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Altisource Announces Third Quarter Financial Results
October 22, 2015
LUXEMBOURG, October 22, 2015 – Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS) today reported strong third quarter results.
Third Quarter 2015 Results Compared to Third Quarter 2014:
- Service revenue of $245.5 million, a 1% decrease
- Net income attributable to Altisource of $37.0 million, a 12% decrease
- Adjusted net income attributable to Altisource(1) of $46.4 million, a 10% decrease
- Diluted earnings per share of $1.82, a 2% increase
- Adjusted diluted earnings per share(1) of $2.27, a 4% increase
"We remain focused on providing high quality, compliant services to our customers and positioning the Company, through our strategic initiatives, for long term growth. We continue to execute with existing customers, on-board new customers and receive very good feedback on our offerings from the market. We believe we have the right strategic initiatives, with each addressing very large markets, in line with our core competencies and our competitive advantages," said William B. Shepro, Chief Executive Officer.
Shepro further commented, "I am pleased with the financial results for the quarter. Compared to the third quarter of 2014, growth in our asset management business largely offset lost revenue from the November 2014 discontinuation of the lender placed insurance brokerage business, the full amortization of the Equator acquisition deferred revenue in November 2014 and fewer third quarter 2015 property valuation referrals. With a focus on growth through our four strategic initiatives, we have increased our investments in sales and marketing in 2015, primarily accounting for the lower net income."
Third quarter 2015 highlights include:
The average number of loans serviced by Ocwen on REALServicing was 1.9 million for the third quarter 2015, a 15% decrease compared to the third quarter 2014
The Company repurchased 0.2 million shares of common stock at an average price of $26.88 per share
The Company repurchased a portion of the senior secured term loan with a par value of $11.0 million at an 11% discount; net income included an after-tax gain of $0.8 million on the early extinguishment of debt
The Company acquired CastleLine Holdings, LLC and its subsidiaries for $12.3 million in cash at closing,$10.5 million of cash payable over four years from the acquisition date and $14.4 million of restricted common shares of the Company (495 thousand shares)
Subsequent to the close of the third quarter, we acquired GoldenGator, LLC (doing business as RentRange®), REIsmart, LLC (doing business as InvestabilityTM) and Onit Solutions, LLC, a support company for RentRange and Investability. RentRange is a leading provider of rental home data and information to the financial services and real estate industries, delivering a wide assortment of address and geography level data, analytics and rent-based valuation solutions for single and multi-family properties. Investability is an online residential real estate search and acquisition platform that utilizes data and analytics to allow real estate investors to access the estimated cash flow, capitalization rate, net yield and market value of properties for sale in the United States
"I am very pleased with our operating results and the progress we are making on our strategic initiatives to diversify and grow our revenue and earnings. We believe our non-Ocwen growth, recent customer wins, current negotiations with new and existing customers and our robust pipeline activity demonstrate Altisource's value to the market and our ability to deliver on our initiatives," said Chief Executive Officer William B. Shepro.
Fourth quarter and full year 2015 highlights include:
We were selected by two top ten banks(2) to provide services
for their portfolios in 2015, including the selection by a top four bank in the fourth quarter. We have
agreements to provide services and/or software to five of the top ten banks and one GSE;
We repurchased $58.9 million of our common stock in 2015 (2.1 million shares at an average price of$27.60 per share); this includes $10.0 million of repurchases in the fourth quarter (0.4 million shares at an average price of $26.23 per share). In January and February of 2016, we repurchased $5.0 million of our common stock (0.2 million shares at an average price of $27.58 per share);
We repurchased $49.0 million of our senior secured term loan for $44.4 million (a weighted average discount of 10.3%), resulting in net pretax gains of $3.8 million on the early extinguishment of debt in 2015; this includes fourth quarter repurchases of $22.0 million for $19.8 million (a discount of 11.0%), resulting in a pretax gain of $1.8 million;
To strengthen the Real Estate Investor Solutions initiative, we acquired RentRange® and Investability™ in the fourth quarter for $24.8 million; and
The average number of loans serviced by Ocwen Financial Corporation and its subsidiaries ("Ocwen") on REALServicing® was 2.0 million, an 8% decrease compared to the year ended December 31, 2014 (the average number of loans was 1.7 million in the fourth quarter 2015, a 31% decrease compared to the fourth quarter 2014).
