[ACCESSWIRE]
Company Reports Book Value of $0.37 per Share
BOCA RATON, FL / ACCESSWIRE / July 9, 2020 / Emergent Capital, Inc. (OTCQX:EMGC) ("Emergent" or the "Company"), today reported its financial results for the second fiscal quarter ended May 31, 2020.
Second Quarter 2020 and Recent Highlights
White Eagle Portfolio Highlights
Three Months Ended May 31, 2020 | ||||
(dollars in thousands) | ||||
Life insurance policies | 513 | |||
Face value of life settlements | $ | 2,410,376 | ||
Average age of insured | 85.7 | |||
Average life expectancy of insured | 6.7 | |||
Average death benefit per policy | $ | 4,699 | ||
Average annual premium per policy | $ | 203 | ||
Average monthly premium per policy | $ | 16.9 | ||
"Our investment assets performed well in the second quarter as we continue to evaluate how the COVID-19 pandemic is impacting the overall portfolio," said Pat Curry, Emergent's Chairman and Chief Executive Officer. "We had 11 policies maturity during the second quarter that yielded an aggregate benefit of $43.2 million, and thus far, our third quarter for 2020, which ends August 31st, has yielded five policy maturities totaling $12.5 million. Our portfolio is highly concentrated geographically, with the last known location of more than 60% of insureds believed to be in New York, California and Florida, the three states that have produced the highest number of confirmed COVID cases to date."
Three Months Ended May 31, 2020 Financial Results Summary
Six Months Ended May 31, 2020 Financial Results Summary
The Company had 158,655,140 shares of common stock outstanding, treasury shares of 608,000 and an undiluted book value of $0.37 per share at May 31, 2020.
Investment in Limited Partnership Quarterly Highlights:
Investment in Limited Partnership Six Months Ended May 31, 2020
About Emergent Capital, Inc.
Emergent (OTCQX:EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Emergent Capital, 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 Emergent 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, Emergent does not assume a duty to update these forward-looking statements.
Company Contact:
Investor Relations
Rob Fink
FNK IR
646.809.4048
IR@emergentcapital.com
www.emergentcapital.com
Emergent Capital, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended May 31, | Three Months Ended May 31, | Six Months Ended May 31, | Six Months Ended May 31, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Income | ||||||||||||||||
Change in fair value of life settlements | $ | - | $ | 4 | $ | - | $ | 6 | ||||||||
Change in fair value of investment in limited partnership, net of distributions | 9,000 | - | 16,351 | - | ||||||||||||
Change in fair value of investment in deconsolidated subsidiaries | - | (18,804 | ) | - | (52,769 | ) | ||||||||||
Gain on life settlements, net | - | - | 743 | - | ||||||||||||
Other income | 101 | 46 | 10,817 | 93 | ||||||||||||
Total income (loss) | 9,101 | (18,754 | ) | 27,911 | (52,670 | ) | ||||||||||
Expenses | ||||||||||||||||
Interest expense | 2,473 | 2,775 | 4,867 | 5,538 | ||||||||||||
Extinguishment of debt | - | - | (2,815 | ) | - | |||||||||||
Personnel costs | 435 | 138 | 2,389 | 307 | ||||||||||||
Legal fees | 203 | 725 | 1,112 | 720 | ||||||||||||
Professional fees | 559 | (57 | ) | 1,416 | 278 | |||||||||||
Insurance | 524 | 217 | 841 | 396 | ||||||||||||
Other selling, general and administrative expenses | 255 | 98 | 520 | 200 | ||||||||||||
Total expenses (income) | 4,449 | 3,896 | 8,330 | 7,439 | ||||||||||||
