WMIH CORPORATION (OTCMKTS:WMIH) reported net income of $5.5 million in 1Q2015 versus a net loss of $3.4 million in the same period a year earlier. The net income came higher due to the line product related with the amendments recorded in fair value of derivative liability as per embedded conversion feature. The form 10-K indicated that it was the non-cash item behind the $7.2 million income benefit in 1Q2015. The numbers will be assessed after every quarter so that it should not negatively affect the overall performance.
The highlights
WMIH CORPORATION (OTCMKTS:WMIH) financial performance was significantly impacted by the non-cash benefit noted in the first quarter of year. The decline in interest expenses as well as increase in G&A costs also affected the overall financial performance in the quarter. The interest expenses declined due to a noteworthy drop in Runoff Note balances.
The G&A expenses jumped due to surge in overall operations and additional expenses related to annual meeting as it was scheduled before time. The underwriting expenses declined resulting in a positive impact on revenues. The company’s investment income also recorded a decline as it came $0.3 million lower compared to the same quarter in FY2014. The investments recorded in the year were low resulting in a decline in investment income.
The decline in assets
WMIH CORPORATION (OTCMKTS:WMIH) reported that they expected the decline in revenue in 1Q2015 as the company’s operating subsidiary ‘WMMRC’ was in runoff mode. The company even recorded a drop in assets resulting out of prior commutations. The total revenue came at $1.8 million, lower from $2.8 million in the first quarter of 2014. The decline can be attributed to the UGRIC commutation that was recorded last year in April.
WMIH CORPORATION (OTCMKTS:WMIH) has a market cap of $567.31 with a market price of $2.70. The shares fell 3.57% in current session.
