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PRA Group Reports First Quarter 2016 Results

NORFOLK, Va., May 09, 2016 (GLOBE NEWSWIRE) -- PRA Group (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2016. The company reported diluted earnings per share of $0.69 versus $1.19 in the first quarter of 2015. Non-GAAP diluted earnings per share of $0.85 for the first quarter of 2016 compared to $1.22 for the year-ago quarter. Non-GAAP financial results are presented in constant currency with the first quarter of 2015 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.

First Quarter Highlights

  • Estimated remaining collections at a new record of $5.3 billion.
  • Cash collections of $384.3 million, currency adjusted cash collections of $389.7 million.
  • Revenues of $224.9 million, currency adjusted revenues of $228.6 million.
  • Income from operations of $70.9 million, non-GAAP income from operations of $74.4 million.
  • Net income of $32.0 million, non-GAAP net income of $39.5 million.
  • Return on average equity, annualized, of 15.4%, non-GAAP return on average equity, annualized, of 18.9%.
  • $336.8 million in investments.

“Broadly speaking, cash results from our global operations were generally in line with our internally forecasted expectations. Globally, our buying in Q1 was quite strong as we invested $337 million in the quarter. This enabled us to grow estimated remaining collections to a record $5.3 billion,” said Steve Fredrickson, chairman and chief executive officer, PRA Group. “Our strategy going forward continues to be taking advantage of our access to low cost capital, low operating costs, scale and underwriting prowess and pressing those advantages in every market in which we operate.”

REVENUES AND CASH COLLECTIONS

  • Total revenues of $224.9 million in the first quarter included finance receivables income net of principal amortization and net allowance charges versus $245.2 million in the year-ago quarter. Currency adjusted total revenues for the quarter were $228.6 million versus $245.2 million in year-ago quarter.
  • Cash collections were $384.3 million versus $399.7 million in the year-ago quarter. Currency adjusted cash collections were $389.7 million versus $399.7 million in the year-ago quarter. Both GAAP and currency adjusted cash collections are reported below and included collections from these finance receivables sources:

Cash Collection Source 2016 2015
($ in thousands) Q1 Q4Q3Q2Q1
Americas-Core $ 219,571 $ 195,834 $ 210,725 $ 218,838 $ 219,371
Americas-Insolvency 68,646 73,843 81,865 92,974 95,533
Europe-Core 94,091 97,149 85,635 76,602 83,876
Europe-Insolvency 2,025 2,545 2,528 1,210 967
Total Cash Collections $ 384,333 $ 369,371 $ 380,753 $ 389,624 $ 399,747
Cash Collection Source -
Constant Currency Adjusted 2016 2015
($ in thousands) Q1 Q1
Americas-Core $ 221,268 $ 219,371
Americas-Insolvency 68,646 95,533
Europe-Core 97,721 83,876
Europe-Insolvency 2,025 967
Total Cash Collections $ 389,660 $ 399,747

  • Principal amortization of finance receivables in the first quarter was $177.8 million or 46.3% of cash collections, compared with $171.3 million or 42.9% in the year-ago quarter. Principal amortization included a net allowance charge of $9.9 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance charge of $1.6 million recorded in the year-ago quarter. Currency adjusted principal amortization was $180.4 million in the first quarter of 2016. Principal amortization was negatively impacted by placing several portfolios in Europe on non-accrual which applies all cash collections to amortization.
  • Revenues in the first quarter also included income from PRA Group’s fee-based businesses of $16.3 million, compared with $13.1 million in the year-ago quarter, and other income of $2.1 million compared with $3.8 million in the year-ago quarter.

EXPENSES AND OPERATING INCOME

  • Operating expenses were $154.0 million in the first quarter, compared with $149.0 million a year ago. Non-GAAP operating expenses, which in addition to being currency adjusted exclude costs not associated with normal operations, were $154.2 million versus $146.7 million a year ago.
  • Operating income in the first quarter was $70.9 million, compared with $96.2 million in the year-ago quarter. Non-GAAP operating income, which in addition to being currency adjusted excludes costs not associated with normal operations, was $74.4 million in the first quarter versus $98.5 million a year ago. The operating margin was 31.5% in the first quarter and the non-GAAP operating margin was 32.5%.
  • The provision for income taxes was $16.2 million in the first quarter compared to $30.0 million in the year-ago quarter. PRA Group’s provision for income taxes was 33.1% of income before taxes in the first quarter, compared with 34.1% in the year-ago quarter. Non-GAAP provision for income taxes in the first quarter was $20.1 million versus $30.6 million a year ago.

