JG Wentworth Co. (NYSE: JGW) Logs A Loss For 1Q2016 Amid Listing Challenge


JG Wentworth Co. (NYSE: JGW) said its 1Q2016 had several bright spots, but despite this, the company is posting a loss for the quarter. A pullback in revenues compared to a year ago and a sharp uptick in expenses complicated the quarter for the financial services company. JG’s stock listing on the New York Stock Exchange is also uncertain as it has fallen short of the requirements to continue listing on the platform. The management said that dropping to the small-cap NYSEMKT was among the options they were considering.

Home lending segment impresses

JG Wentworth Co. (NYSE: JGW) said the performance in its Home Lending businesses surpassed expectations. Management spoke of the need to build on the success to drive even more growth going forward. One of the strategies to grow the Home Lending business is to expand the scale of the business.

Overall, JG is looking to continued cost discipline to drive growth of the business in the coming quarters and years. The CEO, Stewart A. Stockdale, also said that their operational efficiency efforts are beginning to pay off.

What transpired in 1Q?

JG Wentworth Co (NYSE: JGW) reported consolidated revenue of $66.6 million in 1Q2016, down from $86.8 million in the corresponding quarter in 2015. The sharp decline in revenue was caused by a $42.1 million drop in Structured Settlements segment.

On adjusted basis, JG reported consolidated adjusted revenue of $57.1 million, down from $62.4 million a year earlier.

Coming to the bottom-line, JG posted an adjusted net income loss of $4.1 million. That compared with $8.2 million in the like quarter in 2015.

Internal efficiency

The management of JG Wentworth Co. (NYSE: JGW) expenses confidence in their efficiency drive. In 1Q2016, expenses relating to Structured Settlements fell $9 million. The target is to hit annual savings of $25 to $30 million.

Exiting NYSE

JG is in the process of submitting a plan to NYSE to outline how it hopes to regain listing compliance. The NYSE notified the company that it had fallen short of the listing standards following its average market cap falling below $50 million over a period of 30 days.

If JG Wentworth Co. (NYSE: JGW) cannot regain NYSE listing compliance, management hasn’t ruled out dropping to the NYSEMKT.


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