Encore Capital Group Files Q2 2024 10-Q

TL;DR

ECPG's Q2 10-Q is in - financials look solid, check the debt levels.

AI Summary

Encore Capital Group Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with the latest financial data for Encore Capital Group, crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Encore Capital Group is subject to market and credit risks inherent in its business operations.

Key Numbers

• 2024 Q2 — Reporting Period (Quarterly financial data for the period ending June 30, 2024.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• ENCORE CAPITAL GROUP INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240807 (date) — Filing Date
• SAN DIEGO (location) — Business Address City

FAQ

Key Financial Figures

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

Filing Documents

• ecpg-20240630.htm (10-Q) — 2481KB
• ecpg-20240630ex101internat.htm (EX-10.1) — 85KB
• ecpg-20240630ex102nonxempl.htm (EX-10.2) — 75KB
• ecpg-20240630ex311.htm (EX-31.1) — 12KB
• ecpg-20240630ex312.htm (EX-31.2) — 11KB
• ecpg-20240630ex321.htm (EX-32.1) — 8KB
• image_0.jpg (GRAPHIC) — 921KB
• 0001084961-24-000085.txt ( ) — 10566KB
• ecpg-20240630.xsd (EX-101.SCH) — 51KB
• ecpg-20240630_cal.xml (EX-101.CAL) — 64KB
• ecpg-20240630_def.xml (EX-101.DEF) — 249KB
• ecpg-20240630_lab.xml (EX-101.LAB) — 604KB
• ecpg-20240630_pre.xml (EX-101.PRE) — 463KB
• ecpg-20240630_htm.xml (XML) — 1445KB

– 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 8 Notes to Condensed Consolidated Financial Statements 9 Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies 9 Note 2: Earnings Per Share 10 Note 3: Fair Value Measurements 10 Note 4: Derivatives and Hedging Instruments 12 Note 5: Investment in Receivable Portfolios, Net 15 Note 6: Other Assets 17 Note 7: Borrowings 17 Note 8: Variable Interest Entities 20 Note 9: Accumulated Other Comprehensive Loss 21 Note 10: Income Taxes 22 Note 11: Commitments and Contingencies 22 Note 12: Segment and Geographic Information 23 Note 13: Goodwill and Identifiable Intangible Assets 23

– 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 25

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 48

– Controls and Procedures

Item 4 – Controls and Procedures 48

– OTHER INFORMATION

PART II – OTHER INFORMATION 49

– Legal Proceedings

Item 1 – Legal Proceedings 49

– Risk Factors

Item 1A – Risk Factors 49

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 49

– Other Information

Item 5 – Other Information 49

– Exhibits

Item 6 – Exhibits 50

SIGNATURES

SIGNATURES 51 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) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 250,621 $ 158,364 Investment in receivable portfolios, net 3,583,322 3,468,432 Property and equipment, net 102,291 103,959 Other assets 277,799 293,256 Goodwill 602,811 606,475 Total assets $ 4,816,844 $ 4,630,486 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 197,555 $ 189,928 Borrowings 3,455,130 3,318,031 Other liabilities 176,032 185,989 Total liabilities 3,828,717 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, 23,691 and 23,545 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 237 235 Additional paid-in capital 13,257 11,052 Accumulated earnings 1,104,591 1,049,171 Accumulated other comprehensive loss ( 129,958 ) ( 123,920 ) Total stockholders' equity 988,127 936,538 Total liabilities and stockholders' equity $ 4,816,844 $ 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. The liabilities in the table below can only be settled from assets in the respective VIEs. Creditors of the VIEs do not have recourse to the general credit of the Company. See "Note 8: Variable Interest Entities" for additional information on the Company's VIEs. June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 26,714 $ 24,472 Investment in receivable portfolios, net 774,104 717,556 Other assets 9,294 19,358 Liabilities Accounts payable and accrued liabilities 2,266 1,854 Borrowings

View Full Filing

View this 10-Q filing on SEC EDGAR