GWG HOLDINGS, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2019
March 31 2020 - 8:40AM
GWG Holdings, Inc. (Nasdaq: GWGH), a financial services holding
company committed to transforming the alternative asset industry
through innovative liquidity products and related services for the
owners of illiquid alternative investments, announced on March 27,
2020 its financial and operating results in its Annual Report on
Form 10-K for the fourth quarter and full year ended December 31,
2019.
Recent Corporate Events
- On December 31, 2019, GWGH and The Beneficient Company Group,
L.P. (Ben LP) and related entities (collectively, Ben) completed
transactions that resulted in GWGH and Ben being consolidated for
accounting and financial reporting purposes:° GWGH acquired
the right to appoint a majority of the board of directors of
Beneficient Management, L.L.C., the general partner of Ben
LP.° The consolidation resulted in a balance sheet with $3.6
billion of total assets, $1.8 billion of total liabilities and $1.8
billion of total equity, including redeemable non-controlling
interests.° The $3.6 billion of consolidated total assets
includes $2.4 billion of goodwill resulting from business
combination accounting. ° GWGH
recognized a pre-tax gain of $249.7 million related to the increase
in the value of GWGH’s pre-existing investment in Ben, due to a
one-time remeasurement arising from the change-in-control of
Ben.° All employees at GWGH and Ben are now under one
corporate structure with the headquarters of the consolidated
company in Dallas.
- Corporate events occurring in Q1 2020:° Reported life
insurance policy realizations of $24.2 million from 18 policies
through March 27, 2020.° Given the uncertainty of the full
financial and social impact of the COVID-19 pandemic, management
has taken actions to ensure clients will have continued access to
their investments and the Company’s services. As discussed in our
recent press release, GWGH believes our portfolio of life insurance
policies in conjunction with Ben’s diversified loan portfolio
positions are well positioned to withstand periods of volatility
and negative performance in the stock and bond markets.
Fourth Quarter and Full Year 2019
Financial and Operating Highlights
- Reported 2019 net income of $91.2 million due to a one-time
remeasurement of GWGH’s investment in Ben arising from the
change-in-control, which resulted in basic and diluted earnings per
share of $2.76 and $2.65, respectively. This is the first reported
profit since GWGH began trading on Nasdaq in 2014.
- Reported continued record realizations from our life insurance
portfolio:° Realized $44.2 million of face amount of policy
benefits from 25 life insurance policies during the quarter.°
Total 2019 realizations of $125.1 million from 86 policies compared
to $71.1 million from 62 policies for 2018.° Ended the
quarter with a life insurance portfolio of $2.0 billion in face
amount of policy benefits consisting of 1,151 policies.
- Continued developments raising capital to fund business through
the L Bond investment product:° L Bond sales for fourth
quarter of $125.2 million.° Hired five new sales executives
with strong experience in the sales and marketing of alternative
investments; added two new territories for the more than 120
independent broker-dealers and RIAs who offer GWGH’s investment
products.
- Continued shift in focus to investment in Beneficient and
management of the existing $2 billion portfolio of life insurance
policies and away from new life insurance policy acquisition. As
part of that strategic shift, GWGH has ended our Life Care Exchange
program for purchasing policies.
- Reported total liquidity (cash, restricted cash, policy
benefits receivable and fees receivable) of $151.5 million at
December 31, 2019.
“2019 was a pivotal year for the organization,” said Murray
Holland, GWGH’s Chief Executive Officer. “In consolidating the two
companies’ financial statements, we have in place the key pieces we
need to provide solutions to a growing market of investors who need
liquidity. The expanded balance sheet and reduced debt ratios of
the combined companies are important steps for GWGH, its investors,
and clients.”
