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PRA Group Reports Third Quarter 2015 Results

NORFOLK, Va., Nov. 5, 2015 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring nonperforming loans, today reported its financial results for the third quarter of 2015. The company reported diluted earnings per share of $0.36 and non-GAAP diluted earnings per share of $0.99 for the third quarter of 2015. Non-GAAP financial results are presented in constant currency with the third quarter of 2014 and exclude items unrelated to normal operations. A reconciliation of all non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.

The Company also announced that its Board of Directors authorized a new $125 million share repurchase program. During the third quarter of 2015, the Company repurchased $7.7 million, or approximately 133,000 shares, of common stock.

Third Quarter Highlights

  • Cash collections of $380.8 million, up 2% from the third quarter of 2014. Non-GAAP cash collections were $392.1 million, an increase of 5% over the prior year period.
  • Revenues of $229.4 million and non-GAAP revenues of $235.3 million.
  • Income from operations of $54.1 million and non-GAAP income from operations of $87.0 million.
  • Net income of $17.4 million and non-GAAP net income of $48.0 million.
  • Return on average equity, annualized, of 7.8% and non-GAAP return on average equity, annualized of 21.4%.
  • $344.6 million in investments.

"Many of the same trends that have been prevalent throughout the last year continued in the third quarter. Our operational performance remained solid, cash collections in the U.S. call centers continued to grow dramatically, up over 27% year over year, and investment was formidable at $345 million in the quarter," said Steve Fredrickson, chairman and chief executive officer, PRA Group. "Additionally, the original underwritten portfolio associated with the acquisition of Aktiv Kapital continues to perform better than expected and we continue to invest a substantial amount of capital in European markets. The progress we have made in the last year and the performance of our European team has exceeded our expectations."

REVENUES

  • Total revenues of $229.4 million in the third quarter included finance receivables income net of principal amortization and net allowance charges. Non-GAAP total revenues were $235.3 million versus $239.0 million in year-ago quarter.
  • Cash collections increased 2% in the third quarter from the year-ago quarter to $380.8 million. Non-GAAP cash collections were $392.1 million, an increase of 5% over the year-ago quarter. Both GAAP and non-GAAP cash collections are reported below and included collections from these finance receivables sources:

Cash Collection Source ($ in thousands) Q3-2015 Q2-2015 Q1-2015 Q4-2014 Q3-2014
Americas-Core $ 210,725 $ 218,838 $ 219,371 $ 185,921 $ 189,027
Americas-Insolvency 81,865 92,974 95,533 103,104 110,544
Europe-Core 85,635 76,602 83,876 84,398 73,172
Europe-Insolvency 2,528 1,210 967 5 --
Total Cash Collections $ 380,753 $ 389,624 $ 399,747 $ 373,428 $ 372,743
Cash Collection Source -Constant Currency
Adjusted ($ in thousands) Q3-2015* Q3-2014
Americas-Core $ 211,527 $ 189,027
Americas-Insolvency 81,865 110,544
Europe-Core 96,180 73,172
Europe-Insolvency 2,528 --
Total Cash Collections $ 392,100 $ 372,743
*Amounts for Q3-2015 have been adjusted to reflect what the cash collection totals would have been had the foreign currency exchange rates from Q3-2014 remained constant through Q3-2015.

  • Principal amortization of finance receivables in the third quarter was $172.6 million or 45.3% of cash collections, compared with 39.8% in the year-ago quarter. Principal amortization included a net allowance charge of $11.3 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance reversal of $1.7 million recorded in the year-ago quarter. Non-GAAP principal amortization was $178.0 million in the third quarter of 2015.
  • Revenues in the third quarter also included income from PRA Group's fee-based businesses of $17.8 million, compared with $12.8 million in the year-ago quarter, and other income of $3.4 million compared with $1.9 million in the year-ago quarter.

