Lender Processing Services Reports Third Quarter 2012 Earnings

        Lender Processing Services Reports Third Quarter 2012 Earnings

Adjusted EPS increased 20% from prior year to $0.71

Technology, Data and Analytics revenue increased 11% with growth across all
lines of business

Investment in technology-driven solutions supports mortgage industry
requirements

PR Newswire

JACKSONVILLE, Fla., Oct. 29, 2012

JACKSONVILLE, Fla., Oct. 29, 2012 /PRNewswire/ --Lender Processing Services,
Inc. (NYSE:LPS), a leading provider of integrated technology and services to
the mortgage and real estate industries, today reported consolidated revenue
of $512.7 million for the third quarter of 2012, a decrease of 1.3% from the
prior year quarter, and GAAP net earnings of $58.3 million, or $0.69 per
diluted share, an increase of 44% from the prior year quarter.

(Logo: http://photos.prnewswire.com/prnh/20120802/FL50731LOGO )

Third Quarter Highlights

  oTechnology, Data and Analytics revenue of $192.0 million, up 11% from
    prior year
  oAdjusted earnings per diluted share of $0.71, including $0.02 per share
    loss from discontinued operations
  oEBITDA margin of 26.7%, up 460 basis points from prior year
  oAdjusted free cash flow of $69.2 million in the third quarter and $252.8
    million year-to-date
  oInitiated debt refinancing to lower cost of capital and further strengthen
    the balance sheet
  oCompleted conversion of 240,000 home equity loans to the MSP Servicing
    Technology platform

"Our strong third quarter results demonstrate LPS' continued delivery of
high-value, technology-driven solutions to our clients to meet evolving
compliance, loan quality and efficiency requirements," said Hugh Harris,
president and chief executive officer of LPS. "Our proven business model
consistently generates strong cash flow allowing LPS to invest in innovative
solutions that enhance the mortgage lending value chain, enable our clients to
succeed, and drive long-term value for our shareholders through sustainable
growth."

"The positive quarterly results were driven by increased demand for LPS'
technology solutions, record low interest rates resulting in strong refinance
activity and the benefits of ongoing investments to expand our platforms.
Technology, Data and Analytics is our growth platform for the future, and we
are very pleased with its strong performance this quarter," commented Chief
Financial Officer Tom Schilling. "Strong margins and cash flow resulted from
our focus on high-return core markets, disciplined cost management and
favorable revenue mix."

Operating income for the third quarter increased 19.4% to $112.4 million from
the prior year period, while the operating margin increased to 21.9% from
18.1% in the third quarter of 2011.

Net cash provided by operating activities for the third quarter of 2012 was
$85.7 million compared to $102.7 million in the prior year period, and $303.6
million in the first three quarters of 2012 compared to $329.6 million in the
same period in 2011. Adjusted free cash flow for the third quarter of 2012
decreased to $69.2 million from $76.6 million in the prior year due to changes
in working capital, which offset the increase in net earnings. Adjusted free
cash flow is defined as net cash provided by operating activities minus
certain non-recurring expenses and additions to property, equipment and
computer software. 

Technology, Data and Analytics Segment (TD&A)

Revenue for the Technology, Data and Analytics segment for the third quarter
increased 11.2% from the prior year to $192.0 million as a result of growth in
all lines of business. Revenue from Servicing Technology increased 4.0%
primarily due to loan growth on the MSP platform; Default Technology revenue
increased 28.3% primarily reflecting market share gains achieved during 2011
and strong demand for professional services; and Origination Technology
revenue increased 25.3% due principally to higher transaction volume on the
Loan Quality Gateway platform resulting from elevated refinance activity and
new client implementations. In addition, Data and Analytics revenue increased
7.5% driven by greater demand for data to support elevated origination volume.
Third quarter operating income increased to $60.4 million from $58.7 million
in the same period in 2011 as a result of higher income from all TD&A
sub-segments.

