Encore Capital Group Announces Fourth Quarter and Full-Year 2024 Financial Results
Encore Capital Group (NASDAQ: ECPG) reported its Q4 and full-year 2024 results, marking significant growth despite challenges. The company achieved record global portfolio purchases of $1.35 billion, up 26% year-over-year, while global collections increased 16% to $2.16 billion.
In the U.S., MCM business saw portfolio purchases rise 23% to $1 billion, with collections up 20%. The Cabot business in UK and Europe increased portfolio purchases by 36%, including Q4 purchases of $200 million. However, restructuring actions, including exit from Spanish and Italian markets, led to a $101 million goodwill charge in Q4.
The company reported a net loss of $139 million, or ($5.83) per share, primarily due to non-cash charges related to Cabot's goodwill impairment. For 2025, Encore expects global portfolio purchases to exceed $1.35 billion and collections to increase by 11% to $2.4 billion. The company plans to resume share repurchases in 2025.
Encore Capital Group (NASDAQ: ECPG) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, segnando una crescita significativa nonostante le sfide. L'azienda ha raggiunto acquisti globali record di portafoglio pari a 1,35 miliardi di dollari, con un aumento del 26% rispetto all'anno precedente, mentre le riscossioni globali sono aumentate del 16% a 2,16 miliardi di dollari.
Negli Stati Uniti, il business MCM ha visto un aumento degli acquisti di portafoglio del 23% a 1 miliardo di dollari, con riscossioni in aumento del 20%. Il business Cabot nel Regno Unito e in Europa ha incrementato gli acquisti di portafoglio del 36%, inclusi acquisti del quarto trimestre per 200 milioni di dollari. Tuttavia, le azioni di ristrutturazione, tra cui l'uscita dai mercati spagnolo e italiano, hanno portato a un addebito di goodwill di 101 milioni di dollari nel quarto trimestre.
L'azienda ha riportato una perdita netta di 139 milioni di dollari, ovvero ($5,83) per azione, principalmente a causa di oneri non monetari legati all'impatto negativo sul goodwill di Cabot. Per il 2025, Encore prevede che gli acquisti globali di portafoglio supereranno 1,35 miliardi di dollari e che le riscossioni aumenteranno dell'11% a 2,4 miliardi di dollari. L'azienda prevede di riprendere i riacquisti di azioni nel 2025.
Encore Capital Group (NASDAQ: ECPG) informó sus resultados del cuarto trimestre y del año completo 2024, marcando un crecimiento significativo a pesar de los desafíos. La compañía logró compras globales de cartera récord de 1.35 mil millones de dólares, un aumento del 26% interanual, mientras que las cobranzas globales aumentaron un 16% a 2.16 mil millones de dólares.
En EE. UU., el negocio de MCM vio aumentar las compras de cartera un 23% a 1 mil millones de dólares, con cobranzas en aumento del 20%. El negocio Cabot en el Reino Unido y Europa incrementó las compras de cartera en un 36%, incluyendo compras del cuarto trimestre por 200 millones de dólares. Sin embargo, las acciones de reestructuración, incluida la salida de los mercados español e italiano, llevaron a un cargo por goodwill de 101 millones de dólares en el cuarto trimestre.
La compañía reportó una pérdida neta de 139 millones de dólares, o ($5.83) por acción, principalmente debido a cargos no monetarios relacionados con la disminución del goodwill de Cabot. Para 2025, Encore espera que las compras globales de cartera superen los 1.35 mil millones de dólares y que las cobranzas aumenten un 11% a 2.4 mil millones de dólares. La empresa planea reanudar la recompra de acciones en 2025.
Encore Capital Group (NASDAQ: ECPG)는 2024년 4분기 및 연간 실적을 발표했으며, 어려움에도 불구하고 상당한 성장을 기록했습니다. 이 회사는 13억 5천만 달러의 글로벌 포트폴리오 구매 기록을 달성했으며, 이는 전년 대비 26% 증가한 수치입니다. 글로벌 수금은 16% 증가하여 21억 6천만 달러에 달했습니다.
미국에서 MCM 사업은 포트폴리오 구매가 23% 증가하여 10억 달러에 이르렀고, 수금은 20% 증가했습니다. 영국 및 유럽의 Cabot 사업은 4분기 구매 2억 달러를 포함하여 포트폴리오 구매를 36% 증가시켰습니다. 그러나 스페인 및 이탈리아 시장에서의 철수 등 구조조정 조치로 인해 4분기 동안 1억 1천만 달러의 goodwill 비용이 발생했습니다.
