PRA Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>PRA Group Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and operations.</b>

AI Summary

PRA GROUP INC (PRAA) filed a Annual Report (10-K) with the SEC on February 29, 2024. PRA Group Inc. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 120 Corporate Blvd Ste 100, Norfolk, VA 23502. PRA Group Inc. was formerly known as Portfolio Recovery Associates Inc., with a name change effective September 3, 2002. The filing was made as of February 29, 2024.

Why It Matters

For investors and stakeholders tracking PRA GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of PRA Group's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. As a publicly traded company, the timely filing of the 10-K is a regulatory requirement that ensures transparency and provides essential information for market participants to make informed investment decisions.

Risk Assessment

Risk Level: — PRA GROUP INC shows moderate risk based on this filing. The filing is a standard annual report (10-K), which inherently contains a broad range of financial and operational information. Specific risks and their impact are detailed within the full report, but the nature of a 10-K suggests a medium level of inherent risk due to the complexity of financial reporting and the business operations of a financial services company.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand PRA Group's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-29 — Filing Date (Date the report was filed)
• 2023-01-01 — Report Start Date (Fiscal year start date)

Key Players & Entities

• PRA GROUP INC (company) — Filer name
• Portfolio Recovery Associates Inc. (company) — Former company name
• Norfolk, VA (location) — Business address city and state
• 0001185348-24-000012 (filing_id) — Accession number

FAQ

Industry Context

PRA Group Inc. operates in the short-term business credit institutions sector, focusing on acquiring and managing distressed consumer and commercial debt portfolios.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and debt levels.
2. Review the 'Risk Factors' section for potential challenges and uncertainties affecting the company.
3. Compare key financial metrics with previous years to identify performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the annual financial statements.
• 2024-02-29: Filing Date — Indicates when the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available within this data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share PRAA NASDAQ Global
• $22.85 — 2023 w as $ 885,369,133 base d on t he $22.85 c losing price as reported on the NASDA

Filing Documents

• praa-20231231.htm (10-K) — 2595KB
• praa-ex211_20231231x10k.htm (EX-21.1) — 10KB
• praa-ex231_20231231x10k.htm (EX-23.1) — 7KB
• praa-ex232_20231231x10k.htm (EX-23.2) — 2KB
• praa-ex311_20231231x10k.htm (EX-31.1) — 15KB
• praa-ex312_20231231x10k.htm (EX-31.2) — 15KB
• praa-ex321_20231231x10k.htm (EX-32.1) — 11KB
• ex97_clawbackpolicy.htm (EX-97) — 68KB
• praa-20231231_g1.jpg (GRAPHIC) — 108KB
• praa-20231231_g2.jpg (GRAPHIC) — 83KB
• praa-20231231_g3.jpg (GRAPHIC) — 91KB
• praa-20231231_g4.jpg (GRAPHIC) — 101KB
• 0001185348-24-000012.txt (&nbsp;) — 12716KB
• praa-20231231.xsd (EX-101.SCH) — 70KB
• praa-20231231_cal.xml (EX-101.CAL) — 119KB
• praa-20231231_def.xml (EX-101.DEF) — 431KB
• praa-20231231_lab.xml (EX-101.LAB) — 924KB
• praa-20231231_pre.xml (EX-101.PRE) — 682KB
• praa-20231231_htm.xml (XML) — 1736KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17

Cybersecurity

Item 1C. Cybersecurity 17

Properties

Item 2. Properties 18

Legal Proceedings

Item 3. Legal Proceedings 18

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20

[Reserved]

Item 6. [Reserved] 21

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 41

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 42 Reports of Independent Registered Public Accounting Firms 43 Consolidated Balance Sheets 47 Consolidated Income Statements 48 Consolidated Statements of Comprehensive Income 49 Consolidated Statements of Changes in Equity 50 Consolidated Statements of Cash Flows 51

