Black Knight InfoServ, LLC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - Q1 2012 8-K - Black Knight InfoServ, LLC	q120128k.htm
EX-99.2 - EXHIBIT 99.2 - Black Knight InfoServ, LLC	a1q12supplementalmateria.htm

Exhibit 99.1

Press Release

Investors: Media:

Nancy Murphy Michelle Kersch

(904) 854-8640 (904) 854-5043

nancy.murphy@lpsvcs.com michelle.kersch@lpsvcs.com

Lender Processing Services Reports First Quarter 2012 Earnings

Adjusted EPS of $0.59 and free cash flow of $68.7 million

JACKSONVILLE, Fla. - May 3, 2012 - Lender Processing Services, Inc. (NYSE:LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced financial results for the first quarter 2012.

Highlights


•	Revenue of $506 million


•	GAAP net earnings of $47.1 million or $0.56 per diluted share


•	Adjusted net earnings of $49.5 million or $0.59 per diluted share reflecting the add back of purchase amortization


•	Adjusted free cash flow of $68.7 million


•	Signed 2 new MSP Servicing Technology customers

“LPS is off to a positive start in 2012. We delivered results that exceeded our outlook, continued to expand key customer relationships by delivering outstanding technology and service solutions, and moved forward with our commitment to operational excellence,” said Hugh Harris, president and chief executive officer of LPS. “We will continue to leverage and invest in our comprehensive technology solutions to help our customers address evolving servicing and regulatory standards and position LPS for long-term growth.”

“Although the operating environment remained challenging, we generated strong profitability, margins and cash flow,” commented Tom Schilling, chief financial officer. “Our Technology, Data and Analytics segment had another solid quarter of revenue growth and our Origination Services benefited from strong refinance volumes, while Default Services continued to be negatively affected by industry-wide foreclosure delays.”

Consolidated First Quarter Performance

First quarter 2012 revenue was $506.0 million, a decrease of 5.8% from the same period in the prior year due to a decline in Default Services revenue. Adjusted operating income was $94.3 million compared to $129.7 million in the first quarter 2011, while GAAP operating income was $94.3 million compared to $110.4 million in the first quarter of 2011. Adjusted net earnings were $49.5 million, or $0.59 per diluted share, compared to $71.1 million, or $0.81 per diluted share, in the first quarter 2011. Adjusted net earnings includes a purchase price amortization add-back of $0.03 per share in the current quarter and $0.04 per diluted share in the first quarter 2011. In addition, first quarter 2011 adjusted net earnings exclude a charge of $0.14 per diluted share related to cost reduction initiatives.

Net cash provided by operating activities was $90.1 million compared to $120.4 million in the first quarter of 2011. Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) was $68.7 million in the first quarter of 2012 compared to $101.3 million in the same period last year. During the quarter, the company reduced debt by $17.3 million, paid regular dividends of $8.4 million and ended the first quarter with cash of $103.7 million, up $26.4 million from the prior quarter.

Technology, Data and Analytics Segment

Revenue for the Technology, Data and Analytics segment was $178.1 million, a 5.7% increase from first quarter 2011. Servicing Technology (MSP) revenue was $108.4 million, a 4.9% increase; Origination Technology revenue was $21.4 million, a 13.7% increase; Default Technology revenue was $31.6 million, an 8.3% increase; and Data and Analytics revenue was $16.9 million, a 2.6% decrease. Operating income was $54.0 million, a decrease of 4.7% from first quarter 2011, primarily as a result of lower income from Origination Technology driven by higher expenses related to growth initiatives, partially offset by higher income from Servicing Technology.

Transaction Services Segment

Revenue for the Transaction Services segment was $329.6 million, a decrease of 10.9% from first quarter 2011. Origination Services revenue was $146.8 million, a 13.8% increase from the first quarter of 2011 as a result of a higher refinance origination volumes. Default Services revenue was $182.9 million, a 24.2% decrease from the first quarter 2011, primarily due to the continued slowdown in the initiation of industry-wide mortgage foreclosure proceedings. Operating income for the segment was $51.5 million, a decrease of 38.8% from the same period in the prior year, primarily due to lower income from the Default Services business.

