PRA Group
Feb 28, 2017

PRA Group Reports Fourth Quarter and Full Year 2016 Results

NORFOLK, Va., Feb. 28, 2017 (GLOBE NEWSWIRE) -- PRA Group, Inc. (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter and full year of 2016.  The company reported a net loss per share of $0.38. For the full year, the company reported diluted earnings per share of $1.83.  Non-GAAP financial results are presented in constant currency with the corresponding period 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. 

Fourth Quarter Highlights

Full Year 2016 Highlights

"While our fourth quarter GAAP earnings reflect a non-cash allowance charge, our economic performance remained solid and we made substantial progress resolving operational and regulatory challenges.  PRA Group spent much of 2016 preparing for, and to the extent possible, attempting to influence, a number of evolving forces that we believe could ultimately be beneficial to our shareholders," said Steve Fredrickson, chairman and chief executive officer, PRA Group.  "Relief from the antiquated interpretation of the Telephone Consumer Protection Act (TCPA), potential increases in domestic supply of nonperforming loans, the prospect of consolidating competition in Europe, and possible clarification of collection regulations are several of these potential tailwinds.  We stand ready and waiting to capitalize on any of these events and are excited about what the future holds for PRA Group." 

REVENUES AND CASH COLLECTIONS

         
 Cash Collection Source  2016  2015
 ($ in thousands) Q4Q3Q2Q1 Q4
 Americas-Core $193,360$210,524$213,741$219,571 $195,834
 Americas-Insolvency  52,988 60,429 67,745 68,646  73,843
 Europe-Core  97,429 96,028 102,972 94,091  97,149
 Europe-Insolvency  4,974 4,719 2,744 2,025  2,545
 Total Cash Collections $348,751$371,700$387,202$384,333 $369,371
         
 Cash Collection Source -        
 Constant Currency Adjusted  2016     2015
 ($ in thousands) Q4    Q4
 Americas-Core $190,534    $195,834
 Americas-Insolvency  52,997     73,843
 Europe-Core  106,573     97,149
 Europe-Insolvency  5,714     2,545
 Total Cash Collections $355,818    $369,371
         
         

EXPENSES AND OPERATING INCOME

NET INCOME AND EPS

PORTFOLIO ACQUISITIONS

         
 Portfolio Purchase Source  2016  2015
 ($ in thousands) Q4Q3Q2Q1 Q4
 Americas-Core $91,800$95,452$130,529$136,057 $120,554
 Americas-Insolvency  20,929 16,760 33,723 22,952  20,589
 Europe-Core  80,129 34,240 68,835 171,038  79,735
 Europe-Insolvency  6,943 14,803 16,410 6,731  4,976
 Total Portfolio Purchasing $199,801$161,255$249,497$336,778 $225,854
         

BALANCE SHEET

Conference Call Information
PRA Group will hold a conference call today at 5:00 p.m. ET to discuss the company's fourth quarter and full year 2016 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 58396415.  To listen to a replay of the call until March 7, 2017, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 58396415.                         

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 over 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 businesses. 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 Twelve Months Ended 
       December 31, December 31, 
        2016   2015   2016   2015  
               
Revenues:        
 Income recognized on finance receivables, net$131,965   208,471  $745,119  $865,122  
 Fee income 21,171   19,649   77,381   64,383  
 Other revenue 2,122   2,065   8,080   12,513  
    Total revenues 155,258   230,185   830,580   942,018  
               
Operating expenses:        
 Compensation and employee services 61,390   68,670   258,846   268,345  
 Legal collection expenses 34,726   28,647   132,202   129,456  
 Agency fees 10,695   8,182   44,922   32,188  
 Outside fees and services 16,683   27,309   63,098   65,155  
 Communication 7,652   6,601   33,771   33,113  
 Rent and occupancy 4,001   3,991   15,710   14,714  
 Depreciation and amortization 6,020   4,935   24,359   19,874  
 Other operating expenses 7,023   10,678   39,466   68,829  
    Total operating expenses 148,190   159,013   612,374   631,674  
    Income from operations 7,068   71,172   218,206   310,344  
               
Other income and (expense):        
 Interest expense (21,026)  (15,321)  (80,864)  (60,336) 
 Impairment of investments (5,823)  -   (5,823)  -  
 Foreign exchange (loss)/gain (2,619)  301   2,564   7,514  
    (Loss)/Income before income taxes (22,400)  56,152   134,083   257,522  
               