The financial data in this press release is unaudited and preliminary, based upon estimates and subject to completion of the Company's financial closing procedures and the audit of the Company's financial statements. Moreover, this data has been prepared on the basis of currently available information. This data does not constitute a comprehensive statement of the Company's financial results for the year ended December 31, 2015, and the Company's final numbers for this data may differ materially from these estimates. The Company's independent registered public accounting firm has not audited or reviewed, and does not express an opinion with respect to, this data.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements about management's beliefs and expectations. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "plan," "estimate," "seek," "believe," "potential" and similar expressions. 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 the future and are not statements of historical fact, actual results may differ materially from what is contemplated by the forward-looking statements. Altisource undertakes 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, Altisource's ability to integrate acquired businesses, retain key executives or employees, retain existing customers and attract new customers, general economic and market conditions, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies, availability of adequate and timely sources of liquidity and other risks and uncertainties detailed in the "Forward-Looking Statements," "Risk Factors" and other sections of Altisource's Form 10-K and other filings with the Securities and Exchange Commission.
Webcast
Altisource will host a webcast at 11:00 a.m. EST today to discuss our fourth quarter and full year results. A link to the live audio webcast will be available on Altisource's website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Altisource
Altisource Portfolio Solutions S.A. is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. Altisource's proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. Additional information is available at www.Altisource.com.
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
(unaudited)
|
|
|
Three months ended |
|
Years ended |
||||||||||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Service revenue |
|
|
|
|
|
|
|
|
||||||||
|
Mortgage Services |
|
$ |
183,945 |
|
|
$ |
145,776 |
|
|
$ |
676,222 |
|
|
$ |
653,093 |
|
|
Financial Services |
|
21,351 |
|
|
21,816 |
|
|
88,328 |
|
|
98,312 |
|
||||
|
Technology Services |
|
56,083 |
|
|
62,415 |
|
|
215,482 |
|
|
227,300 |
|
||||
|
Eliminations |
|
(10,339 |
) |
|
(12,163 |
) |
|
(39,112 |
) |
|
(40,026 |
) |
||||
|
Total service revenue |
|
251,040 |
|
|
217,844 |
|
|
940,920 |
|
|
938,679 |
|
||||
|
Reimbursable expenses |
|
18,102 |
|
|
37,414 |
|
|
107,344 |
|
|
137,634 |
|
||||
|
Non-controlling interests |
|
745 |
|
|
629 |
|
|
3,202 |
|
|
2,603 |
|
||||
|
Total revenue |
|
269,887 |
|
|
255,887 |
|
|
1,051,466 |
|
|
1,078,916 |
|
||||
|
Cost of revenue |
|
154,390 |
|
|
149,238 |
|
|
579,983 |
|
|
569,546 |
|
||||
|