Corporate and Other

Adjusted net corporate expenses in the first quarter of 2012 were $11.1 million compared to $11.0 million in the prior year quarter.

Outlook

Based on the current environment, the company expects second quarter 2012 revenue to be in the range of $500 million to $520 million and adjusted net earnings per diluted share to be in the range of

$0.58 to $0.62.

Financial Reporting Reclassification

The company made minor reclassification adjustments to its financial reporting structure effective in the first quarter 2012. The reclassifications resulted in the transfer of revenue, expenses and operating income between reporting segments; the allocation of certain corporate costs into the segments; and a change in the cost and expense presentation in the consolidated statement of earnings. All prior periods included in this release and related financial statement exhibits have been reclassified to conform to the current period presentation. The reclassifications do not impact previously reported consolidated revenues, operating income, net earnings or earnings per share of LPS.

Earnings Conference Call and Webcast

LPS will host a conference call today at 10:00 a.m. ET with a live webcast on the Investor Relations section of its website at www.lpsvcs.com. Earnings information including this press release and supplemental material is available on the website. A replay of the webcast will be available on the website shortly after the call where it will be archived for one month. A replay of the call will be available until May 10, 2012, by dialing 888-203-1112 (access code: 2865489).

About Lender Processing Services

Lender Processing Services (NYSE: LPS) delivers comprehensive technology solutions and services, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers and investors. As a proven and trusted partner with deep client relationships, LPS offers the only end-to-end suite of solutions that provides major U.S. banks and many federal government agencies the technology and data needed to support mortgage lending and servicing operations, meet unique regulatory and compliance requirements and mitigate risk.

These integrated solutions support origination, servicing, portfolio retention and default servicing. LPS' servicing solutions include MSP, the industry's leading loan-servicing platform which is used to service approximately 50 percent of all U.S. mortgages by dollar volume. The company also provides proprietary data and analytics for the mortgage, real estate and capital markets industries.

LPS is headquartered in Jacksonville, Fla., and employs approximately 8,000 professionals. For more information please visit www.lpsvcs.com.

Use of Non-GAAP Financial Information

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 and other 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 measures. A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: our ability to adapt our services to changes in technology or the marketplace; the impact of adverse changes in the level of real estate activity (including among others, loan originations and foreclosures) on demand for certain of our services; our ability to maintain and grow our relationships with our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state enforcement proceedings, 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; the impact of continued delays in the foreclosure process on the timing and collectability of our fees for certain of our services; 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 and other filings with the Securities and Exchange Commission.

###

Exhibit A

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)



	Three months ended March 31,
	2012			2011
	(In thousands, except per share data)
Revenues	$	506,021		$	537,183
Expenses:
Operating expenses	387,476			384,478
Depreciation and amortization	24,244			22,996
Exit costs, impairments and other charges	—			19,311
Total expenses	411,720			426,785
Operating income	94,301			110,398
Other income (expense):
Interest income	448			326
Interest expense	(16,402		)	(14,156		)
Other income, net	85			14
Total other income (expense)	(15,869		)	(13,816		)
Earnings from continuing operations before income taxes	78,432			96,582
Provision for income taxes	29,255			36,702
Net earnings from continuing operations	49,177			59,880
Loss from discontinued operations, net of tax	(2,056		)	(3,951		)
Net earnings	$	47,121		$	55,929

Net earnings per share - diluted from continuing operations	$	0.58		$	0.67
Net loss per share - diluted from discontinued operations	(0.02		)	(0.04		)
Net earnings per share - diluted	$	0.56		$	0.63
Weighted average shares outstanding - diluted	84,567			88,134

Exhibit B

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)



	March 31, 2012			December 31, 2011
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	103,728		$	77,355
Trade receivables, net of allowance for doubtful accounts	328,219			345,048
Other receivables	3,487			1,423
Prepaid expenses and other current assets	33,690			33,004
Deferred income taxes, net	74,088			74,006
Total current assets	543,212			530,836

Property and equipment, net	119,436			121,245
Computer software, net	228,021			228,882
Other intangible assets, net	35,255			39,140
Goodwill	1,125,604			1,132,828
Other non-current assets	208,370			192,484
Total assets	$	2,259,898		$	2,245,415

