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 August 9, 2016, issued by The J.G. Wentworth Company |
THE J.G. WENTWORTH COMPANY | |||
By: | /s/ Roger O. Gasper | ||
Name: | Roger O. Gasper | ||
Title: | Executive Vice President & Chief Financial Officer | ||
Dated: August 9, 2016 |
Exhibit No. | Description | |
99.1 | Press Release, dated August 9, 2016, issued by The J.G. Wentworth Company |
• | Consolidated revenues were $82.7 million, an increase of $21.3 million from the $61.4 million reported in the second quarter 2015. The increase was due primarily to the $26.8 million in revenue generated by the Home Lending segment ("Home Lending") that we acquired on July 31, 2015, partially offset by a $5.4 million decline in our Structured Settlement Payments segment's ("Structured Settlements") revenue that was driven principally by a $85.8 million decrease in Total Receivable Balances ("TRB") purchases from the comparable period in the prior year. |
▪ | Home Lending generated mortgage lock volume of $1.4 billion and closed loan volume of $845.5 million in the second quarter of 2016. |
▪ | The Company had $4.4 billion in VIE and other finance receivables, at fair value and $4.0 billion in VIE long-term debt issued by securitization and permanent financing trusts, at fair value as of June 30, 2016. |
• | Consolidated net loss was $23.5 million compared to the $26.6 million consolidated net loss in the second quarter 2015. The $3.1 million favorable change was principally due to: (i) $7.5 million in pre-tax income generated by Home Lending driven by $1.4 billion in loan lock volume and (ii) a $4.3 million increase in our consolidated benefit for income taxes, partially offset by a $8.7 million increase in Structured Settlement's pre-tax loss. The increase in Structured Settlement's pre-tax loss was primarily the result of: (i) a $5.4 million decline in the segment's revenue driven largely by a decrease in TRB purchases from the prior year, (ii) a $5.5 million non-cash impairment charge to reduce intangible assets acquired in connection with the Company's 2011 acquisition of Orchard Acquisition Company to their respective fair values and (iii) a $1.5 million severance charge incurred in the current quarter in connection with our cost-savings initiatives, partially offset by a net $3.5 million reduction in Structured Settlement's other operating expenses reflecting the benefits of our cost savings initiatives. |
• | Consolidated Adjusted Total Revenues* were $62.1 million, an increase of $12.8 million from $49.3 million in the second quarter 2015. The increase was primarily due to $26.8 million in revenue generated by Home Lending, partially offset by a $13.5 million decline in Structured Settlement's Spread Revenue* (i.e., realized & unrealized gains on unsecuritized finance receivables and related derivatives adjusted for the impact of prefundings) driven by a decrease in related TRB purchases. |
• | Consolidated Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA*") was $11.0 million for the second quarter of 2016 compared to $8.9 million for the second quarter of 2015. The $2.1 million increase in consolidated Adjusted EBITDA* was due to the $8.0 million in Adjusted EBITDA* generated by Home Lending, partially offset by a $5.8 million decline in Structured Settlements' Adjusted EBITDA* that was principally due to the $13.5 million decline in Spread Revenue*. |
• | The Company had cash and cash equivalents of $37.6 million as of June 30, 2016, an increase of $11.1 million over the $26.5 million in cash and cash equivalents as of March 31, 2016. |
• | The Company completed additional cost reduction actions that resulted in a severance charge of $1.5 million in the second quarter of 2016 and $2.7 million on a year-to-date basis. As a result of these and other cost savings initiatives, we have an opportunity to achieve an additional $15 million in annual cost savings which are in addition to the previously announced annual targeted cost savings of $25 - $30 million. |
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 37,600 | $ | 57,322 | |||
Restricted cash and investments | 134,577 | 136,780 | |||||
VIE finance receivables, at fair value (1) | 4,421,681 | 4,376,458 | |||||
Other finance receivables, at fair value | 9,261 | 9,689 | |||||
VIE finance receivables, net of allowances for losses of $8,604 and $8,659, respectively (1) | 90,899 | 99,874 | |||||
Other finance receivables, net of allowances for losses of $1,611 and $1,707, respectively | 9,130 | 10,468 | |||||
Other receivables, net of allowances for losses of $270 and $273, respectively | 17,783 | 16,285 | |||||
Mortgage loans held for sale, at fair value (2) | 228,229 | 124,508 | |||||
Mortgage servicing rights, at fair value (2) | 31,126 | 29,287 | |||||
Premises and equipment, net of accumulated depreciation of $9,923 and $7,961, respectively | 4,809 | 5,674 | |||||
Intangible assets, net of accumulated amortization of $21,809 and $20,700, respectively | 23,837 | 30,429 | |||||
Goodwill | 8,369 | 8,369 | |||||
Marketable securities | 79,430 | 84,994 | |||||
Deferred tax assets, net | — | 2,250 | |||||
Other assets | 76,965 | 82,577 | |||||
Total Assets | $ | 5,173,696 | $ | 5,074,964 | |||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||
Accrued expenses and accounts payable | 31,202 | $ | 21,548 | ||||
Accrued interest | 24,837 | 22,380 | |||||
Term loan payable | 441,680 | 440,181 | |||||
