Lender Processing Services Reports Fourth Quarter and Full Year 2012 Earnings

Fourth quarter adjusted earnings per share of $0.74 and free cash flow of $92 million

Full year adjusted earnings per share of $2.80 and free cash flow of $345 million

Leading technology-driven solutions enable mortgage industry to meet new requirements

07 Feb, 2013, 17:01 ET from Lender Processing Services, Inc.

JACKSONVILLE, Fla., Feb. 7, 2013 /PRNewswire/ -- Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced fourth quarter 2012 GAAP net earnings of $2.8 million, or $0.03 per diluted share, compared to a net loss of $21.2 million, or $0.25 per diluted share in fourth quarter 2011, and full year 2012 GAAP net earnings of $70.4 million, or $0.83 per diluted share, compared to net earnings of $96.5 million, or $1.13 per diluted share in 2011. 

(Logo: http://photos.prnewswire.com/prnh/20120802/FL50731LOGO)

"LPS enters 2013 a stronger company that is increasingly well positioned to enhance the mortgage value chain and deliver innovative technology, data and expertise to our clients," said Hugh Harris, president and chief executive officer of LPS.  "The rapidly evolving mortgage landscape continues to create new requirements for our clients that result in significant long-term growth opportunities for LPS." 

"We are extremely pleased with the recent conclusion of many of the company's legacy legal and regulatory matters which allows us to focus more of our time and energy on growth and innovation," added Harris.  "LPS' technology leadership, scale and commitment to compliance excellence provide significant strategic advantages.  We are confident these unique capabilities, together with our company's strong cash flow and disciplined capital allocation, will create significant long-term value for our stakeholders."    

Fourth Quarter 2012

  • Technology, Data & Analytics (TD&A) revenue increased 8% over the prior year fueled by growth in all sub-segments
  • Origination Services revenue increased 15% from the prior year driven by strong refinance volume and market share gains
  • Adjusted EBITDA margin increased more than one percentage point over the prior year to 27%
  • Adjusted earnings were $63 million, or $0.74 per diluted share, excluding a charge totaling $0.69 per diluted share, and reflecting the add-back for purchase accounting amortization 
  • Adjusted free cash flow of $92 million or $1.08 per diluted share
  • Completed debt refinancing to lower cost of capital and further strengthen the balance sheet

Full Year 2012

  • Record TD&A revenue increased 8% to $737 million, compared to the prior year
  • Record Origination Services revenue of $625 million, up 20% from the prior year
  • Adjusted EBITDA margin increased more than one percentage point to 27%, driven by growth in high return businesses
  • Adjusted earnings of $237 million, or $2.80 per diluted share, excluding a charge totaling $1.88 per diluted share, and reflecting the add-back for purchase accounting amortization 
  • Adjusted free cash flow of $345 million or $4.07 per diluted share

Delivering Innovative Technology, Data and Expertise

  • Increased Servicing Technology leadership – mortgage loans on the system climbed 3% from the prior year including 5 new client implementations  
  • Invested more than $200 million in technology and data solutions in the past two years to enable customers to meet evolving industry requirements
  •  Implementing 20 new clients during 2013 on to expanded Origination Technology platforms   

"Our strong financial performance in 2012 clearly demonstrates the strength of LPS' business model and our company's ability to thrive in a rapidly changing market," said Tom Schilling, chief financial officer. "Since our spin-off in 2008, LPS has consistently delivered annual adjusted free cash flow exceeding $340 million.  This success enables ongoing investment in growth initiatives to further strengthen our leadership in TD&A.  We continue to enhance Transaction Services, which delivers high value, regulatory compliant solutions to the nation's largest mortgage lenders.  In 2012, we significantly strengthened LPS' financial position, which is a key competitive advantage, while continuing to improve the risk/return profile of Default Services." 

