NORFOLK, Va., Nov. 5, 2015 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring nonperforming loans, today reported its financial results for the third quarter of 2015. The company reported diluted earnings per share of $0.36 and non-GAAP diluted earnings per share of $0.99 for the third quarter of 2015. Non-GAAP financial results are presented in constant currency with the third quarter of 2014 and exclude items unrelated to normal operations. A reconciliation of all non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.
The Company also announced that its Board of Directors authorized a new $125 million share repurchase program. During the third quarter of 2015, the Company repurchased $7.7 million, or approximately 133,000 shares, of common stock.
Third Quarter Highlights
-
Cash collections of $380.8 million, up 2% from the third quarter of 2014. Non-GAAP cash collections were $392.1 million, an increase of 5% over the prior year period.
-
Revenues of $229.4 million and non-GAAP revenues of $235.3 million.
-
Income from operations of $54.1 million and non-GAAP income from operations of $87.0 million.
-
Net income of $17.4 million and non-GAAP net income of $48.0 million.
-
Return on average equity, annualized, of 7.8% and non-GAAP return on average equity, annualized of 21.4%.
-
$344.6 million in investments.
"Many of the same trends that have been prevalent throughout the last year continued in the third quarter. Our operational performance remained solid, cash collections in the U.S. call centers continued to grow dramatically, up over 27% year over year, and investment was formidable at $345 million in the quarter," said Steve Fredrickson, chairman and chief executive officer, PRA Group. "Additionally, the original underwritten portfolio associated with the acquisition of Aktiv Kapital continues to perform better than expected and we continue to invest a substantial amount of capital in European markets. The progress we have made in the last year and the performance of our European team has exceeded our expectations."
REVENUES
-
Total revenues of $229.4 million in the third quarter included finance receivables income net of principal amortization and net allowance charges. Non-GAAP total revenues were $235.3 million versus $239.0 million in year-ago quarter.
-
Cash collections increased 2% in the third quarter from the year-ago quarter to $380.8 million. Non-GAAP cash collections were $392.1 million, an increase of 5% over the year-ago quarter. Both GAAP and non-GAAP cash collections are reported below and included collections from these finance receivables sources:
|
Cash Collection Source ($ in thousands) |
Q3-2015 |
Q2-2015 |
Q1-2015 |
Q4-2014 |
Q3-2014 |
|
Americas-Core |
$ 210,725 |
$ 218,838 |
$ 219,371 |
$ 185,921 |
$ 189,027 |
|
Americas-Insolvency |
81,865 |
92,974 |
95,533 |
103,104 |
110,544 |
|
Europe-Core |
85,635 |
76,602 |
83,876 |
84,398 |
73,172 |
|
Europe-Insolvency |
2,528 |
1,210 |
967 |
5 |
-- |
|
Total Cash Collections |
$ 380,753 |
$ 389,624 |
$ 399,747 |
$ 373,428 |
$ 372,743 |
|
|
|
|
|
|
|
|
Cash Collection Source -Constant Currency |
|
|
|
|
|
|
Adjusted ($ in thousands) |
Q3-2015* |
Q3-2014 |
|
|
|
|
Americas-Core |
$ 211,527 |
$ 189,027 |
|
|
|
|
Americas-Insolvency |
81,865 |
110,544 |
|
|
|
|
Europe-Core |
96,180 |
73,172 |
|
|
|
|
Europe-Insolvency |
2,528 |
-- |
|
|
|
|
Total Cash Collections |
$ 392,100 |
$ 372,743 |
|
|
|
|
|
|
|
|
|
|
|
*Amounts for Q3-2015 have been adjusted to reflect what the cash collection totals would have been had the foreign currency exchange rates from Q3-2014 remained constant through Q3-2015. |
-
Principal amortization of finance receivables in the third quarter was $172.6 million or 45.3% of cash collections, compared with 39.8% in the year-ago quarter. Principal amortization included a net allowance charge of $11.3 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance reversal of $1.7 million recorded in the year-ago quarter. Non-GAAP principal amortization was $178.0 million in the third quarter of 2015.
-
Revenues in the third quarter also included income from PRA Group's fee-based businesses of $17.8 million, compared with $12.8 million in the year-ago quarter, and other income of $3.4 million compared with $1.9 million in the year-ago quarter.
EXPENSES AND OPERATING INCOME
-
Operating expenses were $175.3 million in the third quarter, compared with $150.8 million a year ago. Non-GAAP operating expenses were $148.3 million versus $144.0 million a year ago, an increase of 3%.
