PRA Group (PRAA) Tops Q1 EPS by 52c, Revenues Beat

PRA Group (NASDAQ: PRAA) reported Q1 EPS of $1.27, $0.52 better than the analyst estimate of $0.75. Revenue for the quarter came in at $289.5 million versus the consensus estimate of $272.58 million.

First Quarter Highlights (compared to the first quarter of 2020, unless otherwise indicated)

• Record total cash collections which increased 12% to $555.9 million.
• Record total revenues which increased 15% to $289.5 million.
• Income from operations increased 83% to $110.8 million.
• Cash efficiency ratio1 of 68.0% during the quarter compared to 61.5% in the first quarter of 2020.
• Net income attributable to PRA Group, Inc. increased 205% to $58.4 million.
• Diluted earnings per share increased 202% to $1.27.
• Debt to Adjusted EBITDA2 for the last 12 months decreased to 1.77x from 1.99x at December 31, 2020.
• Total portfolio purchases of $159.0 million.
• Estimated remaining collections (ERC) of $6.1 billion.
• $1.2 billion available for portfolio purchases.

"PRA started 2021 with another record setting quarter. We collected record levels of cash globally and had record revenues. In Europe, solid portfolio purchases in 2020 drove record collections. In the U.S., we continued to see strong collections particularly in our call centers and digital platform. These results combined with increases in productivity helped to produce a near record cash efficiency ratio for the quarter," said Kevin Stevenson, president and chief executive officer. "Portfolio purchases during the quarter increased sequentially in the U.S. The market remains stable with little change in seller behavior; however, lower charge off rates are pushing forward flow volumes to the lower end of the contracted range. In Europe, we were pleased with our investment volume in what is normally a seasonally slower quarter. We have solid volumes of forward flows secured, believe the pipeline in Europe is larger than what 2020 offered, and were awarded our first portfolio, a forward flow, in Australia."

For earnings history and earnings-related data on PRA Group (PRAA) click here.

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