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| 8-K - FORM 8-K - CORELOGIC, INC. | form8-kq42011.htm |
NEWS | FOR IMMEDIATE RELEASE | |
Exhibit 99.1
CORELOGIC REPORTS FOURTH-QUARTER AND FULL-YEAR 2011 FINANCIAL RESULTS
• | Fourth quarter and full year results for 2011 exceed previous guidance. |
• | Fourth quarter revenues up 9.5% benefiting from strong data, analytics and mortgage services volumes. Full year 2011 revenues up 4.6% despite challenging market conditions. |
• | Project 30 cost reduction target of $20 million achieved; actions taken to secure significant portion of 2012 targets. |
• | Company expects to reduce debt by at least $100 million during the first half of 2012; year-end 2011 cash balance of $259.3 million, up 87.0% from September 30, 2011. |
Santa Ana, Calif., February 27, 2012 - CoreLogic (NYSE:CLGX), a leading provider of information, analytics and business services, today reported financial results for the fourth quarter and full-year ended December 31, 2011.
Anand Nallathambi, President and Chief Executive Officer, said, “CoreLogic is exiting 2011 with strong and accelerating momentum. During the fourth quarter we reorganized the business to focus on three core segments: data and analytics, mortgage origination services and default services. This new streamlined organization, together with CoreLogic's exit of non-core businesses in the third quarter and the recent addition of key senior leadership talent, has sharpened our management and client focus which we believe will allow us to deliver superior results.”
Nallathambi continued, “We enter 2012 with a streamlined, higher-margin business portfolio that is focused on delivering world-class data, analytics and services to our clients. This year we expect double-digit revenue growth in our data and analytics segment and we believe our mortgage origination and default services segments are well positioned to outperform their respective markets.”
“During the fourth quarter we continued to aggressively drive productivity and reduce costs. We realized $20 million in cost reductions in 2011 and, importantly, took actions that should secure about half of our 2012 Project 30 savings targets” added Frank Martell, Chief Financial Officer. “CoreLogic nearly doubled its cash on hand during the fourth quarter and we plan to deploy some of those funds in the first half of 2012 to reduce our debt balances by at least $100 million. We also expect to build our liquidity and capital resources in 2012.”
Certain information contained in this document is presented on a non-GAAP adjusted basis. For more information about the Company's adjusted results, as well as other non-GAAP financial measures used by management, please refer to the Company's quarterly financial supplement on the CoreLogic investor website and discussion on the Use of Non-GAAP Financial Measures, as well as the Reconciliation of certain GAAP to Non-GAAP Financial Measures For Consolidated CoreLogic, Inc. contained in this release.
Fourth Quarter Financial Highlights
• | Consolidated fourth quarter revenues increased 9.5% year-over-year to $345.4 million. Data & Analytics (D&A) revenues were up 25.8% to $138.5 million reflecting the acquisition of RP Data, higher analytics revenues and growth in advisory projects. Mortgage Origination Services (MOS) revenues rose 9.4% to $134.4 million due primarily to the acquisition of Dorado Network Systems and higher flood certification volumes which more than offset the impact of lower origination volumes. Default Services (DS) revenues of $78.9 million were down 11.8% from the prior year reflecting the exit of unprofitable product lines and lower software and business process outsourcing revenues, partially offset by higher field services volumes. |
• | Fourth quarter income from continuing operations totaled $15.4 million, a $17.8 million decrease from the same prior year period. Fourth quarter 2011 income from continuing operations included a non-recurring charge associated with facility consolidations of $14.2 million, one-time investments in improving operating efficiency and the review of strategic alternatives totaling $7.1 million, Project 30-related severance of $6.2 million and higher depreciation and amortization of $8.7 million. These items were partially offset by an $8.1 million gain on the sale of real estate assets and the benefits of higher revenues and cost savings. |
• | Fourth quarter adjusted EBITDA totaled $84.3 million, a decline of 8.2% from the prior year. Adjusted EBITDA margins for the fourth quarter were 23.4%. D&A segment adjusted EBITDA increased 28.0% reflecting revenue growth and the benefit of cost savings initiatives. Adjusted EBITDA for the MOS segment was modestly below prior year levels as cost productivity in the Company's origination-related servicing businesses was more than offset by lower equity in earnings of affiliates. Adjusted EBITDA attributable to the DS segment was down 48.8% primarily as a result of lower revenues, an unfavorable shift in product mix and higher technology-related expenses. |
