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| 8-K - 8-K - CORELOGIC, INC. | form8kearningsreleaseq32014.htm |
NEWS | FOR IMMEDIATE RELEASE | |
Exhibit 99.1
CORELOGIC REPORTS THIRD QUARTER 2014 FINANCIAL RESULTS
Revenue Growth and Margin Expansion Driven By Strategic Business Transformation
• | Total revenues up 3% to $367.5 million fueled by 23% growth in Data and Analytics (D&A) revenues. Technology and Processing Solutions (TPS) revenues continuing to outperform U.S. mortgage origination volume trends. |
• | Operating income from continuing operations increased 27% to $77.8 million. |
• | Net income from continuing operations up 15% to $49.7 million. Diluted EPS from continuing operations totaled $0.54, up 20%. |
• | Adjusted EBITDA increased 6% to $113.4 million; adjusted EBITDA margin was 31%. |
• | Repurchased 1.48 million common shares; $62 million debt repaid. |
• | Asset Management and Processing segment restructuring completed. |
Irvine, Calif., October 22, 2014 - CoreLogic (NYSE:CLGX), a leading global property information, analytics and data-enabled services provider, today reported financial results for the quarter ended September 30, 2014.
“CoreLogic delivered excellent results in the third quarter. Revenue, operating and net income were up as we continued to expand our D&A footprint and reap the benefits of our market leadership in TPS. Our strong operating performance over the past several quarters, despite the ongoing reset in the U.S. mortgage industry, is a testimony to our relentless focus on our strategic transformation plan which has resulted in the expanded market leadership of our data-enabled business units," said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. “As we move forward, we will continue to focus on aggressively growing our unique data assets, analytics and services through innovation, technology and operational excellence and deeper client intimacy.”
“We continue to shift our business mix toward data-driven, subscription based models built around scaled market leading solutions and services. As a result of this strategy, our core mortgage operations clearly outperformed market volumes and we materially expanded and diversified our D&A revenues in the third quarter,” added Frank Martell, Chief Operating and Financial Officer of CoreLogic. "The durability of our business model allows us to continue to invest in product and service innovation and operational improvements and, at the same time, return significant amounts of capital to our shareholders and reduce our debt balances.”
Third Quarter Financial Highlights
Third quarter revenues totaled $367.5 million, 3% higher than prior-year levels. D&A revenues increased 23% to $173.6 million compared with prior year driven principally by growth in insurance, spatial solutions, international and core property information revenues, which more than offset the impact of lower mortgage volumes, unfavorable foreign currency translation and the exit of certain non-core product lines. TPS revenues fell 10% to $196.3 million year-over-year as the impact of contracting mortgage volumes (mortgage applications down approximately 30%), lower project-related document processing and retrieval revenues and the planned wind-down of a non-core credit reporting service more than offset the benefit of market share gains including acquisition-related revenues.
Operating income from continuing operations totaled $77.8 million for the third quarter, a 27% increase from prior-year levels and a 90% increase from the second quarter of 2014. Third quarter 2014 operating margin was 21% compared to 17% in the prior year period. Third quarter operating income benefited from a gain on the sale of real estate assets of $13.8 million in connection with our Technology Transformation Initiative (TTI). Operating income also benefited from D&A growth and favorable mix, TPS share gains, lower costs related to the Company’s strategic transformation program and continued cost efficiency benefits.
Third quarter net income from continuing operations totaled $49.7 million compared with $43.4 million in the same 2013 period and $26.7 million in the second quarter of 2014. The year-over-year increase of 15% was driven primarily by D&A growth; TPS share gains and lower taxes, which more than offset the impact of lower U.S. mortgage volumes, unfavorable foreign currency translation and higher interest expense. Diluted EPS from continuing operations totaled $0.54 for the third quarter of 2014 compared with $0.45 in the third quarter of 2013. Third quarter net income and diluted EPS also benefited from higher non-operating gains compared to 2013 levels. Adjusted diluted EPS totaled $0.49, up from $0.47 in the same 2013 period reflecting the positive impacts of D&A revenue growth, lower taxes and share repurchases partially offset by higher interest expense.
