PRA (US:PRAA) Prnewswire·2024-11-04 21:05Core Insights - PRA Group, Inc. reported strong financial results for Q3 2024, achieving a net income of $27.2 million, or diluted earnings per share of $0.69, which includes a tax benefit of $7.7 million [2][3] - The company is on track to meet its financial and operational targets for 2024 and has announced new targets for 2025, focusing on growth and profitability [1][10] Financial Performance - Total cash collections for Q3 2024 increased by 13.7% year-over-year to $477.1 million, driven by higher collections in both the U.S. and Europe [4][5] - Total portfolio revenue for Q3 2024 rose by 30.5% to $276.7 million compared to $212.1 million in Q3 2023 [4][5] - Adjusted EBITDA for the 12 months ending September 30, 2024, was reported at $1.1 billion [2] Portfolio Acquisitions - The company invested $350 million in portfolio purchases during Q3 2024, contributing to a record estimated remaining collections (ERC) of $7.3 billion [3][8] - Forward flow commitments of $491.1 million are in place for the next 12 months, with $406.3 million in the Americas and Australia and $84.8 million in Europe [8][10] Operational Efficiency - The cash efficiency ratio for Q3 2024 was reported at 60.1% [2] - Operating expenses increased by 10.4% to $191.5 million, primarily due to higher legal collection costs and compensation expenses [6][7] Future Outlook - The company aims for portfolio investment levels to exceed $1.0 billion in 2025, with cash collections growth projected at 8% to 10% [10] - The return on average tangible equity is expected to improve to over 8% in 2024, up from a previous range of 6% to 8% [10]