Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Black Knight, Inc. | bkfs8-kitem70161215.htm |
| EX-99..2 - EXHIBIT 99..2 - Black Knight, Inc. | ex992bkfscompanyoverview.htm |
EXHIBIT 99.1
Supplemental Financial Data
(as of March 31, 2015)
Black Knight Financial Services, Inc. Headquarters
601 Riverside Avenue
Jacksonville, FL 32204
Investor Relations Contact
Kirk Larsen
Executive Vice President, Chief Financial Officer
Phone: 904.527.4470
Email: kirk.larsen@bkfs.com
Website
www.bkfs.com
Black Knight Financial Services, LLC
Consolidated Statement of Operations
(in millions)
Successor | ||||
Year ended December 31, 2014 | ||||
Revenues | $ | 852.1 | ||
Expenses: | ||||
Operating expenses | 514.9 | |||
Depreciation and amortization | 188.8 | |||
Transition and integration costs | 119.3 | |||
Total expenses | 823.0 | |||
Operating income | 29.1 | |||
Other income and expense: | ||||
Interest expense | (128.7 | ) | ||
Other expense, net | (12.0 | ) | ||
Total other expense, net | (140.7 | ) | ||
Loss from continuing operations before income taxes | (111.6 | ) | ||
Provision for income tax benefit | (5.3 | ) | ||
Net loss from continuing operations | (106.3 | ) | ||
Loss from discontinued operations, net of tax | (0.8 | ) | ||
Net loss | $ | (107.1 | ) | |
Adjusted Revenue (1) | $ | 864.9 | ||
Adjusted EBITDA (1) | $ | 354.9 | ||
Adjusted EBITDA Margin (1) | 41.0 | % | ||
______________
(1) Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See Appendix for reconciliations of GAAP to non-GAAP financial measures as well as the definitions and reasons why management believes the information is useful to investors.
1
Black Knight Financial Services, LLC
Condensed Consolidated Statement of Earnings (Loss)
(in millions)
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Unaudited) | |||||||
Revenues | $ | 227.2 | $ | 202.5 | |||
Expenses: | |||||||
Operating expenses | 133.2 | 133.8 | |||||
Depreciation and amortization | 45.9 | 46.9 | |||||
Transition and integration costs | 2.6 | 86.0 | |||||
Total expenses | 181.7 | 266.7 | |||||
Operating income (loss) | 45.5 | (64.2 | ) | ||||
Other income and expense: | |||||||
Interest expense | (30.8 | ) | (31.4 | ) | |||
Total other expense, net | (30.8 | ) | (31.4 | ) | |||
Earnings (loss) from continuing operations before income taxes | 14.7 | (95.6 | ) | ||||
Provision for income tax expense (benefit) | 0.1 | (5.9 | ) | ||||
Net earnings (loss) from continuing operations | 14.6 | (89.7 | ) | ||||
Loss from discontinued operations, net of tax | (0.1 | ) | (0.2 | ) | |||
Net earnings (loss) | $ | 14.5 | $ | (89.9 | ) | ||
Adjusted Revenue (1) | $ | 229.6 | $ | 206.4 | |||
Adjusted EBITDA (1) | $ | 98.2 | $ | 74.1 | |||
Adjusted EBITDA Margin (1) | 42.8 | % | 35.9 | % | |||
_______________
(1) Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See Appendix for reconciliations of GAAP to non-GAAP financial measures as well as the definitions and reasons why management believes the information is useful to investors.
