Encore Capital 8K The statements in this presentation that are not | ECPG 25 Feb 14

Encore Capital Group, Inc.

Q4 2013 EARNINGS CALL

Exhibit 99.1

CAUTIONARY NOTE ABOUT

FORWARD-LOOKING STATEMENTS

PROPRIETARY

The statements in this presentation that are not

historical facts, including, most importantly, those

statements preceded by, or that include, the words

“will,”

“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 of 1995 (the

“Reform Act”).

These statements may include, but

are not limited to, statements regarding our future

operating results, earnings per share, and

growth.

For all “forward-looking statements,”

the

Company claims the protection of the safe harbor

for forward-looking statements contained in 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 its most

recent report on Form 10-K, and its subsequent

reports on form 10-Q, each as it may be amended

from time to time.

The Company disclaims any

intent or obligation to update these forward-looking

statements.

ENCORE DELIVERED RECORD QUARTERLY EARNINGS

* From continuing operations attributable to Encore

** Please refer to Appendix for reconciliation of Economic EPS, Adjusted EBITDA, and Economic Net Income to GAAP

*** Cost to Collect is Adjusted Operating Cost / Dollars collected. See Appendix for reconciliation of Adjusted Operating Cost to GAAP

Note: All figures include Cabot Credit Management UK results unless otherwise indicated

PROPRIETARY

GAAP EPS*

Economic EPS**

GAAP Net Income*

Economic Net

Income**

Collections

Adjusted EBITDA**

Cost to Collect***

Estimated Remaining Collections of $4.0 billion

$0.87

$1.05

$24

million

$28

million

$351 million

$206 million

42.1%

…AND RECORD FULL-YEAR 2013 RESULTS

* From continuing operations attributable to Encore

** Please refer to Appendix for reconciliation of Economic EPS, Adjusted EBITDA, and Economic Net Income to GAAP

*** Cost to Collect is Adjusted Operating Cost / Dollars collected. See Appendix for reconciliation of Adjusted Operating Cost to GAAP

Note: All figures include Cabot Credit Management UK results unless otherwise indicated

PROPRIETARY

GAAP EPS*

$2.94

GAAP Net Income*

$77

million

Economic EPS**

$99

Economic Net

Income**

$3.86

Collections

$784 million

Adjusted EBITDA**

$1.28 billion

Cost to Collect***

39.1%

million

WE CONTINUE TO MAKE STRATEGIC ACQUISITIONS TO

DRIVE GROWTH AND INCREASE OPTIONALITY

Refinancia

Leader in Colombian and Peruvian NPL

markets

Purchased 51% ownership in

December 2013

Capital deployment opportunities of

~$40M+ annually; platform for Latin

American expansion

Marlin Financial Services

Provides litigation capabilities to

Cabot Credit Management

Creates uplift for current and future

portfolios

Accelerates Cabot’s entry into

secondary and tertiary markets

Grove Capital Management

Market leader in bankruptcy market

individual voluntary arrangements

(“IVA”)

Potential deployments of $50M+

annually

Strong servicing platform

PROPRIETARY

WE REMAIN FOCUSED ON DELIVERING TOP QUARTILE

RETURNS

Management Team •

Learning Organization •

Principled Intent

Growth, Margin Expansion, Free Cash Flow, PE Multiple Expansion

Top Quartile Total Shareholder Return

Specialized call

centers

Efficient international

operations

Internal legal

platform

Operational Scale

& Cost Leadership

Sustained success at

raising capital

Low cost of debt

Sustainable

borrowing capacity

and cash flow

generation

Prudent capital

deployment

Strong Capital

Stewardship

Consumer

intelligence

Data driven,

predictive modeling

Portfolio valuation at

consumer level

Consumer Credit

Research Institute

Superior

Analytics

Uniquely scalable

platform

Strategic investment

opportunities in

geographic and

asset adjacencies

Extendable

Business Model

PROPRIETARY

OUR FOCUS ON TSR DRIVES OUR GROWTH STRATEGY

Domestic core business

EAF

2012

AACC

–

2013

Propel

competitor

2013

Cabot

Marlin

–

2014

Refinancia

Grow our core business

and our subsidiaries

Cabot

2013

and

Marlin

2014

(UK)