• | Loss from continuing operations, net of tax per diluted share was $0.06 for the fourth quarter. Adjusted income from continuing operations, net of tax per diluted share from continuing operations totaled $0.23 for the fourth quarter. |
Cost Reduction Program
• | As part of its previously announced Project 30 program, the Company achieved $20.0 million in cost savings during 2011. These cost reductions were principally related to workforce reductions in corporate shared services and information technology (IT), the outsourcing of certain IT and business process functions and cuts in spending on outside services. |
• | The Company expects to achieve an incremental $60 million in cost savings in 2012. Specific actions, including reductions in force, taken during the second half of 2011 in the areas of IT and corporate shared support functions and real estate consolidation are expected to account for over half of the 2012 targeted savings. During the fourth quarter, the Company reduced its U.S.-based workforce by approximately 7%. In addition, the Company completed real estate consolidations which are expected to generate ongoing cost savings in 2012 and beyond. |
Liquidity and Capital Resources
• | At December 31, 2011, the Company had cash of $259.3 million, up $120.6 million from September 30, 2011. Increased cash balances reflect positive cash inflows from operations, proceeds from the sale of certain minority equity investments and Company-owned real estate as well as a tax refund related to the 2010 sale of the Company's employer and litigation services business. |
• | Total debt as of December 31, 2011 was $908.3 million, down $2.8 million from September 30, 2011, with available capacity on the Company's credit facility of approximately $499.0 million. The Company expects to reduce indebtedness by at least $100 million during the first half of 2012 through scheduled and voluntary principal payments. |
• | The Company will continue to consider the repurchase of common shares on an opportunistic basis as part of an existing Board of Directors authorization. |
Revised Segment Reporting
• | As part of the Company's focus on creating a more streamlined and higher-margin business, the Company exited certain non-core businesses during the third quarter and simplified its organizational structure and financial presentation in the fourth quarter of 2011. As a result, effective with the fourth quarter of 2011 the Company will be reporting its financial results in three business segments: Data and Analytics; Mortgage Origination Services; and Default Services. The Company believes this new organization structure will simplify the external review and analysis of its results. Revised segment results (on an unaudited basis) can be accessed at http://investor.corelogic.com. |
Financial Guidance
• | Full year 2011 adjusted revenues, adjusted EBITDA and adjusted EPS from continuing operations totaled $1,390.6 million, $310.3 million and $0.85, respectively, which exceeded previous guidance. |
• | The Company reconfirms its guidance for 2012 which was issued on January 19, 2012. |
($ in millions, except per share amounts) | 2012 Guidance |
Adjusted Revenue | $1,425 - $1,475 |
Adjusted EBITDA | $335 - $360 |
Adjusted EPS | $0.95 - $1.05 |
Teleconference/Webcast
CoreLogic management will host a live webcast and conference call on Tuesday, February 28, 2012, at 8:00 a.m. Pacific time (11:00 a.m. Eastern time) to discuss these results. All interested parties are invited to listen to the event via webcast on the CoreLogic website at http://investor.corelogic.com. The discussion is also available through dial-in number 1-800-798-2801 for U.S./Canada participants or 617-614-6205 for international participants using Conference ID 24200512.
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 54388010.
Additional detail on the Company's fourth quarter financial results is included in the quarterly financial supplement, available on the Investor Relations page at http://investor.corelogic.com.
Media Contact: Alyson Austin, office phone: 714-250-6180, e-mail: alaustin@corelogic.com
Investor Contact: Dan Smith, office phone: 703-610-5410, e-mail: danlsmith@corelogic.com
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading provider of information, analytics and business services. 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 one of 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. The Company, headquartered in Santa Ana, Calif., has more than 5,000 employees globally. For more information visit www.corelogic.com.
