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JGWPT Reports Second Quarter TRB of $288 Million; Adjusted Net Income Increases to $17 Million

August 14, 2014
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 through its J.G. Wentworth and Peachtree brands, today reports financial results for the second quarter of 2014. “We look forward to capitalizing on the strong results for the second quarter by leveraging our capabilities to strengthen our core business for future growth and diversification,” said Stewart A. Stockdale, Chief Executive Officer, JGWPT Holdings Inc.

The following are highlights from the second quarter results:

Second Quarter Highlights

  • Total Receivables Balance, or TRB, purchases were $287.7 million, as compared to $294.8 million in the second quarter of 2013 and $260.6 million in the first quarter of 2014.

  • Adjusted Net Income*, or ANI, increased to $17.2 million, as compared to $10.5 million in the second quarter of 2013 and $10.1 million in the first quarter of 2014, driven primarily by lower cost of funds.

  • Adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the loss on swap termination*, was $58.0 million in the second quarter, as compared to $52.3 million in the second quarter of 2013 and $51.8 million in the first quarter of 2014.  The second quarter 2014 unrealized gain includes approximately $2 million related to the purchase of an asset portfolio.

  • Revenues were $123.5 million, an increase of 85.2% from revenues of $66.7 million in the second quarter of 2013, due primarily to the impact of decreasing cost of funds on unrealized gains on VIE and other finance receivables, long-term debt and derivatives.

  • Net income increased to $21.7 million, as compared to a loss of $21.6 million in the second quarter of 2013, due primarily to decreasing cost of funds.

John Schwab, JGWPT’s Chief Financial Officer, said, “The second quarter results reflect the sequential improvement in our TRB as well as adjusted net income and our continued focus on cost control.  In addition, subsequent to quarter-end, we successfully completed our 2014-2 securitization which further strengthens our balance sheet.”

*Results for the three and six month periods ended June 30, 2014 and 2013, as well as our reconciliation of non-GAAP measures, and historic financial information from 2013 to the present, are included in the accompanying financial information.

About JGWPT Holdings Inc.

JGWPT focuses on key sectors, including structured settlement payment purchasing, annuity payment purchasing, lottery payment purchasing and pre-settlement funding. Through our two market-leading and highly recognizable brands, J.G. Wentworth and Peachtree Financial Solutions, we purchase future structured settlement payment streams from our customers.  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 second quarter 2014 financial results today, August 14, 2014, at 10:00 AM Eastern time. The webcast will include remarks from JGWPT’s Chief Executive Officer, Stewart Stockdale, 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:

JGWPT Holdings Inc. Second Quarter 2014 Financial Results Webcast

Interested parties unable to access the conference call via the webcast may dial (877) 201-0168 and reference conference ID 79341678.  A playback of the call is available until August 21, 2014 at (855) 859-2056 with conference ID 79341678.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements.” All statements, other than statements of historical fact, are forward-looking statements. You can identify such statements because they contain words such as ‘‘plans,’’ ‘‘expects,’’ or ‘‘does expect,’’ ‘‘budget,’’ ‘‘forecasts,’’ ‘‘anticipates,’’ or ‘‘does not anticipate,’’ ‘‘believes,’’ ‘‘intends,’’ and similar expressions or statements that certain actions, events or results ‘‘may,’’ ‘‘could,’’ ‘‘would,’’ ‘‘might,’’ or ‘‘will,’’ be taken, occur or be achieved.  Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause our actual results, performance and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements.  Consideration should also be given to the areas of risk set forth under the heading “Risk Factors” in our filings with the Securities and Exchange Commission, and as set forth more fully under “Part 1, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, 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 or other financings 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 outside parties to conduct our transactions including the court system, insurance companies, outside counsel, delivery services and notaries; 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 or downgrade of a material number of structured settlement issuers; changes in current tax law relating to the tax treatment of structured settlements; changes to state or federal, licensing and regulatory regimes; the impact of the March 2014 Consumer Financial Protection Bureau inquiry and any findings or regulations it issues as related to us, our industries, or products or in general; 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 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.

Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to publicly revise any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Condensed Consolidated Balance Sheets
(In thousands, except for shares and per share data)
June 30, December 31,
2014 2013
(Unaudited)
ASSETS
Cash and cash equivalents $ 35,412 $ 39,061
Restricted cash and investments 112,499 109,338
VIE finance receivables, at fair market value 4,208,144 3,818,704
Other finance receivables, at fair market value 79,581 51,945
VIE finance receivables, net of allowances for losses of $7,143 and $6,443, respectively 116,147 117,826
Other finance receivables, net of allowances for losses of $1,841 and $1,899, respectively 18,892 15,166
Notes receivable, at fair market value 5,610
Other receivables, net of allowances for losses of $252 and $243, respectively 12,748 13,529
Fixed assets, net of accumulated depreciation of $5,108 and $4,544, respectively 3,581 3,112
Intangible assets, net of accumulated amortization of $19,166 and $17,781, respectively 46,493 47,878
Goodwill 84,993 84,993
Marketable securities 115,981 121,954
Deferred tax assets, net 1,830
Other assets 37,312 41,151
Total Assets $ 4,871,783 $ 4,472,097
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable $ 9,127 $ 3,903
Accrued expenses 14,131 21,181
Accrued interest 16,483 14,485
VIE derivative liabilities, at fair market value 74,542 70,296
VIE borrowings under revolving credit facilities and other similar borrowings 73,767 41,274
VIE long-term debt 184,676 150,802
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,698,500 3,431,283
Term loan payable 435,683 434,184
Other liabilities 7,551 7,646
Deferred tax liabilities, net 13,625 1,707
Installment obligations payable 115,981 121,954
Total Liabilities $ 4,644,066 $ 4,298,715
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized;
Issued and outstanding at June 30, 2014 – 12,885,225 and 12,793,276;
December 31, 2013 – 11,220,358 and 11,216,429
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized;
Issued and outstanding at June 30, 2014 – 12,266,967; December 31, 2013 – 14,001,583 and 13,984,065
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized;
Issued and outstanding at June 30, 2014 and December 31, 2013 – 0
Additional paid-in-capital 81,796 70,236
Retained earnings (accumulated deficit) 9,713 (5,577)
Accumulated other comprehensive income 612
$ 91,509 $ 65,271
Less: Treasury stock at cost; purchased at June 30, 2014 – 91,949; December 31, 2013 – 3,929 (139)
Total stockholders’ equity, JGWPT Holdings Inc. 91,370 65,271
Non-controlling interests 136,347 108,111
Total Stockholders’ Equity $ 227,717 $ 173,382
Total Liabilities and Stockholders’ Equity 0 $ 4,871,783 $ 4,472,097

