The J.G. Wentworth Company® Reports Fourth Quarter and Full Year 2015 Results
Fourth Quarter Total Receivable Balances Purchased of $224.2 million & Closed Mortgage Loans of $490.3 million
Actions Implemented To Reduce Annual Operating Costs by $25 to $30 million
RADNOR, Pa.—(BUSINESS WIRE) - March 8, 2016 The J.G. Wentworth Company® (“J.G. Wentworth” or the “Company”) (NYSE: JGW), a diversified financial services company, today reports financial results for the fourth quarter and full year 2015. “Although we made significant advances in diversifying the company, the fourth quarter results were disappointing. We doubled our efforts to reduce costs and realign the Structured Settlements Payments business, while positioning Home Lending for growth. The actions taken should yield improvement to the Structured Settlement Payments business, and Home Lending is scaling in line with our expectations. Certain business indicators confirm that we are making progress, including an already achieved run rate cost savings of $20 million to be recognized in 2016,” said Stewart A. Stockdale, Chief Executive Officer, The J.G. Wentworth Company®.
The following are highlights from the fourth quarter and full year results:
GAAP Fourth Quarter 2015 Results:
| |
| • | Consolidated Revenues were $84.3 million, a decrease of $43.0 million from the $127.3 million reported in the fourth quarter 2014. The decrease was due to a $57.6 million decline in the Structured Settlements & Annuity Purchasing segment’s (“Structured Settlements”) revenue that was primarily the result of a decline in unrealized gains on VIE and other finance receivables, long-term debt and derivatives. The decline was partially offset by $14.7 million in revenue generated by the Home Lending segment (“Home Lending”) that was acquired on July 31, 2015. |
| |
| ◦ | The Company had $4.4 billion in VIE and other finance receivables, at fair value and $3.9 billion in VIE long-term debt issued by securitization and permanent financing trusts, at fair value as of December 31, 2015. |
| |
| • | Consolidated Net Loss was $107.4 million compared to Consolidated Net Income of $27.7 million in the fourth quarter 2014. The $135.1 million unfavorable change was principally due to a $145.9 million decline in Structured Settlement's pre-tax income due to: (i) a $57.6 million decline in revenue and (ii) a $91.7 million non-cash impairment charge in the fourth quarter of 2015 to write-down goodwill and intangible assets related to a prior year acquisition to their respective fair values. Partially offsetting the decline in Structured Settlement's pre-tax income was a $10.4 million favorable change in our consolidated provision (benefit) for income taxes. |
Adjusted Non-GAAP* Fourth Quarter 2015 Results:
| |
| • | Consolidated Adjusted Total Revenues* were $52.2 million, a decrease of $11.6 million from $63.8 million in the fourth quarter 2014. The decrease was primarily due to a $26.2 million decline in Structured Settlement's Adjusted Total Revenues* that was attributable to a $26.8 million decline in Spread Revenue* (i.e., Adjusted realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives, net of the gain (loss) on swap terminations) resulting from a decrease in Total Receivable Balances (“TRB”) purchases and a combination of changes in cost of funds and purchase yields. The $26.8 million decline in Spread Revenue* was comprised of a $31.8 million decline in Adjusted unrealized gains* partially offset by a $5.0 million increase in Adjusted realized gains*. Partially offsetting the decline in Structured Settlement's Adjusted Total Revenues* was $14.7 million in revenue generated by Home Lending. |
| |
| ▪ | Structured Settlement's TRB purchases were $224.2 million in the fourth quarter of 2015, a $42.0 million decrease from TRB purchases of $266.2 million in the fourth quarter of 2014. |
| |
| ▪ | Home Lending achieved mortgage lock volume of $705.2 million and closed loan volume of $490.3 million in the fourth quarter of 2015. |
| |
| • | Consolidated Adjusted Net Income (“ANI”)* was a loss of $10.5 million compared to ANI* of $9.1 million in the fourth quarter 2014. The $19.6 million unfavorable change was due to a $19.6 million decline in Structured Settlement's ANI* that was principally the result of the $26.8 million decline in Spread Revenue*. |
| |
| ▪ | Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”* was $3.0 million for the fourth quarter of 2015 compared to $23.0 million for the fourth quarter of 2014. |
GAAP Full Year 2015 Results:
| |
| • | Consolidated Revenues were $296.4 million, a decrease of $198.0 million from the $494.4 million for the full year 2014. The decrease was primarily due to a $224.7 million decline in Structured Settlement's revenue partially offset by $26.7 million in revenue generated by Home Lending. The decline in Structured Settlement's revenue was primarily due to a decline in unrealized gains on VIE and other finance receivables, long-term debt and derivatives that was principally the result of: (i) an unfavorable movement in the fair value interest rate used to value residual interest cash flows and (ii) a combination of changes in cost of funds and purchase yields. |
| |
| • | Consolidated Net Loss was $197.1 million, compared to Consolidated Net Income of $96.6 million for the full year 2014. The $293.7 million unfavorable change was principally due to a $335.1 million decline in Structured Settlement's pre-tax income due to: (i) a $224.7 million decline in revenues and (ii) $121.6 million in non-cash impairment charges in 2015 to write-down goodwill and intangible assets to their respective fair values. Partially offsetting the decline in Structured Settlement's pre-tax income was $2.0 million in pre-tax income generated by Home Lending from the date of acquisition and a $39.4 million favorable change in the consolidated provision (benefit) for income taxes. |
Adjusted Non-GAAP* Full Year 2015 Results:
| |
| • | Consolidated Adjusted Total Revenues* were $230.2 million, a decrease of $28.8 million from the $259.0 million in 2014. The decrease was due primarily to a $57.1 million decline in Structured Settlement's Spread Revenue* that was attributable to a decline in TRB purchases and a combination of changes in cost of funds and purchase yields. Partially offsetting this decrease was $26.7 million in revenue generated by Home Lending. |
| |
| ▪ | Structured Settlement’s TRB purchases were $987.6 million in 2015, a $90.2 million decrease from TRB purchases of $1,077.8 million for the full year of 2014. |
| |
| ▪ | Home Lending had mortgage lock volume of $1,290.6 million and closed loan volume of $843.2 million in 2015 from the July 31, 2015 acquisition date. |
| |
| • | Consolidated ANI* was $0.6 million compared to Consolidated ANI* of $43.6 million for the full-year 2014. The $43.0 million decline was due to a $45.0 million decline in Structured Settlement's ANI* that was principally the result of the $56.7 million decrease in Spread Revenue* partially offset by an $8.5 million decline in advertising expense and a $1.9 million decline in debt issuance costs. Home Lending generated $2.0 million in ANI* from the date we acquired the business line. |
| |
| ▪ | Consolidated Adjusted EBITDA* was $52.3 million for the full year 2015 compared to $96.7 million for the full year 2014. |
Scott Stevens, J.G. Wentworth’s Chief Financial Officer, said, “We have implemented aggressive actions across the operations to support revenue growth and improve the profitability of the enterprise. Despite volatile market conditions, we continue to access the capital market allowing us to generate cash and diversify our funding sources.”
Operating Highlights
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| • | For the year ended December 31, 2015, the Company generated Adjusted EBITDA* of $52.3 million and as of December 31, 2015 had cash of $57.3 million. |
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| • | The following actions have been implemented to improve the Structured Settlements segment: |
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| • | Transitioned to a more cost effective digital marketing strategy; |
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| • | Improved operating efficiency and productivity through a strategic reorganization that specializes operations around key disciplines: lead management, contact center, payment purchasing, and overall transactional process; |
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| • | Increased the expense reduction plan from the initial $12 - $15 million objective that was conveyed in conjunction with our third quarter earnings release to a target of $25 - $30 million in 2016; and |
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| • | Severance payments of $1- $1.5 million are planned for actions taken in 2016. |
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| • | Implementing initiatives to profitably grow Home Lending, including the addition of a direct-to-consumer channel. |
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| • | Continue to maintain adequate liquidity through a keen focus on cash management, tightly managing expenses and diversifying the funding platforms. |
* This earnings press release contains non-GAAP measures, which as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Results for the three and twelve month periods ended December 31, 2015 and 2014, as well as our reconciliation of non-GAAP measures and historic financial information from 2014 to the present, are included in the accompanying financial information.
