SquareTwo Financial Reports Third Quarter 2014 Financial Results

Denver, Colorado (PRWEB) November 13, 2014

SquareTwo Financial Corporation, a leader in the $ 100 billion asset recovery and management industry, today reported consolidated financial results for the quarter ended September 30, 2014.

“SquareTwo Financial performed as expected in the third quarter as we remained committed to our disciplined purchasing strategy,” said president and CEO Paul A. Larkins. “Operationally, we focused on enhancing the scope of services we provide by continuing to evolve and strengthen our business model.”

For the quarter ended September 30, 2014:

Cash proceeds on purchased debt were $ 102.1 million, a 29.7% decrease from the $ 145.3 million in the third quarter of 2013.
Investment in purchased debt was $ 29.7 million, to purchase $ 342.1 million in face value of debt, compared to $ 73.7 million to purchase $ 665.1 million in face value of debt in the third quarter of 2013. The total investment in purchased debt was a $ 44.1 million decrease from the third quarter of 2013.
Revenue recognized on purchased debt, net was $ 57.0 million, a decrease of $ 27.3 million from the $ 84.3 million recognized in the third quarter of 2013.
Costs to collect on purchased debt including gross court costs were $ 44.4 million or 44.2% of collections for the quarter. This was an increase of 337 basis points from the third quarter of 2013. Costs to collect excluding court costs were $ 35.7 million or 35.5% of collections, which represented an increase of 197 basis points from the third quarter of 2013.
EBITDA was $ 1.4 million, compared to $ 15.4 million in the third quarter of 2013.
Net loss was $ 13.0 million, compared to net income of $ 1.4 million in the third quarter of 2013.
Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $ 47.8 million, a 40.8% decrease from the $ 80.7 million in the third quarter of 2013.

The following table summarizes our results of operations for the quarter ended September 30, 2014:

Quarter Ended September 30, 2014    

Total revenues     $ 56,999    

Total operating expenses 57,179    

Operating loss    (180)

Total other expenses 11,129    

Loss before income taxes (11,309)

Income tax expense (1,699)

Net loss $ (13,008)

The following table represents cash generated by operating activities, less operating and other cash expenses, resulting in Adjusted EBITDA:

Quarter Ended September 30, 2014

Adjusted EBITDA ($ in thousands)            

Voluntary, non-legal collections $ 44,278    

Legal collections 51,058    

Other collections(1)    5,172    

Sales, recourse & bankruptcy proceeds    1,593    

Contribution of other business activities(2) 1,393    

Total inflows 103,494    

Purchased debt expense     31,643    

Court costs, net 8,422    

Other direct operating expense 4,061    

Salaries, general and administrative expenses 11,315    

Other(3)    468    

Total outflows 55,909    

Adjustments(4) 211    

Adjusted EBITDA $ 47,796    

(1) Other includes collections and court cost recoveries on commercial, student loan, and medical accounts.

(2) Includes royalties on purchased debt and other revenue.

(3) Represents certain other items consistent with our debt covenant calculation.

(4) Consistent with the covenant calculations within our revolving credit facility, adjustments include the non-cash expense related to option grants of CA Holding’s equity granted to our employees, directors and branch office owners, branch office note reserves, lease breakup costs, certain consulting fees, management fees paid to KRG Capital Management, L.P., certain transaction expenses, recruiting expense, severance expense, and certain non-recurring items.

The following table reconciles Net Loss to Adjusted EBITDA:

Quarter Ended September 30, 2014

Reconciliation of Net Loss to Adjusted EBITDA ($ in thousands)            

Net loss $ (13,008)

Interest expense 11,049    

Interest income (44)

Income tax expense 1,699    

Depreciation and amortization     1,738    

EBITDA 1,434    

Adjustments related to purchased debt accounting            

Proceeds applied to purchased debt principal(1) 44,820    

Purchased debt valuation allowance charges(2) 1,331    

Certain other or non-cash expenses            

Stock option expense(3) 17    

Other(4) 194    

Adjusted EBITDA $ 47,796    

(1) Cash proceeds applied to purchased debt principal rather than recorded as revenue.

(2) Represents net non-cash valuation allowance charges on purchased debt.

(3) Represents the non-cash expense related to option grants of CA Holding’s equity granted to certain employees, directors and branch office owners.

(4) Consistent with the covenant calculations within our revolving credit facility, other includes branch office note reserves, lease breakup costs, certain consulting fees, management fees paid to KRG Capital Management L.P., certain transaction expenses, recruiting expense, severance expense, and certain non-recurring items.

