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PRA Group Reports Second Quarter 2015 Results

NORFOLK, Va., Aug. 10, 2015 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring non-performing loans, today reported its financial results for the second quarter of 2015.

Second Quarter Highlights

  • Cash collections of $389.6 million, up 22% from the second quarter of 2014.
  • Revenues of $237.2 million, up 20%.
  • Income from operations of $88.9 million, up 23%. The second quarter of 2014 included costs and foreign exchange currency losses associated with the Aktiv Kapital acquisition. Excluding these costs in the second quarter of 2014, income from operations would have increased 16%.
  • Net income of $51.4 million, up 37%. Excluding the costs in the second quarter of 2014 associated with the Aktiv Kapital acquisition, net income would have increased 17%.
  • $1.06 diluted earnings per share, compared with $0.74 in the year-ago quarter, up 43%. Excluding the costs in the second quarter of 2014 associated with the Aktiv Kapital acquisition, diluted earnings per share would have increased 22%.
  • 23.5% return on average equity, annualized.
  • $208.4 million in investments.

"PRA Group continues to produce solid operating results and the quarter continued many of the trends we have seen over the last twelve months including better than expected collections in our U.S. call centers," said Steve Fredrickson, chairman, president and chief executive officer, PRA Group. "Investment in the quarter again exceeded $200 million and we signed a binding agreement to purchase a portfolio of receivables with an investment of approximately $200 million in Europe which is scheduled to close in the third quarter. Additionally, in early August we purchased a majority position in RCB Investimentos, Brazil's leading NPL master servicing platform. RCB is currently servicing the small investment we made in Brazil in the first quarter. We are very excited to continue diversifying geographically and work with Alexandre Nobre and Renato Toledo to further develop RCB."

REVENUES

  • Total revenues of $237.2 million in the second quarter included finance receivables income net of principal amortization and net allowance charges. Net finance receivables income was $220.1 million, up 21% from $182.5 million in the year-ago quarter.
  • Cash collections increased 22% in the second quarter from the year-ago quarter to $389.6 million, and included collections from these finance receivables sources:

Cash Collection Source ($ in thousands) Q22015 Q12015 Q42014 Q32014 Q22014
Americas-Core $ 218,838 $ 219,371 $ 185,921 $ 189,027 $ 190,229
Americas-Insolvency 92,974 95,533 103,104 110,544 124,101
Europe-Core 76,602 83,876 84,398 73,172 4,944
Europe-Insolvency 1,210 967 5 -- --
Total Cash Collections $ 389,624 $ 399,747 $ 373,428 $ 372,743 $ 319,274

  • Principal amortization of finance receivables in the second quarter was $169.6 million or 43.5% of cash collections, compared with 42.8% in the year-ago quarter. Principal amortization included a net allowance charge of $4.9 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance reversal of $2.3 million recorded in the year-ago quarter.
  • Revenues in the second quarter also included income from PRA Group's fee-based businesses of $13.9 million, compared with $14.5 million in the year-ago quarter, and other income of $3.3 million compared with $0.3 million in the year-ago quarter.

EXPENSES AND OPERATING INCOME

  • Operating expenses were $148.3 million in the second quarter, compared with $124.9 million a year ago, an increase of 19%.
  • Operating income in the second quarter was $88.9 million, compared with $72.4 million in the year-ago quarter. Excluding the costs in the second quarter of 2014 associated with the Aktiv Kapital acquisition, operating income in the year-ago quarter would have been $76.5 million. The operating margin was 37.5% in the second quarter.
  • The provision for income taxes was $27.6 million in the second quarter, up 17% from the year-ago quarter. PRA Group's provision for income taxes was 34.9% of income before taxes in the second quarter, compared with 38.7% in the year-ago quarter.

PORTFOLIO ACQUISITIONS

  • PRA Group invested $208.4 million in new finance receivables in the second quarter. During the quarter, the Company signed an agreement to purchase a portfolio of receivables in Europe with an investment of approximately $200 million that is expected to be funded during the third quarter.

Portfolio Purchase Source
($ in thousands)

Q22015

Q12015

Q42014

Q32014

Q22014
Americas-Core $ 98,317 $ 138,498 $ 119,714 $ 118,018 $ 91,904
Americas-Insolvency 19,111 16,437 24,949 38,535 16,187
Europe-Core (1) 88,499 21,579 123,194 734,803 1,121
Europe-Insolvency 2,450 8,510 11,625 -- --
Total Portfolio Purchasing $ 208,377 $ 185,024 $ 279,482 $ 891,356 $ 109,212
(1) Excludes the $27.9 million and $34.7 million investment in the securitized fund in Poland during the three months ended March 31, 2015 and December 31, 2014, respectively.

