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8-K - FORM 8-K - Black Knight InfoServ, LLCg25982e8vk.htm
EX-99.2 - EX-99.2 - Black Knight InfoServ, LLCg25982exv99w2.htm
Exhibit 99.1
     
(LPS LOGO)
  Press Release
     
Investors:   Media:
 
Parag Bhansali
  Michelle Kersch
(904) 854-8640
  (904) 854-5043
Lender Processing Services, Inc. Reports Strong Fourth Quarter 2010 Earnings
Year-over-year revenues increase 5.0%
Year-over-year adjusted EPS increases 12.2% to 92 cents per diluted share
     JACKSONVILLE, Fla. — February 3, 2011 — 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 $638.8 million for the fourth quarter of 2010, an increase of 5.0% compared to the fourth quarter of 2009, while net earnings of $70.7 million or 78 cents per diluted share in the fourth quarter of 2010 compared to $74.9 million or 77 cents per diluted share in the prior year quarter.
     Adjusted net earnings for the fourth quarter of 2010 were $83.5 million, or 92 cents per diluted share, compared to $79.6 million, or 82 cents per diluted share in the fourth quarter of 2009, and, were higher primarily due to reduced interest expense and a lower share count. Adjusted net earnings in the current quarter include an adjustment for purchase price amortization of 4 cents per diluted share and exclude charges of 7 cents per diluted share for a non-recurring accrual adjustment in our Loan Transaction Services segment (relating to 2007 and 2008) and 3 cents per diluted share relating to costs associated with the departure of our former CFO, while the prior year quarter included an adjustment for purchase price amortization of 5 cents per diluted share.

 


 

     “LPS had a strong fourth quarter despite challenging conditions in the origination and default markets and a difficult macro-economic environment. LPS, with its market leading presence and its broad-based technology driven solutions for the mortgage and real estate industries, remains well positioned to achieve its growth objectives in 2011 and beyond,” said Lee A. Kennedy, Executive Chairman of LPS.
     “Our Loan Facilitation business posted record growth in a difficult market while our Default Services business continued to be impacted by a sluggish market environment. Our Other TD&A segment continued to reflect strong growth due to additional market share gains. During 2010, we further strengthened our balance sheet and expanded our financial flexibility by paying down $40.1 million in debt. Also, we continued to be disciplined and aggressive in our capital deployment strategy by repurchasing 7.4 million shares during 2010,” added Jeff Carbiener, President and CEO of LPS.
     Operating income of $128.6 million in the quarter compared to $140.9 million in the fourth quarter of 2009. Adjusting for the charges noted earlier, operating income was $142.6 million in the fourth quarter of 2010.
     Full year 2010 revenues of $2.5 billion were 3.6% above 2009 while net earnings of $302.3 million in 2010 compared to $275.7 million in the prior year. Adjusted net earnings for full year 2010 of $326.4 million were a solid 8.7% higher than full year 2009.
     Net cash provided by operating activities for full year 2010 was $448.7 million compared to $443.7 million in 2009. Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) for full year 2010 was $342.0 million compared to $349.2 million for 2009 and was lower primarily due to higher capital expenditures as well as from changes in working capital.

 


 