Transaction Services Segment

Revenue for the Transaction Services segment for the third quarter decreased
7.9% from the prior year period to $320.7 million. Origination Services
revenue increased 15.7% to $154.1 million from the prior year as a result of
higher refinance origination volume that generated increased title and escrow
orders, partially offset by lower appraisal volume as the Company exited lower
margin contracts. Default Services revenue decreased 22.5% to $166.7 million
from the prior year quarter primarily reflecting lower transaction volumes due
to industry-wide foreclosure delays. Operating income increased 15.0% from
the prior year quarter to $64.2 million, while the operating margin increased
400 basis points to 20.0% reflecting higher Origination Services
contributions, favorable revenue mix and prudent cost management.

Corporate

Net corporate expenses in the third quarter of 2012 decreased to $12.1 million
from $20.3 million in the prior year period primarily as a result of current
period legal-related expenses being charged against our previously established
legal and regulatory reserve.

Balance Sheet and Capital Resources

During the third quarter, the company initiatedsenior debt refinancing to
lower the cost of capital and further strengthen the balance sheet by
extending the maturity of long-term debt and reducing secured debt. The
Company commenced an offering of $600 million of Senior Notes due 2023 at a
coupon of 5.75% issued at par value. The net proceeds, along with cash on
hand, is being used to repay $609 million of outstandingdebt including $362
million of8.125% Notes due 2016 and $247 million of Term Loan B under its
senior credit facility, and pay fees and expenses. The refinancing will
result in annual net interest expense savings of approximately $9.0 million.
The Senior Note offering was completed on October 12, 2012.

The legal and regulatory accrual decreased by $6.7 million during the current
quarter to $196.4 million, due to the payment of expenses that were previously
recognized in our legal and regulatory reserve established in prior quarters.
No reserves for legal and regulatory matters were added during the third
quarter.

The company ended the third quarter with cash of $160.7 million compared to
$138.5 million in the second quarter 2012.

Outlook

Based on the current environment, the company expects fourth quarter 2012
revenue to be in the range of $475 million to $495 million and adjusted net
earnings per diluted share to be in the range of $0.65 to $0.69.

Earnings Conference Call and Webcast

LPS will host a conference call tomorrow at 10:00 a.m. ET with a live webcast
on the Investor Relations section of its website at www.lpsvcs.com. Earnings
information, including this press release and our financial results
presentation, is available on the website. A replay of the webcast will be
available on the website shortly after the call where it will be archived for
one month. A replay of the call will be available until November 6, 2012, by
dialing 888-203-1112 (access code: 4041948).

About Lender Processing Services

LPS (NYSE: LPS) delivers comprehensive technology solutions and services, as
well as powerful data and analytics, to the nation's top mortgage lenders,
servicers and investors. As a proven and trusted partner with deep client
relationships, LPS offers the only end-to-end suite of solutions that provides
major U.S. banks and many federal government agencies the technology and data
needed to support mortgage lending and servicing operations, meet unique
regulatory and compliance requirements and mitigate risk.

These integrated solutions support origination, servicing, portfolio retention
and default servicing. LPS' servicing solutions include MSP, the industry's
leading loan-servicing platform, which is used to service approximately 50
percent of all U.S. mortgages by dollar volume. The company also provides
proprietary data and analytics for the mortgage, real estate and capital
markets industries. Lender Processing Services is a Fortune 1000 company
headquartered in Jacksonville, Fla., employing approximately 8,000
professionals. For more information, please visitwww.lpsvcs.com.

Use of Non-GAAP Financial Information

U.S. 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 "EBITDA" (GAAP operating income
plus depreciation and amortization); "EBITDA, as adjusted" (EBITDA adjusted
for the impact of certain non-recurring adjustments, if applicable); "EBIT, as
adjusted" or "adjusted operating income" (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" or "adjusted EPS 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 and other 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 measures. A reconciliation of these non-GAAP measures to related GAAP
measures is included in the attachments to this release.

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 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 enforcement proceedings, 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; the impact of
continued delays in the foreclosure process on the timing and collectability
of our fees for certain of our services; 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 and other filings with the
Securities and Exchange Commission.



