updated 3/29/2011 4:15:55 PM ET 2011-03-29T20:15:55

BOCA RATON, Fla., March 29, 2011 (GLOBE NEWSWIRE) -- Imperial Holdings, Inc. (NYSE:IFT) ("Imperial"), a specialty finance company providing liquidity solutions with a focus on individual life insurance policies and purchasing structured settlement payments, today announced financial results for its fiscal year ended December 31, 2010.

For fiscal 2010, Imperial reported total revenue of $76.9 million, compared to 2009 revenue of $96.6 million. The Company recorded a net loss of $15.7 million in 2010, compared with a net loss of $8.6 million in 2009. Agency fee income, fees that are paid by the referring life insurance agencies, was $10.1 million in 2010, compared to $26.1 million a year earlier. Other significant sources of revenue are interest income and origination fees on premium finance loans, which totaled $38.6 million, compared to $51.3 million in 2009.

Antony Mitchell, Chairman and Chief Executive Officer, commented, "With our recent Initial Public Offering (IPO), our visibility in the marketplace has greatly increased and we are witnessing a steady demand for liquidity in the unique asset classes in which we operate. While historically our cost of financing has impacted our bottom line, the IPO has afforded us the opportunity to make significant strides in the way we operate our business. We are now able to deploy capital to our core premium finance and structured settlement businesses quickly and effectively at a significantly lower cost."

On an operating segment basis, the Premium Finance business generated $67.4 million of revenue in 2010, representing 87.6% of total revenues for the year. In the Structured Settlements segment, revenue was $9.5 million, representing 12.4% of total revenues for the year.

Mr. Mitchell concluded, "As we look at the landscape of the business today, we see demand for liquidity outpacing available capital, which affords us a tremendous opportunity. Since receiving the full proceeds of the IPO on February 15, we have been able to put capital to work and build on the strong momentum during the first quarter. Now, as we prepare for the second quarter of 2011, our first full quarter as a public company, we stand a very well capitalized company with minimal debt levels and ample funds to deploy in the high credit quality asset classes we manage. We believe this bodes well for our future growth plans and in turn enhances the value to our shareholders."

Conference Call Information

Imperial will host a conference call today, March 29, 2011, at 5:00 p.m. ET to discuss full-year 2010 results. To listen to the live call, please dial (888) 200-2794, passcode "53693929" or log on to the investor relations page of the company's website at www.imperial.com . In addition, an audio replay of the call will be available two hours after its conclusion and archived through April 12, 2011. This archived call may be accessed by dialing (800) 642-1687; passcode "53693929".

About Imperial Holdings, Inc.

Imperial is a leading specialty finance company that, through its operating subsidiaries, provides customized liquidity solutions to owners of illiquid financial assets. Imperial's primary operating units are Premium Finance and Structured Settlements. Imperial provides loans to policyholders for the payment of premiums and purchases life insurance policies. In its Structured Settlements unit, Imperial purchases from individuals long-term annuity payments issued by highly rated U.S. domestic insurance companies. More information about Imperial can be found at www.imperial.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Imperial Holdings, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although Imperial believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Imperial's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Imperial's periodic reports that are filed with the Securities and Exchange Commission and available on its website at www.sec.gov . All forward-looking statements attributable to Imperial or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, Imperial does not assume a duty to update these forward-looking statements.

Imperial Holdings, Inc. and Subsidiaries

 
CONSOLIDATED AND COMBINED BALANCE SHEETS

December 31

 
   2010   2009 
ASSETS
Assets    
Cash and cash equivalents $  14,224,014 $ 15,890,799
Restricted cash 690,727  —
 Certificate of deposit — restricted 879,974  669,835
 Agency fees receivable, net of allowance for doubtful accounts 561,456  2,165,087
 Deferred costs, net 10,706,022  26,323,244
 Prepaid expenses and other assets 1,721,946  885,985
 Deposits 692,285  982,417
 Interest receivable, net 13,140,180  21,033,687
 Loans receivable, net 90,026,383  189,111,302
 Structured settlements receivables, net 2,535,764  151,543
 Receivables from sales of structured settlements 223,955  320,241
 Investment in life settlements (life insurance policies), at estimated fair value 17,137,601  4,306,280
 Investment in life settlement fund  542,324
 Fixed assets, net 876,337  1,337,344
 Total assets $ 153,416,644 $ 263,720,088
 

LIABILITIES AND MEMBERS' EQUITY
Liabilities    
Accounts payable and accrued expenses $ 3,425,162 $ 2,713,543
Accrued expenses — related parties 70,833  455,485
Payable for purchase of structured settlements 223,955
Other liabilities 7,913,548
Lender protection insurance claims received in advance 31,153,755
Interest payable 13,764,613  8,251,023
Interest payable — related parties 54,769  4,376,299
Notes payable and debenture payable, net of discount 89,207,172  153,364,326
Notes payable — related parties  2,401,727  77,700,155
Total liabilities  148,215,534  246,860,831
Member units — preferred (500,000 authorized in the aggregate)    
Member units — Series A preferred (90,796 issued and outstanding as of December 31, 2010 and 2009, respectively) 4,035,000  4,035,000
Member units — Series B preferred (25,000 and 50,000 issued and outstanding as of December 31, 2010 and 2009, respectively) 2,500,000  5,000,000
Member units — Series C preferred (70,000 and zero issued and outstanding as of December 31, 2010 and 2009, respectively) 7,000,000
Member units — Series D preferred (7,000 and zero issued and outstanding as of December 31, 2010 and 2009, respectively) 700,000
Member units — Series E preferred (73,000 and zero issued and outstanding as of December 31, 2010 and 2009, respectively) 7,300,000
Member units — common (500,000 authorized; 337,500 and 450,000 issued and outstanding as of December 31, 2010 and 2009, respectively) 11,462,427  19,923,709
Accumulated deficit  (27,796,317)  (12,099,452)
Total members' equity  5,201,110  16,859,257
Total liabilities and members' equity $ 153,416,644 $ 263,720,088
 
Imperial Holdings, Inc. and Subsidiaries

 
 

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

December 31

 
   2010   2009 
Agency fee income $10,148,761 $ 26,113,814
Interest income 18,660,137  21,482,837
Origination fee income 19,937,683  29,852,722
Gain on sale of structured settlements 6,595,008  2,684,328
Gain on forgiveness of debt 7,599,051  16,409,799
Change in fair value of life settlements 10,156,387
Change in fair value structured receivables 2,476,690
Gain on sale of life settlements 1,951,176
Change in equity investments (1,283,810)
Servicing fee income 413,250
Other income  241,756  71,348
 Total income 76,896,089  96,614,848
Interest expense 21,819,910  23,928,017
Interest expense — related parties 6,335,434  9,826,781
Provision for losses on loans receivable 4,476,177  9,830,318
Loss on loan payoffs and settlements, net 4,981,314  12,058,007
Amortization of deferred costs 24,464,923  18,339,220
Selling, general and administrative expenses 29,645,703  30,242,699
Selling, general and administrative — related parties  869,493  1,026,209
Total expenses  92,592,954  105,251,251
Net loss $ (15,696,865) $ (8,636,403)
CONTACT: Imperial Holdings, Inc.
         David Sasso, 561.672.6114
         Director- Investor Relations
         IR@imperial.com
         www.imperial.com

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