Group 1 - Encore Capital Group, Inc. will release its financial results for Q1 2025 on May 7, 2025, after market close [1] - A conference call and slide presentation will be held on the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, featuring key executives discussing the results [1] - Members of the public can access the live webcast via Encore's Investor Relations page, and a replay will be available shortly after the call [2] Group 2 - Encore Capital Group is an international specialty finance company providing debt recovery solutions and related services for consumers [3] - The company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers [3] - Encore operates with a Consumer Bill of Rights, offering industry-leading commitments to consumers [4]

SAN DIEGO, March 03, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq:ECPG), an international specialty finance company, announced today that Encore management will be meeting with investors at the Raymond James 46th Annual Institutional Investors Conference on Tuesday, March 4, 2025. In addition, Ashish Masih, Encore’s President and Chief Executive Officer, will be making a presentation at the conference at 11:00am Eastern time on the same day. A link to the live webcast and a copy of the presen ...

Encore Capital Group, Inc. (ECPG) shares have plummeted 21.9% since it reported fourth-quarter 2024 results on Feb. 26, 2025. Investors might be concerned about falling debt-purchasing revenues in the quarter. However, rising collections and strong portfolio purchasing partially offset the negatives.See the Zacks Earnings Calendar to stay ahead of market-making news.ECPG reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.50, which missed the Zacks Consensus Estimate by 3.2%. The bottom lin ...

Encore Capital Group (ECPG) Q4 2024 Earnings Call February 27, 2025 05:32 AM ET Company Participants Bruce Thomas - VP, Global Investor RelationsAshish Masih - President & Chief Executive OfficerJonathan Clark - EVP, CFO & TreasurerDavid Scharf - Managing DirectorMike Grondahl - Head of Equities & Director of ResearchJohn Rowan - Managing DirectorRobert Dodd - Director - Finance Conference Call Participants Mark Hughes - Analyst Operator Good day, everyone, and thank you for standing by. Welcome to the Enco ...

Fourth Quarter 2024 Investor Presentation Encore Capital Group, Inc. February 26, 2025 Legal Disclaimers The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "will," "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These s ...

