Lender Processing Services, Inc. Reports Strong First Quarter Earnings
Year-over-year revenues increase 11.8%
Year-over-year adjusted EPS increases 25.0%
JACKSONVILLE, Fla., April 22 /PRNewswire-FirstCall/ -- Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today reported consolidated revenues of $592.4 million for the first quarter of 2010, an increase of 11.8% compared to the first quarter of 2009. Net earnings of $72.5 million or 75 cents per diluted share in the first quarter of 2010 increased from $50.0 million or 53 cents per diluted share in the first quarter of 2009.
Adjusted net earnings for the first quarter of 2010 were $76.7 million, or 80 cents per diluted share, compared to $60.6 million, or 64 cents per diluted share in the first quarter of 2009. Adjusted net earnings in the current quarter include an adjustment for purchase price amortization of 5 cents per diluted share while the prior year quarter excluded an after-tax charge of 6 cents per diluted share primarily related to the retirement of three members of LPS's Board of Directors and included an adjustment for purchase price amortization of 5 cents per diluted share.
"LPS is off to a strong start in 2010 despite difficult market conditions and a challenging broader macro-economic environment. LPS, with its strong market presence and its unique portfolio of services, remains well positioned to achieve its growth objectives in 2010 and beyond," said Lee A. Kennedy, Executive Chairman of LPS. "Our Loan Facilitation business posted record growth in a sluggish year-over-year origination market as we continued to gain market share. Our Default Services business grew year-over-year as well, despite being impacted by broader industry slowdowns. Also, our Mortgage Processing and other Technology businesses delivered another strong quarter," added Jeff Carbiener, President and CEO of LPS.
Operating income of $135.7 million in the quarter increased from $103.9 million in the first quarter of 2009.
Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) for the quarter of $81.0 million improved compared to $57.1 million for the first quarter of 2009 primarily due to strong operating results.
Technology, Data and Analytics (TD&A)
Revenues for the segment were $179.5 million compared to $159.9 million in the first quarter of 2009 while operating income of $53.9 million compared to $53.4 million in the prior year period. Mortgage Processing revenues of $97.6 million were 7.1% above the first quarter of 2009 while Other TD&A revenues increased by 19.1% to $81.8 million compared to the same period last year, primarily due to strong growth in Data and Analytics services and in our Desktop application. Overall operating income for TD&A grew nominally due to higher contributions from Mortgage Processing largely offset by lower contributions from Other TD&A as a result of investments in key client projects, specifically, a number of Desktop implementations with top-tier financial institutions.
Loan Transaction Services (LTS)
Revenues for the segment increased by 10.9% to $415.3 million compared to the first quarter of 2009 while operating income of $98.8 million compared to $78.2 million in the prior year quarter. Loan Facilitation Services revenues of $146.6 million were up 23.0% compared to the prior year quarter, and in contrast to the Mortgage Bankers Association's (MBA) estimate of overall originations being lower by 4% year-over-year. This growth was primarily due to market share gains driven by higher settlement services and increased appraisal volumes. Default Services revenues of $268.7 million increased 5.2% over the first quarter of 2009, despite a decline in industry foreclosure starts of 6.0% for the same period per LPS's Mortgage Monitor report driven by a broader industry slowdown. Overall operating income for LTS was higher mainly due to higher income in loan origination related offerings.
Corporate and Other
Net corporate expenses in the first quarter of 2010 were $17.0 million compared to $18.7 million (excluding the impact of certain non-recurring charges) in the prior year quarter.
The company noted that it had repurchased 1.141 million shares for $44.9 million since year-end. Following these purchases, $121.6 million remains available under the current authorization for future share repurchases.
Outlook
"We are off to a strong start in 2010 and while the broader economy and some of our markets remain challenging, LPS has a market-leading presence in each of its businesses and remains in a good position to grow revenue and earnings in 2010," said Jeff Carbiener. "Building on the first quarter results, we expect second quarter 2010 adjusted earnings to be in the range of 88-90 cents per diluted share. For full year 2010, we continue to expect revenues to grow 8%-10% compared to 2009, driven by the strong momentum in Loan Facilitation Services, key customer wins in our Desktop business, a solid run rate in March in Default Services combined with continued growth in foreclosure activity through the remainder of the year. Also, we continue to expect adjusted earnings to be in the $3.49-$3.56 per diluted share range."
