News Column

Primus Guaranty, Ltd. Reports Second Quarter 2014 Results

July 30, 2014

HAMILTON, Bermuda--(BUSINESS WIRE)-- Primus Guaranty, Ltd. (“the Company”) (OTC PINK:PRSG) today announced its financial results for the second quarter ended June 30, 2014.

  • GAAP net income available to common shares for the second quarter 2014 was $2.3 million, or $0.11 per diluted share, compared with GAAP net income available to common shares of $16.4 million, or $0.65 per diluted share, for the second quarter 2013.
  • GAAP book value per common share was $1.82 at June 30, 2014, compared with GAAP book value per common share of $8.89 at December 31, 2013. The June 30, 2014 GAAP book value per common share reflects the $7.25 distribution per common share that was paid to shareholders in the second quarter 2014.
  • At June 30, 2014, the notional principal of Primus Financial Products, LLC’s consolidated credit swap portfolio totaled $300 million, compared with $3.3 billion at December 31, 2013.

    Additional Information

    A copy of this press release and a letter dated July 30, 2014 to the shareholders from Richard Claiden, Chief Executive Officer, are available in the Investor Relations section of the Company’s Web site at www.primusguaranty.com.

    About Primus Guaranty

    Primus Guaranty, Ltd. is a Bermuda company with offices in New York. Through its subsidiary, Primus Financial Products, LLC, the Company provides protection against the risk of default on primarily investment grade corporate reference entities. Its common shares trade on the OTC Pink Tier of the OTC market. Investors can find market information for the Company on www.otcmarkets.com.

    Primus Guaranty, Ltd.

    Condensed Consolidated Statements of Financial Condition (Unaudited)

    (in thousands except share amounts)

       
    June 30,December 31,
    20142013
     
    Assets
    Cash and cash equivalents $ 20,500 $ 27,512
    Investments, at fair value 24,207 66,230
    Restricted cash - 106,580
    Accrued interest and premiums 311 1,270
    Unrealized gain on credit swaps, at fair value 162 1,981
    Other assets (includes $524 and $822 at fair value as of
    June 30, 2014 and December 31, 2013, respectively)   1,331   1,366
    Total assets $ 46,511 $ 204,939
     
    Liabilities and Equity
    Liabilities
    Accounts payable and accrued expenses $ 6,051 $ 4,447
    Unrealized loss on credit swaps, at fair value - 5,453
    Other liabilities (includes $624 and $979 at fair value as of
    June 30, 2014 and December 31, 2013, respectively)   878   1,281
    Total liabilities $ 6,929 $ 11,181
     
    Equity
    Common shares, $0.08 par value, 62,500,000 shares
    authorized, 21,786,187 and 21,786,406 shares issued and
    outstanding at June 30, 2014 and December 31, 2013, respectively 1,743 1,743
    Additional paid-in capital 37,537 116,629
    Accumulated other comprehensive income 137 538
    Retained earnings   165   74,848
    Total equity $ 39,582 $ 193,758
    Total liabilities and equity $ 46,511 $ 204,939

    Primus Guaranty, Ltd.

    Condensed Consolidated Statements of Operations (Unaudited)

    (in thousands except per share amounts)

       
    Three Months Ended

    June 30,

    Six Months Ended

    June 30,

    2014   20132014   2013
     
    Revenues
    Net credit swap revenue $ 2,924 $ 16,524 $ 5,466 $ 36,832
    Interest income 482 1,176 1,175 2,860
    Other income   122   621   317   1,402
    Total revenues   3,528   18,321   6,958   41,094
     
    Expenses
    Compensation and employee benefits 583 740 1,476 2,338
    Professional and legal fees 217 330 434 649
    Interest expense - - - 692
    Other   425   444   868   995
    Total expenses   1,225   1,514   2,778   4,674
    Income from continuing operations before provision
    for income taxes 2,303 16,807 4,180 36,420
    Provision for income taxes   (11)   -   12   19
    Income from continuing operations, net of tax 2,314 16,807 4,168 36,401
    Income from discontinued operations, net of tax   2   154   15   238
    Net income 2,316 16,961 4,183 36,639
    Less:
    Distributions on preferred securities of subsidiary   -   578   -   1,350
    Net income available to common shares $ 2,316 $ 16,383 $ 4,183 $ 35,289
     
    Income per common share:
    Basic:
    Income from continuing operations $ 0.11 $ 0.65 $ 0.19 $ 1.37
    Income from discontinued operations $ - $ - $ - $ 0.01
    Net income available to common shares $ 0.11 $ 0.65 $ 0.19 $ 1.38
    Diluted:
    Income from continuing operations $ 0.11 $ 0.65 $ 0.19 $ 1.37
    Income from discontinued operations $ - $ - $ - $ 0.01
    Net income available to common shares $ 0.11 $ 0.65 $ 0.19 $ 1.38
     
    Weighted average common shares outstanding:
    Basic 21,786 25,125 21,786 25,625
    Diluted 21,786 25,126 21,786 25,634





    Investor Relations

    Primus Guaranty, Ltd.

    212-697-1992

    investorrelations@primusguaranty.com

    Source: Primus Guaranty, Ltd.


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