# EDGAR Filing Document

**Accession Number:** 0001185348
**File Stem:** 0001185348-23-000005
**Filing Date:** 2023-2
**Character Count:** 45856
**Document Hash:** 2f9ad1b57d4ac71baef459d03cfc94a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185348-23-000005.hdr.sgml**: 20230227

**ACCESSION NUMBER**: 0001185348-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230227

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230227

**DATE AS OF CHANGE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRA GROUP INC
- **CENTRAL INDEX KEY:** 0001185348
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-CONSUMER CREDIT REPORTING, COLLECTION AGENCIES [7320]
- **IRS NUMBER:** 753078675
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-50058
- **FILM NUMBER:** 23674843

**BUSINESS ADDRESS:**
- **STREET 1:** 120 CORPORATE BLVD STE 100
- **CITY:** NORFOLK
- **STATE:** VA
- **ZIP:** 23502
- **BUSINESS PHONE:** 7575199300X3023

**MAIL ADDRESS:**
- **STREET 1:** 120 CORPORATE BLVD STE 100
- **CITY:** NORFOLK
- **STATE:** VA
- **ZIP:** 23502

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PORTFOLIO RECOVERY ASSOCIATES INC
- **DATE OF NAME CHANGE:** 20020903

?xml version="1.0" ? praa-20230227

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

WASHINGTON, D.C. 20549

**FORM 8-K** 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 27, 2023

PRA Group, Inc.

_________________________________________

(Exact name of registrant as specified in its charter)

---

| | | | |
|:---|:---|:---|:---|
| Delaware | Delaware | 000-50058 | 75-3078675 |
| (State or other jurisdiction of incorporation) | (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 120 Corporate Boulevard | 120 Corporate Boulevard |  |  |
| Norfolk, | Virginia |  | 23502 |
| (Address of principal executive offices) | (Address of principal executive offices) |  | (Zip Code) |

---

Registrant's telephone number, including area code: (888) 772-7326

Not Applicable

______________________________________________

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 par value per share | PRAA | NASDAQ Global Select Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On February 27, 2023, PRA Group, Inc. (the "Company") issued a press release announcing its fourth quarter and full year 2022 results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated into this Item 2.02 by reference.

**Item 7.01 Regulation FD Disclosure.**

The slide presentation being used in connection with the Company's previously announced February 27, 2023 webcast and conference call to discuss its fourth quarter and full year 2022 results is available in the Investor Relations section of the Company's website at <u>https://ir.pragroup.com/events-and-presentations</u>.

None of the information furnished in Item 2.02, Item 7.01 or Exhibit 99.1 of this Form 8-K shall be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Unless expressly set forth by specific reference in such filings, none of the information furnished in this Form 8-K shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

**Item 9.01 Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| (d) | Exhibits | |
| | <u>[99.1](newearningreleaseq42022.htm)</u> | <u>[Press release dated February 2](newearningreleaseq42022.htm)[7](newearningreleaseq42022.htm)[, 202](newearningreleaseq42022.htm)[3](newearningreleaseq42022.htm)</u> |
| | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **PRA Group, Inc.** | **PRA Group, Inc.** |
| Date: February 27, 2023 | By: | /s/ Peter M. Graham |
|  |  | Peter M. Graham |
|  |  | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

![pralogoa06.gif](pralogoa06.gif)

**PRA Group Reports Fourth Quarter and Full Year 2022 Results**

**NORFOLK, Va., February 27, 2023** - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter ("Q4 2022") and full year of 2022.

***Q4 2022 Highlights***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total portfolio purchases of $288.1 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total cash collections of $391.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Estimated remaining collections (ERC)<sup>1</sup> of $5.7 billion (or $6.0 billion on a constant currency-adjusted basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash efficiency ratio<sup>2</sup> of 58.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share of $0.41.

