LIFE PARTNERS HOLDINGS INC

CIK:0000049534|SEC Filings

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $)	3 Months Ended		9 Months Ended
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $)	Nov. 30, 2014	Nov. 30, 2013	Nov. 30, 2014	Nov. 30, 2013
REVENUES	$ 6,181,572us-gaap_Revenues	$ 4,485,284us-gaap_Revenues	$ 14,306,149us-gaap_Revenues	$ 11,586,368us-gaap_Revenues
BROKERAGE FEES	931,911us-gaap_InsuranceCommissions	2,907,918us-gaap_InsuranceCommissions	5,564,911us-gaap_InsuranceCommissions	9,037,800us-gaap_InsuranceCommissions
REVENUES, NET OF BROKERAGE FEES	5,249,661us-gaap_SalesRevenueServicesNet	1,577,366us-gaap_SalesRevenueServicesNet	8,741,238us-gaap_SalesRevenueServicesNet	2,548,568us-gaap_SalesRevenueServicesNet
OPERATING AND ADMINISTRATIVE EXPENSES:
General and administrative	2,254,764us-gaap_GeneralAndAdministrativeExpense	2,038,832us-gaap_GeneralAndAdministrativeExpense	6,288,906us-gaap_GeneralAndAdministrativeExpense	6,248,261us-gaap_GeneralAndAdministrativeExpense
Legal and professional expense	663,690lphi_LegalAndProfessionalExpense	594,098lphi_LegalAndProfessionalExpense	3,164,727lphi_LegalAndProfessionalExpense	2,235,110lphi_LegalAndProfessionalExpense
Premium advances, net	229,822us-gaap_GeneralInsuranceExpense	266,578us-gaap_GeneralInsuranceExpense	618,457us-gaap_GeneralInsuranceExpense	627,522us-gaap_GeneralInsuranceExpense
Impairment of investments in policies	6,814us-gaap_ImpairmentOfInvestments	59,266us-gaap_ImpairmentOfInvestments	38,150us-gaap_ImpairmentOfInvestments	282,830us-gaap_ImpairmentOfInvestments
Settlement costs	13,000	20,809	13,600	36,322
Depreciation	47,908us-gaap_Depreciation	52,602us-gaap_Depreciation	143,241us-gaap_Depreciation	150,582us-gaap_Depreciation
Total operating and administrative expenses	3,215,998us-gaap_BenefitsLossesAndExpenses	3,032,185us-gaap_BenefitsLossesAndExpenses	10,267,081us-gaap_BenefitsLossesAndExpenses	9,580,627us-gaap_BenefitsLossesAndExpenses
INCOME (LOSS) FROM OPERATIONS	2,033,663us-gaap_OperatingIncomeLoss	(1,454,819)us-gaap_OperatingIncomeLoss	(1,525,843)us-gaap_OperatingIncomeLoss	(7,032,059)us-gaap_OperatingIncomeLoss
OTHER INCOME (EXPENSES):
Interest and other income	13,110	24,638	43,717	79,045
Interest expense	(2,402)us-gaap_InterestExpense	0us-gaap_InterestExpense	(2,583)us-gaap_InterestExpense	(65)us-gaap_InterestExpense
Income from assignment of income stream	0lphi_IncomeFromAssignmentOfIncomeStream	0lphi_IncomeFromAssignmentOfIncomeStream	0lphi_IncomeFromAssignmentOfIncomeStream	5,254,500lphi_IncomeFromAssignmentOfIncomeStream
Impairment of investment in life settlements trust	0	0	(6,648,478)	0
Earnings from life settlements trust	0us-gaap_UnrealizedGainLossOnInvestments	0us-gaap_UnrealizedGainLossOnInvestments	0us-gaap_UnrealizedGainLossOnInvestments	114,886us-gaap_UnrealizedGainLossOnInvestments
Loss from accounts receivable- other	(257,395)	0	(257,395)	0
Income (loss) from investments in policies	(75,104)us-gaap_InvestmentIncomeNet	7,256us-gaap_InvestmentIncomeNet	(31,224)us-gaap_InvestmentIncomeNet	26,534us-gaap_InvestmentIncomeNet
Total other income (expense)	(321,791)us-gaap_NonoperatingIncomeExpense	31,894us-gaap_NonoperatingIncomeExpense	(6,895,963)us-gaap_NonoperatingIncomeExpense	5,474,900us-gaap_NonoperatingIncomeExpense
INCOME (LOSS) BEFORE INCOME TAXES	1,711,872	(1,422,925)	(8,421,806)	(1,557,159)
Total income tax expense (benefit)	633,927us-gaap_IncomeTaxExpenseBenefit	(484,159)us-gaap_IncomeTaxExpenseBenefit	(552,600)us-gaap_IncomeTaxExpenseBenefit	(504,268)us-gaap_IncomeTaxExpenseBenefit
NET INCOME (LOSS)	$ 1,077,945us-gaap_NetIncomeLoss	$ (938,766)us-gaap_NetIncomeLoss	$ (7,869,206)us-gaap_NetIncomeLoss	$ (1,052,891)us-gaap_NetIncomeLoss