About The J.G. Wentworth Company®
The J.G. Wentworth Company is a diversified financial services company that specializes in providing solutions to consumers in need of cash. Our direct-to-consumer businesses use the internet, television, direct mailing, and other channels to offer a variety of solutions including structured settlement payment purchasing, mortgage origination (both purchase and refinancing), prepaid cards, and access to personal lending. We warehouse, securitize, sell or otherwise finance the financial assets that we purchase in transactions that are structured to ultimately generate cash proceeds to us that exceed the purchase price we paid for those assets. For more information about The J.G. Wentworth Company, visit www.jgw.com or use the contact information provided below.
Conference Call and Webcast
Management will host a webcast to discuss the fourth quarter and fiscal year 2015 financial results today, March 8, 2016, at 10:00 AM Eastern time. The webcast will include remarks from J.G. Wentworth’s Chief Executive Officer, Stewart Stockdale, and Executive Vice President & Chief Financial Officer, Scott Stevens.
This call will be accompanied by a presentation and will be available via a webcast of the conference call live on the Investor Relations section of the Company’s website listed below.
The J.G. Wentworth Company® Fourth Quarter and Fiscal Year 2015 Webcast.
Interested parties unable to access the conference call and view the presentation via the webcast through this link: The J.G. Wentworth Company® Fourth Quarter and Fiscal Year 2015 Webcast, may dial the Participant conference number: (877) 201-0168, Conference ID: 24125258.
A playback will be available through Tuesday, March 15th, 2016. To participate, utilize the dial-in information listed below:
Playback conference number: (855) 859-2056, Conference ID: 24125258. The presentation will be posted to the Company’s website after the call.
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, 2015, these risks and uncertainties include, among other things: our ability to execute on our business strategy; our ability to successfully compete in the industries in which we operate; our dependence on the effectiveness of direct response marketing; our ability to retain and attract qualified senior management; any improper use of or failure to protect the personally identifiable information of past, current and prospective customers to which we have access; our ability to upgrade and integrate our operational and financial information systems, maintain uninterrupted access to such systems and adapt to technological changes in the industries in which we operate; our dependence on third parties, including our ability to maintain relationships with such third parties and our potential exposure to liability for the actions of such third parties; damage to our reputation and increased regulation of our industries which
could result from unfavorable press reports about our business model; the accuracy of the estimates and assumptions of our financial models; infringement of our trademarks or service marks; our ability to maintain our state licenses or obtain new licenses in new markets; changes in, and our ability to comply with, federal, state and local laws and regulations governing us; our business model being susceptible to litigation; our ability to continue to purchase structured settlement payments and other financial assets; the public disclosure of the identities of structured settlement holders maintained in our proprietary database; our dependence on the opinions of certain credit rating agencies of the credit quality of our securitizations; our ability to complete future securitizations or other financings on favorable terms; the insolvency of a material number of structured settlement issuers; adverse changes in the residential mortgage lending and real estate markets, including any increases in defaults or delinquencies, especially in geographic areas where our loans are concentrated; our ability to grow our loan origination volume, acquire MSRs and recapture loans that are refinanced; changes in the guidelines of government-sponsored entities, or GSEs, or any discontinuation of, or significant reduction in, the operation of GSEs; potential misrepresentations by borrowers, counterparties and other third-parties; changes in prevailing interest rates and our ability to mitigate interest rate risk through hedging strategies; our ability to obtain sufficient working capital at attractive rates; and our ability to remain in compliance with the terms of our substantial indebtedness.
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.
Contacts:
The J.G. Wentworth Company®
Erik Hartwell, VP, Investor Relations
866-386-3853
investor@jgwentworth.com
or
Media Inquiries
The Glover Park Group
Ray Conger, 202-292-6961
rconger@gpg.com
The J.G. Wentworth Company
Consolidated Balance Sheets- Unaudited
(Dollars in thousands, except per share data)
|
| | | | | | | |
| | December 31, 2015 | | December 31, 2014 |
| | |
| ASSETS | |
| | |
|
| Cash and cash equivalents | $ | 57,322 |
| | $ | 41,648 |
|
| Restricted cash and investments | 136,780 |
| | 198,206 |
|
| VIE finance receivables, at fair value | 4,376,458 |
| | 4,422,033 |
|
| Other finance receivables, at fair value | 9,689 |
| | 101,802 |
|
| VIE finance receivables, net of allowances for losses of $8,659 and $7,674, respectively | 99,874 |
| | 113,489 |
|
| Other finance receivables, net of allowances for losses of $1,707 and $2,454, respectively | 10,468 |
| | 17,803 |
|
| Other receivables, net of allowances for losses of $273 and $204, respectively | 16,285 |
| | 14,165 |
|
| Mortgage loans held for sale, at fair value | 124,508 |
| | — |
|
| Mortgage servicing rights, at fair value | 29,287 |
| | — |
|
| Premises and equipment, net of accumulated depreciation of $7,961 and $5,976, respectively | 5,674 |
| | 3,758 |
|
| Intangible assets, net of accumulated amortization of $22,521 and $20,273, respectively | 30,429 |
| | 45,436 |
|
| Goodwill | 8,369 |
| | 84,993 |
|
| Marketable securities | 84,994 |
| | 103,419 |
|
| Deferred tax assets, net | 2,250 |
| | 2,170 |
|
| Other assets | 82,577 |
| | 33,787 |
|
| Total Assets | $ | 5,074,964 |
| | $ | 5,182,709 |
|
| | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | |
|
| Accrued expenses and accounts payable | $ | 21,548 |
| | $ | 19,256 |
|
| Accrued interest | 22,380 |
| | 17,416 |
|
| Term loan payable | 440,181 |
| | 437,183 |
|
| VIE derivative liabilities, at fair value | 66,519 |
| | 75,706 |
|
| VIE borrowings under revolving credit facilities and other similar borrowings | 48,828 |
| | 19,339 |
|
| Other borrowings under revolving credit facilities and other similar borrowings | 122,243 |
| | — |
|
| VIE long-term debt | 199,363 |
| | 181,558 |
|
| VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 |
| | 4,031,864 |
|
| Other liabilities | 65,106 |
| | 6,677 |
|
