Onemain Holdings, Inc. · NYSE:OMF
Onemain — Springleaf Holdings — FY2013 Earnings Presentation
22 slides from Onemain's earnings presentation, Mar 11, 2014
Slide 1: 4Q and FY 2013 Earnings Presentation
4Q and FY 2013 Earnings Presentation Three Months and Twelve Months Ended December 31, 2013 March 11, 2014
Slide 2: Important Information
Important Information The following slides are part of a presentation by Springleaf Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides are c
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present core earnings as a “non-GAAP financial measure” in this presentation. This measure is derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please refer to the Appe
Slide 4: Highlights
Highlights 4Q13 pretax earnings from Core business of $77 million up significantly from prior year quarter Full year Pretax Core earnings of $314 million versus $78 million in 2012 23% increase in branch receivables and benefits of scale Strong earnings contribution from SpringCastle portfolio and s
Slide 5: Springleaf Overview
Springleaf Overview Nationwide Footprint Branch Office Represents Originated Loans net finance receivables and Acquired Loans unpaid principal balance as of December 31, 2013. Excluding SpringCastle, Originated Loans net finance receivables were $3.1bn. Rounded; average for twelve months ended Decem
Slide 6: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Proven History of Scalability Reflects historical accounting basis (which is a basis of accounting other than U.S. GAAP). Risk Adjusted Yield = Yield less Net Charge-off Rate. Charge-off rate excludes impact from sale of charged-off accounts in June 2013, ch
Slide 7: Growth in Average Receivables per Branch
Growth in Average Receivables per Branch Branches managing over $5 million of receivables have more than doubled since YE 2012 (47 113) Branches managing under $3 million of receivables have decreased ~50% since YE 2012 (498 258) Additional room for growth with minimal incremental investment require
Slide 8: Consumer Loan Performance
Consumer Loan Performance Risk Adjusted Yield Trending Up(1,2) Risk Adjusted Yield = Yield less Net Charge-off Rate. Reflects historical accounting basis (which is a basis of accounting other than U.S. GAAP). Charge-off rate excludes impact from sale of charged-off accounts in June 2013, change in c
Slide 9: Consumer Loan Performance - Credit
Consumer Loan Performance - Credit Charge-off Seasonality(1) Reflects historical accounting basis (which is a basis of accounting other than U.S. GAAP). The net charge-off ratio for 1Q13 excludes $14.5 million of additional charge-offs recorded in March 2013 related to our change in charge-off polic
Slide 10: SpringCastle Portfolio
SpringCastle Portfolio Springleaf equity investment of $210 million at acquisition Portfolio has exhibited solid performance since April ’13 acquisition; servicing transferred to Springleaf in Sept. ‘13 Pre-tax earnings for 4Q13 and YTD of $36 million and $110 million, respectively; includes servici
Slide 11: Mortgage Portfolio Overview
Mortgage Portfolio Overview at 12/31/13 Agreement to sell $1 billion of real estate mortgage receivables; projected gain of approximately $50 - 60 million and projected net cash of over $800 million Does not exclude repayment of debt. Reflects historical accounting basis (which is a basis of account
Slide 12: Liquidity and Funding
Liquidity and Funding Strong and stable liquidity position ~$450 million cash on hand $1bn committed undrawn funding capacity from 3 money-center banks Deep and diversified funding sources Driving down weighted average cost of funds 5.47% in 2013, down 59 bps from 2012(1,2) 5.22% in 4Q13, down 10 bp
Slide 13: 4Q13 Summary Financial Results
4Q13 Summary Financial Results Pretax Core Earnings up from prior year quarter: Growth in consumer net finance receivables and risk adjusted yield Full quarter impact from SpringCastle Pretax Core Earnings up from prior quarter: First full quarter with servicing fee income from SpringCastle Increase
Slide 14: 2014 Guidance
2014 Guidance Net Finance Receivables represents data as of December 31, 2013. All other metrics represent data for the year ended December 31, 2013. Risk Adjusted Yield = Yield less Net Charge-off Rate. Core Consumer Operations(1) FY 2013A FY 2014E Range Net Finance Receivables at YE $3.14bn $3.60b
Slide 15: Financial Supplement
Financial Supplement DSpringleaf 15
Slide 16: Consolidated Income Statement (PGAAP)
Consolidated Income Statement (PGAAP) Note: Core Earnings are on a historical accounting basis (which is a basis of accounting other than U.S. GAAP). Refer to slide 24 for reconciliations to U.S. GAAP. Core earnings include Consumer, Insurance, and Acquisition & Servicing segments (which are reporte
Slide 17: Core Earnings (Non-GAAP)
Core Earnings (Non-GAAP) Note: Core Earnings are on a historical accounting basis (which is a basis of accounting other than U.S. GAAP). Refer to slide 22 for reconciliations to U.S. GAAP. Core earnings estimated income taxes assumes 37% statutory tax rate. (unaudited, in millions) 4Q13 3Q13 4Q12 FY
Slide 18: Core: Consumer & Insurance Segment (Historical)
Core: Consumer & Insurance Segment (Historical) Note: Consumer & Insurance are on a historical accounting basis (which is a basis of accounting other than U.S. GAAP). The gross charge-off ratio for 1Q13 excludes $14.5 million of additional charge-offs recorded in March 2013 related to our change in
Slide 19: Core: Acquisitions & Servicing Segment
Core: Acquisitions & Servicing Segment (unaudited, in millions) 4Q13 3Q13 2Q13 FY 2013 1 Interest Income $161 $163 $167 $491 2 Interest Expense (25) (22) (25) (72) 3 Provision for Finance Receivable Losses (54) (61) (18) (133) 4 Net Interest Income after Provision 82 80 124 286 5 Servicing Fees 19 1
Slide 20: Non-Core: Real Estate Segment (Historical)
Non-Core: Real Estate Segment (Historical) Note: Real Estate is on a historical accounting basis (which is a basis of accounting other than U.S. GAAP). (1) The loss ratio for 2Q13 excludes $9.1 million of recoveries on charged-off real estate loans resulting from a sale of our charged-off finance re
Slide 21: Non-Core: Other (Historical)
Non-Core: Other (Historical) Note: Other is on a historical accounting basis (which is a basis of accounting other than U.S. GAAP). (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $9 $10 $17 $46 $100 2 Interest Expense (4) (3) (8) (15) (34) 3 Provision for Finance Receivabl
Slide 22: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings (1) Pretax earnings attributable to Springleaf Holdings, Inc. (SHI), which excludes non-controlling interests. (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Push-Down Accounting Pretax Earnings 1 $11 ($117) ($97)