MSP Recovery (MSPR) 16 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the LifeWallet First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Diana Diaz, LifeWallet Chief Communications Officer. Please go ahead.

welcome First and conference XXXX everyone, call. morning, to Quarter LifeWallet's earnings Good

please statements results beliefs, that presentation, we Reform forward-looking note Before begin, majorities the the in of future the Litigation a or statements manner. within predictions and which company's made differ management's or intentions, actual expectations Act the are could state this during material

This the the could filings about results press to in filings in factors company's those in contained that contained cause issued. but release limited forward-looking information and not is Additional from statements factors accompanying is to, includes, SEC differ in risk the SEC our

our company corresponding the be of non-GAAP presentation our today The A of at be copy end lifewallet.com. and measures of at slides. these can reconciliation the in can Investor financial Relations found presentation to our Investor materials found section comments website the measures also Relations measures included section and of the in Non-GAAP slides these included website. the in in is GAAP the of are

LifeWallet's on Ruiz, be turn Financial I'd call Ruiz. to today's will John Chief Francisco to and LifeWallet's H. John over call Officer. like Officer; H. Chief the speakers Rivas-Vasquez Executive The and Founder

XXXX. comprehensive company multiple quarter-to-date recovery joining litigation, it continued everyone, the an business, most and claims in settlements becoming relates of will strategies recent recovery of X traded the insurers. to experiencing property by most morning, and overview for its quarter as achieving us. with income highlights casualty since analytics XXXX, execute the a advance data of thank publicly first successful to Good LifeWallet you cover and quarter for first and we and Today, the company's our financials

in March affiliated claims first property and settlement XX casualty insurers. The with announced resolved

a to provide insurers to are In LifeWallet includes process addition January from future and the and years The Medicare all future resolve that future current historical out LifeWallet. sharing claims XX of existing settling agreement extending of going-forward collaboratively to XXXX reconciling owed processed claims timely claims. data claims settlements assisting established settlement settling claims, present to and through identifying data, and year, its the X assigned the for

insurers settling The from or which Medicare will clearinghouse Medicare that binding settling A claim mediation, agreement X-year data I resolve shortly. detail that of primary Coordination to any solution, of benefits sharing. agreement unreimbursed insurers The in through owns and LifeWallet for payers LifeWallet liens LifeWallet's future. the implementation cooperatively identifies they are relevant today lien that

insurers. against casualty third fail and second LifeWallet And to their settlement of existing and from agreement collect other confidential a or to historical followed property claims. group either settle to to parties pay insurers that collected to twice affiliated the payment liens assign cash another rights all funds settling and with A Medicare

in and for twice acquires either and that or The from third future insurers. claims settlement claims. included and of cooperatively XX-year owns the to the agreement and and future today casualty liens failed LifeWallet that mediation that or pay property against settling Medicare parties and all relevant assign Medicare claims collect to to collected the funds non-Medicare rights insurers resolve it A historical from provide to sums an data providers. attorney An additional assist also agreement Medicare assigned LifeWallet its binding agreement claimants all in reconciling to to through collect medical current rights and plaintiffs assignment relevant

in casualty to allows its company the insurers property that LifeWallet. settlements claims to additional with to settlements. Through owned medical unreimbursed enhances recoverable business ability also responsible parties any us data sharing, collaborative for relevant It pertain liens provide the data identify future these by identify for and engaged that

agreement part data XX XXXX terms potential tri-party LifeWallet, data company's existing owned is allows The being and liabilities. in of Technologies used clearing initiative a as collaboration solution of coordination This agreement to and house for of claims to the settlement reconcile order the the to its collaboration platform. sharing of Chase-to-Pay has company reconcile Medicare Palantir benefits maximize by between settling into The the implemented March entering counterparties. affiliated

LifeWallet's potential XXXX has Beyond be lies April identification reflected the the additional settlements, company's collections March which additional in and of and from and of To included XXXX believes Any cash thousands unreimbursed parties. date, team management process. other initiated from liens future collection collections the unreimbursed will payments, the revenue in claims these that filings. value company responsible identified

the These or in also same pending negotiations currently reflect casualty addition, litigation core same can enhance similar structure insurers P&C progress other is advancing insurers. be resolve the potentially under company the our recoveries business used In and company's framework. property settlements a other the model to to settlement from with in numerous and

is create The to litigation, of which The risk associated revenue the stream predictable. to the of upon amount and subject that of and are timing delays the the completion to a goal and is settlements of litigation foundation and build process. negotiation settlement diversified potential company's with

Now I'd to Rivas-Vasquez. like Financial LifeWallet's Officer. Chief over to turn Francisco things

everyone. quarter overview including our XXXX balance XX, of providing the liquidity. of company's non-GAAP statement, March the followed income sheet, the an results for and review first I'll morning, a Good be sources operating by the financials, quarter of XXXX

value, held our of assets at years. are X intangible mostly March at Our not are of they $X assets as total XX, billion XXXX. amortized of and fair cost, over These assets consist

December XXXX, by has billion $XX Total an the and million the on of due currently which intangibles liabilities, increased PP&E in December such $X.X Other are liabilities. a as assets $XXX prepaid current XX, considered million. of by since amortization assets company basis decreased cash, million of from and to The $X amortization combined of XX, of additional XXXX. million XXX,XXX primarily $XXX assets receivables

XX% Within primarily affiliate Virage the liability payable. warrant payable current million either warrants. an described includes to in of are our $XX in liabilities, XX-Q or filing. These stock This related the are

amounts to for Virage company expected XX, September which through to majority related obligation payable claims be due recovery to to guarantee the the maturity The liabilities, date extended are noncurrent income. For the XXXX. the is

mature $XXX primarily of decrease million primarily warrants. refer the September was paid XXXX, September As Virage the to interest of notes liability. afterwards. XXXX, our to X XX, payable in for XX, settlement Please on XX The of is and transaction with on of financing March time. Note and of and in driven expense warrant issuance payable the 'XX the information a Interest claims the to through filing additional XX-Q Virage

XXXX. of the our an XX, generated operating million million. The loss related reported income total, the company is to than higher statement recovery million, items, is the QX $XXX generated Now $X.X XX% which of of of amortization $XXX by which claims ended XXXX. consists quarter $X claims company income the of March million. mostly driven for expense loss In in noncash

the as on and of an adjusted warrant net basis, an Other items, operating adjusted $XXX adjusting and had liabilities. excluding the On such After primarily company of results. million. which of versus for million. interest the teams company operating costs loss $X.X expense the $X.X at $XXX amortization, were noncash amortization noncash operating expense claims loss items a expense million fair loss excludes excludes million, intangible value amortization non-GAAP the of loss derivative million. $XX When adjusted This looking reported generated an

to With XXXX. Yorkville regards extended the company to Virage, liquidity, the Nomura obligations and

for additional into we entered to facility in working agreement into an capacity million in entered have borrow which we standby in XXXX funds. capital credit $XX to potentially funding. the equity we addition, assist a Yorkville purchase In Furthermore, facility raising

anticipate months. the the working that funding will from recovery obligations the XX to have and over given progress meet our capital cash the efforts continue and expected facility our as the Therefore, facility, next to to potential in we liquidity access Yorkville credit base company

the outlook, and all thank today. We are for joining you us confident future in company's

no and Instructions] the time. [Operator showing at This conference. for does may you your disconnect. queue you questions today's And now this currently participation, I'm Thank all conclude in