BALANCE SHEET

  • Borrowings totaled $1,503.3 million at June 30, 2015, consisting of $462.5 million drawn on the domestic revolver, $430.5 million drawn on the multi-currency revolver, $262.9 million in convertible senior notes, $177.5 million in other long-term debt and $169.9 million in seller financing related to the acquisition of Aktiv Kapital. Total borrowings were $448.8 million at June 30, 2014.
  • Cash and cash equivalents were $56.8 million at June 30, 2015, compared with $270.5 million at June 30, 2014.
  • Net deferred tax liabilities were $252.6 million at June 30, 2015, compared with $226.0 million at June 30, 2014.
  • Stockholders' equity was $897.9 million at June 30, 2015, compared with $952.3 million at June 30, 2014.

Conference Call Information

PRA Group will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts. To listen to a webcast of the call, visit http://ir.pragroup.com/events.cfm. To listen by phone, call 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 95571605. A question-and-answer session on the call will be open only to analysts or investors. To listen to a replay of the call until August 16, 2015, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 95571605.

About PRA Group

As a global leader in acquiring non-performing loans, PRA Group returns capital to global banks and other creditors to help expand financial services for consumers in North America and Europe. PRA Group companies collaborate with customers to help them resolve their debt and provide a broad range of additional revenue and recovery services to business and government clients.

PRA has been recognized as one of Fortune's 100 Fastest-Growing Companies for the past three years and one of Forbes' Best Small Companies in America for eight consecutive years since 2007. For more information, please visit www.pragroup.com.

About Forward Looking Statements

Statements made herein which are not historical in nature, including PRA Group's or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group's future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that our expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group's filings with the Securities and Exchange Commission including but not limited to PRA Group's annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, filed with the Securities and Exchange Commission and available through PRA Group's website, which contain a detailed discussion of PRA Group's business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

