Life Partners Holdings Inc (LPHI, Financial) filed Quarterly Report for the period ended 2012-05-31.
Life Partners Holdings, Inc. has a market cap of $43.4 million; its shares were traded at around $2.32 with and P/S ratio of 1.3. The dividend yield of Life Partners Holdings, Inc. stocks is 17.2%. Life Partners Holdings, Inc. had an annual average earning growth of 52.2% over the past 10 years.
We reported net income of $1,037,031 for the First Quarter of this year, compared to a net loss of $(874,144) for the First Quarter of last year. Our net income resulted primarily from selling a large portion of our Investments in Policies for $8.9 million, resulting in a $3.5 million gain. There was a 41.6% decrease in revenues, a 41.2% decrease in revenues net of brokerage fees, and a 24.3% decrease in total operating and administrative expenses, which was largely attributable to a 50.6% decrease in legal and professional expenses.
Total other income increased from $142,646 in the First Quarter of last year to $3,345,923 in the First Quarter of this year, primarily due to a gain on the sales of the majority of our Investments in Policies. We sold all of our viatical positions and approximately 40% of our life settlements portfolio to unrelated parties in May 2012. The total gain realized was $3,482,470. We anticipate selling the remainder of our life settlements portfolio within the next twelve months. As a result, we are recording the portfolio as a current asset. Its carrying value as of May 31, 2012, was $2,861,323, net of impairment. See Footnote 11 in the notes to Consolidated Condensed Financial Statements for more information about our Investments in Policies. On May 1, 2012, we settled our note receivable for a payment of $350,000, resulting in a loss of $231,096.
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Life Partners Holdings, Inc. has a market cap of $43.4 million; its shares were traded at around $2.32 with and P/S ratio of 1.3. The dividend yield of Life Partners Holdings, Inc. stocks is 17.2%. Life Partners Holdings, Inc. had an annual average earning growth of 52.2% over the past 10 years.
Highlight of Business Operations:
We follow the guidance contained in ASC 325-30, Investments in Insurance Contracts, to account for our investments in life settlement contracts. ASC 325-30 states that a purchaser may elect to account for its investments in life settlement contracts using either the investment method or the fair value method. The election is made on an instrument-by instrument basis and is irrevocable. Under the investment method, a purchaser recognizes the initial investment at the purchase price plus all initial direct costs. Continuing costs (e.g., policy premiums and direct external costs, if any) to keep the policy in force are capitalized. Under the fair value method, a purchaser recognizes the initial investment at the purchase price. In subsequent periods, the purchaser re-measures the investment at fair value in its entirety at each reporting period and recognizes changes in fair value earnings (or other performance indicators for entities that do not report earnings) in the period in which the changes occur. We elected to value our investments in life settlement contracts using the investment method. As of May 31, 2012, and February 29, 2012, our investments in life settlements held for our own account were carried at $2,861,323 and $8,858,534, respectively.We reported net income of $1,037,031 for the First Quarter of this year, compared to a net loss of $(874,144) for the First Quarter of last year. Our net income resulted primarily from selling a large portion of our Investments in Policies for $8.9 million, resulting in a $3.5 million gain. There was a 41.6% decrease in revenues, a 41.2% decrease in revenues net of brokerage fees, and a 24.3% decrease in total operating and administrative expenses, which was largely attributable to a 50.6% decrease in legal and professional expenses.
Total other income increased from $142,646 in the First Quarter of last year to $3,345,923 in the First Quarter of this year, primarily due to a gain on the sales of the majority of our Investments in Policies. We sold all of our viatical positions and approximately 40% of our life settlements portfolio to unrelated parties in May 2012. The total gain realized was $3,482,470. We anticipate selling the remainder of our life settlements portfolio within the next twelve months. As a result, we are recording the portfolio as a current asset. Its carrying value as of May 31, 2012, was $2,861,323, net of impairment. See Footnote 11 in the notes to Consolidated Condensed Financial Statements for more information about our Investments in Policies. On May 1, 2012, we settled our note receivable for a payment of $350,000, resulting in a loss of $231,096.
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