Altisource Announces Third Quarter Results06:00 EDT Thursday, October 25, 2012LUXEMBOURG, Oct. 25, 2012 (GLOBE NEWSWIRE) -- Altisource™ (Nasdaq:ASPS) today reported net income attributable to Altisource of $27.0 million or $1.08 per diluted share for the three months ended September 30, 2012, an increase in net income and diluted earnings per share from the three months ended September 30, 2011 of 57% and 61%, respectively. Service revenue was $118.6 million for the three months ended September 30, 2012, a 38% increase when compared to the three months ended September 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 the Company's expanded capture rate of default related business on the portfolio. Third quarter highlights include: Average number of loans serviced by Ocwen® on the REALServicing® platform was 0.8 million for the quarter Cash flows from operations for the quarter were $43.1 million representing $0.36 for each dollar of service revenue The consumer real estate portal was relaunched under the new HubzuTM brand; over 6,000 REO assets were sold through Hubzu during the quarter Origination related service revenue increased 69% to $10.1 million in the quarter compared to the third quarter of 2011 On October 3, 2012, Ocwen announced its agreement to acquire Homeward Residential Holdings Inc. from WL Ross & Co. LLC On October 24, 2012, Ocwen and Walter Investment Management Corp. announced they were jointly awarded the highest and best bid for the mortgage servicing and origination platform assets of Residential Capital, LLC Altisource Residential Corporation and Altisource Asset Management Corporation filed Form 10s with the Securities Exchange Commission in September 2012 Gross profit as a percentage of service revenue remained constant at 42% for the three months ended September 30, 2012 and the three months ended September 30, 2011. Margin improvement in the Mortgage Services segment was offset by higher costs in the Technology Services segment as the Company continues to invest in the development of its next generation technology. Income from operations as a percentage of service revenue improved to 26% for the three months ended September 30, 2012 compared to 25% for the three months ended September 30, 2011 as selling, general and administrative costs are growing at a slower pace than service revenue.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 third 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 and will remain available for approximately 30 days.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 nine months ended September 30, 2012 and 2011 are as follows:         Three months ended Nine months ended   September 30, September 30,   2012 2011 2012 2011           Service revenue         Mortgage Services $ 90,607 $ 58,915 $ 259,926 $ 147,768 Financial Services 15,283 16,934 49,100 53,067 Technology Services 19,076 14,827 53,984 41,115 Eliminations (6,364) (4,507) (17,820) (11,547)   118,602 86,169 345,190 230,403 Reimbursable expenses 24,326 21,833 77,846 56,933 Non-controlling interests 1,060 1,791 4,223 4,395 Total revenue 143,988 109,793 427,259 291,731 Cost of revenue 69,961 51,506 200,939 134,452 Reimbursable expenses 24,326 21,833 77,846 56,933 Gross profit 49,701 36,454 148,474 100,346 Selling, general and administrative expenses 18,452 15,329 54,485 45,487 Income from operations 31,249 21,125 93,989 54,859 Other (expense) income, net (267) (320) (939) 294 Income before income taxes and non-controlling interests 30,982 20,805 93,050 55,153 Income tax provision (2,898) (1,843) (8,493) (5,377) Net income 28,084 18,962 84,557 49,776 Net income attributable to non-controlling interests (1,060) (1,791) (4,223) (4,395) Net income attributable to Altisource $ 27,024 $ 17,171 $ 80,334 $ 45,381           Earnings per share:         Basic $ 1.16 $ 0.71 $ 3.44 $ 1.84 Diluted $ 1.08 $ 0.67 $ 3.23 $ 1.76           Weighted average shares outstanding:         Basic 23,338 24,341 23,347 24,602 Diluted 25,016 25,489 24,895 25,720           Transactions with related parties:         Revenue $ 86,558 $ 63,827 $ 257,491 $ 166,311 Selling, general and administrative expenses $ 621 $ 506 $ 1,801 $ 1,352                ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited, in thousands, except per share data)         September 30, December 31,   2012 2011 ASSETS           Current assets:     Cash and cash equivalents $ 84,429 $ 32,125 Accounts receivable, net 62,497 52,005 Prepaid expenses and other current assets 9,060 5,002 Deferred tax assets, net 3,570 1,133 Total current assets 159,556 90,265       Premises and equipment, net 46,352 25,600 Deferred tax assets, net 4,460 4,373 Intangible assets, net 58,593 64,950 Goodwill  14,915 14,915 Investment in equity affiliate 13,598 14,470 Other assets  8,777 9,586   $ 306,251 $ 224,159 Total assets           LIABILITIES AND EQUITY           Current liabilities:     Accounts payable and accrued expenses $ 61,264 $ 44,867 Capital lease obligations – current  345 634 Other current liabilities  9,806 9,939 Total current liabilities 71,415 55,440       Capital lease obligations – non-current  -- 202 Other non-current liabilities 2,441 2,574       Commitments and contingencies           Equity:     Common stock ($1.00 par value; 100,000 shares authorized; 25,413 issued and 23,363 outstanding as of September 30, 2012; 25,413 issued and 23,405 outstanding as of December 31, 2011) 25,413 25,413 Additional paid-in-capital 85,267 83,229 Retained earnings 200,736 126,161 Treasury stock, at cost (2,049 shares as of September 30, 2012 and 2,008 shares as of December 31, 2011) (80,451) (72,048) Altisource equity 230,965 162,755       Non-controlling interests 1,430 3,188 Total equity 232,395 165,943  Total liabilities and equity $ 306,251 $ 224,159CONTACT: Michelle D. Esterman Chief Financial Officer T: +352 2469 7950 E: michelle.esterman@altisource.lu