Reimbursable expenses |
|
18,102 |
|
|
37,414 |
|
|
107,344 |
|
|
137,634 |
|
||||
|
Gross profit |
|
97,395 |
|
|
69,235 |
|
|
364,139 |
|
|
371,736 |
|
||||
|
Selling, general and administrative expenses |
|
65,558 |
|
|
61,979 |
|
|
220,868 |
|
|
201,733 |
|
||||
|
Impairment losses |
|
71,785 |
|
|
— |
|
|
71,785 |
|
|
37,473 |
|
||||
|
Change in the fair value of Equator earn out liability |
|
— |
|
|
— |
|
|
(7,591 |
) |
|
(37,924 |
) |
||||
|
Income (loss) from operations |
|
(39,948 |
) |
|
7,256 |
|
|
79,077 |
|
|
170,454 |
|
||||
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
(6,812 |
) |
|
(7,323 |
) |
|
(28,208 |
) |
|
(23,363 |
) |
||||
|
Loss on sale ofHLSSequity securities, net of dividends received |
|
— |
|
|
— |
|
|
(1,854 |
) |
|
— |
|
||||
|
Other income (expense), net |
|
2,568 |
|
|
39 |
|
|
4,045 |
|
|
174 |
|
||||
|
Total other income (expense), net |
|
(4,244 |
) |
|
(7,284 |
) |
|
(26,017 |
) |
|
(23,189 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) before income taxes and non-controlling interests |
|
(44,192 |
) |
|
(28 |
) |
|
53,060 |
|
|
147,265 |
|
||||
|
Income tax provision |
|
(159 |
) |
|
(878 |
) |
|
(8,260 |
) |
|
(10,178 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
|
(44,351 |
) |
|
(906 |
) |
|
44,800 |
|
|
137,087 |
|
||||
|
Net income attributable to non-controlling interests |
|
(745 |
) |
|
(629 |
) |
|
(3,202 |
) |
|
(2,603 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) attributable toAltisource |
|
$ |
(45,096 |
) |
|
$ |
(1,535 |
) |
|
$ |
41,598 |
|
|
$ |
134,484 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(2.35 |
) |
|
$ |
(0.08 |
) |
|
$ |
2.13 |
|
|
$ |
6.22 |
|
|
Diluted |
|
$ |
(2.35 |
) |
|
$ |
(0.08 |
) |
|
$ |
2.02 |
|
|
$ |
5.69 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
19,196 |
|
|
20,306 |
|
|
19,504 |
|
|
21,625 |
|
||||
|
Diluted |
|
19,196 |
|
|
20,306 |
|
|
20,619 |
|
|
23,634 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP Financial Measures(1) |
|
|
|
|
|
|
|
|
||||||||
|
Adjusted net income attributable toAltisource |
|
$ |
38,048 |
|
|
$ |
6,275 |
|
|
$ |
143,475 |
|
|
$ |
169,141 |
|
|
Adjusted diluted earnings per share |
|
$ |
1.86 |
|
|
$ |
0.28 |
|
|
$ |
6.96 |
|
|
$ |
7.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________________
(1) These are non-GAAP measures that are defined and
reconciled to the corresponding GAAP measures herein
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
SEGMENT FINANCIAL INFORMATION
(in
thousands)
(unaudited)
|
|
|
Year ended December 31, 2015 |
||||||||||||||||||
|
|
|
Mortgage |
|
Financial |
|
Technology |
|
Corporate |
|
Consolidated |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Service revenue |
|
$ |
676,222 |
|
|
$ |
88,328 |
|
|
$ |
215,482 |
|
|
$ |
(39,112 |
) |
|
$ |
940,920 |
|
|
Reimbursable expenses |
|
107,224 |
|
|
120 |
|
|
— |
|
|
— |
|
|
107,344 |
|
|||||
|
Non-controlling interests |
|
3,202 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,202 |
|
|||||
|
|
|
786,648 |
|
|
88,448 |
|
|
215,482 |
|
|
(39,112 |
) |
|
1,051,466 |
|
|||||
|
Cost of revenue |
|
474,169 |
|
|
60,806 |
|
|