                                                                   Exhibit A
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)
                              Three months ended      Nine months ended
                              September 30,           September 30,
                              2012       2011         2012         2011
                              (In thousands, except per share data)
Revenues                      $       $        $         $   
                              512,676   519,437      1,551,904    1,556,280
Expenses:
  Operating expenses          375,716    404,423      1,150,905    1,175,381
  Depreciation and            24,516     20,822       72,538       66,445
  amortization
  Legal and regulatory        -          -            144,476      -
  charges
  Exit costs, impairments     -          -            -            29,198
  and other charges
      Total expenses          400,232    425,245      1,367,919    1,271,024
      Operating income        112,444    94,192       183,985      285,256
Other income (expense):
  Interest income             463        353          1,365        1,064
  Interest expense            (16,112)   (22,986)     (48,969)     (50,961)
  Other income (expense),     14         (128)        173          (174)
  net
      Total other income      (15,635)   (22,761)     (47,431)     (50,071)
      (expense)
      Earnings from
      continuing operations   96,809     71,431       136,554      235,185
      before income taxes
Provision for income taxes    36,110     26,787       60,973       88,195
      Net earnings from       60,699     44,644       75,581       146,990
      continuing operations
Loss from discontinued        (2,395)    (4,194)      (8,036)      (29,246)
operations, net of tax
Net earnings                  $      $       $       $    
                              58,304    40,450       67,545       117,744
                                                      -            -
Net earnings per share -      $      $       $       $     
diluted from continuing         0.71    0.53       0.88       1.71
operations
Net loss per share - diluted  (0.02)     (0.05)       (0.08)       (0.34)
from discontinued operations
Net earnings per share -      $      $       $       $     
diluted                         0.69    0.48       0.80       1.37
Weighted average shares       84,948     84,415       84,774       86,108
outstanding - diluted





                                                                 Exhibit B
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
                                                  September 30,  December 31,
                                                  2012           2011
                                                  (In thousands)
Assets
Current assets:
   Cash and cash equivalents                      $           $   
                                                  160,716       77,355
   Trade receivables, net of allowance for        308,359        345,048
   doubtful accounts
   Other receivables                              3,652          1,423
   Prepaid expenses and other current assets      33,726         33,004
   Deferred income taxes                          111,853        74,006
         Total current assets                     618,306        530,836
Property and equipment, net                       112,463        121,245
Computer software, net                            241,103        228,882
Other intangible assets, net                      26,299         39,140
Goodwill                                          1,126,090      1,132,828
Other non-current assets                          245,267        192,484
         Total assets                             $            $  2,245,415
                                                  2,369,528
Liabilities and Stockholders' Equity
Current liabilities:
   Current portion of long-term debt              $         $   
                                                  2,500          39,310
   Trade accounts payable                         37,655         43,105
   Accrued salaries and benefits                  79,042         64,383
   Legal and regulatory accrual                   196,446        78,483
   Other accrued liabilities                      158,659        168,627
   Deferred revenues                              53,210         64,078
         Total current liabilities                527,512        457,986
Deferred revenues                                 25,724         34,737
Deferred income taxes, net                        160,360        122,755
Long-term debt, net of current portion            1,074,500      1,109,850
Other non-current liabilities                     36,375         32,099
         Total liabilities                        1,824,471      1,757,427
Stockholders' equity:
   Preferred stock $0.0001 par value; 50 million  -              -
   shares authorized, none
         issued at September 30, 2012 and
         December 31, 2011
   Common stock $0.0001 par value; 500 million    10             10
   shares authorized, 97.4 million
         shares issued at September 30, 2012 and
         December 31, 2011
   Additional paid-in capital                     253,285        250,533
   Retained earnings                              699,895        658,146
   Accumulated other comprehensive loss           (3,427)        (1,783)
   Treasury stock at cost; 12.7 million and 13.0
   million shares at
         September 30, 2012 and December 31,      (404,706)      (418,918)
         2011, respectively
         Total stockholders' equity               545,057        487,988
         Total liabilities and stockholders'      $            $  2,245,415
         equity                                   2,369,528