Core Viewpoint - Encore Capital Group reported quarterly earnings of $1.50 per share, which missed the Zacks Consensus Estimate of $1.55 per share, but showed an increase from $1.25 per share a year ago [1][2] Financial Performance - The company experienced an earnings surprise of -3.23% for the quarter, and previously, it had a surprise of -14.29% when it reported earnings of $1.26 per share against an expectation of $1.47 per share [2] - Revenues for the quarter were $265.62 million, missing the Zacks Consensus Estimate by 28.92%, and down from $277.39 million year-over-year [3] Market Performance - Encore Capital Group shares have increased by approximately 4.4% since the beginning of the year, outperforming the S&P 500, which gained 1.3% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.49 on revenues of $386.31 million, and for the current fiscal year, it is $7.42 on revenues of $1.61 billion [8] - The estimate revisions trend for Encore Capital Group is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Financial - Consumer Loans industry, to which Encore Capital Group belongs, is currently in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Market Position and Strategy - The company is a market leader in portfolio purchasing and recovery in the United States and one of the largest credit management services providers in Europe[12]. - The long-term growth strategy focuses on investing in core portfolio purchasing and recovery business in the U.S. and U.K., with an emphasis on strengthening operations in France and Spain[14]. - The company aims to maintain strong returns throughout the credit cycle, with capital allocation priorities including portfolio purchases and strategic M&A considerations[34]. - The company has achieved certification from all major U.S. issuers for compliance, enhancing its reputation and ability to secure new portfolios[26]. Digital and Operational Efficiency - The company has made significant progress in developing digital collection strategies, enhancing consumer access to account information and payment options[20]. - The operational scale and cost efficiency are central to the company's purchasing and collection strategies, with operations in India and Costa Rica contributing to these efficiencies[29]. - The company utilizes proprietary statistical models for portfolio valuation, determining the likelihood and expected amount of collections from each consumer[22]. - The company maintains relationships with various financial service providers, generating recurring purchase opportunities and securing exclusive negotiation rights[36]. Compliance and Regulatory Environment - The company maintains a compliance management system to adhere to applicable laws and regulations, which is crucial for its debt purchasing and collection activities[50]. - The company has faced regulatory scrutiny, including a consent order with the CFPB in 2015 and subsequent legal actions related to compliance with consumer financial laws[63]. - The company is subject to various federal and state laws concerning identity theft, data privacy, and cybersecurity, which may require significant resources for compliance[68]. - The company must comply with the General Data Protection Regulation (GDPR) and the UK Data Protection Act 2018, which introduced significant changes to data protection practices[82]. Workforce and Employee Relations - As of December 31, 2024, the company had approximately 7,350 employees, with 20% in the United States and 80% in international locations[85]. - Approximately 49% of the total workforce were women, reflecting the company's commitment to inclusion and collaboration[91]. - The company has no employees in North America represented by a labor union or subject to collective bargaining agreements[85]. - The company is committed to providing competitive compensation and benefits, including comprehensive health and welfare insurance and wellness incentives[92]. Financial Performance and Risks - The company recorded a goodwill impairment charge of $100.6 million at the Cabot reporting unit during the fourth quarter of 2024, following a previous charge of $238.2 million in the fourth quarter of 2023[172]. - The company is required to maintain a Fixed Charge Coverage Ratio of at least 2.0 and ensure that the LTV Ratio does not exceed 0.75[156]. - Increases in interest rates could lead to higher interest expenses, adversely affecting earnings and cash flows[157]. - The company may incur additional indebtedness in the future, which could intensify existing financial risks[155]. Collection Strategies and Consumer Relations - The company employs various collection strategies including direct mail, call centers, digital collections, and legal action to optimize account recovery[41]. - The company’s legal action strategy is employed when consumers are deemed able but unwilling to pay, with a focus on compliance with debt collection laws[41]. - The company is committed to treating consumers with respect and integrity, which has built trust and improved liquidation rates[21]. - Significant progress has been made in expanding digital strategies, allowing consumers to access account information and make payments online, with expectations for increased digital collections[41]. Economic and Competitive Landscape - The consumer credit recovery industry is highly competitive, with pressures affecting the availability and pricing of receivable portfolios[53]. - The ability to purchase receivables at favorable prices is crucial for growth; fluctuating prices and competition may limit purchasing volume and profitability[98]. - Regulatory changes could lead to increased competition and reduced access to charged-off consumer receivables at acceptable prices[106]. - The company faces risks related to economic conditions that could adversely affect consumer payment capabilities, potentially harming financial results[97]. Cybersecurity and Data Protection - Cybersecurity incidents pose a risk to the company's information technology networks, potentially leading to data breaches and operational disruptions[125]. - The reliance on third-party service providers for data processing introduces additional risks related to cybersecurity and compliance[126]. - The company is subject to audits by sellers of debt portfolios, which could limit future purchasing capabilities if compliance issues arise[114]. - The reliance on proprietary consumer data is critical; loss of access or public exposure of this data could materially affect competitive advantage[118].

