22.1		28.8		38.7		58.8		93.0		93.8		91.4		448.4
Total Europe	4,658.3		27.7		167.4		350.6		405.1		429.2		472.2		518.9		578.5		707.6		653.5		663.5		4,974.2
Total PRA Group	$	13,870.0	$	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	$	21,984.2

(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.

(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.

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 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 years ended December 31, 2023 and 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
Adjusted EBITDA for PRA Group ($ in millions)	December 31, 2023		December 31, 2022
Net income/(loss) attributable to PRA Group, Inc.	$	(83)	$	117
Adjustments:
Income tax expense	(16)		37
Foreign exchange (gains)/losses	—		(1)
Interest expense, net	181		131
Other expense	2		1
Depreciation and amortization	13		15
Impairment of real estate	5		—
Adjustment for net income attributable to noncontrolling interests	17		1
Recoveries applied to negative allowance less Changes in expected recoveries	888		806
Adjusted EBITDA	$	1,007	$	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 years ended December 31, 2023 and 2022 (amounts in millions):

Debt to Adjusted EBITDA
	December 31, 2023		December 31, 2022
Borrowings	$	2,914	$	2,495
Adjusted EBITDA	1,007		1,107
Debt to Adjusted EBITDA	2.89		2.25

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