Financial Data and Key Metrics Changes - The company reported Q3 collections of $550 million, up 18% compared to the same quarter last year [23] - GAAP net income for Q3 was $31 million, representing a 58% increase year-over-year, with GAAP EPS of $1.26, up 59% [23] - The company's cash efficiency margin improved from 51% a year ago to 53.6% in the current quarter [23][24] - The ending ERC (Expected Remaining Collections) was $8.65 billion, up 10% year-over-year [23] Business Line Data and Key Metrics Changes - Portfolio purchases in the U.S. increased by 28% to $230 million compared to Q3 2023, with collections up 22% to $402 million [14][19] - Cabot collections in Q3 were $148 million, up 10% year-over-year, with portfolio purchases at $52 million [17] - Global portfolio purchases increased 23% to $282 million, driven primarily by U.S. deployments [19] Market Data and Key Metrics Changes - The U.S. market is experiencing record portfolio supply due to the highest charge-off rate in over 10 years and increased lending [7][12] - In contrast, the U.K. market is growing slowly, with credit card outstandings just returning to pre-pandemic levels [16] Company Strategy and Development Direction - The company is focusing on purchasing portfolios in the U.S. market, which offers the best opportunity for long-term shareholder value [30] - The company has shifted its capital allocation strategy to prioritize stock repurchases over strategic M&A due to a lack of value-creating opportunities [31] - The company aims to maintain a strong balance sheet and operate within a leverage range of 2x to 3x [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market, expecting continued growth in lending and charge-offs, indicating a favorable purchasing environment [40] - The company anticipates 2024 to be another record year for portfolio purchasing, with global portfolio purchasing expected to reach approximately $1.25 billion [36] Other Important Information - The company exited the secured NPL market in Spain, resulting in a pretax loss of $8 million [18] - The company amended and extended its revolving credit facility, increasing its capacity to $1.295 billion and extending its maturity to September 2028 [29] Q&A Session Summary Question: How should investors think about the capital allocation strategies in light of increasing supply in the U.S.? - Management clarified that there is no change in the favorable U.S. market conditions and the priority remains on buying portfolios at strong returns [40][41] Question: What are the collections multiples for U.S. core paper and Cabot paper? - The collections multiple for both U.S. and Cabot businesses for the 2024 vintage is expected to be 2.3 [43] Question: Is there an active buyback in place? - Yes, there is an active buyback authorization with about $92 million remaining [51] Question: Should legal expenses be expected to continue rising? - As purchasing levels increase, legal expenses are expected to steadily rise, but improved operating leverage is anticipated [55]

