IRVINE, Calif., July 23, 2014 /PRNewswire/ -- CoreLogic
(NYSE:CLGX), a leading global property information, analytics and
data-enabled services provider, today reported financial results
for the quarter ended June 30,
2014.
"CoreLogic delivered strong operating results in the second
quarter despite the continuing contraction in U.S. mortgage
volumes. We continued to scale and grow our D&A and TPS
segments in line with our strategic business plan and we also
invested in areas of strategic growth and operational excellence
which we believe will provide sustainable, long-term value creation
for our stakeholders," said Anand
Nallathambi, President and Chief Executive Officer of
CoreLogic. "As we move forward, we will continue to
aggressively shift our business mix toward data-driven,
subscription based models built around unique data sets, analytics
and data-enabled services. The successful transformation of
our business operations over the past three years has underpinned
our consistent outperformance of the broader housing and mortgage
markets and positions us for growth and margin expansion in the
future."
"We grew revenues and delivered strong margins and free cash
flow in the second quarter. We also progressed our major
operational initiatives, exceeded our cost reduction targets,
reduced our debt and repurchased close to one million of our common
shares," added Frank Martell, Chief
Operating and Financial Officer of CoreLogic. "Over the
balance of 2014, we will remain focused on progressing our
imperatives of growing our D&A segment to over 50% of our total
revenues and ensuring that our TPS operations outperform their
respective markets and are well-positioned to capitalize on a
rebound in U.S. mortgage volumes from current trough levels."
Second Quarter Financial Highlights
Second quarter revenues totaled $349.4
million, 0.4% higher than prior-year levels and a 13%
increase from the first quarter of 2014. Year-on-year revenue
gains were principally attributable to market share gains and
acquisition-related revenues which offset the impact of an
estimated 50% decline in U.S. mortgage origination volumes.
D&A revenues of $174.1 million
were 14% above prior year levels driven principally by higher
insurance, spatial solutions, international and core property data
revenues, which more than offset the impact of lower mortgage
volumes, declines in specialty credit and multifamily tenant
screening revenues and the exit of certain non-core product
lines. TPS revenues fell 11% to $177.3
million year-over-year as the benefit of market share gains
in payment processing were more than offset by the impact of
contracting mortgage volumes and lower project-related document
processing and retrieval revenues related to the transfer of
mortgage servicing rights (MSRs) portfolios.
Operating income from continuing operations totaled $42.1 million for the second quarter, an 11%
decrease from prior-year levels and a 208% increase from the first
quarter of 2014. The year-over-year decrease in operating
income was principally attributable to lower mortgage volumes and
costs related to the ongoing execution of the Company's strategic
transformation program. Regarding the latter, during the
second quarter of 2014 the Company incurred (1) costs
associated with the acquisition and integration of Bank of America
(BAC) tax services operations, Marshall & Swift/Boeckh (MSB)
and DataQuick Information Systems (DQ) totaling $6.7 million, (2) cash and non-cash charges
attributable to the Technology Transformation Initiative (TTI) of
$5.3 million, (3) severance and other
charges of $2.6 million related to
the Company's 2014 cost reduction program and (4) overhead costs
previously allocated to the AMPS segment (stranded AMPS costs) of
$2.4 million. Second quarter
2014 operating margin was 12% including the impact of approximately
487 basis points attributable to the transformation program costs
discussed above.
Second quarter net income from continuing operations totaled
$25.2 million compared with
$32.0 million in the same 2013 period
and a net loss from continuing operations of $3.9 million in the first quarter of 2014.
The year-over-year decrease was driven primarily by the impact of
lower mortgage volumes, higher interest expense and the
transformation program costs discussed previously. Diluted
EPS from continuing operations totaled $0.27 for the second quarter of 2014 compared
with $0.33 in the second quarter of
2013. Adjusted diluted EPS totaled $0.36, down from $0.48 in the same 2013 period reflecting the
impact of lower mortgage volumes, higher interest expense,
integration and transition costs related to the BAC, MSB and DQ
acquisitions as well as severance and stranded AMPS costs.
