Investor Relations

Find timely information for shareholders here or contact us directly.


Contact us
<< Back
Jul 26, 2012

Altisource Announces Second Quarter Results

LUXEMBOURG, July 26, 2012 (GLOBE NEWSWIRE) -- Altisource™ (Nasdaq:ASPS) today reported net income attributable to Altisource of $28.1 million or $1.13 per diluted share for the three months ended June 30, 2012, an increase in net income and diluted earnings per share from the three months ended June 30, 2011 of 110% and 117%, respectively. This compares with net income attributable to Altisource of $13.4 million or $0.52 per diluted share for the three months ended June 30, 2011. Service revenue was $118.1 million for the three months ended June 30, 2012, a 63% increase when compared to the three months ended June 30, 2011.

The increase in net income is primarily from stronger service revenue growth in the higher margin Mortgage Services segment relative to the other segments. This was driven by the servicing portfolio growth experienced by the Company's largest customer, Ocwen Financial Corporation ("Ocwen") and expanded capture rate of Ocwen's default related business.

Second quarter highlights include:

  • Average loans serviced by Ocwen, on the REALServicing® platform were 0.7 million for the quarter
     
  • Cash flows from operations for the quarter were $26.3 million representing $0.22 for every dollar of service revenue
     
  • Over 7,000 REO assets were sold through the Company's web based portal during the quarter
     
  • Origination related service revenue increased 73% to $8.3 million in the quarter compared to the second quarter of 2011

Gross profit as a percentage of service revenue improved to 44% for the three months ended June 30, 2012 compared to 42% for the three months ended June 30, 2011. The increase is primarily from the higher level of service revenue growth in the higher margin Mortgage Services segment relative to the other segments.

Income from operations as a percentage of service revenue improved to 27% for the three months ended June 30, 2012 compared to 22% for the three months ended June 30, 2011. In addition to the gross profit margin expansion, operating income margin also improved from the stabilization of selling, general and administrative expenses on higher service revenue.

Stock Repurchase Update

In May 2012, the Company's shareholders approved a new stock repurchase program, which replaces the previous stock repurchase program. Under the new plan, the Company is authorized to purchase up to 3.5 million shares of common stock in the open market. Since no common stock was repurchased during the second quarter of 2012, 3.5 million shares of common stock remain available for repurchase under the plan.

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 second 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.

About Altisource

Altisource Portfolio Solutions S.A. (Nasdaq:ASPS) is a global provider of services focused on high-value, technology-enabled knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. Additional information is available at www.altisource.com.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
         
Financial Results
 
Results of operations for the three and six months ended June 30, 2012 and 2011 are as follows:
         
  Three months ended Six months ended
  June 30, June 30,
  2012 2011 2012 2011
         
Service revenue        
Mortgage Services  $ 89,999  $ 45,513  $ 169,319  $ 88,853
Financial Services  16,057  17,213  33,817  36,133
Technology Services  17,886  13,572  34,908  26,288
Eliminations  (5,823)  (3,794)  (11,456)  (7,040)
   118,119  72,504  226,588  144,234
Reimbursable expenses  24,815  19,459  53,520  35,100
Non-controlling interests  1,271  1,305  3,163  2,604
Total revenue  144,205  93,268  283,271  181,938
Cost of revenue  67,923  43,638  130,978  82,946
Reimbursable expenses  24,815  19,459  53,520  35,100
Gross profit  51,467  30,171  98,773  63,892
Selling, general and administrative expenses  19,018  13,904  36,033  30,158
Income from operations  32,449  16,267  62,740  33,734
Other (expense) income, net  (321)  270  (672)  614
Income before income taxes and non-controlling interests  32,128  16,537  62,068  34,348
Income tax provision  (2,776)  (1,847)  (5,595)  (3,534)
Net income  29,352  14,690  56,473  30,814
Net income attributable to non-controlling interests  (1,271)  (1,305)  (3,163)  (2,604)
Net income attributable to Altisource  $ 28,081  $ 13,385  $ 53,310  $ 28,210
         
Earnings per share:        
Basic   $ 1.20  $ 0.54  $ 2.28  $ 1.14
Diluted  $ 1.13  $ 0.52  $ 2.15  $ 1.09
         
Weighted average shares outstanding:        
Basic   23,316  24,625  23,353  24,734
Diluted  24,846  25,773  24,850  25,851
         
Transactions with related parties:        
Revenue  $ 88,153  $ 53,694  $ 170,933  $ 102,484
Selling, general and administrative expenses  $ 606  $ 455  $ 1,180  $ 846
         

 

ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)
 
  June 30, December 31,
  2012 2011
ASSETS
     
Current assets:    
Cash and cash equivalents  $ 45,159  $ 32,125
Accounts receivable, net  70,321  52,005
Prepaid expenses and other current assets  5,745  5,002
Deferred tax assets, net  2,730  1,133
Total current assets  123,955  90,265
     
Premises and equipment, net  41,162  25,600
Deferred tax assets, net  4,460  4,373
Intangible assets, net  60,634  64,950
Goodwill   14,915  14,915
Investment in equity affiliate  13,891  14,470
Other assets   8,710  9,586
     
Total assets  $ 267,727  $ 224,159
     
LIABILITIES AND EQUITY
     
Current liabilities:    
Accounts payable and accrued expenses  $ 50,740  $ 44,867
Capital lease obligations — current   518  634
Other current liabilities   10,228  9,939
Total current liabilities  61,486  55,440
     
Capital lease obligations — non-current   --   202
Other non-current liabilities  2,502  2,574
     
Commitments and contingencies    
     
Equity:    
Common stock ($1.00 par value; 100,000 shares authorized; 25,413 shares issued and 23,319 outstanding as of June 30, 2012; 25,413 shares issued and 23,405 outstanding as of December 31, 2011)  25,413  25,413
Additional paid-in-capital  84,121  83,229
Retained earnings  175,074  126,161
Treasury stock, at cost (2,094 shares as of June 30, 2012 and 2,008 shares as of December 31, 2011)  (82,414)  (72,048)
Altisource equity  202,194  162,755
     
Non-controlling interests  1,545  3,188
Total equity  203,739  165,943
     
Total liabilities and equity  $ 267,727  $ 224,159 
CONTACT: Michelle D. Esterman

         Chief Financial Officer

         T: +352 2469 7950

         E: michelle.esterman@altisource.lu
Source: Altisource Portfolio Solutions S.A.

News Provided by Acquire Media