VIE derivative liabilities, at fair value | 74,813 | 66,519 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 19,266 | 48,828 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 221,651 | 122,243 | |||||
VIE long-term debt | 196,941 | 199,363 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,030,306 | 3,928,818 | |||||
Other liabilities | 51,669 | 65,106 | |||||
Deferred tax liabilities, net | 3,670 | 18,825 | |||||
Installment obligations payable | 79,430 | 84,994 | |||||
Total Liabilities | 5,175,465 | 5,018,805 | |||||
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 16,271,224 issued and 15,729,152 outstanding as of June 30, 2016, 16,076,444 issued and 15,534,372 outstanding as of December 31, 2015 | — | — | |||||
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 8,713,918 issued and outstanding as of June 30, 2016, 8,908,698 issued and outstanding as of December 31, 2015 | — | — | |||||
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | — | — | |||||
Additional paid-in-capital | 105,377 | 104,713 | |||||
Accumulated deficit | (97,645 | ) | (70,765 | ) | |||
Accumulated other comprehensive income | — | — | |||||
7,732 | 33,948 | ||||||
Less: treasury stock at cost, 542,072 shares as of June 30, 2016 and December 31, 2015, respectively | (2,138 | ) | (2,138 | ) | |||
Total stockholders' equity, The J.G. Wentworth Company | 5,594 | 31,810 | |||||
Non-controlling interests | (7,363 | ) | 24,349 | ||||
Total Stockholders' (Deficit) Equity | (1,769 | ) | 56,159 | ||||
Total Liabilities and Stockholders' (Deficit) Equity | $ | 5,173,696 | $ | 5,074,964 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
REVENUES | ||||||||||||||||
Interest income | $ | 47,561 | $ | 45,568 | $ | 101,220 | $ | 89,960 | ||||||||
Realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives | 6,623 | 15,581 | (3,234 | ) | 55,320 | |||||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 20,630 | — | 37,286 | — | ||||||||||||
Changes in mortgage servicing rights, net | 962 | — | 1,839 | — | ||||||||||||
Servicing, broker, and other fees | 3,266 | 1,130 | 6,735 | 1,999 | ||||||||||||
Loan origination fees | 2,273 | — | 3,909 | — | ||||||||||||
Realized and unrealized gains (losses) on marketable securities, net | 1,409 | (916 | ) | 1,546 | 914 | |||||||||||
Total Revenues | $ | 82,724 | $ | 61,363 | $ | 149,301 | $ | 148,193 | ||||||||
EXPENSES | ||||||||||||||||
Advertising | $ | 14,325 | $ | 16,942 | $ | 28,298 | $ | 32,782 | ||||||||
Interest expense | 53,800 | 50,068 | 113,300 | 98,903 | ||||||||||||
Compensation and benefits | 20,498 | 9,418 | 39,043 | 22,216 | ||||||||||||
General and administrative | 6,979 | 4,733 | 14,088 | 9,372 | ||||||||||||
Professional and consulting | 4,752 | 4,861 | 8,409 | 9,299 | ||||||||||||
Debt issuance | 545 | 123 | 548 | 2,872 | ||||||||||||
Securitization debt maintenance | 1,414 | 1,494 | 2,846 | 2,990 | ||||||||||||
Provision for losses | 984 | 1,618 | 2,572 | 2,957 | ||||||||||||
Direct subservicing costs | 610 | — | 1,250 | — | ||||||||||||
Depreciation and amortization | 1,163 | 1,004 | 2,465 | 1,995 | ||||||||||||
Installment obligations expense (income), net | 1,947 | (249 | ) | 2,462 | 2,071 | |||||||||||
Impairment charges | 5,483 | — | 5,483 | — | ||||||||||||
Total Expenses | $ | 112,500 | $ | 90,012 | $ | 220,764 | $ | 185,457 | ||||||||
Loss before income taxes | (29,776 | ) | (28,649 | ) | (71,463 | ) | (37,264 | ) | ||||||||
Benefit for income taxes | (6,266 | ) | (2,016 | ) | (12,905 | ) | (5,171 | ) | ||||||||
Net Loss | $ | (23,510 | ) | $ | (26,633 | ) | $ | (58,558 | ) | $ | (32,093 | ) | ||||
Less net loss attributable to non-controlling interests | (12,716 | ) | (14,337 | ) | (31,678 | ) | (18,452 | ) | ||||||||
Net loss attributable to The J.G. Wentworth Company | $ | (10,794 | ) | $ | (12,296 | ) | $ | (26,880 | ) | $ | (13,641 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Weighted average shares of Class A common stock outstanding: | ||||||||||||||||
Basic | 15,662,540 | 14,113,990 | 15,618,643 | 14,192,480 | ||||||||||||
Diluted | 15,662,540 | 14,113,990 | 15,618,643 | 14,192,480 | ||||||||||||
Net loss per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | ||||||||||||||||
Basic | $ | (0.69 | ) | $ | (0.87 | ) | $ | (1.72 | ) | $ | (0.96 | ) | ||||
Diluted | $ | (0.69 | ) | $ | (0.87 | ) | $ | (1.72 | ) | $ | (0.96 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Net Loss | $ | (23,510 | ) | $ | (26,633 | ) | $ | (58,558 | ) | $ | (32,093 | ) | ||||
Adjustments to reflect de-consolidation of securitizations: | ||||||||||||||||
Elimination of unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates | 16,468 | 23,062 | 51,306 | 32,191 | ||||||||||||
Elimination of interest income from securitized finance receivables | (43,729 | ) | (41,267 | ) | (93,544 | ) | (81,236 | ) | ||||||||
Interest income on retained interests in finance receivables | 5,923 | 5,267 | 11,757 | 10,433 | ||||||||||||
Servicing income on securitized finance receivables | 1,299 | 1,316 | 2,639 | 2,631 | ||||||||||||
Elimination of interest expense on long-term debt related to securitization and permanent financing trusts | 36,790 | 35,679 | 79,827 | 69,887 | ||||||||||||
Swap termination expense related to securitization entities | — | — | 3,053 | — | ||||||||||||
Professional fees relating to securitizations | 1,414 | 1,494 | 2,846 | 2,990 | ||||||||||||
Other expenses | 12 | 10 | 17 | 13 | ||||||||||||
Other adjustments: | ||||||||||||||||