-
Operating income in the third quarter was $54.1 million, compared with $88.2 million in the year-ago quarter. Non-GAAP operating income was $87.0 million in the third quarter versus $95.0 million a year ago. The operating margin was 23.6% in the third quarter and the non-GAAP operating margin was 37.0%.
-
The provision for income taxes was $16.6 million in the third quarter compared to $28.5 million in the year-ago quarter. PRA Group's provision for income taxes was 48.6% of income before taxes in the third quarter, compared with 35.8% in the year-ago quarter. The third quarter of 2015 included some unusual non-cash, one-time tax items of $2.5 million. Non-GAAP provision for income taxes in the third quarter was $26.0 million versus $33.4 million a year ago.
PORTFOLIO ACQUISITIONS
-
PRA Group invested $344.6 million in new finance receivables in the third quarter.
|
|
|
|
|
|
|
Portfolio Purchase Source
($ in thousands) |
Q32015 |
Q22015 |
Q12015 |
Q42014 |
Q32014 |
|
Americas-Core |
$ 90,912 |
$ 98,317 |
$ 138,498 |
$ 119,714 |
$ 118,018 |
|
Americas-Insolvency |
9,300 |
19,111 |
16,437 |
24,949 |
38,535 |
|
Europe-Core (1) |
240,385 |
88,499 |
21,579 |
123,194 |
734,803 |
|
Europe-Insolvency |
3,959 |
2,450 |
8,510 |
11,625 |
-- |
|
Total Portfolio Purchasing |
$ 344,556 |
$ 208,377 |
$ 185,024 |
$ 279,482 |
$ 891,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes the $27.9 million and $34.7 million investment in the securitized fund in Poland during the three months ended March 31, 2015 and December 31, 2014, respectively. |
BALANCE SHEET
-
Borrowings totaled $1,654.5 million as of September 30, 2015, consisting of $478.3 million drawn on the domestic revolver, $568.5 million drawn on the multi-currency revolver, $264.0 million in convertible senior notes, $173.8 million in other long-term debt and $169.9 million in seller financing. Total borrowings were $1,425.4 million as of September 30, 2014.
-
Cash and cash equivalents were $69.1 million as of September 30, 2015, compared with $70.3 million as of September 30, 2014.
-
Net deferred tax liabilities were $267.6 million as of September 30, 2015, compared with $237.2 million as of September 30, 2014.
-
Stockholders' equity was $863.5 million as of September 30, 2015, compared with $959.9 million as of September 30, 2014.
Conference Call Information
PRA Group will hold a conference call today at 6:00 p.m. ET to discuss results with institutional investors and stock analysts. To listen to a webcast of the call, 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 71196657. A question-and-answer session on the call will be open only to analysts or investors. To listen to a replay of the call until November 11, 2015, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 71196657.
About PRA Group
As a global leader in acquiring nonperforming loans, PRA Group returns capital to global banks and other creditors to help expand financial services for consumers in the Americas and Europe. PRA Group companies collaborate with customers to help them resolve their debt and provide a broad range of additional revenue and recovery services to business and government clients.
PRA has been recognized as one of Fortune's 100 Fastest-Growing Companies for three years and one of Forbes' Best Small Companies in America for eight consecutive years since 2007. 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 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, filed with the Securities and Exchange Commission and available through PRA Group's website, which 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