***Full Year 2022 Highlights***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total portfolio purchases of $850.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total cash collections of $1.7 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash efficiency ratio of 61.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share of $2.94.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt to Adjusted EBITDA<sup>3</sup> was 2.25x.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Common stock repurchases<sup>4</sup> of $99.4 million, or 2.3 million shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Available capacity under the Company's credit facilities of $1.6 billion; $465.1 million after considering borrowing base restrictions.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Dec 31,** | **Three Months Ended Dec 31,** | **Twelve Months Ended Dec 31,** | **Twelve Months Ended Dec 31,** |
|<br>**($ in thousands, except per share amounts)** | **2022** | **2021** | **2022** | **2021** |
| Net income attributable to PRA Group, Inc. | $15959 | $34276 | $117147 | $183158 |
| Diluted earnings per share | $0.41 | $0.79 | $2.94 | $4.04 |

---

"Our performance in 2022 was led by our European operations, which achieved an annual record for cash collections on a constant currency-adjusted basis and purchased portfolios in nearly all of our operational markets. On a global basis, our fourth quarter portfolio purchases of $288 million represented our highest investment level since the third quarter of 2021," said Kevin Stevenson, president and chief executive officer. "We made significant progress in 2022 executing our key strategic objectives, including growing our digital platform, leveraging our geographic reach to invest in the most attractive markets, and completing our first full year of collections in Australia. Looking ahead, we are seeing U.S. card balances, delinquency rates, charge-off rates, and bank loan loss reserves continue to increase which we believe will lead to more portfolio supply in the coming months. We also expect to continue to purchase at healthy levels in Europe. We are well-positioned to capitalize on this anticipated increased supply due to our funding capacity, global presence, operational efficiency, and experienced team."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. Constant currency-adjusted results are calculated based on foreign exchange rates at December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Share repurchases are subject to market conditions and other factors, and the share repurchase program remains subject to the discretion of the Company's Board of Directors.

------

**Cash Collections and Revenues**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Cash Collection Source** | **2022** | **2022** | **2022** | **2022** | **2021** |
| **($ in thousands)** | **Q4** | **Q3** | **Q2** | **Q1** | **Q4** |
| Americas and Australia Core | $205619 | $225775 | $244377 | $270284 | $257705 |
| Americas Insolvency | 27971 | 31911 | 34278 | 35209 | 36851 |
| Europe Core | 134016 | 132072 | 142470 | 151162 | 155853 |
| Europe Insolvency | 24051 | 22586 | 22935 | 24325 | 23262 |
| Total Cash Collections | $391657 | $412344 | $444060 | $480980 | $473671 |
| **Cash Collection Source -** |  |  |  |  |  |
| **Constant Currency Adjusted** | **2022** |  |  |  | **2021** |
| **($ in thousands)** | **Q4** |  |  |  | **Q4** |
| Americas and Australia Core | $205619 |  |  |  | $257824 |
| Americas Insolvency | 27971 |  |  |  | 36817 |
| Europe Core | 134016 |  |  |  | 136203 |
| Europe Insolvency | 24051 |  |  |  | 20277 |
| Total Cash Collections | $391657 |  |  |  | $451121 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total cash collections in Q4 2022 decreased 17.3%, or 13.2% on a constant currency-adjusted basis, to $391.7 million compared to $473.7 million the fourth quarter of 2021 ("Q4 2021"). A 34.1% decrease in U.S. call center and other cash collections and an 11.8% decrease in Europe cash collections were partially offset by a 27.9% increase in Other Americas and Australia cash collections. For the full year, total cash collections decreased $332.7 million compared to the full year of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total portfolio revenue in Q4 2022 was $219.0 million compared to $252.0 million in Q4 2021. For the full year, total portfolio revenue was $941.2 million compared to $1.1 billion in 2021.

**Expenses** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating expenses in Q4 2022 decreased $10.9 million, or 6.3%, compared to Q4 2021. The decrease was primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ a 24.3% decrease in other operating expenses primarily due to lower advertising costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ a 5.2% decrease in compensation and employee services expenses primarily due to the level and timing of compensation accruals in the prior year and lower collector compensation expenses in the U.S. call centers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the full year, operating expenses decreased $40.0 million to $680.7 million compared to $720.7 million in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effective tax rate for the full year was 23.8%.

**Portfolio Acquisitions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company purchased $288.1 million in portfolios of nonperforming loans in Q4 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At the end of Q4 2022, the Company had in place forward flow commitments<sup>1</sup> of up to $792.2 million, comprised of $461.1 million in the Americas and Australia and $331.1 million in Europe.

1. Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming portfolios at pre-established prices.