    Provision for income taxes (7,053)  15,164   43,191   89,391  
    Net (loss)/income$(15,347) $40,988  $  90,892  $168,131  
     Adjustment for net income attributable to noncontrolling interests 2,301   18   5,795   205  
    Net (loss)/income attributable to PRA Group, Inc.$(17,648) $40,970  $  85,097  $167,926  
               
Net (loss)/income per common share attributable to PRA Group, Inc.:        
 Basic  $  (0.38) $  0.87  $  1.84  $  3.49  
 Diluted $  (0.38) $  0.86  $  1.83  $  3.47  
               
Weighted average number of shares outstanding:        
 Basic   46,346   47,197   46,316   48,128  
 Diluted  46,346   47,539   46,388   48,405  
               

 

PRA Group, Inc. 
Unaudited Consolidated Balance Sheets 
(in thousands) 
           
       December 31, December 31, 
ASSETS 2016   2015  
           
Cash and cash equivalents$  94,287  $  71,372  
Investments 68,543   73,799  
Finance receivables, net 2,307,969   2,202,113  
Other receivables, net 11,650   30,771  
Income taxes receivable 9,427   1,717  
Net deferred tax asset 28,482   13,068  
Property and equipment, net 38,744   45,394  
Goodwill   499,911   495,156  
Intangible assets, net 27,935   23,788  
Other assets 33,808   33,389  
Assets held for sale 43,243   -  
           
     Total assets$  3,163,999  $  2,990,567  
           
LIABILITIES AND EQUITY    
           
Liabilities:     
 Accounts payable$  2,459  $  4,190  
 Accrued expenses 82,699   95,380  
 Income taxes payable 19,631   21,236  
 Net deferred tax liability 258,344   261,498  
 Interest-bearing deposits 76,113   46,991  
 Borrowings 1,784,101   1,717,129  
 Other liabilities 10,821   4,396  
 Liabilities held for sale 4,220   -  
           
     Total liabilities 2,238,388   2,150,820  
           
Redeemable noncontrolling interest 8,448   -  
           
Equity:      
  Preferred stock, par value $0.01, authorized shares, 2,000,    
   issued and outstanding shares, 0 -   -  
  Common stock, par value $0.01, authorized shares, 100,000, issued    
   and outstanding shares, 46,356 at December 31, 2016; 100,000     
   authorized shares, 46,173 issued and outstanding shares at  464   462  
   December 31, 2015    
  Additional paid-in capital 66,414   64,622  
  Retained earnings 1,049,367   964,270  
  Accumulated other comprehensive loss (251,944)  (228,861) 
   Total stockholders' equity - PRA Group, Inc. 864,301   800,493  
    Noncontrolling interest 52,862   39,254  
    Total equity 917,163   839,747  
     Total liabilities and equity$  3,163,999  $  2,990,567  
              

 

PRA Group, Inc.
Financial Highlights
 As of and for the  As of and for the
 Three Months Ended December 31, Twelve Months Ended December 31,
  2016  2015 Change  2016  2015 Change
EARNINGS (in thousands)       
Income recognized on finance receivables, net$131,965 $208,471 -37% $745,119 $865,122 -14%
Fee income 21,171  19,649 8%  77,381  64,383 20%
Other revenue 2,122  2,065 3%  8,080  12,513 -35%
Total revenues 155,258  230,185 -33%  830,580  942,018 -12%
Operating expenses 148,190  159,013 -7%  612,374  631,674 -3%
Income from operations 7,068  71,172 -90%  218,206  310,344 -30%
Net interest expense 21,026  15,321 37%  80,864  60,336 34%
Net (loss)/income (15,347) 40,988 -137%  90,892  168,131 -46%
Net (loss)/income attributable to PRA Group, Inc. (17,648) 40,970 -143%  85,097  167,926 -49%
        
PERIOD-END BALANCES (in thousands)       
Cash and cash equivalents$94,287 $71,372 32% $94,287 $71,372 32%
Finance receivables, net 2,307,969  2,202,113 5%  2,307,969  2,202,113 5%
Goodwill and intangible assets, net 527,846  518,944 2%  527,846  518,944 2%
Total assets 3,163,999  2,990,567 6%  3,163,999  2,990,567 6%
Borrowings 1,784,101  1,717,129 4%  1,784,101  1,717,129 4%
Total liabilities 2,238,388  2,150,820 4%  2,238,388  2,150,820 4%
Total equity - PRA Group, Inc. 864,301  800,493 8%  864,301  800,493 8%
        