September 30, |
Nine Months Ended
September 30, |
|
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
Income recognized on finance receivables, net |
$ 208,184 |
$ 224,326 |
$ 656,651 |
$ 584,814 |
|
Fee income |
17,803 |
12,757 |
44,734 |
42,875 |
|
Other revenue |
3,443 |
1,890 |
10,448 |
2,549 |
|
|
|
|
|
|
|
Total revenues |
229,430 |
238,973 |
711,833 |
630,238 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Compensation and employee services |
66,084 |
65,237 |
199,675 |
169,083 |
|
Legal collection fees |
13,715 |
13,778 |
41,520 |
35,982 |
|
Legal collection costs |
18,879 |
20,367 |
59,289 |
72,329 |
|
Agent fees |
7,961 |
5,988 |
24,006 |
8,902 |
|
Outside fees and services |
12,583 |
17,210 |
37,846 |
40,114 |
|
Communication |
8,021 |
8,642 |
26,512 |
25,370 |
|
Rent and occupancy |
3,684 |
3,283 |
10,723 |
8,032 |
|
Depreciation and amortization |
5,413 |
4,949 |
14,939 |
13,107 |
|
Other operating expenses |
38,963 |
11,330 |
58,151 |
25,111 |
|
|
|
|
|
|
|
Total operating expenses |
175,303 |
150,784 |
472,661 |
398,030 |
|
|
|
|
|
|
|
Income from operations |
54,127 |
88,189 |
239,172 |
232,208 |
|
|
|
|
|
|
|
Other income and (expense): |
|
|
|
|
|
Interest expense |
(16,787) |
(11,807) |
(45,015) |
(21,733) |
|
Net foreign currency transaction gain/(loss) |
(3,160) |
3,258 |
7,213 |
(2,931) |
|
|
|
|
|
|
|
Income before income taxes |
34,180 |
79,640 |
201,370 |
207,544 |
|
|
|
|
|
|
|
Provision for income taxes |
16,597 |
28,473 |
74,227 |
78,030 |
|
|
|
|
|
|
|
Net income |
$ 17,583 |
$ 51,167 |
$ 127,143 |
$ 129,514 |
|
|
|
|
|
|
|
Less net income attributable to noncontrolling interest |
187 |
-- |
187 |
-- |
|
|
|
|
|
|
|
Net income attributable to PRA Group, Inc. |
$ 17,396 |
$ 51,167 |
$ 126,956 |
$ 129,514 |
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
Basic |
$ 0.36 |
$ 1.02 |
$ 2.62 |
$ 2.59 |
|
Diluted |
$ 0.36 |
$ 1.01 |
$ 2.61 |
$ 2.57 |
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
Basic |
48,265 |
50,075 |
48,438 |
50,023 |
|
Diluted |
48,498 |
50,439 |
48,693 |
50,413 |
|
|
|
PRA Group, Inc. |
|
Unaudited Consolidated Balance Sheets |
|
(in thousands, except per share amounts) |
|
|
|
|
|
ASSETS |
September 30,
2015 |
December 31,
2014 |
|
|
|
|
|
Cash and cash equivalents |
$ 69,111 |
$ 39,661 |
|
Investments |
75,985 |
89,703 |
|
Finance receivables, net |
2,167,178 |
2,001,790 |
|
Other receivables, net |
24,648 |
12,959 |
|
Income taxes receivable |
12,840 |
-- |
|
Net deferred tax asset |
831 |
6,126 |
|
Property and equipment, net |
46,105 |
48,258 |
|
Goodwill |
502,383 |
527,445 |
|
Intangible assets, net |
24,458 |
10,933 |
|
Other assets |
61,011 |
41,876 |
|
|
|
|
|
Total assets |
$ 2,984,550 |
$ 2,778,751 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
Accounts payable |
$ 3,693 |
$ 4,446 |
|
Accrued expenses |
97,123 |
89,361 |
|
Income taxes payable |
9,534 |
11,020 |
|
Other liabilities |
4,460 |
5,962 |
|
Net deferred tax liability |
267,587 |
255,587 |
|
Interest bearing deposits |
46,277 |
27,704 |
|
Borrowings |
1,654,457 |
1,482,456 |
|
|
|
|
|
Total liabilities |
2,083,131 |
1,876,536 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares - 0 |
-- |
-- |
|
Common stock, par value $0.01, 100,000 authorized shares, 48,204 issued and outstanding shares at September 30, 2015, and 49,577 issued and outstanding shares at December 31, 2014 |
