PRA Group Reports Third Quarter 2015 Results

NORFOLK, Va., Nov. 5, 2015 (GLOBE NEWSWIRE) — PRA Group (Nasdaq:PRAA), a global leader in acquiring nonperforming loans, today reported its financial results for the third quarter of 2015. The company reported diluted earnings per share of $0.36 and non-GAAP diluted earnings per share of $0.99 for the third quarter of 2015. Non-GAAP financial results are presented in constant currency with the third quarter of 2014 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.

The Company also announced that its Board of Directors authorized a new $125 million share repurchase program. During the third quarter of 2015, the Company repurchased $7.7 million, or approximately 133,000 shares, of common stock.

Third Quarter Highlights

  • Cash collections of $380.8 million, up 2% from the third quarter of 2014. Non-GAAP cash collections were $392.1 million, an increase of 5% over the prior year period.
  • Revenues of $229.4 million and non-GAAP revenues of $235.3 million.
  • Income from operations of $54.1 million and non-GAAP income from operations of $87.0 million.
  • Net income of $17.4 million and non-GAAP net income of $48.0 million.
  • Return on average equity, annualized, of 7.8% and non-GAAP return on average equity, annualized of 21.4%.
  • $344.6 million in investments.

“Many of the same trends that have been prevalent throughout the last year continued in the third quarter. Our operational performance remained solid, cash collections in the U.S. call centers continued to grow dramatically, up over 27% year over year, and investment was formidable at $345 million in the quarter,” said Steve Fredrickson, chairman and chief executive officer, PRA Group. “Additionally, the original underwritten portfolio associated with the acquisition of Aktiv Kapital continues to perform better than expected and we continue to invest a substantial amount of capital in European markets. The progress we have made in the last year and the performance of our European team has exceeded our expectations.”

REVENUES

  • Total revenues of $229.4 million in the third quarter included finance receivables income net of principal amortization and net allowance charges. Non-GAAP total revenues were $235.3 million versus $239.0 million in year-ago quarter.
  • Cash collections increased 2% in the third quarter from the year-ago quarter to $380.8 million. Non-GAAP cash collections were $392.1 million, an increase of 5% over the year-ago quarter. Both GAAP and non-GAAP cash collections are reported below and included collections from these finance receivables sources:
Cash Collection Source ($ in thousands) Q3-2015 Q2-2015 Q1-2015 Q4-2014 Q3-2014
Americas-Core $ 210,725 $ 218,838 $ 219,371 $ 185,921 $ 189,027
Americas-Insolvency 81,865 92,974 95,533 103,104  110,544
Europe-Core  85,635  76,602  83,876  84,398  73,172
Europe-Insolvency  2,528  1,210  967  5  — 
Total Cash Collections  $ 380,753  $ 389,624  $ 399,747  $ 373,428  $ 372,743
           
Cash Collection Source -Constant Currency          
Adjusted ($ in thousands) Q3-2015* Q3-2014      
Americas-Core  $ 211,527  $ 189,027      
Americas-Insolvency  81,865  110,544      
Europe-Core  96,180  73,172      
Europe-Insolvency  2,528  —       
Total Cash Collections  $ 392,100  $ 372,743      
           
*Amounts for Q3-2015 have been adjusted to reflect what the cash collection totals would have been had the foreign currency exchange rates from Q3-2014 remained constant through Q3-2015.
  • Principal amortization of finance receivables in the third quarter was $172.6 million or 45.3% of cash collections, compared with 39.8% in the year-ago quarter.   Principal amortization included a net allowance charge of $11.3 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance reversal of $1.7 million recorded in the year-ago quarter. Non-GAAP principal amortization was $178.0 million in the third quarter of 2015.
  • Revenues in the third quarter also included income from PRA Group’s fee-based businesses of $17.8 million, compared with $12.8 million in the year-ago quarter, and other income of $3.4 million compared with $1.9 million in the year-ago quarter.     

