In the news release, CoreLogic Reports Third Quarter 2014
Financial Results, issued 22-Oct-2014
by CoreLogic over PR Newswire, we are advised by the Company that
in the 2014 Financial Guidance (Continuing Operations) paragraph
the Company has made a correction that reflects adjusted EPS
full-year guidance range. The figure was previously stated as
"$1.35 per share" and is now stated
as "$1.40 per share". The complete,
corrected release follows:
CoreLogic Reports Third Quarter 2014 Financial Results Revenue
Growth and Margin Expansion Driven By Strategic Business
Transformation - Total revenues up 3% to
$367.5 million fueled by 23% growth in Data and
Analytics (D&A) revenues. Technology and Processing Solutions
(TPS) revenues continuing to outperform U.S. mortgage origination
volume trends. - Operating income from continuing operations
increased 27% to
$77.8 million. - Net
income from continuing operations up 15% to
$49.7 million. Diluted EPS from continuing
operations totaled
$0.54, up 20%. -
Adjusted EBITDA increased 6% to
$113.4
million; adjusted EBITDA margin was 31%. - Repurchased 1.48
million common shares;
$62 million
debt repaid. - Asset Management and Processing segment
restructuring completed.
IRVINE, Calif., Oct. 22, 2014 /PRNewswire/ -- CoreLogic
(NYSE:CLGX), a leading global property information, analytics and
data-enabled services provider, today reported financial results
for the quarter ended September 30,
2014.
"CoreLogic delivered excellent results in the third
quarter. Revenue, operating and net income were up as we
continued to expand our D&A footprint and reap the benefits of
our market leadership in TPS. Our strong operating
performance over the past several quarters, despite the ongoing
reset in the U.S. mortgage industry, is a testimony to our
relentless focus on our strategic transformation plan which has
resulted in the expanded market leadership of our data-enabled
business units," said Anand
Nallathambi, President and Chief Executive Officer of
CoreLogic. "As we move forward, we will continue to focus on
aggressively growing our unique data assets, analytics and services
through innovation, technology and operational excellence and
deeper client intimacy."
"We continue to shift our business mix toward data-driven,
subscription based models built around scaled market leading
solutions and services. As a result of this strategy, our
core mortgage operations clearly outperformed market volumes and we
materially expanded and diversified our D&A revenues in the
third quarter," added Frank Martell,
Chief Operating and Financial Officer of CoreLogic. "The
durability of our business model allows us to continue to invest in
product and service innovation and operational improvements and, at
the same time, return significant amounts of capital to our
shareholders and reduce our debt balances."
Third Quarter Financial Highlights
Third quarter revenues totaled $367.5
million, 3% higher than prior-year levels. D&A
revenues increased 23% to $173.6
million compared with prior year driven principally by
growth in insurance, spatial solutions, international and core
property information revenues, which more than offset the
impact of lower mortgage volumes, unfavorable foreign currency
translation and the exit of certain non-core product lines.
TPS revenues fell 10% to $196.3
million year-over-year as the impact of contracting mortgage
volumes (mortgage applications down approximately 30%), lower
project-related document processing and retrieval revenues and the
planned wind-down of a non-core credit reporting service more than
offset the benefit of market share gains including
acquisition-related revenues.
Operating income from continuing operations totaled $77.8 million for the third quarter, a 27%
increase from prior-year levels and a 90% increase from the second
quarter of 2014. Third quarter 2014 operating margin was 21%
compared to 17% in the prior year period. Third quarter
operating income benefited from a gain on the sale of real estate
assets of $13.8 million in connection
with our Technology Transformation Initiative (TTI).
Operating income also benefited from D&A growth and favorable
mix, TPS share gains, lower costs related to the Company's
strategic transformation program and continued cost efficiency
benefits.
