NORFOLK, Va., Feb. 27, 2018 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter and full year of 2017. The company reported net income of $86.9 million in the fourth quarter, compared with a net loss of $17.6 million in the prior year period. Diluted earnings per share were $1.92 versus a loss of $0.38 in the fourth quarter of 2016. For the full year of 2017 net income was $162.3 million, or $3.54 per diluted share, versus $85.1 million or $1.83 per diluted share in the prior year. Financial performance in the quarter was impacted by certain special items including a one-time, net after-tax benefit of $73.2 million due to the Tax Cuts and Jobs Act, pre-tax expense of $1.7 million from the impairment of a legacy PRA Group Europe passive investment, and after-tax expense of $2.0 million related to redeemable noncontrolling interest in a Polish securitization fund.
“PRA Group had a productive fourth quarter increasing cash collections 8%, investing significant capital with a record quarter in Americas Core, increasing estimated remaining collections (ERC) to $5.70 billion and increasing the number of net new full-time U.S. based collectors to over 2,725,” said Kevin Stevenson, president and chief executive officer. “In 2017, we raised capital to prepare for additional portfolio investment, invested record amounts in Americas Core and Americas Insolvency, announced the opening of two new call centers in the U.S., added over 1,100 net new full-time U.S. based collectors, and collected more cash than ever in Europe Core. I am extremely pleased by what we have accomplished this year.”
Fourth Quarter Highlights
- Cash collections of $376.3 million, an increase of 8% versus the fourth quarter of 2016.
- Americas Insolvency collections increased 12% versus the prior year quarter.
- Europe Core cash collections increased 10%.
- Americas Core cash collections increased 6% with U.S. call center cash collections increasing 16%.
- Investment in portfolios was $374.6 million, an increase of 87% versus the prior year quarter.
- Over 2,725 full-time U.S. based collectors, an increase of 70% versus the fourth quarter of 2016.
- ERC of $5.70 billion, an increase of 5% versus the third quarter of 2017.
Full Year Highlights
- Raised capital in anticipation of increased investment opportunity in the U.S.
- Set a record level of total investment of $1.11 billion, excluding business acquisitions, as well as set records in both Americas Core and Americas Insolvency.
- Opened two new call centers in the U.S. to accommodate increased portfolio investment.
- Added over 1,100 net new full-time U.S. based collectors.
- Collected more cash than ever before in Europe Core.
- Made significant operational improvements in Europe.
- Cash collections of $1.51 billion, an increase of 1% versus 2016 driven largely by a 6% increase in U.S. call center cash collections.
- ERC increased $656 million, or 13%, from the end of 2016.
Cash Collections and Revenues
- The following table presents cash collections by quarter and by source on an as reported and currency-adjusted basis:
| Cash Collection Source | 2017 | 2016 | |||||||||||
| ($ in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 | ||||||||
| Americas-Core | $ | 204,245 | $ | 212,756 | $ | 217,020 | $ | 226,906 | $ | 193,360 | |||
| Americas-Insolvency | 59,103 | 60,436 | 53,163 | 49,813 | 52,988 | ||||||||
| Europe-Core | 107,124 | 102,681 | 99,121 | 98,081 | 97,429 | ||||||||
| Europe-Insolvency | 5,794 | 5,961 | 5,371 | 5,030 | 4,974 | ||||||||
| Total Cash Collections | $ | 376,266 | $ | 381,834 | $ | 374,675 | $ | 379,830 | $ | 348,751 | |||
| Cash Collection Source - | |||||||||||||
| Constant Currency Adjusted | 2017 | 2016 | |||||||||||
| ($ in thousands) | Q4 | Q4 | |||||||||||
| Americas-Core | $ | 204,245 | $ | 193,867 | |||||||||
| Americas-Insolvency | 59,103 | 53,170 | |||||||||||
| Europe-Core | 107,124 | 104,892 | |||||||||||
| Europe-Insolvency | 5,794 | 5,354 | |||||||||||
| Total Cash Collections | $ | 376,266 | $ | 357,283 | |||||||||
- Cash collections in the quarter increased 8% versus the prior year quarter. U.S. call center cash collections increased 16% primarily from hiring additional collectors and portfolio acquisitions. Americas Insolvency cash collections increased 12% primarily as a result of increased portfolio purchases in 2017. This was partially offset by a decrease of 5% in U.S. legal cash collections. Full year cash collections increased 1% driven primarily by growth in U.S. call center cash collections.