EXPENSES AND OPERATING INCOME

  • Operating expenses were $175.3 million in the third quarter, compared with $150.8 million a year ago. Non-GAAP operating expenses were $148.3 million versus $144.0 million a year ago, an increase of 3%.
  • Operating income in the third quarter was $54.1 million, compared with $88.2 million in the year-ago quarter. Non-GAAP operating income was $87.0 million in the third quarter versus $95.0 million a year ago. The operating margin was 23.6% in the third quarter and the non-GAAP operating margin was 37.0%.
  • The provision for income taxes was $16.6 million in the third quarter compared to $28.5 million in the year-ago quarter. PRA Group's provision for income taxes was 48.6% of income before taxes in the third quarter, compared with 35.8% in the year-ago quarter. The third quarter of 2015 included some unusual non-cash, one-time tax items of $2.5 million. Non-GAAP provision for income taxes in the third quarter was $26.0 million versus $33.4 million a year ago.

PORTFOLIO ACQUISITIONS

  • PRA Group invested $344.6 million in new finance receivables in the third quarter.

Portfolio Purchase Source
($ in thousands)
Q32015 Q22015 Q12015 Q42014 Q32014
Americas-Core $ 90,912 $ 98,317 $ 138,498 $ 119,714 $ 118,018
Americas-Insolvency 9,300 19,111 16,437 24,949 38,535
Europe-Core (1) 240,385 88,499 21,579 123,194 734,803
Europe-Insolvency 3,959 2,450 8,510 11,625 --
Total Portfolio Purchasing $ 344,556 $ 208,377 $ 185,024 $ 279,482 $ 891,356
(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 $1,654.5 million as of September 30, 2015, consisting of $478.3 million drawn on the domestic revolver, $568.5 million drawn on the multi-currency revolver, $264.0 million in convertible senior notes, $173.8 million in other long-term debt and $169.9 million in seller financing. Total borrowings were $1,425.4 million as of September 30, 2014.
  • Cash and cash equivalents were $69.1 million as of September 30, 2015, compared with $70.3 million as of September 30, 2014.
  • Net deferred tax liabilities were $267.6 million as of September 30, 2015, compared with $237.2 million as of September 30, 2014.
  • Stockholders' equity was $863.5 million as of September 30, 2015, compared with $959.9 million as of September 30, 2014.

Conference Call Information

PRA Group will hold a conference call today at 6:00 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 71196657. 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 November 11, 2015, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 71196657.