Third quarter net income from continuing operations totaled
$49.7 million compared with
$43.4 million in the same 2013 period
and $26.7 million in the second
quarter of 2014. The year-over-year increase of 15% was
driven primarily by D&A growth; TPS share gains and lower
taxes, which more than offset the impact of lower U.S. mortgage
volumes, unfavorable foreign currency translation and higher
interest expense. Diluted EPS from continuing operations
totaled $0.54 for the third quarter
of 2014 compared with $0.45 in the
third quarter of 2013. Third quarter net income and diluted
EPS also benefited from higher non-operating gains compared to 2013
levels. Adjusted diluted EPS totaled $0.49, up from $0.47 in the same 2013 period reflecting the
positive impacts of D&A revenue growth, lower taxes and share
repurchases partially offset by higher interest expense.
Adjusted EBITDA totaled $113.4
million in third quarter 2014 compared with $107.5 million in the same prior year period and
$97.3 million in second quarter
2014. Third quarter 2014 adjusted EBITDA margin was 31%,
compared with 30% in the prior year and 27% in the second quarter
of 2014. The year-over-year increase in adjusted EBITDA was
principally the result of D&A revenue growth and favorable
business mix, lower transformation program costs and continued
productivity. D&A adjusted EBITDA totaled $61.7 million, a 28% increase from 2013, as
higher revenues from insurance and spatial solutions and
international operations more than offset the impact of lower
mortgage loan application volumes, unfavorable currency translation
and the exit of a non-core product line. TPS adjusted EBITDA
decreased 16% to $58.5 million
compared with prior-year levels driven primarily by lower U.S.
mortgage market volumes and the impact of lower project-related and
discretionary spending.
Liquidity and Capital Resources
At September 30, 2014, the Company
had cash and cash equivalents of $127.6
million compared with $134.4
million at December 31,
2013. Total debt as of September 30,
2014 was approximately $1.4
billion, up $571.8 million
from December 31, 2013. The
increase in outstanding debt was primarily the result of the
completion of the acquisition of Marshall & Swift/Boeckh (MSB)
and DataQuick Information Systems (DQ) on March 25, 2014. As of September 30, 2014, the Company had available
capacity on its revolving credit facility under the Credit
Agreement of $405.0 million.
During the third quarter of 2014, the Company repaid
approximately $62 million in term
loan, revolving and other debt obligations. The Company also
repurchased 1.48 million of its common shares for a total of
$40.7 million during the third
quarter. During the first nine months of 2014, the Company
repurchased approximately 2.54 million of its common shares.
Free cash flow (FCF) for the twelve months ended September 30, 2014 totaled $213.0 million, which represented 61% of adjusted
EBITDA. Year-to-date 2014 FCF totaled $148.4 million or 54% 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 nine
months ended September 30, 2014 was
$210.7 million.
Operational Excellence Programs
The Company launched its 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. In the third quarter of 2014, the
Company successfully completed the migration of its Dallas, Texas data center to a Dell Services
operated facility. Third quarter 2014 charges related to the
migration of our data centers in connection with TTI implementation
totaled $2.4 million.
During the fourth quarter of 2013, CoreLogic launched a cost
reduction program and operational initiatives designed to lower
2014 operating expenses by at least $25
million. Third quarter 2014 savings associated with these
programs totaled $8.1 million.
Asset Management and Processing Solutions (AMPS)
During the first quarter of 2014, CoreLogic announced its
intention to divest its AMPS segment as part of the Company's
strategic transformation program. During the third quarter,
CoreLogic completed the sale of its Collateral Solutions and Field
Services business units to Mortgage Contracting Services, LLC
(MCS). The Collateral Solutions and Field Services units
accounted for approximately 72% of AMPS revenues during 2013.
Total consideration, excluding working capital adjustments, for the
sale of the Collateral Solutions and Field Services units included
$25 million at closing and an
additional contingent amount of up to $20
million based on the achievement of certain performance
thresholds during the year following the closing of the
transaction.
The remaining units of the former AMPS segment were integrated
into the Company's TPS segment as ongoing operations. For the
third quarter of 2014, these business lines collectively generated
revenues, operating income from continuing operations and adjusted
EBITDA of approximately $16.3
million, $4.0 million and
$4.3 million, respectively.