Financial Performance - Total revenues for the year ended December 31, 2024, were $1,316,361, an increase of 7.7% compared to $1,222,680 in 2023[20] - The net loss for the year ended December 31, 2024, was $139,244, a decrease from a net loss of $206,492 in 2023, representing a 32.5% improvement[22] - Adjusted EBITDA for the year ended December 31, 2024, was $332,928, slightly down from $333,615 in 2023[23] - Operating expenses for the year ended December 31, 2024, totaled $1,159,031, a decrease of 3.9% from $1,206,145 in 2023[20] - The company reported a goodwill impairment charge of $100.6 million for the year ended December 31, 2024, compared to $238.2 million in 2023[25] - The company incurred interest expenses of $252,545 for the year ended December 31, 2024, compared to $201,877 in 2023, reflecting a 25.1% increase[23] - Net cash provided by operating activities for the year ended December 31, 2024, was $156,168, slightly up from $152,991 in 2023[22] Portfolio Purchases and Collections - Global portfolio purchases in 2024 increased by 26% to a record $1.35 billion[3] - U.S. portfolio purchases in 2024 reached $1 billion, a 23% increase[2] - Cabot portfolio purchases in 2024 increased by 36% to $200 million in Q4[2] - Q4 2024 portfolio purchases surged by 69% to $495.1 million[5] - Global collections in 2024 rose by 16% to $2.16 billion[3] - Q4 2024 collections were $554.6 million, a 21% increase year-over-year[5] - Collections applied to principal balance for the year ended December 31, 2024, were $1,004,230, up from $776,280 in 2023, indicating a 29.2% increase[23] - Estimated Remaining Collections (ERC) for 2024 were $8.5 billion, up 4% from 2023[4] - The company expects global collections in 2025 to increase by 11% to $2.4 billion[2] Goodwill and Restructuring - A goodwill charge of $101 million was recorded in Q4 due to restructuring actions in the Cabot business[2]

Core Insights - Encore Capital Group experienced significant growth in 2024, with global portfolio purchases increasing by 26% to a record $1.35 billion and global collections rising by 16% to $2.16 billion compared to 2023 [2][4][3] - The U.S. market provided a favorable environment for non-performing loan portfolios, leading to a 23% increase in U.S. portfolio purchases for Encore's largest business, MCM, totaling $1 billion [2][5] - The Cabot business in the U.K. and Europe saw a 36% increase in portfolio purchases, but faced challenges due to a competitive environment and macroeconomic factors, resulting in a restructuring that included exiting underperforming markets [2][4][3] Financial Performance - For the full year 2024, Encore reported collections of $2,162,478, an increase of 16% from $1,862,567 in 2023, and revenues of $1,316,361, up 8% from $1,222,680 [3][4] - The estimated remaining collections (ERC) rose by 4% to $8,501,370 from $8,191,913 in 2023, while operating expenses decreased by 4% to $1,159,031 [3][4] - The company reported a GAAP net loss of $139,244, or ($5.83) per share, compared to a loss of $206,492, or ($8.72) per share in 2023 [3][4] Fourth Quarter Highlights - In Q4 2024, collections reached $554,595, a 21% increase from $458,350 in Q4 2023, while revenues decreased by 4% to $265,619 [6][4] - Portfolio purchases surged by 69% to $495,144 compared to $292,497 in Q4 2023, and operating expenses fell by 19% to $399,809 [6][4] - The GAAP net loss for Q4 was $225,307, or ($9.42) per share, an improvement from a loss of $270,762, or ($11.40) per share in the same quarter of the previous year [6][4] Strategic Outlook - The company anticipates global portfolio purchases in 2025 to exceed the $1.35 billion made in 2024 and expects global collections to increase by 11% to $2.4 billion [2][4] - Encore plans to resume share repurchases in 2025, reflecting confidence in cash generation and improving leverage [2][4] - The company remains committed to its role in the consumer credit ecosystem, focusing on helping consumers restore their financial health [2][4]

Core Points - Encore Capital Group, Inc. will release its financial results for Q4 2024 on February 26, 2025, after market close [1] - A conference call will be held on the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, featuring key executives discussing the results [1] - The public can access the live webcast through Encore's Investor Relations page [2] Company Overview - Encore Capital Group is an international specialty finance company that provides debt recovery solutions and related services for consumers [3] - The company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers [3] - Encore operates with a Consumer Bill of Rights, offering industry-leading commitments to consumers [4] - The company is headquartered in San Diego and is publicly traded on NASDAQ under the ticker symbol ECPG [4]