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8-K


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 10, 2016

 
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
(Exact name of Registrant as specified in its Charter)
 

Luxembourg
 
001-34354
 
98-0554932
(State or other jurisdiction of
incorporation)
 
(Commission File Number)
 
(I.R.S. Employer
Identification No.)

40, avenue Monterey
L-2163 Luxembourg
Grand Duchy of Luxembourg
(Address of principal executive offices including zip code)

+352 2469 7900
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 




Item 2.02 Results of Operations and Financial Condition.

On March 10, 2016, Altisource Portfolio Solutions S.A. (“Altisource”) issued a press release announcing preliminary financial results for its quarter ended December 31, 2015 and full year 2015. A copy of the press release is attached hereto as Exhibit 99.1.

On February 29, 2016, the Company filed a Form 12b-25 with the U.S. Securities and Exchange Commission for an extension of time to file its 2015 Annual Report on Form 10-K on or before March 15, 2016. The Company expects to file its Form 10-K prior to the expiration of the extension.

The financial data in Exhibit 99.1 is unaudited and preliminary, based upon estimates and subject to completion of the Company's financial closing procedures and the audit of the Company’s financial statements. Moreover, this data has been prepared on the basis of currently available information. This data does not constitute a comprehensive statement of the Company's financial results for the year ended December 31, 2015, and the Company's final numbers for this data may differ materially from these estimates. The Company's independent registered public accounting firm has not audited or reviewed, and does not express an opinion with respect to, this data.

The information in this Item 2.02, including the information in Exhibit 99.1, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. It may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or Securities Act of 1933 if such subsequent filing specifically references this Item 2.02 of this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.
 
Description
Exhibit 99.1
 
Press release issued by Altisource Portfolio Solutions S.A. dated March 10, 2016






SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  March 10, 2016

 
Altisource Portfolio Solutions S.A.
 
 
 
By:
/s/ Michelle D. Esterman
 
Name:
Michelle D. Esterman
 
Title:
Chief Financial Officer




Exhibit


Exhibit 99.1
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
 
 
 
Michelle D. Esterman
 
Chief Financial Officer
 
T: +352 2469 7950
 
E: Michelle.Esterman@altisource.lu

ALTISOURCE ANNOUNCES PRELIMINARY FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

Luxembourg, March 10, 2016 - Altisource Portfolio Solutions S.A. (“Altisource”) (NASDAQ: ASPS) today announces preliminary fourth quarter and full year 2015 results, capping off a year of strong financial performance with 2015 service revenue of $940.9 million, the best in the Company’s history. 2015 service revenue growth in the asset management business along with the full year benefit of the 2014 Mortgage Builder acquisition offset lost revenue from the November 2014 discontinuation of the lender placed insurance brokerage business, the full amortization of Equator acquisition deferred revenue in November 2014 and fewer 2015 valuation referrals. The growth of the asset management business was primarily driven by a higher number of both non-Ocwen and Ocwen homes sold on Hubzu and growth in the property inspection and preservation business.

The Company’s 2015 diluted earnings per share of $2.02 was impacted by a $71.8 million non-cash impairment charge primarily driven by the Company’s current projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen. Adjusted diluted earnings per share(1) for 2015 of $6.96 significantly exceeded the mid-point of the Company’s 2015 financial scenarios.

Fourth Quarter 2015 Results Compared to Fourth Quarter 2014:
•
Service revenue of $251.0 million, a 15% increase
•
Net loss attributable to Altisource of $45.1 million compared to a net loss attributable to Altisource of $1.5 million in the fourth quarter 2014
•
Net loss includes a non-cash impairment loss of $71.8 million (no comparable amount in the fourth quarter 2014)
•
Adjusted net income attributable to Altisource(1) of $38.0 million, a 506% increase
•
Diluted loss per share of $2.35 compared to diluted loss per share of $0.08 in the fourth quarter 2014
•
Adjusted diluted earnings per share(1) of $1.86, a 564% increase
•
Cash from operations of $86.2 million, a 20% increase

