BOCA RATON, Fla., May 6, 2015 /PRNewswire/ -- Imperial Holdings, Inc. (NYSE: IFT) ("Imperial" or the "Company") announced today its financial results for the three months ended March 31, 2015.
Three Months Ended March 31, 2015
Total income from continuing operations was $13.0 million for the three months ended March 31, 2015 compared to a total income from continuing operations of $13.6 million for the same period in 2014. Total expenses were $19.1 million for the three months ended March 31, 2015 compared to $12.9 million for the same period in 2014. The increase in expenses was primarily due to a $3.5 million increase in interest expense, approximately $2.8 million of this amount is related to the Company's Senior Secured Notes, and a $1.2 million increase in professional fees. Additionally, the fair value of the Company's revolving credit facility debt was $3 million higher than for the same period in 2014.
The Company reported a net loss from continuing operations of $4.2 million, or ($.19) per diluted share, for the three months ended March 31, 2015, compared to a net loss of $3.3 million, or ($0.16) per diluted share, for the same period in 2014.
As of March 31, 2015, the Company had cash and cash equivalents of approximately $39.6 million. The Company's book value at March 31, 2015 was $9.86 per share. As of May 6, 2015, the Company had 21,402,990 shares outstanding.
Life Settlements Portfolio Highlights
At March 31, 2015, the estimated fair value of the Company's 632 life insurance policies was $429.6 million compared to $388.9 million for 607 life insurance policies at December 31, 2014. The weighted average discount rate was 17.31% at March 31, 2015 compared to 17.77% at December 31, 2014. The aggregate face value of the Company's portfolio of life insurance policies was approximately $3.0 billion at March 31, 2015. During the first quarter, the Company experienced 5 maturities totaling $13.2 million, including one maturity for $741,000 which was acquired during the first quarter and not pledged as collateral under the revolving credit facility. Additionally, since the quarter end, the Company has experienced an additional maturity with a face value of $3.1 million.
Antony Mitchell, Chief Executive Officer of Imperial, commented: "This quarter we acquired 30 policies which were not pledged to our revolving credit facility. Together, with policy acquisitions made in the fourth quarter, we have shaped a portfolio that now should provide greater short term cash flows. This portfolio has now reached $115 million in fair value -- more than double its value just two quarters ago. This significantly larger and more diversified portfolio has also allowed us to begin actively working towards long-term, lower cost financing."
Conference Call
The Company will host a conference call today at 5:00 P.M ET. To join the call, please dial US Toll Free (877) 312-5529 or from Outside of the US (253) 237-1147 and provide Conference ID 23666006 when prompted.
The conference call will also be broadcast live through a link on the Investor Relations section of the Company's website at www.imperial.com. Please visit the website at least 10 minutes prior to the call to register, download and install any necessary audio software.
About Imperial Holdings, Inc.
Imperial is a leading specialty finance company that provides customized liquidity solutions to owners of illiquid financial assets. More information about Imperial can be found at www.imperial.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Imperial Holdings, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although Imperial believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Imperial does not assume a duty to update these forward-looking statements.
-SELECTED FINANCIAL TABLES FOLLOW-
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Imperial Holdings, Inc. and Subsidiaries | |||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
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For the Three Months Ended |
|||||||
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March 31, |
|||||||
|
2015 |
2014 |
||||||
|
Income |
(in thousands, except share and per share data) |
||||||
|
Interest income |
$ 6 |
$ 2 |
|||||
|
Loss on life settlements, net |
- |
(360) |
|||||
|
Change in fair value of life settlements |
12,912 |
13,956 |
|||||
|
Other income |
62 |
4 |
|||||
|
Total income |
12,980 |
13,602 |
|||||
|
Expenses |
|||||||
|
Interest expense |
6,278 |
2,801 |
|||||
|
Change in fair value of Revolving Credit Facility debt |
4,139 |
1,129 |
|||||
|
Change in fair value of conversion derivative liability |
- |
2,062 |
|||||
|
Personnel costs |
1,728 |
2,168 |
|||||
|
Legal fees |
3,761 |
2,844 |
|||||
|
Professional fees |
2,323 |
1,171 |
|||||
|
Insurance |
346 |
423 |
|||||
|
Other selling, general and administrative expenses |
507 |
346 |
|||||
|
Total expenses |
19,082 |
12,944 |
|||||
|
(Loss) income from continuing operations before income taxes |
