Attached files
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| 8-K - CORELOGIC 8-K 5-5-2011 - CORELOGIC, INC. | form8-k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
MAY 5, 2011
Contact Information Below
CORELOGIC REPORTS FIRST QUARTER 2011 NET INCOME OF
$23.3 MILLION, OR $0.20 PER SHARE, ON REVENUE OF $404.0 MILLION
FIRST QUARTER PRE-TAX INCOME OF $52.6 MILLION, ADJUSTED PRE-TAX INCOME1 OF $40.7 MILLION, ADJUSTED EBITDA1 OF $73.5 MILLION
RESULTS INCLUDE GAIN ON SALE OF COMMON STOCK OF DEALERTRACK HOLDINGS, INC. OF $24.9 MILLION AND NON-CASH TAX PROVISION CHARGE OF $14.0 MILLION
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First quarter revenues totaled $404.0 million, compared to $397.9 million in the first quarter of 2010.
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Data and Analytics segment benefitted from increased capital markets advisory projects and continued growth in revenues from fraud monitoring products.
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First quarter pre-tax income for the Data and Analytics segment was $58.2 million compared to $27.5 million in the first quarter of 2010.
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First quarter adjusted EBITDA1 for the Data and Analytics segment was $51.0 million compared to $44.3 million in the year-ago period driven by increased sales of project-based solutions and continued adoption of fraud scoring and event monitoring products.
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Business and Information Services segment experienced lower customer appraisal volumes and continued delays in default-related businesses.
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First quarter pre-tax income for the Business and Information Services segment was $25.3 million compared to $31.7 million in the year-ago period.
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First quarter adjusted EBITDA1 for the Business and Information Services segment was $39.0 million compared to $48.2 million in the year-ago period primarily driven by a significant decline in appraisal business.
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For 2011 year to date through April 30, the company repurchased a total of 7 million shares for $131 million.
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Santa Ana, Calif., May 5, 2011 – CoreLogic (NYSE:CLGX) today reported net income of $23.3 million for the quarter ended March 31, 2011 compared with net income of $29.4 million in the same period of 2010. Diluted earnings were $0.20 per share in the first quarter of 2011 compared with diluted earnings of $0.28 per share in the first quarter of 2010. First quarter 2010 results included net income from discontinued operations of $18.6 million or $0.18 per share.
1 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 11 and following.
Significant items in the first quarter of 2011 included a $24.9 million pretax gain on the sale of common stock of DealerTrack Holdings Inc. and an increase to the tax provision of $14.0 million related to a deferred-tax asset reduction resulting from the acquisition of Dorado Network Systems Corporation.
Anand Nallathambi, President and Chief Executive Officer, commented on the quarter, “Our results reflected strong growth in Data and Analytics revenues and continued success in tax and flood data services. The continued shift in our business towards Data and Analytics helped provide top-line resiliency despite the challenges in the U.S. housing and mortgage markets. Specifically, strength in our core fraud and analytic solutions helped offset weakness in appraisal and default as well as higher corporate expenses. Looking ahead, we expect our financial results to improve through the year, as normal mortgage market seasonalities lift our revenues and the positive effects of our cost savings initiatives are felt.”
Continuing on, Nallathambi added: “In the Data and Analytics segment, we deployed products to help our clients meet new loan quality and borrower credit requirements, and to better assess risks associated with future loan repurchase liabilities. In the Business and Information Services segment we improved our penetration of insurance and other non-mortgage industry verticals through growth in our flood data and geo-spatial offerings. Overall, we continued to innovate and expand our footprint during the quarter.”
Regarding the company’s balance sheet, Nallathambi said: “Our capital position remains strong, this strength allowed us to repurchase 7 million common shares through April 30, 2011, for $131 million.”
Page 2
FINANCIAL SUMMARY
(Unaudited)
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($ millions)
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1Q11
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4Q10
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1Q10
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Total revenue (excludes equity in earnings of affiliates)
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$404.0
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$394.5
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$397.9
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Data and Analytics
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203.2
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183.3
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181.5
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Business and Information Services
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206.3
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218.3
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216.1
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Corporate and Eliminations
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(5.6)
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(7.1)
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0.3
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Total operating expenses
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$374.6
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$364.6
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$379.3
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Data and Analytics
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170.4
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165.4
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154.2
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Business and Information Services
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181.4
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186.3
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184.4
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Corporate and Eliminations
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22.8
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12.9
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40.7
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Total pretax income / margin (%)
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$52.6 / 13%
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$12.0 / 3.0%
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$15.4 / 4.0%
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Data and Analytics
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58.2 / 29%
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18.3 / 10%
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27.5 / 15%
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Business and Information Services
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25.3 / 12%
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36.7 / 17%
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31.7 / 15%
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Corporate and Eliminations
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(30.9) / NM
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(43.0) / NM
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(43.8) / NM
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Adjusted pretax income / margin (%)2
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$40.7 / 10%
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$60.5 / 15%
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$57.3 / 14%
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Data and Analytics
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36.3 / 18%
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28.4 / 15%
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28.8 / 16%
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Business and Information Services
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34.8 / 16%
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53.7 / 23%
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43.0 / 19%
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Corporate and Eliminations
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(30.4) / NM
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(21.6) / NM
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(14.5) / NM
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Cash on balance sheet
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$150
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$447
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$340
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Total debt outstanding
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$524
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$721
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$550
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2 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 11 and following.
Page 3
BUSINESS SEGMENT RESULTS
(Unaudited)
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($ millions)
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1Q11
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4Q10
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1Q10
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Total adjusted revenue3
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$414.6
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$415.3
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$411.5
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Data and Analytics
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205.7
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185.7
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183.0
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Business and Information Services
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214.4
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236.9
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227.1
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Corporate and Eliminations
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(5.5)
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(7.4)
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1.4
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Total adjusted EBITDA / margin (%)3
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$73.5 / 18%
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$92.5 / 22%
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$85.1 / 21%
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Data and Analytics
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51.0 / 25%
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43.0 / 23%
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44.3 / 24%
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Business and Information Services
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39.0 / 18%
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57.3 / 24%
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48.2 / 21%
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Corporate and Eliminations
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(16.5) / NM
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(7.9) / NM
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(7.4) / NM
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3 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 11 and following.
