The J.G. Wentworth Company reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. Revenues were $61.4 million, a decrease of 50.3% as compared to revenues of $123.5 million in the second quarter of 2014, due primarily to: (i) an increase in its cost of funds during second quarter 2015 as compared to second quarter 2014 and the resulting impact on unrealized gains on VIE and other finance receivables, long term debt and derivatives primarily from its $4.4 billion of previously securitized finance receivables, and (ii) to a lesser extent, the impact of a decrease in purchase yield on fundings and in Total Receivables Balance purchases in second quarter 2015 as compared to second quarter 2014. Net income decreased to a loss of $26.6 million, as compared to net income of $21.7 million in the second quarter of 2014, due primarily to: (i) an increase in its cost of funds during second quarter 2015 as compared to second quarter 2014 and the resulting impact on unrealized gains on VIE and other finance receivables, long term debt and derivatives primarily from its $4.4 billion of previously securitized finance receivables, and (ii) to a lesser extent, the impact of a decrease in purchase yield on fundings and in TRB purchases in second quarter 2015 as compared to second quarter 2014. Adjusted net income decreased to a loss of $2.3 million as compared to income of $17.2 million in the second quarter of 2014 and $8.2 million in the first quarter of 2015. Total revenues were $61.363 million against $123.488 million a year ago. Loss before income taxes was $28.649 million against income of $27.789 million a year ago. Net loss attributable to The J.G. Wentworth Company was $12.296 million or $0.87 diluted per share attributable to stockholders of Class A common stock against income of $6.268 million or $0.50 diluted per share attributable to stockholders of Class A common stock a year ago. However, the reported results were heavily impacted by the interest rate environment, which led to a rapid increase in the cost of funds for the quarter. As a result, the company reported an adjusted net loss per share of $0.08. Interest income in the second quarter of 2015 increased marginally from the first quarter but was down compared to a year ago.

For the six-month period, the company reported total revenues were $148.193 million against $260.078 million a year ago. Loss before income taxes was $37.264 million against income of $70.234 million a year ago. Net loss attributable to The J.G. Wentworth Company was $13.641 million or $0.96 diluted per share attributable to stockholders of Class A common stock against income of $15.290 million or $1.26 diluted per share attributable to stockholders of Class A common stock a year ago. Adjusted net income was $5.930 million against $27.296 million a year ago.