2014 Financial Guidance (Continuing Operations)
Based on current business conditions and trends, available
market estimates of fourth quarter of U.S. mortgage origination
volumes and the forecast contributions of the retained AMPS
business units mentioned above, the Company has updated its 2014
guidance ranges as follows: revenues, adjusted EBITDA and adjusted
EPS of $1.39 to $1.41 billion,
$350 to $360 million and $1.27 to $1.40 per share, respectively.
Teleconference/Webcast
CoreLogic management will host a live webcast and conference
call on Thursday, October 23, 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- 877-546-5021 for
U.S./Canada callers or
857-244-7553 for international callers. The Conference ID for the
call is 47271251.
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 80712789.
Additional detail on the Company's third quarter results is
included in the quarterly financial supplement, available on the
Investor Relations page at http://investor.corelogic.com.
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 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 volumes; 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.
CONDENSED
CONSOLIDATED INCOME STATEMENTS
UNAUDITED
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
|
|
September
30,
|
(in thousands,
except per share amounts)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
revenues
|
$
|
367,454
|
|
|
$
|
356,581
|
|
|
$
|
1,059,528
|
|
|
$
|
1,075,879
|
|
Cost of services
(excluding depreciation and amortization shown below)
|
185,168
|
|
|
177,898
|
|
|
564,916
|
|
|
539,796
|
|
Selling, general and
administrative expenses
|
68,099
|
|
|
87,886
|
|
|
255,488
|
|
|
276,257
|
|
Depreciation and
amortization
|
35,765
|
|
|
29,436
|
|
|
100,636
|
|
|
96,697
|
|
Impairment
loss
|
667
|
|
|
—
|
|
|
4,888
|
|
|
1,721
|
|
Total operating
expenses
|
289,699
|
|
|
295,220
|
|
|
925,928
|
|
|
914,471
|
|
Operating
income
|
77,755
|
|
|
61,361
|
|
|
133,600
|
|
|
161,408
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
870
|
|
|
1,040
|
|
|
3,083
|
|
|
2,495
|
|
Interest
expense
|
18,398
|
|
|
12,552
|
|
|
52,547
|
|
|
37,365
|
|
Total interest
expense, net
|
(17,528)
|
|
|
(11,512)
|
|
|
(49,464)
|
|
|
(34,870)
|
|
Gain on investments
and other, net
|
183
|
|
|
7,627
|
|
|
2,825
|
|
|
9,362
|
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
60,410
|
|
|
57,476
|
|
|
86,961
|
|
|
135,900
|
|
Provision for income
taxes
|
14,319
|
|
|
19,765
|
|
|
23,070
|
|
|
50,087
|
|
Income from
continuing operations before equity in earnings of
affiliates
|
46,091
|
|
|
37,711
|
|
|
63,891
|
|
|
85,813
|
|
Equity in earnings of
affiliates, net of tax
|
4,032
|
|
|
5,716
|
|
|
10,289
|
|
|
23,848
|
|
Net income from
continuing operations
|
50,123
|
|
|
43,427
|
|
|
74,180
|
|
|
109,661
|
|
(Loss)/income from
discontinued operations, net of tax
|
(4,856)
|
|
|
5,332
|
|
|
(15,219)
|
|
|
17,935
|
|
Gain/(loss) from sale
of discontinued operations, net of tax
|
476
|
|
|
(5,052)
|
|
|
476
|
|
|
(6,796)
|
|
Net income
|
45,743
|
|
|
43,707
|
|
|
59,437
|
|
|
120,800
|
|
Less: Net income
attributable to noncontrolling interests
|
404
|
|
|
45
|
|
|
899
|
|
|
19
|
|
Net income
attributable to CoreLogic
|
$
|
45,339
|
|
|
$
|
43,662
|
|
|
$
|
58,538
|
|
|
$
|
120,781
|
|
Amounts attributable
to CoreLogic stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
49,719
|
|
|
$
|
43,382
|
|
|
$
|
73,281
|
|
|
$
|
109,642
|
|
(Loss)/income from
discontinued operations, net of tax
|
(4,856)
|
|
|
5,332
|
|
|
(15,219)
|
|
|
17,935
|
|
Gain/(loss) from sale
of discontinued operations, net of tax
|