DATA AND ANALYTICS
Adjusted EBITDA was $51.0 million in the first quarter, up 15 percent from $44.3 million in the year-ago period. Strong first quarter results reflect growth in capital markets advisory projects, increased penetration of our fraud and borrower analytic solutions and higher auto and consumer credit-reporting volumes.
Adjusted revenues for the segment were $205.7 million, compared with $183.0 million in the year-ago period. Adjusted revenues in the risk and fraud analytics group increased 13 percent to $106.2 million from $94.3 million on higher project-based revenues and growth in fraud and analytical reporting volumes at the major lenders. Specialty finance group adjusted revenues increased 12 percent to $99.4 million from $88.8 million driven primarily by a rebound in automotive credit reports, higher consumer services revenues and improved results in marketing services.
Adjusted EBITDA margin for the segment was 25 percent, up from 24 percent in the year-ago period. Adjusted EBITDA margin in the risk and fraud analytics group increased to 31 percent from 30 percent reflecting an improved business mix with significant growth in higher-margin advisory and analytical products. Adjusted EBITDA margin in the specialty finance group remained flat at 19 percent year-over-year as higher revenues in our non-mortgage credit businesses were offset by increased credit bureau expenses.
Page 4
BUSINESS AND INFORMATION SERVICES
Adjusted EBITDA was $39.0 million in the first quarter, down 19 percent from $48.2 million in the year-ago period. Lower results in the Business and Information Services segment compared to the first quarter of 2010 reflect the impact of lower appraisal and broker price opinion business. These losses were partially offset by gains in flood data and geo-spatial services.
Adjusted revenues from the mortgage origination services group decreased 9 percent to $111.7 million from $123.0 million in the year-ago period. Appraisal services revenues declined 27 percent from the year-ago period primarily reflecting the loss of volumes experienced during 2010. Revenues from escrow services, which include tax services and flood data, were up 1 percent as client wins in the insurance and other non-mortgage industries, and higher volumes of new loans under tax service contributed to improved results.
Adjusted revenues in the default and technology services group fell 1 percent to $102.6 million from $104.1 million in the year-ago period. Excluding acquisitions, adjusted revenues declined 8 percent from the year-ago period. Contributing to this decline was an approximate 35 percent reduction in the volume of broker price opinion orders as industry participants sought to reduce the costs associated with loans in the foreclosure process. Partially offsetting these declines were higher revenues from field services and REO asset management. The inventory of REO properties under management increased 25 percent from the prior year on market share gains.
Adjusted EBITDA margin for the segment was 18 percent, down from 21 percent in the year-ago period. Adjusted EBITDA margin in the mortgage originations services group decreased to 20 percent from 23 percent due to reduced earnings from the company’s national joint ventures particularly related to lower appraisal volumes. Adjusted EBITDA margin in the default and technology group decreased to 17 percent from 19 percent as a result of an unfavorable shift in product mix more heavily weighted towards lower-margin field services and default outsourcing.
LIQUIDITY AND CAPITAL RESOURCES
Year to date through April 30, 2011, CoreLogic repurchased a total of 7 million common shares for $131 million. At March 31, 2011, CoreLogic had cash on balance sheet of $150 million. Total debt as of May 2, 2011, was approximately $825 million and available capacity on the credit facility was approximately $195 million.
Page 5
In April 2011, we initiated the renewal of our revolving credit facility and the refinancing of our $350 million term loan facility. We anticipate these transactions will close in the second quarter of 2011.
ACQUISITIONS
During the first quarter of 2011, CoreLogic announced an agreement with the independent board of directors of RP Data Limited to recommend to RP Data Limited shareholders the acquisition by CoreLogic of all of the outstanding shares of RP Data Limited. We have received all necessary approvals and anticipate the transaction will close in May of 2011.
Teleconference/Webcast
The CoreLogic management team will host a live webcast and conference call on Thursday, May 5, 2011, at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss these results. All interested parties are invited to listen to the live event via webcast on the CoreLogic website at http://investor.corelogic.com. The discussion is also available through dial-in number 1-800-591-6945 for U.S./Canada participants or 617-614-4911 for international participants using Conference ID 69030737.
A replay of the webcast will be available on the CoreLogic investor website for 30 days and also through the conference call number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 98342648.
Additional detail on the company’s first quarter financial results is included in the quarterly supplement, available on the Investor Relations page at http://investor.corelogic.com.
About CoreLogic
CoreLogic is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly, the information solutions group of The First American Corporation, CoreLogic began trading under the ticker symbol CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2010 revenues of $1.6 billion. For more information visit www.corelogic.com.
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Web Site Disclosure
CoreLogic posts information of interest to investors at http://investor.corelogic.com.
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the company’s outlook, including overall financial performance, future growth, including earnings and revenue growth performance, the planned renewal and refinancing of the company’s credit facility, and the anticipated closing of the acquisition of RP Data Limited. These forward-looking statements may contain the words “believe,” “anticipate,” “expect,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements are set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K for the year ended December 31, 2010, as updated by our Quarterly Reports on Form 10-Q, including but not limited to:
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limitations on access to data from external sources, including government and public record sources;
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changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data which may, among other things, limit the manner in which we conduct business with our customers;
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compromises in the security of our data transmissions, including the transmission of confidential information or systems interruptions;
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difficult conditions in the mortgage and consumer credit industry, including the continued decline in mortgage applications, declines in the level of loans seriously delinquent and continued delays in the default cycle, the state of the securitization market, increased unemployment, and conditions in the economy generally;
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our ability to bring new products to market and to protect proprietary technology rights;
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our ability to identify suitable acquisition targets, obtain necessary capital and complete such transactions on satisfactory terms;
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risks related to our international operations;
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consolidation among our significant customers and competitors;
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impairments in our goodwill or other intangible assets; and
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the inability to realize the benefits of the spin-off transaction as a result of the factors described immediately above, as well as, among other factors, increased borrowing costs, competition between the resulting companies, increased operating or other expenses or the triggering of rights and obligations by the transaction or any litigation arising out of or related to the separation.
