Exhibit 99.2
ENCORE CAPITAL GROUP, INC.
Supplemental Financial Information
Reconciliation of GAAP Net Income and Income Before Taxes to
Net Income and Income Before Taxes Excluding One-Time Benefits and Charges
(In Thousands)
Quarter Ended March 31, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2002 | ||||||||||||
GAAP net income, as reported | $ | 6,016 | $ | 8,166 | $ | 233 | ||||||||
Gain on settlement of litigation1 | - | (4,376 | ) | - | ||||||||||
Net income, excluding one-time benefits | $ | 6,016 | $ | 3,790 | $ | 233 | ||||||||
Quarter Ended June 30, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
GAAP net income, as reported | $ | 5,595 | $ | 3,309 | $ | 692 | ||||||||
Benefit from restoration of net deferred tax assets3 | - | - | (143 | ) | ||||||||||
Net income, excluding one-time benefits | $ | 5,595 | $ | 3,309 | $ | 549 | ||||||||
Quarter Ended September 30, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
GAAP net income, as reported | $ | 5,882 | $ | 3,104 | $ | 2,521 | ||||||||
Benefit from restoration of net deferred tax assets3 | - | - | (914 | ) | ||||||||||
Net income, excluding one-time benefits | $ | 5,882 | $ | 3,104 | $ | 1,607 | ||||||||
Quarter Ended December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
GAAP net income, as reported | $ | 5,683 | $ | 3,841 | $ | 10,343 | ||||||||
Write off of deferred costs2 | - | 528 | - | |||||||||||
Benefit from restoration of net deferred tax assets3 | - | - | (8,830 | ) | ||||||||||
Net income, excluding one-time (benefits) Charges | $ | 5,683 | $ | 4,369 | $ | 1,513 | ||||||||
Years Ended December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
GAAP income before taxes | $ | 38,846 | $ | 29,423 | $ | 8,086 | ||||||||
Gain on settlement of litigation1 | - | (7,210 | ) | - | ||||||||||
Write off of deferred costs2 | - | 870 | - | |||||||||||
Income before taxes, exluding one time (benefits) charges | $ | 38,846 | $ | 23,083 | $ | 8,086 | ||||||||
1This is the result of a net pre-tax gain of $7.2 million and a net after-tax gain of $4.4 million associated with a litigation settlement during the first quarter of 2003. |
2This is the result of the pre-tax write-off of $0.9 million and an after-tax write-off of $0.5 million in deferred loans costs and a debt discount associated with the early retirement of our Senior Notes during the fourth quarter of 2003. |
3This is the result of a change in the valuation allowance associated with our net tax assets during 2002, which resulted in the recognition of a current tax benefit in the amount of $8.8 million, $0.9 million, and $.01 million for the quarters ended December 31, September 30 and June 30, respectively. |