PRA Group Q4 and FY 2024 Conference Call Presentation Nasdaq: PRAA Forward-Looking Statements Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to diffe ...

Financial Data and Key Metrics Changes - Record portfolio purchases of $1.4 billion, up 22% year-over-year [8][27] - Cash collections of $1.9 billion for the year, representing 13% year-over-year growth [10][37] - Net income attributable to PRA of $71 million, translating to a return on average tangible equity of 10%, a significant improvement from negative 11% in 2023 [11][49] - Total revenues were $293 million for the quarter and $1.1 billion for the full year, up 32% and 39% respectively [31] Business Line Data and Key Metrics Changes - U.S. portfolio purchases were $796 million for the full year, up 40% year-over-year [28] - European portfolio purchases were $229 million for the quarter, up 86% year-over-year [30] - U.S. legal cash collections increased 42% to $376 million from $264 million in 2023 [21] Market Data and Key Metrics Changes - Strong portfolio supply in the U.S. driven by rising credit card balances and elevated charge-off rates [29] - European business demonstrated strong market position with healthy diversification across markets [13][14] Company Strategy and Development Direction - Three strategic pillars driving enhanced profitability: optimizing investments, driving operational execution, and managing expenses [18] - Focus on expanding offshore teams to improve cost structure and efficiency [23][24] - Continued investment in legal collections channel expected to drive future cash collections [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate short-term consumer pressures due to the long-term nature of their collections model [40] - Anticipated strong U.S. portfolio supply in 2025, driven by rising credit card balances [19] - Management remains optimistic about the company's transformation and growth potential [25][50] Other Important Information - ERC at December 31, 2024, was $7.5 billion, up 17% compared to the previous year [41] - Debt-to-adjusted EBITDA ratio was 2.92 times, within the long-term target range [43][44] - Company expects to exceed $1.2 billion in portfolio purchases for 2025 [48] Q&A Session Summary Question: Insights on European market supply and competition - Management noted an unusually large volume of market supply in Europe, but did not see significant changes in competition [54][56] Question: Thoughts on cash efficiency ratio and potential ceilings - Management indicated expectations for improved cash efficiency ratios in the short and long term, driven by operational efficiencies and technology [59][63] Question: Regulatory landscape and potential new competitors - Management expressed that while the regulatory environment is being monitored, significant barriers remain for new entrants into the market [66][68] Question: Legal expenses and efficiency ratio expectations - Management confirmed that legal expenses are expected to fluctuate based on portfolio mix and investments, but they remain confident in achieving efficiency targets [110][112]