Use of Non-GAAP Financial Information
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 "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" (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 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 net earnings. A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.
Conference Call and Webcast
LPS will host a conference call to discuss these results on Friday, April 23, 2010, at 8:00 a.m. EDT. Interested parties are invited to listen to the live webcast by logging on to the Investor Relations section at www.lpsvcs.com. Supplemental materials will be available on the website. Those wishing to participate via the conference call may do so by calling 866-823-5035. 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 conference call will be available through April 30, 2010 by dialing 888-203-1112 (access code: 4653925).
To access a printer friendly version of this release and accompanying exhibits, go to http://www.lpsvcs.com/investor.
About Lender Processing Services
Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology and services to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, workflow automation (Desktop), servicing, portfolio retention and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS's Mortgage Servicing Package (MSP). In fact, many of the nation's top servicers rely on MSP, including eight of the top 10 and 14 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit www.lpsvcs.com.
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 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; 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; risks associated with our spin-off from Fidelity National Information Services, Inc., including limitations on our strategic and operating flexibility as a result of the tax-free nature of the spin-off; 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, the Company's subsequent reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Exhibit A |
|||||||
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (In thousands, except per share data) |
|||||||
Three months ended March 31, |
|||||||
2010 |
2009 |
||||||
(Unaudited) |
|||||||
Processing and services revenues |
$ 592,394 |
$ 529,817 |
|||||
Cost of revenues |
396,022 |
354,702 |
|||||
Gross profit |
196,372 |
175,115 |
|||||
Selling, general and administrative expenses |
60,720 |
71,178 |
|||||
Operating income |
135,652 |
103,937 |
|||||
Other income (expense): |
|||||||
Interest income |
623 |
524 |
|||||
Interest expense |
(18,845) |
(21,914) |
|||||
Other expense, net |
4 |
(1) |
|||||
Total other income (expense) |
(18,218) |
(21,391) |
|||||
Earnings from continuing operations before income taxes and equity in losses of unconsolidated entity |
117,434 |
82,546 |
|||||
Provision for income taxes |
44,918 |
31,575 |
|||||
Earnings from continuing operations before equity in losses |
|||||||
of unconsolidated entity |
72,516 |
50,971 |
|||||
Equity in losses of unconsolidated entity |
- |
(37) |
|||||
Earnings from continuing operations |
72,516 |
50,934 |
|||||
Discontinued operation, net of tax |
- |
(504) |
|||||
Net earnings |
72,516 |
50,430 |
|||||