Safe Harbor / Forward Looking Statements
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 overall financial performance, including future revenue and earnings growth, future margin improvement and future adjusted EBITDA and EPS performance, estimated future cost savings and the impact thereof; mortgage market trends; reduction in indebtedness; and anticipated workforce reductions. Risk and uncertainties exist that may cause the 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: limitations on access to data from external sources, including government and public record sources; 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; compromises in the security of our data transmissions, including the transmission of confidential information or systems interruptions; 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; our cost reduction initiatives and our ability to significantly decrease future allocated costs and other amounts in connection therewith; risks related to our international operations and the outsourcing of various business process and information technology services to third parties, including potential disruptions to services and customers and inability to achieve cost savings; and impairments in our goodwill or other intangible assets. 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 and adjusted EBITDA margin which is adjusted to exclude historical corporate expense of the spun-off businesses, net realized investment gains/losses, employee separation 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.
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.
The Company is not able to provide a reconciliation of projected adjusted EBITDA or projected adjusted earnings per share to expected reported results due to the unknown effect, timing and potential significance of special charges or gains.
(Additional Financial Data Follows)
CoreLogic, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||
(in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Operating revenue | $ | 345,398 | $ | 315,367 | $ | 1,338,547 | $ | 1,280,276 | |||||||
External cost of revenue | 76,599 | 68,111 | 288,056 | 282,824 | |||||||||||
Salaries and benefits | 139,353 | 127,172 | 553,898 | 533,268 | |||||||||||
Other operating expenses | 82,623 | 64,202 | 292,362 | 255,620 | |||||||||||
Depreciation and amortization | 31,387 | 22,683 | 115,546 | 94,881 | |||||||||||
Total operating expenses | 329,962 | 282,168 | 1,249,862 | 1,166,593 | |||||||||||
Income from continuing operations | 15,436 | 33,199 | 88,685 | 113,683 | |||||||||||
Interest expense: | |||||||||||||||
Interest income | 823 | 1,440 | 4,827 | 4,269 | |||||||||||
Interest expense | 15,336 | 9,169 | 63,117 | 34,494 | |||||||||||
Total interest expense, net | (14,513 | ) | (7,729 | ) | (58,290 | ) | (30,225 | ) | |||||||
(Loss)/gain on investments and other, net | (26,778 | ) | (10,227 | ) | 60,005 | (10,885 | ) | ||||||||
(Loss)/income from continuing operations before equity in earnings of affiliates and income taxes | (25,855 | ) | 15,243 | 90,400 | 72,573 | ||||||||||
(Benefit)/provision for income taxes | (9,654 | ) | 26,130 | 67,175 | 30,323 | ||||||||||
(Loss)/income from continuing operations before equity in earnings of affiliates | (16,201 | ) | (10,887 | ) | 23,225 | 42,250 | |||||||||
Equity in earnings of affiliates, net of tax | 9,877 | 12,049 | 30,270 | 41,641 | |||||||||||
Net (loss)/income from continuing operations | (6,324 | ) | 1,162 | 53,495 | 83,891 | ||||||||||
Loss from discontinued operations, net of tax | (7,981 | ) | (878 | ) | (119,106 | ) | (94,566 | ) | |||||||
Loss on sale of discontinued operations, net of tax | — | (18,985 | ) | — | (18,985 | ) | |||||||||
Net loss | (14,305 | ) | (18,701 | ) | (65,611 | ) | (29,660 | ) | |||||||
Less: Net income attributable to noncontrolling interests | (163 | ) | 9,041 | 980 | 37,670 | ||||||||||
Net loss attributable to CoreLogic | $ | (14,142 | ) | $ | (27,742 | ) | $ | (66,591 | ) | $ | (67,330 | ) | |||
Amounts attributable to CoreLogic stockholders: | |||||||||||||||
(Loss)/income from continuing operations, net of tax | $ | (6,161 | ) | $ | (7,879 | ) | $ | 52,515 | $ | 46,221 | |||||