482 |
496 |
|
Additional paid-in capital |
31,344 |
111,659 |
|
Retained earnings |
1,032,966 |
906,010 |
|
Accumulated other comprehensive (loss) |
(201,275) |
(115,950) |
|
Total stockholders' equity - PRA Group, Inc. |
863,517 |
902,215 |
|
Noncontrolling interest |
37,902 |
-- |
|
Total equity |
901,419 |
902,215 |
|
Total liabilities and total equity |
$ 2,984,550 |
$ 2,778,751 |
|
PRA Group, Inc. |
|
FINANCIAL HIGHLIGHTS |
|
|
As of and for the
Three Months Ended September 30, |
As of and for the
Nine Months Ended September 30, |
|
|
2015 |
2014 |
Change |
2015 |
2014 |
Change |
|
EARNINGS (in thousands) |
|
|
|
|
|
|
|
Income recognized on finance receivables, net |
$ 208,184 |
$ 224,326 |
-7% |
$ 656,651 |
$ 584,814 |
12% |
|
Fee income |
17,803 |
12,757 |
40% |
44,734 |
42,875 |
4% |
|
Other revenue |
3,443 |
1,890 |
82% |
10,448 |
2,549 |
310% |
|
Total revenues |
229,430 |
238,973 |
-4% |
711,833 |
630,238 |
13% |
|
Operating expenses |
175,303 |
150,784 |
16% |
472,661 |
398,030 |
19% |
|
Income from operations |
54,127 |
88,189 |
-39% |
239,172 |
232,208 |
3% |
|
Net interest expense |
16,787 |
11,807 |
42% |
45,015 |
21,733 |
107% |
|
Net income |
17,583 |
51,167 |
-66% |
127,143 |
129,514 |
-2% |
|
Net income attributable to PRA Group, Inc. |
17,396 |
51,167 |
-66% |
126,956 |
129,514 |
-2% |
|
|
|
|
|
|
|
|
|
PERIOD-END BALANCES (in thousands) |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 69,111 |
$ 70,300 |
-2% |
$ 69,111 |
$ 70,300 |
-2% |
|
Finance receivables, net |
2,167,178 |
1,913,710 |
13% |
2,167,178 |
1,913,710 |
13% |
|
Goodwill and intangible assets, net |
502,383 |
606,716 |
-17% |
502,383 |
606,716 |
-17% |
|
Total assets |
2,984,550 |
2,757,429 |
8% |
2,984,550 |
2,757,429 |
8% |
|
Borrowings |
1,654,457 |
1,425,409 |
16% |
1,654,457 |
1,425,409 |
16% |
|
Total liabilities |
2,083,131 |
1,797,569 |
16% |
2,083,131 |
1,797,569 |
16% |
|
Total equity - PRA Group, Inc. |
863,517 |
959,860 |
-10% |
863,517 |
959,860 |
-10% |
|
|
|
|
|
|
|
|
|
FINANCE RECEIVABLE INCOME (dollars in thousands) |
|
|
|
|
|
|
|
Cash collections |
$ 380,753 |
$ 372,743 |
2% |
$ 1,170,124 |
$ 1,005,384 |
16% |
|
Cash collections on fully amortized pools |
11,453 |
17,105 |
-33% |
43,620 |
50,564 |
-14% |
|
Principal amortization without allowance (reversals)/charges |
161,234 |
150,115 |
7% |
495,623 |
426,520 |
16% |
|
Allowance (reversal)/charge |
11,335 |
(1,698) |
-768% |
17,850 |
(5,950) |
-400% |
|
Principal amortization with allowance (reversals)/charges |
172,569 |
148,417 |
16% |
513,473 |
420,570 |
22% |
|
Principal amortization w/ allowance charges as % of cash collections: |
|
|
|
|
|
|
|
Including fully amortized pools |
45.3% |
39.8% |
14% |
43.9% |
41.8% |
5% |
|
Excluding fully amortized pools |
46.7% |
41.7% |
12% |
45.6% |
44.0% |
3% |
|
Allowance (reversal)/charge to period-end net finance receivables |
0.5% |
(0.1%) |
-689% |
0.8% |
(0.3%) |
-365% |
|
|
|
|
|
|
|
|
|
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) |
|
|
|
|
|
|
|
Purchase price - Americas core |
$ 90,912 |
$ 118,018 |
-23% |
$ 327,727 |
$ 289,007 |
13% |
|
Purchase price - Americas insolvency |
9,300 |
38,535 |
-76% |
44,848 |
126,725 |
-65% |
|
Purchase price - Europe core |
240,385 |
734,803 |
-67% |
350,463 |
737,550 |
-52% |
|
Purchase price - Europe insolvency |
3,959 |
-- |
100% |
14,919 |
-- |
100% |
|
Purchase price - total |
344,556 |
891,356 |
-61% |
737,957 |
1,153,282 |
-36% |
|
Number of portfolios - total |
128 |