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The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Use of Non-GAAP Financial Measures
This press release contains certain financial measures that are not presented in accordance with Generally Accepted Accounting Principles (GAAP), including adjusted revenue which includes equity in earnings of affiliates; adjusted EBITDA, adjusted EBITDA margin and adjusted pretax margin which is adjusted to exclude historical corporate expense of the spun-off businesses, net realized investment losses, employee separation costs, lease termination costs and other adjustments. Although these exclusions represent actual losses or expenses to the company, they may mask the periodic income and financial and operating trends associated with the company’s business. To compensate for the inherent limitations of these non-GAAP measures, the company uses them in conjunction with the corresponding GAAP measures.
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The company is presenting these non-GAAP financial measures because the company believes that they provide the company’s management and investors with additional insight into the operational performance of the company relative to earlier periods. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this press release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.
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Media Contact:
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Investor Contact:
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Alyson Austin
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Dan Smith
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Corporate Communications
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Investor Relations
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714-250-6180
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703-610-5410
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(ADDITIONAL FINANCIAL DATA FOLLOWS)
Page 8
CORELOGIC, INC
CONSOLIDATED CONDENSED INCOME STATEMENTS
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(Unaudited)
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Three Months Ended March 31,
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($ in Thousands)
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2011
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2010
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Operating Revenues
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$ | 403,994 | $ | 397,868 | ||||
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Operating Expenses
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||||||||
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External costs of revenue
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124,274 | 125,814 | ||||||
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Salaries and benefits
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153,069 | 153,507 | ||||||
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Other operating expenses
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72,075 | 74,013 | ||||||
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Depreciation and amortization
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25,211 | 25,971 | ||||||
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Total operating expenses
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374,629 | 379,305 | ||||||
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Interest expense, net
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7,587 | 5,903 | ||||||
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Gain on investment and other Income
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30,860 | 2,789 | ||||||
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Income from continuing operations
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52,638 | 15,449 | ||||||
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Provision for income taxes
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34,899 | 2,912 | ||||||
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Income from continuing operations before equity in earnings of affiliates
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17,739 | 12,537 | ||||||
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Equity in earnings of affiliates, net of tax
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6,334 | 7,523 | ||||||
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Income from continuing operations
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24,073 | 20,060 | ||||||
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Income from discontinued operations, net of tax
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- | 18,579 | ||||||
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Net income
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24,073 | 38,639 | ||||||
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Less: Net income attributable to noncontrolling interests
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817 | 9,222 | ||||||
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Net income attributable to CoreLogic
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$ | 23,256 | $ | 29,417 | ||||
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Earnings per share:
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Basic
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$ | 0.20 | $ | 0.28 | ||||
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Diluted
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$ | 0.20 | $ | 0.28 | ||||
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Weighted average shares:
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Basic
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115.5 | 103.5 | ||||||
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Diluted
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116.3 | 104.8 | ||||||
Page 9
CORELOGIC, INC
CONSOLIDATED CONDENSED BALANCE STATEMENTS
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(Unaudited)
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($ in Thousands)
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March 31, 2011
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December 31, 2010
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Assets
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Current Assets:
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Cash and cash equivalents
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$ | 149,713 | $ | 447,145 | ||||
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Restricted cash
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21,095 | 21,095 | ||||||
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Accounts receivable (Less Allowance)
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223,226 | 217,351 | ||||||
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Prepaid expenses and other current assets
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53,478 | 44,543 | ||||||
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Income tax receivable
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2,199 | 30,587 | ||||||
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Deferred income tax assets, current
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19,835 | 19,835 | ||||||
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Marketable securities
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21,583 | 75,221 | ||||||
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Due from First American Financial Corp (“FAFC”), net
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880 | - | ||||||
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Total current assets
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492,009 | 855,777 | ||||||
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Property and equipment, net
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227,390 | 211,450 | ||||||
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Goodwill
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1,475,120 | 1,444,993 | ||||||
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Other identifiable intangible assets, net
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143,866 | 132,689 | ||||||
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Capitalized data and database costs, net
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212,964 | 211,331 | ||||||
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Investment in affiliates
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185,143 | 165,709 | ||||||
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Deferred income tax assets, long-term
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32,631 | 17,000 | ||||||
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Other assets
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168,747 | 180,883 | ||||||
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Total assets
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$ | 2,937,870 | $ | 3,219,832 | ||||
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Liabilities and Equity
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Current liabilities:
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Accounts payable and accrued expenses
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$ | 153,497 | 137,578 | |||||
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Accrued salaries and benefits
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76,557 | 81,949 | ||||||
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Deferred revenue, current
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225,342 | 186,558 | ||||||
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Due to affiliates
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- | 18,097 | ||||||
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Current portion of long-term debt
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37,981 | 233,452 | ||||||
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Noncontrolling interests
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- | 72,000 | ||||||
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Total current liabilities
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493,377 | 729,634 | ||||||
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Long-term debt, net of current portion
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486,207 | 487,437 | ||||||
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Deferred revenue, net of current portion
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318,530 | 350,827 | ||||||
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Deferred tax liability, net
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995 | 994 | ||||||
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Other liabilities
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105,039 | 104,245 | ||||||
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Total liabilities
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$ | 1,404,148 | $ | 1,673,137 | ||||
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Stockholders’ equity
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Total CoreLogic, Inc. stockholders’ equity
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$ | 1,531,040 | $ | 1,544,340 | ||||
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Noncontrolling interests
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2,682 | 2,355 | ||||||
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Total stockholders’ equity
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1,533,722 | 1,546,695 | ||||||
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Total liabilities and stockholder’s equity
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$ | 2,937,870 | $ | 3,219,832 | ||||
Page 10
SIGNIFICANT ADJUSTMENTS BETWEEN GAAP & AS ADJUSTED RESULTS
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($ in Thousands)
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March 31, 2011
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Description
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|||
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Revenue
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|||||
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Re-class of Equity in Earnings of Affiliates
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$10,557 |
Reflects equity in earnings of affiliates before tax as component of revenue
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Expenses
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|||||
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Severance
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2,764 |
Corporate severance (including CFO) of $1.4M and segment-level personnel $1.4M
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Legal expenses
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375 |
Net impact of legal-related matters
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Treasury related
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782 |
Amendment fees for credit-facility
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Non-capitalized efficiency investments
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2,974 |
Expenses related to announced one-time non-capitalized investments
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Gain/(Loss) on Investment and Other Income
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|||||
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Sale of marketable securities and other gains
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(28,543 | ) |
Gain on sale of DealerTrack Holdings, Inc. marketable securities and other gains
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Sale of FASLO subsidiary
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488 |
Loss on disposition of second-lien outsourcing business
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Foreign currency gain
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(1,302 | ) |
Unrealized gain on forward purchase agreement hedging a portion of RP Data Limited acquisition price
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Sub-total Expenses and Gains / (Losses)
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(22,462 | ) | |||
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Total impact to pretax income
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($11,906 | ) | |||
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Provision for income taxes
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$14,040 |
Reduction of deferred tax asset related to acquisition of remaining interest in Dorado Network Systems Corporation
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RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.
