Attached files
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8-K - FORM 8-K - Black Knight InfoServ, LLC | g24114e8vk.htm |
EX-99.2 - EX-99.2 - Black Knight InfoServ, LLC | g24114exv99w2.htm |
Exhibit 99.1
Press Release |
Investors:
|
Media: | |
Parag Bhansali
|
Michelle Kersch | |
(904) 854-8640
|
(904) 854-5043 |
Lender Processing Services, Inc. Reports Strong Second Quarter Earnings
Year-over-year operating income increases 3.3%
Year-over-year adjusted EPS increases 7.2% to 89 cents per diluted share
Year-over-year operating income increases 3.3%
Year-over-year adjusted EPS increases 7.2% to 89 cents per diluted share
JACKSONVILLE, Fla. July 22, 2010 Lender Processing Services, Inc. (NYSE:LPS), a
leading provider of integrated technology and services to the mortgage and real estate industries,
today reported consolidated revenues of $599.1 million for the second quarter of 2010, a decrease
of 2.3% compared to the second quarter of 2009; however, net earnings of $80.4 million or 85 cents
per diluted share in the second quarter of 2010 increased from $75.2 million or 78 cents per
diluted share in the prior year quarter.
Adjusted net earnings for the second quarter of 2010 were $84.0 million, or 89 cents per
diluted share, compared to $79.8 million, or 83 cents per diluted share in the second quarter of
2009. Adjusted net earnings in the current quarter include an adjustment for purchase price
amortization of 4 cents per diluted share while the prior year quarter included a similar
adjustment of 5 cents per diluted share.
LPS had a strong quarter despite very difficult conditions in both the origination and
default markets and a sustained challenging macro-economic environment. LPS, with its
comprehensive end-to-end solutions for the mortgage and real estate industries, remains well
positioned for a solid 2010 and to continue to grow profitably in 2011 and beyond, said Lee A.
Kennedy, Executive Chairman of LPS. Our Mortgage Processing business delivered another strong
quarter and while our Loan Facilitation and Default Services businesses were both impacted by
sluggish industry trends, we continued to expand market share in both areas, added Jeff Carbiener,
President and CEO of LPS.
Operating income of $148.4 million in the quarter increased from $143.7 million in the second
quarter of 2009 and operating margins improved by 140 basis points to 24.8%.
Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring
expenses and additions to property, equipment and computer software) for the first half of 2010 was
$149.5 million compared to $160.2 million in the first half of 2009 primarily due to higher capital
expenditures as well as from timing differences in our working capital components.
Technology, Data and Analytics (TD&A)
Revenues for the segment were $185.2 million compared to $171.9 million in the second quarter
of 2009 while operating income of $64.8 million compared to $55.1 million in the prior year period.
Mortgage Processing revenues of $102.4 million were 14.3% above the second quarter of 2009
primarily due to higher activity-based fees as well as professional services and license revenues.
Other TD&A revenues of $82.9 million compared to $82.3 million in the same period last year.
Overall operating income for TD&A grew 17.6% primarily due to higher contributions from Mortgage
Processing somewhat offset by lower contributions from our Desktop business due to investments in
key implementations for top-tier financial institutions and also from our Data & Analytics
businesses.
Loan Transaction Services (LTS)
Revenues for the segment were $415.5 million compared to $448.0 million in the second quarter
of 2009 and operating income of $101.6 million compared to $109.6 million in the prior year
quarter. While Loan Facilitation Services revenues of $140.5 million declined 5.4% year-over-year,
they compared favorably to the Mortgage Bankers Associations (MBA) estimate of overall
originations being lower by 20% year-over-year. This positive variance was primarily due to market
share gains in our settlement services and appraisal offerings. Default Services revenues of $275.0
million declined 8.2% compared to the second quarter of 2009, due to a
decline in industry foreclosure starts of 16.0% for the same period, per LPSs Mortgage Monitor
report, which were driven by a broader industry slowdown. Overall operating income for LTS was
lower mainly due to lower contributions from Default Services partly offset by higher income in
Loan Facilitation services.
Corporate and Other
Net corporate expenses in the second quarter of 2010 were $18.0 million compared to $21.0
million in the prior year quarter primarily due to lower incentive compensation costs.
