News Column

JGWPT Reports Second Quarter TRB of $288 Million; Adjusted Net Income Increases to $17 Million

August 14, 2014

RADNOR, Pa.--(BUSINESS WIRE)-- JGWPT Holdings Inc. (“JGWPT” or the “Company”) (NYSE:JGW), a leading purchaser of structured settlement payments, annuity payments, lottery payments and other receivables through its J.G. Wentworth and Peachtree brands, today reports financial results for the second quarter of 2014. “We look forward to capitalizing on the strong results for the second quarter by leveraging our capabilities to strengthen our core business for future growth and diversification,” said Stewart A. Stockdale, Chief Executive Officer, JGWPT Holdings Inc.

The following are highlights from the second quarter results:

Second Quarter Highlights

  • Total Receivables Balance, or TRB, purchases were $287.7 million, as compared to $294.8 million in the second quarter of 2013 and $260.6 million in the first quarter of 2014.
  • Adjusted Net Income*, or ANI, increased to $17.2 million, as compared to $10.5 million in the second quarter of 2013 and $10.1 million in the first quarter of 2014, driven primarily by lower cost of funds.
  • Adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the loss on swap termination*, was $58.0 million in the second quarter, as compared to $52.3 million in the second quarter of 2013 and $51.8 million in the first quarter of 2014. The second quarter 2014 unrealized gain includes approximately $2 million related to the purchase of an asset portfolio.
  • Revenues were $123.5 million, an increase of 85.2% from revenues of $66.7 million in the second quarter of 2013, due primarily to the impact of decreasing cost of funds on unrealized gains on VIE and other finance receivables, long-term debt and derivatives.
  • Net income increased to $21.7 million, as compared to a loss of $21.6 million in the second quarter of 2013, due primarily to decreasing cost of funds.

    John Schwab, JGWPT’s Chief Financial Officer, said, “The second quarter results reflect the sequential improvement in our TRB as well as adjusted net income and our continued focus on cost control. In addition, subsequent to quarter-end, we successfully completed our 2014-2 securitization which further strengthens our balance sheet.”

    *Results for the three and six month periods ended June 30, 2014 and 2013, as well as our reconciliation of non-GAAP measures, and historic financial information from 2013 to the present, are included in the accompanying financial information.

    About JGWPT Holdings Inc.

    JGWPT focuses on key sectors, including structured settlement payment purchasing, annuity payment purchasing, lottery payment purchasing and pre-settlement funding. Through our two market-leading and highly recognizable brands, J.G. Wentworth and Peachtree Financial Solutions, we purchase future structured settlement payment streams from our customers. For more information about JGWPT, visit www.jgwpt.com or use the contact information provided below.

    Conference Call and Webcast

    Management will host a webcast to discuss the second quarter 2014 financial results today, August 14, 2014, at 10:00 AM Eastern time. The webcast will include remarks from JGWPT’s Chief Executive Officer, Stewart Stockdale, and Chief Financial Officer, John Schwab. A webcast of the conference call will be available live on the Investor Relations section of the Company’s website:

    JGWPT Holdings Inc. Second Quarter 2014 Financial Results Webcast

    Interested parties unable to access the conference call via the webcast may dial (877) 201-0168 and reference conference ID 79341678. A playback of the call is available until August 21, 2014 at (855) 859-2056 with conference ID 79341678.

    Forward-Looking Statements

    Certain statements in this press release constitute “forward-looking statements.” All statements, other than statements of historical fact, are forward-looking statements. You can identify such statements because they contain words such as ‘‘plans,’’ ‘‘expects,’’ or ‘‘does expect,’’ ‘‘budget,’’ ‘‘forecasts,’’ ‘‘anticipates,’’ or ‘‘does not anticipate,’’ ‘‘believes,’’ ‘‘intends,’’ and similar expressions or statements that certain actions, events or results ‘‘may,’’ ‘‘could,’’ ‘‘would,’’ ‘‘might,’’ or ‘‘will,’’ be taken, occur or be achieved. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