Technology, Data and Analytics (TD&A)
     Revenues for the segment were $201.1 million compared to $189.4 million in the fourth quarter of 2009, while operating income of $60.4 million compared to $63.5 million in the prior year period. Mortgage Processing revenues of $100.3 million compared to $104.2 million in the same period last year. Other TD&A revenues of $100.7 million were 18.1% above the fourth quarter of 2009 primarily due to higher Desktop revenues as well as strong growth in our Other Software and Services offerings. Overall operating income for TD&A was lower compared to the prior year quarter primarily due to lower contributions from Mortgage Processing, somewhat offset by higher contributions from our Other Software and Services, and Desktop businesses.
Loan Transaction Services (LTS)
     Revenues for the segment were $439.7 million compared to $421.6 million in the fourth quarter of 2009, and operating income of $105.7 million, excluding the non-recurring accrual adjustment noted earlier, compared to $97.2 million in the prior year quarter. Loan Facilitation Services revenues of $188.3 million increased 31.8% compared to the fourth quarter of 2009. This result compared very favorably to the Mortgage Bankers Association’s (MBA) estimate of overall fourth quarter originations being lower by 24% compared to the same period last year and, this positive variance was primarily due to continued market share gains in our settlement services offerings. Default Services revenues of $251.3 million declined 9.8% compared to the fourth quarter of 2009 driven by continued delays in the initiation of foreclosure proceedings in the industry. Overall operating income for LTS grew 8.8% mainly due to higher income in Loan Facilitation Services partly offset by lower contributions from Default Services.
Corporate and Other
     Net corporate expenses in the fourth quarter of 2010, excluding the personnel related charge noted earlier, were $23.5 million compared to $19.8 million in the prior year quarter and were higher primarily due to higher personnel related expenses.

 


 

     The company noted that it had repurchased 2.6 million shares for $78.6 million in the fourth quarter. Following these purchases, $171.4 million remains available under the current authorization.
Outlook
     “While the broader economy and the mortgage and real estate markets in particular were challenging in 2010, overall, we had a good year. LPS continues to have a strong presence in each of its businesses and is well positioned to grow earnings per share in 2011,” said Jeff Carbiener. “Building on the strong 2010 results, we expect first quarter 2011 adjusted earnings to be in the range of 81-84 cents per diluted share. For full year 2011, we expect adjusted earnings to be in the $3.74 — $3.81 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 “EBIT, as adjusted” (GAAP operating income adjusted for the impact of certain non-recurring adjustments, if applicable), “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, February 4, 2011, at 8:00 a.m. EST. 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 February 11, 2011 by dialing 888-203-1112 (access code: 4532202).
     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 company’s award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS’s 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 management’s 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 (including among others, loan originations and foreclosures) 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; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state inquiries and examinations currently underway or that may be commenced in the future with respect to our default management operations, and with civil litigation related to these matters; 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 Company’s Form 10-K, the Company’s 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)
                                 
    Three months ended December 31,     Year ended December 31,  
    2010     2009     2010     2009  
    (In thousands, except per share data)  
 
                               
Processing and services revenues
  $ 638,820     $ 608,133     $ 2,456,335     $ 2,370,548  
Cost of revenues
    437,963       403,174       1,642,075       1,571,003  
 
                       
Gross profit
    200,857       204,959       814,260       799,545  
Selling, general and administrative expenses
    72,299       64,059       257,350       267,339  
 
                       
Operating income
    128,558       140,900       556,910       532,206  
Other income (expense):
                               
Interest income
    246       405       1,316       1,654  
Interest expense
    (16,317 )     (19,896 )     (70,850 )     (84,630 )
Other expense, net
    71       (31 )     273       (248 )
 
                       
Total other income (expense)
    (16,000 )     (19,522 )     (69,261 )     (83,224 )
 
                       
Earnings from continuing operations before income taxes and equity in losses of unconsolidated entity
    112,558       121,378       487,649       448,982  
Provision for income taxes
    41,834       46,427       185,305       171,735  
 
                       
Earnings from continuing operations before equity in losses of unconsolidated entity
    70,724       74,951       302,344       277,247  
Equity in losses of unconsolidated entity
                      (37 )
 
                       
Earnings from continuing operations
    70,724       74,951       302,344       277,210  
Discontinued operation, net of tax
                      (504 )
 
                       
Net earnings
    70,724       74,951       302,344       276,706  
Noncontrolling minority interest
          (50 )           (977 )
 
                       
Net earnings attributable to Lender Processing Services, Inc.
  $ 70,724     $ 74,901     $ 302,344     $ 275,729  
 
                       
 
                               
Net earnings per share — diluted from continuing operations
  $ 0.78     $ 0.77     $ 3.23     $ 2.87  
Net earnings per share — diluted from discontinued operation
                       
 
                       
