Life Partners Holdings Inc (LPHI) filed Quarterly Report for the period ended 2009-08-31.
Life Partners Holding is a licensed provider of viatical and senior settlements collectively referred to as life settlements. Life Partners Holdings Inc has a market cap of $274.2 million; its shares were traded at around $18.45 with and P/S ratio of 2.7. The dividend yield of Life Partners Holdings Inc stocks is 5.4%.
Highlight of Business Operations:
We reported net income of $7,625,015 for the three months ended August 31, 2009 (“the Second Quarter of this year”), compared to net income of $6,603,491 for the three months ended August 31, 2008 (“the Second Quarter of last year”). Our stronger net income resulted primarily from a 17.2% increase in revenues and our ability to reduce brokerage fees. The number of settlements transacted increased from 50 to 52, the average revenue per settlement increased by 12.7%, and total revenues net of brokerage fees increased by 20.8%.
Revenues: Revenues increased by $4,266,841 or 17.2% from $24,788,725 in the Second Quarter of last year to $29,055,566 in the Second Quarter of this year. This increase was due primarily to a 12.7% increase in our average revenue per settlement from $495,775 in the Second Quarter of last year to $558,761 in the Second Quarter of this year. This, in conjunction with reduced brokerage and licensee fees, resulted in a 20.8% increase in the net revenues derived.
Brokerage and Referral Fees: Brokerage and referral fees increased 13.0% or $1,476,855 from $11,376,771 in the Second Quarter of last year to $12,853,626 in the Second Quarter of this year. Brokerage and referral fees as a percentage of gross revenue declined from 45.8% in the Second Quarter of last year to 44.2% in the Second Quarter of this year. In the Second Quarter of this year, broker referrals accounted for 100% of the total face value of policies transacted compared with 99.9% of the policies transacted in the Second Quarter of last year. Due to an increase in the number of brokers in the market that are presenting policies to us, we have noted a reduction in the concentration of brokers that provide policies to us. For the Second Quarter of this year, only two brokers accounted for more than 10% of the face value of all completed transactions, and constituted 29.2% of the total face value of completed transactions compared to the Second Quarter of last year in which policies presented from five brokers having 10.0% or more of the face value transacted constituted 65.7% of the total face value of all completed transactions.
We reported net income of $15,070,484 for the six months ended August 31, 2009 (“the First Six Months of this year”), compared to net income of $12,852,065 for the six months ended August 31, 2008 (“the First Six Months of last year”). Our stronger net income resulted primarily from a 14.8% increase in revenues and our ability to reduce brokerage fees and the increase in interest and other income. The number of settlements transacted increased from 98 to 104, the average revenue per settlement increased by 8.1%, and revenues net of brokerage fees increased by 22.7%.
Revenues: Revenues increased by $7,272,299 or 14.8% from $49,226,871 in the First Six Months of last year to $56,499,170 in the First Six Months of this year. This increase was due primarily to an 8.1% increase in our average revenue per settlement from $502,315 in the First Six Months of last year to $543,261 in the First Six Months of this year, continuing a trend toward transactions with larger face amounts. This, in conjunction with reduced brokerage and licensee fees, resulted in a 22.7% increase in the net revenues derived.
Brokerage and Referral Fees: Brokerage and referral fees increased 6.2% or $1,457,103 from $23,554,643 in the First Six Months of last year to $25,011,746 in the First Six Months of this year. Brokerage and referral fees as a percentage of gross revenue declined from 47.8% in the First Six Months of last year to 44.2% in the First Six Months of this year. In the First Six Months of this year, broker referrals accounted for 98.6% of the total face value of policies transacted compared with 99.9% of the policies transacted in the First Six Months of last year. Due to an increase in the number of brokers in the market that are presenting policies to us, we have noted a reduction in the concentration of brokers that provide policies to us and a decrease in brokerage fees. For the First Six Months of this year, no brokers accounted for more than 10% of the face value of all completed transactions. Policies presented from five brokers having 10.0% or more of face value transacted constituted 64.0% of the total face value of all completed transactions during the First Six Months of last year.
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