Altisource Announces Record EPS of $1.42 and Net Income Attributable to Altisource of $36 Million in the Third Quarter 2013

Altisource Announces Record EPS of $1.42 and Net Income Attributable to
Altisource of $36 Million in the Third Quarter 2013

LUXEMBOURG, Oct. 24, 2013 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions
S.A. ("Altisource") (Nasdaq:ASPS) today reported record third quarter 2013
service revenue of $180.4 million and net income attributable to shareholders
of $36.0 million, or $1.42 per diluted share. Service revenue for the third
quarter 2013 increased by 52% compared to the third quarter 2012 and 12%
compared to the second quarter 2013. Net income attributable to Altisource for
the third quarter 2013 increased 33% compared to the third quarter 2012 and
16% compared to the second quarter 2013.

The growth in service revenue and earnings is primarily driven by the Homeward
Residential, Inc. ("Homeward") and Residential Capital, LLC ("ResCap") loans
that Ocwen Financial Corporation ("Ocwen") boarded onto the REALServicing^®
platform during 2013 and growth in the mortgage charge-off collections
business and customer relationship management business.

Third quarter highlights include:

  *The average number of loans serviced by Ocwen on REALServicing totaled 1.2
    million loans in the third quarter 2013 compared to 0.8 million loans in
    the third quarter 2012;
  *Cash flows from operating activities totaled $67.2 million, or 37% of
    service revenue, in the third quarter 2013 compared to $43.1 million, or
    36% of service revenue, in the third quarter 2012;
  *On August 21, 2013, Altisource announced the acquisition of Equator, LLC,
    a national leader in mortgage and real estate related business process
    management solutions at an initial price of $70.0 million plus contingent
    earn-out consideration of up to an additional $80.0 million over three
    years, subject to Equator, LLC achieving annual performance targets;
  *Altisource Residential ("Residential"), the company we provide rental
    management services to under a 15-year services agreement, increased its
    loan and REO portfolio from 1,372 at June 30, 2013 to 6,234 on September
    30, 2013 (including announced acquisitions closed in October 2013); and
  *Altisource acquired 266,300 shares of its common stock during the third
    quarter 2013 at an average price of $134.86 per share.

"We are very pleased with our third quarter results and our execution against
plan.With our focus on developing marketplaces for the very large real estate
and mortgage spaces, we believe that we have exciting growth prospects," said
Chairman William Erbey.

William Shepro, Chief Executive Officer, further commented "Our strong service
revenue, net income and cash flow growth provide us with the resources to grow
our existing businesses, to invest in new businesses and to repurchase our
common stock."

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 fact, including statements about
management's 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.The Company
undertakes 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: Altisource's ability to retain existing customers and attract
new customers; general economic and market conditions; governmental
regulations, taxes and policies; availability of adequate and timely sources
of liquidity; and other risks and uncertainties detailed in the
"Forward-Looking Statements," "Risk Factors" and other sections of the
Company's Form 10-K and other filings with the Securities and Exchange
Commission.

Webcast

Altisource will host a webcast at 11:00 a.m. EDT today to discuss third
quarter results.A link to the live audio webcast will be available on the
Company's website through the Investor Relations home page. Those who want to
listen to the call should go to the website fifteen minutes prior to the call
to register, download and install any necessary audio software.A replay of
the conference call will be available via the website approximately two hours
after the conclusion of the call and will remain available for approximately
30 days.