EXPENSES AND OPERATING INCOME

  • Operating expenses were $175.3 million in the third quarter, compared with $150.8 million a year ago. Non-GAAP operating expenses were $148.3 million versus $144.0 million a year ago, an increase of 3%.   
  • Operating income in the third quarter was $54.1 million, compared with $88.2 million in the year-ago quarter. Non-GAAP operating income was $87.0 million in the third quarter versus $95.0 million a year ago. The operating margin was 23.6% in the third quarter and the non-GAAP operating margin was 37.0%.   
  • The provision for income taxes was $16.6 million in the third quarter compared to $28.5 million in the year-ago quarter. PRA Group’s provision for income taxes was 48.6% of income before taxes in the third quarter, compared with 35.8% in the year-ago quarter. The third quarter of 2015 included some unusual non-cash, one-time tax items of $2.5 million. Non-GAAP provision for income taxes in the third quarter was $26.0 million versus $33.4 million a year ago.    

PORTFOLIO ACQUISITIONS

  • PRA Group invested $344.6 million in new finance receivables in the third quarter. 
           
Portfolio Purchase Source 
($ in thousands)
Q32015 Q22015 Q12015 Q42014 Q32014
Americas-Core  $ 90,912  $ 98,317  $ 138,498  $ 119,714  $ 118,018
Americas-Insolvency  9,300  19,111  16,437  24,949  38,535
Europe-Core (1)  240,385  88,499  21,579  123,194  734,803
Europe-Insolvency  3,959  2,450  8,510  11,625  — 
Total Portfolio Purchasing  $ 344,556  $ 208,377  $ 185,024  $ 279,482  $ 891,356
           
           
(1) Excludes the $27.9 million and $34.7 million investment in the securitized fund in Poland during the three months ended March 31, 2015 and December 31, 2014, respectively.

BALANCE SHEET

  • Borrowings totaled $1,654.5 million as of September 30, 2015, consisting of $478.3 million drawn on the domestic revolver, $568.5 million drawn on the multi-currency revolver, $264.0 million in convertible senior notes, $173.8 million in other long-term debt and $169.9 million in seller financing. Total borrowings were $1,425.4 million as of September 30, 2014. 
  • Cash and cash equivalents were $69.1 million as of September 30, 2015, compared with $70.3 million as of September 30, 2014. 
  • Net deferred tax liabilities were $267.6 million as of September 30, 2015, compared with $237.2 million as of September 30, 2014. 
  • Stockholders’ equity was $863.5 million as of September 30, 2015, compared with $959.9 million as of September 30, 2014.   

Conference Call Information

PRA Group will hold a conference call today at 6:00 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 71196657. A question-and-answer session on the call will be open only to analysts or investors. To listen to a replay of the call until November 11, 2015, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 71196657.                        

About PRA Group

As a global leader in acquiring nonperforming loans, PRA Group returns capital to global 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 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, filed with the Securities and Exchange Commission and available through PRA Group’s website, which 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
September 30,
Nine Months Ended
September 30,
  2015 2014 2015 2014
         
Revenues:        
Income recognized on finance receivables, net $ 208,184 $ 224,326 $ 656,651 $ 584,814
Fee income 17,803 12,757 44,734 42,875
Other revenue 3,443 1,890 10,448 2,549
         
Total revenues 229,430 238,973 711,833 630,238
         
Operating expenses:        
Compensation and employee services 66,084 65,237 199,675 169,083
Legal collection fees 13,715 13,778 41,520 35,982
Legal collection costs 18,879 20,367 59,289 72,329
Agent fees 7,961 5,988 24,006 8,902
Outside fees and services 12,583 17,210 37,846 40,114
Communication 8,021 8,642 26,512 25,370
Rent and occupancy 3,684 3,283 10,723 8,032
Depreciation and amortization 5,413 4,949 14,939 13,107
Other operating expenses 38,963 11,330 58,151 25,111
         
Total operating expenses 175,303 150,784 472,661 398,030
         
Income from operations 54,127 88,189 239,172 232,208
         
Other income and (expense):        
Interest expense (16,787) (11,807) (45,015) (21,733)
Net foreign currency transaction gain/(loss) (3,160) 3,258 7,213 (2,931)
         
Income before income taxes 34,180 79,640 201,370 207,544
         
Provision for income taxes 16,597 28,473 74,227 78,030
         
Net income $ 17,583 $ 51,167 $ 127,143 $ 129,514
         
Less net income attributable to noncontrolling interest 187 187
         
Net income attributable to PRA Group, Inc. $ 17,396 $ 51,167 $ 126,956 $ 129,514
         
Net income per common share:        
Basic  $ 0.36  $ 1.02  $ 2.62  $ 2.59
Diluted  $ 0.36  $ 1.01  $ 2.61  $ 2.57
         