2
Black Knight Financial Services, LLC
Quarterly Segment Financial Data
(in millions)
2015 | 2014 | |||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Adjusted Revenue (1) | ||||||||||||||||||||
Technology | $ | 184.7 | $ | 179.3 | $ | 181.0 | $ | 177.9 | $ | 170.0 | ||||||||||
Data and Analytics | 44.8 | 43.3 | 36.4 | 40.5 | 36.4 | |||||||||||||||
Corporate | 0.1 | 0.1 | — | — | — | |||||||||||||||
Total | $ | 229.6 | $ | 222.7 | $ | 217.4 | $ | 218.4 | $ | 206.4 | ||||||||||
Adjusted EBITDA (1) | ||||||||||||||||||||
Technology | $ | 100.4 | $ | 96.8 | $ | 99.5 | $ | 92.0 | $ | 81.7 | ||||||||||
Data and Analytics | 7.8 | 10.6 | 3.9 | 2.2 | (0.3 | ) | ||||||||||||||
Corporate | (10.0 | ) | (7.5 | ) | (8.7 | ) | (8.0 | ) | (7.3 | ) | ||||||||||
Total | $ | 98.2 | $ | 99.9 | $ | 94.7 | $ | 86.2 | $ | 74.1 | ||||||||||
Adjusted EBITDA Margin (1) | ||||||||||||||||||||
Technology | 54.4 | % | 54.0 | % | 55.0 | % | 51.7 | % | 48.1 | % | ||||||||||
Data and Analytics | 17.4 | % | 24.5 | % | 10.7 | % | 5.4 | % | (0.8 | )% | ||||||||||
Corporate | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Total | 42.8 | % | 44.9 | % | 43.6 | % | 39.5 | % | 35.9 | % | ||||||||||
_______________
(1) Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See Appendix for reconciliations of GAAP to non-GAAP financial measures as well as the definitions and reasons why management believes the information is useful to investors.
3
Black Knight Financial Services, LLC
Condensed Consolidated Balance Sheets
(in millions)
March 31, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 39.6 | $ | 61.9 | |||
Trade receivables, net | 153.3 | 132.5 | |||||
Prepaid expenses and other current assets | 36.3 | 28.8 | |||||
Receivables from related parties | 8.0 | 7.7 | |||||
Total current assets | 237.2 | 230.9 | |||||
Property and equipment, net | 140.3 | 142.4 | |||||
Computer software, net | 483.9 | 487.8 | |||||
Other intangible assets, net | 395.8 | 416.6 | |||||
Goodwill | 2,223.9 | 2,223.9 | |||||
Other non-current assets | 115.4 | 96.7 | |||||
Total assets | $ | 3,596.5 | $ | 3,598.3 | |||
LIABILITIES, REDEEMABLE MEMBERS' INTEREST AND MEMBERS' EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable and other accrued liabilities | $ | 34.7 | $ | 41.8 | |||
Accrued salaries and benefits | 33.3 | 49.5 | |||||
Legal and regulatory accrual | 12.0 | 11.7 | |||||
Current portion of long-term debt | 72.5 | 64.4 | |||||
Accrued interest | 15.8 | 7.3 | |||||
Deferred revenues | 29.8 | 28.1 | |||||
Total current liabilities | 198.1 | 202.8 | |||||
Deferred revenues | 47.6 | 35.9 | |||||
Long-term debt, net of current portion | 2,046.0 | 2,070.7 | |||||
Other non-current liabilities | 1.0 | 1.2 | |||||
Total liabilities | 2,292.7 | 2,310.6 | |||||
Redeemable members' interest | 379.2 | 370.7 | |||||
Members' equity | 924.6 | 917.0 | |||||
Total liabilities, redeemable members' interest and members' equity | $ | 3,596.5 | $ | 3,598.3 | |||
4
Appendix
Black Knight Financial Services, LLC
Reconciliation of Revenues to Adjusted Revenue
(in millions)
Year Ended December 31, 2014 | ||||
Revenues | $ | 852.1 | ||
Deferred revenue adjustment | 12.8 | |||
Adjusted Revenue | $ | 864.9 | ||
Definition of Adjusted Revenue
We define Adjusted Revenue as reported Revenues adjusted to include the revenues that were not recorded by the company during the period presented due to the deferred revenue purchase accounting adjustment recorded in accordance with GAAP.
We believe Adjusted Revenue is useful to investors and management as a supplemental measure to evaluate the performance of the company on a consistent basis.