Share based compensation | 323 | 706 | 630 | 1,116 | ||||||||||||
Income tax benefit | (6,266 | ) | (2,016 | ) | (12,905 | ) | (5,171 | ) | ||||||||
Impact of prefunding on unsecuritized finance receivables | 1,392 | (654 | ) | (2,861 | ) | 1,618 | ||||||||||
Severance expense | 1,499 | 35 | 2,739 | 2,272 | ||||||||||||
Merger and acquisition related expense | — | 685 | — | 1,279 | ||||||||||||
Debt modification expense | 1,807 | — | 2,355 | — | ||||||||||||
Impairment charges and loss on disposal of assets | 5,483 | — | 5,483 | — | ||||||||||||
Adjusted Net Income (Loss)* | $ | (1,095 | ) | $ | (2,316 | ) | $ | (5,216 | ) | $ | 5,930 | |||||
Term loan interest expense | 10,104 | 10,044 | 20,192 | 20,001 | ||||||||||||
Debt issuance | 25 | 123 | 28 | 2,872 | ||||||||||||
Broker and legal fees incurred in connection with sale of finance receivables | 841 | — | 1,555 | — | ||||||||||||
Depreciation and amortization | 1,163 | 1,004 | 2,465 | 1,995 | ||||||||||||
Adjusted EBITDA* | $ | 11,038 | $ | 8,855 | $ | 19,024 | $ | 30,798 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation and Income Tax | Severance Expense | Debt Modification Expenses | Reclassification for Installment Obligation Payable | Impairment Charges | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Broker and Legal Fees Incurred in Connection with Sale of Finance Receivables | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 47,561 | $ | (43,729 | ) | $ | — | $ | 5,923 | $ | — | $ | — | $ | — | $ | (538 | ) | $ | — | $ | 9,217 | $ | — | $ | — | $ | — | $ | — | $ | 9,217 | |||||||||||||||||||||||||||
Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 6,623 | 16,468 | 1,392 | — | — | — | — | — | — | 24,483 | — | — | — | — | 24,483 | ||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 20,630 | — | — | — | — | — | — | — | — | 20,630 | — | — | — | — | 20,630 | ||||||||||||||||||||||||||||||||||||||||||||
Changes in mortgage servicing rights, net | 962 | — | — | — | — | — | — | — | — | 962 | — | — | — | — | 962 | ||||||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 3,266 | 1,299 | — | — | — | — | — | — | — | 4,565 | — | — | — | — | 4,565 | ||||||||||||||||||||||||||||||||||||||||||||
Loan origination fees | 2,273 | — | — | — | — | — | — | — | — | 2,273 | — | — | — | — | 2,273 | ||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on marketable securities, net | 1,409 | — | — | — | — | — | — | (1,409 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 82,724 | $ | (25,962 | ) | $ | 1,392 | $ | 5,923 | $ | — | $ | — | $ | — | $ | (1,947 | ) | $ | — | $ | 62,130 | $ | — | $ | — | $ | — | $ | — | $ | 62,130 | |||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 14,325 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,325 | $ | — | $ | — | $ | — | $ | — | $ | 14,325 | |||||||||||||||||||||||||||||
Interest expense | 53,800 | (36,790 | ) | — | — | — | — | (1,082 | ) | — | — | 15,928 | (10,104 | ) | — | — | — | 5,824 | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 20,498 | — | — | — | (323 | ) | (1,499 | ) | — | — | — | 18,676 | — | — | — | — | 18,676 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 6,979 | (9 | ) | — | — | — | — | — | — | — | 6,970 | — | — | (776 | ) | — | 6,194 | ||||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 4,752 | (3 | ) | — | — | — | — | (205 | ) | — | — | 4,544 | — | — | (65 | ) | — | 4,479 | |||||||||||||||||||||||||||||||||||||||||
Debt issuance | 545 | — | — | — | — | — | (520 | ) | — | — | 25 | — | (25 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 1,414 | (1,414 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 984 | — | — | — | — | — | — | — | — | 984 | — | — | — | — | 984 | ||||||||||||||||||||||||||||||||||||||||||||
Direct subservicing costs | 610 | — | — | — | — | — | — | — | — | 610 | — | — | — | — | 610 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,163 | — | — | — | — | — | — | — | — | 1,163 | — | — | — | (1,163 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Installment obligations expense (income), net | 1,947 | — | — | — | — | — | — | (1,947 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 5,483 | — | — | — | — | — | — | — | (5,483 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 112,500 | $ | (38,216 | ) | $ | — | $ | — | $ | (323 | ) | $ | (1,499 | ) | $ | (1,807 | ) | $ | (1,947 | ) | $ | (5,483 | ) | $ | 63,225 | $ | (10,104 | ) | $ | (25 | ) | $ | (841 | ) | $ | (1,163 | ) | $ | 51,092 | |||||||||||||||||||
Loss before income taxes | (29,776 | ) | 12,254 | 1,392 | 5,923 | 323 | 1,499 | 1,807 | — | 5,483 | (1,095 | ) | 10,104 | 25 | 841 | 1,163 | 11,038 | ||||||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (6,266 | ) | — | — | — | 6,266 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (23,510 | ) | $ | 12,254 | $ | 1,392 | $ | 5,923 | $ | (5,943 | ) | $ | 1,499 | $ | 1,807 | $ | — | $ | 5,483 | $ | (1,095 | ) | $ | 10,104 | $ | 25 | $ | 841 | $ | 1,163 | $ | 11,038 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation and Income Tax | Severance Expense | Debt Modification Expenses | Reclassification for Installment Obligation Payable | Impairment Charges | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Broker and Legal Fees Incurred in Connection with Sale of Finance Receivables | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 46,507 | $ | (43,729 | ) | $ | — | $ | 5,923 | $ | — | $ | — | $ | — | $ | (538 | ) | $ | — | $ | 8,163 | $ | — | $ | — | $ | — | $ | — | $ | 8,163 | |||||||||||||||||||||||||||
Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 6,623 | 16,468 | 1,392 | — | — | — | — | — | — | 24,483 | — | — | — | — | 24,483 | ||||||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 1,423 | 1,299 | — | — | — | — | — | — | — | 2,722 | — | — | — | — | 2,722 | ||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on marketable securities, net | 1,409 | — | — | — | — | — | — | (1,409 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 55,962 | $ | (25,962 | ) | $ | 1,392 | $ | 5,923 | $ | — | $ | — | $ | — | $ | (1,947 | ) | $ | — | $ | 35,368 | $ | — | $ | — | $ | — | $ | — | $ | 35,368 | |||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 11,809 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 11,809 | $ | — | $ | — | $ | — | $ | — | $ | 11,809 | |||||||||||||||||||||||||||||
Interest expense | 52,335 | (36,790 | ) | — | — | — | — | (1,082 | ) | — | — | 14,463 | (10,104 | ) | — | — | — | 4,359 | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 8,794 | — | — | — | (323 | ) | (1,499 | ) | — | — | — | 6,972 | — | — | — | — | 6,972 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 5,191 | (9 | ) | — | — | — | — | — | — | — | 5,182 | — | — | (776 | ) | — | 4,406 | ||||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 4,263 | (3 | ) | — | — | — | — | (205 | ) | — | — | 4,055 | — | — | (65 | ) | — | 3,990 | |||||||||||||||||||||||||||||||||||||||||
Debt issuance | 545 | — | — | — | — | — | (520 | ) | — | — | 25 | — | (25 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 1,414 | (1,414 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 763 | — | — | — | — | — | — | — | — | 763 | — | — | — | — | 763 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 735 | — | — | — | — | — | — | — | — | 735 | — | — | — | (735 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Installment obligations expense (income), net | 1,947 | — | — | — | — | — | — | (1,947 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 5,483 | — | — | — | — | — | — | — | (5,483 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 93,279 | $ | (38,216 | ) | $ | — | $ | — | $ | (323 | ) | $ | (1,499 | ) | $ | (1,807 | ) | $ | (1,947 | ) | $ | (5,483 | ) | $ | 44,004 | $ | (10,104 | ) | $ | (25 | ) | $ | (841 | ) | $ | (735 | ) | $ | 32,299 | |||||||||||||||||||
Loss before income taxes | (37,317 | ) | 12,254 | 1,392 | 5,923 | 323 | 1,499 | 1,807 | — | 5,483 | (8,636 | ) | 10,104 | 25 | 841 | 735 | 3,069 | ||||||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (6,266 | ) | — | — | — | 6,266 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (31,051 | ) | $ | 12,254 | $ | 1,392 | $ | 5,923 | $ | (5,943 | ) | $ | 1,499 | $ | 1,807 | $ | — | $ | 5,483 | $ | (8,636 | ) | $ | 10,104 | $ | 25 | $ | 841 | $ | 735 | $ | 3,069 |
GAAP Results | Share Based Compensation | ANI* | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||
REVENUES | |||||||||||||||||||
Interest income | $ | 1,054 | $ | — | $ | 1,054 | $ | — | $ | 1,054 | |||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 20,630 | — | 20,630 | — | 20,630 | ||||||||||||||
Changes in mortgage servicing rights, net | 962 | — | 962 | — | 962 | ||||||||||||||
Servicing, broker, and other fees | 1,843 | — | 1,843 | — | 1,843 | ||||||||||||||
Loan origination fees | 2,273 | — | 2,273 | — | 2,273 | ||||||||||||||
Total Revenues | $ | 26,762 | $ | — | $ | 26,762 | $ | — | $ | 26,762 | |||||||||
EXPENSES | |||||||||||||||||||
Advertising | $ | 2,516 | — | 2,516 | — | 2,516 | |||||||||||||
Interest expense | 1,465 | — | 1,465 | — | 1,465 | ||||||||||||||
Compensation and benefits | 11,704 | — | 11,704 | — | 11,704 | ||||||||||||||
General and administrative | 1,788 | — | 1,788 | — | 1,788 | ||||||||||||||
Professional and consulting | 489 | — | 489 | — | 489 | ||||||||||||||
Provision for losses | 221 | — | 221 | — | 221 | ||||||||||||||
Direct subservicing costs | 610 | — | 610 | — | 610 | ||||||||||||||
Depreciation and amortization | 428 | — | 428 | (428 | ) | — | |||||||||||||
Total Expenses | $ | 19,221 | $ | — | $ | 19,221 | $ | (428 | ) | $ | 18,793 | ||||||||
Loss before income taxes | 7,541 | — | 7,541 | 428 | 7,969 | ||||||||||||||
Benefit for income taxes | — | — | — | — | — | ||||||||||||||
Net Income | $ | 7,541 | $ | — | $ | 7,541 | $ | 428 | $ | 7,969 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation | Income Tax | Severance Expense | Mergers and Acquisitions | Reclassification for Installment Obligation Payable | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Depreciation and Amortization | Adjusted EBITDA* | ||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 45,568 | $ | (41,267 | ) | $ | — | $ | 5,267 | $ | — | $ | — | $ | — | $ | — | $ | (667 | ) | $ | 8,901 | $ | — | $ | — | $ | — | $ | 8,901 | |||||||||||||||||||||||||
Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 15,581 | 23,062 | (654 | ) | — | — | — | — | — | — | 37,989 | — | — | — | 37,989 | ||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Changes in mortgage servicing rights, net | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 1,130 | 1,316 | — | — | — | — | — | — | — | 2,446 | — | — | — | 2,446 | |||||||||||||||||||||||||||||||||||||||||
Loan origination fees | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on marketable securities, net | (916 | ) | — | — | — | — | — | — | — | 916 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 61,363 | $ | (16,889 | ) | $ | (654 | ) | $ | 5,267 | $ | — | $ | — | $ | — | $ | — | $ | 249 | $ | 49,336 | $ | — | $ | — | $ | — | $ | 49,336 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 16,942 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 16,942 | $ | — | $ | — | $ | — | $ | 16,942 | |||||||||||||||||||||||||||
