PRA (PRAA) - 2024 Q4 - Annual Report

Financial Performance - U.S. legal collections reached $376.0 million in 2024, an increase of 42.4$1.1 billion, an increase of $311.8 million, or 39.7$786.3 million in 2023[123]. - Net income attributable to PRA Group, Inc. was $70.6 million for the year[116]. - Diluted earnings per share for the year were reported at$1.79[116]. - Net income attributable to PRA Group was $70.6 million in 2024, a significant recovery from a net loss of$83.5 million in 2023[1]. - Adjusted EBITDA for 2024 was $1.1 billion, an increase of$130.6 million, or 12.9%, compared to $1.0 billion in 2023[1]. - Total cash collections for 2024 were$1.9 billion, an increase of $208.1 million, or 12.5$1.7 billion in 2023, largely due to higher U.S. Core cash collections[121]. - Total cash collections for 2024 reached $1,868,576, an increase of 12.5$1,660,450 in 2023[157]. - Total cash collections adjusted for foreign currency in 2024 were also $1,868,576, compared to$1,737,404 in 2022[157]. - Total cash collections in Europe for 2024 were $720,887, an increase from$663,526 in 2023[157]. - The company reported a total of $1,868,576,000 in cash collections since 1996-2014 for the Americas and Australia core segment[164]. - The total cash collections for the PRA Group in 2023 were$857,188,000, reflecting strong performance across regions[164]. - The company anticipates a total portfolio income of $1,098,056,000 for 2024, indicating growth in expected recoveries[164]. - The company reported a total of$5,695.1 million in Europe, contributing to the overall financial performance[167]. - The total cash collections for 2023 are projected to be $1,728.9 million, reflecting a recovery trend[167]. - The company reported cash paid for interest of$224,099,000 in 2024, compared to $138,305,000 in 2023[253]. Portfolio Purchases - Portfolio purchases in the U.S. totaled$795.8 million in 2024, a 40.2% increase from 2023, marking the second highest annual total in company history[113]. - Portfolio purchases in Europe amounted to $508.3 million in 2024, reflecting a 14.4$1.4 billion, an increase of 22.0%[116]. - Total portfolio purchases reached $1.4 billion in 2024, up$253.8 million, or 22.0%, from $1.2 billion in 2023, primarily driven by increases in Americas and Australia Core purchases[120]. - U.S. portfolio purchases in 2024 totaled$795,840, a significant increase of 40.2% compared to $567,561 in 2023[158]. - Major credit card purchases in the U.S. rose to$342,460 in 2024, representing 43.0% of total purchases, up from 29.6% in 2023[158]. - Fresh accounts in the U.S. accounted for $442,432, or 60.8$1.9 billion, representing a 12.5% increase[116]. - The company's end-of-year estimated remaining collections (ERC) stood at $7.5 billion, an increase of 16.6$7.46 billion as of December 31, 2024, with significant contributions from both Americas and Europe[155]. - Core cash collections in the Americas and Australia for 2024 were $1,045,377, up from$892,687 in 2023, reflecting a growth of 17.1%[157]. - The total estimated collections for the Americas and Australia Core portfolios as of December 31, 2024, are $22,171,954[161]. - Changes in expected recoveries significantly increased to$240,868 in 2024 from $29,134 in 2023[246]. - The company experienced a significant change in expected recoveries, with a negative adjustment of$(240,868,000) in 2024 compared to $(29,134,000) in 2023[253]. Expenses and Liabilities - Total operating expenses increased to$774.8 million in 2024, up $72.7 million, or 10.4$702.1 million in 2023[124]. - Interest expense, net for 2024 was $229.3 million, an increase of$47.6 million, or 26.2%, compared to $181.7 million in 2023, primarily due to a higher average debt balance[131]. - Income tax expense for 2024 was$21.0 million, an increase of $37.2 million, or 230.4$16.1 million in 2023[132]. - Total liabilities rose to $3,737,548 in 2024, up from$3,285,978 in 2023, indicating an increase of 13.7%[243]. - As of December 31, 2024, total borrowings amounted to $3.3 billion, with$236.0 million estimated for interest, unused fees, and principal payments over the next 12 months[180]. Goodwill and Assets - Goodwill decreased by $35.2 million or 8.2$396.4 million as of December 31, 2024, attributed to foreign currency translation adjustments[136]. - The company performed its most recent annual impairment review on goodwill as of October 1, 2024, concluding no impairment was necessary[203]. - The fair value of the DBC reporting unit was assessed using both income and market approaches, incorporating various financial forecasts and assumptions[204]. - Total assets increased to $4,931,155 in 2024, compared to$4,525,354 in 2023, reflecting a growth of 9.0%[243]. - The balance of total equity as of December 31, 2024, was $1,193,607,000, a decrease from$1,239,376,000 in 2023[251]. Strategic Initiatives and Future Outlook - The company plans to continue purchasing nonperforming loan portfolios, focusing on strategic acquisitions and geographical diversification[150]. - Forward flow agreements for nonperforming loans are estimated at approximately $498.9 million over the next 12 months, with$403.1 million for the Americas and Australia, and $95.8 million for Europe[179]. - The company actively manages liquidity to meet business needs and financial obligations, ensuring operational stability[169]. - The company has seen a steady increase in cash collections from$1,141.4 million in 2020 to $1,271.8 million in 2021[167]. - The company plans to continue focusing on international operations, with a significant portion of cash related to indefinitely reinvested earnings[170].