GWG Holdings, Inc. Announces Third Quarter Financial Results
Minneapolis, MN (November 10, 2015) – GWG Holdings, Inc. (NASDAQ: GWGH) (“GWG Holdings” or the “Company”), a specialty finance company and leader in the life insurance secondary market, today announced financial results for the three and nine months ending September 30, 2015.
Highlights - Three Months Ended September 30, 2015
? GAAP Financial Information
o Total revenue of $8.3 million, a 61% increase over the same period in 2014
o Net loss attributable to common shareholders of $3.3 million, or $0.55 per share
o Total liquidity position of $76 million (1)
? Non-GAAP Financial Measures (2)
o Adjusted Non-GAAP income of $4.4 million, or $0.74 per basic share
o Non-GAAP net asset value of $79.3 million, or $13.36 per basic share
? Financing & Capital Highlights
o Raised $30 million via the sale of the Company’s high yield, non-correlated L Bond offering, a record quarter for the Company
o The Company’s $100 million offering of Redeemable Preferred Stock became effective on October 30, 2015, representing a key strategy to further strengthen our balance sheet
? Investing & Life Insurance Portfolio Highlights
o Net portfolio growth was $73 million in face value of policy benefits for the quarter ended September 30, 2015
o The total expected internal rate of return performance on the portfolio, considering historical returns realized and forward return projections, was 19.05% (3) at September 30, 2015
o The number of life insurance policies purchased in our direct channels represented 30% of total purchases for the quarter compared to nil for the same period one year ago
o Trailing 12-month insurance policy benefits received was 175%, nearly double the amount required to pay policy premiums over the same trailing 12-month period
(1) Cash, cash equivalents and policy benefits receivable plus amounts available on our senior credit facility
(2) See non-GAAP Financial Measures below
(3) Calculated as the weighted average of (a) the internal rate of return attained on matured life insurance policy benefits to date and (b) the expected internal rate of return of the life insurance policies based upon our investment cost basis of the insurance policies and the expected cash flows from the life insurance portfolio
