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8-K - 8-K - J.G. Wentworth Coa14-4601_48k.htm

Exhibit 99.1

 

JGWPT Holdings Inc. Reports Fourth Quarter Financial Results

 

RADNOR, Pa.—(BUSINESS WIRE)—3.31.14 — JGWPT Holdings Inc. (“JGWPT” or the “Company”) (NYSE:JGW), a leading purchaser of structured settlement payments, annuity payments, lottery payments and other receivables, today reported its financial results for the fourth quarter and full year of 2013. David Miller, JGWPT’s Chief Executive Officer, said, “The business performance and fourth quarter results are in line with our expectations, as we earned approximately $0.04 on every dollar of Total Receivables Balance, or TRB, purchased from customers.”  The following are highlights from the fourth quarter and full year results:

 

Fourth Quarter Highlights

 

·                  TRB purchases were $260.5 million, as compared to $278.9 million in the fourth quarter of 2012, representing a 6.6% decrease.

 

·                  Revenues were $106.6 million, a decrease of 15.5% from revenues of $126.2 million in the fourth quarter of 2012, due primarily to an increasing interest rate environment and lower TRB purchases.

 

·                  Net (loss) income attributable to J.G. Wentworth, LLC decreased to $(5.4) million, as compared to $38.6 million in the fourth quarter of 2012, driven by additional interest expense on the Company’s term loan as well as the impact of an increasing rate environment.

 

·                  Adjusted Net Income (“ANI”) decreased to $11.2 million, as compared to $23.8 million in the fourth quarter of 2012, driven primarily by $10.1 million of additional interest expense on the term loan as well as an increasing interest rate environment (ANI is a non-GAAP measure - See Reconciliation of Net Income to Adjusted Net Income below).

 

·                  ANI as a percentage of TRB was 4.29%, as compared to 8.55% in the fourth quarter of 2012.

 

·                  Term loan interest expense was $13.5 million, compared to $3.4 million in the fourth quarter of 2012.  In December, the Company repaid $123.0 million on the term loan, reducing the outstanding balance to $434.2 million, and entered into an amendment reducing the interest rate payable on the term loan by approximately 200 basis points. These changes are expected to result in annual savings of approximately $20 million.

 

Full Year Highlights

 

·                  TRB purchases were $1,125.0 million, as compared to $1,069.7 million in 2012, representing a 5.2% increase.

 

·                  Revenues decreased to $459.6 million in 2013, as compared to $467.4 million in 2012, due to the increasing rate environment but offset somewhat by the increase in TRB purchases.

 

·                  Net income attributable to J.G. Wentworth, LLC decreased to $61.8 million, as compared to $116.7 million in 2012, due primarily to an increased interest rate environment and additional interest on the term loan.

 

·                  ANI was $46.6 million, as compared to $76.4 million in 2012, primarily driven by $33.5 million of additional interest expense on the Company’s term loan as well as the increased interest rate environment and increases in other expenses (see reconciliation of net income to adjusted net income — a non-GAAP measure).

 

·                  ANI as a percentage of TRB was 4.14%, as compared to 7.14% in 2012.

 

·                  Term loan interest expense was $48.0 million, compared to $14.5 million in 2012.

 

John Schwab, JGWPT’s Chief Financial Officer, said, “Fourth quarter profitability was impacted primarily by interest expense associated with our term loan. As a result of paying down a portion of our term loan and lowering the interest rate, we have reduced our interest costs going forward.”

 

About JGWPT Holdings Inc.

 

JGWPT focuses on key sectors, including purchasing of structured settlement payments, annuity payments, lottery payments and pre-settlement funding. Through our two market leading and highly recognizable brands, J.G. Wentworth and Peachtree Financial Solutions, we have purchased over $9.6 billion of future structured settlement payment streams from our customers since 1995.

