Attached files
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| 8-K - FORM 8-K - Altisource Portfolio Solutions S.A. | d340970d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE |
FOR FURTHER INFORMATION CONTACT: | |
| Michelle D. Esterman | ||
| Chief Financial Officer | ||
| T: +352 2469 7950 | ||
| E: michelle.esterman@altisource.lu | ||
ALTISOURCE ANNOUNCES FIRST QUARTER RESULTS
Luxembourg, Luxembourg, 26 April 2012
Altisource™ (NASDAQ: ASPS) today reported net income attributable to Altisource of $25.2 million or $1.02 per diluted share for the first quarter ended March 31, 2012. This compares with net income attributable to Altisource of $14.8 million or $0.57 per share for the first quarter of 2011.
Service revenue was $108.5 million for the three months ended March 31, 2012, a 51% increase when compared to the three months ended March 31, 2011. The year-over-year growth in net income and service revenue is primarily from the increase in Ocwen’s residential loan servicing portfolio, impacting the Mortgage Services and Technology Services segments, coupled with the ongoing expansion of mortgage and real estate portfolio management services within the Mortgage Services segment.
First quarter highlights include:
| • | Average loans serviced by the Company’s largest customer, Ocwen Financial Corporation (“Ocwen”), on the REALServicing® platform, was 0.7 million for the quarter |
| • | Generated cash flows from operations for the quarter of $27.8 million representing $0.26 for every dollar of service revenue |
| • | Acquired 0.3 million shares of stock for the quarter under the stock repurchase program at an average price of $63.25 per share |
| • | Sold over 6,000 REO assets through the Company’s web based portal during the quarter |
| • | Lenders One increased membership by 11 during the quarter, bringing total membership to 225 |
Gross margin as a percentage of service revenue decreased to 44% for the three months ended March 31, 2012 compared to 47% for the three months ended March 31, 2011. The decline is primarily from the comparative mix of revenue and the additional employee costs incurred in 2012 in anticipation of new loans to be boarded by Ocwen.
Income from operations as a percentage of service revenue improved from 24% for the three months ended March 31, 2011 to 28% for the three months ended March 31, 2012. The increase is from the stabilization of selling, general and administrative expenses on higher service revenue.
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Stock Repurchase Update
For the quarter ended March 31, 2012, the Company repurchased 0.3 million shares of common stock on the open market at an average price of $63.25 per share under the stock repurchase program. Since inception of the program, 2.5 million shares of common stock have been repurchased on the open market at an average price of $37.49 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 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 first quarter results. A link to the live audio webcast will be available on the Company’s 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 the 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 solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. Additional information is available at www.altisource.com.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
Financial Results
Results of operations for the three months ended March 31, 2012 and 2011 are as follows:
| Three Months Ended March 31, |
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| 2012 | 2011 | |||||||
| Service revenue |
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| Mortgage Services |
$ | 79,320 | $ | 43,340 | ||||
| Financial Services |
17,760 | 18,920 | ||||||
| Technology Services |
17,022 | 12,716 | ||||||
| Eliminations |
(5,633 | ) | (3,246 | ) | ||||
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| 108,469 | 71,730 | |||||||
| Reimbursable expenses |
28,705 | 15,641 | ||||||
| Non-controlling interests |
1,892 | 1,299 | ||||||
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| Total revenue |
139,066 | 88,670 | ||||||
| Cost of revenue |
63,055 | 39,308 | ||||||
| Reimbursable expenses |
28,705 | 15,641 | ||||||
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| Gross profit |
47,306 | 33,721 | ||||||
| Selling, general and administrative expenses |
17,015 | 16,254 | ||||||
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| Income from operations |
30,291 | 17,467 | ||||||
| Other (expense) income, net |
(351 | ) | 344 | |||||
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| Income before income taxes and non-controlling interests |
29,940 | 17,811 | ||||||
| Income tax provision |
(2,819 | ) | (1,687 | ) | ||||
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| Net income |
27,121 | 16,124 | ||||||
| Net income attributable to non-controlling interests |
(1,892 | ) | (1,299 | ) | ||||
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| Net income attributable to Altisource |
$ | 25,229 | $ | 14,825 | ||||
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| Earnings per share: |
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| Basic |
$ | 1.08 | $ | 0.60 | ||||
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| Diluted |
$ | 1.02 | $ | 0.57 | ||||
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| Weighted average shares outstanding: |
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| Basic |
23,381 | 24,845 | ||||||
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| Diluted |
24,844 | 25,928 | ||||||
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| Transactions with related parties: |
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| Revenue |
$ | 82,780 | $ | 48,790 | ||||
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| Selling, general and administrative expenses |
$ | 574 | $ | 391 | ||||
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)
| March 31, 2012 |
December 31, 2011 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 26,666 | $ | 32,125 | ||||
| Accounts receivable, net |
62,312 | 52,005 | ||||||
| Prepaid expenses and other current assets |
5,379 | 5,002 | ||||||
| Deferred tax assets, net |
1,975 | 1,133 | ||||||
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| Total current assets |
96,332 | 90,265 | ||||||
| Premises and equipment, net |
39,081 | 25,600 | ||||||
| Deferred tax assets, net |
4,373 | 4,373 | ||||||
| Intangible assets, net |
62,768 | 64,950 | ||||||
| Goodwill |
14,915 | 14,915 | ||||||
| Investment in equity affiliate |
14,146 | 14,470 | ||||||
| Other assets |
8,902 | 9,586 | ||||||
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| Total assets |
$ | 240,517 | $ | 224,159 | ||||
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| LIABILITIES AND EQUITY |
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| Current liabilities: |
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| Accounts payable and accrued expenses |
$ | 47,797 | $ | 44,867 | ||||
| Capital lease obligations – current |
578 | 634 | ||||||
| Other current liabilities |
13,550 | 9,939 | ||||||
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| Total current liabilities |
61,925 | 55,440 | ||||||
| Capital lease obligations – non-current |
57 | 202 | ||||||
| Other non-current liabilities |
2,531 | 2,574 | ||||||
| Commitments and contingencies (Note 15) |
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| Equity: |
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| Common stock ($1.00 par value; 100,000 shares authorized; 25,413 shares issued and 23,311 outstanding as of March 31, 2012; 25,413 shares issued and 23,405 outstanding as of December 31, 2011) |
25,413 | 25,413 | ||||||
| Additional paid-in-capital |
83,045 | 83,229 | ||||||
| Retained earnings |
147,026 | 126,161 | ||||||
| Treasury stock, at cost (2,101 shares as of March 31, 2012 and 2,008 shares as of December 31, 2011) |
(82,488 | ) | (72,048 | ) | ||||
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| Altisource equity |
172,996 | 162,755 | ||||||
| Non-controlling interests |
3,008 | 3,188 | ||||||
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| Total equity |
176,004 | 165,943 | ||||||
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| Total liabilities and equity |
$ | 240,517 | $ | 224,159 | ||||
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