Noncontrolling minority interest |
- |
(384) |
|||||
Net earnings attributable to Lender Processing Services, Inc. |
$ 72,516 |
$ 50,046 |
|||||
Net earnings per share - diluted from continuing operations |
$ 0.75 |
$ 0.53 |
|||||
Net earnings per share - diluted from discontinued operation |
- |
- |
|||||
Net earnings per share - diluted |
$ 0.75 |
$ 0.53 |
|||||
Weighted average shares outstanding - diluted |
96,416 |
95,284 |
|||||
Exhibit B LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) |
|||||||||||
March 31, 2010 |
December 31, 2009 |
||||||||||
(In thousands) |
|||||||||||
Assets |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ 122,960 |
$ 70,528 |
|||||||||
Trade receivables, net of allowance for doubtful accounts |
395,581 |
401,333 |
|||||||||
Other receivables |
3,367 |
3,770 |
|||||||||
Prepaid expenses and other current assets |
29,413 |
26,985 |
|||||||||
Deferred income taxes |
46,123 |
47,528 |
|||||||||
Total current assets |
597,444 |
550,144 |
|||||||||
Property and equipment, net of accumulated depreciation |
118,310 |
113,108 |
|||||||||
Computer software, net of accumulated amortization |
193,225 |
185,376 |
|||||||||
Other intangible assets, net of accumulated amortization |
66,426 |
72,796 |
|||||||||
Goodwill |
1,166,142 |
1,166,142 |
|||||||||
Other non-current assets |
107,338 |
109,738 |
|||||||||
Total assets |
$ 2,248,885 |
$ 2,197,304 |
|||||||||
Liabilities and Stockholder's Equity |
|||||||||||
Current liabilities: |
|||||||||||
Current portion of long-term debt |
$ 75,100 |
$ 40,100 |
|||||||||
Trade accounts payable |
43,883 |
38,166 |
|||||||||
Accrued salaries and benefits |
28,786 |
54,376 |
|||||||||
Recording and transfer tax liabilities |
12,329 |
15,208 |
|||||||||
Due to affiliates |
- |
3,321 |
|||||||||
Other accrued liabilities |
187,283 |
151,601 |
|||||||||
Deferred revenues |
63,593 |
66,602 |
|||||||||
Total current liabilities |
410,974 |
369,374 |
|||||||||
Deferred revenues |
35,749 |
37,681 |
|||||||||
Deferred income taxes, net |
70,887 |
65,215 |
|||||||||
Long-term debt, net of current portion |
1,212,975 |
1,249,250 |
|||||||||
Other non-current liabilities |
19,691 |
19,926 |
|||||||||
Total liabilities |
1,750,276 |
1,741,446 |
|||||||||
Stockholder's equity: |
|||||||||||
Preferred stock $0.0001 par value; 50 million shares authorized, none |
- |
- |
|||||||||
issued at March 31, 2010 or December 31, 2009, respectively |
|||||||||||
Common stock $0.0001 par value; 500 million shares authorized, 97.4 million and |
10 |
10 |
|||||||||
97.0 million shares issued at March 31, 2010 and December 31, 2009, respectively |
|||||||||||
Additional paid-in capital |
191,993 |
173,424 |
|||||||||
Retained earnings |
393,913 |
330,963 |
|||||||||
Accumulated other comprehensive loss |
(5,751) |
(7,630) |
|||||||||
Treasury stock $0.0001 par value; 2.2 million and 1.2 million shares at |
|||||||||||
March 31, 2010 and December 31, 2009, respectively |
(81,556) |
(40,909) |
|||||||||
Total stockholder's equity |
498,609 |
455,858 |
|||||||||
Total liabilities and stockholder's equity |
$ 2,248,885 |
$ 2,197,304 |
|||||||||
Exhibit C LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) |