The following table reconciles net cash used in operating activities to Adjusted EBITDA:

Nine Months Ended September 30, 2014

Reconciliation of Cash Flow from Operations to Adjusted EBITDA ($ in thousands)            

Net cash used in operating activities $ (27,047)

Proceeds applied to purchased debt principal(1) 133,720    

Interest expense to be paid in cash(2) 30,931    

Interest income (101)

Amortization of prepaid and other non-cash expenses (3,252)

Changes in operating assets and liabilities and deferred taxes:            

Restricted cash(3) 18,333    

Other operating assets and liabilities and deferred taxes(4) (2,543)

Income tax expense 4,807    

Other(5) 950    

Adjusted EBITDA $ 155,798    

(1) Cash proceeds applied to purchased debt principal are shown in the investing activities section of the condensed consolidated statements of cash flows.

(2) Represents interest expense, excluding non-cash amortization of loan origination fees and debt discount.

(3) Represents the change in restricted cash balances for the period due to the timing of payments on our lines of credit and semi-annual interest payments on our Senior Second Lien Notes.

(4) The amount represents timing differences due to the recognition of certain expenses and revenue items on a cash versus accrual basis.

(5) Consistent with the covenant calculations within our revolving credit facility, other includes branch office note reserves, lease breakup costs, certain consulting fees, management fees paid to KRG Capital Management L.P., certain transaction expenses, recruiting expense, severance expense, and certain non-recurring items.

Additional Financial Information:

In the quarter ended September 30, 2014, the Company recorded $ 1.3 million in net charges of non-cash valuation allowances on its purchased debt assets. Comparatively, the Company recorded $ 2.7 million in net reversals of non-cash valuation allowances on its purchased debt assets in the quarter ended September 30, 2013.

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time / 10:30 AM Eastern time to discuss our third quarter 2014 results. Please download our Q3 2014 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, http://www.squaretwofinancial.com.

Members of the public are invited to listen to the event. To access the live telephone conference line, please dial (877) 522-6079 for domestic access, and (706) 643-9734 for international access. Please reference Conference ID 25687608 for the call.

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company’s website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q as of September 30, 2014. Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our condensed consolidated financial statements and footnotes in our 10-Q as of September 30, 2014.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $ 100 billion asset recovery and management industry. Through its award-winning technology, industry-leading security and compliance practices, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Lenders in the Fortune 1000 trust SquareTwo Financial to manage their debt portfolios. In all of its recovery efforts, SquareTwo Financial is committed to delivering the FAIR SQUARE PROMISE, the company’s pledge to treat each Customer with fairness and respect. SquareTwo Financial is based in Denver, Colo. Visit http://www.squaretwofinancial.com for more information.







Find More Debt Consolidation Press Releases

Tags: , , , , , ,

Embrace Home Loans Proudly Welcomes Former Bank President and CEO Mary Beyer Halsey as a New Member of Its, Wilmington, DE Branch Team

(PRWEB) November 14, 2014

Embrace Home Loans is pleased to announce the hiring of Mary Beyer Halsey, former President and CEO of Cecil Bank in Elton, MD, as a Senior Loan Officer at its Wilmington Branch. Recognized as one of Maryland’s Top 100 Business Women in 1998, Halsey has served as President of the Southeastern Conference for Community Bankers as well as a member of both Maryland Banker’s and the American Banker’s Associations. A native of Baltimore and raised in Cecil County, Maryland, Halsey graduated from the College of Notre Dame, Maryland with a BA in Finance.

When asked why she’d chosen Embrace Home Loans, Halsey, put it simply, “Great reputation, and a great place to work. Not to mention a wide array of products. Bottom line, Embrace has all the resources I need to provide the very best customer service.”

Mary Beyer Halsey, NMLS# 1227234, is employed by Embrace Home Loans and is licensed in Maryland and Delaware.

About Embrace Home Loans

Founded in 1983, Embrace Home Loans is a direct lender for Fannie Mae and Freddie Mac, approved by FHA and VA, and an issuer for Ginnie Mae. Embrace Home Loans has remained a prominent leader in the industry, having helped hundreds of thousands of individuals and their families purchase new homes, lower their monthly payments and consolidate high-interest debt since its inception. For more information, please visit http://www.embracehomeloans.com.







Tags: , , , , , , , , , , , , , ,

How To Pay Off Student Loans – Student Loan Consolidation – Getting Out Of Debt

Manager David Gatheridge and Embrace Home Loans Celebrate Grand Opening of their Newest Branch in Franklin, Tennessee

Franklin, TN (PRWEB) November 14, 2014

Embrace Home Loans is pleased to announce the hiring of David Gatheridge, as Manager of their newest retail branch. Gatheridge’s extensive experience includes stints with some of the biggest names in mortgage banking including: Country Wide, Chase Home Loans, Bank of America and US Bank Home Mortgage. Gatheridge’s responsibilities include recruiting, training and managing Embraces’ staff of Loan Officers in addition to personally originating mortgage loans. The branch, which will celebrate its grand opening with two open house events later this month (see below), currently employs five Loan Officers. Gatheridge expects to hire additional Loan Officers, as well as support staff in the coming weeks and months.