(in millions, except EPS)

Year-Over-Year

Full Year

GAAP

Q412

Q411

% Var

FY12

FY11

% Var

Revenue

$    508.4

$    533.8

-4.8%

$  2,060.4

$  2,090.1

-1.4%

Q4 Discontinued Operations

7.4

21.8

-66.1%

62.7

106.7

-41.2%

Revenue from Continuing Operations

$   501.0

$   512.0

-2.1%

$ 1,997.7

$ 1,983.4

0.7%

Operating Income

51.9

3.4

nm

232.9

278.7

-16.4%

Net Earnings (Loss)

2.8

(21.2)

nm

70.4

96.5

-27.1%

EPS Diluted

$       0.03

$    (0.25)

nm

$        0.83

$        1.13

-26.5%

Adjusted Results

Q412

Q411

% Var

FY12

FY11

% Var

Revenue

$   501.0

$   512.0

-2.1%

$ 1,997.7

$ 1,983.4

0.7%

Operating Income

110.3

109.6

0.7%

435.8

414.1

5.2%

Adjusted Net Earnings

62.8

60.4

3.9%

236.8

228.9

3.4%

EPS Diluted

$       0.74

$       0.72

2.8%

$        2.80

$        2.68

4.5%

Fourth quarter 2012 results are adjusted for charges totaling $0.69 per diluted share, including $0.33 per share for estimated legal and regulatory contingencies, $0.18 per share related to the refinancing of credit facilities, $0.07 per share related to income tax adjustments, $0.03 per share related to the disposition of non-core businesses, and $0.08 per share for other non-recurring charges.

Consolidated Fourth Quarter and Full Year Performance

Fourth quarter 2012 revenue was $501.0 million, a decrease of 2.1% compared to the prior year quarter, due to lower Default Services revenue that resulted from a drop in industry-wide foreclosure starts, partially offset by higher revenue in TD&A and Origination Services.  Fourth quarter 2012 operating income on a GAAP basis was $51.9 million and on an adjusted basis was $110.3 million, an increase of 0.7% from the comparable period in 2011 primarily driven by higher contributions from Origination Services. 

Full year 2012 revenue was $2.0 billion, a 0.7% increase from the prior year, due to increased revenue from Origination Services and TD&A, partially offset by lower revenue in Default Services.  Full year 2012 operating income on a GAAP basis was $232.9 million and on an adjusted basis was $435.8 million, an increase of 5.2% from 2011 primarily driven by higher contributions from Origination Services and TD&A, partially offset by lower contributions from Default Services.

Net cash provided by operating activities for the full year 2012 was $434.5 million compared to $477.9 million in 2011, and adjusted free cash flow was $345.1 million compared to $381.2 million in the prior year.   The decrease in adjusted free cash flow resulted primarily from higher capital expenditures and changes in working capital.  Fourth quarter adjusted free cash flow was $92.3 million, compared to $121.5 million in the prior year period.  Adjusted free cash flow is defined as net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software.

Technology, Data and Analytics (TD&A)

Revenue for the fourth quarter increased 7.8% from the prior year to $189.3 million driven by growth in all lines of business.  Revenue from Servicing Technology increased 7.2% primarily due to growth in loans and revenue per loan; Origination Technology increased 20.3% due to higher industry refinance volumes; Default Technology increased 3.0% as a result of annualized market share gains achieved in 2011 that were partially offset by lower industry-wide foreclosure volumes; and Data and Analytics increased 6.3%.  Adjusted operating income was $54.8 million compared to $57.6 million in the prior year period due to higher expenses related to growth initiatives and an increase in depreciation.  Adjusted operating margin was 28.9%, down from 32.8% in the prior year quarter due to investment in growth initiatives including origination technology and data and analytics.

Transaction Services  

Revenue for the fourth quarter decreased 7.7% from the prior year period to $311.7 million as a result of a 26.0% decrease in Default Services revenue, which was partially offset by a 14.8% increase in Origination Services revenue.  Default Services revenue and operating income decreased as a result of lower industry-wide foreclosure activity and strategic actions to reduce risk and enhance returns.  Origination Services revenue and operating income increased as a result of higher industry refinance volume.  Adjusted operating income was $67.4 million down from $70.7 million in the prior year period due to lower Default Services revenue which was partially offset by higher Origination Services title, escrow and flood revenue.  Adjusted operating margin increased to 21.6% from 20.9% in the prior year period.