Adjusted EBITDA totaled $94.1
million in second quarter 2014 compared with $111.0 million in the same prior year period and
$64.0 million in first quarter
2014. Second quarter 2014 adjusted EBITDA margin was 27%,
compared with 32% in the second quarter of 2013. The
year-over-year decrease in adjusted EBITDA was principally the
result of lower mortgage volumes; one-time non-operating costs
attributable to the BAC, MSB and DQ acquisitions and severance
charges related to the Company's 2014 cost reduction program which
collectively totaled $8.2 million;
cash charges related to TTI of $4.6
million, and the stranded AMPS costs of $2.4 million discussed previously. D&A
adjusted EBITDA totaled $56.7
million, an 11% increase from 2013, as higher revenues in
the insurance and spatial solutions and international operations
more than offset the impact of lower mortgage loan application
volumes and declines in specialty credit and tenant
screening. TPS adjusted EBITDA decreased 37% to $47.2 million compared with prior-year levels
driven primarily by lower market volumes and integration costs
related to the acquisition of BAC's tax operation.
Operational Excellence Programs
During the fourth quarter of 2013, CoreLogic launched a cost
reduction program designed to lower 2014 operating expenses by at
least $25 million. Cost savings
relate primarily to workforce reductions in corporate shared
services and information technology (IT), the outsourcing of
certain business process functions and cuts in spending on real
estate and outside services. Severance charges and savings
associated with this program totaled $2.6
million and $10.1 million,
respectively, for the second quarter of 2014.
CoreLogic launched the TTI during mid-2012. The primary
objective of the TTI is to convert the Company's existing
technology infrastructure to a new platform which is expected to
provide new functionality, increased performance and a reduction in
application management and development costs commencing in the
second half of 2015. Second quarter 2014 cash and non-cash
charges related to TTI implementation totaled $5.3 million.
During the first half of 2014, the Company successfully
completed the integration of BAC's flood zone determination and tax
services operations.
Liquidity and Capital Resources
At June 30, 2014, the Company had
cash and cash equivalents of $140.9
million compared with $134.7
million at December 31,
2013. Total debt as of June 30,
2014 was approximately $1.5
billion, up $633.7 million
from December 31, 2013. The
increase in outstanding debt was primarily the result of the
completion of the acquisition of MSB and DQ on March 25, 2014. As of June 30, 2014, the Company had available capacity
on its revolving credit facility under the Credit Agreement of
$365.0 million.
During the second quarter of 2014, the Company repaid
approximately $51 million in term
loan and revolving debt. The Company also repurchased 848,779 of
its common shares for a total of $25.2
million during the second quarter. Through the first
six months of 2014, the Company has repurchased approximately 1.1
million of its common shares.
Free cash flow (FCF) for the twelve months ended June 30, 2014 totaled $197.1 million, which represented 60% of adjusted
EBITDA. Year-to-date 2014 FCF totaled $82.6 million or 52% of adjusted EBITDA.
FCF is defined as net cash provided by continuing operating
activities less capital expenditures for purchases of property and
equipment, capitalized data and other intangible assets. Net
operating cash provided by continuing operations for the six months
ended June 30, 2014 was $125.5 million.
2014 Financial Guidance (Continuing Operations)
Based on current market trends, the Company has reduced its
full-year 2014 estimate for U.S. mortgage originations by ten
percent to approximately $1
trillion. The impact of lower volumes of originations,
as well as continuing headwinds in the U.S. housing market, and
expected reductions in discretionary client spending is reflected
in the following updated 2014 guidance: revenues; adjusted EBITDA
and adjusted EPS of $1.33 to $1.37
billion, $335 to $360 million,
and $1.25 to $1.40 per share,
respectively.
