Attached files
| file | filename |
|---|---|
| 8-K - 8-K - EMERGENT CAPITAL, INC. | d616638d8k.htm |
| EX-2.1 - EX-2.1 - EMERGENT CAPITAL, INC. | d616638dex21.htm |
| EX-99.1 - EX-99.1 - EMERGENT CAPITAL, INC. | d616638dex991.htm |
Exhibit 99.2
Imperial Holdings, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheet
| June 30, 2013 | ||||||||||||
| Reported | Pro Forma Adjustment (a) |
Pro Forma | ||||||||||
| (In thousands except share data) | ||||||||||||
| ASSETS | ||||||||||||
| Assets |
||||||||||||
| Cash and cash equivalents |
$ | 21,283 | $ | 12,000 | (b) | $ | 33,283 | |||||
| Cash and cash equivalents (VIE restricted) |
2,280 | — | 2,280 | |||||||||
| Prepaid expenses and other assets |
14,690 | — | 14,690 | |||||||||
| Deposits - other |
1,603 | — | 1,603 | |||||||||
| Interest receivable, net |
42 | — | 42 | |||||||||
| Loans receivable, net |
206 | — | 206 | |||||||||
| Structured settlement receivables, at estimated fair value |
1,393 | — | 1,393 | |||||||||
| Structured settlement receivables at cost, net |
1,584 | — | 1,584 | |||||||||
| Investment in life settlements, at estimated fair value |
47,645 | — | 47,645 | |||||||||
| Investment in life settlements, at estimated fair value (VIE restricted) |
218,128 | — | 218,128 | |||||||||
| Fixed assets, net |
140 | — | 140 | |||||||||
| Investment in affiliates |
2,315 | — | 2,315 | |||||||||
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| Total assets |
$ | 311,309 | $ | 12,000 | $ | 323,309 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Liabilities |
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| Accounts payable and accrued expenses |
$ | 7,573 | $ | 738 | (c) | $ | 8,311 | |||||
| Accounts payable and accrued expenses (VIE restricted) |
1,452 | — | 1,452 | |||||||||
| Other liabilities |
23,123 | — | 23,123 | |||||||||
| Note payable, at estimated fair value (VIE restricted) |
101,775 | — | 101,775 | |||||||||
| Income taxes payable |
6,295 | — | 6,295 | |||||||||
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| Total liabilities |
140,218 | 738 | 140,956 | |||||||||
| Commitments and Contingencies |
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| Stockholders’ Equity |
||||||||||||
| Common stock (80,000,000 authorized; 21,237,166 issued and outstanding as of June 30, 2013) |
212 | — | 212 | |||||||||
| Additional paid-in-capital |
239,118 | — | 239,118 | |||||||||
| Accumulated deficit |
(68,239 | ) | 11,262 | (d) | (56,977 | ) | ||||||
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| Total stockholders’ equity |
171,091 | 11,262 | 182,353 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 311,309 | $ | 12,000 | $ | 323,309 | ||||||
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| (a) | To reflect the sale of the Company’s Structured Settlement segment as if the sale occurred on June 30, 2013. |
| (b) | In connection with the sale of the Company’s Structured Settlement segment, the Buyer transferred $12.0 million in cash to Seller. |
| (c) | To reflect closing costs of approximately $738,000 in connection with the sale of the Company’s Structured Settlement segment. |
| (d) | Estimated gain on sale of the Company’s Structured Settlement segment as if sold on June 30, 2013. |
See accompanying notes to the unaudited pro forma consolidated financial statements.
