[March 31, 2014] |
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JGWPT Holdings Inc. Reports Fourth Quarter Financial Results
RADNOR, Pa. --(Business Wire)--
JGWPT Holdings Inc. ("JGWPT" or the "Company") (NYSE:JGW), a leading
purchaser of structured settlement payments, annuity payments, lottery
payments and other receivables, today reported its financial results for
the fourth quarter and full year of 2013. David Miller, JGWPT's Chief
Executive Officer, said, "The business performance and fourth quarter
results are in line with our expectations, as we earned approximately
$0.04 on every dollar of Total Receivables Balance, or TRB, purchased
from customers." The following are highlights from the fourth quarter
and full year results:
Fourth Quarter Highlights
-
TRB purchases were $260.5 million, as compared to $278.9 million in
the fourth quarter of 2012, representing a 6.6% decrease.
-
Revenues were $106.6 million, a decrease of 15.5% from revenues of
$126.2 million in the fourth quarter of 2012, due primarily to an
increasing interest rate environment and lower TRB purchases.
-
Net (loss) income attributable to J.G. Wentworth, LLC decreased to
$(5.4) million, as compared to $38.6 million in the fourth quarter of
2012, driven by additional interest expense on the Company's term loan
as well as the impact of an increasing rate environment.
-
Adjusted Net Income ("ANI") decreased to $11.2 million, as compared to
$23.8 million in the fourth quarter of 2012, driven primarily by $10.1
million of additional interest expense on the term loan as well as an
increasing interest rate environment (ANI is a non-GAAP measure - see
Reconciliation of Net Income to Adjusted Net Income below).
-
ANI as a percentage of TRB was 4.29%, as compared to 8.55% in the
fourth quarter of 2012.
-
Term loan interest expense was $13.5 million, compared to $3.4 million
in the fourth quarter of 2012. In December, the Company repaid $123.0
million on the term loan, reducing the outstanding balance to $434.2
million, and entered into an amendment reducing the interest rate
payable on the term loan by approximately 200 basis points. These
changes are expected to result in annual savings of approximately $20
million.
Full Year Highlights
-
TRB purchases were $1,125.0 million, as compared to $1,069.7 million
in 2012, representing a 5.2% increase.
-
Revenues decreased to $459.6 million in 2013, as compared to $467.4
million in 2012, due to the increasing rate environment but offset
somewhat by the increase in TRB purchases.
-
Net income attributable to J.G. Wentworth, LLC decreased to$61.8
million, as compared to $116.7 million in 2012, due primarily to an
increased interest rate environment and additional interest on the
term loan.
-
ANI was $46.6 million, as compared to $76.4 million in 2012, primarily
driven by $33.5 million of additional interest expense on the
Company's term loan as well as the increased interest rate environment
and increases in other expenses (see reconciliation of net income to
adjusted net income - a non-GAAP measure).
-
ANI as a percentage of TRB was 4.14%, as compared to 7.14% in 2012.
-
Term loan interest expense was $48.0 million, compared to $14.5
million in 2012.
John Schwab, JGWPT's Chief Financial Officer, said, "Fourth quarter
profitability was impacted primarily by interest expense associated with
our term loan. As a result of paying down a portion of our term loan and
lowering the interest rate, we have reduced our interest costs going
forward."
About JGWPT Holdings Inc.
JGWPT focuses on key sectors, including purchasing of structured
settlement payments, annuity payments, lottery payments and
pre-settlement funding. Through our two market leading and highly
recognizable brands, J.G. Wentworth and Peachtree Financial Solutions,
we have purchased over $9.6 billion of future structured settlement
payment streams from our customers since 1995.
For more information about JGWPT, visit www.jgwpt.com
or use the contact information provided below.
Conference Call and Webcast
Management will host a webcast to discuss the fourth quarter 2013
financial results tomorrow April 1, 2014 at 10:00 AM Eastern time. The
webcast will include remarks from JGWPT's Chief Executive Officer, David
Miller, and Chief Financial Officer, John Schwab. A webcast of the
conference call will be available live on the Investor Relations section
of the Company's website: https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=773707&sessionid=1&key=899335C7B16FFA04DF997FBE6773B17E&sourcepage=register
Interested parties unable to access the conference call via the webcast
may dial (877) 201-0168 and reference conference ID 19646221. A playback
of the call is available until April 15, 2014 at (855) 859-2056 with
conference ID 19646221.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements." Statements preceded by, followed by or that otherwise
include the words "believes", "expects", "anticipates", "intends",
"projects", "estimates" and "plans" and similar expressions or future or
conditional verbs such as "will", "should", "would", "may" and "could"
are generally forward-looking in nature and not historical facts. Any
statements that refer to expectations or other characterizations of
future events, circumstances or results are forward-looking statements.