Teleconference/Webcast
CoreLogic management will host a live webcast and conference
call on Thursday, July 24, 2014, at
8:00 a.m. Pacific time (11:00 a.m. Eastern Time) to discuss these
results. All interested parties are invited to listen to the
event via webcast on the CoreLogic website at
http://investor.corelogic.com. Alternatively, participants
may use the following dial-in numbers: 1-877-280-4953 for
U.S./Canada callers or
857-244-7310 for international callers. The Conference ID for the
call is 11918268.
Additional detail on the Company's second quarter results is
included in the quarterly financial supplement, available on the
Investor Relations page at http://investor.corelogic.com.
A replay of the webcast will be available on the CoreLogic
investor website for 30 days and also through the conference call
number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for
international participants using Conference ID 8969743.
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading
global property information, analytics and data-enabled services
provider. The Company's combined data from public, contributory and
proprietary sources includes over 3.5 billion records spanning more
than 40 years, providing detailed coverage of property, mortgages
and other encumbrances, consumer credit, tenancy, location, hazard
risk and related performance information. The markets CoreLogic
serves include real estate and mortgage finance, insurance, capital
markets, and the public sector. CoreLogic delivers value to clients
through unique data, analytics, workflow technology, advisory and
managed services. Clients rely on CoreLogic to help identify and
manage growth opportunities, improve performance and mitigate risk.
Headquartered in Irvine, Calif.,
CoreLogic operates in North
America, Western Europe and
Asia Pacific. For more
information, please visit www.corelogic.com.
Safe Harbor / Forward Looking Statements
Certain
statements made in this press release are forward-looking
statements within the meaning of the federal securities laws,
including but not limited to those statements related to the
Company's investment and strategic growth plans, such as plans to
transform to a higher-growth, higher-margin company through
enhancements to its business operations, growing D&A to over
50% of revenues, cost productivity and the TTI; the Company's
overall financial performance, including future revenue and profit
growth and market position, and the Company's margin and cash flow
profile; the Company's full-year expected results and updated
2014 financial guidance; mortgage and housing market trends,
including mortgage origination and mortgage delinquency volumes;
the anticipated benefits of the acquisitions of MSB, DQ, and Bank
of America's flood and tax processing operations to the Company's
financial results; and our plans to reduce our outstanding debt and
continue to return capital to shareholders through our share
repurchase program. Risks and uncertainties exist that may cause
the results to differ materially from those set forth in these
forward-looking statements. Factors that could cause the
anticipated results to differ from those described in the
forward-looking statements include failure to successfully
integrate the operations, technology, infrastructure and employees
of MSB and DQ; and the additional risks and uncertainties set forth
in Part I, Item 1A of our most recent Annual Report on Form 10-K,
as amended or updated by our Quarterly Reports on Form 10-Q. These
additional risks and uncertainties include but are not limited to:
limitations on access to or increase in prices for data from
external sources, including government and public record sources;
changes in applicable government legislation, regulations and the
level of regulatory scrutiny affecting our customers or us,
including with respect to consumer financial services and the use
of public records and consumer data; compromises in the security of
our data, including the transmission of confidential information or
systems interruptions; difficult conditions in the mortgage and
consumer lending industries and the economy generally; our ability
to protect proprietary rights; our TTI and growth strategies and
our ability to effectively and efficiently implement them; risks
related to the outsourcing of services and international
operations; our indebtedness and the restrictions in our various
debt agreements; our ability to realize the anticipated benefits of
certain acquisitions and/or divestitures and the timing thereof;
the inability to control the dividend policies of our
partially-owned affiliates; and impairments in our goodwill or
other intangible assets. The forward-looking statements speak only
as of the date they are made. The Company does not undertake to
update forward-looking statements to reflect circumstances or
events that occur after the date the forward-looking statements are
made.