476
|
|
|
(5,052)
|
|
|
476
|
|
|
(6,796)
|
|
Net income
attributable to CoreLogic
|
$
|
45,339
|
|
|
$
|
43,662
|
|
|
$
|
58,538
|
|
|
$
|
120,781
|
|
Basic income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
0.55
|
|
|
$
|
0.46
|
|
|
$
|
0.80
|
|
|
$
|
1.14
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.05)
|
|
|
0.06
|
|
|
(0.17)
|
|
|
0.19
|
|
Gain/(loss) from sale
of discontinued operations, net of tax
|
0.01
|
|
|
(0.05)
|
|
|
0.01
|
|
|
(0.07)
|
|
Net income
attributable to CoreLogic
|
$
|
0.51
|
|
|
$
|
0.47
|
|
|
$
|
0.64
|
|
|
$
|
1.26
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
0.54
|
|
|
$
|
0.45
|
|
|
$
|
0.79
|
|
|
$
|
1.12
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.05)
|
|
|
0.06
|
|
|
(0.16)
|
|
|
0.18
|
|
Gain/(loss) from sale
of discontinued operations, net of tax
|
0.01
|
|
|
(0.05)
|
|
|
0.01
|
|
|
(0.07)
|
|
Net income
attributable to CoreLogic
|
$
|
0.50
|
|
|
$
|
0.46
|
|
|
$
|
0.64
|
|
|
$
|
1.23
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
90,518
|
|
|
94,773
|
|
|
91,234
|
|
|
95,802
|
|
Diluted
|
91,987
|
|
|
96,793
|
|
|
92,833
|
|
|
97,672
|
|
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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
UNAUDITED
|
|
(in thousands,
except par value)
|
September
30,
|
|
December
31,
|
Assets
|
2014
|
|
2013
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
127,618
|
|
|
$
|
134,419
|
|
Marketable
securities
|
21,828
|
|
|
22,220
|
|
Accounts receivable
(less allowance for doubtful accounts of $11,459 and $13,045 as of
September 30, 2014 and December 31, 2013, respectively)
|
223,697
|
|
|
215,020
|
|
Prepaid expenses and
other current assets
|
51,976
|
|
|
50,829
|
|
Income tax
receivable
|
—
|
|
|
13,516
|
|
Deferred income tax
assets, current
|
100,688
|
|
|
86,487
|
|
Assets of
discontinued operations
|
5,167
|
|
|
38,926
|
|
Total current
assets
|
530,974
|
|
|
561,417
|
|
Property and
equipment, net
|
365,750
|
|
|
197,542
|
|
Goodwill,
net
|
1,779,391
|
|
|
1,468,290
|
|
Other intangible
assets, net
|
283,643
|
|
|
175,808
|
|
Capitalized data and
database costs, net
|
336,666
|
|
|
330,188
|
|
Investment in
affiliates, net
|
103,432
|
|
|
95,343
|
|
Restricted
cash
|
13,493
|
|
|
12,050
|
|
Other
assets
|
161,565
|
|
|
162,493
|
|
Total
assets
|
$
|
3,574,914
|
|
|
$
|
3,003,131
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
148,215
|
|
|
$
|
156,937
|
|
Accrued salaries and
benefits
|
75,004
|
|
|
104,781
|
|
Deferred revenue,
current
|
245,520
|
|
|
223,603
|
|
Income taxes
payable
|
44,313
|
|
|
—
|
|
Current portion of
long-term debt
|
21,927
|
|
|
28,154
|
|
Liabilities of
discontinued operations
|
23,480
|
|
|
20,616
|
|
Total current
liabilities
|
558,459
|
|
|
534,091
|
|
Long-term debt, net
of current
|
1,389,807
|
|
|
811,776
|
|
Deferred revenue, net
of current
|
379,390
|
|
|
377,855
|
|
Deferred income tax
liabilities, long term
|
68,538
|
|
|
76,969
|
|
Other
liabilities
|
131,025
|
|
|
147,865
|
|
Total
liabilities
|
2,527,219
|
|
|
1,948,556
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
11,075
|
|
|
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; 89,732 and 91,254
shares issued and outstanding as of September 30, 2014 and December
31, 2013, respectively
|
1
|
|
|
1
|
|
Additional paid-in
capital
|
612,154
|
|
|
672,165
|
|
Retained
earnings
|
484,359
|
|
|
425,796
|
|
Accumulated other
comprehensive loss
|
(59,894)
|
|
|
(53,589)
|
|
Total
equity
|
1,036,620
|
|
|
1,044,373
|
|
Total liabilities and
equity
|
$
|
3,574,914
|
|
|
$
|
3,003,131
|
|
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.
CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS
UNAUDITED
|
|
|
For the Nine
Months Ended
|
|
September
30,
|
(in
thousands)
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
59,437
|
|
|
$
|
120,800
|
|
Less: (Loss)/income
from discontinued operations, net of tax
|
(15,219)
|
|
|
17,935
|
|
Less: Gain/(loss)
from sale of discontinued operations, net of tax
|
476
|
|
|
(6,796)
|
|
Net income from
continuing operations
|
74,180
|
|
|
109,661
|
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
100,636
|
|
|
96,697
|
|
Impairment
loss
|
4,888
|
|
|
1,721
|
|
Provision for bad
debt and claim losses
|
10,254
|
|
|
10,058
|
|
Share-based
compensation
|
22,077
|
|
|
20,688
|
|
Excess tax benefit
related to stock options
|
(6,352)
|
|
|
(2,895)
|
|
Equity in earnings of
affiliates, net of taxes
|
(10,289)
|
|
|
(23,848)
|
|
Gain on sale of
property and equipment
|
(13,858)
|
|
|
—
|
|
Loss on early
extinguishment of debt
|
763
|
|
|
—
|
|
Deferred income
tax
|
11,172
|
|
|
3,875
|
|
Gain on investments
and other, net
|
(2,825)
|
|
|
(9,362)
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
6,515
|
|
|
(18,818)
|
|
Prepaid expenses and
other current assets
|
1,099
|
|
|
(2,696)
|
|
Accounts payable and
accrued expenses
|
(50,357)
|
|
|
(15,186)
|
|
Deferred
revenue
|
(3,590)
|
|
|
43,616
|
|
Income
taxes
|
48,854
|
|
|
10,644
|
|
Dividends received
from investments in affiliates
|
32,496
|
|
|
30,062
|
|
Other assets and
other liabilities
|
(14,920)
|
|
|
(16,696)
|
|
Net cash provided by
operating activities - continuing operations
|
210,743
|
|
|
237,521
|
|
Net cash (used
by)/provided by operating activities - discontinued
operations
|
(2,104)
|
|
|
23,569
|
|
Total cash provided
by operating activities
|
$
|
208,639
|
|
|
$
|
261,090
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of
capitalized data and other intangible assets
|
$
|
(25,207)
|
|
|
$
|
(28,795)
|
|
Purchases of property
and equipment
|
(37,122)
|
|
|
(51,667)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(672,336)
|
|
|
(70,904)
|
|
Purchases of
investments
|
—
|
|
|
(2,351)
|
|
Cash received from
sale of discontinued operations
|
25,525
|
|
|
2,263
|
|
Proceeds from sale of
property and equipment
|
13,937
|
|
|
—
|
|
Change in restricted
cash
|
(1,443)
|
|
|
5,728
|
|
Net cash used in
investing activities - continuing operations
|
(696,646)
|
|
|
(145,726)
|
|
Net cash provided by
investing activities - discontinued operations
|
1,536
|
|
|
1,863
|
|
Total cash used in
investing activities
|
$
|
(695,110)
|
|
|
$
|
(143,863)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
long-term debt
|
$
|
690,017
|
|
|
$
|
1,075
|
|
Debt issuance
costs
|
(14,042)
|
|
|
—
|
|
Repayment of
long-term debt
|
(118,836)
|
|
|
(4,516)
|
|
Proceeds from