125 |
2% |
403 |
314 |
28% |
|
ESTIMATED REMAINING COLLECTIONS (in thousands) |
|
|
|
|
|
|
|
Estimated remaining collections - Americas core |
$ 2,421,506 |
$ 2,089,253 |
16% |
$ 2,421,506 |
$ 2,089,253 |
16% |
|
Estimated remaining collections - Americas insolvency |
474,097 |
697,662 |
-32% |
474,097 |
697,662 |
-32% |
|
Estimated remaining collections - Europe core |
1,903,226 |
1,582,135 |
20% |
1,903,226 |
1,582,135 |
20% |
|
Estimated remaining collections - Europe insolvency |
30,081 |
-- |
100% |
30,081 |
-- |
100% |
|
Estimated remaining collections - total |
4,828,910 |
4,369,050 |
11% |
4,828,910 |
4,369,050 |
11% |
|
Adjusted estimated remaining collections (7) |
4,945,609 |
4,369,050 |
13% |
4,945,609 |
4,369,050 |
13% |
|
|
|
|
|
|
|
|
|
SHARE DATA (share amounts in thousands) |
|
|
|
|
|
|
|
Net income per common share - diluted |
$ 0.36 |
$ 1.01 |
-64% |
$ 2.61 |
$ 2.57 |
2% |
|
Weighted average number of shares outstanding - diluted |
48,498 |
50,439 |
-4% |
48,693 |
50,413 |
-3% |
|
Shares repurchased |
133 |
-- |
0% |
1,611 |
-- |
100% |
|
Average price paid per share repurchased (including acquisitions costs) |
$ 58.08 |
$ -- |
0% |
$ 53.10 |
$ -- |
100% |
|
Closing market price |
$ 52.92 |
$ 52.23 |
1% |
$ 52.92 |
$ 52.23 |
1% |
|
|
|
|
|
|
|
|
|
RATIOS AND OTHER DATA (dollars in thousands) |
|
|
|
|
|
|
|
Return on average equity (1) |
7.8% |
21.1% |
-63% |
19.9% |
17.1% |
16% |
|
Return on revenue (2) |
7.7% |
21.4% |
-64% |
17.9% |
20.6% |
-13% |
|
Return on average assets (3) |
2.3% |
7.3% |
-68% |
6.0% |
9.5% |
-37% |
|
Operating margin (4) |
23.6% |
36.9% |
-36% |
33.6% |
36.8% |
-9% |
|
Operating expense to cash receipts (5) |
44.0% |
39.1% |
12% |
38.9% |
38.0% |
2% |
|
Debt to stockholders' equity (6) |
191.6% |
148.5% |
29% |
191.6% |
148.5% |
29% |
|
Number of full-time equivalent collectors |
2,159 |
2,498 |
-14% |
2,159 |
2,498 |
-14% |
|
Number of full-time equivalent employees |
3,715 |
3,913 |
-5% |
3,715 |
3,913 |
-5% |
|
Cash receipts (5) |
$ 398,556 |
$ 385,500 |
3% |
$ 1,214,858 |
$ 1,048,259 |
16% |
|
Line of credit - unused portion at period end |
393,246 |
513,800 |
-23% |
393,246 |
513,800 |
-23% |
|
(1) Calculated as annualized net income divided by average equity for the period |
|
|
|
|
|
|
(2) Calculated as net income divided by total revenues |
|
|
|
|
|
|
|
(3) Calculated as annualized net income divided by average assets for the period |
|
|
|
|
|
|
(4) Calculated as income from operations divided by total revenues |
|
|
|
|
|
|
|
(5) "Cash receipts" is defined as cash collections plus fee income |
|
|
|
|
|
|
|
(6) For purposes of this ratio, "debt" equals borrowings |
|
|
|
|
|
|
|
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments. |
|
|
|
|
|
|
|
|
|
PRA Group, Inc. |
|
FINANCIAL HIGHLIGHTS |
|
|
For the Quarter Ended |
|
|
September 30
2015 |
June 30
2015 |
March 31
2015 |
December 31
2014 |
September 30
2014 |
|
EARNINGS (in thousands) |
|
|
|
|
|
|
Income recognized on finance receivables, net |
$ 208,184 |
$ 220,064 |
$ 228,403 |
$ 222,660 |
$ 224,326 |
|
Fee income |
17,803 |
13,878 |
13,053 |
22,800 |
12,757 |
|
Other revenue |
3,443 |
3,255 |
3,750 |
5,271 |
1,890 |
|
Total revenues |
229,430 |
237,197 |
245,206 |
250,731 |
238,973 |
|
Operating expenses |
175,303 |
148,318 |
149,040 |
140,871 |
150,784 |
|
Income from operations |
54,127 |
88,879 |
96,166 |
109,860 |
88,189 |
|
Net interest expense |
16,787 |
13,452 |
14,776 |
13,493 |
11,807 |
|
Net income |
17,583 |
