Lender Processing Services, Inc. Reports Strong Third Quarter 2010 Earnings

Year-over-year revenues increase 1.1%

Year-over-year adjusted EPS increases 7.2% to 89 cents per diluted share

Oct 28, 2010, 16:32 ET from Lender Processing Services, Inc.

JACKSONVILLE, Fla., Oct. 28 /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 $626.0 million for the third quarter of 2010, an increase of 1.1% compared to the third quarter of 2009, while net earnings of $78.7 million or 85 cents per diluted share in the third quarter of 2010 increased from $75.5 million or 78 cents per diluted share in the prior year quarter.

Adjusted net earnings for the third quarter of 2010 were $82.2 million, or 89 cents per diluted share, compared to $80.2 million, or 83 cents per diluted share in the third quarter of 2009 and, were higher primarily due to growth in operating income, reduced interest expense and a lower share count.  Adjusted net earnings in the current quarter include an adjustment for purchase price amortization of 4 cents per diluted share and the prior year quarter included a similar adjustment of 5 cents per diluted share.

"LPS delivered a strong third quarter despite a very difficult environment in the origination market, sluggish conditions in the default market and an ongoing challenging business environment.  LPS, with its technology driven, broad-based end-to-end solutions for the mortgage and real estate industries remains well positioned for the fourth quarter and to continue to grow profitably in the years ahead," said Lee A. Kennedy, Executive Chairman of LPS. "Our Other TD&A segment reflected robust growth from continued market share gains. While our Default Services business was impacted by a challenging business environment, our Loan Facilitation business delivered strong results in a difficult market," added Jeff Carbiener, President and CEO of LPS.

Operating income of $144.3 million in the quarter increased from $143.6 million in the third quarter of 2009.

Year-to-date adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) for 2010 was $207.6 million compared to $231.6 million for the first nine months of 2009 primarily due to higher capital expenditures as well as from changes in working capital.

Technology, Data and Analytics (TD&A)

Revenues for the segment were $196.9 million compared to $186.3 million in the third quarter of 2009, while operating income of $67.4 million compared to $62.4 million in the prior year quarter.  Mortgage Processing revenues of $102.4 million compared to $103.0 million in the same period last year.  Other TD&A revenues of $94.6 million were 13.5% above the third quarter of 2009 primarily due to higher Desktop revenues as well as strong growth in our Other Software and Services offerings. Overall operating income for TD&A grew 8.0% over the prior year period primarily due to higher contributions from Mortgage Processing, Other Software and Services and Desktop, somewhat offset by lower contributions from our Data & Analytics businesses.

Loan Transaction Services (LTS)

Revenues for the segment were $431.1 million compared to $440.5 million in the third quarter of 2009, and operating income of $96.7 million compared to $101.6 million in the prior year period.  Loan Facilitation Services revenues of $165.5 million increased 21.1% year-over-year, and compared very favorably to the Mortgage Bankers Association's (MBA) estimate of overall originations being lower by 19% year-over-year.  This positive variance was primarily due to continued market share gains in our settlement services and appraisal offerings. Default Services revenues of $265.6 million declined 12.6% compared to the third quarter of 2009 driven by a continued broader industry slowdown. Overall operating income for LTS was lower mainly due to lower contributions from Default Services partly offset by higher income in Loan Facilitation services.

Corporate and Other

Net corporate expenses in the third quarter of 2010 were $19.8 million compared to $20.3 million in the prior year quarter.

The company noted that it had repurchased 2.3 million shares for $70.3 million in the third quarter.  Following these purchases, $79.8 million remained available under the previous authorization.  Also, the company announced that its Board of Directors had authorized a new share repurchase program of $250 million that replaced the previous authorization.  

Outlook

"Third quarter and year-to-date 2010 results were strong and, while the broader economic environment remains difficult and some of our markets continue to present challenges, LPS with its solid market presence remains well positioned for a strong finish in 2010 and to continue to grow revenue and earnings in 2011," said Jeff Carbiener. "Based on year-to-date trends and the outlook for the fourth quarter for the origination and default markets, we expect fourth quarter adjusted earnings to be in the range of 90-92 cents per diluted share. For full year 2010, we expect revenues to grow 3-4% compared to 2009 and adjusted earnings to be in the $3.48-$3.50 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, October 29, 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 November 5, 2010 by dialing 888-203-1112 (access code: 2974079).

