NASDAQ$PRAA

Pra Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported an increase in net income and diluted earnings per share.

PRA Group reported strong Q4 2021 results, with increased net income and diluted earnings per share. Total cash collections were $473.7 million, and total revenues reached $256.9 million. The company also executed significant common stock repurchases.

  • Total cash collections were $473.7 million.
  • Total revenues were $256.9 million.
  • Diluted earnings per share increased 22% to $0.79.
  • Total portfolio purchases of $201.7 million.

Headline financials

Total Revenue

$257M

Previous: $274M-6.2%
EPS (adj)

$0.79

Previous: $0.65+21.5%
Cash efficiency ratio

63.5%

Previous: 61.9%+2.6%
Capital Expenditures

$4.44M

Previous: $4.32M+2.7%
Free Cash Flow

$42.2M

Previous: $6.02M+600.9%
Net Income

$36.4M

Previous: $36.6M-0.7%
Operating Income

$82.4M

Previous: $89.2M-7.6%
Gross Profit

$166M

Previous: $176M-5.4%
Cash & Equivalents

$87.6M

Previous: $109M-19.4%
Total Assets

$4.37B

Previous: $4.45B-1.9%
Stock-Based Comp

$3.47M

Previous: $5.37M-35.4%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$257M

Q4 2021-6.2%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

PRA Group anticipates a strong European pipeline and increasing pipeline in the U.S. by the end of 2022, supported by its strong balance sheet.

Tailwinds

  • Maximum forward flow commitments were $149 million higher than the commitments entering 2021.
  • Believe the European pipeline is strong.
  • Economic indicators point to an increasing pipeline in the U.S. by the end of 2022.
  • Strong balance sheet will allow capitalization on opportunities.
  • Considerable flexibility for balanced capital deployment across portfolio acquisitions, share repurchases and other growth initiatives.

Headwinds

  • Increased competition.
  • Pricing pressure.
  • Decrease in U.S. call center and other cash collections.
  • Decrease in Brazil cash collections.
  • Shift in collections from the legal channel to the call centers and digital platforms.

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 Q4 2021

Historical avgQ4 2021

+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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