PRA Group, Inc.
Unaudited Consolidated Income Statements
(in thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2015 2014 2015 2014
Revenues:
Income recognized on finance receivables, net $ 220,064 $ 182,518 $ 448,467 $ 360,488
Fee income 13,878 14,510 26,931 30,118
Other revenue 3,255 315 7,005 659
Total revenues 237,197 197,343 482,403 391,265
Operating expenses:
Compensation and employee services 68,320 52,461 133,591 103,846
Legal collection fees 14,114 11,371 27,805 22,204
Legal collection costs 19,556 25,429 40,410 51,962
Agent fees 7,784 1,464 16,045 2,914
Outside fees and services 12,466 12,113 25,263 22,904
Communication 8,073 7,765 18,491 16,728
Rent and occupancy 3,479 2,411 7,039 4,749
Depreciation and amortization 4,916 4,211 9,526 8,158
Other operating expenses 9,610 7,681 19,188 13,781
Total operating expenses 148,318 124,906 297,358 247,246
Income from operations 88,879 72,437 185,045 144,019
Other income and (expense):
Interest expense (13,452) (5,067) (28,228) (9,926)
Net foreign currency transaction gain/(loss) 3,584 (6,197) 10,373 (6,189)
Income before income taxes 79,011 61,173 167,190 127,904
Provision for income taxes 27,586 23,666 57,630 49,557
Net income $ 51,425 $ 37,507 $ 109,560 $ 78,347
Net income per common share:
Basic $ 1.06 $ 0.75 $ 2.26 $ 1.57
Diluted $ 1.06 $ 0.74 $ 2.25 $ 1.55
Weighted average number of shares outstanding:
Basic 48,325 50,065 48,525 49,997
Diluted 48,529 50,437 48,790 50,400
PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30, December 31,
ASSETS 2015 2014
Cash and cash equivalents $ 56,811 $ 39,661
Investments 88,295 89,703
Finance receivables, net 2,012,552 2,001,790
Other receivables, net 18,443 12,959
Income taxes receivable 1,580 --
Net deferred tax asset 125 6,126
Property and equipment, net 46,215 48,258
Goodwill 503,001 527,445
Intangible assets, net 9,450 10,933
Other assets 47,284 41,876
Total assets $ 2,783,756 $ 2,778,751
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 3,933 $ 4,446
Accrued expenses 77,007 89,361
Income taxes payable 9,758 11,020
Other liabilities 5,933 5,962
Net deferred tax liability 252,638 255,587
Interest bearing deposits 33,248 27,704
Borrowings 1,503,363 1,482,456
Total liabilities 1,885,880 1,876,536
Stockholders' equity:
Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares - 0 -- --
Common stock, par value $0.01, 100,000 authorized shares, 48,333 issued and outstanding shares at June 30, 2015, and 49,577 issued and outstanding shares at December 31, 2014 483 496
Additional paid-in capital 35,360 111,659
Retained earnings 1,015,570 906,010
Accumulated other comprehensive (loss) (153,537) (115,950)
Total stockholders' equity 897,876 902,215
Total liabilities and equity $ 2,783,756 $ 2,778,751
PRA Group, Inc.
FINANCIAL HIGHLIGHTS
As of and for the As of and for the
Three Months Ended June 30, Six Months Ended June 30,
2015 2014 Change 2015 2014 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 220,064 $ 182,518 21% $ 448,467 $ 360,488 24%
Fee income 13,878 14,510 -4% 26,931 30,118 -11%
Other revenue 3,255 315 933% 7,005 659 963%
Total revenues 237,197 197,343 20% 482,403 391,265 23%
Operating expenses 148,318 124,906 19% 297,358 247,246 20%
Income from operations 88,879 72,437 23% 185,045 144,019 28%
Net interest expense 13,452 5,067 165% 28,228 9,926 184%
Net income 51,425 37,507 37% 109,560 78,347 40%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 56,811 $ 270,526 -79% $ 56,811 $ 270,526 -79%
Finance receivables, net 2,012,552 1,219,595 65% 2,012,552 1,219,595 65%
Goodwill and intangible assets, net 512,451 118,927 331% 512,451 118,927 331%
Total assets 2,783,756 1,695,362 64% 2,783,756 1,695,362 64%
Borrowings 1,503,363 448,785 235% 1,503,363 448,785 235%
Total liabilities 1,885,880 743,106 154% 1,885,880 743,106 154%
Total equity 897,876 952,256 -6% 897,876 952,256 -6%
FINANCE RECEIVABLE INCOME (dollars in thousands)
Cash collections $ 389,624 $ 319,274 22% $ 789,371 $ 632,641 25%
Cash collections on fully amortized pools 15,162 16,943 -11% 32,167 33,459 -4%
Principal amortization without allowance (reversals)/charges 164,675 139,055 18% 334,389 276,405 21%
Allowance (reversal)/charge 4,885 (2,299) -312% 6,515 (4,252) -253%
Principal amortization with allowance (reversals)/charges 169,560 136,756 24% 340,904 272,153 25%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 43.5% 42.8% 2% 43.2% 43.0% 0%
Excluding fully amortized pools 45.3% 45.2% 0% 45.0% 45.4% -1%
Allowance (reversal)/charge to period-end net finance receivables 0.2% (0.2%) -229% 0.3% (0.3%) -193%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - Americas core $ 98,317 $ 91,904 7% $ 236,815 $ 170,989 38%
Purchase price - Americas insolvency 19,111 16,187 18% 35,548 88,190 -60%
Purchase price - Europe core 88,499 1,121 7795% 110,078 2,747 3907%
Purchase price - Europe insolvency 2,450 -- 100% 10,960 -- 100%
Purchase price - total 208,377 109,212 91% 393,401 261,926 50%
Number of portfolios - total 136 85 60% 275 189 46%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $ 2,384,698 $ 1,948,414 22% $ 2,384,698 $ 1,948,414 22%
Estimated remaining collections - Americas insolvency 529,892 733,176 -28% 529,892 733,176 -28%
Estimated remaining collections - Europe core 1,685,694 20,349 8184% 1,685,694 20,349 8184%
Estimated remaining collections - Europe insolvency 26,807 -- 100% 26,807 -- 100%
Estimated remaining collections - total 4,627,091 2,701,939 71% 4,627,091 2,701,939 71%
Adjusted estimated remaining collections (7) 4,747,552 2,701,939 76% 4,747,552 2,701,939 76%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 1.06 $ 0.74 43% $ 2.25 $ 1.55 45%
