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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Altisource Portfolio Solutions SA | NASDAQ:ASPS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.13 | -6.63% | 1.83 | 1.80 | 1.88 | 1.9999 | 1.81 | 1.97 | 96,833 | 21:00:00 |
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(Mark One)
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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Luxembourg
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98-0554932
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $1.00 par value
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NASDAQ Global Select Market
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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ITEM 1.
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BUSINESS
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•
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Strengthened and grew existing customer relationships with leading bank and non-bank servicers
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•
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Signed a significant number of agreements and statements of work with strategic customers positioning us well for 2017
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•
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Developed new offerings to provide support services for Federal Housing Administration (“FHA”) mortgages
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•
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Strengthened and grew existing customer relationships with leading bank and non-bank originators
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•
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Signed a significant number of agreements and statements of work with strategic customers positioning us well for 2017
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•
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Developed new offerings to strengthen the Best Partners Mortgage Cooperative, Inc., a mortgage cooperative doing business as Lenders One
®
, value proposition and grow sales of the platform solution
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•
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Launched the buy-side brokerage offering in February and are now operating in 26 markets
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•
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Re-launched the sell-side offering in the fourth quarter and are now operating in 12 markets
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•
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Grew the number of Owners.com
®
real estate agents to 200
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•
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Launched Owners.com mobile apps for home buyers and real estate agents
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•
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Currently working with approximately 950 active buyers, up from 400 in October
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•
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Increased the number of rental homes managed from 2,732 at December 31, 2015 to 4,357 at
December 31, 2016
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•
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Sold 2,732 homes, primarily for Altisource Residential Corporation (“Residential”) and, to a lesser extent, for other clients
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•
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Negotiated a $60 million payment to Altisource, if Residential disposes 50% or more of its single family rental portfolio managed by Altisource, in return for a limited waiver of our exclusive right to provide property management and other services to Residential
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•
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Launched the buy-renovate-sell program in 2016; acquired 119 homes, 14 of which were sold
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•
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Received a residential rental property management vendor rating of 2 from Morningstar Credit Ratings in February 2017
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•
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Expand relationships with existing customers by cross-selling additional services and growing the volume of existing services we provide. We believe our existing customers represent a meaningful growth opportunity for us;
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•
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Develop new customer relationships leveraging a comprehensive suite of services, strong performance and controls. We believe there is a large opportunity to provide our services to new customers; and
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•
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Sell new offerings to existing customers and prospects. Some of our newer offerings include our suite of support services for FHA mortgages, Vendorly™, a SaaS-based vendor management platform, Trelix Connect™, a SaaS-based loan review system, noteXchange
®
, a SaaS platform to facilitate whole loan purchase and sale transactions, and residential and commercial loan disbursement processing, risk mitigation and construction inspection services.
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•
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Attract home buyers and sellers with a compelling value proposition through online marketing and search engine optimization;
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•
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Grow brand awareness of Owners.com and Investability
®
through broadcast marketing and public relations; and
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•
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Leverage local real estate agents to provide personalized service.
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United States
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India
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Philippines
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Uruguay
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Luxembourg
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Consolidated Altisource
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||||||
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||||||
Mortgage Services
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642
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2,659
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381
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15
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5
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3,702
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Financial Services
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482
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1,401
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300
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—
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1
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2,184
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Technology Services
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416
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1,267
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9
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—
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3
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1,695
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Corporate
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163
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432
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20
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145
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15
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775
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||||||
Total employees
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1,703
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5,759
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710
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160
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24
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8,356
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ITEM 1A.
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RISK FACTORS
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•
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Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
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•
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Ocwen loses or sells a significant portion or all of its non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
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•
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Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
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•
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Altisource fails to be retained as a service provider
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•
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The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
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•
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be expensive and time-consuming to defend;
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•
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cause us to cease making, licensing or using technology solutions that incorporate the challenged intellectual property;
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require us to redesign our technology solutions, if feasible;
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•
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divert management’s attention and resources; and/or
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•
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require us to enter into royalty or licensing agreements in order to obtain the right to use necessary technologies.
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•
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limiting our ability to borrow money for our working capital, capital expenditures and debt service requirements or other general corporate purposes;
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•
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limiting our flexibility in planning for, or reacting to, changes in our operations, our business or the industry in which we compete;
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•
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requiring us to use a portion of our excess cash flow, as defined in the debt agreement, to repay debt in the event our debt to EBITDA ratios, as defined in the debt agreement, exceed certain thresholds; and
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•
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placing us at a competitive disadvantage by limiting our ability to invest in the business.
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•
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execute on our strategic initiatives;
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•
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maintain or improve the quality and compliance of services we provide to our customers;
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•
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meet or exceed the expectations of our customers;
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•
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successfully leverage our existing customer relationships to sell additional services; and
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•
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attract new customers.
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ITEM 1B.
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UNRESOLVED STAFF COMMENTS
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ITEM 2.
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PROPERTIES
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Mortgage Services
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Financial Services
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Technology Services
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Corporate and Support Services
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Luxembourg
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X
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X
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X
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X
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United States
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Atlanta, GA
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X
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X
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X
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X
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Boston, MA
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X
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X
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Denver, CO
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X
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Endicott, NY
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X
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Fort Washington, PA
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X
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X
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Irvine, CA
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X
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Los Angeles, CA
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X
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Plano, TX
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X
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X
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X
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Sacramento, CA
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X
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Southfield, MI
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X
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St. Louis, MO
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X
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Tempe, AZ
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X
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Montevideo, Uruguay
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X
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X
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Pasay City, Philippines
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X
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X
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X
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X
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India
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Bangalore
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X
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X
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|
X
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|
X
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Mumbai
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|
X
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|
X
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|
X
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|
X
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ITEM 3.
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LEGAL PROCEEDINGS
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ITEM 4.
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MINE SAFETY DISCLOSURES
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
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2016
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||||||
Quarter ended
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Low
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High
|
||||
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||||
March 31
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$
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19.16
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$
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35.69
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June 30
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24.21
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31.29
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||
September 30
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23.20
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33.90
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||
December 31
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24.09
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32.91
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12/31/11
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6/30/12
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12/31/12
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6/30/13
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12/31/13
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6/30/14
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12/31/14
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6/30/15
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12/31/15
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6/30/16
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12/31/16
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||||||||||||||||||||||
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||||||||||||||||||||||
Altisource
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$
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100.00
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$
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145.93
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$
|
172.68
|
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|
$
|
187.92
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$
|
316.12
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$
|
228.34
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$
|
67.34
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|
|
$
|
61.36
|
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$
|
55.42
|
|
|
$
|
55.48
|
|
|
$
|
52.99
|
|
S&P 500 Index
|
|
100.00
|
|
|
108.31
|
|
|
113.41
|
|
|
127.73
|
|
|
146.98
|
|
|
155.87
|
|
|
163.72
|
|
|
164.05
|
|
|
162.53
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166.89
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|
|
178.02
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|||||||||||
NASDAQ Composite Index
|
|
100.00
|
|
|
112.66
|
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115.91
|
|
|
130.64
|
|
|
160.32
|
|
|
169.21
|
|
|
181.80
|
|
|
191.42
|
|
|
192.21
|
|
|
185.89
|
|
|
206.63
|
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Period
|
|
Total number of shares purchased
(1)
|
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Weighted average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
(2)
|
|
Maximum number of shares that may yet be purchased under the plans or programs
(2)
|
|||||
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|
|||||
Common stock:
|
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|
|
|
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|
|||||
October 1 — 31, 2016
|
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9,180
|
|
|
$
|
27.19
|
|
|
9,180
|
|
|
4,003,287
|
|
November 1 — 30, 2016
|
|
121,300
|
|
|
25.45
|
|
|
121,300
|
|
|
3,881,987
|
|
|
December 1 — 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,881,987
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
130,480
|
|
|
$
|
25.57
|
|
|
130,480
|
|
|
3,881,987
|
|
(1)
|
May include shares withheld from employees to satisfy tax withholding obligations that arose from the exercise of stock options.
|
(2)
|
On
May 18, 2016
, our shareholders authorized a new share repurchase program that replaced the prior program and authorizes us to purchase up to
4.6 million
shares of our common stock in the open market.
