Altisource Announces Record Results LUXEMBOURG, April 24, 2014 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource") (Nasdaq:ASPS) today reported record service revenue, net income attributable to shareholders and diluted earnings per share. The quarter over quarter growth in service revenue and net income was primarily driven by the higher number of loans that were boarded on REALServicing in 2013 and the inclusion of a full quarter of Equator, LLC operations. First Quarter 2014 Results Compared to First Quarter 2013: *Service revenue of $210.0 million, a 65% increase *Net income attributable to Altisource of $39.6 million, a 44% increase *Diluted earnings per share of $1.61, a 46% increase *Cash from operations of $36.3 million, a 280% increase "Altisource had a very strong quarter, marking the 12^th straight quarter of sequential service revenue growth. To maintain this trend, we remain focused on executing against our strategic plan," said Chairman William Erbey. William Shepro, Chief Executive Officer, further commented, "We are focused on providing high quality, compliant services to our customers while diligently executing on our 2014 strategic initiatives to diversify our customer base and grow our revenue and earnings. Our strong cash flow generation provides us the ability to invest in our next generation technologies, acquire businesses that advance our strategic objectives and repurchase our common stock." First quarter 2014 highlights include: *Gross profit as a percentage of service revenue was 44% for the quarter, an increase from 41% for the same quarter in 2013 driven by margin expansion in all of the Company's operating segments *The average number of delinquent non-Government Sponsored Enterprise loans serviced by Ocwen on REALServicing totaled 369 thousand for the three months ended March 31, 2014, an increase of 57% compared to the three months ended March 31, 2013 *We repurchased 0.3 million shares of our common stock under our stock repurchase program at an average price of $109.97 per share during the three months ended March 31, 2014 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 our first 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 March 31, 2014 2013 Service revenue Mortgage Services $146,494 $96,377 Financial Services 24,257 16,132 Technology Services 47,504 20,231 Eliminations (8,296) (5,188) 209,959 127,552 Reimbursable expenses 28,795 20,266 Non-controlling interests 515 1,009 Total revenue 239,269 148,827 Cost of revenue 119,010 76,696 Reimbursable expenses 28,795 20,266 Gross profit 91,464 51,865 Selling, general and administrative expenses 43,534 18,680 Income from operations 47,930 33,185 Other income (expense), net: Interest expense (4,776) (3,212) Other income (expense), net 47 705 Total other income (expense), net (4,729) (2,507) Income before income taxes and non-controlling interests 43,201 30,678 Income tax provision (3,055) (2,151) Net income 40,146 28,527 Net income attributable to non-controlling interests (515) (1,009) Net income attributable to Altisource $39,631 $27,518 Earnings per share: Basic $1.76 $1.18 Diluted $1.61 $1.10 Weighted average shares outstanding: Basic 22,509 23,374 Diluted 24,662 25,058 Transactions with related parties: Revenue $145,558 $90,098 Selling, general and administrative expenses 829 673 Other income -- 773 ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) March 31, December 31, 2014 2013 ASSETS Current assets: Cash and cash equivalents $116,376 $130,324 Accounts receivable, net 122,141 101,297 Prepaid expenses and other current assets 13,236 11,389 Deferred tax assets, net 2,837 2,837 Total current assets 254,590 245,847 Premises and equipment, net 94,539 87,252 Deferred tax assets, net 160 622 Intangible assets, net 266,996 276,162 Goodwill 99,414 99,414 Other assets 18,352 17,580 Total assets $734,051 $726,877 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $89,909 $81,531 Current portion of long-term debt 3,975 3,975 Deferred revenue 30,206 36,742 Other current liabilities 10,404 10,131 Total current liabilities 134,494 132,379 Long-term debt, less current portion 390,333 391,281 Other non-current liabilities 46,697 45,476 Equity: Common stock ($1.00 par value; 100,000 shares authorized; 25,413 issued and 22,337 outstanding as of March 31, 25,413 25,413 2014; 25,413 issued and 22,629 outstanding as of December 31, 2013) Additional paid-in capital 89,931 89,273 Retained earnings 277,460 239,561 Treasury stock, at cost (3,076 shares as of March 31, 2014 (231,181) (197,548) and 2,784 shares as of December 31, 2013) Altisource equity 161,623 156,699 Non-controlling interests 904 1,042 Total equity 162,527 157,741 Total liabilities and equity $734,051 $726,877 ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three months ended March 31, 2014 2013 Cash flows from operating activities: Net income $40,146 $28,527 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,246 4,724 Amortization of intangible assets 9,466 1,200 Share-based compensation expense 658 1,424 Equity in losses of investment in affiliate -- 176 Bad debt expense 1,755 224 Amortization of debt discount 46 95 Amortization of debt issuance costs 242 215 Deferred income taxes 461 -- Loss on sale or disposal of fixed assets 96 -- Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable (22,599) (12,968) Prepaid expenses and other current assets (1,847) (1,147) Other assets (1,014) (1,741) Accounts payable and accrued expenses 7,695 (7,805) Other current and non-current liabilities (5,042) (3,368) Net cash provided by operating activities 36,309 9,556 Cash flows from investing activities: Additions to premises and equipment (12,945) (6,960) Acquisition of businesses, net of cash acquired -- (75,817) Proceeds from loan to Ocwen -- 75,000 Other investing activities (300) (50) Net cash used in investing activities (13,245) (7,827) Cash flows from financing activities: Repayment of long-term debt (994) (500) Principal payments on capital lease obligations -- (176) Proceeds from stock option exercises 401 456 Purchase of treasury stock (35,766) (21,997) Contributions from non-controlling interests -- 12 Distributions to non-controlling interests (653) (1,090) Net cash used in financing activities (37,012) (23,295) Decrease in cash and cash equivalents (13,948) (21,566) Cash and cash equivalents at the beginning of the 130,324 105,502 period Cash and cash equivalents at the end of the $116,376 $83,936 period Supplemental cash flow information: Interest paid $4,469 $2,799 Income taxes paid, net 201 402 Non-cash investing and financing activities: Premises and equipment purchased on account $684 $700 CONTACT: Michelle D. Esterman Chief Financial Officer T: +352 2469 7950 E: Michelle.Esterman@altisource.lu
Altisource Announces Record Results
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