NORFOLK, Va., Nov. 08, 2017 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2017. The company reported net income of $15.6 million in the third quarter, compared with $34.3 million in the prior year period. Diluted earnings per share were $0.34 versus $0.74 in the third quarter of 2016.
Third Quarter Business Highlights
- Increased cash collections 3% compared with the third quarter of 2016.
• Europe Core cash collections increased 7%.
• Global Insolvency collections increased 2%, U.S. Insolvency collections increased 2% versus the prior year quarter and 14% sequentially.
• Americas Core cash collections increased 1%. - Investment in portfolios increased 31% versus the prior year quarter, with a year-to-date total of $734.4 million.
- The total number of collectors remained constant with last quarter since the Company was at capacity in the current call centers. However, the Company has announced two new call centers in Henderson, Nevada and Burlington, North Carolina, as well as expansions at existing sites in Virginia. This will add capacity for almost 1,000 new collectors and will be utilized to service the growth in purchases of nonperforming loans the Company is expecting.
Third Quarter Financial Highlights
- Investment in portfolios of $210.9 million versus $161.3 million in the prior year quarter.
- Estimated remaining collections of $5.4 billion which increased $174 million from the prior year quarter and $100 million sequentially.
- Cash collections of $381.8 million versus $371.7 million in the prior year quarter.
- Net finance receivable revenue of $197.2 million versus $202.6 million in the prior year quarter.
- Income from operations of $54.3 million versus $67.5 million in the prior year quarter.
- Net income of $15.6 million versus $34.3 million in the prior year quarter.
“PRA continues to deliver from an operational perspective in both Europe and the Americas and cash collections increased 3% from the same period last year. In Europe, we have seen additional improvement in cash collections from operational enhancements including investment in the legal channel and improved scoring,” said Kevin Stevenson, president and chief executive officer of PRA Group, Inc. “In the U.S., we will be hosting training classes this month in our two new sites and remain optimistic about portfolio supply. We have been investing to prepare for anticipated growth especially in the U.S. and want to make sure we are in the best position possible to help sellers globally with their nonperforming loans.”
Cash Collections and Revenues
- The following table presents cash collections by quarter and by source on an as reported and currency-adjusted basis:
| Cash Collection Source | 2017 | 2016 | |||||||||||
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||
| Americas-Core | $ | 212,756 | $ | 217,020 | $ | 226,906 | $ | 193,360 | $ | 210,524 | |||
| Americas-Insolvency | 60,436 | 53,163 | 49,813 | 52,988 | 60,429 | ||||||||
| Europe-Core | 102,681 | 99,121 | 98,081 | 97,429 | 96,028 | ||||||||
| Europe-Insolvency | 5,961 | 5,371 | 5,030 | 4,974 | 4,719 | ||||||||
| Total Cash Collections | $ | 381,834 | $ | 374,675 | $ | 379,830 | $ | 348,751 | $ | 371,700 | |||
| Cash Collection Source - | |||||||||||||
| Constant Currency Adjusted | 2017 | 2016 | |||||||||||
| ($ in thousands) | Q3 | Q3 | |||||||||||
| Americas-Core | $ | 212,756 | $ | 211,188 | |||||||||
| Americas-Insolvency | 60,436 | 60,578 | |||||||||||
| Europe-Core | 102,681 | 99,125 | |||||||||||
| Europe-Insolvency | 5,961 | 4,840 | |||||||||||
| Total Cash Collections | $ | 381,834 | $ | 375,731 | |||||||||
- Cash collections in the quarter increased 3% versus the prior year quarter. This marks the first quarter in three and a half years that Americas Insolvency cash collections have grown year over year. U.S. call center cash collections increased 7% primarily due to hiring additional collectors and portfolio acquisitions.
- Net finance receivable revenue was lower than the prior year quarter due in large part to the attrition of higher yielding Insolvency portfolios. This was partially offset by significant portfolio investment thus far in the year and yield increases on certain pools.
- The reduction in fee income is primarily the result of the sale of two of three fee based subsidiaries earlier in the year.
Expenses
- Operating expenses decreased from the previous year largely due to decreased legal collection expense and agency fees. The decline in legal collection expense resulted primarily from fewer accounts in the legal channel during the quarter. The decline in agency fees is primarily the result of the sale of PRA Location Services.
- The Company recorded $5.3 million in pre-tax, noncash interest expense and amortization of issuance costs, a $1.0 million gain on interest rate swap agreements, and $1.0 million in amortization of intangible assets.