    A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause our actual results, performance and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. Consideration should also be given to the areas of risk set forth under the heading “Risk Factors” in our filings with the Securities and Exchange Commission, and as set forth more fully under “Part 1, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, these risks and uncertainties include, among other things: our ability to continue to purchase structured settlement payments and other assets; our ability to complete future securitizations or other financings on beneficial terms; availability of or increases in the cost of our financing sources relative to our purchase discount rate; our dependence on the opinions of certain rating agencies; our dependence on outside parties to conduct our transactions including the court system, insurance companies, outside counsel, delivery services and notaries; our dependence on the effectiveness of our direct response marketing; the compression of the yield spread between the price we pay for and the price at which we sell assets; changes in tax or accounting policies or changes in interpretation of those policies as applicable to our business; the lack of an established market for the subordinated interest in the receivables that we retain after a securitization is executed; our exposure to underwriting risk; our ability to remain in compliance with the terms of our substantial indebtedness; changes in existing state laws governing the transfer of structured settlement payments or the interpretation thereof; the insolvency or downgrade of a material number of structured settlement issuers; changes in current tax law relating to the tax treatment of structured settlements; changes to state or federal, licensing and regulatory regimes; the impact of the March 2014Consumer Financial Protection Bureau inquiry and any findings or regulations it issues as related to us, our industries, or products or in general; adverse judicial developments; potential litigation and regulatory proceedings; unfavorable press reports about our business model; our access to personally identifiable confidential information of current and prospective customers and the improper use or failure to protect that information; the public disclosure of the identities of structured settlement holders; our business model being susceptible to litigation; our dependence on a small number of key personnel; our ability to successfully enter new lines of business and broaden the scope of our business; changes in our expectations regarding the likelihood, timing or terms of any potential acquisitions described herein; our computer systems being subject to security and privacy breaches; and infringement of our trademarks or service marks.

    Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to publicly revise any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

     

           

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Condensed Consolidated Balance Sheets

    (In thousands, except for shares and per share data)

     

    June 30,

    2014

       

    December 31,

    2013

    (Unaudited)

    ASSETS

    Cash and cash equivalents $ 35,412 $ 39,061
    Restricted cash and investments 112,499 109,338
    VIE finance receivables, at fair market value 4,208,144 3,818,704
    Other finance receivables, at fair market value 79,581 51,945
    VIE finance receivables, net of allowances for losses of $7,143 and $6,443, respectively 116,147 117,826
    Other finance receivables, net of allowances for losses of $1,841 and $1,899, respectively 18,892 15,166
    Notes receivable, at fair market value - 5,610
    Other receivables, net of allowances for losses of $252 and $243, respectively 12,748 13,529
    Fixed assets, net of accumulated depreciation of $5,108 and $4,544, respectively 3,581 3,112
    Intangible assets, net of accumulated amortization of $19,166 and $17,781, respectively 46,493 47,878
    Goodwill 84,993 84,993
    Marketable securities 115,981 121,954
    Deferred tax assets, net - 1,830
    Other assets       37,312         41,151  
    Total Assets     $4,871,783       $4,472,097  
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Accounts payable $ 9,127 $ 3,903
    Accrued expenses 14,131 21,181
    Accrued interest 16,483 14,485
    VIE derivative liabilities, at fair market value 74,542 70,296
    VIE borrowings under revolving credit facilities and other similar borrowings 73,767 41,274
    VIE long-term debt 184,676 150,802
    VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,698,500 3,431,283
    Term loan payable 435,683 434,184
    Other liabilities 7,551 7,646
    Deferred tax liabilities, net 13,625 1,707
    Installment obligations payable       115,981         121,954  
    Total Liabilities     $4,644,066       $4,298,715  
    Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized;
    Issued and outstanding at June 30, 2014 - 12,885,225 and 12,793,276;
    December 31, 2013 - 11,220,358 and 11,216,429 - -
    Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized;
    Issued and outstanding at June 30, 2014 - 12,266,967; December 31, 2013 - 14,001,583 and 13,984,065 - -
    Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized;
    Issued and outstanding at June 30, 2014 and December 31, 2013 - 0 - -
    Additional paid-in-capital 81,796 70,236
    Retained earnings (accumulated deficit) 9,713 (5,577 )
    Accumulated other comprehensive income       -         612  
    $ 91,509 $ 65,271
    Less: Treasury stock at cost; purchased at June 30, 2014 - 91,949; December 31, 2013 - 3,929       (139 )       -  
    Total stockholders' equity, JGWPT Holdings Inc. 91,370 65,271
    Non-controlling interests       136,347         108,111  
    Total Stockholders' Equity     $227,717       $173,382  
    Total Liabilities and Stockholders' Equity     $4,871,783       $4,472,097  
     

