 Record GAAP net income of 130 million, or 4.13 per share Record non-GAAP adjusted net income of 137 million, or 4.34 per share Record global revenues grew 23 to 426 million Ended Q2 with Companys strongest ever liquidity position SAN DIEGO, Aug. 05, 2020 GLOBE NEWSWIRE -- Encore Capital Group, Inc. NASDAQ: ECPG, an international specialty finance company, today reported consolidated financial results for the second quarter ended June 30, 2020.Encore had an outstanding second quarter as we delivered record global revenues and earnings, said Ashish Masih, President and Chief Executive Officer. Over the past several years we have made investments in training, compliance and technology that have enabled us to safely remain fully operational in each of our markets during the COVID-19 pandemic. These investments and our preparedness allowed us to collect significantly more in the second quarter than we forecasted a quarter ago in the early stages of the pandemic. This collections over-performance, combined with reduced expenses primarily associated with our legal collections channel, contributed to our most profitable quarter ever, said Masih. We believe our earnings year-to-date are a strong indicator of our continued earnings growth trajectory. I believe this trajectory demonstrates the progress we have made in building shareholder value. We are delivering superior returns, generating significant cash and are well positioned to capture the growing and increasingly attractive future opportunities, added Masih.Subsequent to the end of the second quarter, the Company retired the remaining 89 million of 2020 convertible notes using cash on the balance sheet. In addition, the Company amended and extended its revolving credit and term loan facilities in the U.S., increasing commitments by 268 million and extending the maturity of the vast majority of the financing to July 2023, further strengthening the Companys liquidity.Looking ahead, our strong balance sheet and liquidity have positioned us well to capture upcoming opportunities in the U.S. and the U.K., our core markets. These markets are poised for what we believe will be a substantial increase in charged-off receivables coming to market in 2021 and beyond, said Masih. Key Financial Metrics for the Second Quarter of 2020: Estimated remaining collections ERC were 8.4 billion, up 13 compared to the second quarter of 2019. Portfolio purchases were 148 million, including 125 million in the U.S. and 23 million in Europe. Gross collections were 508 million, down 1 compared to 515 million in the second quarter of 2019. After adjusting for currency effects and the sale of the companys Baycorp subsidiary in August 2019, collections were up 2 compared to the second quarter of 2019. Total revenues were a record 426 million, up 23 compared to 347 million in the second quarter of 2019, and included 66 million of revenue due to significantly higher collections than the Q2 expected collection curves. Total operating expenses decreased 11 to 206 million, compared to 233 million in the same period of the prior year, due primarily to reduced expenses related to the legal collections channel. Total interest expense decreased 21 to 50 million, compared to 64 million in the same period of the prior year, principally as a result of approximately 9 million of Cabot refinancing expenses incurred in the year ago period, as well as reduced borrowings and lower interest rates in the second quarter of 2020. GAAP net income attributable to Encore was a record 130 million, or 4.13 per fully diluted share. This compares to net income of 37 million, or 1.17 per fully diluted share in the second quarter of 2019. Adjusted net income attributable to Encore was a record 137 million, or 4.34 per fully diluted share also referred to as economic EPS. This compares to adjusted net income of 40 million, or 1.28 per fully diluted share in the second quarter of 2019. As of June 30, 2020, after taking into account borrowing base and applicable debt covenants, available capacity under Encores U.S. revolving credit facility was 356 million and availability under Cabots revolving credit facility was 211 million approximately 262 million, which combined for a total global available capacity of 618 million. In addition, Encore ended the second quarter with 273 million of non-client cash on the balance sheet.Conference Call and WebcastEncore will host a conference call and slide presentation today, August 5, 2020, at 2:00 p.m. Pacific 5:00 p.m. Eastern time, to present and discuss second quarter results.Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encores website at To access the live, listen-only telephone conference portion, please dial 855 541-0982 or 704 288-0606.For those who cannot listen to the live broadcast, a telephonic replay will be available for seven days by dialing 800 585-8367 or 404 537-3406 and entering the conference ID number 9669459. A replay of the webcast will also be available shortly after the call on the Companys website.Non-GAAP Financial MeasuresThis news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles GAAP. The Company has included adjusted income attributable to Encore and adjusted income attributable to Encore per share also referred to as economic EPS when adjusted for certain shares associated with our convertible notes that will not be issued but are reflected in the fully diluted share count for accounting purposes because management uses this measure to assess operating performance, in order to highlight trends in the Companys business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The Company has included information concerning adjusted operating expenses in order to facilitate a comparison of approximate costs to cash collections for the portfolio purchasing and recovery business in the periods presented. Adjusted income attributable to Encore, adjusted income attributable to Encore per shareeconomic EPS, and adjusted operating expenses have not been prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, net income, net income per share, and total operating expenses as indicators of the Companys operating performance. Further, these non-GAAP financial measures, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. The Company has included references to constant currency growth rates to facilitate comparisons of underlying financial results excluding the impact of changes to foreign currency exchange rates. Constant Currency figures are calculated by employing foreign currency exchange rates from the year ago period to recalculate current period results. All constant currency values are calculated based on the average exchange rates during the respective periods, except for ERC, which is calculated using the changes in the period-ending exchange rates.About Encore Capital Group, Inc.Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers.Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company ticker symbol: ECPG and a component stock of the Russell 2000, the SP Small Cap 600 and the Wilshire 4500. More information about Encore can be found at More information about the Companys Midland Credit Management subsidiary can be found at More information about the Companys Cabot Credit Management subsidiary can be found at Information found on the Companys, MCMs, or Cabots websites is not incorporated by reference.Forward Looking StatementsThe statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words will, may, believe, projects, expects, anticipates or the negation thereof, or similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 the Reform Act. These statements may include, but are not limited to, statements regarding our future operating results, performance, business plans or prospects. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K and 10-Q, as they may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements. 