Encore Capital Group, Inc. (NASDAQ:ECPG) Q4 2015 Earnings Conference Call - Final Transcript

Feb 24, 2016 • 05:00 pm ET


Encore Capital Group, Inc. (NASDAQ:ECPG) Q4 2015 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen, and welcome to the Encore Capital Group Fourth Quarter and Full Year 2015 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 is being recorded.

I would like to introduce your host for today's conference, Mr. Bruce Thomas, Vice President of Investor Relations. Sir, please go ahead.

Bruce Thomas

Thank you, operator. Good afternoon and welcome to Encore Capital Group's fourth quarter 2015 earnings call. With me on the call today are Ken Vecchione, our President and Chief Executive Officer, Jonathan Clark, Executive Vice President and Chief Financial Officer, Ashish Masih, Executive Vice President, US Debt, Purchasing and Operations, and Paul Grinberg, Group Executive, International and Corporate Development. Ken and Jon will make prepared remarks today and then we will be happy to take your questions.

Before we begin, we've a few housekeeping items. Unless otherwise noted, all comparisons made on this conference call will be between the fourth quarter of 2015 and the fourth quarter of 2014. Today's discussion will include forward-looking statements subject to risks and uncertainties. Actual results could differ materially from these forward-looking statements. Please refer to our SEC filings for a detailed discussion of potential risks and uncertainties.

During this call, we will use rounding and abbreviations for the sake of brevity. We will also be discussing non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release which was filed on Form 10-K earlier today.

As a reminder, this conference call will also be made available for replay on the Investors section of our website where we will also post our prepared remarks following the conclusion of this call.

With that, let me turn the call over to Ken Vecchione, our President and Chief Executive Officer.

Kenneth A. Vecchione

Thank you, Bruce. And good afternoon, everyone. Encore has dramatically changed over the past three years. Since 2012, revenues and profits have grown substantially and we've increased annual capital deployment from roughly $600 million domestically, to over $1.2 billion globally in 2015. To counter higher prices in the US market, we implemented innovative consumer-centric programs aimed at increasing liquidations. These programs were initiated in the beginning of 2014 and have become increasingly successful, offsetting the rising price trends of the past three years.

From a strategic perspective, we took the leadership role in consolidating our marketplace and we've expanded our business globally to reduce the risk of being overly dependent on a single geography. We're now an international company able to capitalize on higher returns in Europe, Latin America and Australia.

For those of you who compare our US business now with how we performed in prior periods, we would be the first to admit that we're not currently generating returns in line with our peak years from 2010 to 2012. That world changed when a few large issuers left the US