ECPG - Earnings call transcript Q3 2020 | Encore Capital Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Encore Capital Group's Q3 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Bruce Thomas from Encore Capital. ahead. go Please

Bruce Thomas

Good third operator. welcome Encore to Thank XXXX afternoon earnings Group's quarter call. Capital you, and

Joining me Cabot Vice on President the Craig President call today are Management; Credit Executive Financial Ryan and Jonathan of Chief Midland and CEO Ashish Officer; Clark, Management. and Executive of President Buick, Officer; Bell, Credit Chief Masih, our

be otherwise and between quarter conference to take happy Jon we'll then be this of quarter will Ashish third of on questions. the make noted, Unless XXXX and call third made prepared will remarks today, the comparisons your and XXXX.

potential will forward-looking our and Actual to these discussion today's addition, uncertainties. and materially statements. risks forward-looking subject SEC uncertainties. filings In could from risks differ include of statements for refer to a Please results discussion detailed

abbreviations we sake During will the and rounding use for call, brevity. of this

will the to included was measures. today. X-K be most measures discussing our earlier directly filed earnings We non-GAAP are financial financial which presentation, Form in GAAP Reconciliations also on comparable

As Ashish will investors a also With me and replay call also section we this of where conclusion following reminder, Executive the of President to post turn for available will the let website, this over call. on prepared be Masih, remarks our made our that, conference our Chief the call Officer.

Ashish Masih

good for Thanks, joining our afternoon, you and everyone. Thank Bruce, earnings call.

we of workplaces, continues Working our quarter before all the changing your the The With employees. the a the remain pandemic of of the dynamics perform quarter. the of or the consumer pandemic. realities we through COVID-XX circumstances. above through safe of of to team the creation at around we productivity current third discussed remain level families dynamics and the healthy, from high continued operational continue prioritize each markets we we we and adapting working ago hope exhibited the into you pandemic and a the And your in our persistence, serve. At of world, home, to fully while to safe welfare that combination Encore,

to We assistance out been reaching while day, debts. consumers consumers are relief recovery. and us numbers consumers and their financial extend increasing with their have to of with appropriate, for when able Our resolve we financial hardship have every deal

way As new consistent fair implement result, Friday, interact the new with these more and much the new U.S. industry economy the with with consumers with CFPB in as modern They months past of to the expected consumers, financial goal ago, us. rules for treatment uniformity prepared needed are the us for largely with our of rules, and consumers the very responsible this whole. also rules providers, those them to well prefer rules and are a released to for These much create fully operational incremental changes. means, a consumers significant consumer CFPB's markets debt with in proposed making The communicate remain opportunities no work XX aligned clarity for provide To collection. we we provide as and consistent

a achievement has of great improvement The for period sheet Encore. of quarter third The of our strategic some was for balance been a steady time. ours priority

to came deploy to More one September best strength through collections we moments. structure line to Encore, reducing It sheets operationally returns in a an in As we Global series strong improved flexibility. highlights few our the specifically, goal funding the and third the in of better capital million funding financial our delivered and balance a in goal enhanced combining a a for XX% quarter which third capital outstanding to Revenues this up U.S. ability expected unified accomplish this year for and of $XXX $XXX for than part results. the We funding European benefits compared were had of Cabot. sight the our maximizes of costs. structure. now million MCM into access Jon also a will and both effort, of was markets, recap the quarter of the market ago. in the include a that of new actions global with record quarter for

billion Our up ERC was QX record $X.X XX% and compared to was last year.

$XX just of per $X.XX than last Non-GAAP redeliver $X.XX XX% net collections income QX million, more result performance a GAAP As share. strong per which adjusted for was our through share, income was year. or of

these In can our performance be addition in level found returns the clear a results, of to business. of indication in a higher

XX capital and at trailing well ability around on we difficult it as result industry. such other efficiently under a returns. demonstrates The as our continue QX, reached returns returns at to to as return-on-equity strong operate Our conditions, deliver believe, solid is We companies months basis overtime. current in find attractive deploy to XX.X% market and our

years. Our consistent over improvement growth in past a the several business generation cash demonstrates in steady the

record in we for adjusted EBITDA collections new set which benchmark again principal, industry quarter, for to the In third generation. is fact, a the applied cash plus

multiples. portfolios cash continue and that to efficiently operate taxes, Even cash subtracting We interest, after attractive purchase and CapEx.