회사는 1억 3천9백만 달러의 순손실을 보고했으며, 이는 주당 ($5.83)로, 주로 Cabot의 goodwill 손상과 관련된 비현금 비용 때문입니다. Encore는 2025년에는 글로벌 포트폴리오 구매가 13억 5천만 달러를 초과하고 수금이 11% 증가하여 24억 달러에 이를 것으로 예상하고 있습니다. 이 회사는 2025년에 자사주 매입을 재개할 계획입니다.
Encore Capital Group (NASDAQ: ECPG) a publié ses résultats du quatrième trimestre et de l'année 2024, marquant une croissance significative malgré les défis. L'entreprise a réalisé des achats de portefeuille mondiaux record de 1,35 milliard de dollars, en hausse de 26 % par rapport à l'année précédente, tandis que les encaissements mondiaux ont augmenté de 16 % pour atteindre 2,16 milliards de dollars.
Aux États-Unis, l'activité MCM a vu ses achats de portefeuille augmenter de 23 % pour atteindre 1 milliard de dollars, avec des encaissements en hausse de 20 %. L'activité Cabot au Royaume-Uni et en Europe a augmenté ses achats de portefeuille de 36 %, y compris des achats du quatrième trimestre de 200 millions de dollars. Cependant, les actions de restructuration, y compris le retrait des marchés espagnol et italien, ont entraîné une charge de goodwill de 101 millions de dollars au quatrième trimestre.
L'entreprise a déclaré une perte nette de 139 millions de dollars, soit ($5,83) par action, principalement en raison de charges non monétaires liées à la dépréciation du goodwill de Cabot. Pour 2025, Encore s'attend à ce que les achats de portefeuille mondiaux dépassent 1,35 milliard de dollars et que les encaissements augmentent de 11 % pour atteindre 2,4 milliards de dollars. L'entreprise prévoit de reprendre les rachats d'actions en 2025.
Encore Capital Group (NASDAQ: ECPG) hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und dabei ein signifikantes Wachstum trotz Herausforderungen erzielt. Das Unternehmen verzeichnete rekordverdächtige globale Portfoliokäufe in Höhe von 1,35 Milliarden Dollar, was einem Anstieg von 26 % im Jahresvergleich entspricht, während die globalen Einziehungen um 16 % auf 2,16 Milliarden Dollar stiegen.
In den USA stiegen die Portfoliokäufe im MCM-Geschäft um 23 % auf 1 Milliarde Dollar, während die Einziehungen um 20 % zunahmen. Das Cabot-Geschäft im Vereinigten Königreich und Europa erhöhte die Portfoliokäufe um 36 %, einschließlich der Käufe im vierten Quartal in Höhe von 200 Millionen Dollar. Allerdings führten Umstrukturierungsmaßnahmen, darunter der Rückzug aus den spanischen und italienischen Märkten, zu einer Goodwill-Abschreibung von 101 Millionen Dollar im vierten Quartal.
Das Unternehmen berichtete von einem netto Verlust von 139 Millionen Dollar, oder ($5,83) pro Aktie, hauptsächlich aufgrund von nicht zahlungswirksamen Aufwendungen im Zusammenhang mit der Wertminderung des Goodwills von Cabot. Für 2025 erwartet Encore, dass die globalen Portfoliokäufe 1,35 Milliarden Dollar übersteigen und die Einziehungen um 11 % auf 2,4 Milliarden Dollar steigen. Das Unternehmen plant, 2025 die Aktienrückkäufe wieder aufzunehmen.
- Record global portfolio purchases of $1.35B (+26% YoY)
- Global collections up 16% to $2.16B
- US collections increased 20% YoY
- Cash generation growth of 20% for the year
- Plan to resume share repurchases in 2025
- Projected 11% collection growth for 2025
- Net loss of $139M ($5.83 per share)
- $101M goodwill charge in Q4
- Exit from Spanish and Italian markets
- Cabot business faced highly competitive environment
- Required ERC adjustments in Cabot business
Insights
Encore Capital Group's Q4 and full-year 2024 results reveal a stark contrast between robust operational performance and significant restructuring costs that pushed the company into a net loss position. The debt collection specialist reported record global portfolio purchases of
The U.S. operation (MCM) capitalized on favorable market conditions, with portfolio purchases reaching
However, Encore's European Cabot business faced substantial challenges despite portfolio purchase growth of
- Exiting the Spanish secured NPL market (Q3) and Italian NPL market (Q4)
- Significantly reducing Estimated Remaining Collections (ERC) forecasts
- Taking a
$101 million goodwill impairment charge in Q4
These restructuring actions resulted in a full-year net loss of
Looking forward, management projects continued growth with
The stark performance divergence between U.S. and European operations highlights the importance of market-specific execution in the debt purchasing industry. While the immediate financial impact is negative, the restructuring actions position Encore for potentially more sustainable, if somewhat reduced, profitability going forward.
