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Lender Processing Services Reports First Quarter 2013 Earnings



        Lender Processing Services Reports First Quarter 2013 Earnings

Adjusted EPS from continuing operations increased 10% to $0.66 from prior year

Technology, Data and Analytics revenue climbed 10% from prior year

PR Newswire

JACKSONVILLE, Fla., April 24, 2013

JACKSONVILLE, Fla., April 24, 2013 /PRNewswire/ -- Lender Processing Services,
Inc. (NYSE:LPS), a leading provider of integrated technology and services to
the mortgage and real estate industries, today announced first quarter 2013
GAAP net earnings of $53.9 million, or $0.63 per diluted share, an increase of
12.5% compared to $47.1 million, or $0.56 per diluted share in the first
quarter 2012.  Revenue was $471.7 million in the first quarter 2013, a
decrease of 2.9% from the prior year quarter.   

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

"LPS' strong first quarter results demonstrate the successful execution of our
strategy to deliver technology-driven solutions that our clients need to
address evolving mortgage industry requirements," said Hugh Harris, president
and chief executive officer of LPS.  

First Quarter 2013

  o Technology, Data & Analytics (TD&A) revenue increased 10.4% over the prior
    year fueled by growth in all sub-segments
  o Origination Services revenue increased 12.0% from the prior year driven by
    strong refinance volumes
  o EBITDA margin increased more than two percentage points over the prior
    year to 26.6%
  o Adjusted earnings per diluted share from continuing operations increased
    10.0% to $0.66 compared to the prior year,  reflecting add-back for
    purchase accounting amortization
  o Completed previously reported settlements of many legal and regulatory
    matters related to legacy issues, while maintaining a strong financial
    position

"Strong results in TD&A and Origination Services drove an increase of more
than two percentage points in our EBITDA margin year-over-year to 26.6%," Tom
Schilling, chief financial officer, said. "TD&A is our growth platform and we
expect it to deliver a growing share of LPS' future revenue and
profitability.  We also remain focused on delivering high-value Transaction
Services while managing for profitability in line with industry volumes." 

First quarter 2013 revenue was $471.7 million, a decrease of 2.9% compared to
the prior year quarter, due to lower Default Services revenue that primarily
resulted from a decline in industry foreclosure volume, partially offset by
higher revenue in TD&A and Origination Services.  First quarter 2013 operating
income increased 6.7% from the prior year quarter to $99.4 million due to
higher contributions from TD&A and Origination Services.  

Net cash used in operating activities on a GAAP basis was $97.5 million in the
first quarter 2013, compared to net cash provided by operating activities of
$90.1 million in the prior year quarter.  This decrease was primarily due to
the payment of previously announced settlements for legacy legal and
regulatory matters in the first quarter 2013.  Excluding the impact of cash
payments of previous non-GAAP items, primarily payments of legal and
regulatory settlements, adjusted free cash flow was $49.5 million compared to
$68.7 million in the prior year quarter.  The decrease in adjusted free cash
flow primarily resulted from changes in working capital.  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.

The company maintained a strong balance sheet including cash of $88.4 million
and credit facility availability of $398 million at the end of the first
quarter 2013.  The legal and regulatory reserve was $61.1 million at the end
of the first quarter 2013. 

Technology, Data and Analytics (TD&A)

Revenue for the first quarter increased 10.4% from the prior year to $193.6
million driven by growth in all sub-segments.  Revenue from Servicing
Technology increased 6.8% primarily due to growth in loans and revenue per
loan; Origination Technology increased 17.7% primarily due to higher industry
origination volume which drove incremental transaction fees; Default
Technology increased 16.0% primarily as a result of higher professional
services revenue and market share gains partially offset by lower foreclosure
referral volumes; and Data and Analytics increased 15.5% primarily due to
contract wins.  Operating income increased 15.6% to $60.2 million in the first
quarter 2013, while operating margin increased to 31.1% from 29.7% in the
prior year quarter due to increased operating leverage. 