187,835 |
|
|
(35,483 |
) |
|
687,327 |
|
|||||
|
Gross profit (loss) |
|
312,479 |
|
|
27,642 |
|
|
27,647 |
|
|
(3,629 |
) |
|
364,139 |
|
|||||
|
Selling, general and administrative expenses |
|
105,153 |
|
|
18,707 |
|
|
29,902 |
|
|
67,106 |
|
|
220,868 |
|
|||||
|
Impairment losses |
|
— |
|
|
— |
|
|
71,785 |
|
|
— |
|
|
71,785 |
|
|||||
|
Change in the fair value of Equator earn out liability |
|
— |
|
|
— |
|
|
(7,591 |
) |
|
— |
|
|
(7,591 |
) |
|||||
|
Income (loss) from operations |
|
207,326 |
|
|
8,935 |
|
|
(66,449 |
) |
|
(70,735 |
) |
|
79,077 |
|
|||||
|
Other income (expense), net |
|
506 |
|
|
58 |
|
|
61 |
|
|
(26,642 |
) |
|
(26,017 |
) |
|||||
|
Income (loss) before income taxes and non-controlling interests |
|
$ |
207,832 |
|
|
$ |
8,993 |
|
|
$ |
(66,388 |
) |
|
$ |
(97,377 |
) |
|
$ |
53,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014 |
||||||||||||||||||
|
|
|
Mortgage |
|
Financial |
|
Technology |
|
Corporate |
|
Consolidated |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Service revenue |
|
$ |
653,093 |
|
|
$ |
98,312 |
|
|
$ |
227,300 |
|
|
$ |
(40,026 |
) |
|
$ |
938,679 |
|
|
Reimbursable expenses |
|
137,447 |
|
|
187 |
|
|
— |
|
|
— |
|
|
137,634 |
|
|||||
|
Non-controlling interests |
|
2,603 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,603 |
|
|||||
|
|
|
793,143 |
|
|
98,499 |
|
|
227,300 |
|
|
(40,026 |
) |
|
1,078,916 |
|
|||||
|
Cost of revenue |
|
486,387 |
|
|
64,338 |
|
|
192,426 |
|
|
(35,971 |
) |
|
707,180 |
|
|||||
|
Gross profit (loss) |
|
306,756 |
|
|
34,161 |
|
|
34,874 |
|
|
(4,055 |
) |
|
371,736 |
|
|||||
|
Selling, general and administrative expenses |
|
94,686 |
|
|
18,791 |
|
|
32,393 |
|
|
55,863 |
|
|
201,733 |
|
|||||
|
Impairment losses |
|
— |
|
|
— |
|
|
37,473 |
|
|
— |
|
|
37,473 |
|
|||||
|
Change in the fair value of Equator earn out liability |
|
— |
|
|
— |
|
|
(37,924 |
) |
|
— |
|
|
(37,924 |
) |
|||||
|
Income (loss) from operations |
|
212,070 |
|
|
15,370 |
|
|
2,932 |
|
|
(59,918 |
) |
|
170,454 |
|
|||||
|
Other income (expense), net |
|
204 |
|
|
62 |
|
|
(31 |
) |
|
(23,424 |
) |
|
(23,189 |
) |
|||||
|
Income (loss) before income taxes and non-controlling interests |
|
$ |
212,274 |
|
|
$ |
15,432 |
|
|
$ |
2,901 |
|
|
$ |
(83,342 |
) |
|
$ |
147,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per
share data)
(unaudited)
|
|
|
December 31, |
||||||
|
|
|
2015 |
|
2014 |
||||
|
ASSETS |
||||||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
179,327 |
|
|
$ |
161,361 |
|
|
Accounts receivable, net |
|
105,023 |
|
|
112,183 |
|
||
|
Prepaid expenses and other current assets |
|
21,751 |
|
|
23,567 |
|
||
|
Deferred tax assets, net |
|
— |
|
|
4,987 |
|
||
|
Total current assets |
|
306,101 |
|
|
302,098 |
|
||
|
|
|
|
|
|
||||
|
Premises and equipment, net |
|
119,121 |
|
|
127,759 |
|
||
|
Goodwill |
|
82,801 |
|
|
90,851 |
|
||
|
Intangible assets, net |
|
197,003 |
|
|
245,246 |
|
||
|
Deferred tax assets, net |
|
3,619 |
|
|
— |
|
||
|
Other assets |
|
19,337 |
|
|
22,267 |
|
||
|
|
|
|
|
|
||||
|
Total assets |
|
$ |
727,982 |
|
|
$ |
788,221 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND EQUITY |