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(Unaudited)
($ thousands)
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1Q11
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4Q10
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1Q10
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Net income (loss)
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$23,256
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($27,742)
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$29,417
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Less: Discontinued operations
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-
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(17,891)
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18,579
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Plus: Noncontrolling interests
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817
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9,041
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9,222
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Income tax provision*
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39,122
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33,014
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7,863
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Interest expense, net
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7,587
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7,773
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5,903
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Depreciation & amortization
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25,211
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26,629
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25,971
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Other significant adjustments (1Q11 presented above)
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(22,462)
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25,863
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(2,579)
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Legacy FAC Corporate Costs
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-
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-
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27,932
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Adjusted EBITDA
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$73,530
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$92,468
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$85,150
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*Includes income tax provision associated with equity in earnings of affiliates.
Page 11
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.
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(Unaudited)
($ thousands)
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1Q11
as Reported
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1Q11 Adjustments*
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1Q11 Reclass. of Equity in Earnings of Affiliates
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1Q11
as Adjusted
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Revenue
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$403,994
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$0
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$10,557
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$414,551
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Salaries and Benefits
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153,069
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(2,764)
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0
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150,304
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Other Operating
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196,349
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(4,131)
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0
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192,218
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Depr. and Amort.
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25,211
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0
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0
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25,211
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Impairment Loss
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0
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0
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0
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0
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Total Operating exp.
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$374,629
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($6,895)
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$0
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$367,734
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Interest Expense, Net
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7,587
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0
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0
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7,587
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Other Income
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30,860
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(29,357)
|
0
|
1,502
|
|
Pre-tax Income
|
$52,638
|
($22,462)
|
$10,557
|
$40,732
|
|
Provision for Income Taxes
|
(34,899)
|
14,040
|
(4,223)
|
(25,082)
|
|
Equity in Earnings of Affiliates, Net of Tax
|
6,334
|
0
|
(6,334)
|
0
|
|
Income from Continuing Operations
|
$24,073
|
($8,422)
|
$0
|
$15,651
|
|
Pre-tax margin
|
13%
|
10%
|
||
|
+ Adj. Interest Exp.
|
7,587
|
|||
|
+ Adj. Depr. and Amort.
|
25,211
|
|||
|
= Adj. EBITDA
|
$73,530
|
|||
|
Adj. EBITDA Margin
|
18%
|
|||
|
*Includes severance of $2,764, fees paid to amend our exisiting credit facility of $782, expenses associated with non-capitalized investments of $2,974, net legal expenses of $375, gain on sale of securities of $24,896, unrealized gain on foreign currency hedge of RP Data Limited purchase price of $1,302 and loss on sale of subsidiary of $488.
|
||||
Page 12
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$394,507
|
$0
|
$20,773
|
$415,280
|
|
Salaries and Benefits
|
138,798
|
(2,027)
|
0
|
136,772
|
|
Other Operating
|
199,124
|
(11,578)
|
0
|
187,546
|
|
Depr. and Amort.
|
26,629
|
(2,462)
|
0
|
24,166
|
|
Impairment Loss
|
0
|
0
|
0
|
0
|
|
Total Operating exp.
|
$364,551
|
($16,067)
|
$0
|
$348,484
|
|
Interest Expense, Net
|
7,773
|
0
|
0
|
7,773
|
|
Other Income
|
(10,227)
|
11,733
|
0
|
1,506
|
|
Pre-tax Income
|
$11,956
|
$27,800
|
$20,773
|
$60,529
|
|
Provision for Income Taxes
|
(24,814)
|
0
|
(8,199)
|
(33,014)
|
|
Equity in Earnings of Affiliates, Net of Tax
|
12,048
|
526
|
(12,573)
|
0
|
|
Income from Continuing Operations
|
($811)
|
$28,326
|
$0
|
$27,515
|
|
Pre-tax margin
|
3%
|
15%
|
||
|
+ Adj. Interest Exp.
|
7,773
|
|||
|
+ Adj. Depr. and Amort.
|
24,166
|
|||
|
= Adj. EBITDA
|
$92,468
|
|||
|
Adj. EBITDA Margin
|
22%
|
|||
|
*Includes severance and other personnel costs of $2,027, spin-related costs of $545, legal settlements of $6,283, sales tax accrual of $4,750, write-off of software and equipment of $2,462, gain on the acquisition of a controlling interest in an investment in an affiliate of $3,353, net investment losses (including impairments) of $15,086 and losses on the shut-down of a joint venture of $526.
|
||||
Page 13
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.
|
(Unaudited)
($ thousands)
|
1Q10
as Reported
|
1Q10 Historical Corporate Exp. and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$397,868
|
$1,150
|
$12,474
|
$411,492
|
|
Salaries and Benefits
|
153,507
|
(15,989)
|
0
|
137,518
|
|
Other Operating
|
199,827
|
(15,604)
|
0
|
184,224
|
|
Depr. and Amort.
|
25,971
|
(535)
|
0
|
25,435
|
|
Impairment Loss
|
0
|
0
|
0
|
0
|
|
Total Operating exp.
|
$379,305
|
($32,127)
|
$0
|
$347,178
|
|
Interest Expense, Net
|
5,903
|
(3,440)
|
0
|
2,463
|
|
Other Income
|
2,789
|
(7,389)
|
0
|
(4,600)
|
|
Pre-tax Income
|
$15,449
|
$29,328
|
$12,474
|
$57,252
|
|
Provision for Income Taxes
|
(2,912)
|
0
|
(4,951)
|
(7,863)
|
|
Equity in Earnings of Affiliates, Net of Tax
|
7,523
|
0
|
(7,523)
|
0
|
|
Income from Continuing Operations
|
$20,060
|
$29,328
|
$0
|
$49,388
|
|
Pre-tax margin
|
4%
|
14%
|
||
|
+ Adj. Interest Exp.