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	29,311		$	39,310
Trade accounts payable	44,297			43,105
Accrued salaries and benefits	60,085			64,383
Other accrued liabilities	243,539			247,110
Deferred revenues	58,911			64,078
Total current liabilities	436,143			457,986

Deferred revenues	24,871			34,737
Deferred income taxes, net	133,715			122,755
Long-term debt, net of current portion	1,102,522			1,109,850
Other non-current liabilities	32,083			32,099
Total liabilities	1,729,334			1,757,427

Stockholders' equity:
Preferred stock $0.0001 par value; 50 million shares authorized, none issued at March 31, 2012 and December 31, 2011	—			—
Common stock $0.0001 par value; 500 million shares authorized, 97.4 million shares issued at March 31, 2012 and December 31, 2011	10			10
Additional paid-in capital	252,758			250,533
Retained earnings	696,719			658,146
Accumulated other comprehensive loss	(2,040		)	(1,783		)
Treasury stock at cost; 12.9 million and 13.0 million shares at March 31, 2012 and December 31, 2011, respectively	(416,883		)	(418,918		)
Total stockholders' equity	530,564			487,988
Total liabilities and stockholders' equity	$	2,259,898		$	2,245,415

Exhibit C

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)



	Three months ended March 31,
	2012			2011
	(In thousands)
Cash flows from operating activities:
Net earnings	$	47,121		$	55,929
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	24,902			24,868
Amortization of debt issuance costs	1,117			1,167
Asset impairment charges	2,842			—
Gain on sale of discontinued operation	(8,064		)	—
Deferred income taxes, net	11,036			8,428
Stock-based compensation cost	5,257			10,628
Income tax effect of equity compensation	342			(112		)
Changes in assets and liabilities, net of effects of acquisitions:
Trade receivables	12,700			33,734
Other receivables	(2,159		)	1,087
Prepaid expenses and other assets	(8,853		)	(3,031		)
Deferred revenues	8,965			(1,900		)
Accounts payable, accrued liabilities and other liabilities	(5,155		)	(10,358		)
Net cash provided by operating activities	90,051			120,440

Cash flows from investing activities:
Additions to property and equipment	(6,595		)	(7,060		)
Additions to capitalized software	(17,124		)	(16,261		)
Purchases of investments, net of proceeds from sales	(5,763		)	(3,732		)
Acquisition of title plants and property records data	(11,821		)	(2,425		)
Acquisitions, net of cash acquired	—			(9,802		)
Proceeds from sale of discontinued operations, net of cash distributed	6,398			—
Net cash used in investing activities	(34,905		)	(39,280		)

Cash flows from financing activities:
Debt service payments	(17,327		)	(36,288		)
Exercise of stock options and restricted stock vesting	(655		)	239
Income tax effect of equity compensation	(342		)	112
Dividends paid	(8,449		)	(8,784		)
Treasury stock repurchases	—			(83,882		)
Payment of contingent consideration related to acquisitions	(2,000		)	—
Net cash used in financing activities	(28,773		)	(128,603		)
Net increase (decrease) in cash and cash equivalents	26,373			(47,443		)
Cash and cash equivalents, beginning of period	77,355			52,287
Cash and cash equivalents, end of period	$	103,728		$	4,844

Supplemental disclosures of cash flow information:
Cash paid for interest	$	20,830		$	20,897
Cash paid for taxes	$	4,053		$	4,713

Exhibit D

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)