A number of factors could cause actual results, performance or
achievements to differ materially from the results expressed or implied
in the forward-looking statements. These factors should be considered
carefully and readers should not place undue reliance on the
forward-looking statements. Forward-looking statements necessarily
involve significant known and unknown risks, assumptions and
uncertainties that may cause our actual results, performance and
opportunities in future periods to differ materially from those
expressed or implied by such forward-looking statements. These risks and
uncertainties include, among other things: our ability to continue to
purchase structured settlement payments and other assets; our ability to
complete future securitizations on beneficial terms; availability of or
increases in the cost of our financing sources relative to our purchase
discount rate; our dependence on the opinions of certain rating
agencies; our dependence on the effectiveness of our direct response
marketing; the compression of the yield spread between the price we pay
for and the price at which we sell assets; changes in tax or accounting
policies or changes in interpretation of those policies as applicable to
our business; the lack of an established market for the subordinated
interest in the receivables that we retain after a securitization is
executed; our exposure to underwriting risk; our ability to remain in
compliance with the terms of our substantial indebtedness; changes in
existing state laws governing the transfer of structured settlement
payments or the interpretation thereof; the insolvency of a material
number of structured settlement holders; any change in current tax law
relating to the tax treatment of structured settlements; changes to
statutory, licensing and regulatory regimes; the impact of the Consumer
Financial Protection Bureau and any regulations it issues; adverse
judicial developments; potential litigation and regulatory proceedings;
unfavorable press reports about our business model; our access to
personally identifiable confidential information of current and
prospective customers and the improper use or failure to protect that
information; the public disclosure of the identities of structured
settlement holders; our business model being susceptible to litigation;
our dependence on a small number of key personnel; our dependence on
outside parties to conduct our transactions including the court system,
insurance companies, outside counsel, delivery services and notaries;
our ability to successfully enter new lines of business and broaden the
scope of our business; changes in our expectations regarding the
likelihood, timing or terms of any potential acquisitions described
herein; our computer systems being subject to security and privacy
breaches; and infringement of our trademarks or service marks.
Consideration should also be given to the areas of risk set forth under
the heading "Risk Factors" in our filings with the Securities and
Exchange Commission (the "SEC"), including our Annual Report on Form
10-K, and in our other filings made from time to time, in connection
with considering any forward-looking statements that may be made by us
and our businesses generally. Except for our ongoing obligations to
disclose material information under the federal securities laws, we
undertake no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the occurrence
of unanticipated events unless we are required to do so by law.
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JGWPT Holdings Inc.
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(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
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Consolidated Balance Sheets
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(Dollars in thousands, except per share amounts)
|
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|
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December 31,
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December 31,
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2013
|
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2012
|
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ASSETS
|
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|
|
|
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Cash and cash equivalents
|
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|
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$
|
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39,061
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|
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$
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103,137
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Restricted cash and investments
|
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109,338
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112,878
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VIE finance receivables, at fair market value
|
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|
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|
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3,818,704
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3,586,465
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Other finance receivables, at fair market value
|
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51,945
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|
|
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28,723
|
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|
VIE finance receivables, net of allowance for losses of $6,443 and
$3,717, respectively
|
|
|
|
|
|
|
|
117,826
|
|
|
|
|
|
|
|
|
128,737
|
|
|
|
|
Other finance receivables, net of allowance for losses of $1,899
and $933, respectively
|
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|
|
|
|
|
|
15,166
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|
|
|
|
|
|
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|
21,616
|
|
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|
Notes receivable, at fair market value
|
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|
|
|
|
|
5,610
|
|
|
|
|
|
|
|
|
8,074
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|
|
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|
Notes receivable due from affiliate
|
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|
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|
-
|
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|
|
|
|
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5,243
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|
|
|
Other receivables, net of allowance for losses of $243 and $276,
