Delaware | 001-36170 | 46-3037859 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
201 King of Prussia Road, Suite 501, Radnor, Pennsylvania | 19087-5148 | |||
(Address of principal executive offices) | (Zip Code) |
Exhibit No. | Description | |
99.1 | Press Release, dated March 12, 2015, issued by The J.G. Wentworth Company |
THE J.G. WENTWORTH COMPANY | ||||
By: | /s/ John R. Schwab | |||
Name: | John R. Schwab | |||
Title: | Executive Vice President & Chief Financial Officer | |||
Dated: March 12, 2015 |
Exhibit No. | Description | |
99.1 | Press Release, dated March 12, 2015, issued by The J.G. Wentworth Company |
• | Total Receivables Balance, or TRB, purchases were $266.2 million, as compared to $260.5 million in the fourth quarter of 2013. |
• | Adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the gain (loss) on swap terminations*, ("Spread Revenue"*), was $52.5 million, as compared to $44.6 million in the fourth quarter of 2013. |
• | Adjusted Net Income*, or ANI, decreased to $9.1 million, as compared to $11.2 million in the fourth quarter of 2013, which was driven primarily by the $14.2 million gain on debt extinguishment in the fourth quarter of 2013, offset by lower interest expense in the fourth quarter of 2014. |
• | Revenues were $127.3 million, an increase of 19.4% from revenues of $106.6 million in the fourth quarter of 2013, due primarily to the impact of decreasing cost of funds on unrealized gains on VIE and other finance receivables, long-term debt and derivatives. |
• | Net income increased to $27.7 million, as compared to a loss of $5.4 million in the fourth quarter of 2013, due primarily to an increase in revenues, lower interest expense, and the loss on disposal/impairment of fixed assets in 2013. |
• | Total Receivables Balance, or TRB, purchases were $1,077.8 million, as compared to $1,125.0 million in 2013. |
• | Spread Revenue* was $213.6 million, as compared to $210.6 million in 2013. |
• | Adjusted Net Income*, or ANI, decreased to $43.6 million, as compared to $46.6 million in 2013, which was driven primarily by the $14.2 million gain on debt extinguishment in 2013, offset by lower interest expense in 2014. |
• | Revenues were $494.4 million, an increase of 7.6% from revenues of $459.6 million in 2013, due primarily to a $47.9 million increase in unrealized gains on VIE and other finance receivables, long-term debt and derivatives and a $14.5 million increase in interest income. This was partially offset by a $14.4 million decrease in realized and unrealized gains on marketable securities, net, and a $14.2 million gain on extinguishment of debt in 2013. |
• | Net income increased to $96.6 million, as compared to $61.8 million in 2013, primarily due to an increase in unrealized gains on VIE and other finance receivables, long-term debt and derivatives that resulted from a more favorable movement in the fair value interest rate used to value our finance receivables. These increases were offset by an increase in interest expense. |
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 41,648 | $ | 39,061 | |||
Restricted cash and investments | 198,206 | 109,338 | |||||
VIE finance receivables, at fair market value | 4,422,033 | 3,818,704 | |||||
Other finance receivables, at fair market value | 101,802 | 51,945 | |||||
VIE finance receivables, net of allowances for losses of $7,674 and $6,443, respectively | 113,489 | 117,826 | |||||
Other finance receivables, net of allowances for losses of $2,454 and $1,899, respectively | 17,803 | 15,166 | |||||
Notes receivable, at fair market value | — | 5,610 | |||||
Other receivables, net of allowances for losses of $204 and $243, respectively | 14,165 | 13,529 | |||||
