The J.G. Wentworth Company® Reports Second Quarter 2016 Results
Home Lending Achieves Record Locked and Closed Lock Volumes Company on Track to Achieve Annual Cost Savings Goal
RADNOR, Pa. – (BUSINESS WIRE) – August 9, 2016 The J.G. Wentworth Company® (“J.G. Wentworth” or the “Company”) (OTCQX: JGWE), a diversified financial services company, today reports financial results for the second quarter 2016. “I am very pleased by the progress made during the second quarter. Home Lending reported record locked and closed loan volumes, and Structured Settlements continued its turnaround as we focus on profitability. Additionally, we now believe we have a path to increase our annual cost savings to $40 – $45 million,” said Stewart A. Stockdale, Chief Executive Officer, The J.G. Wentworth Company.
The following are highlights from the second quarter:
GAAP Second Quarter 2016 Results:
Adjusted Non-GAAP* Second Quarter 2016 Results:
Roger O. Gasper, J.G. Wentworth’s newly appointed Chief Financial Officer, said, “I am delighted by the $8.0 million in Adjusted EBITDA* generated by Home Lending, which represents a $1.7 million, or 26.9% improvement over the segment’s 2016’s first quarter results that were driven by a $351.3 million (32.6%) and $277.2 million (48.8%) increase in locked loan and closed loan volume, respectively. Additionally, the $1.3 million improvement in Structured Settlement’s Adjusted EBITDA* over the first quarter of 2016 demonstrates continued progress in the implementation of our cost savings initiatives that began late last year. We are working hard to capitalize on our strengths and the momentum we’ve achieved in Home Lending, while simultaneously navigating the current challenges within the structured settlements industry.”
* This earnings press release contains non-GAAP measures, which as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Results for the three and six month periods ended June 30, 2016 and 2015, descriptions of non-GAAP measures and reconciliations to GAAP figures are included in the accompanying financial information.
About The J.G. Wentworth Company®
The J.G. Wentworth Company® is focused on providing direct-to-consumer access to financing needs through a variety of solutions, including: mortgage lending and refinancing, structured settlement, annuity and lottery payment purchasing, prepaid cards, and access to providers of personal loans.
Mortgage loans are offered by J.G. Wentworth Home Lending, LLC NMLS ID # 2925 (www.nmlsconsumeraccess.org), 3350 Commission Court, Woodbridge, VA 22192; 888-349-3773.
For more information about The J.G. Wentworth Company®, visit www.jgw.com or use the information provided below.
Conference Call and Webcast
Management will host a webcast to discuss the second quarter 2016 financial results today, August 9, 2016, at 10:00 AM Eastern time. The webcast will include remarks from J.G. Wentworth’s Chief Executive Officer, Stewart Stockdale, and Executive Vice President & Chief Financial Officer, Roger Gasper.
This call will be accompanied by a presentation and will be available via a webcast of the conference call live on the Investor Relations section of the Company’s website listed below.
Interested parties unable to access the conference call and view the presentation via the webcast through this link: The J.G. Wentworth Company® Second Quarter 2016 Webcast, may dial the Participant conference number: (877) 201-0168, Conference ID: 40896847.
A playback will be available through Tuesday, August 16th, 2016. To participate, utilize the dial-in information listed below:
Playback conference number: (855) 859-2056, Conference ID: 40896847. The presentation will be posted to the Company’s website after the call.
Certain statements in this press release constitute “forward-looking statements.” All statements, other than statements of historical fact, are forward-looking statements. You can identify such statements because they contain words such as ”plans,” ”expects” or ”does expect,” ”budget,” ”forecasts,” ”anticipates” or ”does not anticipate,” ”believes,” ”intends,” and similar expressions or statements that certain actions, events or results ”may,” ”could,” ”would,” ”might,” or ”will,” be taken, occur or be achieved. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause our actual results, performance and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. Consideration should also be given to the areas of risk set forth under the heading “Risk Factors” in our filings with the Securities and Exchange Commission, and as set forth more fully under “Part 1, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015, as updated by “Part II, Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. These risks and uncertainties include, among other things: our ability to execute on our business strategy; our ability to successfully compete in the industries in which we operate; our dependence on the effectiveness of direct response marketing; our ability to retain and attract qualified senior management; any improper use of or failure to protect the personally identifiable information of past, current and prospective customers to which we have access; our ability to upgrade and integrate our operational and financial information systems, maintain uninterrupted access to such systems and adapt to technological changes in the industries in which we operate; our dependence on third parties, including our ability to maintain relationships with such third parties and our potential exposure to liability for the actions of such third parties; damage to our reputation and increased regulation of our industries which could result from unfavorable press reports about our business model; the accuracy of the estimates and assumptions of our financial models; infringement of our trademarks or service marks; our ability to maintain our state licenses or obtain new licenses in new markets; changes in, and our ability to comply with, any applicable federal, state and local laws and regulations governing us, including any applicable federal consumer financial laws enforced by the Consumer Financial Protection Bureau; our business model being susceptible to litigation; our ability to continue to purchase structured settlement payments and other financial assets; the public disclosure of the identities of structured settlement holders maintained in our proprietary database; our dependence on the opinions of certain credit rating agencies of the credit quality of our securitizations; our ability to complete future securitizations, other financings or sales on favorable terms; the insolvency of a material number of structured settlement issuers; adverse changes in the residential mortgage lending and real estate markets, including any increases in defaults or delinquencies, especially in geographic areas where our loans are concentrated; our ability to grow our loan origination volume, acquire mortgage servicing rights, or MSRs, and recapture loans that are refinanced; changes in the guidelines of government-sponsored entities, or GSEs, or any discontinuation of, or significant reduction in, the operation of GSEs; potential misrepresentations by borrowers, counterparties and other third parties; changes in prevailing interest rates and our ability to mitigate interest rate risk through hedging strategies; our ability to obtain sufficient working capital at attractive rates or obtain sufficient capital to meet the financing requirements of our business; our ability to remain in compliance with the terms of our substantial indebtedness and to refinance our term debt; our ability to raise additional capital as a result of our Class A common stock now being traded on the OTCQX® Market; and our ability to meet the ongoing eligibility standards of the OTCQX® Market.
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.
The J.G. Wentworth Company®
Erik Hartwell, VP, Investor Relations
The Glover Park Group