| Deferred tax liabilities, net | 18,825 |
| | 36,656 |
|
| Installment obligations payable | 84,994 |
| | 103,419 |
|
| Total Liabilities | 5,018,805 |
| | 4,929,074 |
|
| | | | |
| Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 16,076,444 and 15,534,372 issued and outstanding as of December 31, 2015, respectively, 15,021,147 and 14,420,392 issued and outstanding as of December 31, 2014, respectively | — |
| | — |
|
| Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 8,908,698 issued and outstanding as of December 31, 2015, 9,963,750 issued and outstanding as of December 31, 2014, respectively | — |
| | — |
|
| Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | — |
| | — |
|
| Additional paid-in-capital | 104,713 |
| | 95,453 |
|
| (Accumulated deficit) retained earnings | (70,765 | ) | | 25,634 |
|
| | 33,948 |
| | 121,087 |
|
| Less: treasury stock at cost, 542,072 and 600,755 shares as of December 31, 2015 and 2014, respectively | (2,138 | ) | | (2,443 | ) |
| Total stockholders’ equity, The J.G. Wentworth Company | 31,810 |
| | 118,644 |
|
| Non-controlling interests | 24,349 |
| | 134,991 |
|
| Total Stockholders’ Equity | 56,159 |
| | 253,635 |
|
| Total Liabilities and Stockholders’ Equity | $ | 5,074,964 |
| | $ | 5,182,709 |
|
The J.G. Wentworth Company
Consolidated Statements of Operations - Unaudited
(Dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| REVENUES | | | |
| | | | |
|
| Interest income | $ | 50,074 |
| | $ | 47,854 |
| | $ | 190,203 |
| | $ | 186,958 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt, and derivatives | 17,061 |
| | 79,343 |
| | 79,620 |
| | 300,702 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 9,645 |
| | — |
| | 18,590 |
| | — |
|
| Changes in mortgage servicing rights, net | 1,101 |
| | | | 1,649 |
| | |
| Gain (loss) on swap terminations, net | 85 |
| | — |
| | (190 | ) | | (628 | ) |
| Servicing, broker, and other fees | 3,526 |
| | 928 |
| | 8,016 |
| | 4,149 |
|
| Loan origination fees | 1,511 |
| | — |
| | 2,543 |
| | — |
|
| Realized and unrealized gains (losses) on marketable securities, net | 1,316 |
| | (853 | ) | | (4,641 | ) | | 888 |
|
| Realized gain on notes receivable, at fair value | — |
| | — |
| | — |
| | 2,098 |
|
| Gain on extinguishment of debt, net | — |
| | — |
| | 593 |
| | 270 |
|
| Other | (3 | ) | | 2 |
| | (16 | ) | | (61 | ) |
| Total Revenues | 84,316 |
| | 127,274 |
| | 296,367 |
| | 494,376 |
|
| | | | | | | | |
| EXPENSES | | | |
| | | | |
|
| Advertising | 14,092 |
| | 16,148 |
| | 63,820 |
| | 68,489 |
|
| Interest expense | 54,036 |
| | 50,055 |
| | 208,545 |
| | 200,798 |
|
| Compensation and benefits | 16,233 |
| | 10,243 |
| | 52,656 |
| | 41,108 |
|
| General and administrative | 6,377 |
| | 4,626 |
| | 21,057 |
| | 18,567 |
|
| Professional and consulting | 5,644 |
| | 4,970 |
| | 21,486 |
| | 18,452 |
|
| Debt issuance | 1,649 |
| | 2,727 |
| | 6,741 |
| | 8,683 |
|
| Securitization debt maintenance | 1,459 |
| | 1,489 |
| | 5,912 |
| | 6,161 |
|
| Provision for losses | 965 |
| | 1,533 |
| | 5,576 |
| | 4,806 |
|
| Direct subservicing costs | 612 |
| | — |
| | 948 |
| | — |
|
| Depreciation and amortization | 1,652 |
| | 1,005 |
| | 4,613 |
| | 4,168 |
|
| Installment obligations expense (income), net | 3,076 |
| | 1,755 |
| | (1,225 | ) | | 5,322 |
|
| Impairment charges and loss on disposal of assets | 91,734 |
| | 69 |
| | 121,594 |
| | 69 |
|
| Total Expenses | 197,529 |
| | 94,620 |
| | 511,723 |
| | 376,623 |
|
| (Loss) income before income taxes | (113,213 | ) | | 32,654 |
| | (215,356 | ) | | 117,753 |
|
| (Benefit) provision for income taxes | (5,793 | ) | | 4,971 |
| | (18,216 | ) | | 21,140 |
|
| Net (loss) income | (107,420 | ) | | 27,683 |
| | (197,140 | ) | | 96,613 |
|
| Less: Net (loss) income attributable to non-controlling interests | (52,446 | ) | | 15,854 |
| | (101,828 | ) | | 65,402 |
|
| Net (loss) income attributable to The J.G. Wentworth Company | $ | (54,974 | ) | | $ | 11,829 |
| | $ | (95,312 | ) | | $ | 31,211 |
|
| | | | | | | | |
| Weighted average shares of Class A common stock outstanding: | | | |
| | | | |
|
| Basic | 15,443,362 |
| | 14,636,520 |
| | 14,690,746 |
| | 12,986,058 |
|
| Diluted | 15,443,362 |
| | 14,640,860 |
| | 14,690,746 |
| | 12,988,781 |
|
| | | | | | | | |
| Net (loss) income per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | | | |
| | | | |
|
| Basic | $ | (3.56 | ) | | $ | 0.81 |
| | $ | (6.49 | ) | | $ | 2.40 |
|
| Diluted | $ | (3.56 | ) | | $ | 0.81 |
| | $ | (6.49 | ) | | $ | 2.40 |
|
Unaudited
The J.G. Wentworth Company
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA and other Non-GAAP Measures Used in this Release and the Related Presentation
We use the Non-GAAP financial measures of Adjusted (Loss) Net Income (“ANI”) and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) as measures of our results from operations. We define ANI as our net (loss) income under U.S. GAAP before non-cash compensation expenses, certain other expenses, provision for or benefit from income taxes, and for our Structured Settlement and Annuity Purchasing ("Structured Settlements") segment, amounts related to the consolidation of the securitization and permanent financing trusts we use to finance the segment’s business. We define Adjusted EBTIDA as ANI before term loan interest expense, debt issuance costs and depreciation and amortization. The Company believes ANI and Adjusted EBTIDA are useful to investors and management as measures of our operating performance, as the operations of the associated variable interest entities do not impact the Structured Settlements segment's performance. In addition, the add-backs described above are consistent with adjustments permitted under our term loan agreement.
We also use the non-GAAP measures of Total Adjusted Revenue and adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the loss on swap termination, net (“Spread Revenue”), as measures of our revenues, which we define as those measures under U.S. GAAP before the amounts related to the consolidation of the securitization and permanent financing trusts we use to finance our Structured Settlements business. We use these measures to measure our revenues because we believe they represent useful measures of our revenues, as the operations of these variable interest entities also do not impact business performance.
You should not consider Adjusted Net (Loss) Income, Adjusted EBITDA, Total Adjusted Revenue, or Spread Revenue 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 (Loss) Income, Adjusted EBITDA, Total Adjusted Revenue and Spread Revenue may not be comparable to other similarly titled measures of other companies.
A reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA, which includes line items for Total Adjusted Revenue and Spread Revenue for the three and twelve months ended December 31, 2015 and 2014 is provided below. Certain prior period numbers have been reclassified to conform with current period's presentation.