- Net finance receivable revenue increased 50% versus the prior year quarter due to an outsized allowance charge in the fourth quarter of 2016. Additionally, net finance receivable revenue was increased by significant portfolio investment and yield increases on certain pools. For the full year, net finance receivable revenue increased 5%.
- Fee income declined 71% primarily as a result of the sale of two fee-based subsidiaries earlier in the year. For the full year, fee income declined 68%.
Expenses
- Operating expenses in the quarter increased from the previous year largely due to increases in compensation and employee services expense. This is due to the increase in the number of U.S. based collectors as the Company accommodates growth in supply of nonperforming loans domestically. This was partially offset by lower legal collection expenses due to fewer accounts qualifying for the legal collections channel and lower agency fees due to the sale of subsidiaries earlier in the year. For the full year, operating expenses decreased 2%.
- During the quarter, the Company recorded $5.3 million in pre-tax, noncash interest expense and amortization of debt issuance costs, a $0.4 million expense on interest rate swap agreements, and $1.0 million in amortization of intangible assets.
- The full year effective tax rate was negative due to a revaluation of deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act. The revaluation resulted in a provisional decrease to net deferred tax liabilities. The net, after-tax impact related to the revaluation of the deferred tax liability was $73.2 million.
Portfolio Acquisitions
- PRA Group invested $374.6 million in new finance receivables in the fourth quarter.
- The Company had in place forward flow commitments as of the end of 2017 for the purchase of nonperforming loans during 2018 with a maximum purchase price of $203.2 million.
| Portfolio Purchase Source | 2017 | 2016 | |||||||||||
| ($ in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 | ||||||||
| Americas-Core | $ | 160,278 | $ | 115,572 | $ | 144,871 | $ | 115,166 | $ | 91,800 | |||
| Americas-Insolvency | 44,195 | 73,497 | 100,040 | 67,123 | 20,929 | ||||||||
| Europe-Core | 152,417 | 14,695 | 42,876 | 39,505 | 80,129 | ||||||||
| Europe-Insolvency | 17,698 | 7,146 | 7,860 | 6,020 | 6,943 | ||||||||
| Total Portfolio Purchasing | $ | 374,588 | $ | 210,910 | $ | 295,647 | $ | 227,814 | $ | 199,801 | |||
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 4276657. To listen to a replay of the call until March 6, 2018, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 4276657.
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 nearly 5,100 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 | Twelve Months Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Income recognized on finance receivables, net | $ | 198,177 | $ | 131,965 | $ | 780,803 | $ | 745,119 | |||||||||||||
| Fee income | 6,043 | 21,171 | 24,916 | 77,381 | |||||||||||||||||
| Other revenue | 1,454 | 2,122 | 7,855 | 8,080 | |||||||||||||||||
| Total revenues | 205,674 | 155,258 | 813,574 | 830,580 | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||
| Compensation and employee services | 69,253 | 61,390 | 273,033 | 258,846 | |||||||||||||||||