Fixed assets, net of accumulated depreciation of $5,976 and $4,544, respectively | 3,758 | 3,112 | |||||
Intangible assets, net of accumulated amortization of $20,273 and $17,781, respectively | 45,436 | 47,878 | |||||
Goodwill | 84,993 | 84,993 | |||||
Marketable securities | 103,419 | 121,954 | |||||
Deferred tax assets | 2,170 | 1,830 | |||||
Other assets | 33,787 | 41,151 | |||||
Total Assets | $ | 5,182,709 | $ | 4,472,097 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Accounts payable | $ | 5,301 | $ | 3,903 | |||
Accrued expenses | 13,955 | 21,181 | |||||
Accrued interest | 17,416 | 14,485 | |||||
VIE derivative liabilities, at fair market value | 75,706 | 70,296 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 19,339 | 41,274 | |||||
VIE long-term debt | 181,558 | 150,802 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 4,031,864 | 3,431,283 | |||||
Term loan payable | 437,183 | 434,184 | |||||
Other liabilities | 6,677 | 7,646 | |||||
Deferred tax liabilities | 36,656 | 1,707 | |||||
Installment obligations payable | 103,419 | 121,954 | |||||
Total Liabilities | 4,929,074 | 4,298,715 | |||||
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized; Issued and outstanding at December 31, 2014 - 15,021,147 and 14,420,392; December 31, 2013 - 11,220,358 and 11,216,429 | — | — | |||||
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized; Issued and outstanding at December 31, 2014 - 9,963,750; December 31, 2013 - 14,001,583 and 13,984,065 | — | — | |||||
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized; Issued and outstanding at December 31, 2014 and December 31, 2013 - 0 | — | — | |||||
Additional paid-in-capital | 95,453 | 70,236 | |||||
Retained earnings (accumulated deficit) | 25,634 | (5,577 | ) | ||||
Accumulated other comprehensive income | — | 612 | |||||
121,087 | 65,271 | ||||||
Less: Treasury stock at cost; purchased at December 31, 2014 - 600,755; December 31, 2013 - 3,929 | (2,443 | ) | — | ||||
Total stockholders’ equity, The J.G. Wentworth Company | 118,644 | 65,271 | |||||
Non-controlling interests | 134,991 | 108,111 | |||||
Total Stockholders’ Equity | 253,635 | 173,382 | |||||
Total Liabilities and Stockholders’ Equity | $ | 5,182,709 | $ | 4,472,097 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES | |||||||||||||||
Interest income | $ | 47,854 | $ | 46,130 | $ | 186,958 | $ | 172,423 | |||||||
Unrealized gains on VIE and other finance receivables, long-term debt, and derivatives | 79,343 | 38,733 | 300,702 | 252,801 | |||||||||||
Gain (loss) on swap terminations, net | — | (151 | ) | (628 | ) | 200 | |||||||||
Servicing, broker, and other fees | 928 | 1,585 | 4,149 | 5,276 | |||||||||||
Realized and unrealized gains (losses) on marketable securities, net | (853 | ) | 4,776 | 888 | 15,299 | ||||||||||
Realized gain (loss) on notes receivable, at fair value | — | — | 2,098 | (1,862 | ) | ||||||||||
Gain on debt extinguishment, net | — | 14,217 | 270 | 14,217 | |||||||||||
Other | 2 | 1,266 | (61 | ) | 1,209 | ||||||||||
Total Revenues | 127,274 | 106,556 | 494,376 | 459,563 | |||||||||||
EXPENSES | |||||||||||||||
Advertising | 16,148 | 18,639 | 68,489 | 70,304 | |||||||||||
Interest expense | 50,055 | 53,061 | 200,798 | 193,035 | |||||||||||
Compensation and benefits | 10,243 | 10,101 | 41,108 | 42,595 | |||||||||||
General and administrative | 4,626 | 5,298 | 18,567 | 20,179 | |||||||||||
Professional and consulting | 4,970 | 4,914 | 18,452 | 18,820 | |||||||||||
Debt issuance | 2,727 | 3,275 | 8,683 | 8,930 | |||||||||||
Securitization debt maintenance | 1,489 | 1,565 | 6,161 | 6,091 | |||||||||||
Provision for losses on finance receivables | 1,533 | 1,321 | 4,806 | 5,695 | |||||||||||
Depreciation and amortization | 1,005 | 1,472 | 4,168 | 5,703 | |||||||||||