EARNINGS (LOSS): per share - basic and diluted	$ 0.06us-gaap_EarningsPerShareBasicAndDiluted	$ (0.05)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.42)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.06)us-gaap_EarningsPerShareBasicAndDiluted
AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: basic and diluted	18,647,468	18,647,468	18,647,468	18,647,468

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	Nov. 30, 2014	Nov. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,869,206)us-gaap_NetIncomeLoss	$ (1,052,891)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	143,241us-gaap_Depreciation	150,582us-gaap_Depreciation
Impairment of investments in policies	38,150us-gaap_ImpairmentOfInvestments	282,830us-gaap_ImpairmentOfInvestments
Earnings from investment in life settlements trust	0	(114,886)
Deferred income taxes	(604,628)	(551,210)
Premium advances and bad debt expense	418,124	199,774
Loss (gain) from investments in policies	31,224us-gaap_ProvisionForDoubtfulAccounts	(26,534)us-gaap_ProvisionForDoubtfulAccounts
Income from assignment of income stream	0lphi_IncomeFromAssignmentOfIncomeStream	(5,254,500)lphi_IncomeFromAssignmentOfIncomeStream
Impairment of investment in life settlements trust	6,648,478	0
(Increase) decrease in operating assets:
Accounts receivable	(50,248)	(166,050)
Note receivable	0	1,088
Income taxes receivable (payable)	(4,698)	(5,138)
Prepaid expenses	(33,720)	(43,383)
Premium advances, net	(674,506)	1,497,813
Artifacts and other	3,150	(3,150)
Increase (decrease) in operating liabilities:
Accounts payable	662,097	(982,251)
Accrued liabilities	119,714	(38,155)
Accrued settlement expense	0	(28,623)
Deferred policy monitoring costs	497,012	701,244
Net cash used in operating activities	(675,816)	(5,433,440)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in certificates of deposit	(420)	(250,000)
Proceeds from certificate of deposit	0	500,931
Purchases of property and equipment	(16,031)	(2,366)
Proceeds from life settlements trust	0	227,508
Proceeds from assignment of income stream	0	5,254,500
Investment in life settlements trust	0	(47,695)
Proceeds from sales of investments in policies	1,945,025	68,626
Maturities of investments in policies	33,788	8,419
Purchase of investment in policies and capitalized premiums	(301,847)us-gaap_PaymentsToAcquireInvestments	(214,823)us-gaap_PaymentsToAcquireInvestments
Net cash provided by investing activities	1,660,515	5,545,100
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable	(101,445)us-gaap_RepaymentsOfNotesPayable	0us-gaap_RepaymentsOfNotesPayable
Dividends paid	(2,797,236)us-gaap_PaymentsOfDividends	(3,729,569)us-gaap_PaymentsOfDividends
Net cash used in financing activities	(2,898,681)	(3,729,569)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,913,982)	(3,617,909)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	6,134,731	7,575,579
CASH AND CASH EQUIVALENTS, END OF PERIOD	4,220,749	3,957,670
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	2,583us-gaap_InterestPaid	75us-gaap_InterestPaid
Income taxes paid	75,777us-gaap_IncomeTaxesPaid	54,319us-gaap_IncomeTaxesPaid
Insurance premiums financed	$ 338,963lphi_InsurancePremiumsFinanced	$ 0lphi_InsurancePremiumsFinanced

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)	Nov. 30, 2014	Feb. 28, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 4,220,749	$ 6,134,731
Certificates of deposit	352,008	351,588
Accounts receivable - trade	57,049us-gaap_AccountsReceivableNetCurrent	17,480us-gaap_AccountsReceivableNetCurrent