                                                                 Exhibit C
 LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)
                                               Nine months ended September 30,
                                               2012              2011
                                               (In thousands)
 Cash flows from operating activities:
  Net earnings                                 $             $   
                                               67,545           117,744
  Adjustments to reconcile net earnings to
  net
    cash provided by operating activities:
     Depreciation and amortization             73,407            73,753
     Amortization of debt issuance costs       3,317             8,901
     Asset impairment charges                  3,812             31,855
     (Gain) loss on sale of discontinued       (6,688)           1,486
     operations
     Deferred income taxes, net                776               11,985
     Stock-based compensation cost             19,520            28,179
     Income tax effect of equity compensation  (494)             588
     Changes in assets and liabilities, net
     of effects of acquisitions:
        Trade receivables                      27,543            64,291
        Other receivables                      (1,748)           2,708
        Prepaid expenses and other assets      (18,512)          (6,258)
        Deferred revenues                      10,605            (3,382)
        Accounts payable, accrued liabilities  124,487           (2,249)
        and other liabilities
           Net cash provided by operating      303,570           329,601
           activities
 Cash flows from investing activities:
  Additions to property and equipment          (16,109)          (25,970)
  Additions to capitalized software            (56,088)          (55,501)
  Purchases of investments, net of proceeds    (17,604)          (14,918)
  from sales
  Acquisition of title plants and property     (33,600)          (15,686)
  records data
  Acquisitions, net of cash acquired           (12,250)          (9,802)
  Proceeds from sale of discontinued           16,206            -
  operations, net of cash distributed
           Net cash used in investing          (119,445)         (121,877)
           activities
 Cash flows from financing activities:
  Borrowings                                   -                 960,000
  Debt service payments                        (72,082)          (942,915)
  Exercise of stock options and restricted     (1,792)           (2,680)
  stock vesting
  Income tax effect of equity compensation     494               (588)
  Dividends paid                               (25,384)          (26,006)
  Debt issuance costs paid                     -                 (22,059)
  Treasury stock repurchases                   -                 (136,878)
  Bond repurchases                             -                 (4,925)
  Payment of contingent consideration related  (2,000)           -
  to acquisitions
           Net cash used in financing          (100,764)         (176,051)
           activities
           Net increase in cash and cash       83,361            31,673
           equivalents
 Cash and cash equivalents, beginning of       77,355            52,287
 period
 Cash and cash equivalents, end of period      $              $    
                                               160,716          83,960
 Supplemental disclosures of cash flow
 information:
  Cash paid for interest                       $             $    
                                               54,774           48,672
  Cash paid for taxes                          $             $    
                                               46,853           49,181