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
|
For the years ended December 31,
|
||||||||||||||||||
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
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|
||||||||||
Revenue
|
|
$
|
997,303
|
|
|
$
|
1,051,466
|
|
|
$
|
1,078,916
|
|
|
$
|
768,357
|
|
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$
|
568,360
|
|
Cost of revenue
|
|
690,045
|
|
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687,327
|
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707,180
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492,480
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366,201
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|
|||||
Gross profit
|
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307,258
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364,139
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|
371,736
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|
275,877
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202,159
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|
|||||
Selling, general and administrative expenses
|
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214,155
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220,868
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201,733
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113,810
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|
74,712
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|
|||||
Litigation settlement loss, net of $4,000
insurance recovery
|
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28,000
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|
|
—
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|
—
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|
—
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|
|
—
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|
|||||
Impairment losses
|
|
—
|
|
|
71,785
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|
|
37,473
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|
|
—
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|
|
—
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|
|||||
Change in the fair value of Equator
®
Earn Out
|
|
—
|
|
|
(7,591
|
)
|
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(37,924
|
)
|
|
—
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|
|
—
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|
|||||
Income from operations
|
|
65,103
|
|
|
79,077
|
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|
170,454
|
|
|
162,067
|
|
|
127,447
|
|
|||||
Other income (expense), net:
|
|
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|
|
|
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|
||||||||||
Interest expense
|
|
(24,412
|
)
|
|
(28,208
|
)
|
|
(23,363
|
)
|
|
(20,291
|
)
|
|
(1,210
|
)
|
|||||
Other income (expense), net
|
|
3,630
|
|
|
2,191
|
|
|
174
|
|
|
557
|
|
|
(1,588
|
)
|
|||||
Total other income (expense), net
|
|
(20,782
|
)
|
|
(26,017
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)
|
|
(23,189
|
)
|
|
(19,734
|
)
|
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(2,798
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)
|
|||||
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|
|
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|
||||||||||
Income before income taxes and non-controlling interests
|
|
44,321
|
|
|
53,060
|
|
|
147,265
|
|
|
142,333
|
|
|
124,649
|
|
|||||
Income tax provision
|
|
(12,935
|
)
|
|
(8,260
|
)
|
|
(10,178
|
)
|
|
(8,540
|
)
|
|
(8,738
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
31,386
|
|
|
44,800
|
|
|
137,087
|
|
|
133,793
|
|
|
115,911
|
|
|||||
Net income attributable to non-controlling interests
|
|
(2,693
|
)
|
|
(3,202
|
)
|
|
(2,603
|
)
|
|
(3,820
|
)
|
|
(5,284
|
)
|
|||||
|
|
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|
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|
|
|
|
|
|
||||||||||
Net income attributable to Altisource
|
|
$
|
28,693
|
|
|
$
|
41,598
|
|
|
$
|
134,484
|
|
|
$
|
129,973
|
|
|
$
|
110,627
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.53
|
|
|
$
|
2.13
|
|
|
$
|
6.22
|
|
|
$
|
5.63
|
|
|
$
|
4.74
|
|
Diluted
|
|
$
|
1.46
|
|
|
$
|
2.02
|
|
|
$
|
5.69
|
|
|
$
|
5.19
|
|
|
$
|
4.43
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transactions with related parties included above:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
—
|
|
|
N/A
(1)
|
|
|
$
|
666,800
|
|
|
$
|
502,087
|
|
|
$
|
338,227
|
|
|
Cost of revenue
|
|
—
|
|
|
N/A
(1)
|
|
|
38,610
|
|
|
19,983
|
|
|
13,469
|
|
|||||
Selling, general and administrative expenses
|
|
—
|
|
|
N/A
(1)
|
|
|
(268
|
)
|
|
569
|
|
|
(542
|
)
|
|||||
Other income
|
|
—
|
|
|
N/A
(1)
|
|
|
—
|
|
|
773
|
|
|
86
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP Financial Measures
(2)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income attributable to Altisource
|
|
$
|
90,095
|
|
|
$
|
143,475
|
|
|
$
|
169,141
|
|
|
$
|
156,458
|
|
|
$
|
115,304
|
|
Adjusted diluted earnings per share
|
|
$
|
4.59
|
|
|
$
|
6.96
|
|
|
$
|
7.16
|
|
|
$
|
6.25
|
|
|
$
|
4.62
|
|
(1)
|
Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen and Chairman of each of HLSS, Residential and AAMC. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, HLSS, Residential and AAMC and is no longer a member of the Board of Directors of any of these companies. Consequently, as of January 16, 2015, these companies are no longer related parties of Altisource, as defined by Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) Topic 850,
Related Party Disclosures
. The disclosures in the table above are limited to the periods that each of Ocwen, HLSS, Residential and AAMC were related parties of Altisource and are not reflective of current activities with these former related parties. See
Note 4
to the consolidated financial statements for more details and financial information for the period from January 1, 2015 to January 16, 2015.
|
(2)
|
Theses are non-GAAP measures that are defined and reconciled to the corresponding GAAP measures on pages
25
and
26
.
|
|
|
December 31,
|
||||||||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
149,294
|
|
|
$
|
179,327
|
|
|
$
|
161,361
|
|
|
$
|
130,324
|
|
|
$
|
105,502
|
|
Available for sale securities
|
|
45,754
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Accounts receivable, net
|
|
87,821
|
|
|
105,023
|
|
|
112,183
|
|
|
104,787
|
|
|
88,955
|
|
|||||
Premises and equipment, net
|
|
103,473
|
|
|
119,121
|
|
|
127,759
|
|
|
87,252
|
|
|
50,399
|
|
|||||
Goodwill
|
|
86,283
|
|
|
82,801
|
|
|
90,851
|
|
|
99,414
|
|
|
14,915
|
|
|||||
Intangible assets, net
|
|
155,432
|
|
|
197,003
|
|
|
245,246
|
|
|
276,162
|
|
|
56,586
|
|
|||||
Loan to Ocwen
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,000
|
|
|||||
Total assets
|
|
689,212
|
|
|
721,798
|
|
|
780,122
|
|
|
723,365
|
|
|
424,966
|
|
|||||
Long-term debt, net (including current portion)
|
|
473,545
|
|
|
528,178
|
|
|
580,515
|
|
|
388,569
|
|
|
193,767
|
|
|||||
Capital lease obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|||||
Total liabilities
|
|
627,018
|
|
|
669,528
|
|
|
738,679
|
|
|
565,624
|
|
|
265,137
|
|
|
|
For the years ended December 31,
|
||||||||||||||||||
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Altisource
|
|
$
|
28,693
|
|
|
$
|
41,598
|
|
|
$
|
134,484
|
|
|
$
|
129,973
|
|
|
$
|
110,627
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense, net of tax
|
|
36,819
|
|
|
38,187
|
|
|
35,076
|
|
|
26,485
|
|
|
4,677
|
|
|||||
Net litigation settlement loss, net of tax
|
|
24,583
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Impairment loss, net of tax
|
|
—
|
|
|
70,630
|
|
|
34,884
|
|
|
—
|
|
|
—
|
|
|||||
Gain on Equator Earn Out, net of tax
|
|
—
|
|
|
(6,940
|
)
|
|
(35,303
|
)
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income attributable to Altisource
|
|
$
|
90,095
|
|
|
$
|
143,475
|
|
|
$
|
169,141
|
|
|
$
|
156,458
|
|
|
$
|
115,304
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
|
$
|
1.46
|
|
|
$
|
2.02
|
|
|
$
|
5.69
|
|
|
$
|
5.19
|
|
|
$
|
4.43
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense, net of tax, per diluted share
|
|
1.88
|
|
|
1.85
|
|
|
1.48
|
|
|
1.06
|
|
|
0.19
|
|
|||||
Net litigation settlement loss, net of tax, per diluted share
|
|
1.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Impairment loss, net of tax, per diluted share
|
|
—
|
|
|
3.43
|
|
|
1.48
|
|
|
—
|
|
|
—
|
|
|||||
Gain on Equator Earn Out, net of tax, per diluted share
|
|
—
|
|
|
(0.34
|
)
|
|
(1.49
|
)
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted diluted earnings per share
|
|
$
|
4.59
|
|
|
$
|
6.96
|
|
|
$
|
7.16
|
|
|
$
|
6.25
|
|
|
$
|
4.62
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of the impact of intangible asset amortization expense, net of tax
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense
|
|
$
|
47,576
|
|
|
$
|
41,135
|
|
|
$
|
37,680
|
|
|
$
|
28,176
|
|
|
$
|
5,030
|
|
Tax benefit from intangible asset amortization
|
|
(10,757
|
)
|
|
(2,948
|
)
|
|
(2,604
|
)
|
|
(1,691
|
)
|
|
(353
|
)
|
|||||
Intangible asset amortization expense, net of tax
|
|
36,819
|
|
|
38,187
|
|
|
35,076
|
|
|
26,485
|
|
|
4,677
|
|
|||||
Diluted share count
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|
25,053
|
|
|
24,962
