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$NAVI 1Q15 10-Q: At March 31, 2015, Navient’s $131.4Bil student loan portfolio is 75% funded to term and is expected to produce consistent and predictable cash flows over the remaining life of the portfolio. NAVI is the largest servicer of education loans, servicing over $300Bil in student loans for more than 12MM customers.
$NAVI acquired $463MM of FFELP loans in 4Q17. At December 31, 2017, $NAVI held $81.7Bil of FFELP loans compared with $87.7Bil of FFELP loans held at December 31, 2016. $NAVI acquired $884MM of private education loans in 4Q17. At December 31, 2017, $NAVI held $23.4Bil of private education loans vs. $23.3Bil last year.
$NAVI reported a net loss of $84MM or $0.32 per share in 4Q17 compared to a net income of $145MM or $0.48 per share in 4Q16. This result includes a $208MM loss due to the Tax Cuts and Jobs Act. Core earnings reflected a net loss of $131MM or $0.50 per share vs. net income of $129MM or $0.43 per share for 4Q16.
Xtend Healthcare, a part of $NAVI, announced the expansion of its Health Information Management (HIM) technology and consultancy services with the acquisition of ELIPSe. Xtend appointed Elaine Lips, a 30-year industry veteran and founder and CEO of ELIPSe, to lead Xtend's expanded HIM services.
Asset management firm $NAVI has acquired transport management company Duncan Solutions for about $80MM. The addition of Duncan is expected to enhance Navient's offerings in the municipal and toll markets. Duncan will continue to be led by its present management team, and the employees will continue to work from the current headquarters.
During 2Q17, the credit performance of $NAVI’s federal and private student loan portfolio was strong and this continues to improve. The portfolio trends are benefitting from strong increases in employment for millennials, rise in pay and efforts to deploy data-driven strategies that increase customer contact.
$NAVI reported net income of $112MM or $0.39 per share in 2Q17 compared with $125MM or $0.38 per share in 2Q16. Core earnings were $123MM or $0.43 per share versus $154MM or $0.47 per share for 2Q16. The decrease in diluted core EPS was primarily the result of a $65MM reduction in net interest income due to the amortization of the portfolio.
$NAVI said it has ample capacity in its facilities to finance the $JPM portfolio acquisition. The company believes its financing partners will support the transaction. $NAVI has excess capital and also a few hundred million dollars of capacity on the private credit side. The company is confident in its ability to finance the transaction.
On the state level, $NAVI does business with a number of municipalities across the US. The company won some contracts to do some state tax amnesty programs that are ongoing. There is also a recurring revenue program that deals with driver assessments for traffic violations. These contracts are diverse and are a major component of the business.
$NAVI said the timing of the Department of Education contract was held up by a protest that was dismissed in April. The new administration has not made any announcements relating to the timing issues. $NAVI believes it has the ability to meet the DOE’s objectives in terms of the scale and capacity to manage all loans on a single platform.