Business
Encore Capital Group Announces First Quarter 2020 Financial Results
GAAP loss of $(0.33) per share and non-GAAP Economic loss of $(0.19) per share includes $2.77 per share negative impact of COVID-19-related collections
About this update from Encore Capital Group Inc
[{"type":"text","content":"GAAP loss of $(0.33) per share and non-GAAP Economic loss of $(0.19) per share includes $2.77 per share negative impact of COVID-19-related collections forecast revisionsRecord global cash collections of $527 millionGlobal revenues of $289 million are net of a $109 million non-cash charge due to COVID-19-related collections forecast revisions SAN DIEGO, May 11, 2020 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2020.\n “The first quarter was an unprecedented period of achievement for Encore as we adapted quickly to the COVID-19 pandemic to protect our people and minimize the impact on our business,” said Ashish Masih, President and Chief Executive Officer. “Over the last several quarters, Encore has been delivering strong underlying operating performance and this quarter was on track to produce record results once again. In Q1, we delivered record collections and cash generation, as measured by Adjusted EBITDA plus collections applied to principal balance. With the onset of COVID-19 we activated our business continuity plans and promptly took steps to protect our employees. Through a combination of social distancing and working from home we are operational and productive in each of our businesses while maintaining our focus on compliance and consumer experience. As a result of COVID-19 we revised our collections forecast to reflect an expected delay in collections, which under accounting principles resulted in a non-cash charge to revenues in Q1 and significantly impacted our earnings for the quarter.” “Looking forward, we have a solid liquidity position and we believe the strength of our balance sheet, which we have improved over the last two years, will enable us to capture the opportunities in our core markets, the U.S. and the U.K., which are both poised for substantial growth.” “We take pride in our consumer-centric collections approach that focuses on treating consumers with respect and empathy. Many of the hardships brought about by COVID-19 and the measures implemented to contain the spread of the virus are similar in nature to the hardships encountered by our consumers on a day-to-day basis. Our consumer-centric collections approach is a core competency that is designed specifi...