Weighted average number of shares outstanding:        
Basic 48,265 50,075 48,438 50,023
Diluted 48,498 50,439 48,693 50,413
 
PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)
     
ASSETS September 30,
2015
December 31,
2014
     
Cash and cash equivalents $ 69,111 $ 39,661
Investments 75,985 89,703
Finance receivables, net 2,167,178 2,001,790
Other receivables, net 24,648 12,959
Income taxes receivable 12,840
Net deferred tax asset 831 6,126
Property and equipment, net 46,105 48,258
Goodwill 502,383 527,445
Intangible assets, net 24,458 10,933
Other assets 61,011 41,876
     
Total assets $ 2,984,550 $ 2,778,751
     
LIABILITIES AND EQUITY    
     
Liabilities:    
Accounts payable $ 3,693 $ 4,446
Accrued expenses 97,123 89,361
Income taxes payable 9,534 11,020
Other liabilities 4,460 5,962
Net deferred tax liability 267,587 255,587
Interest bearing deposits 46,277 27,704
Borrowings 1,654,457 1,482,456
     
Total liabilities 2,083,131 1,876,536
     
Stockholders’ equity:    
Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares – 0
Common stock, par value $0.01, 100,000 authorized shares, 48,204 issued and outstanding shares at September 30, 2015, and 49,577 issued and outstanding shares at December 31, 2014 482 496
Additional paid-in capital 31,344 111,659
Retained earnings 1,032,966 906,010
Accumulated other comprehensive (loss) (201,275) (115,950)
Total stockholders’ equity – PRA Group, Inc. 863,517 902,215
Noncontrolling interest 37,902
Total equity 901,419 902,215
Total liabilities and total equity $ 2,984,550 $ 2,778,751
PRA Group, Inc.
FINANCIAL HIGHLIGHTS
  As of and for the 
Three Months Ended September 30,
As of and for the 
Nine Months Ended September 30,
  2015 2014 Change 2015 2014 Change
EARNINGS (in thousands)            
Income recognized on finance receivables, net  $ 208,184  $ 224,326 -7%  $ 656,651  $ 584,814 12%
Fee income  17,803  12,757 40%  44,734  42,875 4%
Other revenue  3,443  1,890 82%  10,448  2,549 310%
Total revenues  229,430  238,973 -4%  711,833  630,238 13%
Operating expenses  175,303  150,784 16%  472,661  398,030 19%
Income from operations  54,127  88,189 -39%  239,172  232,208 3%
Net interest expense  16,787  11,807 42%  45,015  21,733 107%
Net income  17,583  51,167 -66%  127,143  129,514 -2%
Net income attributable to PRA Group, Inc.  17,396  51,167 -66%  126,956  129,514 -2%
             
PERIOD-END BALANCES (in thousands)            
Cash and cash equivalents  $ 69,111  $ 70,300 -2%  $ 69,111  $ 70,300 -2%
Finance receivables, net  2,167,178  1,913,710 13%  2,167,178  1,913,710 13%
Goodwill and intangible assets, net  502,383  606,716 -17%  502,383  606,716 -17%
Total assets  2,984,550  2,757,429 8%  2,984,550  2,757,429 8%
Borrowings  1,654,457  1,425,409 16%  1,654,457  1,425,409 16%
Total liabilities  2,083,131  1,797,569 16%  2,083,131  1,797,569 16%
Total equity – PRA Group, Inc.  863,517  959,860 -10% 863,517  959,860 -10%
             
FINANCE RECEIVABLE INCOME (dollars in thousands)            
Cash collections  $ 380,753  $ 372,743 2%  $ 1,170,124  $ 1,005,384 16%
Cash collections on fully amortized pools  11,453  17,105 -33%  43,620  50,564 -14%
Principal amortization without allowance (reversals)/charges  161,234  150,115 7%  495,623  426,520 16%
Allowance (reversal)/charge  11,335  (1,698) -768%  17,850  (5,950) -400%
Principal amortization with allowance (reversals)/charges  172,569  148,417 16%  513,473  420,570 22%
Principal amortization w/ allowance charges as % of cash collections:            
Including fully amortized pools 45.3% 39.8% 14% 43.9% 41.8% 5%
Excluding fully amortized pools 46.7% 41.7% 12% 45.6% 44.0% 3%
Allowance (reversal)/charge to period-end net finance receivables 0.5% (0.1%) -689% 0.8% (0.3%) -365%
             