Grove

(UK)

2014

Refinancia

(Latin

America)

2013

Geographic expansion

Propel

2012

Refinancia (Credit cards, point-

of-purchase

guarantees)

2013

Grove

(IVA)

2014

Diversify into new asset

classes

This strategy allows us to deploy capital wherever we see the highest

returns and continue to achieve our earnings growth rates

IN LATE Q4, WE CLOSED THE ACQUISITION OF A 51% INTEREST IN

REFINANCIA, EXPANDING OUR PRESENCE TO COLOMBIA AND PERU

Refinancia’s drivers

Data-driven

Decision-making

Commitment To

Consumer Rights

Extendable Business

Model

Refinancia has deep relationships with leading banks in

the region

* All buyers

** Refinancia estimates

PROPRIETARY

New Market Opportunities

Higher Returns

Platform for Latin American expansion

Investment Benefits

With 1,000 employees, Refinancia is a leading buyer of non-performing loans in:

$100 million

39%

2013 Capital

Deployed*

2013 Refinancia

Market Share**

2013 Capital

Deployed*

2013 Refinancia

Market Share**

$13 million

64%

REFINANCIA IS ENCORE’S ENTRY INTO THE LATIN

AMERICAN MARKETS

Market

Niche

Opportunities

Business

Description

Improvements in call center

operations technology

Process reengineering

Advances in Decision

Science

Improved monitoring and

strategies around legal

collections

PROPRIETARY

Individuals with

default in their

credit history

NPL portfolio purchase, servicing,

and collections (Colombia, Peru)

NPL portfolio servicing and

collections for banks

Consumers with

limited credit

options at the

point of

purchase

Guarantee payment plans offered by

merchants, check guarantee,

servicing, and collections

Factoring of merchant payment plans

(liquidity generation for merchants)

Credit risk is taken by partner bank

Banked clients

with risk of credit

default

First subprime credit card offered in

Colombia

Credit risk is taken by partner bank

Market to customer base at

Refinancia and partner bank

WE HAVE AGREED TO ACQUIRE A 68% INTEREST IN GROVE CAPITAL

Grove specializes in the purchasing and servicing of insolvencies,

consisting primarily of individual voluntary arrangements (“IVAs”)

and bankruptcy receivables in the UK

IVAs

Roughly equivalent to a chapter

13 bankruptcy in the U.S.

Constitutes a formal repayment

proposal presented to a debtor’s

creditors

PROPRIETARY

An asset manager supplying

business development, account

level portfolio analytics, bidding

management and master

servicing

Successfully deployed ~£100

million in over 50 transactions in

the U.K. insolvency market since

its formation

Investment will facilitate Encore’s

capital deployment strategy in

the IVA asset class with an

annual target of more than $50

million

Grove

Capital Deployment

Strategy

Further opportunities as Grove

expands in Spain and other

European countries

EARLIER THIS MONTH CABOT ACQUIRED MARLIN FINANCIAL GROUP

Marlin Financial Group is a UK debt buyer with a focus on litigation

PROPRIETARY

Company

Portfolio

Transaction

Rationale

Financing

Status

To date, portfolio

purchases have totaled

£264 million with a total

face value of approx.

