NEW YORK, July 31, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Altisource Portfolio Solutions S.A. (NASDAQ: ASPS). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=ASPS
Highlights from our ASPS Report include:
- Strong Sequential Growth - On July 23, 2015, Altisource Portfolio Solutions S.A. released results for the second quarter of 2015. Service revenue increased 14% QoQ to $236.6 million during the quarter. Moreover, net income attributable to Altisource surged to $46.0 million or $2.22 per diluted share from $3.7 million or $0.18 per diluted share in the first quarter 2015. Further, adjusted net income attributable to Altisource came in at $54.2 million, up from $11.8 million in the first quarter 2015.
- Year-over-Year Performance - The Company generated total revenue of $268.3 million during the quarter, lower than $296.1 million in Q2 2014. Meanwhile, service revenue also decreased by 10% YoY from $263.2 million in previous year. The mortgage service contributed $165.7 million in the total service revenue, whereas, financial services and technology services contributed $23.4 million and $56.0 million, respectively. Net income attributable to Altisource amounted declined 15% YoY, while diluted EPS was down c. 1% from the prior year quarter.
- Operational Highlights - During the quarter, the number of houses sold on Hubzu, the Company's online real estate auction platform, for customers other than Ocwen was 1,168, up 33% YoY and 39 times higher than Q2 2014. Further, the Company repurchased 1.4 million shares of common stock during the quarter at an average price of $28.57 per share. In addition, the Company repurchased a portion of the senior secured term loan with a par value of $16.0 million at a 9% discount. In line with its strategy to continue helping the mortgage banking industry safely and securely increase production, the Company acquired CastleLine Holdings, LLC, a specialty risk management and insurance services firm, subsequent to the close of the second quarter.
- Views of Management - Commenting in the second quarter results, William B. Shepro, CEO of Altisource, said, "Altisource had a very strong quarter, marking the third highest service revenue quarter and the second highest net income quarter in the Company's history. I am very proud of our team that came together over the last two quarters to align the Company's costs with our revenue, accomplishing the objectives we established in the fourth quarter of last year."
To find out how this influences our rating on Altisource Portfolio Solutions S.A. read the full report in its entirety here: http://www.aciassociation.com/?c=ASPS
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