The company noted that it had repurchased 1.6 million shares for $57.4 million in the second
quarter. Following these purchases, $68.8 million remained available under the previous
authorization. Also, the company announced that its Board of Directors had authorized a new share
repurchase program of $150 million for a one year period that replaced the previous authorization.
Outlook
Second quarter and first half 2010 results were solid given the challenges in our specific
markets and the broader economic environment. LPS with its market-leading presence remains well
positioned to grow revenue and earnings in the second half of 2010 as well as in 2011, said Jeff
Carbiener. Based on trends in the first half of 2010 and the outlook for the remainder of the year
for the origination and default markets, we now expect full year 2010 revenues to grow 3%-6%
compared to 2009. Also, we continue to expect full year 2010 adjusted earnings to be in the
$3.49-$3.56 per diluted share range with third quarter adjusted earnings in the 88-90 cents per
diluted share range.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard
framework of guidelines for financial accounting. GAAP includes the standards,
conventions, and rules accountants follow in recording and summarizing transactions, and in
the preparation of financial statements. In addition to reporting financial results in accordance
with GAAP, LPS reports several non-GAAP measures, including adjusted net earnings (GAAP net
earnings adjusted for the impact of certain non-recurring adjustments, if applicable, plus the
after-tax purchase price amortization of intangible assets added through acquisitions), adjusted
net earnings per diluted share (adjusted net earnings divided by diluted weighted average shares),
and adjusted free cash flow (net cash provided by operating activities less additions to
property, equipment and computer software, as well as non-recurring adjustments, if applicable).
LPS provides these measures because it believes that they are helpful to investors in comparing
year-over-year performance in light of certain non-recurring charges, and to better understand our
financial performance, competitive position and future prospects. Non-GAAP measures should be
considered in conjunction with the GAAP financial presentation and should not be considered in
isolation or as a substitute for GAAP net earnings. A reconciliation of these non-GAAP measures to
related GAAP measures is included in the attachments to this release.
Conference Call and Webcast
LPS will host a conference call to discuss these results on Friday, July 23, 2010, at 8:00
a.m. EDT. Interested parties are invited to listen to the live webcast by logging on to the
Investor Relations section at www.lpsvcs.com. Supplemental materials will be available on the
website. Those wishing to participate via the conference call may do so by calling
866-823-5035. A replay of the webcast will be available on the website shortly after the call
where it will be archived for one month. A replay of the conference call will be available through
July 30, 2010 by dialing 888-203-1112 (access code: 7113478).
To access a printer friendly version of this release and accompanying exhibits, go to
http://www.lpsvcs.com/investor.
About Lender Processing Services
Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology and
services to the mortgage and real estate industries. LPS offers solutions that span the
mortgage continuum, including lead generation, origination, workflow automation (Desktop),
servicing, portfolio retention and default, augmented by the companys award-winning customer
support and professional services. Approximately 50 percent of all U.S. mortgages by dollar
volume are serviced using LPSs Mortgage Servicing Package (MSP). LPS also offers proprietary
mortgage and real estate data and analytics for the mortgage and capital markets industries.
For more information about LPS, visit www.lpsvcs.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and
uncertainties. Those forward-looking statements include all statements that are not historical
facts, including statements about our beliefs and expectations. Forward-looking statements are
based on managements beliefs, as well as assumptions made by and information currently available
to management. Because such statements are based on expectations as to future economic performance
and are not statements of historical fact, actual results may differ materially from those
projected. We undertake no obligation to update any forward-looking statements, whether as a result
of new information, future events or otherwise. The risks and uncertainties to which
forward-looking statements are subject include, but are not limited to:
our ability to adapt our services to changes in technology or the marketplace; the impact of
adverse changes in the level of real estate activity on demand for certain of our services; our
ability to maintain and grow our relationships with our customers; the effects of our substantial
leverage on our ability to make acquisitions and invest in our business; changes to the laws, rules
and regulations that regulate our businesses as a result of the current economic and financial
environment; changes in general economic, business and political conditions, including changes in
the financial markets; the impact of any potential defects, development delays, installation
difficulties or system failures on our business and reputation; risks associated with protecting
information security and privacy; and other risks and uncertainties detailed in the Statement
Regarding Forward-Looking Information, Risk Factors and other sections of the Companys Form
10-K, the Companys subsequent reports on Form 10-Q and other filings with the Securities and
Exchange Commission.