Encore's 2024 results highlight a pronounced divergence in global credit markets that's creating both opportunities and challenges for debt purchasers. The U.S. market is displaying textbook credit cycle dynamics with MCM capitalizing on the expanding supply of non-performing loans. The
What's particularly notable is the
The European situation tells a markedly different story. Cabot's struggles, despite
The substantial ERC adjustments are particularly concerning as they suggest fundamental flaws in collection forecasting methodologies or changing consumer payment behaviors that weren't adequately captured in existing models. These adjustments may foreshadow similar recalibrations across the European debt purchasing sector.
The industry is witnessing an unusual bifurcation where U.S. operations benefit from textbook credit normalization while European operations face market-specific headwinds that transcend the credit cycle. This regional divergence creates both portfolio diversification benefits and operational challenges for global players like Encore.
Management's guidance for
- Favorable U.S. market for portfolio supply continues
- Global portfolio purchases in 2024 up
26% to record$1.35 billion - Global collections in 2024 up
16% to$2.16 billion - Actions taken to resolve Cabot issues resulted in a loss for the quarter and the year
SAN DIEGO, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the fourth quarter and full year ended December 31, 2024.
“2024 was a year of significant growth for Encore,” said Ashish Masih, Encore’s President and Chief Executive Officer. “Our global portfolio purchases increased by
“In the U.S. in 2024, continued growth in bank lending, coupled with rising delinquencies and charge-offs, led to record supply for non-performing loan portfolios and a continuation of the favorable purchasing environment in the U.S. market. As a result, our largest business, MCM, increased U.S. portfolio purchases in 2024 by
“For our Cabot business in the U.K. and Europe, 2024 was a year of progress, but also significant restructuring to resolve certain persistent issues and enable future success. Cabot portfolio purchases increased by
“We believe our reported financial results in 2024, and in particular our net loss of
“Looking ahead, guided by our three pillar strategy, we remain committed to our long-standing financial objectives and our capital allocation priorities. We anticipate our global portfolio purchases in 2025 to exceed the
| Financial Highlights for the Full Year of 2024: | ||||||||||
| Year Ended December 31, | ||||||||||
| (in thousands, except percentages and earnings per share) | 2024 | 2023 | Change | |||||||
| Collections | $ | 2,162,478 | $ | 1,862,567 | 16 | % | ||||
| Revenues | $ | 1,316,361 | $ | 1,222,680 | 8 | % | ||||
| Portfolio purchases(1) | $ | 1,352,035 | $ | 1,073,812 | 26 | % | ||||
| Estimated Remaining Collections (ERC) | $ | 8,501,370 | $ | 8,191,913 | 4 | % | ||||
| Operating expenses | $ | 1,159,031 | $ | 1,206,145 | (4 | )% | ||||
| GAAP net loss | $ | (139,244 | ) | $ | (206,492 | ) | NM | |||
| GAAP loss per share | $ | (5.83 | ) | $ | (8.72 | ) | NM | |||
__________________
| (1) | Includes U.S. purchases of |
| Financial Highlights for the Fourth Quarter of 2024: | ||||||||||
| Three Months Ended December 31, | ||||||||||
| (in thousands, except percentages and earnings per share) | 2024 | 2023 | Change | |||||||
| Collections | $ | 554,595 | $ | 458,350 | 21 | % | ||||
| Revenues | $ | 265,619 | $ | 277,387 | (4 | )% | ||||
| Portfolio purchases(1) | $ | 495,144 | $ | 292,497 | 69 | % | ||||
| Operating expenses | $ | 399,809 | $ | 494,580 | (19 | )% | ||||
| GAAP net loss | $ | (225,307 | ) | $ | (270,762 | ) | NM | |||
| GAAP loss per share | $ | (9.42 | ) | $ | (11.40 | ) | NM | |||
__________________
| (1) | Includes U.S. purchases of |
| Key Impacts from Cabot Actions and other items for the Fourth Quarter of 2024: | |||||||
| Three Months Ended December 31, | |||||||
| (in thousands, except earnings per share impact) | 2024 | EPS Impact(1) | |||||
| Cabot changes in expected future recoveries | $ | (129,128 | ) | $ | (5.40 | ) | |
| Goodwill impairment | $ | (100,600 | ) | $ | (4.21 | ) | |
| Cabot IT-related asset impairment | $ | (18,544 | ) | $ | (0.78 | ) | |
| Loss on extinguishment of debt | $ | (7,832 | ) | $ | (0.28 | ) | |
| Cabot restructuring charges | $ | (6,087 | ) | $ | (0.25 | ) | |
| Total | $ | (262,191 | ) | $ | (10.92 | ) | |
__________________
| (1) | Basic share count was used to calculate EPS impacts. |
Conference Call and Webcast
The Company will host a conference call and slide presentation today, February 26, 2025, at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to discuss fourth quarter and full year results.
Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at www.encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.
For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes.
Non-GAAP Financial Measures
This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure, when added to collections applied to principal balance, is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered an alternative to, or more meaningful than, net income as an indicator of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.
Forward Looking Statements
The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including portfolio purchase volumes, collections and cash generation), performance, business plans or prospects as well as statements regarding future supply, consumer behavior, or macroeconomic environment. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
Contact:
Bruce Thomas
Encore Capital Group, Inc.
Vice President, Global Investor Relations
bruce.thomas@encorecapital.com
SOURCE: Encore Capital Group, Inc.
FINANCIAL TABLES FOLLOW
| ENCORE CAPITAL GROUP, INC. Consolidated Statements of Financial Condition (In Thousands, Except Par Value Amounts) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 199,865 | $ | 158,364 | |||
| Investment in receivable portfolios, net | 3,776,369 | 3,468,432 | |||||
| Property and equipment, net | 80,597 | 103,959 | |||||
| Other assets | 225,090 | 293,256 | |||||
| Goodwill | 507,808 | 606,475 | |||||
| Total assets | $ | 4,789,729 | $ | 4,630,486 | |||
| Liabilities and Equity | |||||||
| Liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 233,545 | $ | 189,928 | |||
| Borrowings | 3,672,762 | 3,318,031 | |||||
| Other liabilities | 116,091 | 185,989 | |||||
| Total liabilities | 4,022,398 | 3,693,948 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Convertible preferred stock, | — | — | |||||
| Common stock, | 237 | 235 | |||||
| Additional paid-in capital | 19,297 | 11,052 | |||||
| Accumulated earnings | 909,927 | 1,049,171 | |||||
| Accumulated other comprehensive loss | (162,130 | ) | (123,920 | ) | |||
| Total stockholders’ equity | 767,331 | 936,538 | |||||
| Total liabilities and stockholders’ equity | $ | 4,789,729 | $ | 4,630,486 | |||
The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.
| December 31, 2024 | December 31, 2023 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 23,875 | $ | 24,472 | |
| Investment in receivable portfolios, net | 895,704 | 717,556 | |||
| Other assets | 3,699 | 19,358 | |||
| Liabilities | |||||
| Accounts payable and accrued liabilities | 2,946 | 1,854 | |||
| Borrowings | 599,830 | 494,925 | |||
| Other liabilities | 887 | 2,452 | |||
| ENCORE CAPITAL GROUP, INC. Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) | |||||||||||||||
| (Unaudited) Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | |||||||||||||||
| Revenue from receivable portfolios | $ | 336,666 | $ | 304,892 | $ | 1,302,567 | $ | 1,204,437 | |||||||
| Changes in recoveries | (95,760 | ) | (52,476 | ) | (89,740 | ) | (82,530 | ) | |||||||
| Total debt purchasing revenue | 240,906 | 252,416 | 1,212,827 | 1,121,907 | |||||||||||
| Servicing revenue | 20,525 | 19,650 | 84,783 | 83,136 | |||||||||||
| Other revenues | 4,188 | 5,321 | 18,751 | 17,637 | |||||||||||
| Total revenues | 265,619 | 277,387 | 1,316,361 | 1,222,680 | |||||||||||
| Operating expenses | |||||||||||||||
| Salaries and employee benefits | 104,616 | 96,760 | 422,910 | 391,532 | |||||||||||
| Cost of legal collections | 68,989 | 56,727 | 259,298 | 224,252 | |||||||||||
| General and administrative expenses | 52,019 | 36,809 | 163,847 | 144,862 | |||||||||||