Transaction Services  

Revenue for the first quarter decreased 11.0% from the prior year period to
$278.0 million as a result of a 31.4% decrease in Default Services revenue,
which was partially offset by a 12.0% increase in Origination Services
revenue.  Default Services revenue and operating income declined primarily as
a result of lower industry foreclosure activity and strategic actions to
reduce risk and enhance returns.  Origination Services revenue and operating
income increased as a result of higher industry refinance volume.  Operating
income was $50.5 million, down from $52.3 million in the prior year period,
due to lower Default Services contributions, which were partially offset by
higher Origination Services contributions.  Operating margin increased to
18.2% from 16.7% in the prior year quarter due to a revenue mix shift toward
Origination Services.

Corporate and Other

Net corporate expenses in the first quarter 2013 were $11.3 million, about
flat with the prior year period.   

Outlook

Based on the current environment, the company expects second quarter 2013
revenue to be in the range of $460 million to $480 million and adjusted net
earnings per diluted share from continuing operations to be in the range of
$0.63 to $0.67.   

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 May 3, 2013, by
dialing 888-203-1112 (access code: 6301734).

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 visit www.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); "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 mortgage industry and the foreclosure process in
particular; 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 
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 March 31,
                                     2013                 2012
                                     (In thousands, except per share data)
Revenues                             $        471,661     $         485,794
Expenses:
   Operating expenses                346,159              368,674
   Depreciation and amortization     26,074               23,914
     Total expenses                  372,233              392,588
     Operating income                99,428               93,206
Other income (expense):
   Interest income                   579                  448
   Interest expense                  (13,514)             (16,402)
   Other income, net                 9                    85
     Total other income (expense)    (12,926)             (15,869)
     Earnings from continuing        86,502               77,337
     operations before income taxes
Provision for income taxes           32,006               28,846
     Net earnings from continuing    54,496               48,491
     operations
Loss from discontinued operations,   (566)                (1,370)
net of tax
Net earnings                         $          53,930    $           47,121
Net earnings per share - diluted     $              0.64  $               0.58
from continuing operations
Net loss per share - diluted from    (0.01)               (0.02)
discontinued operations
Net earnings per share - diluted     $              0.63  $               0.56
Weighted average shares outstanding  85,144               84,567
- diluted

 

 

                                                                Exhibit B
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
                                                March 31,       December 31,
                                                2013            2012
                                                (In thousands)
Assets
Current assets:
   Cash and cash equivalents                    $               $      236,241
                                                88,418
   Trade receivables, net of allowance for      253,562         274,783
   doubtful accounts
   Other receivables                            9,674           3,800
   Income tax receivable                        24,912          --
   Prepaid expenses and other current assets    41,403          41,541
   Deferred income taxes                        82,079          127,742
          Total current assets                  500,048         684,107
Property and equipment, net                     127,161         126,633
Computer software, net                          252,388         245,271
Other intangible assets, net                    21,416          23,670
Goodwill                                        1,109,304       1,109,304
Other non-current assets                        268,692         256,849
          Total assets                          $               $   2,445,834
                                                2,279,009
Liabilities and Stockholders' Equity
Current liabilities:
   Current portion of long-term debt            $               $            
                                                13,375            --
   Trade accounts payable                       36,912          38,901
   Accrued salaries and benefits                61,664          107,984
   Legal and regulatory accrual                 61,061          223,149
   Other accrued liabilities                    152,525         169,458
   Deferred revenues                            59,937          58,868
          Total current liabilities             385,474         598,360
Deferred revenues                               23,546          24,987
Deferred income taxes, net                      185,640         174,303
Long-term debt, net of current portion          1,054,750       1,068,125
Other non-current liabilities                   34,947          37,163
          Total liabilities                     1,684,357       1,902,938
Stockholders' equity:
   Preferred stock $0.0001 par value; 50
   million shares authorized, none issued
          at March 31, 2013 and December 31,    --              --
          2012
   Common stock $0.0001 par value; 500 million
   shares authorized, 97.4 million
          shares issued at March 31, 2013 and   10              10
          December 31, 2012
   Additional paid-in capital                   255,076         250,016
   Retained earnings                            739,489         694,148
   Accumulated other comprehensive loss         (2,740)         (3,079)
   Treasury stock at cost; 12.5 million shares
   at March 31, 2013 and
          December 31, 2012                     (397,183)       (398,199)
          Total stockholders' equity            594,652         542,896
          Total liabilities and stockholders'   $               $   2,445,834
          equity                                2,279,009

 

 

