false000118534800011853482024-02-152024-02-15

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)
Delaware000-5005875-3078675
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
120 Corporate Boulevard
Norfolk, Virginia23502
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ 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
104Cover 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, 2024By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer





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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)2023202220232022
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 Source20232022
($ in thousands)Q4Q3Q2Q1Q4
Americas and Australia Core$220,127 $223,714 $220,886 $227,960 $205,619 
Americas Insolvency24,293 27,809 26,384 25,751 27,971 
Europe Core144,361 144,402 149,324 134,005 134,016 
Europe Insolvency21,502 23,639 22,725 23,568 24,051 
Total Cash Collections$410,283 $419,564 $419,319 $411,284 $391,657 
Cash Collection Source -
Constant Currency Adjusted20232022
($ in thousands)Q4Q4
Americas and Australia Core$220,127 $208,013 
Americas Insolvency24,293 27,970 
Europe Core144,361 140,393 
Europe Insolvency21,502 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 $150.0 million in Europe.
Portfolio Purchase Source20232022
($ in thousands)Q4Q3Q2Q1Q4
Americas and Australia Core$143,052 $187,554 $171,440 $116,867 $118,581 
Americas Insolvency18,608 44,279 12,189 15,701 8,967 
Europe Core110,780 60,628 136,834 90,454 140,011 
Europe Insolvency12,476 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,
2023202220232022
Revenues:
Portfolio income$194,636 $184,921 $757,128 $772,315 
Changes in expected recoveries22,754 34,087 29,134 168,904 
        Total portfolio revenue217,390 219,008 786,262 941,219 
Other revenue4,028 3,843 16,292 25,305 
Total revenues221,418 222,851 802,554 966,524 
Operating expenses:
Compensation and employee services71,070 69,922 288,778 285,537 
Legal collection fees9,844 9,060 38,072 38,450 
Legal collection costs22,903 19,063 89,131 76,757 
Agency fees20,208 16,434 74,699 63,808 
Outside fees and services20,555 20,866 82,619 92,355 
Communication9,905 7,143 40,430 39,205 
Rent and occupancy4,126 4,299 17,319 18,589 
Depreciation and amortization3,032 3,859 13,376 15,243 
Impairment of real estate202 — 5,239 — 
Other operating expenses14,044 12,893 52,399 50,778 
Total operating expenses175,889 163,539 702,062 680,722 
Income from operations45,529 59,312 100,492 285,802 
Other income and (expense):
Interest expense, net(50,946)(34,912)(181,724)(130,677)
Foreign exchange gain/(loss)(695)194 289 985 
Other(564)(572)(1,944)(1,325)
Income/(loss) before income taxes(6,676)24,022 (82,887)154,785 
Income tax expense/(benefit)(816)6,960 (16,133)36,787 
Net Income/(loss)(5,860)17,062 (66,754)117,998 
Adjustment for net income attributable to noncontrolling interests2,922 1,103 16,723 851 
Net income/(loss) attributable to PRA Group, Inc.$(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:
Basic39,245 38,978 39,177 39,638 
Diluted39,245 39,177 39,177 39,888 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
December 31, 2023December 31, 2022
Assets
Cash and cash equivalents$112,528 $83,376 
Investments72,404 79,948 
Finance receivables, net3,656,598 3,295,008 
Income taxes receivable27,713 31,774 
Deferred tax assets, net74,694 56,908 
Right-of-use assets45,877 54,506 
Property and equipment, net36,450 51,645 
Goodwill431,564 435,921 
Other assets67,526 86,588 
Total assets$4,525,354 $4,175,674 
Liabilities and Equity
Liabilities:
Accounts payable$6,325 $7,329 
Accrued expenses131,893 111,395 
Income taxes payable17,912 25,693 
Deferred tax liabilities, net17,051 42,918 
Lease liabilities50,300 59,384 
Interest-bearing deposits115,589 112,992 
Borrowings2,914,270 2,494,858 
Other liabilities32,638 34,355 
Total liabilities3,285,978 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, 2022392 390 
Additional paid-in capital7,071 2,172 
Retained earnings1,489,548 1,573,025 
Accumulated other comprehensive loss(329,899)(347,926)
Total stockholders' equity - PRA Group, Inc.1,167,112 1,227,661 
Noncontrolling interests72,264 59,089 
Total equity1,239,376 1,286,750 
Total liabilities and equity$4,525,354 $4,175,674 






Select Expenses (Income)
Amounts in thousands, pre-tax
Three Months Ended
December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Noncash interest expense - amortization of debt issuance costs2,177 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 intangibles69 69 68 66 73 73 77 83 
Impairment of real estate202 5,037 — — — — — — 
Stock-based compensation expense2,952 1,629 2,715 3,799 2,206 3,101 3,849 3,891 