||||||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable and accrued expenses |
|
$ |
91,871 |
|
|
$ |
111,766 |
|
|
Current portion of long-term debt |
|
5,945 |
|
|
5,945 |
|
||
|
Deferred revenue |
|
15,060 |
|
|
9,829 |
|
||
|
Other current liabilities |
|
16,266 |
|
|
13,227 |
|
||
|
Total current liabilities |
|
129,142 |
|
|
140,767 |
|
||
|
|
|
|
|
|
||||
|
Long-term debt, less current portion |
|
528,417 |
|
|
582,669 |
|
||
|
Deferred tax liabilities, net |
|
— |
|
|
2,694 |
|
||
|
Other non-current liabilities |
|
18,153 |
|
|
20,648 |
|
||
|
|
|
|
|
|
||||
|
Equity: |
|
|
|
|
||||
|
Common stock ($1.00par value; 25,413 shares authorized and issued and 19,021 outstanding as ofDecember 31, 2015; 25,413 shares authorized and issued and 20,279 outstanding as ofDecember31, 2014) |
|
25,413 |
|
|
25,413 |
|
||
|
Additional paid-in capital |
|
96,321 |
|
|
91,509 |
|
||
|
Retained earnings |
|
369,270 |
|
|
367,967 |
|
||
|
Treasurystock, at cost (6,392 shares as ofDecember31, 2015and 5,134 shares as ofDecember31, 2014) |
|
(440,026 |
) |
|
(444,495 |
) |
||
|
Altisourceequity |
|
50,978 |
|
|
40,394 |
|
||
|
|
|
|
|
|
||||
|
Non-controlling interests |
|
1,292 |
|
|
1,049 |
|
||
|
Total equity |
|
52,270 |
|
|
41,443 |
|
||
|
|
|
|
|
|
||||
|
Total liabilities and equity |
|
$ |
727,982 |
|
|
$ |
788,221 |
|
|
|
|
|
|
|
|
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
Years ended December 31, |
||||||
|
|
2015 |
|
2014 |
||||
|
|
|
|
|
||||
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income |
$ |
44,800 |
|
|
$ |
137,087 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
36,470 |
|
|
29,046 |
|
||
|
Amortization of intangible assets |
41,135 |
|
|
37,680 |
|
||
|
Loss on sale ofHLSSequity securities, net of dividends received |
1,854 |
|
|
— |
|
||
|
Change in the fair value of acquisition related contingent consideration |
(7,184 |
) |
|
(37,924 |
) |
||
|
Impairment losses |
71,785 |
|
|
37,473 |
|
||
|
Share-based compensation expense |
4,812 |
|
|
2,236 |
|
||
|
Bad debt expense |
5,514 |
|
|
16,257 |
|
||
|
Gain on early extinguishment of debt |
(3,836 |
) |
|
— |
|
||
|
Amortization of debt discount |
498 |
|
|
317 |
|
||
|
Amortization of debt issuance costs |
1,374 |
|
|
1,151 |
|
||
|
Deferred income taxes |
(1,326 |
) |
|
1,166 |
|
||
|
Loss on disposal of fixed assets |
26 |
|
|
184 |
|
||
|
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
|
Accounts receivable |
2,401 |
|
|
(22,492 |
) |
||
|
Prepaid expenses and other current assets |
1,883 |
|
|
(12,501 |
) |
||
|
Other assets |
2,993 |
|
|
(1,750 |
) |
||
|
Accounts payable and accrued expenses |
(14,483 |
) |
|
24,285 |
|
||
|
Other current and non-current liabilities |
6,636 |
|
|
(14,722 |
) |
||
|
Net cash provided by operating activities |
195,352 |
|
|
197,493 |
|
||
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
||||
|
Additions to premises and equipment |
(36,188 |
) |
|
(64,846 |
) |
||
|
Acquisition of businesses, net of cash acquired |
(28,675 |
) |
|
(34,720 |
) |
||
|
Purchase ofHLSSequity securities |
(29,966 |
) |
|
— |
|
||
|
