NASDAQ$ECPG

Encore Capital Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$289M

Previous: $346M-16.4%
EPS (adj)

-$0.19

Previous: $1.46-113.0%
Portfolio Purchases

$214M

Previous: $259M-17.3%
Collections

$527M

Previous: $514M+2.5%
ERC

$8.5B

Previous: $7.87B+8.0%
Capital Expenditures

-$7.54M

Previous: -$10.2M+26.3%
Free Cash Flow

-$18M

Previous: $39M-146.1%
Net Income

-$10.5M

Previous: $49.3M-121.2%
Operating Income

$47.2M

Previous: $111M-57.5%
Gross Profit

$289M

Previous: $346M-16.4%
Cash & Equivalents

$188M

Previous: $167M+12.6%
Total Assets

$4.61B

Previous: $4.81B-4.1%
Stock-Based Comp

$4.53M

Previous: $1.83M+147.9%

Revenue & EPS history

Encore · Revenue · Quarterly

$289M

Q1 2020-16.4%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Encore · $327M total across 3 segments · Q3 2023

  • Debt Purchasing Revenue
    $303M
  • Servicing Revenue
    $19.9M
  • Other Revenues
    $4.11M

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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.0%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+3.1%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+38.9%

Q3 2016

Best reaction

-21.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-2.6%-3.6%
Q4 2025+8.2%+21.4%+16.4%
Q3 2025+10.5%+16.3%+23.7%
Q1 2025+23.9%+22.5%+16.7%
Q4 2024-21.9%-30.8%-31.3%
Q3 2024+4.9%+5.3%+3.6%
Q2 2024+9.1%+3.5%+3.0%
Q1 2024+11.9%+10.1%-0.3%
Q4 2023-9.6%-11.0%-12.6%
Q3 2023+9.7%+16.9%+20.3%
Q2 2023-5.7%-2.6%-10.3%
Q1 2023-4.9%-3.8%-5.6%
Q4 2022-6.5%-6.7%-21.2%
Q3 2022-9.7%-5.6%-1.2%
Q2 2022-18.4%-19.9%-22.5%
Q1 2022+6.4%+6.7%+3.7%
Q4 2021-7.0%-7.3%-10.4%
Q3 2021+10.4%+12.4%+10.1%
Q2 2021-2.0%-0.5%+0.9%
Q1 2021+4.8%+0.4%+15.1%
Q4 2020-0.4%+1.9%+25.1%
Q3 2020-2.0%-1.8%+13.7%
Q2 2020+27.8%+22.1%+29.0%
Q1 2020-1.6%-0.2%+13.2%
Q4 2019+10.8%+23.6%-11.7%
Q3 2019+7.7%+7.5%+10.0%
Q2 2019+7.8%+5.3%-2.1%
Q1 2019+17.3%+27.2%+28.6%
Q4 2018+2.2%-2.4%-18.7%
Q3 2018-10.8%-5.5%-8.1%
Q2 2018+11.7%+9.6%+6.7%
Q1 2018+1.1%+0.6%-14.4%
Q4 2017+7.4%+1.8%+9.6%
Q3 2017+6.9%+4.8%-0.5%
Q2 2017+5.8%+7.2%+2.2%
Q1 2017-6.2%+0.0%+7.4%
Q4 2016+1.9%-3.5%-11.9%
Q3 2016+38.9%+39.5%+59.2%
Q2 2016-16.3%-14.3%-10.2%
Q1 2016+2.8%
Q4 2015+5.4%
Q3 2015+0.9%
Q2 2015-5.7%
Q1 2015-3.4%
Q4 2014-7.9%
Q3 2014+0.6%
Q2 2014+1.5%
Q1 2014+2.8%
Q4 2013+1.6%
Q3 2013+1.0%
Q2 2013+11.2%
Q1 2013+4.0%
Q4 2012+5.7%
Q3 2012-7.0%
Q2 2012+8.0%
Q1 2011+8.3%
Q1 2012+8.3%
Q4 2011-2.3%
Q4 2009-2.3%
Q3 2010+2.5%
Q3 2011+2.5%
Q2 2010-9.5%
Q4 2010-9.5%
Q2 2011-9.5%
Q1 2010-2.2%

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