to each generate cash substantial We quarter. continue

to MCM collections in to U.S. business. QX compared XX% our were third of the million, quarter up now last record Turning $XXX year.

proportion our towards to channel. digital from benefit collections call to continues performance and our direct the larger efforts of MCM center Our a

base from We continue platform. through to strong our consumer digital to us with our engage demand see

improve to of constraints result, the and focus would collect digital to industry. should same clarity the across management, efficiency as and leverage $XXX the period, expense create have And, the the were provide QX believe the to going uniformity the week, related moment Due in was by COVID the and new released constraints, MCM a last mentioned continues business. operating our we operating we consumers I forward. our in the diminish strong reflection have compared in continued somewhat quarter resulting on year in ago a otherwise. we year. expenses expected a across on As created compared channel deployments quarter when MCM's which treated XX% a how quarter lower to These call is ago, to last rules million, are CFPB third the were incurred collections and up than impacts third be center

In operational incremental ago, no consistent they are compliance the proposed us significant time the as changes prepare. giving issued instead rules, largely achieve rules to with requires months CFPB's with new addition, were XX to that

the down UK continued QX compared Turning to In showed Europe continental in collection a digital in with measures resulting X% and collections from to QX, COVID the year broadly At pandemics only quarter same government practices. ago. the Cabot. our in in line year. collections impact the of but and Europe, litigation our center related and in signs last time, we’re recovery, continue channel to call In third

breakage UK to for continental demand pandemic continued As we no into see in and all expect to has to Europe level the QX solid of profitability. continued environments end this the race. change for of management material XXXX. and lower in purchasing Capital we continue the The enabled and persist and subdued supply

are assistance stronger rise increase pipeline the government opportunities seeing a as to we are in after meaningfully of an forming UK. programs servicing However, subside. charge-offs expected opportunities, in We purchasing anticipate

returns. John our like third for And capital prior that our deploy attractive to new look hand to more financial now at standalone funding the at enhanced provides related a detailed an the removes structure constraints quarter leverage. forward, I'd over Looking to to results. Cabot's global stability us call

Jonathan Clark

Ashish. you, Thank

million the U.S. million collections QX to the million quarter $XX revenue quarter. our ago. in third a In refer European in incremental Cabot's $XXX QX pandemic. compared QX In and million. total during the limited quarter third to income of QX the of made down better quarter supply. coming we third quarter first onset compared the will Europe million Global result collections collections where quarter $XXX X% record digital center in ago. XX% or was the course year to compared quarters of as business quarter, deployed to to XXXX. $XXX year. in for $XXX the $XX $XXX in to Within were down of U.S., third to COVID-XX may were the in our QX to QX, to $XXX the million reductions the and up compared grew current collections third deployments somewhat in to ERC were revenues We during from ago. quarter As quarter Global third third global XX% brand to of were grew MCM our in more of pricing, revenues refer third majority collections reflected with statement a purity European U.S. Global Europe, business Midland open the the XX% in ago, XXX% pandemic. of in reminder, XX third revenues primarily the than This overperformance same million million million simply XXXX. of QX decrease the million, last the MCMs Cabot. at record purchasing $XXX compared at name, as forecast market million. due from the We Higher debt deployments Overall million million of portfolios under to call coupled a total expected expected the were three $XXX COVID year against supply our in year quarter changes The recoveries. million XXXX collections a $XXX $XXX to is Credit in same it's $XX long future lower quarter. MCM our due as in up and in sometimes the were year. by X% December MCM. last the that in compared reflected our believe to collections of Management, $XXX over also same business in the year

the these the tax $X.XX ERC when would year. share, of economic in There the non-operating per to the earnings last third After per in QX items September, non-GAAP effects of QX are to EPS GAAP adjustments that Our third the of per share This highlight. was of at quarter. making last we QX our two $X.XX and In of up to $X.X economic $X.XX was like share billion end adjustments EPS per XX% end that compared compares accounted year. I noncash year. reported compared of of quarter, $X.XX last share in global for to