| Legal collection expenses | 28,842 | 34,726 | 119,398 | 132,202 | |||||||||||||||||
| Agency fees | 7,877 | 10,695 | 35,530 | 44,922 | |||||||||||||||||
| Outside fees and services | 15,815 | 16,683 | 62,792 | 63,098 | |||||||||||||||||
| Communication | 8,028 | 7,652 | 33,132 | 33,771 | |||||||||||||||||
| Rent and occupancy | 3,985 | 4,001 | 14,823 | 15,710 | |||||||||||||||||
| Depreciation and amortization | 4,666 | 6,020 | 19,763 | 24,359 | |||||||||||||||||
| Other operating expenses | 12,032 | 7,023 | 44,103 | 39,466 | |||||||||||||||||
| Total operating expenses | 150,498 | 148,190 | 602,574 | 612,374 | |||||||||||||||||
| Income from operations | 55,176 | 7,068 | 211,000 | 218,206 | |||||||||||||||||
| Other income and (expense): | |||||||||||||||||||||
| Gain on sale of subsidiaries | - | - | 48,474 | - | |||||||||||||||||
| Interest expense, net | (28,379 | ) | (21,026 | ) | (98,041 | ) | (80,864 | ) | |||||||||||||
| Foreign exchange gain/(loss) | 317 | (2,619 | ) | (1,104 | ) | 2,564 | |||||||||||||||
| Other | (2,790 | ) | (5,823 | ) | (2,790 | ) | (5,823 | ) | |||||||||||||
| Income/(loss) before income taxes | 24,324 | (22,400 | ) | 157,539 | 134,083 | ||||||||||||||||
| Income tax (benefit)/expense | (64,393 | ) | (7,053 | ) | (11,536 | ) | 43,191 | ||||||||||||||
| Net income/(loss) | $ | 88,717 | $ | (15,347 | ) | $ | 169,075 | $ | 90,892 | ||||||||||||
| Adjustment for net income attributable to noncontrolling interests | 1,847 | 2,301 | 6,810 | 5,795 | |||||||||||||||||
| Net income/(loss) attributable to PRA Group, Inc. | $ | 86,870 | $ | (17,648 | ) | $ | 162,265 | $ | 85,097 | ||||||||||||
| Net income per common share attributable to PRA Group, Inc.: | |||||||||||||||||||||
| Basic | $ | 1.92 | $ | (0.38 | ) | $ | 3.55 | $ | 1.84 | ||||||||||||
| Diluted | $ | 1.92 | $ | (0.38 | ) | $ | 3.54 | $ | 1.83 | ||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||
| Basic | 45,170 | 46,346 | 45,671 | 46,316 | |||||||||||||||||
| Diluted | 45,318 | 46,346 | 45,823 | 46,388 | |||||||||||||||||
| PRA Group, Inc. | |||||||||||||
| Consolidated Balance Sheets | |||||||||||||
| (in thousands) | |||||||||||||
| (unaudited) | |||||||||||||
| December 31, | December 31, | ||||||||||||
| ASSETS | 2017 | 2016 | |||||||||||
| Cash and cash equivalents | $ | 120,516 | $ | 94,287 | |||||||||
| Investments | 78,290 | 68,543 | |||||||||||
| Finance receivables, net | 2,771,921 | 2,307,969 | |||||||||||
| Other receivables, net | 15,770 | 11,650 | |||||||||||
| Income taxes receivable | 21,686 | 9,427 | |||||||||||
| Net deferred tax asset | 57,529 | 28,482 | |||||||||||
| Property and equipment, net | 49,311 | 38,744 | |||||||||||
| Goodwill | 526,513 | 499,911 | |||||||||||
| Intangible assets, net | 23,572 | 27,935 | |||||||||||
| Other assets | 32,656 | 33,808 | |||||||||||
| Assets held for sale | - | 43,243 | |||||||||||
| Total assets | $ | 3,697,764 | $ | 3,163,999 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||
| Liabilities: | |||||||||||||
| Accounts payable | $ | 4,992 | $ | 2,459 | |||||||||
| Accrued expenses | 85,993 | 82,699 | |||||||||||
| Income taxes payable | 10,771 | 19,631 | |||||||||||