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). 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; the level of scrutiny being placed on participants in the foreclosure process; 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, 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

(Unaudited)

Three months ended September 30,

Nine months ended September 30,

2010

2009

2010

2009

(In thousands, except per share data)

Processing and services revenues

$ 626,040

$ 619,427

$ 1,817,515

$ 1,762,415

Cost of revenues

417,243

409,113

1,204,112

1,167,829

Gross profit

208,797

210,314

613,403

594,586

Selling, general and administrative expenses

64,516

66,671

185,051

203,280

Operating income

144,281

143,643

428,352

391,306

Other income (expense):

Interest income

147

283

1,070

1,249

Interest expense

(17,073)

(21,195)

(54,533)

(64,734)

Other expense, net

79

(203)

202

(217)

Total other income (expense)

(16,847)

(21,115)

(53,261)

(63,702)

Earnings from continuing operations before income taxes and equity in losses of unconsolidated entity

127,434

122,528

375,091

327,604

Provision for income taxes

48,743

46,867

143,471

125,308

Earnings from continuing operations before equity in losses of unconsolidated entity

78,691

75,661

231,620

202,296

Equity in losses of unconsolidated entity

-

-

-

(37)

Earnings from continuing operations

78,691

75,661

231,620

202,259

Discontinued operation, net of tax

-

-

-

(504)

Net earnings

78,691

75,661

231,620

201,755

Noncontrolling minority interest

-

(119)

-

(927)

Net earnings attributable to Lender Processing Services, Inc.

$   78,691

$   75,542

$    231,620

$    200,828

Net earnings per share - diluted from continuing operations

$       0.85

$       0.78

$          2.45

$          2.09

Net earnings per share - diluted from discontinued operation

-

-

-

-

Net earnings per share - diluted

$       0.85

$       0.78

$          2.45

$          2.09

Weighted average shares outstanding - diluted

92,682

96,399

94,658

95,941

Exhibit B

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

September 30, 2010

December 31, 2009

(In thousands)

Assets

Current assets:

Cash and cash equivalents

$      72,518

$      70,528

Trade receivables, net of allowance for doubtful accounts

418,558

401,333

Other receivables

2,747

3,770

Prepaid expenses and other current assets

36,397

26,985

Deferred income taxes

43,993

47,528

Total current assets

574,213

550,144

Property and equipment, net of accumulated depreciation

123,905

113,108

Computer software, net of accumulated amortization

210,770

185,376

Other intangible assets, net of accumulated amortization

55,455

72,796

Goodwill

1,166,142

1,166,142

Other non-current assets

120,106

109,738

Total assets

$ 2,250,591

$ 2,197,304

Liabilities and Equity

Current liabilities:

Current portion of long-term debt

$    145,100

$      40,100

Trade accounts payable

45,006

38,166

Accrued salaries and benefits

45,784

54,376

Recording and transfer tax liabilities

13,412

15,208

Due to affiliates

-

3,321

Other accrued liabilities

139,604

151,601

Deferred revenues

52,259

66,602

Total current liabilities

441,165

369,374

Deferred revenues

36,553

37,681

Deferred income taxes, net

81,326

65,215

Long-term debt, net of current portion

1,140,425

1,249,250

Other non-current liabilities

21,616

19,926

Total liabilities

1,721,085

1,741,446

Equity:

-

-

Preferred stock $0.0001 par value; 50 million shares authorized, none issued at September 30, 2010 or December 31, 2009, respectively

Common stock $0.0001 par value; 500 million shares authorized, 97.4 million and 97.0 million shares issued at September 30, 2010 and December 31, 2009, respectively

10

10

Additional paid-in capital

207,625

173,424

Retained earnings

534,423

330,963

Accumulated other comprehensive loss

(1,803)

(7,630)

Treasury stock $0.0001 par value; 6.1 million and 1.2 million shares at September 30, 2010 and December 31, 2009, respectively

(210,749)

(40,909)

Total equity

529,506

455,858

Total liabilities and equity

$ 2,250,591

$ 2,197,304

Exhibit C

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

Nine months ended September 30,

2010

2009

(In thousands)

Cash flows from operating activities:

Net earnings attributable to Lender Processing Services, Inc.