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Portfolio Purchase Source** | **2022** | **2022** | **2022** | **2022** | **2021** |
| **($ in thousands)** | **Q4** | **Q3** | **Q2** | **Q1** | **Q4** |
| Americas and Australia Core | $118581 | $100780 | $99962 | $90639 | $90263 |
| Americas Insolvency | 8967 | 8988 | 6369 | 9118 | 21183 |
| Europe Core | 140011 | 59426 | 123814 | 38764 | 60430 |
| Europe Insolvency | 20535 | 13910 | 1202 | 8929 | 29820 |
| Total Portfolio Acquisitions | $288094 | $183104 | $231347 | $147450 | $201696 |

---

**Conference Call Information** 

PRA Group, Inc. 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 and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 844-835-9982 in the U.S. or 412-317-5267 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until February 27, 2024, or call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 5441424 until March 6, 2023.

**About PRA Group**

As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

**About Forward-Looking Statements**

Statements made herein that are not historical in nature, including PRA Group, Inc.'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, Inc.'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 the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. 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, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'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, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'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 more 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 Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'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.**

**Consolidated Income Statements**

**(Amounts in thousands, except per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **(unaudited)** | **(unaudited)** | | |
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio income | $184921 | $211613 | $772315 | $875327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in expected recoveries | 34087 | 40400 | 168904 | 197904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio revenue | 219008 | 252013 | 941219 | 1073231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenue | 3843 | 4923 | 25305 | 22501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 222851 | 256936 | 966524 | 1095732 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation and employee services | 69922 | 73781 | 285537 | 301981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal collection fees | 9060 | 10998 | 38450 | 47206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal collection costs | 19063 | 17099 | 76757 | 78330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency fees | 16434 | 15995 | 63808 | 63140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside fees and services | 20866 | 21448 | 92355 | 92615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Communication | 7143 | 9716 | 39205 | 42755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rent and occupancy | 4299 | 4682 | 18589 | 18376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3859 | 3736 | 15243 | 15256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 12893 | 17032 | 50778 | 61077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 163539 | 174487 | 680722 | 720736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 59312 | 82449 | 285802 | 374996 |
| Other income and (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (34912) | (32156) | (130677) | (124143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gain/(loss) | 194 | (936) | 985 | (809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (572) | (12) | (1325) | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 24022 | 49345 | 154785 | 250326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 6960 | 12947 | 36787 | 54817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income | 17062 | 36398 | 117998 | 195509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment for net income attributable to noncontrolling interests | 1103 | 2122 | 851 | 12351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to PRA Group, Inc. | $15959 | $34276 | $117147 | $183158 |
| Net income per common share attributable to PRA Group, Inc.: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.41 | $0.80 | $2.96 | $4.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.41 | $0.79 | $2.94 | $4.04 |
| Weighted average number of shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 38978 | 43056 | 39638 | 44960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 39177 | 43562 | 39888 | 45330 |