About Altisource:

Altisource is a premier marketplace and transaction solutions provider for the
real estate, mortgage and consumer debt industries offering both distribution
and content. We leverage proprietary business process, vendor and electronic
payment management software and behavioral science based analytics to improve
outcomes for marketplace participants. Additional information is available at
www.altisource.com.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                                                  
                                                                  
                                         Three months ended Nine months ended
                                         September 30,      September 30,
                                         2013      2012     2013     2012
                                                                  
Service revenue                                                    
Mortgage Services                         $134,317  $90,607  $350,581 $259,926
Financial Services                        27,168    15,283   66,259   49,100
Technology Services                       25,175    19,076   70,189   53,984
Eliminations                              (6,268)   (6,364)  (17,411) (17,820)
                                         180,392   118,602  469,618  345,190
Reimbursable expenses                     29,496    24,326   73,061   77,846
Non-controlling interests                 947       1,060    3,093    4,223
Total revenue                             210,835   143,988  545,772  427,259
Cost of revenue                           104,765   69,961   275,134  200,939
Reimbursable expenses                     29,496    24,326   73,061   77,846
Gross profit                              76,574    49,701   197,577  148,474
Selling, general and administrative       31,519    18,452   80,027   54,485
expenses
Income from operations                    45,055    31,249   117,550  93,989
Other income (expense), net:                                       
Interest expense                          (6,188)   (10)     (14,302) (39)
Other income (expense), net               (253)     (257)    529      (900)
Total other income (expense), net         (6,441)   (267)    (13,773) (939)
Income before income taxes and            38,614    30,982   103,777  93,050
non-controlling interests
Income tax provision                      (1,659)   (2,898)  (6,227)  (8,493)
Net income                                36,955    28,084   97,550   84,557
Net income attributable to                (947)     (1,060)  (3,093)  (4,223)
non-controlling interests
Net income attributable to Altisource     $36,008   $27,024  $94,457  $80,334
                                                                  
Earnings per share:                                                
Basic                                    $1.56     $1.16    $4.07    $3.44
Diluted                                   $1.42     $1.08    $3.77    $3.23
                                                                  
Weighted average shares outstanding:                               
Basic                                    23,025    23,338   23,185   23,347
Diluted                                   25,333    25,016   25,070   24,895
                                                                  
Transactions with related parties:                                 
Revenue                                   $143,557  $86,558  $354,889 $257,491
Selling, general and administrative       720       621      2,133    1,801
expenses
Other income                              --        --       773      --


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
                                                           
                                                           
                                         September 30, 2013 December 31, 2012
ASSETS
                                                           
Current assets:                                             
Cash and cash equivalents                 $212,585           $105,502
Accounts receivable, net                  83,851             88,955
Prepaid expenses and other current assets 13,760             7,618
Deferred tax assets, net                  1,775              1,775
Total current assets                      311,971            203,850
                                                           
Premises and equipment, net               59,464             50,399
Deferred tax assets, net                  4,073              4,073
Intangible assets, net                    242,088            56,586
Goodwill                                 14,915             14,915
Investment in Correspondent One           --                 12,729
Loan to Ocwen                             --                 75,000
Other assets                             15,243             11,674
                                                           
Total assets                              $647,754          $429,226
                                                           
LIABILITIES AND EQUITY
                                                           
Current liabilities:                                        
Accounts payable and accrued expenses     $66,848            $58,976
Current portion of long-term debt         4,000              2,000
Current portion of capital lease          --                 233
obligations
Other current liabilities                9,371              10,423
Total current liabilities                 80,219             71,632
                                                           
Long-term debt, less current portion      392,708            196,027
Other non-current liabilities             1,296              1,738
                                                           
Equity:                                                     
Common stock ($1.00 par value; 100,000
shares authorized; 25,413 issued and
22,866 outstanding as of September 30,    25,413             25,413
2013; 25,413 issued and 23,427
outstanding as of December 31, 2012)
Additional paid-in-capital                88,949             86,873
Retained earnings                         209,783            124,127
Treasury stock, at cost (2,547 shares as
of September 30, 2013 and 1,986 shares as (151,861)          (77,954)
of December 31, 2012)
Altisource equity                         172,284            158,459
                                                           
Non-controlling interests                 1,247              1,370
Total equity                              173,531            159,829
                                                           
Total liabilities and equity              $647,754           $429,226

CONTACT: Michelle D. Esterman
         Chief Financial Officer
         T:  +352 2469 7950
         E:  Michelle.Esterman@altisource.lu
 
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