(Loss)/income from discontinued operations, net of tax | (7,981 | ) | (878 | ) | (119,106 | ) | (94,566 | ) | |||||||
Loss on sale of discontinued operations, net of tax | — | (18,985 | ) | — | (18,985 | ) | |||||||||
Net loss | $ | (14,142 | ) | $ | (27,742 | ) | $ | (66,591 | ) | $ | (67,330 | ) | |||
Basic loss per share: | |||||||||||||||
(Loss)/income from continuing operations, net of tax | $ | (0.06 | ) | $ | (0.07 | ) | $ | 0.48 | $ | 0.41 | |||||
(Loss)/income from discontinued operations, net of tax | (0.07 | ) | (0.01 | ) | (1.09 | ) | (0.85 | ) | |||||||
Loss on sale of discontinued operations, net of tax | — | (0.16 | ) | — | (0.17 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.61 | ) | $ | (0.61 | ) | |||
Diluted loss per share: | |||||||||||||||
(Loss)/income from continuing operations, net of tax | $ | (0.06 | ) | $ | (0.07 | ) | $ | 0.48 | $ | 0.41 | |||||
(Loss)/income from discontinued operations, net of tax | (0.07 | ) | (0.01 | ) | (1.09 | ) | (0.84 | ) | |||||||
Loss on sale of discontinued operations, net of tax | — | (0.16 | ) | — | (0.17 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.61 | ) | $ | (0.60 | ) | |||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 106,508 | 116,344 | 109,122 | 111,529 | |||||||||||
Diluted | 106,508 | 116,344 | 109,712 | 112,363 | |||||||||||
CoreLogic, Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except par value) | As of December 31, | ||||||
Assets | 2011 | 2010 | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 259,266 | $ | 426,212 | |||
Marketable securities | 20,884 | 75,221 | |||||
Accounts receivable (less allowance for doubtful accounts of $17,365 and $12,314 in 2011 and 2010, respectively) | 213,339 | 176,413 | |||||
Prepaid expenses and other current assets | 51,659 | 42,793 | |||||
Income tax receivable | 15,110 | 30,587 | |||||
Deferred income tax assets, current | 39,584 | 30,782 | |||||
Due from FAFC, net | 621 | — | |||||
Assets of discontinued operations | 55,516 | 262,275 | |||||
Total current assets | 655,979 | 1,044,283 | |||||
Property and equipment, net | 214,237 | 197,426 | |||||
Goodwill | 1,472,206 | 1,289,888 | |||||
Other intangible assets, net | 164,365 | 109,850 | |||||
Capitalized data and database costs, net | 304,006 | 211,331 | |||||
Investment in affiliates, net | 113,809 | 165,709 | |||||
Deferred income tax assets (see Note 1) | 38,305 | 6,344 | |||||
Restricted cash | 22,044 | 21,095 | |||||
Other assets | 125,120 | 180,881 | |||||
Total assets | $ | 3,110,071 | $ | 3,226,807 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 149,452 | $ | 141,711 | |||
Accrued salaries and benefits | 86,444 | 76,212 | |||||
Deferred revenue, current | 201,689 | 186,031 | |||||
Mandatorily redeemable noncontrolling interests | — | 72,000 | |||||
Current portion of long-term debt | 62,268 | 233,452 | |||||
Due to FAFC, net | — | 18,097 | |||||
Liabilities of discontinued operations | 27,399 | 40,162 | |||||
Total current liabilities | 527,252 | 767,665 | |||||
Long-term debt, net of current | 846,027 | 487,437 | |||||
Deferred revenue, net of current | 338,799 | 350,827 | |||||
Deferred income tax liabilities | 18,383 | — | |||||
Other liabilities | 134,789 | 83,755 | |||||
Total liabilities | 1,865,250 | 1,689,684 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
CoreLogic, Inc.'s (CoreLogic) stockholders' equity: | |||||||
Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $0.00001 par value; 180,000 shares authorized; 106,544 and 115,499 shares issued and outstanding as of December 31, 2011 and 2010, respectively | 1 | 1 | |||||
Additional paid-in capital | 1,053,447 | 1,229,806 | |||||
Retained earnings (see Note 1) | 209,389 | 289,018 | |||||
Accumulated other comprehensive (loss)/income | (20,316 | ) | 15,943 | ||||
Total CoreLogic stockholders' equity | 1,242,521 | 1,534,768 | |||||
Noncontrolling interests | 2,300 | 2,355 | |||||
Total equity | 1,244,821 | 1,537,123 | |||||
Total liabilities and equity | $ | 3,110,071 | $ | 3,226,807 | |||
Note 1 - Certain balance sheet amounts in 2010 have been revised to reflect the correction of $9.6 million in tax adjustments relating to prior period financial statements.