FINANCE RECEIVABLE INCOME (dollars in thousands)       
Cash collections$348,751 $369,371 -6% $1,491,986 $1,539,495 -3%
Cash collections on fully amortized pools 9,041  8,280 9%  34,185  51,900 -34%
Principal amortization without allowance charges 154,271  149,381 3%  648,388  645,004 1%
Allowance charges 62,515  11,519 443%  98,479  29,369 235%
Principal amortization with allowance charges 216,786  160,900 35%  746,867  674,373 11%
Principal amortization w/ allowance charges as % of cash collections:       
Including fully amortized pools 62.2% 43.6%43%  50.1% 43.8%14%
Excluding fully amortized pools 63.8% 44.6%43%  51.2% 45.3%13%
Allowance charges to period-end net finance receivables 2.7% 0.5%418%  4.3% 1.3%220%
        
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)       
Purchase price - Americas core$91,800 $120,554 -24% $453,838 $448,281 1%
Purchase price - Americas insolvency 20,929  20,589 2%  94,364  65,437 44%
Purchase price - Europe core 80,129  79,735 0%  354,242  430,198 -18%
Purchase price - Europe insolvency 6,943  4,976 40%  44,887  19,895 126%
Purchase price - total 199,801  225,854 -12%  947,331  963,811 -2%
Number of portfolios - total 126  139 -9%  523  542 -4%
        
ESTIMATED REMAINING COLLECTIONS (in thousands)       
Estimated remaining collections - Americas core$2,571,887 $2,558,529 1% $2,571,887 $2,558,529 1%
Estimated remaining collections - Americas insolvency 331,371  448,652 -26%  331,371  448,652 -26%
Estimated remaining collections - Europe core 2,072,936  1,964,763 6%  2,072,936  1,964,763 6%
Estimated remaining collections - Europe insolvency 71,810  34,878 106%  71,810  34,878 106%
Estimated remaining collections - total 5,048,004  5,006,822 1%  5,048,004  5,006,822 1%
Adjusted estimated remaining collections (7) 5,109,404  5,114,923 0%  5,109,404  5,114,923 0%
        
SHARE DATA (share amounts in thousands)       
Net (loss)/income per common share - diluted$(0.38)$0.86 -144% $1.83 $3.47 -47%
Weighted average number of shares outstanding - diluted 46,346  47,539 -3%  46,388  48,405 -4%
Shares repurchased -  2,072 -100%  -  3,683 -100%
Average price paid per share repurchased (including acquisitions costs)$-  38.60 -100%  -  44.94 -100%
Closing market price$39.10 $34.69 13% $39.10 $34.69 13%
        
RATIOS AND OTHER DATA (dollars in thousands)       
Return on average equity (1) -7.9% 19.8%-140%  9.7% 19.9%-51%
Return on revenue (2) -9.9% 17.8%-156%  10.9% 17.8%-39%
Return on average assets (3) -2.2% 5.5%-140%  2.6% 5.9%-56%
Operating margin (4) 4.6% 30.9%-85%  26.3% 32.9%-20%
Operating expense to cash receipts (5) 40.1% 40.9%-2%  39.0% 39.4%-1%
Debt to total equity - PRA Group, Inc. (6) 206.4% 214.5%-4%  206.4% 214.5%-4%
Number of full-time equivalent collectors 1,906  2,029 -6%  1,906  2,029 -6%
Number of full-time equivalent employees 4,019  3,799 6%  4,019  3,799 6%
Cash receipts (5)$  369,922 $  389,020 -5% $  1,569,367 $  1,603,878 -2%
Lines of credit - unused portion at period end   641,132    446,769 44%    641,132    446,769 44%
        
(1)  Calculated as annualized or annual net income divided by average equity for the period
(2)  Calculated as net income divided by total revenues
(3)  Calculated as annualized or annual 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
 December 31September 30June 30March 31December 31
  2016  2016  2016  2016  2015 
EARNINGS (in thousands)     
Income recognized on finance receivables, net$  131,965 $  202,639 $  204,008 $  206,507 $  208,471 
Fee income   21,171    17,597    22,347    16,266    19,649 
Other revenue   2,122    1,748    2,101    2,109    2,065 
Total revenues   155,258    221,984    228,456    224,882    230,185 
Operating expenses   148,190    154,496    155,700    153,988    159,013 
Income from operations   7,068    67,488    72,756    70,894    71,172 
Net interest expense   21,026    19,310    20,569    19,959    15,321 
Net (loss)/income   (15,347)   36,518    36,868    32,853    40,988 
Net (loss)/income attributable to PRA Group, Inc.   (17,648)   34,306    36,456    31,983    40,970 
      