year filed which $XX CFPB of September, a is share. the this a translates complaint GAAP payment net QX our the to EPS per to million at settle of $X.XX impact we in made in First, they

and a share with our global after million our associated new of economic in funding tax. $XX both net expenses GAAP QX totaled impact Second, structure, which from establishing are EPS $X.XX per

leverage benefits his sheet effectively have combined businesses, many borrowing the Among implemented of this scale. and enhancing which structure better our September, successfully allows in Ashish we leverage combined us future to to flexibility, balance new our remarks, markets. we fully allowing to our Cabot and our As the in MCM their mentioned access opening us structure, maximized global funding capital global new or and base,

We have maturities. extended our debt

removed the markets were to that with costs. have specific of stability to leverage line for now the to And an providing enhanced the we capital reduce have We us prior returns. sight to funding allocate constraints Cabot best

of of XXXX, on funding As to net debt-to-adjusted lie measure the ourselves X.X the the reduced a plus position over applied collections ahead. we've sheet ratio to our EBIT, from have plus times structure that times. in put of of we debt-to-equity principal, industry. opportunities new past We've capitalize reduced balance our common to strong results beginning the ratio a years, our in also strengthening our Since X.X two our attractive of

has reduced level the times by in our lowest strong which X.X among to have capital in operating that is and On driven times peer a de-levering in been focused from group. course the X.X this We deployment, levels have of ratio performance resulting the efficiency RCF our cash with the at $XXX driven concluded million quarter. was global flow. QX balance cash capacity of And $XXX Available we on non-client third turn higher sheet. new of million under and end

which million convertible notes July, reduced XX%. size matured by of also convertible that paid We of in off have our the complex $XX

we're that in debt conservative the our to reduce If of you convertible midst turn back effort it that, I'd of like recall a Ashish. stack. the level in With us closely, follow you capital over will to to

Ashish Masih

Jon. you, Thank

the maintain The and U.S. priorities strong and our in three our markets. priorities the continue mentioned on opportunities results. continuing and and and to value, ERC enhance be while focusing believe remain was instrumental operating for sheet, two in largest In competitive expected strengthen As most the steady shareholder I results. strategic balance which the in a our to quarter to Encore, summary, building valuable achieved priorities, Innovating strong to we three UK, driving we include edge past, these generation. emphasis and outstanding well cash in delivering we record for With our collections, on attractive QX each positioned deliver performance continue an quarter solid markets. and

in the the a on significant GAAP reflects equity past third continuation years. solid A Our growth results five of and Encore are earnings quarter overtime. performance return strong over

to the and and pleased The the clarity treated CFPB rules of in our finally, by the see in balance to in the new addition are and industry. us XXXX to We have are well charge-offs global industry uniformity sheet the U.S. And the expected issued quality create across new liquidity how rules positioned in provide for consumers will the capitalize a and structure, beyond. our our significant funding on finalization of increase

the you up lines questions any answer we'd may open have. questions. happy Now Operator, please for to be that

Operator

from [Operator from Truist. Mark Instructions] first is question Hughes And your

Your open. line is

Mark Hughes

$XX Jonathan, EPS settlement? does economic in the include million CFPB the

Jonathan Clark

only that funding to that impacted the charges one the global both, impacted new where is No, whether, GAAP, structure. related

Mark Hughes

economic the CFPB the EPS both funding structure excludes charge, So the that and correct? is

Jonathan Clark

referred Yes. before is that sorry. of that global out No, was was that the both. are say to to What funding the trying no, structure, $X.XX netted I

not by So the amount Economic with structure. economic the is for finance settlement global that are both by GAAP lower CFPB. the EPS and lowered

Mark Hughes

Okay.

settlement, to the one the one operating excluding CFPB that were I if back do have So $X.XX. EPS a Is correct? would

Jonathan Clark

be our with course, just just of bigger in these facilities. bonds perspective, costs to but so absorbed from this and financing yes, of bank costs incur past, Well, we we one time the kinds to happens And similar have from time aware. you're our in refinancing

Ashish Masih

Ashish. And of If is on kind this jump comments of thinking operating earnings. Mark, I in on the could you kind about made

So, about of kind mentioned of think as Jon them. three there norm. QX, out two I of were things

collections. be the of the do we noting, But we other might $X.XX are So structure. that forecast are because you The really on know, And reduced it, funding as continue elements performing to two performing QX and we worth the global COVID that we $XX well quarter, million pandemic. And to very in shifted of the that. in assume you could continue comparing from essentially QX revenues the against QX. was benefit in done from stages early to gain this about And well.

