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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