- The year to date effective tax rate was 39.7% compared with 32.2% for the full year 2016. Changes in the effective tax rate were primarily driven by changes in the proportion of income recognized in the U.S. versus other countries.
Portfolio Acquisitions
- PRA Group invested $210.9 million in new finance receivables in the third quarter.
- The Company has in place forward flow commitments for the purchase of nonperforming loans over the next twelve months with a maximum purchase price of $413.6 million.
| Portfolio Purchase Source | 2017 | 2016 | ||||||||||
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||
| Americas-Core | $ | 115,572 | $ | 144,871 | $ | 115,166 | $ | 91,800 | $ | 95,452 | ||
| Americas-Insolvency | 73,497 | 100,040 | 67,123 | 20,929 | 16,760 | |||||||
| Europe-Core | 14,695 | 42,876 | 39,505 | 80,129 | 34,240 | |||||||
| Europe-Insolvency | 7,146 | 7,860 | 6,020 | 6,943 | 14,803 | |||||||
| Total Portfolio Purchasing | $ | 210,910 | $ | 295,647 | $ | 227,814 | $ | 199,801 | $ | 161,255 | ||
Conference Call Information
PRA Group will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts. To listen to a webcast of the call and view the accompanying slides, visit http://ir.pragroup.com/events.cfm. To listen by phone, call 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 2387408. To listen to a replay of the call until November 15, 2017, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 2387408.
About PRA Group
As a global leader in acquiring and collecting nonperforming loans, PRA Group returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With more than 4,500 employees worldwide, PRA Group 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 which are not historical in nature, including PRA Group’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’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 our expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group. 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’s filings with the Securities and Exchange Commission including but not limited to PRA Group’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's website and contain a detailed discussion of PRA Group'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 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 assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group’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 | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Income recognized on finance receivables, net | $ | 197,248 | $ | 202,639 | $ | 582,626 | $ | 613,154 | |||||||||
| Fee income | 2,671 | 17,597 | 18,873 | 56,210 | |||||||||||||
| Other revenue | 1,091 | 1,748 | 6,401 | 5,958 | |||||||||||||
| Total revenues | 201,010 | 221,984 | 607,900 | 675,322 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Compensation and employee services | 68,541 | 65,898 | 203,780 | 197,456 | |||||||||||||
| Legal collection expenses | 27,626 | 33,447 | 90,556 | 97,476 | |||||||||||||
| Agency fees | 7,599 | 12,034 | 27,653 | 34,227 | |||||||||||||
| Outside fees and services | 15,631 | 14,731 | 46,977 | 46,415 | |||||||||||||
| Communication | 8,713 | 7,814 | 25,104 | 26,119 | |||||||||||||
| Rent and occupancy | 3,668 | 3,875 | 10,838 | 11,709 | |||||||||||||
| Depreciation and amortization | 4,841 | 6,184 | 15,097 | 18,339 | |||||||||||||
| Other operating expenses | 10,140 | 10,513 | 32,071 | 32,443 | |||||||||||||
