Encore Capital Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Encore Capital Group, Inc. has filed its 2023 Form 10-K annual report.</b>

AI Summary

ENCORE CAPITAL GROUP INC (ECPG) filed a Annual Report (10-K) with the SEC on February 21, 2024. Encore Capital Group, Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing is a Form 10-K, a comprehensive report required for publicly traded companies. The company's principal business address is 350 Camino De La Reina, Suite 100, San Diego, CA 92108. The filing was submitted on February 21, 2024. Encore Capital Group, Inc. was formerly known as MCM Capital Group Inc. and Midland Corp of Kansas.

Why It Matters

For investors and stakeholders tracking ENCORE CAPITAL GROUP INC, this filing contains several important signals. This 10-K filing provides a detailed overview of Encore Capital Group's financial performance, operations, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The report includes historical financial data and disclosures that allow for comparison with previous years, enabling stakeholders to track trends and evaluate the company's strategic direction and market position.

Risk Assessment

Risk Level: medium — ENCORE CAPITAL GROUP INC shows moderate risk based on this filing. The company operates in the financial services sector, which is subject to regulatory changes and economic fluctuations that could impact its business model and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Encore Capital Group's performance and potential challenges in the coming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-21 — Filing Date (Date of submission)
• 1999-04-30 — Date of Name Change (From MCM Capital Group Inc.)
• 1999-04-23 — Date of Name Change (From Midland Corp of Kansas)

Key Players & Entities

• ENCORE CAPITAL GROUP INC (company) — Filer name
• MCM CAPITAL GROUP INC (company) — Former company name
• MIDLAND CORP OF KANSAS (company) — Former company name
• San Diego (location) — Business address city
• CA (location) — Business address state
• Ryan Bell (person) — Member associated with financial data

FAQ

Industry Context

Encore Capital Group operates within the financial services industry, specifically in the area of acquiring and managing charged-off consumer debt. This sector is influenced by economic conditions, consumer behavior, and regulatory oversight.

Regulatory Implications

Companies in the financial services sector are subject to various regulations designed to protect consumers and ensure market stability. These can include rules related to debt collection practices, data privacy, and capital requirements.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing the company.
3. Compare the 2023 financial results with previous years to identify trends and assess performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-21: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing a comprehensive update on the company's financial status and operations compared to previous filings.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 Par Value Per Share ECPG The Nasdaq Sto
• $48.62 — he closing price of the common stock of $48.62 per share on such date, as reported by

Filing Documents

• ecpg-20231231.htm (10-K) — 2933KB
• ecpg-20231231ex414descript.htm (EX-4.14) — 16KB
• ecpg-20231231ex21.htm (EX-21) — 24KB
• ecpg-20231231ex23.htm (EX-23) — 3KB
• ecpg-20231231ex311.htm (EX-31.1) — 12KB
• ecpg-20231231ex312.htm (EX-31.2) — 12KB
• ecpg-20231231ex321.htm (EX-32.1) — 8KB
• ecpg-20231231ex971policyfo.htm (EX-97.1) — 28KB
• ecpg-20231231_g1.jpg (GRAPHIC) — 322KB
• 0001084961-24-000008.txt (&nbsp;) — 13463KB
• ecpg-20231231.xsd (EX-101.SCH) — 80KB
• ecpg-20231231_cal.xml (EX-101.CAL) — 141KB
• ecpg-20231231_def.xml (EX-101.DEF) — 370KB
• ecpg-20231231_lab.xml (EX-101.LAB) — 1019KB
• ecpg-20231231_pre.xml (EX-101.PRE) — 678KB
• ecpg-20231231_htm.xml (XML) — 1982KB

—Risk Factors

Item 1A—Risk Factors 12

—Unresolved Staff Comments

Item 1B—Unresolved Staff Comments 24

C — Cybersecurity

Item 1 C — Cybersecurity 24

—Properties

Item 2—Properties 25

—Legal Proceedings

Item 3—Legal Proceedings 25

—Mine Safety Disclosures

Item 4—Mine Safety Disclosures 25 PART II 26

—Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5—Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

—[Reserved]

Item 6—[Reserved] 27

—Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations 28

—Quantitative and Qualitative Disclosures about Market Risk

Item 7A—Quantitative and Qualitative Disclosures about Market Risk 50

—Financial Statements and Supplementary Data

Item 8—Financial Statements and Supplementary Data 51

—Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9—Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 51

—Controls and Procedures

Item 9A—Controls and Procedures 51

—Other Information

Item 9B—Other Information 53

— Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 9C— Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 53 PART III 54

—Directors, Executive Officers and Corporate Governance

Item 10—Directors, Executive Officers and Corporate Governance 54

—Executive Compensation

Item 11—Executive Compensation 54

—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 54

—Certain Relationships and Related Transactions, and Director Independence

Item 13—Certain Relationships and Related Transactions, and Director Independence 54

—Principal Accountant Fees and Services

Item 14—Principal Accountant Fees and Services 54 PART IV 55

—Exhibits and Financial Statement Schedules

Item 15—Exhibits and Financial Statement Schedules 55

—Form 10-K Summary

Item 16—Form 10-K Summary 58

SIGNATURES

SIGNATURES 59 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 60 Table of Contents PART I

—Business

Item 1—Business Our Business We are an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. We primarily purchase portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers' unpaid financial obligations to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. Through Midland Credit Management, Inc. and its domestic affiliates (collectively, "MCM") we are a market leader in portfolio purchasing and recovery in the United States. Through Cabot Credit Management Limited ("CCM") and its subsidiaries and European affiliates (collectively, "Cabot") we are one of the largest credit management services providers in Europe and the United Kingdom. These are our primary operations. We also have additional international investments and operations as we have explored new asset classes and geographies including: (1) an investment in Encore Asset Reconstruction Company ("EARC") in India and (2) an investment in portfolio in Mexico. We refer to these additional international operations as our Latin America and Asia-Pacific ("LAAP") operations. To date, operating results from LAAP have not been significant to our total consolidated operating results. Our long-term growth strategy is focused on continuing to invest in our core portfolio purchasing and recovery business in the United States and United Kingdom and strengthening and developing our business in the rest of Europe. As a result, descriptions of our operations in Part I - Item 1 of this Form 10

View Full Filing

View this 10-K filing on SEC EDGAR