|||||||||||
Three Months ended March 31, |
|||||||||||
2010 |
2009 |
||||||||||
(In thousands) |
|||||||||||
Cash flows from operating activities: |
|||||||||||
Net earnings attributable to Lender Processing Services, Inc. |
$ 72,516 |
$ 50,046 |
|||||||||
Adjustments to reconcile net earnings to net |
|||||||||||
cash provided by operating activities: |
|||||||||||
Depreciation and amortization |
23,654 |
23,991 |
|||||||||
Amortization of debt issuance costs |
1,148 |
1,282 |
|||||||||
Gain on sale of discontinued operation |
- |
(2,574) |
|||||||||
Deferred income taxes, net |
5,917 |
(651) |
|||||||||
Stock-based compensation cost |
6,557 |
6,843 |
|||||||||
Tax benefit associated with equity compensation |
766 |
(1,222) |
|||||||||
Equity in losses of unconsolidated entity |
- |
37 |
|||||||||
Noncontrolling minority interest |
- |
384 |
|||||||||
Changes in assets and liabilities, net of effects of acquisitions: |
|||||||||||
Trade receivables |
5,752 |
(25,871) |
|||||||||
Other receivables |
403 |
4,622 |
|||||||||
Prepaid expenses and other assets |
(4,109) |
(6,347) |
|||||||||
Deferred revenues |
(4,941) |
(479) |
|||||||||
Accounts payable and other liabilities |
1,377 |
25,312 |
|||||||||
Net cash provided by operating activities |
109,040 |
75,373 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Additions to property and equipment |
(12,265) |
(11,659) |
|||||||||
Additions to capitalized software |
(15,779) |
(10,912) |
|||||||||
Acquisition of title plants |
- |
(5,764) |
|||||||||
Acquisitions, net of cash acquired |
(2,978) |
490 |
|||||||||
Proceeds from sale of discontinued operation, net of cash distributed |
- |
(32,638) |
|||||||||
Net cash used in investing activities |
(31,022) |
(60,483) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Debt service payments |
(1,275) |
(76,276) |
|||||||||
Stock options exercised |
12,448 |
714 |
|||||||||
Tax benefit associated with equity compensation |
(766) |
1,222 |
|||||||||
Cash dividends paid |
(9,566) |
(9,481) |
|||||||||
Treasury stock purchases |
(26,427) |
- |
|||||||||
Net cash used in financing activities |
(25,586) |
(83,821) |
|||||||||
Net increase (decrease) in cash and cash equivalents |
52,432 |
(68,931) |
|||||||||
Cash and cash equivalents, beginning of period |
70,528 |
125,966 |
|||||||||
Cash and cash equivalents, end of period |
$ 122,960 |
$ 57,035 |
|||||||||
Supplemental disclosures of cash flow information: |
|||||||||||
Cash paid for interest |
$ 25,839 |
$ 28,763 |
|||||||||
Cash paid for taxes |
$ 7,641 |
$ 7,746 |
|||||||||
Non-cash redistribution of assets to FIS |
$ - |
$ 434 |
|||||||||
Non-cash consideration received from sale of discontinued operation |
$ - |
$ 40,310 |
|||||||||
Non-cash consideration issued in acquisition of business |
$ - |
$ (5,162) |
|||||||||
Exhibit D LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED (In thousands) |
|||||||||||||||||
Quarter ended March 31, |
|||||||||||||||||
2010 |
2009 |
3/31/2010 |
12/31/2009 |
9/30/2009 |
6/30/2009 |
3/31/2009 |
|||||||||||
1. |
Revenues - Continuing Operations |
||||||||||||||||
Technology, Data and Analytics (TD&A): |
|||||||||||||||||
Mortgage Processing |