$X.XX continue mentioned have relating to but And had that's so other collections So to see benefit I And that's lower about expenses, say my a QX. the other activities particular one lower. been expenses, in would definitely and we I in in expenses $XX MCM, is running million comments, approximately. legal quarter

QX the expect normalize. forward quarter going onwards, to over I that So as

So those the norm in are earnings elements of earnings, our economic QX. out three in

Mark Hughes

What going extra take is how but pace? get spending? It'll back that million is to on the long normalize, to trajectory the to it lease $XX

Ashish Masih

you'll getting quickly. start I there think pretty

Some collections of it some is other it legal, is expenses. of

and QX and So basis. on build-ups seeing in we going then start in a quarterly the will it year early forward

Mark Hughes

low. companies card the to out of card be that over certainly do the months? credit How supply for that U.S. continue the losses charge-offs have see expected XX playing next large made On provisions you

Ashish Masih

our very are we also in the partners talking and closely, and to bank watching we issuer U.S. So

sure You all earnings reports. have, followed the bank I'm

charge-offs half course, the terms what card, normal. losses lower the they again. lower So are lot when charge-offs Banks them returning been come continuing industry, start expect to They is What than increase XXXX in to a environment those an see, rates, is to second and allowances, in many said an have they it's hearing we reserved so of than and of an that rising a are lending the consistently it's of has unusual through. the expect economic banks continuing normal, one. delinquencies higher for odd despite but time unemployment see macro are to credit hardship

this New U.S. all continuing has end their continue Year. rather this many contractual flows. selling. seeing sell So environment the lower seen we into so year, the volumes ways. banks are than wants have But most we interesting we'll just to in end I are that normally sell think to and the And strange through of are an and amounts likely of been economic and And the the at

the that's what have But And preparing we're hearing things right changed. now. for. So we're from banks

Operator

Scharf question from of next Securities. David your And JMP is

open. is line Your

David Scharf

hear on from compete you standing think formalization either it. outsource kind rules competitive to do the, chatter because with ultimately minimal you are any sell your outsourcing might some Or contingency party or the feeling? And that Did we a these I'm either wondering third view things of kind landscape that operational been bank your Or hear clear in they And just of you improve house, rules it the changes. keep formalization a you the the this is partners, to I'm about going gut couple you've the at as bank loud do you can of curious, side new the of going competitive much. should with it have all? new a well, and negatively we of guys stuff impact their partners? change not a just it's just doing? CFPB

Ashish Masih

had things So couple me David, a you try of address. there, to so in let

and operational So changes. no significant is, incremental then one

So calling there a to so digital should adapt, texting, are example. are positive we'll and there I'm while there it be net forth. e-mails overall, things, But are in for very have benefit. technology, that There things on

a adapt our have been, won't another seen rules in the rules And it. it year. Now, draft we've time had for about we lot be for to think for plan the months, XX effect of we've and

that lot rules. your question and issuance, would smaller so now, and in we came chatter complying scale is just have on tend of As we about some players Friday the of which from of to have banks, heard to have they out invest we of with the So implement. anything fresh to may terms you time I On view But very directly not more agencies have articulated, a banks. from the the point a look

fixed do years. to digital in for it many want you digital, and If a lot of investing takes costs,

I be would and able to it are people technologies actually. consumer waiting, focus, are to in that's leverage think going and who what not consumers much So creates people for benefit want, investing those And the a these who for investments more. are

and with dramatically. before to things charge-off, digitally are ensure bank used consumers and change their So working just

and that consumers this be from would I this I again, now data with benefit with So people meeting technology long-term. expect, the the point, Encore support like preferences. have no should we'll this to And at skill,