                                                                                                       Exhibit
                                                                                                       D
LENDER PROCESSING SERVICES,
INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL
INFORMATION - UNAUDITED
(In thousands)
                   YEAR-TO-DATE^(1)        QUARTER ^(1)
                   Q3-2012     Q3-2011     Q3-2012   Q2-2012   Q1-2012   Q4-2011   Q3-2011   Q2-2011   Q1-2011
     Revenues -
1.   Continuing
     Operations
     Technology,
     Data and
     Analytics:
      Technology   $          $          $         $         $161,290  $161,252  $156,414  $152,676  $151,243
                   503,790     460,333     173,985  168,515
       Servicing   331,207     314,249     111,572   111,284   108,351   107,103   107,273   103,676   103,300
       Technology
       Default     101,790     86,536      36,163    34,051    31,576    33,752    28,185    29,201    29,150
       Technology
       Origination 70,793      59,548      26,250    23,180    21,363    20,397    20,956    19,799    18,793
       Technology
      Data and     52,414      51,926      17,971    17,590    16,853    17,019    16,724    17,897    17,305
      Analytics
       Total       556,204     512,259     191,956   186,105   178,143   178,271   173,138   170,573   168,548
     Transaction
     Services:
      Origination  451,548     367,911     154,057   150,741   146,750   151,527   133,099   105,856   128,956
      Services
      Default      546,144     680,889     166,657   196,625   182,862   205,326   214,996   224,744   241,149
      Services
       Total       997,692     1,048,800   320,714   347,366   329,612   356,853   348,095   330,600   370,105
     Corporate     (1,992)     (4,779)     6         (264)     (1,734)   (1,292)   (1,796)   (1,513)   (1,470)
      Total        $1,551,904  $1,556,280  $         $         $506,021  $533,832  $519,437  $499,660  $537,183
      Revenue                              512,676  533,207
     Revenue
     Growth from
     Prior Year
     Period
     Technology,
     Data and
     Analytics:
      Technology   9.4%        3.1%        11.2%     10.4%     6.6%      4.6%      0.1%      2.7%      6.9%
       Servicing   5.4%        3.3%        4.0%      7.3%      4.9%      5.8%      4.0%      0.7%      5.3%
       Technology
       Default     17.6%       0.4%        28.3%     16.6%     8.3%      1.9%      -14.7%    15.1%     5.0%
       Technology
       Origination 18.9%       6.3%        25.3%     17.1%     13.7%     3.4%      4.7%      -2.7%     20.2%
       Technology
      Data and     0.9%        -6.8%       7.5%      -1.7%     -2.6%     -13.7%    -8.1%     -3.9%     -8.5%
      Analytics
       Total       8.6%        2.0%        10.9%     9.1%      5.7%      2.5%      -0.7%     2.0%      5.0%
     Transaction
     Services:
      Origination  22.7%       -13.7%      15.7%     42.4%     13.8%     -15.5%    -14.8%    -19.5%    -7.0%
      Services
      Default      -19.8%      -18.6%      -22.5%    -12.5%    -24.2%    -23.0%    -22.5%    -20.4%    -12.9%
      Services
       Total       -4.9%       -16.9%      -7.9%     5.1%      -10.9%    -20.0%    -19.7%    -20.1%    -10.9%
     Corporate     n/m         n/m         n/m       n/m       n/m       n/m       n/m       n/m       n/m
      Total        -0.3%       -11.5%      -1.3%     6.7%      -5.8%     -13.6%    -14.3%    -13.7%    -6.3%
      Revenue
     Revenue Growth from
     Sequential Period
     Technology,
     Data and
     Analytics:
      Technology   9.4%        3.1%        3.2%      4.5%      0.0%      3.1%      2.4%      0.9%      -1.9%
       Servicing   5.4%        3.3%        0.3%      2.7%      1.2%      -0.2%     3.5%      0.4%      2.0%
       Technology
       Default     17.6%       0.4%        6.2%      7.8%      -6.4%     19.8%     -3.5%     0.2%      -12.0%
       Technology
       Origination 18.9%       6.3%        13.2%     8.5%      4.7%      -2.7%     5.8%      5.4%      -4.8%
       Technology
      Data and     0.9%        -6.8%       2.2%      4.4%      -1.0%     1.8%      -6.6%     3.4%      -12.3%
      Analytics
       Total       8.6%        2.0%        3.1%      4.5%      -0.1%     3.0%      1.5%      1.2%      -3.1%
     Transaction
     Services:
      Origination  22.7%       -13.7%      2.2%      2.7%      -3.2%     13.8%     25.7%     -17.9%    -28.1%
      Services
      Default      -19.8%      -18.6%      -15.2%    7.5%      -10.9%    -4.5%     -4.3%     -6.8%     -9.6%
      Services
       Total       -4.9%       -16.9%      -7.7%     5.4%      -7.6%     2.5%      5.3%      -10.7%    -17.1%
     Corporate     n/m         n/m         n/m       n/m       n/m       n/m       n/m       n/m       n/m
      Total        -0.3%       -11.5%      -3.9%     5.4%      -5.2%     2.8%      4.0%      -7.0%     -13.1%
      Revenue
(1) 2011 revenues have been reclassified to conform
    to the current year presentation.