Use of Non-GAAP (Generally Accepted Accounting Principles)
Financial Measures
This press release contains certain
non-GAAP financial measures which are provided only as supplemental
information. Investors should consider these non-GAAP financial
measures only in conjunction with the most directly comparable GAAP
financial measures. These non-GAAP measures are not in accordance
with or a substitute for U.S. GAAP. A reconciliation of non-GAAP
measures to the most directly comparable GAAP financial measures is
included in this press release. The Company is not able to provide
a reconciliation of projected adjusted EBIDTA or projected adjusted
earnings per share, where provided, to expected results due to the
unknown effect, timing and potential significance of special
charges or gains.
The Company believes that its presentation of non-GAAP
measures, such as adjusted EBITDA, adjusted EPS and FCF, provides
useful supplemental information to investors and management
regarding CoreLogic's financial condition and results. Adjusted
EBITDA is defined as earnings from continuing operations before
interest, taxes, depreciation, amortization, non-cash stock
compensation, non-operating gains/losses and other one-time
adjustments plus pretax equity in earnings of affiliates. Adjusted
net income is defined as income from continuing operations before
equity earnings of affiliates, adjusted for non-cash stock
compensation, amortization of acquisition-related intangibles,
non-operating gains/losses, and other adjustments plus pretax
equity in earnings of affiliates, tax affected at an assumed
effective tax rate of 38% for 2014 and 40% for all periods prior to
2014. Adjusted EPS is derived by dividing adjusted net income by
diluted weighted average shares. FCF is defined as net cash
provided by continuing operating activities less capital
expenditures for purchases of property and equipment, capitalized
data and other intangible assets. Other firms may calculate
non-GAAP measures differently than CoreLogic, which limits
comparability between companies.
(Additional Financial Data Follow)
CORELOGIC,
INC.
CONSOLIDATED
INCOME STATEMENTS
UNAUDITED
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(in thousands,
except per share amounts)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
revenues
|
$
|
349,421
|
|
|
$
|
348,201
|
|
|
$
|
659,838
|
|
|
$
|
679,501
|
|
Cost of services
(excluding depreciation and amortization shown below)
|
182,222
|
|
|
168,060
|
|
|
359,603
|
|
|
335,689
|
|
Selling, general and
administrative expenses
|
89,763
|
|
|
98,476
|
|
|
179,709
|
|
|
180,667
|
|
Depreciation and
amortization
|
35,333
|
|
|
34,154
|
|
|
64,772
|
|
|
68,295
|
|
Total operating
expenses
|
307,318
|
|
|
300,690
|
|
|
604,084
|
|
|
584,651
|
|
Operating
income
|
42,103
|
|
|
47,511
|
|
|
55,754
|
|
|
94,850
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,041
|
|
|
685
|
|
|
2,213
|
|
|
1,409
|
|
Interest
expense
|
17,321
|
|
|
12,438
|
|
|
34,149
|
|
|
24,814
|
|
Total interest
expense, net
|
(16,280)
|
|
|
(11,753)
|
|
|
(31,936)
|
|
|
(23,405)
|
|
Gain on investments
and other, net
|
6,992
|
|
|
393
|
|
|
2,642
|
|
|
1,734
|
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
32,815
|
|
|
36,151
|
|
|
26,460
|
|
|
73,179
|
|
Provision for income
taxes
|
11,305
|
|
|
13,529
|
|
|
10,942
|
|
|
27,751
|
|
Income from
continuing operations before equity in earnings of
affiliates
|
21,510
|
|
|
22,622