Income (loss) from continuing operations before income taxes | 4,652 | (22,650 | ) | 19,581 | (60,109 | ) | ||||||||||
Provision (benefit) for income taxes | - | 3,218 | 2,428 | 3,218 | ||||||||||||
Net income (loss) from continuing operations | $ | 4,652 | $ | (25,868 | ) | $ | 17,153 | $ | (63,327 | ) | ||||||
Discontinued Operations: | ||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 10 | (16 | ) | (53 | ) | (33 | ) | |||||||||
Provision (benefit) for income taxes | - | - | - | - | ||||||||||||
Net income (loss)from discontinued operations | 10 | (16 | ) | (53 | ) | (33 | ) | |||||||||
Net income (loss) | $ | 4,662 | $ | (25,884 | ) | $ | 17,100 | $ | (63,360 | ) | ||||||
Income (loss) per share: | ||||||||||||||||
Basic income (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.03 | $ | (0.16 | ) | $ | 0.11 | $ | (0.40 | ) | ||||||
Discontinued operations | $ | - | $ | - | $ | - | $ | - | ||||||||
Net income (loss) - basic | $ | 0.03 | $ | (0.16 | ) | $ | 0.11 | $ | (0.40 | ) | ||||||
Diluted (loss) income per share | ||||||||||||||||
Continuing operations | $ | 0.02 | $ | (0.16 | ) | $ | 0.09 | $ | (0.40 | ) | ||||||
Discontinued operations | $ | - | $ | - | $ | - | $ | - | ||||||||
Net income (loss) - diluted | $ | 0.02 | $ | (0.16 | ) | $ | 0.09 | $ | (0.40 | ) | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 157,648,168 | 156,960,046 | 157,608,707 | 156,939,797 | ||||||||||||
Diluted | 175,581,286 | 156,960,046 | 204,522,043 | 156,939,797 | ||||||||||||
Emergent Capital, Inc.
CONSOLIDATED BALANCE SHEETS
May 31, 2020 | November 30, 2019* | |||||||
(Unaudited) | ||||||||
(In thousands except share data) | ||||||||
ASSETS | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 21,284 | $ | 24,283 | ||||
Certificates of deposit | 515 | 511 | ||||||
Prepaid expenses and other assets | 1,674 | 377 | ||||||
Operating lease asset | 72 | - | ||||||
Deposits - other | 1,377 | 1,377 | ||||||
Life settlements, at estimated fair value | - | 1,297 | ||||||
Fixed assets, net | - | 18 | ||||||
Investment in limited partnership, at estimated fair value | 150,200 | 137,849 | ||||||
Total assets | $ | 175,122 | $ | 165,712 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 951 | $ | 1,651 | ||||
Other liabilities | 40 | 86 | ||||||
Operating lease liability | 66 | - | ||||||
Interest payable - 5.0% Convertible Notes | 1,007 | 1,116 | ||||||
5.0% Convertible Notes, net of discount and deferred debt costs | 64,097 | 71,022 | ||||||
Interest payable - 8.5% Senior Secured Notes | 865 | 854 | ||||||
8.5% Senior Secured Notes, net of deferred debt costs | 46,207 | 45,675 | ||||||
Current tax liability | 2,623 | 3,195 | ||||||
Total liabilities | 115,856 | 123,599 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock (par value $0.01 per share, 415,000,000 authorized at May 31,2020 and November 30, 2019; 159,263,140 issued and 158,655,140 outstanding as of May 31, 2020; 158,365,275 issued and 157,757,275 outstanding as of November 30, 2019) | 1,593 | 1,584 | ||||||
Preferred stock (par value $0.01 per share, 40,000,000 authorized; 0 issued and outstanding as of May 31, 2020 and November 30, 2019) | - | - | ||||||
Treasury Stock, net of issuance cost (608,000 shares as of May 31, 2020 and November 30, 2019) | (2,534 | ) | (2,534 | ) | ||||
Additional paid-in-capital | 334,620 | 334,576 | ||||||
Accumulated deficit | (274,413 | ) | (291,513 | ) | ||||
Total stockholders' equity | 59,266 | 42,113 | ||||||
Total liabilities and stockholders' equity | $ | 175,122 | $ | 165,712 | ||||
* Derived from audited consolidated financial statements.
SOURCE: Emergent Capital, Inc.