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)            
Purchase price – Americas core  $ 90,912  $ 118,018 -23%  $ 327,727  $ 289,007 13%
Purchase price – Americas insolvency  9,300  38,535 -76%  44,848  126,725 -65%
Purchase price – Europe core  240,385  734,803 -67%  350,463  737,550 -52%
Purchase price – Europe insolvency  3,959  — 100%  14,919  — 100%
Purchase price – total  344,556  891,356 -61%  737,957  1,153,282 -36%
Number of portfolios – total 128 125 2% 403 314 28%
ESTIMATED REMAINING COLLECTIONS (in thousands)            
Estimated remaining collections – Americas core  $ 2,421,506  $ 2,089,253 16%  $ 2,421,506  $ 2,089,253 16%
Estimated remaining collections – Americas insolvency  474,097  697,662 -32%  474,097  697,662 -32%
Estimated remaining collections – Europe core  1,903,226  1,582,135 20%  1,903,226  1,582,135 20%
Estimated remaining collections – Europe insolvency  30,081  — 100%  30,081  — 100%
Estimated remaining collections – total  4,828,910  4,369,050 11%  4,828,910  4,369,050 11%
Adjusted estimated remaining collections (7)  4,945,609  4,369,050 13%  4,945,609  4,369,050 13%
             
SHARE DATA (share amounts in thousands)            
Net income per common share – diluted  $ 0.36  $ 1.01 -64%  $ 2.61  $ 2.57 2%
Weighted average number of shares outstanding – diluted  48,498  50,439 -4%  48,693  50,413 -3%
Shares repurchased  133  — 0%  1,611  — 100%
Average price paid per share repurchased (including acquisitions costs)  $ 58.08  $ —  0%  $ 53.10  $ —  100%
Closing market price  $ 52.92  $ 52.23 1%  $ 52.92  $ 52.23 1%
             
RATIOS AND OTHER DATA (dollars in thousands)            
Return on average equity (1) 7.8% 21.1% -63% 19.9% 17.1% 16%
Return on revenue (2) 7.7% 21.4% -64% 17.9% 20.6% -13%
Return on average assets (3) 2.3% 7.3% -68% 6.0% 9.5% -37%
Operating margin (4) 23.6% 36.9% -36% 33.6% 36.8% -9%
Operating expense to cash receipts (5) 44.0% 39.1% 12% 38.9% 38.0% 2%
Debt to stockholders’ equity (6) 191.6% 148.5% 29% 191.6% 148.5% 29%
Number of full-time equivalent collectors 2,159 2,498 -14% 2,159 2,498 -14%
Number of full-time equivalent employees 3,715 3,913 -5% 3,715 3,913 -5%
Cash receipts (5)  $ 398,556  $ 385,500 3%  $ 1,214,858  $ 1,048,259 16%
Line of credit – unused portion at period end  393,246  513,800 -23%  393,246  513,800 -23%
(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
  September 30
2015
June 30
2015
March 31
2015
December 31
2014
September 30
2014
EARNINGS (in thousands)          
Income recognized on finance receivables, net  $ 208,184  $ 220,064  $ 228,403  $ 222,660  $ 224,326
Fee income  17,803  13,878  13,053  22,800  12,757
Other revenue  3,443  3,255  3,750  5,271  1,890
Total revenues  229,430  237,197  245,206  250,731  238,973
Operating expenses  175,303  148,318  149,040  140,871  150,784
Income from operations  54,127  88,879  96,166  109,860  88,189
Net interest expense  16,787  13,452  14,776  13,493  11,807
Net income  17,583  51,425  58,135  46,991  51,167
Net income attributable to PRA Group, Inc.  17,396  51,425  58,135  46,991  51,167
           
PERIOD-END BALANCES (in thousands)          
Cash and cash equivalents  $ 69,111  $ 56,811  $ 40,542  $ 39,661  $ 70,300
Finance receivables, net  2,167,178  2,012,552  1,954,772  2,001,790  1,913,710
Goodwill and intangible assets, net  502,383  503,001  506,695  538,378  606,716
Total assets  2,984,550  2,783,756  2,700,613  2,778,751  2,757,429
Borrowings  1,654,457  1,503,363  1,479,262  1,482,456  1,425,409
Total liabilities  2,083,131  1,885,880  1,883,295  1,876,536  1,797,569
Total equity – PRA Group, Inc. 863,517  897,876  817,318  902,215  959,860
           
FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)          
Cash collections  $ 380,753  $ 389,624  $ 399,747  $ 373,428  $ 372,743
Cash collections on fully amortized pools  11,453  15,162  17,005  17,785  17,105
Principal amortization without allowance (reversals)/charges  161,234  164,675  169,714  149,753  150,115
Allowance (reversal)/charge  11,335  4,885  1,630  1,015  (1,698)
Principal amortization with allowance (reversals)/charges  172,569  169,560  171,344  150,768  148,417
Principal amortization w/ allowance charges as % of cash collections:        
 Including fully amortized pools 45.3% 43.5% 42.9% 40.4% 39.8%
 Excluding fully amortized pools 46.7% 45.3% 44.8% 42.4% 41.7%
Allowance (reversal)/charge to period-end net finance receivables 0.5% 0.2% 0.1% 0.1% -0.1%
           
PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)        
Purchase price – North America core  $ 90,912  $ 98,317  $ 138,498  $ 119,714  $ 118,018
Purchase price – North America insolvency  9,300  19,111  16,437  24,949  38,535
Purchase price – Europe core  240,385  88,499  21,579  123,194  734,803
Purchase price – Europe insolvency  3,959  2,450  8,510  11,625  —
Purchase price – total  344,556  208,377  185,024  279,482  891,356
Number of portfolios – total 128 136 139 142 125
ESTIMATED REMAINING COLLECTIONS (in thousands)          
Estimated remaining collections – Americas core  $ 2,421,506  $ 2,384,698  $ 2,370,086  $ 2,229,403  $ 2,089,253
Estimated remaining collections – Americas insolvency  474,097  529,892  577,319  642,552  697,662
Estimated remaining collections – Europe core  1,903,226  1,685,694  1,619,454  1,478,738  1,582,135
Estimated remaining collections – Europe insolvency  30,081  26,807  24,838  15,021  —
Estimated remaining collections – total  4,828,910  4,627,091  4,591,697  4,365,714  4,369,050
Adjusted estimated remaining collections (7)  4,945,609  4,747,552  4,716,230  4,437,264  —
           
SHARE DATA (share amounts in thousands)          
Net income per common share – diluted  $ 0.36  $ 1.06  $ 1.19  $ 0.93  $ 1.01
Weighted average number of shares outstanding – diluted  48,498  48,529  49,052  50,444  50,439
Shares repurchased  133  —  1,478  574  —
Average price paid per share repurchased (including acquisitions costs)  $ 58.08  $ —   $ 52.65  $ 57.79  $ — 
Closing market price  $ 52.92  $ 62.31  $ 54.32  $ 57.93  $ 52.23
           
RATIOS AND OTHER DATA (dollars in thousands)          
Return on average equity (1) 7.8% 23.5% 30.1% 20.2% 21.1%
Return on revenue (2) 7.7% 21.7% 23.7% 18.7% 21.4%
Return on average assets (3) 2.3% 7.4% 8.7% 6.9% 7.3%
Operating margin (4) 23.6% 37.5% 39.2% 43.8% 36.9%
Operating expense to cash receipts (5) 44.0% 36.8% 36.1% 35.6% 39.1%
Debt to stockholders’ equity (6) 191.6% 167.4% 181.0% 164.3% 148.5%
Number of collectors 2,159 2,317 2,395 2,457 2,498
Number of full-time equivalent employees 3,715 3,820 3,847 3,880 3,913
Cash receipts (5)  $ 398,556  $ 403,502  $ 412,800  $ 396,228  $ 385,500
Line of credit – unused portion at period end  393,246  547,017  323,812  352,926  513,800
(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 used in managing the business 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.

