PRA Group
Nov 7, 2016

PRA Group Reports Third Quarter 2016 Results

NORFOLK, Va., Nov. 07, 2016 (GLOBE NEWSWIRE) -- PRA Group, Inc. (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2016.  The company reported diluted earnings per share of $0.74 versus $0.36 in the third quarter of 2015 and non-GAAP diluted earnings per share of $0.68 for the third quarter of 2016 compared to $0.85 for the year-ago quarter. Non-GAAP financial results are presented in constant currency with the third quarter of 2015 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. 

Third Quarter Highlights

"We continue to evolve the Company in a number of areas including normalizing operations in the U.S. legal collection channel despite increased documentation requirements.  Italy is progressing well.  We have significantly strengthened the leadership team there and we are beginning to see positive signs of return on our investment in the legal collection channel.  Although we still have work to do, we are pleased with the progress the team has been able to achieve in 2016," said Steve Fredrickson, chairman and chief executive officer, PRA Group.  "From an investment perspective, we also continue to deploy capital at good returns, especially in the US and Brazil, and maintain strong relationships with global sellers of nonperforming loans, providing them with a compliant and responsible global partner." 

REVENUES AND CASH COLLECTIONS

        
Cash Collection Source 2016   2015 
($ in thousands)Q3Q2Q1 Q4Q3
Americas-Core$  210,524 $  213,741 $  219,571  $  195,834 $  210,725 
Americas-Insolvency   60,429    67,745    68,646     73,843    81,865 
Europe-Core   96,028    102,972    94,091     97,149    85,635 
Europe-Insolvency   4,719    2,744    2,025     2,545    2,528 
Total Cash Collections$  371,700 $  387,202 $  384,333  $  369,371 $  380,753 
       
Cash Collection Source -       
Constant Currency Adjusted 2016      2015 
($ in thousands)Q3    Q3
Americas-Core$  208,962     $  210,725 
Americas-Insolvency   60,445        81,865 
Europe-Core   102,470        85,635 
Europe-Insolvency   5,171        2,528 
Total Cash Collections$  377,048     $  380,753 
       
       

EXPENSES AND OPERATING INCOME

NET INCOME AND EPS

PORTFOLIO ACQUISITIONS

        
Portfolio Purchase Source 2016   2015 
($ in thousands)Q3Q2Q1 Q4Q3
Americas-Core$  95,452 $  130,529 $  136,057  $  120,554 $  90,912 
Americas-Insolvency   16,760    33,723    22,952     20,589    9,300 
Europe-Core   34,240    68,835    171,038     79,735    240,385 
Europe-Insolvency   14,803    16,410    6,731     4,976    3,959 
Total Portfolio Purchasing$  161,255 $  249,497 $  336,778  $  225,854 $  344,556 
       
    

BALANCE SHEET

Conference Call Information
PRA Group will hold a conference call today at 5:00 p.m. ET to discuss the company's third quarter results.  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 7245944.  To listen to a replay of the call until November 14, 2016, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 7245944.        

About PRA Group
As a global leader in acquiring and collecting nonperforming loans, PRA Group (Nasdaq:PRAA) returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With almost 4,000 employees worldwide, 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. 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, beliefs, expectations, 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 Group 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 Nine Months Ended
       September 30, September 30,
        2016   2015   2016   2015 
              
Revenues:       
 Income recognized on finance receivables, net$202,639   208,184  $613,154  $656,651 
 Fee income 17,597   17,803   56,210   44,734 
 Other revenue 1,748   3,443   5,958   10,448 
    Total revenues 221,984   229,430   675,322   711,833 
                      