Full Year 2015 Results Compared to Full Year 2014:
•
Service revenue of $940.9 million, a 0.2% increase
•
Net income attributable to Altisource of $41.6 million, a 69% decrease
•
Net income was impacted by a $71.8 million non-cash impairment loss partially offset by a $7.6 million gain on Equator earn out liability compared to a net gain from these items of $0.5 million in 2014
•
Adjusted net income attributable to Altisource(1) of $143.5 million, a 15% decrease
•
Diluted earnings per share of $2.02, a 64% decrease
•
Adjusted diluted earnings per share(1) of $6.96, a 3% decrease
•
Cash from operations of $195.4 million, a 1% decrease

“I am very pleased with our operating results and the progress we are making on our strategic initiatives to diversify and grow our revenue and earnings. We believe our non-Ocwen growth, recent customer wins, current negotiations with new and existing customers and our robust pipeline activity demonstrate Altisource’s value to the market and our ability to deliver on our initiatives,” said Chief Executive Officer William B. Shepro.

1


Fourth quarter and full year 2015 highlights include:
•
We were selected by two top ten banks(2) to provide services for their portfolios in 2015, including the selection by a top four bank in the fourth quarter. We have agreements to provide services and/or software to five of the top ten banks and one GSE;
•
We repurchased $58.9 million of our common stock in 2015 (2.1 million shares at an average price of $27.60 per share); this includes $10.0 million of repurchases in the fourth quarter (0.4 million shares at an average price of $26.23 per share). In January and February of 2016, we repurchased $5.0 million of our common stock (0.2 million shares at an average price of $27.58 per share);
•
We repurchased $49.0 million of our senior secured term loan for $44.4 million (a weighted average discount of 10.3%), resulting in net pretax gains of $3.8 million on the early extinguishment of debt in 2015; this includes fourth quarter repurchases of $22.0 million for $19.8 million (a discount of 11.0%), resulting in a pretax gain of $1.8 million;
•
To strengthen the Real Estate Investor Solutions initiative, we acquired RentRange® and Investability™ in the fourth quarter for $24.8 million; and
•
The average number of loans serviced by Ocwen Financial Corporation and its subsidiaries (“Ocwen”) on REALServicing® was 2.0 million, an 8% decrease compared to the year ended December 31, 2014 (the average number of loans was 1.7 million in the fourth quarter 2015, a 31% decrease compared to the fourth quarter 2014).
__________________________
(1) This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein.
(2) Source: Wall Street Journal’s list of top ten banks by assets

The financial data in this press release is unaudited and preliminary, based upon estimates and subject to completion of the Company's financial closing procedures and the audit of the Company’s financial statements. Moreover, this data has been prepared on the basis of currently available information. This data does not constitute a comprehensive statement of the Company's financial results for the year ended December 31, 2015, and the Company's final numbers for this data may differ materially from these estimates. The Company's independent registered public accounting firm has not audited or reviewed, and does not express an opinion with respect to, this data.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements about management’s beliefs and expectations. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “seek,” “believe,” “potential” and similar expressions. 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 the future and are not statements of historical fact, actual results may differ materially from what is contemplated by the forward-looking statements. Altisource 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 integrate acquired businesses, retain key executives or employees, retain existing customers and attract new customers, general economic and market conditions, behavior of customers, suppliers and/or competitors, technological developments, 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 Altisource’s Form 10-K and other filings with the Securities and Exchange Commission.

Webcast

Altisource will host a webcast at 11:00 a.m. EST today to discuss our fourth quarter and full year results. A link to the live audio webcast will be available on Altisource’s website in the Investor Relations section. Those who want to listen to the call should go to the website at least 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 Portfolio Solutions S.A. is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. Altisource’s proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. Additional information is available at www.Altisource.com.