51,425 |
58,135 |
46,991 |
51,167 |
|
Net income attributable to PRA Group, Inc. |
17,396 |
51,425 |
58,135 |
46,991 |
51,167 |
|
|
|
|
|
|
|
|
PERIOD-END BALANCES (in thousands) |
|
|
|
|
|
|
Cash and cash equivalents |
$ 69,111 |
$ 56,811 |
$ 40,542 |
$ 39,661 |
$ 70,300 |
|
Finance receivables, net |
2,167,178 |
2,012,552 |
1,954,772 |
2,001,790 |
1,913,710 |
|
Goodwill and intangible assets, net |
502,383 |
503,001 |
506,695 |
538,378 |
606,716 |
|
Total assets |
2,984,550 |
2,783,756 |
2,700,613 |
2,778,751 |
2,757,429 |
|
Borrowings |
1,654,457 |
1,503,363 |
1,479,262 |
1,482,456 |
1,425,409 |
|
Total liabilities |
2,083,131 |
1,885,880 |
1,883,295 |
1,876,536 |
1,797,569 |
|
Total equity - PRA Group, Inc. |
863,517 |
897,876 |
817,318 |
902,215 |
959,860 |
|
|
|
|
|
|
|
|
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands) |
|
|
|
|
|
|
Cash collections |
$ 380,753 |
$ 389,624 |
$ 399,747 |
$ 373,428 |
$ 372,743 |
|
Cash collections on fully amortized pools |
11,453 |
15,162 |
17,005 |
17,785 |
17,105 |
|
Principal amortization without allowance (reversals)/charges |
161,234 |
164,675 |
169,714 |
149,753 |
150,115 |
|
Allowance (reversal)/charge |
11,335 |
4,885 |
1,630 |
1,015 |
(1,698) |
|
Principal amortization with allowance (reversals)/charges |
172,569 |
169,560 |
171,344 |
150,768 |
148,417 |
|
Principal amortization w/ allowance charges as % of cash collections: |
|
|
|
|
|
Including fully amortized pools |
45.3% |
43.5% |
42.9% |
40.4% |
39.8% |
|
Excluding fully amortized pools |
46.7% |
45.3% |
44.8% |
42.4% |
41.7% |
|
Allowance (reversal)/charge to period-end net finance receivables |
0.5% |
0.2% |
0.1% |
0.1% |
-0.1% |
|
|
|
|
|
|
|
|
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands) |
|
|
|
|
|
Purchase price - North America core |
$ 90,912 |
$ 98,317 |
$ 138,498 |
$ 119,714 |
$ 118,018 |
|
Purchase price - North America insolvency |
9,300 |
19,111 |
16,437 |
24,949 |
38,535 |
|
Purchase price - Europe core |
240,385 |
88,499 |
21,579 |
123,194 |
734,803 |
|
Purchase price - Europe insolvency |
3,959 |
2,450 |
8,510 |
11,625 |
-- |
|
Purchase price - total |
344,556 |
208,377 |
185,024 |
279,482 |
891,356 |
|
Number of portfolios - total |
128 |
136 |
139 |
142 |
125 |
|
ESTIMATED REMAINING COLLECTIONS (in thousands) |
|
|
|
|
|
|
Estimated remaining collections - Americas core |
$ 2,421,506 |
$ 2,384,698 |
$ 2,370,086 |
$ 2,229,403 |
$ 2,089,253 |
|
Estimated remaining collections - Americas insolvency |
474,097 |
529,892 |
577,319 |
642,552 |
697,662 |
|
Estimated remaining collections - Europe core |
1,903,226 |
1,685,694 |
1,619,454 |
1,478,738 |
1,582,135 |
|
Estimated remaining collections - Europe insolvency |
30,081 |
26,807 |
24,838 |
15,021 |
-- |
|
Estimated remaining collections - total |
4,828,910 |
4,627,091 |
4,591,697 |
4,365,714 |
4,369,050 |
|
Adjusted estimated remaining collections (7) |
4,945,609 |
4,747,552 |
4,716,230 |
4,437,264 |
-- |
|
|
|
|
|
|
|
|
SHARE DATA (share amounts in thousands) |
|
|
|
|
|
|
Net income per common share - diluted |
$ 0.36 |
$ 1.06 |
$ 1.19 |
$ 0.93 |
$ 1.01 |
|
Weighted average number of shares outstanding - diluted |
48,498 |
48,529 |
49,052 |
50,444 |
50,439 |
|
Shares repurchased |
133 |
-- |
1,478 |
574 |
-- |
|
Average price paid per share repurchased (including acquisitions costs) |
$ 58.08 |
$ -- |
$ 52.65 |
$ 57.79 |
$ -- |
|
Closing market price |
$ 52.92 |
$ 62.31 |
$ 54.32 |
$ 57.93 |
$ 52.23 |
|
|
|
|
|
|
|
|
RATIOS AND OTHER DATA (dollars in thousands) |