---

------

**PRA Group, Inc.**

**Consolidated Balance Sheets**

**(Amounts in thousands)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **Assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $83376 | $87584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments | 79948 | 92977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance receivables, net | 3295008 | 3428285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 31774 | 41146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets, net | 56908 | 67760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 54506 | 56713 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 51645 | 54513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 435921 | 480263 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 86588 | 57002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $4175674 | $4366243 |
| **Liabilities and Equity** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $7329 | $3821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 111395 | 127802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 25693 | 19276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities, net | 42918 | 36630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 59384 | 61188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 112992 | 124623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 2494858 | 2608714 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 34355 | 59352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2888924 | 3041406 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, 100,000 shares authorized, 38,980 shares issued and outstanding at December 31, 2022; 100,000 shares authorized, 41,008 shares issued and outstanding at December 31, 2021 | 390 | 410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2172 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 1573025 | 1552845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (347926) | (266909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity - PRA Group, Inc. | 1227661 | 1286346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | 59089 | 38491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1286750 | 1324837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $4175674 | $4366243 |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* | **Select Expenses (Income)**<br>*Amounts in thousands, pre-tax* |
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** | **September 30,<br>2021** | **June 30,<br>2021** | **March 31,<br>2021** |
| Noncash interest expense - amortization of debt issuance costs | 2444 | 2555 | 2471 | 2627 | 2455 | 2406 | 2391 | 2256 |
| Change in fair value of derivatives | (3309) | (1042) | 1525 | 2726 | 3115 | 2982 | 2911 | 3102 |
| Amortization of intangibles | 73 | 73 | 77 | 83 | (269) | 104 | 105 | 181 |
| Stock-based compensation expense | 2206 | 3101 | 3849 | 3891 | 3470 | 4317 | 4040 | 4113 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* | **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* | **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* | **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* | **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* | **Purchase Price Multiples**<br>**as of December 31, 2022**<br>*Amounts in thousands* |
| **Purchase Period** | **Purchase Price** <sup>(2)(3)</sup> | **Total Estimated Collections** <sup>(4)</sup> | **Estimated Remaining Collections** <sup>(5)</sup> | **Current Purchase Price Multiple** | **Original Purchase Price Multiple** <sup>(6)</sup> |
| **Americas and Australia Core** | | | | | |
| 1996-2012 | $1541897 | $4798281 | $42398 | 311% | 238% |
| 2013 | 390826 | 905829 | 17025 | 232% | 211% |
| 2014 | 404117 | 872066 | 26384 | 216% | 204% |
| 2015 | 443114 | 905285 | 55162 | 204% | 205% |
| 2016 | 455767 | 1081751 | 93292 | 237% | 201% |
| 2017 | 532851 | 1208081 | 156253 | 227% | 193% |
| 2018 | 653975 | 1464612 | 225935 | 224% | 202% |
| 2019 | 581476 | 1294519 | 288207 | 223% | 206% |
| 2020 | 435668 | 948088 | 337470 | 218% | 213% |
| 2021 | 435846 | 811328 | 553876 | 186% | 191% |
| 2022 | 406082 | 726523 | 659290 | 179% | 179% |
| Subtotal | 6281619 | 15016363 | 2455292 |  |  |
| **Americas Insolvency** | **Americas Insolvency** |  |  |  |  |
| 1996-2012 | 1038222 | 2146283 | 285 | 207% | 165% |
| 2013 | 227834 | 355578 | 142 | 156% | 133% |
| 2014 | 148420 | 218674 | 392 | 147% | 124% |
| 2015 | 63170 | 87891 | 279 | 139% | 125% |
| 2016 | 91442 | 117449 | 612 | 128% | 123% |
| 2017 | 275257 | 355272 | 4406 | 129% | 125% |
| 2018 | 97879 | 137315 | 16401 | 140% | 127% |
| 2019 | 123077 | 168002 | 46299 | 137% | 128% |
| 2020 | 62130 | 89698 | 46704 | 144% | 136% |
| 2021 | 55187 | 72934 | 50407 | 132% | 136% |
| 2022 | 33442 | 46651 | 43464 | 139% | 139% |
| Subtotal | 2216060 | 3795747 | 209391 |  |  |
| Total Americas and Australia | 8497679 | 18812110 | 2664683 |  |  |
| **Europe Core** |  |  |  |  |  |
| 2012 | 20409 | 43718 |  | 214% | 187% |
| 2013 | 20334 | 26909 |  | 132% | 119% |
| 2014 <sup>(1)</sup> | 773811 | 2365317 | 406593 | 306% | 208% |
| 2015 | 411340 | 728250 | 153190 | 177% | 160% |
| 2016 | 333090 | 567637 | 189769 | 170% | 167% |
| 2017 | 252174 | 358816 | 119854 | 142% | 144% |
| 2018 | 341775 | 540246 | 220787 | 158% | 148% |
| 2019 | 518610 | 798429 | 373658 | 154% | 152% |
| 2020 | 324119 | 557983 | 305148 | 172% | 172% |
| 2021 | 412411 | 699520 | 498755 | 170% | 170% |
| 2022 | 359447 | 660999 | 546522 | 184% | 184% |
| Subtotal | 3767520 | 7347824 | 2814276 |  |  |
| **Europe Insolvency** | **Europe Insolvency** |  |  |  |  |
| 2014 <sup>(1)</sup> | 10876 | 18611 |  | 171% | 129% |
| 2015 | 18973 | 28950 | 125 | 153% | 139% |
| 2016 | 39338 | 56990 | 1500 | 145% | 130% |
| 2017 | 39235 | 50905 | 4673 | 130% | 128% |
| 2018 | 44908 | 52582 | 11526 | 117% | 123% |
| 2019 | 77218 | 110515 | 35296 | 143% | 130% |
| 2020 | 105440 | 153006 | 66106 | 145% | 129% |
| 2021 | 53230 | 71526 | 45007 | 134% | 134% |
| 2022 | 44604 | 61057 | 56551 | 137% | 137% |
| Subtotal | 433822 | 604142 | 220784 |  |  |
| Total Europe | 4201342 | 7951966 | 3035060 |  |  |
| Total PRA Group | $12699021 | $26764076 | $5699743 |  |  |

---

(1)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(2)Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.