2


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) 
 
 
Three months ended December 31,
 
Years ended December 31,
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Service revenue
 
 
 
 
 
 

 
 

Mortgage Services
 
$
183,945

 
$
145,776

 
$
676,222

 
$
653,093

Financial Services
 
21,351

 
21,816

 
88,328

 
98,312

Technology Services
 
56,083

 
62,415

 
215,482

 
227,300

Eliminations
 
(10,339
)
 
(12,163
)
 
(39,112
)
 
(40,026
)
 Total service revenue
 
251,040

 
217,844

 
940,920

 
938,679

Reimbursable expenses
 
18,102

 
37,414

 
107,344

 
137,634

Non-controlling interests
 
745

 
629

 
3,202

 
2,603

Total revenue
 
269,887

 
255,887

 
1,051,466

 
1,078,916

Cost of revenue
 
154,390

 
149,238

 
579,983

 
569,546

Reimbursable expenses
 
18,102

 
37,414

 
107,344

 
137,634

Gross profit
 
97,395

 
69,235

 
364,139

 
371,736

Selling, general and administrative expenses
 
65,558

 
61,979

 
220,868

 
201,733

Impairment losses
 
71,785

 
—

 
71,785

 
37,473

Change in the fair value of Equator earn out liability
 
—

 
—

 
(7,591
)
 
(37,924
)
Income (loss) from operations
 
(39,948
)
 
7,256

 
79,077

 
170,454

Other income (expense), net:
 
 
 
 
 
 
 
 
Interest expense
 
(6,812
)
 
(7,323
)
 
(28,208
)
 
(23,363
)
Loss on sale of HLSS equity securities, net of dividends received
 
—

 
—

 
(1,854
)
 
—

Other income (expense), net
 
2,568

 
39

 
4,045

 
174

       Total other income (expense), net
 
(4,244
)
 
(7,284
)
 
(26,017
)
 
(23,189
)
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
(44,192
)
 
(28
)
 
53,060

 
147,265

Income tax provision
 
(159
)
 
(878
)
 
(8,260
)
 
(10,178
)
 
 
 
 
 
 
 
 
 
Net income (loss)
 
(44,351
)
 
(906
)
 
44,800

 
137,087

Net income attributable to non-controlling interests
 
(745
)
 
(629
)
 
(3,202
)
 
(2,603
)
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to Altisource
 
$
(45,096
)
 
$
(1,535
)
 
$
41,598

 
$
134,484

 
 
 
 
 
 
 
 
 
Earnings (loss) per share:
 
 
 
 
 
 
 
 
Basic
 
$
(2.35
)
 
$
(0.08
)
 
$
2.13

 
$
6.22

Diluted
 
$
(2.35
)
 
$
(0.08
)
 
$
2.02

 
$
5.69

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
19,196

 
20,306

 
19,504

 
21,625

Diluted
 
19,196

 
20,306

 
20,619

 
23,634

 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures (1)
 
 
 
 
 
 
 
 
Adjusted net income attributable to Altisource
 
$
38,048

 
$
6,275

 
$
143,475

 
$
169,141

Adjusted diluted earnings per share
 
$
1.86

 
$
0.28

 
$
6.96

 
$
7.16

__________________________
(1) These are non-GAAP measures that are defined and reconciled to the corresponding GAAP measures herein




3


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
SEGMENT FINANCIAL INFORMATION
(in thousands)
(unaudited) 

 
 
Year ended December 31, 2015
 
 
Mortgage
Services
 
Financial
Services
 
Technology
Services
 
Corporate
Items and
Eliminations
 
Consolidated
Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 

 
 

 
 

 
 

 
 

Service revenue
 
$
676,222

 
$
88,328

 
$
215,482

 
$
(39,112
)
 
$
940,920

Reimbursable expenses
 
107,224

 
120

 
—

 
—

 
107,344

Non-controlling interests
 
3,202

 
—

 
—

 
—

 
3,202

 
 
786,648

 
88,448

 
215,482

 
(39,112
)
 
