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Altisource Announces Record Results

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  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:  
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