When asked what makes Embrace Home Loans different from other direct lenders, Gatheridge explains, “The culture at Embrace is unlike anything I have experienced in the past. The notion in the saying, ‘They don’t care how much you know, until they know how much you care,’ really says it best. These are not just words, but a real approach to working and living that’s put into action each and every day. Combine that altruistic approach with the full range of mortgage products and services and the tightly integrated technology and marketing needed to support it, and you’ve got the Embrace difference. I couldn’t be happier, or more excited to share Embrace Home Loans with all of Tennessee.”

Gatheridge is a member of the Nashville Mortgage Bankers Association, Williamson County Association of Realtors, The Greater Nashville Association of Realtors and the Home Builders Association of Middle Tennessee. He attended Northwestern Bible College in Roseville, Minnesota in the mid-80s while studying Business Management. Passionate about living a life with intention and purpose, and giving back to the community, Gatheridge belongs to the Matthew 25 Ministry who’s projects focus on those most in need.

About Embrace Home Loans

Founded in 1983, Embrace Home Loans is a direct lender for Fannie Mae and Freddie Mac, approved by FHA and VA, and issuer for Ginnie Mae. Embrace Home Loans has remained a prominent leader in the industry, having helped hundreds of thousands of individuals and their families purchase new homes, lower their monthly payments and consolidate high-interest debt since its inception. For more information, please visit http://www.embracehomeloans.com.

To celebrate the opening of it’s newest retail branch at 725 Cool Springs Blvd. in Franklin, Tennessee, Embrace Home Loans will host two Open House events: First, on November 19th from 5:00pm to 8:00pm at The Pantheon Grille at 1962 South Church Street Murfreesboro, TN 37130, and then on November 20th from 5:00pm to 8:00pm at The Red House Inn at 138 3rd Avenue North in Franklin, TN 37067.







Tags: , , , , , , , , , , , , ,

Personal Finance Guide – Thinking Beyond Debt and Debt Consolidation

Top 3 Debt Consolidation Loans Providers In New York, NY Announced by BestDebtConsolidationLoans.org

gI_154381_best-debt-consolidation-loans


New York, NY (PRWEB) November 14, 2014

The company BestDebtConsolidationLoans.org recently undertook a review of the debt consolidation loan companies available to debt-burdened New Yorkers and concluded that the top three are National Debt Relief, CuraDebt and Consolidated Credit.

One big thing about New York City is the amount of debt carried by its residents. One recent study found that New Yorkers have an average debt of $ 60,885 and an average mortgage debt of $ 45,631. Making matters even worse is the fact that the area of New York City and northern New Jersey has an unemployment rate of 7%, which ranks it among the worst in the nation.

On a brighter note, residents of New York have an average credit score of 704, which is slightly above the national average of 696.

Why is it that residents of New York City are carrying so much debt? There are a number of reasons for this but the city’s unemployment rate is certainly one of the biggest factors.

“Of these three, we felt the best option is National Debt Relief,” said BestDebtConsolidationLoans.org spokesperson Jimmy Saver. “It has been in business for seven years and has helped more than 100,000 people achieve debt relief. National Debt Relief has consistently maintained an A rating with the Better Business Bureau. BestDebtconsolidationloans.org also ranked the company highly because of the way it does business. “National Debt Relief never charges any upfront or maintenance fees. In fact,its customers are required to pay nothing until their debts have been settled to their satisfaction and they have approved their payment plans. This is in stark contrast to other debt consolidation companies that require their customers to pay them up front or that charge monthly maintenance fees. We also liked the fact that National Debt Relief offers plans that are custom tailored to each of his customers and not just a one size fits all.”

BestDebtConsolidationLoans.org felt that CuraDebt would be the second best option for those New Yorkers that are finding it difficult to repay their debts. “This company has excellent relationships with the credit card providers,” noted Saver. “It specializes in working with people that owe more than $ 10,000. It can not only help customers with their credit card debts but also with student loan debts, tax debts and defaulted loans”.

CuraDebt has been in business for 13 years and offers its customers a free, no-obligation consultation as well as a free savings estimate.

Ranked as the third best option for New Yorkers by BestDebtConsolidationLoans.org is Consolidated Credit. It is Better Business Bureau accredited with an A+ rating. The reason that it was ranked third is because its only debt consolidation solution is credit counseling. Consolidated Credit does offer a free debt evaluation with a certified credit counselor who will review the person’s debt, credit score and budget. He or she will recommend the solution that would be best for that customer based on this information. In some cases this will be a debt management plan, which is a form of debt consolidation. However, for many people debt settlement will be a better option as, unlike a debt management plan, it can actually get people’s debt reduced.

New Yorkers that are struggling with their debts and would like to know more about these three companies should definitely go to the website http://www.BestDebtConsolidationLoans.org.







Find More Debt Consolidation Press Releases

Tags: , , , , , ,

Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation

Bellwether – Debt Consolidation