Encore Capital Group, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total revenues of $179,415,000 compared to $278,914,000 a year ago. Loss from operations was $21,182,000 compared to income from operations of $30,729,000 a year ago. Loss before income taxes was $65,714,000 compared to $18,011,000 a year ago. Net loss attributable to the company was $1,524,000 or $0.06 per basic and diluted share compared to $10,959,000 or $0.43 per basic and diluted share a year ago. The decrease in revenue primarily driven by a $94 million gross consolidated portfolio allowance charge, of which $43 million represents Encore's share after adjusting for noncontrolling interest, or $37 million after tax. Adjusted EBITDA decreased 7% to $245 million, compared to $264 million in the same period a year ago, reflecting the adjustment to deferred court costs. Adjusted income from continuing operations attributable to Encore was $3.6 million, compared to $32.2 million in the third quarter of 2015, with the decline mainly attributed to the portfolio allowance charges for certain European pool groups. Adjusted income from continuing operations attributable to Encore per share was $0.14, compared to $1.25 in the same period of the prior year.

For the nine months period, the company reported net income of $5,494,000 compared to $45,788,000 a year ago. Net cash provided by operating activities was $85,268,000 compared to $63,381,000 a year ago. Purchases of property and equipment were $16,548,000 compared to $15,754,000 a year ago.

For the year 2016, the company expects effective tax rate will also be much higher due to the same factors, tax expense for the fourth quarter is expected to be approximately $10 million higher than normalized rates.