 

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 fourth quarter 2013 financial results tomorrow April 1, 2014 at 10:00 AM Eastern time. The webcast will include remarks from JGWPT’s Chief Executive Officer, David Miller, 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: https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=773707&sessionid=1&key=899335C7B16FFA04DF997FBE6773B17E&sourcepage=register

 

Interested parties unable to access the conference call via the webcast may dial (877) 201-0168 and reference conference ID 19646221.  A playback of the call is available until April 15, 2014 at (855) 859-2056 with conference ID 19646221.

 

Forward-Looking Statements

 

Certain statements in this press release constitute “forward-looking statements.” Statements preceded by, followed by or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates” and “plans” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. 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. 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 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 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 of a material number of structured settlement holders; any change in current tax law relating to the tax treatment of structured settlements; changes to statutory, licensing and regulatory regimes; the impact of the Consumer Financial Protection Bureau and any regulations it issues; 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 dependence on outside parties to conduct our transactions including the court system, insurance companies, outside counsel, delivery services and notaries; 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.

 

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 (the “SEC”), including our Annual Report on Form 10-K, and in our other filings made from time to time, in connection with considering any forward-looking statements that may be made by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to release publicly any revisions to 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)

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

39,061

 

$

103,137

 

Restricted cash and investments

 

109,338

 

112,878

 

VIE finance receivables, at fair market value

 

3,818,704

 

3,586,465

 

Other finance receivables, at fair market value

 

51,945

 

28,723

 

VIE finance receivables, net of allowance for losses of $6,443 and $3,717, respectively

 

117,826

 

128,737

 

Other finance receivables, net of allowance for losses of $1,899 and $933, respectively

 

15,166

 

21,616

 

Notes receivable, at fair market value

 

5,610

 

8,074

 

Notes receivable due from affiliate

 

 

5,243

 

Other receivables, net of allowance for losses of $243 and $276, respectively

 

13,529

 

13,146

 

Fixed assets, net of accumulated depreciation of $4,544 and 3,128, respectively

 

3,112

 

6,321

 

Intangible assets, net of accumulated amortization of $17,781 and $14,257, respectively

 

47,878

 

51,277

 

Goodwill

 

84,993

 

84,993

 

Marketable securities

 

121,954

 

131,114

 

Deferred tax assets

 

1,830

 

2,455

 

Other assets

 

41,151

 

14,418

 

Total assets

 

$

4,472,097

 

$

4,298,597

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY/MEMBER’S CAPITAL

 

 

 

 

 

Accounts payable

 

$

3,903

 

$

8,630

 

Accrued expenses

 

21,181

 

12,440

 

Accrued interest

 

14,485

 

11,687

 

VIE derivative liabilities, at fair market value

 

70,296

 

121,498

 

VIE borrowings under revolving line of credit and other short term borrowings

 

41,274

 

27,380

 

VIE long term debt

 

150,802

 

162,799

 

VIE long term debt issued by securitization trusts, at fair market value

 

3,431,283

 

3,229,591

 

Term loan payable

 

434,184

 

142,441

 

Other liabilities

 

7,646

 

8,199

 

Deferred tax liabilities

 

1,707

 

 

Installment obligations payable

 

121,954

 

131,114

 

Total liabilities

 

$

4,298,715

 

$

3,855,779

 

 

 

 

 

 

 

Member’s capital

 

$

 

$

442,818

 

Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 11,220,358 issued and 11,216,429 outstanding as of December 31, 2013

 

 

 

Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 14,001,583 issued and 13,984,065 outstanding as of December 31, 2013

 

 

 

Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of December 31, 2013

 

 

 

Additional paid-in-capital

 

70,236

 

 

Accumulated deficit

 

(5,577

)

 

Accumulated other comprehensive income

 

612

 

 

 

 

$

65,271

 

$

442,818

 

Non-controlling interests

 

108,111

 

 

Total stockholders’ equity/member’s capital

 

$

173,382

 

$

442,818

 

Total liabilities and stockholders’ equity/member’s capital

 

$

4,472,097

 

$

4,298,597

 

 



 

JGWPT Holdings Inc.