The J.G. Wentworth Company
Consolidated
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA - Unaudited
(In thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| | | | | | | | |
| Net (loss) income | $ | (107,420 | ) | | $ | 27,683 |
| | $ | (197,140 | ) | | $ | 96,613 |
|
| | | | | | | | |
| 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 | 8,548 |
| | (25,306 | ) | | 75,802 |
| | (84,955 | ) |
| Elimination of interest income from securitized finance receivables permanent financing trusts | (44,714 | ) | | (41,356 | ) | | (171,773 | ) | | (166,888 | ) |
| Interest income on retained interests in finance receivables | 5,783 |
| | 5,177 |
| | 21,652 |
| | 20,315 |
|
| Servicing income on securitized finance receivables | 1,317 |
| | 1,306 |
| | 5,284 |
| | 5,129 |
|
| Elimination of interest expense on long-term debt related to securitization and permanent financing trusts | 37,800 |
| | 35,247 |
| | 147,723 |
| | 142,907 |
|
| Professional fees relating to securitizations | 1,459 |
| | 1,489 |
| | 5,913 |
| | 6,161 |
|
| Other adjustments: | | | |
| | | | |
|
| Share based compensation | (98 | ) | | 653 |
| | 1,291 |
| | 2,384 |
|
| Income tax (benefit) provision | (5,793 | ) | | 4,971 |
| | (18,216 | ) | | 21,140 |
|
| Impact of 2014-3 prefunding on unsecuritized finance receivables | 24 |
| | (1,566 | ) | | 1,618 |
| | (1,566 | ) |
| Severance, mergers and acquisitions, and consulting expenses | 813 |
| | 765 |
| | 6,041 |
| | 3,736 |
|
| Impairment charges and loss on disposal of assets | 91,734 |
| | — |
| | 121,594 |
| | — |
|
| Other adjustments | 25 |
| | 18 |
| | 817 |
| | (1,383 | ) |
| Adjusted Net (Loss) Income | $ | (10,522 | ) | | $ | 9,081 |
| | $ | 606 |
| | $ | 43,593 |
|
| | | | | | | | |
| Term loan interest expense | 10,193 |
| | 10,209 |
| | 40,386 |
| | 40,281 |
|
| Debt issuance | 1,649 |
| | 2,727 |
| | 6,741 |
| | 8,683 |
|
| Depreciation & amortization | 1,652 |
| | 1,005 |
| | 4,613 |
| | 4,168 |
|
| Adjusted EBITDA | $ | 2,972 |
| | $ | 23,022 |
| | $ | 52,346 |
| | $ | 96,725 |
|
| | | | | | | | |
The J.G. Wentworth Company
Consolidated
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA - Unaudited
For the Three Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
for
Installment
Obligation Payable | |
ANI | | Term Loan Interest Expense | | Debt Issuance Costs | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Interest income | $ | 50,074 |
| | $ | (44,714 | ) | | $ | — |
| | $ | 5,783 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (1,760 | ) | | $ | 9,383 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 9,383 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 17,061 |
| | 8,548 |
| | 24 |
| | |
| | |
| | |
| | |
| | | | |
| | 25,633 |
| | | | | | | | 25,633 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 9,645 |
| | | | | | | | | | | | | | | | | | 9,645 |
| | | | | | | | 9,645 |
|
| Changes in mortgage servicing rights, net | 1,101 |
| | | | | | |
| | |
| | |
| | |
| | | | |
| | 1,101 |
| | | | | | | | 1,101 |
|
| Gain on swap terminations, net | 85 |
| | |
| | | | |
| | |
| | |
| | |
| | | | | | 85 |
| | | | | | | | 85 |
|
| Servicing, broker, and other fees | 3,526 |
| | 1,317 |
| | | | | | | | | | | | | | | | 4,843 |
| | | | | | | | 4,843 |
|
| Loan origination fees | 1,511 |
| | | | | | | | | | | | | | | | | | 1,511 |
| | | | | | | | 1,511 |
|
| Realized and unrealized gains on marketable securities, net | 1,316 |
| | | | | | | | | | | | | | | | (1,316 | ) | | — |
| | | | | | | | — |
|
| Other | (3 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | |
| | (3 | ) | | | | | | | | (3 | ) |
| Total Revenues | $ | 84,316 |
| | $ | (34,849 | ) | | $ | 24 |
| | $ | 5,783 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (3,076 | ) | | $ | 52,198 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 52,198 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Advertising | $ | 14,092 |
| | | | | | | | | | | | | | | | | | $ | 14,092 |
| | | | | | | | $ | 14,092 |
|
| Interest expense | 54,036 |
| | (37,800 | ) | | | | | | | | | | | | | | | | 16,236 |
| | (10,193 | ) | | | | | | 6,043 |
|
| Compensation and benefits | 16,233 |
| | | | | | | | 98 |
| | | | | | | | | | 16,331 |
| | | | | | | | 16,331 |
|
| General and administrative | 6,377 |
| | | | | | | | | | | | (5 | ) | | | | | | 6,372 |
| | | | | | | | 6,372 |
|
| Professional and consulting | 5,644 |
| | | | | | | | | | | | (808 | ) | | | | | | 4,836 |
| | | | | | | | 4,836 |
|
| Debt issuance | 1,649 |
| | | | | | | | | | | | | | | | | | 1,649 |
| | | | (1,649 | ) | | | | — |
|
| Securitization debt maintenance | 1,459 |
| | (1,459 | ) | | | | | | | | | | | | | | | | — |
| | | | | | | | — |
|
| Provision for losses | 965 |
| | (25 | ) | | | | | | | | | | | | | | | | 940 |
| | | | | | | | 940 |
|
| Direct subservicing costs | 612 |
| | | | | | | | | | | | | | | | | | 612 |
| | | | | | | | 612 |
|
| Depreciation and amortization | 1,652 |
| | | | | | | | | | | | | | | | | | 1,652 |
| | | | | | (1,652 | ) | | — |
|
| Installment obligations expense, net | 3,076 |
| | | | | | | | | | | | | | | | (3,076 | ) | | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 91,734 |
| | | | | | | | | | | | | | (91,734 | ) | | | | — |
| | | | | | | | — |
|
| Total Expenses | $ | 197,529 |
| | $ | (39,284 | ) | | $ | — |
| | $ | — |
| | $ | 98 |
| | $ | — |
| | $ | (813 | ) | | $ | (91,734 | ) | | $ | (3,076 | ) | | $ | 62,720 |
| | $ | (10,193 | ) | | $ | (1,649 | ) | | $ | (1,652 | ) | | $ | 49,226 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) Income before income taxes | $ | (113,213 | ) | | $ | 4,435 |
| | $ | 24 |
| | $ | 5,783 |
| | $ | (98 | ) | | $ | — |
| | $ | 813 |
| | $ | 91,734 |
| | $ | — |
| | $ | (10,522 | ) | | $ | 10,193 |
| | $ | 1,649 |
| | $ | 1,652 |
| | $ | 2,972 |
|
| (Benefit) Provision for income taxes | (5,793 | ) | | | | | | | | | | 5,793 |
| | | | | | | | — |
| | | | | | | | — |
|
| Net (Loss) Income | $ | (107,420 | ) | | $ | 4,435 |
| | $ | 24 |
| | $ | 5,783 |
| | $ | (98 | ) | | $ | (5,793 | ) | | $ | 813 |
| | $ | 91,734 |
| | $ | — |
| | $ | (10,522 | ) | | $ | 10,193 |
| | $ | 1,649 |
| | $ | 1,652 |
| | $ | 2,972 |
|
The J.G. Wentworth Company
Structured Settlement and Annuity Purchasing Segment
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA - Unaudited
For the Three Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
for
Installment
Obligation Payable | |
ANI | | Term Loan Interest Expense | | Debt Issuance Costs | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Interest income | $ | 49,641 |
| | $ | (44,714 | ) | | $ | — |
| | $ | 5,783 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (1,760 | ) | | $ | 8,950 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 8,950 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 17,061 |
| | 8,548 |
| | 24 |
| | |
| | |
| | |
| | |
| | | | |
| | 25,633 |
| | | | | | | | 25,633 |
|
| Gain on swap terminations, net | 85 |
| | |
| | | | |
| | |
| | |
| | |
| | | | | | 85 |
| | | | | | | | 85 |
|
| Servicing, broker, and other fees | 1,566 |
| | 1,317 |
| | | | | | | | | | | | | | | | 2,883 |
