SAN DIEGO, April 23, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ:ECPG), an international specialty finance company, today announced that it has established a partnership with Junior Achievement USA, the nation's largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for the future, and make smart academic and economic choices. This partnership expands on Encore's current relationship with the San Diego Chapter of Junior Ac ...

SAN DIEGO, April 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 first quarter 2024 on Wednesday, May 8, 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 Financ ...

SAN DIEGO, April 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 first quarter 2024 on Wednesday, May 8, 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 Financ ...

SAN DIEGO, March 14, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ:ECPG) (the "Company") today announced the pricing of its offering of $500.0 million aggregate principal amount of 9.250% senior secured notes due 2029 (the "notes"), which was upsized by $100.0 million from $400.0 million, at an issue price of 100.000% in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States to ...

SAN DIEGO, March 12, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ:ECPG) (the "Company") today announced its intention to offer, subject to market and other conditions, $400.0 million aggregate principal amount of senior secured notes due 2029 (the "notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States to non-U.S. persons (within the meaning of Regulation S under th ...

SAN DIEGO, March 01, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ:ECPG), an international specialty finance company, announced today that Ashish Masih, President and Chief Executive Officer, Jonathan Clark, Executive Vice President and Chief Financial Officer, and Bruce Thomas, Vice President, Global Investor Relations, will be meeting with investors at the Raymond James 45th Annual Institutional Investors Conference on Monday, March 4, 2024. In addition, Mr. Masih will be making a presentati ...

SAN DIEGO, March 01, 2024 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq:ECPG), an international specialty finance company, announced today that Ashish Masih, President and Chief Executive Officer, Jonathan Clark, Executive Vice President and Chief Financial Officer, and Bruce Thomas, Vice President, Global Investor Relations, will be meeting with investors at the Raymond James 45th Annual Institutional Investors Conference on Monday, March 4, 2024. In addition, Mr. Masih will be making a presentati ...

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Encore Capital Group (ECPG) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.25, which beat the Zacks Consensus Estimate by 2.5%. The bottom line reported a significant improvement from a loss of $3.11 per share in the year-ago quarter.ECPG's revenues climbed 18.5% year over year to $277.4 million. However, the top line missed the consensus mark by 16.1%.The strong fourth-quarter earnings benefited from improving portfolio supply in the United States and rising collections. Continued gro ...

Financial Data and Key Metrics Changes - Encore's global portfolio purchases increased by 34% in 2023, reaching a record $1.074 billion, with U.S. deployments leading the way at $815 million, which is double the amount purchased in 2021 [1][8][97] - Estimated remaining collections (ERC) at the end of 2023 was $8.2 billion, up 8% year-over-year, while operating expenses increased by 29% compared to the prior year [31][32] - The company reported a net loss of $206 million, or $8.72 per share, primarily due to a $238 million goodwill impairment charge, which has no impact on liquidity or operations [112][103] Business Line Data and Key Metrics Changes - MCM collections in 2023 were $1.3 billion, while Cabot's collections were $544 million, down from $553 million the previous year [105][102] - The U.S. market accounted for 76% of portfolio purchases in 2023, compared to 56% five years ago, indicating a strategic shift towards higher return opportunities [9][18] - The company added over 500 account managers to MCM's operations in 2023 to expand internal collections capacity [98] Market Data and Key Metrics Changes - The U.S. debt buying industry experienced rapid growth in portfolio supply, driven by increased lending and rising delinquencies, while growth in the U.K. and Europe remained muted [8][10] - U.S. consumer credit card delinquencies are now well above pre-pandemic levels, indicating a favorable environment for portfolio purchases [94][96] - The competitive environment in the U.K. remains challenging, with low charge-offs and a slow recovery in credit card outstandings [10][102] Company Strategy and Development Direction - The company employs a three-pillar strategy focused on disciplined portfolio purchasing, maintaining a strong balance sheet, and enhancing operational efficiency to build long-term shareholder value [5][28] - The company plans to continue allocating capital primarily to the U.S. market, where it expects to see significant growth in portfolio purchasing and collections in 2024 [25][40] - Investments in technology and digital capabilities are ongoing, with a focus on enhancing consumer engagement and collection efficiency [106][116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about turning the corner in operational and financial results in 2024, supported by a robust supply pipeline in the U.S. [2][25] - The company anticipates collections to grow by approximately 8% to over $2 billion in 2024, with portfolio purchasing expected to exceed 2023 levels [35][34] - Management acknowledged the volatility in financial results due to CECL accounting standards but emphasized the underlying strength of the business [29][114] Other Important Information - The company reported a goodwill impairment of $238 million due to low purchasing levels at Cabot and declining valuations in the debt purchasing industry [103][39] - The company has extended the maturity of its Cabot securitization facility to September 2028 and reduced its size by £95 million [22] Q&A Session Summary Question: What is the reason for the goodwill impairment? - The goodwill impairment of $238 million was due to persistently low portfolio purchasing by Cabot and reduced valuations of competitors in the debt purchasing industry [39][103] Question: How should we think about purchasing levels at Cabot? - Management indicated that purchasing levels at Cabot are expected to remain low until market conditions improve, focusing on higher returns in the U.S. [40][44] Question: What percentage of forecasted collections were collected in Q4? - In Q4, MCM collections were better than 96% of forecast, while Cabot's performance was slightly below expectations [52][34] Question: How much goodwill remains for Cabot and MCM? - As of December 2023, goodwill remaining is approximately $457 million for Cabot and $149 million for MCM, totaling about $606 million [58][59] Question: What is the outlook for cash efficiency and leverage? - Management expects collections efficiency margins to improve in 2024, while leverage is anticipated to remain below 3 times [82][35]