Corporate and Other

Net corporate expenses in the fourth quarter of 2012 were $66.0 million compared to $117.2 million in the prior year period, which reflects increases to the legal and regulatory reserve of $47.9 million and $78.5 million, respectively.  Adjusting for these and other non-recurring items, corporate expenses decreased to $11.9 million from $18.7 million in the prior year period as a result of 2011 legal expenses being charged to expense prior to establishing a contingency reserve for the company's legal and regulatory matters.             

Outlook

Based on the current environment, the company expects first quarter 2013 revenue to be in the range of $460 million to $480 million and adjusted net earnings per diluted share from continuing operations to be in the range of $0.63 to $0.67.  

Earnings Conference Call and Webcast

LPS will host a conference call tomorrow at 10:00 a.m. ET with a live webcast on the Investor Relations section of its website at www.lpsvcs.com.  Earnings information, including this press release and our financial results presentation, is available on the website.  A replay of the webcast will be available on the website shortly after the call where it will be archived for one month.  A replay of the call will be available until February 15, 2013, by dialing 888-203-1112 (access code: 3830545).

About Lender Processing Services

LPS (NYSE: LPS) delivers comprehensive technology solutions and services, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers and investors. As a proven and trusted partner with deep client relationships, LPS offers the only end-to-end suite of solutions that provides major U.S. banks and many federal government agencies the technology and data needed to support mortgage lending and servicing operations, meet unique regulatory and compliance requirements and mitigate risk.  These integrated solutions support origination, servicing, portfolio retention and default servicing. LPS' servicing solutions include MSP, the industry's leading loan-servicing platform, which is used to service approximately 50 percent of all U.S. mortgages by dollar volume. The company also provides proprietary data and analytics for the mortgage, real estate and capital markets industries. Lender Processing Services is a Fortune 1000 company headquartered in Jacksonville, Fla., employing approximately 8,000 professionals. For more information, please visit www.lpsvcs.com.

Use of Non-GAAP Financial Information

U.S. Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting.  GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.  In addition to reporting financial results in accordance with GAAP, LPS reports several non-GAAP measures, including "EBITDA" (GAAP operating income plus depreciation and amortization); "EBITDA, as adjusted" (EBITDA adjusted for the impact of certain non-recurring adjustments, if applicable); "EBIT, as adjusted" or "adjusted operating income" (GAAP operating income adjusted for the impact of certain non-recurring adjustments, if applicable); "adjusted net earnings" (GAAP net earnings adjusted for the impact of certain non-recurring adjustments, if applicable, plus the after-tax purchase price amortization of intangible assets added through acquisitions); "adjusted net earnings per diluted share" or "adjusted EPS per diluted share" (adjusted net earnings divided by diluted weighted average shares); and "adjusted free cash flow" (net cash provided by operating activities less additions to property, equipment and computer software, as well as non-recurring adjustments, if applicable). LPS provides these measures because it believes that they are helpful to investors in comparing year-over-year performance in light of certain non-recurring and other charges, and to better understand our financial performance, competitive position and future prospects.  Non-GAAP measures should be considered in conjunction with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures.  A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.

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 facts, including statements about our 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. We undertake 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: our ability to adapt our services to changes in technology or the marketplace; the impact of adverse changes in the level of real estate activity (including among others, loan originations and foreclosures) on demand for certain of our services; our ability to maintain and grow our relationships with our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state enforcement proceedings, inquiries and examinations currently underway or that may be commenced in the future with respect to our default management operations, and with civil litigation related to these matters; the impact of continued delays in the foreclosure process on the timing and collectability of our fees for certain of our services; changes to the laws, rules and regulations that regulate our businesses as a result of the current economic and financial environment; changes in general economic, business and political conditions, including changes in the financial markets; the impact of any potential defects, development delays, installation difficulties or system failures on our business and reputation; risks associated with protecting information security and privacy; and other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.