Net earnings per share — diluted
  $ 0.78     $ 0.77     $ 3.23     $ 2.87  
 
                       
Weighted average shares outstanding — diluted
    90,296       96,781       93,559       96,152  
 
                       

 


 

Exhibit B
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
                 
    December 31,  
    2010     2009  
    (In thousands)  
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 52,287     $ 70,528  
Trade receivables, net of allowance for doubtful accounts
    419,647       401,333  
Other receivables
    4,910       3,770  
Prepaid expenses and other current assets
    38,328       26,985  
Deferred income taxes
    44,102       47,528  
 
           
Total current assets
    559,274       550,144  
 
           
 
               
Property and equipment, net of accumulated depreciation
    123,897       113,108  
Computer software, net of accumulated amortization
    217,573       185,376  
Other intangible assets, net of accumulated amortization
    58,269       72,796  
Goodwill
    1,159,539       1,166,142  
Other non-current assets
    133,291       109,738  
 
           
Total assets
  $ 2,251,843     $ 2,197,304  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Current liabilities:
               
Current portion of long-term debt
  $ 145,154     $ 40,100  
Trade accounts payable
    51,610       38,166  
Accrued salaries and benefits
    55,230       54,376  
Recording and transfer tax liabilities
    10,879       15,208  
Due to affiliates
          3,321  
Other accrued liabilities
    145,203       151,601  
Deferred revenues
    57,651       66,602  
 
           
Total current liabilities
    465,727       369,374  
 
           
 
               
Deferred revenues
    36,893       37,681  
Deferred income taxes, net
    96,732       65,215  
Long-term debt, net of current portion
    1,104,247       1,249,250  
Other non-current liabilities
    22,030       19,926  
 
           
Total liabilities
    1,725,629       1,741,446  
 
           
 
               
Stockholders’ equity:
               
Preferred stock $0.0001 par value; 50 million shares authorized, none issued at December 31, 2010 or 2009, respectively
           
Common stock $0.0001 par value; 500 million shares authorized, 97.4 million and 97.0 million shares issued at December 31, 2010 and 2009, respectively
    10       10  
Additional paid-in capital
    216,896       173,424  
Retained earnings
    596,168       330,963  
Accumulated other comprehensive loss
    (283 )     (7,630 )
Treasury stock $0.0001 par value; 8.6 million and 1.2 million shares at December 31, 2010 and 2009, respectively
    (286,577 )     (40,909 )
 
           
Total stockholders’ equity
    526,214       455,858  
 
           
Total liabilities and stockholders’ equity
  $ 2,251,843     $ 2,197,304  
 
           

 


 

Exhibit C
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
                 
    Year ended December 31,  
    2010     2009  
    (In thousands)  
Cash flows from operating activities:
               
Net earnings attributable to Lender Processing Services, Inc.
  $ 302,344     $ 275,729  
 
               
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    98,761       97,922  
Amortization of debt issuance costs
    4,716       5,404  
Gain on sale of discontinued operation
          (2,574 )
Deferred income taxes, net
    30,417       25,463  
Stock-based compensation cost
    32,077       28,042  
Income tax benefit from exercise of stock options
    (165 )     (2,921 )
Equity in losses of unconsolidated entity
          37  
Noncontrolling minority interest
          977  
Changes in assets and liabilities, net of effects of acquisitions:
               
Trade receivables
    (17,802 )     (49,602 )
Other receivables
    (1,126 )     13,637  
Prepaid expenses and other assets
    (22,859 )     (11,578 )
Deferred revenues
    (11,687 )     11,316  
Accounts payable, accrued liabilities and other liabilities
    34,018       51,836  
 
           
Net cash provided by operating activities
    448,694       443,688  
 
           
 
               
Cash flows from investing activities:
               
Additions to property and equipment
    (40,653 )     (40,890 )
Additions to capitalized software
    (67,603 )     (57,885 )
Purchases of investments, net of proceeds from sales
    (20,956 )      
Acquisition of title plants and property records data
    (4,401 )     (17,219 )
Acquisitions, net of cash acquired
    (18,823 )     (31,103 )
Proceeds from sale of discontinued operation, net of cash distributed
          (32,638 )
 