Adjusted EBITDA totaled $113.4 million in third quarter 2014 compared with $107.5 million in the same prior year period and $97.3 million in second quarter 2014. Third quarter 2014 adjusted EBITDA margin was 31%, compared with 30% in the prior year and 27% in the second quarter of 2014. The year-over-year increase in adjusted EBITDA was principally the result of D&A revenue growth and favorable business mix, lower transformation program costs and continued productivity. D&A adjusted EBITDA totaled $61.7 million, a 28% increase from 2013, as higher revenues from insurance and spatial solutions and international operations more than offset the impact of lower mortgage loan application volumes, unfavorable currency translation and the exit of a non-core product line. TPS adjusted EBITDA decreased 16% to $58.5 million compared with prior-year levels driven primarily by lower U.S. mortgage market volumes and the impact of lower project-related and discretionary spending.
Liquidity and Capital Resources
At September 30, 2014, the Company had cash and cash equivalents of $127.6 million compared with $134.4 million at December 31, 2013. Total debt as of September 30, 2014 was approximately $1.4 billion, up $571.8 million from December 31, 2013. The increase in outstanding debt was primarily the result of the completion of the acquisition of Marshall & Swift/Boeckh (MSB) and DataQuick Information Systems (DQ) on March 25, 2014. As of September 30, 2014, the Company had available capacity on its revolving credit facility under the Credit Agreement of $405.0 million.
During the third quarter of 2014, the Company repaid approximately $62 million in term loan, revolving and other debt obligations. The Company also repurchased 1.48 million of its common shares for a total of $40.7 million during the third quarter. During the first nine months of 2014, the Company repurchased approximately 2.54 million of its common shares.
Free cash flow (FCF) for the twelve months ended September 30, 2014 totaled $213.0 million, which represented 61% of adjusted EBITDA. Year-to-date 2014 FCF totaled $148.4 million or 54% of adjusted EBITDA. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets. Net operating cash provided by continuing operations for the nine months ended September 30, 2014 was $210.7 million.
Operational Excellence Programs
The Company launched its TTI during mid-2012. The primary objective of the TTI is to convert the Company's existing technology infrastructure to a new platform which is expected to provide new functionality, increased performance and a reduction in application management and development costs commencing in the second half of 2015. In the third quarter of 2014, the Company successfully completed the migration of its Dallas, Texas data center to a Dell Services operated facility. Third quarter 2014 charges related to the migration of our data centers in connection with TTI implementation totaled $2.4 million.
During the fourth quarter of 2013, CoreLogic launched a cost reduction program and operational initiatives designed to lower 2014 operating expenses by at least $25 million. Third quarter 2014 savings associated with these programs totaled $8.1 million.
Asset Management and Processing Solutions (AMPS)
During the first quarter of 2014, CoreLogic announced its intention to divest its AMPS segment as part of the Company’s strategic transformation program. During the third quarter, CoreLogic completed the sale of its Collateral Solutions and Field Services business units to Mortgage Contracting Services, LLC (MCS). The Collateral Solutions and Field Services units accounted for approximately 72% of AMPS revenues during 2013. Total consideration, excluding working capital adjustments, for the sale of the Collateral Solutions and Field Services units included $25 million at closing and an additional contingent amount of up to $20 million based on the achievement of certain performance thresholds during the year following the closing of the transaction.
The remaining units of the former AMPS segment were integrated into the Company’s TPS segment as ongoing operations. For the third quarter of 2014, these business lines collectively generated revenues, operating income from continuing operations and adjusted EBITDA of approximately $16.3 million, $4.0 million and $4.3 million, respectively.
2014 Financial Guidance (Continuing Operations)
Based on current business conditions and trends, available market estimates of fourth quarter of U.S. mortgage origination volumes and the forecast contributions of the retained AMPS business units mentioned above, the Company has updated its 2014 guidance ranges as follows: revenues, adjusted EBITDA and adjusted EPS of $1.39 to $1.41 billion, $350 to $360 million and $1.27 to $1.35 per share, respectively.