£2.2 billion and an

average account

balance of £4,800

As of September 30,

2013, Marlin had ERC of

£352 million

Expected ERC lift

attributed to Cabot’s back

book from utilizing

Marlin’s litigation platform

for non-paying accounts

Valuable talent pool

Cabot + Marlin can

leverage full extent of UK

market growth with

complementary niches

Fully financed by Cabot

based on the combined

companies’

balance

sheets

No additional investment

is required from Encore

Cabot just closed the

transaction and

integration has begun

MARLIN MEANINGFULLY ENHANCES ENCORE’S UK MARKET

POSITION

Creates the ability to optimize account scoring and collection channel across both

operations

Operational efficiencies and economies of scale

Enhanced, sustainable

profitability

Increases Encore's exposure to the high-growth UK market

Strong relationships with key vendor banks make Cabot+Marlin well-placed to increasingly

become the purchaser of choice

Creates the UK market

leader by ERC

Cabot+Marlin can leverage the full extent of UK market growth with complementary niches

Ability to sustain IRRs on future purchases in the face of increasing competition through

incremental litigation collections

Strong growth profile

Valuable additional talent pool with deep industry experience

Deep management

bench strength

PROPRIETARY

St Cloud, MN

Phoenix, AZ

New Delhi, India

Call Center /

Technology Site

Call Center

Site

Call Center Site

San Diego, CA

Headquarters /

Call Center Site

Costa Rica

San Antonio, TX

Propel

Cabot HQ / Call

Center Sites

West Malling, UK

Stratford-upon-Avon, UK

Call Center

Site

Tampa, FL

Call Center Site

Warren, MI

Call Center Site

Colombia

Refinancia

Peru

Refinancia

Marlin

Dublin, Ireland

Worthing, UK

WITH OUR GROWTH HAS COME SIGNIFICANT GEOGRAPHIC

DIVERSIFICATION

PROPRIETARY

WE ARE CONFIDENT IN OUR ABILITY TO EXECUTE ON THE

TRANSACTIONS BECAUSE OF OUR STRONG PERFORMANCE ON OUR

RECENT ACQUISITIONS

Initial Expectations

PROPRIETARY

Asset Acceptance Performance

HR Integration

Payroll

Integration

Support Function Rationalization &

Technology Integration

IL Acct Placement

and Conversion

Call Center

Rationalization

2013

2014

$200

$180

$160

$140

$120

$100

$80

$60

$40

$20

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Please

refer

Appendix

for

reconciliation

Adjusted

EBITDA

GAAP

** Cost to Collect is Adjusted Operating Cost / Dollar collected. See Appendix for reconciliation of Adjusted Operating Cost to GAAP

WE ARE CONFIDENT IN OUR ABILITY TO EXECUTE ON THE

TRANSACTIONS BECAUSE OF OUR STRONG PERFORMANCE ON OUR

RECENT ACQUISITIONS (CONT’D)

Cumulative (July –

December

2013)

Adjusted EBITDA*

$100.4 million

Portfolio purchases

$621 million

Collections

$134.3 million

Revenues

$95.5 million

ERC

$1.5 billion

Cost to collect**

27.0%

CABOT INDIA OPERATIONS LAUNCH

12/15

1/1

1/15

2/1

2/15

Overall IT infrastructure and

data security readiness

User

Testing

Pilot team ‘Go-Live’

@ India

Inventory identification

Legal & statutory

compliance

Cabot & Encore teams

to develop pricing

models

20 Jan’14

calling Day One

On the job training

PROPRIETARY

Cabot

Comments due

2/28/14

Summer

2014

Late 2014 –

Mid 2015

30 days –

1 year

Spring –

Summer

2014

CFPB RULEMAKING OVERVIEW

PROPRIETARY

Advance Notice of

Proposed Rulemaking

(ANPR)

Notice of

Proposed

Rulemaking

(NPR)