                                                              Exhibit C
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                          Three months ended March 31,
                                          2013                2012
                                          (In thousands)
Cash flows from operating activities:
  Net earnings                            $          53,930   $        
                                                               47,121
  Adjustments to reconcile net earnings
  to net 
    cash (Used in) provided by operating
    activities:
     Depreciation and amortization        26,056              24,902
     Amortization of debt issuance costs  1,044               1,117
     Asset impairment charges             --                  2,842
     Gain on sale of discontinued         --                  (8,064)
     operations
     Deferred income taxes, net           56,793              11,036
     Stock-based compensation cost        6,529               5,257
     Income tax effect of equity          (9)                 342
     compensation
     Changes in assets and liabilities,
     net of effects of acquisitions:
        Trade receivables                 21,219              12,700
        Other receivables                 (5,875)             (2,159)
        Income tax receivable             (24,912)            --
        Prepaid expenses and other        (4,137)             (8,853)
        assets
        Deferred revenues                 (371)               8,965
        Accounts payable, accrued
        liabilities and other             (227,808)           (5,155)
        liabilities
             Net cash (Used in)
        provided by operating             (97,541)            90,051
        activities
Cash flows from investing activities:
  Additions to property and equipment     (8,736)             (6,595)
  Additions to capitalized software       (19,404)            (17,124)
  Purchases of investments, net of        (3,563)             (5,763)
  proceeds from sales
  Acquisition of title plants and         (8,767)             (11,821)
  property records data
  Proceeds from sales of discontinued     --                  6,398
  operations, net of cash distributed
        Net cash used in investing        (40,470)            (34,905)
        activities
Cash flows from financing activities:
  Debt service payments                   --                  (17,327)
  Exercise of stock options and           (376)               (655)
  restricted stock vesting
  Income tax effect of equity             9                   (342)
  compensation
  Dividends paid                          (8,493)             (8,449)
  Payment of contingent consideration     (952)               (2,000)
  related to acquisitions
        Net cash used in financing        (9,812)             (28,773)
        activities
        Net (decrease) increase in        (147,823)           26,373
        cash and cash equivalents
Cash and cash equivalents, beginning of   236,241             77,355
period
Cash and cash equivalents, end of period  $          88,418   $        103,728
Supplemental disclosures of cash flow
information:
  Cash paid for interest                  $            4,406  $        
                                                               20,830
  Cash paid for taxes                     $            5,435  $          
                                                               4,053

 

 