Three Months Ended September 30, 2015
  Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported  $ 380,753  $ 172,569  $ 208,184  $ 17,803  $ 3,443  $ 229,430  $ 175,303  $ 54,127  $ 34,180  $ 17,396  $ 0.36
Adjustments:                      
CFPB expenses including penalty and redress  —   —   —   —   —   —   (28,806)  28,806  28,806  20,404  0.42
Acquisition and other expenses  —   —   —   —   —   —   (802)  802  802  568  0.01
Non-cash interest expense  —   —   —   —   —   —   —   —   1,074  761  0.02
One-time tax items  —   —   —   —   —   —   —   —   —   2,488  0.05
Legal costs not associated with normal operations  —   —   —   —   —   —   (1,262)  1,262  1,262  894  0.02
Constant currency adjustments  11,348  5,381  5,967  201  (301)  5,867  3,895  1,972  7,919  5,517  0.11
Subtotal of adjustments  11,348  5,381  5,967  201  (301)  5,867  (26,975)  32,842  39,863  30,632  0.63
As Adjusted  392,101  177,950  214,151  18,004  3,142  235,297  148,328  86,969  74,043  48,028  0.99
                       
Nine Months Ended September 30, 2015
  Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported  $ 1,170,124  $ 513,473  $ 656,651  $ 44,734  $ 10,448  $ 711,833  $ 472,661  $ 239,172  $ 201,370  $ 126,956  $ 2.61
Adjustments:                      
CFPB expenses including penalty and redress  —   —   —   —   —   —   (28,806)  28,806  28,806  21,744  0.45
Acquisition and other expenses  —   —   —   —   —   —   (3,989)  3,989  3,989  3,011  0.06
Non-cash interest expense  —   —   —   —   —   —   —   —   3,178  2,399  0.05
One-time tax items  —   —   —   —   —   —   —   —   —   2,488  0.05
Legal costs not associated with normal operations  —   —   —   —   —   —   (1,669)  1,669  1,669  1,260  0.03
Constant currency adjustments  11,348  5,381  5,967  201  (301)  5,867  3,895  1,972  7,919  5,517  0.11
Subtotal of adjustments  11,348  5,381  5,967  201  (301)  5,867  (30,569)  36,436  45,561  36,419  0.75
As Adjusted  1,181,472  518,854  662,618  44,935  10,147  717,700  442,092  275,608  246,931  163,375  3.36
                       
                       
Three Months Ended September 30, 2014
  Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income
before
Taxes
Net
Income
Diluted
EPS
As Reported  $ 372,743  $ 148,417  $ 224,326  $ 12,757  $ 1,890  $ 238,973  $ 150,784  $ 88,189  $ 79,640  $ 51,167  $ 1.01
Adjustments:                      
Acquisition and other expenses  —   —   —   —   —   —   (6,453)  6,453  6,453  4,021  0.08
Non-cash interest expense  —   —   —   —   —   —   —   —   1,023  637  0.01
One-time tax items  —   —   —   —   —   —   —   —   —   (1,232)  (0.02)
Loss on foreign currency exchange contracts  —   —   —   —   —   —   —   —   2,016  1,256  0.02
Legal costs not associated with normal operations  —   —   —   —   —   —   (381)  381  381  237  0.00
Subtotal of adjustments  —   —   —   —   —   —   (6,834)  6,834  9,873  4,920  0.10
As Adjusted  372,743  148,417  224,326  12,757  1,890  238,973  143,950  95,023  89,513  56,087  1.11
                       
Nine Months Ended September 30, 2014
  Cash
Collections
Amortization Income
Recognized
on Finance
Receivables
Fee
Income
Other
Income
Total
Revenues
Expenses Income from
Operations
Income 
before
Taxes
Net
Income
Diluted
EPS
As Reported  $ 1,005,386  $ 420,572  $ 584,814  $ 42,875  $ 2,549  $ 630,238  $ 398,030  $ 232,208  $ 207,544  $ 129,514  $ 2.57
Adjustments:                      
Acquisition and other expenses  —   —   —   —   —   —   (14,866)  14,866  14,866  9,141  0.18
Non-cash interest expense  —   —   —   —   —   —   —   —   3,028  1,862  0.04
One-time tax items  —   —   —   —   —   —   —   —   —   (1,232)  (0.02)
Loss on foreign currency exchange contracts  —   —   —   —   —   —   —   —   8,240  5,066  0.10
Legal costs not associated with normal operations  —   —   —   —   —   —   (424)  424  424  261  0.01
Subtotal of adjustments  —   —   —   —   —   —   (15,290)  15,290  26,558  15,098  0.30
As Adjusted  1,005,386  420,572  584,814  42,875  2,549  630,238  382,740  247,498  234,102  144,612  2.87
CONTACT: 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

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