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense, net of tax,
per diluted share
|
|
$
|
1.88
|
|
|
$
|
1.85
|
|
|
$
|
1.48
|
|
|
$
|
1.06
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of the impact of net litigation settlement loss,
net of tax
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net litigation settlement loss
|
|
$
|
28,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Tax benefit from net litigation settlement loss
|
|
(3,417
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net litigation settlement loss, net of tax
|
|
24,583
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Diluted share count
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|
25,053
|
|
|
24,962
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net litigation settlement loss, net of tax, per diluted share
|
|
$
|
1.25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of the impact of impairment loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment loss
|
|
$
|
—
|
|
|
$
|
71,785
|
|
|
$
|
37,473
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Tax benefit from impairment loss
|
|
—
|
|
|
(1,155
|
)
|
|
(2,589
|
)
|
|
—
|
|
|
—
|
|
|||||
Impairment loss, net of tax
|
|
—
|
|
|
70,630
|
|
|
34,884
|
|
|
—
|
|
|
—
|
|
|||||
Diluted share count
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|
25,053
|
|
|
24,962
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment loss, net of tax, per diluted share
|
|
$
|
—
|
|
|
$
|
3.43
|
|
|
$
|
1.48
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of gain on Equator Earn Out, net of tax
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gain on Equator Earn Out
|
|
$
|
—
|
|
|
$
|
(7,591
|
)
|
|
$
|
(37,924
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Tax provision from the gain on Equator Earn Out
|
|
—
|
|
|
651
|
|
|
2,621
|
|
|
—
|
|
|
—
|
|
|||||
Gain on Equator Earn Out, net of tax
|
|
—
|
|
|
(6,940
|
)
|
|
(35,303
|
)
|
|
—
|
|
|
—
|
|
|||||
Diluted share count
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|
25,053
|
|
|
24,962
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gain on Equator Earn Out, net of tax, per diluted share
|
|
$
|
—
|
|
|
$
|
(0.34
|
)
|
|
$
|
(1.49
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
The average number of loans serviced by Ocwen on REALServicing
®
was
1.5 million
for the year ended
December 31, 2016
compared to
2.0 million
and
2.2 million
for the years ended
December 31, 2015
and
2014
, respectively. The average number of delinquent non-GSE loans serviced by Ocwen on REALServicing was
219 thousand
for the year ended
December 31, 2016
compared to
279 thousand
and
352 thousand
for the years ended
December 31, 2015
and
2014
, respectively;
|
•
|
In the fourth quarter of 2016, we recorded a litigation settlement loss of
$28.0 million
, net of a
$4.0 million
insurance recovery, related to an agreed settlement of a class action lawsuit, subject to final court approval;
|
•
|
During the years ended
December 31, 2016
and 2015, we repurchased portions of our senior secured term loan with aggregate par values of
$51.0 million
(at a weighted average discount of
13.2%
) and
$49.0 million
(at a weighted average discount of
10.3%
), respectively, recognizing net gains on the early extinguishment of debt of
$5.5 million
and
$3.8 million
, respectively (no comparative amounts in 2014);
|
•
|
During the year ended
December 31, 2016
, we purchased
4.1 million
shares of Residential common stock for
$48.2 million
, incurred expenses of
$3.4 million
and earned dividends of
$2.3 million
related to this investment (no comparative amounts in 2015);
|
•
|
In the fourth quarter of 2015, we recorded non-cash impairment losses of
$71.8 million
in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen;
|
•
|
On July 29, 2016, we acquired certain assets and assumed certain liabilities of Granite for
$9.5 million
;
|
•
|
On October 9, 2015, we acquired RentRange and Investability for
$24.8 million
composed of
$17.5 million
in cash at closing and
247 thousand
shares of restricted common stock of the Company with a value of
$7.3 million
as of the closing date;
|
•
|
On July 17, 2015, we acquired CastleLine for
$33.4 million
. The purchase consideration was composed of
$12.3 million
of cash at closing,
$10.5 million
of cash payable over four years from the acquisition date and
495 thousand
shares of restricted common stock of the Company with a value of
$14.4 million
as of the closing date. Of the cash payable following acquisition,
$3.8 million
is contingent on certain future employment conditions of certain of the sellers, and therefore excluded from the purchase price;
|
•
|
In 2015, we paid the former owners of Equator
$0.5 million
to extinguish any liability for the Equator Earn Out. In connection with this settlement, we reduced the liability for the Equator Earn Out to
$0
and recognized a
$7.6 million
increase in earnings;
|
•
|
During 2015, we recognized a loss on the sale of equity securities of HLSS, net of dividends received, of $1.9 million;
|
•
|
Effective March 31, 2015, we terminated the Data Access and Services Agreement with Ocwen (“Data Access Agreement”);
|
•
|
On November 21, 2014, we acquired Owners for a purchase price of
$19.8 million
;
|
•
|
In the fourth quarter of 2014, we discontinued our lender placed insurance brokerage line of business;
|
•
|
On September 12, 2014, we acquired Mortgage Builder for an initial purchase price of
$15.7 million
;
|
•
|
On August 1, 2014, we amended our senior secured term loan agreement and increased our borrowings by
$200.0 million
to
$594.5 million
;
|
•
|
Bad debt expense was higher in 2014, driven primarily from the default management services business. A change in many of our default management services customers’ business models and fourth quarter 2014 discussions with these customers led us to believe that a portion of the accounts receivable balance was no longer collectible; and
|
•
|
The effective income tax rates for the years ended
December 31, 2016
, 2015 and 2014 were
29.2%
,
15.6%
and
6.9%
, respectively. The variability in the effective income tax rate is primarily from changes in the mix of taxable income across the jurisdictions in which we operate.
|
(in thousands, except per share data)
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage Services
|
$
|
749,944
|
|
|
11
|
|
|
$
|
676,222
|
|
|
4
|
|
|
$
|
653,093
|
|
Financial Services
|
74,243
|
|
|
(16
|
)
|
|
88,328
|
|
|
(10
|
)
|
|
98,312
|
|
|||
Technology Services
|
160,101
|
|
|
(26
|
)
|
|
215,482
|
|
|
(5
|
)
|
|
227,300
|
|
|||
Eliminations
|
(41,689
|
)
|
|
7
|
|
|
(39,112
|
)
|
|
(2
|
)
|
|
(40,026
|
)
|
|||
Total service revenue
|
942,599
|
|
|
—
|
|
|
940,920
|
|
|
—
|
|
|
938,679
|
|
|||
Reimbursable expenses
|
52,011
|
|
|
(52
|
)
|
|
107,344
|
|
|
(22
|
)
|
|
137,634
|
|
|||
Non-controlling interests
|
2,693
|
|
|
(16
|
)
|
|
3,202
|
|
|
23
|
|
|
2,603
|
|
|||
Total revenue
|
997,303
|
|
|
(5
|
)
|
|
1,051,466
|
|
|
(3
|
)
|
|
1,078,916
|
|
|||
Cost of revenue
|
690,045
|
|
|
—
|
|
|
687,327
|
|
|
(3
|
)
|
|
707,180
|
|
|||
Gross profit
|
307,258
|
|
|
(16
|
)
|
|
364,139
|
|
|
(2
|
)
|
|
371,736
|
|
|||
Selling, general and administrative expenses
|
214,155
|
|
|
(3
|
)
|
|
220,868
|
|
|
9
|
|
|
201,733
|
|
|||
Litigation settlement loss, net of $4,000
insurance recovery
|
28,000
|
|
|
N/M
|
|
|
—
|
|
|
N/M
|
|
|
—
|
|
|||
Impairment losses
|
—
|
|
|
(100
|
)
|
|
71,785
|
|
|
92
|
|
|
37,473
|
|
|||
Change in the fair value of Equator Earn Out
|
—
|
|
|
(100
|
)
|
|
(7,591
|
)
|
|
(80
|
)
|
|
(37,924
|
)
|
|||
Income from operations
|
65,103
|
|
|
(18
|
)
|
|
79,077
|
|
|
(54
|
)
|
|
170,454
|
|
|||
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(24,412
|
)
|
|
(13
|
)
|
|
(28,208
|
)
|
|
21
|
|
|
(23,363
|
)
|
|||
Other income (expense), net
|
3,630
|
|
|
66
|
|
|
2,191
|
|
|
N/M
|
|
|
174
|
|
|||
Total other income (expense), net
|
(20,782
|
)
|
|
(20
|
)
|
|
(26,017
|
)
|
|
12
|
|
|
(23,189
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes and non-controlling interests
|
44,321
|
|
|
(16
|
)
|
|
53,060
|
|
|
(64
|
)
|
|
147,265
|
|
|||
Income tax provision
|
(12,935
|
)
|
|
57
|
|
|
(8,260
|
)
|
|
(19
|
)
|
|
(10,178
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
31,386
|
|
|
(30
|
)
|
|
44,800
|
|
|
(67
|
)
|
|
137,087
|
|
|||
Net income attributable to non-controlling interests
|
(2,693
|
)
|
|
(16
|
)
|
|
(3,202
|
)
|
|
23
|
|
|
(2,603
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Altisource
|
$
|
28,693
|
|
|
(31
|
)
|
|
$
|
41,598
|
|
|
(69
|
)
|
|
$
|
134,484
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit/service revenue
|
33
|
%
|
|
|
|
|
39
|
%
|
|
|
|
40
|
%
|
||||
Income from operations/service revenue
|
7
|
%
|
|
|
|
|
8
|
%
|
|
|
|
18
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.53
|
|
|
(28
|
)
|
|
$
|
2.13
|
|
|
(66
|
)
|
|
$
|
6.22
|
|
Diluted
|
$
|
1.46
|
|
|
(28
|
)
|
|
$
|
2.02
|
|
|
(64
|
)
|
|
$
|
5.69
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Financial Measures
(1)
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income attributable to Altisource
|
$
|
90,095
|
|
|
(37
|
)
|
|
$
|
143,475
|
|
|
(15
|
)
|
|
$
|
169,141
|
|
Adjusted diluted earnings per share
|
$
|
4.59
|
|
|
(34
|
)
|
|
$
|
6.96
|
|
|
(3
|
)
|
|
$
|
7.16
|
|
(1)
|
These are non-GAAP measures that are defined and reconciled to the corresponding GAAP measures on pages
25
and
26
.
