Encore Capital Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Encore Capital Group, Inc. has filed its Q1 2024 10-Q report, detailing financial performance and corporate information.</b>

AI Summary

ENCORE CAPITAL GROUP INC (ECPG) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Encore Capital Group, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal business address is 350 Camino De La Reina, Suite 100, San Diego, CA 92108. The company was formerly known as MCM Capital Group Inc. and Midland Corp of Kansas. The filing includes data related to various financial instruments and equity components.

Why It Matters

For investors and stakeholders tracking ENCORE CAPITAL GROUP INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, including balance sheets, income statements, and cash flow information, crucial for assessing the company's current financial health and operational performance. Understanding the details within this report allows stakeholders to evaluate the company's financial position, identify trends, and make informed investment decisions regarding Encore Capital Group, Inc.

Risk Assessment

Risk Level: low — ENCORE CAPITAL GROUP INC shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags, indicating a low level of immediate risk based solely on this document.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand revenue drivers and operational performance for Q1 2024.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-08 — Filing Date (Filed as of date)
• 2024 Q1 — Filing Quarter (Filing quarter)
• 19990430 — Date of Name Change (Date of name change from MCM CAPITAL GROUP INC)
• 19990423 — Date of Name Change (Date of name change from MIDLAND CORP OF KANSAS)

Key Players & Entities

• ENCORE CAPITAL GROUP INC (company) — Filer name
• 350 CAMINO DE LA REINA (company) — Business address street 1
• SUITE 100 (company) — Business address street 2
• SAN DIEGO (company) — Business address city
• CA (company) — Business address state
• 92108 (company) — Business address zip
• MCM CAPITAL GROUP INC (company) — Former company name
• MIDLAND CORP OF KANSAS (company) — Former company name

FAQ

Industry Context

Encore Capital Group operates in the financial services sector, specifically focusing on the acquisition and servicing of performing and non-performing consumer credit accounts.

Regulatory Implications

The company is subject to various financial regulations and reporting requirements, including the filing of quarterly (10-Q) and annual (10-K) reports with the Securities and Exchange Commission (SEC).

What Investors Should Do

1. Analyze the company's balance sheet for changes in assets and liabilities.
2. Review any disclosures related to debt and capital lease obligations.
3. Examine the equity section for changes in common stock, additional paid-in capital, and retained earnings.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first set of quarterly financial data for the year.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value Per Share ECPG The Nasdaq Sto

Filing Documents

• ecpg-20240331.htm (10-Q) — 1863KB
• ecpg-20240331ex311.htm (EX-31.1) — 12KB
• ecpg-20240331ex312.htm (EX-31.2) — 11KB
• ecpg-20240331ex321.htm (EX-32.1) — 8KB
• 0001084961-24-000048.txt (&nbsp;) — 7712KB
• ecpg-20240331.xsd (EX-101.SCH) — 51KB
• ecpg-20240331_cal.xml (EX-101.CAL) — 64KB
• ecpg-20240331_def.xml (EX-101.DEF) — 248KB
• ecpg-20240331_lab.xml (EX-101.LAB) — 590KB
• ecpg-20240331_pre.xml (EX-101.PRE) — 452KB
• ecpg-20240331_htm.xml (XML) — 1098KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 3

— Condensed Consolidated Financial Statements (Unaudited)

Item 1— Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Statements of Financial Condition 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statements of Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies 8 Note 2: Earnings Per Share 9 Note 3: Fair Value Measurements 9 Note 4: Derivatives and Hedging Instruments 11 Note 5: Investment in Receivable Portfolios, Net 13 Note 6: Other Assets 16 Note 7: Borrowings 16 Note 8: Variable Interest Entities 19 Note 9: Accumulated Other Comprehensive Loss 20 Note 10: Income Taxes 20 Note 11: Commitments and Contingencies 20 Note 12: Segment and Geographic Information 21 Note 13: Goodwill and Identifiable Intangible Assets 22

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

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 24

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 43

– Controls and Procedures

Item 4 – Controls and Procedures 43

– OTHER INFORMATION

PART II – OTHER INFORMATION 44

– Legal Proceedings

Item 1 – Legal Proceedings 44

– Risk Factors

Item 1A – Risk Factors 44

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 44

– Other Information

Item 5 – Other Information 44

– Exhibits

Item 6 – Exhibits 45

SIGNATURES

SIGNATURES 46 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

—Condensed Consolidated Financial Statements (Unaudited)

Item 1—Condensed Consolidated Financial Statements (Unaudited) ENCORE CAPITAL GROUP, INC. Condensed Consolidated Statements of Financial Condition (In Thousands, Except Par Value Amounts) (Unaudited) March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 172,990 $ 158,364 Investment in receivable portfolios, net 3,531,387 3,468,432 Property and equipment, net 102,776 103,959 Other assets 277,622 293,256 Goodwill 602,400 606,475 Total assets $ 4,687,175 $ 4,630,486 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 180,206 $ 189,928 Borrowings 3,364,029 3,318,031 Other liabilities 189,081 185,989 Total liabilities 3,733,316 3,693,948 Commitments and contingencies (Note 11) Equity: Convertible preferred stock, $ 0.01 par value, 5,000 shares authorized, no shares issued and outstanding — — Common stock, $ 0.01 par value, 75,000 shares authorized, 23,687 and 23,545 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 237 235 Additional paid-in capital 8,648 11,052 Accumulated earnings 1,072,410 1,049,171 Accumulated other comprehensive loss ( 127,436 ) ( 123,920 ) Total stockholders' equity 953,859 936,538 Total liabilities and stockholders' equity $ 4,687,175 $ 4,630,486 The following table presents certain assets and liabilities of consolidated variable interest entities ("VIEs") included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company. See "Note 8: Variable Interest Entities" for additional information on the Company's VIEs. March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 26,879 $ 24,472 Investment in receivable portfolios, net 736,226 717,556 Other assets 11,280 19,35

View Full Filing

View this 10-Q filing on SEC EDGAR