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

Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

Interest income

 

$

46,130

 

$

45,233

 

$

172,423

 

$

177,748

 

Unrealized gains on VIE and other finance receivables,

 

 

 

 

 

 

 

 

 

long term debt, and derivatives

 

38,733

 

82,163

 

252,801

 

270,787

 

Gain (loss) on swap termination, net

 

(151

)

(1,869

)

200

 

(2,326

)

Servicing, broker, and other fees

 

1,585

 

1,723

 

5,276

 

9,303

 

Other

 

1,266

 

(1,240

)

1,209

 

(856

)

Realized loss on notes receivable, at fair value

 

 

 

(1,862

)

 

Gain on extinguishment of debt, net

 

14,217

 

 

14,217

 

 

Realized and unrealized gains on marketable securities, net

 

4,776

 

192

 

15,299

 

12,741

 

Total revenue

 

$

106,556

 

$

126,202

 

$

459,563

 

$

467,397

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Advertising

 

$

18,639

 

$

17,075

 

$

70,304

 

$

73,307

 

Interest expense

 

53,061

 

39,699

 

193,035

 

158,631

 

Compensation and benefits

 

10,101

 

10,910

 

42,595

 

43,584

 

General and administrative

 

5,298

 

4,048

 

20,179

 

14,613

 

Professional and consulting

 

4,914

 

4,938

 

18,820

 

15,874

 

Debt issuance

 

3,275

 

3,156

 

8,930

 

9,124

 

Securitization debt maintenance

 

1,565

 

1,472

 

6,091

 

5,208

 

Provision for losses on finance receivables

 

1,321

 

1,918

 

5,695

 

3,805

 

Depreciation and amortization

 

1,472

 

1,650

 

5,703

 

6,385

 

Installment obligations expense, net

 

6,827

 

2,303

 

19,647

 

17,321

 

Loss on disposal/impairment of fixed assets

 

4,200

 

300

 

4,200

 

300

 

Total expenses

 

$

110,673

 

$

87,469

 

$

395,199

 

$

348,152

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(4,117

)

$

38,733

 

$

64,364

 

$

119,245

 

Provision (benefit) for income taxes

 

1,245

 

126

 

2,546

 

(227

)

Net income (loss)

 

(5,362

)

38,607

 

61,818

 

119,472

 

Less non-controlling interest in earnings of affiliate

 

 

 

 

2,731

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

(5,362

)

$

38,607

 

61,818

 

$

116,741

 

Less net income attributable to non-controlling interests

 

215

 

 

 

67,395

 

 

 

Net loss attributable to JGWPT Holdings Inc.

 

$

(5,577

)

 

 

$

(5,577

)

 

 

 

November 14, 2013 through December 31, 2013

 

Weighted average shares of Class A common stock outstanding:

 

 

 

Basic

 

10,395,574

 

Diluted

 

10,395,574

 

 

 

 

 

Net income per share attributable to stockholders of Class A common stock of JGWPT Holdings Inc.

 

 

 

Basic

 

$

(0.54

)

Diluted

 

$

(0.54

)

 



 

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 certain 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. 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 months ended and year ended December 31, 2013 is provided below.

 



 

JGWPT Holdings Inc.

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

Reconciliation of Net Income to Adjusted Net Income - Unaudited

(Dollars in thousands)

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

$

(5,362

)

$

38,607

 

$

61,818

 

$

116,741

 

 

 

 

 

 

 

 

 

 

 

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

 

6,055

 

(18,525

)

(42,358

)

(51,599

)

Elimination of interest income from securitized finance receivables

 

(40,349

)

(37,519

)

(150,945

)

(149,883

)

Interest income on retained interests in finance receivables

 

4,865

 

4,302

 

18,709

 

16,372

 

Servicing income on securitized finance receivables

 

1,303

 

1,342

 

5,548

 

5,949

 

Elimination of interest expense on long-term debt related to securitization and permanent financing trusts

 

34,763

 

31,660

 

128,226

 

126,650

 