1. Financial
& Operating Highlights
($ Thousands except per share information) |
Q4 2019 |
Q4 2018 |
FY 2019 |
FY 2018 |
Revenue |
$ |
20,838 |
|
$ |
(60,184 |
) |
$ |
92,276 |
|
$ |
(390 |
) |
Expenses |
|
44,458 |
|
|
39,528 |
|
|
171,873 |
|
|
119,079 |
|
Income Tax Expense |
|
57,933 |
|
|
— |
|
|
57,933 |
|
|
— |
|
Earnings (Loss) from Equity
Method Investments |
|
(3,706 |
) |
|
18 |
|
|
(4,077 |
) |
|
18 |
|
Gain on Consolidation of
Equity Method Investment |
|
249,716 |
|
|
— |
|
|
249,716 |
|
|
— |
|
Net Income (Loss) |
|
164,457 |
|
|
(99,694 |
) |
|
108,109 |
|
|
(119,451 |
) |
Preferred Stock Dividends |
|
4,137 |
|
|
4,306 |
|
|
16,943 |
|
|
16,663 |
|
Net Income Attributable to
Common Shareholders |
|
160,320 |
|
|
(104,000 |
) |
|
91,166 |
|
|
(136,114 |
) |
Per Share Data: |
|
|
|
|
|
|
|
|
|
Net Income (Loss)1 |
|
4.56 |
|
|
(15.16 |
) |
|
2.65 |
|
|
(22.32 |
) |
Capital Raised (L Bonds) |
|
125,158 |
|
|
97,883 |
|
|
403,397 |
|
|
370,203 |
|
Liquidity2 |
|
151,530 |
|
|
141,897 |
|
|
151,530 |
|
|
141,897 |
|
Life Insurance Portfolio3 |
|
2,020,973 |
|
|
2,047,992 |
|
|
2,020,973 |
|
|
2,047,992 |
|
Life Insurance Acquired3 |
|
995 |
|
|
107,478 |
|
|
97,316 |
|
|
440,569 |
|
Face Value of Matured
Policies |
|
44,221 |
|
|
20,991 |
|
|
125,148 |
|
|
71,090 |
|
TTM Benefits / Premiums4 |
|
196.0 |
% |
|
135.0 |
% |
|
166.0 |
% |
|
135.0 |
% |
|
(1) Per diluted common share outstanding |
(2) Includes cash, restricted cash, policy benefits
receivable and fees receivable |
(3) Face amount of policy benefits |
(4) The ratio of policy benefits realized to premiums paid on
a trailing twelve month (TTM) basis |
|
2. Revenue
and Expense Discussion
Fourth Quarter 2019 vs. Fourth Quarter 2018:
- Total revenue was $20.8 million in the current period, compared
to ($60.2) million in the prior period primarily due to: ° A
net charge of $87.1 million in Q4 2018 resulting from the adoption
of a new life insurance portfolio valuation methodology.°
Unrealized gain on acquisition was $6.1 million lower, reflecting
lower policy acquisition volume – $1.0 million of face value
acquired in the current period compared to $30.1 million in the
prior period.° Net revenue recognized at matured policy event
was $11.5 million higher due to increased realization of policy
benefits – $44.2 million of life insurance policy benefits realized
in the current period compared to $21.0 million in the prior
period.° Change in estimated probabilistic cash flows net of
premium and fees was $7.0 million lower.° Loss attributed to
change in life expectancy evaluation was $2.3 higher.° Net
interest income on the Company’s commercial loan, exchange note,
and Liquid Trust note was $2.4 million lower.° Other interest
income increased $0.2 million.
- Total expenses were $45.1 million in the current period,
compared to $39.5 million in the prior period primarily due to:
° Interest and fees increased by $6.0 million. This increase
was driven by increased interest on L Bonds of $6.2 million as a
result of additional amounts outstanding, partially offset by a
decrease in interest on the Company’s senior credit facility of
$0.2 million.° Operating expenses decreased by $0.4 million.
Compensation and professional expenses increased by $3.0 million
and $0.8 million, respectively, primarily resulting from
performance share unit expense and retention incentives associated
with the Purchase and Contribution transaction (the strategic
transaction with Ben which occurred in April 2019), as well as
increases in legal, audit and other professional fees. Other
expenses decreased by $4.2 million due to a decrease in bad debt
expense related to a specific life insurance policy that we deemed
uncollectable in 2018.
Full Year 2019 vs. Full Year 2018:
- Total revenue was $92.3 million in the current period, compared
to ($0.4) million in the prior period primarily due to: ° A
net charge of $87.1 million in 2018 resulting from the adoption of
a new life insurance portfolio valuation methodology.° Net
revenue recognized at matured policy event was $40.6 million
higher, charges on life expectancy updates were $2.5 million lower,
unrealized gain on acquisition was $21.1 million lower (as a result
of lower life insurance purchases), and a change in estimated
probabilistic cash flows net of premiums and fees and change in
life expectancy was $19.7 million lower as compared to the prior
period.° Interest income from the commercial loan,
exchangeable note, and Liquid Trust promissory note increased $3.1
million and other income increased $0.2 million.