###
Exhibit A
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(Unaudited)
Consolidated Statements of Earnings
(Unaudited)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Processing and services revenues |
$ | 599,081 | $ | 613,171 | $ | 1,191,475 | $ | 1,142,988 | ||||||||
Cost of revenues |
390,847 | 404,014 | 786,869 | 758,716 | ||||||||||||
Gross profit |
208,234 | 209,157 | 404,606 | 384,272 | ||||||||||||
Selling, general and administrative expenses |
59,815 | 65,431 | 120,535 | 136,609 | ||||||||||||
Operating income |
148,419 | 143,726 | 284,071 | 247,663 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
300 | 442 | 923 | 966 | ||||||||||||
Interest expense |
(18,615 | ) | (21,625 | ) | (37,460 | ) | (43,539 | ) | ||||||||
Other expense, net |
119 | (13 | ) | 123 | (14 | ) | ||||||||||
Total other income (expense) |
(18,196 | ) | (21,196 | ) | (36,414 | ) | (42,587 | ) | ||||||||
Earnings from continuing operations before income taxes and
equity in losses of unconsolidated entity |
130,223 | 122,530 | 247,657 | 205,076 | ||||||||||||
Provision for income taxes |
49,810 | 46,866 | 94,728 | 78,441 | ||||||||||||
Earnings from continuing operations before equity in losses
of unconsolidated entity |
80,413 | 75,664 | 152,929 | 126,635 | ||||||||||||
Equity in losses of unconsolidated entity |
| | | (37 | ) | |||||||||||
Earnings from continuing operations |
80,413 | 75,664 | 152,929 | 126,598 | ||||||||||||
Discontinued operation, net of tax |
| | | (504 | ) | |||||||||||
Net earnings |
80,413 | 75,664 | 152,929 | 126,094 | ||||||||||||
Noncontrolling minority interest |
| (424 | ) | | (808 | ) | ||||||||||
Net earnings attributable to Lender Processing Services, Inc. |
$ | 80,413 | $ | 75,240 | $ | 152,929 | $ | 125,286 | ||||||||
Net earnings per share diluted from continuing operations |
$ | 0.85 | $ | 0.78 | $ | 1.60 | $ | 1.31 | ||||||||
Net earnings per share diluted from discontinued operation |
| | | | ||||||||||||
Net earnings per share diluted |
$ | 0.85 | $ | 0.78 | $ | 1.60 | $ | 1.31 | ||||||||
Weighted average shares outstanding diluted |
94,910 | 96,133 | 95,660 | 95,709 | ||||||||||||
Exhibit B
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
Consolidated Balance Sheets
(Unaudited)
June 30, 2010 | December 31, 2009 | ||||||||
(In thousands) | |||||||||
Assets | |||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ | 108,593 | $ | 70,528 | |||||
Trade receivables, net of allowance for doubtful accounts |
383,821 | 401,333 | |||||||
Other receivables |
3,932 | 3,770 | |||||||
Prepaid expenses and other current assets |
35,146 | 26,985 | |||||||
Deferred income taxes |
44,377 | 47,528 | |||||||
Total current assets |
575,869 | 550,144 | |||||||
Property and equipment, net of accumulated depreciation |
122,230 | 113,108 | |||||||
Computer software, net of accumulated amortization |
202,646 | 185,376 | |||||||
Other intangible assets, net of accumulated amortization |
60,841 | 72,796 | |||||||
Goodwill |
1,166,142 | 1,166,142 | |||||||
Other non-current assets |
107,448 | 109,738 | |||||||
Total assets |
$ | 2,235,176 | $ | 2,197,304 | |||||
Liabilities and Equity | |||||||||
Current liabilities: |