respectively
|
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|
|
|
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|
13,529
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|
|
|
|
|
|
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13,146
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Fixed assets, net of accumulated depreciation of $4,544 and 3,128,
respectively
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|
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3,112
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|
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|
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6,321
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|
|
|
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Intangible assets, net of accumulated amortization of $17,781 and
$14,257, respectively
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|
|
|
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47,878
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|
|
|
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51,277
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|
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Goodwill
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84,993
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|
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84,993
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Marketable securities
|
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|
|
|
|
|
|
121,954
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|
|
|
|
|
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131,114
|
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Deferred tax assets
|
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|
|
|
|
|
|
1,830
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|
|
|
|
|
|
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|
2,455
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Other assets
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|
|
|
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|
41,151
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|
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|
|
|
|
|
|
14,418
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Total assets
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$
|
|
4,472,097
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$
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4,298,597
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LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S CAPITAL
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Accounts payable
|
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|
|
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|
$
|
|
3,903
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|
|
|
|
|
|
$
|
|
8,630
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|
|
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Accrued expenses
|
|
|
|
|
|
|
|
21,181
|
|
|
|
|
|
|
|
|
12,440
|
|
|
|
|
Accrued interest
|
|
|
|
|
|
|
|
14,485
|
|
|
|
|
|
|
|
|
11,687
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|
|
|
|
VIE derivative liabilities, at fair market value
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|
|
|
|
|
|
|
70,296
|
|
|
|
|
|
|
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|
121,498
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|
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VIE borrowings under revolving line of credit and other short term
borrowings
|
|
|
|
|
|
|
41,274
|
|
|
|
|
|
|
|
|
27,380
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|
|
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|
VIE long term debt
|
|
|
|
|
|
|
|
150,802
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|
|
|
|
|
|
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|
162,799
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|
|
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VIE long term debt issued by securitization trusts, at fair market
value
|
|
|
|
|
|
|
3,431,283
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|
|
|
|
|
|
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3,229,591
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|
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Term loan payable
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|
|
|
|
|
|
|
434,184
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|
|
|
|
|
|
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|
142,441
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Other liabilities
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|
|
|
|
|
|
|
7,646
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|
|
|
|
|
|
|
|
8,199
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|
|
|
|
Deferred tax liabilities
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|
|
|
|
|
|
|
1,707
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|
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-
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Installment obligations payable
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|
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|
|
|
|
|
121,954
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|
|
|
|
|
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|
131,114
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|
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Total liabilities
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|
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|
$
|
|
4,298,715
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|
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$
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3,855,779
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Member's capital
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$
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-
|
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$
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|
442,818
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Class A common stock, par value $0.00001 per share; 500,000,000
shares authorized,
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11,220,358 issued and 11,216,429 outstanding as of December 31,
2013
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|
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-
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|
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|
|
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-