|
|
|
15,518
|
|
|
45,428
|
|
Equity in earnings of
affiliates, net of tax
|
3,874
|
|
|
9,347
|
|
|
6,257
|
|
|
18,132
|
|
Net income from
continuing operations
|
25,384
|
|
|
31,969
|
|
|
21,775
|
|
|
63,560
|
|
(Loss)/income from
discontinued operations, net of tax
|
(9,165)
|
|
|
11,581
|
|
|
(8,082)
|
|
|
15,277
|
|
Loss from sale of
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,744)
|
|
Net income
|
16,219
|
|
|
43,550
|
|
|
13,693
|
|
|
77,093
|
|
Less: Net
income/(loss) attributable to noncontrolling interests
|
230
|
|
|
—
|
|
|
495
|
|
|
(26)
|
|
Net income
attributable to CoreLogic
|
$
|
15,989
|
|
|
$
|
43,550
|
|
|
$
|
13,198
|
|
|
$
|
77,119
|
|
Amounts attributable
to CoreLogic stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
25,154
|
|
|
$
|
31,969
|
|
|
$
|
21,280
|
|
|
$
|
63,586
|
|
(Loss)/income from
discontinued operations, net of tax
|
(9,165)
|
|
|
11,581
|
|
|
(8,082)
|
|
|
15,277
|
|
Loss from sale of
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,744)
|
|
Net income
attributable to CoreLogic
|
$
|
15,989
|
|
|
$
|
43,550
|
|
|
$
|
13,198
|
|
|
$
|
77,119
|
|
Basic income/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
0.27
|
|
|
$
|
0.33
|
|
|
$
|
0.23
|
|
|
$
|
0.66
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.10)
|
|
|
0.12
|
|
|
(0.09)
|
|
|
0.16
|
|
Loss from sale of
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Net income
attributable to CoreLogic
|
$
|
0.17
|
|
|
$
|
0.45
|
|
|
$
|
0.14
|
|
|
$
|
0.80
|
|
Diluted income/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
0.27
|
|
|
$
|
0.33
|
|
|
$
|
0.23
|
|
|
$
|
0.65
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.10)
|
|
|
0.12
|
|
|
(0.09)
|
|
|
0.16
|
|
Loss from sale of
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Net income
attributable to CoreLogic
|
$
|
0.17
|
|
|
$
|
0.45
|
|
|
$
|
0.14
|
|
|
$
|
0.79
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
91,750
|
|
|
95,516
|
|
|
91,591
|
|
|
96,315
|
|
Diluted
|
93,062
|
|
|
97,180
|
|
|
93,235
|
|
|
98,120
|
|
|
Please refer to
the full Form 10-Q filing for the complete financial statements and
related notes that are an integral part of the financial
statements.
|
CORELOGIC,
INC.
CONSOLIDATED
BALANCE SHEETS
UNAUDITED
|
|
|
|
|
(in thousands,
except par value)
|
June
30,
|
|
December
31,
|
Assets
|
2014
|
|
2013
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
140,909
|
|
|
$
|
134,741
|
|
Marketable
securities
|
22,299
|
|
|
22,220
|
|
Accounts receivable
(less allowance for doubtful accounts of $11,912 and $12,930 as of
June 30, 2014 and December 31, 2013, respectively)
|
197,662
|
|
|
196,282
|
|
Prepaid expenses and
other current assets
|
50,861
|
|
|
50,674
|
|
Income tax
receivable
|
—
|
|
|
13,516
|
|
Deferred income tax
assets, current
|
88,995
|
|
|
86,158
|
|
Assets of
discontinued operations
|
132,246
|
|
|
138,023
|
|
Total current
assets
|
632,972
|
|
|
641,614
|
|
Property and
equipment, net
|
372,846
|
|
|
195,645
|
|
Goodwill,
net
|
1,774,013
|
|
|
1,390,674
|
|
Other intangible
assets, net
|
297,039
|
|
|
175,808
|
|
Capitalized data and
database costs, net
|
341,563
|
|
|
330,188
|
|
Investment in
affiliates, net
|
103,346
|
|
|
95,343
|
|
Restricted
cash
|
12,544
|
|
|
12,050
|
|
Other
assets
|
164,445
|
|
|
162,033
|
|
Total
assets
|
$
|
3,698,768
|
|
|
$
|
3,003,355
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
160,652
|
|
|
$
|
154,526
|
|