|||||||||
Current portion of long-term debt |
$ | 110,100 | $ | 40,100 | |||||
Trade accounts payable |
46,194 | 38,166 | |||||||
Accrued salaries and benefits |
34,854 | 54,376 | |||||||
Recording and transfer tax liabilities |
14,038 | 15,208 | |||||||
Due to affiliates |
| 3,321 | |||||||
Other accrued liabilities |
149,108 | 151,601 | |||||||
Deferred revenues |
52,849 | 66,602 | |||||||
Total current liabilities |
407,143 | 369,374 | |||||||
Deferred revenues |
36,404 | 37,681 | |||||||
Deferred income taxes, net |
73,695 | 65,215 | |||||||
Long-term debt, net of current portion |
1,176,700 | 1,249,250 | |||||||
Other non-current liabilities |
19,818 | 19,926 | |||||||
Total liabilities |
1,713,760 | 1,741,446 | |||||||
Equity: |
|||||||||
Preferred stock $0.0001 par value; 50 million shares authorized, none
issued at June 30, 2010 or December 31, 2009, respectively |
| | |||||||
Common stock $0.0001 par value; 500 million shares authorized, 97.8 million and 97.0 million shares
issued at June 30, 2010 and December 31, 2009, respectively |
10 | 10 | |||||||
Additional paid-in capital |
199,769 | 173,424 | |||||||
Retained earnings |
464,936 | 330,963 | |||||||
Accumulated other comprehensive loss |
(2,928 | ) | (7,630 | ) | |||||
Treasury stock $0.0001 par value; 3.9 million and 1.2 million shares at
June 30, 2010 and December 31, 2009, respectively |
(140,371 | ) | (40,909 | ) | |||||
Total equity |
521,416 | 455,858 | |||||||
Total liabilities and equity |
$ | 2,235,176 | $ | 2,197,304 | |||||
Exhibit C
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended June 30, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net earnings attributable to Lender Processing Services, Inc. |
$ | 152,929 | $ | 125,286 | ||||
Adjustments to reconcile net earnings to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
47,294 | 47,579 | ||||||
Amortization of debt issuance costs |
2,317 | 2,645 | ||||||
Gain on sale of discontinued operation |
| (2,574 | ) | |||||
Deferred income taxes, net |
9,023 | (651 | ) | |||||
Stock-based compensation cost |
13,837 | 13,302 | ||||||
Tax benefit associated with equity compensation |
162 | (1,356 | ) | |||||
Equity in losses of unconsolidated entity |
| 37 | ||||||
Noncontrolling minority interest |
| 808 | ||||||
Changes in assets and liabilities, net of effects of acquisitions: |
||||||||
Trade receivables |
17,512 | (76,919 | ) | |||||
Other receivables |
(162 | ) | 10,264 | |||||
Prepaid expenses and other assets |
(13,699 | ) | (11,599 | ) | ||||
Deferred revenues |
(15,031 | ) | (158 | ) | ||||
Accounts payable and other liabilities |
(7,513 | ) | 97,606 | |||||
Net cash provided by operating activities |
206,669 | 204,270 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property and equipment |
(23,371 | ) | (23,201 | ) | ||||
Additions to capitalized software |
(33,795 | ) | (25,206 | ) | ||||
Acquisition of title plants |
| (9,395 | ) | |||||
Acquisitions, net of cash acquired |
| (16,403 | ) | |||||
Proceeds from sale of discontinued operation, net of cash distributed |
| (32,638 | ) | |||||
Net cash used in investing activities |
(57,166 | ) | (106,843 | ) | ||||