Professional fees relating to securitizations

 

1,563

 

1,637

 

6,198

 

5,341

 

Other adjustments:

 

 

 

 

 

 

 

 

 

Share based compensation

 

(60

)

552

 

1,452

 

2,393

 

Income tax (benefit) / provision

 

1,245

 

126

 

2,546

 

(227

)

Severance, M & A and consulting expenses

 

1,020

 

1,352

 

5,416

 

4,364

 

Other non-recurring expenses

 

6,121

 

300

 

10,004

 

300

 

Adjusted Net Income

 

$

11,164

 

$

23,834

 

$

46,614

 

$

76,401

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

Securitized Product Total Receivables Balance (TRB) Purchases (1)

 

$

214,437

 

$

236,840

 

$

946,412

 

$

915,783

 

Other TRB Purchases (2)

 

46,051

 

42,076

 

178,619

 

153,964

 

Total TRB Purchases

 

$

260,488

 

$

278,916

 

$

1,125,031

 

$

1,069,747

 

Adjusted Net Income

 

$

11,164

 

$

23,834

 

$

46,614

 

$

76,401

 

Adjusted Net Income Margin (3)

 

4.29

%

8.55

%

4.14

%

7.14

%

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

Company retained interest in finance receivables, net at fair market value

 

$

239,591

 

$

184,094

 

 


 (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) Other TRB Purchases includes receivables purchased from life contingent structured settlements and the purchase price of pre-settlement fundings during the period

 (3) Adjusted Net Income 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

(Dollars in thousands)

 

 

 

 

 

Adjustments

 

Interest

 

 

 

 

 

Severance

 

 

 

 

 

 

 

 

 

Q4 2013

 

to reflect

 

Income on

 

Share

 

 

 

M&A

 

Other

 

 

 

Q4 2013

 

 

 

GAAP

 

deconsolidation

 

Retained

 

Based

 

Income

 

and

 

Non-recurring

 

 

 

Adjusted

 

 

 

Results

 

of securitizations

 

Interest

 

Compensation

 

Tax

 

Consulting

 

Expense

 

Wealthbuilder

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

46,130

 

$

(40,349

)

$

4,865

 

 

 

 

 

 

 

 

 

$

(2,051

)

$

8,595

 

Unrealized gains on VIE and other finance receivables, long-term debt and derivatives

 

38,733

 

6,055

 

 

 

 

 

 

 

 

 

 

 

 

 

44,788

 

Gain (loss) on swap termination, net

 

(151

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(151

)

Servicing, broker, and other fees

 

1,585

 

1,303

 

 

 

 

 

 

 

 

 

 

 

 

 

2,888

 

Other

 

1,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,266

 

Realized loss on notes receivable, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on extinguishment of debt, net

 

14,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,217

 

Realized and unrealized gains (losses) on marketable securities, net

 

4,776

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,776

)

 

Total revenue

 

$

106,556

 

$

(32,991

)

$

4,865

 

$

 

$

 

$

 

$

 

$

(6,827

)

$

71,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

18,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

18,639

 

Interest expense

 

53,061

 

(34,763

)

 

 

 

 

 

 

 

 

 

 

 

 

18,298

 

Compensation and benefits

 

10,101

 

 

 

 

 

60

 

 

 

(147

)

 

 

 

 

10,014

 

General and administrative

 

5,298

 

 

 

 

 

 

 

 

 

(325

)

 

 

 

 

4,973

 

Professional and consulting

 

4,914

 

 

 

 

 

 

 

 

 

(548

)

(1,921

)

 

 

2,445

 

Debt prepayment and termination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt issuance

 

3,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,275

 

Securitization debt maintenance

 

1,565

 

(1,563

)

 

 

 

 

 

 

 

 

 

 

 

 

2

 

Provision for losses on finance receivables

 

1,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,321

 

Depreciation and amortization

 

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,472

 

Installment obligations expense (income), net

 

6,827

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,827

)

 

Loss on disposal/impairment of fixed assets

 