		QUARTER (1)						QUARTER (1)															YEAR ENDED (1)
		Q1-2012			Q1-2011			Q1-2012			Q4-2011			Q3-2011			Q2-2011			Q1-2011			12/31/2011
1.	Operating Results - Continuing Operations
	Consolidated
	Revenues	$	506,021		$	537,183		$	506,021		$	533,832		$	519,437		$	499,660		$	537,183		$	2,090,112
	Operating Income, as reported	94,301			110,398			94,301			4,926			94,192			80,666			110,398			290,182
	Adjustments:
	Legal and Regulatory Charge (2)	—			—			—			78,484			—			—			—			78,484
	Exit costs, Impairments and Other Charges (3)	—			19,311			—			27,714			—			9,887			19,311			56,912
	Operating Income, as adjusted	94,301			129,709			94,301			111,124			94,192			90,553			129,709			425,578
	Depreciation and Amortization	24,244			22,996			24,244			23,931			20,822			22,627			22,996			90,376
	EBITDA, as adjusted	$	118,545		$	152,705		$	118,545		$	135,055		$	115,014		$	113,180		$	152,705		$	515,954
	Operating Margin, as adjusted	18.6		%	24.1		%	18.6		%	20.8		%	18.1		%	18.1		%	24.1		%	20.4		%
	EBITDA Margin, as adjusted	23.4		%	28.4		%	23.4		%	25.3		%	22.1		%	22.7		%	28.4		%	24.7		%
	Technology, Data and Analytics
	Revenues	$	178,143		$	168,548		$	178,143		$	178,271		$	173,138		$	170,573		$	168,548		$	690,530
	Operating Income, as reported	53,966			54,322			53,966			51,341			58,715			49,526			54,322			213,904
	Adjustments:
	Exit costs, Impairments and Other Charges (3)	—			2,302			—			7,971			—			6,585			2,302			16,858
	Operating Income, as adjusted	53,966			56,624			53,966			59,312			58,715			56,111			56,624			230,762
	Depreciation and Amortization	18,584			17,233			18,584			18,105			15,120			16,881			17,233			67,339
	EBITDA, as adjusted	$	72,550		$	73,857		$	72,550		$	77,417		$	73,835		$	72,992		$	73,857		$	298,101
	Operating Margin, as adjusted	30.3		%	33.6		%	30.3		%	33.3		%	33.9		%	32.9		%	33.6		%	33.4		%
	EBITDA Margin, as adjusted	40.7		%	43.8		%	40.7		%	43.4		%	42.6		%	42.8		%	43.8		%	43.2		%
	Transaction Services
	Revenues	$	329,612		$	370,105		$	329,612		$	356,853		$	348,095		$	330,600		$	370,105		$	1,405,653
	Operating Income, as reported	51,454			81,133			51,454			70,752			55,824			52,610			81,133			260,319
	Adjustments:
	Exit costs, Impairments and Other Charges (3)	—			2,978			—			(236		)	—			1,074			2,978			3,816