Operating expenses:               
 Compensation and employee services 65,898   66,084   197,456   199,675 
 Legal collection fees 9,309   13,715   37,357   41,520 
 Legal collection costs 24,137   18,879   60,118   59,289 
 Agency fees 12,034   7,961   34,227   24,006 
 Outside fees and services 14,731   12,583   46,415   37,846 
 Communication 7,814   8,021   26,119   26,512 
 Rent and occupancy 3,875   3,684   11,709   10,723 
 Depreciation and amortization 6,184   5,413   18,339   14,939 
 Other operating expenses 10,514   38,963   32,444   58,151 
    Total operating expenses 154,496   175,303   464,184   472,661 
    Income from operations 67,488   54,127   211,138   239,172 
                      
Other income and (expense):               
 Interest expense (19,310)  (16,787)  (59,838)  (45,015)
 Foreign exchange gain/(loss) 5,004   (3,160)  5,183   7,213 
    Income before income taxes 53,182   34,180   156,483   201,370 
                      
    Provision for income taxes 16,664   16,597   50,244   74,227 
    Net income$  36,518  $17,583  $106,239  $127,143 
     Adjustment for net income attributable to noncontrolling interest 2,212   187   3,494   187 
    Net income attributable to PRA Group, Inc.$  34,306  $17,396  $102,745  $126,956 
                      
Net income per common share attributable to PRA Group, Inc.:               
 Basic  $  0.74  $  0.36  $  2.22  $  2.62 
 Diluted $  0.74  $  0.36  $  2.21  $  2.61 
                      
Weighted average number of shares outstanding:               
 Basic   46,343   48,265   46,307   48,438 
 Diluted  46,434   48,498   46,403   48,693 
              


PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands)
          
       September 30, December 31,
ASSETS 2016   2015 
          
Cash and cash equivalents$  91,791  $  71,372 
Investments 67,050   73,799 
Finance receivables, net 2,392,408   2,202,113 
Other receivables, net 24,299   30,771 
Income taxes receivable 10,673   1,717 
Net deferred tax asset 19,453   13,068 
Property and equipment, net 44,354   45,394 
Goodwill   560,505   495,156 
Intangible assets, net 31,539   23,788 
Other assets 37,275   33,389 
              
     Total assets$  3,279,347  $  2,990,567 
              
LIABILITIES AND EQUITY       
              
Liabilities:        
 Accounts payable$  2,808  $  4,190 
 Accrued expenses 86,531   95,380 
 Income taxes payable 20,242   21,236 
 Net deferred tax liability 271,152   261,498 
 Interest-bearing deposits 88,719   46,991 
 Borrowings 1,816,600   1,717,129 
 Other liabilities 5,317   4,396 
              
     Total liabilities 2,291,369   2,150,820 
              
Equity:         
  Preferred stock, par value $0.01, authorized shares, 2,000,       
   issued and outstanding shares, 0 -   - 
  Common stock, par value $0.01, authorized shares, 100,000, issued       
   and outstanding shares, 46,344 at September 30, 2016; 100,000        
   authorized shares, 46,173 issued and outstanding shares at  463   462 
   December 31, 2015       
  Additional paid-in capital 70,112   64,622 
  Retained earnings 1,067,015   964,270 
  Accumulated other comprehensive loss (199,888)  (228,861)
   Total stockholders' equity - PRA Group, Inc. 937,702   800,493 
    Noncontrolling interest 50,276   39,254 
    Total equity 987,978   839,747 
     Total liabilities and total equity$  3,279,347  $  2,990,567 
          


PRA Group, Inc.
FINANCIAL HIGHLIGHTS
 As of and for the  As of and for the
 Three Months Ended September 30, Nine Months Ended September 30,
  2016  2015 Change  2016  2015 Change
EARNINGS (in thousands)       
Income recognized on finance receivables, net$  202,639 $  208,184  -3% $  613,154 $  656,651  -7%
Fee income   17,597    17,803  -1%    56,210    44,734  26%
Other revenue   1,748    3,443  -49%    5,958    10,448  -43%
Total revenues   221,984    229,430  -3%    675,322    711,833  -5%
Operating expenses   154,496    175,303  -12%    464,184    472,661  -2%
Income from operations   67,488    54,127  25%    211,138    239,172  -12%
Net interest expense   19,310    16,787  15%    59,838    45,015  33%
Net income   36,518    17,583  108%    106,239    127,143  -16%
Net income attributable to PRA Group, Inc.   34,306    17,396  97%    102,745    126,956  -19%
                    