$ 97,634 |
$ 91,150 |
$ 97,634 |
$ 104,184 |
$ 102,973 |
$ 89,567 |
$ 91,150 |
||||||||||
Other TD&A |
81,828 |
68,729 |
81,828 |
85,247 |
83,313 |
82,322 |
68,729 |
||||||||||
Total |
179,462 |
159,879 |
179,462 |
189,431 |
186,286 |
171,889 |
159,879 |
||||||||||
Loan Transaction Services: |
|||||||||||||||||
Loan Facilitation Services |
146,614 |
119,214 |
146,614 |
142,919 |
136,657 |
148,510 |
119,214 |
||||||||||
Default Services |
268,671 |
255,309 |
268,671 |
278,647 |
303,823 |
299,534 |
255,309 |
||||||||||
Total |
415,285 |
374,523 |
415,285 |
421,566 |
440,480 |
448,044 |
374,523 |
||||||||||
Corporate and Other |
(2,353) |
(4,585) |
(2,353) |
(2,864) |
(7,339) |
(6,762) |
(4,585) |
||||||||||
Total Revenue |
$ 592,394 |
$ 529,817 |
$ 592,394 |
$ 608,133 |
$ 619,427 |
$ 613,171 |
$ 529,817 |
||||||||||
Revenue Growth from Prior Year Period |
|||||||||||||||||
Technology, Data and Analytics: |
|||||||||||||||||
Mortgage Processing |
7.1% |
13.7% |
7.1% |
17.9% |
23.2% |
9.1% |
13.7% |
||||||||||
Other TD&A |
19.1% |
23.5% |
19.1% |
40.3% |
50.5% |
37.9% |
23.5% |
||||||||||
Total |
12.2% |
17.7% |
12.2% |
27.0% |
34.1% |
21.3% |
17.7% |
||||||||||
Loan Transaction Services: |
|||||||||||||||||
Loan Facilitation Services |
23.0% |
-16.1% |
23.0% |
70.3% |
55.9% |
25.8% |
-16.1% |
||||||||||
Default Services |
5.2% |
51.0% |
5.2% |
14.3% |
25.6% |
51.9% |
51.0% |
||||||||||
Total |
10.9% |
20.4% |
10.9% |
28.7% |
33.7% |
42.1% |
20.4% |
||||||||||
Corporate and Other |
n/m |
n/m |
n/m |
n/m |
n/m |
n/m |
n/m |
||||||||||
Total Revenue |
11.8% |
19.4% |
11.8% |
28.3% |
32.7% |
35.3% |
19.4% |
||||||||||
2. |
Depreciation and Amortization - Continuing Operations |
||||||||||||||||
Depreciation and Amortization |
$ 14,993 |
$ 14,074 |
$ 14,993 |
$ 15,932 |
$ 15,894 |
$ 15,431 |
$ 14,074 |
||||||||||
Purchase Price Amortization |
6,718 |
8,083 |
6,718 |
7,654 |
7,608 |
7,404 |
8,083 |
||||||||||
Other Amortization |
1,943 |
1,829 |
1,943 |
1,713 |
1,542 |
753 |
1,829 |
||||||||||
Total Depreciation and Amortization |
$ 23,654 |
$ 23,986 |
$ 23,654 |
$ 25,299 |
$ 25,044 |
$ 23,588 |
$ 23,986 |
||||||||||
3. |
Stock Compensation Expense |
||||||||||||||||
Stock Compensation Expense, Excluding Acceleration Charges |
$ 6,557 |
$ 6,044 |
$ 6,557 |
$ 7,678 |
$ 7,062 |
$ 6,459 |
$ 6,044 |
||||||||||
Stock Acceleration Expense |
- |
799 |
- |
- |
- |
- |
799 |
||||||||||
Total Stock Compensation Expense |
$ 6,557 |
$ 6,843 |
$ 6,557 |
$ 7,678 |
$ 7,062 |
$ 6,459 |
$ 6,843 |
||||||||||
Exhibit E LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES NON-GAAP FINANCIAL INFORMATION - UNAUDITED (In thousands, except per share data) |
|||||||||||||||||||||||||||
Quarter ended March 31, |
|||||||||||||||||||||||||||
2010 |
2009 |
3/31/2010 |
12/31/2009 |
9/30/2009 |
6/30/2009 |
3/31/2009 |
|||||||||||||||||||||
1. |
EBIT - Continuing Operations |
||||||||||||||||||||||||||
Consolidated |
|||||||||||||||||||||||||||
Revenue |
$ 592,394 |
$ 529,817 |
$ 592,394 |
$ 608,133 |
$ 619,427 |
$ 613,171 |
$ 529,817 |
||||||||||||||||||||
Cost of Sales |
396,022 |
354,702 |
396,022 |
403,174 |
409,113 |
404,014 |
354,702 |
||||||||||||||||||||