Teleconference/Webcast
CoreLogic management will host a live webcast and conference call on Thursday, October 23, 2014, at 8:00 a.m. Pacific time (11:00 a.m. Eastern Time) to discuss these results. All interested parties are invited to listen to the event via webcast on the CoreLogic website at http://investor.corelogic.com. Alternatively, participants may use the following dial-in numbers: 1- 877-546-5021 for U.S./Canada callers or 857-244-7553 for international callers. The Conference ID for the call is 47271251.
A replay of the webcast will be available on the CoreLogic investor website for 30 days and also through the conference call number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 80712789.
Additional detail on the Company's third quarter results is included in the quarterly financial supplement, available on the Investor Relations page at http://investor.corelogic.com.
Media Contact: Alyson Austin, office phone: 949-214-1414, e-mail: alaustin@corelogic.com
Investor Contact: Dan Smith, office phone: 703-610-5410, e-mail: danlsmith@corelogic.com
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The Company's combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk.
Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
Safe Harbor / Forward Looking Statements
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the Company's investment and strategic growth plans, such as cost productivity and the TTI; the Company's overall financial performance, including future revenue and profit growth and market position, and the Company's margin and cash flow profile; the Company's full-year expected results and updated 2014 financial guidance; mortgage and housing market trends, including mortgage origination volumes; and our plans to reduce our outstanding debt and continue to return capital to shareholders through our share repurchase program. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include failure to successfully integrate the operations, technology, infrastructure and employees of MSB and DQ; and the additional risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K, as amended or updated by our Quarterly Reports on Form 10-Q. These additional risks and uncertainties include but are not limited to: limitations on access to or increase in prices for data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data; compromises in the security of our data, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer lending industries and the economy generally; our ability to protect proprietary rights; our TTI and growth strategies and our ability to effectively and efficiently implement them; risks related to the outsourcing of services and international operations; our indebtedness and the restrictions in our various debt agreements; our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof; the inability to control the dividend policies of our partially-owned affiliates; and impairments in our goodwill or other intangible assets. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
This press release contains certain non-GAAP financial measures which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the most directly comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is included in this press release. The Company is not able to provide a reconciliation of projected adjusted EBIDTA or projected adjusted earnings per share, where provided, to expected results due to the unknown effect, timing and potential significance of special charges or gains.
The Company believes that its presentation of non-GAAP measures, such as adjusted EBITDA, adjusted EPS and FCF, provides useful supplemental information to investors and management regarding CoreLogic's financial condition and results. Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortization, non-cash stock compensation, non-operating gains/losses and other one-time adjustments plus pretax equity in earnings of affiliates. Adjusted net income is defined as income from continuing operations before equity earnings of affiliates, adjusted for non-cash stock compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments plus pretax equity in earnings of affiliates, tax affected at an assumed effective tax rate of 38% for 2014 and 40% for all periods prior to 2014. Adjusted EPS is derived by dividing adjusted net income by diluted weighted average shares. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets. Other firms may calculate non-GAAP measures differently than CoreLogic, which limits comparability between companies.