Installment obligations expense (income), net | 1,755 | 6,827 | 5,322 | 19,647 | |||||||||||
Loss on disposal/impairment of fixed assets | 69 | 4,200 | 69 | 4,200 | |||||||||||
Total Expenses | 94,620 | 110,673 | 376,623 | 395,199 | |||||||||||
Income (loss) before income taxes | 32,654 | (4,117 | ) | 117,753 | 64,364 | ||||||||||
Provision for income taxes | 4,971 | 1,245 | 21,140 | 2,546 | |||||||||||
Net Income (Loss) | 27,683 | (5,362 | ) | 96,613 | 61,818 | ||||||||||
Less: Net income attributable to non-controlling interests | 15,854 | 215 | 65,402 | 67,395 | |||||||||||
Net Income (Loss) Attributable to The J.G. Wentworth Company | $ | 11,829 | $ | (5,577 | ) | $ | 31,211 | $ | (5,577 | ) | |||||
Weighted average shares of Class A common stock outstanding: | |||||||||||||||
Basic | 14,636,520 | 10,395,574 | 12,986,058 | 10,395,574 | |||||||||||
Diluted | 14,640,860 | 10,395,574 | 12,988,781 | 10,395,574 | |||||||||||
Net income (loss) per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | |||||||||||||||
Basic | $ | 0.81 | $ | (0.54 | ) | $ | 2.40 | $ | (0.54 | ) | |||||
Diluted | $ | 0.81 | $ | (0.54 | ) | $ | 2.40 | $ | (0.54 | ) |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net Income (Loss) | $ | 27,683 | $ | (5,362 | ) | $ | 96,613 | $ | 61,818 | ||||||
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 | (25,306 | ) | 6,055 | (84,955 | ) | (42,358 | ) | ||||||||
Elimination of interest income from securitized finance receivables permanent financing trusts | (41,356 | ) | (40,349 | ) | (166,888 | ) | (150,945 | ) | |||||||
Interest income on retained interests in finance receivables | 5,177 | 4,865 | 20,315 | 18,709 | |||||||||||
Servicing income on securitized finance receivables | 1,306 | 1,303 | 5,129 | 5,548 | |||||||||||
Elimination of interest expense on long-term debt related to securitization and permanent financing trusts | 35,247 | 34,763 | 142,907 | 128,226 | |||||||||||
Professional fees relating to securitizations | 1,489 | 1,563 | 6,161 | 6,198 | |||||||||||
Other adjustments: | |||||||||||||||
Share based compensation | 653 | (60 | ) | 2,384 | 1,452 | ||||||||||
Income tax provision | 4,971 | 1,245 | 21,140 | 2,546 | |||||||||||
Impact of 2014-3 prefunding on unsecuritized finance receivables | (1,566 | ) | — | (1,566 | ) | — | |||||||||
Severance, M & A, and consulting expenses | 765 | 1,020 | 3,736 | 5,416 | |||||||||||
Other non-recurring items | 18 | 6,121 | (1,383 | ) | 10,004 | ||||||||||
Adjusted Net Income | $ | 9,081 | $ | 11,164 | $ | 43,593 | $ | 46,614 | |||||||
Other Data: | |||||||||||||||
Securitized Product Total Receivables Balance (TRB) Purchases (1) | $ | 234,084 | $ | 214,437 | $ | 939,050 | $ | 946,413 | |||||||
Life Contingent Purchases | 25,107 | 39,054 | 111,590 | 156,319 | |||||||||||
Presettlement Fundings | 7,021 | 6,997 | 27,155 | 22,299 | |||||||||||
Total TRB Purchases | $ | 266,212 | $ | 260,488 | $ | 1,077,795 | $ | 1,125,031 | |||||||
Adjusted Net Income | $ | 9,081 | $ | 11,164 | $ | 43,593 | $ | 46,614 | |||||||
Adjusted Net Income TRB Margin (2) | 3.41 | % | 4.29 | % | 4.04 | % | 4.14 | % | |||||||
Company retained interests in finance receivables at fair market value | $ | 331,395 | $ | 239,591 |
Q4 2014 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 Non-recurring Items | Q4 2014 Adjusted Net Income | ||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||
Interest income | $ | 47,854 | $ | (41,356 | ) | $ | — | $ | 5,177 | $ | — | $ | — | $ | — | $ | (2,608 | ) | $ | — | $ | 9,067 | |||||||||||||||||
Unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 79,343 | (25,306 | ) | (1,566 | ) | 52,471 | |||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 928 | 1,306 | 2,234 | ||||||||||||||||||||||||||||||||||||