|
|
|
|
|
|
Return on average equity (1) |
7.8% |
23.5% |
30.1% |
20.2% |
21.1% |
|
Return on revenue (2) |
7.7% |
21.7% |
23.7% |
18.7% |
21.4% |
|
Return on average assets (3) |
2.3% |
7.4% |
8.7% |
6.9% |
7.3% |
|
Operating margin (4) |
23.6% |
37.5% |
39.2% |
43.8% |
36.9% |
|
Operating expense to cash receipts (5) |
44.0% |
36.8% |
36.1% |
35.6% |
39.1% |
|
Debt to stockholders' equity (6) |
191.6% |
167.4% |
181.0% |
164.3% |
148.5% |
|
Number of collectors |
2,159 |
2,317 |
2,395 |
2,457 |
2,498 |
|
Number of full-time equivalent employees |
3,715 |
3,820 |
3,847 |
3,880 |
3,913 |
|
Cash receipts (5) |
$ 398,556 |
$ 403,502 |
$ 412,800 |
$ 396,228 |
$ 385,500 |
|
Line of credit - unused portion at period end |
393,246 |
547,017 |
323,812 |
352,926 |
513,800 |
|
(1) Calculated as annualized net income divided by average equity for the period |
|
|
|
|
|
(2) Calculated as net income divided by total revenues |
|
|
|
|
|
|
(3) Calculated as annualized net income divided by average assets for the period |
|
|
|
|
|
(4) Calculated as income from operations divided by total revenues |
|
|
|
|
|
(5) "Cash receipts" is defined as cash collections plus fee income |
|
|
|
|
|
|
(6) For purposes of this ratio, "debt" equals borrowings |
|
|
|
|
|
|
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments. |
|
|
Use of Non-GAAP Financial Measures
PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company believes certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations from non-GAAP to the most directly comparable GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for reported GAAP results.
|
Three Months Ended September 30, 2015 |
|
|
Cash
Collections |
Amortization |
Income
Recognized
on Finance
Receivables |
Fee
Income |
Other
Income |
Total
Revenues |
Expenses |
Income from
Operations |
Income
before
Taxes |
Net
Income |
Diluted
EPS |
|
As Reported |
$ 380,753 |
$ 172,569 |
$ 208,184 |
$ 17,803 |
$ 3,443 |
$ 229,430 |
$ 175,303 |
$ 54,127 |
$ 34,180 |
$ 17,396 |
$ 0.36 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
CFPB expenses including penalty and redress |
-- |
-- |
-- |
-- |
-- |
-- |
(28,806) |
28,806 |
28,806 |
20,404 |
0.42 |
|
Acquisition and other expenses |
-- |
-- |
-- |
-- |
-- |
-- |
(802) |
802 |
802 |
568 |
0.01 |
|
Non-cash interest expense |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
1,074 |
761 |
0.02 |
|
One-time tax items |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
2,488 |
0.05 |
|
Legal costs not associated with normal operations |
-- |
-- |
-- |
-- |
-- |
-- |
(1,262) |
1,262 |
1,262 |
894 |
0.02 |
|
Constant currency adjustments |
11,348 |
5,381 |
5,967 |
201 |
(301) |
5,867 |
3,895 |
1,972 |
7,919 |
5,517 |
0.11 |
|
Subtotal of adjustments |
11,348 |
5,381 |
5,967 |
201 |
(301) |
5,867 |
(26,975) |
32,842 |
39,863 |
30,632 |
0.63 |
|
As Adjusted |
392,101 |
177,950 |
214,151 |
18,004 |
3,142 |
235,297 |
148,328 |
86,969 |
74,043 |
48,028 |
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|
Cash
Collections |
Amortization |
Income
Recognized
on Finance
Receivables |
Fee
Income |
Other
Income |
Total
Revenues |
Expenses |
Income from
Operations |
Income
before
Taxes |
Net
Income |
Diluted
EPS |
|
As Reported |
$ 1,170,124 |
$ 513,473 |
$ 656,651 |
$ 44,734 |
$ 10,448 |
$ 711,833 |
$ 472,661 |
$ 239,172 |
$ 201,370 |
$ 126,956 |
$ 2.61 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
CFPB expenses including penalty and redress |
-- |
-- |
-- |