PERIOD-END BALANCES (in thousands)                   
Cash and cash equivalents$  91,791 $  69,111  33% $  91,791 $  69,111  33%
Finance receivables, net   2,392,408    2,167,178  10%    2,392,408    2,167,178  10%
Goodwill and intangible assets, net   592,044    526,841  12
%    592,044    526,841  12%
Total assets   3,279,347    2,984,550  10%    3,279,347    2,984,550  10%
Borrowings   1,816,600    1,654,457  10%    1,816,600    1,654,457  10%
Total liabilities   2,291,369    2,083,131  10%    2,291,369    2,083,131  10%
Total equity - PRA Group, Inc.   937,702    863,517  9%    937,702    863,517  9%
                    
FINANCE RECEIVABLE INCOME (dollars in thousands)                   
Cash collections$  371,700 $  380,753  -2% $ 1,143,235 $ 1,170,124  -2%
Cash collections on fully amortized pools   7,744    11,453  -32%    25,144    43,620  -42%
Principal amortization without allowance (reversals)/charges   155,915    161,234  -3%    494,117    495,623  0%
Allowance (reversal)/charge   13,146    11,335  16%    35,964    17,850  101%
Principal amortization with allowance (reversals)/charges   169,061    172,569  -2%    530,081    513,473  3%
Principal amortization w/ allowance charges as % of cash collections:                   
  Including fully amortized pools 45.5% 45.3% 0%  46.4% 43.9% 6%
  Excluding fully amortized pools 46.5% 46.7% -1%  47.4% 45.6% 4%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.5% 5%  1.5% 0.8% 83%
                    
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)                   
Purchase price - Americas core$  95,452 $  90,912  5% $  362,038 $  327,727  10%
Purchase price - Americas insolvency   16,760    9,300  80%    73,435    44,848  64%
Purchase price - Europe core   34,240    240,385  -86%    274,113    350,463  -22%
Purchase price - Europe insolvency   14,803    3,959  274%    37,944    14,919  154%
Purchase price - total   161,255    344,556  -53%    747,530    737,957  1%
Number of portfolios - total 122  128  -5%  397  403  -1%
ESTIMATED REMAINING COLLECTIONS (in thousands)                   
Estimated remaining collections - Americas core$  2,672,427 $  2,421,506  10% $  2,672,427 $  2,421,506  10%
Estimated remaining collections - Americas insolvency   356,363    474,097  -25%    356,363    474,097  -25%
Estimated remaining collections - Europe core   2,148,230    1,903,226  13%    2,148,230    1,903,226  13%
Estimated remaining collections - Europe insolvency   72,919    30,081  142%    72,919    30,081  142%
Estimated remaining collections - total   5,249,939    4,828,910  9%    5,249,939    4,828,910  9%
Adjusted estimated remaining collections (7)   5,345,657    4,945,609  8%    5,345,657    4,945,609  8%
                    
SHARE DATA (share amounts in thousands)                   
Net income per common share - diluted$  0.74 $  0.36  106% $  2.21 $  2.61  -15%
Weighted average number of shares outstanding - diluted   46,434    48,498  -4%    46,403    48,693  -5%
Shares repurchased   -    133  -100%    -    1,611  -100%
Average price paid per share repurchased (including acquisitions costs)$  -     58.08  -100% $  -     53.10  -100%
Closing market price$  34.54 $  52.92  -35% $  34.54 $  52.92  -35%
                    