(Additional Financial Data Follow)
CORELOGIC, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
UNAUDITED
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating revenues | $ | 367,454 | $ | 356,581 | $ | 1,059,528 | $ | 1,075,879 | |||||||
Cost of services (excluding depreciation and amortization shown below) | 185,168 | 177,898 | 564,916 | 539,796 | |||||||||||
Selling, general and administrative expenses | 68,099 | 87,886 | 255,488 | 276,257 | |||||||||||
Depreciation and amortization | 35,765 | 29,436 | 100,636 | 96,697 | |||||||||||
Impairment loss | 667 | — | 4,888 | 1,721 | |||||||||||
Total operating expenses | 289,699 | 295,220 | 925,928 | 914,471 | |||||||||||
Operating income | 77,755 | 61,361 | 133,600 | 161,408 | |||||||||||
Interest expense: | |||||||||||||||
Interest income | 870 | 1,040 | 3,083 | 2,495 | |||||||||||
Interest expense | 18,398 | 12,552 | 52,547 | 37,365 | |||||||||||
Total interest expense, net | (17,528 | ) | (11,512 | ) | (49,464 | ) | (34,870 | ) | |||||||
Gain on investments and other, net | 183 | 7,627 | 2,825 | 9,362 | |||||||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | 60,410 | 57,476 | 86,961 | 135,900 | |||||||||||
Provision for income taxes | 14,319 | 19,765 | 23,070 | 50,087 | |||||||||||
Income from continuing operations before equity in earnings of affiliates | 46,091 | 37,711 | 63,891 | 85,813 | |||||||||||
Equity in earnings of affiliates, net of tax | 4,032 | 5,716 | 10,289 | 23,848 | |||||||||||
Net income from continuing operations | 50,123 | 43,427 | 74,180 | 109,661 | |||||||||||
(Loss)/income from discontinued operations, net of tax | (4,856 | ) | 5,332 | (15,219 | ) | 17,935 | |||||||||
Gain/(loss) from sale of discontinued operations, net of tax | 476 | (5,052 | ) | 476 | (6,796 | ) | |||||||||
Net income | 45,743 | 43,707 | 59,437 | 120,800 | |||||||||||
Less: Net income attributable to noncontrolling interests | 404 | 45 | 899 | 19 | |||||||||||
Net income attributable to CoreLogic | $ | 45,339 | $ | 43,662 | $ | 58,538 | $ | 120,781 | |||||||
Amounts attributable to CoreLogic stockholders: | |||||||||||||||
Net income from continuing operations | $ | 49,719 | $ | 43,382 | $ | 73,281 | $ | 109,642 | |||||||
(Loss)/income from discontinued operations, net of tax | (4,856 | ) | 5,332 | (15,219 | ) | 17,935 | |||||||||
Gain/(loss) from sale of discontinued operations, net of tax | 476 | (5,052 | ) | 476 | (6,796 | ) | |||||||||
Net income attributable to CoreLogic | $ | 45,339 | $ | 43,662 | $ | 58,538 | $ | 120,781 | |||||||
Basic income per share: | |||||||||||||||
Net income from continuing operations | $ | 0.55 | $ | 0.46 | $ | 0.80 | $ | 1.14 | |||||||
(Loss)/income from discontinued operations, net of tax | (0.05 | ) | 0.06 | (0.17 | ) | 0.19 | |||||||||
Gain/(loss) from sale of discontinued operations, net of tax | 0.01 | (0.05 | ) | 0.01 | (0.07 | ) | |||||||||
Net income attributable to CoreLogic | $ | 0.51 | $ | 0.47 | $ | 0.64 | $ | 1.26 | |||||||
Diluted income per share: | |||||||||||||||
Net income from continuing operations | $ | 0.54 | $ | 0.45 | $ | 0.79 | $ | 1.12 | |||||||
(Loss)/income from discontinued operations, net of tax | (0.05 | ) | 0.06 | (0.16 | ) | 0.18 | |||||||||
Gain/(loss) from sale of discontinued operations, net of tax | 0.01 | (0.05 | ) | 0.01 | (0.07 | ) | |||||||||
Net income attributable to CoreLogic | $ | 0.50 | $ | 0.46 | $ | 0.64 | $ | 1.23 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 90,518 | 94,773 | 91,234 | 95,802 | |||||||||||
Diluted | 91,987 | 96,793 | 92,833 | 97,672 | |||||||||||
Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.