Selling, General and Administrative Expenses |
60,720 |
71,178 |
60,720 |
64,059 |
66,671 |
65,431 |
71,178 |
||||||||||||||||||||
Operating Income |
135,652 |
103,937 |
135,652 |
140,900 |
143,643 |
143,726 |
103,937 |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs |
- |
8,186 |
- |
- |
- |
- |
8,186 |
||||||||||||||||||||
Acceleration of Performance-Based Shares |
- |
799 |
- |
- |
- |
- |
799 |
||||||||||||||||||||
EBIT, as adjusted |
$ 135,652 |
$ 112,922 |
$ 135,652 |
$ 140,900 |
$ 143,643 |
$ 143,726 |
$ 112,922 |
||||||||||||||||||||
EBIT Margin, as adjusted |
22.9% |
21.3% |
22.9% |
23.2% |
23.2% |
23.4% |
21.3% |
||||||||||||||||||||
Depreciation and Amortization |
$ 23,654 |
$ 23,986 |
$ 23,654 |
$ 25,299 |
$ 25,044 |
$ 23,588 |
$ 23,986 |
||||||||||||||||||||
Technology, Data and Analytics |
|||||||||||||||||||||||||||
Revenue |
$ 179,462 |
$ 159,879 |
$ 179,462 |
$ 189,431 |
$ 186,286 |
$ 171,889 |
$ 159,879 |
||||||||||||||||||||
Cost of Sales |
105,795 |
90,463 |
105,795 |
107,368 |
105,651 |
98,929 |
90,463 |
||||||||||||||||||||
Selling, General and Administrative Expenses |
19,811 |
16,066 |
19,811 |
18,571 |
18,256 |
17,824 |
16,066 |
||||||||||||||||||||
Operating Income |
53,856 |
53,350 |
53,856 |
63,492 |
62,379 |
55,136 |
53,350 |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
Acceleration of Performance-Based Shares |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
EBIT, as adjusted |
$ 53,856 |
$ 53,350 |
$ 53,856 |
$ 63,492 |
$ 62,379 |
$ 55,136 |
$ 53,350 |
||||||||||||||||||||
EBIT Margin, as adjusted |
30.0% |
33.4% |
30.0% |
33.5% |
33.5% |
32.1% |
33.4% |
||||||||||||||||||||
Depreciation and Amortization |
$ 16,538 |
$ 17,375 |
$ 16,538 |
$ 18,066 |
$ 17,595 |
$ 16,441 |
$ 17,375 |
||||||||||||||||||||
Loan Transaction Services |
|||||||||||||||||||||||||||
Revenue |
$ 415,285 |
$ 374,523 |
$ 415,285 |
$ 421,566 |
$ 440,480 |
$ 448,044 |
$ 374,523 |
||||||||||||||||||||
Cost of Sales |
292,609 |
268,936 |
292,609 |
298,723 |
311,230 |
311,349 |
268,936 |
||||||||||||||||||||
Selling, General and Administrative Expenses |
23,857 |
27,359 |
23,857 |
25,681 |
27,665 |
27,064 |
27,359 |
||||||||||||||||||||
Operating Income |
98,819 |
78,228 |
98,819 |
97,162 |
101,585 |
109,631 |
78,228 |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
Acceleration of Performance-Based Shares |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
EBIT, as adjusted |
$ 98,819 |
$ 78,228 |
$ 98,819 |
$ 97,162 |
$ 101,585 |
$ 109,631 |
$ 78,228 |
||||||||||||||||||||
EBIT Margin, as adjusted |
23.8% |
20.9% |
23.8% |
23.0% |
23.1% |
24.5% |
20.9% |
||||||||||||||||||||
Depreciation and Amortization |
$ 5,186 |
$ 4,608 |
$ 5,186 |
$ 5,281 |
$ 5,295 |
$ 5,126 |
$ 4,608 |
||||||||||||||||||||
Corporate and Other |
|||||||||||||||||||||||||||
Revenue |
$ (2,353) |
$ (4,585) |
$ (2,353) |
$ (2,864) |
$ (7,339) |
$ (6,762) |
$ (4,585) |
||||||||||||||||||||
Cost of Sales |
(2,382) |
(4,697) |
(2,382) |
(2,917) |
(7,768) |
(6,264) |
(4,697) |
||||||||||||||||||||
Selling, General and Administrative Expenses |
17,052 |
27,753 |
17,052 |
19,807 |
20,750 |
20,543 |
27,753 |
||||||||||||||||||||
Operating Income |