Core Insights - Encore Capital Group (ECPG) reported quarterly earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.47 per share, but showing an increase from $0.79 per share a year ago [1] - The company posted revenues of $367.07 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.93% and up from $309.62 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -14.29%, following a previous quarter where the company exceeded expectations with earnings of $1.34 per share [2] - Over the last four quarters, Encore Capital Group has surpassed consensus EPS estimates three times [2] Revenue Insights - The company has topped consensus revenue estimates two times over the last four quarters [3] - Current consensus EPS estimate for the upcoming quarter is $1.81 on revenues of $371.46 million, and for the current fiscal year, it is $5.56 on revenues of $1.42 billion [8] Market Performance - Encore Capital Group shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Consumer Loans industry, to which Encore Capital Group belongs, is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $367,071, an increase of 18.5% compared to $309,619 for the same period in 2023[8] - Net income for the three months ended September 30, 2024, was $30,643, representing a 58.5% increase from $19,339 in the prior year[9] - Earnings per share (EPS) for the three months ended September 30, 2024, were $1.28, up from $0.82 in the same quarter of 2023[8] - The company reported a total comprehensive income of $56,219 for the three months ended September 30, 2024, compared to a loss of $39,252 in the prior year[9] - Net income for the nine months ended September 30, 2024, was $86,063, compared to $64,270 for the same period in 2023, indicating a year-over-year increase of approximately 34%[16] - Total revenues for the nine months ended September 30, 2024, reached $1,050,742, up from $945,293 in 2023, indicating a growth of 11.14%[8] - The company reported a total operating expense of $759,222,000 for the nine months ended September 30, 2024, which is a 6.7% increase from $711,565,000 in 2023[119] Assets and Liabilities - Total assets reached $4,993,716 as of September 30, 2024, up from $4,630,486 at the end of 2023, indicating a growth of 7.8%[6] - Total liabilities increased to $3,945,611 as of September 30, 2024, compared to $3,693,948 at the end of 2023, marking a rise of 6.8%[6] - The company’s accumulated earnings increased to $1,135,234 as of September 30, 2024, up from $1,049,171 at the end of 2023[6] - Total equity as of September 30, 2024, increased to $1,048,105 million from $936,538 million as of December 31, 2023, reflecting a growth of about 12%[13] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2024, was $132,624 million, compared to $116,211 million for the same period in 2023, indicating an increase of approximately 14%[16] - Net cash used in investing activities decreased to $175,705 million in 2024 from $270,726 million in 2023, indicating a reduction of 35.0%[3] - Cash and cash equivalents at the end of the period on September 30, 2024, were $247,353 million, up from $144,711 million at the end of the same period in 2023, showing a significant increase of approximately 71%[16] Investment in Receivables - Investment in receivable portfolios increased to $3,719,260 as of September 30, 2024, compared to $3,468,432 at the end of 2023, reflecting a growth of 7.2%[6] - The balance of investment in receivable portfolios, net, was $3,719.3 million as of September 30, 2024[44] - Collections applied to investment in receivable portfolios for the three months ended September 30, 2024, were $(222.1) million, compared to $(162.7) million for the same period in 2023[45] Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $260,981, an increase from $234,101 in the same period of 2023[8] - Total operating expenses for the three months ended September 30, 2024, were $260,981 thousand, which is 71.1% of total revenues, compared to $234,101 thousand or 75.6% of total revenues in the prior year[103] - Salaries and employee benefits increased by $12,435,000 (13.1%) during the three months ended September 30, 2024, compared to the same period in 2023[118] Debt and Financing - Total borrowings as of September 30, 2024, were $3.6 billion, an increase from $3.3 billion at the end of 2023, indicating a rise of approximately 6.7%[52] - The company issued $1.0 billion in senior secured notes during the nine months ended September 30, 2024, with maturities in 2029 and 2030[5] - The company has a total committed facility of $1.2 billion under the Global Senior Facility, which was amended to increase to $1.3 billion in October 2024[53] Tax and Other Comprehensive Income - The effective tax rate for the three months ended September 30, 2024, was 24.8%, a decrease from 35.7% for the same period in 2023[65] - The accumulated other comprehensive loss at the end of the period was $(104,382) thousand[63] - The company experienced a decrease in other comprehensive loss, net of tax, from $(30,675) million in 2022 to $(129,491) million in 2023, indicating an improvement in financial performance[15] Market and Growth Strategy - The company plans to continue expanding its investment in receivable portfolios to drive future revenue growth[8] - The company is actively pursuing new strategies for market expansion and product development to enhance future performance[139] - The company aims to enhance its market expansion strategies, targeting key growth areas in both existing and new markets[144]

