PRA Group, Inc. (NASDAQ:PRAA) Q3 2023 Earnings Conference Call November 6, 2023 5:00 PM ET

Company Participants

Najim Mostamand - CFA, Vice President, Investor Relations

Vikram Atal - President and Chief Executive Officer

Rakesh Sehgal - Executive Vice President, Chief Financial Officer

Conference Call Participants

David Scharf - JMP Securities

Bob Napoli - William Blair

Robert Dodd - Raymond James

Mark Hughes - Truist

Operator

Good afternoon and welcome to the PRA Group's Third Quarter 2023 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Najim Mostamand, Vice President of Investor Relations for PRA Group. Please go ahead.

Najim Mostamand

All right. Thank you. Good evening, everyone, and thank you for joining us. With me today are Vik Atal, President and Chief Executive Officer; and Rakesh Sehgal, Executive Vice President. We will make forward-looking statements during the call, which are based on management's current beliefs, projections, assumptions and expectations. We assume no obligation to revise or update these statements. We caution listeners that these forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause our actual results to differ materially from our expectations. Please refer to the earnings press release and our SEC filings for a detailed discussion of these factors.

The earnings release, the slide presentation that we will use during today's call and our SEC filings can all be found in the Investor Relations section of our website at www.pragroup.com. Additionally, a replay of this call will be available shortly after its conclusion, and the replay dial-in information is included in the earnings press release. All comparisons mentioned today will be between Q3 2023 and Q3 2022, unless otherwise noted, and our Americas results include Australia. During our call, we will discuss adjusted EBITDA and debt-to-adjusted EBITDA for the 12 months ended September 30th, 2023, and December 31st, 2022. Please refer to today's earnings release and the appendix of the slide presentation used during this call for a reconciliation of the most directly comparable US GAAP financial measures to these non-GAAP financial measures.

And with that, I'd now like to turn the call over to Vik Atal, our President and Chief Executive Officer.

Vikram Atal

Thank you, Najim, and thank you for everyone for joining us this evening. In a few minutes, I will pass the baton to Rakesh to cover the financial section of our third quarter results. Prior to doing so, however, I feel that it is important for me to provide a link between the results we are reporting today, which closely parallel our prior expectations, and the confidence I have in the results we expect to realize over the next 12 to 18 months. We believe these future results will be driven by a combination of portfolio supply, pricing, operational effectiveness, and efficiency. First, portfolio supply and pricing. The chart on the upper left profiles our quarterly investments in Europe stretching back three years. As you can see, purchasing levels vary throughout the year. This is due to the mix of spot transactions versus forward flows in the region, but the overall picture indicates relatively stable averages continuing into this year.