Realized and unrealized losses on marketable securities, net | (853 | ) | 853 | — | |||||||||||||||||||||||||||||||||||
Other | 2 | 2 | |||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 127,274 | $ | (65,356 | ) | $ | (1,566 | ) | $ | 5,177 | $ | — | $ | — | $ | — | $ | (1,755 | ) | $ | — | $ | 63,774 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||
Advertising | $ | 16,148 | $ | 16,148 | |||||||||||||||||||||||||||||||||||
Interest expense | 50,055 | (35,247 | ) | 14,808 | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 10,243 | (653 | ) | (62 | ) | 9,528 | |||||||||||||||||||||||||||||||||
General and administrative | 4,626 | (18 | ) | 4,608 | |||||||||||||||||||||||||||||||||||
Professional and consulting | 4,970 | (703 | ) | — | 4,267 | ||||||||||||||||||||||||||||||||||
Debt issuance | 2,727 | 2,727 | |||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 1,489 | (1,489 | ) | — | |||||||||||||||||||||||||||||||||||
Provision for losses on finance receivables | 1,533 | 1,533 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,005 | 1,005 | |||||||||||||||||||||||||||||||||||||
Installment obligations income, net | 1,755 | (1,755 | ) | — | |||||||||||||||||||||||||||||||||||
Loss on disposal/impairment of fixed assets | 69 | 69 | |||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 94,620 | $ | (36,736 | ) | $ | — | $ | — | $ | (653 | ) | $ | — | $ | (765 | ) | $ | (1,755 | ) | $ | (18 | ) | $ | 54,693 | ||||||||||||||
Income before income taxes | $ | 32,654 | $ | (28,620 | ) | $ | (1,566 | ) | $ | 5,177 | $ | 653 | $ | — | $ | 765 | $ | — | $ | 18 | $ | 9,081 | |||||||||||||||||
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 |
Q4 2013 GAAP Results | Adjustments to reflect deconsolidation of securitizations | Interest Income on Retained Interests | Share Based Compensation | Income Tax | Severance M&A and Consulting | Reclassification Associated with Installment Obligation Payable | Other Non-recurring Items | Q4 2013 Adjusted 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 | ||||||||||||||||||||||||||||||||
Loss on swap terminations, net | (151 | ) | (151 | ) | |||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 1,585 | 1,303 | 2,888 | ||||||||||||||||||||||||||||||||
Realized and unrealized gains on marketable securities, net | 4,776 | (4,776 | ) | — | |||||||||||||||||||||||||||||||
Gain on extinguishment of debt, net | 14,217 | 14,217 | |||||||||||||||||||||||||||||||||
Other | 1,266 | 1,266 | |||||||||||||||||||||||||||||||||
Total Revenues | $ | 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 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, 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 | ) | $ | (6,827 | ) | $ | (6,121 | ) | $ | 60,439 | |||||||||||||
Income (loss) before income taxes | $ | (4,117 | ) | $ | 3,335 | $ | 4,865 | $ | (60 | ) | $ | — | $ | 1,020 | $ | 6,121 | $ | 11,164 | |||||||||||||||||
Provision for income taxes | 1,245 | (1,245 | ) | ||||||||||||||||||||||||||||||||
Net Income (Loss) | $ | (5,362 | ) | $ | 3,335 | $ | 4,865 | $ | (60 | ) | $ | 1,245 | $ | 1,020 | $ | — | $ | 6,121 | $ | 11,164 |
YTD 2014 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 Non-recurring Items | YTD 2014 Adjusted Net Income | ||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||
Interest income | $ | 186,958 | $ | (166,888 | ) | $ | — | $ | 20,315 | $ | — | $ | — | $ | — | $ | (4,434 | ) | $ | 6 | $ | 35,957 | |||||||||||||||||
Unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 300,702 | (84,955 | ) | (1,566 | ) | 214,181 | |||||||||||||||||||||||||||||||||