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Condensed Consolidated Statements of Operations – Unaudited
(In thousands, except for shares and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2014 2013 2014 2013
REVENUES
Interest income $ 46,638 $ 37,943 $ 94,460 $ 80,582
Unrealized gains on VIE and other finance receivables,
long-term debt, and derivatives 70,317 30,245 157,628 163,843
Loss on swap terminations, net (574) (174)
Servicing, broker, and other fees 1,030 1,423 2,172 2,536
Realized and unrealized gains (losses) on marketable securities, net 3,467 (1,080) 4,356 4,997
Realized gain (loss) on notes receivable, at fair value 2,098 (1,862) 2,098 (1,862)
Other (62) (8) (62) (53)
Total Revenues $ 123,488 $ 66,661 $ 260,078 $ 249,869
EXPENSES
Advertising $ 16,432 $ 17,349 $ 33,925 $ 33,803
Interest expense 50,700 43,346 101,930 85,970
Compensation and benefits 10,483 11,551 19,769 23,396
General and administrative 4,613 6,226 9,083 10,361
Professional and consulting 5,518 4,975 8,962 9,098
Debt issuance 19 44 3,020 3,072
Securitization debt maintenance 1,564 1,544 3,121 2,984
Provision for losses on finance receivables 1,127 1,587 2,218 2,683
Depreciation and amortization 1,121 1,386 2,202 2,763
Installment obligations expense (income), net 4,122 (231) 5,614 6,519
Total Expenses $ 95,699 $ 87,777 $ 189,844 $ 180,649
Income (loss) before income taxes $ 27,789 $ (21,116) $ 70,234 $ 69,220
Provision for income taxes 6,081 524 13,993 1,155
Net Income (Loss) 21,708 $ (21,640) 56,241 $ 68,065
Less non-controlling interest in earnings of affiliate
Net income attributable to J.G. Wentworth, LLC 21,708 $ (21,640) 56,241 $ 68,065
Less: Net income attributable to non-controlling interests 15,440 40,951
Net Income Attributable to JGWPT Holdings Inc. $ 6,268 $ 15,290
Weighted average shares of Class A common stock outstanding:
Basic 12,559,957 12,104,172
Diluted 12,562,042 12,105,548
Net income per share attributable to stockholders of Class A common stock of JGWPT Holdings Inc.
Basic $ 0.50 $ 1.26
Diluted $ 0.50 $ 1.26

 

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 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. In addition, the add-backs described above are consistent with adjustments permitted under our Term Loan agreement. 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 and six months ended June 30, 2014 and 2013 is provided below. Certain prior year numbers have been reclassified to conform with current year presentation.

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Reconciliation of Net Income (Loss) to Adjusted Net Income – Unaudited
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2014 2013 2014 2013
Net Income (Loss) $ 21,708 $ (21,640) $ 56,241 $ 68,065
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 (12,366) 22,036 (47,257) (46,661)
Elimination of interest income from securitized finance receivables
permanent financing trusts (42,041) (32,843) (85,344) (69,750)
Interest income on retained interests in finance receivables 5,001 4,570 9,970 9,125
Servicing income on securitized finance receivables 1,242 1,416 2,500 2,857
Elimination of interest expense on long-term debt related to securitization and
permanent financing trusts 36,213 27,598 73,498 57,955
Professional fees relating to securitizations 1,564 1,575 3,121 3,024
Other adjustments:
Share based compensation 798 441 1,300 1,070
Income tax provision 6,081 524 13,993 1,155
Severance, M & A, and consulting expenses 376 4,985 675 5,349
Other non-recurring items (1,401) 1,862 (1,401) 1,862
Adjusted Net Income $ 17,175 $ 10,524 $ 27,296 $ 34,051
Other Data:
Securitized Product Total Receivables Balance (TRB) Purchases (1) $ 252,544 $ 246,895 $ 476,051 $ 477,600
Life Contingent Purchases 28,185 42,878 58,012 77,100
Presettlement Fundings 6,977 5,073 14,224 10,517
Total TRB Purchases $ 287,706 $ 294,846 $ 548,287 $ 565,217
Adjusted Net Income $ 17,175 $ 10,524 $ 27,296 $ 34,051
Adjusted Net Income TRB Margin (2) 5.97% 3.57% 4.98% 6.02%
Company retained interests in finance receivables at fair market value $ 294,637 $ 234,918
(1) Securitized product TRB purchases includes purchases during the period of assets that are expected to be securitized (guaranteed structured settlements, annuities, and lottery payment streams).
(2) Adjusted Net Income TRB 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
(In thousands)
Adjustments Interest Severance Reclassification
Q2 2014 to reflect Income on Share M&A Associated with Other Q2 2014
GAAP deconsolidation Retained Based Income and Installment Nonrecurring Adjusted
Results of securitizations Interests Compensation Tax Consulting Obligation Payable Items Net Income
REVENUES
Interest income $ 46,638 $ (42,041) $ 5,001 $ (655) $ 6 $ 8,949
Unrealized gains on VIE and other finance
receivables, long-term debt and derivatives 70,317 (12,366) 57,951
Loss on swap terminations, net
Servicing, broker, and other fees 1,030 1,242 2,272
Realized and unrealized gains on marketable
securities, net 3,467 (3,467)
Realized gain on notes receivable, at fair value 2,098 (2,098)
Other (62) (62)
Total Revenues $ 123,488 $ (53,165) $ 5,001 $ – $ – $ – $ (4,122) $ (2,092) $ 69,110
EXPENSES
Advertising $ 16,432 $ 16,432
Interest expense 50,700 (36,213) 14,487
Compensation and benefits 10,483 (798) (86) 9,599
General and administrative 4,613 86 4,699
Professional and consulting 5,518 (376) (691) 4,451
Debt issuance 19 19
Securitization debt maintenance 1,564 (1,564)
Provision for losses on finance receivables 1,127 1,127
Depreciation and amortization 1,121 1,121
Installment obligations expense, net 4,122 (4,122)
Total Expenses $ 95,699 $ (37,777) $ – $ (798) $ – $ (376) $ (4,122) $ (691) $ 51,935
Income before taxes $ 27,789 $ (15,388) $ 5,001 $ 798 $ – $ 376 $ – $ (1,401) $ 17,175
Provision for income taxes 6,081 (6,081)
Net Income $ 21,708 $ (15,388) $ 5,001 $ 798 $ 6,081 $ 376 $ – $ (1,401) $ 17,175