(3)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.

(4)Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.

(5)Non-U.S. amounts are presented at the December 31, 2022 exchange rate.

(6)The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* | **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* | **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* | **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* | **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* | **Portfolio Financial Information**<br>**For the Year Ended December 31, 2022**<br>*Amounts in thousands* |
| **Purchase Period** | **Cash**<br>**Collections** <sup>(2)</sup> | **Portfolio Income** <sup>(2)</sup> | **Change in Expected Recoveries** <sup>(2)</sup> | **Total Portfolio Revenue** <sup>(2)</sup> | **Net Finance Receivables as of December 31, 2022** <sup>(3)</sup> |
| **Americas and Australia Core** | | | | | |
| 1996-2012 | $23470 | $12731 | $10208 | $22939 | $10343 |
| 2013 | 12526 | 4728 | 6476 | 11204 | 7438 |
| 2014 | 14998 | 6106 | 7433 | 13539 | 10541 |
| 2015 | 19542 | 12818 | (3411) | 9407 | 21250 |
| 2016 | 38350 | 28246 | (16381) | 11865 | 31464 |
| 2017 | 76269 | 41197 | (4578) | 36619 | 68396 |
| 2018 | 146106 | 55912 | 49297 | 105209 | 125682 |
| 2019 | 177717 | 76857 | 21872 | 98729 | 159586 |
| 2020 | 192001 | 88284 | 1918 | 90202 | 195163 |
| 2021 | 177340 | 112434 | (45560) | 66874 | 298645 |
| 2022 | 67735 | 44054 | 1401 | 45455 | 381914 |
| Subtotal | 946054 | 483367 | 28675 | 512042 | 1310422 |
| **Americas Insolvency** |  |  |  |  |  |
| 1996-2012 | 1066 | 572 | 494 | 1066 |  |
| 2013 | 535 | 232 | 305 | 537 |  |
| 2014 | 718 | 717 | (87) | 630 | 46 |
| 2015 | 596 | 165 | 354 | 519 | 140 |
| 2016 | 1810 | 299 | 932 | 1231 | 481 |
| 2017 | 20751 | 2489 | 1941 | 4430 | 3970 |
| 2018 | 24627 | 3282 | 3301 | 6583 | 15207 |
| 2019 | 37815 | 5933 | 4770 | 10703 | 42207 |
| 2020 | 20361 | 5830 | 3386 | 9216 | 39299 |
| 2021 | 17904 | 6699 | (753) | 5946 | 40900 |
| 2022 | 3186 | 1778 | 1239 | 3017 | 32797 |
| Subtotal | 129369 | 27996 | 15882 | 43878 | 175047 |
| Total Americas and Australia | 1075423 | 511363 | 44557 | 555920 | 1485469 |
| **Europe Core** |  |  |  |  |  |
| 2012 | 870 |  | 871 | 871 |  |
| 2013 | 481 |  | 481 | 481 |  |
| 2014 <sup>(1)</sup> | 122232 | 73843 | 41828 | 115671 | 114254 |
| 2015 | 40701 | 19278 | 7740 | 27018 | 83984 |
| 2016 | 36912 | 17962 | 2616 | 20578 | 112355 |
| 2017 | 25151 | 8750 | 3081 | 11831 | 82457 |
| 2018 | 50702 | 17202 | 8425 | 25627 | 146171 |
| 2019 | 89820 | 27307 | 18949 | 46256 | 255401 |
| 2020 | 69045 | 26602 | 5300 | 31902 | 188109 |
| 2021 | 89938 | 39653 | 2889 | 42542 | 301235 |
| 2022 | 33867 | 12051 | 5727 | 17778 | 341819 |
| Subtotal | 559719 | 242648 | 97907 | 340555 | 1625785 |
| **Europe Insolvency** |  |  |  |  |  |
| 2014 <sup>(1)</sup> | 238 | 14 | 211 | 225 |  |
| 2015 | 649 | 182 | (4) | 178 | 104 |
| 2016 | 2710 | 634 | 104 | 738 | 1131 |
| 2017 | 6499 | 593 | 1371 | 1964 | 4325 |
| 2018 | 9828 | 1218 | 863 | 2081 | 10512 |
| 2019 | 21020 | 3458 | 7268 | 10726 | 30837 |
| 2020 | 34086 | 6011 | 14364 | 20375 | 57627 |
| 2021 | 14417 | 4637 | 1312 | 5949 | 36707 |
| 2022 | 4452 | 1557 | 951 | 2508 | 42511 |
| Subtotal | 93899 | 18304 | 26440 | 44744 | 183754 |
| Total Europe | 653618 | 260952 | 124347 | 385299 | 1809539 |
| Total PRA Group | $1729041 | $772315 | $168904 | $941219 | $3295008 |