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
264,796
|
|
|
1
|
|
|
$
|
261,839
|
|
|
2
|
|
|
$
|
255,889
|
|
Outside fees and services
|
|
302,156
|
|
|
22
|
|
|
248,278
|
|
|
2
|
|
|
243,325
|
|
|||
Reimbursable expenses
|
|
52,011
|
|
|
(52
|
)
|
|
107,344
|
|
|
(22
|
)
|
|
137,634
|
|
|||
Technology and telecommunications
|
|
44,295
|
|
|
3
|
|
|
43,177
|
|
|
(12
|
)
|
|
48,834
|
|
|||
Depreciation and amortization
|
|
26,787
|
|
|
—
|
|
|
26,689
|
|
|
24
|
|
|
21,498
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
|
$
|
690,045
|
|
|
—
|
|
|
$
|
687,327
|
|
|
(3
|
)
|
|
$
|
707,180
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
55,577
|
|
|
1
|
|
|
$
|
54,897
|
|
|
22
|
|
|
$
|
45,098
|
|
Professional services
|
|
23,284
|
|
|
—
|
|
|
23,183
|
|
|
25
|
|
|
18,598
|
|
|||
Occupancy related costs
|
|
37,370
|
|
|
(6
|
)
|
|
39,917
|
|
|
4
|
|
|
38,262
|
|
|||
Amortization of intangible assets
|
|
47,576
|
|
|
16
|
|
|
41,135
|
|
|
9
|
|
|
37,680
|
|
|||
Depreciation and amortization
|
|
10,001
|
|
|
2
|
|
|
9,781
|
|
|
30
|
|
|
7,548
|
|
|||
Marketing costs
|
|
27,847
|
|
|
1
|
|
|
27,499
|
|
|
14
|
|
|
24,130
|
|
|||
Other
|
|
12,500
|
|
|
(49
|
)
|
|
24,456
|
|
|
(20
|
)
|
|
30,417
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
|
$
|
214,155
|
|
|
(3
|
)
|
|
$
|
220,868
|
|
|
9
|
|
|
$
|
201,733
|
|
|
|
For the year ended December 31, 2016
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue
|
|
$
|
749,944
|
|
|
$
|
74,243
|
|
|
$
|
160,101
|
|
|
$
|
(41,689
|
)
|
|
$
|
942,599
|
|
Reimbursable expenses
|
|
51,902
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
52,011
|
|
|||||
Non-controlling interests
|
|
2,693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,693
|
|
|||||
|
|
804,539
|
|
|
74,352
|
|
|
160,101
|
|
|
(41,689
|
)
|
|
997,303
|
|
|||||
Cost of revenue
|
|
514,832
|
|
|
53,841
|
|
|
159,869
|
|
|
(38,497
|
)
|
|
690,045
|
|
|||||
Gross profit (loss)
|
|
289,707
|
|
|
20,511
|
|
|
232
|
|
|
(3,192
|
)
|
|
307,258
|
|
|||||
Selling, general and administrative expenses
|
|
108,987
|
|
|
17,768
|
|
|
27,811
|
|
|
59,589
|
|
|
214,155
|
|
|||||
Litigation settlement loss, net of $4,000
insurance recovery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,000
|
|
|
28,000
|
|
|||||
Income (loss) from operations
|
|
180,720
|
|
|
2,743
|
|
|
(27,579
|
)
|
|
(90,781
|
)
|
|
65,103
|
|
|||||
Other income (expense), net
|
|
43
|
|
|
92
|
|
|
66
|
|
|
(20,983
|
)
|
|
(20,782
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
180,763
|
|
|
$
|
2,835
|
|
|
$
|
(27,513
|
)
|
|
$
|
(111,764
|
)
|
|
$
|
44,321
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit/service revenue
|
|
39
|
%
|
|
28
|
%
|
|
—
|
%
|
|
N/M
|
|
|
33
|
%
|
|||||
Income (loss) from operations/service revenue
|
|
24
|
%
|
|
4
|
%
|
|
(17
|
)%
|
|
N/M
|
|
|
7
|
%
|
|
|
For the year ended December 31, 2015
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service revenue
|
|
$
|
676,222
|
|
|
$
|
88,328
|
|
|
$
|
215,482
|
|
|
$
|
(39,112
|
)
|
|
$
|
940,920
|
|
Reimbursable expenses
|
|
107,224
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
107,344
|
|
|||||
Non-controlling interests
|
|
3,202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,202
|
|
|||||
|
|
786,648
|
|
|
88,448
|
|
|
215,482
|
|
|
(39,112
|
)
|
|
1,051,466
|
|
|||||
Cost of revenue
|
|
474,169
|
|
|
60,806
|
|
|
187,835
|
|
|
(35,483
|
)
|
|
687,327
|
|
|||||
Gross profit (loss)
|
|
312,479
|
|
|
27,642
|
|
|
27,647
|
|
|
(3,629
|
)
|
|
364,139
|
|
|||||
Selling, general and administrative expenses
|
|
105,153
|
|
|
18,707
|
|
|
29,902
|
|
|
67,106
|
|
|
220,868
|
|
|||||
Impairment losses
|
|
—
|
|
|
—
|
|
|
71,785
|
|
|
—
|
|
|
71,785
|
|
|||||
Change in the fair value of Equator Earn Out
|
|
—
|
|
|
—
|
|
|
(7,591
|
)
|
|
—
|
|
|
(7,591
|
)
|
|||||
Income (loss) from operations
|
|
207,326
|
|
|
8,935
|
|
|
(66,449
|
)
|
|
(70,735
|
)
|
|
79,077
|
|
|||||
Other income (expense), net
|
|
506
|
|
|
58
|
|
|
61
|
|
|
(26,642
|
)
|
|
(26,017
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
207,832
|
|
|
$
|
8,993
|
|
|
$
|
(66,388
|
)
|
|
$
|
(97,377
|
)
|
|
$
|
53,060
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit/service revenue
|
|
46
|
%
|
|
31
|
%
|
|
13
|
%
|
|
N/M
|
|
|
39
|
%
|
|||||
Income (loss) from operations/service revenue
|
|
31
|
%
|
|
10
|
%
|
|
(31
|
)%
|
|
N/M
|
|
|
8
|
%
|
|
|
For the year ended December 31, 2014
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service revenue
|
|
$
|
653,093
|
|
|
$
|
98,312
|
|
|
$
|
227,300
|
|
|
$
|
(40,026
|
)
|
|
$
|
938,679
|
|
Reimbursable expenses
|
|
137,447
|
|
|
187
|
|
|
—
|
|
|
—
|
|
|
137,634
|
|
|||||
Non-controlling interests
|
|
2,603
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,603
|
|
|||||
|
|
793,143
|
|
|
98,499
|
|
|
227,300
|
|
|
(40,026
|
)
|
|
1,078,916
|
|
|||||
Cost of revenue
|
|
486,387
|
|
|
64,338
|
|
|
192,426
|
|
|
(35,971
|
)
|
|
707,180
|
|
|||||
Gross profit (loss)
|
|
306,756
|
|
|
34,161
|
|
|
34,874
|
|
|
(4,055
|
)
|
|
371,736
|
|
|||||
Selling, general and administrative expenses
|
|
94,686
|
|
|
18,791
|
|
|
32,393
|
|
|
55,863
|
|
|
201,733
|
|
|||||
Impairment losses
|
|
—
|
|
|
—
|
|
|
37,473
|
|
|
—
|
|
|
37,473
|
|
|||||
Change in the fair value of Equator Earn Out
|
|
—
|
|
|
—
|
|
|
(37,924
|
)
|
|
—
|
|
|
(37,924
|
)
|
|||||
Income (loss) from operations
|
|
212,070
|
|
|
15,370
|
|
|
2,932
|
|
|
(59,918
|
)
|
|
170,454
|
|
|||||
Other income (expense), net
|
|
204
|
|
|
62
|
|
|
(31
|
)
|
|
(23,424
|
)
|
|
(23,189
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
212,274
|
|
|
$
|
15,432
|
|
|
$
|
2,901
|
|
|
$
|
(83,342
|
)
|
|
$
|
147,265
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit/service revenue
|
|
47
|
%
|
|
35
|
%
|
|
15
|
%
|
|
N/M
|
|
|
40
|
%
|
|||||
Income from operations/service revenue
|
|
32
|
%
|
|
16
|
%
|
|
1
|
%
|
|
N/M
|
|
|
18
|
%
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset management services
|
|
$
|
557,419
|
|
|
20
|
|
|
$
|
463,780
|
|
|
30
|
|
|
$
|
356,433
|
|
Insurance services
|
|
89,084
|
|
|
(8
|
)
|
|
96,688
|
|
|
(38
|
)
|
|
154,830
|
|
|||
Residential property valuation
|
|
58,273
|
|
|
(14
|
)
|
|
67,672
|
|
|
(33
|
)
|
|
101,173
|
|
|||
Default management services
|
|
19,022
|
|
|
(29
|
)
|
|
26,930
|
|
|
18
|
|
|
22,728
|
|
|||
Origination services
|
|
26,146
|
|
|
24
|
|
|
21,152
|
|
|
18
|
|
|
17,929
|
|
|||
Total service revenue
|
|
749,944
|
|
|
11
|
|
|
676,222
|
|
|
4
|
|
|
653,093
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset management services
|
|
41,341
|
|
|
(57
|
)
|
|
96,761
|
|
|
(26
|
)
|
|
130,864
|
|
|||
Insurance services
|
|
7,961
|
|
|
7
|
|
|
7,436
|
|
|
69
|
|
|
4,408
|
|
|||
Default management services
|
|
2,321
|
|
|
(19
|
)
|
|
2,871
|
|
|
41
|
|
|
2,032
|
|
|||