           
Net cash used in investing activities
    (152,436 )     (179,735 )
 
           
 
               
Cash flows from financing activities:
               
Debt service payments
    (40,109 )     (254,497 )
Exercise of stock options and restricted stock activity
    12,111       8,098  
Income tax benefit from exercise of stock options
    165       2,921  
Cash dividends paid
    (37,139 )     (38,306 )
Acquisition of noncontrolling minority interest
          (6,850 )
Treasury stock repurchases
    (246,549 )     (22,757 )
Bond repurchases
          (8,000 )
Payments of contingent consideration related to acquisitions
    (2,978 )      
 
           
Net cash used in financing activities
    (314,499 )     (319,391 )
Net decrease in cash and cash equivalents
    (18,241 )     (55,438 )
Cash and cash equivalents, beginning of year
    70,528       125,966  
 
           
Cash and cash equivalents, end of year
  $ 52,287     $ 70,528  
 
           
 
               
Supplemental disclosures of cash flow information:
               
Cash paid for interest
  $ 69,005     $ 81,698  
 
           
Cash paid for taxes
  $ 151,436     $ 154,595  
 
           
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)
                                                                                         
            Year ended December 31,     Quarter ended  
            2010     2009     12/31/2010     9/30/2010     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
  $ 402,693     $ 387,874     $ 100,341     $ 102,362     $ 102,356     $ 97,634     $ 104,184     $ 102,973     $ 89,567     $ 91,150  
       
Other TD&A
    359,948       319,611       100,713       94,555       82,852       81,828       85,247       83,313       82,322       68,729  
       
 
                                                           
       
Total
    762,641       707,485       201,054       196,917       185,208       179,462       189,431       186,286       171,889       159,879  
       
 
                                                           
       
 
                                                                               
       
Loan Transaction Services:
                                                                               
       
Loan Facilitation Services
    640,907       547,300       188,332       165,490       140,471       146,614       142,919       136,657       148,510       119,214  
       
Default Services
    1,060,616       1,137,313       251,327       265,572       275,046       268,671       278,647       303,823       299,534       255,309  
       
 
                                                           
       
Total
    1,701,523       1,684,613       439,659       431,062       415,517       415,285       421,566       440,480       448,044       374,523  
       
 
                                                           
       
 
                                                                               
       
Corporate and Other
    (7,829 )     (21,550 )     (1,893 )     (1,939 )     (1,644 )     (2,353 )     (2,864 )     (7,339 )     (6,762 )     (4,585 )
       
 
                                                           
       
Total Revenue
  $ 2,456,335     $ 2,370,548     $ 638,820     $ 626,040     $ 599,081     $ 592,394     $ 608,133     $ 619,427     $ 613,171     $ 529,817  
       
 
                                                           
       
 
                                                                               
       
Revenue Growth from Prior Year Period
                                                                               
       
 
                                                                               
       
Technology, Data and Analytics:
                                                                               
       
Mortgage Processing
    3.8 %     16.1 %     -3.7 %     -0.6 %     14.3 %     7.1 %     17.9 %     23.2 %     9.1 %     13.7 %
       
Other TD&A
    12.6 %     38.1 %     18.1 %     13.5 %     0.6 %     19.1 %     40.3 %     50.5 %     37.9 %     23.5 %
       
 
                                                           
       
Total
    7.8 %     25.1 %     6.1 %     5.7 %     7.7 %     12.2 %     27.0 %     34.1 %     21.3 %     17.7 %
       
 
                                                           
       
 
                                                                               
       
Loan Transaction Services:
                                                                               
       
Loan Facilitation Services
    17.1 %     26.8 %     31.8 %     21.1 %     -5.4 %     23.0 %     70.3 %     55.9 %     25.8 %     -16.1 %
       