Interest expense | 50,068 | (35,679 | ) | — | — | — | — | — | — | — | 14,389 | (10,044 | ) | — | — | 4,345 | |||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 9,418 | — | — | — | (706 | ) | — | (35 | ) | — | 8,677 | — | — | — | 8,677 | ||||||||||||||||||||||||||||||||||||||||
General and administrative | 4,733 | — | — | — | — | — | — | (10 | ) | — | 4,723 | — | — | — | 4,723 | ||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 4,861 | — | — | — | — | — | — | (685 | ) | — | 4,176 | — | — | — | 4,176 | ||||||||||||||||||||||||||||||||||||||||
Debt issuance | 123 | — | — | — | — | — | — | — | — | 123 | — | (123 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 1,494 | (1,494 | ) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Provision for losses | 1,618 | — | — | — | — | — | — | — | — | 1,618 | — | — | — | 1,618 | |||||||||||||||||||||||||||||||||||||||||
Direct subservicing costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,004 | — | — | — | — | — | — | — | — | 1,004 | — | — | (1,004 | ) | — | ||||||||||||||||||||||||||||||||||||||||
Installment obligations expense (income), net | (249 | ) | — | — | — | — | — | — | — | 249 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 90,012 | $ | (37,173 | ) | $ | — | $ | — | $ | (706 | ) | $ | — | $ | (35 | ) | $ | (695 | ) | $ | 249 | $ | 51,652 | $ | (10,044 | ) | $ | (123 | ) | $ | (1,004 | ) | $ | 40,481 | ||||||||||||||||||||
Loss before income taxes | (28,649 | ) | 20,284 | (654 | ) | 5,267 | 706 | — | 35 | 695 | — | (2,316 | ) | 10,044 | 123 | 1,004 | 8,855 | ||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (2,016 | ) | — | — | — | — | 2,016 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (26,633 | ) | $ | 20,284 | $ | (654 | ) | $ | 5,267 | $ | 706 | $ | (2,016 | ) | $ | 35 | $ | 695 | $ | — | $ | (2,316 | ) | $ | 10,044 | $ | 123 | $ | 1,004 | $ | 8,855 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation and Income Tax | Severance Expense | Debt Modification Expenses | Reclassification for Installment Obligation Payable | Impairment Charges | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Broker and Legal Fees Incurred in Connection with Sale of Finance Receivables | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 101,220 | $ | (93,544 | ) | $ | — | $ | 11,757 | $ | — | $ | — | $ | — | $ | (916 | ) | $ | — | $ | 18,517 | $ | — | $ | — | $ | — | $ | — | $ | 18,517 | |||||||||||||||||||||||||||
Realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives | (3,234 | ) | 54,359 | (2,861 | ) | — | — | — | — | — | — | 48,264 | — | — | — | — | 48,264 | ||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 37,286 | — | — | — | — | — | — | — | — | 37,286 | — | — | — | — | 37,286 | ||||||||||||||||||||||||||||||||||||||||||||
Changes in mortgage servicing rights, net | 1,839 | — | — | — | — | — | — | — | — | 1,839 | — | — | — | — | 1,839 | ||||||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 6,735 | 2,639 | — | — | — | — | — | — | — | 9,374 | — | — | — | — | 9,374 | ||||||||||||||||||||||||||||||||||||||||||||
Loan origination fees | 3,909 | — | — | — | — | — | — | — | — | 3,909 | — | — | — | — | 3,909 | ||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on marketable securities, net | 1,546 | — | — | — | — | — | — | (1,546 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 149,301 | $ | (36,546 | ) | $ | (2,861 | ) | $ | 11,757 | $ | — | $ | — | $ | — | $ | (2,462 | ) | $ | — | $ | 119,189 | $ | — | $ | — | $ | — | $ | — | $ | 119,189 | ||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 28,298 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 28,298 | $ | — | $ | — | $ | — | $ | — | $ | 28,298 | |||||||||||||||||||||||||||||
Interest expense | 113,300 | (79,827 | ) | — | — | — | — | (1,631 | ) | — | — | 31,842 | (20,192 | ) | — | — | — | 11,650 | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 39,043 | — | — | — | (630 | ) | (2,739 | ) | — | — | — | 35,674 | — | — | — | — | 35,674 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 14,088 | (14 | ) | — | — | — | — | — | — | — | 14,074 | — | — | (1,415 | ) | — | 12,659 | ||||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 8,409 | (3 | ) | — | — | — | — | (204 | ) | — | — | 8,202 | — | — | (140 | ) | — | 8,062 | |||||||||||||||||||||||||||||||||||||||||
Debt issuance | 548 | — | — | — | — | — | (520 | ) | — | — | 28 | — | (28 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 2,846 | (2,846 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 2,572 | — | — | — | — | — | — | — | — | 2,572 | — | — | — | — | 2,572 | ||||||||||||||||||||||||||||||||||||||||||||
Direct subservicing costs | 1,250 | — | — | — | — | — | — | — | — | 1,250 | — | — | — | — | 1,250 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,465 | — | — | — | — | — | — | — | — | 2,465 | — | — | — | (2,465 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Installment obligations (income) expense, net | 2,462 | — | — | — | — | — | — | (2,462 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 5,483 | — | — | — | — | — | — | — | (5,483 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 220,764 | $ | (82,690 | ) | $ | — | $ | — | $ | (630 | ) | $ | (2,739 | ) | $ | (2,355 | ) | $ | (2,462 | ) | $ | (5,483 | ) | $ | 124,405 | $ | (20,192 | ) | $ | (28 | ) | $ | (1,555 | ) | $ | (2,465 | ) | $ | 100,165 | |||||||||||||||||||