     

                     

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Condensed Consolidated Statements of Operations - Unaudited

    (In thousands, except for shares and per share data)

     

     

    Three Months Ended

    June 30,

    Six Months Ended

    June 30,

    2014     20132014     2013
    REVENUES
    Interest income $ 46,638 $ 37,943 $ 94,460 $ 80,582
    Unrealized gains on VIE and other finance receivables,
    long-term debt, and derivatives 70,317 30,245 157,628 163,843
    Loss on swap terminations, net - - (574 ) (174 )
    Servicing, broker, and other fees 1,030 1,423 2,172 2,536
    Realized and unrealized gains (losses) on marketable securities, net 3,467 (1,080 ) 4,356 4,997
    Realized gain (loss) on notes receivable, at fair value 2,098 (1,862 ) 2,098 (1,862 )
    Other       (62 )       (8 )   (62 )       (53 )
    Total Revenues     $123,488       $66,661   $260,078       $249,869  
     
    EXPENSES
    Advertising $ 16,432 $ 17,349 $ 33,925 $ 33,803
    Interest expense 50,700 43,346 101,930 85,970
    Compensation and benefits 10,483 11,551 19,769 23,396
    General and administrative 4,613 6,226 9,083 10,361
    Professional and consulting 5,518 4,975 8,962 9,098
    Debt issuance 19 44 3,020 3,072
    Securitization debt maintenance 1,564 1,544 3,121 2,984
    Provision for losses on finance receivables 1,127 1,587 2,218 2,683
    Depreciation and amortization 1,121 1,386 2,202 2,763
    Installment obligations expense (income), net       4,122         (231 )   5,614         6,519  
    Total Expenses     $95,699       $87,777   $189,844       $180,649  
     
    Income (loss) before income taxes$27,789$(21,116)$70,234$69,220
    Provision for income taxes       6,081         524     13,993         1,155  
    Net Income (Loss) 21,708 $ (21,640 ) 56,241 $ 68,065  
    Less: Net income attributable to non-controlling interests       15,440     40,951  
    Net Income Attributable to JGWPT Holdings Inc.     $6,268   $15,290  
     
               
         
    Weighted average shares of Class A common stock outstanding:
    Basic 12,559,957 12,104,172
    Diluted 12,562,042 12,105,548
     
    Net income per share attributable to stockholders of Class A common stock of JGWPT Holdings Inc.
    Basic $ 0.50$ 1.26
      Diluted $ 0.50     $ 1.26
     


    ANI Bridge - Unaudited

    J.G. Wentworth, LLC and Subsidiaries

    Reconciliation of Net Income to Adjusted Net Income

    We use Adjusted Net Income (a non-GAAP financial measure) as a measure of our results from operations, which we define as our net income under U.S. GAAP before non-cash compensation expenses, certain other expenses, provision for or benefit from income taxes and the amounts related to the consolidation of the securitization and permanent financing trusts we use to finance our business. We use Adjusted Net Income to measure our overall performance because we believe it represents the best measure of our operating performance, as the operations of the variable interest entities do not impact business performance. In addition, the add-backs described above are consistent with adjustments permitted under our Term Loan agreement. You should not consider Adjusted Net Income in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because not all companies use identical calculations, our presentation of Adjusted Net Income may not be comparable to other similarly titled measures of other companies.

    A reconciliation of Net Income to Adjusted Net Income for the three and six months ended June 30, 2014 and 2013 is provided below. Certain prior year numbers have been reclassified to conform with current year presentation.

