Financial Data and Key Metrics Changes - The company reported a 19% growth in portfolio purchases, with net income at $4 million, or $0.09 in diluted earnings per share, which was lower than in recent quarters due to moderated changes in expected recoveries [6][30] - Adjusted EBITDA grew by 13% year over year, marking the seventh consecutive quarter of growth [7][30] - Cash efficiency ratio improved to 61%, up from 58% in the prior year period [29] Business Line Data and Key Metrics Changes - U.S. legal cash collections increased by 33% year over year to $111 million, driven by reduced cycle times and optimized post-judgment activities [8] - Portfolio income for the quarter was $241 million, up 19% year over year, reflecting increased portfolio investments and improved returns [25] - Total portfolio revenue was $269 million for the quarter, with changes in expected recoveries amounting to $28 million [25] Market Data and Key Metrics Changes - The company purchased $292 million of portfolios during the quarter, with $178 million in the Americas and $113 million in Europe [21] - The expected cash collections from the current ERC balance is approximately $1.8 billion over the next twelve months [22] - Cash collections for the quarter were $497 million, up 11% from the prior year, with U.S. core cash collections up 20% [23][26] Company Strategy and Development Direction - The company is focused on optimizing investments, operational execution, and managing expenses as part of its three strategic pillars [7][10] - The leadership transition aims to leverage successful strategies from the European business to enhance global operations [11][15] - The company plans to continue investing judiciously in portfolios while maintaining a disciplined approach to capital deployment [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted a positive level of consumer engagement, with no significant signs of weakening consumer behavior despite a mismatch in cash collection expectations [38][40] - The macroeconomic environment remains uncertain, prompting a cautious approach to future cash generation expectations [44][47] - The company expects portfolio supply to remain elevated in the U.S. and stable in Europe, supporting ongoing investment opportunities [23][58] Other Important Information - The company completed the sale of its equity interest in Brazil, generating an estimated after-tax gain of approximately $28 million [32][70] - The effective tax rate for the quarter was 32%, with expectations for the full year to be in the mid-20s [29] Q&A Session Summary Question: What is the state of the consumer and tax refund season? - Management indicated that tax refunds were normal and consumer engagement remains positive, with no signs of a decline in consumer activity [37][38] Question: What are the implications of the reduction in earnings guidance? - The reduction reflects the first quarter's performance and a cautious outlook due to macroeconomic uncertainties [44][46] Question: Will legal collection costs continue to be elevated? - Legal collection costs are expected to increase but at a much lower level than in the previous year [67][68] Question: How should noncontrolling interest be modeled? - Noncontrolling interest relates to investments in Brazil, with gains recognized from exiting a stake in a servicing company [69][70]

PRA Group Reports First Quarter 2025 Results 19% Growth in Portfolio Purchases Drives Record ERC of $7.8 Billion Strong Portfolio Purchases and Execution of Strategic Initiatives Contributed to Double-Digit Cash Collections Growth "We are confident in the overall trajectory of the business and, at this time, we are not changing our previously provided financial targets, except for the return on average tangible equity, which is likely to be at a lower level than our target of approximately 12%. As we move t ...

Core Insights - PRA Group, Inc. reported a record estimated remaining collections (ERC) of $7.8 billion, reflecting a 20.1% year-over-year increase, driven by a 19% growth in portfolio purchases [1][8] - The company achieved total cash collections of $497.4 million in Q1 2025, marking a 10.7% increase compared to $449.5 million in Q1 2024 [5][8] - The transition to the newly appointed CEO Martin Sjolund is expected to enhance the company's strategic initiatives and operational efficiency [1][4] Financial Performance - Net income attributable to PRA Group, Inc. for Q1 2025 was $3.7 million, a 5.3% increase from $3.5 million in Q1 2024, with diluted earnings per share remaining at $0.09 [4][19] - Total portfolio revenue increased by 6.0% to $268.9 million in Q1 2025, compared to $253.7 million in Q1 2024 [6][8] - Operating expenses rose by 3.1% to $195.0 million in Q1 2025, primarily due to investments in the U.S. legal collections channel [17][19] Cash Collections and Portfolio Purchases - Total portfolio purchases reached $291.7 million in Q1 2025, an 18.7% increase from $245.8 million in Q1 2024 [9][8] - Cash collections from the Americas and Australia Core segment amounted to $288.2 million in Q1 2025, up from $256.9 million in Q1 2024 [5][9] - The company reported a cash efficiency ratio of 60.8%, reflecting an improvement of 284 basis points year-over-year [8] Strategic Outlook - The company maintains its long-term financial targets, with an expectation that the return on average tangible equity will be lower than the previously targeted 12% [4][8] - The management is optimistic about the overall trajectory of the business, emphasizing a commitment to driving growth, profitability, and shareholder value [4][8]

NORFOLK, Va., April 21, 2025 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its first quarter 2025 results after market close on Monday, May 5, 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 May 5, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask fo ...