Weighted average number of shares outstanding - diluted 48,529 50,437 -4% 48,790 50,400 -3%
Shares repurchased -- -- 0% 1,478 -- 100%
Average price paid per share repurchased (including acquisitions costs) $ -- $ -- 0% $ 52.65 $ -- 100%
Closing market price $ 62.31 $ 59.53 5% $ 62.31 $ 59.53 5%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 23.5% 16.0% 47% 26.6% 17.1% 55%
Return on revenue (2) 21.7% 19.0% 14% 22.7% 20.0% 13%
Return on average assets (3) 7.4% 9.0% -18% 8.0% 9.5% -16%
Operating margin (4) 37.5% 36.7% 2% 38.4% 36.8% 4%
Operating expense to cash receipts (5) 36.8% 37.4% -2% 36.4% 37.3% -2%
Debt to equity (6) 167.4% 47.1% 255% 167.4% 47.1% 255%
Number of full-time equivalent collectors 2,317 2,258 3% 2,317 2,258 3%
Number of full-time equivalent employees 3,820 3,567 7% 3,820 3,567 7%
Cash receipts (5) $ 403,502 $ 333,784 21% $ 816,302 $ 662,759 23%
Line of credit - unused portion at period end 547,017 650,000 -16% 547,017 650,000 -16%
(1) Calculated as annualized net income divided by average equity for the period
(2) Calculated as net income divided by total revenues
(3) Calculated as annualized net income divided by average assets for the period
(4) Calculated as income from operations divided by total revenues
(5) "Cash receipts" is defined as cash collections plus fee income
(6) For purposes of this ratio, "debt" equals borrowings
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments.
PRA Group, Inc.
FINANCIAL HIGHLIGHTS
For the Quarter Ended
June 30 March 31 December 31 September 30 June 30
2015 2015 2014 2014 2014
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 220,064 $ 228,403 $ 222,660 $ 224,326 $ 182,518
Fee income 13,878 13,053 22,800 12,757 14,510
Other revenue 3,255 3,750 5,271 1,890 315
Total revenues 237,197 245,206 250,731 238,973 197,343
Operating expenses 148,318 149,040 140,871 150,784 124,906
Income from operations 88,879 96,166 109,860 88,189 72,437
Net interest expense 13,452 14,776 13,493 11,807 5,067
Net income 51,425 58,135 46,991 51,167 37,507
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 56,811 $ 40,542 $ 39,661 $ 70,300 $ 270,526
Finance receivables, net 2,012,552 1,954,772 2,001,790 1,913,710 1,219,595
Goodwill and intangible assets, net 512,451 506,695 538,378 606,716 118,927
Total assets 2,783,756 2,700,613 2,778,751 2,757,429 1,695,362
Borrowings 1,503,363 1,479,262 1,482,456 1,425,409 448,785
Total liabilities 1,885,880 1,883,295 1,876,536 1,797,569 743,106
Total equity 897,876 817,318 902,215 959,860 952,256
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 389,624 $ 399,747 $ 373,428 $ 372,743 $ 319,274
Cash collections on fully amortized pools 15,162 17,005 17,785 17,105 16,943
Principal amortization without allowance (reversals)/charges 164,675 169,714 149,753 150,115 139,055
Allowance (reversal)/charge 4,885 1,630 1,015 (1,698) (2,299)
Principal amortization with allowance (reversals)/charges 169,560 171,344 150,768 148,417 136,756
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 43.5% 42.9% 40.4% 39.8% 42.8%
Excluding fully amortized pools 45.3% 44.8% 42.4% 41.7% 45.2%
Allowance (reversal)/charge to period-end net finance receivables 0.2% 0.1% 0.1% -0.1% -0.2%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - North America core $ 98,317 $ 138,498 $ 119,714 $ 118,018 $ 91,904
Purchase price - North America insolvency 19,111 16,437 24,949 38,535 16,187
Purchase price - Europe core 88,499 21,579 123,194 734,803 1,121
Purchase price - Europe insolvency 2,450 8,510 11,625 -- --
Purchase price - total 208,377 185,024 279,482 891,356 109,212
Number of portfolios - total 136 139 142 125 85
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $ 2,384,698 $ 2,370,086 $ 2,229,403 $ 2,089,253 $ 1,948,414
Estimated remaining collections - Americas insolvency 529,892 577,319 642,552 697,662 733,176
Estimated remaining collections - Europe core 1,685,694 1,619,454 1,478,738 1,582,135 20,349
Estimated remaining collections - Europe insolvency 26,807 24,838 15,021 -- --
Estimated remaining collections - total 4,627,091 4,591,697 4,365,714 4,369,050 2,701,939
Adjusted estimated remaining collections (7) 4,747,552 4,716,230 4,437,264 -- --
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 1.06 $ 1.19 $ 0.93 $ 1.01 $ 0.74
Weighted average number of shares outstanding - diluted 48,529 49,052 50,444 50,439 50,437
Shares repurchased -- 1,478 574 -- --
Average price paid per share repurchased (including acquisitions costs) $ -- $ 52.65 $ 57.79 $ -- $ --
Closing market price $ 62.31 $ 54.32 $ 57.93 $ 52.23 $ 59.53
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 23.5% 30.1% 20.2% 21.1% 16.0%
Return on revenue (2) 21.7% 23.7% 18.7% 21.4% 19.0%
Return on average assets (3) 7.4% 8.7% 6.9% 7.3% 9.0%
Operating margin (4) 37.5% 39.2% 43.8% 36.9% 36.7%
Operating expense to cash receipts (5) 36.8% 36.1% 35.6% 39.1% 37.4%
Debt to equity (6) 167.4% 181.0% 164.3% 148.5% 47.1%
Number of collectors 2,317 2,395 2,457 2,498 2,258
Number of full-time equivalent employees 3,820 3,847 3,880 3,913 3,567
Cash receipts (5) $ 403,502 $ 412,800 $ 396,228 $ 385,500 $ 333,784
Line of credit - unused portion at period end 547,017 323,812 352,926 513,800 650,000
(1) Calculated as annualized net income divided by average equity for the period
(2) Calculated as net income divided by total revenues
(3) Calculated as annualized net income divided by average assets for the period
(4) Calculated as income from operations divided by total revenues
(5) "Cash receipts" is defined as cash collections plus fee income
(6) For purposes of this ratio, "debt" equals borrowings
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments.