	Operating Income, as adjusted	51,454			84,111			51,454			70,516			55,824			53,684			84,111			264,135
	Depreciation and Amortization	4,692			4,608			4,692			4,850			4,726			4,650			4,608			18,834
	EBITDA, as adjusted	$	56,146		$	88,719		$	56,146		$	75,366		$	60,550		$	58,334		$	88,719		$	282,969
	Operating Margin, as adjusted	15.6		%	22.7		%	15.6		%	19.8		%	16.0		%	16.2		%	22.7		%	18.8		%
	EBITDA Margin, as adjusted	17.0		%	24.0		%	17.0		%	21.1		%	17.4		%	17.6		%	24.0		%	20.1		%
	Corporate and Other
	Revenues	$	(1,734	)	$	(1,470	)	$	(1,734	)	$	(1,292	)	$	(1,796	)	$	(1,513	)	$	(1,470	)	$	(6,071	)
	Operating Loss, as reported	(11,119		)	(25,057		)	(11,119		)	(117,167		)	(20,347		)	(21,470		)	(25,057		)	(184,041		)
	Adjustments:
	Legal and Regulatory Charge (2)	—			—			—			78,484			—			—			—			78,484
	Exit costs, Impairments and Other Charges (3)	—			14,031			—			19,979			—			2,228			14,031			36,238
	Operating Loss, as adjusted	(11,119		)	(11,026		)	(11,119		)	(18,704		)	(20,347		)	(19,242		)	(11,026		)	(69,319		)
	Depreciation and Amortization	968			1,155			968			976			976			1,096			1,155			4,203
	EBITDA, as adjusted	$	(10,151	)	$	(9,871	)	$	(10,151	)	$	(17,728	)	$	(19,371	)	$	(18,146	)	$	(9,871	)	$	(65,116	)
2.	Net Earnings - Reconciliation
	Net Earnings (Loss)	$	47,121		$	55,929		$	47,121		$	(21,201	)	$	40,450		$	21,365		$	55,929		$	96,543
	Adjustments - Continuing Operations:
	Legal and Regulatory Charge (2)	—			—			—			53,086			—			—			—			53,086
	Exit costs, Impairments and Other Charges (3)	—			11,973			—			16,822			—			6,204			11,973			34,999
	Total Adjustments to Continuing Operations	—			11,973			—			69,908			—			6,204			11,973			88,085
	Adjustments - Discontinued Operations:
	Impairment and Restructuring Charges, net	—			38			—			16,454			—			17,759			38			34,251
	(Gain)/Loss on Disposal of Operations, net	—			—			—			(928		)	1,486			—			—			558
	Total Adjustments to Discontinued Operations	—			38			—			15,526			1,486			17,759			38			34,809
	Adjustments - Non-operating:
	Write-off of Debt Issuance Costs, net (4)	—			—			—			—			4,978			—			—			4,978
	Prior Year Tax Benefit	—			—			—			(6,458		)	—			—			—			(6,458		)
	Total Non-operating Adjustments	—			—			—			(6,458		)	4,978			—			—			(1,480		)
	Net Earnings, as adjusted	47,121			67,940			47,121			57,775			46,914			45,328			67,940			217,957
	Purchase Price Amortization, net (5)	2,421			3,128			2,421			2,655			2,495			2,674			3,128			10,952
	Adjusted Net Earnings	$	49,542		$	71,068		$	49,542		$	60,430		$	49,409		$	48,002		$	71,068		$	228,909
	Adjusted Net Earnings Per Diluted Share	$	0.59		$	0.81		$	0.59		$	0.72		$	0.59		$	0.56		$	0.81		$	2.68
	Diluted Weighted Average Shares	84,567			88,134			84,567			84,430			84,415			85,812			88,134			85,685



3.	Cash Flow - Reconciliation
	Cash Flows from Operating Activities:
	Net Earnings (Loss)	$	47,121		$	55,929		$	47,121		$	(21,201	)	$	40,450		$	21,365		$	55,929		$	96,543
	Adjustments:
	Cash Related Restructuring Costs, net	2,353			4,152			2,353			(3,302		)	2,107			5,220			4,152			8,177
	Net Earnings (Loss), as adjusted	49,474			60,081			49,474			(24,503		)	42,557			26,585			60,081			104,720
	Adjustments to reconcile net earnings to net cash provided by operating activities:
	Non-cash adjustments	37,432			44,979			37,432			62,763			50,508			61,260			44,979			219,510
	Working capital adjustments	5,498			19,532			5,498			106,696			11,756			23,822			19,532			161,806
	Net cash provided by operating activities	92,404			124,592			92,404			144,956			104,821			111,667			124,592			486,036
	Capital expenditures included in investing activities	(23,719		)	(23,321		)	(23,719		)	(23,408		)	(28,243		)	(29,907		)	(23,321		)	(104,879		)
	Adjusted Net Free Cash Flow	$	68,685		$	101,271		$	68,685		$	121,548		$	76,578		$	81,760		$	101,271		$	381,157
4.	Discontinued Operations - Reconciliation
	Net Loss, as reported	$	(2,056	)	$	(3,951	)	$	(2,056	)	$	(17,017	)	$	(4,194	)	$	(21,101	)	$	(3,951	)	$	(46,263	)
	Adjustments:
	Exit Costs, Impairments and Other Charges, net (6)	—			38			—			16,454			—			17,759			38			34,251
	(Gain)/Loss on Disposal of Operations, net (7)	—			—			—			(928		)	1,486			—			—			558
	Net Loss, as adjusted	(2,056		)	(3,913		)	(2,056		)	(1,491		)	(2,708		)	(3,342		)	(3,913		)	(11,454		)
	Purchase Price Amortization, net	114			262			114			201			122			272			262			857
	Adjusted Net Loss	$	(1,942	)	$	(3,651	)	$	(1,942	)	$	(1,290	)	$	(2,586	)	$	(3,070	)	$	(3,651	)	$	(10,597	)
	Adjusted Net Loss Per Diluted Share	$	(0.02	)	$	(0.04	)	$	(0.02	)	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.04	)	$	(0.13	)
	Diluted Weighted Average Shares	84,567			88,134			84,567			84,430			84,415			85,812			88,134			85,685

Notes:

(1) 2011 revenues and operating income have been reclassified to conform to the current year presentation.

