PRA (PRAA)2025-02-19 21:09Financial Performance - Net income attributable to PRA Group, Inc. for Q4 2024 was $18.5 million, with diluted earnings per share of $0.47, compared to a net loss of $8.8 million in Q4 2023[2]. - Total revenues for Q4 2024 reached $293.2 million, a 32.4% increase from $221.4 million in Q4 2023[20]. - Net income attributable to PRA Group, Inc. was $18.5 million in Q4 2024, compared to a net loss of $8.8 million in Q4 2023[20]. - The net income attributable to PRA Group, Inc. for 2024 was $71 million, a significant recovery from a net loss of $83 million in 2023[36]. - The company's return on average tangible equity (ROATE) improved to 9.5% in 2024, compared to a negative 11.3% in 2023[37]. Portfolio and Collections - Total portfolio purchases reached a record $1.4 billion in 2024, representing a 22% increase year-over-year, with Q4 2024 purchases totaling $432.7 million[3]. - Total cash collections for Q4 2024 increased by 14.1% to $468.1 million, compared to $410.3 million in Q4 2023, and for the full year, cash collections grew by 12.5% to $1.9 billion[4]. - Total portfolio revenue in Q4 2024 increased by 31.1% to $285.0 million, while full-year revenue rose by 39.7% to $1.1 billion[5]. - Total estimated collections for the Americas and Australia core from 1996 to 2024 amount to $18,145,771, with a current purchase price multiple of 211% for 2024[26]. - Total estimated collections for Europe core from 2012 to 2024 amount to $9,940,185, with a current purchase price multiple of 180% for 2024[26]. - The total PRA Group's estimated collections are $32,112,139, with total net finance receivables of $7,460,626 as of December 31, 2024[29]. - The remaining collections for the Americas and Australia core as of 2024 are estimated at $1,593,881[26]. - The remaining collections for Europe core as of 2024 are estimated at $770,745[26]. Expenses and Liabilities - Operating expenses for Q4 2024 increased by 13.2% to $199.1 million, driven by higher legal collection costs and fees[6]. - Interest expense for the full year increased by 26.2% to $229.3 million, reflecting higher debt balances to support portfolio investments[11]. - Total liabilities increased to $3.74 billion as of December 31, 2024, compared to $3.29 billion a year earlier, marking a 13.7% rise[22]. - The company recorded an income tax expense of $21 million in 2024, compared to a benefit of $16 million in 2023[36]. - Depreciation and amortization expenses decreased to $11 million in 2024 from $13 million in 2023[36]. Cash Efficiency and Financial Ratios - The cash efficiency ratio improved to 58.8% for the full year 2024, compared to 58.0% in Q4 2024[3]. - Average tangible equity for 2024 was reported at $741,862 thousand, slightly down from $741,950 thousand in 2023[37]. - Total stockholders' equity for PRA Group, Inc. decreased to $1,135,032 thousand in 2024 from $1,167,112 thousand in 2023, reflecting a decline of about 2.7%[37]. - PRA Group reported an adjusted EBITDA of $1,138 million for 2024, an increase from $1,007 million in 2023, representing a growth of approximately 13%[36]. Future Projections and Targets - The company updated its 2025 financial targets, raising the portfolio purchases target to $1.2 billion[4]. - Total availability under the company's credit facilities as of December 31, 2024, was $1.0 billion[8]. - The projected cash collections for 2024 are expected to be $823.7 million, indicating a further increase of 32.3% compared to 2023[33].