Final

Rulemaking

Effective Date

Small Business

Regulatory

Enforcement

Fairness Act

(SBREFA) Panel

Standardization of data/documents needed for collections

Robust validation notices

Comprehensive disclosures on interest, statute of limitations & credit reporting

No reinstatement of expired debt upon payment

Fostering consumer communications using modern technologies

Encore’s

ANPR

response

will

show

thought

leadership

advocating

for

higher

industry

standards

Detailed Financial Discussion

GROWTH IN DEPLOYMENTS WAS LED BY CABOT

CREDIT MANAGEMENT AND ASSET ACCEPTANCE

PROPEL DEPLOYMENTS

CABOT DEPLOYMENTS*

RECEIVABLE PORTFOLIO DEPLOYMENTS

45**

REFINANCIA DEPLOYMENTS*

*Includes deployments on behalf of others as well for own account

PROPRIETARY

700

130

231

700

600

500

400

300

200

100

154

423

618

105

Q1 2012Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013

Texas

Other states

2012

2013

2012

2013

2012

2013

2012

£M

**Includes $29 million related to the acquisition of a competitor

THE AACC AND CABOT ACQUISITIONS ACCELERATED

2013 COLLECTIONS

Core Collections

2012: $948

2013: $1,280

PROPRIETARY

400

350

300

250

200

150

100

2012

2013

2012

2013

110

115

111

113

122

134

154

155

110

112

117

104

127

117

119

103

231

241

246

230

270

278

380

351

Collection Sites

Collection Agencies

Legal Collections

Cabot

400

300

200

100

STRONG COLLECTIONS LED TO SOLID REVENUE

GROWTH

Revenue From Receivable Portfolio Collections

2012: $545

2013: $745

PROPRIETARY

126

139

141

140

141

152

225

227

250

200

150

100

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

ENCORE’S COST TO COLLECT FULLY REFLECTS AACC’S

AND CABOT’S OPERATIONS

* Cost to Collect is Adjusted Operating Cost / Dollar collected.

See Appendix for reconciliation of Adjusted Operating

Cost to GAAP.

PROPRIETARY

Channel

Q4 2013

CTC

Q4 2012

CTC

Cabot

26.7%

24.8%

Legal

36.8%

43.2%

Core sites

8.9%

7.3%

38%

39%

40%

43%

36%

38%

40%

42%

30%

40%

50%

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Overall Cost to Collect*

AFTER SEVERAL QUARTERS OF INVESTMENT, COST

TO COLLECT IN INTERNAL LEGAL IS DECLINING

Legal Outsourcing Cost to Collect

Legal Outsourcing Collections

Internal Legal Cost to Collect

2012: $430

2013: $469

2012: $19

2013: $96

PROPRIETARY

10%

20%

30%

40%

50%

2011

2012

2013

150%

300%

450%

50%

100%

2011

2012

2013

100

2011

2012

2013

120

2011

2012

2013

Internal Legal Collections

PROPRIETARY

COLLECTIONS GROWTH AND COST IMPROVEMENTS

LED TO IMPROVED CASH FLOWS

* Please refer to Appendix for reconciliation of Adjusted EBITDA

to GAAP

Adjusted EBITDA*

2012: $577

2013: $784

144

148

151

135

173

174

231

206

100

150

200

250

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Estimated Remaining Collections

THE CABOT AND AACC TRANSACTIONS RESULTED

IN STRONG GROWTH IN ERC

Encore ERC

Asset Acceptance ERC

2,741

4,022

Cabot ERC

1,724

1,983

1,890

1,967

1,911

1,780

2,519

3,990

961

1,503

1,000

2,000

3,000

4,000

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

PROPRIETARY

CABOT CONTRIBUTED $0.36 TO ENCORE’S 2013

ECONOMIC EPS

PROPRIETARY

In 000’s except per share amounts

Janus

Encore Europe Holdings

EEH Consolidated

Revenue / other income

$95,491

Total Expenses

(48,890)

EBITDA

46,601

Non-PEC Interest Expense

(26,265)

PEC Interest Expense

(21,616)

10,235

(11,381)

Other Income

Earnings Before Income Tax

(1,182)

10,235

9,053

Income tax

(1,574)

Net (loss) / profit before minority interest

(2,756)

10,235

7,479

JCF / Mgmt non-controlling interest

392

1,167

1,559

Net (loss) / profit attributable to Encore

$(2,364)