Imperial Holdings, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
| For the Six Months Ended June 30, 2013 | ||||||||||||
| As Reported | Disposition(d) | Pro Forma | ||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Income |
||||||||||||
| Interest income |
$ | 162 | $ | (131 | ) | $ | 31 | |||||
| Interest and dividends on investment securities available for sale |
14 | — | 14 | |||||||||
| Realized gain on sale of structured settlements |
6,670 | (6,670 | ) | — | ||||||||
| Loss on life settlements, net |
(1,247 | ) | — | (1,247 | ) | |||||||
| Change in fair value of life settlements |
66,686 | — | 66,686 | |||||||||
| Unrealized change in fair value of structured settlements |
781 | (781 | ) | — | ||||||||
| Servicing fee income |
310 | — | 310 | |||||||||
| Other income |
2,090 | (87 | ) | 2,003 | ||||||||
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| Total income |
75,466 | (7,669 | ) | 67,797 | ||||||||
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| Expenses |
||||||||||||
| Interest expense |
10,861 | — | 10,861 | |||||||||
| Change in fair value of note payable |
(5,361 | ) | — | (5,361 | ) | |||||||
| Loss on extinguishment of debt |
3,991 | — | 3,991 | |||||||||
| Gain on loan payoffs and settlements, net |
(65 | ) | — | (65 | ) | |||||||
| Amortization of deferred costs |
7 | — | 7 | |||||||||
| Personnel costs |
6,984 | (2,693 | ) | 4,291 | ||||||||
| Marketing costs |
1,428 | (1,428 | ) | — | ||||||||
| Legal fees |
8,744 | (761 | ) | 7,983 | ||||||||
| Professional fees |
2,720 | (659 | ) | 2,061 | ||||||||
| Insurance |
998 | — | 998 | |||||||||
| Other selling, general and administrative expenses |
1,730 | (556 | ) | 1,174 | ||||||||
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| Total expenses |
32,037 | (6,097 | ) | 25,940 | ||||||||
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| Income from continuing operations before income taxes |
43,429 | (1,572 | ) | 41,857 | ||||||||
| Provision for income taxes |
(40 | ) | — | (40 | ) | |||||||
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| Net income from continuing operations |
$ | 43,389 | $ | (1,572 | ) | $ | 41,817 | |||||
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| Income from continuing operations per share: |
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| Basic |
$ | 2.05 | $ | (0.08 | ) | $ | 1.97 | |||||
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| Diluted |
$ | 2.04 | $ | (0.07 | ) | $ | 1.97 | |||||
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| Weighted average shares outstanding: |
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| Basic |
21,213,039 | 21,213,039 | 21,213,039 | |||||||||
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| Diluted |
21,230,325 | 21,230,325 | 21,230,325 | |||||||||
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| (d) | To remove the operating results of the Company’s Structured Settlement segment as if sold on January 1, 2013. |
See accompanying notes to the unaudited pro forma consolidated financial statements.
Imperial Holdings, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
| Year Ended December 31, 2012 | ||||||||||||
| As Reported | Disposition(d) | Pro Forma | ||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Income |
||||||||||||
| Interest income |
$ | 2,014 | $ | (329 | ) | $ | 1,685 | |||||
| Interest and dividends on investment securities available for sale |
391 | — | 391 | |||||||||
| Origination fee income |
500 | — | 500 | |||||||||
| Realized gain on sale of structured settlements |
11,509 | (11,509 | ) | — | ||||||||
| Gain on life settlements, net |
151 | — | 151 | |||||||||
| Change in fair value of life settlements |
(5,660 | ) | — | (5,660 | ) | |||||||
| Unrealized change in fair value of structured settlements |
1,823 | (1,823 | ) | — | ||||||||
| Servicing fee income |
1,183 | — | 1,183 | |||||||||
| Gain on maturities of life settlements with subrogation rights, net |
6,090 | — | 6,090 | |||||||||
| Other income |
1,082 | (334 | ) | 748 | ||||||||
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| Total income |
19,083 | (13,995 | ) | 5,088 | ||||||||
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| Expenses |
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| Interest expense |
1,255 | — | 1,255 | |||||||||
| Provision for losses on loans receivable |
515 | — | 515 | |||||||||
| Loss on loan payoffs and settlements, net |
125 | — | 125 | |||||||||
| Amortization of deferred costs |
1,867 | — | 1,867 | |||||||||
| Personnel costs |
16,087 | (6,635 | ) | 9,452 | ||||||||
| Marketing costs |
5,023 | (5,023 | ) | — | ||||||||
| Legal fees |
26,053 | (2,079 | ) | 23,974 | ||||||||
| Professional fees |
6,934 | (1,672 | ) | 5,262 | ||||||||
| Insurance |
2,330 | — | 2,330 | |||||||||
| Other selling, general and administrative expenses |
3,567 | (1,201 | ) | 2,366 | ||||||||
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| Total expenses |
63,756 | (16,610 | ) | 47,146 | ||||||||
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| Loss from continuing operations before income taxes |
(44,673 | ) | 2,615 | (42,058 | ) | |||||||
| Benefit for income taxes |
39 | — | 39 | |||||||||
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| Net loss from continuing operations |
$ | (44,634 | ) | $ | 2,615 | $ | (42,019 | ) | ||||
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| Loss from continuing operations per share: |
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| Basic |
$ | (2.10 | ) | $ | 0.12 | $ | (1.98 | ) | ||||
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| Diluted |
$ | (2.10 | ) | $ | 0.12 | $ | (1.98 | ) | ||||
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| Weighted average shares outstanding: |
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| Basic |
21,205,747 | 21,205,747 | 21,205,747 | |||||||||
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| Diluted |
21,205,747 | 21,205,747 | 21,205,747 | |||||||||
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| (d) | To remove the operating results of the Company’s Structured Settlement segment as if sold on January 1, 2012. |
See accompanying notes to the unaudited pro forma consolidated financial statements.
