It's been a while since I've updated my thoughts on PRA Group (NASDAQ:PRAA), and a lot has been going on at this underperforming debt collector in the meantime. When I last wrote about PRA, I thought the company was in for a rough 2023 ahead of better results in 2024 and 2025. As it turned out, "rough" didn't really cover it, and the company's 2023 results (and share price) were hammered by operational inefficiencies and poor collections performance. The shares are down about 40% since that last article, re ...

NORFOLK, Va., June 27, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, yesterday celebrated the launch of its Pride Alliance Employee Resource Group (ERG). Pride Alliance is designed to serve LGBTQ+ employees, allies and advocates, and will provide a space that celebrates and embraces the LGBTQ+ community. "I'm excited to help PRA Group foster an inclusive and supportive workplace where all of our colleagues feel simultaneously comfortabl ...

NORFOLK, Va., May 22, 2024 /PRNewswire/ -- This month, PRA Group (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, celebrated the launch of its ¡Hola! Employee Resource Group (ERG). ¡Hola! is designed to serve Hispanic and Latino employees and advocates and will provide a space where PRA Group colleagues can engage in a community that celebrates and embraces Hispanic culture around the globe. ¡Hola! ERG Executive Co-Sponsors Giovanna Genard and Victor Andrade¡Hola! ERG Executi ...

Seasoned Acquisitions Leader Takes on Expanded Role within PRA Group NORFOLK, Va., May 21, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today announced the appointment of Dr. Marcel Köchling as European Investments Officer, effective immediately. Köchling, who holds a doctorate in business administration, is based in Germany and has been with PRA Group for over 12 years. He will continue as managing director of PRA Group Deutschland Gm ...

NORFOLK, Va., May 15, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, announced today the pricing on May 15, 2024 of its offering of $400.0 million aggregate principal amount of 8.875% Senior Notes due 2030 (the "notes"), in a private transaction that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The offering of the notes is expected to close on or about May ...

NORFOLK, Va., May 15, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, announced today that it plans, subject to market and other conditions, to offer $400.0 million aggregate principal amount of senior notes due 2030 (the "notes") in a private transaction that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The notes will be guaranteed on a senior unsecured bas ...

The former Virgin Money CEO is one of Britain's most prominent businesswomen Investor Contact: Najim Mostamand, CFA Vice President, Investor Relations (757) 431-7913 [email protected] In recognition of Gadhia's extraordinary achievements and service, the U.K. government awarded her the titles of Commander of the Most Excellent Order of the British Empire (CBE) in the 2014 New Year's Honours list; Dame in the 2019 Honours list; and Commander of the Royal Victorian Order (CVO) in the 2022 Queen's Birthday Pla ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 PRA Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 75-3078675 (I.R.S. Employer Identification No.) 120 Corporate Boulevard Norfolk, Virginia 23502 (Address of principal executive offices) FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 ☐ Transition R ...

PRA Group Q1 2024 Conference Call Presentation Forward-Looking Statements You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation and are qualified in their entirety by these cautionary statements. 1 Nasdaq: PRAA Drive the Turnaround Stabilize Performance 2023 2024 Roadmap to Enhanced Profitability Value Creation from Higher Cash Collections While Reducing Marginal Costs Increase ERC and portfolio returns Deepening seller relationship ...

Financial Data and Key Metrics - Total revenues for Q1 2024 were $256 million, with portfolio revenue contributing $254 million, including $202 million in portfolio income and $52 million in changes in expected recoveries [36] - Cash collections for the quarter were $450 million, up 9% YoY and 7% on a constant currency basis, driven by strong performance in the U S and Brazil [51] - ERC (Expected Recoverable Collections) at March 31 was $6 5 billion, up 15% YoY, with $1 6 billion expected to be collected in the next 12 months [62] - Net income attributable to PRA was $3 million or $0 09 in diluted earnings per share [50] Business Line Performance - Americas cash collections increased 11% YoY (10% on a constant currency basis), driven by higher collections in the U S and Brazil [51] - U S cash collections increased 9% YoY, with U S Core cash collections up 23% sequentially in Q1 2024, reflecting higher portfolio purchases and cash-generating initiatives [52] - European cash collections increased 6% YoY (3% on a constant currency basis) [52] - Portfolio income grew YoY for the third consecutive quarter, driven by higher recent purchases and improved returns, particularly in the U S [45] Market Performance - In the Americas, the company invested $197 million in Q1 2024, up 48% YoY, with $187 million deployed in the U S, up 71% YoY, reflecting the second-highest Q1 U S investment level in company history [34] - In Europe, the company invested $49 million in Q1 2024, influenced by low market volumes, but expects a significant uptick in Q2 purchases [35][44] - The U S Core Vintage pricing improved to 2 11 times at the end of Q1 2024, compared to 1 97 times for the full year 2023 [34] Strategic Direction and Industry Competition - The company's turnaround strategy is supported by three pillars: optimizing investments, driving operational execution, and managing expenses [16] - The U S market continues to see strong credit normalization, with credit card balances exceeding $1 trillion and delinquency and charge-off rates rising to 3 1% and 4 2%, respectively [17] - The company is strategically deploying capital in markets with the most attractive returns, benefiting from repriced forward flows and improved pricing [18] - In Europe, the company maintains a disciplined underwriting and purchasing approach, with a stable management team and a long track record of healthy investments [43] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the U S market, citing strong cash initiatives and improved collections from older vintages [2][5] - The company expects continued growth in U S portfolio purchases due to increasing supply and improved pricing [29] - In Europe, the company anticipates stronger investment volumes in Q2 2024, aligning with long-term trends [30] - Management reiterated financial and operational targets for 2024, including double-digit cash collection growth, modest expense growth, and a return on average tangible equity between 6% and 8% [65] Other Important Information - The company has $3 1 billion in total committed capital under its credit facilities, with margins ranging from 235 to 380 basis points over benchmark rates [56] - Operating expenses for Q1 2024 were $189 million, including $6 million in outsized corporate legal and consulting expenses [57] - The company's leverage ratio was 2 83 times debt-to-adjusted EBITDA as of March 31, within the target range of 2 to 3 times [63] Q&A Session Summary Question: Non-controlling interest expense in Brazil - The company has a joint venture structure in Brazil, with strong performance driven by a focus on the auto market and disciplined investments [69][70] - Management is evaluating opportunities for consolidation but continues to work with partners [69] Question: Europe market activity and competition - The company expects Q2 2024 purchases in Europe to be around $100-$110 million, reflecting a tangible pickup in supply [75][76] - Competition in Europe remains aggressive, with no significant pullback from competitors despite market challenges [81] Question: Wage garnishment and regulatory risks - Wage garnishment is a standard, well-established element of the U S legal process, with no regulatory concerns [95] Question: Cash efficiency target - The company aims for a 60% cash efficiency target for 2024, with potential improvements beyond that in 2025 [92][96] Question: Legal expenses in Europe - Higher legal expenses in Q1 2024 were due to a catch-up in court activity, and the company does not expect this level to be the new baseline [117]