Encore Capital 8K William Blair 4th Annual Emerging Growth | ECPG 6 Oct 10

William Blair 4th Annual Emerging Growth

Stock Conference

October 5, 2010

Exhibit 99.1

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

The statements in this presentation that are not historical facts, including, most

importantly, those statements preceded by, or that include, the words “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

1995

(the

“Reform

Act”).

These

statements

may

include,

but

are

not

limited

to,

statements

regarding

our

future

operating

results

and

growth,

and

ability

expand

and

utilize

flexibility

under

our

credit

facility.

For

all

“forward-looking statements,”

the Company claims the protection of the safe harbor

for

forward-looking

statements

contained

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, 10-Q and

8-K,

each

may

amended

from

time

time.

The

Company

disclaims

any

intent or obligation to update these forward-looking statements.

FORWARD-LOOKING STATEMENTS

ENCORE IS A LEADING PLAYER IN THE CONSUMER DEBT BUYING AND

RECOVERY INDUSTRY

Distressed consumer debt

purchasing

(95% of revenue)

•

Purchase and collection of

charged-off consumer

receivables (primarily credit

card)

•

Robust business model

emphasizing consumer

intelligence and operational

specialization

•

Invested ~$1.6B to acquire

receivables with a face value

of ~$48B since inception

•

Acquired ~29MM consumer

accounts since inception

Bankruptcy servicing

(5% of revenue)

•

Process secured consumer

bankruptcy accounts for

leading auto lenders and

other financial institutions

•

Proprietary software

dedicated to bankruptcy

servicing

•

Operational platform that

integrates lenders, trustees,

and consumers

WE OPERATE IN FIVE DIFFERENT SITES ACROSS THE U.S. AND INDIA

San Diego,

•

Headquarters

•

Call center

site

St Cloud,

•

Call center site

Arlington, TX

•

Bankruptcy servicing

Phoenix, AZ

Delhi, India

Defaulted consumer debt purchasing

Bankruptcy servicing business

•

Call center site

•

Call center site

Several competitors are now

known to have overpaid for

portfolios and are in financial

distress or have exited the

industry

Between 2005 and 2007, we

remained disciplined and avoided

high priced portfolios that did not

meet internal hurdle rates

In late 2005, we

established call

center in India

We believe it is the only

successful late-stage

collections platform in India,

at approximately 1/3 the cost

of our U.S. operations

We have maintained our

analytic leadership position,

and have strengthened it,

with novel models and

technologies

Conserved capital until

portfolio prices

decreased to a point

where we could achieve

consistent profitability

In 2008, we built and

implemented industry’s

first known ability-to-pay

(Capability) model

In 2009, we

ramped up

purchasing to take

advantage of the

favorable market

environment

WE ARE WELL POSITIONED TODAY BECAUSE OF KEY STRATEGIC

DECISIONS WE MADE OVER THE PAST FEW YEARS

In February 2010, we

entered into a new

$327.5 million

revolving credit facility

Subsequently increased

facility to $360.5 million and

added $50 million in a

private placement with

Prudential

2010 Q2

2009 Q2

Q2 YOY Growth

Variance

$156,789

$34,416

28%

$122,373

Collections

$96,231

$18,196

23%

$78,035

Revenue

$90,458

$25,776

40%

$64,682

Adjusted EBITDA*

$83,336

$1,303

$82,033

Purchases

$0.47

$0.19

68%

$0.28

EPS

($000s, except EPS and ratios)

THESE DECISIONS ARE THE DRIVERS BEHIND OUR STRONG Q2 RESULTS

* Adjusted EBITDA is a non-GAAP number. The Company considers Adjusted EBITDA to be a meaningful indicator of operating performance and uses it as a measure to

assess the operating performance of the Company. See Reconciliation of Adjusted EBITDA to GAAP Net Income at the end of the presentation.

