Business
Encore Capital Group Announces First Quarter 2023 Financial Results
Global collections of $462 millionPortfolio purchases of $276 million up 63%, including a quarterly record $213 million in the U.S.Portfolio supply growth
About this update from Encore Capital Group Inc
[{"type":"text","content":"Global collections of $462 millionPortfolio purchases of $276 million up 63%, including a quarterly record $213 million in the U.S.Portfolio supply growth accelerating in U.S. marketGAAP EPS of $0.75 impacted by $0.19 per share charge related to headcount reductions in Europe SAN DIEGO, May 03, 2023 (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, 2023. “Encore’s performance in the first quarter reflected normalized consumer behavior in each of our key markets,” said Ashish Masih, President and Chief Executive Officer. “As such, collections have returned to pre-pandemic levels for our MCM business in the U.S. and have stabilized for our Cabot business in Europe. At the same time, as anticipated, the growth of portfolio supply in the U.S. is accelerating with lending and charge-off rates steadily growing. As a result, MCM portfolio purchases in the U.S. in the first quarter were a record $213 million, more than double the amount we purchased in Q1 a year ago.” “In Europe, in the face of near double-digit inflation, and consistent with our message from a quarter ago, we took actions in the first quarter to manage our cost base, including headcount reductions in support functions, that resulted in a $6 million pre-tax charge.” “As a result of the disciplined execution of our strategy, Encore is well-positioned with the operational capability and balance sheet to capitalize on the growing portfolio purchasing opportunities in the market. Looking forward, we expect portfolio purchases in the U.S. in the second quarter to be at a similar level to those in Q1. We're also as committed as ever to the critical role we play in the consumer credit ecosystem and to help consumers regain their financial freedom, especially in this rising charge-off rate environment,\" said Masih. Financial Highlights for the First Quarter of 2023: Three Months Ended March 31,(in thousands, except percentages and earnings per share) 2023 2022 ChangeCollections$ 462,356 $ 519,414 (11) %Revenues$ 312,630 $ 499,682 (37) %Portfolio purchases(1)$ 276,431 $ 169,505 63 %Estimated Remaining Collections (ERC)$ 7,789,980 $ 7,799,940 0 %Operating expenses$ 242,492 $ 234,668 3 %GAAP net income$ 18,626 $ 175,749 (89) %GAAP earnings p...