| | | | | | | | 2,883 |
|
| Loan origination fees | | | | | | | | | | | | | | | | | | | — |
| | | | | | | | — |
|
| Realized and unrealized gains on marketable securities, net | 1,316 |
| | | | | | | | | | | | | | | | (1,316 | ) | | — |
| | | | | | | | — |
|
| Other | (3 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | |
| | (3 | ) | | | | | | | | (3 | ) |
| Total Revenues | $ | 69,666 |
| | $ | (34,849 | ) | | $ | 24 |
| | $ | 5,783 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (3,076 | ) | | $ | 37,548 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 37,548 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Advertising | $ | 12,162 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | $ | 12,162 |
| | | | | | | | $ | 12,162 |
|
| Interest expense | 53,124 |
| | (37,800 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | 15,324 |
| | (10,193 | ) | | | | | | 5,131 |
|
| Compensation and benefits | 8,092 |
| | |
| | | | |
| | 98 |
| | |
| | | | | | |
| | 8,190 |
| | | | | | | | 8,190 |
|
| General and administrative | 4,976 |
| | |
| | | | |
| | |
| | |
| | (5 | ) | | | | |
| | 4,971 |
| | | | | | | | 4,971 |
|
| Professional and consulting | 5,310 |
| | |
| | | | |
| | |
| | |
| | (808 | ) | | | | |
| | 4,502 |
| | | | | | | | 4,502 |
|
| Debt issuance | 1,649 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | 1,649 |
| | | | (1,649 | ) | | | | — |
|
| Securitization debt maintenance | 1,459 |
| | (1,459 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | — |
| | | | | | | | — |
|
| Provision for losses | 377 |
| | (25 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | 352 |
| | | | | | | | 352 |
|
| Depreciation and amortization | 961 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | 961 |
| | | | | | (961 | ) | | — |
|
| Installment obligations expense, net | 3,076 |
| | |
| | | | |
| | |
| | |
| | |
| | | | (3,076 | ) | | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 91,734 |
| | | | | | | | | | | | | | (91,734 | ) | | | | — |
| | | | | | | | — |
|
| Total Expenses | $ | 182,920 |
| | $ | (39,284 | ) | | $ | — |
| | $ | — |
| | $ | 98 |
| | $ | — |
| | $ | (813 | ) | | $ | (91,734 | ) | | $ | (3,076 | ) | | $ | 48,111 |
| | $ | (10,193 | ) | | $ | (1,649 | ) | | $ | (961 | ) | | $ | 35,308 |
|
| | | | | | | | | | | | | | | | | | | | �� | | | | | | | | |
| (Loss) Income before income taxes | $ | (113,254 | ) | | $ | 4,435 |
| | $ | 24 |
| | $ | 5,783 |
| | $ | (98 | ) | | $ | — |
| | $ | 813 |
| | $ | 91,734 |
| | $ | — |
| | $ | (10,563 | ) | | $ | 10,193 |
| | $ | 1,649 |
| | $ | 961 |
| | $ | 2,240 |
|
| (Benefit) Provision for income taxes | (5,465 | ) | | | | | | | | | | 5,465 |
| | | | | | | | — |
| | | | | | | | — |
|
| Net (Loss) Income | $ | (107,789 | ) | | $ | 4,435 |
| | $ | 24 |
| | $ | 5,783 |
| | $ | (98 | ) | | $ | (5,465 | ) | | $ | 813 |
| | $ | 91,734 |
| | $ | — |
| | $ | (10,563 | ) | | $ | 10,193 |
| | $ | 1,649 |
| | $ | 961 |
| | $ | 2,240 |
|
The J.G. Wentworth Company
Home Lending Segment
Reconciliation of Net Income to Adjusted Net Income and Adjusted EBITDA - Unaudited
For the Three Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
for
Installment
Obligation Payable | |
ANI | | Term Loan Interest Expense | | Debt Issuance Costs | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Interest income | $ | 433 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 433 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 433 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 9,645 |
| | | | | | | | | | | | | | | | | | 9,645 |
| | | | | | | | 9,645 |
|
| Changes in mortgage servicing rights, net | 1,101 |
| | | | | | |
| | |
| | |
| | |
| | | | |
| | 1,101 |
| | | | | | | | 1,101 |
|
| Servicing, broker, and other fees | 1,960 |
| | — |
| | | | | | | | | | | | | | | | 1,960 |
| | | | | | | | 1,960 |
|
| Loan origination fees | 1,511 |
| | | | | | | | | | | | | | | | | | 1,511 |
| | | | | | | | 1,511 |
|
| Total Revenues | $ | 14,650 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 14,650 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 14,650 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Advertising | $ | 1,930 |
| | | | | | | | | | | | | | | | | | $ | 1,930 |
| | | | | | | | $ | 1,930 |
|
| Interest expense | 912 |
| | | | | | | | | | | | | | | | | | 912 |
| | | | | | | | 912 |
|
| Compensation and benefits | 8,141 |
| | | | | | | | | | | | | | | | | | 8,141 |
| | | | | | | | 8,141 |
|
| General and administrative | 1,401 |
| | | | | | | | | | | | | | | | | | 1,401 |
| | | | | | | | 1,401 |
|
| Professional and consulting | 334 |
| | | | | | | | | | | | | | | | | | 334 |
| | | | | | | | 334 |
|
| Provision for losses | 588 |
| | | | | | | | | | | | | | | | | | 588 |
| | | | | | | | 588 |
|
| Direct subservicing costs | 612 |
| | | | | | | | | | | | | | | | | | 612 |
| | | | | | | | 612 |
|
| Depreciation and amortization | 691 |
| | | | | | | | | | | | | | | | | | 691 |
| | | | | | (691 | ) | | — |
|
| Total Expenses | $ | 14,609 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 14,609 |
| | $ | — |
| | $ | — |
| | $ | (691 | ) | | $ | 13,918 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | $ | 41 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 41 |
| | $ | — |
| | $ | — |
| | $ | 691 |
| | $ | 732 |
|
| (Benefit) Provision for income taxes | (328 | ) | | | | | | | | | | 328 |
| | | | | | | | — |
| | | | | | | | — |
|
| Net Income | $ | 369 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (328 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 41 |
| | $ | — |
| | $ | — |
| | $ | 691 |
| | $ | 732 |
|
The J.G. Wentworth Company
Consolidated
Reconciliation of Net Income to Adjusted Net Income and Adjusted EBITDA - Unaudited
For the Three Months Ended December 31, 2014
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP Results | | Adjustments to reflect deconsolidation of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest Income on Retained Interests | | Share Based Compensation | | Income Tax | | Severance M&A and Consulting | | Reclassification Associated with Installment Obligation Payable | | Other Adjustments | |
ANI | | Interest Expense | | Debt Issuance Cost | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | |
| Interest income | $ | 47,854 |
| | $ | (41,356 | ) | | $ | — |
| | $ | 5,177 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (2,608 | ) | | $ | — |
| | $ | 9,067 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 9,067 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 79,343 |
| | (25,306 | ) | | (1,566 | ) | | |
| | |
| | |
| | |
| | |
| | |
| | 52,471 |
| | | | | | | | 52,471 |
|
| Servicing, broker, and other fees | 928 |
| | 1,306 |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 2,234 |
| | | | | | | | 2,234 |
|
| Realized and unrealized losses on marketable securities, net | (853 | ) | | |
| | | | |
| | |
| | |
| | |
| | 853 |
| | |
| | — |
| | | | | | | | — |
|
| Other | 2 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 2 |
| | | | | | | | 2 |
|
| Total Revenues | $ | 127,274 |
| | $ | (65,356 | ) | | $ | (1,566 | ) | | $ | 5,177 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (1,755 | ) | | $ | — |