Loss before income taxes | (71,463 | ) | 46,144 | (2,861 | ) | 11,757 | 630 | 2,739 | 2,355 | — | 5,483 | (5,216 | ) | 20,192 | 28 | 1,555 | 2,465 | 19,024 | |||||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (12,905 | ) | — | — | — | 12,905 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (58,558 | ) | $ | 46,144 | $ | (2,861 | ) | $ | 11,757 | $ | (12,275 | ) | $ | 2,739 | $ | 2,355 | $ | — | $ | 5,483 | $ | (5,216 | ) | $ | 20,192 | $ | 28 | $ | 1,555 | $ | 2,465 | $ | 19,024 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation and Income Tax | Severance Expense | Debt Modification Expenses | Reclassification for Installment Obligation Payable | Impairment Charges | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Broker and Legal Fees Incurred in Connection with Sale of Finance Receivables | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 99,509 | $ | (93,544 | ) | $ | — | $ | 11,757 | $ | — | $ | — | $ | — | $ | (916 | ) | $ | — | $ | 16,806 | $ | — | $ | — | $ | — | $ | — | $ | 16,806 | |||||||||||||||||||||||||||
Realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives | (3,234 | ) | 54,359 | (2,861 | ) | — | — | — | — | — | — | 48,264 | — | — | — | — | 48,264 | ||||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 2,840 | 2,639 | — | — | — | — | — | — | — | 5,479 | — | — | — | — | 5,479 | ||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on marketable securities, net | 1,546 | — | — | — | — | — | — | (1,546 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 100,661 | $ | (36,546 | ) | $ | (2,861 | ) | $ | 11,757 | $ | — | $ | — | $ | — | $ | (2,462 | ) | $ | — | $ | 70,549 | $ | — | $ | — | $ | — | $ | — | $ | 70,549 | ||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 23,840 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 23,840 | $ | — | $ | — | $ | — | $ | — | $ | 23,840 | |||||||||||||||||||||||||||||
Interest expense | 110,710 | (79,827 | ) | — | — | — | — | (1,631 | ) | — | — | 29,252 | (20,192 | ) | — | — | — | 9,060 | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 17,991 | — | — | — | (630 | ) | (2,359 | ) | — | — | — | 15,002 | — | — | — | — | 15,002 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 10,536 | (14 | ) | — | — | — | — | — | — | — | 10,522 | — | — | (1,415 | ) | — | 9,107 | ||||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 7,450 | (3 | ) | — | — | — | — | (204 | ) | — | — | 7,243 | — | — | (140 | ) | — | 7,103 | |||||||||||||||||||||||||||||||||||||||||
Debt issuance | 548 | — | — | — | — | — | (520 | ) | — | — | 28 | — | (28 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 2,846 | (2,846 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 1,660 | — | — | — | — | — | — | — | — | 1,660 | — | — | — | — | 1,660 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,611 | — | — | — | — | — | — | — | — | 1,611 | — | — | — | (1,611 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Installment obligations (income) expense, net | 2,462 | — | — | — | — | — | — | (2,462 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 5,483 | — | — | — | — | — | — | — | (5,483 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 185,137 | $ | (82,690 | ) | $ | — | $ | — | $ | (630 | ) | $ | (2,359 | ) | $ | (2,355 | ) | $ | (2,462 | ) | $ | (5,483 | ) | $ | 89,158 | $ | (20,192 | ) | $ | (28 | ) | $ | (1,555 | ) | $ | (1,611 | ) | $ | 65,772 | |||||||||||||||||||
Loss before income taxes | (84,476 | ) | 46,144 | (2,861 | ) | 11,757 | 630 | 2,359 | 2,355 | — | 5,483 | (18,609 | ) | 20,192 | 28 | 1,555 | 1,611 | 4,777 | |||||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (12,905 | ) | — | — | — | 12,905 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (71,571 | ) | $ | 46,144 | $ | (2,861 | ) | $ | 11,757 | $ | (12,275 | ) | $ | 2,359 | $ | 2,355 | $ | — | $ | 5,483 | $ | (18,609 | ) | $ | 20,192 | $ | 28 | $ | 1,555 | $ | 1,611 | $ | 4,777 |
GAAP Results | Severance Expense | ANI* | Depreciation and Amortization | Adjusted EBITDA* | |||||||||||||||
REVENUES | |||||||||||||||||||
Interest income | $ | 1,711 | $ | — | $ | 1,711 | $ | — | $ | 1,711 | |||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 37,286 | — | 37,286 | — | 37,286 | ||||||||||||||
Changes in mortgage servicing rights, net | 1,839 | — | 1,839 | — | 1,839 | ||||||||||||||
Servicing, broker, and other fees | 3,895 | — | 3,895 | — | 3,895 | ||||||||||||||
Loan origination fees | 3,909 | — | 3,909 | — | 3,909 | ||||||||||||||
Total Revenues | $ | 48,640 | $ | — | $ | 48,640 | $ | — | $ | 48,640 | |||||||||
EXPENSES | |||||||||||||||||||
Advertising | $ | 4,458 | $ | — | $ | 4,458 | $ | — | $ | 4,458 | |||||||||
Interest expense | 2,590 | — | 2,590 | — | 2,590 | ||||||||||||||
Compensation and benefits | 21,052 | (380 | ) | 20,672 | — | 20,672 | |||||||||||||
General and administrative | 3,552 | — | 3,552 | — | 3,552 | ||||||||||||||
Professional and consulting | 959 | — | 959 | — | 959 | ||||||||||||||
Provision for losses | 912 | — | 912 | — | 912 | ||||||||||||||
Direct subservicing costs | 1,250 | — | 1,250 | — | 1,250 | ||||||||||||||
Depreciation and amortization | 854 | — | 854 | (854 | ) | — | |||||||||||||
Total Expenses | $ | 35,627 | $ | (380 | ) | $ | 35,247 | $ | (854 | ) | $ | 34,393 | |||||||
Loss before income taxes | 13,013 | 380 | 13,393 | 854 | 14,247 | ||||||||||||||
Benefit for income taxes | — | — | — | — | — | ||||||||||||||