|
2,463
|
|||
|
+ Adj. Depr. and Amort.
|
25,435
|
|||
|
= Adj. EBITDA
|
$85,150
|
|||
|
Adj. EBITDA Margin
|
21%
|
|||
|
*Includes net legacy FAC expenses of $31,907, severance of $1,245, and gain on investments of $3,824.
|
||||
Page 14
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DATA AND ANALYTICS
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$203,227
|
$0
|
$2,439
|
$205,665
|
|
Salaries and Benefits
|
54,297
|
(140)
|
0
|
54,158
|
|
Other Operating
|
100,823
|
(375)
|
0
|
100,448
|
|
Depr. and Amort.
|
15,299
|
0
|
0
|
15,299
|
|
Total Operating Exp.
|
$170,419
|
($515)
|
$0
|
$169,904
|
|
Interest Expense, Net
|
(618)
|
0
|
0
|
(618)
|
|
Other Income
|
24,814
|
(24,896)
|
0
|
(82)
|
|
Pre-tax Income
|
$58,240
|
($24,382)
|
$2,439
|
$36,297
|
|
Pre-tax Margin
|
29%
|
18%
|
||
|
+ Adj. interest exp.
|
(618)
|
|||
|
+ Adj. depr. and amort.
|
15,299
|
|||
|
= Adj. EBITDA
|
$50,978
|
|||
|
Adj. EBITDA Margin
|
25%
|
|||
|
*Includes severance of $140, net legal expenses of $375 and gain on sale of marketable securities of $24,896.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$183,256
|
$0
|
$2,475
|
$185,731
|
|
Salaries and Benefits
|
54,216
|
(1,113)
|
0
|
53,103
|
|
Other Operating
|
95,213
|
(5,718)
|
0
|
89,495
|
|
Depr. and Amort.
|
15,925
|
(776)
|
0
|
15,150
|
|
Total Operating Exp.
|
$165,355
|
($7,607)
|
$0
|
$157,748
|
|
Interest Expense, Net
|
(534)
|
0
|
0
|
(534)
|
|
Other Income
|
(91)
|
0
|
0
|
(91)
|
|
Pre-tax Income
|
$18,345
|
$7,607
|
$2,475
|
$28,426
|
|
Pre-tax Margin
|
10%
|
15%
|
||
|
+ Adj. interest exp.
|
(534)
|
|||
|
+ Adj. depr. and amort.
|
15,150
|
|||
|
= Adj. EBITDA
|
$43,042
|
|||
|
Adj. EBITDA Margin
|
23%
|
|||
|
*Includes severance and other personnel costs of $1,113, legal settlement of $5,718, and write-off of fixed assets of $776.
|
||||
Page 15
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DATA AND ANALYTICS
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$181,467
|
$0
|
$1,559
|
$183,026
|
|
Salaries and Benefits
|
54,327
|
(420)
|
0
|
53,907
|
|
Other Operating
|
84,846
|
0
|
0
|
84,846
|
|
Depr. and Amort.
|
14,998
|
0
|
0
|
14,998
|
|
Total Operating Exp.
|
$154,171
|
($420)
|
$0
|
$153,752
|
|
Interest Expense, Net
|
511
|
0
|
0
|
511
|
|
Other Income
|
752
|
(752)
|
0
|
(0)
|
|
Pre-tax Income
|
$27,537
|
($332)
|
$1,559
|
$28,764
|
|
Pre-tax Margin
|
15%
|
16%
|
||
|
+ Adj. interest exp.
|
511
|
|||
|
+ Adj. depr. and amort.
|
14,998
|
|||
|
= Adj. EBITDA
|
$44,272
|
|||
|
Adj. EBITDA Margin
|
24%
|
|||
|
*Includes severance of $420 and net realized gains of $752.
|
||||
Page 16
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR BUSINESS AND INFORMATION SERVICES
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$206,322
|
$0
|
$8,051
|
$214,372
|
|
Salaries and Benefits
|
51,440
|
(977)
|
0
|
50,463
|
|
Other Operating
|
124,908
|
0
|
0
|
124,908
|
|
Depr. and Amort.
|
5,065
|
0
|
0
|
5,065
|
|
Total Operating Exp.
|
$181,412
|
($977)
|
$0
|
$180,435
|
|
Interest Expense, Net
|
(862)
|
0
|
0
|
(862)
|
|
Other Income
|
(480)
|
488
|
0
|
0
|
|
Pre-tax Income
|
$25,292
|
$1,465
|
$8,051
|
$34,807
|
|
Pre-tax Margin
|
12%
|
16%
|
||
|
+ Adj. interest exp.
|
(862)
|
|||
|
+ Adj. depr. and amort.
|
5,065
|
|||
|
= Adj. EBITDA
|
$39,010
|
|||
|
Adj. EBITDA Margin
|
18%
|
|||
|
*Reflects severance of $977 and loss on sale of a subsidiary of $488.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$218,305
|
$0
|
$18,608
|
$236,914
|
|
Salaries and Benefits
|
50,680
|
(64)
|
0
|
50,616
|
|
Other Operating
|
128,953
|
0
|
0
|
128,953
|
|
Depr. and Amort.
|
6,680
|
(1,687)
|
0
|
4,993
|
|
Total Operating Exp.
|
$186,314
|
($1,751)
|
$0
|
$184,563
|
|
Interest Expense, Net
|
(1,310)
|
0
|
0
|
(1,310)
|
|
Other Income
|
3,353
|
(3,353)
|
0
|
0
|
|
Pre-tax Income
|
$36,655
|
($1,603)
|
$18,608
|
$53,661
|
|
Pre-tax Margin
|
17%
|
23%
|
||
|
+ Adj. interest exp.
|
(1,310)
|
|||
|
+ Adj. depr. and amort.
