NASDAQ$PRAA

Pra Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported strong first quarter performance with record cash collections and increased income from operations.

PRA Group reported a strong start to 2020, with record global cash collections of $494.6 million, a 7% increase year-over-year, and net income attributable to PRA Group, Inc. rising to $19.1 million from $15.2 million in the first quarter of 2019.

  • Global cash collections reached a record $494.6 million, up 7% from Q1 2019.
  • Estimated Remaining Collections (ERC) increased by $273.8 million to $6.5 billion, a 4% rise compared to Q1 2019.
  • Total portfolio purchases amounted to $273.2 million.
  • Income from operations increased by 24% to $60.5 million compared to the first quarter of 2019.

Headline financials

Total Revenue

$252M

Previous: $246M+2.4%
EPS (adj)

$0.42

Previous: $0.34+23.5%
Total cash collections

$495M

Previous: $461M+7.2%
Estimated remaining collections

$6.5B

Previous: $6.23B+4.4%
Cash efficiency ratio

61.5%

Previous: 59.2%+3.9%
Capital Expenditures

-$7.64M

Previous: -$4.49M-70.0%
Free Cash Flow

$11.5M

Previous: $10.7M+7.1%
Net Income

$19.1M

Previous: $15.2M+25.7%
Operating Income

$60.5M

Previous: $48.8M+23.9%
Gross Profit

$252M

Previous: $246M+2.4%
Cash & Equivalents

$180M

Previous: $102M+76.3%
Total Assets

$4.35B

Previous: $4.11B+5.9%
Stock-Based Comp

$2.86M

Previous: $2.31M+23.5%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$252M

Q1 2020+2.4%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Pra Group · $250M total across 3 segments · Q1 2020

  • Portfolio income
    $262M
  • Other revenue
    $369K
  • Changes in expected recoveries
    -$12.8M

Forward guidance

PRA Group did not provide specific forward guidance in this earnings report. However, they did state that for the month of April, total cash collections increased on a constant currency basis compared to April of 2019, trending ahead of the cash forecast revised for the impact of COVID-19.

Tailwinds

  • Collector attendance rates in the U.S. returning to pre-COVID-19 levels.
  • Continued portfolio acquisitions.
  • Consumer payment trends.
  • Relaxation of restrictions in some localities globally.
  • Total cash collections increased on a constant currency basis compared to April of 2019, trending ahead of the cash forecast revised for the impact of COVID-19.

Headwinds

  • COVID-19 impacted cash production through reduced workforce and decreased collection rates.
  • Call centers remain open, with the exception of Henderson, Nevada.
  • The strengthening U.S. Dollar caused a $239.0 million decrease in ERC compared to year-end 2019.
  • Changes in expected recoveries were a decrease of $12.8 million, primarily related to an expected delay in cash collections from the impact of COVID-19.
  • PRA Group is closely monitoring the impacts of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+37.1%

Q1 2020

Best reaction

-31.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.1%-29.6%
Q4 2025+24.0%+34.6%+33.0%
Q3 2025-11.1%+0.7%+17.6%
Q1 2025-29.4%-30.0%-26.1%
Q4 2024-4.2%-6.0%-13.9%
Q3 2024+14.3%+16.0%-0.4%
Q2 2024-10.3%-5.3%-7.5%
Q1 2024+0.4%+6.1%-16.5%
Q4 2023+21.6%+13.3%-0.8%
Q3 2023+20.3%+14.2%+46.6%
Q2 2023-0.6%-7.1%-12.1%
Q1 2023-31.0%-47.4%-33.8%
Q4 2022+5.8%+5.5%-5.2%
Q3 2022-3.1%+1.7%+7.7%
Q2 2022+2.3%+2.3%-4.8%
Q1 2022-6.5%-8.8%-11.2%
Q4 2021-2.2%-2.0%-1.7%
Q3 2021-2.1%-4.0%-3.6%
Q2 2021+9.6%+6.7%+10.2%
Q1 2021+0.0%-3.1%+0.3%
Q4 2020-2.1%-2.5%-1.0%
Q3 2020-1.0%+5.4%+17.9%
Q2 2020+5.7%+6.9%+7.3%
Q1 2020+37.1%+32.6%+56.3%
Q4 2019+10.6%+8.2%-20.3%
Q3 2019+7.7%+7.3%+6.3%
Q2 2019+11.8%+12.3%+16.4%
Q1 2019+5.6%+5.4%+6.5%
Q4 2018-3.8%-6.8%-16.1%
Q3 2018-11.6%-2.0%-13.0%
Q2 2018-8.6%-5.7%-7.2%
Q1 2018+8.3%+6.4%+12.2%
Q4 2017+8.7%+10.4%+7.8%
Q3 2017+23.7%+20.4%+28.2%
Q2 2017-11.5%-17.7%-26.8%
Q1 2017+10.1%+11.0%+12.0%
Q4 2016-14.2%-17.2%-21.1%
Q3 2016-12.6%+0.3%+20.1%
Q2 2016+6.8%+0.7%+20.7%
Q1 2016-20.7%
Q4 2015-15.9%
Q3 2015-14.1%
Q2 2015-10.0%
Q1 2015+5.9%
Q4 2014-0.7%
Q3 2014-2.3%
Q2 2014-6.2%
Q1 2014-1.5%
Q4 2013+16.7%
Q3 2013-6.2%
Q2 2013+5.6%
Q1 2013+7.3%
Q4 2012+6.9%
Q3 2012+4.4%
Q2 2012+18.0%
Q1 2012+10.5%
Q4 2011-0.6%
Q3 2011-0.5%
Q1 2010-11.0%
Q2 2011-11.0%
Q1 2011+1.7%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2010-1.0%
Q2 2009-1.0%
Q4 2009-1.0%

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