NASDAQ$PRAA

Pra Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

PRA Group's financial performance reflected a solid purchasing quarter driven by increased portfolio acquisitions in Europe, particularly in Northern Europe, with strategic capital allocation through share repurchases.

PRA Group reported a decrease in total cash collections and portfolio revenue compared to Q2 2021, but a solid purchasing quarter driven by increased portfolio acquisitions in Europe. The company repurchased shares of common stock, underscoring its commitment to deploy capital in the areas that can generate the highest returns for its shareholders.

  • Total portfolio purchases were $231.3 million.
  • Total cash collections reached $444.1 million.
  • Diluted earnings per share were $0.91.
  • Company repurchased $34.9 million in common stock, representing 0.8 million shares.

Headline financials

Total Revenue

$258M

Previous: $286M-9.6%
EPS (adj)

$0.91

Previous: $1.22-25.4%
Estimated remaining collections

$5.6B

Previous: $6.1B-8.2%
Cash efficiency ratio

61.3%

Previous: 66.8%-8.2%
Capital Expenditures

-$8.21M

Previous: -$4.1M-100.4%
Free Cash Flow

$28.3M

Previous: $51.9M-45.5%
Net Income

$36.5M

Previous: $56M-34.8%
Operating Income

$83.7M

Previous: $104M-19.6%
Gross Profit

$258M

Previous: $286M-9.6%
Cash & Equivalents

$68M

Previous: $76M-10.6%
Total Assets

$4.09B

Previous: $4.26B-4.0%
Stock-Based Comp

$3.85M

Previous: $4.04M-4.7%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$258M

Q2 2022-9.6%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Pra Group · $205M total across 2 segments · Q2 2023

  • Portfolio income
    $184M
  • Changes in expected recoveries
    $21.1M

Forward guidance

Company expects more supply will be available in the coming months and will continue executing its measured strategy, while remaining active in the market and preparing to ramp up its purchasing as supply increases.

Tailwinds

  • Company had a solid purchasing quarter, driven by increased portfolio acquisitions in Europe, specifically in Northern Europe
  • Company continues to see deterioration in consumer savings, higher credit card balances, and rising delinquency rates, which we believe suggests that more supply will be available in the coming months
  • Company's strong balance sheet and geographic diversity provide it with a significant competitive advantage in capitalizing on what appears to be an increasingly favorable purchasing environment
  • Company's strong balance sheet permits it to be disciplined in capital allocation strategy
  • Company repurchased nearly $35 million of shares of its common stock, underscoring its commitment to deploy capital in the areas that can generate the highest returns for its shareholders

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.6%

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%-23.3%
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 2009+0.1%
Q3 2010+0.1%
Q4 2009-1.0%
Q2 2009-1.0%
Q2 2010-1.0%

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