Encore Capital Group, Inc. (Nasdaq: ECPG) announced today a continuation of its trend in year-over-year increases in earnings.
Net income for the 2nd quarter of 2003 was $3.3 million as compared to $0.7 million earned in the 2nd quarter of 2002. On a fully diluted basis, Encore reported $0.17 per share for the second quarter of 2003 — a 325% increase over the $0.04 per fully diluted share reported in same quarter of 2002.
For the first six months of 2003, Encore reported net income of $11.5 million as compared to the $0.9 million earned in the first six months of 2002. On a fully diluted basis, Encore reported $0.58 per share for the first half of 2003 — an 867% increase over the $0.06 per fully diluted share reported for the first half of 2002. As previously disclosed, our results for the first half of 2003 reflected a one-time benefit in the amount of $7.2 million arising from the settlement of litigation. This settlement contributed $4.4 million after-tax, or $0.22 cents per fully diluted share, to the first six months’ results.
Carl C. Gregory, III, President and CEO, said, “Encore’s second quarter results reflect a continuation of our solid earnings growth. Our gross collections for the first six months of $93.7 million increased 34.6% over the prior year’s first half collections of $69.6 million. We achieved that 34.6% increase in gross collections while controlling operating expense growth at a smaller rate of 22.3% for the first six months of 2003 as compared to the first six months of 2002.”
Second Quarter Results:
For the second quarter of 2003, gross collections of $46.7 million were up 30.4%, or $10.9 million, as compared to $35.8 million in the prior year’s quarter. Resulting revenues of $28.4 million for the second quarter of 2003 were up 41.0%, or $8.3 million, as compared to $20.1 million in the prior year’s second quarter. Operating expenses grew at a slower rate of 19.0% from $15.4 million in the second quarter of 2002 to $18.3 million in the second quarter of 2003. Revenue recognized as a percentage of gross collections increased to 60.9% for the second quarter of 2003 as compared to 56.3% for the second quarter of 2002.
Encore reported basic earnings per share of $0.43 for the second quarter of 2003 as compared to $0.08 per share for the second quarter of the prior year. On a fully diluted basis, Encore reported $0.17 per share for the second quarter of 2003 — a 325% increase over the $0.04 per fully diluted share reported in same quarter of 2002.
First Half Results:
For the first half of 2003, gross collections of $93.7 million were up 34.6%, or $24.1 million, as compared to $69.6 million in the prior year’s first half. Resulting revenues of $56.5 million for the first half of 2003 were up 47.5%, or $18.2 million, over the $38.3 million in revenue earned in the first half of 2002. Operating expenses grew at a slower rate of 22.3%, or $6.5 million, from $29.2 million in the first half of 2002 to $35.7 million in the first half of 2003. Revenue recognized as a percentage of gross collections increased slightly to 60.3% for the first half of 2003 as compared to 55.0% for the first half of 2002.
As previously disclosed, our 1st quarter 2003 results reflected a one-time benefit in the amount of $7.2 million arising from the settlement of litigation. This settlement contributed $4.4 million after-tax, or $0.22 cents per fully diluted share, to the first six months’ results.
Encore reported basic earnings per share of $1.51 for the first half of 2003 as compared to $0.10 per share for the first half of the prior year. On a fully diluted basis, Encore reported $0.58 per share for the first half of 2003 — an 867% increase over the $0.06 per fully diluted share reported for the first half of 2002.
About Encore Capital Group
Encore is an accounts receivable management firm that specializes in purchasing charged-off and defaulted consumer debt. Among Encore’s significant stockholders are Triarc Companies, Inc., Consolidated Press International Holdings Limited, and their respective affiliates.
