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Press Releases PRA Group Reports Third Quarter 2021 Results NORFOLK , Va . , Nov. 8 , 2021 / PRNewswire / -- PRA Group , Inc. ( Nasdaq : PRAA ) , a global leader in acquiring and collecting nonperforming loans , today reported its financial results for the third quarter of 2021. The Company reported net income attributable to PRA Group , Inc. of $ 34.5 million in the third quarter , compared with $ 42.5 million in the prior year period . Diluted earnings per share were $ 0.76 versus $ 0.92 in the third quarter of 2020. For the nine months ended September 30 , 2021 , net income attributable to PRA Group , Inc. was $ 148.9 million , or $ 3.24 per diluted share , compared with $ 119.5 million , or $ 2.60 per diluted share , during the same period in 2020 . Third Quarter Highlights • Total portfolio purchases of $ 391.9 million , an increase of $ 172.3 million , or 78 % , from the second quarter of 2021 . • Purchases in Europe were $ 219.6 million , bringing the year to date total to $ 386.3 million , a record for the first nine months of the year . • Purchases in Americas and Australia were $ 172.3 million , reflecting strong geographic diversity with substantial deployment in South America . Estimated remaining collections ( ERC ) of $ 6.1 billion , an increase of $ 91 million from the second quarter of 2021 . Total cash collections were $ 488.4 million . Total revenues were $ 263.7 million . 1 . Cash efficiency ratio ¹ of 62.4 % . Diluted earnings per share were $ 0.76 . • Common stock repurchases of $ 74 million , or 1.8 million shares , at an average price of $ 41.10 . Debt to Adjusted EBITDA² for the last 12 months was 1.81x . $ 1.4 billion available for portfolio purchases . " We deployed almost $ 400 million in the third quarter , making it one of our largest portfolio purchasing quarters . In Europe , we invested $ 220 million , where we have seen a very healthy pipeline of deals coming to market and we also secured a large multi - year forward flow agreement . We invested $ 172 million in the Americas and Australia , highlighted by sizeable portfolio spot purchases in South America , which further demonstrates the benefits of our geographic diversification , " said Kevin Stevenson , president and chief executive officer . " We also made excellent progress in returning capital to shareholders through the $ 150 million share repurchase program launched during the third quarter , repurchasing $ 74 million of our common stock at an average price of $ 41.10 . Our leverage ratios remain well below our target range , despite the strong portfolio purchasing quarter and the utilization of nearly half of our initial share repurchase authorization . On November 1 , we announced an $ 80 million increase to our share repurchase program , raising the total authorization to $ 230 million . " Calculated by dividing cash receipts less operating expense by cash receipts . 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 Expenses . S $ $ Portfolio Purchase Source ( $ in thousands ) Americas and Australia Core Q3 Americas Insolvency Europe Core Europe Insolvency Total Portfolio Acquisitions 276,691 37.464 151,625 22,574 488,354 2021 Q3 276,691 37,464 151,625 22,574 488,354 Q3 $ 162,451 2021 9,878 Q2 212,194 $ 324,845 37,768 157,637 23,579 $ 543,829 7,424 $ 391,947 2021 Q2 S $ 98,901 14,642 Q1 106,134 347.638 $ 219,677 35,253 149,486 Cash collections in the quarter decreased $ 31.0 million compared to the third quarter of 2020. The decrease was primarily due to a return to more normal seasonal trends in the U.S. , as well as the lower volume of accounts in the U.S. legal channel during 2021. These decreases were partially offset by a 20 % increase in Europe cash collections driven by significant levels of portfolio purchases in the last few years . For the nine months ended September 30 , 2021 , cash collections increased $ 64.2 million compared to the same period last year . Total portfolio revenue in the quarter was $ 256.7 million compared to $ 265.7 million during the third quarter of 2020. The Company has consistently assumed that the majority of the current quarter overperformance was acceleration of future collections and made adjustments in some geographies to increase near term expected collections , bringing them in line with recent performance and trends in collections , with corresponding reductions later in the forecast period . $ 23,510 555,887 Operating expenses in the quarter increased $ 6.9 million compared to the third quarter of 2020. The increase was primarily driven by : 0 an increase in compensation and employee services primarily due to changes in benefits and performance based accruals and an increase in the number of employees in Europe ; O an increase in outside fees and services primarily due to higher legal expenses ; and • an increase in other operating expenses primarily driven by ongoing efforts to enhance our digital and data . For the nine months ended September 30 , 2021 , operating expenses increased $ 15.2 million compared to the same period last year . Interest expense , net decreased $ 4.1 million compared to the third quarter of 2020 primarily due to lower average borrowings this year and a change in accounting for convertible notes . The effective tax rate for the nine months ended September 30 , 2021 was 20.8 % . Portfolio Acquisitions The Company purchased $ 391.9 million in finance receivables in the third quarter of 2021 . At the end of the third quarter , the Company had in place maximum forward flow commitments of up to $ 873.7 million with $ 323.1 million in the Americas and Australia and $ 550.6 million in Europe . Q1 88,912 9,486 Q4 286,524 44,095 36,048 16,468 141,471 $ 158,961 17,830 481,873 $ 2020 Q4 67,460 12,504 137,647 72,171 $ 289,782 $ Q3 2020 336.322 $ 37,344 131,702 13,971 $ 519,339 2020 Q3 S 337.483 37,373 136,747 14,810 526,413 Q3 84,139 14,328 74,930 4,203 177,600 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 a replay of the call , either visit the same website until November 8 , 2022 , or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 10160856 until November 15 , 2021 . The Company is also announcing that it currently plans to report fourth quarter 2021 results after market close on February 28 , 2022 . About PRA Group , Inc. 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 ,