Loss on swap terminations, net | (628 | ) | (628 | ) | |||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 4,149 | 5,129 | 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 | |||||||||||||||||||||||||||||||||||||
Other | (61 | ) | (61 | ) | |||||||||||||||||||||||||||||||||||
Total Revenues | $ | 494,376 | $ | (246,714 | ) | $ | (1,566 | ) | $ | 20,315 | $ | — | $ | — | $ | — | $ | (5,322 | ) | $ | (2,092 | ) | $ | 258,997 | |||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||
Advertising | $ | 68,489 | $ | 68,489 | |||||||||||||||||||||||||||||||||||
Interest expense | 200,798 | (142,907 | ) | 57,891 | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 41,108 | (2,384 | ) | (1,962 | ) | 36,762 | |||||||||||||||||||||||||||||||||
General and administrative | 18,567 | (234 | ) | (18 | ) | 18,315 | |||||||||||||||||||||||||||||||||
Professional and consulting | 18,452 | (1,540 | ) | (691 | ) | 16,221 | |||||||||||||||||||||||||||||||||
Debt issuance | 8,683 | 8,683 | |||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 6,161 | (6,161 | ) | — | |||||||||||||||||||||||||||||||||||
Provision for losses on finance receivables | 4,806 | 4,806 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,168 | 4,168 | |||||||||||||||||||||||||||||||||||||
Installment obligations expense, net | 5,322 | (5,322 | ) | — | |||||||||||||||||||||||||||||||||||
Loss on disposal/impairment of fixed assets | 69 | 69 | |||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 376,623 | $ | (149,068 | ) | $ | — | $ | — | $ | (2,384 | ) | $ | — | $ | (3,736 | ) | $ | (5,322 | ) | $ | (709 | ) | $ | 215,404 | ||||||||||||||
Income before income taxes | $ | 117,753 | $ | (97,646 | ) | $ | (1,566 | ) | $ | 20,315 | $ | 2,384 | $ | — | $ | 3,736 | $ | — | $ | (1,383 | ) | $ | 43,593 | ||||||||||||||||
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 |
YTD 2013 GAAP Results | Adjustments to reflect deconsolidation of securitizations | Interest Income on Retained Interests | Share Based Compensation | Income Tax | Severance M&A and Consulting | Reclassification Associated with Installment Obligation Payable | Other Non-recurring Items | YTD 2013 Adjusted 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 terminations, net | 200 | 200 | |||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 5,276 | 5,548 | 10,824 | ||||||||||||||||||||||||||||||||
Realized and unrealized gains on marketable securities, net | 15,299 | (15,299 | ) | — | |||||||||||||||||||||||||||||||
Realized loss on notes receivable, at fair value | (1,862 | ) | 1,862 | — | |||||||||||||||||||||||||||||||
Gain on extinguishment of debt, net | 14,217 | 14,217 | |||||||||||||||||||||||||||||||||
Other | 1,209 | 1,209 | |||||||||||||||||||||||||||||||||
Total Revenues | $ | 459,563 | $ | (187,755 | ) | $ | 18,709 | $ | — | $ | — | $ | — | $ | (19,647 | ) | $ | 1,862 | $ | 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, 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 | ) | $ | (19,647 | ) | $ | (8,142 | ) | $ | 226,118 | ||||||||||||
Income before income taxes | $ | 64,364 | $ | (53,331 | ) | $ | 18,709 | $ | 1,452 | $ | — | $ | 5,416 | $ | 10,004 | $ | 46,614 | ||||||||||||||||||
Provision for income taxes | 2,546 | — | — | — | (2,546 | ) | — | — | — | — | |||||||||||||||||||||||||
Net Income | $ | 61,818 | $ | (53,331 | ) | $ | 18,709 | $ | 1,452 | $ | 2,546 | $ | 5,416 | $ | — | $ | 10,004 | $ | 46,614 |
Private | Public | |||||||||||||||||||||||||||||
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||
TRB: | ||||||||||||||||||||||||||||||
Securitized Product Total Receivables Balance (TRB) Purchases (1) | $ | 230,705 | $ | 246,895 | $ | 254,376 | $ | 214,437 | $ | 223,507 | $ | 252,544 | $ | 228,915 | $ | 234,084 | ||||||||||||||
