Final jgwq2 2016 earnings presentation

Second Quarter Earnings Call
August 9, 2016

SAFE HARBOR
2
Certain statements in this presentation constitute "forward-looking statements." All statements, other than statements of historical fact, are forward-looking
statements. You can identify such statements because they contain words such as ''plans,'' ''expects'' or ''does expect,'' ''budget,'' ''forecasts,'' ''anticipates'' or ''does
not anticipate,'' ''believes,'' ''intends,'' and similar expressions or statements that certain actions, events or results ''may,'' ''could,'' ''would,'' ''might,'' or ''will,'' be
taken, occur or be achieved. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking
statements.
A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward-looking
statements. These factors should be considered carefully and you should not place undue reliance on the forward-looking statements. Forward-looking
statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause our actual results, performance and
opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. Consideration should also be given to
the areas of risk set forth under the heading "Risk Factors" in our filings with the Securities and Exchange Commission, and as set forth more fully under
"Part 1, Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015, as updated by "Part II, Item 1A. Risk Factors" in our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. These risks and uncertainties include, among other things: our ability to execute on our
business strategy; our ability to successfully compete in the industries in which we operate; our dependence on the effectiveness of direct response marketing;
our ability to retain and attract qualified senior management; any improper use of or failure to protect the personally identifiable information of past, current and
prospective customers to which we have access; our ability to upgrade and integrate our operational and financial information systems, maintain uninterrupted
access to such systems and adapt to technological changes in the industries in which we operate; our dependence on third parties, including our ability to
maintain relationships with such third parties and our potential exposure to liability for the actions of such third parties; damage to our reputation and increased
regulation of our industries which could result from unfavorable press reports about our business model; the accuracy of the estimates and assumptions of our
financial models; infringement of our trademarks or service marks; our ability to maintain our state licenses or obtain new licenses in new markets; changes in,
and our ability to comply with, any applicable federal, state and local laws and regulations governing us; including any applicable federal consumer financial
laws enforced by the Consumer Financial Protection Bureau; our business model being susceptible to litigation; our ability to continue to purchase structured
settlement payments and other financial assets; the public disclosure of the identities of structured settlement holders maintained in our proprietary database; our
dependence on the opinions of certain credit rating agencies of the credit quality of our securitizations; our ability to complete future securitizations, other
financings or sales on favorable terms; the insolvency of a material number of structured settlement issuers; adverse changes in the residential mortgage lending
and real estate markets, including any increases in defaults or delinquencies, especially in geographic areas where our loans are concentrated; our ability to grow
our loan origination volume, acquire mortgage servicing rights, or MSRs, and recapture loans that are refinanced; changes in the guidelines of government-
sponsored entities, or GSEs, or any discontinuation of, or significant reduction in, the operation of GSEs; potential misrepresentations by borrowers,
counterparties and other third parties; changes in prevailing interest rates and our ability to mitigate interest rate risk through hedging strategies; our ability to
obtain sufficient working capital at attractive rates or obtain sufficient capital to meet the financing requirements of our business; our ability to remain in
compliance with the terms of our substantial indebtedness and to refinance our term debt; and our ability to meet the ongoing eligibility standards of the
OTCQX® Market.
Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to publicly revise any forward-
looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

OVERVIEW
3
 Executing against key priorities:
 Improve profitability and remain the leader in Structured Settlements
 Grow Home Lending and gain market share
 Launch our Prepaid initiatives
 Operational Highlights:
 Home Lending achieved all-time record Locks and Closings
 On track for original expense savings target and expect incremental $15 million in expense savings
Q4 2015* Q1 2016*
Sequential Growth
Q-O-Q
Q2 2016*
Sequential Growth
Q-O-Q
Adjusted Revenues**:
Home Lending $14.7M $21.9M +49% $26.8M +22%
Structured Settlements $37.5M $35.2M -6% $35.3M +0.3%
Total Adjusted Revenues $52.2M $57.1M +9% $62.1M +9%
Adjusted EBITDA**:
Home Lending $0.7M $6.3M +800% $8.0M +27%
Structured Settlements $2.3M $1.7M -26% $3.0M +76%
Total Adjusted EBITDA $3.0M $8.0M +167% $11.0M +38%
* Amounts may not tie to financial statements due to rounding.
** Non-GAAP measures, which as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies.

HOME LENDING
4
 Building momentum across Direct-to-Consumer channels
 Optimizing back office operations to support growth
 Maintaining quality of loan originations
Q4 2015 Q1 2016
Sequential Growth
Q-O-Q
Q2 2016
Sequential Growth
Q-O-Q
Locked Loan Volume $705M $1,078M +53% $1,428M +33%
Closed Loan Volume $490M $568M +16% $846M +49%
$409,355,881
$463,650,794
$524,790,659
$189,836,533
$263,559,130
$307,043,485
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
8/31/15 9/30/15 10/31/15 11/30/15 12/31/15 1/31/16 2/29/16 3/31/16 4/30/16 5/31/16 6/30/16
Locked Amount Closed Amount

STRUCTURED SETTLEMENTS
 Sequential improvement in adjusted operating results driven by strong
expense management
 Increased savings target of $40M – $45M
 Completed second fixed rate asset sale
 Continued progress on marketing optimization
 :30 second television spots
 Digital marketing
 Implemented solution for ongoing customer engagement
5

PREPAID
 Bringing payment innovation to the lottery and gaming categories
 Launching new innovative product that will combine a virtual open loop gift card with a state
lottery scratch off – Example:
 Initial combination product will retail for $27.95
⁻ $20 guaranteed virtual gift card load, $5 scratch off lottery ticket, $2.95 purchase fee
 Recipient has potential for more value above of the guaranteed amount from scratch off
game result – proceeds directly loaded onto virtual prepaid account
 Redeem online for both the guaranteed value and the scratch off value
 Pursuing payment solutions / loyalty for casino, iGaming and fantasy sports wagering / winnings
6
Source: Mercator Advisory Group
US Prepaid Market Forecast
Sources:
Global Gaming Outlook – PWC
Industry Demographics – FSTA
Gaming Statistics ‘15 – RubinBrown

Q4 2015 Q1 2016 Q2 2016
CONSOLIDATED RESULTS Q2 2016
77
 Overall adjusted revenues* increased by $5
million in the second quarter
$57.1M
$52.2M
 Adjusted EBITDA* grew by $3 million in
the second quarter, the second consecutive
quarter of sequential improvement
Adjusted Revenues* Adjusted EBITDA*
* Non-GAAP measures, which as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies.
Q4 2015 Q1 2016 Q2 2016
$8.0M
$3.0M
$11.0M$62.1M

CASH & LIQUIDITY
Loan is
Purchased
8
 Cash and cash equivalents at June 30, 2016 increased $11.1 million from March 31, 2016
 On June 17, 2016, completed the initial close of the 2016-2 direct asset sale
 Generated net cash proceeds of approximately $18M
 Second asset pool for 2016-2 transaction expected to close in August
 Began to adjust in Q2 our revolving credit facilities to better reflect current and projected business
conditions
 As of June 30, Structured Settlements had $400M in aggregate borrowing capacity and Home
Lending had $250M
(in thousands) Q1 2016 Q2 2016
Total Cash
Balance
$26,465 $37,600

Final jgwq2 2016 earnings presentation

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Final jgwq2 2016 earnings presentation