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Press release from GlobeNewswire (a Nasdaq OMX company)

Altisource Announces Fourth Quarter and Full Year Results

Thursday, February 16, 2012

Altisource Announces Fourth Quarter and Full Year Results06:00 EST Thursday, February 16, 2012LUXEMBOURG, Feb. 16, 2012 (GLOBE NEWSWIRE) -- 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.Financial Results         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 (Expense) Income, 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          Revenue The following table presents Revenue by segment:         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 $ 301,378Stock 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.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.     ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED BALANCE SHEETS(Dollars in thousands, Except Per Share Data)         December 31, 2011 December 31, 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 Assets, 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 Assets, 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   Commitments 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 shares in 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 $ 197,800CONTACT: Robert D. Stiles Chief Financial Officer T: +352 2469 7903 E: robert.stiles@altisource.lu