Business
Encore Capital Group Announces Third Quarter 2019 Financial Results
GAAP EPS of $1.23 per share and record non-GAAP Economic EPS of $1.64 per shareEncore global revenues up 6% to a record $356 millionMCM (United States)
About this update from Encore Capital Group Inc
[{"type":"text","content":"GAAP EPS of $1.23 per share and record non-GAAP Economic EPS of $1.64 per shareEncore global revenues up 6% to a record $356 millionMCM (United States) portfolio purchases up 41% to $173 million and on track for record in 2019 SAN DIEGO, Nov. 06, 2019 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the third quarter ended September 30, 2019.\n “The third quarter was another outstanding period for Encore,” said Ashish Masih, President and Chief Executive Officer. “We have again achieved record results across a number of key financial measures and we are delivering our strongest performance in years. “We continue to make solid progress on our strategic priorities that are contributing to our success. We are strengthening our balance sheet, focusing our resources on the U.S. and U.K. markets, where we have the highest returns, and continuing to enhance our competitive advantages through innovation. “In the U.S., portfolio purchases of $173 million were up 41% compared to the same period a year ago, keeping us on track to establish a new record for purchases in the U.S. in 2019. In Europe, Cabot’s debt leverage continues to improve, driven by gains in operating efficiency and our focus on purchasing portfolios at higher returns. At the same time in Europe, cash collections grew 3% and estimated remaining collections grew 4%, both in constant currency terms,” said Masih. In August, the Company sold its Australian subsidiary Baycorp, which reduced Encore’s operating footprint, consistent with the Company’s initiative to focus its resources on businesses with higher risk-adjusted returns. As a result of the transaction, Encore’s GAAP net income in the quarter was reduced by $7.0 million after tax, or $0.22 per share. Key Financial Metrics for the Third Quarter of 2019: Estimated remaining collections (ERC) increased $76 million compared to the end of the same period of the prior year, to $7.3 billion.Portfolio purchases were $260 million, including $173 million in the U.S. and $85 million in Europe.Gross collections of $499 million were approximately equal to the same period of the prior year.Total revenues, adjusted by net allowances, increased 6% to a record $356 million, compared to $337 million in the third quarter of 2018.T...