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|
Class B common stock, par value $0.00001 per share; 500,000,000
shares authorized,
|
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|
|
|
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14,001,583 issued and 13,984,065 outstanding as of December 31,
2013
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|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
-
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|
Class C common stock, par value $0.00001 per share; 500,000,000
shares authorized,
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|
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0 issued and outstanding as of December 31, 2013
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|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
Additional paid-in-capital
|
|
|
|
|
|
|
|
70,236
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|
|
|
|
|
|
|
-
|
|
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|
Accumulated deficit
|
|
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|
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|
(5,577
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)
|
|
|
|
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|
|
|
-
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
612
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|
|
|
|
|
|
|
-
|
|
|
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|
|
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|
$
|
|
65,271
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|
|
|
$
|
|
442,818
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Non-controlling interests
|
|
|
|
|
|
|
|
108,111
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|
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|
|
|
|
-
|
|
|
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Total stockholders' equity/member's capital
|
|
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|
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|
$
|
|
173,382
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|
|
|
|
|
|
$
|
|
442,818
|
|
|
|
|
Total liabilities and stockholders' equity/member's capital
|
|
|
|
|
|
$
|
|
4,472,097
|
|
|
|
|
|
|
$
|
|
4,298,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
JGWPT Holdings Inc.
|
|
|
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
|
|
|
Consolidated Statements of Operations
|
|
|
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
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For the Three Months Ended
|
|
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|
For the Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
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|
|
|
December 31,
|
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|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
$
|
|
46,130
|
|
|
|
$
|
|
45,233
|
|
|
|
|
|
$
|
|
172,423
|
|
|
|
$
|
|
177,748
|
|
|
|
|
|
Unrealized gains on VIE and other finance receivables,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
long term debt, and derivatives
|
|
|
|
|
|
|
38,733
|
|
|
|
|
|
82,163
|
|
|
|
|
|
|
|
252,801
|
|
|
|
|
|
270,787
|
|
|
|
|
|
Gain (loss) on swap termination, net
|
|
|
|
|
|
|
(151
|
)
|
|
|
|
|
(1,869
|
)
|
|
|
|
|
|
|
200
|
|
|
|
|
|
(2,326
|
)
|
|
|
|
|
Servicing, broker, and other fees
|
|
|
|
|
|
|
1,585
|
|
|
|
|
|
1,723
|
|
|
|
|
|
|
|
5,276
|
|
|
|
|
|
9,303
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
1,266
|
|
|
|
|
|
(1,240
|
)
|
|
|
|
|
|
|
1,209
|
|
|
|
|
|
(856
|
)
|
|
|
|
|
Realized loss on notes receivable, at fair value
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
(1,862
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)
|
|
|
|
|
-
|
|
|
|
|
|
Gain on extinguishment of debt, net
|
|
|
|
|
|
|
14,217
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
14,217
|
|
|
|
|
|
-
|
|
|
|
|
|
Realized and unrealized gains on
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
marketable securities, net
|
|
|
|
|
|
|
4,776
|
|
|
|
|
|
192
|
|
|
|
|
|
|
|
15,299
|
|
|
|
|
|
12,741
|
|
|
|
|
|
Total revenue
|
|
|
|
|
|
$
|
|
106,556
|
|
|
|
$
|
|
126,202
|
|
|
|
|
|
$
|
|
459,563
|
|
|
|
$
|
|
467,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
$
|
|
18,639
|
|
|
|
$
|
|
17,075
|
|
|
|
|
|
$
|
|
70,304
|
|
|
|
$
|
|
73,307
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
53,061
|
|
|
|
|
|
39,699
|
|
|
|
|
|
|
|
193,035
|
|
|
|
|
|
158,631
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
10,101
|
|
|
|
|
|
10,910
|
|
|
|
|
|
|
|
42,595
|
|
|
|
|
|
43,584
|
|
|
|
|
|
General and administrative
|
|
|
|
|
|
|
5,298
|
|
|
|
|
|
4,048
|
|
|
|
|
|
|
|
20,179
|
|
|
|
|
|
14,613
|
|
|
|
|
|
Professional and consulting
|
|
|
|
|
|
|
4,914
|
|
|
|
|
|
4,938
|
|
|
|
|
|
|
|
18,820
|
|
|
|
|
|
15,874
|
|
|
|
|
|
Debt issuance
|
|
|
|
|
|
|
3,275
|
|
|
|
|
|
3,156
|
|
|
|
|
|
|
|
8,930
|
|
|
|
|
|
9,124
|
|
|
|
|
|
Securitization debt maintenance
|
|
|
|
|
|
|
1,565
|
|
|
|
|
|
1,472
|
|
|
|
|
|
|
|
6,091
|
|
|
|
|
|
5,208
|
|
|
|
|
|
Provision for losses on finance receivables
|
|
|
|
|
|
|
1,321
|
|
|
|
|
|
1,918
|
|
|
|
|
|
|
|
5,695
|
|
|
|
|
|
3,805
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
1,472
|
|
|
|
|
|
1,650
|
|
|
|
|
|
|
|
5,703
|
|
|
|
|
|
6,385
|
|
|
|
|
|
Installment obligations expense, net
|
|
|
|
|
|
|
6,827
|
|
|
|
|
|
2,303
|
|
|
|
|
|
|
|
19,647
|
|
|
|
|
|
17,321
|
|
|
|
|
|
Loss on disposal/impairment of fixed assets
|
|
|
|
|
|
|
4,200
|
|
|
|
|
|
300
|
|
|
|
|
|
|
|
4,200
|
|
|
|
|
|
300
|
|
|
|
|
|
Total expenses
|
|
|
|
|
$
|
|
110,673
|
|
|
|
$
|
|
87,469
|
|
|
|
|
|
$
|
|
395,199
|
|
|
|
$
|
|
348,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
$
|
|
(4,117
|
)
|
|
|
$
|
|
38,733
|
|
|
|
|
|
$
|
|
64,364
|
|
|
|
$
|
|
119,245
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
|
|
|
|
|
1,245
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
2,546
|
|
|
|
|
|
(227
|
)
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
(5,362
|
)
|
|
|
|
|
38,607
|
|
|
|
|
|
|
|
61,818
|
|
|
|
|
|
119,472
|
|
|
|
|
|
Less non-controlling interest in earnings of affiliate
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
2,731
|
|
|
|
|
|
Net income (loss) attributable to J.G. Wentworth, LLC
|
|
|
|
|
|
|
(5,362
|
)
|
|
|
$
|
|
38,607
|
|
|
|
|
|
|
|
61,818
|
|
|
|
$
|
|
116,741
|
|
|
|
|
|
Less net income attributable to non-controlling interests
|
|
|
|
|
|
|
215
|
|
|
|
|
|
|
|
|
|
|
67,395
|
|
|
|
|
|
|
|
|
Net loss attributable to JGWPT Holdings Inc.
|
|
|
|
|
$
|
|
(5,577
|
)
|
|
|
|
|
|
|
|
$
|
|
(5,577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 14, 2013 through December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,395,574
