Loading...
•
Mar 31, 2020
Pra Group Q1 2020 Earnings Report
Reported strong first quarter performance with record cash collections and increased income from operations.
Key Takeaways
PRA Group reported a strong start to 2020, with record global cash collections of $494.6 million, a 7% increase year-over-year, and net income attributable to PRA Group, Inc. rising to $19.1 million from $15.2 million in the first quarter of 2019.
Global cash collections reached a record $494.6 million, up 7% from Q1 2019.
Estimated Remaining Collections (ERC) increased by $273.8 million to $6.5 billion, a 4% rise compared to Q1 2019.
Total portfolio purchases amounted to $273.2 million.
Income from operations increased by 24% to $60.5 million compared to the first quarter of 2019.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PRA Group did not provide specific forward guidance in this earnings report. However, they did state that for the month of April, total cash collections increased on a constant currency basis compared to April of 2019, trending ahead of the cash forecast revised for the impact of COVID-19.
Positive Outlook
- Collector attendance rates in the U.S. returning to pre-COVID-19 levels.
- Continued portfolio acquisitions.
- Consumer payment trends.
- Relaxation of restrictions in some localities globally.
- Total cash collections increased on a constant currency basis compared to April of 2019, trending ahead of the cash forecast revised for the impact of COVID-19.
Challenges Ahead
- COVID-19 impacted cash production through reduced workforce and decreased collection rates.
- Call centers remain open, with the exception of Henderson, Nevada.
- The strengthening U.S. Dollar caused a $239.0 million decrease in ERC compared to year-end 2019.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...