A-1
Black Knight Financial Services, LLC
Reconciliation of Revenues to Adjusted Revenue
(in millions)
2015 | 2014 | |||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Technology: | ||||||||||||||||||||
Revenues | $ | 182.3 | $ | 177.0 | $ | 178.7 | $ | 173.8 | $ | 166.0 | ||||||||||
Deferred revenue adjustment | 2.4 | 2.3 | 2.3 | 4.1 | 4.0 | |||||||||||||||
Adjusted Revenue | $ | 184.7 | $ | 179.3 | $ | 181.0 | $ | 177.9 | $ | 170.0 | ||||||||||
Data and Analytics: | ||||||||||||||||||||
Revenues | $ | 44.8 | $ | 43.2 | $ | 36.3 | $ | 40.5 | $ | 36.5 | ||||||||||
Deferred revenue adjustment | — | 0.1 | 0.1 | — | (0.1 | ) | ||||||||||||||
Adjusted Revenue | $ | 44.8 | $ | 43.3 | $ | 36.4 | $ | 40.5 | $ | 36.4 | ||||||||||
Corporate: | ||||||||||||||||||||
Revenues | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | — | ||||||||||
Deferred revenue adjustment | — | — | — | — | — | |||||||||||||||
Adjusted Revenue | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | — | ||||||||||
Consolidated: | ||||||||||||||||||||
Revenues | $ | 227.2 | $ | 220.3 | $ | 215.0 | $ | 214.3 | $ | 202.5 | ||||||||||
Deferred revenue adjustment | 2.4 | 2.4 | 2.4 | 4.1 | 3.9 | |||||||||||||||
Adjusted Revenue | $ | 229.6 | $ | 222.7 | $ | 217.4 | $ | 218.4 | $ | 206.4 | ||||||||||
Definition of Adjusted Revenue
We define Adjusted Revenue as reported Revenues adjusted to include the revenues that were not recorded by the company during the period presented due to the deferred revenue purchase accounting adjustment recorded in accordance with GAAP.
We believe Adjusted Revenue is useful to investors and management as a supplemental measure to evaluate the performance of the company on a consistent basis.
A-2
Black Knight Financial Services, LLC
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(in millions)
Year Ended December 31, 2014 | ||||
Operating income (loss) | $ | 29.1 | ||
Depreciation and amortization | 188.8 | |||
Deferred revenue adjustment | 12.8 | |||
Equity-based compensation | 6.4 | |||
Legal and regulatory matters | (1.5 | ) | ||
Transition and integration costs | 119.3 | |||
Adjusted EBITDA | $ | 354.9 | ||
Adjusted EBITDA Margin | 41.0 | % | ||
Definitions of Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as Operating income (loss) before depreciation and amortization, with further adjustments to reflect the addition or elimination of certain income statement items including, but not limited to (i) the deferred revenue purchase accounting adjustment recorded in accordance with GAAP; (ii) equity-based compensation; (iii) acquisition-related costs; (iv) non-recurring costs associated with the achievement of synergies; (v) charges associated with material legal and regulatory matters; (vi) member management fees paid to FNF and THL Managers LLC; (vii) exit costs, impairments and other charges; and (viii) one-time costs associated with the initial public offering. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Adjusted Revenue.
We believe Adjusted EBITDA is useful to investors as a supplemental measure to evaluate the overall operating performance of companies in our industry. Management uses Adjusted EBITDA as a measurement to compare our operating performance to our peers and competitors.