| Net deferred tax liability | 171,185 | 258,344 | |||||||||||
| Interest-bearing deposits | 98,580 | 76,113 | |||||||||||
| Borrowings | 2,170,182 | 1,784,101 | |||||||||||
| Other liabilities | 9,018 | 10,821 | |||||||||||
| Liabilities held for sale | - | 4,220 | |||||||||||
| Total liabilities | 2,550,721 | 2,238,388 | |||||||||||
| Redeemable noncontrolling interest | 9,534 | 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, 45,189 shares | |||||||||||||
| issued and outstanding at December 31, 2017; 100,000 shares authorized, | |||||||||||||
| 46,356 shares issued and outstanding at December 31, 2016 | 452 | 464 | |||||||||||
| Additional paid-in capital | 53,870 | 66,414 | |||||||||||
| Retained earnings | 1,211,632 | 1,049,367 | |||||||||||
| Accumulated other comprehensive loss | (178,607 | ) | (251,944 | ) | |||||||||
| Total stockholders' equity - PRA Group, Inc. | 1,087,347 | 864,301 | |||||||||||
| Noncontrolling interest | 50,162 | 52,862 | |||||||||||
| Total equity | 1,137,509 | 917,163 | |||||||||||
| Total liabilities and equity | $ | 3,697,764 | $ | 3,163,999 | |||||||||
| Select Expenses (Income) | ||||||||||||
| (in thousands) | Three Months Ended | |||||||||||
| December 31, 2017 | 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 | 160 | 218 | 2,615 | 1,024 | 3,741 | 1,511 | 1,623 | 435 | ||||
| Noncash interest expense - amortization of debt discount | 2,823 | 2,796 | 1,809 | 1,155 | 1,136 | 1,127 | 1,109 | 1,100 | ||||
| Noncash interest expense - amortization of debt issuance costs | 2,501 | 2,505 | 2,635 | 1,928 | 1,929 | 1,647 | 2,277 | 2,263 | ||||
| Change in fair value on Interest rate swap agreements | 420 | (1,025 | ) | (1,578 | ) | 158 | (1,064 | ) | (669 | ) | 1,399 | 1,557 |
| Amortization of intangibles | 1,016 | 1,037 | 869 | 1,410 | 929 | 1,661 | 1,808 | 1,775 | ||||
| Stock-based compensation expense | 2,415 | 2,218 | 1,846 | 2,199 | (3,330 | ) | 3,332 | 2,699 | 3,437 | |||
| Purchase Price Mutiples | ||||||||||||||
| as of December 31, 2017 | ||||||||||||||
| Amounts in thousands | ||||||||||||||
| Purchase Period | Purchase Price (1)(2) | Net Finance Receivables Balance (3) | ERC-Historical Period Exchange Rates (4) | Total Estimated Collections (5) | ERC-Current Period Exchange Rates (6) | Current Estimated Purchase Price Multiple | Original Estimated Purchase Price Multiple (7) | |||||||
| Americas-Core | ||||||||||||||
| 1996-2007 | $ | 638,461 | $ | 7,219 | $ | 33,725 | $ | 2,047,118 | $ | 33,725 | 321 | % | 240 | % |
| 2008 | 166,443 | 4,388 | 15,250 | 374,591 | 15,250 | 225 | % | 220 | % | |||||
| 2009 | 125,155 | 1,061 | 31,648 | 460,268 | 31,648 | 368 | % | 252 | % | |||||
| 2010 | 148,205 | 3,511 | 51,797 | 538,470 | 51,797 | 363 | % | 247 | % | |||||
| 2011 | 209,641 | 13,204 | 71,734 | 724,082 | 71,734 | 345 | % | 245 | % | |||||
| 2012 | 254,321 | 25,362 | 104,895 | 678,874 | 104,895 | 267 | % | 226 | % | |||||
| 2013 | 391,380 | 77,559 | 228,470 | 971,627 | 228,470 | 248 | % | 211 | % | |||||
| 2014 | 405,672 | 128,029 | 343,236 | 980,416 | 340,320 | 242 | % | 204 | % | |||||
| 2015 | 444,699 | 192,170 | 422,657 | 951,477 | 424,503 | 214 | % | 205 | % | |||||
| 2016 | 455,882 | 283,245 | 599,155 | 987,174 | 604,147 | 217 | % | 201 | % | |||||