Proceeds received from sale of and dividends fromHLSSequity securities |
28,112 |
|
|
— |
|
||
|
Change in restricted cash |
722 |
|
|
(1,402 |
) |
||
|
Other investing activities |
— |
|
|
(300 |
) |
||
|
Net cash used in investing activities |
(65,995 |
) |
|
(101,268 |
) |
||
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from issuance of long-term debt |
— |
|
|
198,000 |
|
||
|
Repurchases and repayment of long-term debt |
(50,373 |
) |
|
(4,959 |
) |
||
|
Debt issuance costs |
— |
|
|
(2,608 |
) |
||
|
Proceeds from stock option exercises |
1,390 |
|
|
2,688 |
|
||
|
Purchase of treasury stock |
(58,949 |
) |
|
(255,713 |
) |
||
|
Distributions to non-controlling interests |
(2,959 |
) |
|
(2,596 |
) |
||
|
Other financing activities |
(500 |
) |
|
— |
|
||
|
Net cash used in financing activities |
(111,391 |
) |
|
(65,188 |
) |
||
|
|
|
|
|
||||
|
Net increase in cash and cash equivalents |
17,966 |
|
|
31,037 |
|
||
|
Cash and cash equivalents at the beginning of the period |
161,361 |
|
|
130,324 |
|
||
|
|
|
|
|
||||
|
Cash and cash equivalents at the end of the period |
$ |
179,327 |
|
|
$ |
161,361 |
|
|
|
|
|
|
||||
|
Supplemental cash flow information: |
|
|
|
||||
|
Interest paid |
$ |
26,274 |
|
|
$ |
21,829 |
|
|
Income taxes paid, net |
9,725 |
|
|
13,340 |
|
||
|
|
|
|
|
||||
|
Non-cash investing and financing activities: |
|
|
|
||||
|
Acquisition of businesses with restricted shares |
$ |
21,733 |
|
|
$ |
— |
|
|
Decrease in payables for purchases of premises and equipment |
(6,679 |
) |
|
(2,328 |
) |
||
|
Decrease in acquisition of businesses from subsequent working capital true-ups |
— |
|
|
(3,711 |
) |
||
|
|
|
|
|
|
|
||
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Adjusted net income attributable to Altisource and adjusted diluted earnings per share are non-GAAP measures used by management, existing shareholders and potential shareholders to measure Altisource's performance. Adjusted net income attributable to Altisource is calculated by adding intangible asset amortization expense (net of tax) and impairment losses (net of tax) and deducting gains associated with reductions of the Equator earn out liability (net of tax) to GAAP net income attributable to Altisource. Adjusted diluted earnings per share is calculated by dividing net income attributable to Altisource plus intangible asset amortization expense (net of tax) plus impairment losses (net of tax) less gains associated with reductions of the Equator earn out liability (net of tax) to GAAP net income attributable to Altisource by the weighted average number of diluted shares. Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows:
|
|
|
Three months ended |
|
Years ended |
||||||||||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) attributable toAltisource |
|
$ |
(45,096 |
) |
|
$ |
(1,535 |
) |
|
$ |
41,598 |
|
|
$ |
134,484 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Intangible amortization expense, net of tax |
|
12,514 |
|
|
7,810 |
|
|
38,187 |
|
|
35,076 |
|
||||
|
Impairment loss, net of tax |
|
70,630 |
|
|
— |
|
|
70,630 |
|
|
34,884 |
|
||||
|
Gain on Equator earn out liability, net of tax |
|
— |
|
|
— |
|
|
(6,940 |
) |
|
(35,303 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted net income attributable toAltisource |
|
$ |
38,048 |
|
|
$ |
6,275 |
|
|
$ |
143,475 |
|
|
$ |
169,141 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings (loss) per share |
|
$ |
(2.35 |
) |
|
$ |
(0.08 |
) |
|
$ |
2.02 |
|
|
$ |
5.69 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Impact of using diluted share count instead of basic share count for a loss per share |
|
0.14 |
|
|
0.01 |
|
|
— |
|
|
— |
|
||||
|
Intangible amortization expense, net of tax, per diluted share |
|
0.61 |
|
|
0.35 |
|
|
1.85 |
|
|
1.48 |
|
||||
|
Impairment loss, net of tax, per diluted share |
|
3.46 |
|
|
— |
|
|
3.43 |
|
|
1.48 |
|
||||
|
Gain on Equator earn out liability, net of tax, per diluted share |
|
— |
|
|
— |
|
|
(0.34 |
) |
|
(1.49 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted diluted earnings per share |
|
$ |
1.86 |
|
|
$ |
0.28 |
|
|
$ |
6.96 |
|
|
$ |
7.16 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Calculation of the impact of intangible amortization expense, net of tax |
|
|
|
|
|
|
|
|
||||||||
|
Intangible amortization expense |
|
$ |
13,140 |
|
|
$ |
8,390 |
|
|
$ |
41,135 |
|
|
$ |
37,680 |
|
|
Tax benefit from intangible asset amortization |
|
(626 |
) |
|
(580 |
) |
|
(2,948 |
) |
|
(2,604 |
) |
||||
|
Intangible asset amortization expense, net of tax |
|
12,514 |
|
|
7,810 |
|
|
38,187 |
|
|
35,076 |
|
||||
|
Diluted share count |
|
20,417 |
|
|
22,100 |
|
|
20,619 |
|
|
23,634 |
|
||||
|
Intangible asset amortization expense, net of tax, per diluted share |
|
$ |
0.61 |
|
|
$ |
0.35 |
|
|
$ |
1.85 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Calculation of the impact of impairment loss, net of tax |
|
|
|
|
|
|
|
|
||||||||
|
Impairment loss |
|
$ |
71,785 |
|
|
$ |
— |
|
|
$ |
71,785 |
|
|
$ |
37,473 |
|
|
Tax benefit from impairment loss |
|
(1,155 |
) |
|
— |
|
|
(1,155 |
) |
|
(2,589 |
) |
||||
|
Impairment loss, net of tax |
|
70,630 |
|
|
— |
|
|
70,630 |
|
|
34,884 |
|
||||
|
Diluted share count |
|
20,417 |
|
|
22,100 |
|
|
20,619 |
|
|
23,634 |
|
||||
|
Impairment loss, net of tax, per diluted share |
|
$ |
3.46 |
|
|
$ |
— |
|
|
$ |
3.43 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Calculation of gain on Equator earn out liability, net of tax |
|
|
|
|
|
|
|
|
||||||||
|
Gain on Equator earn out liability |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(7,591 |
) |
|
$ |
(37,924 |
) |
|
Tax provision from the gain on Equator earn out liability |
|
— |
|
|
— |
|
|
651 |
|
|
2,621 |
|
||||
|
Gain on Equator earn out liability, net of tax |
|
— |
|
|
— |
|
|
(6,940 |
) |
|
(35,303 |
) |
||||
|
Diluted share count |
|
20,417 |
|
|
22,100 |
|
|
20,619 |
|
|
23,634 |
|
||||
|
Gain on Equator earn out liability, net of tax, per diluted share |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(0.34 |
) |
|
$ |
(1.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
(1) This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure
herein.
(2) Source: Wall Street Journal's list of top ten banks by assets