RECONCILIATION OF NET INCOME/(LOSS) FROM CONTINUING OPERATIONS TO EBITDA
FOR THE THREE MONTHS ENDED DECEMBER 31, 2011
(unaudited - in thousands) | Net income/(loss) from continuing operations | Depreciation and amortization | Total interest expense | Provision for income taxes | Taxes in equity in earnings of affiliates | EBITDA | |||||||||||||||||
Data & Analytics | $ | 19,643 | $ | 17,721 | $ | 879 | $ | — | $ | — | $ | 38,243 | |||||||||||
Mortgage Origination Services | 13,313 | 5,886 | (736 | ) | — | — | 18,463 | ||||||||||||||||
Default Services | 5,426 | 3,532 | (73 | ) | — | — | 8,885 | ||||||||||||||||
Corporate | (44,706 | ) | 4,248 | 14,443 | (9,654 | ) | 5,629 | (30,040 | ) | ||||||||||||||
$ | (6,324 | ) | $ | 31,387 | $ | 14,513 | $ | (9,654 | ) | $ | 5,629 | $ | 35,551 | ||||||||||
RECONCILIATION TO NON-GAAP FINANCIAL MEASURES
FOR THE THREE MONTHS ENDED DECEMBER 31, 2011
(unaudited - in thousands) | As Reported (1) | Equity in Earnings | Severance | Investment Loss/(Gains) | Asset Impairment | Efficiency Investments | Other (2) | Adjusted | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 138,475 | $ | 424 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 138,899 | ||||||||||||||||
Mortgage Origination Services | 134,360 | 14,939 | — | — | — | — | — | 149,299 | ||||||||||||||||||||||||
Default Services | 78,902 | (116 | ) | — | — | — | — | — | 78,786 | |||||||||||||||||||||||
Corporate | (6,339 | ) | 259 | — | — | — | — | — | (6,080 | ) | ||||||||||||||||||||||
$ | 345,398 | $ | 15,506 | $ | — | $ | — | $ | — | $ | — | — | $ | 360,904 | ||||||||||||||||||
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 19,219 | $ | 424 | $ | 1,473 | $ | — | $ | 438 | $ | — | $ | — | $ | 21,554 | ||||||||||||||||
Mortgage Origination Services | (1,626 | ) | 14,939 | 596 | 26,434 | — | — | — | 40,343 | |||||||||||||||||||||||
Default Services | 5,543 | (116 | ) | 378 | 255 | 2,279 | — | — | 8,339 | |||||||||||||||||||||||
Corporate | (48,991 | ) | 259 | 3,768 | 1,712 | — | 3,428 | 10,687 | (29,137 | ) | ||||||||||||||||||||||
$ | (25,855 | ) | $ | 15,506 | $ | 6,215 | $ | 28,401 | $ | 2,717 | $ | 3,428 | 10,687 | $ | 41,099 | (3) | ||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||
Data & Analytics | 38,243 | — | 1,473 | — | — | — | — | 39,716 | ||||||||||||||||||||||||
Mortgage Origination Services | 18,463 | — | 596 | 26,434 | — | — | — | 45,493 | ||||||||||||||||||||||||
Default Services | 8,885 | — | 378 | 255 | — | — | — | 9,518 | ||||||||||||||||||||||||
Corporate | (30,040 | ) | — | 3,768 | 1,712 | — | 3,428 | 10,687 | (10,445 | ) | ||||||||||||||||||||||
$ | 35,551 | $ | — | $ | 6,215 | $ | 28,401 | $ | — | $ | 3,428 | 10,687 | $ | 84,282 | ||||||||||||||||||
(1) | As reported is defined as GAAP financial results for revenues and income/(loss) from continuing operations before equity in earnings of affiliates and income taxes, except for EBITDA which is a non-GAAP measure, and includes pre-tax equity in earnings from affiliates, and is reconciled in the table above. |
(2) | Non-recurring settlements, legal fees, strategic advice, professional fees related to acquisitions, gains/losses on sale of operating assets, lease exit costs and other. |
(3) | Adjusted earnings per share is derived from adjusted income from continuing operations before equity in earnings of affiliates and income taxes, net of planned tax rate of 40%, divided by weighted average diluted common shares [$41,099 * (1 -40%) / 107,019 = $0.23]. |