CORELOGIC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands, except par value) | September 30, | December 31, | |||||
Assets | 2014 | 2013 | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 127,618 | $ | 134,419 | |||
Marketable securities | 21,828 | 22,220 | |||||
Accounts receivable (less allowance for doubtful accounts of $11,459 and $13,045 as of September 30, 2014 and December 31, 2013, respectively) | 223,697 | 215,020 | |||||
Prepaid expenses and other current assets | 51,976 | 50,829 | |||||
Income tax receivable | — | 13,516 | |||||
Deferred income tax assets, current | 100,688 | 86,487 | |||||
Assets of discontinued operations | 5,167 | 38,926 | |||||
Total current assets | 530,974 | 561,417 | |||||
Property and equipment, net | 365,750 | 197,542 | |||||
Goodwill, net | 1,779,391 | 1,468,290 | |||||
Other intangible assets, net | 283,643 | 175,808 | |||||
Capitalized data and database costs, net | 336,666 | 330,188 | |||||
Investment in affiliates, net | 103,432 | 95,343 | |||||
Restricted cash | 13,493 | 12,050 | |||||
Other assets | 161,565 | 162,493 | |||||
Total assets | $ | 3,574,914 | $ | 3,003,131 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 148,215 | $ | 156,937 | |||
Accrued salaries and benefits | 75,004 | 104,781 | |||||
Deferred revenue, current | 245,520 | 223,603 | |||||
Income taxes payable | 44,313 | — | |||||
Current portion of long-term debt | 21,927 | 28,154 | |||||
Liabilities of discontinued operations | 23,480 | 20,616 | |||||
Total current liabilities | 558,459 | 534,091 | |||||
Long-term debt, net of current | 1,389,807 | 811,776 | |||||
Deferred revenue, net of current | 379,390 | 377,855 | |||||
Deferred income tax liabilities, long term | 68,538 | 76,969 | |||||
Other liabilities | 131,025 | 147,865 | |||||
Total liabilities | 2,527,219 | 1,948,556 | |||||
Redeemable noncontrolling interests | 11,075 | 10,202 | |||||
Equity: | |||||||
CoreLogic stockholders' equity: | |||||||
Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $0.00001 par value; 180,000 shares authorized; 89,732 and 91,254 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | 1 | 1 | |||||
Additional paid-in capital | 612,154 | 672,165 | |||||
Retained earnings | 484,359 | 425,796 | |||||
Accumulated other comprehensive loss | (59,894 | ) | (53,589 | ) | |||
Total equity | 1,036,620 | 1,044,373 | |||||
Total liabilities and equity | $ | 3,574,914 | $ | 3,003,131 | |||
Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.
CORELOGIC, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
For the Nine Months Ended | |||||||
September 30, | |||||||
(in thousands) | 2014 | 2013 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 59,437 | $ | 120,800 | |||
Less: (Loss)/income from discontinued operations, net of tax | (15,219 | ) | 17,935 | ||||
Less: Gain/(loss) from sale of discontinued operations, net of tax | 476 | (6,796 | ) | ||||
Net income from continuing operations | 74,180 | 109,661 | |||||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||||||
Depreciation and amortization | 100,636 | 96,697 | |||||
Impairment loss | 4,888 | 1,721 | |||||
Provision for bad debt and claim losses | 10,254 | 10,058 | |||||
Share-based compensation | 22,077 | 20,688 | |||||
Excess tax benefit related to stock options | (6,352 | ) | (2,895 | ) | |||
Equity in earnings of affiliates, net of taxes | (10,289 | ) | (23,848 | ) | |||
Gain on sale of property and equipment | (13,858 | ) | — | ||||
Loss on early extinguishment of debt | 763 | — | |||||
Deferred income tax | 11,172 | 3,875 | |||||
Gain on investments and other, net | (2,825 | ) | (9,362 | ) | |||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 6,515 | (18,818 | ) | ||||
Prepaid expenses and other current assets | 1,099 | (2,696 | ) | ||||
Accounts payable and accrued expenses | (50,357 | ) | (15,186 | ) | |||
Deferred revenue | (3,590 | ) | 43,616 | ||||
Income taxes | 48,854 | 10,644 | |||||
Dividends received from investments in affiliates | 32,496 | 30,062 | |||||
Other assets and other liabilities | (14,920 | ) | (16,696 | ) | |||
Net cash provided by operating activities - continuing operations | 210,743 | 237,521 | |||||