1,051,466

Cost of revenue
 
474,169

 
60,806

 
187,835

 
(35,483
)
 
687,327

Gross profit (loss)
 
312,479

 
27,642

 
27,647

 
(3,629
)
 
364,139

Selling, general and administrative expenses
 
105,153

 
18,707

 
29,902

 
67,106

 
220,868

Impairment losses
 
—

 
—

 
71,785

 
—

 
71,785

Change in the fair value of Equator earn out liability
 
—

 
—

 
(7,591
)
 
—

 
(7,591
)
Income (loss) from operations
 
207,326

 
8,935

 
(66,449
)
 
(70,735
)
 
79,077

Other income (expense), net
 
506

 
58

 
61

 
(26,642
)
 
(26,017
)
Income (loss) before income taxes and non-controlling interests
 
$
207,832

 
$
8,993

 
$
(66,388
)
 
$
(97,377
)
 
$
53,060


 
 
Year ended December 31, 2014
 
 
Mortgage
Services
 
Financial
Services
 
Technology
Services
 
Corporate
Items and
Eliminations
 
Consolidated
Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 

 
 

 
 

 
 

 
 

Service revenue
 
$
653,093

 
$
98,312

 
$
227,300

 
$
(40,026
)
 
$
938,679

Reimbursable expenses
 
137,447

 
187

 
—

 
—

 
137,634

Non-controlling interests
 
2,603

 
—

 
—

 
—

 
2,603

 
 
793,143

 
98,499

 
227,300

 
(40,026
)
 
1,078,916

Cost of revenue
 
486,387

 
64,338

 
192,426

 
(35,971
)
 
707,180

Gross profit (loss)
 
306,756

 
34,161

 
34,874

 
(4,055
)
 
371,736

Selling, general and administrative expenses
 
94,686

 
18,791

 
32,393

 
55,863

 
201,733

Impairment losses
 
—

 
—

 
37,473

 
—

 
37,473

Change in the fair value of Equator earn out liability
 
—

 
—

 
(37,924
)
 
—

 
(37,924
)
Income (loss) from operations
 
212,070

 
15,370

 
2,932

 
(59,918
)
 
170,454

Other income (expense), net
 
204

 
62

 
(31
)
 
(23,424
)
 
(23,189
)
Income (loss) before income taxes and non-controlling interests
 
$
212,274

 
$
15,432

 
$
2,901

 
$
(83,342
)
 
$
147,265



4


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited) 
 
 
December 31,
 
 
2015
 
2014
ASSETS
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
179,327

 
$
161,361

Accounts receivable, net
 
105,023

 
112,183

Prepaid expenses and other current assets
 
21,751

 
23,567

Deferred tax assets, net
 
—

 
4,987

Total current assets
 
306,101

 
302,098

 
 
 
 
 
Premises and equipment, net
 
119,121

 
127,759

Goodwill
 
82,801

 
90,851

Intangible assets, net
 
197,003

 
245,246

Deferred tax assets, net
 
3,619

 
—

Other assets
 
19,337

 
22,267

 
 
 
 
 
Total assets
 
$
727,982

 
$
788,221

 
 
 
 
 
LIABILITIES AND EQUITY
Current liabilities:
 
 
 
 
Accounts payable and accrued expenses
 
$
91,871

 
$
111,766

Current portion of long-term debt
 
5,945

 
5,945

Deferred revenue
 
15,060

 
9,829

Other current liabilities
 
16,266

 
13,227

Total current liabilities
 
129,142

 
140,767

 
 
 
 
 
Long-term debt, less current portion
 
528,417

 
582,669

Deferred tax liabilities, net
 
—

 
2,694

Other non-current liabilities
 
18,153

 
20,648

 
 
 
 
 
Equity:
 
 
 
 
Common stock ($1.00 par value; 25,413 shares authorized and issued and 19,021 outstanding as of December 31, 2015; 25,413 shares authorized and issued and 20,279 outstanding as of December 31, 2014)
 
