Press Releases

Imperial Holdings, Inc. Announces First Quarter 2015 Results
Company Reports Book Value of $9.86 per Share
PR Newswire
BOCA RATON, Fla.

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-


Imperial Holdings, Inc. and Subsidiaries


CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)







For the Three Months Ended 






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)


Weighted average shares outstanding:








    Basic and diluted



21,361,930


21,344,112


 

 




Imperial Holdings, Inc. and Subsidiaries




CONSOLIDATED BALANCE SHEETS 






March 31,


December 31,






2015


2014*






(Unaudited)








(In thousands except share data)




ASSETS





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




Fixed assets, net


341


355




Investment in affiliates


2,384


2,384




Deferred debt costs, net


3,971


3,936




  Total assets


$           484,970


$           459,931












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.





 

 

 

Life Finance Business Segment






For the Three Months Ended 



March 31,



2015


2014





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


$                   -







End of Period — Policies Owned





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


SOURCE Imperial Holdings, Inc.

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