1084961--3/15/2006--ENCORE_CAPITAL_GROUP

related topics

{capital, credit, financial}

{loss, insurance, financial}

{interest, director, officer}

{acquisition, growth, future}

{debt, indebtedness, cash}

{personnel, key, retain}

{product, market, service}

{financial, litigation, operation}

{competitive, industry, competition}

{tax, income, asset}

{regulation, change, law}

{system, service, information}

{property, intellectual, protect}

{stock, price, operating}

{loan, real, estate}

Our quarterly operating results may fluctuate and cause the prices of our common stock and convertible notes to decrease. We may not be able to purchase receivables at sufficiently favorable prices or terms, or at all. We may not be successful in acquiring and collecting on portfolios consisting of new types of receivables. We may not be able to collect sufficient amounts on our receivable portfolios to recover our costs and fund our operations. We may purchase portfolios that contain unprofitable accounts The statistical model we use to project remaining cash flows from our receivable portfolios may prove to be inaccurate, which could result in reduced revenues or the recording of an impairment charge if we do not achieve the collections forecasted by our model. Our industry is highly competitive, and we may be unable to continue to compete successfully with businesses that may have greater resources than we have. Our failure to purchase sufficient quantities of receivable portfolios may necessitate workforce reductions, which may harm our business. A significant portion of our portfolio purchases during any period may be concentrated with a small number of sellers. We may be unable to meet our future liquidity requirements. We may not be able to continue to satisfy the restrictive covenants in our debt agreements. We use estimates in our revenue recognition and our earnings will be reduced if actual results are less than estimated. We may incur impairment charges based on the provisions of American Institute of Certified Public Accountants Statement of Position 03-03. Government regulation may limit our ability to recover and enforce the collection of receivables. We are subject to ongoing risks of litigation, including individual and class actions under consumer credit, collections, employment, securities and other laws. We may make acquisitions that prove unsuccessful or strain or divert our resources. We may not be able to hire and retain enough sufficiently trained employees to support our operations, and/or we may experience high rates of personnel turnover. We may not be able to manage our growth effectively. The failure of our technology and telecommunications systems could have an adverse effect on our operations. We may not be able to successfully anticipate, invest in or adopt technological advances within our industry. We may not be able to adequately protect the intellectual property rights upon which we rely. Our results of operations may be materially adversely affected if bankruptcy filings increase. We have engaged in transactions with members of our Board of Directors, significant stockholders, and entities affiliated with them; future transactions with related parties could pose conflicts of interest.

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1084961--3/15/2006--ENCORE_CAPITAL_GROUP_INC