Origination services
|
|
279
|
|
|
79
|
|
|
156
|
|
|
9
|
|
|
143
|
|
|||
Total reimbursable expenses
|
|
51,902
|
|
|
(52
|
)
|
|
107,224
|
|
|
(22
|
)
|
|
137,447
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests
|
|
2,693
|
|
|
(16
|
)
|
|
3,202
|
|
|
23
|
|
|
2,603
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
804,539
|
|
|
2
|
|
|
$
|
786,648
|
|
|
(1
|
)
|
|
$
|
793,143
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
117,234
|
|
|
37
|
|
|
$
|
85,474
|
|
|
12
|
|
|
$
|
76,125
|
|
Outside fees and services
|
|
299,213
|
|
|
22
|
|
|
245,739
|
|
|
2
|
|
|
240,070
|
|
|||
Reimbursable expenses
|
|
51,902
|
|
|
(52
|
)
|
|
107,224
|
|
|
(22
|
)
|
|
137,447
|
|
|||
Technology and telecommunications
|
|
42,546
|
|
|
32
|
|
|
32,122
|
|
|
6
|
|
|
30,305
|
|
|||
Depreciation and amortization
|
|
3,937
|
|
|
9
|
|
|
3,610
|
|
|
48
|
|
|
2,440
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
|
$
|
514,832
|
|
|
9
|
|
|
$
|
474,169
|
|
|
(3
|
)
|
|
$
|
486,387
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
9,722
|
|
|
133
|
|
|
$
|
4,168
|
|
|
141
|
|
|
$
|
1,726
|
|
Professional services
|
|
10,933
|
|
|
(4
|
)
|
|
11,344
|
|
|
37
|
|
|
8,295
|
|
|||
Occupancy related costs
|
|
13,464
|
|
|
14
|
|
|
11,789
|
|
|
17
|
|
|
10,085
|
|
|||
Amortization of intangible assets
|
|
39,949
|
|
|
26
|
|
|
31,601
|
|
|
14
|
|
|
27,770
|
|
|||
Depreciation and amortization
|
|
2,979
|
|
|
21
|
|
|
2,457
|
|
|
21
|
|
|
2,031
|
|
|||
Marketing costs
|
|
26,572
|
|
|
8
|
|
|
24,559
|
|
|
3
|
|
|
23,777
|
|
|||
Other
|
|
5,368
|
|
|
(72
|
)
|
|
19,235
|
|
|
(8
|
)
|
|
21,002
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
|
$
|
108,987
|
|
|
4
|
|
|
$
|
105,153
|
|
|
11
|
|
|
$
|
94,686
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer relationship management
|
|
$
|
36,977
|
|
|
(26
|
)
|
|
$
|
50,294
|
|
|
(2
|
)
|
|
$
|
51,411
|
|
Asset recovery management
|
|
37,266
|
|
|
(2
|
)
|
|
38,034
|
|
|
(19
|
)
|
|
46,901
|
|
|||
Total service revenue
|
|
74,243
|
|
|
(16
|
)
|
|
88,328
|
|
|
(10
|
)
|
|
98,312
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset recovery management
|
|
109
|
|
|
(9
|
)
|
|
120
|
|
|
(36
|
)
|
|
187
|
|
|||
Total reimbursable expenses
|
|
109
|
|
|
(9
|
)
|
|
120
|
|
|
(36
|
)
|
|
187
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
74,352
|
|
|
(16
|
)
|
|
$
|
88,448
|
|
|
(10
|
)
|
|
$
|
98,499
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
40,683
|
|
|
(12
|
)
|
|
$
|
46,086
|
|
|
(2
|
)
|
|
$
|
47,063
|
|
Outside fees and services
|
|
3,050
|
|
|
13
|
|
|
2,703
|
|
|
(20
|
)
|
|
3,361
|
|
|||
Reimbursable expenses
|
|
109
|
|
|
(9
|
)
|
|
120
|
|
|
(36
|
)
|
|
187
|
|
|||
Technology and telecommunications
|
|
8,256
|
|
|
(18
|
)
|
|
10,033
|
|
|
(18
|
)
|
|
12,277
|
|
|||
Depreciation and amortization
|
|
1,743
|
|
|
(6
|
)
|
|
1,864
|
|
|
29
|
|
|
1,450
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
|
$
|
53,841
|
|
|
(11
|
)
|
|
$
|
60,806
|
|
|
(5
|
)
|
|
$
|
64,338
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
709
|
|
|
(13
|
)
|
|
$
|
819
|
|
|
22
|
|
|
$
|
672
|
|
Professional services
|
|
810
|
|
|
(35
|
)
|
|
1,245
|
|
|
26
|
|
|
988
|
|
|||
Occupancy related costs
|
|
7,598
|
|
|
2
|
|
|
7,420
|
|
|
3
|
|
|
7,193
|
|
|||
Amortization of intangible assets
|
|
3,883
|
|
|
(4
|
)
|
|
4,056
|
|
|
(24
|
)
|
|
5,355
|
|
|||
Depreciation and amortization
|
|
2,239
|
|
|
(8
|
)
|
|
2,427
|
|
|
30
|
|
|
1,870
|
|
|||
Other
|
|
2,529
|
|
|
(8
|
)
|
|
2,740
|
|
|
1
|
|
|
2,713
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
|
$
|
17,768
|
|
|
(5
|
)
|
|
$
|
18,707
|
|
|
—
|
|
|
$
|
18,791
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Software services
|
|
$
|
113,990
|
|
|
(24
|
)
|
|
$
|
149,291
|
|
|
(1
|
)
|
|
$
|
151,335
|
|
IT infrastructure services
|
|
46,111
|
|
|
(30
|
)
|
|
66,191
|
|
|
(13
|
)
|
|
75,965
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
160,101
|
|
|
(26
|
)
|
|
$
|
215,482
|
|
|
(5
|
)
|
|
$
|
227,300
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
106,879
|
|
|
(18
|
)
|
|
$
|
130,279
|
|
|
(2
|
)
|
|
$
|
132,701
|
|
Outside fees and services
|
|
25
|
|
|
9
|
|
|
23
|
|
|
N/M
|
|
|
—
|
|
|||
Technology and telecommunications
|
|
31,858
|
|
|
(12
|
)
|
|
36,318
|
|
|
(14
|
)
|
|
42,117
|
|
|||
Depreciation and amortization
|
|
21,107
|
|
|
(1
|
)
|
|
21,215
|
|
|
20
|
|
|
17,608
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
|
$
|
159,869
|
|
|
(15
|
)
|
|
$
|
187,835
|
|
|
(2
|
)
|
|
$
|
192,426
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
2,285
|
|
|
(30
|
)
|
|
$
|
3,259
|
|
|
(45
|
)
|
|
$
|
5,938
|
|
Professional services
|
|
3,439
|
|
|
132
|
|
|
1,484
|
|
|
116
|
|
|
686
|
|
|||
Occupancy related costs
|
|
11,489
|
|
|
(14
|
)
|
|
13,325
|
|
|
9
|
|
|
12,250
|
|
|||
Amortization of intangible assets
|
|
3,744
|
|
|
(32
|
)
|
|
5,478
|
|
|
20
|
|
|
4,555
|
|
|||
Depreciation and amortization
|
|
3,335
|
|
|
52
|
|
|
2,188
|
|
|
82
|
|
|
1,205
|
|
|||
Marketing costs
|
|
1,085
|
|
|
10
|
|
|
989
|
|
|
230
|
|
|
300
|
|
|||
Other
|
|
2,434
|
|
|
(23
|
)
|
|
3,179
|
|
|
(57
|
)
|
|
7,459
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
|
$
|
27,811
|
|
|
(7
|
)
|
|
$
|
29,902
|
|
|
(8
|
)
|
|
$
|
32,393
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
42,861
|
|
|
(8
|
)
|
|
$
|
46,651
|
|
|
27
|
|
|
$
|
36,762
|
|
Professional services
|
|
8,102
|
|
|
(11
|
)
|
|
9,110
|
|
|
6
|
|
|
8,629
|
|
|||
Occupancy related costs
|
|
4,819
|
|
|
(35
|
)
|
|
7,383
|
|
|
(15
|
)
|
|
8,734
|
|
|||
Depreciation and amortization
|
|
1,448
|
|
|
(47
|
)
|
|
2,709
|
|
|
11
|
|
|
2,442
|
|
|||
Marketing costs
|
|
157
|
|
|
(90
|
)
|
|
1,499
|
|
|
N/M
|
|
|
33
|
|
|||
Other
|
|
2,202
|
|
|
N/M
|
|
|
(246
|
)
|
|
(67
|
)
|
|
(737
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
|
59,589
|
|
|
(11
|
)
|
|
67,106
|
|
|
20
|
|
|
55,863
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Litigation settlement loss, net of $4,000
insurance recovery
|
|
28,000
|
|
|
N/M
|
|
|
—
|
|
|
N/M
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total other expenses, net
|
|
20,983
|
|
|
(21
|
)
|
|
26,642
|
|
|
14
|
|
|
23,424
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total corporate costs
|
|
$
|
108,572
|
|
|
16
|
|
|
$
|
93,748
|
|
|
18
|
|
|
$
|
79,287
|
|
(in thousands)
|
|
2016
|
|
% Increase (decrease)
|
|
2015
|
|
% Increase (decrease)
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income adjusted for non-cash items
|
|
$
|
115,470
|
|
|
(41
|
)
|
|
$
|
195,922
|
|
|
(13
|
)
|
|
$
|
224,673
|
|
Changes in operating assets and liabilities
|
|
11,348
|
|
|
N/M
|
|
|
(570
|
)
|
|
98
|
|
|
(27,180
|
)
|
|||
Net cash flows provided by operating activities
|
|
126,818
|
|
|
(35
|
)
|
|
195,352
|
|
|
(1
|
)
|
|
197,493
|
|
|||