Net Income | $ | 13,013 | $ | 380 | $ | 13,393 | $ | 854 | $ | 14,247 |
GAAP Results | Deconsolidation of Securitizations | Impact of Prefunding on Unsecuritized Finance Receivables | Interest Income on Retained Interests | Share Based Compensation | Income Tax | Severance Expense | Mergers and Acquisitions | Reclassification for Installment Obligation Payable | ANI* | Senior Credit Facility Interest | Debt Issuance Costs | Depreciation and Amortization | Adjusted EBITDA* | ||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 89,960 | $ | (81,236 | ) | $ | — | $ | 10,433 | $ | — | $ | — | $ | — | $ | — | $ | (1,157 | ) | $ | 18,000 | $ | — | $ | — | $ | — | $ | 18,000 | |||||||||||||||||||||||||
Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 55,320 | 32,191 | 1,618 | — | — | — | — | — | — | 89,129 | — | — | — | 89,129 | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Changes in mortgage servicing rights, net | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Servicing, broker, and other fees | 1,999 | 2,631 | — | — | — | — | — | — | — | 4,630 | — | — | — | 4,630 | |||||||||||||||||||||||||||||||||||||||||
Loan origination fees | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on marketable securities, net | 914 | — | — | — | — | — | — | — | (914 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 148,193 | $ | (46,414 | ) | $ | 1,618 | $ | 10,433 | $ | — | $ | — | $ | — | $ | — | $ | (2,071 | ) | $ | 111,759 | $ | — | $ | — | $ | — | $ | 111,759 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 32,782 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 32,782 | $ | — | $ | — | $ | — | $ | 32,782 | |||||||||||||||||||||||||||
Interest expense | 98,903 | (69,887 | ) | — | — | — | — | — | — | — | 29,016 | (20,001 | ) | — | — | 9,015 | |||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 22,216 | — | — | — | (1,116 | ) | — | (2,272 | ) | — | — | 18,828 | — | — | — | 18,828 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 9,372 | — | — | — | — | — | — | (13 | ) | — | 9,359 | — | — | — | 9,359 | ||||||||||||||||||||||||||||||||||||||||
Professional and consulting | 9,299 | — | — | — | — | — | — | (1,279 | ) | — | 8,020 | — | — | — | 8,020 | ||||||||||||||||||||||||||||||||||||||||
Debt issuance | 2,872 | — | — | — | — | — | — | — | — | 2,872 | — | (2,872 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Securitization debt maintenance | 2,990 | (2,990 | ) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Provision for losses | 2,957 | — | — | — | — | — | — | — | — | 2,957 | — | — | — | 2,957 | |||||||||||||||||||||||||||||||||||||||||
Direct subservicing costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,995 | — | — | — | — | — | — | — | — | 1,995 | — | — | (1,995 | ) | — | ||||||||||||||||||||||||||||||||||||||||
Installment obligations expense (income), net | 2,071 | — | — | — | — | — | — | — | (2,071 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total Expenses | $ | 185,457 | $ | (72,877 | ) | $ | — | $ | — | $ | (1,116 | ) | $ | — | $ | (2,272 | ) | $ | (1,292 | ) | $ | (2,071 | ) | $ | 105,829 | $ | (20,001 | ) | $ | (2,872 | ) | $ | (1,995 | ) | $ | 80,961 | |||||||||||||||||||
Loss before income taxes | (37,264 | ) | 26,463 | 1,618 | 10,433 | 1,116 | — | 2,272 | 1,292 | — | 5,930 | 20,001 | 2,872 | 1,995 | 30,798 | ||||||||||||||||||||||||||||||||||||||||
Benefit for income taxes | (5,171 | ) | — | — | — | — | 5,171 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (32,093 | ) | $ | 26,463 | $ | 1,618 | $ | 10,433 | $ | 1,116 | $ | (5,171 | ) | $ | 2,272 | $ | 1,292 | $ | — | $ | 5,930 | $ | 20,001 | $ | 2,872 | $ | 1,995 | $ | 30,798 |
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | |||||||||||||||||||
Purchases of finance receivables | $ | (106,993 | ) | $ | (104,247 | ) | $ | (96,141 | ) | $ | (88,605 | ) | $ | (71,674 | ) | $ | (66,892 | ) | ||||||
Gross proceeds from revolving credit facilities | 89,468 | 27,949 | 421,338 | 601,257 | 614,665 | 909,164 | ||||||||||||||||||
Issuance of VIE long-term debt | 216,955 | 3,274 | 187,103 | 107,367 | 2,275 | 3,395 | ||||||||||||||||||
Repayments of revolving credit facilities | (70,092 | ) | (24,992 | ) | (382,016 | ) | (639,667 | ) | (566,019 | ) | (887,965 | ) | ||||||||||||
Collections on finance receivables | 128,476 | 140,621 | 148,265 | 137,102 | 133,133 | 131,295 | ||||||||||||||||||
Repayment of long-term debt and derivatives | (84,985 | ) | (70,868 | ) | (89,057 | ) | (85,835 | ) | (86,511 | ) | (79,186 | ) | ||||||||||||
Payments for debt issuance costs | — | — | (703 | ) | (39 | ) | — | (1,500 | ) | |||||||||||||||
Net proceeds from sale of finance receivables | — | — | — | 21,949 | 91,335 | 120,787 | ||||||||||||||||||
Changes in restricted cash and investments | (6,052 | ) | 73,654 | (63,014 | ) | 61,594 | 5,246 | (3,043 | ) | |||||||||||||||
Servicing, broker, and other fees | 881 | 1,118 | 2,154 | 3,863 | 3,469 | 3,266 | ||||||||||||||||||
Loss on swap terminations, net | (275 | ) | — | — | — | (4,374 | ) | (165 | ) | |||||||||||||||
Loan origination fees | — | — | 1,032 | 1,511 | 1,636 | 2,273 | ||||||||||||||||||
Originations and purchases of mortgage loans held for sale | — | — | (352,641 | ) | (495,276 | ) | (574,662 | ) | (851,810 | ) | ||||||||||||||
Proceeds from sale and principal payments on mortgage loans held for sale | — | — | 362,723 | 509,803 | 524,130 | 832,975 | ||||||||||||||||||
