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Sep 30, 2020
Encore Q3 2020 Earnings Report
Achieved record global collections and ERC.
Key Takeaways
Encore Capital Group reported strong Q3 2020 financial results, with record global collections of $540 million and a 41% increase in GAAP net income to $55 million, or $1.72 per share. The company's estimated remaining collections (ERC) also reached a record $8.5 billion, up 15% year-over-year.
GAAP net income increased by 41% to $55 million, or $1.72 per share.
Non-GAAP adjusted net income grew by 42% to $74 million, or $2.31 per share.
Global collections reached a record $540 million, representing an 8% increase.
Estimated Remaining Collections (ERC) hit a record $8.5 billion, up 15%.
Encore
Encore
Encore Revenue by Geographic Location
Revenue by Geographic Location
U.S. purchases Revenue
CapyFin.comEurope purchases Revenue
CapyFin.com Forward Guidance
Encore Capital Group anticipates an increase in charged-off receivables in the U.S. and U.K. markets in 2021 and beyond, positioning the company to assist more consumers with their financial recovery.
Positive Outlook
- New global funding structure maximizes financial flexibility.
- Strong balance sheet and liquidity.
- Well-positioned for substantial increase in charged-off receivables.
- Committed to supporting consumers and banks.
- Aligned with CFPB's goal of fair treatment of consumers.
Challenges Ahead
- Potential increase in charged-off receivables may indicate economic challenges for consumers.
- Uncertainties related to the full impact of the COVID-19 pandemic.
- Increased interest expense due to financing transactions.
- Payment to CFPB impacted GAAP net income.
- Expenses related to the implementation of the new global funding structure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income