| 2017 | 536,889 | 498,896 | 931,168 | 1,038,636 | 930,246 | 193 | % | 193 | % | |||||
| Subtotal | 3,776,748 | 1,234,644 | 2,833,735 | 9,752,733 | 2,836,735 | |||||||||
| Americas-Insolvency | ||||||||||||||
| 2004-2007 | 132,917 | — | 669 | 197,234 | 669 | 148 | % | 148 | % | |||||
| 2008 | 108,550 | — | 582 | 168,656 | 582 | 155 | % | 163 | % | |||||
| 2009 | 155,996 | — | 2,305 | 470,951 | 2,305 | 302 | % | 214 | % | |||||
| 2010 | 208,962 | — | 3,642 | 547,318 | 3,642 | 262 | % | 184 | % | |||||
| 2011 | 180,477 | — | 1,328 | 368,130 | 1,328 | 204 | % | 155 | % | |||||
| 2012 | 251,459 | — | 2,971 | 388,242 | 2,971 | 154 | % | 136 | % | |||||
| 2013 | 227,909 | 7,700 | 25,508 | 353,478 | 25,508 | 155 | % | 133 | % | |||||
| 2014 | 148,727 | 26,834 | 40,295 | 210,136 | 40,249 | 141 | % | 124 | % | |||||
| 2015 | 63,214 | 32,239 | 40,821 | 82,251 | 40,821 | 130 | % | 125 | % | |||||
| 2016 | 92,381 | 52,221 | 62,163 | 111,592 | 62,530 | 121 | % | 123 | % | |||||
| 2017 | 278,066 | 238,178 | 297,770 | 346,861 | 297,770 | 125 | % | 125 | % | |||||
| Subtotal | 1,848,658 | 357,172 | 478,054 | 3,244,849 | 478,375 | |||||||||
| Total Americas | 5,625,406 | 1,591,816 | 3,311,789 | 12,997,582 | 3,315,110 | |||||||||
| Europe-Core | ||||||||||||||
| 2012 | 20,428 | — | 2,762 | 38,159 | 2,291 | 187 | % | 187 | % | |||||
| 2013 | 20,362 | 558 | 1,810 | 23,557 | 1,473 | 116 | % | 119 | % | |||||
| 2014 | 797,672 | 328,018 | 1,072,708 | 2,094,303 | 971,396 | 263 | % | 208 | % | |||||
| 2015 | 422,610 | 244,024 | 485,692 | 731,464 | 461,521 | 173 | % | 160 | % | |||||
| 2016 | 348,864 | 287,117 | 467,051 | 585,199 | 492,745 | 168 | % | 167 | % | |||||
| 2017 | 250,596 | 242,800 | 343,106 | 360,511 | 350,842 | 144 | % | 144 | % | |||||
| Subtotal | 1,860,532 | 1,102,517 | 2,373,129 | 3,833,193 | 2,280,268 | |||||||||
| Europe-Insolvency | ||||||||||||||
| 2014 | 10,876 | 2,149 | 5,716 | 18,291 | 5,444 | 168 | % | 129 | % | |||||
| 2015 | 19,409 | 8,219 | 15,323 | 28,808 | 13,950 | 148 | % | 139 | % | |||||
| 2016 | 42,216 | 28,163 | 38,516 | 57,666 | 39,948 | 137 | % | 130 | % | |||||
| 2017 | 38,841 | 39,057 | 48,496 | 49,716 | 49,530 | 128 | % | 128 | % | |||||
| Subtotal | 111,342 | 77,588 | 108,051 | 154,481 | 108,872 | |||||||||
| Total Europe | 1,971,874 | 1,180,105 | 2,481,180 | 3,987,674 | 2,389,140 | |||||||||
| Total PRA Group | $ | 7,597,280 | $ | 2,771,921 | $ | 5,792,969 | $ | 16,985,256 | $ | 5,704,250 | ||||
| (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, 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. | ||||||||||||||
| (3) For our international amounts, Net Finance Receivables are presented at the December 31, 2017 exchange rate. | ||||||||||||||
| (4) For our international amounts, ERC-Historical Period Exchange Rates is presented at the period-end exchange rate for the respective quarter of purchase. | ||||||||||||||
| (5) For our international amounts, TEC is presented at the period-end exchange rate for the respective quarter of purchase. | ||||||||||||||
| (6) For our international amounts, ERC-Current Period Exchange Rates is presented at the December 31, 2017 exchange rate. | ||||||||||||||
