Business
Encore Capital Group Announces Third Quarter 2021 Financial Results
Collections of $567 million GAAP EPS of $2.66 Share repurchases of $41 million in Q3 2021 and $88 million YTD through three quartersLaunching $300 million
About this update from Encore Capital Group Inc
[{"type":"text","content":"Collections of $567 million GAAP EPS of $2.66 Share repurchases of $41 million in Q3 2021 and $88 million YTD through three quartersLaunching $300 million tender offer for Encore common shares on November 4 SAN DIEGO, Nov. 03, 2021 (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, 2021. “The third quarter for Encore was another period of strong performance as we continued to execute our strategy and deliver on our financial objectives, which include a focus on our capital allocation priorities,” said Ashish Masih, President and Chief Executive Officer. “Our financial performance was driven primarily by our strong collections in the period, particularly within our MCM business.” “On a global basis, our portfolio purchases were $168 million in the quarter, nearly matching the $170 million purchase total from the third quarter a year ago. Despite lower market supply due to fewer charge-offs, we continue to acquire portfolios at attractive returns, which is enabled by our disciplined purchasing as well as our superior analytics and collections effectiveness.” “Our business continues to perform extremely well, delivering strong returns and cash flows. As a result, our balance sheet has continued to strengthen as we have further reduced our leverage ratio1 to 1.8x, which is now below our target range of 2 to 3x. After purchasing $88 million of Encore shares through three quarters of 2021, including $41 million in the third quarter, we are now accelerating the return of capital by initiating a tender offer. Tomorrow morning we plan to launch a $300 million tender offer for our common shares. After the completion of the tender, assuming we purchase the entire $300 million amount, we expect to maintain a strong financial position, with approximately $700 million in available liquidity, leverage still at the low end of our target range and full access to capital markets. This strong position provides us ample liquidity to fully capitalize on future portfolio purchasing opportunities,” said Masih. 1 Leverage ratio defined below. Financial Highlights for the Third Quarter of 2021: Three Months Ended September 30,(in thousands, except percentages and earnings per share)2021 2020 ChangeCollections$56...