PERIOD-END BALANCES (in thousands)     
Cash and cash equivalents$  94,287 $  91,791 $  117,071 $  79,442 $  71,372 
Finance receivables, net   2,307,969    2,392,408    2,399,949    2,377,077    2,202,113 
Goodwill and intangible assets, net   527,846    592,044    576,992    557,024    518,944 
Total assets   3,163,999    3,279,347    3,305,596    3,268,833    2,990,567 
Borrowings   1,784,101    1,816,600    1,912,283    1,896,424    1,717,129 
Total liabilities   2,238,388    2,291,369    2,370,415    2,360,091    2,150,820 
Total equity - PRA Group, Inc.   864,301    937,702    886,077    864,868    800,493 
      
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)     
Cash collections$  348,751 $  371,700 $  387,202 $  384,333 $  369,371 
Cash collections on fully amortized pools   9,041    7,744    8,124    9,276    8,280 
Principal amortization without allowance charges   154,271    155,915    170,274    167,928    149,381 
Allowance charges   62,515    13,146    12,920    9,898    11,519 
Principal amortization with allowance charges   216,786    169,061    183,194    177,826    160,900 
Principal amortization w/ allowance charges as % of cash collections:     
Including fully amortized pools 62.2% 45.5% 47.3% 46.3% 43.6%
Excluding fully amortized pools 63.8% 46.5% 48.3% 47.4% 44.6%
Allowance charges to period-end net finance receivables 2.7% 0.5% 0.5% 0.4% 0.5%
      
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)     
Purchase price - North America core$  91,800 $  95,452 $  130,529 $  136,057 $  120,554 
Purchase price - North America insolvency   20,929    16,760    33,723    22,952    20,589 
Purchase price - Europe core   80,129    34,240    68,835    171,038    79,735 
Purchase price - Europe insolvency   6,943    14,803    16,410    6,731    4,976 
Purchase price - total   199,801    161,255    249,497    336,778    225,854 
Number of portfolios - total 126  122  136  139  139 
      
ESTIMATED REMAINING COLLECTIONS (in thousands)     
Estimated remaining collections - Americas core$  2,571,887 $  2,672,427 $  2,705,781 $  2,643,410 $  2,558,529 
Estimated remaining collections - Americas insolvency   331,371    356,363    396,667    421,866    448,652 
Estimated remaining collections - Europe core   2,072,936    2,148,230    2,171,542    2,152,403    1,964,763 
Estimated remaining collections - Europe insolvency   71,810    72,919    59,107    40,938    34,878 
Estimated remaining collections - total   5,048,004    5,249,939    5,333,097    5,258,617    5,006,822 
Adjusted estimated remaining collections (7)   5,109,404    5,345,657    5,430,192    5,366,417    5,114,923 
      
SHARE DATA (share amounts in thousands)     
Net (loss)/income per common share - diluted$  (0.38)$  0.74 $  0.79 $  0.69 $  0.86 
Weighted average number of shares outstanding - diluted   46,346    46,434    46,402    46,372    47,539 
Shares repurchased   -    -    -    -    2,072 
Average price paid per share repurchased (including acquisitions costs)$  -  $  -  $  -  $  -  $  38.60 
Closing market price$  39.10 $  34.54 $  24.14 $  29.39 $  34.69 
      
RATIOS AND OTHER DATA (dollars in thousands)     
Return on average equity (1) -7.9% 15.1% 16.4% 15.4% 19.8%
Return on revenue (2) -9.9% 16.5% 16.1% 14.6% 17.8%
Return on average assets (3) -2.2% 4.2% 4.4% 4.1% 5.5%
Operating margin (4) 4.6% 30.4% 31.8% 31.5% 30.9%
Operating expense to cash receipts (5) 40.1% 39.7% 38.0% 38.4% 40.9%
Debt to total equity - PRA Group, Inc. (6) 206.4% 193.7% 215.8% 219.3% 214.5%
Number of full-time equivalent collectors 1,906  1,859  1,804  1,881  2,029 
Number of full-time equivalent employees 4,019  3,859  3,816  3,748  3,799 
Cash receipts (5)$  369,922 $  389,297 $  409,549 $  400,599 $  389,020 
Lines of credit - unused portion at period end   641,132    630,775    430,651    435,709    446,769 
      
(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 December 31, 2016
  Net (Loss)   Average Equity   Return on Average
Equity, Annualized
 