                                                                                      Exhibit D
LENDER PROCESSING
SERVICES, INC. AND
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL
INFORMATION - UNAUDITED
(In thousands)
                  QUARTER           QUARTER                                           YEAR ENDED
                  Q1-2013  Q1-2012  Q1-2013   Q4-2012   Q3-2012   Q2-2012   Q1-2012   12/31/2012
    Revenues -
1.  Continuing
    Operations
    Technology,
    Data and
    Analytics:
     Technology   $        $        $         $         $         $         $161,290  $  
                  177,425  161,290   177,425   174,110   173,985   168,515             677,900
      Servicing   115,667  108,351  115,667   114,818   111,572   111,284   108,351   446,025
      Technology
      Default     36,623   31,576   36,623    34,762    36,163    34,051    31,576    136,552
      Technology
      Origination 25,135   21,363   25,135    24,530    26,250    23,180    21,363    95,323
      Technology
     Data and     16,205   14,027   16,205    15,202    15,009    14,767    14,027    59,005
     Analytics
      Total       193,630  175,317  193,630   189,312   188,994   183,282   175,317   736,905
    Transaction
    Services:
     Origination  164,425  146,750  164,425   173,934   154,057   150,741   146,750   625,482
     Services
     Default      113,561  165,461  113,561   137,783   154,394   179,618   165,461   637,256
     Services
      Total       277,986  312,211  277,986   311,717   308,451   330,359   312,211   1,262,738
    Corporate     45       (1,734)  45        --        6         (264)     (1,734)   (1,992)
     Total        $        $        $         $         $         $         $485,794  $
     Revenues     471,661  485,794   471,661   501,029   497,451   513,377            1,997,651
    Revenue
    Growth from
    Prior Year
    Period
    Technology,
    Data and
    Analytics:
     Technology   10.0%    6.6%     10.0%     8.0%      11.2%     10.4%     6.6%      9.1%
      Servicing   6.8%     4.9%     6.8%      7.2%      4.0%      7.3%      4.9%      5.9%
      Technology
      Default     16.0%    8.3%     16.0%     3.0%      28.3%     16.6%     8.3%      13.5%
      Technology
      Origination 17.7%    13.7%    17.7%     20.3%     25.3%     17.1%     13.7%     19.2%
      Technology
     Data and     15.5%    -4.2%    15.5%     6.3%      7.8%      -2.6%     -4.2%     1.7%
     Analytics
      Total       10.4%    5.7%     10.4%     7.8%      11.0%     9.2%      5.7%      8.4%
    Transaction
    Services:
     Origination  12.0%    13.8%    12.0%     14.8%     15.7%     42.4%     13.8%     20.4%
     Services
     Default      -31.4%   -22.4%   -31.4%    -26.0%    -19.9%    -9.4%     -22.4%    -19.4%
     Services
      Total       -11.0%   -8.8%    -11.0%    -7.7%     -5.3%     8.6%      -8.8%     -3.6%
    Corporate     n/m      n/m      n/m       n/m       n/m       n/m       n/m       n/m
     Total        -2.9%    -4.1%    -2.9%     -2.1%     0.6%      9.1%      -4.1%     0.7%
     Revenues
    Revenue Growth from
    Sequential Period
    Technology,
    Data and
    Analytics:
     Technology   1.9%     0.0%     1.9%      0.1%      3.2%      4.5%      0.0%      9.1%
      Servicing   0.7%     1.2%     0.7%      2.9%      0.3%      2.7%      1.2%      5.9%
      Technology
      Default     5.4%     -6.4%    5.4%      -3.9%     6.2%      7.8%      -6.4%     13.5%
      Technology
      Origination 2.5%     4.7%     2.5%      -6.6%     13.2%     8.5%      4.7%      19.2%
      Technology
     Data and     6.6%     -1.9%    6.6%      1.3%      1.6%      5.3%      -1.9%     1.7%
     Analytics
      Total       2.3%     -0.1%    2.3%      0.2%      3.1%      4.5%      -0.1%     8.4%
    Transaction
    Services:
     Origination  -5.5%    -3.2%    -5.5%     12.9%     2.2%      2.7%      -3.2%     20.4%
     Services
     Default      -17.6%   -11.2%   -17.6%    -10.8%    -14.0%    8.6%      -11.2%    -19.4%
     Services
      Total       -10.8%   -7.6%    -10.8%    1.1%      -6.6%     5.8%      -7.6%     -3.6%
    Corporate     n/m      n/m      n/m       n/m       n/m       n/m       n/m       n/m
     Total        -5.9%    -5.1%    -5.9%     0.7%      -3.1%     5.7%      -5.1%     0.7%
     Revenues

 

 