Accrued salaries and
benefits
|
74,184
|
|
|
101,715
|
|
Deferred revenue,
current
|
252,093
|
|
|
223,323
|
|
Income taxes
payable
|
35,000
|
|
|
—
|
|
Current portion of
long-term debt
|
33,339
|
|
|
28,154
|
|
Liabilities of
discontinued operations
|
42,358
|
|
|
30,309
|
|
Total current
liabilities
|
597,626
|
|
|
538,027
|
|
Long-term debt, net
of current
|
1,440,262
|
|
|
811,776
|
|
Deferred revenue, net
of current
|
362,444
|
|
|
377,086
|
|
Deferred income tax
liabilities, long term
|
103,184
|
|
|
74,308
|
|
Other
liabilities
|
134,481
|
|
|
147,583
|
|
Total
liabilities
|
2,637,997
|
|
|
1,948,780
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
10,669
|
|
|
10,202
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
CoreLogic
stockholders' equity:
|
|
|
|
|
|
Preferred stock,
$0.00001 par value; 500 shares authorized, no shares issued or
outstanding
|
—
|
|
|
—
|
|
Common stock,
$0.00001 par value; 180,000 shares authorized; 91,133 and 91,254
shares issued and outstanding as of June 30, 2014 and December 31,
2013, respectively
|
1
|
|
|
1
|
|
Additional paid-in
capital
|
645,338
|
|
|
672,165
|
|
Retained
earnings
|
439,020
|
|
|
425,796
|
|
Accumulated other
comprehensive loss
|
(34,257)
|
|
|
(53,589)
|
|
Total
equity
|
1,050,102
|
|
|
1,044,373
|
|
Total liabilities and
equity
|
$
|
3,698,768
|
|
|
$
|
3,003,355
|
|
|
Please refer to
the full Form 10-Q filing for the complete financial statements and
related notes that are an integral part of the financial
statements.
|
CORELOGIC,
INC.
CONSOLIDATED
STATEMENT OF CASH FLOWS
UNAUDITED
|
|
|
|
For the Six Months
Ended
|
|
June
30,
|
(in
thousands)
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
13,693
|
|
|
$
|
77,093
|
|
Less: (Loss)/income
from discontinued operations, net of tax
|
(8,082)
|
|
|
15,277
|
|
Less: Loss from sale
of discontinued operations, net of tax
|
—
|
|
|
(1,744)
|
|
Net income from
continuing operations
|
21,775
|
|
|
63,560
|
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
64,772
|
|
|
68,295
|
|
Provision for bad
debt and claim losses
|
6,958
|
|
|
8,469
|
|
Share-based
compensation
|
15,504
|
|
|
16,711
|
|
Excess tax benefit
related to stock options
|
(6,275)
|
|
|
(2,652)
|
|
Equity in earnings of
affiliates, net of taxes
|
(6,257)
|
|
|
(18,132)
|
|
Gain on sale of
property and equipment
|
(24)
|
|
|
—
|
|
Loss on early
extinguishment of debt
|
763
|
|
|
—
|
|
Deferred income
tax
|
3,603
|
|
|
3,737
|
|
Gain on investments
and other, net
|
(2,642)
|
|
|
(1,734)
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
9,681
|
|
|
(11,324)
|
|
Prepaid expenses and
other current assets
|
1,916
|
|
|
(1,463)
|
|
Accounts payable and
accrued expenses
|
(27,884)
|
|
|
(32,863)
|
|
Deferred
revenue
|
(12,956)
|
|
|
26,014
|
|
Income
taxes
|
44,723
|
|
|
11,878
|
|
Dividends received
from investments in affiliates
|
26,052
|
|
|
23,868
|
|
Other assets and
other liabilities
|
(14,235)
|
|
|
(19,624)
|
|
Net cash provided by
operating activities - continuing operations
|
125,474
|
|
|
134,740
|
|
Net cash provided by
operating activities - discontinued operations
|
10,059
|
|
|
30,458
|
|
Total cash provided
by operating activities
|
$
|
135,533
|
|
|
$
|
165,198
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of
capitalized data and other intangible assets
|
$
|
(16,533)
|
|
|
$
|
(18,928)
|
|
Purchases of property
and equipment
|
(26,296)
|
|
|
(34,410)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(670,036)