issuance of stock related to stock options and employee benefit
plans
|
5,736
|
|
|
11,662
|
|
Minimum tax
withholding paid on behalf of employees for restricted stock
units
|
(15,247)
|
|
|
(6,893)
|
|
Shares repurchased
and retired
|
(72,781)
|
|
|
(133,565)
|
|
Excess tax benefit
related to stock options
|
6,352
|
|
|
2,895
|
|
Net cash provided
by/(used in) financing activities - continuing
operations
|
481,199
|
|
|
(129,342)
|
|
Net cash provided by
financing activities - discontinued operations
|
—
|
|
|
—
|
|
Total cash provided
by/(used in) financing activities
|
$
|
481,199
|
|
|
$
|
(129,342)
|
|
Effect of exchange
rate on cash
|
(144)
|
|
|
(1,341)
|
|
Net decrease in cash
and cash equivalents
|
(5,416)
|
|
|
(13,456)
|
|
Cash and cash
equivalents at beginning of period
|
134,419
|
|
|
149,567
|
|
Less: Change in cash
and cash equivalents - discontinued operations
|
(568)
|
|
|
25,432
|
|
Plus: Cash swept from
discontinued operations
|
(1,953)
|
|
|
25,788
|
|
Cash and cash
equivalents at end of period
|
$
|
127,618
|
|
|
$
|
136,467
|
|
|
|
|
|
|
|
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 September 30, 2014
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
33,021
|
|
$
|
44,534
|
|
$
|
(17,145)
|
|
$
|
—
|
|
$
|
60,410
|
|
Pretax equity in
earnings
|
230
|
|
6,312
|
|
(12)
|
|
—
|
|
6,530
|
|
Depreciation &
amortization
|
26,250
|
|
6,571
|
|
2,944
|
|
—
|
|
35,765
|
|
Total interest
expense
|
(84)
|
|
74
|
|
17,538
|
|
—
|
|
17,528
|
|
Stock-based
compensation
|
1,578
|
|
1,057
|
|
3,682
|
|
—
|
|
6,317
|
|
Impairment
Loss
|
667
|
|
—
|
|
—
|
|
—
|
|
667
|
|
Non-operating
investment (gains)/losses
|
—
|
|
|
|
(13,838)
|
|
—
|
|
(13,838)
|
|
Efficiency
investments
|
—
|
|
—
|
|
142
|
|
—
|
|
142
|
|
Transaction
Costs
|
—
|
|
—
|
|
(109)
|
|
—
|
|
(109)
|
|
Adjusted
EBITDA
|
$
|
61,662
|
|
$
|
58,548
|
|
$
|
(6,798)
|
|
$
|
—
|
|
$
|
113,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30, 2013
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income from
continuing operations before equity in earnings of affiliates and
income taxes
|
$
|
36,136
|
|
$
|
50,525
|
|
$
|
(29,185)
|
|
$
|
—
|
|
$
|
57,476
|
|
Pretax equity in
earnings
|
456
|
|
8,786
|
|
16
|
|
—
|
|
9,258
|
|
Depreciation &
amortization
|
18,659
|
|
7,985
|
|
2,792
|
|
—
|
|
29,436
|
|
Total interest
expense
|
(168)
|
|
136
|
|
11,544
|
|
—
|
|
11,512
|
|
Stock-based
compensation
|
(383)
|
|
2,128
|
|
2,117
|
|
—
|
|
3,862
|
|
Non-operating
investment (gains)/losses
|
(6,638)
|
|
—
|
|
—
|
|
—
|
|
(6,638)
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,079
|
|
—
|
|
1,079
|
|
Transaction
Costs
|
—
|
|
—
|
|
1,468
|
|
—
|
|
1,468
|
|
Adjusted
EBITDA
|
$
|
48,062
|
|
$
|
69,560
|
|
$
|
(10,169)
|
|
$
|
—
|
|
$
|
107,453
|
|
|
CORELOGIC,
INC.