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,395,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to stockholders of Class A common
stock of JGWPT Holdings Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.54)
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANI Bridge - Unaudited
J.G. Wentworth LLC and Subsidiaries
|
|
Reconciliation of Net Income to Adjusted Net Income
|
|
We use Adjusted Net Income (a non-GAAP financial measure) as a
measure of our results from operations, which we define as our net
income under U.S. GAAP before certain non-cash compensation
expenses, certain other expenses, provision for or benefit from
income taxes and the amounts related to the consolidation of the
securitization and permanent financing trusts we use to finance our
business. We use Adjusted Net Income to measure our overall
performance because we believe it represents the best measure of our
operating performance, as the operations of the variable interest
entities do not impact business performance. You should not consider
Adjusted Net Income in isolation or as a substitute for analysis of
our results as reported under U.S. GAAP. Because not all companies
use identical calculations, our presentation of Adjusted Net Income
may not be comparable to other similarly titled measures of other
companies.
|
|
A reconciliation of Net Income to Adjusted Net Income for the three
months ended and year ended December 31, 2013 is provided below.
|
|
|
|
|
|
JGWPT Holdings Inc.
|
|
|
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
|
|
|
Reconciliation of Net Income to Adjusted Net Income - Unaudited
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
For the Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to J.G. Wentworth, LLC
|
|
|
|
|
$
|
|
(5,362
|
)
|
|
|
|
|
$
|
|
38,607
|
|
|
|
|
|
$
|
61,818
|
|
|
|
|
|
$
|
|
116,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reflect deconsolidation of securitizations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination of unrealized gain (loss) on finance receivables,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
long-term debt and derivatives from post securitization due to
changes in interest rates
|
|
|
|
|
|
|
6,055
|
|
|
|
|
|
|
|
(18,525
|
)
|
|
|
|
|
|
(42,358
|
)
|
|
|
|
|
|
|
(51,599
|
)
|
|
|
|
|
Elimination of interest income from securitized finance receivables
|
|
|
|
|
|
|
(40,349
|
)
|
|
|
|
|
|
|
(37,519
|
)
|
|
|
|
|
|
(150,945
|
)
|
|
|
|
|
|
|
(149,883
|
)
|
|
|
|
|
Interest income on retained interests in finance receivables
|
|
|
|
|
|
|
4,865
|
|
|
|
|
|
|
|
4,302
|
|
|
|
|
|
|
18,709
|
|
|
|
|
|
|
|
16,372
|
|
|
|
|
|
Servicing income on securitized finance receivables
|
|
|
|
|
|
|
1,303
|
|
|
|
|
|
|
|
1,342
|
|
|
|
|
|
|
5,548
|
|
|
|
|
|
|
|
5,949
|
|
|
|
|
|
Elimination of interest expense on long-term debt related to
securitization and permanent financing trusts
|
|
|
|
|
|
|
34,763
|
|
|
|
|
|
|
|
31,660
|
|
|
|
|
|
|
128,226
|
|
|
|
|
|
|
|
126,650
|
|
|
|
|
|
Professional fees relating to securitizations
|
|
|
|
|
|
|
1,563
|
|
|
|
|
|
|
|
1,637
|
|
|
|
|
|
|
6,198
|
|
|
|
|
|
|
|
5,341
|
|
|
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based compensation
|
|
|
|
|
|
|
(60
|
)
|
|
|
|
|
|
|
552
|
|
|
|
|
|
|
1,452
|
|
|
|
|
|
|
|
2,393
|
|
|
|
|
|
Income tax (benefit) / provision
|
|
|
|
|
|
|
1,245
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|
2,546
|
|
|
|
|
|
|
|
(227
|
)
|
|
|
|
|
Severance, M & A and consulting expenses
|
|
|
|
|
|
|
1,020
|
|
|
|
|
|
|
|
1,352
|
|
|
|
|
|
|
5,416
|
|
|
|
|
|
|
|
4,364
|
|
|
|
|
|
Other non-recurring expenses
|
|
|
|
|
|
|
6,121
|
|
|
|
|
|
|
|
300
|
|
|
|
|
|
|
10,004
|
|
|
|
|
|
|
|
300
|
|
|
|
|
|
Adjusted Net Income
|
|
|
|
|
$
|
|
11,164
|
|
|
|
|
|
$
|
|
23,834
|
|
|
|
|
|
$
|
46,614
|
|
|
|
|
|
$
|
|
76,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized Product Total Receivables Balance (TRB) Purchases (1)
|
|
|
|
|
$
|
|
214,437
|
|
|
|
|
|
$
|
|
236,840
|
|
|
|
|
|
$
|
946,412
|
|
|
|
|
|
$
|
|
915,783
|
|
|
|
|
|
Other TRB Purchases (2)
|
|
|
|
|
|
|
46,051
|
|
|
|
|
|
|
|
42,076
|
|
|
|
|
|
|
178,619
|
|
|
|
|
|
|
|
153,964
|
|
|
|
|
|
Total TRB Purchases
|
|
|
|
|
$
|
|
260,488
|
|
|
|
|
|
$
|
|
278,916
|
|
|
|
|
|
$
|
1,125,031
|
|
|
|
|
|
$
|
|
1,069,747
|
|
|
|
|
|
Adjusted Net Income
|
|
|
|
|
$
|
|
11,164
|
|
|
|
|
|
$
|
|
23,834
|
|
|
|
|
|
$
|
46,614
|
|
|
|
|
|
$
|
|
76,401
|
|
|
|
|
|
Adjusted Net Income Margin (3)
|
|
|
|
|
|
|
4.29
|
%
|
|
|
|
|
|
|
8.55
|
%
|
|
|
|
|
|
4.14
|
%
|
|
|
|
|
|
|
7.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
Company retained interest in finance receivables, net at fair market
value
|
|
|
|
|
|
$
|
239,591
|
|
|
|
|
|
$
|
|
184,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Securitized product TRB purchases includes purchases during the
period of assets that will be securitized (guaranteed structured
settlements, annuities, and lottery payment streams)
|
(2)
|
Other TRB Purchases includes receivables purchased from life
contingent structured settlements and the purchase price of
pre-settlement fundings during the period
|
(3)
|
Adjusted Net Income Margin is adjusted net income divided by Total
TRB Purchases during the period
|
|
|
JGWPT Holdings Inc.
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
Reconciliation of Net Income to Adjusted Net Income - Unaudited
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2013
|
|
|
Adjustments
to reflect
|
|
|
Interest
Income
on
|
|
|
Share
|
|
|
|
|
|
Severance
M&A
|
|
|
Other
|
|
|
|
|
|
Q4 2013
|
|
|
|
|
|
GAAP
|
|
|
deconsolidation
|
|
|
Retained
|
|
|
Based
|
|
|
Income
|
|
|
and
|
|
|
Non-recurring
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Results
|
|
|
of securitizations
|
|
|
Interest
|
|
|
Compensation
|
|
|
Tax
|
|
|
Consulting
|
|
|
Expense
|
|
|
Wealthbuilder
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
$
|
46,130
|
|
|
|
$
|
(40,349
|
)
|
|
|
$
|
4,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,051
|
)
|
|
|
$
|
8,595
|
|
|
Unrealized gains on VIE and other finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
receivables, long-term debt and derivatives
|
|
|
|
|
38,733
|
|
|
|
|
6,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,788
|
|
|
Gain (loss) on swap termination, net
|
|
|
|
|
(151
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(151
|
)
|
|
Servicing, broker, and other fees
|
|
|
|
|
1,585
|
|
|
|
|
1,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,888
|
|
|
Other
|
|
|
|
|
1,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,266
|
|
|
Realized loss on notes receivable, at fair value