- Total expenses were $171.9 million in the current period,
compared to $119.1 million in the prior period primarily due to:
° Interest and fees increased by $34.7 million year over
year. Outstanding L Bonds increased over this time period resulting
in $22.7 million of additional interest expense, Seller Trust L
Bonds, which were issued in August 2018, increased interest expense
by $16.7 million and senior credit facility interest decreased by
$4.7 million.° Operating expenses increased by $18.8 million.
Compensation and professional expenses increased by $10.9 million
and $7.3 million, respectively, primarily resulting from
performance share unit expense and retention incentives associated
with the Purchase and Contribution transaction, as well as
increases in legal and professional fees.
3. Life Insurance Portfolio
Statistics
Portfolio Summary:
Total life insurance portfolio face value of policy benefits (in
thousands) |
$ |
2,020,973 |
|
Average face value per policy (in
thousands) |
$ |
1,756 |
|
Average face value per insured
life (in thousands) |
$ |
1,883 |
|
Weighted average age of insured
(years)* |
|
82.4 |
|
Weighted average life expectancy
estimate (years)* |
|
7.2 |
|
Total number of policies |
|
1,151 |
|
Number of unique lives |
|
1,073 |
|
Demographics |
|
74% Male; 26% Female |
|
Number of smokers |
|
48 |
|
Largest policy as % of total
portfolio face value |
|
0.66 |
% |
Average policy as % of total
portfolio face value |
|
0.09 |
% |
Average annual premium as % of
face value |
|
3.3 |
% |
|
* Averages
presented in the table are weighted averages. |
Distribution of Policies and Benefits by Current Age of
Insured:
|
|
|
|
|
|
|
|
Percentage of Total |
|
|
Min Age |
|
Max Age |
|
Number of Policies |
|
Policy Benefits(in
thousands) |
|
Number of Policies |
|
Policy Benefits |
|
Wtd. Avg. LE (years) |
95 |
|
101 |
|
17 |
|
$ |
34,402 |
|
1.5 |
% |
|
1.7 |
% |
|
2.2 |
90 |
|
94 |
|
145 |
|
|
283,442 |
|
12.6 |
% |
|
14.0 |
% |
|
3.3 |
85 |
|
89 |
|
238 |
|
|
556,090 |
|
20.7 |
% |
|
27.5 |
% |
|
5.0 |
80 |
|
84 |
|
251 |
|
|
463,047 |
|
21.8 |
% |
|
22.9 |
% |
|
7.7 |
75 |
|
79 |
|
224 |
|
|
347,952 |
|
19.4 |
% |
|
17.2 |
% |
|
9.8 |
70 |
|
74 |
|
205 |
|
|
264,496 |
|
17.8 |
% |
|
13.1 |
% |
|
11.0 |
60 |
|
69 |
|
71 |
|
|
71,544 |
|
6.2 |
% |
|
3.6 |
% |
|
11.4 |
Total |
|
|
|
1,151 |
|
$ |
2,020,973 |
|
100.0 |
% |
|
100.0 |
% |
|
7.2 |
4. Life
Insurance Policy Originations
Life Insurance Portfolio Activity:
|
|
Three Months EndedDecember
31, |
|
|
Years EndedDecember 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Total policy benefits
purchased (in thousands) |
$ |
995 |
|
$ |
107,478 |
|
$ |
97,316 |
|
$ |
440,569 |
Life insurance policies
purchased |
|
2 |
|
|
85 |
|
|
83 |
|
|
318 |
Average policy benefit
purchased (in thousands) |
$ |
497 |
|
$ |
1,264 |
|
$ |
1,172 |
|
$ |
1,385 |
Direct policy benefits
purchased (in thousands) |
$ |
— |
|
$ |
12,870 |
|
$ |
19,397 |
|
$ |
42,432 |
Direct insurance policies
purchased |
|
— |
|
|
12 |
|
|
27 |
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
5. Ben’s
Collateral Portfolio
Information As
of December 31, 2019, Ben’s loan portfolio had exposure to 117
professionally managed alternative investment funds, comprised of
362 underlying investments, and approximately 96 percent of Ben’s
loan portfolio was backed by investments in private companies.
Ben’s loan portfolio diversification spans across these industry
sectors, investment strategy types and geographic regions:
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e017fb4f-9d97-4557-bf93-8d60d8b324b4
Assets in the collateral portfolio consist
primarily of interests in alternative investment vehicles (also
referred to as “funds”) that are managed by a group of U.S. and
non-U.S. based alternative asset management firms that invest in a
variety of financial markets and utilize a variety of investment
strategies. The vintages of the funds in the collateral portfolio
as of December 31, 2019 ranged from 1998 to
2011. 6.