$11,402

$9,038

PROPEL CONTINUES TO GROW AND CONTRIBUTE TO

ENCORE

Capital Deployed

Total Revenue

Operating Income

Over $145 million of

capital deployed in

2013

Now operating in 10

states

$35M competitor

acquisition

PROPRIETARY

Q4*

*Includes $29 million related to the acquisition of a competitor

ENCORE’S Q4 ADJUSTED EPS SET A RECORD OF $1.05

PER FULLY DILUTED SHARE

* Please refer to Appendix for reconciliation of Adjusted EPS measurements to GAAP

PROPRIETARY

$0.87

$1.01

$1.05

$0.04

$0.10

Net income per diluted share

from continuing operations

attributable to Encore

Net non

-cash interest and

issuance cost amortization,

net of tax

Acquisition related fees, net of

tax

Adjusted net income from

continuing operations per

diluted share attributable to

Encore -

(Accounting)

Adjusted net income from

continuing operations

attributable to Encore

(Economic)*

ENCORE’S 2013 ADJUSTED EPS SET A RECORD OF $3.86

PER FULLY DILUTED ECONOMIC SHARE

* Please refer to Appendix for reconciliation of Adjusted EPS measurements to GAAP

PROPRIETARY

$2.94

$3.77

$3.86

$0.12

$0.71

Net income per diluted share

from continuing operations

attributable to Encore

Net non-cash interest and

issuance cost amortization,

net of tax

Acquisition related fees, net

of tax

Adjusted net income from

continuing operations per

diluted share attributable to

Encore -

(Accounting)

Adjusted net income from

continuing operations

attributable to Encore -

(Economic)*

Key Factors

Current

Facility Size

$754.5M

$846.3M

Transaction Limit

$50M (Single) / $75 (Aggregate)

$75M (Single) / $150 (Aggregate)

Maturity

2017

2019

Accordion

$162.5M

$250M

Propel

$300M

$400M

Convertibles

$300M

$450M

Foreign Portfolios

$150M

$200M

Stock Repurchase

($0) filled

$50M

Rentals

$15M per year

$20M per year

Capital Expenditures

$20M per year

$30M per year

Credit Facility Summary

WE MADE SEVERAL KEY AMENDMENTS TO OUR CORE

CREDIT FACILITY TO SUPPORT ENCORE’S GROWTH

PROPRIETARY

ENCORE’S LONG-TERM PROSPECTS CONTINUE TO

BE FAVORABLE

Operating Results

& Deployment

A culture of constant

improvement drives

improved results

Liquidity &

Capital Access

Strong liquidity and

access to capital enhance

our ability to

take advantage

of consolidating markets

and new opportunities

Solid Cash Flows

Additional asset classes

and geographies continue

to enhance ERC and

collections

Geographic &

Asset Class

Diversification

We are an international

company in several asset

classes, positioned for

strong earnings growth

going forward

PROPRIETARY

Appendix

NON-GAAP FINANCIAL MEASURES

This presentation includes certain financial measures that exclude the impact of certain items and therefore

have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The

Company has included information concerning Adjusted EBITDA because management utilizes this

information, which is materially similar to a financial measure contained in covenants used in the

Company's revolving credit facility, in the evaluation of its operations and believes that this measure is a

useful indicator of the Company’s ability to generate cash collections in excess of operating expenses

through the liquidation of its receivable portfolios. The Company has included information concerning

Adjusted Operating Expenses in order to facilitate a comparison of approximate cash costs to cash

collections for the portfolio purchasing and recovery business in the periods presented. The Company has

included Adjusted Income from Continuing Operations per Share because management believes that

investors regularly rely on these measures to assess operating performance, in order highlight trends in the

Company’s business that may not otherwise be apparent when relying on financial measures calculated in

accordance with GAAP. Adjusted EBITDA, Adjusted Operating Expenses and Adjusted Income from

Continuing Operations and Adjusted Income from Continuing Operations per Share have not been

prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as

alternatives

to,

meaningful

than,

net

income,

net

income

per

share,

and

total

operating

expenses

as indicators of the Company’s operating performance. Further, these non-GAAP financial measures, as

presented by the Company, may not be comparable to similarly titled measures reported by other

companies. The Company has attached to this presentation a reconciliation of these non-GAAP financial

measures to their most directly comparable GAAP financial measures.

