Exhibit 99.1
Encore Capital Group, Inc.
NASDAQ: ECPG
September 14, 2004
Presentation to Roth Capital Partners’
New York Conference
Forward-Looking Statements
Certain Statements in This Presentation Constitute “Forward-looking Statements” Within
the Meaning of the Private Securities Litigation Reform Act of 1995. Such 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. For a Discussion of These Factors, We Refer You
to the Company’s Annual Report on Form 10-K As of and for the Year Ended December
31, 2003.
In Light of the Significant Uncertainties Inherent in the Forward-looking Statements
Included Herein, the Inclusion of Such Information Should Not Be Regarded As a
Representation by the Company or by Any Other Person or Entity That the Objectives
and Plans of the Company Will Be Achieved.
Encore Capital Group, Inc
50 Year Old Purchaser of Consumer Debt
Present Management Team Took Over in Mid-2000
Unique Business Model
Excellent Results
Strong Drivers for Growth
Compelling Fundamentals
“America’s Appetite for Borrowing Money Bloats U.S. Consumer Debt
to a Record High Almost Every Month. As of September, the Tab
Stood at $2 Trillion and Was Spurting at an Annual Rate of 10
Percent. Through Good Times and Bad, Spending Tomorrow’s
Dollars Today Never Goes Out of Fashion.”
Source: Credit and Collections Daily – November 24, 2003
$ in billions
Non-Mortgage Consumer Debt and Charge-off Rates
Source: Federal Reserve Board, July 8, 2004
Competitive Advantage
Account Level Analytics
Multiple Collection Strategies
Sophisticated Account Management System
Business Drivers
Buy Right
Collect Well
Manage Expenses
Challenge Everything
Demand Professional and Ethical Behavior
Basic Business Model
This Is How We Make Money
Years
0
1
2
3
>3
Total
Investment
($100)
Collections
$114
$74
$51
$31
$270
Cumulative Multiple Of Costs Collected
1.1x
1.9x
2.4x
2.7x
Total Operating Expense
@40%
($46)
($30)
($20)
($12)
($108)
Net Cash Flow Stream
($100)
$68
$44
$31
$19
$162
Net IRR
29%
Representative Data Only; Not Actual Portfolio Results
Portfolio Purchases = Raw Material
Account Level Valuation Provides Several Competitive Advantages
Month Since
Charge
-
off
Face Value
($ in Billions)
% of Total
Face Purch.
0
-
6
$
2.0
22%
7
-
12
$
1.0
11%
13
-
18
$
2.0
22%
19
-
24
$
0.8
9%
25
-
36
$
1.8
19%
37+
$
1.6
17%
Total
$
9.2
100%
Provides Ability to Create
Positively Selected Deals
Expands Universe of Sources
to Include Our Competition
Applies to Alternative Paper
Types
Increases Our Flexibility to Buy
Throughout the Universe of Defaulted
Receivables
Note: All Purchases Since Mid-2000 Through 6/30/04.
Strong Collection Growth
Collection Innovation Drives Our
Performance Improvement
Innovation Yields Multiple Strengths
Portfolio Performance
36 months
24 months
12 months
6 months
84
$2.8 Billion
$0.7 Billion
$6.2 Billion
$ 7.6 Billion
Total Face Value
29
143
189
# of Portfolios
Multiple of Purchase Price Collected*
*Actual Data Represents the Average Multiple for All Portfolios at 6 Months, 12 Months, 24 Months
and 36 Months As Of June 30, 2004
Portfolio Performance – Another View
Multiple of Purchase Price Collected by Year of Purchase
Expense Management
Cost Per Dollar Collected Has Decreased by 27% While Monthly Collections Have
Grown 325% Since the Beginning of 2001
Strong Financial Performance
Resulting in a Return to Profitability
*Excludes One-Time Items.
Strong Financial Performance
Drivers for Growth
Core Business Growth
Innovations and Analysis
New Financing
Profitable Investment of Cash
Experienced Management Team
SVP, Collections Operations since April 2004; Former Director of Service Strategy
at Gateway, Inc.
Anna Hansen
SVP
VP and Chief Credit Risk Officer since February 2001; Former VP of Decision
Science for Associates Home Equity Division
Eric Von Dohlen
VP
SVP & CIO*; Former VP & CIO of West Capital; Former VP & CIO for Frederick’s
of Hollywood and The Welk Group
John Treiman
SVP & CIO
SVP, General Counsel and Secretary since September 2001; Former VP and
General Counsel of West Capital and ComStream Corp.
Robin R. Pruitt
SVP
SVP, Human Resources since April 2003; Former Director of Human Resources
at Gateway, Inc.
Alison James
SVP
EVP & COO*; Former SVP of Operations of West Capital and First Data
Resources; Former VP/Risk Operations of Capital One
J. Brandon Black
EVP & COO
EVP & CFO*; Former CFO of West Capital; Former CFO and Board Member of
Bank One, Texas, N.A; Former Controller of Great Western Financial Corp.
Barry R. Barkley
EVP & CFO
President and CEO*; Former Chairman, President and CEO of West Capital;
Former Chairman, President and CEO of MIP Properties, Inc., a publicly traded
REIT
Carl C. Gregory, III
President & CEO
Experience
Name/Position
* Since May 2000.
Encore Capital Group, Inc.
NASDAQ: ECPG
September 14, 2004
Presentation to Roth Capital Partners’
New York Conference