PORTFOLIO ACQUISITIONS

  • PRA Group invested $336.8 million in new finance receivables in the first quarter.

Portfolio Purchase Source 2016 2015
($ in thousands) Q1 Q4Q3Q2Q1
Americas-Core $ 136,057 $ 120,554 $ 90,912 $ 98,317 $ 138,498
Americas-Insolvency 22,952 20,589 9,300 19,111 16,437
Europe-Core (1) 172,557 79,735 240,385 88,499 21,579
Europe-Insolvency 5,212 4,976 3,959 2,450 8,510
Total Portfolio Purchasing $ 336,778 $ 225,854 $ 344,556 $ 208,377 $ 185,024
(1) Excludes the $27.9 million investment in the securitized fund in Poland during the three months ended March 31, 2015.

BALANCE SHEET

  • Borrowings totaled $1,896.4 million as of March 31, 2016, consisting of $544.0 million drawn on the domestic and Canadian revolver, $758.3 million drawn on the multi-currency revolver, $266.2 million in convertible senior notes, $170.0 million in other long-term debt and $165.0 million in notes payable. Total borrowings were $1,479.3 million as of March 31, 2015.
  • Cash and cash equivalents were $79.4 million as of March 31, 2016, compared with $40.5 million as of March 31, 2015.
  • Net deferred tax liabilities were $269.2 million as of March 31, 2016, compared with $265.7 million as of March 31, 2015.
  • Equity attributable to PRA Group, Inc. was $864.9 million as of March 31, 2016, compared with $817.3 million as of March 31, 2015.

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 3106779. To listen to a replay of the call until May 16, 2016, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 3106779.

About PRA Group
As a global leader in acquiring and collecting nonperforming loans, PRA Group (Nasdaq:PRAA) returns capital to 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 financial 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, which are available through PRA Group's website and 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
March 31,
2016 2015
Revenues:
Income recognized on finance receivables, net$ 206,507 $ 228,403
Fee income 16,266 13,053
Other revenue 2,109 3,750
Total revenues 224,882 245,206
Operating expenses:
Compensation and employee services 66,765 65,271
Legal collection fees 12,950 13,691
Legal collection costs 17,182 20,854
Agency fees 10,884 8,261
Outside fees and services 15,808 12,797
Communication 9,882 10,418
Rent and occupancy 3,796 3,560
Depreciation and amortization 6,070 4,610
Other operating expenses 10,651 9,578
Total operating expenses 153,988 149,040
Income from operations 70,894 96,166
Other income and (expense):
Interest expense (19,959) (14,776)
Foreign exchange gain/(loss) (1,850) 6,789
Income before income taxes 49,085 88,179
Provision for income taxes 16,232 30,044
Net income$ 32,853 $ 58,135
Adjustment for net income attributable to noncontrolling interest 870 -
Net income attributable to PRA Group, Inc.$ 31,983 $ 58,135
Net income per common share attributable to PRA Group, Inc.:
Basic $ 0.69 $ 1.19
Diluted $ 0.69 $ 1.19
Weighted average number of shares outstanding:
Basic 46,243 48,724
Diluted 46,372 49,052

PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands)
March 31, December 31,
ASSETS 2016 2015
Cash and cash equivalents$ 79,442 $ 71,372
Investments 71,413 73,799
Finance receivables, net 2,377,077 2,202,113
Other receivables, net 33,555 30,771
Income taxes receivable - 1,717
Net deferred tax asset 15,571 13,068
Property and equipment, net 47,785 45,394
Goodwill 524,870 495,156
Intangible assets, net 32,154 23,788
Other assets 86,966 33,389
Total assets$ 3,268,833 $ 2,990,567
LIABILITIES AND EQUITY
Liabilities:
Accounts payable$ 2,377 $ 4,190
Accrued expenses 95,049 95,380
Income taxes payable 28,114 21,236
Net deferred tax liability 269,201 261,498
Interest-bearing deposits 55,349 46,991
Borrowings 1,896,424 1,717,129
Other liabilities 13,577 4,396
Total liabilities 2,360,091 2,150,820
Equity:
Preferred stock, par value $0.01, authorized shares, 2,000,
issued and outstanding shares, 0 - -
Common stock, par value $0.01, authorized shares, 100,000, issued
and outstanding shares, 46,328 at March 31, 2016; 100,000
authorized shares, 46,173 issued and outstanding shares at 463 462
December 31, 2015
Additional paid-in capital 64,287 64,622
Retained earnings 996,253 964,270
Accumulated other comprehensive loss (196,135) (228,861)
Total stockholders' equity - PRA Group, Inc. 864,868 800,493
Noncontrolling interest 43,874 39,254
Total equity 908,742 839,747
Total liabilities and total equity$ 3,268,833 $ 2,990,567