Net cash flows used in investing activities
|
|
(80,223
|
)
|
|
(22
|
)
|
|
(65,995
|
)
|
|
35
|
|
|
(101,268
|
)
|
|||
Net cash flows used in financing activities
|
|
(76,628
|
)
|
|
31
|
|
|
(111,391
|
)
|
|
(71
|
)
|
|
(65,188
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
(30,033
|
)
|
|
(267
|
)
|
|
17,966
|
|
|
(42
|
)
|
|
31,037
|
|
|||
Cash and cash equivalents at the beginning of the period
|
|
179,327
|
|
|
11
|
|
|
161,361
|
|
|
24
|
|
|
130,324
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents at the end of the period
|
|
$
|
149,294
|
|
|
(17
|
)
|
|
$
|
179,327
|
|
|
11
|
|
|
$
|
161,361
|
|
|
|
Payments due by period
|
||||||||||||||||||
(in thousands)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-cancelable operating lease obligations
|
|
$
|
56,152
|
|
|
$
|
17,857
|
|
|
$
|
24,266
|
|
|
$
|
12,875
|
|
|
$
|
1,154
|
|
Long-term debt
|
|
479,653
|
|
|
5,945
|
|
|
11,890
|
|
|
461,818
|
|
|
—
|
|
|||||
Contractual interest payments
(1)
|
|
83,131
|
|
|
21,484
|
|
|
42,166
|
|
|
19,481
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
618,936
|
|
|
$
|
45,286
|
|
|
$
|
78,322
|
|
|
$
|
494,174
|
|
|
$
|
1,154
|
|
(1)
|
Represents estimated future interest payments on our senior secured term loan based on applicable interest rates as of
December 31, 2016
.
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Mortgage Services
|
|
60%
|
|
63%
|
|
67%
|
Financial Services
|
|
17%
|
|
21%
|
|
27%
|
Technology Services
|
|
42%
|
|
54%
|
|
42%
|
Consolidated revenue
|
|
56%
|
|
60%
|
|
60%
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
ASSETS
|
||||||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
149,294
|
|
|
$
|
179,327
|
|
Available for sale securities
|
|
45,754
|
|
|
—
|
|
||
Accounts receivable, net
|
|
87,821
|
|
|
105,023
|
|
||
Prepaid expenses and other current assets
|
|
42,608
|
|
|
21,751
|
|
||
Total current assets
|
|
325,477
|
|
|
306,101
|
|
||
|
|
|
|
|
||||
Premises and equipment, net
|
|
103,473
|
|
|
119,121
|
|
||
Goodwill
|
|
86,283
|
|
|
82,801
|
|
||
Intangible assets, net
|
|
155,432
|
|
|
197,003
|
|
||
Deferred tax assets, net
|
|
7,292
|
|
|
3,619
|
|
||
Other assets
|
|
11,255
|
|
|
13,153
|
|
||
|
|
|
|
|
||||
Total assets
|
|
$
|
689,212
|
|
|
$
|
721,798
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
$
|
83,135
|
|
|
$
|
91,871
|
|
Accrued litigation settlement (Note 23)
|
|
32,000
|
|
|
—
|
|
||
Current portion of long-term debt
|
|
5,945
|
|
|
5,945
|
|
||
Deferred revenue
|
|
8,797
|
|
|
15,060
|
|
||
Other current liabilities
|
|
19,061
|
|
|
16,266
|
|
||
Total current liabilities
|
|
148,938
|
|
|
129,142
|
|
||
|
|
|
|
|
||||
Long-term debt, less current portion
|
|
467,600
|
|
|
522,233
|
|
||
Other non-current liabilities
|
|
10,480
|
|
|
18,153
|
|
||
|
|
|
|
|
||||
Commitments, contingencies and regulatory matters (Note 23)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Equity:
|
|
|
|
|
||||
Common stock ($1.00 par value; 25,413 shares authorized and issued and 18,774 outstanding as of December 31, 2016; 25,413 shares authorized and issued and 19,021 outstanding as of December 31, 2015)
|
|
25,413
|
|
|
25,413
|
|
||
Additional paid-in capital
|
|
107,288
|
|
|
96,321
|
|
||
Retained earnings
|
|
333,786
|
|
|
369,270
|
|
||
Accumulated other comprehensive loss
|
|
(1,745
|
)
|
|
—
|
|
||
Treasury stock, at cost (6,639 shares as of December 31, 2016 and 6,392 shares as of December 31, 2015)
|
|
(403,953
|
)
|
|
(440,026
|
)
|
||
Altisource equity
|
|
60,789
|
|
|
50,978
|
|
||
|
|
|
|
|
||||
Non-controlling interests
|
|
1,405
|
|
|
1,292
|
|
||
Total equity
|
|
62,194
|
|
|
52,270
|
|
||
|
|
|
|
|
||||
Total liabilities and equity
|
|
$
|
689,212
|
|
|
$
|
721,798
|
|
|
|
For the years ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
997,303
|
|
|
$
|
1,051,466
|
|
|
$
|
1,078,916
|
|
Cost of revenue
|
|
690,045
|
|
|
687,327
|
|
|
707,180
|
|
|||
|
|
|
|
|
|
|
||||||
Gross profit
|
|
307,258
|
|
|
364,139
|
|
|
371,736
|
|
|||
Selling, general and administrative expenses
|
|
214,155
|
|
|
220,868
|
|
|
201,733
|
|
|||
Litigation settlement loss, net of $4,000 insurance recovery (Note 23)
|
|
28,000
|
|
|
—
|
|
|
—
|
|
|||
Impairment losses
|
|
—
|
|
|
71,785
|
|
|
37,473
|
|
|||
Change in the fair value of Equator Earn Out
|
|
—
|
|
|
(7,591
|
)
|
|
(37,924
|
)
|
|||
Income from operations
|
|
65,103
|
|
|
79,077
|
|
|
170,454
|
|
|||
Other income (expense), net:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(24,412
|
)
|
|
(28,208
|
)
|
|
(23,363
|
)
|
|||
Other income (expense), net
|
|
3,630
|
|
|
2,191
|
|
|
174
|
|
|||
Total other income (expense), net
|
|
(20,782
|
)
|
|
(26,017
|
)
|
|
(23,189
|
)
|
|||
|
|
|
|
|
|
|
||||||
Income before income taxes and non-controlling interests
|
|
44,321
|
|
|
53,060
|
|
|
147,265
|
|
|||
Income tax provision
|
|
(12,935
|
)
|
|
(8,260
|
)
|
|
(10,178
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net income
|
|
31,386
|
|
|
44,800
|
|
|
137,087
|
|
|||
Net income attributable to non-controlling interests
|
|
(2,693
|
)
|
|
(3,202
|
)
|
|
(2,603
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net income attributable to Altisource
|
|
$
|
28,693
|
|
|
$
|
41,598
|
|
|
$
|
134,484
|
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.53
|
|
|
$
|
2.13
|
|
|
$
|
6.22
|
|
Diluted
|
|
$
|
1.46
|
|
|
$
|
2.02
|
|
|
$
|
5.69
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
18,696
|
|
|
19,504
|
|
|
21,625
|
|
|||
Diluted
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|||
|
|
|
|
|
|
|
||||||
Comprehensive income:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
31,386
|
|
|
$
|
44,800
|
|
|
$
|
137,087
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
||||||
Unrealized loss on securities, net of income tax benefit of $720, $0, $0
|
|
(1,745
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Comprehensive income, net of tax
|
|
29,641
|
|
|
44,800
|
|
|
137,087
|
|
|||
Comprehensive income attributable to non-controlling interests
|
|
(2,693
|
)
|
|
(3,202
|
)
|
|
(2,603
|
)
|
|||
|
|
|
|
|
|
|
||||||
Comprehensive income attributable to Altisource
|
|
$
|
26,948
|
|
|
$
|
41,598
|
|
|
$
|
134,484
|
|
|
|
|
|
|
|
|
||||||
Transactions with related parties included above:
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
—
|
|
|
See Note 4
|
|
|
$
|
666,800
|
|
|
Cost of revenue
|
|
—
|
|
|
See Note 4
|
|
|
38,610
|
|
|||
Selling, general and administrative expenses
|
|
—
|
|
|
See Note 4
|
|
|
(268
|
)
|
|
Altisource Equity
|
|
Non-controlling interests
|
|
|
|||||||||||||||||||||||||
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive loss
|
|
Treasury stock, at cost
|
|
|
Total
|
||||||||||||||||||
|
Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2014
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
89,273
|
|
|
$
|