                                                                                                                            Exhibit E
LENDER PROCESSING SERVICES,
INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
INFORMATION - UNAUDITED
(In thousands, except per
share data)
                            YEAR-TO-DATE            QUARTER                                                                 YEAR ENDED
                            Q3-2012     Q3-2011     Q3-2012   Q2-2012    Q1-2012   Q4-2011    Q3-2011   Q2-2011   Q1-2011   12/31/2011
1.  Operating Results -
    Continuing Operations
    Consolidated
      Revenues              $          $1,556,280  $       $        $       $         $       $       $       $ 
                            1,551,904              512,676  533,207   506,021  533,832   519,437  499,660  537,183  2,090,112
      Operating Income      183,985     285,256     112,444   (22,760)   94,301    4,926      94,192    80,666    110,398   290,182
      (Loss), as reported
      Adjustments:
            Legal and
            Regulatory      144,476     -           -         144,476    -         78,484     -         -         -         78,484
            Charge (1)
            Exit costs,
            Impairments and -           29,198      -         -          -         27,714     -         9,887     19,311    56,912
            Other Charges
            (2)
      Operating Income, as  328,461     314,454     112,444   121,716    94,301    111,124    94,192    90,553    129,709   425,578
      adjusted
      Depreciation and      72,538      66,445      24,516    23,778     24,244    23,931     20,822    22,627    22,996    90,376
      Amortization
      EBITDA, as adjusted   $        $          $       $        $       $         $       $       $       $  
                            400,999     380,899     136,960  145,494   118,545  135,055   115,014  113,180  152,705  515,954
              Operating
              Margin, as    21.2%       20.2%       21.9%     22.8%      18.6%     20.8%      18.1%     18.1%     24.1%     20.4%
              adjusted
              EBITDA
              Margin, as    25.8%       24.5%       26.7%     27.3%      23.4%     25.3%      22.1%     22.7%     28.4%     24.7%
              adjusted
    Technology, Data and
    Analytics
      Revenues              $        $          $       $        $       $         $       $       $       $  
                            556,204     512,259     191,956  186,105   178,143  178,271   173,138  170,573  168,548  690,530
      Operating Income, as  172,244     162,563     60,377    57,901     53,966    51,341     58,715    49,526    54,322    213,904
      reported
      Adjustments:
            Exit costs,
            Impairments and -           8,887       -         -          -         7,971      -         6,585     2,302     16,858
            Other Charges
            (2)
      Operating Income, as  172,244     171,450     60,377    57,901     53,966    59,312     58,715    56,111    56,624    230,762
      adjusted
      Depreciation and      55,385      49,234      18,765    18,036     18,584    18,105     15,120    16,881    17,233    67,339
      Amortization
      EBITDA, as adjusted   $        $          $      $       $      $        $      $      $      $  
                            227,629     220,684     79,142   75,937    72,550   77,417    73,835   72,992   73,857   298,101
              Operating
              Margin, as    31.0%       33.5%       31.5%     31.1%      30.3%     33.3%      33.9%     32.9%     33.6%     33.4%
              adjusted
              EBITDA
              Margin, as    40.9%       43.1%       41.2%     40.8%      40.7%     43.4%      42.6%     42.8%     43.8%     43.2%
              adjusted
    Transaction Services
      Revenues              $        $1,048,800  $       $        $       $         $       $       $       $ 
                            997,692                 320,714  347,366   329,612  356,853   348,095  330,600  370,105  1,405,653
      Operating Income, as  191,641     189,567     64,177    76,010     51,454    70,752     55,824    52,610    81,133    260,319
      reported
      Adjustments:
            Exit costs,
            Impairments and -           4,052       -         -          -         (236)      -         1,074     2,978     3,816
            Other Charges
            (2)
      Operating Income, as  191,641     193,619     64,177    76,010     51,454    70,516     55,824    53,684    84,111    264,135
      adjusted
      Depreciation and      14,153      13,984      4,767     4,694      4,692     4,850      4,726     4,650     4,608     18,834
      Amortization
      EBITDA, as adjusted   $        $          $      $       $      $        $      $      $      $  
                            205,794     207,603     68,944   80,704    56,146   75,366    60,550   58,334   88,719   282,969
              Operating
              Margin, as    19.2%       18.5%       20.0%     21.9%      15.6%     19.8%      16.0%     16.2%     22.7%     18.8%
              adjusted
              EBITDA
              Margin, as    20.6%       19.8%       21.5%     23.2%      17.0%     21.1%      17.4%     17.6%     24.0%     20.1%
