GWG Holdings, Inc. Studies Outcomes For the First Quarter Ended March 31, 2020 Nasdaq:GWGH

Beneficient’s loan Portfolio

Beneficient’s loan portfolio diversification spans throughout these business sectors, geographic areas and publicity sorts

DALLAS, Could 15, 2020 (GLOBE NEWSWIRE) — At present, GWG Holdings, Inc. (Nasdaq: GWGH), a monetary companies holding firm dedicated to remodeling the choice asset business by means of revolutionary liquidity merchandise and associated companies for the house owners of illiquid various investments, introduced its monetary and working outcomes for the primary quarter ended March 31, 2020. The outcomes replicate consolidated accounting and monetary reporting of GWGH and The Beneficient Firm Group, L.P. (Ben LP) and associated entities (collectively, Ben).

Latest Company Developments

• Regardless of the uncertainty surrounding the novel coronavirus pandemic (COVID-19), the Firm continues to lift capital, pay and obtain curiosity earnings and dividends, obtain insurance coverage coverage advantages, and in any other case meet its ongoing working obligations.
• On March 30, 2020, the Firm filed a registration assertion to supply as much as $2.Zero billion in principal quantity of L Bonds on a steady foundation till 2023. These bonds comprise phrases and options which are considerably per earlier L Bond choices.
• On Could 15, 2020, Ben and its lender signed a time period sheet to amend its senior credit score and subordinated credit score agreements. Amongst different adjustments, the modification would prolong the maturity date of each loans to April 10, 2021, and supplies for them to be transferred to GWGH or a subsidiary upon issuance of Ben’s belief firm charters by the Texas Division of Banking. The amendments set forth within the time period sheet are topic to, amongst different issues, the negotiation and execution of definitive agreements governing the amendments and the satisfaction of closing circumstances.
• On March 6, 2020, Ben submitted revised belief constitution purposes to the Texas Division of Banking which the Division is actively reviewing and contemplating. Within the interim, Ben has closed a restricted variety of transactions up to now, however intends to considerably develop its operations if and when the belief charters are issued.

First Quarter 2020 Monetary and Working Highlights

• Reported first quarter 2020 web lack of $49.Four million, in comparison with a web lack of $18.9 million within the first quarter of 2019
  • GWGH’s funding in Ben was accounted for as an fairness technique funding previous to the change-of-control on December 31, 2019, and the primary quarter of 2020 contains the consolidated outcomes of Ben for the primary time.
  • Acknowledged $68.9 million of non-cash, equity-based compensation expense in the course of the first quarter of 2020 on account of grants underneath Ben’s fairness incentive plans, which considerably contributed to the consolidated web loss. The popularity of those Ben bills is a results of the transactions between Ben and GWGH that created the year-end 2019 achieve. Nearly all of these awards vest over a four-year interval starting on the grantee’s service date to Ben (e.g., rent date for an worker). As a result of many individuals in Ben’s fairness incentive plans have been with the corporate for a number of years, some awards vested as much as 100 p.c on the grant date and that vesting required recognition of the commensurate equity-based compensation within the first quarter 2020 submitting. The grant date value of the awards was primarily based on the current valuation of Ben accomplished along side the change-of-control occasion on December 31, 2019. Fairness-based compensation expense on a quarterly foundation going ahead is predicted to be considerably decrease primarily based on the awards excellent as of March 31, 2020.
• Reported complete property of $3.7 billion as of March 31, 2020, in comparison with $3.6 billion as of December 31, 2019.
• Reported continued sturdy life insurance coverage portfolio efficiency:
  • Realized $25.5 million of face quantity of coverage advantages from 20 life insurance coverage insurance policies in the course of the first quarter of 2020, in comparison with $30.5 million from 20 life insurance coverage insurance policies in the course of the first quarter of 2019.
  • Ended the quarter with a life insurance coverage portfolio of $2.Zero billion in face quantity of coverage advantages consisting of 1,131 insurance policies.
• Reported continued success elevating capital by means of the L Bond funding product with $110.Eight million of L Bond gross sales within the first quarter of 2020.
• Continued its shift in focus away from new life insurance coverage coverage acquisitions and in the direction of its funding in Ben, whereas managing its present life insurance coverage coverage portfolio. As a part of that strategic shift, the Firm has ended its Life Care Alternate program for buying insurance policies.

Reported complete liquidity (cash, restricted cash, coverage advantages receivable and costs receivable) elevated to $188.7 million at March 31, 2020.

“In this unprecedented time, we are working hard to support our advisors and the clients they serve,” mentioned Murray Holland, GWGH’s Chief Government Officer. “We believe our products are uniquely positioned to provide a combination of yield and stability as advisors and broker-dealers report a need for liquidity at a previously unseen level among our target market of individual and small institutional investors.”

1. Monetary & Working Highlights

⁽¹⁾ Per diluted widespread share excellent
⁽²⁾ Contains cash, restricted cash, coverage advantages receivable and costs receivable as of the tip of the interval offered
⁽³⁾ Face quantity of coverage advantages
⁽⁴⁾ The ratio of coverage advantages realized to premiums paid on a trailing twelve month (TTM) foundation
             
2. Income and Expense Dialogue

First Quarter 2020 vs. First Quarter 2019:

• Complete income was $33.6 million within the present interval, in comparison with $25.2 million within the prior interval primarily as a consequence of:

• The Ben consolidation added $9.Four million of curiosity earnings from its financing receivables portfolio, after intercompany eliminations, and $5.Zero million in belief companies and different charge income.
• Curiosity earnings of $1.1 million on the LiquidTrusts promissory be aware.
• These will increase had been partially offset by $7.Zero million of decrease good points on life insurance coverage insurance policies primarily as a consequence of barely decrease common face value of matured insurance policies and no good points on acquisitions.

