Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 000-26489 ENCORE CAPITAL GROUP, ...

Encore Capital Group (NASDAQ:ECPG) Q3 2020 Earnings Conference Call November 2, 2020 5:00 PM ET Company Participants Bruce Thomas - VP of Investor Relations Ashish Masih - President and Chief Executive Officer Jonathan Clark - Executive Vice President and Chief Financial Officer Ryan Bell - President Midland Credit Management Craig Buick - CEO of Cabot Credit Management Conference Call Participants Mark Hughes - Truist David Scharf - JMP Securities Mike Grondahl - Northland Securities Dominick Gabriele - Op ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000- ...

Encore Capital Group, Inc. (NASDAQ:ECPG) Q2 2020 Earnings Conference Call August 5, 2020 5:00 PM ET Company Participants Bruce Thomas – Vice President-Investor Relations Ashish Masih – President and Chief Executive Officer Jonathan Clark – Executive Vice President and Chief Financial Officer Ryan Bell – President-Midland Credit Management Craig Buick – Chief Executive Officer-Cabot Credit Management Conference Call Participants Eric Hagen – KBW David Scharf – JMP Securities Mike Grondahl – Northland Securit ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000-26489 ...

Table of Contents Titleofeachclass Common Stock, $0.01 Par Value Per Share TradingSymbol(s) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 000-26489 ENCORE CAPITAL GROUP, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000-26 ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements, management's analysis of financial condition and operations, market risk disclosures, and internal controls [Item 1— Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201%E2%80%94%20Consolidated%20Financial%20Statements%20(Unaudited)) These unaudited consolidated financial statements for June 30, 2019, reflect increased assets and net income, alongside the adoption of the new lease accounting standard [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $4.81 billion as of June 30, 2019, driven by receivable portfolios, with corresponding increases in liabilities and equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$4,811,025** | **$4,631,875** | | Investment in receivable portfolios, net | $3,224,568 | $3,137,893 | | Goodwill | $865,527 | $868,126 | | **Total Liabilities** | **$3,908,068** | **$3,812,187** | | Debt, net | $3,529,717 | $3,490,633 | | **Total Equity** | **$902,957** | **$819,688** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues adjusted by net allowances increased to $694.0 million, leading to a significant rise in net income attributable to Encore stockholders for the six months ended June 30, 2019 Key Operating Results (in thousands, except per share data) | Metric | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Total revenues, adjusted by net allowances | $693,951 | $676,535 | | Income from operations | $224,790 | $191,885 | | Net income attributable to Encore | $85,915 | $48,125 | | Diluted EPS | $2.74 | $1.82 | Quarterly Operating Results (Q2 2019 vs Q2 2018, in thousands) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | | :--- | :--- | :--- | | Total revenues, adjusted by net allowances | $346,874 | $349,747 | | Income from operations | $113,732 | $103,433 | | Net income attributable to Encore | $36,661 | $26,298 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income attributable to Encore stockholders significantly increased to $79.5 million, driven by higher net income and reduced other comprehensive loss Comprehensive Income (Loss) Summary (in thousands) | Metric | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net income | $86,264 | $50,687 | | Other comprehensive loss, net of tax | $(6,006) | $(18,132) | | Comprehensive income (loss) attributable to Encore | $79,475 | $28,581 | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity increased to $903.0 million by June 30, 2019, primarily due to net income, partially offset by other comprehensive loss - Total equity grew by **$83.3 million** in the first six months of 2019, driven by **$85.9 million** in net income attributable to Encore stockholders[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $108.8 million, while investing activities used $115.7 million, resulting in a period-end cash balance of $168.6 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $108,820 | $97,627 | | Net cash used in investing activities | $(115,688) | $(240,887) | | Net cash provided by financing activities | $27,578 | $121,035 | | **Net increase (decrease) in cash** | **$20,710** | **$(22,225)** | - Purchases of receivable portfolios, net of put-backs, were the primary use of cash in investing activities, totaling **$499.9 million** for the first six months of 2019, down from **$633.0 million** in the same period of 2018[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, including the adoption of Topic 842, and provide extensive information on receivable portfolios, debt, and segment operations - The company adopted the new lease accounting standard, Topic 842, on January 1, 2019, resulting in the recognition of operating lease right-of-use assets of approximately **$89.1 million** and lease liabilities of **$102.7 million**[35](index=35&type=chunk)[36](index=36&type=chunk) - The company's business is aggregated into one reportable segment: portfolio purchasing and recovery, with geographically diverse operations in the United States and Europe[151](index=151&type=chunk) Debt Composition (in thousands) | Debt Instrument | June 30, 2019 | | :--- | :--- | | Encore revolving credit facility | $496,000 | | Encore term loan facility | $179,320 | | Encore senior secured notes | $325,000 | | Encore convertible & exchangeable notes | $626,006 | | Cabot senior secured notes | $1,106,031 | | Cabot senior revolving credit facility | $291,435 | | Cabot securitisation senior facilities | $444,455 | | **Total Debt, Net** | **$3,529,717** | [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting increased gross collections, decreased capital deployment, improved cost-to-collect, and the presentation of non-GAAP metrics [Business Overview and Regulation](index=32&type=section&id=Business%20Overview%20and%20Regulation) Encore