              adjusted
    Corporate and Other
                            $       $         $      $      $      $       $      $      $      $   
      Revenues              (1,992)    (4,779)            (264)    (1,734)  (1,292)    (1,796)  (1,513)  (1,470)  (6,071)
                                                    6
      Operating Loss, as    (179,900)   (66,874)    (12,110)  (156,671)  (11,119)  (117,167)  (20,347)  (21,470)  (25,057)  (184,041)
      reported
      Adjustments:
            Legal and
            Regulatory      144,476     -           -         144,476    -         78,484     -         -         -         78,484
            Charge (1)
            Exit costs,
            Impairments and -           16,259      -         -          -         19,979     -         2,228     14,031    36,238
            Other Charges
            (2)
      Operating Loss, as    (35,424)    (50,615)    (12,110)  (12,195)   (11,119)  (18,704)   (20,347)  (19,242)  (11,026)  (69,319)
      adjusted
      Depreciation and      3,000       3,227       984       1,048      968       976        976       1,096     1,155     4,203
      Amortization
      EBITDA, as adjusted   $        $          $      $       $      $        $      $      $      $   
                            (32,424)   (47,388)   (11,126)  (11,147)   (10,151)  (17,728)   (19,371)  (18,146)  (9,871)  (65,116)
2.  Net Earnings -
    Reconciliation
      Net Earnings (Loss)   $       $          $      $       $      $        $      $      $      $   
                            67,545      117,744     58,304   (37,880)   47,121   (21,201)   40,450   21,365   55,929   96,543
      Adjustments -
      Continuing
      Operations:
            Legal and
            Regulatory      100,624     -           -         100,624    -         53,086     -         -         -         53,086
            Charge (1)
            Exit costs,
            Impairments and -           18,177      -         -          -         16,822     -         6,204     11,973    34,999
            Other Charges
            (2)
              Total EBIT
              Adjustments   100,624     18,177      -         100,624    -         69,908     -         6,204     11,973    88,085
              to Continuing
              Operations
      Adjustments -
      Discontinued
      Operations:
            Impairment and
            Restructuring   -           17,797      -         -          -         16,454     -         17,759    38        34,251
            Charges, net
            (Gain)/Loss on
            Disposal of     -           1,486       -         -          -         (928)      1,486     -         -         558
            Operations, net
              Total
              Adjustments
              to            -           19,283      -         -          -         15,526     1,486     17,759    38        34,809
              Discontinued
              Operations
      Adjustments -
      Non-operating:
            Write-off of
            Debt Issuance   -           4,978       -         -          -         -          4,978     -         -         4,978
            Costs, net (3)
            Prior Year Tax  -           -           -         -          -         (6,458)    -         -         -         (6,458)
            Benefit
              Total
              Non-operating -           4,978       -         -          -         (6,458)    4,978     -         -         (1,480)
              Adjustments
      Net Earnings, as      168,169     160,182     58,304    62,744     47,121    57,775     46,914    45,328    67,940    217,957
      adjusted
      Purchase Price        5,866       8,297       1,712     1,733      2,421     2,655      2,495     2,674     3,128     10,952
      Amortization, net (4)
      Adjusted Net Earnings $        $          $      $       $      $        $      $      $      $  
                            174,035     168,479     60,016   64,477    49,542   60,430    49,409   48,002   71,068   228,909
      Adjusted Net Earnings $       $        $      $      $      $      $      $      $      $    
      Per Diluted Share     2.06     1.96         0.71   0.76       0.59  0.72         0.59    0.56    0.81   2.68
      Diluted Weighted      84,774      86,108      84,948    84,578     84,567    84,430     84,415    85,812    88,134    85,685
      Average Shares
3.  Cash Flow -
    Reconciliation
      Cash Flows from
      Operating Activities:
            Net Earnings    $       $          $      $       $      $        $      $      $      $   
            (Loss)          67,545      117,744     58,304   (37,880)   47,121   (21,201)   40,450   21,365   55,929   96,543
            Adjustments:
              Cash Related
              Restructuring 21,434      11,479      5,746     13,335     2,353     (3,302)    2,107     5,220     4,152     8,177
              Costs, net
                Net
                Earnings    88,979      129,223     64,050    (24,545)   49,474    (24,503)   42,557    26,585    60,081    104,720
                (Loss), as
                adjusted
            Adjustments to
            reconcile net
            earnings to
