Altisource Portfolio Solutions S.A. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - Altisource Portfolio Solutions S.A.	d302123d8k.htm

Exhibit 99.1

LOGO

			September 30,
FOR IMMEDIATE RELEASE			FOR FURTHER INFORMATION CONTACT:

			Robert D. Stiles
			Chief Financial Officer
			T: +352 2469 7903
			E: robert.stiles@altisource.lu

ALTISOURCE ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

Luxembourg, Luxembourg, 16 February 2012

Altisource™ (NASDAQ: ASPS) today reported Net Income Attributable to Altisource of $25.7 million or $1.02 per diluted share for the fourth quarter ended December 31, 2011 ($71.1 million or $2.77 per diluted share for the year then ended). This compares with Net Income Attributable to Altisource of $16.8 million or $0.64 per share for the fourth quarter of 2010 ($49.3 million or $1.88 per diluted share for the year then ended).

Service Revenue for the fourth quarter of 2011 was $104.4 million, up 40% compared to the fourth quarter of 2010 ($334.8 million for the year ended December 31, 2011, up 36% compared to 2010).

Fourth quarter highlights include:

•

Average loans serviced by the Company’s largest customer Ocwen^® on the REALServicing^® platform was 0.6 million for the quarter.

•

Generated cash flow from operations for the quarter of $42.9 million representing $0.41 for every dollar of Service Revenue.

•

Acquired 0.6 million shares of stock for the quarter under the stock repurchase program at an average price of $44.49 per share.

Gross margin for the fourth quarter improved when compared to the quarter ended September 30, 2011. On a consolidated basis, the fourth quarter increase was primarily driven by Mortgage Services’ mix of services and the expansion of insurance services operations.

From an operating margin perspective, margins for the total Company improved in the quarter when compared to the quarter ended September 30, 2011 by 500 basis points to 30% of Service Revenue. This reflects faster growth in the higher margin Mortgage Services segment and slower growth in Corporate costs.

Financial Results

		September 30,			September 30,			September 30,			September 30,
	Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share data)	2011			2010			2011			2010

Service Revenue	$	104,355		$	74,301		$	334,758		$	247,026
Reimbursable Expenses		25,141			14,409			82,074			47,449
Cooperative Non-controlling Interest		2,460			2,767			6,855			6,903

Total Revenue		131,956			91,477			423,687			301,378
Cost of Revenue		59,323			42,008			193,775			141,610
Reimbursable Expenses		25,141			14,409			82,074			47,449

Gross Profit		47,492			35,060			147,838			112,319
Selling, General and Administrative Expenses		16,644			18,077			62,131			57,352

Income from Operations		30,848			16,983			85,707			54,967
Other Income (Expense), net		(91	)		138			203			804

Income Before Income Taxes and Non-controlling Interests		30,757			17,121			85,910			55,771
Income Tax (Provision) Benefit		(2,566	)		2,432			(7,943	)		403

Net Income		28,191			19,553			77,967			56,174
Net Income Attributable to Non-controlling
Interests		(2,460	)		(2,767	)		(6,855	)		(6,903	)

Net Income Attributable to Altisource	$	25,731		$	16,786		$	71,112		$	49,271


Earnings Per Share:
Basic	$	1.09		$	0.67		$	2.92		$	1.96

Diluted	$	1.02		$	0.64		$	2.77		$	1.88


Weighted Average Shares Outstanding:
Basic		23,692			25,091			24,373			25,083

Diluted		25,142			26,183			25,685			26,259


Transactions with Related Parties:
Revenue	$	76,367		$	50,494		$	245,262		$	154,988

Selling, General and Administrative Expenses	$	541		$	245		$	1,893		$	1,056

Revenue

The following table presents Revenue by segment:

		September 30,			September 30,			September 30,			September 30,
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2011			2010			2011			2010

Service Revenue:
Mortgage Services	$	77,174		$	46,057		$	224,942		$	135,680
Financial Services		16,164			18,072			69,231			74,718
Technology Services		14,979			14,591			56,094			52,013
Eliminations		(3,962	)		(4,419	)		(15,509	)		(15,385	)

Total Service Revenue		104,355			74,301			334,758			247,026

Reimbursable Expenses:
Mortgage Services		24,903			13,739			80,124			44,550
Financial Services		238			670			1,950			2,899

Total Reimbursable Expenses		25,141			14,409			82,074			47,449

Cooperative Non-controlling Interests:
Mortgage Services		2,460			2,767			6,855			6,903

Total Revenue	$	131,956		$	91,477		$	423,687		$	301,378

Stock Repurchase Update

For the year ended December 31, 2011, the Company repurchased 1.6 million shares (0.6 million shares during the fourth quarter) of common stock on the open market at an average price of $37.57 per share under the stock repurchase program. Since inception of the program, 2.3 million shares of common stock have been repurchased on the open market at an average price of $34.55 per share.

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 fact, including statements about our management’s 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. The Company 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 retain existing customers and attract new customers; general economic and market conditions; 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 the Company’s Form 10-K and other filings with the Securities and Exchange Commission.

Webcast

Altisource will host a webcast at 11:00 a.m. Eastern today to discuss fourth quarter results. A link to the live audio webcast will be available on our website through the Investor Relations home page. Those who want to listen to the call should go to the website 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 our website approximately two hours after the conclusion of the call.

About Altisource

Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is a provider of services focused on high-value, technology-enabled knowledge-based functions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. Additional information is available at www.altisource.com.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, Except Per Share Data)

		September 30,			September 30,
	December 31,
	2011			2010

ASSETS
Current Assets:
Cash and Cash Equivalents	$	32,125		$	22,134
Accounts Receivable, net		52,005			53,495
Prepaid Expenses and Other Current Assets		5,002			13,076
Deferred Tax Asset, net		1,133			551

Total Current Assets		90,265			89,256

Restricted Cash		158			1,045
Premises and Equipment, net		25,600			17,493
Deferred Tax Asset, net		4,373			1,206
Intangible Assets, net		64,950			72,428
Goodwill		14,915			11,836
Investment in Equity Affiliate		14,470			—
Other Non-current Assets		9,428			4,536

Total Assets	$	224,159		$	197,800


LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses	$	44,867		$	35,384

Capital Lease Obligations—Current		634			680
Other Current Liabilities		9,939			5,616

Total Current Liabilities		55,440			41,680

Capital Lease Obligations—Non-current		202			852
Other Non-current Liabilities		2,574			3,370

Commitment and Contingencies

Equity:
Common Stock ($1.00 par value; 100,000 shares authorized;
25,413 shares issued and 23,405 outstanding in 2011;
25,413 shares issued and 24,881 outstanding in 2010)		25,413			25,413
Retained Earnings		126,161			58,546
Additional Paid-in-Capital		83,229			79,297
Treasury Stock, at cost ($1.00 par value; 2,008 and 532 sharesin 2011 and 2010, respectively)		(72,048	)		(14,418	)

Altisource Equity		162,755			148,838

Non-controlling Interests		3,188			3,060

Total Equity		165,943			151,898


Total Liabilities and Equity	$	224,159		$	197,800

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