Subtotal | $ | 167,383 | $ | 46,509 | $ | 139,043 | $ | 135,024 | $ | 72,649 | $ | 112,594 | ||||||||||||
Advertising | 15,840 | 16,942 | 16,946 | 14,092 | 13,975 | 14,325 | ||||||||||||||||||
Cash paid for interest | 58,322 | 57,781 | 59,467 | 60,505 | 59,609 | 59,052 | ||||||||||||||||||
Compensation and benefits | 12,798 | 9,418 | 14,210 | 16,230 | 18,545 | 20,498 | ||||||||||||||||||
General and administrative | 4,639 | 4,733 | 5,307 | 6,378 | 7,109 | 6,979 | ||||||||||||||||||
Professional and consulting | 4,438 | 4,861 | 6,542 | 5,645 | 3,657 | 4,752 | ||||||||||||||||||
Debt issuance | 2,749 | 123 | 2,220 | 1,649 | 3 | 545 | ||||||||||||||||||
Securitization debt maintenance | 1,496 | 1,494 | 1,463 | 1,459 | 1,432 | 1,414 | ||||||||||||||||||
Direct subservicing costs | — | — | — | 948 | 640 | 610 | ||||||||||||||||||
Subtotal | $ | 100,282 | $ | 95,352 | $ | 106,155 | $ | 106,906 | $ | 104,970 | $ | 108,175 | ||||||||||||
Share-based compensation expense included in compensation and benefits | 410 | 706 | 273 | (98 | ) | 307 | 323 | |||||||||||||||||
Adjusted Cash Flow* | $ | 67,511 | $ | (48,137 | ) | $ | 33,161 | $ | 28,020 | $ | (32,014 | ) | $ | 4,742 |
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | |||||||||||||||||||
Adjusted Cash Flow* | $ | 67,511 | $ | (48,137 | ) | $ | 33,161 | $ | 28,105 | $ | (32,014 | ) | $ | 4,742 | ||||||||||
Adjustments to reconcile Adjusted Cash Flow* to net (decrease) increase in cash and cash equivalents per Consolidated Statement of Cash Flows | ||||||||||||||||||||||||
Purchase of Home Lending, net of cash acquired | — | — | (46,595 | ) | (813 | ) | (7,630 | ) | — | |||||||||||||||
Purchases of premises and equipment, net of sales proceeds | (905 | ) | (812 | ) | (1,154 | ) | (221 | ) | (260 | ) | (231 | ) | ||||||||||||
Purchases of treasury stock | (2,797 | ) | (9,022 | ) | (2,652 | ) | — | — | — | |||||||||||||||
Subtotal | $ | (3,702 | ) | $ | (9,878 | ) | $ | (50,418 | ) | $ | (1,085 | ) | $ | (7,890 | ) | $ | (231 | ) | ||||||
Changes in other assets | 388 | (562 | ) | 190 | 903 | 7,845 | (1,558 | ) | ||||||||||||||||
Changes in other receivables | 2,092 | (1,906 | ) | (1,733 | ) | 3,230 | (470 | ) | (1,028 | ) | ||||||||||||||
Changes in accrued expenses and accounts payable | 5,353 | 2,710 | (135 | ) | (8,949 | ) | 1,354 | 8,300 | ||||||||||||||||
Changes in other liabilities | 396 | 644 | 602 | (4,544 | ) | (620 | ) | (269 | ) | |||||||||||||||
Other reconciling items | 173 | (639 | ) | (2,061 | ) | 3,965 | 938 | 1,179 | ||||||||||||||||
Subtotal | $ | 8,402 | $ | 247 | $ | (3,137 | ) | $ | (5,395 | ) | $ | 9,047 | $ | 6,624 | ||||||||||
Net (decrease) increase in cash and cash equivalents | 72,211 | (57,768 | ) | (20,394 | ) | 21,625 | (30,857 | ) | 11,135 | |||||||||||||||
Cash and cash equivalents at beginning of period | 41,648 | 113,859 | 56,091 | 35,697 | 57,322 | 26,465 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 113,859 | $ | 56,091 | $ | 35,697 | $ | 57,322 | $ | 26,465 | $ | 37,600 | ||||||||||||
Restricted cash and investments at end of period | $ | 204,258 | $ | 130,604 | $ | 198,374 | $ | 136,780 | $ | 131,534 | $ | 134,577 |
Q1 2015 | Q2 2015 | Q1 2016 | Q2 2016 | |||||||||||||
Consolidated | ||||||||||||||||
Net Loss | $ | (5,460 | ) | $ | (26,633 | ) | $ | (35,050 | ) | $ | (23,510 | ) | ||||
Net loss attributable to The J.G. Wentworth Company | $ | (1,345 | ) | $ | (54,974 | ) | $ | (16,087 | ) | $ | (10,794 | ) | ||||
Adjusted Net (Loss) Income* | $ | 8,246 | $ | (2,316 | ) | $ | (4,124 | ) | $ | (1,095 | ) | |||||
Adjusted EBITDA* | $ | 21,943 | $ | 8,855 | $ | 7,982 | $ | 11,038 | ||||||||
Weighted Average Diluted Shares | 14,271,842 | 14,113,990 | 15,574,746 | 15,729,152 | ||||||||||||
All-in shares (1)* | 28,597,051 | 28,033,035 | 28,737,655 | 28,737,655 | ||||||||||||
Diluted EPS | $ | (0.09 | ) | $ | (0.87 | ) | $ | (1.03 | ) | $ | (0.69 | ) | ||||
Structured Settlement Payments Segment | ||||||||||||||||
Total Receivables Balance (TRB) Purchases | ||||||||||||||||
Guaranteed structured settlements, annuities and lotteries | $ | 234,972 | $ | 231,654 | $ | 166,384 | $ | 148,019 | ||||||||
Life contingent structured settlements and annuities | 19,499 | 26,807 | 37,300 | 24,626 | ||||||||||||
Pre-settlement fundings | 6,360 | 4,404 | — | — | ||||||||||||
Total TRB Purchases | $ | 260,831 | $ | 262,865 | $ | 203,684 | $ | 172,645 | ||||||||
Spread Revenue (2)* | $ | 50,547 | $ | 37,989 | $ | 23,781 | $ | 24,482 | ||||||||
TRB Spread Margin (3)* | 19.90 | % | 14.70 | % | 11.68 | % | 14.18 | % | ||||||||
Home Lending Segment | ||||||||||||||||
Mortgage Originations: | ||||||||||||||||
Locked - Units | N/A | N/A | 3,978 | 5,505 | ||||||||||||
Locked - Loan Volume | N/A | N/A | $ | 1,077,097 | $ | 1,428,427 | ||||||||||
Closed - Units | N/A | N/A | 2,064 | 3,230 | ||||||||||||
Closed - Loan Volume | N/A | N/A | $ | 568,302 | $ | 845,533 | ||||||||||
Mortgage Servicing: | ||||||||||||||||
Loan count - servicing | N/A | N/A | 13,181 | 13,778 | ||||||||||||
Average loan amount | N/A | N/A | $ | 239 | $ | 239 | ||||||||||
Average interest rate | N/A | N/A | 3.72 | % | 3.68 | % |
(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) | Spread Revenue is defined as realized & unrealized gains on unsecuritized finance receivables and related derivatives adjusted for the impact of prefundings. |
(3) | TRB Spread Margin is defined as Spread Revenue / TRB Purchases related to guaranteed and life contingent structured settlements, annuities and lotteries. |