RECONCILIATION OF NET INCOME/(LOSS) FROM CONTINUING OPERATIONS TO EBITDA
FOR THE THREE MONTHS ENDED DECEMBER 31, 2010
(unaudited - in thousands) | Net income/(loss) from continuing operations | Depreciation and amortization | Total interest expense | Provision for income taxes | Taxes in equity in earnings of affiliates | EBITDA | |||||||||||||||||
Data & Analytics | $ | 12,425 | $ | 12,362 | $ | (589 | ) | $ | — | $ | — | $ | 24,198 | ||||||||||
Mortgage Origination Services | 44,256 | 4,977 | (1,301 | ) | — | — | 47,932 | ||||||||||||||||
Default Services | 20,663 | 1,320 | 3 | — | — | 21,986 | |||||||||||||||||
Corporate | (76,182 | ) | 4,024 | 9,616 | 26,130 | 8,199 | (28,213 | ) | |||||||||||||||
$ | 1,162 | $ | 22,683 | $ | 7,729 | $ | 26,130 | $ | 8,199 | $ | 65,903 | ||||||||||||
RECONCILIATION TO NON-GAAP FINANCIAL MEASURES
FOR THE THREE MONTHS ENDED DECEMBER 31, 2010
(unaudited - in thousands) | As Reported (1) | Equity in Earnings | Severance | Investment Loss/(Gains) | Asset Impairment | Other (2) | Adjusted | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
Data & Analytics | $ | 110,117 | $ | 1,025 | $ | — | $ | — | $ | — | $ | — | $ | 111,142 | ||||||||||||||
Mortgage Origination Services | 122,807 | 19,461 | — | — | — | 526 | 142,794 | |||||||||||||||||||||
Default Services | 89,496 | 72 | — | — | — | — | 89,568 | |||||||||||||||||||||
Corporate | (7,053 | ) | (311 | ) | — | — | — | — | (7,364 | ) | ||||||||||||||||||
$ | 315,367 | $ | 20,247 | $ | — | $ | — | $ | — | 526 | $ | 336,140 | ||||||||||||||||
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes | ||||||||||||||||||||||||||||
Data & Analytics | $ | 11,400 | $ | 1,025 | $ | 1,108 | $ | — | $ | 431 | $ | 5,718 | $ | 19,682 | ||||||||||||||
Mortgage Origination Services | 24,795 | 19,461 | 95 | — | 345 | 526 | 45,222 | |||||||||||||||||||||
Default Services | 20,591 | 72 | (26 | ) | (3,353 | ) | 159 | — | 17,443 | |||||||||||||||||||
Corporate | (41,543 | ) | (311 | ) | 850 | 15,086 | — | 5,860 | (20,058 | ) | ||||||||||||||||||
$ | 15,243 | $ | 20,247 | $ | 2,027 | $ | 11,733 | $ | 935 | 12,104 | $ | 62,289 | (3) | |||||||||||||||
EBITDA | ||||||||||||||||||||||||||||
Data & Analytics | $ | 24,198 | $ | — | $ | 1,108 | $ | — | $ | — | $ | 5,718 | $ | 31,024 | ||||||||||||||
Mortgage Origination Services | 47,932 | — | 95 | — | — | 526 | 48,553 | |||||||||||||||||||||
Default Services | 21,986 | — | (26 | ) | (3,353 | ) | — | — | 18,607 | |||||||||||||||||||
Corporate | (28,213 | ) | — | 850 | 15,086 | — | 5,860 | (6,417 | ) | |||||||||||||||||||
$ | 65,903 | $ | — | $ | 2,027 | $ | 11,733 | $ | — | 12,104 | $ | 91,767 | ||||||||||||||||
(1) | As reported is defined as GAAP financial results for revenues and income/(loss) from continuing operations before equity in earnings of affiliates and income taxes, except for EBITDA which is a non-GAAP measure, and includes pre-tax equity in earnings from affiliates, and is reconciled in the table above. |
(2) | Non-recurring settlements, legal fees, strategic advice, professional fees related to acquisitions, gains/losses on sale of operating assets, lease exit costs and other. |
(3) | Adjusted earnings per share is derived from adjusted income from continuing operations before equity in earnings of affiliates and income taxes, net of planned tax rate of 40%, divided by weighted average diluted common shares [$62,289 * (1 -40%) / 117,171 = $0.32]. |
RECONCILIATION OF NET INCOME/(LOSS) FROM CONTINUING OPERATIONS TO EBITDA
FOR THE YEAR ENDED DECEMBER 31, 2011