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 52 1 – General and Summary of Significant Accounting Policies 52 2 – Finance Receivables, net 58 3 – Investments 60 4 – Goodwill 61 5 – Leases 61 6 – Property and Equipment, net 62 7 – Borrowings 63 8 - Derivatives 67 9 – Fair Value 68 10 – Accumulated Other Comprehensive Loss 70 11 – Share-Based Compensation 71 12 – Earnings per Share 73 13 – Income Taxes 73 14 – Commitments and Contingencies 75 15 – Retirement Plans 76

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 77

Controls and Procedures

Item 9A. Controls and Procedures 77

Other Information

Item 9B. Other Information 79

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 79 2 Table of Contents continued Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 79

Executive Compensation

Item 11. Executive Compensation 79

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 79

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 79 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 79

Form 10-K Summary

Item 16. Form 10-K Summary 81 Signatures 82 3 All references in this Annual Report on Form 10-K ("Form 10-K") to "PRA Group," "our," "we," "us," the "Company" or similar terms are to PRA Group, Inc. and its subsidiaries.

Forward-Looking Statements

Forward-Looking Statements: This report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are forward-looking statements, including statements regarding cash collection trends, operating cost trends, liquidity and capital needs and other statements of expectations, beliefs, future plans, strategies and anticipated events or trends. Our results could differ materially from those expressed or implied by such forward-looking statements, or our forward-looking statements could be wrong, as a result of risks, uncertainties and assumptions including the following: a deterioration in the economic or inflationary environment in the markets in which we operate; our inability to replace our portfolios of nonperforming loans with additional portfolios sufficient to operate efficiently and profitably and/or purchase nonperforming loans at appropriate prices; our inability to collect sufficient amounts on our nonperforming loans to fund our operations, including as a result of restrictions imposed by local, state, federal and international laws and regulations; a disruption or failure by any of our third-party service providers to meet their obligations and our service level expectations; our inability to successfully implement our strategic and operational initiatives in our U.S. business; changes in accounting standards and their interpretations; the impact of a disease outbreak on the markets in which we operate and our inability to successfully manage the challenges associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; the occurrence of goodwill impairment charges; loss contingency accruals that are inadequate to cover actual losses; our inability to manage risks associated with our international operations; changes in local, state, federal or international laws or the interpretation of these laws, in

Business

Item 1. Business. General PRA Group Inc. is a global financial and business services company with operations based primarily in the Americas and Europe, and to a lesser extent, Australia. Our primary business is the purchase, collection and management of portfolios of nonperforming loans. The accounts we purchase are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail and auto finance companies. We purchase portfolios of nonperforming loans at a discount in two broad categories: Core and Insolvency. Our Core operation specializes in purchasing and collecting nonperforming loans, which we purchase since the credit originators have chosen not to pursue, or have been unsuccessful in, collecting the full balance owed. Our Insolvency operation consists primarily of purchasing and collecting on nonperforming loans where the customer is involved in a bankruptcy proceeding, or the equivalent thereof, in certain European countries. We also provide fee-based services on class action claims recoveries in the United States ("U.S."). Portfolio Acquisitions To identify purchasing opportunities, we maintain an extensive marketing effort with our global investment team contacting known and prospective sellers of nonperforming loans. From these sellers, we acquire a variety of nonperforming loans, including Visa and Mastercard general purpose credit card accounts, private label credit card accounts, personal loans, automobile loans and small business loans. Sellers of nonperforming loans include major banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies and other credit originators. The price at which we purchase portfolios depends on a number of factors, including the age since charge-off of the portfolio, whether it is a Core or Insolvency portfolio, geographic region, the seller's selection criteria, our historical collections experience with a cert

Risk Factors

Item 1A. Risk Factors. You should carefully read the following discussion of material factors, events and uncertainties when evaluating our business and the forward-looking information contained in this Form 10-K. The events and consequences discussed in these risk factors could materially and adversely affect our business, operating results, liquidity and financial condition. While we believe we have identified and discussed below the material risk factors affecting our business, these risk factors do not identify all the risks we face, and there may be additional risks and uncertainties that we do not presently know or that we do not currently believe to be material that may have an adverse effect on our business, performance or financial conditi

View Full Filing

View this 10-K filing on SEC EDGAR