Financial Performance - GAAP net income for Q3 2024 was $30.6 million, a 58% increase from $19.3 million in Q3 2023[4] - GAAP earnings per share (EPS) increased by 59% to $1.26 in Q3 2024, compared to $0.79 in Q3 2023[4] - Net income for the three months ended September 30, 2024, was $30.6 million, up 58.5% from $19.3 million in the prior year[12] - The company reported a basic earnings per share of $1.28 for the three months ended September 30, 2024, compared to $0.82 in the same period of 2023, an increase of 56.1%[12] Revenue Growth - Global collections rose by 18% to $550 million in Q3 2024, up from $465 million in Q3 2023[1] - Revenue from receivable portfolios for the three months ended September 30, 2024, was $328.1 million, an increase of 8.5% from $302.7 million in the same period of 2023[12] - Total revenues for the nine months ended September 30, 2024, reached $1.05 billion, compared to $945.3 million for the same period in 2023, reflecting a growth of 11.1%[12] Portfolio and Collections - Global portfolio purchases increased by 23% to $282 million in Q3 2024 compared to $230 million in Q3 2023[1] - The estimated remaining collections (ERC) grew by 10% to $8.65 billion as of September 30, 2024, from $7.88 billion a year earlier[4] - The company plans to continue expanding its receivable portfolios, with net purchases for the nine months ended September 30, 2024, totaling $844.9 million, up from $772.1 million in the same period of 2023[13] Operating Expenses - Operating expenses increased by 11% to $261 million in Q3 2024, compared to $234 million in Q3 2023[4] - Total operating expenses for the three months ended September 30, 2024, were $261.0 million, an increase of 11.5% from $234.1 million in the same period of 2023[12] - Interest expense for the three months ended September 30, 2024, was $66.9 million, compared to $50.6 million in the same period of 2023, reflecting a rise of 32.2%[14] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2024, was $132.6 million, compared to $116.2 million in the same period of 2023, indicating a growth of 14.1%[13] - Cash and cash equivalents at the end of the period increased to $247.4 million from $144.7 million year-over-year, marking a significant rise of 71.1%[13] - Total assets as of September 30, 2024, were $4.99 billion, up from $4.63 billion at the end of 2023[10] Market Conditions - The U.S. market supply is at record levels, driven by the highest charge-off rate in over 10 years and growth in lending[2] - The company exited the secured NPL market in Spain, resulting in a pre-tax loss of $8 million, or $0.27 per share[2] Guidance - The company raised its 2024 guidance, expecting global portfolio purchases to exceed $1.25 billion and year-over-year collections growth of approximately 15% to over $2.125 billion[3] Adjusted Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $117.8 million, compared to $90.7 million in the same period of 2023, representing a 29.9% increase[14]

Encore Capital Group, Inc. (ECPG) shares have gained 11.4% since it reported second-quarter 2024 results on Aug 7, 2024. The strong second-quarter results benefited from improving portfolio supply in the United States and rising collections. However, growth in expenses partially offset the upside. ECPG reported second-quarter 2024 adjusted earnings per share (EPS) of $1.34, which beat the Zacks Consensus Estimate by 6.4%. The bottom line also reported an improvement of 24% year over year. ECPG's revenues cl ...

Encore Capital Group, Inc. (NASDAQ:ECPG) Q2 2024 Earnings Conference Call August 7, 2024 5:00 PM ET Company Participants Bruce Thomas – Vice President, Global Investor Relations Ashish Masih – President and Chief Executive Officer Jonathan Clark – Executive Vice President and Chief Financial Officer Ryan Bell – President, Midland Credit Management Conference Call Participants Mark Hughes – Truist Securities Zach Oster – Citizens JMP Robert Dodd – Raymond James Operator Good afternoon everyone, and thank you ...

| --- | --- | |----------------|-------| | | | | August 7, 2024 | | 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 statements may inclu ...

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, 2024 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 ...

Exhibit 99.1 Encore Capital Group Announces Second Quarter 2024 Financial Results • Highly favorable purchasing conditions continue in U.S. market • Global portfolio purchases of $279 million including record $237 million in the U.S. • Global collections of $547 million up 15% compared to Q2 2023 • GAAP EPS of $1.34 SAN DIEGO, August 7, 2024 -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the second quarter ended Jun ...

SAN DIEGO, July 17, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq:ECPG), an international specialty finance company, announced today that it will release its financial results for the second quarter 2024 on Wednesday, August 7, 2024, after the market closes. The Company will also host a conference call and slide presentation the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time with Ashish Masih, President and Chief Executive Officer, Jonathan Clark, Executive Vice President and Chief Fin ...