Core Viewpoint - PRA Group, Inc. (PRAA) is well-positioned for growth in debt collection, having expanded its services to include government work and audit services, despite a recent decline in stock value that is less severe than the industry average [1][2]. Company Overview - PRA Group has a market capitalization of $708.8 million and operates globally, acquiring and collecting non-performing loans and debt, with a growing presence in the Americas, Europe, and Australia [2]. - The company currently holds a Zacks Rank 2 (Buy), indicating solid prospects for future performance [2]. Financial Estimates - The Zacks Consensus Estimate for PRA Group's 2025 earnings is $2.26 per share, reflecting a 26.3% year-over-year increase, with three upward estimate revisions in the past two months [3]. - Revenue estimates for 2025 are projected at $1.17 billion, indicating a 5.2% year-over-year rise [3]. Growth Drivers - PRA Group achieved a record portfolio purchase of $1.4 billion in the fourth quarter of 2024, marking a 22% year-over-year increase, and anticipates further growth in 2025 [4]. - The company reported $1.9 billion in cash collections for 2024, representing a 13% year-over-year growth, with 89% of cash collections coming from portfolios purchased before 2024 [5]. Financial Performance - The cash efficiency ratio improved to 59% in 2024 from 58% in 2023, with total revenues of $293 million for Q4 2024 and $1.1 billion for the full year, reflecting increases of 32% and 39% respectively [6]. - In Q4 2024, net income attributable to PRAA was 47 cents per share, exceeding the Zacks Consensus Estimate by 4.4%, and the company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 297.1% [6].

Core Points - PRA Group, Inc. has appointed Martin Sjolund as President and CEO effective June 17, 2025, succeeding Vikram Atal, who will retire and serve as a senior advisor until December 31, 2025 [1][2] - The Board of Directors emphasized that this leadership transition is part of an ongoing succession planning process aimed at ensuring long-term, profitable growth for the company [2] - Sjolund has a strong track record in the European market, having overseen nearly $3 billion in portfolio investments and significantly improved profitability during his tenure as President of PRA Group Europe [3] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors, thereby expanding financial services for consumers in the Americas, Europe, and Australia [6] - The company has thousands of employees worldwide and collaborates with customers to assist them in resolving their debt [6] Leadership Background - Martin Sjolund has been with PRA Group since 2014, previously serving as Chief Operating Officer of Europe and Director of Group Strategy and Corporate Development [4][5] - Before joining PRA Group, Sjolund held leadership roles in global technology companies and worked as a management consultant with McKinsey & Company [5]

Group 1 - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for strong picks [1][2] - Value investing is highlighted as a preferred method for identifying strong stocks, focusing on companies believed to be undervalued based on fundamental analysis [2] - The Style Scores system complements the Zacks Rank, allowing investors to find stocks with specific traits, particularly in the "Value" category for value investors [3] Group 2 - PRA Group (PRAA) is identified as a notable stock for value investors, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [4] - PRAA's P/E ratio stands at 9.17, significantly lower than the industry average of 14.79, indicating potential undervaluation [4] - The P/S ratio for PRAA is 0.74, compared to the industry's average of 1.78, reinforcing the perception of undervaluation [5] - PRAA's P/CF ratio is 9.09, which is attractive against the industry's average of 14.58, suggesting a solid cash outlook [6] - The combination of these metrics indicates that PRAA is likely undervalued, supported by a strong earnings outlook [7]

MONSEY, N.Y., March 20, 2025 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of ProAssurance Corporation (NYSE: PRA) (“ProAssurance”) to The Doctors Companies (“TDC”) for $25.00 per share in cash. If you remain a ProAssurance shareholder and question the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge: https://wohlfruchter.com/cases/proassurance-corporation/ Alternatively, you may conta ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