Cash flows from financing activities: |
||||||||
Debt service payments |
(2,550 | ) | (143,481 | ) | ||||
Stock options exercised |
10,906 | 109 | ||||||
Tax benefit associated with equity compensation |
(162 | ) | 1,356 | |||||
Cash dividends paid |
(18,956 | ) | (19,134 | ) | ||||
Treasury stock purchases |
(97,698 | ) | | |||||
Contingent payments related to acquisitions |
(2,978 | ) | | |||||
Net cash used in financing activities |
(111,438 | ) | (161,150 | ) | ||||
Net increase (decrease) in cash and cash equivalents |
38,065 | (63,723 | ) | |||||
Cash and cash equivalents, beginning of period |
70,528 | 125,966 | ||||||
Cash and cash equivalents, end of period |
$ | 108,593 | $ | 62,243 | ||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest |
$ | 36,558 | $ | 41,828 | ||||
Cash paid for taxes |
$ | 71,332 | $ | 47,862 | ||||
Non-cash redistribution of assets to FIS |
$ | | $ | 434 | ||||
Non-cash consideration received from sale of discontinued operation |
$ | | $ | 40,310 | ||||
Non-cash consideration issued in acquisition of business |
$ | | $ | (5,162 | ) | |||
Exhibit D
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION UNAUDITED
(In thousands)
SUPPLEMENTAL FINANCIAL INFORMATION UNAUDITED
(In thousands)
Six months ended June 30, | ||||||||||||||||||||||||||||||||
2010 | 2009 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | |||||||||||||||||||||||||
1. Revenues Continuing Operations |
||||||||||||||||||||||||||||||||
Technology, Data and Analytics (TD&A): |
||||||||||||||||||||||||||||||||
Mortgage Processing |
$ | 199,990 | $ | 180,717 | $ | 102,356 | $ | 97,634 | $ | 104,184 | $ | 102,973 | $ | 89,567 | $ | 91,150 | ||||||||||||||||
Other TD&A |
164,680 | 151,051 | 82,852 | 81,828 | 85,247 | 83,313 | 82,322 | 68,729 | ||||||||||||||||||||||||
Total |
364,670 | 331,768 | 185,208 | 179,462 | 189,431 | 186,286 | 171,889 | 159,879 | ||||||||||||||||||||||||
Loan Transaction Services: |
||||||||||||||||||||||||||||||||
Loan Facilitation Services |
287,085 | 267,724 | 140,471 | 146,614 | 142,919 | 136,657 | 148,510 | 119,214 | ||||||||||||||||||||||||
Default Services |
543,717 | 554,843 | 275,046 | 268,671 | 278,647 | 303,823 | 299,534 | 255,309 | ||||||||||||||||||||||||
Total |
830,802 | 822,567 | 415,517 | 415,285 | 421,566 | 440,480 | 448,044 | 374,523 | ||||||||||||||||||||||||
Corporate and Other |
(3,997 | ) | (11,347 | ) | (1,644 | ) | (2,353 | ) | (2,864 | ) | (7,339 | ) | (6,762 | ) | (4,585 | ) | ||||||||||||||||
Total Revenue |
$ | 1,191,475 | $ | 1,142,988 | $ | 599,081 | $ | 592,394 | $ | 608,133 | $ | 619,427 | $ | 613,171 | $ | 529,817 | ||||||||||||||||
Revenue Growth from Prior Year Period |
||||||||||||||||||||||||||||||||
Technology, Data and Analytics: |
||||||||||||||||||||||||||||||||
Mortgage Processing |
10.7 | % | 11.4 | % | 14.3 | % | 7.1 | % | 17.9 | % | 23.2 | % | 9.1 | % | 13.7 | % | ||||||||||||||||
Other TD&A |
9.0 | % | 31.0 | % | 0.6 | % | 19.1 | % | 40.3 | % | 50.5 | % | 37.9 | % | 23.5 | % | ||||||||||||||||
Total |
9.9 | % | 19.5 | % | 7.7 | % | 12.2 | % | 27.0 | % | 34.1 | % | 21.3 | % | 17.7 | % | ||||||||||||||||
Loan Transaction Services: |
||||||||||||||||||||||||||||||||