     

                   

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Reconciliation of Net Income (Loss) to Adjusted Net Income - Unaudited

    (In thousands)

     

    Three Months Ended

    June 30,

    Six Months Ended

    June 30,

    2014     2013     2014     2013
                             
    Net Income (Loss)     $21,708       $(21,640)     $56,241       $68,065  
     
    Adjustments to reflect deconsolidation of securitizations:
    Elimination of unrealized gain/loss on finance receivables, long-term debt and
    derivatives from post securitization due to changes in interest rates (12,366 ) 22,036 (47,257 ) (46,661 )
    Elimination of interest income from securitized finance receivables
    permanent financing trusts (42,041 ) (32,843 ) (85,344 ) (69,750 )
    Interest income on retained interests in finance receivables 5,001 4,570 9,970 9,125
    Servicing income on securitized finance receivables 1,242 1,416 2,500 2,857
    Elimination of interest expense on long-term debt related to securitization and
    permanent financing trusts 36,213 27,598 73,498 57,955
    Professional fees relating to securitizations 1,564 1,575 3,121 3,024
     
    Other adjustments:
    Share based compensation 798 441 1,300 1,070
    Income tax provision 6,081 524 13,993 1,155
    Severance, M & A, and consulting expenses 376 4,985 675 5,349
    Other non-recurring items       (1,401 )       1,862         (1,401 )       1,862  
    Adjusted Net Income     $17,175       $10,524       $27,296       $34,051  
     
                             
    Other Data:
    Securitized Product Total Receivables Balance (TRB) Purchases (1) $ 252,544 $ 246,895 $ 476,051 $ 477,600
    Life Contingent Purchases 28,185 42,878 58,012 77,100
    Presettlement Fundings       6,977         5,073         14,224         10,517  
    Total TRB Purchases     $287,706       $294,846       $548,287       $565,217  
    Adjusted Net Income $ 17,175 $ 10,524 $ 27,296 $ 34,051
    Adjusted Net Income TRB Margin (2)       5.97 %       3.57 %       4.98 %       6.02 %
     
                 
     
    Company retained interests in finance receivables at fair market value $ 294,637 $ 234,918
                 
       
    (1) Securitized product TRB purchases includes purchases during the period of assets that are expected to be securitized (guaranteed structured settlements, annuities, and lottery payment streams).
    (2) Adjusted Net Income TRB Margin is Adjusted Net Income divided by Total TRB Purchases during the period.
     

     

                       

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Reconciliation of Net Income to Adjusted Net Income - Unaudited

    (In thousands)

     

     

     

     

     

     

     

     

     

    Q2 2014

    GAAP

    Results

     

    Adjustments

    to reflect

    deconsolidation

    of securitizations

     

    Interest

    Income on

    Retained

    Interests

     

    Share

    Based

    Compensation

     

    Income

    Tax

     

    Severance

    M&A

    and

    Consulting

     

    Reclassification

    Associated with

    Installment

    Obligation Payable

     

    Other

    Nonrecurring

    Items

     

    Q2 2014

    Adjusted

    Net Income

     
    REVENUES
    Interest income $46,638 $ (42,041 ) $ 5,001 $ (655 ) $ 6 $8,949
    Unrealized gains on VIE and other finance
    receivables, long-term debt and derivatives 70,317 (12,366 ) 57,951
    Loss on swap terminations, net --
    Servicing, broker, and other fees 1,030 1,242 2,272
    Realized and unrealized gains on marketable
    securities, net 3,467 (3,467 ) -
    Realized gain on notes receivable, at fair value 2,098 (2,098 ) -
    Other       (62)                                 (62)
    Total Revenues     $123,488     $(53,165)   $5,001   $-     $-     $-     $(4,122)   $(2,092)   $69,110  
     
