Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Black Knight InfoServ, LLC | g27748e8vk.htm |
| EX-99.1 - EX-99.1 - Black Knight InfoServ, LLC | g27748exv99w1.htm |
Exhibit 99.2
| Supplemental Materials Lender Processing Services Second Quarter 2011 |
| This presentation contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: our ability to adapt our services to changes in technology or the marketplace; the impact of adverse changes in the level of real estate activity (including among others, loan originations and foreclosures) on demand for certain of our services; our ability to maintain and grow our relationships with our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state inquiries and examinations currently underway or that may be commenced in the future with respect to our default management operations, and with civil litigation related to these matters; changes to the laws, rules and regulations that regulate our businesses as a result of the current economic and financial environment; changes in general economic, business and political conditions, including changes in the financial markets; the impact of any potential defects, development delays, installation difficulties or system failures on our business and reputation; risks associated with protecting information security and privacy; and other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K, the Company's subsequent reports on Form 10-Q and other filings with the Securities and Exchange Commission. Forward-Looking Statements |
| 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 "EBIT, as adjusted" (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" (adjusted net earnings divided by diluted weighted average shares), and "adjusted free cash flow" (net cash provided by operating activities less additions to property, equipment and computer software, as well as non-recurring adjustments, if applicable). LPS provides these measures because it believes that they are helpful to investors in comparing year-over-year performance in light of certain non-recurring charges, and to better understand our financial performance, competitive position and future prospects. Non-GAAP measures should be considered in conjunction with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. A reconciliation of these non-GAAP measures to related GAAP measures is included in the 2Q11 earnings release. Use of Non-GAAP Measures |
| Revenues decreased 12.8% year-over-year primarily driven by a continued slow down in foreclosure and origination activity, partially offset by 8.6% growth in TD&AAdjusted EBIT margin of 16.5% in 2Q11 (vs. 25.0% in 2Q10 and 22.4% in 1Q11)Adjusted net earnings of $48.0 millionAdjusted net earnings per diluted share of 56 centsAdjusted free cash flow of $81.8 millionRepurchased 2.0 million shares and $5.0 million of public bonds Second Quarter 2011 Key Statistics |
| Consolidated Earnings Quarter ended Quarter ended Quarter ended ($ in millions, except per share data) ($ in millions, except per share data) ($ in millions, except per share data) 6/30/11 6/30/10 % Growth vs PY Net Earnings Net Earnings Net Earnings $ 21.4 $ 80.4 -73.4% Less Non-recurring charges: Less Non-recurring charges: Less Non-recurring charges: Restructuring Costs, net of tax Restructuring Costs, net of tax Restructuring Costs, net of tax 5.0 - Asset Impairment Charges - continuing operations, net of tax Asset Impairment Charges - continuing operations, net of tax Asset Impairment Charges - continuing operations, net of tax 3.3 - Asset Impairment Charges - discontinued operations, net of tax Asset Impairment Charges - discontinued operations, net of tax Asset Impairment Charges - discontinued operations, net of tax 15.7 - Net Earnings, excluding non-recurring charges Net Earnings, excluding non-recurring charges Net Earnings, excluding non-recurring charges 45.3 80.4 -43.6% Purchase Price Amortization, net of tax Purchase Price Amortization, net of tax Purchase Price Amortization, net of tax 2.7 3.6 Adjusted Net Earnings Adjusted Net Earnings Adjusted Net Earnings $ 48.0 $ 84.0 -42.9% Adjusted Net Earnings per Diluted Share Adjusted Net Earnings per Diluted Share Adjusted Net Earnings per Diluted Share $ 0.56 $ 0.89 -37.1% Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. |