Imperial Holdings, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
| Year Ended December 31, 2011 | ||||||||||||
| As Reported | Disposition(d) | Pro Forma | ||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Income |
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| Agency fee income |
$ | 6,470 | — | $ | 6,470 | |||||||
| Interest income |
8,303 | (553 | ) | 7,750 | ||||||||
| Interest and dividends on investment securities available for sale |
640 | — | 640 | |||||||||
| Origination fee income |
6,480 | — | 6,480 | |||||||||
| Realized gain on sale of structured settlements |
5,817 | (5,817 | ) | — | ||||||||
| Gain on life settlements, net |
5 | — | 5 | |||||||||
| Gain on forgiveness of debt |
5,023 | — | 5,023 | |||||||||
| Change in fair value of life settlements |
570 | — | 570 | |||||||||
| Unrealized change in fair value of structured settlements |
5,302 | (5,302 | ) | — | ||||||||
| Servicing fee income |
1,814 | — | 1,814 | |||||||||
| Gain on maturities of life settlements with subrogation rights, net |
3,188 | — | 3,188 | |||||||||
| Other income |
602 | (261 | ) | 341 | ||||||||
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| Total income |
44,214 | (11,933 | ) | 32,281 | ||||||||
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| Expenses |
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| Interest expense |
8,524 | — | 8,524 | |||||||||
| Provision for losses on loans receivable |
7,589 | — | 7,589 | |||||||||
| Loss on loan payoffs and settlements, net |
3,837 | — | 3,837 | |||||||||
| Amortization of deferred costs |
6,076 | — | 6,076 | |||||||||
| Personnel costs |
18,933 | (6,027 | ) | 12,906 | ||||||||
| Marketing costs |
6,104 | (6,099 | ) | 5 | ||||||||
| Department of Justice Settlement |
8,000 | — | 8,000 | |||||||||
| Legal fees |
12,097 | (2,242 | ) | 9,855 | ||||||||
| Professional fees |
5,684 | (1,311 | ) | 4,373 | ||||||||
| Insurance |
756 | — | 756 | |||||||||
| Other selling, general and administrative expenses |
5,812 | (1,678 | ) | 4,134 | ||||||||
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| Total expenses |
83,412 | (17,357 | ) | 66,055 | ||||||||
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| Net loss from continuing operations |
$ | (39,198 | ) | $ | 5,424 | $ | (33,774 | ) | ||||
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| Loss from continuing operations per share: |
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| Basic |
$ | (2.03 | ) | $ | 0.28 | $ | (1.75 | ) | ||||
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| Diluted |
$ | (2.03 | ) | $ | 0.28 | $ | (1.75 | ) | ||||
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| Weighted average shares outstanding: |
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| Basic |
19,352,063 | 19,352,063 | 19,352,063 | |||||||||
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| Diluted |
19,352,063 | 19,352,063 | 19,352,063 | |||||||||
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| (d) | To remove the operating results of the Company’s Structured Settlement segment as if sold on January 1, 2011. |
See accompanying notes to the unaudited pro forma consolidated financial statements.