| | $ | 63,774 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 63,774 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | |
| Advertising | $ | 16,148 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | $ | 16,148 |
| | | | | | | | $ | 16,148 |
|
| Interest expense | 50,055 |
| | (35,247 | ) | | | | |
| | |
| | |
| | |
| | |
| | |
| | 14,808 |
| | (10,209 | ) | | | | | | 4,599 |
|
| Compensation and benefits | 10,243 |
| | |
| | | | |
| | (653 | ) | | |
| | (62 | ) | | |
| | |
| | 9,528 |
| | | | | | | | 9,528 |
|
| General and administrative | 4,626 |
| | |
| | | | |
| | |
| | |
| | | | |
| | (18 | ) | | 4,608 |
| | | | | | | | 4,608 |
|
| Professional and consulting | 4,970 |
| | |
| | | | |
| | |
| | |
| | (703 | ) | | |
| | | | 4,267 |
| | | | | | | | 4,267 |
|
| Debt issuance | 2,727 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 2,727 |
| | | | (2,727 | ) | | | | — |
|
| Securitization debt maintenance | 1,489 |
| | (1,489 | ) | | | | |
| | |
| | |
| | |
| | |
| | |
| | — |
| | | | | | | | — |
|
| Provision for losses | 1,533 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 1,533 |
| | | | | | | | 1,533 |
|
| Depreciation and amortization | 1,005 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 1,005 |
| | | | | | (1,005 | ) | | — |
|
| Installment obligations expense, net | 1,755 |
| | |
| | | | |
| | |
| | |
| | |
| | (1,755 | ) | | |
| | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 69 |
| | | | | | | | | | | | | | | | | | 69 |
| | | | | | | | 69 |
|
| Total Expenses | $ | 94,620 |
| | $ | (36,736 | ) | | $ | — |
| | $ | — |
| | $ | (653 | ) | | $ | — |
| | $ | (765 | ) | | $ | (1,755 | ) | | $ | (18 | ) | | $ | 54,693 |
| | $ | (10,209 | ) | | $ | (2,727 | ) | | $ | (1,005 | ) | | $ | 40,752 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | $ | 32,654 |
| | $ | (28,620 | ) | | $ | (1,566 | ) | | $ | 5,177 |
| | $ | 653 |
| | | | $ | 765 |
| | $ | — |
| | $ | 18 |
| | $ | 9,081 |
| | $ | 10,209 |
| | $ | 2,727 |
| | $ | 1,005 |
| | $ | 23,022 |
|
| Provision for income taxes | 4,971 |
| | | | | | | | | | (4,971 | ) | | | | | | | | — |
| | | | | | | | — |
|
| Net Income | $ | 27,683 |
| | $ | (28,620 | ) | | $ | (1,566 | ) | | $ | 5,177 |
| | $ | 653 |
| | $ | 4,971 |
| | $ | 765 |
| | $ | — |
| | $ | 18 |
| | $ | 9,081 |
| | $ | 10,209 |
| | $ | 2,727 |
| | $ | 1,005 |
| | $ | 23,022 |
|
The J.G. Wentworth Company
Consolidated
Reconciliation of Net (Loss) Income to Adjusted Net Income and Adjusted EBITDA - Unaudited
For the Twelve Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Adjustments
to reflect
deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
Associated with
Installment
Obligation Payable | | Other
Adjustments | |
ANI | | Interest Expense | | Debt Issuance Cost | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | | | | | | | |
| Interest income | $ | 190,203 |
| | $ | (171,773 | ) | | $ | — |
| | $ | 21,652 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (3,416 | ) | | $ | — |
| | $ | 36,666 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 36,666 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 79,620 |
| | 75,802 |
| | 1,618 |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | 157,040 |
| | | | | | | | 157,040 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 18,590 |
| | | | | | | | | | | | | | | | | | | | 18,590 |
| | | | | | | | 18,590 |
|
| Changes in mortgage servicing rights, net | 1,649 |
| | | | | | |
| | |
| | |
| | |
| | | | |
| | |
| | 1,649 |
| | | | | | | | 1,649 |
|
| Loss on swap terminations, net | (190 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | | | |
| | (190 | ) | | | | | | | | (190 | ) |
| Servicing, broker, and other fees | 8,016 |
| | 5,284 |
| | | | | | | | | | | | | | | | | | 13,300 |
| | | | | | | | 13,300 |
|
| Loan origination fees | 2,543 |
| | | | | | | | | | | | | | | | | | | | 2,543 |
| | | | | | | | 2,543 |
|
| Realized and unrealized losses on marketable securities, net | (4,641 | ) | | | | | | | | | | | | | | | | 4,641 |
| | | | — |
| | | | | | | | — |
|
| Gain on extinguishment of debt, net | 593 |
| | | | | | | | | | | | | | | | | | | | 593 |
| | | | | | | | 593 |
|
| Other | (16 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | (16 | ) | | | | | | | | (16 | ) |
| Total Revenues | $ | 296,367 |
| | $ | (90,687 | ) | | $ | 1,618 |
| | $ | 21,652 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1,225 |
| | $ | — |
| | $ | 230,175 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 230,175 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | | | | | | | |
| Advertising | $ | 63,820 |
| | | | | | | | | | | | | | | | | | | | $ | 63,820 |
| | | | | | | | $ | 63,820 |
|
| Interest expense | 208,545 |
| | (147,723 | ) | | | | | | | | | | | | | | | | | | 60,822 |
| | (40,386 | ) | | | | | | 20,436 |
|
| Compensation and benefits | 52,656 |
| | | | | | | | (1,291 | ) | | | | (2,272 | ) | | | | | | | | 49,093 |
| | | | | | | | 49,093 |
|
| General and administrative | 21,057 |
| | | | | | | | | | | | (23 | ) | | | | | | | | 21,034 |
| | | | | | | | 21,034 |
|
| Professional and consulting | 21,486 |
| | | | | | | | | | | | (3,746 | ) | | | | | | (792 | ) | | 16,948 |
| | | | | | | | 16,948 |
|
| Debt issuance | 6,741 |
| | | | | | | | | | | | | | | | | | | | 6,741 |
| | | | (6,741 | ) | | | | — |
|
| Securitization debt maintenance | 5,912 |
| | (5,913 | ) | | | | | | | | | | | | | | | | | | (1 | ) | | | | | | | | (1 | ) |
| Provision for losses | 5,576 |
| | (25 | ) | | | | | | | | | | | | | | | | | | 5,551 |
| | | | | | | | 5,551 |
|
| Direct subservicing costs | 948 |
| | | | | | | | | | | | | | | | | | | | 948 |
| | | | | | | | 948 |
|
| Depreciation and amortization | 4,613 |
| | | | | | | | | | | | | | | | | | | | 4,613 |
| | | | | | (4,613 | ) | | — |
|
| Installment obligations (income), net | (1,225 | ) | | | | | | | | | | | | | | | | 1,225 |
| | | | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 121,594 |
| | | | | | | | | | | | | | (121,594 | ) | | | | | | — |
| | | | | | | | — |
|
| Total Expenses | $ | 511,723 |
| | $ | (153,661 | ) | | $ | — |
| | $ | — |
| | $ | (1,291 | ) | | $ | — |
| | $ | (6,041 | ) | | $ | (121,594 | ) | | $ | 1,225 |
| | $ | (792 | ) | | $ | 229,569 |
| | $ | (40,386 | ) | | $ | (6,741 | ) | | $ | (4,613 | ) | | $ | 177,829 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) Income before income taxes | $ | (215,356 | ) | | $ | 62,974 |
| | $ | 1,618 |
| | $ | 21,652 |
| | $ | 1,291 |
| |
|
| | $ | 6,041 |
| | $ | 121,594 |
| |
|
| | $ | 792 |
| | $ | 606 |
| | $ | 40,386 |
| | $ | 6,741 |
| | $ | 4,613 |
| | $ | 52,346 |
|
| (Benefit) Provision for income taxes | (18,216 | ) | | | | | | | | | | 18,216 |
| | | | | | | | | | — |
| | | | | | | | — |
|
| Net (Loss) Income | $ | (197,140 | ) | | $ | 62,974 |
| | $ | 1,618 |
| | $ | 21,652 |
| | $ | 1,291 |
| | $ | (18,216 | ) | | $ | 6,041 |
| | $ | 121,594 |
| | $ | — |
| | $ | 792 |
| | $ | 606 |
| | $ | 40,386 |
| | $ | 6,741 |
| | $ | 4,613 |
| | $ | 52,346 |
|
The J.G. Wentworth Company