(unaudited - in thousands) | Net income/(loss) from continuing operations | Depreciation and amortization | Total interest expense | Provision for income taxes | Taxes in equity in earnings of affiliates | EBITDA | |||||||||||||||||
Data & Analytics | $ | 70,039 | $ | 65,957 | $ | 365 | $ | — | $ | — | $ | 136,361 | |||||||||||
Mortgage Origination Services | 126,616 | 23,782 | (2,895 | ) | — | — | 147,503 | ||||||||||||||||
Default Services | 44,310 | 7,484 | (214 | ) | — | — | 51,580 | ||||||||||||||||
Corporate | (187,470 | ) | 18,323 | 61,034 | 67,175 | 19,225 | (21,713 | ) | |||||||||||||||
$ | 53,495 | $ | 115,546 | $ | 58,290 | $ | 67,175 | $ | 19,225 | $ | 313,731 | ||||||||||||
RECONCILIATION TO NON-GAAP FINANCIAL MEASURES
FOR THE YEAR ENDED DECEMBER 31, 2011
(unaudited - in thousands) | As Reported (1) | Equity in Earnings | Severance | Investment Loss/(Gains) | Asset Impairment | Efficiency Investments | Other (2) | Adjusted | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 525,350 | $ | 1,512 | $ | — | $ | — | $ | — | $ | — | $ | 2,562 | $ | 529,424 | ||||||||||||||||
Mortgage Origination Services | 504,872 | 47,673 | — | — | — | — | — | 552,545 | ||||||||||||||||||||||||
Default Services | 329,273 | (245 | ) | — | — | — | — | — | 329,028 | |||||||||||||||||||||||
Corporate | (20,948 | ) | 555 | — | — | — | — | — | (20,393 | ) | ||||||||||||||||||||||
$ | 1,338,547 | $ | 49,495 | $ | — | $ | — | $ | — | $ | — | 2,562 | $ | 1,390,604 | ||||||||||||||||||
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 68,527 | $ | 1,512 | $ | 2,073 | $ | 738 | $ | 5,749 | $ | 1,595 | $ | 2,562 | $ | 82,756 | ||||||||||||||||
Mortgage Origination Services | 78,943 | 47,673 | 2,420 | 1,538 | 502 | 230 | — | 131,306 | ||||||||||||||||||||||||
Default Services | 44,555 | (245 | ) | 1,719 | 743 | 2,279 | — | — | 49,051 | |||||||||||||||||||||||
Corporate | (101,625 | ) | 555 | 7,115 | (63,116 | ) | 9,595 | 22,236 | 16,700 | (108,540 | ) | |||||||||||||||||||||
$ | 90,400 | $ | 49,495 | $ | 13,327 | $ | (60,097 | ) | $ | 18,125 | $ | 24,061 | 19,262 | $ | 154,573 | (3) | ||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||
Data & Analytics | 136,361 | — | 2,073 | 738 | — | 1,595 | 2,562 | 143,329 | ||||||||||||||||||||||||
Mortgage Origination Services | 147,503 | — | 2,420 | 1,538 | — | 230 | — | 151,691 | ||||||||||||||||||||||||
Default Services | 51,580 | — | 1,719 | 743 | — | — | — | 54,042 | ||||||||||||||||||||||||
Corporate | (21,713 | ) | — | 7,115 | (63,116 | ) | — | 22,236 | 16,700 | (38,778 | ) | |||||||||||||||||||||
$ | 313,731 | $ | — | $ | 13,327 | $ | (60,097 | ) | $ | — | $ | 24,061 | 19,262 | $ | 310,284 | |||||||||||||||||
(1) | As reported is defined as GAAP financial results for revenues and income/(loss) from continuing operations before equity in earnings of affiliates and income taxes, except for EBITDA which is a non-GAAP measure, and includes pre-tax equity in earnings from affiliates, and is reconciled in the table above. |
(2) | Non-recurring settlements, legal fees, strategic advice, professional fees related to acquisitions, gains/losses on sale of operating assets, lease exit costs and other. |
(3) | Adjusted earnings per share is derived from adjusted income from continuing operations before equity in earnings of affiliates and income taxes, net of planned tax rate of 40%, divided by weighted average diluted common shares [$154,573 * (1 -40%) / 109,712 = $0.85]. |
RECONCILIATION OF NET INCOME/(LOSS) FROM CONTINUING OPERATIONS TO EBITDA
FOR THE YEAR ENDED DECEMBER 31, 2010