RECONCILIATION OF
ADJUSTED DILUTED EPS
|
|
|
For the Three
Months Ended September 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
|
$
|
33,021
|
|
$
|
44,534
|
|
$
|
(17,145)
|
|
$
|
—
|
|
$
|
60,410
|
|
Pretax equity in
earnings
|
230
|
|
6,312
|
|
(12)
|
|
—
|
|
6,530
|
|
Stock-based
compensation
|
1,578
|
|
1,057
|
|
3,682
|
|
—
|
|
6,317
|
|
Non-operating
investment (gains)/losses
|
—
|
|
---
|
|
(13,838)
|
|
—
|
|
(13,838)
|
|
Efficiency
investments
|
—
|
|
—
|
|
142
|
|
—
|
|
142
|
|
Transaction
costs
|
—
|
|
—
|
|
(109)
|
|
—
|
|
(109)
|
|
Impairment
Loss
|
667
|
|
—
|
|
—
|
|
—
|
|
667
|
|
Amortization of
acquired intangibles
|
7,475
|
|
2,671
|
|
—
|
|
—
|
|
10,146
|
|
Depreciation of
certain acquired proprietary technology included in property and
equipment
|
2,880
|
|
—
|
|
—
|
|
—
|
|
2,880
|
|
Adjusted pretax
income from continuing operations
|
$
|
45,851
|
|
$
|
54,574
|
|
$
|
(27,280)
|
|
$
|
—
|
|
$
|
73,145
|
|
Tax provision (38%
rate)
|
|
|
|
|
|
|
|
|
27,795
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
404
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
44,946
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
91,987
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 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
|
$
|
36,136
|
|
$
|
50,525
|
|
$
|
(29,185)
|
|
$
|
—
|
|
$
|
57,476
|
|
Pretax equity in
earnings
|
456
|
|
8,786
|
|
16
|
|
—
|
|
9,258
|
|
Stock-based
compensation
|
(383)
|
|
2,128
|
|
2,117
|
|
—
|
|
3,862
|
|
Non-operating
investment (gains)/losses
|
(6,638)
|
|
—
|
|
—
|
|
—
|
|
(6,638)
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,079
|
|
—
|
|
1,079
|
|
Spin & legacy
corporate costs
|
—
|
|
—
|
|
1,468
|
|
—
|
|
1,468
|
|
Accelerated
depreciation on TTI
|
—
|
|
—
|
|
2
|
|
—
|
|
2
|
|
Amortization of
acquired intangibles
|
4,826
|
|
4,268
|
|
—
|
|
—
|
|
9,094
|
|
Adjusted pretax
income from continuing operations
|
$
|
34,397
|
|
$
|
65,707
|
|
$
|
(24,503)
|
|
$
|
—
|
|
$
|
75,601
|
|
Tax provision (40%
rate)
|
|
|
|
|
|
|
|
|
30,240
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
45
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
45,316
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
96,793
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORELOGIC,
INC.
RECONCILIATION TO
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
September 30, 2014
|
|
Net cash provided by
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
$
|
301,444
|
|
Purchases of
capitalized data and other intangible assets
|
|
|
|
|
|
|
|
|
|
(34,253)
|
|
Purchases of property
and equipment
|
|
|
|
|
|
|
|
|
|
(54,200)
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
$
|
212,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo - http://photos.prnewswire.com/prnh/20140827/140699
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/corelogic-reports-third-quarter-2014-financial-results-824504959.html
SOURCE CoreLogic