|
4,993
|
|||
|
= Adj. EBITDA
|
$57,344
|
|||
|
Adj. EBITDA Margin
|
24%
|
|||
|
*Includes severance of $64, write-off of $1,687, and gain on the acquisition of a controlling interest in an investment in an affiliate of $3,353.
|
||||
Page 17
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR BUSINESS AND INFORMATION SERVICES
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$216,092
|
$0
|
$10,959
|
$227,052
|
|
Salaries and Benefits
|
52,491
|
(288)
|
0
|
52,202
|
|
Other Operating
|
126,600
|
0
|
0
|
126,600
|
|
Depr. and Amort.
|
5,321
|
0
|
0
|
5,321
|
|
Total Operating Exp.
|
$184,411
|
($288)
|
$0
|
$184,123
|
|
Interest Expense, Net
|
(64)
|
0
|
0
|
(64)
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$31,745
|
$288
|
$10,959
|
$42,993
|
|
Pre-tax Margin
|
15%
|
19%
|
||
|
+ Adj. interest exp.
|
(64)
|
|||
|
+ Adj. depr. and amort.
|
5,321
|
|||
|
= Adj. EBITDA
|
$48,250
|
|||
|
Adj. EBITDA Margin
|
21%
|
|||
|
*Includes severance of $288.
|
||||
Page 18
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CORPORATE AND ELIMINATIONS
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
($5,555)
|
$0
|
$68
|
($5,487)
|
|
Salaries and Benefits
|
47,332
|
(1,648)
|
0
|
45,684
|
|
Other Operating
|
(29,381)
|
(3,757)
|
0
|
(33,137)
|
|
Depr. and Amort.
|
4,847
|
0
|
0
|
4,847
|
|
Total Operating Exp.
|
$22,798
|
($5,404)
|
$0
|
$17,394
|
|
Interest Expense, Net
|
9,067
|
0
|
0
|
9,067
|
|
Other Income
|
6,526
|
(4,950)
|
0
|
1,576
|
|
Pre-tax Income
|
($30,895)
|
$454
|
$68
|
($30,373)
|
|
Pre-tax Margin
|
N/M
|
N/M
|
||
|
+ Adj. interest exp.
|
9,067
|
|||
|
+ Adj. depr. and amort.
|
4,847
|
|||
|
= Adj. EBITDA
|
($16,458)
|
|||
|
Adj. EBITDA Margin
|
N/M
|
|||
|
*Includes severance of $1,648, costs related to non-capitalized investments of $3,757 and unrealized gain on foreign currency hedge of RP Data Limited purchase price of $1,302, and other realized gains of $3,648.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
($7,054)
|
$0
|
($311)
|
($7,365)
|
|
Salaries and Benefits
|
33,902
|
(850)
|
0
|
33,052
|
|
Other Operating
|
(25,042)
|
(5,860)
|
0
|
(30,902)
|
|
Depr. and Amort.
|
4,023
|
0
|
0
|
4,023
|
|
Total Operating Exp.
|
$12,883
|
($6,710)
|
$0
|
$6,173
|
|
Interest Expense, Net
|
9,617
|
0
|
0
|
9,617
|
|
Other Income
|
(13,490)
|
15,086
|
0
|
1,596
|
|
Pre-tax Income
|
($43,044)
|
$21,796
|
($311)
|
($21,558)
|
|
Pre-tax Margin
|
N/M
|
N/M
|
||
|
+ Adj. interest exp.
|
9,617
|
|||
|
+ Adj. depr. and amort.
|
4,023
|
|||
|
= Adj. EBITDA
|
($7,918)
|
|||
|
Adj. EBITDA Margin
|
N/M
|
|||
|
*Includes severance and other personnel costs of $850, spin-related costs of $545, legal settlement of $565, sales tax accrual of $4,750 and investment loss (including impairments) of $15,086.
|
||||
Page 19
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CORPORATE AND ELIMINATIONS
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$309
|
$1,150
|
($44)
|
$1,415
|
|
Salaries and Benefits
|
46,689
|
(15,280)
|
0
|
31,409
|
|
Other Operating
|
(11,618)
|
(15,604)
|
0
|
(27,221)
|
|
Depr. and Amort.
|
5,651
|
(535)
|
0
|
5,116
|
|
Total Operating Exp.
|
$40,723
|
($31,419)
|
$0
|
$9,304
|
|
Interest Expense, Net
|
5,456
|
(3,440)
|
0
|
2,016
|
|
Other Income
|
2,037
|
(6,637)
|
0
|
(4,600)
|
|
Pre-tax Income
|
($43,833)
|
$29,372
|
($44)
|
($14,505)
|
|
Pre-tax Margin
|
N/M
|
N/M
|
||
|
+ Adj. interest exp.
|
2,016
|
|||
|
+ Adj. depr. and amort.
|
5,116
|
|||
|
= Adj. EBITDA
|
($7,372)
|
|||
|
Adj. EBITDA Margin
|
N/M
|
|||
|
*Includes net legacy FAC expenses of $31,907, severance of $537, and gain on investment of $3,072.
|
||||
Page 20
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR RISK AND FRAUD ANALYTICS GROUP
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$104,949
|
$0
|
$1,276
|
$106,225
|
|
Salaries and Benefits
|
35,717
|
(1)
|
0
|
35,716
|
|
Other Operating
|
37,950
|
50
|
0
|
38,000
|
|
Depr. and Amort.
|
10,603
|
0
|
0
|
10,603
|
|
Total Operating Exp.
|
$84,271
|
$49
|
$0
|
$84,319
|
|
Interest Expense, Net
|
(535)
|
0
|
0
|
(535)
|
|
Other Income
|
(82)
|
0
|
0
|
(82)
|
|
Pre-tax Income
|
$21,131
|
($49)
|
$1,276
|
$22,358
|
|
Pre-tax Margin
|
20%
|
21%
|
||
|
+ Adj. interest exp.
|
(535)
|
|||
|
+ Adj. depr. and amort.
|
10,603
|
|||
|
= Adj. EBITDA
|
$32,427
|
|||
|
Adj. EBITDA Margin
|
31%
|
|||
|
*Includes severance of $1 and net release of legal expenses of $50.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$97,715
|
$0
|
$990
|
$98,705
|
|
Salaries and Benefits
|
34,995
|
(1,108)
|
0
|
33,887
|
|
Other Operating
|
41,824
|
(5,718)
|
0
|
36,106
|
|
Depr. and Amort.