Loan Facilitation Services |
7.2 | % | 2.9 | % | -5.4 | % | 23.0 | % | 70.3 | % | 55.9 | % | 25.8 | % | -16.1 | % | ||||||||||||||||
Default Services |
-2.0 | % | 51.5 | % | -8.2 | % | 5.2 | % | 14.3 | % | 25.6 | % | 51.9 | % | 51.0 | % | ||||||||||||||||
Total |
1.0 | % | 31.3 | % | -7.3 | % | 10.9 | % | 28.7 | % | 33.7 | % | 42.1 | % | 20.4 | % | ||||||||||||||||
Corporate and Other |
n/m | n/m | n/m | n/m | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||
Total Revenue |
4.2 | % | 27.4 | % | -2.3 | % | 11.8 | % | 28.3 | % | 32.7 | % | 35.3 | % | 19.4 | % | ||||||||||||||||
2. Depreciation and Amortization Continuing Operations |
||||||||||||||||||||||||||||||||
Depreciation and Amortization |
$ | 30,773 | $ | 29,505 | $ | 15,780 | $ | 14,993 | $ | 15,932 | $ | 15,894 | $ | 15,431 | $ | 14,074 | ||||||||||||||||
Purchase Price Amortization |
12,602 | 15,487 | 5,884 | 6,718 | 7,654 | 7,608 | 7,404 | 8,083 | ||||||||||||||||||||||||
Other Amortization |
3,919 | 2,582 | 1,976 | 1,943 | 1,713 | 1,542 | 753 | 1,829 | ||||||||||||||||||||||||
Total Depreciation and Amortization |
$ | 47,294 | $ | 47,574 | $ | 23,640 | $ | 23,654 | $ | 25,299 | $ | 25,044 | $ | 23,588 | $ | 23,986 | ||||||||||||||||
3. Stock Compensation Expense |
||||||||||||||||||||||||||||||||
Stock Compensation Expense, Excluding Acceleration Charges |
$ | 13,837 | $ | 12,503 | $ | 7,280 | $ | 6,557 | $ | 7,678 | $ | 7,062 | $ | 6,459 | $ | 6,044 | ||||||||||||||||
Stock Acceleration Expense |
| 799 | | | | | | 799 | ||||||||||||||||||||||||
Total Stock Compensation Expense |
$ | 13,837 | $ | 13,302 | $ | 7,280 | $ | 6,557 | $ | 7,678 | $ | 7,062 | $ | 6,459 | $ | 6,843 | ||||||||||||||||
Exhibit E
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In thousands, except per share data)
NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In thousands, except per share data)
Six months ended June 30, | ||||||||||||||||||||||||||||||||
2010 | 2009 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | |||||||||||||||||||||||||
1. EBIT Continuing Operations |
||||||||||||||||||||||||||||||||
Consolidated |
||||||||||||||||||||||||||||||||
Revenue |
$ | 1,191,475 | $ | 1,142,988 | $ | 599,081 | $ | 592,394 | $ | 608,133 | $ | 619,427 | $ | 613,171 | $ | 529,817 | ||||||||||||||||
Cost of Sales |
786,869 | 758,716 | 390,847 | 396,022 | 403,174 | 409,113 | 404,014 | 354,702 | ||||||||||||||||||||||||
Selling, General and Administrative Expenses |
120,535 | 136,609 | 59,815 | 60,720 | 64,059 | 66,671 | 65,431 | 71,178 | ||||||||||||||||||||||||
Operating Income |
284,071 | 247,663 | 148,419 | 135,652 | 140,900 | 143,643 | 143,726 | 103,937 | ||||||||||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs |
| 8,186 | | | | | | 8,186 | ||||||||||||||||||||||||
Acceleration of Performance-Based Shares |
| 799 | | | | | | 799 | ||||||||||||||||||||||||
EBIT, as adjusted |
$ | 284,071 | $ | 256,648 | $ | 148,419 | $ | 135,652 | $ | 140,900 | $ | 143,643 | $ | 143,726 | $ | 112,922 | ||||||||||||||||
EBIT Margin, as adjusted |
23.8 | % | 22.5 | % | 24.8 | % | 22.9 | % | 23.2 | % | 23.2 | % | 23.4 | % | 21.3 | % | ||||||||||||||||
Depreciation and Amortization |