| (7) The Original Estimated Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition. | ||||||||||||||
| Portfolio Financial Information | |||||||||||||||
| Year-to-date as of December 31, 2017 | |||||||||||||||
| Amounts in thousands | |||||||||||||||
| Purchase Period | Purchase Price (1)(2) | Cash Collections (3) | Gross Revenue (3) | Amortization (3) | Allowance (3) | Net Revenue (3) | Net Finance Receivables Balance as of December 31, 2017 (4) | ||||||||
| Americas-Core | |||||||||||||||
| 1996-2007 | $ | 638,461 | $ | 13,427 | $ | 9,788 | $ | 3,639 | $ | 332 | $ | 9,456 | $ | 7,219 | |
| 2008 | 166,443 | 6,031 | 3,330 | 2,701 | 252 | 3,078 | 4,388 | ||||||||
| 2009 | 125,155 | 10,994 | 9,242 | 1,752 | 200 | 9,042 | 1,061 | ||||||||
| 2010 | 148,205 | 15,587 | 10,650 | 4,937 | — | 10,650 | 3,511 | ||||||||
| 2011 | 209,641 | 31,991 | 25,700 | 6,291 | 510 | 25,190 | 13,204 | ||||||||
| 2012 | 254,321 | 40,042 | 25,577 | 14,465 | 100 | 25,477 | 25,362 | ||||||||
| 2013 | 391,380 | 78,880 | 56,589 | 22,291 | 2,620 | 53,969 | 77,559 | ||||||||
| 2014 | 405,672 | 114,219 | 80,097 | 34,122 | 1,464 | 78,633 | 128,029 | ||||||||
| 2015 | 444,699 | 185,898 | 94,430 | 91,468 | 1,451 | 92,979 | 192,170 | ||||||||
| 2016 | 455,882 | 256,531 | 138,663 | 117,868 | 447 | 138,216 | 283,245 | ||||||||
| 2017 | 536,889 | 107,327 | 69,743 | 37,584 | — | 69,743 | 498,896 | ||||||||
| Subtotal | 3,776,748 | 860,927 | 523,809 | 337,118 | 7,376 | 516,433 | 1,234,644 | ||||||||
| Americas-Insolvency | |||||||||||||||
| 2004-2007 | 132,917 | 321 | 235 | 86 | 60 | 175 | — | ||||||||
| 2008 | 108,550 | 332 | 119 | 213 | 472 | -353 | — | ||||||||
| 2009 | 155,996 | 1,581 | 1,581 | — | — | 1,581 | — | ||||||||
| 2010 | 208,962 | 2,425 | 2,373 | 52 | 20 | 2,353 | — | ||||||||
| 2011 | 180,477 | 3,726 | 3,726 | — | — | 3,726 | — | ||||||||
| 2012 | 251,459 | 29,337 | 20,126 | 9,211 | — | 20,126 | — | ||||||||
| 2013 | 227,909 | 47,781 | 14,315 | 33,466 | — | 14,315 | 7,700 | ||||||||
| 2014 | 148,727 | 37,350 | 9,650 | 27,700 | (125 | ) | 9,775 | 26,834 | |||||||
| 2015 | 63,214 | 20,143 | 4,061 | 16,082 | — | 4,061 | 32,239 | ||||||||
| 2016 | 92,381 | 30,426 | 5,955 | 24,471 | 1,030 | 4,925 | 52,221 | ||||||||
| 2017 | 278,066 | 49,093 | 9,204 | 39,889 | — | 9,204 | 238,178 | ||||||||
| Subtotal | 1,848,658 | 222,515 | 71,345 | 151,170 | 1,457 | 69,888 | 357,172 | ||||||||
| Total Americas | 5,625,406 | 1,083,442 | 595,154 | 488,288 | 8,833 | 586,321 | 1,591,816 | ||||||||
| Europe-Core | |||||||||||||||
| 2012 | 20,428 | 2,038 | 2,058 | -20 | — | 2,058 | — | ||||||||
| 2013 | 20,362 | 1,239 | 844 | 395 | 62 | 782 | 558 | ||||||||
| 2014 | 797,672 | 220,765 | 122,904 | 97,861 | -141 | 123,045 | 328,018 | ||||||||
| 2015 | 422,610 | 86,156 | 33,022 | 53,134 | 1,280 | 31,742 | 244,024 | ||||||||
| 2016 | 348,864 | 78,915 | 27,325 | 51,590 | 1,589 | 25,736 | 287,117 | ||||||||
| 2017 | 250,596 | 17,894 | 5,177 | 12,717 | 141 | 5,036 | 242,800 | ||||||||
| Subtotal | 1,860,532 | 407,007 | 191,330 | 215,677 | 2,931 | 188,399 | 1,102,517 | ||||||||
| Europe-Insolvency | |||||||||||||||
| 2014 | 10,876 | 3,207 | 1,459 | 1,748 | — | 1,459 | 2,149 | ||||||||
| 2015 | 19,409 | 5,013 | 1,331 | 3,682 | 134 | 1,197 | 8,219 | ||||||||