WE HAVE NEARLY DOUBLED COLLECTIONS OVER THE LAST FOUR YEARS

Quarterly gross collections

($ millions)

$156.8

$122.4

$102.1

$93.6

$79.2

AND WE ARE INCREASING OUR OPERATING CASH FLOWS (ADJUSTED

EBITDA) AT A FASTER RATE THAN COLLECTIONS

Adjusted EBITDA* by quarter

($ millions)

* Adjusted EBITDA is a non-GAAP number. The Company considers Adjusted EBITDA to be a meaningful indicator of operating performance and uses it as a measure to

assess the operating performance of the Company. See Reconciliation of Adjusted EBITDA to GAAP Net Income at the end of the presentation.

$45.6

$46.1

$39.0

$43.5

$58.5

$53.0

$47.3

$49.3

$63.8

$64.7

$70.0

$66.1

$82.6

$90.5

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

A MAJOR CONTRIBUTOR TO THE IMPROVING CASH FLOW IS OUR LOWER

COST STRUCTURE, DRIVEN BY EXPANSION INTO INDIA

Cost per dollar collected

Overall Cost-to-Collect

Sites’

Direct Cost-to-Collect

OUR INDIA SITE NOW ACCOUNTS FOR NEARLY HALF OF OUR CALL CENTER

COLLECTIONS

Collections from all call centers

India

contribution

10%

19%

30%

40%

($ millions)

$126

$157

$186

~$250

Full year purchases for 2008 and 2009; Estimate for 2010

($ millions)

WE ARE REINVESTING CASH BACK INTO THE BUSINESS THROUGH

INCREASED PURCHASING VOLUMES

$230.3

$300.0

$256.6

2008

2009

2010E

WE ARE GROWING THE COMPANY’S EMBEDDED VALUE AT A FASTER PACE

THAN TOTAL DEBT

Annual Estimated Remaining Gross Collection (ERC) and Total Debt

($ millions, at end of period)

AND WE BELIEVE THAT OUR CURRENT ESTIMATE OF REMAINING

COLLECTIONS IS CONSERVATIVE GIVEN OUR HISTORY

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

Cumulative collections (initial expectation vs. actual)

millions,

Jan

–

June

10)

Actual cash

collections

Initial

projections

MARKET DYNAMICS HAVE INFLUENCED OUR APPROACH TO THE BUSINESS

Charge-offs

remain

elevated

Consumer

credit continues

to experience

losses at near

record levels

Supply more

closely

managed by

the issuers

Demand

increasing, albeit

slowly

Few players with

access to

significant

amounts of capital

Continued exit of

large players, but

others starting to

gain traction

Consumer

performance

remains predictable

Our models continue

to predict consumer

behavior with a high

degree of accuracy

Significant

regulatory and

legislative scrutiny

Both in our industry

and in the financial

services sector at

large

DESPITE THE MACROECONOMIC HEADWINDS, OUR CONSUMERS’

