Financial Results in Focus: PRA Group Inc. (NASDAQ: PRAA)

Carlos Williams

I am Carlos Williams and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind News Perception with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Services” category.

Address: 1411 Tully Street Detroit, MI 48219, USA
Phone: (+1) 313-676-2812
Email: Carloswilliams@newsperception.com
Carlos Williams

NORFOLK, Va., October 15, 2019 – Shares of PRA Group Inc. (NASDAQ: PRAA) lost -0.12% to $32.83. The stock traded total volume of 144.684K shares lower than the average volume of 257.78K shares.

PRA Group, Inc. (PRAA) reported net income attributable to PRA Group, Inc. of $15.20M compared to $21.10M in the first quarter of 2018. Diluted earnings per share were $0.34 compared to $0.47 in the first quarter of 2018.

First Quarter Highlights:

  • Record global cash collections of $461.20M, an increase of 8%, or 11% on a currency adjusted basis, compared to the first quarter of 2018. This growth was primarily driven by a 31% increase in U.S. legal cash collections and a 9% increase in U.S. call center and other cash collections.
  • Record Estimated Remaining Collections (ERC) of $6.26B which increased $114.20M from the fourth quarter of 2018.
  • Total investment for the quarter was $318.80M, a 90% increase compared to the first quarter of 2018.
  • Income recognized on finance receivables of $238.80M compared to $218.60M in the first quarter of 2018.

Cash Collections, Revenues, and Net Allowance Charges:

  • For the quarter, cash collections on fully amortized pools were $12.10M and cash collections on nonaccrual pools were $3.70M. Income recognized on finance receivables increased 9% compared to the first quarter of 2018 primarily due to record purchases in Americas Core during 2018 and significant purchases in Europe Core in the fourth quarter of 2018.
  • Net allowance charges in the quarter were $6.10M compared to $0.90M in the first quarter of 2018.
  • Fee income and other revenue in the quarter was $7.00M, and was generated primarily by our claims processing company, Claims Compensation Bureau. Fee income and other revenue was $5.50M in the first quarter of 2018.

Expenses:

  • Operating expenses in the quarter increased $21.40M compared to the first quarter of 2018 largely due to increased legal collection costs and fees and an increase in agency fees.  The increase in agency fees was primarily due to the shifting of fixed expenses to variable as a result of the sale of the RCB operating platform in Brazil and increased volumes of servicing activity outside of the U.S.
  • A foreign exchange gain in the amount of $6.30M was recorded during the quarter.

PRAA has the market capitalization of $1.48B and its EPS growth ratio for the past five years was -16.20%. The return on assets ratio of the Company was 1.50% while its return on investment ratio stands at 6.30%. Price to sales ratio was 1.54.

Carlos Williams

Carlos Williams

I am Carlos Williams and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind News Perception with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Services” category. Address: 1411 Tully Street Detroit, MI 48219, USA Phone: (+1) 313-676-2812 Email: Carloswilliams@newsperception.com

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