    EXPENSES
    Advertising $16,432$16,432
    Interest expense 50,700 (36,213 ) 14,487
    Compensation and benefits 10,483 (798 ) (86 ) 9,599
    General and administrative 4,613 86 4,699
    Professional and consulting 5,518 (376 ) (691 ) 4,451
    Debt issuance 1919
    Securitization debt maintenance 1,564 (1,564 ) -
    Provision for losses on finance receivables 1,1271,127
    Depreciation and amortization 1,1211,121
    Installment obligations expense, net       4,122                           (4,122 )         -  
    Total Expenses     $95,699     $(37,777)   $-   $(798)   $-     $(376)   $(4,122)   $(691)   $51,935  
     
    Income before taxes $27,789 $ (15,388 ) $ 5,001 $ 798 $ - $ 376 $ - $ (1,401 ) $17,175
    Provision for income taxes       6,081                   (6,081 )                 -  
     
    Net Income     $21,708     $(15,388)   $5,001   $798     $6,081     $376     $-     $(1,401)   $17,175  
     

     

                     

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Reconciliation of Net Income (Loss) to Adjusted Net Income - Unaudited

    (In thousands)

     

     

     

     

     

     

     

     

     

    Q2 2013

    GAAP

    Results

     

    Adjustments

    to reflect

    deconsolidation

    of securitizations

     

    Interest

    Income on

    Retained

    Interests

     

    Share

    Based

    Compensation

     

    Income

    Tax

     

    Severance

    M&A

    and

    Consulting

     

    Reclassification

    Associated with

    Installment

    Obligation Payable

     

    Other

    Nonrecurring

    Items

     

    Q2 2013

    Adjusted

    Net Income

     
    REVENUES
    Interest income $37,943 $ (32,843 ) $ 4,570 $ (849 ) $8,821
    Unrealized gains on VIE and other finance
    receivables, long-term debt and derivatives 30,245 22,036 52,281
    Loss on swap terminations, net --
    Servicing, broker, and other fees 1,423 1,416 2,839
    Realized and unrealized losses on marketable
    securities, net (1,080) 1,080 -
    Realized loss on notes receivable, at fair value (1,862) 1,862 -
    Other     (8)                                 (8)
    Total Revenues   $66,661     $(9,391)   $4,570   $-     $-     $-     $231     $1,862   $63,933  
     
    EXPENSES
    Advertising $17,349$17,349
    Interest expense 43,346 (27,598 ) 15,748
    Compensation and benefits 11,551 (441 ) (2,590 ) 8,520
    General and administrative 6,226 (373 ) 5,853
    Professional and consulting 4,975 (31 ) (2,022 ) 2,922
    Debt issuance 4444
    Securitization debt maintenance 1,544 (1,544 ) -
    Provision for losses on finance receivables 1,5871,587
    Depreciation and amortization 1,3861,386
    Installment obligations expense, net     (231)                         231           -  
    Total Expenses   $87,777     $(29,173)   $-   $(441)   $-     $(4,985)   $231     $-   $53,409  
     
    Income before taxes $(21,116) $ 19,782 $ 4,570 $ 441 $ - $ 4,985 $ - $ 1,862 $10,524
    Provision for income taxes     524                   (524 )                 -  
     
    Net Income   $(21,640)   $19,782     $4,570   $441     $524     $4,985     $-     $1,862   $10,524  
     

     

                     

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Reconciliation of Net Income to Adjusted Net Income - Unaudited

    (In thousands)

     

     

     

     

     

     

     

     

     

    YTD 2014

    GAAP

    Results

     

    Adjustments

    to reflect

    deconsolidation

    of securitizations

     

    Interest

    Income on

    Retained

    Interests

     

    Share

    Based

    Compensation

     

    Income

    Tax

     

    Severance

    M&A

    and

    Consulting

     

    Reclassification

    Associated with

    Installment

    Obligation Payable

     

    Other

    Nonrecurring

    Items

     