| Total operating expenses | 146,759 | 154,496 | 452,076 | 464,184 | |||||||||||||
| Income from operations | 54,251 | 67,488 | 155,824 | 211,138 | |||||||||||||
| Other income and (expense): | |||||||||||||||||
| Gain on sale of subsidiaries | 307 | - | 48,474 | - | |||||||||||||
| Interest expense, net | (25,899 | ) | (19,310 | ) | (69,662 | ) | (59,838 | ) | |||||||||
| Foreign exchange (loss)/gain | (1,084 | ) | 5,004 | (1,421 | ) | 5,183 | |||||||||||
| Income before income taxes | 27,575 | 53,182 | 133,215 | 156,483 | |||||||||||||
| Provision for income taxes | 10,682 | 16,664 | 52,857 | 50,244 | |||||||||||||
| Net income | $ | 16,893 | $ | 36,518 | $ | 80,358 | $ | 106,239 | |||||||||
| Adjustment for net income attributable to noncontrolling interests | 1,338 | 2,212 | 4,963 | 3,494 | |||||||||||||
| Net income attributable to PRA Group, Inc. | $ | 15,555 | $ | 34,306 | $ | 75,395 | $ | 102,745 | |||||||||
| Net income per common share attributable to PRA Group, Inc.: | |||||||||||||||||
| Basic | $ | 0.34 | $ | 0.74 | $ | 1.64 | $ | 2.22 | |||||||||
| Diluted | $ | 0.34 | $ | 0.74 | $ | 1.64 | $ | 2.21 | |||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||
| Basic | 45,168 | 46,343 | 45,838 | 46,307 | |||||||||||||
| Diluted | 45,286 | 46,434 | 45,991 | 46,403 | |||||||||||||
| PRA Group, Inc. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
| ASSETS | 2017 | 2016 | ||||||||
| Cash and cash equivalents | $ | 113,754 | $ | 94,287 | ||||||
| Investments | 75,512 | 68,543 | ||||||||
| Finance receivables, net | 2,577,831 | 2,307,969 | ||||||||
| Other receivables, net | 10,919 | 11,650 | ||||||||
| Income taxes receivable | 3,877 | 9,427 | ||||||||
| Net deferred tax asset | 41,183 | 28,482 | ||||||||
| Property and equipment, net | 36,428 | 38,744 | ||||||||
| Goodwill | 538,337 | 499,911 | ||||||||
| Intangible assets, net | 25,527 | 27,935 | ||||||||
| Other assets | 37,409 | 33,808 | ||||||||
| Assets held for sale | - | 43,243 | ||||||||
| Total assets | $ | 3,460,777 | $ | 3,163,999 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Liabilities: | ||||||||||
| Accounts payable | $ | 3,605 | $ | 2,459 | ||||||
| Accrued expenses | 82,445 | 82,699 | ||||||||
| Income taxes payable | 4,069 | 19,631 | ||||||||
| Net deferred tax liability | 237,044 | 258,344 | ||||||||
| Interest-bearing deposits | 96,395 | 76,113 | ||||||||
| Borrowings | 1,963,504 | 1,784,101 | ||||||||
| Other liabilities | 1,213 | 10,821 | ||||||||
| Liabilities held for sale | - | 4,220 | ||||||||
| Total liabilities | 2,388,275 | 2,238,388 | ||||||||
| Redeemable noncontrolling interest | 8,620 | 8,448 | ||||||||
| Equity: | ||||||||||
| Preferred stock, par value $0.01, authorized shares, 2,000, | ||||||||||
| issued and outstanding shares, 0 | - | - | ||||||||
| Common stock, par value $0.01, 100,000 shares authorized, 45,169 shares | ||||||||||
| issued and outstanding at September 30, 2017; 100,000 shares authorized, | ||||||||||
| 46,356 shares issued and outstanding at December 31, 2016 | 452 | 464 | ||||||||
| Additional paid-in capital | 52,049 | 66,414 | ||||||||
| Retained earnings | 1,124,762 | 1,049,367 | ||||||||
| Accumulated other comprehensive loss | (166,397 | ) | (251,944 | ) | ||||||
| Total stockholders' equity - PRA Group, Inc. | 1,010,866 | 864,301 | ||||||||
| Noncontrolling interest | 53,016 | 52,862 | ||||||||
| Total equity | 1,063,882 | 917,163 | ||||||||