(2) During 2011, we recognized a pre-tax legal and regulatory contingency accrual of $78.5 million ($53.1 million after tax) for estimated settlement and third-party legal expenses related to various ongoing legal and regulatory matters.

(3) Includes the impact of various severance, asset impairment and restructuring charges. Severance charges reflect the departure of certain executives including our former chief executive officer, co-chief operating officer and chief financial officer, as well as the impact of other personnel restructuring programs. In connection with these initiatives, during 2011, we recorded severance charges, including equity acceleration, of $33.4 million ($20.6 million net of tax). Asset impairment and restructuring charges, which totaled $23.5 million during 2011 ($14.4 million net of tax) primarily reflects the write-down of various assets as well as provisions for operating lease impairments.

(4) During 2011, we recorded a charge totaling $8.0 million ($5.0 million net of tax) related to the write-off of certain debt issuance costs in connection with the refinancing of our senior credit facilities.

(5) Purchase price amortization, net represents the periodic amortization of intangible assets acquired through business acquisitions primarily relating to customer lists, trademarks and non-compete agreements.

(6) Fiscal 2011 reflects charges totaling $57.0 million ($34.3 million net of tax) relating to severance accruals and the write-down of net assets for businesses that have been classified as discontinued operations.

(7) Fiscal 2011 reflects the (gain) or loss, net of tax, included in "Total Other Income (Expense)" above, recognized upon the disposition of business units that have been sold or shutdown.

Exhibit D - continued

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)



		YEAR ENDED (1)			QUARTER (1)
		2010			Q4-2010			Q3-2010			Q2-2010			Q1-2010
1.	Operating Results - Continuing Operations
	Consolidated
	Revenues	$	2,376,861		$	618,152		$	605,984		$	579,280		$	573,445
	Operating Income, as reported	580,090			134,729			149,107			154,004			142,250
	Adjustments:
	Exit costs, Impairments and Other Charges (2)	14,069			14,069			—			—			—
	Operating Income, as adjusted	594,159			148,798			149,107			154,004			142,250
	Depreciation and Amortization	89,079			23,900			22,377			21,332			21,470
	EBITDA, as adjusted	$	683,238		$	172,698		$	171,484		$	175,336		$	163,720
	Operating Margin, as adjusted	25.0		%	24.1		%	24.6		%	26.6		%	24.8		%
	EBITDA Margin, as adjusted	28.7		%	27.9		%	28.3		%	30.3		%	28.6		%
	Technology, Data and Analytics
	Revenues	$	676,001		$	173,858		$	174,389		$	167,308		$	160,446
	Operating Income, as reported	256,666			60,436			68,783			69,384			58,063
	Adjustments:
	Exit costs, Impairments and Other Charges (3)	—			—			—			—			—
	Operating Income, as adjusted	256,666			60,436			68,783			69,384			58,063
	Depreciation and Amortization	60,920			16,258			15,113			14,313			15,236
	EBITDA, as adjusted	$	317,586		$	76,694		$	83,896		$	83,697		$	73,299
	Operating Margin, as adjusted	38.0		%	34.8		%	39.4		%	41.5		%	36.2		%
	EBITDA Margin, as adjusted	47.0		%	44.1		%	48.1		%	50.0		%	45.7		%
	Transaction Services
	Revenues	$	1,708,689		$	446,187		$	433,534		$	413,616		$	415,352
	Operating Income, as reported	363,969			90,568			89,837			91,793			91,771
	Adjustments:
	Exit costs, Impairments and Other Charges (3)	9,800			9,800			—			—			—