              net cash
              provided by
              operating
              activities:
                Non-cash    93,650      156,747     49,196    7,022      37,432    62,763     50,508    61,260    44,979    219,510
                adjustments
                Working
                capital     142,375     55,110      (21,816)  158,693    5,498     106,696    11,756    23,822    19,532    161,806
                adjustments
                 Net cash
                 provided
                 by         325,004     341,080     91,430    141,170    92,404    144,956    104,821   111,667   124,592   486,036
                 operating
                 activities
            Capital
            expenditures
            included in     (72,197)    (81,471)    (22,220)  (26,258)   (23,719)  (23,408)   (28,243)  (29,907)  (23,321)  (104,879)
            investing
            activities
            AdjustedFree   $        $          $      $        $      $         $      $      $       $  
            Cash Flow       252,807     259,609     69,210   114,912   68,685   121,548   76,578   81,760   101,271  381,157
    Discontinued
4.  Operations -
    Reconciliation
      Net Loss, as reported $       $          $      $       $      $        $      $      $      $   
                            (8,036)    (29,246)   (2,395)  (3,585)   (2,056)  (17,017)   (4,194)  (21,101)  (3,951)  (46,263)
      Adjustments:
            Impairment and
            Restructuring   -           17,797      -         -          -         16,454     -         17,759    38        34,251
            Charges, net
            (5)
            (Gain)/Loss on
            Disposal of     -           1,486       -         -          -         (928)      1,486     -         -         558
            Operations, net
            (6)
              Net Loss, as  (8,036)     (9,963)     (2,395)   (3,585)    (2,056)   (1,491)    (2,708)   (3,342)   (3,913)   (11,454)
              adjusted
      Purchase Price        152         656         -         38         114       201        122       272       262       857
      Amortization, net (4)
      Adjusted Net Loss     $       $         $      $       $      $       $      $      $      $   
                            (7,884)    (9,307)     (2,395)  (3,547)   (1,942)  (1,290)    (2,586)  (3,070)  (3,651)  (10,597)
      Adjusted Net Loss Per $       $        $      $      $      $       $      $      $      $    
      Diluted Share          (0.08)    (0.11)               (0.04)             (0.02)                               (0.13)
                                                    (0.02)              (0.02)              (0.03)   (0.04)   (0.04)
      Diluted Weighted      84,774      86,108      84,948    84,578     84,567    84,430     84,415    85,812    88,134    85,685
      Average Shares
      Notes:
            During Q4-2011 and Q2-2012, we recognized pre-tax legal and regulatory
            contingency accruals of $78.5 million and $144.5 million ($53.1 million and
      (1)   $100.6 million, net of tax), respectively, for estimated settlement and
            third-party legal expenses related to various ongoing legal and regulatory
            matters.
            Includes the impact of various severance, asset impairment and restructuring
            charges. Severance charges reflect the departure of certain executives including
            our former chief executive officer and former co-chief operating officer, as
            well as the impact of other personnel restructuring programs. In connection with
      (2)   these initiatives, during 2011, we recorded severance charges, including equity
            acceleration, of $33.4 million ($20.6 million net of tax). Asset impairment and
            restructuring charges, which totaled $23.5 million during 2011 ($14.4 million
            net of tax) primarily reflects the write-down of various assets as well as
            provisions for operating lease impairments.
            During 2011, we recorded a charge totaling $8.0 million ($5.0 million net of
      (3)   tax) related to the write-off of certain debt issuance costs in connection with
            the refinancing of our senior credit facilities.
            Purchase price amortization, net represents the periodic amortization of
      (4)   intangible assets acquired through business acquisitions primarily relating to
            customer lists, trademarks and non-compete agreements.
            Fiscal 2011 reflects charges totaling $57.0 million ($34.3 million net of tax)
      (5)   relating to severance accruals and the write-down of net assets for businesses
            that have been classified as discontinued operations.
            Fiscal 2011 reflects the (gain) or loss, net of tax, included in "Total Other
      (6)   Income (Expense)" above, recognized upon the disposition of business units that
            have been sold or shutdown.









SOURCE Lender Processing Services, Inc.

Website: http://www.lpsvcs.com
Contact: Investors: Nancy Murphy, +1-904-854-8640, nancy.murphy@lpsvcs.com;
Media: Michelle Kersch, +1-904-854-5043, michelle.kersch@lpsvcs.com
 
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