| 2016 | 42,216 | 12,703 | 2,800 | 9,903 | — | 2,800 | 28,163 | ||||||||
| 2017 | 38,841 | 1,233 | 627 | 606 | — | 627 | 39,057 | ||||||||
| Subtotal | 111,342 | 22,156 | 6,217 | 15,939 | 134 | 6,083 | 77,588 | ||||||||
| Total Europe | 1,971,874 | 429,163 | 197,547 | 231,616 | 3,065 | 194,482 | 1,180,105 | ||||||||
| Total PRA Group | $ | 7,597,280 | $ | 1,512,605 | $ | 792,701 | $ | 719,904 | $ | 11,898 | $ | 780,803 | $ | 2,771,921 | |
| (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, 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. | |||||||||||||||
| (3) For our international amounts, amounts are presented using the average exchange rates during the current reporting period. | |||||||||||||||
| (4) For our international amounts, Net Finance Receivables are presented at the December 31, 2017 exchange rate. | |||||||||||||||
| Cash Collections by Year, By Year of Purchase (1) | ||||||||||||||||||||||||||
| as of December 31, 2017 | ||||||||||||||||||||||||||
| Amounts in thousands | ||||||||||||||||||||||||||
| Purchase | Cash Collections | |||||||||||||||||||||||||
| Purchase Period | Price (2)(3) | 1996-2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||
| Americas-Core | ||||||||||||||||||||||||||
| 1996-2007 | $ | 638,461 | $ | 1,096,153 | $ | 222,628 | $ | 168,849 | $ | 137,689 | $ | 115,551 | $ | 89,405 | $ | 63,955 | $ | 45,247 | $ | 32,491 | $ | 20,745 | $ | 13,427 | $ | 2,006,140 |
| 2008 | 166,443 | 47,253 | 72,080 | 62,363 | 53,654 | 42,850 | 31,307 | 21,027 | 13,786 | 8,989 | 6,031 | 359,340 | ||||||||||||||
| 2009 | 125,155 | — | 40,703 | 95,627 | 84,339 | 69,385 | 51,121 | 35,555 | 24,896 | 16,000 | 10,994 | 428,620 | ||||||||||||||
| 2010 | 148,205 | — | — | 47,076 | 113,554 | 109,873 | 82,014 | 55,946 | 38,110 | 24,515 | 15,587 | 486,675 | ||||||||||||||
| 2011 | 209,641 | — | — | — | 61,971 | 174,461 | 152,908 | 108,513 | 73,793 | 48,711 | 31,991 | 652,348 | ||||||||||||||
| 2012 | 254,321 | — | — | — | — | 56,901 | 173,589 | 146,198 | 97,267 | 59,981 | 40,042 | 573,978 | ||||||||||||||
| 2013 | 391,380 | — | — | — | — | — | 101,614 | 247,849 | 194,026 | 120,789 | 78,880 | 743,158 | ||||||||||||||
| 2014 | 405,672 | — | — | — | — | — | — | 92,660 | 253,448 | 170,311 | 114,219 | 630,638 | ||||||||||||||
| 2015 | 444,699 | — | — | — | — | — | — | — | 116,951 | 228,432 | 185,898 | 531,281 | ||||||||||||||
| 2016 | 455,882 | — | — | — | — | — | — | — | — | 138,723 | 256,531 | 395,254 | ||||||||||||||
| 2017 | 536,889 | — | — | — | — | — | — | — | — | — | 107,327 | 107,327 | ||||||||||||||
| Subtotal | 3,776,748 | 1,096,153 | 269,881 | 281,632 | 342,755 | 429,069 | 542,875 | 656,508 | 752,995 | 844,768 | 837,196 | 860,927 | 6,914,759 | |||||||||||||
| Americas-Insolvency | ||||||||||||||||||||||||||
| 2004-2007 | 132,917 | 61,154 | 42,794 | 33,842 | 27,347 | 18,234 | 8,574 | 1,884 | 1,151 | 802 | 463 | 321 | 196,566 | |||||||||||||
| 2008 | 108,550 | — | 14,024 | 35,894 | 37,974 | 35,690 | 28,956 | 11,650 | 1,884 | 1,034 | 635 | 332 | 168,073 | |||||||||||||
| 2009 | 155,996 | — | — | 16,635 | 81,780 | 102,780 | 107,888 | 95,725 | 53,945 | 5,781 | 2,531 | 1,581 | 468,646 | |||||||||||||
| 2010 | 208,962 | — | — | — | 39,486 | 104,499 | 125,020 | 121,717 | 101,873 | 43,649 | 5,008 | 2,425 | 543,677 | |||||||||||||