(unaudited - in thousands) | Net income/(loss) from continuing operations | Depreciation and amortization | Total interest expense | Provision for income taxes | Taxes in equity in earnings of affiliates | EBITDA | |||||||||||||||||
Data & Analytics | $ | 89,658 | $ | 47,459 | $ | 301 | $ | — | $ | — | $ | 137,418 | |||||||||||
Mortgage Origination Services | 150,855 | 19,108 | (1,490 | ) | — | — | 168,473 | ||||||||||||||||
Default Services | 81,311 | 5,446 | 3 | — | — | 86,760 | |||||||||||||||||
Corporate | (237,933 | ) | 22,868 | 31,412 | 30,323 | 27,742 | (125,588 | ) | |||||||||||||||
$ | 83,891 | $ | 94,881 | $ | 30,226 | $ | 30,323 | $ | 27,742 | $ | 267,063 | ||||||||||||
RECONCILIATION TO NON-GAAP FINANCIAL MEASURES
FOR THE YEAR ENDED DECEMBER 31, 2010
(unaudited - in thousands) | As Reported (1) | Equity in Earnings | Severance | Investment Loss/(Gains) | Asset Impairment | Spin & Legacy Corp. Costs | Other (2) | Adjusted | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 444,690 | $ | 4,606 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 449,296 | ||||||||||||||||
Mortgage Origination Services | 484,940 | 64,588 | — | — | — | — | 526 | 550,054 | ||||||||||||||||||||||||
Default Services | 368,536 | 755 | — | — | — | — | — | 369,291 | ||||||||||||||||||||||||
Corporate | (17,890 | ) | (566 | ) | — | — | — | (5,992 | ) | 3,827 | (20,621 | ) | ||||||||||||||||||||
$ | 1,280,276 | $ | 69,383 | $ | — | $ | — | $ | — | $ | (5,992 | ) | 4,353 | $ | 1,348,020 | |||||||||||||||||
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes | ||||||||||||||||||||||||||||||||
Data & Analytics | $ | 85,052 | $ | 4,606 | $ | 1,253 | $ | (752 | ) | $ | 431 | $ | — | $ | 5,718 | $ | 96,308 | |||||||||||||||
Mortgage Origination Services | 86,267 | 64,588 | 1,905 | 1,400 | 345 | — | 526 | 155,031 | ||||||||||||||||||||||||
Default Services | 80,556 | 755 | 208 | (3,353 | ) | 159 | — | — | 78,325 | |||||||||||||||||||||||
Corporate | (179,302 | ) | (566 | ) | 2,685 | 12,014 | — | 69,022 | 7,557 | (88,590 | ) | |||||||||||||||||||||
$ | 72,573 | $ | 69,383 | $ | 6,051 | $ | 9,309 | $ | 935 | $ | 69,022 | 13,801 | $ | 241,074 | (3) | |||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||
Data & Analytics | 137,418 | — | 1,253 | (752 | ) | — | — | 5,718 | 143,637 | |||||||||||||||||||||||
Mortgage Origination Services | 168,473 | — | 1,905 | 1,400 | — | — | 526 | 172,304 | ||||||||||||||||||||||||
Default Services | 86,760 | — | 208 | (3,353 | ) | — | — | — | 83,615 | |||||||||||||||||||||||
Corporate | (125,588 | ) | — | 2,685 | 12,014 | — | 57,632 | 7,557 | (45,700 | ) | ||||||||||||||||||||||
$ | 267,063 | $ | — | $ | 6,051 | $ | 9,309 | $ | — | $ | 57,632 | 13,801 | $ | 353,856 | ||||||||||||||||||
(1) | As reported is defined as GAAP financial results for revenues and income/(loss) from continuing operations before equity in earnings of affiliates and income taxes, except for EBITDA which is a non-GAAP measure, and includes pre-tax equity in earnings from affiliates, and is reconciled in the table above. |
(2) | Non-recurring settlements, legal fees, strategic advice, professional fees related to acquisitions, gains/losses on sale of operating assets, lease exit costs and other. |
(3) | Adjusted earnings per share is derived from adjusted income from continuing operations before equity in earnings of affiliates and income taxes, net of planned tax rate of 40%, divided by weighted average diluted common shares [$241,074 * (1 -40%) / 112,363 = $1.29]. |