| Total liabilities and equity | $ | 3,460,777 | $ | 3,163,999 | ||||||
| Select Expenses (Income) | ||||||||||||||||||
| (in thousands) | Three Months Ended | |||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||
| CFPB expenses including penalty and redress | $ | - | $ | - | $ | - | $ | - | $ | 20 | $ | 21 | $ | 52 | ||||
| Acquisition/divestiture-related expenses | - | - | 2,100 | 458 | 216 | 557 | 1,034 | |||||||||||
| Legal costs not associated with normal operations | 218 | 2,615 | 1,024 | 3,741 | 1,511 | 1,623 | 435 | |||||||||||
| Noncash interest expense - amortization of debt discount | 2,796 | 1,809 | 1,155 | 1,136 | 1,127 | 1,109 | 1,100 | |||||||||||
| Noncash interest expense - amortization of debt issuance costs | 2,505 | 2,635 | 1,928 | 1,929 | 1,647 | 2,277 | 2,263 | |||||||||||
| Interest rate swap agreements | (1,025 | ) | (1,578 | ) | 158 | (1,064 | ) | (669 | ) | 1,399 | 1,557 | |||||||
| Amortization of intangibles | 1,037 | 869 | 1,410 | 929 | 1,661 | 1,808 | 1,775 | |||||||||||
| Stock-based compensation expense | 2,218 | 1,846 | 2,199 | (3,330 | ) | 3,332 | 2,699 | 3,437 | ||||||||||
| Purchase Price Multiples | |||||||||||||||
| as of September 30, 2017 | |||||||||||||||
| Amounts in thousands | |||||||||||||||
| Purchase Period | Purchase Price (1)(3) | Net Finance Receivables (4) | ERC- Historical Period Exchange Rates (5) | Total Estimated Collections (6) | ERC-Current Period Exchange Rates (7) | Current Estimated Purchase Price Multiple | Original Estimated Purchase Price Multiple (2) | ||||||||
| Americas-Core | |||||||||||||||
| 1996-2006 | $ | 458,635 | $ | 2,948 | $ | 16,991 | $ | 1,605,551 | $ | 16,991 | 350 | % | 246 | % | |
| 2007 | 179,826 | 4,862 | 20,426 | 442,487 | 20,426 | 246 | % | 227 | % | ||||||
| 2008 | 166,444 | 5,088 | 16,869 | 374,936 | 16,869 | 225 | % | 220 | % | ||||||
| 2009 | 125,156 | 1,089 | 35,328 | 461,678 | 35,328 | 369 | % | 252 | % | ||||||
| 2010 | 148,210 | 4,720 | 55,421 | 539,054 | 55,421 | 364 | % | 247 | % | ||||||
| 2011 | 209,654 | 14,337 | 77,717 | 723,855 | 77,717 | 345 | % | 245 | % | ||||||
| 2012 | 254,447 | 28,508 | 112,688 | 678,461 | 112,688 | 267 | % | 226 | % | ||||||
| 2013 | 391,612 | 82,257 | 244,721 | 971,832 | 244,721 | 248 | % | 211 | % | ||||||
| 2014 | 405,910 | 133,709 | 366,519 | 980,208 | 363,541 | 241 | % | 204 | % | ||||||
| 2015 | 445,198 | 209,558 | 460,239 | 951,890 | 463,015 | 214 | % | 205 | % | ||||||
| 2016 | 456,426 | 309,426 | 632,022 | 964,260 | 639,433 | 211 | % | 201 | % | ||||||
| 2017 | 377,203 | 356,961 | 668,675 | 728,881 | 668,889 | 193 | % | 193 | % | ||||||
| Subtotal | 3,618,721 | 1,153,463 | 2,707,616 | 9,423,093 | 2,715,039 | ||||||||||
| Americas-Insolvency | |||||||||||||||
| 1996-2006 | 54,396 | — | 404 | 91,147 | 404 | 168 | % | 145 | % | ||||||
| 2007 | 78,524 | 79 | 305 | 106,067 | 305 | 135 | % | 150 | % | ||||||
| 2008 | 108,578 | 469 | 979 | 168,971 | 979 | 156 | % | 163 | % | ||||||
| 2009 | 155,996 | — | 3,604 | 471,952 | 3,604 | 303 | % | 214 | % | ||||||
| 2010 | 208,963 | — | 5,017 | 548,234 | 5,017 | 262 | % | 184 | % | ||||||
| 2011 | 180,479 | — | 508 | 366,720 | 508 | 203 | % | 155 | % | ||||||
| 2012 | 251,471 | — | 4,504 | 386,491 | 4,504 | 154 | % | 136 | % | ||||||
| 2013 | 227,999 | 13,703 | 29,349 | 347,301 | 29,349 | 152 | % | 133 | % | ||||||
| 2014 | 148,769 | 33,306 | 49,021 | 210,471 | 48,975 | 141 | % | 124 | % | ||||||
| 2015 | 63,223 | 36,365 | 45,053 | 81,445 | 45,053 | 129 | % | 125 | % | ||||||