Additional
Information Gain
(Loss) on Life Insurance Policies (in thousands):
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Change in estimated probabilistic cash flows(1) |
$ |
15,025 |
|
$ |
19,961 |
|
$ |
67,186 |
|
$ |
75,444 |
|
Unrealized gain on
acquisitions(2) |
|
146 |
|
|
6,227 |
|
|
6,921 |
|
|
28,017 |
|
Premiums and other annual
fees |
|
(16,522 |
) |
|
(14,417 |
) |
|
(65,577 |
) |
|
(54,087 |
) |
Change in discount
rates(3)(4) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Change in life expectancy
evaluation(5) |
|
(2,332 |
) |
|
— |
|
|
(2,332 |
) |
|
(4,890 |
) |
Change in life expectancy
evaluation methodology(6) |
|
— |
|
|
(87,100 |
) |
|
— |
|
|
(87,100 |
) |
Face value of matured
policies |
|
44,221 |
|
|
71,090 |
|
|
125,148 |
|
|
71,090 |
|
Fair value of matured
policies |
|
(24,436 |
) |
|
(12,696 |
) |
|
(56,026 |
) |
|
(42,579 |
) |
Gain (loss) on life insurance
policies, net |
$ |
16,102 |
|
$ |
(67,035 |
) |
$ |
75,320 |
|
$ |
(14,105 |
) |
|
(1) Change in fair value of expected future cash flows
relating to the investment in life insurance policies that are not
specifically attributable to changes in life expectancy, discount
rate changes or policy maturity events. |
(2) Gain resulting from fair value in excess of the purchase
price for life insurance policies acquired during the reporting
period. |
(3) The discount rate applied to estimate the fair value of
the portfolio of life insurance policies we own was 8.25% at the
end of all periods presented. |
(4) The discount rate of 8.25% is based on the “longest life
expectancy” methodology, which was adopted at December 31,
2018. |
(5) The change in fair value due to updating life expectancy
estimates on certain life insurance policies in the portfolio. |
(6) The change in fair value due to the adoption of the
Longest Life Expectancy methodology on life insurance policies in
portfolio, partially offset by the impact of a decrease in the
discount rate. |
|
Policy Benefits Realized and Premiums Paid
(TTM):
Quarter End Date |
|
PortfolioFace Amount ($
in thousands) |
|
12-MonthTrailingBenefits
Realized ($ in thousands) |
|
12-MonthTrailing Premiums Paid($ in
thousands) |
|
12-MonthTrailingBenefits/PremiumCoverage Ratio |
September 30, 2015 |
|
$ |
878,882 |
|
$ |
4,482 |
|
$ |
25,313 |
|
175.7 |
% |
December 31, 2015 |
|
|
944,844 |
|
|
31,232 |
|
|
26,650 |
|
117.2 |
% |
March 31, 2016 |
|
|
1,027,821 |
|
|
21,845 |
|
|
28,771 |
|
75.9 |
% |
June 30, 2016 |
|
|
1,154,798 |
|
|
30,924 |
|
|
31,891 |
|
97.0 |
% |
September 30, 2016 |
|
|
1,272,078 |
|
|
35,867 |
|
|
37,055 |
|
96.8 |
% |
December 31, 2016 |
|
|
1,361,675 |
|
|
48,452 |
|
|
40,239 |
|
120.4 |
% |
March 31, 2017 |
|
|
1,447,558 |
|
|
48,189 |
|
|
42,753 |
|
112.7 |
% |
June 30, 2017 |
|
|
1,525,363 |
|
|
49,295 |
|
|
45,414 |
|
108.5 |
% |
September 30, 2017 |
|
|
1,622,627 |
|
|
53,742 |
|
|
46,559 |
|
115.4 |
% |
December 31, 2017 |
|
|
1,676,148 |
|
|
64,719 |
|
|
52,263 |
|
123.8 |
% |
March 31, 2018 |
|
|
1,758,066 |
|
|
60,248 |
|
|
53,169 |
|
113.3 |
% |
June 30, 2018 |
|
|
1,849,079 |
|
|
76,936 |
|
|
53,886 |
|
142.8 |
% |
September 30, 2018 |
|
|
1,961,598 |
|
|
75,161 |
|
|
55,365 |
|
135.8 |
% |
December 31, 2018 |
|
|
2,047,992 |
|
|
71,090 |
|
|
52,675 |
|
135.0 |
% |
March 31, 2019 |
|
|
2,098,428 |
|
|
87,045 |
|
|
56,227 |
|
154.8 |
% |
June 30, 2019 |
|
|
2,088,445 |
|
|
82,421 |
|
|
59,454 |
|
138.6 |
% |
September 30, 2019 |
|
|
2,064,156 |
|
|
101,918 |
|
|
61,805 |
|
164.9 |
% |
December 31, 2019 |
|
|
2,020,973 |
|
|
125,148 |
|
|
63,851 |
|
196.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Webcast/Conference Call
Details
Management will host a webcast/conference call Tuesday, March
31, 2020 at 4:30 p.m. EDT to discuss our financial and operating
results. The webcast will give viewers audio and access to
PowerPoint slides that illustrate points made during the call. To
register for the call and webcast, go to
http://get.gwgh.com/q42019webcastinvite.