Default Services
    -6.7 %     33.5 %     -9.8 %     -12.6 %     -8.2 %     5.2 %     14.3 %     25.6 %     51.9 %     51.0 %
       
 
                                                           
       
Total
    1.0 %     31.3 %     4.3 %     -2.1 %     -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       n/m       n/m  
       
 
                                                           
       
Total Revenue
    3.6 %     29.0 %     5.0 %     1.1 %     -2.3 %     11.8 %     28.3 %     32.7 %     35.3 %     19.4 %
       
 
                                                           
       
 
                                                                               
  2.    
Depreciation and Amortization — Continuing Operations
                                                                               
       
 
                                                                               
       
Depreciation and Amortization
  $ 66,703     $ 61,331     $ 18,788     $ 17,142     $ 15,780     $ 14,993     $ 15,932     $ 15,894     $ 15,431     $ 14,074  
       
Purchase Price Amortization
    24,781       30,749       6,469       5,710       5,884       6,718       7,654       7,608       7,404       8,083  
       
Other Amortization
    7,277       5,837       1,690       1,668       1,976       1,943       1,713       1,542       753       1,829  
       
 
                                                           
       
Total Depreciation and Amortization
  $ 98,761     $ 97,917     $ 26,947     $ 24,520     $ 23,640     $ 23,654     $ 25,299     $ 25,044     $ 23,588     $ 23,986  
       
 
                                                           
       
 
                                                                               
  3.    
Stock Compensation Expense
                                                                               
       
 
                                                                               
       
Stock Compensation Expense, Excluding Acceleration Charges
  $ 30,280     $ 27,243     $ 8,228     $ 8,215     $ 7,280     $ 6,557     $ 7,678     $ 7,062     $ 6,459     $ 6,044  
       
Stock Acceleration Expense
    1,797       799       1,797                                           799  
       
 
                                                           
       
Total Stock Compensation Expense
  $ 32,077     $ 28,042     $ 10,025     $ 8,215     $ 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)
                                                                                         
            Year ended December 31,     Quarter ended  
            2010     2009     12/31/2010     9/30/2010     6/30/2010     3/31/2010     12/31/2009     9/30/2009     6/30/2009     3/31/2009  
  1.    
EBIT — Continuing Operations
                                                                               
       
 
                                                                               
       
Consolidated
                                                                               
       
Revenue
  $ 2,456,335     $ 2,370,548     $ 638,820     $ 626,040     $ 599,081     $ 592,394     $ 608,133     $ 619,427     $ 613,171     $ 529,817  
       
Cost of Sales
    1,642,075       1,571,003       437,963       417,243       390,847       396,022       403,174       409,113       404,014       354,702  
       
Selling, General and Administrative Expenses
    257,350       267,339       72,299       64,516       59,815       60,720       64,059       66,671       65,431       71,178  
       
 
                                                           
       
Operating Income
    556,910       532,206       128,558       144,281       148,419       135,652       140,900       143,643       143,726       103,937  
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs
    2,472       8,186       2,472                                           8,186  
       
Stock Related Restructuring Costs
    1,797       799       1,797                                           799  
       
Non-recurring Accrual Adjustment
    9,800             9,800                                            
       
 
                                                           
       
EBIT, as adjusted
  $ 570,979     $ 541,191     $ 142,627     $ 144,281     $ 148,419     $ 135,652     $ 140,900     $ 143,643     $ 143,726     $ 112,922  
       
 
                                                           
       
EBIT Margin, as adjusted
    23.2 %     22.8 %     22.3 %     23.0 %     24.8 %     22.9 %     23.2 %     23.2 %     23.4 %     21.3 %
       
 
                                                           
       
Depreciation and Amortization
  $ 98,761     $ 97,917     $ 26,947     $ 24,520     $ 23,640     $ 23,654     $ 25,299     $ 25,044     $ 23,588     $ 23,986  
       
 
                                                           