PRA Group, Inc.
FINANCIAL HIGHLIGHTS
As of and for the
Three Months Ended March 31,
2016 2015 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net$ 206,507 $ 228,403 -10%
Fee income 16,266 13,053 25%
Other revenue 2,109 3,750 -44%
Total revenues 224,882 245,206 -8%
Operating expenses 153,988 149,040 3%
Income from operations 70,894 96,166 -26%
Net interest expense 19,959 14,776 35%
Net income 32,853 58,135 -43%
Net income attributable to PRA Group, Inc. 31,983 58,135 -45%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents$ 79,442 $ 40,542 96%
Finance receivables, net 2,377,077 1,954,772 22%
Goodwill and intangible assets, net 557,024 506,695 10%
Total assets 3,268,833 2,700,613 21%
Borrowings 1,896,424 1,479,262 28%
Total liabilities 2,360,091 1,883,295 25%
Total equity - PRA Group, Inc. 864,868 817,318 6%
FINANCE RECEIVABLE INCOME (dollars in thousands)
Cash collections$ 384,333 $ 399,747 -4%
Cash collections on fully amortized pools 9,276 17,005 -45%
Principal amortization without allowance (reversals)/charges 167,928 169,714 -1%
Allowance (reversal)/charge 9,898 1,630 507%
Principal amortization with allowance (reversals)/charges 177,826 171,344 4%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 46.3% 42.9% 8%
Excluding fully amortized pools 47.4% 44.8% 6%
Allowance (reversal)/charge to period-end net finance receivables 0.4% 0.1% 399%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - Americas core$ 136,057 $ 138,498 -2%
Purchase price - Americas insolvency 22,952 16,437 40%
Purchase price - Europe core 172,557 21,579 700%
Purchase price - Europe insolvency 5,212 8,510 -39%
Purchase price - total 336,778 185,024 82%
Number of portfolios - total 139 139 0%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core$ 2,643,410 $ 2,370,086 12%
Estimated remaining collections - Americas insolvency 421,866 577,319 -27%
Estimated remaining collections - Europe core 2,152,403 1,619,454 33%
Estimated remaining collections - Europe insolvency 40,938 24,838 65%
Estimated remaining collections - total 5,258,617 4,591,697 15%
Adjusted estimated remaining collections (7) 5,366,417 4,716,230 14%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted$ 0.69 $ 1.19 -42%
Weighted average number of shares outstanding - diluted 46,372 49,052 -5%
Shares repurchased - 1,478 -100%
Average price paid per share repurchased (including acquisitions costs)$ - $ 52.65 -100%
Closing market price$ 29.39 $ 54.32 -46%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 15.4% 30.1% -49%
Return on revenue (2) 14.6% 23.7% -38%
Return on average assets (3) 4.1% 8.7% -53%
Operating margin (4) 31.5% 39.2% -20%
Operating expense to cash receipts (5) 38.4% 36.1% 6%
Debt to stockholders' equity (6) 219.3% 181.0% 21%
Number of full-time equivalent collectors 2,103 2,395 -12%
Number of full-time equivalent employees 3,748 3,847 -3%
Cash receipts (5)$ 400,599 $ 412,800 -3%
Line of credit - unused portion at period end 435,709 323,812 35%
(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
March 31December 31September 30June 30March 31
2016 2015 2015 2015 2015
EARNINGS (in thousands)
Income recognized on finance receivables, net$ 206,507 $ 208,471 $ 208,184 $ 220,064 $ 228,403
Fee income 16,266 19,649 17,803 13,878 13,053
Other revenue 2,109 2,065 3,443 3,255 3,750
Total revenues 224,882 230,185 229,430 237,197 245,206
Operating expenses 153,988 159,013 175,303 148,318 149,040
Income from operations 70,894 71,172 54,127 88,879 96,166
Net interest expense 19,959 15,321 16,787 13,452 14,776
Net income 32,853 40,988 17,583 51,425 58,135
Net income attributable to PRA Group, Inc. 31,983 40,970 17,396 51,425 58,135
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $ 79,442 $ 71,372 $ 69,111 $ 56,811 $ 40,542
Finance receivables, net 2,377,077 2,202,113 2,167,178 2,012,552 1,954,772
Goodwill and intangible assets, net 557,024 518,944 502,383 512,451 506,695
Total assets 3,268,833 2,990,567 2,984,550 2,783,756 2,700,613
Borrowings 1,896,424 1,717,129 1,654,457 1,503,363 1,479,262
Total liabilities 2,360,091 2,150,820 2,083,131 1,885,880 1,883,295
Total equity - PRA Group, Inc. 864,868 800,493 863,517 897,876 817,318
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $ 384,333 $ 369,371 $ 380,753 $ 389,624 $ 399,747
Cash collections on fully amortized pools 9,276 8,280 11,453 15,162 17,005
Principal amortization without allowance (reversals)/charges 167,928 149,381 161,234 164,675 169,714
Allowance (reversal)/charge 9,898 11,519 11,335 4,885 1,630
Principal amortization with allowance (reversals)/charges 177,826 160,900 172,569 169,560 171,344
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 46.3% 43.6% 45.3% 43.5% 42.9%
Excluding fully amortized pools 47.4% 44.6% 46.7% 45.3% 44.8%
Allowance (reversal)/charge to period-end net finance receivables 0.4% 0.5% 0.5% 0.2% 0.1%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - North America core$ 136,057 $ 120,554 $ 90,912 $ 98,317 $ 138,498
Purchase price - North America insolvency 22,952 20,589 9,300 19,111 16,437
Purchase price - Europe core 172,557 79,735 240,385 88,499 21,579
Purchase price - Europe insolvency 5,212 4,976 3,959 2,450 8,510
Purchase price - total 336,778 225,854 344,556 208,377 185,024
Number of portfolios - total 139 139 128 136 139
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core$ 2,643,410 $ 2,558,529 $ 2,421,506 $ 2,384,698 $ 2,370,086
Estimated remaining collections - Americas insolvency 421,866 448,652 474,097 529,892 577,319
Estimated remaining collections - Europe core 2,152,403 1,964,763 1,903,226 1,685,694 1,619,454
Estimated remaining collections - Europe insolvency 40,938 34,878 30,081 26,807 24,838
Estimated remaining collections - total 5,258,617 5,006,822 4,828,910 4,627,091 4,591,697
Adjusted estimated remaining collections (7) 5,366,417 5,114,923 4,945,609 4,747,552 4,716,230
SHARE DATA (share amounts in thousands)
Net income per common share - diluted$ 0.69 $ 0.86 $ 0.36 $ 1.06 $ 1.19
Weighted average number of shares outstanding - diluted 46,372 47,539 48,498 48,529 49,052
Shares repurchased - 2,072 133 - 1,478
Average price paid per share repurchased (including acquisitions costs)$ - $ 38.60 $ 58.08 $ - $ 52.65
Closing market price $ 29.39 $ 34.69 $ 52.92 $ 62.31 $ 54.32
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 15.4% 19.8% 7.8% 23.5% 30.1%
Return on revenue (2) 14.6% 17.8% 7.7% 21.7% 23.7%
Return on average assets (3) 4.1% 5.5% 2.3% 7.4% 8.7%
Operating margin (4) 31.5% 30.9% 23.6% 37.5% 39.2%
Operating expense to cash receipts (5) 38.4% 40.9% 44.0% 36.8% 36.1%
Debt to stockholders' equity (6) 219.3% 214.5% 191.6% 167.4% 181.0%
Number of collectors 2,103 2,173 2,159 2,317 2,395
Number of full-time equivalent employees 3,748 3,799 3,715 3,820 3,847
Cash receipts (5) $ 400,599 $ 389,020 $ 398,556 $ 403,502 $ 412,800
Line of credit - unused portion at period end 435,709 446,769 393,246 547,017 323,812
(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 which exclude penalty and fees associated with the CFPB consent order, expenses associated with acquisitions, legal costs not associated with normal operations, and constant currency adjustments 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.