About PRA Group

As a global leader in acquiring nonperforming loans, PRA Group returns capital to global banks and other creditors to help expand financial services for consumers in the Americas 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 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
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
Revenues:
Income recognized on finance receivables, net $ 208,184 $ 224,326 $ 656,651 $ 584,814
Fee income 17,803 12,757 44,734 42,875
Other revenue 3,443 1,890 10,448 2,549
Total revenues 229,430 238,973 711,833 630,238
Operating expenses:
Compensation and employee services 66,084 65,237 199,675 169,083
Legal collection fees 13,715 13,778 41,520 35,982
Legal collection costs 18,879 20,367 59,289 72,329
Agent fees 7,961 5,988 24,006 8,902
Outside fees and services 12,583 17,210 37,846 40,114
Communication 8,021 8,642 26,512 25,370
Rent and occupancy 3,684 3,283 10,723 8,032
Depreciation and amortization 5,413 4,949 14,939 13,107
Other operating expenses 38,963 11,330 58,151 25,111
Total operating expenses 175,303 150,784 472,661 398,030
Income from operations 54,127 88,189 239,172 232,208
Other income and (expense):
Interest expense (16,787) (11,807) (45,015) (21,733)
Net foreign currency transaction gain/(loss) (3,160) 3,258 7,213 (2,931)
Income before income taxes 34,180 79,640 201,370 207,544
Provision for income taxes 16,597 28,473 74,227 78,030
Net income $ 17,583 $ 51,167 $ 127,143 $ 129,514
Less net income attributable to noncontrolling interest 187 -- 187 --
Net income attributable to PRA Group, Inc. $ 17,396 $ 51,167 $ 126,956 $ 129,514
Net income per common share:
Basic $ 0.36 $ 1.02 $ 2.62 $ 2.59
Diluted $ 0.36 $ 1.01 $ 2.61 $ 2.57
Weighted average number of shares outstanding:
Basic 48,265 50,075 48,438 50,023
Diluted 48,498 50,439 48,693 50,413
PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
ASSETS September 30,
2015
December 31,
2014
Cash and cash equivalents $ 69,111 $ 39,661
Investments 75,985 89,703
Finance receivables, net 2,167,178 2,001,790
Other receivables, net 24,648 12,959
Income taxes receivable 12,840 --
Net deferred tax asset 831 6,126
Property and equipment, net 46,105 48,258
Goodwill 502,383 527,445
Intangible assets, net 24,458 10,933
Other assets 61,011 41,876
Total assets $ 2,984,550 $ 2,778,751
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 3,693 $ 4,446
Accrued expenses 97,123 89,361
Income taxes payable 9,534 11,020
Other liabilities 4,460 5,962
Net deferred tax liability 267,587 255,587
Interest bearing deposits 46,277 27,704
Borrowings 1,654,457 1,482,456
Total liabilities 2,083,131 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, 48,204 issued and outstanding shares at September 30, 2015, and 49,577 issued and outstanding shares at December 31, 2014 482 496
Additional paid-in capital 31,344 111,659
Retained earnings 1,032,966 906,010
Accumulated other comprehensive (loss) (201,275) (115,950)
Total stockholders' equity - PRA Group, Inc. 863,517 902,215
Noncontrolling interest 37,902 --
Total equity 901,419 902,215
Total liabilities and total equity $ 2,984,550 $ 2,778,751
PRA Group, Inc.
FINANCIAL HIGHLIGHTS
As of and for the
Three Months Ended September 30,
As of and for the
Nine Months Ended September 30,
2015 2014 Change 2015 2014 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 208,184 $ 224,326 -7% $ 656,651 $ 584,814 12%
Fee income 17,803 12,757 40% 44,734 42,875 4%
Other revenue 3,443 1,890 82% 10,448 2,549 310%
Total revenues 229,430 238,973 -4% 711,833 630,238 13%
Operating expenses 175,303 150,784 16% 472,661 398,030 19%
Income from operations 54,127 88,189 -39% 239,172 232,208 3%
Net interest expense 16,787 11,807 42% 45,015 21,733 107%