       
Technology, Data and Analytics
                                                                               
       
Revenue
  $ 762,641     $ 707,485     $ 201,054     $ 196,917     $ 185,208     $ 179,462     $ 189,431     $ 186,286     $ 171,889     $ 159,879  
       
Cost of Sales
    435,138       402,411       120,605       108,421       100,317       105,795       107,368       105,651       98,929       90,463  
       
Selling, General and Administrative Expenses
    81,035       70,717       20,050       21,108       20,066       19,811       18,571       18,256       17,824       16,066  
       
 
                                                           
       
Operating Income
    246,468       234,357       60,399       67,388       64,825       53,856       63,492       62,379       55,136       53,350  
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs
                                                           
       
Stock Related Restructuring Costs
                                                           
       
Non-recurring Accrual Adjustment
                                                           
       
 
                                                           
       
EBIT, as adjusted
  $ 246,468     $ 234,357     $ 60,399     $ 67,388     $ 64,825     $ 53,856     $ 63,492     $ 62,379     $ 55,136     $ 53,350  
       
 
                                                           
       
EBIT Margin, as adjusted
    32.3 %     33.1 %     30.0 %     34.2 %     35.0 %     30.0 %     33.5 %     33.5 %     32.1 %     33.4 %
       
 
                                                           
       
Depreciation and Amortization
  $ 68,022     $ 69,477     $ 18,905     $ 16,532     $ 16,047     $ 16,538     $ 18,066     $ 17,595     $ 16,441     $ 17,375  
       
 
                                                           
       
 
                                                                               
       
Loan Transaction Services
                                                                               
       
Revenue
  $ 1,701,523     $ 1,684,613     $ 439,659     $ 431,062     $ 415,517     $ 415,285     $ 421,566     $ 440,480     $ 448,044     $ 374,523  
       
Cost of Sales
    1,212,781       1,190,238       317,285       310,780       292,107       292,609       298,723       311,230       311,349       268,936  
       
Selling, General and Administrative Expenses
    95,656       107,769       26,440       23,561       21,798       23,857       25,681       27,665       27,064       27,359  
       
 
                                                           
       
Operating Income
    393,086       386,606       95,934       96,721       101,612       98,819       97,162       101,585       109,631       78,228  
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs
                                                           
       
Stock Related Restructuring Costs
                                                           
       
Non-recurring Accrual Adjustment
    9,800             9,800                                            
       
 
                                                           
       
EBIT, as adjusted
  $ 402,886     $ 386,606     $ 105,734     $ 96,721     $ 101,612     $ 98,819     $ 97,162     $ 101,585     $ 109,631     $ 78,228  
       
 
                                                           
       
EBIT Margin, as adjusted
    23.7 %     22.9 %     24.0 %     22.4 %     24.5 %     23.8 %     23.0 %     23.1 %     24.5 %     20.9 %
       
 
                                                           
       
Depreciation and Amortization
  $ 23,313     $ 20,310     $ 6,226     $ 6,152     $ 5,749     $ 5,186     $ 5,281     $ 5,295     $ 5,126     $ 4,608  
       
 
                                                           
       
 
                                                                               
       
Corporate and Other
                                                                               
       
Revenue
  $ (7,829 )   $ (21,550 )   $ (1,893 )   $ (1,939 )   $ (1,644 )   $ (2,353 )   $ (2,864 )   $ (7,339 )   $ (6,762 )   $ (4,585 )
       
Cost of Sales
    (5,844 )     (21,646 )     73       (1,958 )     (1,577 )     (2,382 )     (2,917 )     (7,768 )     (6,264 )     (4,697 )
       
Selling, General and Administrative Expenses
    80,659       88,853       25,809       19,847       17,951       17,052       19,807       20,750       20,543       27,753  
       
 
                                                           
       
Operating Income
    (82,644 )     (88,757 )     (27,775 )     (19,828 )     (18,018 )     (17,023 )     (19,754 )     (20,321 )     (21,041 )     (27,641 )
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs
    2,472       8,186       2,472                                           8,186  
       
Stock Related Restructuring Costs
    1,797       799       1,797                                           799  
       