Purchase Price Multiples
as of December 31, 2023
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%
2014404,117 884,911 27,461 219%204%
2015443,114 899,839 35,758 203%205%
2016455,767 1,078,122 65,679 237%201%
2017532,851 1,200,599 105,245 225%193%
2018653,975 1,482,269 152,931 227%202%
2019581,476 1,294,462 182,487 223%206%
2020435,668 951,929 216,016 218%213%
2021435,846 749,966 362,191 172%191%
2022406,082 708,070 460,475 174%179%
2023622,583 1,227,985 1,118,683 197%197%
Subtotal6,904,201 16,203,400 2,779,072 
Americas Insolvency
1996-20131,266,056 2,502,614 91 198%159%
2014148,420 218,811 98 147%124%
201563,170 88,009 73 139%125%
201691,442 117,987 256 129%123%
2017275,257 356,839 1,121 130%125%
201897,879 135,530 1,939 138%127%
2019123,077 168,658 18,261 137%128%
202062,130 90,690 28,225 146%136%
202155,187 73,803 33,804 134%136%
202233,442 46,811 34,461 140%139%
202391,282 122,780 113,508 135%135%
Subtotal2,307,342 3,922,532 231,837 
Total Americas and Australia9,211,543 20,125,932 3,010,909 
Europe Core
2012-201340,742 71,982 1 177%153%
2014 (1)
773,811 2,465,052 394,133 319%208%
2015411,340 743,591 141,158 181%160%
2016333,090 567,702 162,940 170%167%
2017252,174 363,813 107,971 144%144%
2018341,775 544,970 194,808 159%148%
2019518,610 838,326 353,219 162%152%
2020324,119 561,192 262,884 173%172%
2021412,411 695,544 428,779 169%170%
2022359,447 582,380 489,333 162%162%
2023410,593 692,580 640,924 169%169%
Subtotal4,178,112 8,127,132 3,176,150 
Europe Insolvency
2014 (1)
10,876 18,882 — 174%129%
201518,973 29,301 29 154%139%
201639,338 57,673 932 147%130%
201739,235 51,995 2,020 133%128%
201844,908 52,658 4,862 117%123%
201977,218 112,260 20,970 145%130%
2020105,440 156,670 42,614 149%129%
202153,230 72,736 33,441 137%134%
202244,604 60,935 46,620 137%137%
202346,558 64,411 60,029 138%138%
Subtotal480,380 677,521 211,517 
Total Europe4,658,492 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
For the Year Ended December 31, 2023
Amounts in thousands
Purchase Period
Cash
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 
201411,826 5,085 6,623 11,708 10,416 
201514,084 8,296 (352)7,944 15,107 
201624,898 16,456 (973)15,483 21,960 
201743,765 24,863 (5,960)18,904 43,205 
201892,931 38,221 13,105 51,326 84,611 
2019110,278 49,393 287 49,681 100,749 
2020125,832 55,634 (3,681)51,953 121,292 
2021136,807 78,122 (52,274)25,848 190,907 
2022195,438 95,009 (5,798)89,211 281,983 
2023108,414 75,234 3,074 78,307 591,032 
Subtotal892,687 461,002 (34,251)426,752 1,476,923 
Americas Insolvency
1996-20131,089 336 756 1,092 — 
2014430 249 136 385 — 
2015325 105 121 226 39 
2016893 120 521 641 228 
20174,852 438 1,457 1,895 1,013 
201812,677 1,085 (1,751)(667)1,858 
201928,698 3,149 651 3,800 17,310 
202019,470 4,202 1,000 5,202 25,023 
202117,474 4,590 924 5,515 28,874 
20229,163 3,831 716 4,547 27,851 
20239,166 4,998 2,237 7,234 85,331 
Subtotal104,237 23,103 6,768 29,870 187,527 
Total Americas and Australia996,924 484,105 (27,483)456,622 1,664,450 
Europe Core
2012-20131,029 1 1,028 1,029 — 
2014 (1)
107,571 67,749 24,528 92,277 101,742 
201533,779 16,091 2,643 18,734 72,591 
201629,663 15,334 (3,008)12,326 96,274 
201720,166 7,471 1,012 8,484 73,646 
201841,613 15,083 1,326 16,409 128,861 
201975,074 23,993 23,157 47,150 238,759 
202056,078 21,772 3,436 25,207 163,027 
202173,017 32,638 (5,931)26,707 258,670 
202283,782 34,199 986 35,185 307,528 
202350,320 20,129 (1,029)19,099 377,193 
Subtotal572,092 254,460 48,148 302,607 1,818,291 
Europe Insolvency
2014 (1)
235 — 235 235 — 
2015395 26 289 315 27 
20161,315 248 330 578 429 
20173,800 259 821 1,080 1,753 
20187,154 650 39 690 4,417 
201917,460 2,479 1,266 3,745 18,413 
202029,687 4,643 3,180 7,823 38,342 
202114,734 3,556 1,405 4,961 28,669 
202212,352 4,588 195 4,783 36,875 
20234,302 2,114 709 2,823 44,932 
Subtotal91,434 18,563 8,469 27,033 173,857 
Total Europe663,526 273,023 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)
as of December 31, 2023
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (3)(4)
