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Altisource Announces Strong First Quarter Results

LUXEMBOURG, Apr 28, 2016 (GLOBE NEWSWIRE via COMTEX) --

Altisource Portfolio Solutions S.A. ("Altisource") ASPS, +1.28% today reported strong financial results for the first quarter 2016, generating the highest first quarter revenue and service revenue in Altisource's history. Compared to the first quarter of 2015, revenue growth was driven by a higher volume of property inspection and preservation referrals and growth in the number of non-Ocwen homes sold on Hubzu.

Diluted earnings per share of $0.92 and Adjusted diluted earnings per share [(1)] of $1.47 for the first quarter of 2016 were significantly higher than the first quarter of 2015 primarily from service revenue growth coupled with the benefit of the 2015 cost reduction initiative.

First Quarter 2016 Results Compared to First Quarter 2015:

  • Service revenue of $234.3 million, a 13% increase
  • Net income attributable to Altisource of $18.5 million, a 400% increase
  • Adjusted net income attributable to Altisource [(1)] of $29.4 million, a 148% increase
  • Diluted earnings per share of $0.92, a 411% increase
  • Adjusted diluted earnings per share [(1)] of $1.47, a 163% increase
  • Cash from operations of $29.0 million compared to cash used in operations of $(15.9) million

"I am very pleased with our first quarter financial results. We continue to make strong gains to diversify and grow our customer base. Service revenue unrelated to Ocwen for the first quarter of 2016 was 22% higher than the fourth quarter of 2015 and 38% higher than the first quarter of 2015," said Chief Executive Officer William B. Shepro.

Shepro further commented, "First quarter 2016 service revenue of $234.3 million is 26% of the mid-point of our full year 2016 scenarios and adjusted diluted earnings per share of $1.47 is 25% of the mid-point. Given the fact that the 2 [nd] and 3 [rd] quarters have historically been our seasonally strongest of the year, we believe we are well positioned to achieve the mid-point of our 2016 financial scenarios."

First quarter 2016 highlights include:

Initiatives

  • Launched the Owners.com [(R)] buyer rebate program in Atlanta and South Florida
  • Supported Altisource Residential Corporation's acquisition of more than 600 properties
  • Completed the integration work for our new top-4 bank customer and plan to commence property inspection and preservation services in early May 2016
  • Launched Vendorly [TM] , a vendor oversight platform for Lenders One members

Capital Allocation

  • Repurchased $11.7 million of our common stock (0.5 million shares at an average price of $25.17 per share)
  • Purchased 2.5 million shares of Altisource Residential Corporation's common stock for $29.4 million in the open market
  • On April 6, 2016, we repurchased $28.0 million of our senior secured term loan for $24.3 million (a 13.1% discount)

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(1) This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements about management's beliefs and expectations. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "plan," "estimate," "seek," "believe," "potential" and similar expressions. 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 the future and are not statements of historical fact, actual results may differ materially from what is contemplated by the forward-looking statements. Altisource undertakes 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, Altisource's ability to integrate acquired businesses, retain key executives or employees, retain existing customers and attract new customers, general economic and market conditions, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies, availability of adequate and timely sources of liquidity and other risks...


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