Encore Capital Group Inc · NASDAQ:ECPG
Encore Capital — Roth Capital Partners' New York Conference 2004
19 slides from Encore Capital's conference presentation, Sep 16, 2004
Slide 1: Presentation to Roth Capital Partners' New York Conference
September 14, 2004 Presentation to Roth Capital Partners’ New York Conference Encore Capital Group, Inc. NASDAQ: ECPG
Slide 2: Forward-Looking Statements
Certain Statements in This Presentation Constitute “Forward-looking Statements” Within the Meaning of the Private Securities Litigation Reform Act of 1995. Such Statements Involve Risks, Uncertainties and Other Factors Which May Cause Actual Results, Performance or Achievements of the Company and It
Slide 3: Encore Capital Group, Inc
50 Year Old Purchaser of Consumer Debt Present Management Team Took Over in Mid-2000 Unique Business Model Excellent Results Strong Drivers for Growth Encore Capital Group, Inc
Slide 4: Compelling Fundamentals
“America’s Appetite for Borrowing Money Bloats U.S. Consumer Debt to a Record High Almost Every Month. As of September, the Tab Stood at $2 Trillion and Was Spurting at an Annual Rate of 10 Percent. Through Good Times and Bad, Spending Tomorrow’s Dollars Today Never Goes Out of Fashion.” Source: Cre
Slide 5: Competitive Advantage
Account Level Analytics Multiple Collection Strategies Sophisticated Account Management System Competitive Advantage
Slide 6: Business Drivers
Buy Right Collect Well Manage Expenses Challenge Everything Demand Professional and Ethical Behavior Business Drivers
Slide 7: Basic Business Model
This Is How We Make Money Years 0 1 2 3 >3 Total Investment ($100) Collections $114 $74 $51 $31 $270 Cumulative Multiple Of Costs Collected 1.1x 1.9x 2.4x 2.7x Total Operating Expense @40% ($46) ($30) ($20) ($12) ($108) Net Cash Flow Stream ($100) $68 $44 $31 $19 $162 Net IRR 29% Representative Data
Slide 8: Portfolio Purchases = Raw Material
Account Level Valuation Provides Several Competitive Advantages Month Since Charge - off Face Value ($ in Billions) % of Total Face Purch. 0 - 6 $ 2.0 22% 7 - 12 $ 1.0 11% 13 - 18 $ 2.0 22% 19 - 24 $ 0.8 9% 25 - 36 $ 1.8 19% 37+ $ 1.6 17% Total $ 9.2 100% Provides Ability to Create Positively Select
Slide 9: sao
sao saa gia? S84 sare $82 fs S58 ii 1001 2001 2001 4001 1002 2002 3002 4002 1@m 2008 3003 408 1004 2004 $00 +
Slide 10: Collection Innovation Drives Our Performance Improvement
Collection Innovation Drives Our Performance Improvement
Slide 11: Innovation Yields Multiple Strengths
Innovation Yields Multiple Strengths
Slide 12: Portfolio Performance
36 months 24 months 12 months 6 months 84 $2.8 Billion $0.7 Billion $6.2 Billion $ 7.6 Billion Total Face Value 29 143 189 # of Portfolios Multiple of Purchase Price Collected* *Actual Data Represents the Average Multiple for All Portfolios at 6 Months, 12 Months, 24 Months and 36 Months As Of June
Slide 13: Portfolio Performance – Another View
Multiple of Purchase Price Collected by Year of Purchase Portfolio Performance – Another View
Slide 14: Expense Management
Cost Per Dollar Collected Has Decreased by 27% While Monthly Collections Have Grown 325% Since the Beginning of 2001 Expense Management
Slide 15: Strong Financial Performance
Resulting in a Return to Profitability *Excludes One-Time Items. Strong Financial Performance
Slide 16: Strong Financial Performance
Strong Financial Performance
Slide 17: Drivers for Growth
Core Business Growth Innovations and Analysis New Financing Profitable Investment of Cash Drivers for Growth
Slide 18: Management Team
SVP, Collections Operations since April 2004; Former Director of Service Strategy at Gateway, Inc. Anna Hansen SVP VP and Chief Credit Risk Officer since February 2001; Former VP of Decision Science for Associates Home Equity Division Eric Von Dohlen VP SVP & CIO*; Former VP & CIO of West Capital; F
Slide 19: Presentation to Roth Capital Partners' New York Conference
September 14, 2004 Presentation to Roth Capital Partners’ New York Conference Encore Capital Group, Inc. NASDAQ: ECPG
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