PRA Group, Inc. (NASDAQ:PRAA) Q4 2014 Earnings Conference Call - Final Transcript
Mar 02, 2015 • 04:30 pm ET
Thank you. [Operator Instructions]. The first question is from Bob Napoli of William Blair. Your line is open.
Thank you, and good afternoon. I guess, just Kevin the tax rate for 2015, what would you expect that to be and assuming exchange rates are stable?
Right. That's the big assumption, right. You know, we are currently looking in the -- actually in the 35% to 37% range, somewhere in there. So, it's interesting if some of this event that we saw in Q4 reverses that that would obviously have a downward impact and vice versa if the NOK further weaken. But your question was, if all things were made equal, so we're thinking more than 35% to 37% range.
Okay. And then the purchases, I guess, the move into the the EU into Poland, you know what led to that to that opportunity? And I think I know just looking at data and the market and it sounds like there was, you know, a significant purchase of which part of it was in December, part of it was in January. Is that right?
Yes, obviously. This is Geir here. We have been looking at the market for a period of time and saw that Poland as a market itself is interesting given its size and relative maturity in terms of debt purchasing. So we've been involved in a couple of other transactions that did not materialize. In this particular one, we worked with two other investors that also service or portfolio and invested together with them. So we were all incentive aligned and we also structured the deal in a way that gives them downside protection. And yes, there are two tranches of it. So one that happened now in Q4, and the next one in this quarter.
Then where are you seeing the opportunities in Europe today? Your one competitor in the US made a large acquisition in Spain and now with their markets you're more interested in than others and what new markets would you have interest in?
We are now present in eight markets, nine markets now with platforms around Europe and we follow those closely. I think with additional Poland and Italy that we have now strengthened our presence over the year. We think we are present in most of the -- where the biggest opportunities are. So I will say more growth from existing markets. However, we will always be in the outlook for new markets on trade where we see the right opportunity and the market that gives us the long-term potential that we're looking for.
Okay. And last question. And Steve, you may not be able to give me an answer, but just on the CFPB. I mean, how long are these discussions? I mean, they had a paper out and at the end of 2013, asking for comments, and we've not heard anything, you know, much back since then, obviously. Encore and yourselves have have been in discussions. What types of -- and