David Scharf

clarify you outreach of is to call the refer portal going bound front, and to in the digital so payments, can just Is that forth? kind refer does consumer that Or to? digital you a collections. when of On to just as digital and center inbound a texting digital such payment meaning, like context digital out referring also that

Ashish Masih

Yes, all it because them, would. a Omni multi-channel, of first kind it's you approach to the is of if channel

pay to to So, call or them lead consumer sometimes or the may to talk on an a online email a us. trigger will app

to it's So tough think.

and adapt So mentioned, question some I focused, is earlier will you back think the have that we call per when center caps we what very to digital going be to when have to shops CFPB, channel, and outbound that's one week combined of again, are digital And on refer seven and your center call something may in into a and suffer to channel. collections. and call that account calls also digital

and you And I to as know, be should as grow significantly. both call it. mentioned our digital last thought factor quarters, just about that continues very center another inbound, few we've So

So consumers in are and us engaging reaching calling digitally.

help while. factor. another the for driving been should That that trend we've a that's So

David Scharf

a QX? or in of that underperformance kind up don't and for view obviously QX coincidence, if CECL Is allowance. sort negative plus QX QX Just in cleaning for of is of question the dollar, more should took but almost one know we now? of guess is I the having kind COVID dollar it's start outperformance from related Jonathan. a a mark QX initial you coincidence we're fresh the just The I final

Jonathan Clark

great question, David. Yes, it's a

obviously around, want not current and overs cash you get various I rates time to, or discounted XQ you've you calculations quarter is Having year-to-date, and don't that, try as to we're at washed. said because and hate right. absolutely discount complicated get basically are these obviously sound the You how to you're seen XQ know, By to all. with the

UK. in we've So of U.S. now I off remember, had caught the past there's we've think that recoveries directionally, And forward we terms you're in discussed past. percentage on a go in basis, in in on the difference what have significant a as the correct the we delayed of versus

so they're generically those given UK speeds there, and correct. going yes, what's And at you're on with markets. right different But Europe moving

Operator

[Operator of from Securities. Grondahl question Northland is Instructions] Next Mike

Your open. line is

Mike Grondahl

associated more now can well seem collections, color? Because Can Digital with you year-over-year. looks center in just little bit you What's in us working? XX% is you. of you showing call You think little XX% U.S. it them a get like definitely driving the to they're digital kind doing there? just more Can growing up, those? cost they for a be the tell bit granular

Ashish Masih

Mike. Absolutely,

So XXXX as I decline, observation in and growing in been chart steadily. digital has call for have but good I the center care of pretty back many Are years at almost. look as

been trend segment center center. increased we've call part analytics managers accounts to really effort, That model, XXXX our focus call onwards, card dramatic, portion increase, end help the year-over-year, very and the cost significantly enhanced into a account call steady within an not it XXXX. very from call legal that's over center on of versus until consumer the was years, of model, focused So has call as and but

shift marked well rates, as us their of and home paying managers we their banks behaving pandemic which opening how speaking they're has e-mails. mode, what been their perhaps out account also as or savings are find debts environment engaging mode, There Now finding as perhaps terms off is in into the consumers did digitally. increase calling to responding a in differently of mail

digitally growth consumers were. on rate cannot way it I was we'll Now will are is continue And how it's slow down. and the comfortable I time a the one And sustained a be very And say. that or we of steady quite uptick of as say to now maybe can growing. bump. getting much But quarter

Now year which with rooms things now not when is that increasing of to and voicemails texting immediate, use. on the use from add I also all that into of channel going effect consumers outbound help the-mail, buy. prefer We'll would and but a interact those also

the So collect outcome better cost right well consumer, our bottom-line. on is to improvement overall the impacts you're very for the impact absolutely clear as and the to as straight in

Mike Grondahl

Secondly, at do if the little through U.S. second bit should gets about there some stimulus point, How softer is how think I.e. one? we a in that a a you a stimulus collections terms of but business? get your better think if supply? trade-off we second