$ 231,620

$ 200,828

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

71,814

72,623

Amortization of debt issuance costs

3,506

3,968

Gain on sale of discontinued operation

-

(2,574)

Deferred income taxes, net

16,604

(651)

Stock-based compensation cost

22,052

20,364

Tax expense (benefit) associated with equity compensation

205

(2,625)

Equity in losses of unconsolidated entity

-

37

Noncontrolling minority interest

-

927

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

Trade receivables

(17,224)

(76,642)

Other receivables

1,023

13,321

Prepaid expenses and other assets

(17,272)

(7,798)

Deferred revenues

(15,471)

(2,922)

Accounts payable and other liabilities

(5,140)

76,281

Net cash provided by operating activities

291,717

295,137

Cash flows from investing activities:

Additions to property and equipment

(32,601)

(24,896)

Additions to capitalized software

(51,505)

(42,966)

Purchases of investments

(10,856)

-

Acquisition of title plants

(1,840)

(14,319)

Acquisitions, net of cash acquired

(271)

(16,403)

Proceeds from sale of discontinued operation, net of cash distributed

-

(32,638)

Net cash used in investing activities

(97,073)

(131,222)

Cash flows from financing activities:

Debt service payments

(3,825)

(180,455)

Stock options exercised

10,505

2,002

Tax (expense) benefit associated with equity compensation

(205)

2,625

Cash dividends paid

(28,160)

(28,723)

Repurchase of minority interests in subsidiary

-

(2,600)

Treasury stock purchases

(167,991)

(9,883)

Bond repurchases

-

(8,000)

Contingent payments related to acquisitions

(2,978)

-

Net cash used in financing activities

(192,654)

(225,034)

Net increase (decrease) in cash and cash equivalents

1,990

(61,119)

Cash and cash equivalents, beginning of period

70,528

125,966

Cash and cash equivalents, end of period

$   72,518

$   64,847

Supplemental disclosures of cash flow information:

Cash paid for interest

$   60,631

$   69,882

Cash paid for taxes

$ 116,955

$ 107,709

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)

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES 

Exhibit D

SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED

(In thousands)

Nine months ended September 30,

Quarter ended

2010

2009

9/30/2010

6/30/2010

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

$    302,352

$    283,690

$ 102,362

$ 102,356

$   97,634

$ 104,184

$ 102,973

$   89,567

$   91,150

Other TD&A

259,235

234,364

94,555

82,852

81,828

85,247

83,313

82,322

68,729

Total

561,587

518,054

196,917

185,208

179,462

189,431

186,286

171,889

159,879

Loan Transaction Services:

Loan Facilitation Services

452,575

404,381

165,490

140,471

146,614

142,919

136,657

148,510

119,214

Default Services

809,289

858,666

265,572

275,046

268,671

278,647

303,823

299,534

255,309

Total

1,261,864

1,263,047

431,062

415,517

415,285

421,566

440,480

448,044

374,523

Corporate and Other

(5,936)

(18,686)

(1,939)

(1,644)

(2,353)

(2,864)

(7,339)

(6,762)

(4,585)

Total Revenue

$ 1,817,515

$ 1,762,415

$ 626,040

$ 599,081

$ 592,394

$ 608,133

$ 619,427

$ 613,171

$ 529,817

Revenue Growth from Prior Year Period

Technology, Data and Analytics:

Mortgage Processing

6.6%

15.4%

-0.6%

14.3%

7.1%

17.9%

23.2%

9.1%

13.7%

Other TD&A

10.6%

37.3%

13.5%

0.6%

19.1%

40.3%

50.5%

37.9%

23.5%

Total

8.4%

24.4%

5.7%

7.7%

12.2%

27.0%

34.1%

21.3%

17.7%

Loan Transaction Services:

Loan Facilitation Services

11.9%

16.3%

21.1%

-5.4%

23.0%

70.3%

55.9%

25.8%

-16.1%

Default Services

-5.8%

41.2%

-12.6%

-8.2%

5.2%

14.3%

25.6%

51.9%

51.0%

Total

-0.1%

32.1%

-2.1%

-7.3%

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

n/m

n/m

Total Revenue

3.1%

29.2%

1.1%

-2.3%

11.8%

28.3%

32.7%

35.3%

19.4%

2.