Imperial Holdings, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
| Year Ended December 31, 2010 | ||||||||||||
| As Reported | Disposition(d) | Pro Forma | ||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Income |
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| Agency fee income |
$ | 10,149 | — | $ | 10,149 | |||||||
| Interest income |
18,660 | (334 | ) | 18,326 | ||||||||
| Origination fee income |
19,938 | — | 19,938 | |||||||||
| Realized gain on sale of structured settlements |
6,595 | (6,595 | ) | — | ||||||||
| Gain on life settlements, net |
1,951 | — | 1,951 | |||||||||
| Gain of forgiveness of debt |
7,599 | — | 7,599 | |||||||||
| Change in fair value of life settlements |
10,156 | — | 10,156 | |||||||||
| Unrealized change in fair value of structured settlements |
2,477 | (2,477 | ) | — | ||||||||
| Change in equity investments |
(1,284 | ) | — | (1,284 | ) | |||||||
| Servicing fee income |
413 | (11 | ) | 402 | ||||||||
| Other income |
242 | (113 | ) | 129 | ||||||||
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| Total income |
76,896 | (9,530 | ) | 67,366 | ||||||||
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| Expenses |
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| Interest expense |
28,155 | — | 28,155 | |||||||||
| Provision for losses on loans receivable |
4,476 | — | 4,476 | |||||||||
| Loss on loan payoffs and settlements, net |
4,981 | — | 4,981 | |||||||||
| Amortization of deferred costs |
24,465 | — | 24,465 | |||||||||
| Personnel costs |
12,370 | (3,731 | ) | 8,639 | ||||||||
| Marketing costs |
5,077 | (5,014 | ) | 63 | ||||||||
| Legal fees |
3,444 | (1,438 | ) | 2,006 | ||||||||
| Professional fees |
3,966 | (858 | ) | 3,108 | ||||||||
| Insurance |
358 | — | 358 | |||||||||
| Other selling, general and administrative expenses |
5,301 | (1,139 | ) | 4,162 | ||||||||
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| Total expenses |
92,593 | (12,180 | ) | 80,413 | ||||||||
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| Net loss from continuing operations |
$ | (15,697 | ) | $ | 2,650 | $ | (13,047 | ) | ||||
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| Loss from continuing operations per share: |
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| Basic |
$ | (4.36 | ) | $ | 0.74 | $ | (3.62 | ) | ||||
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| Diluted |
$ | (4.36 | ) | $ | 0.74 | $ | (3.62 | ) | ||||
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| Weighted average shares outstanding: |
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| Basic |
3,600,000 | 3,600,000 | 3,600,000 | |||||||||
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| Diluted |
3,600,000 | 3,600,000 | 3,600,000 | |||||||||
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| (d) | To remove the operating results of the Company’s Structured Settlement segment as if sold on January 1, 2010. |
See accompanying notes to the unaudited pro forma consolidated financial statements.
Imperial Holdings, Inc. and Subsidiaries
Notes to Unaudited Pro Forma Consolidated Statement of Operations
Note 1: Basis of Presentation
The unaudited pro forma consolidated financial statements are based on the historical financial information of Imperial Holdings, Inc. and Subsidiaries adjusted to give effect to the disposition of the Company’s Structured Settlement segment.
The unaudited pro forma consolidated balance sheet assumes that the disposition occurred on June 30, 2013, while the unaudited consolidated pro forma statements of operation for the six month ended June 30, 2013 and the years ended December 31, 2012, 2011 and 2010 give effect to the disposition as if it had occurred at the beginning of each period presented. The unaudited pro forma consolidated financial statements are based upon available information and assumptions that the Company believes are reasonable under the circumstances and are prepared to illustrate the estimated effects of the disposition.
The unaudited pro forma consolidated financial statements have been provided for illustrative purposes only and are not necessarily indicative of the financial position or results of operations that would have been achieved had the disposition occurred as of, or at the beginning of the periods presented, nor are they necessarily indicative of the Company’s future operating results or financial position.