A-3
Black Knight Financial Services, LLC
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(in millions)
2015 | 2014 | |||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Technology: | ||||||||||||||||||||
Operating income (loss) | $ | 56.5 | $ | 50.3 | $ | 54.5 | $ | 44.4 | $ | 33.1 | ||||||||||
Depreciation and amortization | 41.5 | 43.9 | 42.3 | 42.2 | 42.9 | |||||||||||||||
Deferred revenue adjustment | 2.4 | 2.3 | 2.3 | 4.1 | 4.0 | |||||||||||||||
Transition and integration costs | — | 0.3 | 0.4 | 1.3 | 1.7 | |||||||||||||||
Adjusted EBITDA | $ | 100.4 | $ | 96.8 | $ | 99.5 | $ | 92.0 | $ | 81.7 | ||||||||||
Adjusted EBITDA Margin | 54.4 | % | 53.9 | % | 55.0 | % | 51.7 | % | 48.1 | % | ||||||||||
Data and Analytics: | ||||||||||||||||||||
Operating income (loss) | $ | 4.4 | $ | 6.5 | $ | 0.4 | $ | (1.3 | ) | $ | (3.9 | ) | ||||||||
Depreciation and amortization | 3.4 | 3.6 | 3.4 | 3.4 | 3.3 | |||||||||||||||
Deferred revenue adjustment | — | 0.1 | 0.1 | — | (0.1 | ) | ||||||||||||||
Transition and integration costs | — | 0.4 | — | 0.1 | 0.4 | |||||||||||||||
Adjusted EBITDA | $ | 7.8 | $ | 10.6 | $ | 3.9 | $ | 2.2 | $ | (0.3 | ) | |||||||||
Adjusted EBITDA Margin | 17.4 | % | 23.6 | % | 10.7 | % | 6.4 | % | (0.8 | )% | ||||||||||
Corporate: | ||||||||||||||||||||
Operating income (loss) | $ | (15.4 | ) | $ | (15.5 | ) | $ | (19.3 | ) | $ | (26.7 | ) | $ | (93.4 | ) | |||||
Depreciation and amortization | 1.0 | 0.8 | 0.7 | 1.6 | 0.7 | |||||||||||||||
Equity-based compensation | 1.8 | 1.1 | 2.2 | 1.6 | 1.5 | |||||||||||||||
Legal and regulatory matters | — | (1.5 | ) | — | — | — | ||||||||||||||
Transition and integration costs | 2.6 | 7.6 | 7.7 | 15.5 | 83.9 | |||||||||||||||
Adjusted EBITDA | $ | (10.0 | ) | $ | (7.5 | ) | $ | (8.7 | ) | $ | (8.0 | ) | $ | (7.3 | ) | |||||
Adjusted EBITDA Margin | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Consolidated: | ||||||||||||||||||||
Operating income (loss) | $ | 45.5 | $ | 41.3 | $ | 35.6 | $ | 16.4 | $ | (64.2 | ) | |||||||||
Depreciation and amortization | 45.9 | 48.3 | 46.4 | 47.2 | 46.9 | |||||||||||||||
Deferred revenue adjustment | 2.4 | 2.4 | 2.4 | 4.1 | 3.9 | |||||||||||||||
Equity-based compensation | 1.8 | 1.1 | 2.2 | 1.6 | 1.5 | |||||||||||||||
Legal and regulatory matters | — | (1.5 | ) | — | — | — | ||||||||||||||
Transition and integration costs | 2.6 | 8.3 | 8.1 | 16.9 | 86.0 | |||||||||||||||
Adjusted EBITDA | $ | 98.2 | $ | 99.9 | $ | 94.7 | $ | 86.2 | $ | 74.1 | ||||||||||
Adjusted EBITDA Margin | 42.8 | % | 44.7 | % | 43.6 | % | 39.6 | % | 35.9 | % | ||||||||||
A-4
Definitions of Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as Operating income (loss) before depreciation and amortization, with further adjustments to reflect the addition or elimination of certain income statement items including, but not limited to (i) the deferred revenue purchase accounting adjustment recorded in accordance with GAAP; (ii) equity-based compensation; (iii) acquisition-related costs; (iv) non-recurring costs associated with the achievement of synergies; (v) charges associated with material legal and regulatory matters; (vi) member management fees paid to FNF and THL Managers LLC; (vii) exit costs, impairments and other charges; and (viii) one-time costs associated with the initial public offering. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Adjusted Revenue.
We believe Adjusted EBITDA is useful to investors as a supplemental measure to evaluate the overall operating performance of companies in our industry. Management uses Adjusted EBITDA as a measurement to compare our operating performance to our peers and competitors.
A-5