PAYMENT

BEHAVIOR AND OUR PERFORMANCE REMAIN CONSISTENT

Metric

Recent trend

•

Payer rates

•

Slightly upward

•

Average payment size

•

Stable

•

Single vs. multi-payers

•

More payment plans

•

Broken payer rates

•

Mild improvement

•

Settlement rates

•

Upward trend

AND OUR OVERALL PAYER RATES HAVE IMPROVED

Overall payer rate for all active inventory

WE ARE POSITIONED TO RESPOND TO THE CHANGING REGULATORY

ENVIRONMENT

Technology

Proprietary software platforms allow the company to make

changes as new regulations and laws emerge

Sophisticated software and analytics platforms ensure that

all data-driven activities are compliant

Data management

Expanded legal and quality assurance teams partner with training

department to keep account managers abreast of changes

Training

Zero tolerance policy in place to address errors by account

managers

Self-discipline

OUR OPERATIONAL SUCCESS IS BASED UPON FOUR STRATEGIC PRIORITIES

ENCORE’S

STRATEGIC

PILLARS

ANALYTIC

STRENGTH

COST

LEADERSHIP

CONSUMER

INTELLIGENCE

PRINCIPLED

INTENT

Strong partnership

opportunities

with

willing

and able consumers

Our attempts to contact or

work with consumers are

typically

ignored,

and

the

legal

option becomes necessary

Hardship

strategies

Offer

significant

discounts

and plans

that accommodate

many small payments

Remind consumers of their

obligation

through

legal

communications

Focus

payment

plans

and

opportunities to build longer

relationships

with consumers

Willingness to pay

Is the debtor willing to resolve the debt on fair terms?

HIGH

LOW

OUR ANALYTIC INSIGHT ALLOWS US TO MATCH OUR COLLECTION

APPROACH TO THE INDIVIDUAL CONSUMER’S PAYMENT BEHAVIOR

Core competency in understanding the

payer behavior of distressed consumers

Cross-channel

coordination

and optimization

Consumer

behavior

research

Market data

and insight

Portfolio

valuation

Pre-purchase

model

No effort

Legal

Outsourcing

Legal effort

model with

Capability

Call

Centers

Call effort

model with

Capability

Direct

Mail

Letter effort

model with

Capability

Collection

Agency

Outsourcing

Agency effort

model with

Capability

Collections operations that

optimize effort and profitability

OUR ANALYTIC REACH EXTENDS FROM PRE-PURCHASE THROUGHOUT OUR

ENTIRE OWNERSHIP PERIOD

Continuous feedback between

operations and valuation

Collections lift over deciles, comparing Encore’s ability-to-pay model against both

competitor scores and random servicing strategies

Commercial score 1

Random

servicing

Commercial score 2

Encore

AND IS SUPERIOR TO WHAT CAN BE ACQUIRED COMMERCIALLY

SUMMARY

•

Favorable supply and demand dynamics are driving a strong

purchasing year

•

Strong performance is expected to continue

•

Operational and financial leverage is increasing, largely due to

our

successful operating center in India

•

Insights gained through rigorous analytics inform our strategy

and allow for a closer partnership with consumers

Reconciliation of Adjusted EBITDA to GAAP Net Income

(Unaudited, In Thousands)

Three Months Ended

Note:

The

periods

3/31/07

through

12/31/08

have

been

adjusted

reflect

the

retrospective

application

ASC

470-20

APPENDIX: RECONCILIATION OF ADJUSTED EBITDA

3/31/07

6/30/07

9/30/07

12/31/07

3/31/08

6/30/08

9/30/08

12/31/08

3/31/09

6/30/09

9/30/09

12/31/09

3/31/10

6/30/10

GAAP net income, as reported

4,991

(1,515)

4,568

4,187

6,751

6,162

3,028

(2,095)

8,997

6,641

9,004

8,405

10,861

11,730

Interest expense

4,042

4,506

4,840

5,260

5,200

4,831

5,140

5,401

4,273

3,958

3,970

3,959

4,538

4,880

Contingent interest expense

3,235

888

Pay-off of future contingent interest

11,733

Provision for income taxes

3,437

(1,031)

1,315

2,777

4,509

4,225

2,408

(1,442)

5,973

4,166

5,948

4,609

6,490

6,749

Depreciation and amortization

869

840

833

810

722

766

674

652

623

620

652

697

673

752

Amount applied to principal on receivable portfolios

28,259

29,452

26,114

29,498

40,212

35,785

35,140

46,364

42,851

48,303

49,188

47,384

58,265

64,901

Stock-based compensation expense

801

1,204

1,281

1,001

1,094

1,228

860

382

1,080

994

1,261

1,049

1,761

1,446

Adjusted EBITDA

45,634

46,077

38,951

43,533

58,488

52,997

47,250

49,262

63,797

64,682

70,023

66,103

82,588

90,458

Encore Capital (ECPG) 8-KWilliam Blair 4th Annual Emerging Growth