Welcome to our dedicated page for Encore Capital Group news (Ticker: ECPG), a resource for investors and traders seeking the latest updates and insights on Encore Capital Group stock.
Encore Capital Group, Inc. (NASDAQ: ECPG) is a prominent, international specialty finance company headquartered in San Diego, California. The company provides a comprehensive suite of debt management and recovery solutions for consumers and property owners across a diverse range of financial assets.
Encore operates primarily through its subsidiaries, purchasing portfolios of consumer receivables from major financial institutions such as banks, credit unions, and utility providers. The company collaborates closely with individuals to help them repay their obligations and work toward achieving financial recovery. Encore's unique approach focuses on building a partnership with consumers, enhancing their financial health over time.
One of Encore’s significant subsidiaries, Propel Financial Services, specializes in assisting property owners who are behind on their property taxes by structuring affordable monthly payment plans. Additionally, Encore's Midland Credit Management (MCM) focuses on overseeing the recovery of purchased receivables.
Encore reported strong results for the third quarter of 2023, with robust purchasing for its U.S. business at favorable returns and stable collections performance across key markets. The company’s U.S. portfolio supply has grown, driven by increased credit card lending and rising charge-off rates, leading to improved portfolio pricing and returns.
In Europe, Encore's Cabot business faces a competitive portfolio purchasing market, causing the company to reallocate capital to the more favorable U.S. market. Despite these challenges, Encore's disciplined strategy and robust balance sheet have resulted in a record year of capital deployment in the U.S. for 2023, with expectations for continued strong returns into 2024.
Apart from its core business activities, Encore is committed to corporate social responsibility. The company has partnered with Junior Achievement USA to support financial literacy and education across several U.S. locations, aligning with its mission to promote economic freedom.
As a publicly traded company, Encore Capital Group is listed on the NASDAQ Global Select Market and is a component of the Russell 2000, S&P SmallCap 600, and the Wilshire 4500 indices. With a strategic focus on sustainable financial recovery solutions, Encore continues to play a vital role in the consumer credit ecosystem.
Encore Capital Group (NASDAQ: ECPG) has initiated a modified "Dutch auction" tender offer to repurchase up to $300 million of its common stock, at prices ranging from $52.00 to $60.00 per share. The tender offer will close on December 2, 2021. This offer aims to buy back shares using available cash or revolving credit. The company will determine the lowest price per share to fulfill the total consideration, with provisions for an additional 2% of outstanding shares if demand exceeds the initial amount. Shareholders should follow specific guidelines to participate.
Encore Capital Group reported strong Q3 2021 financial results, with collections of $567 million and GAAP EPS of $2.66, a 55% increase from Q3 2020. The company also returned capital through share repurchases totaling $41 million in Q3 and $88 million year-to-date. A $300 million tender offer for common shares is set to launch on November 4. Despite a 7% decline in estimated remaining collections, Encore's leverage ratio improved to 1.8x, below its target range, indicating a strong financial position with $700 million in liquidity.
Encore Capital Group (ECPG) will release its third-quarter 2021 financial results on November 3, 2021, after market close. The company will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) featuring its CEO and CFO discussing the results. The public can access the webcast through Encore's Investor Relations page or listen by phone. A replay will be available for seven days post-call. Encore specializes in debt recovery solutions and operates globally, servicing portfolios from banks and utility providers.
Encore Capital Group (NASDAQ: ECPG) has amended its global senior secured revolving credit facility, reducing LIBOR and EURIBOR floors from 0.75% to 0.00% and extending the termination date to September 2025. This move showcases the strength of Encore's funding structure and reflects ongoing efforts to enhance its balance sheet. The company recently replaced legacy bonds from its European subsidiary, Cabot Credit Management, saving 325 basis points on interest expenses. These strategic financial adjustments aim to improve Encore's overall financial standing.
Encore Capital Group (ECPG) reported strong Q2 2021 results, with record collections of $612 million and GAAP net income of $97 million, translating to GAAP EPS of $3.07. The company reduced its leverage to 1.9x from 2.4x year-over-year. Portfolio purchases amounted to $143 million, down 4% compared to last year, due to lower market supply. Encore's operating expenses rose 23% to $253 million, impacting net income, which fell 26% year-over-year. The company continues to prioritize capital allocation, spending $27 million on share repurchases.
Encore Capital Group, Inc. (ECPG) will announce its Q2 2021 financial results on August 4, 2021, after market close. A conference call featuring CEO Ashish Masih and CFO Jonathan Clark will follow at 2:30 p.m. Pacific. The public can access the call via a live webcast on Encore's Investor Relations webpage or through telephone by dialing (855) 541-0982. A replay will be available for seven days post-call. Encore specializes in debt recovery solutions and manages portfolios of receivables from various financial sectors.
Encore Capital Group (NASDAQ: ECPG) has appointed Steve Carmichael as Senior Vice President and Chief Risk and Compliance Officer. Reporting to CEO Ashish Masih, Carmichael joins the Executive Leadership Team and will be accountable to the Board's Risk Committee. His experience includes leadership in risk management at Discover Financial Services and roles at Capital One, HSBC, and Wells Fargo. Masih emphasized Carmichael's expertise as crucial for enhancing Encore’s risk management programs, aligning with the company’s values of integrity and excellence.
Encore Capital Group (NASDAQ: ECPG) has successfully completed a £250 million senior secured note offering at 4.25% due 2028. Proceeds will be used to redeem £226.2 million of 7.50% notes due 2023, leading to significant interest savings. This refinancing strategy is expected to lower funding costs and extend maturities, with anticipated savings offsetting transaction costs by year-end 2021. The company has refined its debt portfolio, reducing legacy bonds by $1.2 billion, positioning it for favorable capital deployment opportunities.
Encore Capital Group has announced the pricing of £250 million in senior secured notes at a 4.250% interest rate, due June 1, 2028. The notes, available only to qualified institutional buyers, will be secured by the Company’s assets and those of its subsidiaries. Proceeds will be used to fully redeem £226.2 million in existing senior secured notes due 2023 and cover related transaction costs. The Company anticipates recording approximately $8 million in after-tax charges in Q2 2021 from this transaction.
Encore Capital Group (Nasdaq: ECPG) has announced plans to offer £250 million in senior secured notes due 2028 to qualified institutional buyers. The offering, subject to market conditions, aims to secure funding that will allow the company to redeem £226.2 million of existing 7.500% senior secured notes due 2023. This issuance will be fully guaranteed by its material subsidiaries and secured by the company's assets. The notes will not be registered under the Securities Act and are intended for private offering only.
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