| Segment Revenue ($ in millions) ($ in millions) ($ in millions) 2Q11 % Growth vs PY % Growth vs PQ Technology, Data and Analytics: Technology, Data and Analytics: Technology, Data and Analytics: Mortgage Processing Mortgage Processing $ 102.8 0.4% 0.4% Other TD&A Other TD&A 92.6 19.5% -3.1% Total 195.3 8.6% -1.3% Loan Transaction Services: Loan Transaction Services: Loan Transaction Services: Loan Facilitation Services Loan Facilitation Services 113.4 -19.3% -17.4% Default Services Default Services 210.3 -23.5% -4.9% Total 323.7 -22.1% -9.7% Corporate and Other Corporate and Other Corporate and Other (1.5) nm nm Total Revenue Total Revenue Total Revenue $ 517.5 -12.8% -6.7% Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. |
| Segment EBIT 6/30/11 6/30/11 6/30/11 % Growth vs PY % Growth vs PY % Growth vs PY % Growth vs PQ % Growth vs PQ % Growth vs PQ ($ in millions) ($ in millions) ($ in millions) $ Margin % % Var bps Var % Var bps Var Technology, Data and Analytics Technology, Data and Analytics Technology, Data and Analytics $ 58.2 29.8% -10.3% (628) -1.4% (3) Loan Transaction Services Loan Transaction Services Loan Transaction Services 58.9 18.2% -42.0% (625) -33.4% (648) Corporate and Other Corporate and Other Corporate and Other (31.7) nm nm nm nm nm Total EBIT (1) Total EBIT (1) Total EBIT (1) $ 85.4 16.5% -42.5% (850) -31.3% (591) EBIT excluding Corporate EBIT excluding Corporate EBIT excluding Corporate $ 117.1 22.6% -29.7% (540) -20.6% (394) (1) Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairmen t charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairm ent charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impai rment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset imp airment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset i mpairment charges. Excludes a $13.2 million non-recurring charge in 2Q11 ($9.3 million in Technology, Data & Analytics, $1.6 million in Loan Transaction Services and $2.2 million in Corporate and Other) primarily relating to restructuring and asset impairment charges. Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. |
| Free Cash Flow ($ in millions) ($ in millions) ($ in millions) ($ in millions) 1Q11 2Q11 YTD11 Net Earnings Net Earnings Net Earnings Net Earnings Net Earnings $ 55.9 $ 21.4 $ 77.3 Less cash related non-recurring charge, net of tax Less cash related non-recurring charge, net of tax Less cash related non-recurring charge, net of tax Less cash related non-recurring charge, net of tax Less cash related non-recurring charge, net of tax 4.2 5.2 9.4 Net earnings, as adjusted Net earnings, as adjusted Net earnings, as adjusted Net earnings, as adjusted 60.1 26.6 86.7 Adjustments to reconcile net earnings to net cash Adjustments to reconcile net earnings to net cash Adjustments to reconcile net earnings to net cash Adjustments to reconcile net earnings to net cash Adjustments to reconcile net earnings to net cash provided by operating activities: provided by operating activities: provided by operating activities: provided by operating activities: Depreciation and amortization Depreciation and amortization 24.9 24.6 49.4 Other non-cash items Other non-cash items 20.1 36.7 56.8 Working capital adjustments: Working capital adjustments: Working capital adjustments: Net change in accounts receivable Net change in accounts receivable 33.7 19.7 53.4 Net change in other working capital items Net change in other working capital items (14.2) 4.1 (10.0) Net cash provided by operating activities Net cash provided by operating activities Net cash provided by operating activities Net cash provided by operating activities Net cash provided by operating activities 124.6 111.7 236.3 Capital expenditures Capital expenditures Capital expenditures Capital expenditures Capital expenditures (23.3) (29.9) (53.2) Adjusted Net Free Cash Flow Adjusted Net Free Cash Flow Adjusted Net Free Cash Flow Adjusted Net Free Cash Flow Adjusted Net Free Cash Flow $ 101.3 $ 81.8 $ 183.0 Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. Note: columns may not total due to rounding. |
| 3Q11 Guidance 3Q11 Guidance |