1996-20132014201520162017201820192020202120222023Total
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 
2014404.1 — 92.7 253.4 170.3 114.2 82.2 55.3 31.9 22.3 15.0 11.8 849.1 
2015443.1 — — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 867.2 
2016455.8 — — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 973.8 
2017532.9 — — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 1085.1 
2018654.0 — — — — — 122.7 361.9 337.7 239.9 146.1 92.9 1301.2 
2019581.5 — — — — — — 143.8 349.0 289.8 177.7 110.3 1070.6 
2020435.7 — — — — — — — 132.9 284.3 192.0 125.8 735.0 
2021435.8— — — — — — — — 85.0 177.3 136.8 399.1 
2022406.1 — — — — — — — — — 67.7 195.4 263.1 
2023622.6 — — — — — — — — — — 108.5 108.5 
Subtotal6,904.3 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
1996-20131,266.1 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 
2014148.4 — 37.0 50.9 44.3 37.4 28.8 15.8 2.2 1.1 0.7 0.4 218.6 
201563.2 — — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 88.0 
201691.4 — — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 118.7 
2017275.3 — — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 355.8 
201897.9 — — — — — 6.7 27.4 30.5 31.6 24.6 12.7 133.5 
2019123.1 — — — — — — 13.4 31.4 39.1 37.8 28.7 150.4 
202062.1 — — — — — — — 6.5 16.1 20.4 19.5 62.5 
202155.2 — — — — — — — — 4.6 17.9 17.5 40.0 
202233.4 — — — — — — — — — 3.2 9.2 12.4 
202391.3 — — — — — — — — — — 9.0 9.0 
Subtotal2,307.4 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 Australia9,211.7 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
2012-201340.7 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 
2015411.3 — — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 559.5 
2016333.1 — — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 411.5 
2017252.2 — — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 234.3 
2018341.8 — — — — — 24.3 88.7 71.3 69.1 50.7 41.6 345.7 
2019518.6 — — — — — — 48.0 125.7 121.4 89.8 75.1 460.0 
2020324.1 — — — — — — — 32.3 91.7 69.0 56.1 249.1 
2021412.4 — — — — — — — — 48.5 89.9 73.0 211.4 
2022359.4 — — — — — — — — — 33.9 83.8 117.7 
2023410.6 — — — — — — — — — — 50.2 50.2 
Subtotal4,178.0 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 
201519.0 — — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 26.6 
201639.3 — — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 60.4 
201739.2 — — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 47.8 
201844.9 — — — — — 0.6 8.4 10.3 11.7 9.8 7.2 48.0 
201977.2 — — — — — — 5.0 21.1 23.9 21.0 17.5 88.5 
2020105.4 — — — — — — — 6.0 34.6 34.1 29.7 104.4 
202153.2 — — — — — — — — 5.5 14.4 14.7 34.6 
202244.6 — — — — — — — — — 4.5 12.4 16.9 
202346.6 — — — — — — — — — — 4.2 4.2 
Subtotal480.3 — — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 448.4 
Total Europe4,658.3 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, 2023December 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, net181 131 
Other expense2 1 
Depreciation and amortization13 15 
Impairment of real estate5 — 
Adjustment for net income attributable to noncontrolling interests17 1 
Recoveries applied to negative allowance less Changes in expected recoveries888 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, 2023December 31, 2022
Borrowings$2,914 $2,495 
Adjusted EBITDA1,007 1,107 
Debt to Adjusted EBITDA2.892.25






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

v3.24.0.1
Cover Page
Feb. 15, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 15, 2024
Entity Registrant Name PRA Group, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-50058
Entity Tax Identification Number 75-3078675
Entity Address, Address Line One 120 Corporate Boulevard
Entity Address, City or Town Norfolk,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23502
City Area Code (888)
Local Phone Number 772-7326
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol PRAA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001185348
PRA (NASDAQ:PRAA)
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