RATIOS AND OTHER DATA (dollars in thousands)                   
Return on average equity (1) 15.1% 7.8% 95%  15.6% 19.9% -22%
Return on revenue (2) 16.5% 7.7% 115%  15.7% 17.9% -12%
Return on average assets (3) 4.2% 2.3% 81%  4.2% 6.0% -31%
Operating margin (4) 30.4% 23.6% 29%  31.3% 33.6% -7%
Operating expense to cash receipts (5) 39.7% 44.0% -10%  38.7% 38.9% -1%
Debt to stockholders'equity (6) 193.7% 191.6% 1%  193.7% 191.6% 1%
Number of full-time equivalent collectors 2,083  2,159  -4%  2,083  2,159  -4%
Number of full-time equivalent employees 3,859  3,715  4%  3,859  3,715  4%
Cash receipts (5)$  389,297 $  398,556  -2% $  1,199,445 $  1,214,858  -1%
Lines of credit - unused portion at period end   630,775    393,246  60%    630,775    393,246  60%
        
(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 30June 30March 31December 31September 30
  2016  2016  2016  2015  2015 
EARNINGS (in thousands)     
Income recognized on finance receivables, net$  202,639 $  204,008 $  206,507 $  208,471 $  208,184 
Fee income   17,597    22,347    16,266    19,649    17,803 
Other revenue   1,748    2,101    2,109    2,065    3,443 
Total revenues   221,984    228,456    224,882    230,185    229,430 
Operating expenses   154,496    155,700    153,988    159,013    175,303 
Income from operations   67,488    72,756    70,894    71,172    54,127 
Net interest expense   19,310    20,569    19,959    15,321    16,787 
Net income   36,518    36,868    32,853    40,988    17,583 
Net income attributable to PRA Group, Inc.   34,306    36,456    31,983    40,970    17,396 
                
PERIOD-END BALANCES (in thousands)               
Cash and cash equivalents$  91,791 $  117,071 $  79,442 $  71,372 $  69,111 
Finance receivables, net   2,392,408    2,399,949    2,377,077    2,202,113    2,167,178 
Goodwill and intangible assets, net   592,044    576,992    557,024    518,944    526,841 
Total assets   3,279,347    3,305,596    3,268,833    2,990,567    2,984,550 
Borrowings   1,816,600    1,912,283    1,896,424    1,717,129    1,654,457 
Total liabilities   2,291,369    2,370,415    2,360,091    2,150,820    2,083,131 
Total equity - PRA Group, Inc.   937,702    886,077    864,868    800,493    863,517 
                
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)               
Cash collections$  371,700 $  387,202 $  384,333 $  369,371 $  380,753 
Cash collections on fully amortized pools   7,744    8,124    9,276    8,280    11,453 
Principal amortization without allowance (reversals)/charges   155,915    170,274    167,928    149,381    161,234 
Allowance (reversal)/charge   13,146    12,920    9,898    11,519    11,335 
Principal amortization with allowance (reversals)/charges   169,061    183,194    177,826    160,900    172,569 
Principal amortization w/ allowance charges as % of cash collections:               
  Including fully amortized pools 45.5% 47.3% 46.3% 43.6% 45.3%
  Excluding fully amortized pools 46.5% 48.3% 47.4% 44.6% 46.7%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.5% 0.4% 0.5% 0.5%
                
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)               
Purchase price - North America core$  95,452 $  130,529 $  136,057 $  120,554 $  90,912 
Purchase price - North America insolvency   16,760    33,723    22,952    20,589    9,300 
Purchase price - Europe core   34,240    68,835    171,038    79,735    240,385 
Purchase price - Europe insolvency   14,803    16,410    6,731    4,976    3,959 
Purchase price - total   161,255    249,497    336,778    225,854    344,556 
Number of portfolios - total 122  136  139  139  128 
                