Accounts receivable - other	31,429us-gaap_OtherReceivablesNetCurrent	20,750us-gaap_OtherReceivablesNetCurrent
Note receivable	8,912us-gaap_NotesReceivableNet	8,912us-gaap_NotesReceivableNet
Current portion of investments in policies	363,995	1,075,205
Deferred income taxes	608,644us-gaap_DeferredTaxAssetsNetCurrent	585,498us-gaap_DeferredTaxAssetsNetCurrent
Prepaid expenses	596,916us-gaap_PrepaidExpenseCurrent	224,233us-gaap_PrepaidExpenseCurrent
Total current assets	6,239,702us-gaap_AssetsCurrent	8,418,397us-gaap_AssetsCurrent
PROPERTY AND EQUIPMENT:
Land and building	2,316,202lphi_LandAndBuildingsGross	2,316,202lphi_LandAndBuildingsGross
Proprietary software	559,879	554,211
Furniture, fixtures and equipment	1,546,753us-gaap_FurnitureAndFixturesGross	1,536,390us-gaap_FurnitureAndFixturesGross
Transportation equipment	9,800us-gaap_PropertyPlantAndEquipmentOther	9,800us-gaap_PropertyPlantAndEquipmentOther
Property, Plant and Equipment, Gross	4,432,634us-gaap_PropertyPlantAndEquipmentGross	4,416,603us-gaap_PropertyPlantAndEquipmentGross
Accumulated depreciation	(2,645,888)	(2,502,647)
Net property and equipment	1,786,746us-gaap_PropertyPlantAndEquipmentNet	1,913,956us-gaap_PropertyPlantAndEquipmentNet
OTHER ASSETS:
Premium advances, net of allowance of $5,080,077 and $4,661,953 respectively	7,300,062us-gaap_AccountsReceivableNetNoncurrent	7,043,680us-gaap_AccountsReceivableNetNoncurrent
Long term portion of investments in policies	130,811us-gaap_OtherLongTermInvestments	1,165,941us-gaap_OtherLongTermInvestments
Investment in life settlements trust	0	6,648,478
Artifacts and other	834,700us-gaap_OtherAssetsNoncurrent	837,850us-gaap_OtherAssetsNoncurrent
Deferred income tax asset	4,023,775us-gaap_DeferredTaxAssetsNetNoncurrent	3,442,293us-gaap_DeferredTaxAssetsNetNoncurrent
Total other assets	12,289,348us-gaap_OtherAssets	19,138,242us-gaap_OtherAssets
Total assets	20,315,796us-gaap_Assets	29,470,595us-gaap_Assets
CURRENT LIABILITIES:
Accounts payable	1,571,060us-gaap_AccountsPayableCurrent	908,963us-gaap_AccountsPayableCurrent
Accrued liabilities	473,318us-gaap_AccruedLiabilitiesCurrent	353,604us-gaap_AccruedLiabilitiesCurrent
Dividends payable	4,297us-gaap_DividendsPayableCurrent	936,788us-gaap_DividendsPayableCurrent
Current portion of note payable	237,518us-gaap_NotesPayableCurrent	0us-gaap_NotesPayableCurrent
Accrued settlement expense	45,499	45,499
Deferred policy monitoring costs - current	708,405us-gaap_DeferredRevenueCurrent	638,373us-gaap_DeferredRevenueCurrent
Total current liabilities	3,040,097us-gaap_LiabilitiesCurrent	2,883,227us-gaap_LiabilitiesCurrent
LONG-TERM LIABILITIES:
Long-term portion of deferred policy monitoring costs	4,319,110us-gaap_DeferredRevenueNoncurrent	3,892,130us-gaap_DeferredRevenueNoncurrent
Income taxes payable	52,028us-gaap_AccruedIncomeTaxesNoncurrent	56,726us-gaap_AccruedIncomeTaxesNoncurrent
Total long-term liabilities	4,371,138us-gaap_LiabilitiesNoncurrent	3,948,856us-gaap_LiabilitiesNoncurrent
Total liabilities	7,411,235us-gaap_Liabilities	6,832,083us-gaap_Liabilities
SHAREHOLDERS' EQUITY:
Common stock, $0.01 par value 18,750,000 shares authorized; 18,750,000 shares issued and 18,647,468 outstanding	187,500us-gaap_CommonStockValue	187,500us-gaap_CommonStockValue
Additional paid-in capital	11,423,054	11,423,054
Retained earnings	1,679,071	11,413,022
Less: treasury stock - 102,532 shares as of November 30 and February 28, 2014	(385,064)us-gaap_TreasuryStockValue	(385,064)us-gaap_TreasuryStockValue
Total shareholders' equity	12,904,561us-gaap_StockholdersEquity	22,638,512us-gaap_StockholdersEquity
Total liabilities and shareholders' equity	$ 20,315,796	$ 29,470,595