Ashish Masih

good. Sounds

from and take me I'll at in if additional points he trying this. a to stab locations Let different has just -- after in jump it

per an stimulus and ongoing business. with So basis. se. target financial We do not dealing hardship we That's on our consumers money

small floor plan, hardship, with forth. and delays bank, dealing collections portion and For of hardship so payment, temporary given stop, consumer but independent we've debt hardship, are and them always and we

in maturity, stimulus the targeting something it's gone rate in not whether front, country The is many we're happening and or much So up. ways expensive. savings money, in stimulus across the world the has lower consumer

taking out and banks rate. of care are banks, their that at an debts consumers their So finding higher are

opens expenses different. Over up. think it driver or And I charge-offs happening. stimulus would don't are impact time, down traveling know just will down. are that's delinquencies specific not is the spending and economy other So be it the which may very or as I

bank and U.S. charge-offs and is to forbearance and programs, close impact not forbearance, whether And The close supply the zero. look lower delinquencies single digits lower if in you presentations of in are if at some on pretty other to getting low UK

of impacting saying. in that significant charge-off pandemic. banks delinquency and early go kind was least at the rates us U.S. the as in of probably and what was that's stages rates are So That the role will away

Forbearance in might prevalent bit so they UK, be be a may more longer.

many ways, and consumers support its comes the direct support also forbearance, in end. will cash, So from stimulus terms in of but for

eventually have has bit stimulus but point delinquencies how believe nobody perhaps don't, driver are there, see there. in telling here have impact really and really I banks some to to may we'll out exact plays and what And expected I a collections, charge-offs us So influences saying that the pinpointed but this rise.

So MCM you're Ryan, have on observing else operations anything side? and you did the

Ryan Bell

covered you Ashish. it think I well,

is I lot pay. think that of I to right that of an important and of at the aspects, go think situation ability into consumer things one thing stimulus I reiterate keep consumer the is determines a people track the to economic but overall, the metric thinks he's other look health individual just their

So see that debt. well, does their to as rates, track pay we savings consumer people we correlate

Operator

Oppenheimer. is from question Next of Dominick Gabriele

Your line is open.

Dominick Gabriele

year some first of we XXX collections, pretty at seeing just to So collections, quarter. if the revenue look of the where those some extent, the versus yield the kind look we been recognition at kind that the revenue rate improvements last recognition of we've second of and rose and the then on rates actually flat versus

maybe there lower profitability, say balances of along came at lines. didn't were time to off collected know something on how much of have or if the this those either. to wondering, as basically money don't that or I not make I'm bunch perhaps were So a or that profit,

collections so by Just dynamics of there. the that's $XX but say revenues because, could your me million, a some this gross the explain for right beat seeing you have few instance lower. let's you're in is okay. were I like, And multiples just then Maybe line, more, seems the

Ashish Masih

impact wins the line also could and I impacts revenue now second So think that us. is first and line this There's CECL. under

Jon, impacting to of revenue that's unique point can't XX.X. approach do But as recognition happening. your XX.X percent CECL see a in? pretty I think impact it. a chime there's of that to I So anything on collections from that's we you else wanted get

Jonathan Clark

right? right? can and else it our or have cause There Ashish of you change by period-on-period, multiples, everybody what perhaps made part on I are moving this But from But And see, recognition And improve some continue parts number we're, better a think to our expect as revenue see you Q-on-Q ERC, of to of I the you and if CECL CECL. caused We know, what to, booking was certainly multiples. did rate. growth. we're we to as isn't maintain comparable remember alluding part or

read much wouldn't I So into too it.

important takeaways that of is IRs caused in gone our And bit you have is or the a by up, noise think CECL the there I see multiples. little can it

Dominick Gabriele

you out higher, captured probably then the much modeling And itself, was question. is says the if, it rest something there of in if expense, that expense I'm guessing million like so interest million if was expenses looks back XX interest maybe it is and like operating But you $X each? why in then which XX $X is

Jonathan Clark

Yes.

funding sorry. many the I'm talking how refer So implementation, global into suffer? the global Are you

Dominick Gabriele

Yes.