PROPRIETARY

December 31,

2013

2012

Per Diluted

Share –

Accounting

Per Diluted

Share –

Economic*

Per Diluted

Share –

Accounting

Per Diluted

Share –

Economic

Net income from continuing operations

attributable to Encore

24,385

$0.87

$0.90

20,167

$0.79

Adjustments:

Net non-cash interest and issuance cost

amortization, net of tax

1,185

$0.04

$0.05

191

$0.01

Acquisition related legal and advisory fees,

net of tax

2,770

$0.10

Acquisition related integration and consulting

fees, net of tax

Acquisition related other expenses, net of tax

Adjusted net income from continuing

operations attributable to Encore

28,340

$1.01

$1.05

$20,358

$0.80

RECONCILIATION OF ADJUSTED/ECONOMIC NET

INCOME AND ADJUSTED/ECONOMIC EPS

Reconciliation of Adjusted Net Income and Adjusted EPS to GAAP EPS

(Unaudited, in thousands, except per share amounts), Three Months Ended

PROPRIETARY

* Excludes approximately 1,041,000 shares issuable upon the conversion of the company’s convertible senior notes due 2017 that are

included for accounting purposes but will not be issued due to certain hedge and warrant transactions

RECONCILIATION OF ADJUSTED/ECONOMIC NET

INCOME AND ADJUSTED/ECONOMIC EPS

Reconciliation of Adjusted Net Income and Adjusted EPS to GAAP EPS

(Unaudited, in thousands, except per share amounts), Full Year

* Excludes approximately 595,000 shares issuable upon the conversion of the company’s convertible senior notes due 2017 that are included for

accounting purposes but will not be issued due to certain hedge and warrant transactions

PROPRIETARY

2013

2012

Per Diluted

Share –

Accounting

Per Diluted

Share –

Economic*

Per Diluted

Share –

Accounting

Per Diluted

Share –

Economic

Net income from continuing operations

attributable to Encore

77,039

$2.94

$3.01

78,571

$3.04

Adjustments:

Net non-cash interest and issuance cost

amortization, net of tax

3,274

$0.12

$0.13

191

$0.01

Acquisition related legal and advisory fees,

net of tax

12,981

$0.50

$0.51

2,567

$0.10

Acquisition related integration and consulting

fees, net of tax

3,304

$0.13

Acquisition related other expenses, net of tax

2,198

$0.08

Adjusted net income from continuing

operations attributable to Encore

98,796

$3.77

$3.86

$81,329

$3.15

Reconciliation of Adjusted EBITDA to GAAP Net Income

(Unaudited, In Thousands) Three Months Ended

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

9/30/10

12/31/10

3/31/11

GAAP net income, as reported

6,162

3,028

(2,095)

8,997

6,641

9,004

8,405

10,861

11,730

12,290

14,171

13,679

(Gain) loss from discontinued operations, net of

tax

(89)

(483)

(457)

(365)

(410)

(901)

(687)

(684)

(315)

(397)

Interest expense

4,831

5,140

5,401

4,273

3,958

3,970

3,959

4,538

4,880

4,928

5,003

5,593

Provision for income taxes

4,161

2,429

(1,781)

5,670

3,936

5,676

4,078

6,080

6,356

6,474

9,057

8,349

Depreciation and amortization

482

396

391

410

402

443

516

522

591

650

789

904

Amount applied to principal on receivable

portfolios

35,785

35,140

46,364

42,851

48,303

49,188

47,384

58,265

64,901

63,507

53,427

85,709

Stock-based compensation expense

1,288

860

382

1,080

994

1,261

1,049

1,761

1,446

1,549

1,254

1,765

Adjusted EBITDA

52,560

47,039

48,179

62,824

63,869

69,132

64,490

81,340

89,220

89,083

83,729

115,602

6/30/11

9/30/11

12/31/11

3/31/12

6/30/12

9/30/12

12/31/12

3/31/13

6/30/13

9/30/13

12/31/13

GAAP net income, as reported

14,775

15,370

17,134

11,406

16,596

21,308

20,167

19,448

11,012

21,064

22,216

(Gain) loss from discontinued

operations, net of tax

(9)