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Gain on extinguishment of debt, net
|
|
|
|
|
14,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,217
|
|
|
Realized and unrealized gains (losses) on marketable securities, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,776
|
)
|
|
|
|
-
|
|
|
Total revenue
|
|
|
|
$
|
106,556
|
|
|
|
$
|
(32,991
|
)
|
|
|
$
|
4,865
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(6,827
|
)
|
|
|
$
|
71,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
18,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,639
|
|
|
Interest expense
|
|
|
|
|
53,061
|
|
|
|
|
(34,763
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,298
|
|
|
Compensation and benefits
|
|
|
|
|
10,101
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
(147
|
)
|
|
|
|
|
|
|
|
|
|
10,014
|
|
|
General and administrative
|
|
|
|
|
5,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(325
|
)
|
|
|
|
|
|
|
|
|
|
4,973
|
|
|
Professional and consulting
|
|
|
|
|
4,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(548
|
)
|
|
|
|
(1,921
|
)
|
|
|
|
|
|
|
2,445
|
|
|
Debt prepayment and termination
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Debt issuance
|
|
|
|
|
3,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,275
|
|
|
Securitization debt maintenance
|
|
|
|
|
1,565
|
|
|
|
|
(1,563
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
Provision for losses on finance receivables
|
|
|
|
|
1,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,321
|
|
|
Depreciation and amortization
|
|
|
|
|
1,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,472
|
|
|
Installment obligations expense (income), net
|
|
|
|
|
6,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,827
|
)
|
|
|
|
-
|
|
|
Loss on disposal/impairment of fixed assets
|
|
|
|
|
4,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,200
|
)
|
|
|
|
|
|
|
-
|
|
|
Total expenses
|
|
|
|
$
|
110,673
|
|
|
|
$
|
(36,326
|
)
|
|
|
$
|
-
|
|
|
$
|
60
|
|
|
|
$
|
-
|
|
|
|
$
|
(1,020
|
)
|
|
|
$
|
(6,121
|
)
|
|
|
$
|
(6,827
|
)
|
|
|
$
|
60,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
|
|
$
|
(4,117
|
)
|
|
|
$
|
3,335
|
|
|
|
$
|
4,865
|
|
|
$
|
(60
|
)
|
|
|
$
|
-
|
|
|
|
$
|
1,020
|
|
|
|
$
|
6,121
|
|
|
|
$
|
-
|
|
|
|
$
|
11,164
|
|
|
Provision (benefit) for income taxes
|
|
|
|
|
1,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,245
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Net income (loss) attributable to J.G. Wentworth, LLC
|
|
|
|
$
|
(5,362
|
)
|
|
|
$
|
3,335
|
|
|
|
$
|
4,865
|
|
|
$
|
(60
|
)
|
|
|
$
|
1,245
|
|
|
|
$
|
1,020
|
|
|
|
$
|
6,121
|
|
|
|
$
|
-
|
|
|
|
$
|
11,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JGWPT Holdings Inc.
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
Reconciliation of Net Income to Adjusted Net Income - Unaudited
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2012
|
|
|
Adjustments
to reflect
|
|
|
Interest
Income on
|
|
|
Share
|
|
|
|
|
|
Severance
M&A
|
|
|
Other
|
|
|
|
|
|
Q4 2012
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
deconsolidation
|
|
|
Retained
|
|
|
Based
|
|
|
Income
|
|
|
and
|
|
|
Non-recurring
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
Results
|
|
|
of securitizations
|
|
|
Interest
|
|
|
Compensation
|
|
|
Tax
|
|
|
Consulting
|
|
|
Expense
|
|
|
Wealthbuilder
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
|
|
|
$
|
45,233
|
|
|
|
$
|
(37,519
|
)
|
|
|
$
|
4,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,111
|
)
|
|
|
$
|
9,905
|
|
|
Unrealized gains on VIE and other finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
receivables, long-term debt and derivatives
|
|
|
|
|
|
|
|
|
82,163
|
|
|
|
|
(18,525
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,638
|
|
|
Gain (loss) on swap termination, net
|
|
|
|
|
|
|
|
|
(1,869
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,869
|
)
|
|
Servicing, broker, and other fees
|
|
|
|
|
|
|
|
|
1,723
|
|
|
|
|
1,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,065
|
|
|
Other
|
|
|
|
|
|
|
|
|
(1,240
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,240
|
)
|
|
Realized and unrealized gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
marketable securities, net
|
|
|
|
|
|
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(192
|
)
|
|
|
|
-
|
|
|
Total revenue
|
|
|
|
|
|
|
|
$
|
126,202
|
|
|
|
$
|
(54,702
|
)
|
|
|
$
|
4,302
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(2,303
|
)
|
|
|
$
|
73,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
$
|
17,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17,075
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
39,699
|
|
|
|
|
(31,660
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,039
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
|
10,910
|
|
|
|
|
|
|
|
|
|
|
(552
|
)
|
|
|
|
|
|
|
(42
|
)
|
|
|
|
|
|
|
|
|
|
10,316
|
|
|
General and administrative
|
|
|
|
|
|
|
|
|
4,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,048
|
|
|
Professional and consulting
|
|
|
|
|
|
|
|
|
4,938
|
|
|
|
|
(108
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,310
|
)
|
|
|
|
|
|
|
|
|
|
3,520
|
|
|
Debt issuance
|
|
|
|
|
|
|
|
|
3,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,156
|
|
|
Securitization debt maintenance
|
|
|
|
|
|
|
|
|
1,472
|
|
|
|
|
(1,472
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Provision for losses on finance receivables
|
|
|
|
|
|
|
|
|
1,918
|
|
|
|
|
(57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,861
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
1,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,650
|
|
|
Installment obligations expense (income), net
|
|
|
|
|
|
|
|
|
2,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,303
|
)
|
|
|
|
-
|
|
|
Loss on disposal/impairment of fixed assets
|
|
|
|
|
|
|
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(300
|
)
|
|
|
|
|
|
|
|
Total expenses
|
|
|
|
|
|
|
|
$
|
87,469
|
|
|
|
$
|
(33,297
|
)
|
|
|
$
|
-
|
|
|
$
|
(552
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(1,352
|
)
|
|
|
$
|
(300
|
)
|
|
|
$
|
(2,303
|
)
|
|
|
$
|
49,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
|
|
|
|
|
|
$
|
38,733
|
|
|
|
$
|
(21,405
|
)
|
|
|
$
|
4,302
|
|
|
$
|
552
|
|
|
|
$
|
-
|
|
|
|
$
|
1,352
|
|
|
|
$
|
300
|
|
|
|
$
|
-
|
|
|
|
$
|
23,834
|
|
|
Provision (benefit) for income taxes
|
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
38,607
|
|
|
|
|
(21,405
|
)
|
|
|
|
4,302
|
|
|
|
552
|
|
|
|
|
126
|
|
|
|
|
1,352
|
|
|
|
|
300
|
|
|
|
|
-
|
|
|
|
|
23,834
|
|
|
Less noncontrolling interest in earnings of affiliate
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Net income (loss) attributable to J.G.