4,200

 

 

 

 

 

 

 

 

 

 

 

(4,200

)

 

 

 

Total expenses

 

$

110,673

 

$

(36,326

)

$

 

$

60

 

$

 

$

(1,020

)

$

(6,121

)

$

(6,827

)

$

60,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

$

(4,117

)

$

3,335

 

$

4,865

 

$

(60

)

$

 

$

1,020

 

$

6,121

 

$

 

$

11,164

 

Provision (benefit) for income taxes

 

1,245

 

 

 

 

 

 

 

(1,245

)

 

 

 

 

 

 

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

$

(5,362

)

$

3,335

 

$

4,865

 

$

(60

)

$

1,245

 

$

1,020

 

$

6,121

 

$

 

$

11,164

 

 



 

JGWPT Holdings Inc.

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

Reconciliation of Net Income to Adjusted Net Income - Unaudited

(Dollars in thousands)

 

 

 

 

 

Adjustments

 

Interest

 

 

 

 

 

Severance

 

 

 

 

 

 

 

 

 

Q4 2012

 

to reflect

 

Income on

 

Share

 

 

 

M&A

 

Other

 

 

 

Q4 2012

 

 

 

GAAP

 

deconsolidation

 

Retained

 

Based

 

Income

 

and

 

Non-recurring

 

 

 

Adjusted

 

 

 

Results

 

of securitizations

 

Interest

 

Compensation

 

Tax

 

Consulting

 

Expense

 

Wealthbuilder

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

 

45,233

 

$

 

(37,519

)

$

 

4,302

 

 

 

 

 

 

 

 

 

$

 

(2,111

)

$

 

9,905

 

Unrealized gains on VIE and other finance receivables, long-term debt and derivatives

 

82,163

 

(18,525

)

 

 

 

 

 

 

 

 

 

 

 

 

63,638

 

Gain (loss) on swap termination, net

 

(1,869

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,869

)

Servicing, broker, and other fees

 

1,723

 

1,342

 

 

 

 

 

 

 

 

 

 

 

 

 

3,065

 

Other

 

(1,240

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,240

)

Realized and unrealized gains (losses) on marketable securities, net

 

192

 

 

 

 

 

 

 

 

 

 

 

 

 

(192

)

 

Total revenue

 

$

 

126,202

 

$

 

(54,702

)

$

 

4,302

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

(2,303

)

$

 

73,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

 

17,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

17,075

 

Interest expense

 

39,699

 

(31,660

)

 

 

 

 

 

 

 

 

 

 

 

 

8,039

 

Compensation and benefits

 

10,910

 

 

 

 

 

(552

)

 

 

(42

)

 

 

 

 

10,316

 

General and administrative

 

4,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,048

 

Professional and consulting

 

4,938

 

(108

)

 

 

 

 

 

 

(1,310

)

 

 

 

 

3,520

 

Debt issuance

 

3,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,156

 

Securitization debt maintenance

 

1,472

 

(1,472

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for losses on finance receivables

 

1,918

 

(57

)

 

 

 

 

 

 

 

 

 

 

 

 

1,861

 

Depreciation and amortization

 

1,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,650

 

Installment obligations expense (income), net

 

2,303

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,303

)

 

Loss on disposal/impairment of fixed assets

 

300

 

 

 

 

 

 

 

 

 

 

 

(300

)

 

 

 

 

Total expenses

 

$

 

87,469

 

$

 

(33,297

)

$

 

 

$

 

(552

)

$

 

 

$

 

(1,352

)

$

 

(300

)

$

 

(2,303

)

$

 

49,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

$

 

38,733

 

$

 

(21,405

)

$

 

4,302

 

$

 

552

 

$

 

 

$

 

1,352

 

$

 

300

 

$

 

 

$

 

23,834

 

Provision (benefit) for income taxes

 

126

 

 

 

 

 

 

 

(126

)

 

 

 

 

 

 

 

Net income (loss)

 

38,607

 

(21,405

)

4,302

 

552

 

126

 

1,352

 

300

 

 

23,834

 

Less noncontrolling interest in earnings of affiliate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

$

 

38,607

 

$

 

(21,405

)

$

 

4,302

 

$

 

552

 

$

 

126

 

$

 

1,352

 

$

 

300

 

$

 

 

$

 

23,834

 

 



 

JGWPT Holdings Inc.