$ | 47,294 | $ | 47,574 | $ | 23,640 | $ | 23,654 | $ | 25,299 | $ | 25,044 | $ | 23,588 | $ | 23,986 | ||||||||||||||||
Technology, Data and Analytics |
||||||||||||||||||||||||||||||||
Revenue |
$ | 364,670 | $ | 331,768 | $ | 185,208 | $ | 179,462 | $ | 189,431 | $ | 186,286 | $ | 171,889 | $ | 159,879 | ||||||||||||||||
Cost of Sales |
206,112 | 189,392 | 100,317 | 105,795 | 107,368 | 105,651 | 98,929 | 90,463 | ||||||||||||||||||||||||
Selling, General and Administrative Expenses |
39,877 | 33,890 | 20,066 | 19,811 | 18,571 | 18,256 | 17,824 | 16,066 | ||||||||||||||||||||||||
Operating Income |
118,681 | 108,486 | 64,825 | 53,856 | 63,492 | 62,379 | 55,136 | 53,350 | ||||||||||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs |
| | | | | | | | ||||||||||||||||||||||||
Acceleration of Performance-Based Shares |
| | | | | | | | ||||||||||||||||||||||||
EBIT, as adjusted |
$ | 118,681 | $ | 108,486 | $ | 64,825 | $ | 53,856 | $ | 63,492 | $ | 62,379 | $ | 55,136 | $ | 53,350 | ||||||||||||||||
EBIT Margin, as adjusted |
32.5 | % | 32.7 | % | 35.0 | % | 30.0 | % | 33.5 | % | 33.5 | % | 32.1 | % | 33.4 | % | ||||||||||||||||
Depreciation and Amortization |
$ | 32,585 | $ | 33,816 | $ | 16,047 | $ | 16,538 | $ | 18,066 | $ | 17,595 | $ | 16,441 | $ | 17,375 | ||||||||||||||||
Loan Transaction Services |
||||||||||||||||||||||||||||||||
Revenue |
$ | 830,802 | $ | 822,567 | $ | 415,517 | $ | 415,285 | $ | 421,566 | $ | 440,480 | $ | 448,044 | $ | 374,523 | ||||||||||||||||
Cost of Sales |
584,716 | 580,285 | 292,107 | 292,609 | 298,723 | 311,230 | 311,349 | 268,936 | ||||||||||||||||||||||||
Selling, General and Administrative Expenses |
45,655 | 54,423 | 21,798 | 23,857 | 25,681 | 27,665 | 27,064 | 27,359 | ||||||||||||||||||||||||
Operating Income |
200,431 | 187,859 | 101,612 | 98,819 | 97,162 | 101,585 | 109,631 | 78,228 | ||||||||||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs |
| | | | | | | | ||||||||||||||||||||||||
Acceleration of Performance-Based Shares |
| | | | | | | | ||||||||||||||||||||||||
EBIT, as adjusted |
$ | 200,431 | $ | 187,859 | $ | 101,612 | $ | 98,819 | $ | 97,162 | $ | 101,585 | $ | 109,631 | $ | 78,228 | ||||||||||||||||
EBIT Margin, as adjusted |
24.1 | % | 22.8 | % | 24.5 | % | 23.8 | % | 23.0 | % | 23.1 | % | 24.5 | % | 20.9 | % | ||||||||||||||||
Depreciation and Amortization |
$ | 10,935 | $ | 9,734 | $ | 5,749 | $ | 5,186 | $ | 5,281 | $ | 5,295 | $ | 5,126 | $ | 4,608 | ||||||||||||||||
Corporate and Other |
||||||||||||||||||||||||||||||||
Revenue |
$ | (3,997 | ) | $ | (11,347 | ) | $ | (1,644 | ) | $ | (2,353 | ) | $ | (2,864 | ) | $ | (7,339 | ) | $ | (6,762 | ) | $ | (4,585 | ) | ||||||||
Cost of Sales |
(3,959 | ) | (10,961 | ) | (1,577 | ) | (2,382 | ) | (2,917 | ) | (7,768 | ) | (6,264 | ) | (4,697 | ) | ||||||||||||||||
Selling, General and Administrative Expenses |
35,003 | 48,296 | 17,951 | 17,052 | 19,807 | 20,750 | 20,543 | 27,753 | ||||||||||||||||||||||||
Operating Income |
(35,041 | ) | (48,682 | ) | (18,018 | ) | (17,023 | ) | (19,754 | ) | (20,321 | ) | (21,041 | ) | (27,641 | ) | ||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs |
| 8,186 | | | | | | 8,186 | ||||||||||||||||||||||||
