Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Black Knight InfoServ, LLC | d299879d8k.htm |
| EX-99.1 - EX-99.1 - Black Knight InfoServ, LLC | d299879dex991.htm |
 Lender Processing Services
Fourth Quarter 2011
Supplemental Materials
Exhibit 99.2 |
 Forward-Looking Statements
2
ONE SOURCE. POWERFUL SOLUTIONS.
This presentation 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 enforcement
actions, 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. |
 3
ONE SOURCE. POWERFUL SOLUTIONS.
Use of Non-GAAP Measures
U.S.
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
“EBITDA”
(GAAP
operating
income
plus
depreciation
and
amortization);
“EBITDA,
as
adjusted”
(EBITDA
adjusted
for
the
impact
of
certain
non-recurring
adjustments,
if
applicable);
“EBIT,
as
adjusted”
or
“adjusted
operating income”
(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”
or
“adjusted
EPS
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. |
 2011
Business Highlights 4
ONE SOURCE. POWERFUL SOLUTIONS.
Strengthened leadership team
Conducted strategic review of businesses
Exited non-core businesses
During cyclical downturn
•
Outperformed market metrics
•
Preserved strong margins through disciplined cost
management
Signed 7 new MSP and 15 new Desktop customers
Continued to resolve outstanding litigation |
 5
ONE SOURCE. POWERFUL SOLUTIONS.
Condensed Income Statement
GAAP to Adjusted
($ in millions)
GAAP
Adjustments
Adjusted
GAAP
Adjustments
Adjusted
Revenue
533.8
$
-
$
533.8
$
2,090.1
$
-
$
2,090.1
$
EBITDA
28.9
106.2
135.1
380.6
135.4
516.0
EBITDA %
5.4%
25.3%
18.2%
24.7%
EBIT
4.9
106.2
111.1
290.2
135.4
425.6
Earnings (loss) before taxes
(11.3)
106.2
94.9
223.9
143.4
367.2
Provision (benefit) for taxes
(7.1)
42.7
35.6
81.1
56.8
137.8
Continuing operations, net of tax
(4.2)
63.5
59.3
142.8
86.6
229.4
Discontinued operations, net of tax
(17.0)
15.5
(1.5)
(46.3)
34.8
(11.5)
Net earnings (loss)
(21.2)
$
79.0
$
57.8
$
96.5
$
121.4
$
218.0
$
Earnings (loss) per diluted share
(0.25)
$
0.94
$
0.69
$
1.13
$
1.42
$
2.55
$
Purchase Amortization, net of tax
0.03
0.13
Adjusted earnings per diluted share
0.72
$
2.68
$
Free cash flow
124.9
$
(3.3)
$
121.5
$
373.0
$
8.2
$
381.2
$
Note: columns may not total due to rounding.
Q4 2011
FY 2011 |
 6
ONE SOURCE. POWERFUL SOLUTIONS.
Condensed Income Statement
Adjusted Results
($ in millions)
Q4-11
Q4-10
% Var
FY11
FY10
% Var
Revenue
533.8
$
618.2
$
-13.6%
2,090.1
$
2,376.9
$
-12.1%
EBITDA
135.1
172.7
-21.8%
516.0
683.2
-24.5%
EBITDA %
25.3%
27.9%
(264)
24.7%
28.7%
(406)
EBIT
111.1
148.8
-25.3%
425.6
594.2
-28.4%
Earnings before taxes
94.9
132.5
-28.4%
367.2
524.2
-29.9%
Provision for taxes
35.6
49.4
27.9%
137.8
199.2
30.8%
Continuing operations, net of tax
59.3
83.1
-28.7%
229.4
325.0
-29.4%
Discontinued operations, net of tax
(1.5)
(3.7)
59.7%
(11.5)
(13.9)
17.8%
Net earnings
57.8
$
79.4
$
-27.3%
218.0
$
311.1
$
-29.9%
Adjusted earnings per diluted share
0.72
$
0.92
$
-21.7%
2.68
$
3.50
$
-23.4%
Adjusted free cash flow
121.5
$
134.4
$
-9.5%
381.2
$
342.0
$
11.5%
Note: columns may not total due to rounding.
Quarterly
Annual |
 Summary of Adjustments
7
ONE SOURCE. POWERFUL SOLUTIONS.
Q4-11
FY-11
GAAP EPS
(0.25)
$
1.13
$
Adjustments:
Legal and Regulatory Reserve
0.63
0.63
Exiting Non-Core Businesses
0.18
0.41
Other Non-Recurring
0.21
0.46
Income Tax Benefit
(0.08)
(0.08)
Total Adjustments
0.94
1.42
Purchase Amortization, net
0.03
0.13
Adjusted EPS
0.72
$
2.68
$ |
 Segment Revenue
8
ONE SOURCE. POWERFUL SOLUTIONS.
($ in millions)
Q4-11
Q4-10
vs PY
vs PQ
Technology, Data and Analytics:
Mortgage Processing
106.1
$
100.3
$
5.8%
-0.2%
Other TD&A
86.0
83.1
3.5%
9.9%
Total TD&A
192.1
183.5
4.7%
4.1%
Loan Transaction Services:
Loan Facilitation Services
156.4
185.3
-15.6%
13.3%
Default Services
186.6
251.2
-25.7%
-6.0%
Total LTS
343.0
436.6
-21.4%
1.9%
Corporate and Other
(1.3)
(1.9)
nm
nm
Total Revenue
533.8
$
618.2
$
-13.6%
2.8%
Note: columns may not total due to rounding.
Revenue $
% Growth |
 Segment EBITDA
Adjusted
9
ONE SOURCE. POWERFUL SOLUTIONS.
($ in millions)
Q4-11
Q4-10
Q4-11
Q4-10
Q3-11
Technology, Data and Analytics
83.1
$
79.6
$
43.3%
43.4%
43.5%
Loan Transaction Services
80.2
114.8
23.4%
26.3%
19.9%
Corporate and Other
(28.3)
(21.7)
nm
mn
nm
Total EBITDA
135.1
$
172.7
$
25.3%
27.9%
22.1%
Note: columns may not total due to rounding.
EBITDA $
EBITDA Margin % |
 Guidance –
Q1 2012
Revenue
$470 -
$490 million
EPS
$0.50 -
$0.55
10
ONE SOURCE. POWERFUL SOLUTIONS. |