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): February 16, 2012

 

 

 

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

(Exact name of registrant as specified in its charter)

 

 

 

Luxembourg		001-34354		Not Applicable
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

291, Route d’Arlon L-1150 Luxembourg Grand Duchy of Luxembourg

(Address of principal executive offices, including zip code)

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

 

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):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02 Results of Operations and Financial Condition.

On February 16, 2012, Altisource Portfolio Solutions S.A. (“Altisource”) issued a press release announcing financial results for its year ended December 31, 2011. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Item 2.02, including the information in Exhibit 99.1 attached hereto pertaining to this Item 2.02, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, pursuant to this Item 2.02, 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 of Altisource Portfolio Solutions S.A. dated February 16, 2012.

 

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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: February 16, 2012

 

 

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Exhibit 99.1

 

 

			September 30,
FOR IMMEDIATE RELEASE			FOR FURTHER INFORMATION CONTACT:
			Robert D. Stiles
			Chief Financial Officer
			T: +352 2469 7903
			E: robert.stiles@altisource.lu

ALTISOURCE ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

Luxembourg, Luxembourg, 16 February 2012

Altisource™ (NASDAQ: ASPS) today reported Net Income Attributable to Altisource of $25.7 million or $1.02 per diluted share for the fourth quarter ended December 31, 2011 ($71.1 million or $2.77 per diluted share for the year then ended). This compares with Net Income Attributable to Altisource of $16.8 million or $0.64 per share for the fourth quarter of 2010 ($49.3 million or $1.88 per diluted share for the year then ended).

Service Revenue for the fourth quarter of 2011 was $104.4 million, up 40% compared to the fourth quarter of 2010 ($334.8 million for the year ended December 31, 2011, up 36% compared to 2010).

Fourth quarter highlights include:

 

•

Average loans serviced by the Company’s largest customer Ocwen® on the REALServicing® platform was 0.6 million for the quarter.

 

•

Generated cash flow from operations for the quarter of $42.9 million representing $0.41 for every dollar of Service Revenue.

 

•

Acquired 0.6 million shares of stock for the quarter under the stock repurchase program at an average price of $44.49 per share.

Gross margin for the fourth quarter improved when compared to the quarter ended September 30, 2011. On a consolidated basis, the fourth quarter increase was primarily driven by Mortgage Services’ mix of services and the expansion of insurance services operations.

From an operating margin perspective, margins for the total Company improved in the quarter when compared to the quarter ended September 30, 2011 by 500 basis points to 30% of Service Revenue. This reflects faster growth in the higher margin Mortgage Services segment and slower growth in Corporate costs.

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Financial Results

 

			September 30,				September 30,				September 30,				September 30,
		Three Months Ended December 31,								Year Ended December 31,
(in thousands, except per share data)		2011				2010				2011				2010
Service Revenue		$	104,355			$	74,301			$	334,758			$	247,026
Reimbursable Expenses			25,141				14,409				82,074				47,449
Cooperative Non-controlling Interest			2,460				2,767				6,855				6,903
Total Revenue			131,956				91,477				423,687				301,378
Cost of Revenue			59,323				42,008				193,775				141,610
Reimbursable Expenses			25,141				14,409				82,074				47,449
Gross Profit			47,492				35,060				147,838				112,319
Selling, General and Administrative Expenses			16,644				18,077				62,131				57,352
Income from Operations			30,848				16,983				85,707				54,967
Other Income (Expense), net			(91	)			138				203				804
Income Before Income Taxes and Non-controlling Interests			30,757				17,121				85,910				55,771
Income Tax (Provision) Benefit			(2,566	)			2,432				(7,943	)			403
Net Income			28,191				19,553				77,967				56,174
Net Income Attributable to Non-controlling
Interests			(2,460	)			(2,767	)			(6,855	)			(6,903	)
Net Income Attributable to Altisource		$	25,731			$	16,786			$	71,112			$	49,271
Earnings Per Share:
Basic		$	1.09			$	0.67			$	2.92			$	1.96
Diluted		$	1.02			$	0.64			$	2.77			$	1.88
Weighted Average Shares Outstanding:
Basic			23,692				25,091				24,373				25,083
Diluted			25,142				26,183				25,685				26,259
Transactions with Related Parties:
Revenue		$	76,367			$	50,494			$	245,262			$	154,988
Selling, General and Administrative Expenses		$	541			$	245			$	1,893			$	1,056

 

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Revenue

The following table presents Revenue by segment:

 

			September 30,				September 30,				September 30,				September 30,
		Three Months Ended December 31,								Year Ended December 31,
(in thousands)		2011				2010				2011				2010
Service Revenue:
Mortgage Services		$	77,174			$	46,057			$	224,942			$	135,680
Financial Services			16,164				18,072				69,231				74,718
Technology Services			14,979				14,591				56,094				52,013
Eliminations			(3,962	)			(4,419	)			(15,509	)			(15,385	)
Total Service Revenue			104,355				74,301				334,758				247,026
Reimbursable Expenses:
Mortgage Services			24,903				13,739				80,124				44,550
Financial Services			238				670				1,950				2,899
Total Reimbursable Expenses			25,141				14,409				82,074				47,449
Cooperative Non-controlling Interests:
Mortgage Services			2,460				2,767				6,855				6,903
Total Revenue		$	131,956			$	91,477			$	423,687			$	301,378

Stock Repurchase Update

For the year ended December 31, 2011, the Company repurchased 1.6 million shares (0.6 million shares during the fourth quarter) of common stock on the open market at an average price of $37.57 per share under the stock repurchase program. Since inception of the program, 2.3 million shares of common stock have been repurchased on the open market at an average price of $34.55 per share.

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 our 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.

 

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Webcast

Altisource will host a webcast at 11:00 a.m. Eastern today to discuss fourth quarter results. A link to the live audio webcast will be available on our 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 our website approximately two hours after the conclusion of the call.

About Altisource

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

 

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, Except Per Share Data)

 

			September 30,				September 30,
		December 31,
		2011				2010
ASSETS
Current Assets:
Cash and Cash Equivalents		$	32,125			$	22,134
Accounts Receivable, net			52,005				53,495
Prepaid Expenses and Other Current Assets			5,002				13,076
Deferred Tax Asset, net			1,133				551
Total Current Assets			90,265				89,256
Restricted Cash			158				1,045
Premises and Equipment, net			25,600				17,493
Deferred Tax Asset, net			4,373				1,206
Intangible Assets, net			64,950				72,428
Goodwill			14,915				11,836
Investment in Equity Affiliate			14,470				—
Other Non-current Assets			9,428				4,536
Total Assets		$	224,159			$	197,800
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses		$	44,867			$	35,384
Capital Lease Obligations—Current			634				680
Other Current Liabilities			9,939				5,616
Total Current Liabilities			55,440				41,680
Capital Lease Obligations—Non-current			202				852
Other Non-current Liabilities			2,574				3,370
Commitment and Contingencies
Equity:
Common Stock ($1.00 par value; 100,000 shares authorized;
25,413 shares issued and 23,405 outstanding in 2011;
25,413 shares issued and 24,881 outstanding in 2010)			25,413				25,413
Retained Earnings			126,161				58,546
Additional Paid-in-Capital			83,229				79,297
Treasury Stock, at cost ($1.00 par value; 2,008 and 532 sharesin 2011 and 2010, respectively)			(72,048	)			(14,418	)
Altisource Equity			162,755				148,838
Non-controlling Interests			3,188				3,060
Total Equity			165,943				151,898
Total Liabilities and Equity		$	224,159			$	197,800

 

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