Financial Performance - PRA Group reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, compared to a loss of $0.22 per share a year ago, representing an earnings surprise of 4.44% [1] - The company posted revenues of $293.23 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.95%, and up from $221.42 million year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $284.91 million, and for the current fiscal year, it is $2.01 on revenues of $1.17 billion [7] - The estimate revisions trend for PRA Group is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which PRA Group belongs, is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income attributable to PRA Group, Inc. for Q4 2024 was $18.5 million, with diluted earnings per share of $0.47, compared to a net loss of $8.8 million in Q4 2023[2]. - Total revenues for Q4 2024 reached $293.2 million, a 32.4% increase from $221.4 million in Q4 2023[20]. - Net income attributable to PRA Group, Inc. was $18.5 million in Q4 2024, compared to a net loss of $8.8 million in Q4 2023[20]. - The net income attributable to PRA Group, Inc. for 2024 was $71 million, a significant recovery from a net loss of $83 million in 2023[36]. - The company's return on average tangible equity (ROATE) improved to 9.5% in 2024, compared to a negative 11.3% in 2023[37]. Portfolio and Collections - Total portfolio purchases reached a record $1.4 billion in 2024, representing a 22% increase year-over-year, with Q4 2024 purchases totaling $432.7 million[3]. - Total cash collections for Q4 2024 increased by 14.1% to $468.1 million, compared to $410.3 million in Q4 2023, and for the full year, cash collections grew by 12.5% to $1.9 billion[4]. - Total portfolio revenue in Q4 2024 increased by 31.1% to $285.0 million, while full-year revenue rose by 39.7% to $1.1 billion[5]. - Total estimated collections for the Americas and Australia core from 1996 to 2024 amount to $18,145,771, with a current purchase price multiple of 211% for 2024[26]. - Total estimated collections for Europe core from 2012 to 2024 amount to $9,940,185, with a current purchase price multiple of 180% for 2024[26]. - The total PRA Group's estimated collections are $32,112,139, with total net finance receivables of $7,460,626 as of December 31, 2024[29]. - The remaining collections for the Americas and Australia core as of 2024 are estimated at $1,593,881[26]. - The remaining collections for Europe core as of 2024 are estimated at $770,745[26]. Expenses and Liabilities - Operating expenses for Q4 2024 increased by 13.2% to $199.1 million, driven by higher legal collection costs and fees[6]. - Interest expense for the full year increased by 26.2% to $229.3 million, reflecting higher debt balances to support portfolio investments[11]. - Total liabilities increased to $3.74 billion as of December 31, 2024, compared to $3.29 billion a year earlier, marking a 13.7% rise[22]. - The company recorded an income tax expense of $21 million in 2024, compared to a benefit of $16 million in 2023[36]. - Depreciation and amortization expenses decreased to $11 million in 2024 from $13 million in 2023[36]. Cash Efficiency and Financial Ratios - The cash efficiency ratio improved to 58.8% for the full year 2024, compared to 58.0% in Q4 2024[3]. - Average tangible equity for 2024 was reported at $741,862 thousand, slightly down from $741,950 thousand in 2023[37]. - Total stockholders' equity for PRA Group, Inc. decreased to $1,135,032 thousand in 2024 from $1,167,112 thousand in 2023, reflecting a decline of about 2.7%[37]. - PRA Group reported an adjusted EBITDA of $1,138 million for 2024, an increase from $1,007 million in 2023, representing a growth of approximately 13%[36]. Future Projections and Targets - The company updated its 2025 financial targets, raising the portfolio purchases target to $1.2 billion[4]. - Total availability under the company's credit facilities as of December 31, 2024, was $1.0 billion[8]. - The projected cash collections for 2024 are expected to be $823.7 million, indicating a further increase of 32.3% compared to 2023[33].

Transformational Year Culminates in Return to Enhanced ProfitabilityRecord Portfolio Purchases of $1.4 Billion and Cash Collections Growth of 13% to $1.9 BillionCompany Updates 2025 Financial Targets, Raising Portfolio Purchases Target to $1.2 BillionNORFOLK, Va., Feb. 19, 2025 /PRNewswire/ -- 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 2024") and full year of 2024.  Q4 2024 ...

Financial and business services company PRA Group, Inc. (PRAA) is set to report its fourth-quarter 2024 results on Feb. 19, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 45 cents per share and $276.77 million, respectively.See the Zacks Earnings Calendar to stay ahead of market-making news.The earnings estimate for the to-be-reported quarter has remained stable over the past 60 days. The bottom-line projection indicates a year- ...

NORFOLK, Va., Feb. 11, 2025 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its fourth quarter and full year 2024 results after market close on Wednesday, February 19, 2025, followed by a webcast and conference call at 5 p.m. E.T.To listen to PRA Group's webcast and view the corresponding slides, visit https://ir.pragroup.com/events-and-presentations.  To listen by phone on February 19, call 646-357-8785 in the U.S. or 1-800-836-81 ...

PRA Group, Inc. (PRAA) benefits from rising portfolio income, improved cash collections, expanding U.S. portfolio supply, favorable pricing dynamics and a strong cash position.PRAA’s Zacks Rank & Price RallyPRA Group currently carries a Zacks Rank #3 (Hold).The stock has gained 10.6% in the past three months compared with the industry’s 8.5% growth. The Zacks Finance sector and the S&P 500 composite has increased 4.4% and 5%, respectively, in the same time frame.Image Source: Zacks Investment ResearchPRA Gr ...

It takes time to turn a business around, and often longer still to drive a turn in sentiment and regain investor trust. Such is the case with PRA Group (NASDAQ: PRAA ), asAnalyst’s Disclosure: I/we have a beneficial long position in the shares of PRAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock i ...

The chief technology officer at Foot Locker, Butler brings more than 25 years of leadership experience across all areas of technology to the BoardNORFOLK, Va., Dec. 17, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today that Adrian Butler has been elected as an independent director of the company, effective January 1, 2025. Foot Locker Chief Technology Officer Adrian Butler has been elected to the PRA Group Board of Direct ...