I guess, done at given to and normal about keep levels, down XX,XX expenses maybe going big that more that going obviously because trying So forward. accomplished these a the was you've like forward, back accomplishment, all

lines So a the core basis? guys of second thinking you more along interest quarter's expense on

Jonathan Clark

again, you be, could range. in the expense is be generically, to funding extent to right, would like bit costs that And and economically lower you're if the period, structure we that I with you'd the you some right you'd But want ignore the a low may be with I just doing see coupon thing I caution reason related to debt interest refinance to because which global to some XXs we we'd debt, right. that you is it just say coupon say, generically that of do. the we little high extent In that. to replace right believe conclude back that were I elevated

Dominick Gabriele

color there. collections, want the I then sure know appreciate just we're And to which really going. I make direction I on all legal the

will I $XX the pull a seen. wrong. $XX million second any that, you just on collection lower And hit and on forward did was would quarter have believe be to appreciate $XX But common a push you kind about it. could quarter kind than million around otherwise for was of the more that. collections mind going some so there I across maybe and few So from touching the you of was there maybe I I'm the are go here wouldn't portion perhaps if remember like reason particular Thanks and or is bigger just quarters, of it are so you're suggesting million or third legal where much. into you basis next

Ashish Masih

did as whether whether some other not collections things be shows for some or that What I in it there related expense, QX would going other legal that diminishing, that and costs other saw it's seeing in expense million roughly MCM. right forward. what and mailing roughly be to largely collections whether start there is might all we You're benefits highlight want we expense expenses, are are expect up we to $XX operating

most be other be illegal could probably it So too. in but parts that's

Operator

question Next of from Robert Dodd James. Raymond is

line Your is open.

Robert Dodd

impacted Cobat there. about not has not in you really or COVID UK. probably prepared the UK in more the the Question you surprising, right remarks, I litigation obviously said, market as think said mean, your I European

So obviously, questions gone are the two of November. shutdown mean, that I another UK rest down for into has the

we're around us need are basis? that cetera? tied out? the impact now where going on And of that there year. that, front what deal, the then on adjustment any does on the plans UK, means the end weeks an nine an front? Brexit ideas to obviously, how the that have you your be no from about either that, idea expense give If would So also in that that? And how to of anything And you play make any out et could operational or Can

Ashish Masih

very And do I'll then So response. well I He's UK. will as Craig a respond. let on from the short line

a of have SME shutdowns collections or legal from of or an court largely XXX% we're are also by view working UK level. and any legal countries mentioned impacted Spain, secure, portfolios not we have you is which kind full where that especially and processes in even more Europe at point primarily, So but where we active, legal true, other

So places. you it couple does there. that of other get Craig your impacted on in going to had in jump I'm But let questions

Craig Buick

the at and we've the our period, time. years meet upon customers' limited our capacity over UK There's into on thanks, in lot to weekend, impact here this everything maintain We've at in going not quickly Ashish the particular moving to this point that to through is operational us time in that over notice. lot a particular this Certainly lockdown in move operationally to managed very our at which time. in technology and us another hi, Robert. us point came point first to clients process invested that is continue allowed Yes, us allowed this with and that the lockdown happened timely when I needs

second the time, open the The that A are to first and we lockdown. services first impacting were a lot be to the that is lot different our of will still on time we There's can slightly public closed lockdown not operational remaining what courts lot they We down of a do capabilities. around. are, believe still this it's continue moving.

pull today, still paying think from I can this. continue here with litigation on we're capabilities, to attention did we operational first lockdown So in. activity back kicked I the our sit But we close as

those by and responsibilities We doing litigation to seriously we that to are measured very our activities, those right customers have take a reinitiated ensure way. the albeit we manner, our on very things because controlled and activities the

the year. Europe, should entities haven't the the set we to Brexit going COVID end operationally, In the excite have That with it now, operating us remain up we that's way but we working terms of impact but got, the Europe in left into as on place just well. within of out to at terms on take last separate commentary, deal, not have horizon Brexit drifted there It's jurisdictions. we it's each of the background the does within is of

our still as a So are even we no we to activities deal, in today able our jurisdictions. will in be trade various undertake

in We've today. between perspective. time operational we sharing. here work on monitor the So to around around been impact a spend operational Robert to there's the those the the we of one it's an it give implications, impact on little it putting of But we'll way We lot that understand a of going And discussions. bit impact gray year. us going probably monitor end that continue having particularly to on GDPR perfectly material at of to of a from main make looking lot business We a this, on sure a our that that's and what's the we help. government impacts think do time and capabilities. helps into continue is with data don't But shouldn't again, lot of

Operator

Hughes question SunTrust. We from Mark from a have

Your line is open.