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Reconciliation of Net Income (Loss) to Adjusted Net Income – Unaudited
(In thousands)
Adjustments Interest Severance Reclassification
Q2 2013 to reflect Income on Share M&A Associated with Other Q2 2013
GAAP deconsolidation Retained Based Income and Installment Nonrecurring Adjusted
Results of securitizations Interests Compensation Tax Consulting Obligation Payable Items Net Income
REVENUES
Interest income $ 37,943 $ (32,843) $ 4,570 $ (849) $ 8,821
Unrealized gains on VIE and other finance
receivables, long-term debt and derivatives 30,245 22,036 52,281
Loss on swap terminations, net
Servicing, broker, and other fees 1,423 1,416 2,839
Realized and unrealized losses on marketable
securities, net (1,080) 1,080
Realized loss on notes receivable, at fair value (1,862) 1,862
Other (8) (8)
Total Revenues $ 66,661 $ (9,391) $ 4,570 $ – $ – $ – $ 231 $ 1,862 $ 63,933
EXPENSES
Advertising $ 17,349 $ 17,349
Interest expense 43,346 (27,598) 15,748
Compensation and benefits 11,551 (441) (2,590) 8,520
General and administrative 6,226 (373) 5,853
Professional and consulting 4,975 (31) (2,022) 2,922
Debt issuance 44 44
Securitization debt maintenance 1,544 (1,544)
Provision for losses on finance receivables 1,587 1,587
Depreciation and amortization 1,386 1,386
Installment obligations expense, net (231) 231
Total Expenses $ 87,777 $ (29,173) $ – $ (441) $ – $ (4,985) $ 231 $ – $ 53,409
Income before taxes $ (21,116) $ 19,782 $ 4,570 $ 441 $ – $ 4,985 $ – $ 1,862 $ 10,524
Provision for income taxes 524 (524)
Net Income $ (21,640) $ 19,782 $ 4,570 $ 441 $ 524 $ 4,985 $ – $ 1,862 $ 10,524