Net income 17,583 51,167 -66% 127,143 129,514 -2%
Net income attributable to PRA Group, Inc. 17,396 51,167 -66% 126,956 129,514 -2%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 69,111 $ 70,300 -2% $ 69,111 $ 70,300 -2%
Finance receivables, net 2,167,178 1,913,710 13% 2,167,178 1,913,710 13%
Goodwill and intangible assets, net 502,383 606,716 -17% 502,383 606,716 -17%
Total assets 2,984,550 2,757,429 8% 2,984,550 2,757,429 8%
Borrowings 1,654,457 1,425,409 16% 1,654,457 1,425,409 16%
Total liabilities 2,083,131 1,797,569 16% 2,083,131 1,797,569 16%
Total equity - PRA Group, Inc. 863,517 959,860 -10% 863,517 959,860 -10%
FINANCE RECEIVABLE INCOME (dollars in thousands)
Cash collections $ 380,753 $ 372,743 2% $ 1,170,124 $ 1,005,384 16%
Cash collections on fully amortized pools 11,453 17,105 -33% 43,620 50,564 -14%
Principal amortization without allowance (reversals)/charges 161,234 150,115 7% 495,623 426,520 16%
Allowance (reversal)/charge 11,335 (1,698) -768% 17,850 (5,950) -400%
Principal amortization with allowance (reversals)/charges 172,569 148,417 16% 513,473 420,570 22%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 45.3% 39.8% 14% 43.9% 41.8% 5%
Excluding fully amortized pools 46.7% 41.7% 12% 45.6% 44.0% 3%
Allowance (reversal)/charge to period-end net finance receivables 0.5% (0.1%) -689% 0.8% (0.3%) -365%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - Americas core $ 90,912 $ 118,018 -23% $ 327,727 $ 289,007 13%
Purchase price - Americas insolvency 9,300 38,535 -76% 44,848 126,725 -65%
Purchase price - Europe core 240,385 734,803 -67% 350,463 737,550 -52%
Purchase price - Europe insolvency 3,959 -- 100% 14,919 -- 100%
Purchase price - total 344,556 891,356 -61% 737,957 1,153,282 -36%
Number of portfolios - total 128 125 2% 403 314 28%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $ 2,421,506 $ 2,089,253 16% $ 2,421,506 $ 2,089,253 16%
Estimated remaining collections - Americas insolvency 474,097 697,662 -32% 474,097 697,662 -32%
Estimated remaining collections - Europe core 1,903,226 1,582,135 20% 1,903,226 1,582,135 20%
Estimated remaining collections - Europe insolvency 30,081 -- 100% 30,081 -- 100%
Estimated remaining collections - total 4,828,910 4,369,050 11% 4,828,910 4,369,050 11%
Adjusted estimated remaining collections (7) 4,945,609 4,369,050 13% 4,945,609 4,369,050 13%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 0.36 $ 1.01 -64% $ 2.61 $ 2.57 2%
Weighted average number of shares outstanding - diluted 48,498 50,439 -4% 48,693 50,413 -3%
Shares repurchased 133 -- 0% 1,611 -- 100%
Average price paid per share repurchased (including acquisitions costs) $ 58.08 $ -- 0% $ 53.10 $ -- 100%
Closing market price $ 52.92 $ 52.23 1% $ 52.92 $ 52.23 1%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 7.8% 21.1% -63% 19.9% 17.1% 16%
Return on revenue (2) 7.7% 21.4% -64% 17.9% 20.6% -13%
Return on average assets (3) 2.3% 7.3% -68% 6.0% 9.5% -37%
Operating margin (4) 23.6% 36.9% -36% 33.6% 36.8% -9%
Operating expense to cash receipts (5) 44.0% 39.1% 12% 38.9% 38.0% 2%
Debt to stockholders' equity (6) 191.6% 148.5% 29% 191.6% 148.5% 29%
Number of full-time equivalent collectors 2,159 2,498 -14% 2,159 2,498 -14%
Number of full-time equivalent employees 3,715 3,913 -5% 3,715 3,913 -5%
Cash receipts (5) $ 398,556 $ 385,500 3% $ 1,214,858 $ 1,048,259 16%
Line of credit - unused portion at period end 393,246 513,800 -23% 393,246 513,800 -23%
(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
September 30
2015
June 30
2015
March 31
2015
December 31
2014
September 30
2014
EARNINGS (in thousands)
Income recognized on finance receivables, net $ 208,184 $ 220,064 $ 228,403 $ 222,660 $ 224,326
