Press release from GlobeNewswire (a Nasdaq OMX company)
Altisource Announces Fourth Quarter and Full Year Results
Thursday, February 16, 2012
LUXEMBOURG, 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 $44.49 per share.
Gross margin for the fourth quarter improved when compared to the quarter ended September 30, 2011. On a consolidated basis, the fourth quarter increase was primarily driven by Mortgage Services' mix of services and the expansion of insurance services operations.
From an operating margin perspective, margins for the total Company improved in the quarter when compared to the quarter ended September 30, 2011 by 500 basis points to 30% of Service Revenue. This reflects faster growth in the higher margin Mortgage Services segment and slower growth in Corporate costs.
Three Months Ended
|(in thousands, except per share data)||2011||2010||2011||2010|
|Service Revenue||$ 104,355||$ 74,301||$ 334,758||$ 247,026|
|Cooperative Non-controlling Interest||2,460||2,767||6,855||6,903|
|Cost of Revenue||59,323||42,008||193,775||141,610|
|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 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:|
|Transactions with Related Parties:|
|Revenue||$ 76,367||$ 50,494||$ 245,262||$ 154,988|
|Selling, General and Administrative Expenses||$ 541||$ 245||$ 1,893||$ 1,056|
The following table presents Revenue by segment:
Three Months Ended
|Mortgage Services||$ 77,174||$ 46,057||$ 224,942||$ 135,680|
|Total Service Revenue||104,355||74,301||334,758||247,026|
|Total Reimbursable Expenses||25,141||14,409||82,074||47,449|
|Cooperative Non-controlling Interests|
|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.
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.
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.
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)|
|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|
|Premises and Equipment, net||25,600||17,493|
|Deferred Tax Assets, net||4,373||1,206|
|Intangible Assets, net||64,950||72,428|
|Investment in Equity Affiliate||14,470||—|
|Other Non-current Assets||9,428||4,536|
|Total Assets||$ 224,159||$ 197,800|
|LIABILITIES AND EQUITY|
|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
|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|
|Treasury Stock, at cost ($1.00 par value; 2,008 and 532 shares in 2011 and 2010, respectively)||(72,048)||(14,418)|
|Total Liabilities and Equity||$ 224,159||$ 197,800|
CONTACT: Robert D. Stiles Chief Financial Officer T: +352 2469 7903 E: firstname.lastname@example.org