(60)

101

6,702

2,392

308

1,432

Interest expense

5,369

5,175

4,979

5,515

6,497

7,012

6,540

6,854

7,482

29,186

29,747

Provision for income taxes

9,475

9,834

10,418

11,660

12,846

13,887

13,361

12,571

7,267

10,272

15,278

Depreciation and amortization

958

1,054

1,165

1,240

1,420

1,533

1,647

1,846

2,158

4,523

5,020

Amount applied to principal on

receivable portfolios

83,939

73,187

69,462

104,603

101,813

105,283

90,895

128,481

127,370

154,283

124,520

Severance and Stock-based

compensation expense

1,810

2,405

1,729

2,266

2,539

1,905

2,084

3,001

5,364

3,983

3,486

Acquisition related expense

489

3,774

1,276

12,848

7,752

4,260

Adjusted EBITDA

116,317

106,965

104,988

143,881

147,877

150,928

134,694

173,477

173,501

231,371

205,959

RECONCILIATION OF ADJUSTED EBITDA

PROPRIETARY

Note: The periods 6/30/08 through 12/31/08 have been adjusted to reflect the retrospective application of ASC 470-20. All periods have been adjusted to show discontinued ACG operations.

Reconciliation of Adjusted Operating Cost to GAAP Operating Cost

(Unaudited, In Thousands) Three Months Ended

RECONCILIATION OF ADJUSTED OPERATING COST

PROPRIETARY

3/31/12

6/30/12

9/30/12

12/31/12

3/31/13

6/30/13

9/30/13

12/31/13

GAAP total operating expenses,

as reported

91,394

102,809

103,621

103,872

105,872

126,238

174,429

168,466

Adjustments:

Stock-based compensation expense

(2,266)

(2,539)

(1,905)

(2,084)

(3,001)

(2,179)

(3,983)

(3,486)

Operating expense related to other

operating segments

(331)

(2,815)

(3,053)

(3,092)

(5,274)

(6,367)

(12,115)

(12,755)

Acquisition related integration and

consulting fees and severance costs

(5,455)

Acquisition related legal and

advisory fees

(489)

(3,774)

(1,276)

(6,948)

(7,752)

(4,260)

Adjusted operating expenses for the

portfolio purchasing and recovery

business

88,308

93,681

98,663

98,696

96,321

105,289

150,579

147,965

December 31, 2013

GAAP net income attributable to Encore Europe Holdings s.a.r.l.

9,038

Loss from noncontrolling interest

(1,559)

GAAP net income

7,479

Adjustments:

Interest expense

37,646

Provision for income taxes

1,573

Depreciation and amortization

3,096

Amount applied to principal on receivable portfolios

48,849

Acquisition related legal and advisory fees

800

Adjusted EBITDA

100,443

Reconciliation of Adjusted EBITDA to GAAP Net Income

(Unaudited, In Thousands) Six Months Ended

RECONCILIATION

ADJUSTED

EBITDA

CABOT

PROPRIETARY

Reconciliation of Adjusted Operating Cost to GAAP Operating Cost

(Unaudited, In Thousands) Six Months Ended

RECONCILIATION OF ADJUSTED OPERATING COST -

CABOT

PROPRIETARY

December 31, 2013

GAAP total operating expenses, as reported

$48,890

Adjustments:

Operating expense related to other operating segments

(11,876)

Acquisition related legal and advisory fees

(800)

Adjusted operating expenses for the portfolio purchasing and recovery

business

$36,214

Encore Capital Group, Inc.

Q4 2013 EARNINGS CALL

Encore Capital (ECPG) 8-KThe statements in this presentation that are not