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Mar 31, 2020

Encore Q1 2020 Earnings Report

Reported a GAAP loss of $(0.33) per share and non-GAAP Economic loss of $(0.19) per share, which includes $2.77 per share negative impact of COVID-19-related collections forecast revisions. Achieved record global cash collections of $527 million, but global revenues of $289 million reflect a $109 million non-cash charge due to COVID-19-related collections forecast revisions.

Key Takeaways

Encore Capital Group reported a GAAP loss of $(0.33) per share and non-GAAP Economic loss of $(0.19) per share for Q1 2020. The results were significantly impacted by a $109 million non-cash charge due to COVID-19-related collections forecast revisions. However, the company achieved record global cash collections of $527 million.

GAAP net loss attributable to Encore was $10.5 million, or $(0.33) per fully diluted share.

Adjusted net loss attributable to Encore was $5.9 million, or $(0.19) per fully diluted share.

Record global cash collections of $527 million were achieved.

Total revenues were $289 million, which includes a $109 million non-cash charge related to COVID-19.

Estimated remaining collections (ERC) increased $633 million compared to the end of the prior year, to a record $8.5 billion.

Total Revenue
$289M
Previous year: $347M
-16.7%
EPS
-$0.19
Previous year: $1.46
-113.0%
Portfolio purchases
$214M
Previous year: $259M
-17.3%
Gross collections
$527M
Previous year: $514M
+2.5%
Gross Profit
$47.2M
Previous year: $190M
-75.2%
Cash and Equivalents
$188M
Previous year: $167M
+12.6%
Free Cash Flow
$63.3M
Previous year: $764K
+8181.0%
Total Assets
$4.61B
Previous year: $4.81B
-4.1%

Encore

Encore

Forward Guidance

Looking forward, Encore has a solid liquidity position and believes the strength of their balance sheet will enable them to capture opportunities in the U.S. and U.K. markets which are poised for substantial growth.