 

Exhibit A

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

Three months ended December 31,

Year ended December 31,

2012

2011

2012

2011

(In thousands, except per share data)

Revenue

$        501,029

$         512,033

$       1,997,651

$       1,983,433

Expenses:

Operating expenses

365,557

378,840

1,465,095

1,480,371

Depreciation and amortization

25,136

23,600

96,744

88,942

Legal and regulatory charges

47,941

78,484

192,417

78,484

Exit costs, impairments and other charges

10,460

27,714

10,460

56,912

Total expenses

449,094

508,638

1,764,716

1,704,709

Operating income

51,935

3,395

232,935

278,724

Other income (expense):

Interest income

497

387

1,862

1,451

Interest expense

(39,039)

(16,622)

(88,008)

(67,583)

Other income (expense), net

21

(8)

194

(181)

Total other income (expense)

(38,521)

(16,243)

(85,952)

(66,313)

Earnings (loss) from continuing operations before income taxes

13,414

(12,848)

146,983

212,411

Provision (benefit) for income taxes

7,686

(7,307)

67,546

77,167

Net earnings (loss) from continuing operations

5,728

(5,541)

79,437

135,244

Loss from discontinued operations, net of tax

(2,914)

(15,660)

(9,078)

(38,701)

Net earnings (loss)

$            2,814

$          (21,201)

$           70,359

$           96,543

Net earnings (loss) per share - diluted from continuing operations

$              0.06

$              (0.06)

$               0.93

$               1.58

Net loss per share - diluted from discontinued operations

(0.03)

(0.19)

(0.10)

(0.45)

Net earnings (loss) per share - diluted

$              0.03

$              (0.25)

$               0.83

$               1.13

Weighted average shares outstanding - diluted

85,106

84,430

84,857

85,685

 

Exhibit B

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

December 31,

2012

2011

(In thousands)

Assets

Current assets:

Cash and cash equivalents

$        236,241

$        77,355

Trade receivables, net of allowance for doubtful accounts

274,783

345,048

Other receivables

3,800

1,423

Prepaid expenses and other current assets

38,194

33,004

Deferred income taxes

127,742

74,006

Total current assets

680,760

530,836

Property and equipment, net

126,633

121,245

Computer software, net

245,271

228,882

Other intangible assets, net

23,670

39,140

Goodwill

1,109,304

1,132,828

Other non-current assets

260,196

192,484

Total assets

$     2,445,834

$   2,245,415

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt

$                -

$        39,310

Trade accounts payable

38,901

43,105

Accrued salaries and benefits

107,984

64,383

Legal and regulatory accrual

223,149

78,483

Other accrued liabilities

169,458

168,627

Deferred revenues

58,868

64,078

Total current liabilities

598,360

457,986

Deferred revenues

24,987

34,737

Deferred income taxes, net

174,303

122,755

Long-term debt, net of current portion

1,068,125

1,109,850

Other non-current liabilities

37,163

32,099

Total liabilities

1,902,938

1,757,427

Stockholders' equity:

Preferred stock $0.0001 par value; 50 million shares authorized, none

-

-

issued at December 31, 2012 and 2011

Common stock $0.0001 par value; 500 million shares authorized, 97.4 million

10

10

shares issued at December 31, 2012 and 2011

Additional paid-in capital

250,016

250,533

Retained earnings

694,148

658,146

Accumulated other comprehensive loss

(3,079)

(1,783)

Treasury stock at cost; 12.5 million and 13.0 million shares at

December 31, 2012 and 2011, respectively

(398,199)

(418,918)

Total stockholders' equity

542,896

487,988

Total liabilities and stockholders' equity

$     2,445,834

$   2,245,415

 

 

 

Exhibit C

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Year ended December 31,

2012

2011

(In thousands)

Cash flows from operating activities:

Net earnings

$          70,359

$          96,543

Adjustments to reconcile net earnings to net 

cash provided by operating activities:

Depreciation and amortization

98,778

98,828

Amortization of debt issuance costs

12,250

10,017

Asset impairment charges

6,603

71,995

(Gain) loss on sale of discontinued operations

(20,207)

849

Deferred income taxes, net

(3,654)

(4,761)

Stock-based compensation cost

25,749

41,709

Income tax effect of equity compensation

(891)

873

Changes in assets and liabilities, net of effects of acquisitions:

Trade receivables

62,571

72,446

Other receivables

(896)

3,303

Prepaid expenses and other assets

(27,168)

(6,274)