Use of Non-GAAP Financial Measures

Management believes that the presentation of certain financial information in this press release, excluding the costs associated with the Aktiv Kapital acquisition and foreign exchange losses that were recorded during the three and six months ended June 30, 2014, which is non-GAAP financial information, is useful to investors and improves the comparability of the Company's ongoing operational results between periods. The non-GAAP information should be considered in addition to, not as a substitute for, financial information prepared in accordance with GAAP.

PRA Group, Inc.
Reconciliation of Net Income, Earnings Per Share and Financial Ratios to GAAP Net Income, Earnings Per Share and Financial Ratios
(in thousands, except per share amounts)
GAAP Three Less: Adjustments Adjusted Three GAAP Six Less: Adjustments Adjusted Six
Months Ended Related to Aktiv Months Ended Months Ended Related to Aktiv Months Ended
June 30, 2014 Kapital Acquisition June 30, 2014 June 30, 2014 Kapital Acquisition June 30, 2014
Revenues:
Income recognized on finance receivables, net $ 182,518 $ 182,518 $ 360,488 $ 360,488
Fee income 14,510 14,510 30,118 30,118
Other revenue 315 315 659 659
Total revenues 197,343 197,343 391,265 391,265
Operating expenses:
Compensation and employee services 52,461 52,461 103,846 103,846
Legal collection fees 11,371 11,371 22,204 22,204
Legal collection costs 25,429 25,429 51,962 51,962
Agent fees 1,464 1,464 2,914 2,914
Outside fees and services 12,113 (4,052) 8,061 22,904 (8,413) 14,491
Communication 7,765 7,765 16,728 16,728
Rent and occupancy 2,411 2,411 4,749 4,749
Depreciation and amortization 4,211 4,211 8,158 8,158
Other operating expenses 7,681 7,681 13,781 13,781
Total operating expenses 124,906 (4,052) 120,854 247,246 (8,413) 238,833
Income from operations 72,437 4,052 76,489 144,019 8,413 152,432
Other income and (expense):
Interest expense (5,067) (5,067) (9,926) (9,926)
Foreign exchange (loss)/gain (6,197) 6,224 27 (6,189) 6,224 35
Income before income taxes 61,173 10,276 71,449 127,904 14,637 142,541
Provision for income taxes 23,666 3,976 27,642 49,557 5,671 55,228
Net income $ 37,507 $ 6,300 $ 43,807 $ 78,347 $ 8,966 $ 87,313
Net income per common share:
Basic $ 0.75 $ 0.13 $ 0.88 $ 1.57 $ 0.18 $ 1.75
Diluted $ 0.74 $ 0.12 $ 0.87 $ 1.55 $ 0.18 $ 1.73
Weighted average number of shares outstanding:
Basic 50,065 50,065 50,065 49,997 49,997 49,997
Diluted 50,437 50,437 50,437 50,400 50,400 50,400
Operating margin: 36.7% 38.8% 36.8% 39.0%
Net income margin: 19.0% 22.2% 20.0% 22.3%
Return on average equity: 16.0% 18.7% 17.1% 19.0%

CONTACT: Investor Contact: Darby Schoenfeld Director of Investor Relations (757) 431-7913 DCSchoenfeld@PRAGroup.com News Media Contact: Nancy Porter Vice President, Corporate Communications (757) 431-7950 NAPorter@PRAGroup.com

Source:PRA Group