| Other operating expenses | 37,786 | 29,315 | 130,802 | 111,179 | |||||||||||
| Collection agency commissions | 8,288 | 9,074 | 30,596 | 35,657 | |||||||||||
| Depreciation and amortization | 8,967 | 8,969 | 32,434 | 41,737 | |||||||||||
| Goodwill impairment | 100,600 | 238,200 | 100,600 | 238,200 | |||||||||||
| Impairment of assets | 18,544 | 18,726 | 18,544 | 18,726 | |||||||||||
| Total operating expenses | 399,809 | 494,580 | 1,159,031 | 1,206,145 | |||||||||||
| (Loss) income from operations | (134,190 | ) | (217,193 | ) | 157,330 | 16,535 | |||||||||
| Other expense | |||||||||||||||
| Interest expense | (68,498 | ) | (54,501 | ) | (252,545 | ) | (201,877 | ) | |||||||
| Loss on extinguishment of debt | (7,832 | ) | — | (7,832 | ) | — | |||||||||
| Other income (expense) | 541 | (2 | ) | 6,832 | 5,078 | ||||||||||
| Total other expense | (75,789 | ) | (54,503 | ) | (253,545 | ) | (196,799 | ) | |||||||
| (Loss) income before income taxes | (209,979 | ) | (271,696 | ) | (96,215 | ) | (180,264 | ) | |||||||
| (Provision) benefit for income taxes | (15,328 | ) | 934 | (43,029 | ) | (26,228 | ) | ||||||||
| Net loss | $ | (225,307 | ) | $ | (270,762 | ) | $ | (139,244 | ) | $ | (206,492 | ) | |||
| Loss per share: | |||||||||||||||
| Basic | $ | (9.42 | ) | $ | (11.40 | ) | $ | (5.83 | ) | $ | (8.72 | ) | |||
| Diluted | $ | (9.42 | ) | $ | (11.40 | ) | $ | (5.83 | ) | $ | (8.72 | ) | |||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 23,916 | 23,741 | 23,873 | 23,670 | |||||||||||
| Diluted | 23,916 | 23,741 | 23,873 | 23,670 | |||||||||||
| ENCORE CAPITAL GROUP, INC. Consolidated Statements of Cash Flows (In Thousands) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Operating activities: | |||||||||||
| Net (loss) income | $ | (139,244 | ) | $ | (206,492 | ) | $ | 194,564 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 32,434 | 41,737 | 46,419 | ||||||||
| Other non-cash interest expense, net | 16,325 | 17,160 | 15,875 | ||||||||
| Stock-based compensation expense | 14,012 | 13,854 | 15,402 | ||||||||
| Deferred income taxes | (22,280 | ) | (55,916 | ) | 46,410 | ||||||
| Goodwill impairment | 100,600 | 238,200 | — | ||||||||
| Impairment of assets | 18,544 | 18,726 | 4,075 | ||||||||
| Changes in recoveries | 89,740 | 82,530 | (93,145 | ) | |||||||
| Other, net | 17,880 | (2,259 | ) | 18,798 | |||||||
| Changes in operating assets and liabilities | |||||||||||
| Other assets | (28,245 | ) | 15,894 | (6,722 | ) | ||||||
| Accounts payable, accrued liabilities and other liabilities | 56,402 | (10,443 | ) | (30,995 | ) | ||||||
| Net cash provided by operating activities | 156,168 | 152,991 | 210,681 | ||||||||
| Investing activities: | |||||||||||
| Purchases of receivable portfolios, net of put-backs | (1,336,442 | ) | (1,060,206 | ) | (790,569 | ) | |||||
| Collections applied to investment in receivable portfolios, net | 859,911 | 658,130 | 709,176 | ||||||||
| Purchases of real estate owned | (212 | ) | (26,901 | ) | (39,340 | ) | |||||
| Purchases of property and equipment | (29,007 | ) | (24,807 | ) | (37,224 | ) | |||||
| Proceeds from sale of real estate owned | 56,396 | 52,636 | 27,722 | ||||||||
| Other, net | 8,924 | (793 | ) | — | |||||||
| Net cash used in investing activities | (440,430 | ) | (401,941 | ) | (130,235 | ) | |||||
| Financing activities: | |||||||||||
| Payment of loan and debt refinancing costs | (21,418 | ) | (13,707 | ) | (1,659 | ) | |||||
| Proceeds from credit facilities | 2,031,470 | 1,196,046 | 779,513 | ||||||||
| Repayment of credit facilities | (1,868,111 | ) | (989,627 | ) | (515,703 | ) | |||||