After the webcast is completed, a replay of it can be accessed
at http://get.gwgh.com/q42019webcast.
About GWG Holdings,
Inc.
GWG Holdings, Inc. (Nasdaq: GWGH), a
financial services holding company committed to transforming the
alternative asset industry through innovative liquidity products
and related services for the owners of illiquid alternative
investments, is the parent company of GWG Life, which
owns a portfolio of $2.02 billion in face value of life insurance
policy benefits as of December 31, 2019. GWGH has executed a series
of strategic transactions with The Beneficient Company Group,
L.P., a financial services company providing proprietary liquidity
solutions to owners of alternative assets, resulting in the closer
alignment of the two companies.
For more information about GWG Holdings,
email info@gwgh.com or visit www.gwgh.com.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains forward-looking
statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, included in
this press release regarding our strategy, future operations,
future financial position, future revenue, projected costs,
prospects, plans and objectives of management are forward-looking
statements. The words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "plan," "would," "target" and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These forward-looking statements include, among
other things, statements about our estimates regarding future
revenue and financial performance. We may not actually achieve the
expectations disclosed in our forward-looking statements, and you
should not place undue reliance on our forward-looking statements.
Actual results or events could differ materially from the
expectations disclosed in the forward-looking statements that we
make. More information about potential factors that could affect
our business and financial results is contained in our filings with
the Securities and Exchange Commission, including our Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
March 27, 2020. Additional information will also be set forth in
our future quarterly reports on Form 10-Q, annual reports on Form
10-K and other filings that we make with the Securities and
Exchange Commission. We do not intend, and undertake no duty, to
release publicly any updates or revisions to any forward-looking
statements contained herein.
Media Contact:Dan
CallahanDirector of CommunicationGWG Holdings, Inc.(612)
787-5744dcallahan@gwgh.com
GWG HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(dollars in thousands)
|
December 31, |
|
|
2019 |
|
2018 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
79,073 |
|
$ |
114,587 |
|
Restricted cash |
|
20,258 |
|
|
10,849 |
|
Investment in life insurance
policies, at fair value |
|
796,039 |
|
|
747,922 |
|
Life insurance policy benefits
receivable, net |
|
23,031 |
|
|
16,461 |
|
Loan receivables |
|
232,344 |
|
|
— |
|
Fees receivable |
|
29,168 |
|
|
— |
|
Financing receivables from
affiliates |
|
67,153 |
|
|
184,769 |
|
Equity method investment |
|
1,761 |
|
|
360,842 |
|
Other assets |
|
28,374 |
|
|
45,437 |
|
Goodwill |
|
2,358,005 |
|
|
— |
|
TOTAL ASSETS |
$ |
3,635,206 |
|
$ |
1,480,867 |
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Senior credit facility with
LNV Corporation |
$ |
174,390 |
|
$ |
148,978 |
|
L Bonds |
|
926,638 |
|
|
651,403 |
|
Seller Trust L Bonds |
|
366,892 |
|
|
366,892 |
|
Other borrowings |
|
153,086 |
|
|
— |
|
Interest and dividends
payable |
|
16,516 |
|
|
18,555 |
|
Deferred revenue |
|
41,444 |
|
|
— |
|
Accounts payable and accrued
expenses |
|
27,836 |
|
|
13,981 |