Operating Income, as adjusted	373,769			100,368			89,837			91,793			91,771
Depreciation and Amortization	23,338			6,484			6,109			5,795			4,950
EBITDA, as adjusted	$	397,107		$	106,852		$	95,946		$	97,588		$	96,721
Operating Margin, as adjusted	21.9		%	22.5		%	20.7		%	22.2		%	22.1		%
EBITDA Margin, as adjusted	23.2		%	23.9		%	22.1		%	23.6		%	23.3		%
Corporate and Other
Revenues	$	(7,829	)	$	(1,893	)	$	(1,939	)	$	(1,644	)	$	(2,353	)
Operating Loss, as reported	(40,545		)	(16,275		)	(9,513		)	(7,173		)	(7,584		)
Adjustments:
Exit costs, Impairments and Other Charges (3)	4,269			4,269			—			—			—
Operating Loss, as adjusted	(36,276		)	(12,006		)	(9,513		)	(7,173		)	(7,584		)
Depreciation and Amortization	4,821			1,158			1,155			1,224			1,284
EBITDA, as adjusted	$	(31,455	)	$	(10,848	)	$	(8,358	)	$	(5,949	)	$	(6,300	)

Notes:

(1) 2010 revenues and operating income have been reclassified to conform to the current year presentation.

(2) Reflects the impact of an immaterial error correction recorded in 2010, totaling $9.8 million, related to fiscal years 2007 and 2008. Also reflects the impact of various severance charges, including the departure of our former chief financial officer, as well as the impact of other personnel restructuring programs. In connection with these initiatives, during 2010, we recorded severance charges, including equity acceleration, of $4.3 million ($2.6 million net of tax).

Exhibit E

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED

(In thousands)



		YEAR ENDED (1)						QUARTER (1)
		2011			2010			Q1-2012			Q4-2011			Q3-2011			Q2-2011			Q1-2011			Q4-2010			Q3-2010			Q2-2010			Q1-2010
1.	Revenues - Continuing Operations
	Technology, Data and Analytics:
	Technology	$	621,585		$	600,542		$	161,290		$	161,252		$	156,414		$	152,676		$	151,243		$	154,133		$	156,188		$	148,689		$	141,532
	Servicing Technology	421,352			405,490			108,351			107,103			107,273			103,676			103,300			101,274			103,126			102,969			98,121
	Default Technology	120,288			119,304			31,576			33,752			28,185			29,201			29,150			33,125			33,040			25,364			27,775
	Origination Technology	79,945			75,748			21,363			20,397			20,956			19,799			18,793			19,734			20,022			20,356			15,636
	Data and Analytics	68,945			75,459			16,853			17,019			16,724			17,897			17,305			19,725			18,201			18,619			18,914
	Total	690,530			676,001			178,143			178,271			173,138			170,573			168,548			173,858			174,389			167,308			160,446
	Transaction Services:
	Origination Services	519,438			605,636			146,750			151,527			133,099			105,856			128,956			179,394			156,167			131,439			138,636
	Default Services	886,215			1,103,053			182,862			205,326			214,996			224,744			241,149			266,793			277,367			282,177			276,716
	Total	1,405,653			1,708,689			329,612			356,853			348,095			330,600			370,105			446,187			433,534			413,616			415,352
	Corporate	(6,071		)	(7,829		)	(1,734		)	(1,292		)	(1,796		)	(1,513		)	(1,470		)	(1,893		)	(1,939		)	(1,644		)	(2,353		)
	Total Revenues	$	2,090,112		$	2,376,861		$	506,021		$	533,832		$	519,437		$	499,660		$	537,183		$	618,152		$	605,984		$	579,280		$	573,445