| Proceeds from senior secured notes | 1,000,000 | 104,188 | — | ||||||||
| Repayment of senior secured notes | (789,106 | ) | (39,080 | ) | (39,080 | ) | |||||
| Proceeds from issuance of convertible senior notes | — | 230,000 | — | ||||||||
| Repayment of convertible senior notes | — | (212,480 | ) | (221,153 | ) | ||||||
| Payments to settle derivative instruments | (40,038 | ) | — | — | |||||||
| Repurchase and retirement of common stock | — | — | (87,006 | ) | |||||||
| Other, net | 4,977 | (7,040 | ) | (22,357 | ) | ||||||
| Net cash provided by (used in) financing activities | 317,774 | 268,300 | (107,445 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents | 33,512 | 19,350 | (26,999 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 7,989 | (4,898 | ) | (18,734 | ) | ||||||
| Cash and cash equivalents, beginning of period | 158,364 | 143,912 | 189,645 | ||||||||
| Cash and cash equivalents, end of period | $ | 199,865 | $ | 158,364 | $ | 143,912 | |||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid for interest | $ | 210,580 | $ | 163,815 | $ | 131,391 | |||||
| Cash paid for income taxes, net of refunds | 67,091 | 68,522 | 71,276 | ||||||||
| Supplemental schedule of non-cash investing and financing activities: | |||||||||||
| Investment in receivable portfolios transferred to real estate owned | $ | 5,966 | $ | 7,957 | $ | 1,903 | |||||
| ENCORE CAPITAL GROUP, INC. Supplemental Financial Information Reconciliation of Non-GAAP Metrics | |||||||||||||||
| Adjusted EBITDA | |||||||||||||||
| (in thousands, unaudited) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| GAAP net loss, as reported | $ | (225,307 | ) | $ | (270,762 | ) | $ | (139,244 | ) | $ | (206,492 | ) | |||
| Adjustments: | |||||||||||||||
| Interest expense | 68,498 | 54,501 | 252,545 | 201,877 | |||||||||||
| Loss on extinguishment of debt | 7,832 | — | 7,832 | — | |||||||||||
| Interest income | (1,971 | ) | (1,364 | ) | (7,008 | ) | (4,746 | ) | |||||||
| Provision (benefit) for income taxes | 15,328 | (934 | ) | 43,029 | 26,228 | ||||||||||
| Depreciation and amortization | 8,967 | 8,969 | 32,434 | 41,737 | |||||||||||
| Net loss (gain) on derivative instruments(1) | — | 342 | (267 | ) | (3,170 | ) | |||||||||
| Stock-based compensation expense | 2,281 | 2,837 | 14,012 | 13,854 | |||||||||||
| Acquisition, integration and restructuring related expenses(2) | 6,087 | 827 | 10,451 | 7,401 | |||||||||||
| Goodwill Impairment(3) | 100,600 | 238,200 | 100,600 | 238,200 | |||||||||||
| Impairment of assets(3) | 18,544 | 18,726 | 18,544 | 18,726 | |||||||||||
| Adjusted EBITDA | $ | 859 | $ | 51,342 | $ | 332,928 | $ | 333,615 | |||||||
| Collections applied to principal balance(4) | $ | 337,464 | $ | 213,769 | $ | 1,004,230 | $ | 776,280 | |||||||
________________________
| (1) | Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations. |
| (2) | Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. |
| (3) | During the years ended December 31, 2024, and 2023, we recorded a non-cash goodwill impairment charge of |
| (4) | Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and exit activities. A reconciliation of “collections applied to investment in receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-K for the period ending December 31, 2024. |
FAQ
What caused Encore Capital Group (ECPG) to report a loss in Q4 2024?
How much did Encore Capital's (ECPG) global portfolio purchases grow in 2024?
What are Encore Capital's (ECPG) collection projections for 2025?
Which markets did Encore Capital (ECPG) exit in 2024?
What was MCM's portfolio purchase performance in the US market for 2024?