 As Reported $  (17,648) $  894,821 -7.9%
 Adjustments    2,210     738 1.0%
 As Adjusted    (15,438)    895,559 -6.9%
      
Twelve Months Ended December 31, 2016
  Net Income   Average Equity   Return on Average
Equity
 As Reported $  85,097  $  880,394 9.7%
 Adjustments    8,900     745 1.0%
 As Adjusted    93,997     881,139 10.7%
      
Three Months Ended December 31, 2015
  Net Income   Average Equity   Return on Average
Equity, Annualized
 
 As Reported $  40,970  $  826,853 19.8%
 Adjustments    8,455     2,818 4.0%
 As Adjusted    49,425     829,671 23.8%
      
Twelve Months Ended December 31, 2015
  Net Income   Average Equity   Return on Average
Equity
 As Reported $  167,926  $  843,164 19.9%
 Adjustments    34,930     2,926 4.1%
 As Adjusted    202,856     846,090 24.0%
      

 

 Three Months Ended December 31, 2016 
  Total
Revenues
 Total
Operating
Expenses
 Income
from
Operations
 Provision for
Income Taxes
 Net Loss
attributable to
PRA Group, Inc.
 Diluted
EPS
 
 As Reported$155,258 $148,190  $7,068 $(7,053) $(17,648) $(0.38) 
 Adjustments:            
 Acquisition-related expenses -  (458)  458  168   290   0.01  
 One-time tax items -  -   -  (461)  461   0.01  
 Legal costs not associated with normal operations -  (3,741)  3,741  1,459   2,282   0.05  
 Constant currency adjustments 1,998  1,941   57  706   (823)  (0.02) 
 Subtotal of adjustments 1,998  (2,258)  4,256  1,872   2,210   0.05  
 As Adjusted 157,256  145,932   11,324  (5,181)  (15,438)  (0.33) 
            
 Twelve Months Ended December 31, 2016 
  Total
Revenues
 Total
Operating
Expenses
 Income
from
Operations
 Provision for
Income Taxes
 Net Income
attributable to
PRA Group, Inc.
 Diluted
EPS
 
 As Reported$830,580 $612,374  $218,206 $43,191  $85,097  $1.83  
 Adjustments:            
 CFPB expenses including penalty and redress -  (93)  93  35   58   0.00  
 Acquisition-related expenses -  (2,265)  2,265  850   1,415   0.03  
 One-time tax items -  -   -  (1,844)  1,844   0.04  
 Legal costs not associated with normal operations -  (7,310)  7,310  2,742   4,568   0.10  
 Constant currency adjustments 9,485  6,698   2,787  (272)  1,015   0.03  
 Subtotal of adjustments 9,485  (2,970)  12,455  1,511   8,900   0.20  
 As Adjusted 840,065  609,404   230,661  44,702   93,997   2.03  
             
 Three Months Ended December 31, 2015 
  Total
Revenues
 Total
Operating
Expenses
 Income
from
Operations
 Provision for
Income Taxes
 Net Income
attributable to
PRA Group, Inc.
 Diluted
EPS
 
 As Reported$230,185 $159,013  $71,172 $15,164  $40,970  $0.86  
 Adjustments:            
 CFPB expenses including penalty and redress -  (111)  111  43   68   0.00  
 Acquisition-related expenses -  (1,639)  1,639  634   1,005   0.02  
 Legal costs not associated with normal operations -  (12,045)  12,045  4,663   7,382   0.16  
 Subtotal of adjustments -  (13,795)  13,795  5,340   8,455   0.18  
 As Adjusted 230,185  145,218   84,967  20,504   49,425   1.04  
 
 
 Twelve Months Ended December 31, 2015 
  Total
Revenues
 Total
Operating
Expenses
 Income
from
Operations
 Provision for
Income Taxes
 Net Income
attributable to
PRA Group, Inc.
 Diluted
EPS
 
 As Reported$942,018 $631,674  $310,344 $89,391  $167,926  $3.47  
 Adjustments:            
 CFPB expenses including penalty and redress -  (28,917)  28,917  8,158   20,759   0.43  
 Acquisition-related expenses -  (5,627)  5,627  1,668   3,959   0.08  
 One-time tax items -  -   -  (1,846)  1,846   0.04  
 Legal costs not associated with normal operations -  (13,714)  13,714  5,348   8,366   0.17  
 Subtotal of adjustments -  (48,258)  48,258  13,328   34,930   0.72  
 As Adjusted 942,018  583,416   358,602  102,719   202,856   4.19  
 
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