Encore Capital Group Inc · NASDAQ:ECPG
Encore Capital — Wall Street Analyst Forum (March 2004)
18 slides from Encore Capital's conference presentation, Mar 5, 2004
Slide 1: Encore Capital Group, Inc.
Encore Capital Group, Inc. NASDAQ: ECPG March 3, 2004 Presentation to Wall Street Analyst Forum New York, New York Rev. 3-4-04
Slide 2: Forward-Looking Statements
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 achieve
Slide 3: Encore Capital Group, Inc: 50 Year Old Purchaser of Consumer Debt
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
Slide 4: Compelling Fundamentals
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
Slide 5: Competitive Advantage
Competitive Advantage Account Level Analytics Multiple Collection Strategies Sophisticated Account Management System
Slide 6: Business Drivers
Business Drivers Buy Right Collect Well Manage Expenses Challenge Everything Demand Professional and Ethical Behavior
Slide 7: Basic Business Model
Basic Business Model This Is How We Make Money Years >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% Repres
Slide 8: Portfolio Purchases = Raw Material
Portfolio Purchases = Raw Material Total Portfolio Purchases Through December 31, 2003 7.3 Million Accounts With $12.7 Billion Face Purchase Price: $285.4 Million or 2.2¢ This Management Has Bought Through December 31, 2003 4.8 Million Accounts With $7.7 Billion Face Purchase Price: $195.3 Million o
Slide 9: $60 $50 $40 $30 $20 $10 $0 1Q01 2Q01 4Q01 1902 2Q02 2Q02 4Q02
$60 $50 $40 $30 $20 $10 $0 1Q01 201 2Q01 4Q01 1902 2Q02 2Q02 4Q02 1903 2Q02 2Q03 4Q 02
Slide 10: Collection Innovation Drives Our Performance Improvements
Collection Innovation Drives Our Performance Improvements
Slide 11: Innovation Yields Multiple Strengths
Innovation Yields Multiple Strengths
Slide 12: Portfolio Performance
Portfolio Performance *Average Multiple for All Portfolios at 6 Months, 12 Months, and 24 Months Respectively as of 12/31/03. $1.9 Billion $ 4.3 Billion $ 6.2 Billion Total Face Value # of Portfolios
Slide 13: Portfolio Performance – Another View
Portfolio Performance – Another View Multiple of Purchase Price Collected by Year of Purchase
Slide 14: Expense Management: Cost Per Dollar Collected Has Decreased by 30%
Expense Management Cost Per Dollar Collected Has Decreased by 30% While Monthly Collections Have Grown by 277%
Slide 15: Strong Financial Performance
Strong Financial Performance Resulting in a Return to Profitability *As Adjusted for Unusual Items .
Slide 16: Strong Financial Performance
Strong Financial Performance
Slide 17: Drivers for Growth
Drivers for Growth Core Business Growth Innovations and Analysis New Financing Validation of Remaining Value Model Profitable Investment of Cash
Slide 18: Experienced Management Team
Experienced Management Team Name / Position Carl C. Gregory, III President & CEO Barry R. Barkley EVP & CFO J. Brandon Black EVP & COO Alison James SVP Robin R. Pruitt SVP John Treiman SVP & CIO Eric Von Dohlen, PhD VP Experience President and CEO; Former Chairman, President and CEO of West Capital
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