25,413

 
25,413

Additional paid-in capital
 
96,321

 
91,509

Retained earnings
 
369,270

 
367,967

Treasury stock, at cost (6,392 shares as of December 31, 2015 and 5,134 shares as of December 31, 2014)
 
(440,026
)
 
(444,495
)
Altisource equity
 
50,978

 
40,394

 
 
 
 
 
Non-controlling interests
 
1,292

 
1,049

Total equity
 
52,270

 
41,443

 
 
 
 
 
Total liabilities and equity
 
$
727,982

 
$
788,221



5


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) 
 
Years ended December 31,
 
2015
 
2014
 
 
 
 
Cash flows from operating activities:
 

 
 

Net income
$
44,800

 
$
137,087

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 

Depreciation and amortization
36,470

 
29,046

Amortization of intangible assets
41,135

 
37,680

Loss on sale of HLSS equity securities, net of dividends received
1,854

 
—

Change in the fair value of acquisition related contingent consideration
(7,184
)
 
(37,924
)
Impairment losses
71,785

 
37,473

Share-based compensation expense
4,812

 
2,236

Bad debt expense
5,514

 
16,257

Gain on early extinguishment of debt
(3,836
)
 
—

Amortization of debt discount
498

 
317

Amortization of debt issuance costs
1,374

 
1,151

Deferred income taxes
(1,326
)
 
1,166

Loss on disposal of fixed assets
26

 
184

Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
 

Accounts receivable
2,401

 
(22,492
)
Prepaid expenses and other current assets
1,883

 
(12,501
)
Other assets
2,993

 
(1,750
)
Accounts payable and accrued expenses
(14,483
)
 
24,285

Other current and non-current liabilities
6,636

 
(14,722
)
Net cash provided by operating activities
195,352

 
197,493

 
 
 
 
Cash flows from investing activities:
 

 
 

Additions to premises and equipment
(36,188
)
 
(64,846
)
Acquisition of businesses, net of cash acquired
(28,675
)
 
(34,720
)
Purchase of HLSS equity securities
(29,966
)
 
—

Proceeds received from sale of and dividends from HLSS equity securities
28,112

 
—

Change in restricted cash
722

 
(1,402
)
Other investing activities
—

 
(300
)
Net cash used in investing activities
(65,995
)
 
(101,268
)
 
 
 
 
Cash flows from financing activities:
 

 
 

Proceeds from issuance of long-term debt
—

 
198,000

Repurchases and repayment of long-term debt
(50,373
)
 
(4,959
)
Debt issuance costs
—

 
(2,608
)
Proceeds from stock option exercises
1,390

 
2,688

Purchase of treasury stock
(58,949
)
 
(255,713
)
Distributions to non-controlling interests
(2,959
)
 
(2,596
)
Other financing activities
(500
)
 
—

Net cash used in financing activities
(111,391
)
 
(65,188
)
 
 
 
 
Net increase in cash and cash equivalents
17,966

 
31,037

Cash and cash equivalents at the beginning of the period
161,361

 
130,324

 
 
 
 
Cash and cash equivalents at the end of the period
$
179,327

 
$
161,361

 
 
 
 
Supplemental cash flow information:
 

 
 

Interest paid
$
26,274

 
$
21,829

Income taxes paid, net
9,725

 
13,340

 
 
 
 
Non-cash investing and financing activities:
 

 
 

Acquisition of businesses with restricted shares
$
21,733

 
$
—

Decrease in payables for purchases of premises and equipment
(6,679
)
 
(2,328
)
Decrease in acquisition of businesses from subsequent working capital true-ups
—

 
(3,711
)

6


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited) 

