| J.G. Wentworth & Company, Inc. | |||
| Proposed Ticker: | JGWC | The Graham Building, 15th and Ranstead Streets, 10th Floor | |
| Exchange: | NASDAQ-National Market | Philadelphia, PA 19102 | |
| Industry: | Financial (SIC Code 6162) | (215) 567-7660 | |
| # of Employees: | 200 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/14/97 | |
| U.S. Shares Filed: | 5,286,738 | Filing Range: | $10.00 - $12.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $58,154,118 | |
| Primary Shares: | 4,000,000 | Expenses: | $1,000,000 | |
| Secondary Shares: | 1,286,738 | Shares Out After: | 16,466,667 |
| Manager | Tier | Phone |
| Prudential Securities Incorporated | Lead Manager | (212) 778-5420 |
| Furman Selz Incorporated | Co-manager | (212) 309-8285 |
| Oppenheimer & Company, Inc. | Co-manager | (212) 667-7400 |
| Issuer's Law Firm: | Wolf, Block, Schorr and Solis-Cohen |
| Bank's Law Firm: | Stroock & Stroock & Lavan |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $11.79 | $20.55 | $5.92 | Assets: | $81.44 |
| Net Income: | -$2.57 | $3.95 | Curr Assets: | ||
| EPS: | -$0.20 | $0.31 | Liabilities: | $82.13 | |
| Prior EPS: | -$9.74 | -$8.64 | Curr Liabilities: | ||
| Cash Flow/Oper: | -$15.74 | -$20.05 | $13.43 | Equity: | -$0.69 |
| Cash Flow/Fin: | $34.07 | $30.30 | -$5.89 | Cash: | $0.61 |
| Cash Flow/Inv: | -$19.73 | $30.30 | |||
| Business Description |
| The company is a specialty finance company that originates, securitizes and services rights to receive payments from structured settlements and other deferred payment obligations. Deferred payment obligations are contractual arrangements under which one party has agreed to make fixed, scheduled payments to another party over time to satisfy an obligation that would otherwise be paid in an up-front, lump sum. The Company specializes in transactions involving two types of deferred payment obligations: (i) structured settlements arising from personal injury litigation as to which highly-rated insurance companies are the obligor, and, to a lesser extent, (ii) other deferred payment obligations such as claims arising from personal injury litigation and state-operated lotteries as to which governmental or quasi-governmental entities are the obligor. |
| Competition |
| The secondary market for deferred payment obligations is currently highly fragmented. In the market for structured settlements, the Company currently experiences competition from two main groups: specialty finance companies and independent brokers. The Company also experiences competition from individual brokers and networks of brokers through whom some of the Company's direct funding competitors originate much of their business. Because the Company originates substantially all of its receivables by its retail originations infrastructure, independent brokers are more likely to broker claims they identify to the Company's funding-company competitors than they are to refer them to the Company. In the future, the Company could face competition from a wide variety of financial services providers, including commercial banks, credit unions, savings and loans and other consumer and commercial lending institutions. Many of these existing and potential competitors in the financial services business are substantially larger and have more capital and other resources than the Company. The Company believes that it competes for business based upon the quality of its services, convenience and turnaround time in the funding process, availability of funding options and price. |
| Business Plan |
| The Company's growth strategy is to increase its originations of deferred payment receivables and profitability by further enhancing its position as the leading originator of the rights to receive payments from structured settlements and other deferred payment obligations. The Company believes that the creation of a strong brand image will enable the Company to increase profitably the volume of its receivables originated and the size of its servicing portfolio. To achieve its profitable growth, the Company intends to continue to: (I) Increase Retail Originations, (ii) Provide Quality Customer Service, (iii) Maintain High Underwriting Standards, (iv) Market to Referral Sources Such as Attorneys and Bankruptcy and Estate Trustees, (v) Obtain Institutional Financing and Complete Regular Securitizations, (vi) Maintain its Telecommunications and Information Management and (vii) Expand into New Deferred Payment Market Niches. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to pay a cash tax distribution to certain of the company's stockholders, to pay down outstanding amounts on the credit facilities and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| ING | 23.50% | 16.30% |
| James D. Delaney | 21.60% | 14.40% |
| Gary Veloric | 21.60% | 14.40% |
| Michael B. Goodman | 21.40% | 14.40% |
| Edward S. Stone | 7.80% | 5.40% |
| Officer Name | Title | Age |
| Gary Veloric | Chairman of the Board of Directors | 37 |
| Michael B. Goodman | Executive Vice President, Chief Operating Officer and Director | 35 |
| James D. Delaney | President, Chief Executive Officer and Director | 46 |
| Andrew S. Hillman | Senior Vice President, General Counsel and Secretary | 45 |
| James J. O'Malley | Vice President and Chief Financial Officer | 46 |