---

(1)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.

(3)Non-U.S. amounts are presented at the December 31, 2022 exchange rate.

------

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* | **Cash Collections by Year, By Year of Purchase** <sup>(1)</sup><br>**as of December 31, 2022** <br>*Amounts in millions* |
| | | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** | **Cash Collections** |
|<br>**Purchase Period** |<br>**Purchase Price** <sup>(3)(4)</sup> | **1996-2012** | **2013** | **2014** | **2015** | **2016** | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** | **Total** |
| **Americas and Australia Core** | **Americas and Australia Core** | **Americas and Australia Core** |  |  |  |  |  |  |  |  |  |  |  |
| 1996-2012 | $1541.9 | $2962.4 | $554.9 | $412.5 | $280.4 | $179.0 | $118.0 | $83.8 | $62.9 | $41.5 | $29.8 | $23.5 | $4748.7 |
| 2013 | 390.8 |  | 101.6 | 247.8 | 194.0 | 120.8 | 78.9 | 56.4 | 36.9 | 23.2 | 16.7 | 12.5 | 888.8 |
| 2014 | 404.1 |  |  | 92.7 | 253.4 | 170.3 | 114.2 | 82.2 | 55.3 | 31.9 | 22.3 | 15.0 | 837.3 |
| 2015 | 443.1 |  |  |  | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 34.9 | 19.5 | 853.1 |
| 2016 | 455.8 |  |  |  |  | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 74.2 | 38.4 | 948.9 |
| 2017 | 532.9 |  |  |  |  |  | 107.3 | 278.7 | 256.5 | 192.5 | 130.0 | 76.3 | 1041.3 |
| 2018 | 654.0 |  |  |  |  |  |  | 122.7 | 361.9 | 337.7 | 239.9 | 146.1 | 1208.3 |
| 2019 | 581.5 |  |  |  |  |  |  |  | 143.8 | 349.0 | 289.8 | 177.7 | 960.3 |
| 2020 | 435.7 |  |  |  |  |  |  |  |  | 133.0 | 284.3 | 192.0 | 609.3 |
| 2021 | 435.8 |  |  |  |  |  |  |  |  |  | 85.0 | 177.3 | 262.3 |
| 2022 | 406.1 |  |  |  |  |  |  |  |  |  |  | 67.8 | 67.8 |
| Subtotal | 6281.7 | 2962.4 | 656.5 | 753.0 | 844.8 | 837.2 | 860.8 | 945.0 | 1141.5 | 1271.9 | 1206.9 | 946.1 | 12426.1 |
| **Americas Insolvency** | **Americas Insolvency** | **Americas Insolvency** |  |  |  |  |  |  |  |  |  |  |  |
| 1996-2012 | 1038.2 | 1021.6 | 417.3 | 338.8 | 208.3 | 105.3 | 37.7 | 8.3 | 4.0 | 2.2 | 1.4 | 1.1 | 2146.0 |
| 2013 | 227.8 |  | 52.5 | 82.6 | 81.7 | 63.4 | 47.8 | 21.9 | 2.9 | 1.3 | 0.8 | 0.5 | 355.4 |
| 2014 | 148.4 |  |  | 37.0 | 50.9 | 44.3 | 37.4 | 28.8 | 15.8 | 2.2 | 1.1 | 0.7 | 218.2 |
| 2015 | 63.2 |  |  |  | 3.4 | 17.9 | 20.1 | 19.8 | 16.7 | 7.9 | 1.3 | 0.6 | 87.7 |
| 2016 | 91.4 |  |  |  |  | 18.9 | 30.4 | 25.0 | 19.9 | 14.4 | 7.4 | 1.8 | 117.8 |
| 2017 | 275.3 |  |  |  |  |  | 49.1 | 97.3 | 80.9 | 58.8 | 44.0 | 20.8 | 350.9 |
| 2018 | 97.9 |  |  |  |  |  |  | 6.7 | 27.4 | 30.5 | 31.6 | 24.6 | 120.8 |
| 2019 | 123.1 |  |  |  |  |  |  |  | 13.4 | 31.4 | 39.1 | 37.8 | 121.7 |
| 2020 | 62.1 |  |  |  |  |  |  |  |  | 6.5 | 16.1 | 20.4 | 43.0 |