The constant currency results assume that foreign revenues and expenses are translated from foreign currencies to the U.S. Dollar at rates consistent with the prior year, and that any benefit or loss caused by foreign currency fluctuations would be consistent with the prior year. To do this the company translates the current year’s income statements into U.S. Dollars using the prior year’s average exchange rates and then replaces the foreign exchange gain or loss for the current year with the balance from the prior year. Finally, the company calculates the tax impact of the constant currency results to reflect the current effective tax rate of the reporting period.

Three Months Ended March 31, 2016
Cash Collections Amortization Income Recognized on Finance Receivables, net Fee Income Other Revenue Total Revenues Expenses Income from Operations Income before Income Taxes Provision for Income Taxes Net Income attributable to PRA Group, Inc. Diluted EPS
As Reported$ 384,333 $ 177,826 $ 206,507 $ 16,266 $ 2,109 $ 224,882 $ 153,988 $ 70,894 $ 49,085 $ 16,232 $ 31,983 $ 0.69
Adjustments:
CFPB expenses including penalty and redress - - - - - - (52) 52 52 18 34 -
Acquisition-related expenses - - - - - - (1,034) 1,034 1,034 355 679 0.01
Legal costs not associated with normal operations - - - - - - (435) 435 435 149 286 0.01
Constant currency adjustments 5,327 2,539 2,788 494 413 3,695 1,731 1,964 10,054 3,325 6,515 0.14
Subtotal of adjustments 5,327 2,539 2,788 494 413 3,695 210 3,485 11,575 3,847 7,514 0.16
As Adjusted 389,660 180,365 209,295 16,760 2,522 228,577 154,198 74,379 60,660 20,079 39,497 0.85
Three Months Ended March 31, 2015
Cash Collections Amortization Income Recognized on Finance Receivables, net Fee Income Other Revenue Total Revenues Expenses Income from Operations Income before Income Taxes Provision for Income Taxes Net Income attributable to PRA Group, Inc. Diluted EPS
As Reported$ 399,747 $ 171,344 $ 228,403 $ 13,053 $ 3,750 $ 245,206 $ 149,040 $ 96,166 $ 88,179 $ 30,044 $ 58,135 $ 1.19
Adjustments:
Acquisition-related expenses - - - - - - (2,243) 2,243 2,243 536 1,707 0.03
Legal costs not associated with normal operations - - - - - - (125) 125 125 30 95 -
Subtotal of adjustments - - - - - - (2,368) 2,368 2,368 566 1,802 0.03
As Adjusted 399,747 171,344 228,403 13,053 3,750 245,206 146,672 98,534 90,547 30,610 59,937 1.22

Three Months Ended March 31, 2016
Net Income Average Equity Return on Average Equity, Annualized
As Reported $ 31,983 $ 831,301 15.4%
Adjustments 7,514 2,505 3.5%
As Adjusted 39,497 833,806 18.9%
Three Months Ended March 31, 2015
Net Income Average Equity Return on Average Equity, Annualized
As Reported $ 58,135 $ 772,336 30.1%
Adjustments 1,802 600 0.9%
As Adjusted 59,937 772,936 31.0%


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, Inc.