ESTIMATED REMAINING COLLECTIONS (in thousands)               
Estimated remaining collections - Americas core$  2,672,427 $  2,705,781 $  2,643,410 $  2,558,529 $  2,421,506 
Estimated remaining collections - Americas insolvency   356,363    396,667    421,866    448,652    474,097 
Estimated remaining collections - Europe core   2,148,230    2,171,542    2,152,403    1,964,763    1,903,226 
Estimated remaining collections - Europe insolvency   72,919    59,107    40,938    34,878    30,081 
Estimated remaining collections - total   5,249,939    5,333,097    5,258,617    5,006,822    4,828,910 
Adjusted estimated remaining collections (7)   5,345,657    5,430,192    5,366,417    5,114,923    4,945,609 
                
SHARE DATA (share amounts in thousands)               
Net income per common share - diluted$  0.74 $  0.79 $  0.69 $  0.86 $  0.36 
Weighted average number of shares outstanding - diluted   46,434    46,402    46,372    47,539    48,498 
Shares repurchased   -    -    -    2,072    133 
Average price paid per share repurchased (including acquisitions costs)  $- $  -  $  -  $   38.60 $ 58.08  
Closing market price$  34.54 $  24.14 $  29.39 $  34.69 $  52.92 
                
RATIOS AND OTHER DATA (dollars in thousands)               
Return on average equity (1) 15.1% 16.4% 15.4% 19.8% 7.8%
Return on revenue (2) 16.5% 16.1% 14.6% 17.8% 7.7%
Return on average assets (3) 4.2% 4.4% 4.1% 5.5% 2.3%
Operating margin (4) 30.4% 31.8% 31.5% 30.9% 23.6%
Operating expense to cash receipts (5) 39.7% 38.0% 38.4% 40.9% 44.0%
Debt to stockholders'equity (6) 193.7% 215.8% 219.3% 214.5% 191.6%
Number of collectors 2,083  2,023  2,103  2,173  2,159 
Number of full-time equivalent employees 3,859  3,816  3,748  3,799  3,715 
Cash receipts (5)$  389,297 $  409,549 $  400,599 $  389,020 $  398,556 
Lines of credit - unused portion at period end   630,775    430,651    435,709    446,769    393,246 
      
(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 financial measures and ratios, which exclude penalty and redress associated with the Consumer Financial Protection Bureau consent order, expenses associated with acquisitions, legal costs not associated with normal operations, one-time tax items and constant currency adjustments, improve comparability between current year results and prior periods and better reflect the Company's operational performance.  In all periods presented, the Company adjusted the income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above in non-GAAP financial measures. Management uses non-GAAP financial measures internally to evaluate the Company's performance and to set performance goals.  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.

The constant currency results assume that foreign revenues and expenses are translated from foreign currencies to the U.S. Dollar at rates consistent with the prior year, and that any benefit or loss caused by foreign currency fluctuations would be consistent with the prior year.  To do this the Company translates the current year's income statements into U.S. Dollars using the prior year's average exchange rates and then replaces the foreign exchange gain or loss for the current year with the balance from the prior year.  Finally, the Company calculates the tax impact of the constant currency results to reflect the current effective tax rate of the reporting period.

 
Three Months Ended September 30, 2016
  Net Income   Average Equity   Return on Average
Equity, Annualized 

 As Reported $  34,306  $  907,797   15.1%
 Adjustments    (2,653)    (884)  -1.1%
 As Adjusted    31,653     906,913   14.0%
      
Nine Months Ended September 30, 2016
  Net Income   Average Equity    Return on Average
Equity, Annualized

 As Reported $  102,745  $  875,585   15.6%
 Adjustments    6,735     748   1.1%
 As Adjusted    109,480     876,333   16.7%
      
Three Months Ended September 30, 2015
  Net Income   Average Equity   Return on Average
Equity, Annualized 

 As Reported $  17,396  $  897,043   7.8%
 Adjustments    24,042     8,014   10.5%
 As Adjusted    41,438     905,057   18.3%
      
Nine Months Ended September 30, 2015
  Net Income   Average Equity   Return on Average
Equity, Annualized
 