Adjusted net income attributable to Altisource and adjusted diluted earnings per share are non-GAAP measures used by management, existing shareholders and potential shareholders to measure Altisource’s performance. Adjusted net income attributable to Altisource is calculated by adding intangible asset amortization expense (net of tax) and impairment losses (net of tax) and deducting gains associated with reductions of the Equator earn out liability (net of tax) to GAAP net income attributable to Altisource. Adjusted diluted earnings per share is calculated by dividing net income attributable to Altisource plus intangible asset amortization expense (net of tax) plus impairment losses (net of tax) less gains associated with reductions of the Equator earn out liability (net of tax) to GAAP net income attributable to Altisource by the weighted average number of diluted shares. Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows:
 
 
Three months ended December 31,
 
Years ended December 31,
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to Altisource
 
$
(45,096
)
 
$
(1,535
)
 
$
41,598

 
$
134,484

 
 
 
 
 
 
 
 
 
Intangible amortization expense, net of tax
 
12,514

 
7,810

 
38,187

 
35,076

Impairment loss, net of tax
 
70,630

 
—

 
70,630

 
34,884

Gain on Equator earn out liability, net of tax
 
—

 
—

 
(6,940
)
 
(35,303
)
 
 
 
 
 
 
 
 
 
Adjusted net income attributable to Altisource
 
$
38,048

 
$
6,275

 
$
143,475

 
$
169,141

 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
(2.35
)
 
$
(0.08
)
 
$
2.02

 
$
5.69

 
 
 
 
 
 
 
 
 
Impact of using diluted share count instead of basic share count for a loss per share
 
0.14

 
0.01

 
—

 
—

Intangible amortization expense, net of tax, per diluted share
 
0.61

 
0.35

 
1.85

 
1.48

Impairment loss, net of tax, per diluted share
 
3.46

 
—

 
3.43

 
1.48

Gain on Equator earn out liability, net of tax, per diluted share
 
—

 
—

 
(0.34
)
 
(1.49
)
 
 
 
 
 
 
 
 
 
Adjusted diluted earnings per share
 
$
1.86

 
$
0.28

 
$
6.96

 
$
7.16

 
 
 
 
 
 
 
 
 
Calculation of the impact of intangible amortization expense, net of tax
 
 
 
 
 
 
 
 
Intangible amortization expense
 
$
13,140

 
$
8,390

 
$
41,135

 
$
37,680

Tax benefit from intangible asset amortization
 
(626
)
 
(580
)
 
(2,948
)
 
(2,604
)
Intangible asset amortization expense, net of tax
 
12,514

 
7,810

 
38,187

 
35,076

Diluted share count
 
20,417

 
22,100

 
20,619

 
23,634

Intangible asset amortization expense, net of tax, per diluted share
 
$
0.61

 
$
0.35

 
$
1.85

 
$
1.48

 
 
 
 
 
 
 
 
 
Calculation of the impact of impairment loss, net of tax
 
 
 
 
 
 
 
 
Impairment loss
 
$
71,785

 
$
—

 
$
71,785

 
$
37,473

Tax benefit from impairment loss
 
(1,155
)
 
—

 
(1,155
)
 
(2,589
)
Impairment loss, net of tax
 
70,630

 
—

 
70,630

 
34,884

Diluted share count
 
20,417

 
22,100

 
20,619

 
23,634

Impairment loss, net of tax, per diluted share
 
$
3.46

 
$
—

 
$
3.43

 
$
1.48

 
 
 
 
 
 
 
 
 
Calculation of gain on Equator earn out liability, net of tax
 
 
 
 
 
 
 
 
Gain on Equator earn out liability
 
$
—

 
$
—

 
$
(7,591
)
 
$
(37,924
)
Tax provision from the gain on Equator earn out liability
 
—

 
—

 
651

 
2,621

Gain on Equator earn out liability, net of tax
 
—

 
—

 
(6,940
)
 
(35,303
)
Diluted share count
 
20,417

 
22,100

 
20,619

 
23,634

Gain on Equator earn out liability, net of tax, per diluted share
 
$
—

 
$
—

 
$
(0.34
)
 
$
(1.49
)


7