|
|
|
(6,852)
|
|
Purchases of
investments
|
—
|
|
|
(2,351)
|
|
Cash received from
sale of discontinued operations
|
—
|
|
|
2,263
|
|
Proceeds from sale of
property and equipment
|
36
|
|
|
—
|
|
Change in restricted
cash
|
(494)
|
|
|
2,093
|
|
Net cash used in
investing activities - continuing operations
|
(713,323)
|
|
|
(58,185)
|
|
Net cash used in
investing activities - discontinued operations
|
—
|
|
|
(253)
|
|
Total cash used in
investing activities
|
$
|
(713,323)
|
|
|
$
|
(58,438)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
long-term debt
|
$
|
690,017
|
|
|
$
|
551
|
|
Debt issuance
costs
|
(14,042)
|
|
|
—
|
|
Repayment of
long-term debt
|
(56,550)
|
|
|
(4,423)
|
|
Proceeds from
issuance of stock related to stock options and employee benefit
plans
|
4,440
|
|
|
7,119
|
|
Minimum tax
withholding paid on behalf of employees for restricted stock
units
|
(15,034)
|
|
|
(6,680)
|
|
Shares repurchased
and retired
|
(32,041)
|
|
|
(75,676)
|
|
Excess tax benefit
related to stock options
|
6,275
|
|
|
2,652
|
|
Net cash provided
by/(used in) financing activities - continuing
operations
|
583,065
|
|
|
(76,457)
|
|
Net cash provided by
financing activities - discontinued operations
|
—
|
|
|
—
|
|
Total cash provided
by/(used in) financing activities
|
$
|
583,065
|
|
|
$
|
(76,457)
|
|
Effect of exchange
rate on cash
|
903
|
|
|
(2,574)
|
|
Net increase in cash
and cash equivalents
|
6,178
|
|
|
27,729
|
|
Cash and cash
equivalents at beginning of period
|
134,741
|
|
|
151,986
|
|
Less: Change in cash
and cash equivalents - discontinued operations
|
10,059
|
|
|
30,205
|
|
Plus: Cash swept from
discontinued operations
|
10,049
|
|
|
28,471
|
|
Cash and cash
equivalents at end of period
|
$
|
140,909
|
|
|
$
|
177,981
|
|
|
|
|
|
|
|
Please refer to
the full Form 10-Q filing for the complete financial statements and
related notes that are an integral part of the financial
statements.
|
CORELOGIC,
INC.
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2014
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
28,870
|
|
$
|
39,571
|
|
$
|
(35,626)
|
|
$
|
—
|
|
$
|
32,815
|
|
Pretax equity in
earnings
|
(202)
|
|
6,409
|
|
66
|
|
—
|
|
6,273
|
|
Depreciation &
amortization
|
26,329
|
|
6,065
|
|
2,939
|
|
—
|
|
35,333
|
|
Total interest
expense
|
(21)
|
|
73
|
|
16,228
|
|
—
|
|
16,280
|
|
Stock-based
compensation
|
1,699
|
|
1,121
|
|
4,759
|
|
—
|
|
7,579
|
|
Non-operating
investment (gains)/losses
|
—
|
|
(6,012)
|
|
—
|
|
—
|
|
(6,012)
|
|
Efficiency
investments
|
—
|
|
—
|
|
694
|
|
—
|
|
694
|
|
Transaction
Costs
|
—
|
|
—
|
|
1,118
|
|
—
|
|
1,118
|
|
Adjusted
EBITDA
|
$
|
56,675
|
|
$
|
47,227
|
|
$
|
(9,822)
|
|
$
|
—
|
|
$
|
94,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2013
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
30,013
|
|
$
|
50,474
|
|
$
|
(44,336)
|
|
$
|
—
|
|
$
|
36,151
|
|
Pretax equity in
earnings
|
546
|
|
14,415
|
|
174
|
|
—
|
|
15,135
|
|
Depreciation &
amortization
|
19,141
|
|
7,280
|
|
7,733
|
|
—
|
|
34,154
|
|
Total interest
expense
|
(133)
|
|
136
|
|
11,750
|
|
—
|
|
11,753
|
|
Stock-based
compensation
|
1,542
|
|
2,509
|
|
4,559
|
|
—
|
|
8,610
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,013
|
|
—
|
|
1,013
|
|
Spin & legacy
corporate costs
|
—
|
|
—
|
|
4,151
|
|
—
|
|
4,151
|
|
Adjusted
EBITDA
|
$
|
51,109
|
|
$
|
74,814
|
|
$
|
(14,956)
|
|
$
|
—
|
|
$
|
110,967
|
|
CORELOGIC,
INC.