| 2021 | 55.2 |  |  |  |  |  |  |  |  |  | 4.5 | 17.9 | 22.4 |
| 2022 | 33.4 |  |  |  |  |  |  |  |  |  |  | 3.2 | 3.2 |
| Subtotal | 2216.0 | 1021.6 | 469.8 | 458.4 | 344.3 | 249.8 | 222.5 | 207.8 | 181.0 | 155.2 | 147.3 | 129.4 | 3587.1 |
| Total Americas and Australia | 8497.7 | 3984.0 | 1126.3 | 1211.4 | 1189.1 | 1087.0 | 1083.3 | 1152.8 | 1322.5 | 1427.1 | 1354.2 | 1075.5 | 16013.2 |
| **Europe Core** | **Europe Core** |  |  |  |  |  |  |  |  |  |  |  |  |
| 2012 | 20.4 | 11.6 | 9.0 | 5.6 | 3.2 | 2.2 | 2.0 | 2.0 | 1.5 | 1.2 | 1.2 | 0.9 | 40.4 |
| 2013 | 20.3 |  | 7.1 | 8.5 | 2.3 | 1.3 | 1.2 | 1.3 | 0.9 | 0.7 | 0.7 | 0.5 | 24.5 |
| 2014 <sup>(2)</sup> | 773.8 |  |  | 153.2 | 292.0 | 246.4 | 220.8 | 206.3 | 172.9 | 149.8 | 149.2 | 122.2 | 1712.8 |
| 2015 | 411.3 |  |  |  | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 51.4 | 40.7 | 525.7 |
| 2016 | 333.1 |  |  |  |  | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 46.7 | 36.9 | 381.8 |
| 2017 | 252.2 |  |  |  |  |  | 17.9 | 56.0 | 44.1 | 36.1 | 34.8 | 25.2 | 214.1 |
| 2018 | 341.8 |  |  |  |  |  |  | 24.3 | 88.7 | 71.2 | 69.1 | 50.7 | 304.0 |
| 2019 | 518.6 |  |  |  |  |  |  |  | 47.9 | 125.7 | 121.4 | 89.8 | 384.8 |
| 2020 | 324.1 |  |  |  |  |  |  |  |  | 32.4 | 91.7 | 69.0 | 193.1 |
| 2021 | 412.4 |  |  |  |  |  |  |  |  |  | 48.4 | 89.9 | 138.3 |
| 2022 | 359.5 |  |  |  |  |  |  |  |  |  |  | 33.9 | 33.9 |
| Subtotal | 3767.5 | 11.6 | 16.1 | 167.3 | 343.3 | 390.6 | 407.0 | 443.4 | 480.1 | 519.7 | 614.6 | 559.7 | 3953.4 |
| **Europe Insolvency** | **Europe Insolvency** | **Europe Insolvency** |  |  |  |  |  |  |  |  |  |  |  |
| 2014 <sup>(2)</sup> | 10.9 |  |  |  | 4.3 | 3.9 | 3.2 | 2.6 | 1.5 | 0.8 | 0.3 | 0.3 | 16.9 |
| 2015 | 19.0 |  |  |  | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.6 | 0.6 | 26.2 |
| 2016 | 39.3 |  |  |  |  | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 6.0 | 2.7 | 59.1 |
| 2017 | 39.2 |  |  |  |  |  | 1.2 | 7.9 | 9.2 | 9.8 | 9.4 | 6.5 | 44.0 |
| 2018 | 44.9 |  |  |  |  |  |  | 0.6 | 8.4 | 10.3 | 11.7 | 9.8 | 40.8 |
| 2019 | 77.2 |  |  |  |  |  |  |  | 5.1 | 21.1 | 23.9 | 21.0 | 71.1 |
| 2020 | 105.4 |  |  |  |  |  |  |  |  | 6.1 | 34.6 | 34.1 | 74.8 |
| 2021 | 53.3 |  |  |  |  |  |  |  |  |  | 5.4 | 14.4 | 19.8 |
| 2022 | 44.6 |  |  |  |  |  |  |  |  |  |  | 4.5 | 4.5 |
| Subtotal | 433.8 |  |  |  | 7.3 | 14.5 | 22.1 | 28.8 | 38.8 | 58.9 | 92.9 | 93.9 | 357.2 |
| Total Europe | 4201.3 | 11.6 | 16.1 | 167.3 | 350.6 | 405.1 | 429.1 | 472.2 | 518.9 | 578.6 | 707.5 | 653.6 | 4310.6 |
| Total PRA Group | $12699.0 | $3995.6 | $1142.4 | $1378.7 | $1539.7 | $1492.1 | $1512.4 | $1625.0 | $1841.4 | $2005.7 | $2061.7 | $1729.1 | $20323.8 |