| 2016 | 92,486 | 57,870 | 69,697 | 112,436 | 70,216 | 122 | % | 123 | % | ||||||
| 2017 | 236,201 | 215,968 | 269,794 | 294,724 | 269,795 | 125 | % | 125 | % | ||||||
| Subtotal | 1,807,085 | 357,760 | 478,235 | 3,185,959 | 478,709 | ||||||||||
| Total Americas | 5,425,806 | 1,511,223 | 3,185,851 | 12,609,052 | 3,193,748 | ||||||||||
| Europe-Core | |||||||||||||||
| 2012 | 20,451 | — | 2,388 | 37,126 | 1,966 | 182 | % | 187 | % | ||||||
| 2013 | 20,365 | 668 | 1,596 | 22,933 | 1,290 | 113 | % | 119 | % | ||||||
| 2014 | 797,808 | 349,722 | 1,112,324 | 2,072,020 | 1,003,317 | 260 | % | 208 | % | ||||||
| 2015 | 423,412 | 255,365 | 497,625 | 720,188 | 468,229 | 170 | % | 160 | % | ||||||
| 2016 | 348,867 | 302,569 | 488,745 | 587,387 | 516,385 | 168 | % | 167 | % | ||||||
| 2017 | 97,295 | 94,865 | 140,656 | 150,084 | 147,488 | 154 | % | 154 | % | ||||||
| Subtotal | 1,708,198 | 1,003,189 | 2,243,334 | 3,589,738 | 2,138,675 | ||||||||||
| Europe-Insolvency | |||||||||||||||
| 2014 | 10,876 | 2,529 | 6,608 | 18,393 | 6,223 | 169 | % | 129 | % | ||||||
| 2015 | 19,418 | 8,994 | 16,654 | 28,872 | 15,044 | 149 | % | 139 | % | ||||||
| 2016 | 42,222 | 30,030 | 41,601 | 57,791 | 42,764 | 137 | % | 130 | % | ||||||
| 2017 | 21,402 | 21,866 | 26,793 | 27,142 | 27,643 | 127 | % | 127 | % | ||||||
| Subtotal | 93,918 | 63,419 | 91,656 | 132,198 | 91,674 | ||||||||||
| Total Europe | 1,802,116 | 1,066,608 | 2,334,990 | 3,721,936 | 2,230,349 | ||||||||||
| Total PRA Group | $ | 7,227,922 | $ | 2,577,831 | $ | 5,520,841 | $ | 16,330,988 | $ | 5,424,097 | |||||
| (1) The amount reflected in the Purchase Price also includes the acquisition date finance receivables portfolios that were acquired through our various business acquisitions. | |||||||||||||||
| (2) The Original Estimated Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition. | |||||||||||||||
| (3) For our international amounts, Purchase Price is presented at the exchange rate at the end of the quarter in which the pool was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the period-end exchange rate for the respective quarter of purchase. | |||||||||||||||
| (4) For our international amounts, Net Finance Receivables are presented at the September 30, 2017 exchange rate. | |||||||||||||||
| (5) For our international amounts, ERC-Historical Period Exchange Rates is presented at the period-end exchange rate for the respective quarter of purchase. | |||||||||||||||
| (6) For our international amounts, TEC is presented at the period-end exchange rate for the respective quarter of purchase. | |||||||||||||||
| (7) For our international amounts, ERC-Current Period Exchange Rates is presented at the September 30, 2017 exchange rate. | |||||||||||||||
| Portfolio Financial Information | |||||||||||||||
| Year-to-date as of September 30, 2017 | |||||||||||||||
| Amounts in thousands | |||||||||||||||
| Purchase Period | Purchase Price (1)(3) | Cash Collections (2) | Gross Revenue (2) | Amortization (2) | Allowance (2) | Net Revenue (2) | Net Finance Receivables as of September 30, 2017 (4) | ||||||||
| Americas-Core | |||||||||||||||
| 1996-2006 | $ | 458,635 | $ | 6,116 | $ | 4,608 | $ | 1,508 | $ | — | $ | 4,608 | $ | 2,948 | |
| 2007 | 179,826 | 4,539 | 2,997 | 1,542 | 330 | 2,667 | 4,862 | ||||||||
| 2008 | 166,444 | 4,757 | 2,647 | 2,110 | 145 | 2,502 | 5,088 | ||||||||
| 2009 | 125,156 | 8,724 | 7,000 | 1,724 | 200 | 6,800 | 1,089 | ||||||||
