Encore Capital Group Announces First Quarter 2014 Financial Results; Diversification and Expansion Progress Drives Record Quarter

Financial Highlights for the First Quarter of 2014:

• Gross collections from the portfolio purchasing and recovery business grew 47% to $396.7 million, compared to $270.2 million in the same period of the prior year.
• Investment in receivable portfolios in the portfolio purchasing and recovery business was $467.6 million, to purchase $4.3 billion in face value of debt, compared to $58.8 million, to purchase $1.6 billion in face value of debt in the same period of the prior year. 
• Available capacity under Encore's revolving credit facility, subject to borrowing base and applicable debt covenants, was $470 million as of March 31, 2014, not including the $250 million additional capacity provided by the facility's accordion feature. Total debt was $2.6 billion as of March 31, 2014, compared to $1.9 billion as of December 31, 2013.
• Total revenues increased 75% to $253.7 million, compared to $144.6 million in the same period of the prior year.
• Total operating expenses increased 75% to $185.5 million, compared to $105.9 million in the same period of the prior year. Adjusted Operating Expenses (defined as operating expenses excluding stock-based compensation expense, expenses related to non-portfolio purchasing and recovery business, one-time charges, and acquisition related legal and advisory expenses) per dollar collected for the portfolio purchasing and recovery business increased to 38.4%, compared to 35.7% in the same period of the prior year.
• Adjusted EBITDA (defined as net income before interest, taxes, depreciation and amortization, stock-based compensation expenses, portfolio amortization, one-time charges, and acquisition and integration related expenses), increased 43% to $249.7 million, compared to $174.5 million in the same period of the prior year.
• Total interest expense increased to $38.0 million, as compared to $6.9 million in the same period of the prior year, reflecting the financing of Encore's recent acquisitions.
• Net income attributable to Encore was $23.2 million, or $0.82 per fully diluted share, compared to net income attributable to Encore of $19.4 million, or $0.80 per fully diluted share, in the same period of the prior year.
• Adjusted Income Attributable to Encore (defined as net income attributable to Encore excluding the noncontrolling interest, non-cash interest and issuance cost amortization, one-time charges, and acquisition and integration related expenses, all net of tax) increased to $28.8 million, compared to Adjusted Income Attributable to Encore of $20.9 million in the same period of the prior year.
• Adjusted Income Attributable to Encore per Share (also referred to as Economic EPS) grew 26% to $1.08, compared to $0.86 in the same period of the prior year. In the first quarter, Economic EPS adjusts for approximately 1.5 million shares associated with convertible notes that will not be issued but are reflected in the fully diluted share count for accounting purposes.

Conference Call and Webcast

The Company will hold a conference call today at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to discuss first quarter financial results.

Members of the public are invited to listen to the event via a listen-only telephone conference call line or the Internet. To access the live telephone conference call, please dial (877) 670-9781 or (631) 456-4378. The Conference ID is 35733408. To access the live webcast via the Internet, log on to the Investors page of the Company's website at www.encorecapital.com.

Non-GAAP Financial Measures

This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company has included Adjusted Income Attributable to Encore and Adjusted Income Attributable to Encore per Share (also referred to as Economic EPS when adjusted for certain shares associated with our convertible notes that will not be issued but are reflected in the fully diluted share count for accounting purposes) because management uses this measure to assess operating performance, in order to highlight trends in the Company's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The Company has included information concerning Adjusted EBITDA because management utilizes this information, which is materially similar to a financial measure contained in covenants used in the Company's revolving credit facility, in the evaluation of its operations and believes that this measure is a useful indicator of the Company's ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. The Company has included information concerning Adjusted Operating Expenses in order to facilitate a comparison of approximate cash costs to cash collections for the portfolio purchasing and recovery business in the periods presented. Adjusted Income Attributable to Encore, Adjusted Income Attributable to Encore per Share/Economic EPS, Adjusted EBITDA, and Adjusted Operating Expenses have not been prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, net income and total operating expenses as indicators of the Company's operating performance. Further, these non-GAAP financial measures, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

About Encore Capital Group, Inc.

