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

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:























Legal and Regulatory Charges, net (1)

128,710


53,086


28,086


-


100,624


-


53,086


-


-


-




Exit costs, Impairments and Other Charges, net (2)

6,590


34,999


6,590


-


-


-


16,822


-


6,204


11,973





Total Adjustments to Continuing Operations

135,300


88,085


34,676


-


100,624


-


69,908


-


6,204


11,973



Adjustments - Discontinued Operations:























Impairment, Restructuring and Disposal Charges, net

2,494


34,440


2,494


-


-


-


15,157


1,486


17,759


38





Total Adjustments to Discontinued Operations

2,494


34,440


2,494


-


-


-


15,157


1,486


17,759


38



Adjustments - Non-operating:























Debt Refinancing Charges, net (3)

15,445


4,978


15,445


-


-


-


-


4,978


-


-




Income Tax Adjustments (4)

5,621


(6,089)


5,621


-


-


-


(6,089)


-


-


-





Total Non-operating Adjustments

21,066


(1,111)


21,066


-


-


-


(6,089)


4,978


-


-



Net Earnings, as adjusted

229,219


217,957


61,050


58,304


62,744


47,121


57,775


46,914


45,328


67,940



Purchase Accounting Amortization, net (5)

7,578


10,952


1,712


1,712


1,733


2,421


2,655


2,495


2,674


3,128



Adjusted Net Earnings

$     236,797


$     228,909


62,762


$     60,016


$     64,477


$     49,542


$     60,430


$     49,409


$     48,002


$     71,068



Adjusted Net Earnings Per Diluted Share 

$           2.80


$           2.68


$        0.74


$         0.71


$         0.76


$         0.59


$         0.72


$         0.59


$         0.56


$         0.81



Diluted Weighted Average Shares

84,857


85,685


85,106


84,948


84,578


84,567


84,430


84,415


85,812


88,134



























3.

Cash Flow - Reconciliation






















Cash Flows from Operating Activities:























Net Earnings (Loss)

$      70,359


$      96,543


$      2,814


$     58,304


$    (37,880)


$     47,121


$    (21,201)


$     40,450


$     21,365


$     55,929




Adjustments:
























Cash Related Restructuring Costs, net

23,925


8,177


2,491


5,746


13,335


2,353


(3,302)


2,107


5,220


4,152






Net Earnings (Loss), as adjusted

94,284


104,720


5,305


64,050


(24,545)


49,474


(24,503)


42,557


26,585


60,081




Adjustments to reconcile net earnings to
























net cash provided by operating activities:

























Non-cash adjustments

118,628


219,510


24,978


49,196


7,022


37,432


62,763


50,508


61,260


44,979






Working capital adjustments

245,475


161,806


103,100


(21,816)


158,693