PRA Group, Inc. (PRAA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $17.65 million, or $ 0.38 a share in the quarter, against a net profit of $40.97 million, or $0.86 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $15.44 million, or $0.33 a share compared with a net profit of $49.42 million, or $1.04 a share in the last year period. Revenue during the quarter plunged 32.55 percent to $155.26 million from $230.18 million in the previous year period. Total expenses were 95.45 percent of quarterly revenues, up from 69.08 percent for the same period last year. That has resulted in a contraction of 2637 basis points in operating margin to 4.55 percent.
Operating income for the quarter was $7.07 million, compared with $71.17 million in the previous year period.
However, the adjusted operating income for the quarter stood at $11.32 million compared to $84.97 million in the prior year period.
"While our fourth quarter GAAP earnings reflect a non-cash allowance charge, our economic performance remained solid and we made substantial progress resolving operational and regulatory challenges. PRA Group spent much of 2016 preparing for, and to the extent possible, attempting to influence, a number of evolving forces that we believe could ultimately be beneficial to our shareholders," said Steve Fredrickson, chairman and chief executive officer, PRA Group. "Relief from the antiquated interpretation of the Telephone Consumer Protection Act (TCPA), potential increases in domestic supply of nonperforming loans, the prospect of consolidating competition in Europe, and possible clarification of collection regulations are several of these potential tailwinds. We stand ready and waiting to capitalize on any of these events and are excited about what the future holds for PRA Group."
Debt moves up marginally
PRA Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,784.10 million as on Dec. 31, 2016, up 3.90 percent or $66.97 million from $1,717.13 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.34 for the quarter from 4.65 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