 As Reported $  126,956  $  848,602   19.9%
 Adjustments    26,655     2,961   4.1%
 As Adjusted    153,611     851,563   24.1%
      


 Three Months Ended September 30, 2016
  Total
Revenues
 Total Operating
Expenses
 Income from
Operations
 Provision for
Income Taxes
 Net Income
attributable to PRA
Group, Inc.
 Diluted
EPS
 As Reported$  221,984  $  154,496  $  67,488  $  16,664  $  34,306  $  0.74 
 Adjustments:           
 CFPB expenses including penalty and redress   -      (20)    20     8     12     -  
 Acquisition-related expenses   -      (216)    216     84     132     -  
 One-time tax items   -      -      -      (1,383)    1,383     0.03 
 Legal costs not associated with normal operations   -      (1,511)    1,511     584     927     0.02 
 Constant currency adjustments   2,216     1,620     596     (4,597)    (5,107)    (0.11)
 Subtotal of adjustments   2,216     (127)    2,343     (5,304)    (2,653)    (0.06)
 As Adjusted   224,200     154,369     69,831     11,360     31,653     0.68 
            
 Nine Months Ended September 30, 2016
  Total
Revenues
 Total Operating
Expenses
 Income from
Operations
 Provision for
Income Taxes
 Net Income
attributable to PRA
Group, Inc.
 Diluted
EPS
 As Reported$  675,322  $  464,184  $  211,138  $  50,244  $  102,745  $  2.21 
 Adjustments:           
 CFPB expenses including penalty and redress   -      (93)    93     34     59     -  
 Acquisition-related expenses   -      (1,807)    1,807     661     1,146     0.03 
 One-time tax items   -      -      -      (1,383)    1,383     0.03 
 Legal costs not associated with normal operations   -      (3,569)    3,569     1,305     2,264     0.05 
 Constant currency adjustments   7,487     4,749     2,738     (957)    1,882     0.04 
 Subtotal of adjustments   7,487     (720)    8,207     (340)    6,734     0.15 
 As Adjusted   682,809     463,464     219,345     49,904     109,479     2.36 
            
 Three Months Ended September 30, 2015
  Total
Revenues
 Total Operating
Expenses
 Income from
Operations
 Provision for
Income Taxes
 Net Income
attributable to PRA
Group, Inc.
 Diluted
EPS
 As Reported$  229,430  $  175,303  $  54,127  $  16,597  $  17,396  $  0.36 
 Adjustments:           
 CFPB expenses including penalty and redress   -      (28,806)    28,806     8,262     20,544     0.42 
 Acquisition-related expenses   -      (802)    802     230     572     0.01 
 One-time tax items   -      -      -      (2,026)    2,026     0.04 
 Legal costs not associated with normal operations   -      (1,262)    1,262     362     900     0.02 
 Subtotal of adjustments   -      (30,870)    30,870     6,828     24,042     0.49 
 As Adjusted   229,430     144,433     84,997     23,425     41,438     0.85 
 
 
 Nine Months Ended September 30, 2015
  Total
Revenues
 Total Operating
Expenses
 Income from
Operations
 Provision for
Income Taxes
 Net Income
attributable to PRA
Group, Inc.
 Diluted
EPS
 As Reported$  711,833  $  472,661  $  239,172  $  74,227  $  126,956  $  2.61 
 Adjustments:           
 CFPB expenses including penalty and redress   -      (28,806)    28,806     8,220     20,586     0.42 
 Acquisition-related expenses   -      (3,988)    3,988     1,138     2,850     0.06 
 One-time tax items   -      -      -      (2,026)    2,026     0.04 
 Legal costs not associated with normal operations   -      (1,669)    1,669     476     1,193     0.02 
 Subtotal of adjustments   -      (34,463)    34,463     7,808     26,655     0.54 
 As Adjusted   711,833     438,198     273,635     82,035     153,611     3.15 
 


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