Depreciation and Amortization - Continuing Operations

Depreciation and Amortization

$      47,915

$      45,399

$   17,142

$   15,780

$   14,993

$   15,932

$   15,894

$   15,431

$   14,074

Purchase Price Amortization

18,312

23,095

5,710

5,884

6,718

7,654

7,608

7,404

8,083

Other Amortization

5,587

4,124

1,668

1,976

1,943

1,713

1,542

753

1,829

Total Depreciation and Amortization

$      71,814

$      72,618

$   24,520

$   23,640

$   23,654

$   25,299

$   25,044

$   23,588

$   23,986

3.

Stock Compensation Expense

Stock Compensation Expense, Excluding Acceleration Charges

$      22,052

$      19,565

$     8,215

$     7,280

$     6,557

$     7,678

$     7,062

$     6,459

$     6,044

Stock Acceleration Expense

-

799

-

-

-

-

-

-

799

Total Stock Compensation Expense

$      22,052

$      20,364

$     8,215

$     7,280

$     6,557

$     7,678

$     7,062

$     6,459

$     6,843

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES 

Exhibit E

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)

Nine months ended September 30,

Quarter ended

2010

2009

9/30/2010

6/30/2010

3/31/2010

12/31/2009

9/30/2009

6/30/2009

3/31/2009

1.

EBIT - Continuing Operations

Consolidated 

Revenue 

$ 1,817,515

$ 1,762,415

$ 626,040

$ 599,081

$ 592,394

$ 608,133

$ 619,427

$ 613,171

$ 529,817

Cost of Sales 

1,204,112

1,167,829

417,243

390,847

396,022

403,174

409,113

404,014

354,702

Selling, General and Administrative Expenses

185,051

203,280

64,516

59,815

60,720

64,059

66,671

65,431

71,178

Operating Income

428,352

391,306

144,281

148,419

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

$    428,352

$    400,291

$ 144,281

$ 148,419

$ 135,652

$ 140,900

$ 143,643

$ 143,726

$ 112,922

EBIT Margin, as adjusted

23.6%

22.7%

23.0%

24.8%

22.9%

23.2%

23.2%

23.4%

21.3%

Depreciation and Amortization

$      71,814

$      72,618

$   24,520

$   23,640

$   23,654

$   25,299

$   25,044

$   23,588

$   23,986

Technology, Data and Analytics

Revenue 

$    561,587

$    518,054

$ 196,917

$ 185,208

$ 179,462

$ 189,431

$ 186,286

$ 171,889

$ 159,879

Cost of Sales

314,533

295,043

108,421

100,317

105,795

107,368

105,651

98,929

90,463

Selling, General and Administrative Expenses

60,985

52,146

21,108

20,066

19,811

18,571

18,256

17,824

16,066

Operating Income

186,069

170,865

67,388

64,825

53,856

63,492

62,379

55,136

53,350

Less Non-recurring Charges:

Restructuring Costs

-

-

-

-

-

-

-

-

-

Acceleration of Performance-Based Shares

-

-

-

-

-

-

-

-

-

EBIT, as adjusted

$    186,069

$    170,865

$   67,388

$   64,825

$   53,856

$   63,492

$   62,379

$   55,136

$   53,350

EBIT Margin, as adjusted

33.1%

33.0%

34.2%

35.0%

30.0%

33.5%

33.5%

32.1%

33.4%

Depreciation and Amortization

$      49,117

$      51,411

$   16,532

$   16,047

$   16,538

$   18,066

$   17,595

$   16,441

$   17,375

Loan Transaction Services

Revenue 

$ 1,261,864

$ 1,263,047

$ 431,062

$ 415,517

$ 415,285

$ 421,566

$ 440,480

$ 448,044

$ 374,523

Cost of Sales 

895,496

891,515

310,780

292,107

292,609

298,723

311,230

311,349

268,936

Selling, General and Administrative Expenses

69,216

82,088

23,561

21,798

23,857

25,681

27,665

27,064

27,359

Operating Income

297,152

289,444

96,721

101,612

98,819

97,162

101,585

109,631

78,228

Less Non-recurring Charges:

Restructuring Costs

-

-

-

-

-

-

-

-

-

Acceleration of Performance-Based Shares

-

-

-

-

-

-

-

-

-

EBIT, as adjusted

$    297,152

$    289,444

$   96,721

$ 101,612

$   98,819

$   97,162

$ 101,585

$ 109,631

$   78,228

EBIT Margin, as adjusted

23.5%

22.9%

22.4%

24.5%

23.8%

23.0%

23.1%

24.5%

20.9%

Depreciation and Amortization

$      17,087

$      15,029

$     6,152

$     5,749

$     5,186

$     5,281

$     5,295

$     5,126

$     4,608

Corporate and Other

Revenue 

$      (5,936)

$    (18,686)

$   (1,939)

$   (1,644)

$   (2,353)

$   (2,864)

$   (7,339)

$   (6,762)

$   (4,585)

Cost of Sales 

(5,917)

(18,729)

(1,958)

(1,577)

(2,382)

(2,917)

(7,768)

(6,264)

(4,697)

Selling, General and Administrative Expenses

54,850

69,046

19,847

17,951

17,052

19,807

20,750

20,543

27,753

Operating Income

(54,869)

(69,003)

(19,828)

(18,018)

(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

$    (54,869)

$    (60,018)

$ (19,828)

$ (18,018)

$ (17,023)

$ (19,754)

$ (20,321)

$ (21,041)

$ (18,656)

Depreciation and Amortization

$        5,610

$        6,178

$     1,836

$     1,844

$     1,930

$     1,952

$     2,154

$     2,021

$     2,003

2.

Net Earnings - Reconciliation

Net Earnings  

$    231,620

200,828

$   78,691

$   80,413

$   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

231,620

206,376

78,691

$   80,413

72,516

74,901

75,542

75,240

55,594

Purchase Price Amortization, net of tax (1)

11,307

14,261

3,526

3,633

4,148

4,726

4,698

4,572

4,991

Adjusted Net Earnings

$    242,927

$    220,637

$   82,217

$   84,046

$   76,664

$   79,627

$   80,240

$   79,812

$   60,585

Adjusted Net Earnings Per Diluted Share

$          2.57

$          2.30

$       0.89

$       0.89

$       0.80

$       0.82

$       0.83

$       0.83

$       0.64

Diluted Weighted Average Shares

94,658

95,941

92,682

94,910

96,416

96,781

96,399

96,133

95,284

3.

Cashflow - Reconciliation

Cash Flows from Operating Activities:

Net Earnings

$    231,620

$    200,828

$   78,691

$   80,413

$   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

231,620

205,132

78,691

80,413

72,516

74,901

75,542

75,240

54,350

Adjustments to reconcile net earnings to net cash provided by operating activities:

Non-cash adjustments

114,181

92,069

41,548

34,591

38,042

60,281

32,279

31,700

28,090

Working capital adjustments

(54,084)

2,240

(35,191)

(17,375)

(1,518)

13,369

(16,954)

21,957

(2,763)

Net cash provided by operating activities

291,717

299,441

85,048

97,629

109,040

148,551

90,867

128,897

79,677

 Capital expenditures included in investing activities

(84,106)

(67,862)

(26,940)

(29,122)

(28,044)

(30,913)

(19,455)

(25,836)

(22,571)

Adjusted Net Free Cash Flow

$    207,611

$    231,579

$   58,108

$   68,507

$   80,996

$ 117,638

$   71,412

$ 103,061

$   57,106

 Notes: 

 (1)

 Purchase price amortization, net of tax, represents the periodic amortization of intangible assets acquired through business acquisitions primarily relating to customer lists,

 trademarks and non-compete agreements. 

SOURCE Lender Processing Services, Inc.



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