| 2010 | 148,210 | 12,546 | 8,813 | 3,733 | — | 8,813 | 4,720 | ||||||||
| 2011 | 209,654 | 25,782 | 20,386 | 5,396 | 285 | 20,101 | 14,337 | ||||||||
| 2012 | 254,447 | 31,838 | 20,292 | 11,546 | — | 20,292 | 28,508 | ||||||||
| 2013 | 391,612 | 62,833 | 43,993 | 18,840 | 1,605 | 42,388 | 82,257 | ||||||||
| 2014 | 405,910 | 90,971 | 61,881 | 29,090 | 1,114 | 60,767 | 133,709 | ||||||||
| 2015 | 445,198 | 148,469 | 73,109 | 75,360 | 814 | 72,295 | 209,558 | ||||||||
| 2016 | 456,426 | 199,942 | 107,138 | 92,804 | 288 | 106,850 | 309,426 | ||||||||
| 2017 | 377,203 | 60,165 | 39,831 | 20,334 | — | 39,831 | 356,961 | ||||||||
| Subtotal | 3,618,721 | 656,682 | 392,695 | 263,987 | 4,781 | 387,914 | 1,153,463 | ||||||||
| Americas-Insolvency | |||||||||||||||
| 1996-2006 | 54,396 | 113 | 113 | — | — | 113 | — | ||||||||
| 2007 | 78,524 | 148 | 77 | 71 | — | 77 | 79 | ||||||||
| 2008 | 108,578 | 251 | 105 | 146 | 100 | 5 | 469 | ||||||||
| 2009 | 155,996 | 1,284 | 1,284 | — | — | 1,284 | — | ||||||||
| 2010 | 208,963 | 1,966 | 1,913 | 53 | 20 | 1,893 | — | ||||||||
| 2011 | 180,479 | 3,135 | 3,135 | — | — | 3,135 | — | ||||||||
| 2012 | 251,471 | 26,053 | 16,825 | 9,228 | — | 16,825 | — | ||||||||
| 2013 | 227,999 | 37,763 | 10,210 | 27,553 | — | 10,210 | 13,703 | ||||||||
| 2014 | 148,769 | 28,976 | 7,818 | 21,158 | (12 | ) | 7,830 | 33,306 | |||||||
| 2015 | 63,223 | 15,106 | 3,141 | 11,965 | — | 3,141 | 36,365 | ||||||||
| 2016 | 92,486 | 23,686 | 4,679 | 19,007 | 1,030 | 3,649 | 57,870 | ||||||||
| 2017 | 236,201 | 24,931 | 4,697 | 20,234 | — | 4,697 | 215,968 | ||||||||
| Subtotal | 1,807,085 | 163,412 | 53,997 | 109,415 | 1,138 | 52,859 | 357,760 | ||||||||
| Total Americas | 5,425,806 | 820,094 | 446,692 | 373,402 | 5,919 | 440,773 | 1,511,223 | ||||||||
| Europe-Core | |||||||||||||||
| 2012 | 20,451 | 1,501 | 1,501 | — | — | 1,501 | — | ||||||||
| 2013 | 20,365 | 911 | 627 | 284 | 62 | 565 | 668 | ||||||||
| 2014 | 797,808 | 165,299 | 91,086 | 74,213 | 1,070 | 90,016 | 349,722 | ||||||||
| 2015 | 423,412 | 64,096 | 24,264 | 39,832 | 1,387 | 22,877 | 255,365 | ||||||||
| 2016 | 348,867 | 58,373 | 20,856 | 37,517 | 840 | 20,016 | 302,569 | ||||||||
| 2017 | 97,295 | 9,703 | 2,877 | 6,826 | — | 2,877 | 94,865 | ||||||||
| Subtotal | 1,708,198 | 299,883 | 141,211 | 158,672 | 3,359 | 137,852 | 1,003,189 | ||||||||
| Europe-Insolvency | |||||||||||||||
| 2014 | 10,876 | 2,464 | 1,117 | 1,347 | — | 1,117 | 2,529 | ||||||||
| 2015 | 19,418 | 3,875 | 1,014 | 2,861 | 134 | 880 | 8,994 | ||||||||
| 2016 | 42,222 | 9,669 | 1,859 | 7,810 | — | 1,859 | 30,030 | ||||||||
| 2017 | 21,402 | 354 | 145 | 209 | — | 145 | 21,866 | ||||||||
| Subtotal | 93,918 | 16,362 | 4,135 | 12,227 | 134 | 4,001 | 63,419 | ||||||||
| Total Europe | 1,802,116 | 316,245 | 145,346 | 170,899 | 3,493 | 141,853 | 1,066,608 | ||||||||
| Total PRA Group | $ | 7,227,922 | $ | 1,136,339 | $ | 592,038 | $ | 544,301 | $ | 9,412 | $ | 582,626 | $ | 2,577,831 | |
| (1) The amount reflected in the Purchase Price also includes the acquisition date finance receivables portfolios that were acquired through our various business acquisitions. | |||||||||||||||
| (2) For our international amounts, Cash Collections are presented using the average exchange rates during the current reporting period. | |||||||||||||||