|
11,197
|
(431)
|
0
|
10,767
|
|
Total Operating Exp.
|
$88,016
|
($7,257)
|
$0
|
$80,759
|
|
Interest Expense, Net
|
(416)
|
0
|
0
|
(416)
|
|
Other Income
|
(91)
|
0
|
0
|
(91)
|
|
Pre-tax Income
|
$10,025
|
$7,257
|
$990
|
$18,272
|
|
Pre-tax Margin
|
10%
|
19%
|
||
|
+ Adj. interest exp.
|
(416)
|
|||
|
+ Adj. depr. and amort.
|
10,767
|
|||
|
= Adj. EBITDA
|
$28,622
|
|||
|
Adj. EBITDA Margin
|
29%
|
|||
|
*Includes severance and other personnel costs of $1,108, legal settlement of $5,718, and write-off of equipment of $431.
|
||||
Page 21
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR RISK AND FRAUD ANALYTICS GROUP
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$94,151
|
$0
|
$109
|
$94,260
|
|
Salaries and Benefits
|
34,881
|
(121)
|
0
|
34,761
|
|
Other Operating
|
31,660
|
0
|
0
|
31,660
|
|
Depr. and Amort.
|
10,375
|
0
|
0
|
10,375
|
|
Total Operating Exp.
|
$76,915
|
($121)
|
$0
|
$76,795
|
|
Interest Expense, Net
|
452
|
0
|
0
|
452
|
|
Other Income
|
752
|
(752)
|
0
|
(0)
|
|
Pre-tax Income
|
$17,536
|
($631)
|
$109
|
$17,013
|
|
Pre-tax Margin
|
19%
|
18%
|
||
|
+ Adj. interest exp.
|
452
|
|||
|
+ Adj. depr. and amort.
|
10,375
|
|||
|
= Adj. EBITDA
|
$27,840
|
|||
|
Adj. EBITDA Margin
|
30%
|
|||
|
*Includes severance of $121 and net realized gains of $752.
|
||||
Page 22
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR SPECIALTY FINANCE SOLUTIONS GROUP
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$98,278
|
$0
|
$1,163
|
$99,441
|
|
Salaries and Benefits
|
18,580
|
(138)
|
0
|
18,442
|
|
Other Operating
|
62,872
|
(425)
|
0
|
62,447
|
|
Depr. and Amort.
|
4,696
|
0
|
0
|
4,696
|
|
Total Operating Exp.
|
$86,148
|
($563)
|
$0
|
$85,585
|
|
Interest Expense, Net
|
(84)
|
0
|
0
|
(84)
|
|
Other Income
|
24,896
|
(24,896)
|
0
|
(0)
|
|
Pre-tax Income
|
$37,110
|
($24,333)
|
$1,163
|
$13,939
|
|
Pre-tax Margin
|
38%
|
14%
|
||
|
+ Adj. interest exp.
|
(84)
|
|||
|
+ Adj. depr. and amort.
|
4,696
|
|||
|
= Adj. EBITDA
|
$18,552
|
|||
|
Adj. EBITDA Margin
|
19%
|
|||
|
*Includes severance of $138 and legal expenses of $425 and gain on sale of securities of $24,896.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$85,540
|
$0
|
$1,486
|
$87,026
|
|
Salaries and Benefits
|
19,221
|
(5)
|
0
|
19,217
|
|
Other Operating
|
53,389
|
0
|
0
|
53,389
|
|
Depr. and Amort.
|
4,728
|
(345)
|
0
|
4,383
|
|
Total Operating Exp.
|
$77,339
|
($350)
|
$0
|
$76,989
|
|
Interest Expense, Net
|
(117)
|
0
|
0
|
(117)
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$8,319
|
$350
|
$1,486
|
$10,154
|
|
Pre-tax Margin
|
10%
|
12%
|
||
|
+ Adj. interest exp.
|
(117)
|
|||
|
+ Adj. depr. and amort.
|
4,383
|
|||
|
= Adj. EBITDA
|
$14,420
|
|||
|
Adj. EBITDA Margin
|
17%
|
|||
|
*Includes severance of $5, and write-off of equipment of $345.
|
||||
Page 23
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR SPECIALTY FINANCE SOLUTIONS GROUP
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$87,316
|
$0
|
$1,450
|
$88,766
|
|
Salaries and Benefits
|
19,446
|
(299)
|
0
|
19,147
|
|
Other Operating
|
53,187
|
0
|
0
|
53,187
|
|
Depr. and Amort.
|
4,623
|
0
|
0
|
4,623
|
|
Total Operating Exp.
|
$77,256
|
($299)
|
$0
|
$76,957
|
|
Interest Expense, Net
|
58
|
0
|
0
|
58
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$10,001
|
$299
|
$1,450
|
$11,751
|
|
Pre-tax Margin
|
11%
|
13%
|
||
|
+ Adj. interest exp.
|
58
|
|||
|
+ Adj. depr. and amort.
|
4,623
|
|||
|
= Adj. EBITDA
|
$16,433
|
|||
|
Adj. EBITDA Margin
|
19%
|
|||
|
*Includes severance of $299.
|
||||
Page 24
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR MORTGAGE ORIGINATION SERVICES GROUP
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$103,671
|
$0
|
$8,068
|
$111,740
|
|
Salaries and Benefits
|
34,283
|
(231)
|
0
|
34,052
|
|
Other Operating
|
55,902
|
0
|
0
|
55,902
|
|
Depr. and Amort.
|
3,444
|
0
|
0
|
3,444
|
|
Total Operating Exp.
|
$93,629
|
($231)
|
$0
|
$93,398
|
|
Interest Expense, Net
|
(913)
|
0
|
0
|
(913)
|
|
Other Income
|
10
|
0
|
0
|
10
|
|
Pre-tax Income
|
$10,966
|
$231
|
$8,068
|
$19,265
|
|
Pre-tax Margin
|
11%
|
17%
|
||
|
+ Adj. interest exp.
|
(913)
|
|||
|
+ Adj. depr. and amort.