Life Contingent Purchases | 34,222 | 42,878 | 40,165 | 39,054 | 29,827 | 28,185 | 28,471 | 25,107 | ||||||||||||||||||||||
Presettlement Fundings | 5,444 | 5,073 | 4,785 | 6,997 | 7,247 | 6,977 | 5,910 | 7,021 | ||||||||||||||||||||||
Total | $ | 270,371 | $ | 294,846 | $ | 299,326 | $ | 260,488 | $ | 260,581 | $ | 287,706 | $ | 263,296 | $ | 266,212 | ||||||||||||||
ANI Basis: | ||||||||||||||||||||||||||||||
Total Revenue | $ | 76,850 | $ | 63,933 | $ | 60,343 | $ | 71,603 | $ | 63,131 | $ | 69,110 | $ | 62,982 | $ | 63,774 | ||||||||||||||
Total Expenses | $ | 53,323 | $ | 53,409 | $ | 58,944 | $ | 60,439 | $ | 53,010 | $ | 51,935 | $ | 55,766 | $ | 54,693 | ||||||||||||||
ANI | $ | 23,527 | $ | 10,524 | $ | 1,399 | $ | 11,164 | $ | 10,121 | $ | 17,175 | $ | 7,216 | $ | 9,081 | ||||||||||||||
ANI Margin (2) | 30.6 | % | 16.5 | % | 2.3 | % | 15.6 | % | 16.0 | % | 24.9 | % | 11.5 | % | 14.2 | % | ||||||||||||||
ANI TRB Margin (3) | 8.7 | % | 3.6 | % | 0.5 | % | 4.3 | % | 3.9 | % | 6.0 | % | 2.7 | % | 3.4 | % | ||||||||||||||
Spread Revenue (4) | $ | 64,726 | $ | 52,281 | $ | 48,999 | $ | 44,637 | $ | 51,846 | $ | 57,951 | $ | 51,285 | $ | 52,471 | ||||||||||||||
TRB Spread Margin (5) | 24.4 | % | 18.0 | % | 16.6 | % | 17.6 | % | 20.5 | % | 20.6 | % | 19.9 | % | 20.2 | % | ||||||||||||||
GAAP Basis: | ||||||||||||||||||||||||||||||
Revenue | $ | 183,208 | $ | 66,661 | $ | 103,138 | $ | 106,556 | $ | 136,590 | $ | 123,488 | $ | 107,024 | $ | 127,274 | ||||||||||||||
Expenses (6) | $ | 93,503 | $ | 88,301 | $ | 104,023 | $ | 111,918 | $ | 102,057 | $ | 101,780 | $ | 94,335 | $ | 99,591 | ||||||||||||||
Net Income (Loss) | $ | 89,705 | $ | (21,640 | ) | $ | (885 | ) | $ | (5,362 | ) | $ | 34,533 | $ | 21,708 | $ | 12,689 | $ | 27,683 | |||||||||||
Net Income (Loss) Attributable to The J.G. Wentworth Company | $ | (5,577 | ) | $ | 9,022 | $ | 6,268 | $ | 4,092 | $ | 11,829 | |||||||||||||||||||
Weighted Average Diluted Shares | 10,395,574 | 11,642,283 | 12,562,042 | 13,098,995 | 14,640,860 | |||||||||||||||||||||||||
All-in Shares (7) | 17,476,995 | 29,555,639 | 29,510,029 | 29,335,338 | 29,019,913 | |||||||||||||||||||||||||
Diluted EPS | $ | (0.54 | ) | $ | 0.77 | $ | 0.50 | $ | 0.31 | $ | 0.81 | |||||||||||||||||||
ANI EPS (8) | $ | 0.64 | $ | 0.34 | $ | 0.58 | $ | 0.25 | $ | 0.31 | ||||||||||||||||||||
Residual Asset Balance | $ | 249,345 | $ | 234,918 | $ | 239,770 | $ | 239,591 | $ | 280,208 | $ | 294,637 | $ | 304,022 | $ | 331,395 | ||||||||||||||
Residual Loan Balance | $ | 70,000 | $ | 70,000 | $ | 69,560 | $ | 68,785 | $ | 67,989 | $ | 107,540 | $ | 107,329 | $ | 107,043 | ||||||||||||||
10-Year Swap Rate | 2.01 | % | 2.70 | % | 2.77 | % | 3.09 | % | 2.84 | % | 2.63 | % | 2.64 | % | 2.28 | % | ||||||||||||||
Term Loan Interest Expense | $ | 7,673 | $ | 12,287 | $ | 14,595 | $ | 13,457 | $ | 9,917 | $ | 10,020 | $ | 10,082 | $ | 10,182 | ||||||||||||||
ANI Interest Expense | $ | 12,267 | $ | 15,748 | $ | 18,496 | $ | 18,298 | $ | 13,945 | $ | 14,487 | $ | 14,651 | $ | 14,808 |
(1) | Securitized product TRB purchases includes purchases during the period of assets that will be securitized (guaranteed structured settlements, annuities, and lottery payment streams) |
(2) | ANI Margin is defined as ANI / ANI Total Revenue |
(3) | ANI TRB Margin is defined as ANI / Total TRB |
(4) | Spread Revenue is defined as adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the gain (loss) on swap terminations |
(5) | TRB Spread Margin is defined as Spread Revenue / (the sum of Securitized Product TRB Purchases + Life Contingent Purchases) |
(6) | Includes provision for income taxes |
(7) | 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. |
(8) | ANI EPS is defined as ANI / All-in Shares |