Fee income 17,803 13,878 13,053 22,800 12,757
Other revenue 3,443 3,255 3,750 5,271 1,890
Total revenues 229,430 237,197 245,206 250,731 238,973
Operating expenses 175,303 148,318 149,040 140,871 150,784
Income from operations 54,127 88,879 96,166 109,860 88,189
Net interest expense 16,787 13,452 14,776 13,493 11,807
Net income 17,583 51,425 58,135 46,991 51,167
Net income attributable to PRA Group, Inc. 17,396 51,425 58,135 46,991 51,167
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 69,111 $ 56,811 $ 40,542 $ 39,661 $ 70,300
Finance receivables, net 2,167,178 2,012,552 1,954,772 2,001,790 1,913,710
Goodwill and intangible assets, net 502,383 503,001 506,695 538,378 606,716
Total assets 2,984,550 2,783,756 2,700,613 2,778,751 2,757,429
Borrowings 1,654,457 1,503,363 1,479,262 1,482,456 1,425,409
Total liabilities 2,083,131 1,885,880 1,883,295 1,876,536 1,797,569
Total equity - PRA Group, Inc. 863,517 897,876 817,318 902,215 959,860
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 380,753 $ 389,624 $ 399,747 $ 373,428 $ 372,743
Cash collections on fully amortized pools 11,453 15,162 17,005 17,785 17,105
Principal amortization without allowance (reversals)/charges 161,234 164,675 169,714 149,753 150,115
Allowance (reversal)/charge 11,335 4,885 1,630 1,015 (1,698)
Principal amortization with allowance (reversals)/charges 172,569 169,560 171,344 150,768 148,417
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 45.3% 43.5% 42.9% 40.4% 39.8%
Excluding fully amortized pools 46.7% 45.3% 44.8% 42.4% 41.7%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.2% 0.1% 0.1% -0.1%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - North America core $ 90,912 $ 98,317 $ 138,498 $ 119,714 $ 118,018
Purchase price - North America insolvency 9,300 19,111 16,437 24,949 38,535
Purchase price - Europe core 240,385 88,499 21,579 123,194 734,803
Purchase price - Europe insolvency 3,959 2,450 8,510 11,625 --
Purchase price - total 344,556 208,377 185,024 279,482 891,356
Number of portfolios - total 128 136 139 142 125
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $ 2,421,506 $ 2,384,698 $ 2,370,086 $ 2,229,403 $ 2,089,253
Estimated remaining collections - Americas insolvency 474,097 529,892 577,319 642,552 697,662
Estimated remaining collections - Europe core 1,903,226 1,685,694 1,619,454 1,478,738 1,582,135
Estimated remaining collections - Europe insolvency 30,081 26,807 24,838 15,021 --
Estimated remaining collections - total 4,828,910 4,627,091 4,591,697 4,365,714 4,369,050
Adjusted estimated remaining collections (7) 4,945,609 4,747,552 4,716,230 4,437,264 --
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $ 0.36 $ 1.06 $ 1.19 $ 0.93 $ 1.01
Weighted average number of shares outstanding - diluted 48,498 48,529 49,052 50,444 50,439
Shares repurchased 133 -- 1,478 574 --
Average price paid per share repurchased (including acquisitions costs) $ 58.08 $ -- $ 52.65 $ 57.79 $ --
Closing market price $ 52.92 $ 62.31 $ 54.32 $ 57.93 $ 52.23
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 7.8% 23.5% 30.1% 20.2% 21.1%
Return on revenue (2) 7.7% 21.7% 23.7% 18.7% 21.4%
Return on average assets (3) 2.3% 7.4% 8.7% 6.9% 7.3%
Operating margin (4) 23.6% 37.5% 39.2% 43.8% 36.9%
Operating expense to cash receipts (5) 44.0% 36.8% 36.1% 35.6% 39.1%
Debt to stockholders' equity (6) 191.6% 167.4% 181.0% 164.3% 148.5%
Number of collectors 2,159 2,317 2,395 2,457 2,498
Number of full-time equivalent employees 3,715 3,820 3,847 3,880 3,913
Cash receipts (5) $ 398,556 $ 403,502 $ 412,800 $ 396,228 $ 385,500
Line of credit - unused portion at period end 393,246 547,017 323,812 352,926 513,800
(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

PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company believes certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations from non-GAAP to the most directly comparable GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for reported GAAP results.

Three Months Ended September 30, 2015
Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported $ 380,753 $ 172,569 $ 208,184 $ 17,803 $ 3,443 $ 229,430 $ 175,303 $ 54,127 $ 34,180 $ 17,396 $ 0.36
Adjustments:
CFPB expenses including penalty and redress -- -- -- -- -- -- (28,806) 28,806 28,806 20,404 0.42
Acquisition and other expenses -- -- -- -- -- -- (802) 802 802 568 0.01
Non-cash interest expense -- -- -- -- -- -- -- -- 1,074 761 0.02
One-time tax items -- -- -- -- -- -- -- -- -- 2,488 0.05
Legal costs not associated with normal operations -- -- -- -- -- -- (1,262) 1,262 1,262 894 0.02
Constant currency adjustments 11,348 5,381 5,967 201 (301) 5,867 3,895 1,972 7,919 5,517 0.11
Subtotal of adjustments 11,348 5,381 5,967 201 (301) 5,867 (26,975) 32,842 39,863 30,632 0.63
As Adjusted 392,101 177,950 214,151 18,004 3,142 235,297 148,328 86,969 74,043 48,028 0.99
Nine Months Ended September 30, 2015
Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported $ 1,170,124 $ 513,473 $ 656,651 $ 44,734 $ 10,448 $ 711,833 $ 472,661 $ 239,172 $ 201,370 $ 126,956 $ 2.61
Adjustments:
CFPB expenses including penalty and redress -- -- -- -- -- -- (28,806) 28,806 28,806 21,744 0.45
Acquisition and other expenses -- -- -- -- -- -- (3,989) 3,989 3,989 3,011 0.06
Non-cash interest expense -- -- -- -- -- -- -- -- 3,178 2,399 0.05
One-time tax items -- -- -- -- -- -- -- -- -- 2,488 0.05
Legal costs not associated with normal operations -- -- -- -- -- -- (1,669) 1,669 1,669 1,260 0.03
Constant currency adjustments 11,348 5,381 5,967 201 (301) 5,867 3,895 1,972 7,919 5,517 0.11
Subtotal of adjustments 11,348 5,381 5,967 201 (301) 5,867 (30,569) 36,436 45,561 36,419 0.75
As Adjusted 1,181,472 518,854 662,618 44,935 10,147 717,700 442,092 275,608 246,931 163,375 3.36
Three Months Ended September 30, 2014
Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported $ 372,743 $ 148,417 $ 224,326 $ 12,757 $ 1,890 $ 238,973 $ 150,784 $ 88,189 $ 79,640 $ 51,167 $ 1.01
Adjustments:
Acquisition and other expenses -- -- -- -- -- -- (6,453) 6,453 6,453 4,021 0.08
Non-cash interest expense -- -- -- -- -- -- -- -- 1,023 637 0.01
One-time tax items -- -- -- -- -- -- -- -- -- (1,232) (0.02)
Loss on foreign currency exchange contracts -- -- -- -- -- -- -- -- 2,016 1,256 0.02
Legal costs not associated with normal operations -- -- -- -- -- -- (381) 381 381 237 0.00
Subtotal of adjustments -- -- -- -- -- -- (6,834) 6,834 9,873 4,920 0.10
As Adjusted 372,743 148,417 224,326 12,757 1,890 238,973 143,950 95,023 89,513 56,087 1.11
Nine Months Ended September 30, 2014
Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported $ 1,005,386 $ 420,572 $ 584,814 $ 42,875 $ 2,549 $ 630,238 $ 398,030 $ 232,208 $ 207,544 $ 129,514 $ 2.57
Adjustments:
Acquisition and other expenses -- -- -- -- -- -- (14,866) 14,866 14,866 9,141 0.18
Non-cash interest expense -- -- -- -- -- -- -- -- 3,028 1,862 0.04
One-time tax items -- -- -- -- -- -- -- -- -- (1,232) (0.02)
Loss on foreign currency exchange contracts -- -- -- -- -- -- -- -- 8,240 5,066 0.10
Legal costs not associated with normal operations -- -- -- -- -- -- (424) 424 424 261 0.01
Subtotal of adjustments -- -- -- -- -- -- (15,290) 15,290 26,558 15,098 0.30
As Adjusted 1,005,386 420,572 584,814 42,875 2,549 630,238 382,740 247,498 234,102 144,612 2.87

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