Encore Capital Group, Inc. Profile

Encore Capital Group, Inc. (Encore) is a systems-driven purchaser and manager of charged-off consumer receivable portfolios and provider of bankruptcy services to the finance industry. Encore acquires portfolios at deep discounts from their face values using its valuation process that is based on the consumer attributes of the underlying accounts. The receivable portfolios Encore purchases consist primarily of unsecured, charged-off domestic consumer credit card receivables purchased from national financial institutions, major retail credit corporations, and resellers of such portfolios. Acquisitions of receivable portfolios are financed by operations and by borrowings from third parties. On August 30, 2005, Encore acquired substantially all of the assets and assumed certain liabilities of Ascension Capital Group, Ltd. (Ascension Capital). For the three months ended 31 March 2006, Encore Capital Group Inc's revenues rose 20% to $60.5M. Net income fell 37% to $4.7M. Revenues reflect income accreted on portfolios acquired in connection with Jefferson Capital acquisition and other recent purchases. Net income was offset by an increase in salaries and employee benefits and general and administrative expenses and the inclusion of a $1.4M stock-based compensation charge.