| 2011 | 180,477 | — | — | — | — | 15,218 | 66,379 | 82,752 | 85,816 | 76,915 | 35,996 | 3,726 | 366,802 | |||||||||||||
| 2012 | 251,459 | — | — | — | — | — | 17,388 | 103,610 | 94,141 | 80,079 | 60,715 | 29,337 | 385,270 | |||||||||||||
| 2013 | 227,909 | — | — | — | — | — | — | 52,528 | 82,596 | 81,679 | 63,386 | 47,781 | 327,970 | |||||||||||||
| 2014 | 148,727 | — | — | — | — | — | — | — | 37,045 | 50,880 | 44,313 | 37,350 | 169,588 | |||||||||||||
| 2015 | 63,214 | — | — | — | — | — | — | — | — | 3,395 | 17,892 | 20,143 | 41,430 | |||||||||||||
| 2016 | 92,381 | — | — | — | — | — | — | — | — | — | 18,869 | 30,426 | 49,295 | |||||||||||||
| 2017 | 278,066 | — | — | — | — | — | — | — | — | — | — | 49,093 | 49,093 | |||||||||||||
| Subtotal | 1,848,658 | 61,154 | 56,818 | 86,371 | 186,587 | 276,421 | 354,205 | 469,866 | 458,451 | 344,214 | 249,808 | 222,515 | 2,766,410 | |||||||||||||
| Total Americas | 5,625,406 | 1,157,307 | 326,699 | 368,003 | 529,342 | 705,490 | 897,080 | 1,126,374 | 1,211,446 | 1,188,982 | 1,087,004 | 1,083,442 | 9,681,169 | |||||||||||||
| Europe-Core | ||||||||||||||||||||||||||
| 2012 | 20,428 | — | — | — | — | — | 11,604 | 8,995 | 5,641 | 3,175 | 2,198 | 2,038 | 33,651 | |||||||||||||
| 2013 | 20,362 | — | — | — | — | — | — | 7,068 | 8,540 | 2,347 | 1,326 | 1,239 | 20,520 | |||||||||||||
| 2014 | 797,672 | — | — | — | — | — | — | — | 153,180 | 291,980 | 246,365 | 220,765 | 912,290 | |||||||||||||
| 2015 | 422,610 | — | — | — | — | — | — | — | — | 45,760 | 100,263 | 86,156 | 232,179 | |||||||||||||
| 2016 | 348,864 | — | — | — | — | — | — | — | — | — | 40,368 | 78,915 | 119,283 | |||||||||||||
| 2017 | 250,596 | — | — | — | — | — | — | — | — | — | — | 17,894 | 17,894 | |||||||||||||
| Subtotal | 1,860,532 | — | — | — | — | — | 11,604 | 16,063 | 167,361 | 343,262 | 390,520 | 407,007 | 1,335,817 | |||||||||||||
| Europe-Insolvency | ||||||||||||||||||||||||||
| 2014 | 10,876 | — | — | — | — | — | — | — | 5 | 4,297 | 3,921 | 3,207 | 11,430 | |||||||||||||
| 2015 | 19,409 | — | — | — | — | — | — | — | — | 2,954 | 4,366 | 5,013 | 12,333 | |||||||||||||
| 2016 | 42,216 | — | — | — | — | — | — | — | — | — | 6,175 | 12,703 | 18,878 | |||||||||||||
| 2017 | 38,841 | — | — | — | — | — | — | — | — | — | — | 1,233 | 1,233 | |||||||||||||
| Subtotal | 111,342 | — | — | — | — | — | — | — | 5 | 7,251 | 14,462 | 22,156 | 43,874 | |||||||||||||
| Total Europe | 1,971,874 | — | — | — | — | — | 11,604 | 16,063 | 167,366 | 350,513 | 404,982 | 429,163 | 1,379,691 | |||||||||||||
| Total PRA Group | $ | 7,597,280 | $ | 1,157,307 | $ | 326,699 | $ | 368,003 | $ | 529,342 | $ | 705,490 | $ | 908,684 | $ | 1,142,437 | $ | 1,378,812 | $ | 1,539,495 | $ | 1,491,986 | $ | 1,512,605 | $ | 11,060,860 |
| (1) For our international amounts, Cash Collections are presented using the average exchange rates during the cash collection period. | ||||||||||||||||||||||||||
| (2) The amount reflected in the Purchase Price also includes the acquisition date finance receivables portfolios that were acquired through our various business acquisitions. | ||||||||||||||||||||||||||
| (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