Wentworth, LLC
|
|
|
|
|
|
|
|
$
|
38,607
|
|
|
|
$
|
(21,405
|
)
|
|
|
$
|
4,302
|
|
|
$
|
552
|
|
|
|
$
|
126
|
|
|
|
$
|
1,352
|
|
|
|
$
|
300
|
|
|
|
$
|
-
|
|
|
|
$
|
23,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JGWPT Holdings Inc.
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
Reconciliation of Net Income to Adjusted Net Income - Unaudited
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD 2013
|
|
|
Adjustments
to reflect
|
|
|
Interest
Income on
|
|
|
Share
|
|
|
|
|
Severance
M&A
|
|
|
Other
|
|
|
|
|
|
YTD 2013
|
|
|
|
|
|
GAAP
|
|
|
deconsolidation
|
|
|
Retained
|
|
|
Based
|
|
Income
|
|
|
and
|
|
|
Non-recurring
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Results
|
|
|
of securitizations
|
|
|
Interest
|
|
|
Compensation
|
|
Tax
|
|
|
Consulting
|
|
|
Expense
|
|
|
Wealthbuilder
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
$
|
|
172,423
|
|
|
|
$
|
(150,945
|
)
|
|
|
$
|
18,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,348
|
)
|
|
|
$
|
35,839
|
|
Unrealized gains on VIE and other finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
receivables, long-term debt and derivatives
|
|
|
|
|
|
252,801
|
|
|
|
|
(42,358
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
210,443
|
|
Gain on swap termination, net
|
|
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200
|
|
Servicing, broker, and other fees
|
|
|
|
|
|
5,276
|
|
|
|
|
5,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,824
|
|
Other
|
|
|
|
|
|
1,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,209
|
|
Realized loss on notes receivable, at fair value
|
|
|
|
|
|
(1,862
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,862
|
|
|
|
|
|
|
|
-
|
|
Gain on extinguishment of debt, net
|
|
|
|
|
|
14,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,217
|
|
Realized and unrealized gains on marketable securities, net
|
|
|
|
|
|
15,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,299
|
)
|
|
|
|
-
|
|
Total revenue
|
|
|
|
$
|
|
459,563
|
|
|
|
$
|
(187,755
|
)
|
|
|
$
|
18,709
|
|
|
$
|
-
|
|
|
$
|
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
1,862
|
|
|
|
$
|
(19,647
|
)
|
|
|
$
|
272,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
|
70,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,304
|
|
Interest expense
|
|
|
|
|
|
193,035
|
|
|
|
|
(128,226
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,809
|
|
Compensation and benefits
|
|
|
|
|
|
42,595
|
|
|
|
|
|
|
|
|
|
|
(1,452
|
)
|
|
|
|
|
|
(3,098
|
)
|
|
|
|
|
|
|
|
|
|
38,045
|
|
General and administrative
|
|
|
|
|
|
20,179
|
|
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(698
|
)
|
|
|
|
|
|
|
|
|
|
19,450
|
|
Professional and consulting
|
|
|
|
|
|
18,820
|
|
|
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,620
|
)
|
|
|
|
(3,942
|
)
|
|
|
|
|
|
|
13,209
|
|
Debt issuance
|
|
|
|
|
|
8,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,930
|
|
Securitization debt maintenance
|
|
|
|
|
|
6,091
|
|
|
|
|
(6,091
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Provision for losses on finance receivables
|
|
|
|
|
|
5,695
|
|
|
|
|
(27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,668
|
|
Depreciation and amortization
|
|
|
|
|
|
5,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,703
|
|
Installment obligations expense (income), net
|
|
|
|
|
|
19,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,647
|
)
|
|
|
|
-
|
|
Loss on disposal/impairment of fixed assets
|
|
|
|
|
|
4,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,200
|
)
|
|
|
|
|
|
|
-
|
|
Total expenses
|
|
|
|
$
|
|
395,199
|
|
|
|
$
|
(134,424
|
)
|
|
|
$
|
-
|
|
|
$
|
(1,452
|
)
|
|
$
|
|
-
|
|
|
|
$
|
(5,416
|
)
|
|
|
$
|
(8,142
|
)
|
|
|
$
|
(19,647
|
)
|
|
|
$
|
226,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
|
|
$
|
|
64,364
|
|
|
|
$
|
(53,331
|
)
|
|
|
$
|
18,709
|
|
|
$
|
1,452
|
|
|
$
|
|
-
|
|
|
|
$
|
5,416
|
|
|
|
$
|
10,004
|
|
|
|
$
|
-
|
|
|
|
$
|
46,614
|
|
Provision (benefit) for income taxes
|
|
|
|
|
|
2,546
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(2,546
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net income (loss)
|
|
|
|
$
|
|
61,818
|
|
|
|
$
|
(53,331
|
)
|
|
|
$
|
18,709
|
|
|
$
|
1,452
|
|
|
$
|
|
2,546
|
|
|
|
$
|
5,416
|
|
|
|
$
|
10,004
|
|
|
|
$
|
-
|
|
|
|
$
|
46,614
|
|
Less noncontrolling interest in earnings of affiliate
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net income (loss) attributable to J.G.