| (3) For our international amounts, Purchase Price is presented at the exchange rate at the end of the quarter in which the pool was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the period-end exchange rate for the respective quarter of purchase. | |||||||||||||||
| (4) For our international amounts, Net Finance Receivables are presented at the September 30, 2017 exchange rate. | |||||||||||||||
| Cash Collections by Year, By Year of Purchase (2) | ||||||||||||||||||||||||||||
| as of September 30, 2017 | ||||||||||||||||||||||||||||
| Amounts in thousands | ||||||||||||||||||||||||||||
| Purchase Period | Purchase Price (1)(3) | Cash Collections | ||||||||||||||||||||||||||
| 1996-2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Total | ||||||||||||||||
| Americas-Core | ||||||||||||||||||||||||||||
| 1996-2006 | $ | 458,635 | $ | 861,003 | $ | 195,738 | $ | 135,589 | $ | 99,674 | $ | 77,459 | $ | 64,555 | $ | 49,820 | $ | 35,711 | $ | 25,488 | $ | 18,293 | $ | 11,862 | $ | 6,116 | $ | 1,581,308 |
| 2007 | 179,826 | — | 39,412 | 87,039 | 69,175 | 60,230 | 50,996 | 39,585 | 28,244 | 19,759 | 14,198 | 8,883 | 4,539 | 422,060 | ||||||||||||||
| 2008 | 166,444 | — | — | 47,253 | 72,080 | 62,363 | 53,654 | 42,850 | 31,307 | 21,027 | 13,786 | 8,989 | 4,757 | 358,066 | ||||||||||||||
| 2009 | 125,156 | — | — | — | 40,703 | 95,627 | 84,339 | 69,385 | 51,121 | 35,555 | 24,896 | 16,000 | 8,724 | 426,350 | ||||||||||||||
| 2010 | 148,210 | — | — | — | — | 47,076 | 113,554 | 109,873 | 82,014 | 55,946 | 38,110 | 24,515 | 12,546 | 483,634 | ||||||||||||||
| 2011 | 209,654 | — | — | — | — | — | 61,971 | 174,461 | 152,908 | 108,513 | 73,793 | 48,711 | 25,782 | 646,139 | ||||||||||||||
| 2012 | 254,447 | — | — | — | — | — | — | 56,901 | 173,589 | 146,198 | 97,267 | 59,981 | 31,838 | 565,774 | ||||||||||||||
| 2013 | 391,612 | — | — | — | — | — | — | — | 101,614 | 247,849 | 194,026 | 120,789 | 62,833 | 727,111 | ||||||||||||||
| 2014 | 405,910 | — | — | — | — | — | — | — | — | 92,660 | 253,448 | 170,311 | 90,971 | 607,390 | ||||||||||||||
| 2015 | 445,198 | — | — | — | — | — | — | — | — | — | 116,951 | 228,432 | 148,469 | 493,852 | ||||||||||||||
| 2016 | 456,426 | — | — | — | — | — | — | — | — | — | — | 138,723 | 199,942 | 338,665 | ||||||||||||||
| 2017 | 377,203 | — | — | — | — | — | — | — | — | — | — | — | 60,165 | 60,165 | ||||||||||||||
| Subtotal | 3,618,721 | 861,003 | 235,150 | 269,881 | 281,632 | 342,755 | 429,069 | 542,875 | 656,508 | 752,995 | 844,768 | 837,196 | 656,682 | 6,710,514 | ||||||||||||||
| Americas-Insolvency | ||||||||||||||||||||||||||||
| 1996-2006 | 54,396 | 34,138 | 24,166 | 14,822 | 8,212 | 4,518 | 2,141 | 1,023 | 678 | 437 | 302 | 193 | 113 | 90,743 | ||||||||||||||
| 2007 | 78,524 | — | 2,850 | 27,972 | 25,630 | 22,829 | 16,093 | 7,551 | 1,206 | 714 | 500 | 270 | 148 | 105,763 | ||||||||||||||
| 2008 | 108,578 | — | — | 14,024 | 35,894 | 37,974 | 35,690 | 28,956 | 11,650 | 1,884 | 1,034 | 635 | 251 | 167,992 | ||||||||||||||
| 2009 | 155,996 | — | — | — | 16,635 | 81,780 | 102,780 | 107,888 | 95,725 | 53,945 | 5,781 | 2,531 | 1,284 | 468,349 | ||||||||||||||
| 2010 | 208,963 | — | — | — | — | 39,486 | 104,499 | 125,020 | 121,717 | 101,873 | 43,649 | 5,008 | 1,966 | 543,218 | ||||||||||||||
| 2011 | 180,479 | — | — | — | — | — | 15,218 | 66,379 | 82,752 | 85,816 | 76,915 | 35,996 | 3,135 | 366,211 | ||||||||||||||
| 2012 | 251,471 | — | — | — | — | — | — | 17,388 | 103,610 | 94,141 | 80,079 | 60,715 | 26,053 | 381,986 | ||||||||||||||