    YTD 2014

    Adjusted

    Net Income

     
    REVENUES
    Interest income $94,460 $ (85,344 ) $ 9,970 $ (1,258 ) $ 6 $17,834
    Unrealized gains on VIE and other finance
    receivables, long-term debt and derivatives 157,628 (47,257 ) 110,371
    Loss on swap terminations, net (574)(574)
    Servicing, broker, and other fees 2,172 2,500 4,672
    Realized and unrealized gains on marketable
    securities, net 4,356 (4,356 ) -
    Realized gain on notes receivable, at fair value 2,098 (2,098 )
    Other     (62)                                 (62)
    Total Revenues   $260,078     $(130,101)   $9,970   $-     $-     $-     $(5,614)   $(2,092)   $132,241  
     
    EXPENSES
    Advertising $33,925$33,925
    Interest expense 101,930 (73,498 ) 28,432
    Compensation and benefits 19,769 (1,300 ) (113 ) 18,356
    General and administrative 9,083 86 9,169
    Professional and consulting 8,962 (648 ) (691 ) 7,623
    Debt issuance 3,0203,020
    Securitization debt maintenance 3,121 (3,121 ) -
    Provision for losses on finance receivables 2,2182,218
    Depreciation and amortization 2,2022,202
    Installment obligations expense, net     5,614                           (5,614 )         -  
    Total Expenses   $189,844     $(76,619)   $-   $(1,300)   $-     $(675)   $(5,614)   $(691)   $104,945  
     
    Income before taxes $70,234 $ (53,482 ) $ 9,970 $ 1,300 $ - $ 675 $ - $ (1,401 ) $27,296
    Provision for income taxes     13,993                   (13,993 )                 -  
     
    Net Income   $56,241     $(53,482)   $9,970   $1,300     $13,993     $675     $-     $(1,401)   $27,296  
     

     

                     

    JGWPT Holdings Inc.

    (Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)

    Reconciliation of Net Income to Adjusted Net Income - Unaudited

    (In thousands)

     

     

     

     

     

     

     

     

     

    YTD 2013

    GAAP

    Results

     

    Adjustments

    to reflect

    deconsolidation

    of securitizations

     

    Interest

    Income on

    Retained

    Interests

     

    Share

    Based

    Compensation

     

    Income

    Tax

     

    Severance

    M&A

    and

    Consulting

     

    Reclassification

    Associated with

    Installment

    Obligation Payable

     

    Other

    Nonrecurring

    Items

     

    YTD 2013

    Adjusted

    Net Income

     
    REVENUES
    Interest income $80,582 $ (69,750 ) $ 9,125 $ (1,522 ) $18,435
    Unrealized gains on VIE and other finance
    receivables, long-term debt and derivatives 163,843 (46,661 ) 117,182
    Loss on swap terminations, net (174)(174)
    Servicing, broker, and other fees 2,536 2,857 5,393
    Realized and unrealized gains on marketable
    securities, net 4,997 (4,997 ) -
    Realized loss on notes receivable, at fair value (1,862) 1,862 -
    Other     (53)                                 (53)
    Total Revenues   $249,869     $(113,554)   $9,125   $-     $-     $-     $(6,519)   $1,862   $140,783  
     
    EXPENSES
    Advertising $33,803$33,803
    Interest expense 85,970 (57,955 ) 28,015
    Compensation and benefits 23,396 (1,070 ) (2,692 ) 19,634
    General and administrative 10,361 (610 ) 9,751
    Professional and consulting 9,098 (40 ) (2,047 ) 7,011
    Debt issuance 3,0723,072
    Securitization debt maintenance 2,984 (2,984 ) -
    Provision for losses on finance receivables 2,683 - 2,683
    Depreciation and amortization 2,7632,763
    Installment obligations expense, net     6,519                           (6,519 )         -  
    Total Expenses   $180,649     $(60,979)   $-   $(1,070)   $-     $(5,349)   $(6,519)   $-   $106,732  
     
    Income before taxes $69,220 $ (52,575 ) $ 9,125 $ 1,070 $ - $ 5,349 $ - $ 1,862 $34,051
    Provision for income taxes     1,155                   (1,155 )                 -  
     
    Net Income   $68,065     $(52,575)   $9,125   $1,070     $1,155     $5,349     $-     $1,862   $34,051  
     

     

                           

    JGWPT Holdings Inc.