Deferred revenues

18,054

3,975

Accounts payable, accrued liabilities and other liabilities

192,914

88,356

Net cash provided by operating activities

434,462

477,859

Cash flows from investing activities:

Additions to property and equipment

(38,905)

(32,768)

Additions to capitalized software

(74,423)

(72,111)

Purchases of investments

(24,533)

(25,211)

Proceeds from sale of investments

5,917

3,702

Acquisition of title plants and property records data

(44,766)

(23,967)

Acquisitions, net of cash acquired

(12,250)

(9,802)

Proceeds from sales of discontinued operations, net of cash distributed

42,628

4,451

Net cash used in investing activities

(146,332)

(155,706)

Cash flows from financing activities:

Borrowings

600,000

1,005,000

Debt service payments

(318,957)

(1,100,242)

Exercise of stock options and restricted stock vesting

(2,681)

(2,662)

Income tax effect of equity compensation

891

(873)

Dividends paid

(33,875)

(34,446)

Debt issuance costs paid

(10,622)

(22,059)

Treasury stock repurchases

-

(136,878)

Bond repurchases

(362,000)

(4,925)

Payment of contingent consideration related to acquisitions

(2,000)

-

Net cash used in financing activities

(129,244)

(297,085)

Net increase in cash and cash equivalents

158,886

25,068

Cash and cash equivalents, beginning of year

77,355

52,287

Cash and cash equivalents, end of year

$        236,241

$          77,355

Supplemental disclosures of cash flow information:

Cash paid for interest

$          68,827

$          56,975

Cash paid for taxes

$          74,704

$          56,538

 

Exhibit D

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED

(In thousands)

CALENDAR YEAR

QUARTER(1)

2012

2011

Q4-2012

Q3-2012

Q2-2012

Q1-2012

Q4-2011

Q3-2011

Q2-2011

Q1-2011

1.

Revenue - Continuing Operations

Technology, Data and Analytics:

Technology

$   677,900

$   621,585

$  174,110

$  173,985

$  168,515

$161,290

$161,252

$156,414

$152,676

$151,243

Servicing Technology

446,025

421,352

114,818

111,572

111,284

108,351

107,103

107,273

103,676

103,300

Default Technology

136,552

120,288

34,762

36,163

34,051

31,576

33,752

28,185

29,201

29,150

Origination Technology

95,323

79,945

24,530

26,250

23,180

21,363

20,397

20,956

19,799

18,793

Data and Analytics

59,005

58,014

15,202

15,009

14,767

14,027

14,297

13,920

15,161

14,636

Total

736,905

679,599

189,312

188,994

183,282

175,317

175,549

170,334

167,837

165,879

Transaction Services:

Origination Services

625,482

519,438

173,934

154,057

150,741

146,750

151,527

133,099

105,856

128,956

Default Services

637,256

790,467

137,783

154,394

179,618

165,461

186,249

192,675

198,273

213,270

Total

1,262,738

1,309,905

311,717

308,451

330,359

312,211

337,776

325,774

304,129

342,226

Corporate

(1,992)

(6,071)

-

6

(264)

(1,734)

(1,292)

(1,796)

(1,513)

(1,470)

Total Revenue

$1,997,651

$1,983,433

$  501,029

$  497,451

$  513,377

$485,794

$512,033

$494,312

$470,453

$506,635

Revenue Growth from Prior Year Period

Technology, Data and Analytics:

Technology

9.1%

3.5%

8.0%

11.2%

10.4%

6.6%

4.6%

0.1%

2.7%

6.9%

Servicing Technology

5.9%

3.9%

7.2%

4.0%

7.3%

4.9%

5.8%

4.0%

0.7%

5.3%

Default Technology

13.5%

0.8%

3.0%

28.3%

16.6%

8.3%

1.9%

-14.7%

15.1%

5.0%

Origination Technology

19.2%

5.5%

20.3%

25.3%

17.1%

13.7%

3.4%

4.7%

-2.7%

20.2%

Data and Analytics

1.7%

-11.0%

6.3%

7.8%

-2.6%

-4.2%

-16.6%

-11.3%

-5.3%

-10.6%

Total

8.4%

2.1%

7.8%

11.0%

9.2%

5.7%

2.5%

-0.9%

1.9%

5.1%

Transaction Services:

Origination Services

20.4%

-14.2%

14.8%

15.7%

42.4%

13.8%

-15.5%

-14.8%

-19.5%

-7.0%

Default Services

-19.4%

-15.3%

-26.0%

-19.9%

-9.4%

-22.4%

-19.1%

-19.4%

-15.3%

-7.1%

Total

-3.6%

-14.9%

-7.7%

-5.3%

8.6%

-8.8%

-17.5%

-17.6%

-16.8%

-7.0%

Corporate

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

Total Revenue

0.7%

-9.7%

-2.1%

0.6%

9.1%

-4.1%

-11.6%

-12.6%

-11.0%

-3.3%

Revenue Growth from Sequential Period

Technology, Data and Analytics:

Technology

9.1%

3.5%

0.1%

3.2%

4.5%

0.0%

3.1%

2.4%

0.9%

-1.9%

Servicing Technology

5.9%

3.9%

2.9%

0.3%

2.7%

1.2%

-0.2%

3.5%

0.4%

2.0%

Default Technology

13.5%

0.8%

-3.9%

6.2%

7.8%

-6.4%

19.8%

-3.5%

0.2%

-12.0%

Origination Technology

19.2%

5.5%

-6.6%

13.2%

8.5%

4.7%

-2.7%

5.8%

5.4%

-4.8%

Data and Analytics

1.7%

-11.0%

1.3%

1.6%

5.3%

-1.9%

2.7%

-8.2%

3.6%

-14.6%

Total

8.4%

2.1%

0.2%

3.1%

4.5%

-0.1%

3.1%

1.5%

1.2%

-3.2%

Transaction Services:

Origination Services

20.4%

-14.2%

12.9%

2.2%

2.7%

-3.2%

13.8%

25.7%

-17.9%

-28.1%

Default Services

-19.4%

-15.3%

-10.8%

-14.0%

8.6%

-11.2%

-3.3%

-2.8%

-7.0%

-7.3%

Total

-3.6%

-14.9%

1.1%

-6.6%

5.8%

-7.6%

3.7%

7.1%

-11.1%

-16.4%

Corporate

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

n/m

Total Revenue

0.7%

-9.7%

0.7%

-3.1%

5.7%

-5.1%

3.6%

5.1%

-7.1%

-12.5%

(1)

2011 revenue has been reclassified to conform to the current year presentation.

 

 

Exhibit E

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)

CALENDAR YEAR

QUARTER

2012

2011

Q4-2012

Q3-2012

Q2-2012

Q1-2012

Q4-2011

Q3-2011

Q2-2011

Q1-2011

1.

Operating Results - Continuing Operations

Consolidated

Revenue

$  1,997,651

$  1,983,433

$   501,029

$   497,451

$   513,377

$   485,794

$   512,033

$   494,312

$   470,453

$   506,635

Operating Income (Loss), as reported

232,935

278,724

51,935

111,859

(24,065)

93,206

3,395

92,181

77,129

106,019

Adjustments:

Legal and Regulatory Charges (1)

192,417

78,484

47,941

-

144,476

-

78,484

-

-

-

Exit costs, Impairments and Other Charges (2)

10,460

56,912

10,460

-

-

-

27,714

-

9,887

19,311

Operating Income, as adjusted

435,812

414,120

110,336

111,859

120,411

93,206

109,593

92,181

87,016

125,330

Depreciation and Amortization

96,744

88,942

25,136

24,241

23,453

23,914

23,600

20,471

22,259

22,612

EBITDA, as adjusted

$     532,556

$     503,062

$   135,472

$   136,100

$   143,864

$   117,120

$   133,193

$   112,652

$   109,275

$   147,942

Operating Margin, as adjusted

21.8%

20.9%

22.0%

22.5%

23.5%

19.2%

21.4%

18.6%

18.5%

24.7%

EBITDA Margin, as adjusted

26.7%

25.4%

27.0%

27.4%

28.0%

24.1%

26.0%

22.8%

23.2%

29.2%

Technology, Data and Analytics

Revenue

$     736,905

$     679,599

$   189,312

$   188,994

$   183,282

$   175,317

$   175,549

$   170,334

$   167,837

$   165,879

Operating Income, as reported

218,367

206,761

51,971

58,318

56,003

52,075

49,607

56,814

47,741

52,599

Adjustments:

Exit costs, Impairments and Other Charges (2)

2,827

16,858

2,827

-

-

-

7,971

-

6,585

2,302

Operating Income, as adjusted

221,194

223,619

54,798

58,318

56,003

52,075

57,578

56,814

54,326

54,901

Depreciation and Amortization

74,999

67,184

19,730

18,726

17,997

18,546

18,066

15,081

16,843

17,194

EBITDA, as adjusted

$     296,193

$     290,803

$     74,528

$     77,044

$     74,000

$     70,621

$     75,644

$     71,895

$     71,169

$     72,095

Operating Margin, as adjusted

30.0%

32.9%

28.9%

30.9%

30.6%

29.7%

32.8%

33.4%

32.4%

33.1%

EBITDA Margin, as adjusted

40.2%

42.8%

39.4%

40.8%

40.4%

40.3%

43.1%

42.2%

42.4%

43.5%

Transaction Services

Revenue

$  1,262,738

$  1,309,905

$   311,717

$   308,451

$   330,359

$   312,211

$   337,776

$   325,774

$   304,129

$   342,226

Operating Income, as reported

260,396

256,004

65,892

65,651

76,603

52,250

70,955

55,714

50,858

78,477

Adjustments:

Exit costs, Impairments and Other Charges (2)

1,531

3,816

1,531

-

-

-

(236)

-

1,074

2,978

Operating Income, as adjusted

261,927

259,820

67,423

65,651

76,603

52,250

70,719

55,714

51,932

81,455

Depreciation and Amortization

17,837

17,555

4,498

4,531

4,408

4,400

4,558

4,414

4,320

4,263

EBITDA, as adjusted

$     279,764

$     277,375

$     71,921

$     70,182

$     81,011

$     56,650

$     75,277

$     60,128

$     56,252

$     85,718

Operating Margin, as adjusted

20.7%

19.8%

21.6%

21.3%

23.2%

16.7%

20.9%

17.1%

17.1%

23.8%

EBITDA Margin, as adjusted

22.2%

21.2%

23.1%

22.8%

24.5%

18.1%

22.3%

18.5%

18.5%

25.0%

Corporate and Other

Revenue

$       (1,992)

$       (6,071)

$           -

$             6

$        (264)

$     (1,734)

$     (1,292)

$     (1,796)

$     (1,513)

$     (1,470)

Operating Loss, as reported

(245,828)

(184,041)

(65,928)

(12,110)

(156,671)

(11,119)

(117,167)

(20,347)

(21,470)

(25,057)

Adjustments:

Legal and Regulatory Charges (1)

192,417

78,484

47,941

-

144,476

-

78,484

-

-

-

Exit costs, Impairments and Other Charges (2)

6,102

36,238

6,102

-

-

-

19,979

-

2,228

14,031

Operating Loss, as adjusted

(47,309)

(69,319)

(11,885)

(12,110)

(12,195)

(11,119)

(18,704)

(20,347)

(19,242)

(11,026)

Depreciation and Amortization

3,908

4,203

908

984

1,048

968

976

976

1,096

1,155

EBITDA, as adjusted

$     (43,401)

$     (65,116)

$    (10,977)

$    (11,126)

$    (11,147)

$    (10,151)

$    (17,728)

$    (19,371)

$    (18,146)

$     (9,871)

 

 

Exhibit E - Continued

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)

CALENDAR YEAR

QUARTER

2012

2011

Q4-2012

Q3-2012

Q2-2012

Q1-2012

Q4-2011

Q3-2011

Q2-2011

Q1-2011

2.

Net Earnings - Reconciliation

Net Earnings (Loss)

$      70,359

$      96,543

$      2,814

$     58,304

$    (37,880)

$     47,121

$    (21,201)

$     40,450

$     21,365

$     55,929

Adjustments - Continuing Operations: