Encore Capital Group(US:ECPG)2024-11-06 21:12Financial 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]