RECONCILIATION OF
ADJUSTED DILUTED EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2014
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
28,870
|
|
$
|
39,571
|
|
$
|
(35,626)
|
|
$
|
—
|
|
$
|
32,815
|
|
Pretax equity in
earnings
|
(202)
|
|
6,409
|
|
66
|
|
—
|
|
6,273
|
|
Stock-based
compensation
|
1,699
|
|
1,121
|
|
4,759
|
|
—
|
|
7,579
|
|
Non-operating
investment (gains)/losses
|
—
|
|
(6,012)
|
|
—
|
|
—
|
|
(6,012)
|
|
Efficiency
investments
|
—
|
|
—
|
|
694
|
|
—
|
|
694
|
|
Transaction
costs
|
—
|
|
—
|
|
1,118
|
|
—
|
|
1,118
|
|
Amortization of
acquired intangibles
|
7,308
|
|
2,671
|
|
—
|
|
—
|
|
9,979
|
|
Depreciation of
certain acquired proprietary technology included in property and
equipment
|
2,635
|
|
—
|
|
—
|
|
—
|
|
2,635
|
|
Adjusted pretax
income from continuing operations
|
$
|
40,310
|
|
$
|
43,760
|
|
$
|
(28,989)
|
|
$
|
—
|
|
$
|
55,081
|
|
Tax provision (38%
rate)
|
|
|
|
|
|
|
|
|
20,931
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
230
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
33,920
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
93,062
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2013
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
30,013
|
|
$
|
50,474
|
|
$
|
(44,336)
|
|
$
|
—
|
|
$
|
36,151
|
|
Pretax equity in
earnings
|
546
|
|
14,415
|
|
174
|
|
—
|
|
15,135
|
|
Stock-based
compensation
|
1,542
|
|
2,509
|
|
4,559
|
|
—
|
|
8,610
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,013
|
|
—
|
|
1,013
|
|
Spin & legacy
corporate costs
|
—
|
|
—
|
|
4,151
|
|
—
|
|
4,151
|
|
Accelerated
depreciation on TTI
|
—
|
|
—
|
|
4,375
|
|
—
|
|
4,375
|
|
Amortization of
acquired intangibles
|
4,974
|
|
3,641
|
|
—
|
|
—
|
|
8,615
|
|
Adjusted pretax
income from continuing operations
|
$
|
37,075
|
|
$
|
71,039
|
|
$
|
(30,064)
|
|
$
|
—
|
|
$
|
78,050
|
|
Tax provision (40%
rate)
|
|
|
|
|
|
|
|
|
31,220
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
46,830
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
97,180
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORELOGIC,
INC. RECONCILIATION TO
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
June 30, 2014
|
Net cash provided by
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
293,147
|
|
Purchases of
capitalized data and other intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,446)
|
|
Purchases of property
and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
(60,626)
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
197,075
|
|
Logo - http://photos.prnewswire.com/prnh/20100609/CLLOGO
SOURCE CoreLogic