Primus Guaranty, Ltd. Reports Second Quarter 2014 Results

HAMILTON, Bermuda--()--Primus Guaranty, Ltd. (“the Company”) (OTC PINK:PRSG) today announced its financial results for the second quarter ended June 30, 2014.

  • GAAP net income available to common shares for the second quarter 2014 was $2.3 million, or $0.11 per diluted share, compared with GAAP net income available to common shares of $16.4 million, or $0.65 per diluted share, for the second quarter 2013.
  • GAAP book value per common share was $1.82 at June 30, 2014, compared with GAAP book value per common share of $8.89 at December 31, 2013. The June 30, 2014 GAAP book value per common share reflects the $7.25 distribution per common share that was paid to shareholders in the second quarter 2014.
  • At June 30, 2014, the notional principal of Primus Financial Products, LLC’s consolidated credit swap portfolio totaled $300 million, compared with $3.3 billion at December 31, 2013.

Additional Information

A copy of this press release and a letter dated July 30, 2014 to the shareholders from Richard Claiden, Chief Executive Officer, are available in the Investor Relations section of the Company’s Web site at www.primusguaranty.com.

About Primus Guaranty

Primus Guaranty, Ltd. is a Bermuda company with offices in New York. Through its subsidiary, Primus Financial Products, LLC, the Company provides protection against the risk of default on primarily investment grade corporate reference entities. Its common shares trade on the OTC Pink Tier of the OTC market. Investors can find market information for the Company on www.otcmarkets.com.

Primus Guaranty, Ltd.

Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands except share amounts)

   
June 30, December 31,
2014 2013
 
Assets
Cash and cash equivalents $ 20,500 $ 27,512
Investments, at fair value 24,207 66,230
Restricted cash - 106,580
Accrued interest and premiums 311 1,270
Unrealized gain on credit swaps, at fair value 162 1,981
Other assets (includes $524 and $822 at fair value as of
June 30, 2014 and December 31, 2013, respectively)   1,331   1,366
Total assets $ 46,511 $ 204,939
 
Liabilities and Equity
Liabilities
Accounts payable and accrued expenses $ 6,051 $ 4,447
Unrealized loss on credit swaps, at fair value - 5,453
Other liabilities (includes $624 and $979 at fair value as of
June 30, 2014 and December 31, 2013, respectively)   878   1,281
Total liabilities $ 6,929 $ 11,181
 
Equity
Common shares, $0.08 par value, 62,500,000 shares
authorized, 21,786,187 and 21,786,406 shares issued and
outstanding at June 30, 2014 and December 31, 2013, respectively 1,743 1,743
Additional paid-in capital 37,537 116,629
Accumulated other comprehensive income 137 538
Retained earnings   165   74,848
Total equity $ 39,582 $ 193,758
Total liabilities and equity $ 46,511 $ 204,939

Primus Guaranty, Ltd.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands except per share amounts)

   
Three Months Ended

June 30,

Six Months Ended

June 30,

2014   2013 2014   2013
 
Revenues
Net credit swap revenue $ 2,924 $ 16,524 $ 5,466 $ 36,832
Interest income 482 1,176 1,175 2,860
Other income   122   621   317   1,402
Total revenues   3,528   18,321   6,958   41,094
 
Expenses
Compensation and employee benefits 583 740 1,476 2,338
Professional and legal fees 217 330 434 649
Interest expense - - - 692
Other   425   444   868   995
Total expenses   1,225   1,514   2,778   4,674
Income from continuing operations before provision
for income taxes 2,303 16,807 4,180 36,420
Provision for income taxes   (11)   -   12   19
Income from continuing operations, net of tax 2,314 16,807 4,168 36,401
Income from discontinued operations, net of tax   2   154   15   238
Net income 2,316 16,961 4,183 36,639
Less:
Distributions on preferred securities of subsidiary   -   578   -   1,350
Net income available to common shares $ 2,316 $ 16,383 $ 4,183 $ 35,289
 
Income per common share:
Basic:
Income from continuing operations $ 0.11 $ 0.65 $ 0.19 $ 1.37
Income from discontinued operations $ - $ - $ - $ 0.01
Net income available to common shares $ 0.11 $ 0.65 $ 0.19 $ 1.38
Diluted:
Income from continuing operations $ 0.11 $ 0.65 $ 0.19 $ 1.37
Income from discontinued operations $ - $ - $ - $ 0.01
Net income available to common shares $ 0.11 $ 0.65 $ 0.19 $ 1.38
 
Weighted average common shares outstanding:
Basic 21,786 25,125 21,786 25,625
Diluted 21,786 25,126 21,786 25,634

Contacts

Investor Relations
Primus Guaranty, Ltd.
212-697-1992
investorrelations@primusguaranty.com

Release Summary

PRIMUS GUARANTY, LTD. REPORTS SECOND QUARTER 2014 RESULTS

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Contacts

Investor Relations
Primus Guaranty, Ltd.
212-697-1992
investorrelations@primusguaranty.com