Financial Performance - U.S. legal collections reached $376.0 million in 2024, an increase of 42.4% compared to the prior year[111]. - Total revenues for 2024 were $1.1 billion, an increase of $311.8 million, or 39.7%, compared to $786.3 million in 2023[123]. - Net income attributable to PRA Group, Inc. was $70.6 million for the year[116]. - Diluted earnings per share for the year were reported at $1.79[116]. - Net income attributable to PRA Group was $70.6 million in 2024, a significant recovery from a net loss of $83.5 million in 2023[1]. - Adjusted EBITDA for 2024 was $1.1 billion, an increase of $130.6 million, or 12.9%, compared to $1.0 billion in 2023[1]. - Total cash collections for 2024 were $1.9 billion, an increase of $208.1 million, or 12.5%, compared to $1.7 billion in 2023, largely due to higher U.S. Core cash collections[121]. - Total cash collections for 2024 reached $1,868,576, an increase of 12.5% from $1,660,450 in 2023[157]. - Total cash collections adjusted for foreign currency in 2024 were also $1,868,576, compared to $1,737,404 in 2022[157]. - Total cash collections in Europe for 2024 were $720,887, an increase from $663,526 in 2023[157]. - The company reported a total of $1,868,576,000 in cash collections since 1996-2014 for the Americas and Australia core segment[164]. - The total cash collections for the PRA Group in 2023 were $857,188,000, reflecting strong performance across regions[164]. - The company anticipates a total portfolio income of $1,098,056,000 for 2024, indicating growth in expected recoveries[164]. - The company reported a total of $5,695.1 million in Europe, contributing to the overall financial performance[167]. - The total cash collections for 2023 are projected to be $1,728.9 million, reflecting a recovery trend[167]. - The company reported cash paid for interest of $224,099,000 in 2024, compared to $138,305,000 in 2023[253]. Portfolio Purchases - Portfolio purchases in the U.S. totaled $795.8 million in 2024, a 40.2% increase from 2023, marking the second highest annual total in company history[113]. - Portfolio purchases in Europe amounted to $508.3 million in 2024, reflecting a 14.4% increase compared to 2023[115]. - Total portfolio purchases across all regions reached $1.4 billion, an increase of 22.0%[116]. - Total portfolio purchases reached $1.4 billion in 2024, up $253.8 million, or 22.0%, from $1.2 billion in 2023, primarily driven by increases in Americas and Australia Core purchases[120]. - U.S. portfolio purchases in 2024 totaled $795,840, a significant increase of 40.2% compared to $567,561 in 2023[158]. - Major credit card purchases in the U.S. rose to $342,460 in 2024, representing 43.0% of total purchases, up from 29.6% in 2023[158]. - Fresh accounts in the U.S. accounted for $442,432, or 60.8% of total purchases in 2024, compared to 67.3% in 2023[158]. - The purchase price multiple for the Americas and Australia Core portfolios in 2024 was 211%, up from 196% in 2023[161]. Collections and Recoveries - Cash collections for the year were $1.9 billion, representing a 12.5% increase[116]. - The company's end-of-year estimated remaining collections (ERC) stood at $7.5 billion, an increase of 16.6%[116]. - Estimated remaining collections (ERC) totaled $7.46 billion as of December 31, 2024, with significant contributions from both Americas and Europe[155]. - Core cash collections in the Americas and Australia for 2024 were $1,045,377, up from $892,687 in 2023, reflecting a growth of 17.1%[157]. - The total estimated collections for the Americas and Australia Core portfolios as of December 31, 2024, are $22,171,954[161]. - Changes in expected recoveries significantly increased to $240,868 in 2024 from $29,134 in 2023[246]. - The company experienced a significant change in expected recoveries, with a negative adjustment of $(240,868,000) in 2024 compared to $(29,134,000) in 2023[253]. Expenses and Liabilities - Total operating expenses increased to $774.8 million in 2024, up $72.7 million, or 10.4%, from $702.1 million in 2023[124]. - Interest expense, net for 2024 was $229.3 million, an increase of $47.6 million, or 26.2%, compared to $181.7 million in 2023, primarily due to a higher average debt balance[131]. - Income tax expense for 2024 was $21.0 million, an increase of $37.2 million, or 230.4%, compared to an income tax benefit of $16.1 million in 2023[132]. - Total liabilities rose to $3,737,548 in 2024, up from $3,285,978 in 2023, indicating an increase of 13.7%[243]. - As of December 31, 2024, total borrowings amounted to $3.3 billion, with $236.0 million estimated for interest, unused fees, and principal payments over the next 12 months[180]. Goodwill and Assets - Goodwill decreased by $35.2 million or 8.2% to $396.4 million as of December 31, 2024, attributed to foreign currency translation adjustments[136]. - The company performed its most recent annual impairment review on goodwill as of October 1, 2024, concluding no impairment was necessary[203]. - The fair value of the DBC reporting unit was assessed using both income and market approaches, incorporating various financial forecasts and assumptions[204]. - Total assets increased to $4,931,155 in 2024, compared to $4,525,354 in 2023, reflecting a growth of 9.0%[243]. - The balance of total equity as of December 31, 2024, was $1,193,607,000, a decrease from $1,239,376,000 in 2023[251]. Strategic Initiatives and Future Outlook - The company plans to continue purchasing nonperforming loan portfolios, focusing on strategic acquisitions and geographical diversification[150]. - Forward flow agreements for nonperforming loans are estimated at approximately $498.9 million over the next 12 months, with $403.1 million for the Americas and Australia, and $95.8 million for Europe[179]. - The company actively manages liquidity to meet business needs and financial obligations, ensuring operational stability[169]. - The company has seen a steady increase in cash collections from $1,141.4 million in 2020 to $1,271.8 million in 2021[167]. - The company plans to continue focusing on international operations, with a significant portion of cash related to indefinitely reinvested earnings[170].