Mark Hughes

to just this you'd Jonathan evolve? this, talk I or Any but touched it, the a line on about funding think, got to how of roadmap, see care as sight cost specifics, reduce you to costs. share

Jonathan Clark

Sure.

relative bonds. as points, two think you structure. continue to you'll big a present you're on as save for up of our global basis, the that's we if within about and refinanced. are better hundred pieces this near-term you currently execution to you of to move those if as couple expect then we reconfigured stack, which better a that get couple And structure. numbers, But a that the with opportunities see and think at right expensive will we do I debt, real those you being that given our see I relatively, dollars. some will, you come year, adds basis And do to quick If telethons the think, looked for be just up if one themselves I been the step fit, a develop And money will? will I continue debt forward, pops have outstanding math And I talking appropriate, can when can billion round to

Mark Hughes

makes palatable? when obviously some of there more economic, terms protection in does And that an is that it call become

Jonathan Clark

we down They're the the pay steep pretty it's day. willing if that particular to end something today. But comes some be doesn't that at wouldn't one right, both that premium all it Well, premiums. mean of see we in do that at is pretty if to compelling it callable to they're the, economics

Operator

Gabriele from Oppenheimer. last question of your And Dominick is

Your is open. line

Dominick Gabriele

maybe that think you to you ask point? people we in And activity I stimulus you government? to and don't and guys. really know, it. you back here. a appreciate the, purchases want bigger Are in any through were the the that remember and of weighing have one in Post from you sell your Do work particular, third then the question, inbound those, I center quarter-over-quarter have improved that so as up? also, at since Thanks quarter? I I change really Perhaps they think you just opening all seen those U.S. slowdown much, Do the saying center. second reluctant infusions way the actually

Ashish Masih

I real and one jump the for because but take I seen if Okay, impact, not we I'm is think let question Dominick, of on I'll second, kind have your observable U.S. then first sure any in, Ryan

before some selling U.S. forward banks market wanted On have the to to but this all the so selling, for stop continue COVID I through heavily to sales, continue been just clarify, are who flow. It pandemic sell into sell.

volumes no change of is selling So therefore is have in patterns. there's and charge-offs reduced. changing delinquencies, What now the

has slowed more down and them. deals things. think to So the say in delinquency or banks, programs seen that's of volumes forbearance activity And But although anybody holding pause, that other down. UK and the the what's whether don't level have particularly impacting. in take it's the a I participate back, would of care UK consumers, of clearly the was and I we've been Europe, are coming

bit programs a the forbearance be bit thing U.S., the land because supply longer will from and might eventually, So U.S. maybe UK a still the that it come, in

the U.S. latter very portfolios. sell come has market, as said Probably see the banks no continued from As early flows, in been the from down. in pause U.S. rate they will delinquencies year in the year, all UK. what and we through for their expect the of less in I likely as proportions I continue small more to foreign rest of has part and the well. dependent again, may are to on change, so of back will their much in presentations, that in But are the have we Europe, part the charge-offs volumes price could of which there been bank's slow 'XX year, a volumes be expect And early is down of the

you. On volumes, jump call the impacts let there's share inbound going in, to been observable if that Ryan I'm with any we're to able

Ryan Bell

you material our centers Thanks observe key website impacts, our see behavior. ups both from make believe our inbound our change of QX of we see change into any But would, and that into call seasonality. metrics digital and QX, any Dominick. so or I consumer changes in always would and across downs think No side, no observable that we in

So no at observations all. there

Operator

will at And closing are back questions there the Mr. call turn over Masih I his for this to no further time. And remarks.

Ashish Masih

forward Thank you. providing to Thanks That to in quarter the today. Thank and XXXX fourth concludes call time for for you. join February. look taking results we the our us,

Operator

conference call. concludes this gentlemen, Thank Ladies you and today's for participating.

You may disconnect. now

Encore Capital (ECPG) 2 Nov 202020 Q3 Earnings call transcript