(6,102) |
658 |
|||||
|
(Benefit) provision for income taxes |
(1,937) |
3,976 |
|||||
|
Net loss from continuing operations |
$ (4,165) |
$ (3,318) |
|||||
|
Discontinued Operations: |
|||||||
|
Loss from discontinued operation |
(256) |
(19) |
|||||
|
(Benefit) provision for income taxes |
(99) |
- |
|||||
|
Net loss from discontinued operations |
$ (157) |
$ (19) |
|||||
|
Net loss |
$ (4,322) |
$ (3,337) |
|||||
|
Basic and diluted loss per share: |
|||||||
|
Continuing operations |
$ (0.19) |
$ (0.16) |
|||||
|
Discontinued operations |
$ (0.01) |
$ - |
|||||
|
Net loss |
$ (0.20) |
$ (0.16) |
|||||
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Weighted average shares outstanding: |
|||||||
|
Basic and diluted |
21,361,930 |
21,344,112 |
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Imperial Holdings, Inc. and Subsidiaries | |||||||
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CONSOLIDATED BALANCE SHEETS | |||||||
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March 31, |
December 31, | ||||||
|
2015 |
2014* | ||||||
|
(Unaudited) |
|||||||
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(In thousands except share data) | |||||||
|
ASSETS |
|||||||
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Assets |
|||||||
|
Cash and cash equivalents |
$ 34,438 |
$ 51,166 | |||||
|
Cash and cash equivalents (VIE) |
5,166 |
3,751 | |||||
|
Prepaid expenses and other assets |
2,247 |
1,502 | |||||
|
Deposits - other |
1,365 |
1,340 | |||||
|
Deposits on purchases of life settlements |
346 |
1,630 | |||||
|
Structured settlement receivables, at estimated fair value |
377 |
384 | |||||
|
Structured settlement receivables at cost, net |
597 |
597 | |||||
|
Investment in life settlements, at estimated fair value |
114,952 |
82,575 | |||||
|
Investment in life settlements, at estimated fair value (VIE) |
314,598 |
306,311 | |||||
|
Receivable for maturity of life settlements |
741 |
- | |||||
|
Receivable for maturity of life settlements (VIE) |
3,447 |
4,000 | |||||
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Fixed assets, net |
341 |
355 | |||||
|
Investment in affiliates |
2,384 |
2,384 | |||||
|
Deferred debt costs, net |
3,971 |
3,936 | |||||
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Total assets |
$ 484,970 |
$ 459,931 | |||||
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LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
|
Liabilities |
|||||||
|
Accounts payable and accrued expenses |
$ 7,050 |
$ 6,140 | |||||
|
Accounts payable and accrued expenses (VIE) |
585 |
423 | |||||
|
Other liabilities |
1,333 |
1,256 | |||||
|
Interest payable - senior unsecured convertible notes |
768 |
2,272 | |||||
|
Senior unsecured convertible notes, net of discount |
56,494 |
55,881 | |||||
|
Interest payable - senior secured notes |
423 |
261 | |||||
|
Senior secured notes, net of discount |
48,153 |
24,036 | |||||
|
Revolving Credit Facility debt, at estimated fair value (VIE) |
152,498 |
145,831 | |||||
|
Deferred tax liability |
6,692 |
8,728 | |||||
|
Total liabilities |
273,996 |
244,828 | |||||
|
Commitments and Contingencies |
|||||||
|
Stockholders' Equity |
|||||||
|
Common stock (par value $0.01 per share, 80,000,000 authorized; 21,402,990 issued |
|||||||
|
and outstanding as of March 31, 2015 and December 31, 2014) |
214 |
214 | |||||
|
Preferred stock (par value $0.01 per share, 40,000,000 authorized; 0 issued and |
|||||||
|
outstanding as of March 31, 2015 and December 31, 2014) |
- |
- | |||||
|
Additional paid-in-capital |
266,898 |
266,705 | |||||
|
Accumulated deficit |
(56,138) |
(51,816) | |||||
|
Total stockholders' equity |
210,974 |
215,103 | |||||
|
Total liabilities and stockholders' equity |
$ 484,970 |
$ 459,931 | |||||
|
* Derived from audited consolidated financial statements. |
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Life Finance Business Segment |
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For the Three Months Ended |
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|
March 31, |
||||
|
2015 |
2014 |
|||
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Period Acquisitions — Policies Owned |
||||
|
Number of policies acquired |
30 |
- |
||
|
Average age of insured at acquisition |
86.0 |
- |
||
|
Average life expectancy - Calculated LE (Years) |
5.0 |
- |
||
|
Average death benefit |
$ 2,798 |
$ - |
||
|
Aggregate purchase price |
$ 25,411 |
$ - |
||
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End of Period — Policies Owned |
||||
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Number of policies owned |
632 |
601 |
||
|
Average Life Expectancy - Calculated LE (Years) |
10.4 |
11.4 |
||
|
Aggregate Death Benefit |
$ 3,001,987 |
$ 2,920,399 |
||
|
Aggregate fair value |
$ 429,550 |
$ 315,464 |
||
|
Monthly premium — average per policy |
$ 8.2 |
$ 7.5 |
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SOURCE Imperial Holdings, Inc.