• Complete bills had been $124.1 million within the present interval, in comparison with $37.9 million within the prior interval primarily as a consequence of:

• Worker compensation and advantages elevated by $72.6 million for this era primarily as a result of inclusion of Ben’s operations, which included the popularity of $68.9 million of non-cash, equity-based compensation expense underneath Ben’s fairness incentive plans.
• Curiosity and costs elevated by $8.9 million as a consequence of $6.1 million of extra curiosity expense on L Bonds on account of elevated quantities excellent, elevated curiosity expense of $2.Three million from the consolidation of Ben associated to its borrowings, and elevated curiosity expense of $0.5 million on GWGH’s senior credit score facility.
• Authorized {and professional} charges elevated by $3.2 million primarily as a consequence of extra authorized and consulting charges acknowledged with the complete consolidation of Ben’s operations starting within the first quarter of 2020.

3. Life Insurance coverage Portfolio Statistics as of and for the quarter ended March 31, 2020

Portfolio Abstract:

Distribution of Insurance policies and Advantages by Present Age of Insured:

4. Ben’s Collateral Portfolio Info
         
As of March 31, 2020, Beneficient’s loan portfolio had publicity to 118 professionally managed various funding funds, comprised of 350 underlying investments, and roughly 92 p.c of Beneficient’s loan portfolio was collateralized by investments in non-public firms. Beneficient’s loan portfolio diversification spans throughout these business sectors, geographic areas and publicity sorts:

A graphic accompanying this announcement is obtainable at https://www.globenewswire.com/NewsRoom/AttachmentNg/823dc06d-1eee-4f28-9b3e-6e8146447718

Belongings within the collateral portfolio consist primarily of pursuits in various funding automobiles (additionally known as funds) which are managed by a bunch of U.S. and non-U.S. primarily based various asset administration corporations that spend money on quite a lot of monetary markets and make the most of quite a lot of funding methods. The vintages of the funds within the collateral portfolio as of December 31, 2019 ranged from 1998 to 2011.

5. Extra Info
       
Acquire (Loss) on Life Insurance coverage Insurance policies (in hundreds):

⁽¹⁾ Change in truthful value of anticipated future cash flows referring to the funding in life insurance coverage insurance policies that aren’t particularly attributable to adjustments in life expectancy, low cost price adjustments or coverage maturity occasions.
⁽²⁾ Acquire ensuing from truthful value in extra of the acquisition price for all times insurance coverage insurance policies acquired in the course of the reporting interval.

Coverage Advantages Realized and Premiums Paid (TTM):  

Webcast Particulars

Administration will host a webcast Monday, Could 18, 2020 at 4:30 p.m. EDT to debate monetary and working outcomes. The webcast will give viewers audio and entry to PowerPoint slides that illustrate factors made in the course of the presentation. To register for the webcast, go to http://get.gwgh.com/q12020webcastinvite.

After the webcast is accomplished, a replay of it may be accessed at http://get.gwgh.com/q12020webcast.

About GWG Holdings, Inc. 

GWG Holdings, Inc. (Nasdaq: GWGH), a monetary companies holding firm dedicated to remodeling the choice asset business by means of revolutionary liquidity merchandise and associated companies for the house owners of illiquid various investments, is the mum or dad firm of GWG Life, LLC, which owns a portfolio of $2.Zero billion in face value of life insurance coverage coverage advantages as of March 31, 2020. GWGH has executed a collection of strategic transactions with The Beneficient Firm Group, L.P., a monetary companies firm offering proprietary liquidity options to house owners of different property, ensuing within the nearer alignment of the 2 firms. 

For extra details about GWG Holdings, electronic mail information@gwgh.com or go to www.gwgh.com. For extra details about Beneficient, electronic mail askben@beneficient.com or go to www.trustben.com.

Cautionary Assertion Concerning Ahead-Trying Statements

This press launch incorporates forward-looking statements that contain substantial dangers and uncertainties. All statements, apart from statements of historic details, included on this press launch concerning our technique, future operations, future monetary place, future income, projected prices, prospects, plans and aims of administration are forward-looking statements. The phrases “anticipate,” “consider,” “estimate,” “anticipate,” “intend,” “may,” “plan,” “would,” “goal” and comparable expressions are supposed to establish forward-looking statements, though not all forward-looking statements comprise these figuring out phrases. These forward-looking statements embody, amongst different issues, statements about our estimates concerning future income and monetary efficiency. We may not truly obtain the expectations disclosed in our forward-looking statements, and you shouldn’t place undue reliance on our forward-looking statements. Precise outcomes or occasions may differ materially from the expectations disclosed within the forward-looking statements that we make. Extra details about potential elements that might have an effect on our enterprise and monetary outcomes is contained in our filings with the Securities and Alternate Fee, together with our Quarterly Report on Type 10-Q filed with the Securities and Alternate Fee (“SEC”) on Could 15, 2020, and our Annual Report on Type 10-Ok filed with the SEC on March 27, 2020. Extra data may even be set forth in our future quarterly studies on Type 10-Q, annual studies on Type 10-Ok and different filings that we make with the SEC. We don’t intend, and undertake no responsibility, to launch publicly any updates or revisions to any forward-looking statements contained herein.

Media Contact:
Dan Callahan
Director of Communication
GWG Holdings, Inc.
(612) 787-5744
dcallahan@gwgh.com

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