J.G. Wentworth (JGW) saw its loss narrow to $18.71 million, or $1.19 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $26.70 million, or $1.79 a share. Revenue during the quarter grew 7.73 percent to $68.80 million from $63.86 million in the previous year period. Total expenses were 46.76 percent of quarterly revenues, down from 86.50 percent for the same period last year. This has led to an improvement of 3974 basis points in operating margin to 53.24 percent.
However, the adjusted EBITDA for the quarter stood at $4.64 million compared with $16.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1923 basis points in the quarter to 6.74 percent from 25.97 percent in the last year period.
"We continue to execute on our key strategic priorities. Home Lending reported its second consecutive quarter of record locked and closed loan volume and our Structured Settlements segment is showing signs of stabilizing. Additionally, we begin piloting next week a combined Visa Virtual Gift Card and State Lottery Scratch-off ticket which represents our entry into this category," said Stewart A. Stockdale, chief executive officer, The J.G. Wentworth Company.
Debt remains almost stable
J.G. Wentworth has recorded a decline in total debt over the last one year. It stood at $4,884 million as on Sep. 30, 2016, down 0.82 percent or $40.58 million from $4,924.59 million on Sep. 30, 2015. Short-term debt stood at $442.43 million as on Sep. 30, 2016. Total debt was 95.68 percent of total assets as on Sep. 30, 2016, compared with 91.55 percent on Sep. 30, 2015. Interest coverage ratio improved to 0.67 for the quarter from 0.16 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