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Reconciliation of Net Income to Adjusted Net Income – Unaudited
(In thousands)
Adjustments Interest Severance Reclassification
YTD 2014 to reflect Income on Share M&A Associated with Other YTD 2014
GAAP deconsolidation Retained Based Income and Installment Nonrecurring Adjusted
Results of securitizations Interests Compensation Tax Consulting Obligation Payable Items Net Income
REVENUES
Interest income $ 94,460 $ (85,344) $ 9,970 $ (1,258) $ 6 $ 17,834
Unrealized gains on VIE and other finance
receivables, long-term debt and derivatives 157,628 (47,257) 110,371
Loss on swap terminations, net (574) (574)
Servicing, broker, and other fees 2,172 2,500 4,672
Realized and unrealized gains on marketable
securities, net 4,356 (4,356)
Realized gain on notes receivable, at fair value 2,098 (2,098)
Other (62) (62)
Total Revenues $ 260,078 $ (130,101) $ 9,970 $ – $ – $ – $ (5,614) $ (2,092) $ 132,241
EXPENSES
Advertising $ 33,925 $ 33,925
Interest expense 101,930 (73,498) 28,432
Compensation and benefits 19,769 (1,300) (113) 18,356
General and administrative 9,083 86 9,169
Professional and consulting 8,962 (648) (691) 7,623
Debt issuance 3,020 3,020
Securitization debt maintenance 3,121 (3,121)
Provision for losses on finance receivables 2,218 2,218
Depreciation and amortization 2,202 2,202
Installment obligations expense, net 5,614 (5,614)
Total Expenses $ 189,844 $ (76,619) $ – $ (1,300) $ – $ (675) $ (5,614) $ (691) $ 104,945
Income before taxes $ 70,234 $ (53,482) $ 9,970 $ 1,300 $ – $ 675 $ – $ (1,401) $ 27,296
Provision for income taxes 13,993 (13,993)
Net Income $ 56,241 $ (53,482) $ 9,970 $ 1,300 $ 13,993 $ 675 $ – $ (1,401) $ 27,296

 

JGWPT Holdings Inc.
(Prior to November 14, 2013, J.G. Wentworth, LLC and Subsidiaries)
Reconciliation of Net Income to Adjusted Net Income – Unaudited
(In thousands)
Adjustments Interest Severance Reclassification
YTD 2013 to reflect Income on Share M&A Associated with Other YTD 2013
GAAP deconsolidation Retained Based Income and Installment Nonrecurring Adjusted
Results of securitizations Interests Compensation Tax Consulting Obligation Payable Items Net Income
REVENUES
Interest income $ 80,582 $ (69,750) $ 9,125 $ (1,522) $ 18,435
Unrealized gains on VIE and other finance
receivables, long-term debt and derivatives 163,843 (46,661) 117,182
Loss on swap terminations, net (174) (174)
Servicing, broker, and other fees 2,536 2,857 5,393
Realized and unrealized gains on marketable
securities, net 4,997 (4,997)
Realized loss on notes receivable, at fair value (1,862) 1,862
Other (53) (53)
Total Revenues $ 249,869 $ (113,554) $ 9,125 $ – $ – $ – $ (6,519) $ 1,862 $ 140,783
EXPENSES
Advertising $ 33,803 $ 33,803
Interest expense 85,970 (57,955) 28,015
Compensation and benefits 23,396 (1,070) (2,692) 19,634
General and administrative 10,361 (610) 9,751
Professional and consulting 9,098 (40) (2,047) 7,011
Debt issuance 3,072 3,072
Securitization debt maintenance 2,984 (2,984)
Provision for losses on finance receivables 2,683 2,683
Depreciation and amortization 2,763 2,763
Installment obligations expense, net 6,519 (6,519)
Total Expenses $ 180,649 $ (60,979) $ – $ (1,070) $ – $ (5,349) $ (6,519) $ – $ 106,732
Income before taxes $ 69,220 $ (52,575) $ 9,125 $ 1,070 $ – $ 5,349 $ – $ 1,862 $ 34,051
Provision for income taxes 1,155 (1,155)
Net Income $ 68,065 $ (52,575) $ 9,125 $ 1,070 $ 1,155 $ 5,349 $ – $ 1,862 $ 34,051

 