239,561
|
|
|
$
|
—
|
|
|
$
|
(197,548
|
)
|
|
$
|
1,042
|
|
|
$
|
157,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
134,484
|
|
|
—
|
|
|
—
|
|
|
2,603
|
|
|
137,087
|
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,596
|
)
|
|
(2,596
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
2,236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,236
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,078
|
)
|
|
—
|
|
|
8,766
|
|
|
—
|
|
|
2,688
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(255,713
|
)
|
|
—
|
|
|
(255,713
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2014
|
25,413
|
|
|
25,413
|
|
|
91,509
|
|
|
367,967
|
|
|
—
|
|
|
(444,495
|
)
|
|
1,049
|
|
|
41,443
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
41,598
|
|
|
—
|
|
|
—
|
|
|
3,202
|
|
|
44,800
|
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,959
|
)
|
|
(2,959
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
4,812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,812
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,292
|
)
|
|
—
|
|
|
9,682
|
|
|
—
|
|
|
1,390
|
|
|||||||
Issuance of restricted shares for acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,003
|
)
|
|
—
|
|
|
53,736
|
|
|
—
|
|
|
21,733
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58,949
|
)
|
|
—
|
|
|
(58,949
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2015
|
25,413
|
|
|
25,413
|
|
|
96,321
|
|
|
369,270
|
|
|
—
|
|
|
(440,026
|
)
|
|
1,292
|
|
|
52,270
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
28,693
|
|
|
—
|
|
|
—
|
|
|
2,693
|
|
|
31,386
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,745
|
)
|
|
—
|
|
|
—
|
|
|
(1,745
|
)
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,580
|
)
|
|
(2,580
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
6,188
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,188
|
|
|||||||
Excess tax benefit on stock-based compensation
|
—
|
|
|
—
|
|
|
4,779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,779
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
(64,177
|
)
|
|
—
|
|
|
73,735
|
|
|
—
|
|
|
9,558
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,662
|
)
|
|
—
|
|
|
(37,662
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2016
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
107,288
|
|
|
$
|
333,786
|
|
|
$
|
(1,745
|
)
|
|
$
|
(403,953
|
)
|
|
$
|
1,405
|
|
|
$
|
62,194
|
|
|
For the years ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
31,386
|
|
|
$
|
44,800
|
|
|
$
|
137,087
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
36,788
|
|
|
36,470
|
|
|
29,046
|
|
|||
Amortization of intangible assets
|
47,576
|
|
|
41,135
|
|
|
37,680
|
|
|||
Loss on HLSS equity securities and dividends received, net
|
—
|
|
|
1,854
|
|
|
—
|
|
|||
Change in the fair value of acquisition related contingent consideration
|
(3,555
|
)
|
|
(7,184
|
)
|
|
(37,924
|
)
|
|||
Impairment losses
|
—
|
|
|
71,785
|
|
|
37,473
|
|
|||
Share-based compensation expense
|
6,188
|
|
|
4,812
|
|
|
2,236
|
|
|||
Bad debt expense
|
1,829
|
|
|
5,514
|
|
|
16,257
|
|
|||
Gain on early extinguishment of debt
|
(5,464
|
)
|
|
(3,836
|
)
|
|
—
|
|
|||
Amortization of debt discount
|
413
|
|
|
498
|
|
|
317
|
|
|||
Amortization of debt issuance costs
|
1,141
|
|
|
1,374
|
|
|
1,151
|
|
|||
Deferred income taxes
|
(2,597
|
)
|
|
(1,326
|
)
|
|
1,166
|
|
|||
Loss on disposal of fixed assets
|
1,765
|
|
|
26
|
|
|
184
|
|
|||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
|
||||
Accounts receivable
|
15,980
|
|
|
2,401
|
|
|
(22,492
|
)
|
|||
Prepaid expenses and other current assets
|
(20,881
|
)
|
|
1,883
|
|
|
(12,501
|
)
|
|||
Other assets
|
1,053
|
|
|
2,993
|
|
|
(1,750
|
)
|
|||
Accounts payable and accrued expenses
|
(9,113
|
)
|
|
(14,483
|
)
|
|
24,285
|
|
|||
Other current and non-current liabilities
|
24,309
|
|
|
6,636
|
|
|
(14,722
|
)
|
|||
Net cash provided by operating activities
|
126,818
|
|
|
195,352
|
|
|
197,493
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Additions to premises and equipment
|
(23,269
|
)
|
|
(36,188
|
)
|
|
(64,846
|
)
|
|||
Acquisition of businesses, net of cash acquired
|
(9,409
|
)
|
|
(28,675
|
)
|
|
(34,720
|
)
|
|||
Purchase of available for sale securities
|
(48,219
|
)
|
|
(29,966
|
)
|
|
—
|
|
|||
Proceeds received from sale of and dividends from HLSS equity securities
|
—
|
|
|
28,112
|
|
|
—
|
|
|||
Change in restricted cash
|
674
|
|
|
722
|
|
|
(1,402
|
)
|
|||
Other investing activities
|
—
|
|
|
—
|
|
|
(300
|
)
|
|||
Net cash used in investing activities
|
(80,223
|
)
|
|
(65,995
|
)
|
|
(101,268
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
—
|
|
|
—
|
|
|
198,000
|
|
|||
Repayment and repurchases of long-term debt
|
(50,723
|
)
|
|
(50,373
|
)
|
|
(4,959
|
)
|
|||
Debt issuance costs
|
—
|
|
|
—
|
|
|
(2,608
|
)
|
|||
Proceeds from stock option exercises
|
9,558
|
|
|
1,390
|
|
|
2,688
|
|
|||
Excess tax benefit on stock-based compensation
|
4,779
|
|
|
—
|
|
|
—
|
|
|||
Purchase of treasury stock
|
(37,662
|
)
|
|
(58,949
|
)
|
|
(255,713
|
)
|
|||
Distributions to non-controlling interests
|
(2,580
|
)
|
|
(2,959
|
)
|
|
(2,596
|
)
|
|||
Other financing activities
|
—
|
|
|
(500
|
)
|
|
—
|
|
|||
Net cash used in financing activities
|
(76,628
|
)
|
|
(111,391
|
)
|
|
(65,188
|
)
|
|||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(30,033
|
)
|
|
17,966
|
|
|
31,037
|
|
|||
Cash and cash equivalents at the beginning of the period
|
179,327
|
|
|
161,361
|
|
|
130,324
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
149,294
|
|
|
$
|
179,327
|
|
|
$
|
161,361
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
||||
Interest paid
|
$
|
22,717
|
|
|
$
|
26,274
|
|
|
$
|
21,829
|
|
Income taxes paid, net
|
18,327
|
|
|
9,725
|
|
|
13,340
|
|
|||
|
|
|
|
|
|
||||||
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
||||
Acquisition of businesses with restricted shares
|
$
|
—
|
|
|
$
|
21,733
|
|
|
$
|
—
|
|
Increase (decrease) in payables for purchases of premises and equipment
|
404
|
|
|
(6,679
|
)
|
|
(2,328
|
)
|
|||
Decrease in acquisition of businesses from subsequent working capital true-ups
|
—
|
|
|
—
|
|
|
(3,711
|
)
|
Furniture and fixtures
|
5 years
|
Office equipment
|
5 years
|
Computer hardware
|
5 years
|
Computer software
|
3-7 years
|
Leasehold improvements
|
Shorter of useful life, 10 years or the term of the lease
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Mortgage Services
|
|
60%
|
|
63%
|
|
67%
|
Financial Services
|
|
17%
|
|
21%
|
|
27%
|
Technology Services
|
|
42%
|
|
54%
|
|
42%
|
Consolidated revenue
|
|
56%
|
|
60%
|
|
60%
|
(in thousands)
|
|
Initial purchase price allocation
|
||
|
|
|
||
Accounts receivable, net
|
|
$
|
1,024
|
|
Prepaid expenses
|
|
22
|
|
|
Other assets
|
|
25
|
|
|