Structured Settlement and Annuity Purchasing Segment
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income and Adjusted EBITDA - Unaudited
For the Twelve Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Adjustments
to reflect
deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
Associated with
Installment
Obligation Payable | | Other
Adjustments | |
ANI | | Interest Expense | | Debt Issuance Cost | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | | | | | | | |
| Interest income | $ | 189,394 |
| | $ | (171,773 | ) | | $ | — |
| | $ | 21,652 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (3,416 | ) | | $ | — |
| | $ | 35,857 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 35,857 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 79,620 |
| | 75,802 |
| | 1,618 |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | 157,040 |
| | | | | | | | 157,040 |
|
| Loss on swap terminations, net | (190 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | | | |
| | (190 | ) | | | | | | | | (190 | ) |
| Servicing, broker, and other fees | 4,875 |
| | 5,284 |
| | | | | | | | | | | | | | | | | | 10,159 |
| | | | | | | | 10,159 |
|
| Realized and unrealized losses on marketable securities, net | (4,641 | ) | | | | | | | | | | | | | | | | 4,641 |
| | | | — |
| | | | | | | | — |
|
| Gain on extinguishment of debt, net | 593 |
| | | | | | | | | | | | | | | | | | | | 593 |
| | | | | | | | 593 |
|
| Other | (16 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | (16 | ) | | | | | | | | (16 | ) |
| Total Revenues | $ | 269,635 |
| | $ | (90,687 | ) | | $ | 1,618 |
| | $ | 21,652 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1,225 |
| | $ | — |
| | $ | 203,443 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 203,443 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | �� | | | | | | |
| Advertising | $ | 59,961 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | $ | 59,961 |
| | | | | | | | $ | 59,961 |
|
| Interest expense | 207,099 |
| | (147,723 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | |
| | 59,376 |
| | (40,386 | ) | | | | | | 18,990 |
|
| Compensation and benefits | 38,997 |
| | |
| | | | |
| | (1,291 | ) | | |
| | (2,272 | ) | | | | |
| | |
| | 35,434 |
| | | | | | | | 35,434 |
|
| General and administrative | 18,679 |
| | |
| | | | |
| | |
| | |
| | (23 | ) | | | | |
| | | | 18,656 |
| | | | | | | | 18,656 |
|
| Professional and consulting | 20,801 |
| | |
| | | | |
| | |
| | |
| | (3,746 | ) | | | | |
| | (792 | ) | | 16,263 |
| | | | | | | | 16,263 |
|
| Debt issuance | 6,741 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | 6,741 |
| | | | (6,741 | ) | | | | — |
|
| Securitization debt maintenance | 5,912 |
| | (5,913 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | |
| | (1 | ) | | | | | | | | (1 | ) |
| Provision for losses | 4,546 |
| | (25 | ) | | | | |
| | |
| | |
| | |
| | | | |
| | |
| | 4,521 |
| | | | | | | | 4,521 |
|
| Depreciation and amortization | 3,878 |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | 3,878 |
| | | | | | (3,878 | ) | | — |
|
| Installment obligations (income), net | (1,225 | ) | | |
| | | | |
| | |
| | |
| | |
| | | | 1,225 |
| | |
| | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 121,594 |
| | | | | | | | | | | | | | (121,594 | ) | | | | | | — |
| | | | | | | | — |
|
| Total Expenses | $ | 486,983 |
| | $ | (153,661 | ) | | $ | — |
| | $ | — |
| | $ | (1,291 | ) | | $ | — |
| | $ | (6,041 | ) | | $ | (121,594 | ) | | $ | 1,225 |
| | $ | (792 | ) | | $ | 204,829 |
| | $ | (40,386 | ) | | $ | (6,741 | ) | | $ | (3,878 | ) | | $ | 153,824 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) Income before income taxes | $ | (217,348 | ) | | $ | 62,974 |
| | $ | 1,618 |
| | $ | 21,652 |
| | $ | 1,291 |
| | $ | — |
| | $ | 6,041 |
| | $ | 121,594 |
| | $ | — |
| | $ | 792 |
| | $ | (1,386 | ) | | $ | 40,386 |
| | $ | 6,741 |
| | $ | 3,878 |
| | $ | 49,619 |
|
| (Benefit) Provision for income taxes | (18,614 | ) | | | | | | | | | | 18,614 |
| | | | | | | | | | — |
| | | | | | | | — |
|
| Net (Loss) Income | $ | (198,734 | ) | | $ | 62,974 |
| | $ | 1,618 |
| | $ | 21,652 |
| | $ | 1,291 |
| | $ | (18,614 | ) | | $ | 6,041 |
| | $ | 121,594 |
| | $ | — |
| | $ | 792 |
| | $ | (1,386 | ) | | $ | 40,386 |
| | $ | 6,741 |
| | $ | 3,878 |
| | $ | 49,619 |
|
The J.G. Wentworth Company
Home Lending Segment
Reconciliation of Net Income to Adjusted Net Income and Adjusted EBITDA - Unaudited
For the Twelve Months Ended December 31, 2015
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP
Results | | Adjustments
to reflect
deconsolidation
of securitizations | | Impact of Prefunding on Unsecuritized Finance Receivables | | Interest
Income on
Retained
Interests | | Share
Based
Compensation | | Income
Tax | | Severance
M&A
and
Consulting | | Impairment Charges | | Reclassification
Associated with
Installment
Obligation Payable | |
ANI | | Interest Expense | | Debt Issuance Cost | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Interest income | $ | 809 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 809 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 809 |
|
| Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 18,590 |
| | | | | | | | | | | | | | | | | | 18,590 |
| | | | | | | | 18,590 |
|
| Changes in mortgage servicing rights, net | 1,649 |
| | | | | | |
| | |
| | |
| | |
| | | | |
| | 1,649 |
| | | | | | | | 1,649 |
|
| Servicing, broker, and other fees | 3,141 |
| | | | | | | | | | | | | | | | | | 3,141 |
| | | | | | | | 3,141 |
|
| Loan origination fees | 2,543 |
| | | | | | | | | | | | | | | | | | 2,543 |
| | | | | | | | 2,543 |
|
| Total Revenues | $ | 26,732 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 26,732 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 26,732 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | | | |
| | |
| | | | | | | | |
| Advertising | $ | 3,859 |
| | | | | | | | | | | | | | | | | | $ | 3,859 |
| | | | | | | | $ | 3,859 |
|
| Interest expense | 1,446 |
| | | | | | | | | | | | | | | | | | 1,446 |
| | | | | | | | 1,446 |
|
| Compensation and benefits | 13,659 |
| | | | | | | | | | | | | | | | | | 13,659 |
| | | | | | | | 13,659 |
|
| General and administrative | 2,378 |
| | | | | | | | | | | | | | | | | | 2,378 |
| | | | | | | | 2,378 |
|
| Professional and consulting | 685 |
| | | | | | | | | | | | | | | | | | 685 |
| | | | | | | | 685 |
|
| Provision for losses | 1,030 |
| | | | | | | | | | | | | | | | | | 1,030 |
| | | | | | | | 1,030 |
|
| Direct subservicing costs | 948 |
| | | | | | | | | | | | | | | | | | 948 |
| | | | | | | | 948 |
|
| Depreciation and amortization | 735 |
| | | | | | | | | | | | | | | | | | 735 |
| | | | | | (735 | ) | | — |
|
| Total Expenses | $ | 24,740 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 24,740 |
| | $ | — |
| | $ | — |
| | $ | (735 | ) | | $ | 24,005 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | $ | 1,992 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1,992 |
| | $ | — |
| | $ | — |
| | $ | 735 |
| | $ | 2,727 |
|
| Provision for income taxes | 398 |
| | | | | | | | | | (398 | ) | | | | | | | | — |