Acceleration of Performance-Based Shares |
| 799 | | | | | | 799 | ||||||||||||||||||||||||
EBIT, as adjusted |
$ | (35,041 | ) | $ | (39,697 | ) | $ | (18,018 | ) | $ | (17,023 | ) | $ | (19,754 | ) | $ | (20,321 | ) | $ | (21,041 | ) | $ | (18,656 | ) | ||||||||
Depreciation and Amortization |
$ | 3,774 | $ | 4,024 | $ | 1,844 | $ | 1,930 | $ | 1,952 | $ | 2,154 | $ | 2,021 | $ | 2,003 | ||||||||||||||||
2. Net Earnings Reconciliation |
||||||||||||||||||||||||||||||||
Net Earnings |
$ | 152,929 | 125,286 | $ | 80,413 | $ | 72,516 | $ | 74,901 | $ | 75,542 | $ | 75,240 | $ | 50,046 | |||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs, net of tax |
| 5,055 | | | | | | 5,055 | ||||||||||||||||||||||||
Acceleration of Performance-Based Shares, net of tax |
| 493 | | | | | | 493 | ||||||||||||||||||||||||
Net Earnings, as adjusted |
152,929 | 130,834 | 80,413 | 72,516 | 74,901 | 75,542 | 75,240 | 55,594 | ||||||||||||||||||||||||
Purchase Price Amortization, net of tax (1) |
7,781 | 9,563 | 3,633 | 4,148 | 4,726 | 4,698 | 4,572 | 4,991 | ||||||||||||||||||||||||
Adjusted Net Earnings |
$ | 160,710 | $ | 140,397 | $ | 84,046 | $ | 76,664 | $ | 79,627 | $ | 80,240 | $ | 79,812 | $ | 60,585 | ||||||||||||||||
Adjusted Net Earnings Per Diluted Share |
$ | 1.69 | $ | 1.47 | $ | 0.89 | $ | 0.80 | $ | 0.82 | $ | 0.83 | $ | 0.83 | $ | 0.64 | ||||||||||||||||
Diluted Weighted Average Shares |
95,660 | 95,709 | 94,910 | 96,416 | 96,781 | 96,399 | 96,133 | 95,284 | ||||||||||||||||||||||||
3. Cashflow Reconciliation |
||||||||||||||||||||||||||||||||
Cash Flows from Operating Activities: |
||||||||||||||||||||||||||||||||
Net Earnings |
$ | 152,929 | $ | 125,286 | $ | 80,413 | $ | 72,516 | $ | 74,901 | $ | 75,542 | $ | 75,240 | $ | 50,046 | ||||||||||||||||
Less Non-recurring Charges: |
||||||||||||||||||||||||||||||||
Restructuring Costs, net of tax |
| 4,304 | | | | | | 4,304 | ||||||||||||||||||||||||
Net Earnings, as adjusted |
152,929 | 129,590 | 80,413 | 72,516 | 74,901 | 75,542 | 75,240 | 54,350 | ||||||||||||||||||||||||
Adjustments to reconcile net earnings to
net cash provided by operating activities: |
||||||||||||||||||||||||||||||||
Non-cash adjustments |
72,633 | 59,790 | 34,591 | 38,042 | 60,281 | 32,279 | 31,700 | 28,090 | ||||||||||||||||||||||||
Working capital adjustments |
(18,893 | ) | 19,194 | (17,375 | ) | (1,518 | ) | 13,369 | (16,954 | ) | 21,957 | (2,763 | ) | |||||||||||||||||||
Net cash provided by operating activities |
206,669 | 208,574 | 97,629 | 109,040 | 148,551 | 90,867 | 128,897 | 79,677 | ||||||||||||||||||||||||
Capital expenditures included in investing
activities |
(57,166 | ) | (48,407 | ) | (29,122 | ) | (28,044 | ) | (30,913 | ) | (19,455 | ) | (25,836 | ) | (22,571 | ) | ||||||||||||||||
Adjusted Net Free Cash Flow |
$ | 149,503 | $ | 160,167 | $ | 68,507 | $ | 80,996 | $ | 117,638 | $ | 71,412 | $ | 103,061 | $ | 57,106 | ||||||||||||||||
Notes: | ||
(1) | Purchase price amortization, net of tax represents the periodic amortization of intangible assets acquired through business acquisitions primarily relating to customer lists, trademarks and non-compete agreements. |