Non-recurring Accrual Adjustment
                                                           
       
 
                                                           
       
EBIT, as adjusted
  $ (78,375 )   $ (79,772 )   $ (23,506 )   $ (19,828 )   $ (18,018 )   $ (17,023 )   $ (19,754 )   $ (20,321 )   $ (21,041 )   $ (18,656 )
       
 
                                                           
       
Depreciation and Amortization
  $ 7,426     $ 8,130     $ 1,816     $ 1,836     $ 1,844     $ 1,930     $ 1,952     $ 2,154     $ 2,021     $ 2,003  
       
 
                                                           
       
 
                                                                               
  2.    
Net Earnings — Reconciliation
                                                                               
       
Net Earnings
  $ 302,344       275,729     $ 70,724     $ 78,691     $ 80,413     $ 72,516     $ 74,901     $ 75,542     $ 75,240     $ 50,046  
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs, net of tax
    1,533       5,055       1,533                                           5,055  
       
Stock Related Restructuring Costs, net of tax
    1,114       493       1,114                                           493  
       
Non-recurring Accrual Adjustment, net of tax
    6,076             6,076                                                          
       
 
                                                           
       
Net Earnings, as adjusted
    311,067       281,277       79,447       78,691       80,413       72,516       74,901       75,542       75,240       55,594  
       
Purchase Price Amortization, net of tax (1)
    15,366       18,987       4,059       3,526       3,633     $ 4,148       4,726       4,698       4,572       4,991  
       
 
                                                           
       
Adjusted Net Earnings
  $ 326,433     $ 300,264     $ 83,506     $ 82,217     $ 84,046     $ 76,664     $ 79,627     $ 80,240     $ 79,812     $ 60,585  
       
 
                                                           
       
Adjusted Net Earnings Per Diluted Share (2)
  $ 3.50     $ 3.12     $ 0.92     $ 0.89     $ 0.89     $ 0.80     $ 0.82     $ 0.83     $ 0.83     $ 0.64  
       
 
                                                           
       
Diluted Weighted Average Shares
    93,559       96,152       90,296       92,682       94,910       96,416       96,781       96,399       96,133       95,284  
       
 
                                                           
       
 
                                                                               
  3.    
Cashflow — Reconciliation
                                                                               
       
Cash Flows from Operating Activities:
                                                                               
       
Net Earnings
  $ 302,344     $ 275,729     $ 70,724     $ 78,691     $ 80,413     $ 72,516     $ 74,901     $ 75,542     $ 75,240     $ 50,046  
       
Adjustments:
                                                                               
       
Cash Related Restructuring Costs, net of tax
    1,533       4,304       1,533                                           4,304  
       
 
                                                           
       
Net Earnings, as adjusted
    303,877       280,033       72,257       78,691       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
    165,806       152,350       51,625       41,548       34,591       38,042       60,281       32,279       31,700       28,090  
       
Working capital adjustments
    (19,456 )     15,609       34,628       (35,191 )     (17,375 )     (1,518 )     13,369       (16,954 )     21,957       (2,763 )
       
 
                                                           
       
Net cash provided by operating activities
    450,227       447,992       158,510       85,048       97,629       109,040       148,551       90,867       128,897       79,677  
       
 
                                                           
       
Capital expenditures included in investing activities
    (108,256 )     (98,775 )     (24,150 )     (26,940 )     (29,122 )     (28,044 )     (30,913 )     (19,455 )     (25,836 )     (22,571 )
       
 
                                                           
       
Adjusted Net Free Cash Flow
  $ 341,971     $ 349,217     $ 134,360     $ 58,108     $ 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.
 
(2)   Adjusted net earnings per diluted share for the years ended December 31, 2010 and 2009 represents the summation of the adjusted net earnings per diluted share computed by quarter in each of the respective years.
 
(3)   During the three months ended December 31, 2010, we recorded a non-recurring accrual adjustment to cost of sales totaling $9.8 million relating to fiscal years 2007 and 2008.