    Unaudited

    (In thousands, except shares and per share data)

     
    PrivatePublic
    Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014
    TRB:
    Securitized Product Total Receivables Balance (TRB) Purchases (1) $ 230,705 $ 246,895 $ 254,376 $ 214,437 $ 223,507 $ 252,544
    Life Contingent Purchases 34,222 42,878 40,165 39,054 29,827 28,185
    Presettlement Fundings       5,444         5,073         4,785     6,997         7,247         6,977  
    Total     $270,371       $294,846       $299,326   $260,488       $260,581       $287,706  
     
    ANI Basis:
    Total Revenue $ 76,850 $ 63,933 $ 60,343 $ 71,603 $ 63,131 $ 69,110
    Total Expenses     $ 53,323       $ 53,409       $ 58,944   $ 60,439       $ 53,010       $ 51,935  
    ANI     $23,527       $10,524       $1,399   $11,164       $10,121       $17,175  
    ANI Margin (2) 30.6 % 16.5 % 2.3 % 15.6 % 16.0 % 24.9 %
    ANI TRB Margin (3) 8.7 % 3.6 % 0.5 % 4.3 % 3.9 % 6.0 %
     
    Spread Revenue (4) $ 64,727 $ 52,281 $ 48,998 $ 44,637 $ 51,846 $ 57,951
    TRB Spread Margin (5) 24.4 % 18.0 % 16.6 % 17.6 % 20.5 % 20.6 %
     
    GAAP Basis:
    Revenue $ 183,208 $ 66,661 $ 103,138 $ 106,556 $ 136,590 $ 123,488
    Expenses     $ 93,503       $ 88,301       $ 104,023   $ 111,918       $ 102,057       $ 101,780  
    Net Income (Loss)     $89,705       $(21,640)     $(885)$(5,362)     $34,533       $21,708  
    Net Income (Loss) Attributable to JGWPT Holdings Inc.                   $(5,577)     $9,022       $6,268  
     
    Weighted Average Diluted Shares 10,395,574 11,642,283 12,562,042
    All-in Shares (6) 14,967,315 29,556,961 29,507,944
     
    Diluted EPS $ (0.54 ) $ 0.77 $ 0.50
    ANI EPS based on All-in Shares (7) $ 0.75 $ 0.34 $ 0.58
     
    Residual Asset Balance $ 249,345 $ 234,918 $ 239,770 $ 239,591 $ 280,208 $ 294,637
    Residual Loan Balance $ 70,000 $ 70,000 $ 69,560 $ 68,785 $ 67,989 $ 107,540
     
    10-Year Swap Rate 2.01 % 2.70 % 2.77 % 3.09 % 2.84 % 2.63 %
     
    Term Loan Interest Expense $ 7,673 $ 12,287 $ 14,595 $ 13,457 $ 9,917 $ 10,020
    ANI Interest Expense $ 12,267 $ 15,748 $ 18,497 $ 18,298 $ 13,945 $ 14,487
     
    (1)    

    Securitized product TRB purchases includes purchases during the period of assets that will be securitized (guaranteed structured settlements, annuities, and lottery payment streams).

    (2) ANI Margin is defined as ANI / ANI Total Revenue
    (3) ANI TRB Margin is defined as ANI / Total TRB
    (4) Spread Revenue is defined as Adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the loss on swap termination
    (5) TRB Spread Margin is defined as Spread Revenue / (the sum of Securitized Product TRB Purchases + Life Contingent Purchases)
    (6) Represents the weighted average number of outstanding shares of Class A common stock if all Common Interests in JGWPT Holdings, LLC were exchanged.
    (7) ANI EPS based on All-in Shares is defined as ANI / All-in Shares
     





    Investor Relations:

    JGWPT Holdings Inc.

    Jennifer Gambol, 866-386-3853

    investor@jgwpt.com

    or

    Media:

    JGWPT Holdings Inc.

    866-386-3853

    media@jgwpt.com

    or

    Makovsky for JGWPT Holdings Inc.

    Michael Goodwin, 212-508-9639

    mgoodwin@makovsky.com

    Source: JGWPT Holdings Inc.


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