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Press Releases PRA Group Reports First Quarter 2021 Results NORFOLK , Va . , May 6 , 2021 / PRNewswire / -- PRA Group ( Nasdaq : PRAA ) , a global leader in acquiring and collecting nonperforming loans , today reported its financial results for the first quarter of 2021. The Company reported net income attributable to PRA Group Inc. of $ 58.4 million in the first quarter , compared with $ 19.1 million in the prior year period . Diluted earnings per share were $ 1.27 versus $ 0.42 in the first quarter of 2020 . First Quarter Highlights ( compared to the first quarter of 2020 , unless otherwise indicated ) • Record total cash collections which increased 12 % to $ 555.9 million . • Record total revenues which increased 15 % to $ 289.5 million . • • • Income from operations increased 83 % to $ 110.8 million . Cash efficiency ratio ¹ of 68.0 % during the quarter compared to 61.5 % in the first quarter of 2020 . Net income attributable to PRA Group , Inc. increased 205 % to $ 58.4 million . Diluted earnings per share increased 202 % to $ 1.27 . • Debt to Adjusted EBITDA² for the last 12 months decreased to 1.77x from 1.99x atDecember 31 , 2020 . • Total portfolio purchases of $ 159.0 million . • Estimated remaining collections ( ERC ) of $ 6.1 billion . • $ 1.2 billion available for portfolio purchases . " PRA started 2021 with another record setting quarter . We collected record levels of cash globally and had record revenues . In Europe , solid portfolio purchases in 2020 drove record collections . In the U.S. , we continued to see strong collections particularly in our call centers and digital platform . These results combined with increases in productivity helped to produce a near record cash efficiency ratio for the quarter , " said Kevin Stevenson , president and chief executive officer . " Portfolio purchases during the quarter increased sequentially in the U.S. The market remains stable with little change in seller behavior ; however , lower charge off rates are pushing forward flow volumes to the lower end of the contracted range . In Europe , we were pleased with our investment volume in what is normally a seasonally slower quarter . We have solid volumes of forward flows secured , believe the pipeline in Europe is larger than what 2020 offered , and were awarded our first portfolio , a forward flow , in Australia . " 1. Calculated by dividing cash receipts less operating expense by cash receipts . 2. A reconciliation of this non - GAAP financial measure to the most comparable GAAP measure can be found at the end of this press release . 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 Source ( $ in thousands ) Americas and Australia Core Americas Insolvency Europe Core Europe Insolvency Total Cash Collections Cash Collection Source - Constant Currency Adjusted ( $ in thousands ) Americas and Australia Core Americas Insolvency Europe Core Europe Insolvency Total Cash Collections Portfolio Purchase Source $ ( $ in thousands ) Americas and Australia Core Americas Insolvency Europe Core Europe Insolvency Total Portfolio Acquisitions 2021 $ Q1 347,638 35,253 149,486 23,510 555,887 2021 Q1 $ 347,638 35,253 149,486 23,510 555,887 2021 Q1 88,912 9,486 $ 44,095 16,468 158,961 Q4 286,524 36,048 141,471 17,830 $ 481,873 04 67,460 12,504 137,647 72,171 289,782 $ $ Q3 336,322 $ 37,344 131,702 13,971 519,339 • Cash collections in the quarter increased $ 61.3 million compared to the first quarter of 2020. The increase was primarily due to a 32 % increase in U.S. call center and other cash collections and a 19 % increase in Europe cash collections . This increase was partially offset by a decrease in U.S. legal and Americas Insolvency cash collections . While cash collections decreased in Other Americas Core , this decrease was primarily driven by foreign exchange rates . Portfolio income was $ 231.7 million compared to $ 262.0 million in the first quarter of 2020. This decrease was primarily driven by the Company's assumption that the significant cash overperformance in 2020 was largely acceleration versus an increase in total estimated collections , combined with recent purchases not offsetting runoff , primarily in Americas Insolvency and Other Americas . • Changes in expected recoveries were a net positive of $ 50.1 million . This amount reflects $ 103.0 million in recoveries received in excess of forecast from overperformance during the quarter , partially offset by a negative $ 52.9 million adjustment for changes in expected future recoveries . The Company has assumed that the majority of the current quarter overperformance is acceleration of future collections and made cash forecast adjustments deemed appropriate given the current environment . Expenses • Operating expenses in the quarter decreased $ 12.5 million compared to the first quarter of 2020. The decrease was primarily driven by a reduction in legal collection costs mainly as a result of a shift in collections from the legal channel to the call centers and digital platforms . This decrease was partially offset by an increase in agency fees primarily outside of the U.S. • Interest expense , net decreased $ 5.7 million compared to the first quarter of 2020 primarily due to the Company's early adoption of the new accounting for convertible debt well as lower outstanding balances . • The effective tax rate for the first quarter of 2021 was 21.9 % . Portfolio Acquisitions • The Company purchased $ 159.0 million in finance receivables in the first quarter of 2021 . At the end of the first quarter , the Company had in place forward flow commitments of up to $ 640.7 million with $ 452.7 million in the Americas and Australia and $ 188.0 million in Europe . Q3 84,139 14,328 74,930 4,203 2020 177,600 Q2 $ 343,269 38,685 115,145 12,841 509,940 2020 Q2 $ 110,474 14,527 34,247 PRA Group , Inc. Unaudited Consolidated Income Statements ( Amounts in thousands , except per share amounts ) $ 5,251 164,499 $ $ Q1 305,780 43,210 131,340 14,243 494,573 $ 2020 Q1 $ 301,696 43.239 142,004 15.366 502,305 Q1 172,697 20,772 60,990 18,778 $ 273,237 Conference Call Information PRA Group , Inc. 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 https://ir.pragroup.com/events-and-presentations . To listen by phone , call 844-835-9982 in the U.S. or 412-317-5267 outside the U.S. and ask for the PRA Group conference call . To listen to a replay of the call , either visit I May 2022 , or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use acce s code 10155063 untilMay 13 , 2021 . the same website 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 our 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 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 .