operates globally in debt recovery through three units, facing extensive regulation, including new proposed rules from the CFPB on debt collection practices - The company operates through three primary business units: MCM (United States), Cabot (Europe), and LAAP (Latin America and Asia-Pacific)[160](index=160&type=chunk) - On May 7, 2019, the CFPB issued a Notice of Proposed Rulemaking (NPRM) regarding debt collection, with final rules anticipated in late 2019 or early 2020[167](index=167&type=chunk) [Purchases and Collections](index=34&type=section&id=Purchases%20and%20Collections) Portfolio investments decreased to $505.0 million, while gross collections increased by 4.4% to $1.03 billion, driven by strong U.S. performance and selective European deployment Portfolio Purchases by Geography (in thousands) | Region | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | MCM (United States) | $354,104 | $381,550 | | Cabot (Europe) | $140,846 | $234,327 | | Other geographies | $10,082 | $20,465 | | **Total purchases** | **$505,032** | **$636,342** | Gross Collections by Geography (in thousands) | Region | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | MCM (United States) | $662,885 | $609,772 | | Cabot (Europe) | $319,059 | $319,110 | | Other geographies | $46,790 | $56,313 | | **Total collections** | **$1,028,734** | **$985,195** | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenues increased by 2.6% to $694.0 million, while operating expenses decreased, leading to a significant rise in income from operations and net income, partly due to a tax benefit - Total revenues, adjusted by net allowances, increased by **2.6%** to **$694.0 million** for the six months ended June 30, 2019, compared to the prior year period[196](index=196&type=chunk) - Total operating expenses decreased by **3.2%** to **$469.2 million** for the six months ended June 30, 2019, partly due to favorable foreign currency translation and lower M&A costs compared to the prior year[211](index=211&type=chunk)[212](index=212&type=chunk)[226](index=226&type=chunk) - Income tax expense for the first six months of 2019 decreased primarily due to a **$9.1 million** tax benefit related to an IRS-approved change in the tax accounting method for revenue reporting[234](index=234&type=chunk) [Non-GAAP Disclosures and Performance Data](index=47&type=section&id=Non-GAAP%20Disclosures%20and%20Performance%20Data) Non-GAAP metrics show adjusted net income of $86.2 million and adjusted EBITDA of $243.8 million, with estimated remaining collections of $7.35 billion Adjusted EPS Reconciliation (Six Months Ended June 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | GAAP net income attributable to Encore | $85,915 | $48,125 | | Adjustments (net) | $240 | $12,770 | | **Adjusted net income attributable to Encore** | **$86,155** | **$60,895** | | **Adjusted Diluted EPS** | **$2.74** | **$2.31** | Adjusted EBITDA (in thousands) | Period | Adjusted EBITDA | | :--- | :--- | | Six Months Ended June 30, 2019 | $243,780 | | Six Months Ended June 30, 2018 | $223,305 | - As of June 30, 2019, the company projects total estimated remaining gross collections (ERC) of **$7.35 billion** from its purchased receivable portfolios[263](index=263&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash from operations and credit facilities, with $168.6 million in cash and significant available borrowing capacity - As of June 30, 2019, the company had **$160.8 million** of availability under its U.S. Revolving Credit Facility and **£155.5 million** (approximately **$197.5 million**) under its Cabot Credit Facility[280](index=280&type=chunk)[281](index=281&type=chunk) - Of the **$168.6 million** in cash and cash equivalents, **$139.3 million** was held by foreign entities and is considered indefinitely reinvested[285](index=285&type=chunk) - Management believes that cash flows from operations, cash on hand, and availability under credit facilities provide sufficient liquidity to fund operations for at least the next twelve months[288](index=288&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures, including foreign currency and interest rates, were reported since the 2018 Annual Report - There were no material changes in foreign currency or interest rate risk from the disclosures in the 2018 Form 10-K[291](index=291&type=chunk)[292](index=292&type=chunk) [Item 4 – Controls and Procedures](index=60&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[296](index=296&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2019[297](index=297&type=chunk) [PART II – OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section details legal proceedings, updated risk factors including Brexit, and a comprehensive list of filed exhibits [Item 1 – Legal Proceedings](index=61&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) Legal proceedings information is referenced in Note 12 of the financial statements, with no material developments since the 2018 Annual Report - Information regarding legal proceedings is located in Note 12 to the consolidated financial statements[300](index=300&type=chunk) [Item 1A – Risk Factors](index=61&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) Updated risk factors address potential adverse effects of Brexit, including economic uncertainty and currency fluctuations, given the company's significant UK operations - An updated risk factor was added to address the potential adverse effects of the United Kingdom's exit from the European Union ("Brexit")[301](index=301&type=chunk) - Key Brexit-related risks include global economic instability, currency volatility (especially the pound sterling), and a potential UK recession, which could materially harm the company's financial results due to its significant UK operations[303](index=303&type=chunk) [Item 6 – Exhibits](index=62&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists filed exhibits, including corporate documents, financial agreements, CEO/CFO certifications, and XBRL data files - Exhibits filed include CEO/CFO certifications (Sections 302 and 906 of Sarbanes-Oxley), an indenture for Cabot Financial, and XBRL interactive data files[305](index=305&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000-2648 ...