---

(1)Non-U.S. amounts are presented using the average exchange rates during the cash collection period.

(2)Includes finance receivables portfolios that were acquired through the acquisition of Aktiv Kapital AS in 2014.

(3)Includes the nonperforming loan portfolios that were acquired through our acquisitions.

(4)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.

------

**Use of Non-GAAP Financial Measures**

PRA Group, Inc. reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internally to evaluate the Company's performance and to set performance goals. Adjusted EBITDA is calculated as net income attributable to PRA Group, Inc. plus income tax expense; less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; plus adjustment for net income attributable to noncontrolling interests; and plus recoveries applied to negative allowance less changes in expected recoveries. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. PRA Group, Inc. presents Adjusted EBITDA because the Company considers it an important supplemental measure of operations and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of operations and financial performance and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Set forth below is a reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the years ended December 31, 2022 and 2021. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.

---

| | | |
|:---|:---|:---|
| **Reconciliation of Non-GAAP Financial Measures** | **Reconciliation of Non-GAAP Financial Measures** | **Reconciliation of Non-GAAP Financial Measures** |
| Adjusted EBITDA for PRA Group ($ in millions) | December 31, 2022 | December 31, 2021 |
| &nbsp;&nbsp;&nbsp;Net income attributable to PRA Group, Inc. | $117 | $183 |
| &nbsp;&nbsp;<u>Adjustments:</u> |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense | 37 | 55 |
| &nbsp;&nbsp;&nbsp;Foreign exchange (gains)/losses | (1) | 1 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | 131 | 124 |
| &nbsp;&nbsp;&nbsp;Other expense | 1 |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 15 | 15 |
| &nbsp;&nbsp;&nbsp;Adjustment for net income attributable to noncontrolling interests | 1 | 12 |
| &nbsp;&nbsp;&nbsp;Recoveries applied to negative allowance less Changes in expected recoveries | 806 | 988 |
| Adjusted EBITDA | $1107 | $1378 |

---

Additionally, the Company evaluates its business using certain ratios that use Adjusted EBITDA. Debt to Adjusted EBITDA is calculated by dividing borrowings by Adjusted EBITDA. The following table reflects the Company's Debt to Adjusted EBITDA for the years ended December 31, 2022 and 2021 (amounts in millions):

---

| | | |
|:---|:---|:---|
| **Debt to Adjusted EBITDA** | **Debt to Adjusted EBITDA** | **Debt to Adjusted EBITDA** |
|  | December 31, 2022 | December 31, 2021 |
| Borrowings | $2495 | $2609 |
| Adjusted EBITDA | 1107 | 1378 |
| Debt to Adjusted EBITDA | 2.25 | 1.89 |

---

------

**Investor Contact:**

Najim Mostamand, CFA

Vice President, Investor Relations

(757) 431-7913

<u>IR@PRAGroup.com</u>

**News Media Contact:**

Elizabeth Kersey

Senior Vice President, Communications and Public Policy

(757) 431-3398

<u>Elizabeth.Kersey@PRAGroup.com</u>

<br>