| 2013 | 227,999 | — | — | — | — | — | — | — | 52,528 | 82,596 | 81,679 | 63,386 | 37,763 | 317,952 | ||||||||||||||
| 2014 | 148,769 | — | — | — | — | — | — | — | — | 37,045 | 50,880 | 44,313 | 28,976 | 161,214 | ||||||||||||||
| 2015 | 63,223 | — | — | — | — | — | — | — | — | — | 3,395 | 17,892 | 15,106 | 36,393 | ||||||||||||||
| 2016 | 92,486 | — | — | — | — | — | — | — | — | — | — | 18,869 | 23,686 | 42,555 | ||||||||||||||
| 2017 | 236,201 | — | — | — | — | — | — | — | — | — | — | — | 24,931 | 24,931 | ||||||||||||||
| Subtotal | 1,807,085 | 34,138 | 27,016 | 56,818 | 86,371 | 186,587 | 276,421 | 354,205 | 469,866 | 458,451 | 344,214 | 249,808 | 163,412 | 2,707,307 | ||||||||||||||
| Total Americas | 5,425,806 | 895,141 | 262,166 | 326,699 | 368,003 | 529,342 | 705,490 | 897,080 | 1,126,374 | 1,211,446 | 1,188,982 | 1,087,004 | 820,094 | 9,417,821 | ||||||||||||||
| Europe-Core | ||||||||||||||||||||||||||||
| 2012 | 20,451 | — | — | — | — | — | — | 11,604 | 8,995 | 5,641 | 3,175 | 2,198 | 1,501 | 33,114 | ||||||||||||||
| 2013 | 20,365 | — | — | — | — | — | — | — | 7,068 | 8,540 | 2,347 | 1,326 | 911 | 20,192 | ||||||||||||||
| 2014 | 797,808 | — | — | — | — | — | — | — | — | 153,180 | 291,980 | 246,365 | 165,299 | 856,824 | ||||||||||||||
| 2015 | 423,412 | — | — | — | — | — | — | — | — | — | 45,760 | 100,263 | 64,096 | 210,119 | ||||||||||||||
| 2016 | 348,867 | — | — | — | — | — | — | — | — | — | — | 40,368 | 58,373 | 98,741 | ||||||||||||||
| 2017 | 97,295 | — | — | — | — | — | — | — | — | — | — | — | 9,703 | 9,703 | ||||||||||||||
| Subtotal | 1,708,198 | — | — | — | — | — | — | 11,604 | 16,063 | 167,361 | 343,262 | 390,520 | 299,883 | 1,228,693 | ||||||||||||||
| Europe-Insolvency | ||||||||||||||||||||||||||||
| 2014 | 10,876 | — | — | — | — | — | — | — | — | 5 | 4,297 | 3,921 | 2,464 | 10,687 | ||||||||||||||
| 2015 | 19,418 | — | — | — | — | — | — | — | — | — | 2,954 | 4,366 | 3,875 | 11,195 | ||||||||||||||
| 2016 | 42,222 | — | — | — | — | — | — | — | — | — | — | 6,175 | 9,669 | 15,844 | ||||||||||||||
| 2017 | 21,402 | — | — | — | — | — | — | — | — | — | — | — | 354 | 354 | ||||||||||||||
| Subtotal | 93,918 | — | — | — | — | — | — | — | — | 5 | 7,251 | 14,462 | 16,362 | 38,080 | ||||||||||||||
| Total Europe | 1,802,116 | — | — | — | — | — | — | 11,604 | 16,063 | 167,366 | 350,513 | 404,982 | 316,245 | 1,266,773 | ||||||||||||||
| Total PRA Group | $ | 7,227,922 | $ | 895,141 | $ | 262,166 | $ | 326,699 | $ | 368,003 | $ | 529,342 | $ | 705,490 | $ | 908,684 | $ | 1,142,437 | $ | 1,378,812 | $ | 1,539,495 | $ | 1,491,986 | $ | 1,136,339 | $ | 10,684,594 |
| (1) The amount reflected in the Purchase Price also includes the acquisition date finance receivables portfolios that were acquired through our various business acquisitions. | ||||||||||||||||||||||||||||
| (2) For our international amounts, Cash Collections are presented using the average exchange rates during the cash collection period. | ||||||||||||||||||||||||||||
| (3) For our international amounts, Purchase Price is presented at the exchange rate at the end of the quarter in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the period end exchange rate for the respective quarter of purchase. | ||||||||||||||||||||||||||||
Investor Contact:
Darby Schoenfeld
Vice President, Investor Relations
(757) 431-7913
Darby.Schoenfeld@PRAGroup.com
News Media Contact:
Nancy Porter
Vice President, Corporate Marketing
(757) 431-7950
Nancy.Porter@PRAGroup.com