Exhibit 99.2
ENCORE CAPITAL GROUP, INC.
Supplemental Financial Information
Reconciliation of GAAP Net Income to
Net Income Excluding One-Time Benefits and Charges
(In Thousands)
| Quarter Ended March 31, | ||||||||
| 2003 | 2002 | |||||||
GAAP net income, as reported | $ | 8,166 | $ | 233 | ||||
Gain on settlement of litigation1 | (4,376 | ) | — | |||||
Net income, excluding one-time benefits | $ | 3,790 | $ | 233 | ||||
Quarter Ended June 30, | ||||||||
| 2003 | 2002 | |||||||
GAAP net income, as reported | $ | 3,309 | $ | 692 | ||||
Benefit from restoration of net deferred tax assets2 | — | (143 | ) | |||||
Net income, excluding one-time benefits | $ | 3,309 | $ | 549 | ||||
| Quarter Ended September 30, | ||||||||
| 2003 | 2002 | |||||||
GAAP net income, as reported | $ | 3,104 | $ | 2,521 | ||||
Benefit from restoration of net deferred tax assets2 | — | (914 | ) | |||||
Net income, excluding one-time benefits | $ | 3,104 | $ | 1,607 | ||||
| Quarter Ended December 31, | ||||||||
| 2003 | 2002 | |||||||
GAAP net income, as reported | $ | 3,841 | $ | 10,343 | ||||
Write off of deferred costs3 | 528 | — | ||||||
Benefit from restoration of net deferred tax assets2 | — | (8,830 | ) | |||||
Net income, excluding one-time (benefits) Charges | $ | 4,369 | $ | 1,513 | ||||
| 1 | This is the result of a net after-tax gain of $4.4 million associated with a litigation settlement during the first quarter of 2003. |
| 2 | This 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. |
| 3 | This is the result of the 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. |