Net cash (used by)/provided by operating activities - discontinued operations | (2,104 | ) | 23,569 | ||||
Total cash provided by operating activities | $ | 208,639 | $ | 261,090 | |||
Cash flows from investing activities: | |||||||
Purchases of capitalized data and other intangible assets | $ | (25,207 | ) | $ | (28,795 | ) | |
Purchases of property and equipment | (37,122 | ) | (51,667 | ) | |||
Cash paid for acquisitions, net of cash acquired | (672,336 | ) | (70,904 | ) | |||
Purchases of investments | — | (2,351 | ) | ||||
Cash received from sale of discontinued operations | 25,525 | 2,263 | |||||
Proceeds from sale of property and equipment | 13,937 | — | |||||
Change in restricted cash | (1,443 | ) | 5,728 | ||||
Net cash used in investing activities - continuing operations | (696,646 | ) | (145,726 | ) | |||
Net cash provided by investing activities - discontinued operations | 1,536 | 1,863 | |||||
Total cash used in investing activities | $ | (695,110 | ) | $ | (143,863 | ) | |
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | $ | 690,017 | $ | 1,075 | |||
Debt issuance costs | (14,042 | ) | — | ||||
Repayment of long-term debt | (118,836 | ) | (4,516 | ) | |||
Proceeds from issuance of stock related to stock options and employee benefit plans | 5,736 | 11,662 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (15,247 | ) | (6,893 | ) | |||
Shares repurchased and retired | (72,781 | ) | (133,565 | ) | |||
Excess tax benefit related to stock options | 6,352 | 2,895 | |||||
Net cash provided by/(used in) financing activities - continuing operations | 481,199 | (129,342 | ) | ||||
Net cash provided by financing activities - discontinued operations | — | — | |||||
Total cash provided by/(used in) financing activities | $ | 481,199 | $ | (129,342 | ) | ||
Effect of exchange rate on cash | (144 | ) | (1,341 | ) | |||
Net decrease in cash and cash equivalents | (5,416 | ) | (13,456 | ) | |||
Cash and cash equivalents at beginning of period | 134,419 | 149,567 | |||||
Less: Change in cash and cash equivalents - discontinued operations | (568 | ) | 25,432 | ||||
Plus: Cash swept from discontinued operations | (1,953 | ) | 25,788 | ||||
Cash and cash equivalents at end of period | $ | 127,618 | $ | 136,467 | |||
Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.
CORELOGIC, INC.
RECONCILIATION OF ADJUSTED EBITDA
For the Three Months Ended September 30, 2014 | |||||||||||||||
(in thousands) | D&A | TPS | Corporate | Elim | CoreLogic | ||||||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | $ | 33,021 | $ | 44,534 | $ | (17,145 | ) | $ | — | $ | 60,410 | ||||
Pretax equity in earnings | 230 | 6,312 | (12 | ) | — | 6,530 | |||||||||
Depreciation & amortization | 26,250 | 6,571 | 2,944 | — | 35,765 | ||||||||||
Total interest expense | (84 | ) | 74 | 17,538 | — | 17,528 | |||||||||
Stock-based compensation | 1,578 | 1,057 | 3,682 | — | 6,317 | ||||||||||
Impairment Loss | 667 | — | — | — | 667 | ||||||||||
Non-operating investment (gains)/losses | — | — | (13,838 | ) | — | (13,838 | ) | ||||||||
Efficiency investments | — | — | 142 | — | 142 | ||||||||||
Transaction Costs | — | — | (109 | ) | — | (109 | ) | ||||||||
Adjusted EBITDA | $ | 61,662 | $ | 58,548 | $ | (6,798 | ) | $ | — | $ | 113,412 | ||||
For the Three Months Ended September 30, 2013 | |||||||||||||||
(in thousands) | D&A | TPS | Corporate | Elim | CoreLogic | ||||||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | $ | 36,136 | $ | 50,525 | $ | (29,185 | ) | $ | — | $ | 57,476 | ||||
Pretax equity in earnings | 456 | 8,786 | 16 | — | 9,258 | ||||||||||
Depreciation & amortization | 18,659 | 7,985 | 2,792 | — | 29,436 | ||||||||||
Total interest expense | (168 | ) | 136 | 11,544 | — | 11,512 | |||||||||
Stock-based compensation | (383 | ) | 2,128 | 2,117 | — | 3,862 | |||||||||
Non-operating investment (gains)/losses | (6,638 | ) | — | — | — | (6,638 | ) | ||||||||
Efficiency investments | — | — | 1,079 | — | 1,079 | ||||||||||
Transaction Costs | — | — | 1,468 | — | 1,468 | ||||||||||
Adjusted EBITDA | $ | 48,062 | $ | 69,560 | $ | (10,169 | ) | $ | — | $ | 107,453 | ||||
CORELOGIC, INC.