(17,023) |
(27,641) |
(17,023) |
(19,754) |
(20,321) |
(21,041) |
(27,641) |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs |
- |
8,186 |
- |
- |
- |
- |
8,186 |
||||||||||||||||||||
Acceleration of Performance-Based Shares |
- |
799 |
- |
- |
- |
- |
799 |
||||||||||||||||||||
EBIT, as adjusted |
$ (17,023) |
$ (18,656) |
$ (17,023) |
$ (19,754) |
$ (20,321) |
$ (21,041) |
$ (18,656) |
||||||||||||||||||||
Depreciation and Amortization |
$ 1,930 |
$ 2,003 |
$ 1,930 |
$ 1,952 |
$ 2,154 |
$ 2,021 |
$ 2,003 |
||||||||||||||||||||
2. |
Net Earnings - Reconciliation |
||||||||||||||||||||||||||
Net Earnings |
$ 72,516 |
$ 50,046 |
$ 72,516 |
$ 74,901 |
$ 75,542 |
$ 75,240 |
$ 50,046 |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs, net of tax |
- |
5,055 |
- |
- |
- |
- |
5,055 |
||||||||||||||||||||
Acceleration of Performance-Based Shares, net of tax |
- |
493 |
- |
- |
- |
- |
493 |
||||||||||||||||||||
Net Earnings, as adjusted |
72,516 |
55,594 |
72,516 |
74,901 |
75,542 |
75,240 |
55,594 |
||||||||||||||||||||
Purchase Price Amortization, net of tax (1) |
4,148 |
4,991 |
4,148 |
4,726 |
4,698 |
4,572 |
4,991 |
||||||||||||||||||||
Adjusted Net Earnings |
$ 76,664 |
$ 60,585 |
$ 76,664 |
$ 79,627 |
$ 80,240 |
$ 79,812 |
$ 60,585 |
||||||||||||||||||||
Net Earnings Per Diluted Share |
$ 0.75 |
$ 0.58 |
$ 0.75 |
$ 0.77 |
$ 0.78 |
$ 0.78 |
$ 0.58 |
||||||||||||||||||||
Adjusted Net Earnings Per Diluted Share |
$ 0.80 |
$ 0.64 |
$ 0.80 |
$ 0.82 |
$ 0.83 |
$ 0.83 |
$ 0.64 |
||||||||||||||||||||
Diluted Weighted Average Shares |
96,416 |
95,284 |
96,416 |
96,781 |
96,399 |
96,133 |
95,284 |
||||||||||||||||||||
3. |
Cashflow - Reconciliation |
||||||||||||||||||||||||||
Cash Flows from Operating Activities: |
|||||||||||||||||||||||||||
Net Earnings |
$ 72,516 |
$ 50,046 |
$ 72,516 |
$ 74,901 |
$ 75,542 |
$ 75,240 |
$ 50,046 |
||||||||||||||||||||
Less Non-recurring Charges: |
|||||||||||||||||||||||||||
Restructuring Costs, net of tax |
- |
4,304 |
- |
- |
- |
- |
4,304 |
||||||||||||||||||||
Net Earnings, as adjusted |
72,516 |
54,350 |
72,516 |
74,901 |
75,542 |
75,240 |
54,350 |
||||||||||||||||||||
Adjustments to reconcile net earnings to |
|||||||||||||||||||||||||||
Non-cash adjustments |
38,042 |
28,090 |
38,042 |
60,281 |
32,279 |
31,700 |
28,090 |
||||||||||||||||||||
Working capital adjustments |
(1,518) |
(2,763) |
(1,518) |
13,369 |
(16,954) |
21,957 |
(2,763) |
||||||||||||||||||||
Net cash provided by operating activities |
109,040 |
79,677 |
109,040 |
148,551 |
90,867 |
128,897 |
79,677 |
||||||||||||||||||||
Capital expenditures included in investing activities |
(28,044) |
(22,571) |
(28,044) |
(30,913) |
(19,455) |
(25,836) |
(22,571) |
||||||||||||||||||||
Adjusted Net Free Cash Flow |
$ 80,996 |
$ 57,106 |
$ 80,996 |
$ 117,638 |
$ 71,412 |
$ 103,061 |
$ 57,106 |
||||||||||||||||||||
Notes: Purchase price amortization, net of tax represents the periodic amortization of intangible assets acquired through acquisitions primarily relating to customer lists, trademarks and non-compete agreements. |
|||||||||||||||||||||||||||
SOURCE Lender Processing Services, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article