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PRA Group Reports Second Quarter 2016 Results

NORFOLK, Va., Aug. 08, 2016 (GLOBE NEWSWIRE) -- PRA Group, Inc. (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2016. The company reported diluted earnings per share of $0.79 versus $1.06 in the second quarter of 2015 and non-GAAP diluted earnings per share of $0.83 for the second quarter of 2016 compared to $1.08 for the year-ago quarter. Non-GAAP financial results are presented in constant currency with the second 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.

Second Quarter Highlights

  • Estimated remaining collections of $5.3 billion.
  • Cash collections of $387.2 million, currency adjusted cash collections of $391.3 million.
  • Total revenues of $228.5 million, currency adjusted revenues of $230.0 million.
  • Income from operations of $72.8 million, non-GAAP income from operations of $75.1 million.
  • Net income of $36.5 million, non-GAAP net income of $38.3 million.
  • Return on average equity, annualized, of 16.4%, non-GAAP return on average equity, annualized, of 17.3%.
  • $249.5 million in investments.

“Second quarter global investment was solid at $250 million helping to increase estimated remaining collections to $5.33 billion. Our fee-based businesses in the U.S. delivered a good quarter, as both revenue and net operating income increased substantially,” said Steve Fredrickson, chairman and chief executive officer, PRA Group. “We are beginning to see signs that may indicate the credit cycle is turning which could ultimately increase the supply of nonperforming loans in the U.S. In Europe, we see a strong acquisition pipeline and strong cash collections in most markets. Global sellers are increasingly looking for buying partners that offer competitive pricing, a strong compliance system, and a reputation for treating customers respectfully. Given this view, we believe PRA Group is competitively advantaged as a buyer of choice.”

REVENUES AND CASH COLLECTIONS

  • Total revenues of $228.5 million in the second quarter included finance receivables income net of principal amortization and net allowance charges versus $237.2 million in the prior year period. For the six months ended June 30, 2016, total revenues were $453.3 million versus $482.4 million in the prior year period.
  • Cash collections were $387.2 million versus $389.6 million in the prior year period. Cash collections for the first six months of 2016 were $771.5 million versus $789.4 million in the prior year period. 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) Q2Q1 Q4Q3Q2
Americas-Core $213,741 $219,571 $195,834 $210,725 $218,838
Americas-Insolvency 67,745 68,646 73,843 81,865 92,974
Europe-Core 102,972 94,091 97,149 85,635 76,602
Europe-Insolvency 2,744 2,025 2,545 2,528 1,210
Total Cash Collections $387,202 $384,333 $369,371 $380,753 $389,624
Cash Collection Source -
Constant Currency Adjusted 2016 2015
($ in thousands) Q2 Q2
Americas-Core $216,074 $218,838
Americas-Insolvency 67,808 92,974
Europe-Core 104,605 76,602
Europe-Insolvency 2,823 1,210
Total Cash Collections $391,310 $389,624

  • Principal amortization of finance receivables in the second quarter was $183.2 million or 47.3% of cash collections, compared with $169.6 million or 43.5% in the prior year period. Principal amortization included a net allowance charge of $12.9 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance charge of $4.9 million recorded in the prior year period. Principal amortization of finance receivables for the first six months of 2016 was $361.0 million or 46.8% of cash collections, including a net allowance charge of $22.8 million compared with $340.9 million or 43.2%, including a net allowance charge of $6.5 million in the prior year period.
  • Revenues for the second quarter were negatively impacted by two portfolios in Italy being on non-accrual which applied all cash collections of $6.7 million to principal amortization.
  • Revenues in the second quarter also included income from PRA Group’s fee-based businesses of $22.3 million, compared with $13.9 million in the prior year period, and other income of $2.1 million compared with $3.3 million in the prior year period. For the first six months of 2016, fee income was $38.6 million compared with $26.9 million in the prior year period and other income was $4.2 million compared with $7.0 million in the prior year period.

EXPENSES AND OPERATING INCOME

  • Operating expenses were $155.7 million in the second quarter, compared with $148.3 million in the prior year period. For the first six months of 2016, operating expenses were $309.7 million, compared with $297.4 million in the prior year period.
  • Operating income in the second quarter was $72.8 million, compared with $88.9 million in the prior year period. For the first six months of 2016, operating income was $143.7 million versus $185.0 million in the prior year period. The operating margin was 31.8% in the second quarter and 31.7% for the first six months of 2016.
  • The provision for income taxes was $17.3 million in the second quarter compared to $27.6 million in the prior year period. PRA Group’s provision for income taxes was 32.0% of income before taxes in the second quarter, compared with 34.9% in the prior year period. For the first six months of 2016, the provision for income taxes was $33.6 million or 32.5% of income before taxes compared to $57.6 million in the prior year period.

NET INCOME AND EPS

  • Net income was $36.5 million in the second quarter, compared with $51.4 million in the prior year period. The net income margin in the second quarter of 2016 was 16.1%. For the first six months of 2016, net income was $68.4 million, compared with $109.6 million in the prior year period. The net income margin for the first six months of 2016 was 15.4% compared with 22.7% in the prior year period.
  • Earnings per diluted share in the second quarter were $0.79, compared with $1.06 in the prior year period. For the first six months of 2016, earnings per diluted share were $1.48 million versus $2.25 in the prior year period.

PORTFOLIO ACQUISITIONS

  • PRA Group invested $249.5 million in new finance receivables in the second quarter of 2016.

Portfolio Purchase Source 2016 2015
($ in thousands) Q2Q1 Q4Q3Q2
Americas-Core $130,529 $136,057 $120,554 $90,912 $98,317
Americas-Insolvency 33,723 22,952 20,589 9,300 19,111
Europe-Core 68,835 171,038 79,735 240,385 88,499
Europe-Insolvency 16,410 6,731 4,976 3,959 2,450
Total Portfolio Purchasing $249,497 $336,778 $225,854 $344,556 $208,377

BALANCE SHEET

  • Cash and cash equivalents were $117.1 million as of June 30, 2016, compared with $56.8 million as of June 30, 2015.
  • Net deferred tax liabilities were $276.4 million as of June 30, 2016, compared with $252.6 million as of June 30, 2015.
  • Borrowings totaled $1.91 billion as of June 30, 2016, compared with $1.50 billion as of June 30, 2015.
  • Equity attributable to PRA Group, Inc. was $886.1 million as of June 30, 2016, compared with $897.9 million as of June 30, 2015.

Conference Call Information
PRA Group will hold a conference call today at 5:00 p.m. ET to discuss the company’s second quarter results. 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 55478474. To listen to a replay of the call until August 15, 2016, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 55478474.

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. With almost 4,000 employees worldwide, 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. 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, beliefs, expectations, 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 Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Revenues:
Income recognized on finance receivables, net$204,008 220,064 $410,515 $448,467
Fee income 22,347 13,878 38,613 26,931
Other revenue 2,101 3,255 4,210 7,005
Total revenues 228,456 237,197 453,338 482,403
Operating expenses:
Compensation and employee services 64,793 68,320 131,558 133,591
Legal collection fees 15,098 14,114 28,048 27,805
Legal collection costs 18,799 19,556 35,981 40,410
Agency fees 11,309 7,784 22,193 16,045
Outside fees and services 15,876 12,466 31,684 25,263
Communication 8,423 8,073 18,305 18,491
Rent and occupancy 4,038 3,479 7,834 7,039
Depreciation and amortization 6,085 4,916 12,155 9,526
Other operating expenses 11,279 9,610 21,930 19,188
Total operating expenses 155,700 148,318 309,688 297,358
Income from operations 72,756 88,879 143,650 185,045
Other income and (expense):
Interest expense (20,569) (13,452) (40,528) (28,228)
Foreign exchange gain 2,029 3,584 179 10,373
Income before income taxes 54,216 79,011 103,301 167,190
Provision for income taxes 17,348 27,586 33,580 57,630
Net income$36,868 $51,425 $69,721 $109,560
Adjustment for net income attributable to noncontrolling interest 412 - 1,282 -
Net income attributable to PRA Group, Inc.$36,456 $51,425 $68,439 $109,560
Net income per common share attributable to PRA Group, Inc.:
Basic $0.79 $1.06 $1.48 $2.26
Diluted $0.79 $1.06 $1.48 $2.25
Weighted average number of shares outstanding:
Basic 46,333 48,325 46,288 48,525
Diluted 46,402 48,529 46,387 48,790


PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands)
June 30, December 31,
ASSETS 2016 2015
Cash and cash equivalents$117,071 $71,372
Investments 66,560 73,799
Finance receivables, net 2,399,949 2,202,113
Other receivables, net 30,079 30,771
Income taxes receivable 13,871 1,717
Net deferred tax asset 15,713 13,068
Property and equipment, net 46,852 45,394
Goodwill 544,337 495,156
Intangible assets, net 32,655 23,788
Other assets 38,509 33,389
Total assets$3,305,596 $2,990,567
LIABILITIES AND EQUITY
Liabilities:
Accounts payable$3,719 $4,190
Accrued expenses 79,202 95,380
Income taxes payable 20,888 21,236
Net deferred tax liability 276,360 261,498
Interest-bearing deposits 58,041 46,991
Borrowings 1,912,283 1,717,129
Other liabilities 19,922 4,396
Total liabilities 2,370,415 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, 46,341 at June 30, 2016; 100,000
authorized shares, 46,173 issued and outstanding shares at
December 31, 2015 463 462
Additional paid-in capital 66,838 64,622
Retained earnings 1,032,709 964,270
Accumulated other comprehensive loss (213,933) (228,861)
Total stockholders' equity - PRA Group, Inc. 886,077 800,493
Noncontrolling interest 49,104 39,254
Total equity 935,181 839,747
Total liabilities and total equity$3,305,596 $2,990,567

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,
2016 2015 Change 2016 2015 Change
EARNINGS (in thousands)
Income recognized on finance receivables, net $204,008 $220,064 -7% $410,515 $448,467 -8%
Fee income 22,347 13,878 61% 38,613 26,931 43%
Other revenue 2,101 3,255 -35% 4,210 7,005 -40%
Total revenues 228,456 237,197 -4% 453,338 482,403 -6%
Operating expenses 155,700 148,318 5% 309,688 297,358 4%
Income from operations 72,756 88,879 -18% 143,650 185,045 -22%
Net interest expense 20,569 13,452 53% 40,528 28,228 44%
Net income 36,868 51,425 -28% 69,721 109,560 -36%
Net income attributable to PRA Group, Inc. 36,456 51,425 -29% 68,439 109,560 -38%
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $117,071 $56,811 106% $117,071 $56,811 106%
Finance receivables, net 2,399,949 2,012,552 19% 2,399,949 2,012,552 19%
Goodwill and intangible assets, net 576,992 512,451 13% 576,992 512,451 13%
Total assets 3,305,596 2,783,756 19% 3,305,596 2,783,756 19%
Borrowings 1,912,283 1,503,363 27% 1,912,283 1,503,363 27%
Total liabilities 2,370,415 1,885,880 26% 2,370,415 1,885,880 26%
Total equity - PRA Group, Inc. 886,077 897,876 -1% 886,077 897,876 -1%
FINANCE RECEIVABLE INCOME (dollars in thousands)
Cash collections $387,202 $389,624 -1% $771,535 $789,371 -2%
Cash collections on fully amortized pools 8,124 15,162 -46% 17,400 32,167 -46%
Principal amortization without allowance (reversals)/charges 170,274 164,675 3% 338,202 334,389 1%
Allowance (reversal)/charge 12,920 4,885 164% 22,818 6,515 250%
Principal amortization with allowance (reversals)/charges 183,194 169,560 8% 361,020 340,904 6%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 47.3% 43.5% 9% 46.8% 43.2% 8%
Excluding fully amortized pools 48.3% 45.3% 7% 47.9% 45.0% 6%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.2% 122% 1.0% 0.3% 194%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - Americas core $130,529 $98,317 33% $266,586 $236,815 13%
Purchase price - Americas insolvency 33,723 19,111 76% 56,675 35,548 59%
Purchase price - Europe core 68,835 88,499 -22% 239,873 110,078 118%
Purchase price - Europe insolvency 16,410 2,450 570% 23,141 10,960 111%
Purchase price - total 249,497 208,377 20% 586,275 393,401 49%
Number of portfolios - total 136 136 0% 275 275 0%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $2,705,781 $2,384,698 13% $2,705,781 $2,384,698 13%
Estimated remaining collections - Americas insolvency 396,667 529,892 -25% 396,667 529,892 -25%
Estimated remaining collections - Europe core 2,171,542 1,685,694 29% 2,171,542 1,685,694 29%
Estimated remaining collections - Europe insolvency 59,107 26,807 120% 59,107 26,807 120%
Estimated remaining collections - total 5,333,097 4,627,091 15% 5,333,097 4,627,091 15%
Adjusted estimated remaining collections (7) 5,430,192 4,747,552 14% 5,430,192 4,747,552 14%
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $0.79 $1.06 -26% $1.50 $2.25 -33%
Weighted average number of shares outstanding - diluted 46,402 48,529 -4% 46,387 48,790 -5%
Shares repurchased - - 0% - 1,478 -100%
Average price paid per share repurchased (including acquisitions costs) $- $- 0% $- 52.65 -100%
Closing market price $24.14 $62.31 -61% $24.14 $62.31 -61%
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 16.4% 23.5% -30% 15.9% 26.6% -40%
Return on revenue (2) 16.1% 21.7% -26% 15.4% 22.7% -32%
Return on average assets (3) 4.4% 7.4% -40% 4.2% 8.0% -48%
Operating margin (4) 31.8% 37.5% -15% 31.7% 38.4% -17%
Operating expense to cash receipts (5) 38.0% 36.8% 3% 38.2% 36.4% 5%
Debt to stockholders' equity (6) 215.8% 167.4% 29% 215.8% 167.4% 29%
Number of full-time equivalent collectors 2,023 2,317 -13% 2,023 2,317 -13%
Number of full-time equivalent employees 3,816 3,820 0% 3,816 3,820 0%
Cash receipts (5) $409,549 $403,502 1% $810,148 $816,302 -1%
Lines of credit - unused portion at period end 430,651 547,017 -21% 430,651 547,017 -21%
(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 30March 31December 31September 30June 30
2016 2016 2015 2015 2015
EARNINGS (in thousands)
Income recognized on finance receivables, net $204,008 $206,507 $208,471 $208,184 $220,064
Fee income 22,347 16,266 19,649 17,803 13,878
Other revenue 2,101 2,109 2,065 3,443 3,255
Total revenues 228,456 224,882 230,185 229,430 237,197
Operating expenses 155,700 153,988 159,013 175,303 148,318
Income from operations 72,756 70,894 71,172 54,127 88,879
Net interest expense 20,569 19,959 15,321 16,787 13,452
Net income 36,868 32,853 40,988 17,583 51,425
Net income attributable to PRA Group, Inc. 36,456 31,983 40,970 17,396 51,425
PERIOD-END BALANCES (in thousands)
Cash and cash equivalents $117,071 $79,442 $71,372 $69,111 $56,811
Finance receivables, net 2,399,949 2,377,077 2,202,113 2,167,178 2,012,552
Goodwill and intangible assets, net 576,992 557,024 518,944 526,841 512,451
Total assets 3,305,596 3,268,833 2,990,567 2,984,550 2,783,756
Borrowings 1,912,283 1,896,424 1,717,129 1,654,457 1,503,363
Total liabilities 2,370,415 2,360,091 2,150,820 2,083,131 1,885,880
Total equity - PRA Group, Inc. 886,077 864,868 800,493 863,517 897,876
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections $387,202 $384,333 $369,371 $380,753 $389,624
Cash collections on fully amortized pools 8,124 9,276 8,280 11,453 15,162
Principal amortization without allowance (reversals)/charges 170,274 167,928 149,381 161,234 164,675
Allowance (reversal)/charge 12,920 9,898 11,519 11,335 4,885
Principal amortization with allowance (reversals)/charges 183,194 177,826 160,900 172,569 169,560
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools 47.3% 46.3% 43.6% 45.3% 43.5%
Excluding fully amortized pools 48.3% 47.4% 44.6% 46.7% 45.3%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.4% 0.5% 0.5% 0.2%
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - North America core $130,529 $136,057 $120,554 $90,912 $98,317
Purchase price - North America insolvency 33,723 22,952 20,589 9,300 19,111
Purchase price - Europe core 68,835 171,038 79,735 240,385 88,499
Purchase price - Europe insolvency 16,410 6,731 4,976 3,959 2,450
Purchase price - total 249,497 336,778 225,854 344,556 208,377
Number of portfolios - total 136 139 139 128 136
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core $2,705,781 $2,643,410 $2,558,529 $2,421,506 $2,384,698
Estimated remaining collections - Americas insolvency 396,667 421,866 448,652 474,097 529,892
Estimated remaining collections - Europe core 2,171,542 2,152,403 1,964,763 1,903,226 1,685,694
Estimated remaining collections - Europe insolvency 59,107 40,938 34,878 30,081 26,807
Estimated remaining collections - total 5,333,097 5,258,617 5,006,822 4,828,910 4,627,091
Adjusted estimated remaining collections (7) 5,430,192 5,366,417 5,114,923 4,945,609 4,747,552
SHARE DATA (share amounts in thousands)
Net income per common share - diluted $0.79 $0.69 $0.86 $0.36 $1.06
Weighted average number of shares outstanding - diluted 46,402 46,372 47,539 48,498 48,529
Shares repurchased - - 2,072 133 -
Average price paid per share repurchased (including acquisitions costs) $- $- $38.60 $58.08 $-
Closing market price $24.14 $29.39 $34.69 $52.92 $62.31
RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1) 16.4% 15.4% 19.8% 7.8% 23.5%
Return on revenue (2) 16.1% 14.6% 17.8% 7.7% 21.7%
Return on average assets (3) 4.4% 4.1% 5.5% 2.3% 7.4%
Operating margin (4) 31.8% 31.5% 30.9% 23.6% 37.5%
Operating expense to cash receipts (5) 38.0% 38.4% 40.9% 44.0% 36.8%
Debt to stockholders'equity (6) 215.8% 219.3% 214.5% 191.6% 167.4%
Number of collectors 2,023 2,103 2,173 2,159 2,317
Number of full-time equivalent employees 3,816 3,748 3,799 3,715 3,820
Cash receipts (5) $409,549 $400,599 $389,020 $398,556 $403,502
Lines of credit - unused portion at period end 430,651 435,709 446,769 393,246 547,017
(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 redress associated with the Consumer Financial Protection Bureau consent order, expenses associated with acquisitions, legal costs not associated with normal operations, and constant currency adjustments, improve comparability between current year results and prior periods and better reflect the company’s operational performance. Management uses non-GAAP measures internally to evaluate the company’s performance and to set performance goals. 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 June 30, 2016
Net Income Average Equity Return on Average
Equity, Annualized
As Reported $36,456 $887,656 16.4%
Adjustments 1,872 624 0.9%
As Adjusted 38,328 888,280 17.3%
Six Months Ended June 30, 2016
Net Income Average Equity Return on Average
Equity, Annualized
As Reported $68,439 $859,479 15.9%
Adjustments 9,387 1,564 2.2%
As Adjusted 77,826 861,043 18.1%
Three Months Ended June 30, 2015
Net Income Average Equity Return on Average
Equity, Annualized
As Reported $51,425 $876,426 23.5%
Adjustments 810 270 0.3%
As Adjusted 52,235 876,696 23.8%
Six Months Ended June 30, 2015
Net Income Average Equity Return on Average
Equity, Annualized
As Reported $109,560 $824,381 26.6%
Adjustments 2,612 435 0.6%
As Adjusted 112,172 824,816 27.2%


Three Months Ended June 30, 2016
Total
Revenues
Total
Operating
Expenses
Income
from
Operations
Net Income
attributable to
PRA Group, Inc.
Diluted
EPS
As Reported $228,456 $155,700 $72,756 $36,456 $0.79
Adjustments:
CFPB expenses including penalty and redress - (21) 21 13 -
Acquisition-related expenses - (557) 557 354 0.01
Legal costs not associated with normal operations - (1,623) 1,623 1,031 0.02
Constant currency adjustments 1,576 1,398 178 474 0.01
Subtotal of adjustments 1,576 (803) 2,379 1,872 0.04
As Adjusted 230,032 154,897 75,135 38,328 0.83
Six Months Ended June 30, 2016
Total
Revenues
Total
Operating
Expenses
Income
from
Operations
Net Income
attributable to
PRA Group, Inc.
Diluted
EPS
As Reported $453,338 $309,688 $143,650 $68,439 $1.48
Adjustments:
CFPB expenses including penalty and redress - (73) 73 47 -
Acquisition-related expenses - (1,591) 1,591 1,025 0.02
Legal costs not associated with normal operations - (2,058) 2,058 1,326 0.03
Constant currency adjustments 5,271 3,129 2,142 6,989 0.15
Subtotal of adjustments 5,271 (593) 5,864 9,387 0.20
As Adjusted 458,609 309,095 149,514 77,826 1.68
Three Months Ended June 30, 2015
Total
Revenues
Total
Operating
Expenses
Income
from
Operations
Net Income
attributable to
PRA Group, Inc.
Diluted
EPS
As Reported $237,197 $148,318 $88,879 $51,425 $1.06
Adjustments:
Acquisition-related expenses - (943) 943 624 0.02
Legal costs not associated with normal operations - (282) 282 186 -
Subtotal of adjustments - (1,225) 1,225 810 0.02
As Adjusted 237,197 147,093 90,104 52,235 1.08
Six Months Ended June 30, 2015
Total
Revenues
Total
Operating
Expenses
Income
from
Operations
Net Income
attributable to
PRA Group, Inc.
Diluted
EPS
As Reported $482,403 $297,358 $185,045 $109,560 $2.25
Adjustments:
Acquisition-related expenses - (3,186) 3,186 2,316 0.05
Legal costs not associated with normal operations - (407) 407 296 -
Subtotal of adjustments - (3,593) 3,593 2,612 0.05
As Adjusted 482,403 293,765 188,638 112,172 2.30

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.