J.G. Wentworth Company (fka JGWEQ)

[John Kent]

The J.G. Wentworth Company® Reports Second Quarter 2017 Results

The following are highlights from the second quarter results:

Second Quarter 2017 Consolidated Results:

Consolidated revenues were $101.4 million, an increase of $18.7 million from the $82.7 million reported in the second quarter of 2016. The increase was due primarily to the $19.1 million increase in revenues generated by the Structured Settlement Payments segment's ("Structured Settlements") revenue driven principally by a $16.9 million favorable change in unrealized gains (losses) on securitized finance receivables, debt and derivatives, offset by a $0.4 million decrease in our Home Lending segment's revenues.
Home Lending generated loan lock volume of $1.6 billion and closed loan volume of $859.9 million in the second quarter of 2017. The outstanding unpaid principal balance of our mortgage servicing rights ("MSR") portfolio was $4.5 billion as of June 30, 2017. The Company's MSR portfolio had a fair value of $46.8 million as of June 30, 2017.
The Company had $4.3 billion in VIE and other finance receivables, at fair value, and $4.1 billion in VIE long-term debt issued by securitization and permanent financing trusts, at fair value, as of June 30, 2017. The debt issued by our VIE securitization and permanent financing trusts is recourse only to the respective entities that issued the debt and is non-recourse to the Company and its other subsidiaries.
Consolidated net loss was $12.1 million compared to the $23.5 million consolidated net loss in the second quarter of 2016. The $11.4 million favorable change was due to a $22.9 million decline in Structured Settlements pre-tax loss driven by the $19.1 million increase in the segment's revenue, partially offset by an increase in Home Lending's operating expenses which was driven by a $2.6 million increase in advertising expense in line with the direct-to-consumer growth plan.

https://www.otcmarkets.com/stock/JGWE/news/The-J-G--Wentworth-Company-reg--Reports-Second-Quarter-2017-Results?id=167072&b=y