Wentworth, LLC
|
|
|
|
$
|
|
61,818
|
|
|
|
$
|
(53,331
|
)
|
|
|
$
|
18,709
|
|
|
$
|
1,452
|
|
|
$
|
|
2,546
|
|
|
|
$
|
5,416
|
|
|
|
$
|
10,004
|
|
|
|
$
|
-
|
|
|
|
$
|
46,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JGWPT Holdings Inc.
|
|
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
|
|
Reconciliation of Net Income to Adjusted Net Income - Unaudited
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD 2012
|
|
|
Adjustments
to reflect
|
|
|
Income on
|
|
|
Share
|
|
|
|
|
|
Severance
M&A
|
|
|
Other
|
|
|
|
|
|
YTD 2012
|
|
|
|
|
|
GAAP
|
|
|
deconsolidation
|
|
|
Retained
|
|
|
Based
|
|
|
Income
|
|
|
and
|
|
|
Non-recurring
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Results
|
|
|
of securitizations
|
|
|
Interest
|
|
|
Compensation
|
|
|
Tax
|
|
|
Consulting
|
|
|
Expense
|
|
|
Wealthbuilder
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
$
|
|
177,748
|
|
|
|
$
|
(149,883
|
)
|
|
|
$
|
16,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,580
|
)
|
|
|
$
|
39,657
|
|
|
Unrealized gains on VIE and other finance receivables,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
long-term debt and derivatives
|
|
|
|
|
|
270,787
|
|
|
|
|
(51,599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
219,188
|
|
|
Gain (loss) on swap termination, net
|
|
|
|
|
|
(2,326
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,326
|
)
|
|
Servicing, broker, and other fees
|
|
|
|
|
|
9,303
|
|
|
|
|
5,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,252
|
|
|
Other
|
|
|
|
|
|
(856
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(856
|
)
|
|
Realized and unrealized gains (losses) on marketable securities, net
|
|
|
|
|
|
12,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,741
|
)
|
|
|
|
-
|
|
|
Total revenue
|
|
|
|
$
|
|
467,397
|
|
|
|
$
|
(195,533
|
)
|
|
|
$
|
16,372
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(17,321
|
)
|
|
|
$
|
270,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
|
73,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
73,307
|
|
|
Interest expense
|
|
|
|
|
|
158,631
|
|
|
|
|
(126,650
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,981
|
|
|
Compensation and benefits
|
|
|
|
|
|
43,584
|
|
|
|
|
|
|
|
|
|
|
(2,393
|
)
|
|
|
|
|
|
|
(1,405
|
)
|
|
|
|
|
|
|
|
|
|
39,786
|
|
|
General and administrative
|
|
|
|
|
|
14,613
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,606
|
|
|
Professional and consulting
|
|
|
|
|
|
15,874
|
|
|
|
|
(69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,959
|
)
|
|
|
|
|
|
|
|
|
|
12,846
|
|
|
Debt issuance
|
|
|
|
|
|
9,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,124
|
|
|
Securitization debt maintenance
|
|
|
|
|
|
5,208
|
|
|
|
|
(5,208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Provision for losses on finance receivables
|
|
|
|
|
|
3,805
|
|
|
|
|
(57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,748
|
|
|
Depreciation and amortization
|
|
|
|
|
|
6,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,385
|
|
|
Installment obligations expense (income), net
|
|
|
|
|
|
17,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,321
|
)
|
|
|
|
-
|
|
|
Loss on disposal/impairment of fixed assets
|
|
|
|
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(300
|
)
|
|
|
|
|
|
|
-
|
|
|
Total expenses
|
|
|
|
$
|
|
348,152
|
|
|
|
$
|
(131,991
|
)
|
|
|
$
|
-
|
|
|
$
|
(2,393
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(4,364
|
)
|
|
|
$
|
(300
|
)
|
|
|
$
|
(17,321
|
)
|
|
|
$
|
191,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
|
|
$
|
|
119,245
|
|
|
|
$
|
(63,542
|
)
|
|
|
$
|
16,372
|
|
|
$
|
2,393
|
|
|
|
$
|
-
|
|
|
|
$
|
4,364
|
|
|
|
$
|
300
|
|
|
|
$
|
-
|
|
|
|
$
|
79,132
|
|
|
Provision (benefit) for income taxes
|
|
|
|
|
|
(227
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Net income (loss)
|
|
|
|
$
|
|
119,472
|
|
|
|
$
|
(63,542
|
)
|
|
|
$
|
16,372
|
|
|
$
|
2,393
|
|
|
|
$
|
(227
|
)
|
|
|
$
|
4,364
|
|
|
|
$
|
300
|
|
|
|
$
|
-
|
|
|
|
$
|
79,132
|
|
|
Less noncontrolling interest in earnings of affiliate
|
|
|
|
|
|
2,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,731
|
|
|
Net income (loss) attributable to J.G. Wentworth,
LLC
|
|
|
|
$
|
|
116,741
|
|
|
|
$
|
(63,542
|
)
|
|
|
$
|
16,372
|
|
|
$
|
2,393
|
|
|
|
$
|
(227
|
)
|
|
|
$
|
4,364
|
|
|
|
$
|
300
|
|
|
|
$
|
-
|
|
|
|
$
|
76,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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