RECONCILIATION OF ADJUSTED DILUTED EPS
For the Three Months Ended September 30, 2014 | |||||||||||||||
(in thousands, except per share amounts) | D&A | TPS | Corporate | Elim | CoreLogic | ||||||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | $ | 33,021 | $ | 44,534 | $ | (17,145 | ) | $ | — | $ | 60,410 | ||||
Pretax equity in earnings | 230 | 6,312 | (12 | ) | — | 6,530 | |||||||||
Stock-based compensation | 1,578 | 1,057 | 3,682 | — | 6,317 | ||||||||||
Non-operating investment (gains)/losses | — | — | (13,838 | ) | — | (13,838 | ) | ||||||||
Efficiency investments | — | — | 142 | — | 142 | ||||||||||
Transaction costs | — | — | (109 | ) | — | (109 | ) | ||||||||
Impairment Loss | 667 | — | — | — | 667 | ||||||||||
Amortization of acquired intangibles | 7,475 | 2,671 | — | — | 10,146 | ||||||||||
Depreciation of certain acquired proprietary technology included in property and equipment | 2,880 | — | — | — | 2,880 | ||||||||||
Adjusted pretax income from continuing operations | $ | 45,851 | $ | 54,574 | $ | (27,280 | ) | $ | — | $ | 73,145 | ||||
Tax provision (38% rate) | 27,795 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 404 | ||||||||||||||
Adjusted net income attributable to CoreLogic | $ | 44,946 | |||||||||||||
Weighted average diluted common shares outstanding | 91,987 | ||||||||||||||
Adjusted diluted EPS | $ | 0.49 | |||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||
(in thousands, except per share amounts) | D&A | TPS | Corporate | Elim | CoreLogic | ||||||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | $ | 36,136 | $ | 50,525 | $ | (29,185 | ) | $ | — | $ | 57,476 | ||||
Pretax equity in earnings | 456 | 8,786 | 16 | — | 9,258 | ||||||||||
Stock-based compensation | (383 | ) | 2,128 | 2,117 | — | 3,862 | |||||||||
Non-operating investment (gains)/losses | (6,638 | ) | — | — | — | (6,638 | ) | ||||||||
Efficiency investments | — | — | 1,079 | — | 1,079 | ||||||||||
Spin & legacy corporate costs | — | — | 1,468 | — | 1,468 | ||||||||||
Accelerated depreciation on TTI | — | — | 2 | — | 2 | ||||||||||
Amortization of acquired intangibles | 4,826 | 4,268 | — | — | 9,094 | ||||||||||
Adjusted pretax income from continuing operations | $ | 34,397 | $ | 65,707 | $ | (24,503 | ) | $ | — | $ | 75,601 | ||||
Tax provision (40% rate) | 30,240 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 45 | ||||||||||||||
Adjusted net income attributable to CoreLogic | $ | 45,316 | |||||||||||||
Weighted average diluted common shares outstanding | 96,793 | ||||||||||||||
Adjusted diluted EPS | $ | 0.47 | |||||||||||||
CORELOGIC, INC.
RECONCILIATION TO FREE CASH FLOW
Twelve Months Ended September 30, 2014 | ||||
Net cash provided by operating activities - continuing operations | $ | 301,444 | ||
Purchases of capitalized data and other intangible assets | (34,253 | ) | ||
Purchases of property and equipment | (54,200 | ) | ||
Free Cash Flow | $ | 212,991 | ||