                                                                                                 Exhibit E
LENDER PROCESSING SERVICES,
INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
INFORMATION - UNAUDITED
(In thousands,
except per share
data)
                    QUARTER               QUARTER                                                YEAR ENDED
                    Q1-2013    Q1-2012    Q1-2013    Q4-2012    Q3-2012    Q2-2012    Q1-2012    12/31/2012
    Operating
1.  Results -
    Continuing
    Operations
    Consolidated
      Revenues      $          $          $          $          $          $          $          $1,997,651
                    471,661    485,794    471,661    501,029    497,451    513,377    485,794
      Operating
      Income        99,428     93,206     99,428     51,935     111,859    (24,065)   93,206     232,935
      (Loss), as
      reported
      Adjustments:
        Legal,
        Regulatory  --         --         --         58,401     --         144,476    --         202,877
        and Other
        Charges (1)
      Operating
      Income, as    99,428     93,206     99,428     110,336    111,859    120,411    93,206     435,812
      adjusted
      Depreciation
      and           26,074     23,914     26,074     25,136     24,241     23,453     23,914     96,744
      Amortization
      EBITDA, as    $          $          $          $          $          $          $          $  
      adjusted      125,502    117,120    125,502    135,472    136,100    143,864    117,120    532,556
          Operating
          Margin,   21.1%      19.2%      21.1%      22.0%      22.5%      23.5%      19.2%      21.8%
          as
          adjusted
          EBITDA
          Margin,   26.6%      24.1%      26.6%      27.0%      27.4%      28.0%      24.1%      26.7%
          as
          adjusted
    Technology,
    Data and
    Analytics
      Revenues      $          $          $          $          $          $          $          $  
                    193,630    175,317    193,630    189,312    188,994    183,282    175,317    736,905
      Operating
      Income, as    60,204     52,075     60,204     51,971     58,318     56,003     52,075     218,367
      reported
      Adjustments:
        Legal,
        Regulatory  --         --         --         2,827      --         --         --         2,827
        and Other
        Charges (1)
      Operating
      Income, as    60,204     52,075     60,204     54,798     58,318     56,003     52,075     221,194
      adjusted
      Depreciation
      and           20,332     18,546     20,332     19,730     18,726     17,997     18,546     74,999
      Amortization
      EBITDA, as    $          $          $          $          $          $          $          $  
      adjusted      80,536     70,621     80,536     74,528     77,044     74,000     70,621     296,193
          Operating
          Margin,   31.1%      29.7%      31.1%      28.9%      30.9%      30.6%      29.7%      30.0%
          as
          adjusted
          EBITDA
          Margin,   41.6%      40.3%      41.6%      39.4%      40.8%      40.4%      40.3%      40.2%
          as
          adjusted
    Transaction
    Services
      Revenues      $          $          $          $          $          $          $          $1,262,738
                    277,986    312,211    277,986    311,717    308,451    330,359    312,211
      Operating
      Income, as    50,517     52,250     50,517     65,892     65,651     76,603     52,250     260,396
      reported
      Adjustments:
        Legal,
        Regulatory  --         --         --         1,531      --         --         --         1,531
        and Other
        Charges (1)
      Operating
      Income, as    50,517     52,250     50,517     67,423     65,651     76,603     52,250     261,927
      adjusted
      Depreciation
      and           4,860      4,400      4,860      4,498      4,531      4,408      4,400      17,837
      Amortization
      EBITDA, as    $          $          $          $          $          $          $          $  
      adjusted      55,377     56,650     55,377     71,921     70,182     81,011     56,650     279,764
          Operating
          Margin,   18.2%      16.7%      18.2%      21.6%      21.3%      23.2%      16.7%      20.7%
          as
          adjusted
          EBITDA
          Margin,   19.9%      18.1%      19.9%      23.1%      22.8%      24.5%      18.1%      22.2%
          as
          adjusted
    Corporate and
    Other
      Revenues      $          $          $          $          $          $          $          $    
                      45        (1,734)     45          --          6       (264)      (1,734)    (1,992)
      Operating
      Loss, as      (11,293)   (11,119)   (11,293)   (65,928)   (12,110)   (156,671)  (11,119)   (245,828)
      reported
      Adjustments:
        Legal,
        Regulatory  --         --         --         54,043     --         144,476    --         198,519
        and Other
        Charges (1)
      Operating
      Loss, as      (11,293)   (11,119)   (11,293)   (11,885)   (12,110)   (12,195)   (11,119)   (47,309)
      adjusted
      Depreciation
      and           882        968        882        908        984        1,048      968        3,908
      Amortization
      EBITDA, as    $          $          $          $          $          $          $          $  
      adjusted       (10,411)   (10,151)   (10,411)   (10,977)   (11,126)   (11,147)   (10,151)   (43,401)

 

 