-- |
-- |
-- |
(28,806) |
28,806 |
28,806 |
21,744 |
0.45 |
|
Acquisition and other expenses |
-- |
-- |
-- |
-- |
-- |
-- |
(3,989) |
3,989 |
3,989 |
3,011 |
0.06 |
|
Non-cash interest expense |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
3,178 |
2,399 |
0.05 |
|
One-time tax items |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
2,488 |
0.05 |
|
Legal costs not associated with normal operations |
-- |
-- |
-- |
-- |
-- |
-- |
(1,669) |
1,669 |
1,669 |
1,260 |
0.03 |
|
Constant currency adjustments |
11,348 |
5,381 |
5,967 |
201 |
(301) |
5,867 |
3,895 |
1,972 |
7,919 |
5,517 |
0.11 |
|
Subtotal of adjustments |
11,348 |
5,381 |
5,967 |
201 |
(301) |
5,867 |
(30,569) |
36,436 |
45,561 |
36,419 |
0.75 |
|
As Adjusted |
1,181,472 |
518,854 |
662,618 |
44,935 |
10,147 |
717,700 |
442,092 |
275,608 |
246,931 |
163,375 |
3.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014 |
|
|
Cash
Collections |
Amortization |
Income
Recognized
on Finance
Receivables |
Fee
Income |
Other
Income |
Total
Revenues |
Expenses |
Income from
Operations |
Income
before
Taxes |
Net
Income |
Diluted
EPS |
|
As Reported |
$ 372,743 |
$ 148,417 |
$ 224,326 |
$ 12,757 |
$ 1,890 |
$ 238,973 |
$ 150,784 |
$ 88,189 |
$ 79,640 |
$ 51,167 |
$ 1.01 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and other expenses |
-- |
-- |
-- |
-- |
-- |
-- |
(6,453) |
6,453 |
6,453 |
4,021 |
0.08 |
|
Non-cash interest expense |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
1,023 |
637 |
0.01 |
|
One-time tax items |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
(1,232) |
(0.02) |
|
Loss on foreign currency exchange contracts |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
2,016 |
1,256 |
0.02 |
|
Legal costs not associated with normal operations |
-- |
-- |
-- |
-- |
-- |
-- |
(381) |
381 |
381 |
237 |
0.00 |
|
Subtotal of adjustments |
-- |
-- |
-- |
-- |
-- |
-- |
(6,834) |
6,834 |
9,873 |
4,920 |
0.10 |
|
As Adjusted |
372,743 |
148,417 |
224,326 |
12,757 |
1,890 |
238,973 |
143,950 |
95,023 |
89,513 |
56,087 |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014 |
|
|
Cash
Collections |
Amortization |
Income
Recognized
on Finance
Receivables |
Fee
Income |
Other
Income |
Total
Revenues |
Expenses |
Income from
Operations |
Income
before
Taxes |
Net
Income |
Diluted
EPS |
|
As Reported |
$ 1,005,386 |
$ 420,572 |
$ 584,814 |
$ 42,875 |
$ 2,549 |
$ 630,238 |
$ 398,030 |
$ 232,208 |
$ 207,544 |
$ 129,514 |
$ 2.57 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and other expenses |
-- |
-- |
-- |
-- |
-- |
-- |
(14,866) |
14,866 |
14,866 |
9,141 |
0.18 |
|
Non-cash interest expense |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
3,028 |
1,862 |
0.04 |
|
One-time tax items |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
(1,232) |
(0.02) |
|
Loss on foreign currency exchange contracts |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
8,240 |
5,066 |
0.10 |
|
Legal costs not associated with normal operations |
-- |
-- |
-- |
-- |
-- |
-- |
(424) |
424 |
424 |
261 |
0.01 |
|
Subtotal of adjustments |
-- |
-- |
-- |
-- |
-- |
-- |
(15,290) |
15,290 |
26,558 |
15,098 |
0.30 |
|
As Adjusted |
1,005,386 |
420,572 |
584,814 |
42,875 |
2,549 |
630,238 |
382,740 |
247,498 |
234,102 |
144,612 |
2.87 |
CONTACT: Investor Contact:
Darby Schoenfeld
Director of Investor Relations
(757) 431-7913
DCSchoenfeld@PRAGroup.com
News Media Contact:
Nancy Porter
Vice President, Corporate Communications
(757) 431-7950
NAPorter@PRAGroup.com