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

Reconciliation of Net Income to Adjusted Net Income - Unaudited

(Dollars in thousands)

 

 

 

 

 

Adjustments

 

Interest

 

 

 

 

 

Severance

 

 

 

 

 

 

 

 

 

YTD 2013

 

to reflect

 

Income on

 

Share

 

 

 

M&A

 

Other

 

 

 

YTD 2013

 

 

 

GAAP

 

deconsolidation

 

Retained

 

Based

 

Income

 

and

 

Non-recurring

 

 

 

Adjusted

 

 

 

Results

 

of securitizations

 

Interest

 

Compensation

 

Tax

 

Consulting

 

Expense

 

Wealthbuilder

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

172,423

 

$

(150,945

)

$

18,709

 

 

 

 

 

 

 

 

 

$

(4,348

)

$

35,839

 

Unrealized gains on VIE and other finance receivables, long-term debt and derivatives

 

252,801

 

(42,358

)

 

 

 

 

 

 

 

 

 

 

 

 

210,443

 

Gain on swap termination, net

 

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200

 

Servicing, broker, and other fees

 

5,276

 

5,548

 

 

 

 

 

 

 

 

 

 

 

 

 

10,824

 

Other

 

1,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,209

 

Realized loss on notes receivable, at fair value

 

(1,862

)

 

 

 

 

 

 

 

 

 

 

1,862

 

 

 

 

Gain on extinguishment of debt, net

 

14,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,217

 

Realized and unrealized gains on marketable securities, net

 

15,299

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,299

)

 

Total revenue

 

$

459,563

 

$

(187,755

)

$

18,709

 

$

 

$

 

$

 

$

1,862

 

$

(19,647

)

$

272,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

70,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

70,304

 

Interest expense

 

193,035

 

(128,226

)

 

 

 

 

 

 

 

 

 

 

 

 

64,809

 

Compensation and benefits

 

42,595

 

 

 

 

 

(1,452

)

 

 

(3,098

)

 

 

 

 

38,045

 

General and administrative

 

20,179

 

(31

)

 

 

 

 

 

 

(698

)

 

 

 

 

19,450

 

Professional and consulting

 

18,820

 

(49

)

 

 

 

 

 

 

(1,620

)

(3,942

)

 

 

13,209

 

Debt issuance

 

8,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,930

 

Securitization debt maintenance

 

6,091

 

(6,091

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for losses on finance receivables

 

5,695

 

(27

)

 

 

 

 

 

 

 

 

 

 

 

 

5,668

 

Depreciation and amortization

 

5,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,703

 

Installment obligations expense (income), net

 

19,647

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,647

)

 

Loss on disposal/impairment of fixed assets

 

4,200

 

 

 

 

 

 

 

 

 

 

 

(4,200

)

 

 

 

Total expenses

 

$

395,199

 

$

(134,424

)

$

 

$

(1,452

)

$

 

$

(5,416

)

$

(8,142

)

$

(19,647

)

$

226,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

$

64,364

 

$

(53,331

)

$

18,709

 

$

1,452

 

$

 

$

5,416

 

$

10,004

 

$

 

$

46,614

 

Provision (benefit) for income taxes

 

2,546

 

 

 

 

 

(2,546

)

 

 

 

 

Net income (loss)

 

$

61,818

 

$

(53,331

)

$

18,709

 

$

1,452

 

$

2,546

 

$

5,416

 

$

10,004

 

$

 

$

46,614

 

Less noncontrolling interest in earnings of affiliate

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

$

61,818

 

$

(53,331

)

$

18,709

 

$

1,452

 

$

2,546

 

$

5,416

 

$

10,004

 

$

 

$

46,614

 

 



 

JGWPT Holdings Inc.