	Revenue Growth from Prior Year Period
	Technology, Data and Analytics:
	Technology	3.5		%	6.8		%	6.6		%	4.6		%	0.1		%	2.7		%	6.9		%	3.8		%	6.1		%	11.2		%	6.6		%
	Servicing Technology	3.9		%	3.9		%	4.9		%	5.8		%	4		%	0.7		%	5.3		%	(3.4		)%	(0.8		)%	14.5		%	7.3		%
	Default Technology	0.8		%	4.2		%	8.3		%	1.9		%	(14.7		)%	15.1		%	5		%	17		%	15.9		%	(12.3		)%	(3.6		)%
	Origination Technology	5.5		%	31.9		%	13.7		%	3.4		%	4.7		%	(2.7		)%	20.2		%	28.5		%	36.6		%	37.1		%	24.6		%
	Data and Analytics	(8.6		)%	(4.3		)%	(2.6		)%	(13.7		)%	(8.1		)%	(3.9		)%	(8.5		)%	4.4		%	(1.3		)%	(15.3		)%	(3.2		)%
	Total	2.1		%	5.5		%	5.7		%	2.5		%	(0.7		)%	2.0		%	5.0		%	3.8		%	5.3		%	7.5		%	5.3		%
	Transaction Services:
	Origination Services	(14.2		)%	15.8		%	13.8		%	(15.5		)%	(14.8		)%	(19.5		)%	(7.0		)%	31.6		%	20.8		%	(8.2		)%	21.5		%
	Default Services	(19.7		)%	(4.6		)%	(24.2		)%	(23.0		)%	(22.5		)%	(20.4		)%	(12.9		)%	(7.5		)%	(10.7		)%	(7.2		)%	9.0		%
	Total	(17.7		)%	1.7		%	(10.9		)%	(20.0		)%	(19.7		)%	(20.1		)%	(10.9		)%	5.1		%	(1.5		)%	(7.5		)%	12.9		%
	Corporate	n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
	Total Revenues	(12.1		)%	3.4		%	(5.8		)%	(13.6		)%	(14.3		)%	(13.7		)%	(6.3		)%	4.9		%	1.3		%	(2.8		)%	11.2		%



Revenue Growth from Sequential Period
Technology, Data and Analytics:
Technology	3.5	%	6.8	%	—	%	3.1	%	2.4	%	0.9	%	(1.9	)%	(1.3	)%	5	%	5.1	%	(4.7	)%
Servicing Technology	3.9	%	3.9	%	1.2	%	(0.2	)%	3.5	%	0.4	%	2	%	(1.8	)%	0.2	%	4.9	%	(6.4	)%
Default Technology	0.8	%	4.2	%	(6.4	)%	19.8	%	(3.5	)%	0.2	%	(12	)%	0.3	%	30.3	%	(8.7	)%	(1.9	)%
Origination Technology	5.5	%	31.9	%	4.7	%	(2.7	)%	5.8	%	5.4	%	(4.8	)%	(1.4	)%	(1.6	)%	30.2	%	1.8	%
Data and Analytics	(8.6	)%	(4.3	)%	(1.0	)%	1.8	%	(6.6	)%	3.4	%	(12.3	)%	8.4	%	(2.2	)%	(1.6	)%	0.1	%
Total	2.1	%	5.5	%	(0.1	)%	3.0	%	1.5	%	1.2	%	(3.1	)%	(0.3	)%	4.2	%	4.3	%	(4.2	)%
Transaction Services:
Origination Services	(14.2	)%	15.8	%	(3.2	)%	13.8	%	25.7	%	(17.9	)%	(28.1	)%	14.9	%	18.8	%	(5.2	)%	1.7	%
Default Services	(19.7	)%	(4.6	)%	(10.9	)%	(4.5	)%	(4.3	)%	(6.8	)%	(9.6	)%	(3.8	)%	(1.7	)%	2.0	%	(4.0	)%
Total	(17.7	)%	1.7	%	(7.6	)%	2.5	%	5.3	%	(10.7	)%	(17.1	)%	2.9	%	4.8	%	(0.4	)%	(2.2	)%
Corporate	n/m		n/m		n/m		n/m		n/m		n/m		n/m		n/m		n/m		n/m		n/m
Total Revenues	(12.1	)%	3.4	%	(5.2	)%	2.8	%	4.0	%	(7.0	)%	(13.1	)%	2.0	%	4.6	%	1.0	%	(2.7	)%

Notes:

(1) 2011 and 2010 revenues have been reclassified to conform to the current year presentation.

Black Knight InfoServ, LLC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 3, 2012

Attached files

Black Knight InfoServ, LLC Reports