                                                                                         Exhibit E -
                                                                                         Continued
LENDER PROCESSING
SERVICES, INC. AND
SUBSIDIARIES
NON-GAAP FINANCIAL
INFORMATION - UNAUDITED
(In thousands, except per
share data)
                          QUARTER              QUARTER                                             YEAR ENDED
                          Q1-2013    Q1-2012   Q1-2013    Q4-2012   Q3-2012   Q2-2012    Q1-2012   12/31/2012
2.  Net Earnings -
    Reconciliation
     Net Earnings (Loss)  $          $         $          $         $         $          $         $    
                          53,930     47,121    53,930     2,814     58,304     (37,880)  47,121    70,359
     Adjustments -
     Continuing
     Operations:
          Legal,
          Regulatory and  --         --        --         34,676    --        100,624    --        135,300
          Other Charges,
          net (1)
           Total
           Adjustments to --         --        --         34,676    --        100,624    --        135,300
           Continuing
           Operations
     Adjustments -
     Discontinued
     Operations:
          Impairment,
          Restructuring   --         --        --         2,494     --        --         --        2,494
          and Disposal
          Charges, net
           Total
           Adjustments to --         --        --         2,494     --        --         --        2,494
           Discontinued
           Operations
     Adjustments -
     Non-operating:
          Debt
          Refinancing     --         --        --         15,445    --        --         --        15,445
          Charges, net
          (2)
          Income Tax      --         --        --         5,621     --        --         --        5,621
          Adjustments (3)
           Total
           Non-operating  --         --        --         21,066    --        --         --        21,066
           Adjustments
     Net Earnings, as     53,930     47,121    53,930     61,050    58,304    62,744     47,121    229,219
     adjusted
     Purchase Accounting
     Amortization, net    1,567      2,421     1,567      1,712     1,712     1,733      2,421     7,578
     (4)
     Adjusted Net         $          $         $          $         $         $          $         $  
     Earnings             55,497     49,542    55,497     62,762    60,016    64,477     49,542    236,797
     Adjusted EPS -       $          $         $          $         $         $          $         $      
     Continuing            0.66       0.60      0.66       0.74      0.72      0.79       0.60      2.85
     Operations
     Adjusted EPS -
     Discontinued         (0.01)     (0.01)    (0.01)     --        (0.01)    (0.03)     (0.01)    (0.05)
     Operations
     Adjusted EPS -       $          $         $          $         $         $          $         $      
     Consolidated          0.65       0.59      0.65       0.74      0.71      0.76       0.59      2.80
     Diluted Weighted     85,144     84,567    85,144     85,106    84,948    84,578     84,567    84,857
     Average Shares
3.  Cash Flow -
    Reconciliation
     Cash Flows from
     Operating
     Activities:
          Net Earnings    $          $         $          $         $         $          $         $    
          (Loss)          53,930     47,121    53,930     2,814     58,304     (37,880)  47,121    70,359
          Adjustments to
          Reconcile Net
          Earnings (Loss)
          to
           Net Cash (Used
           in) Provided
           by Operating
           Activities:
            Non-cash      90,413     37,432    90,413     24,978    49,196    7,022      37,432    118,628
            Adjustments
            Working
            Capital       (241,884)  5,498     (241,884)  103,100   (21,816)  158,693    5,498     245,475
            Adjustments
             Net Cash
             (Used
             in) Provided (97,541)   90,051    (97,541)   130,892   85,684    127,835    90,051    434,462
             by Operating
             Activities
          Capital
          Expenditures
          Included in     (28,140)   (23,719)  (28,140)   (41,131)  (22,220)  (26,258)   (23,719)  (113,328)
          Investing
          Activities
     Free Cash Flow       (125,681)  66,332    (125,681)  89,761    63,464    101,577    66,332    321,134
          Less Cash
          Impact of       175,185    2,353     175,185    2,491     5,746     13,335     2,353     23,925
          Adjustments,
          net (5)
     Adjusted Free Cash   $          $         $          $         $         $          $         $  
     Flow                 49,504     68,685    49,504     92,252    69,210    114,912    68,685    345,059
     Adjusted Free Cash   $          $         $          $         $         $          $         $        
     Flow Per Diluted     0.58         0.81    0.58         1.08      0.82    1.36         0.81    4.07
     Share
     Diluted Weighted     85,144     84,567    85,144     85,106    84,948    84,578     84,567    84,857
     Average Shares
     Notes:
     (1)  Reflects the impact of charges taken on various legal and regulatory matters, as well severance,
          asset impairment and facility lease impairment charges.
     (2)  Charge related to the refinancing of our bonds and senior credit facilities during 2012. 
     (3)  Reflects the impact of favorable tax true-ups from fiscal 2011 recognized in 2012 offset by
          non-cash adjustments related to equity forfeitures from severance and restructuring initiatives.
          Purchase accounting amortization, net represents the periodic amortization of intangible assets
     (4)  acquired through business acquisitions primarily relating to customer lists, trademarks and
          non-compete agreements.
     (5)  Reflects the impact of payments, less applicable taxes, related to adjustments included in item 2.
          "Net Earnings - Reconciliation" above.

SOURCE Lender Processing Services, Inc.

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