JGWPT Holdings Inc.
Unaudited
(In thousands, except shares and per share data)
Private Public
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
TRB:
Securitized Product Total Receivables Balance (TRB) Purchases (1) $ 230,705 $ 246,895 $ 254,376 $ 214,437 $ 223,507 $ 252,544
Life Contingent Purchases 34,222 42,878 40,165 39,054 29,827 28,185
Presettlement Fundings 5,444 5,073 4,785 6,997 7,247 6,977
Total $ 270,371 $ 294,846 $ 299,326 $ 260,488 $ 260,581 $ 287,706
ANI Basis:
Total Revenue $ 76,850 $ 63,933 $ 60,343 $ 71,603 $ 63,131 $ 69,110
Total Expenses $ 53,323 $ 53,409 $ 58,944 $ 60,439 $ 53,010 $ 51,935
ANI $ 23,527 $ 10,524 $ 1,399 $ 11,164 $ 10,121 $ 17,175
ANI Margin (2) 30.6% 16.5% 2.3% 15.6% 16.0% 24.9%
ANI TRB Margin (3) 8.7% 3.6% 0.5% 4.3% 3.9% 6.0%
Spread Revenue (4) $ 64,727 $ 52,281 $ 48,998 $ 44,637 $ 51,846 $ 57,951
TRB Spread Margin (5) 24.4% 18.0% 16.6% 17.6% 20.5% 20.6%
GAAP Basis:
Revenue $ 183,208 $ 66,661 $ 103,138 $ 106,556 $ 136,590 $ 123,488
Expenses $ 93,503 $ 88,301 $ 104,023 $ 111,918 $ 102,057 $ 101,780
Net Income (Loss) $ 89,705 $ (21,640) $ (885) $ (5,362) $ 34,533 $ 21,708
Net Income (Loss) Attributable to JGWPT Holdings Inc. $ (5,577) $ 9,022 $ 6,268
Weighted Average Diluted Shares 10,395,574 11,642,283 12,562,042
All-in Shares (6) 14,967,315 29,556,961 29,507,944
Diluted EPS $ (0.54) $ 0.77 $ 0.50
ANI EPS based on All-in Shares (7) $ 0.75 $ 0.34 $ 0.58
Residual Asset Balance $ 249,345 $ 234,918 $ 239,770 $ 239,591 $ 280,208 $ 294,637
Residual Loan Balance $ 70,000 $ 70,000 $ 69,560 $ 68,785 $ 67,989 $ 107,540
10-Year Swap Rate 2.01% 2.70% 2.77% 3.09% 2.84% 2.63%
Term Loan Interest Expense $ 7,673 $ 12,287 $ 14,595 $ 13,457 $ 9,917 $ 10,020
ANI Interest Expense $ 12,267 $ 15,748 $ 18,497 $ 18,298 $ 13,945 $ 14,487
(1) Securitized product TRB purchases includes purchases during the period of assets that will be securitized (guaranteed structured settlements, annuities, and lottery payment streams)
(2) ANI Margin is defined as ANI / ANI Total Revenue
(3) ANI TRB Margin is defined as ANI / Total TRB
(4) Spread Revenue is defined as Adjusted unrealized gains on VIE and other finance receivables, long term debt and derivatives, net of the loss on swap termination
(5) TRB Spread Margin is defined as Spread Revenue / (the sum of Securitized Product TRB Purchases + Life Contingent Purchases)
(6) Represents the weighted average number of outstanding shares of Class A common stock if all Common Interests in JGWPT Holdings, LLC were exchanged.
(7) ANI EPS based on All-in Shares is defined as ANI / All-in Shares

Source: JGWPT Holdings Inc.

Investor Relations:

Jennifer Gambol
866-386-3853
investor@jgwpt.com

Media Inquiries:

866-386-3853
media@jgwpt.com

or

Makovsky for JGWPT Holdings Inc.
Michael Goodwin, 212-508-9639
mgoodwin@makovsky.com