Life Partners Holdings, Inc. (NASDAQ GM: LPHI), parent company of Life Partners, Inc., today announced another quarter of record earnings as it issued guidance for its second fiscal quarter and first half ended August 31, 2008. For the quarter, Life Partners expects to report a 56% increase in net earnings which were $6.6 million or $0.56 per share compared with earnings of $4.3 million or $0.36 per share for the same period of last year. For the six months ended August 31, 2008, the company expects to report earnings of $12.9 million or $1.08 per share compared with $9.1 million or $0.76 per share for the same period last year.

For the quarter ended August 31, 2008, Life Partners expects to report $25.9 million in revenues, a 47% increase over the $17.6 million it reported for the same period last year. For the first half of the year ended August 31, 2008, the company expects to report revenues of $50.4 million, which is a 43% increase compared to $35.2 million for the same period last year.

Additionally, the company intends to report a five-fold increase in its investment in policies purchased for its own account from just over $1 million at February 29, 2008, to $6.3 million at August 31, 2008. The company also expects to increase its next quarterly dividend by one cent, which is an annualized increase of 11%.

Among other key financial results that LPHI expects to report are:

SECOND QUARTER

  Ended 8-31-2008   Ended 8-31-2007   % of Change
Revenues $25.9 million $17.6 million 47% increase
Income from Operations $10.0 million $ 6.3 million 59% increase
Pre-tax Income $10.0 million $ 6.6 million 52% increase
Net Income $ 6.6 million $ 4.3 million 53% increase
Earnings Per Share $ 0.56 $ 0.36 56% increase

SIX MONTHS

  Ended 8-31-2008   Ended 8-31-2007   % of Change
Revenues $50.4 million $35.2 million 43% increase
Income from Operations $19.7 million $13.2 million 49% increase
Pre-tax Income $19.8 million $13.6 million 46% increase
Net Income $12.9 million $ 9.1 million 42% increase
Earnings Per Share

$ 1.08

$ 0.76

42% increase

BALANCE SHEET COMPARISON

SECOND QUARTER

  As of 8-31-2008   As of 8-31-2007   % of Change
Current Assets $34.0 million $18.6 million 83% increase
Current Liabilities $12.6 million $ 8.4 million 50% increase
Current Ratio 2.7 : 1 2.2 : 1
Working Capital $21.4 million $10.2 million 109% increase
Total Assets $46.2 million $24.7 million 87% increase
Total Liabilities $13.4 million $ 9.4 million 43% increase
Shareholder Equity $32.8 million $15.3 million 114% increase
Return on Assets 74.5% 78.5%
Return on Equity 109.9% 126.7%
Operating Return On Capital 166.9% 185.1%

Life Partners also released its preliminary consolidated balance sheet and income statement for the quarter ended August 31, 2008:

LIFE PARTNERS HOLDINGS, INC.

PRELIMINARY CONSOLIDATED BALANCE SHEET COMPARISON

AS OF AUGUST 31, 2008 AND 2007

(unaudited)

 
ASSETS
August 31,
CURRENT ASSETS: 2008   2007
Cash $ 3,224,899 $ 6,094,995
Investment in securities 4,265,487 5,082,852
Accounts receivable - trade 25,350,335 7,090,957
Accounts receivable - employees 55,760 84,190
Accounts receivable - other 99,034 100,000
Notes receivable 541,973 -
Prepaid expenses 444,611   153,603  
Total current assets 33,982,099 18,606,597
PROPERTY AND EQUIPMENT:
Land and building 2,131,285 1,959,065
Proprietary software 493,513 421,187
Furniture, fixtures and equipment 1,167,339 721,275
Transportation equipment 145,300 1,039,500
3,937,437 4,141,027
Accumulated depreciation (1,301,461 ) (1,035,905 )
Total property and equipment 2,635,976 3,105,122
OTHER ASSETS:
Investments in policies 6,283,799 762,352
Deferred income taxes 831,700 831,700
Artifacts and other 2,461,877 1,405,316
Total other assets 9,577,376   2,999,368  
Total Assets 46,195,451   24,711,087  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Accounts payable 9,268,283 3,863,280
Accrued liabilities - contingencies and other 903,686 1,070,361
Current portion of long-term debt 41,608 275,178
Short-term notes payable - 1,839,295
Deferred Revenue 276,350 262,950
Income taxes payable 2,155,213   1,067,224  
Total current liabilities 12,645,140 8,378,288
LONG-TERM DEBT, net of current portion shown above 754,051   1,048,540  
SHAREHOLDERS’ EQUITY
Common Stock, $0.01 par value 18,750,000 shares authorized,
12,019,483 shares and outstanding 120,194 120,194
Additional paid-in capital 11,490,360 11,490,360
Retained earnings 24,037,680 4,691,768
Accumulated other comprehensive loss, net of taxes (1,216,910 ) (645,922 )
Less: Notes receivable issued for common stock - (372,141 )
Less: Treasury stock - 132,270 shares (1,635,064 ) -  
Total shareholders' equity 32,796,260   15,284,259  
Total liabilities & shareholders' equity 46,195,451   24,711,087  

LIFE PARTNERS HOLDINGS, INC.

PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2008 AND 2007

(2008 unaudited)

     
 

 

 

Three Months Ended

Six Months Ended

August 31, August 31,

2008

2007

2008

2007

REVENUES $25,933,254 $17,646,109 $50,371,400 $35,225,085
BROKERAGE FEES 12,521,299   9,048,770   24,699,171   17,726,473  
REVENUES, NET OF BROKERAGE FEES 13,411,955   8,597,339   25,672,229   17,498,612  
OPERATING AND ADMINISTRATIVE EXPENSES:
  General and administrative 2,882,570 2,035,618 5,226,840 3,842,663
Settlement costs 416,852 124,741 562,371 328,216
Depreciation and amortization 83,647   96,149   160,611   154,796  
3,383,069   2,256,508   5,949,822   4,325,675  
INCOME FROM OPERATIONS 10,028,886 6,340,831 19,722,407 13,172,937
OTHER INCOME (EXPENSES):