| | | | | | | | — |
|
| Net Income | $ | 1,594 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 398 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1,992 |
| | $ | — |
| | $ | — |
| | $ | 735 |
| | $ | 2,727 |
|
The J.G. Wentworth Company
Consolidated
Reconciliation of Net Income to Adjusted Net Income and Adjusted EBITDA - Unaudited
For the Twelve Months Ended December 31, 2014
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
GAAP Results | | Adjustments to reflect deconsolidation of securitizations | | Impact of 2014-3 Prefunding on Unsecuritized Finance Receivables | | Interest Income on Retained Interests | | Share Based Compensation | | Income Tax | | Severance M&A and Consulting | | Reclassification Associated with Installment Obligation Payable | | Other Adjustments | |
ANI | | Interest Expense | | Debt Issuance Cost | | Depreciation & Amortization | | Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| REVENUES | |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | |
| Interest income | $ | 186,958 |
| | $ | (166,888 | ) | | $ | — |
| | $ | 20,315 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (4,434 | ) | | $ | 6 |
| | $ | 35,957 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 35,957 |
|
| Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 300,702 |
| | (84,955 | ) | | (1,566 | ) | | |
| | |
| | |
| | |
| | |
| | |
| | 214,181 |
| | | | | | | | 214,181 |
|
| Loss on swap terminations, net | (628 | ) | | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | (628 | ) | | | | | | | | (628 | ) |
| Servicing, broker, and other fees | 4,149 |
| | 5,129 |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 9,278 |
| | | | | | | | 9,278 |
|
| Realized and unrealized gains on marketable securities, net | 888 |
| | |
| | | | |
| | |
| | |
| | |
| | (888 | ) | | |
| | — |
| | | | | | | | — |
|
| Realized gain on notes receivable, at fair value | 2,098 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | (2,098 | ) | | — |
| | | | | | | | — |
|
| Gain on debt extinguishment | 270 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 270 |
| | | | | | | | 270 |
|
| Other | (61 | ) | | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | (61 | ) | | | | | | | | (61 | ) |
| Total Revenues | $ | 494,376 |
| | $ | (246,714 | ) | | $ | (1,566 | ) | | $ | 20,315 |
|
| $ | — |
| | $ | — |
| | $ | — |
| | $ | (5,322 | ) | | $ | (2,092 | ) | | $ | 258,997 |
| | — |
| | — |
| | — |
| | $ | 258,997 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EXPENSES | |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | |
| Advertising | $ | 68,489 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | $ | 68,489 |
| | | | | | | | $ | 68,489 |
|
| Interest expense | 200,798 |
| | (142,907 | ) | | | | |
| | |
| | |
| | |
| | |
| | |
| | 57,891 |
| | (40,281 | ) | | | | | | 17,610 |
|
| Compensation and benefits | 41,108 |
| | |
| | | | |
| | (2,384 | ) | | |
| | (1,962 | ) | | |
| | |
| | 36,762 |
| | | | | | | | 36,762 |
|
| General and administrative | 18,567 |
| | |
| | | | |
| | |
| | |
| | (234 | ) | | |
| | (18 | ) | | 18,315 |
| | | | | | | | 18,315 |
|
| Professional and consulting | 18,452 |
| | |
| | | | |
| | |
| | |
| | (1,540 | ) | | |
| | (691 | ) | | 16,221 |
| | | | | | | | 16,221 |
|
| Debt issuance | 8,683 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 8,683 |
| | | | (8,683 | ) | | | | — |
|
| Securitization debt maintenance | 6,161 |
| | (6,161 | ) | | | | |
| | |
| | |
| | |
| | |
| | |
| | — |
| | | | | | | | — |
|
| Provision for losses | 4,806 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 4,806 |
| | | | | | | | 4,806 |
|
| Depreciation and amortization | 4,168 |
| | |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | 4,168 |
| | | | | | (4,168 | ) | | — |
|
| Installment obligations expense, net | 5,322 |
| | |
| | | | |
| | |
| | |
| | |
| | (5,322 | ) | | |
| | — |
| | | | | | | | — |
|
| Impairment charges and loss on disposal of assets | 69 |
| | | | | | | | | | | | | | | | | | 69 |
| | | | | | | | 69 |
|
| Total Expenses | $ | 376,623 |
| | $ | (149,068 | ) | | $ | — |
| | $ | — |
| | $ | (2,384 | ) | | $ | — |
| | $ | (3,736 | ) | | $ | (5,322 | ) | | $ | (709 | ) | | $ | 215,404 |
| | (40,281 | ) | | (8,683 | ) | | (4,168 | ) | | $ | 162,272 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | $ | 117,753 |
| | $ | (97,646 | ) | | $ | (1,566 | ) | | $ | 20,315 |
| | $ | 2,384 |
| | $ | — |
| | $ | 3,736 |
| | $ | — |
| | $ | (1,383 | ) | | $ | 43,593 |
| | 40,281 |
| | 8,683 |
| | 4,168 |
| | $ | 96,725 |
|
| Provision for income taxes | 21,140 |
| | | | | | | | | | (21,140 | ) | | | | | | | | — |
| | | | | | | | — |
|
| Net Income | $ | 96,613 |
| | $ | (97,646 | ) | | $ | (1,566 | ) | | $ | 20,315 |
| | $ | 2,384 |
| | $ | 21,140 |
| | $ | 3,736 |
| | $ | — |
| | $ | (1,383 | ) | | $ | 43,593 |
| | 40,281 |
| | 8,683 |
| | 4,168 |
| | $ | 96,725 |
|
The J.G. Wentworth Company
Consolidated Key Metrics Statistics
Unaudited
(In thousands, except shares and per share data)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Consolidated | | | | | | | |
| | | | | | | | |
| Net Income (Loss) | $ | (107,420 | ) | | $ | 27,683 |
| | $ | (197,140 | ) | | $ | 96,613 |
|
| Net Income (Loss) Attributable to The J.G. Wentworth Company | $ | (54,974 | ) | | $ | 11,829 |
| | $ | (95,312 | ) | | $ | 31,211 |
|
| ANI | $ | (10,522 | ) | | $ | 9,081 |
| | $ | 606 |
| | $ | 43,593 |
|
| | | | | | | | |
| Weighted Average Diluted Shares | 15,443,362 |
| | 14,640,860 |
| | 14,690,746 |
| | 12,988,781 |
|
| | | | | | | | |
| All-in Shares (1) | 28,742,707 |
| | 29,019,913 |
| | 28,422,016 |
| | 29,347,498 |
|
| | | | | | | | |
| Diluted EPS | $ | (3.56 | ) | | $ | 0.81 |
| | $ | (6.49 | ) | | $ | 2.40 |
|
| ANI EPS (2) | $ | (0.37 | ) | | $ | 0.31 |
| | $ | 0.02 |
| | $ | 1.49 |
|
| | | | | | | | |
| Structured Settlement and Annuity Purchasing Segment | | | | | | | |
| Total Receivables Balance (TRB) Purchases | | | | | | | |
| Guaranteed structured settlements, annuities and lotteries | $ | 200,708 |
| | $ | 234,084 |
| | $ | 879,159 |
| | $ | 939,050 |
|
| Life contingent structured settlements and annuities | 23,499 |
| | 25,107 |
| | 97,696 |
| | 111,590 |
|
| Pre-settlement fundings | — |
| | 7,021 |
| | 10,763 |
| | 27,155 |
|
| Total TRB Purchases | $ | 224,207 |
| | $ | 266,212 |
| | $ | 987,618 |
| | $ | 1,077,795 |
|
| | | | | | | | |
| Home Lending segment | | | | | | | |
| Locked - Units | 2,751 |
| | N/A |
| | 5,085 |
| | N/A |
|
| Locked - Loan Volume | $ | 705,189 |
| | N/A |
| | $ | 1,290,587 |
| | N/A |
|
| | | | | | | | |
| Closed - Units | 1,887 |
| | N/A |
| | 3,291 |
| | N/A |
|
| Closed - Loan Volume | $ | 490,285 |
| | N/A |
| | $ | 843,208 |
| | N/A |
|
| |
| (1) | Represents the weighted average number of outstanding shares of Class A common stock if all Common Interests in The J.G. Wentworth Company, LLC were exchanged. Calculated as the sum of: (a) the weighted average number of Common Interests outstanding and (b) the impact of dilutive potential common shares. |
| |
| (2) | ANI EPS is defined as ANI / All-in Shares |
N/A Not applicable
