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    oTechnology, Data & Analytics (TD&A) revenue increased 10.4% over the prior     year fueled by growth in all sub-segments   oOrigination Services revenue increased 12.0% from the prior year driven by     strong refinance volumes   oEBITDA margin increased more than two percentage points over the prior     year to 26.6%   oAdjusted 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   oCompleted 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 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); "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