Encore Capital Group, an international specialty finance company with operations spanning seven countries, provides debt recovery solutions for consumers and property owners across a broad range of assets. Through its subsidiaries, the Company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers, and partners with individuals as they repay their obligations and work toward financial recovery. Through its Propel Financial Services subsidiary, the Company assists property owners who are delinquent on their property taxes by structuring affordable monthly payment plans and purchases delinquent tax liens directly from selected taxing authorities. Through its subsidiaries in the United Kingdom, Cabot Credit Management and Marlin Financial Services, the Company is a market-leading acquirer and manager of consumer debt in the United Kingdom and Ireland. Through its Grove Capital Management subsidiary, the Company acquires and manages consumer non-performing loans, including insolvencies in the United Kingdom (in particular, individual voluntary arrangements, or IVAs) and non-bank receivables in Spain. Through its Refinancia subsidiary, the Company services distressed consumer debt in Colombia and Peru. Encore's success and future growth are driven by its sophisticated and widespread use of analytics, its broad investments in data and behavioral science, the significant cost advantages provided by its highly efficient operating model and proven investment strategy, and the Company's demonstrated commitment to conducting business ethically and in ways that support its consumers' financial recovery.

Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P SmallCap 600, and the Wilshire 4500. More information about the Company can be found at www.encorecapital.com. More information about the Company's Cabot Credit Management subsidiary can be found at www.cabotcm.com.

Encore Capital Group's website and Cabot Credit Management's website, and the information contained therein, are not incorporated into and are not a part of this press release.

Forward Looking Statements

The statements in this press release 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 include, but are not limited to, statements regarding our future operating results, performance, business plans or prospects. For all "forward-looking statements," the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K and 10-Q, as they may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

Contact:

Encore Capital Group, Inc.

Paul Grinberg (858) 309-6904
paul.grinberg@encorecapital.com

Bruce Thomas (858) 309-6442
bruce.thomas@encorecapital.com

FINANCIAL TABLES FOLLOW

ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Financial Condition (In Thousands, Except Par Value Amounts) (Unaudited)
	March 31,  2014				December 31,  2013
Assets
Cash and cash equivalents	$	196,389			$	126,213
Investment in receivable portfolios, net	1,904,030				1,590,249
Deferred court costs, net	42,679				41,219
Receivables secured by property tax liens, net	209,455				212,814
Property and equipment, net	55,879				55,783
Other assets	181,697				154,783
Goodwill	844,567				504,213
Total assets	$	3,434,696			$	2,685,274
Liabilities and stockholders' equity
Liabilities:
Accounts payable and accrued liabilities	$	124,803			$	137,272
Debt	2,612,133				1,850,431
Other liabilities	99,469				95,100
Total liabilities	2,836,405				2,082,803
Commitments and contingencies
Redeemable noncontrolling interest	26,434				26,564
Redeemable equity component of convertible senior notes	11,176				—
Stockholders' equity:
Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding	—				—
Common stock, $.01 par value, 50,000 shares authorized, 25,681 shares and 25,457 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	257				255
Additional paid-in capital	132,290				171,819
Accumulated earnings	417,808				394,628
Accumulated other comprehensive gain	6,932				5,195 Werbung Mehr Nachrichten zur Encore Capital Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 06:15 - PR Newswire Mondi Plc - Director/PDMR Shareholding 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 08.05.24 - ARIVA.DE Redaktion Nachfrage nach JP Morgan Chase verhilft Dow Jones in die Gewinnzone (39.054 Pkt.) Brandaktuell!    InnoCan Pharma: Großartige Gelegenheit kurz vor den Quartalszahlen?! weiterlesen» Anzeige wo-site-teaser-box-16890_site-teaser-box_2024-05-09_09%253A00%253A00_2024-05-10_09%253A00%253A59