|
Deferred tax liability |
|
57,923 |
|
|
13,981 |
|
TOTAL LIABILITIES |
|
1,764,725 |
|
|
1,199,809 |
|
|
|
|
|
|
|
|
Redeemable non-controlling
interests |
|
1,269,654 |
|
|
— |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE PREFERRED
STOCK |
|
|
|
|
|
|
(par value $0.001; shares authorized 100,000; shares outstanding
84,636 and 97,524; liquidation preference of $85,130 and $98,093 as
of December 31, 2019 and 2018, respectively) |
|
74,023 |
|
|
86,910 |
|
SERIES 2 REDEEMABLE PREFERRED
STOCK |
|
|
|
|
|
|
(par value $0.001; shares authorized 150,000; shares outstanding
147,164 and 148,359; liquidation preference of $148,023 and
$149,225 as of December 31, 2019 and 2018, respectively) |
|
127,868 |
|
|
129,063 |
|
COMMON STOCK |
|
|
|
|
|
|
(par value $0.001; shares authorized 210,000,000; shares issued and
outstanding 30,533,793 as of December 31, 2019 and 33,018,161 as of
December 31, 2018) |
|
33 |
|
|
33 |
|
Common stock in treasury, at
cost, 2,500,000 shares as of December 31, 2019 |
|
(24,550 |
) |
|
— |
|
Additional paid-in
capital |
|
233,108 |
|
|
249,662 |
|
Accumulated deficit |
|
(76,501 |
) |
|
(184,610 |
) |
TOTAL GWG HOLDINGS
STOCKHOLDERS’ EQUITY |
|
333,979 |
|
|
281,058 |
|
Non-controlling interests |
|
266,848 |
|
|
— |
|
TOTAL STOCKHOLDERS’
EQUITY |
|
600,827 |
|
|
281,058 |
|
TOTAL LIABILITIES &
STOCKHOLDERS’ EQUITY |
$ |
3,635,206 |
|
$ |
1,480,867 |
|
|
GWG HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(dollars in thousands)
|
Three Months Ended |
|
Years Ended |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
REVENUE |
|
|
|
|
|
|
|
|
Gain (loss) on life insurance policies, net |
$ |
16,101 |
|
$ |
(67,035 |
) |
$ |
75,320 |
|
$ |
(14,104 |
) |
Interest and other income |
|
4,737 |
|
|
6,851 |
|
|
16,956 |
|
|
13,714 |
|
TOTAL REVENUE |
|
20,838 |
|
|
(60,184 |
) |
|
92,276 |
|
|
(390 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
31,093 |
|
|
25,125 |
|
|
114,844 |
|
|
80,136 |
|
Employee compensation and benefits |
|
7,224 |
|
|
4,880 |
|
|
28,309 |
|
|
17,407 |
|
Legal and professional fees |
|
2,561 |
|
|
1,790 |
|
|
12,824 |
|
|
5,541 |
|
Other expenses |
|
3,580 |
|
|
7,732 |
|
|
15,896 |
|
|
15,995 |
|
TOTAL EXPENSES |
|
44,458 |
|
|
39,527 |
|
|
171,873 |
|
|
119,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
(23,620 |
) |
|
(99,711 |
) |
|
(79,597 |
) |
|
(119,469 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
57,933 |
|
|
— |
|
|
57,933 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) BEFORE EARNINGS (LOSS) FROM EQUITY METHOD
INVESTMENT |
|
(81,553 |
) |
|
(99,711 |
) |
|
(137,530 |
) |
|
(119,469 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from equity method investment |
|
(3,706 |
) |
|
18 |
|
|
(4,077 |
) |
|
18 |
|
Gain on consolidation of equity method investment |
|
249,716 |
|
|
— |
|
|
249,716 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
164,457 |
|
|
(99,693 |
) |
|
108,109 |
|
|
(119,451 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
4,137 |
|
|
4,304 |
|
|
16,943 |
|
|
16,663 |
|
NET INCOME (LOSS) ATTRIBUTABLE
TO COMMON SHAREHOLDERS |
$ |
160,320 |
|
$ |
(104,000 |
) |
$ |
91,166 |
|
$ |
(136,114 |
) |
NET INCOME (LOSS) PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
4.85 |
|
$ |
(15.16 |
) |
$ |
2.76 |
|
$ |
(22.32 |
) |
Diluted |
$ |
4.56 |
|
$ |
(15.16 |
) |
$ |
2.65 |
|
$ |
(22.32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
33,033,536 |
|
|
6,861,799 |
|
|
33,016,007 |
|
|
6,098,208 |
|
Diluted |
|
35,135,436 |
|
|
6,861,799 |
|
|
35,219,442 |
|
|
6,098,208 |
|
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