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

Reconciliation of Net Income to Adjusted Net Income - Unaudited

(Dollars in thousands)

 

 

 

 

 

Adjustments

 

Interest

 

 

 

 

 

Severance

 

 

 

 

 

 

 

 

 

YTD 2012

 

to reflect

 

Income on

 

Share

 

 

 

M&A

 

Other

 

 

 

YTD 2012

 

 

 

GAAP

 

deconsolidation

 

Retained

 

Based

 

Income

 

and

 

Non-recurring

 

 

 

Adjusted

 

 

 

Results

 

of securitizations

 

Interest

 

Compensation

 

Tax

 

Consulting

 

Expense

 

Wealthbuilder

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

177,748

 

$

(149,883

)

$

16,372

 

 

 

 

 

 

 

 

 

$

(4,580

)

$

39,657

 

Unrealized gains on VIE and other finance receivables, long-term debt and derivatives

 

270,787

 

(51,599

)

 

 

 

 

 

 

 

 

 

 

 

 

219,188

 

Gain (loss) on swap termination, net

 

(2,326

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,326

)

Servicing, broker, and other fees

 

9,303

 

5,949

 

 

 

 

 

 

 

 

 

 

 

 

 

15,252

 

Other

 

(856

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(856

)

Realized and unrealized gains (losses) on marketable securities, net

 

12,741

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,741

)

 

Total revenue

 

$

467,397

 

$

(195,533

)

$

16,372

 

$

 

$

 

$

 

$

 

$

(17,321

)

$

270,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

73,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

73,307

 

Interest expense

 

158,631

 

(126,650

)

 

 

 

 

 

 

 

 

 

 

 

 

31,981

 

Compensation and benefits

 

43,584

 

 

 

 

 

(2,393

)

 

 

(1,405

)

 

 

 

 

39,786

 

General and administrative

 

14,613

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

14,606

 

Professional and consulting

 

15,874

 

(69

)

 

 

 

 

 

 

(2,959

)

 

 

 

 

12,846

 

Debt issuance

 

9,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,124

 

Securitization debt maintenance

 

5,208

 

(5,208

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for losses on finance receivables

 

3,805

 

(57

)

 

 

 

 

 

 

 

 

 

 

 

 

3,748

 

Depreciation and amortization

 

6,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,385

 

Installment obligations expense (income), net

 

17,321

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,321

)

 

Loss on disposal/impairment of fixed assets

 

300

 

 

 

 

 

 

 

 

 

 

 

(300

)

 

 

 

Total expenses

 

$

348,152

 

$

(131,991

)

$

 

$

(2,393

)

$

 

$

(4,364

)

$

(300

)

$

(17,321

)

$

191,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

$

119,245

 

$

(63,542

)

$

16,372

 

$

2,393

 

$

 

$

4,364

 

$

300

 

$

 

$

79,132

 

Provision (benefit) for income taxes

 

(227

)

 

 

 

 

 

 

227

 

 

 

 

 

 

 

 

Net income (loss)

 

$

119,472

 

$

(63,542

)

$

16,372

 

$

2,393

 

$

(227

)

$

4,364

 

$

300

 

$

 

$

79,132

 

Less noncontrolling interest in earnings of affiliate

 

2,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,731

 

Net income (loss) attributable to J.G. Wentworth, LLC

 

$

116,741

 

$

(63,542

)

$

16,372

 

$

2,393

 

$

(227

)

$

4,364

 

$

300

 

$

 

$

76,401

 

 

Source: JGWPT Holdings Inc.

 

Investor Relations:

 

866-386-3853

 

investor@jgwpt.com

 

or

 

Media Inquiries:

 

866-386-3853

 

media@jgwpt.com

 

or

 

Makovsky for JGWPT Holdings, Inc.

 

Michael Goodwin, 212-508-9639

 

mgoodwin@makovsky.com