|
3,444
|
|||
|
= Adj. EBITDA
|
$21,796
|
|||
|
Adj. EBITDA Margin
|
20%
|
|||
|
*Includes severance of $231.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$114,813
|
$0
|
$18,536
|
$133,349
|
|
Salaries and Benefits
|
36,256
|
(90)
|
0
|
36,166
|
|
Other Operating
|
58,833
|
0
|
0
|
58,833
|
|
Depr. and Amort.
|
5,116
|
(1,528)
|
0
|
3,588
|
|
Total Operating Exp.
|
$100,206
|
($1,618)
|
$0
|
$98,587
|
|
Interest Expense, Net
|
(1,312)
|
0
|
0
|
(1,312)
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$15,920
|
$1,618
|
$18,536
|
$36,074
|
|
Pre-tax Margin
|
14%
|
27%
|
||
|
+ Adj. interest exp.
|
(1,312)
|
|||
|
+ Adj. depr. and amort.
|
3,588
|
|||
|
= Adj. EBITDA
|
$38,350
|
|||
|
Adj. EBITDA Margin
|
29%
|
|||
|
*Includes severance of $90 and write-off of software of $1,528.
|
||||
Page 25
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR MORTGAGE ORIGINATION SERVICES GROUP
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$112,222
|
$0
|
$10,730
|
$122,953
|
|
Salaries and Benefits
|
39,006
|
(175)
|
0
|
38,831
|
|
Other Operating
|
56,032
|
0
|
0
|
56,032
|
|
Depr. and Amort.
|
3,658
|
0
|
0
|
3,658
|
|
Total Operating Exp.
|
$98,696
|
($175)
|
$0
|
$98,521
|
|
Interest Expense, Net
|
(64)
|
0
|
0
|
(64)
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$13,590
|
$175
|
$10,730
|
$24,496
|
|
Pre-tax Margin
|
12%
|
20%
|
||
|
+ Adj. interest exp.
|
(64)
|
|||
|
+ Adj. depr. and amort.
|
3,658
|
|||
|
= Adj. EBITDA
|
$28,090
|
|||
|
Adj. EBITDA Margin
|
23%
|
|||
|
*Includes severance of $175.
|
||||
Page 26
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DEFAULT AND TECHNOLOGY SERVICES GROUP
|
(Unaudited)
($ thousands)
|
1Q11
as Reported
|
1Q11 Adjustments*
|
1Q11 Reclass. of Equity in Earnings of Affiliates
|
1Q11
as Adjusted
|
|
Revenue
|
$102,650
|
$0
|
($18)
|
$102,633
|
|
Salaries and Benefits
|
17,157
|
(746)
|
0
|
16,411
|
|
Other Operating
|
69,005
|
0
|
0
|
69,005
|
|
Depr. and Amort.
|
1,621
|
0
|
0
|
1,621
|
|
Total Operating Exp.
|
$87,783
|
($746)
|
$0
|
$87,037
|
|
Interest Expense, Net
|
51
|
0
|
0
|
51
|
|
Other Income
|
(491)
|
488
|
0
|
(2)
|
|
Pre-tax Income
|
$14,326
|
$1,234
|
($18)
|
$15,543
|
|
Pre-tax Margin
|
14%
|
15%
|
||
|
+ Adj. interest exp.
|
51
|
|||
|
+ Adj. depr. and amort.
|
1,621
|
|||
|
= Adj. EBITDA
|
$17,214
|
|||
|
Adj. EBITDA Margin
|
17%
|
|||
|
*Includes severance of $746 and loss on sale of a subsidiary of $488.
|
||||
|
(Unaudited)
($ thousands)
|
4Q10
as Reported
|
4Q10 Adjustments*
|
4Q10 Reclass. of Equity in Earnings of Affiliates
|
4Q10
as Adjusted
|
|
Revenue
|
$103,492
|
$0
|
$72
|
$103,564
|
|
Salaries and Benefits
|
14,424
|
26
|
0
|
14,451
|
|
Other Operating
|
70,120
|
0
|
0
|
70,120
|
|
Depr. and Amort.
|
1,564
|
(159)
|
0
|
1,405
|
|
Total Operating Exp.
|
$86,108
|
($133)
|
$0
|
$85,975
|
|
Interest Expense, Net
|
3
|
0
|
0
|
3
|
|
Other Income
|
3,353
|
(3,353)
|
0
|
0
|
|
Pre-tax Income
|
$20,735
|
($3,221)
|
$72
|
$17,587
|
|
Pre-tax Margin
|
20%
|
17%
|
||
|
+ Adj. interest exp.
|
3
|
|||
|
+ Adj. depr. and amort.
|
1,405
|
|||
|
= Adj. EBITDA
|
$18,994
|
|||
|
Adj. EBITDA Margin
|
18%
|
|||
|
*Includes severance reversal of ($26), write-off of software of $159, and gain on the acquisition of a controlling interest in an investment in an affiliate of $3,353.
|
||||
Page 27
RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DEFAULT AND TECHNOLOGY SERVICES GROUP
|
(Unaudited)
($ thousands)
|
1Q10 as Reported
|
1Q10 Historical Corp. Expense and Other Adjustments*
|
1Q10 Reclass. of Equity in Earnings of Affiliates
|
1Q10
as Adjusted
|
|
Revenue
|
$103,870
|
$0
|
$229
|
$104,099
|
|
Salaries and Benefits
|
13,484
|
(113)
|
0
|
13,371
|
|
Other Operating
|
70,568
|
0
|
0
|
70,568
|
|
Depr. and Amort.
|
1,663
|
0
|
0
|
1,663
|
|
Total Operating Exp.
|
$85,715
|
($113)
|
$0
|
$85,602
|
|
Interest Expense, Net
|
0
|
0
|
0
|
0
|
|
Other Income
|
0
|
0
|
0
|
0
|
|
Pre-tax Income
|
$18,155
|
$113
|
$229
|
$18,497
|
|
Pre-tax Margin
|
17%
|
18%
|
||
|
+ Adj. interest exp.
|
0
|
|||
|
+ Adj. depr. and amort.
|
1,663
|
|||
|
= Adj. EBITDA
|
$20,160
|
|||
|
Adj. EBITDA Margin
|
19%
|
|||
|
*Includes severance of $113.
|
||||
Page 28