Premises and equipment, net
|
|
299
|
|
|
Non-compete agreements
|
|
100
|
|
|
Trademarks and trade names
|
|
100
|
|
|
Customer relationships
|
|
3,400
|
|
|
Goodwill
|
|
4,827
|
|
|
|
|
9,797
|
|
|
Accounts payable and accrued expenses
|
|
(57
|
)
|
|
Deferred revenue
|
|
(192
|
)
|
|
|
|
|
||
Purchase price
|
|
$
|
9,548
|
|
(in thousands)
|
|
Initial purchase price allocation
|
|
Adjustments
|
|
Final purchase price allocation
|
||||||
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Accounts receivable, net
|
|
245
|
|
|
(76
|
)
|
|
169
|
|
|||
Premises and equipment, net
|
|
2,471
|
|
|
(1,067
|
)
|
|
1,404
|
|
|||
Other assets
|
|
199
|
|
|
(196
|
)
|
|
3
|
|
|||
Trademarks and trade names
|
|
1,205
|
|
|
—
|
|
|
1,205
|
|
|||
Databases/other
|
|
910
|
|
|
1,035
|
|
|
1,945
|
|
|||
Non-compete agreements
|
|
330
|
|
|
—
|
|
|
330
|
|
|||
Customer relationships
|
|
255
|
|
|
—
|
|
|
255
|
|
|||
Goodwill
|
|
19,565
|
|
|
50
|
|
|
19,615
|
|
|||
|
|
25,183
|
|
|
(254
|
)
|
|
24,929
|
|
|||
Accounts payable and accrued expenses
|
|
(391
|
)
|
|
46
|
|
|
(345
|
)
|
|||
|
|
|
|
|
|
|
||||||
Purchase price
|
|
$
|
24,792
|
|
|
$
|
(208
|
)
|
|
$
|
24,584
|
|
(in thousands)
|
|
Initial purchase price allocation
|
|
Adjustments
|
|
Final purchase price allocation
|
||||||
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
1,088
|
|
|
$
|
—
|
|
|
$
|
1,088
|
|
Accounts receivable, net
|
|
510
|
|
|
(410
|
)
|
|
100
|
|
|||
Prepaid expenses
|
|
66
|
|
|
(46
|
)
|
|
20
|
|
|||
Restricted cash
|
|
2,501
|
|
|
—
|
|
|
2,501
|
|
|||
Non-compete agreements
|
|
1,105
|
|
|
25
|
|
|
1,130
|
|
|||
Databases/other
|
|
465
|
|
|
1,335
|
|
|
1,800
|
|
|||
Customer relationships
|
|
395
|
|
|
—
|
|
|
395
|
|
|||
Trademarks and trade names
|
|
150
|
|
|
10
|
|
|
160
|
|
|||
Deferred taxes
|
|
—
|
|
|
356
|
|
|
356
|
|
|||
Goodwill
|
|
28,125
|
|
|
(1,395
|
)
|
|
26,730
|
|
|||
|
|
34,405
|
|
|
(125
|
)
|
|
34,280
|
|
|||
Accounts payable and accrued expenses
|
|
(875
|
)
|
|
38
|
|
|
(837
|
)
|
|||
Deferred revenue
|
|
(87
|
)
|
|
87
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Purchase price
|
|
$
|
33,443
|
|
|
$
|
—
|
|
|
$
|
33,443
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Billed
|
|
$
|
58,392
|
|
|
$
|
67,021
|
|
Unbilled
|
|
39,853
|
|
|
56,458
|
|
||
|
|
98,245
|
|
|
123,479
|
|
||
Less: allowance for doubtful accounts
|
|
(10,424
|
)
|
|
(18,456
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
87,821
|
|
|
$
|
105,023
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Maintenance agreements, current portion
|
|
$
|
6,590
|
|
|
$
|
7,000
|
|
Short-term investments in real estate
|
|
13,025
|
|
|
—
|
|
||
Income taxes receivable
|
|
5,186
|
|
|
633
|
|
||
Prepaid expenses
|
|
6,919
|
|
|
7,873
|
|
||
Litigation settlement insurance recovery (Note 23)
|
|
4,000
|
|
|
—
|
|
||
Other current assets
|
|
6,888
|
|
|
6,245
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
42,608
|
|
|
$
|
21,751
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Computer hardware and software
|
|
$
|
164,877
|
|
|
$
|
177,010
|
|
Office equipment and other
|
|
20,188
|
|
|
21,720
|
|
||
Furniture and fixtures
|
|
13,997
|
|
|
14,443
|
|
||
Leasehold improvements
|
|
33,808
|
|
|
35,503
|
|
||
|
|
232,870
|
|
|
248,676
|
|
||
Less: accumulated depreciation and amortization
|
|
(129,397
|
)
|
|
(129,555
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
103,473
|
|
|
$
|
119,121
|
|
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Balance January 1, 2015
|
|
$
|
32,733
|
|
|
$
|
2,378
|
|
|
$
|
55,740
|
|
|
$
|
90,851
|
|
Acquisition of CastleLine
|
|
28,125
|
|
|
—
|
|
|
—
|
|
|
28,125
|
|
||||
Acquisition of RentRange and Investability
|
|
19,565
|
|
|
—
|
|
|
—
|
|
|
19,565
|
|
||||
Impairment of Technology Services goodwill
|
|
—
|
|
|
—
|
|
|
(55,740
|
)
|
|
(55,740
|
)
|
||||
Balance, December 31, 2015
|
|
80,423
|
|
|
2,378
|
|
|
—
|
|
|
82,801
|
|
||||
CastleLine purchase price allocation adjustment
(1)
|
|
(1,395
|
)
|
|
—
|
|
|
—
|
|
|
(1,395
|
)
|
||||
RentRange and Investability purchase price allocation adjustment
(2)
|
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
Acquisition of Granite
|
|
4,827
|
|
|
—
|
|
|
—
|
|
|
4,827
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Balance, December 31, 2016
|
|
$
|
83,905
|
|
|
$
|
2,378
|
|
|
$
|
—
|
|
|
$
|
86,283
|
|
(1)
|
During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See
Note 5
.
|
(2)
|
During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See
Note 5
.
|
|
|
Weighted average estimated useful life
(in years)
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net book value
|
||||||||||||||||||
(in thousands)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Definite lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks and trade names
|
|
13
|
|
$
|
15,354
|
|
|
$
|
15,244
|
|
|
$
|
(7,724
|
)
|
|
$
|
(6,491
|
)
|
|
$
|
7,630
|
|
|
$
|
8,753
|
|
Customer related intangible assets
|
|
10
|
|
277,828
|
|
|
274,428
|
|
|
(156,980
|
)
|
|
(113,725
|
)
|
|
120,848
|
|
|
160,703
|
|
||||||
Operating agreement
|
|
20
|
|
35,000
|
|
|
35,000
|
|
|
(12,104
|
)
|
|
(10,354
|
)
|
|
22,896
|
|
|
24,646
|
|
||||||
Non-compete agreements
|
|
4
|
|
1,560
|
|
|
1,435
|
|
|
(507
|
)
|
|
(115
|
)
|
|
1,053
|
|
|
1,320
|
|
||||||
Intellectual property
|
|
10
|
|
300
|
|
|
300
|
|
|
(85
|
)
|
|
(55
|
)
|
|
215
|
|
|
245
|
|
||||||
Other intangible assets
|
|
5
|
|
3,745
|
|
|
1,375
|
|
|
(955
|
)
|
|
(39
|
)
|
|
2,790
|
|
|
1,336
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
|
|
$
|
333,787
|
|
|
$
|
327,782
|
|
|
$
|
(178,355
|
)
|
|
$
|
(130,779
|
)
|
|
$
|
155,432
|
|
|
$
|
197,003
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Security deposits
|
|
$
|
5,508
|
|
|
$
|
5,341
|
|
Maintenance agreements, non-current portion
|
|
853
|
|
|
1,570
|
|
||
Restricted cash
|
|
4,127
|
|
|
4,801
|
|
||
Other
|
|
767
|
|
|
1,441
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
11,255
|
|
|
$
|
13,153
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Accounts payable
|
|
$
|
8,787
|
|
|
$
|
11,644
|
|
Accrued expenses - general
|
|
26,426
|
|
|
30,347
|
|
||
Accrued salaries and benefits
|
|
47,614
|
|
|
46,564
|
|
||
Income taxes payable
|
|
308
|
|
|
3,316
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
83,135
|
|
|
$
|
91,871
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Unfunded cash account balances
|
|
$
|
7,137
|
|
|
$
|
6,395
|
|
Other
|
|
11,924
|
|
|
9,871
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
19,061
|
|
|
$
|
16,266
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Senior secured term loan
|
|
$
|
479,653
|
|
|
$
|
536,598
|
|
Less: debt issuance costs, net
|
|
(4,486
|
)
|
|
(6,184
|
)
|
||
Less: unamortized discount, net
|
|
(1,622
|
)
|
|
(2,236
|
)
|
||
Net long-term debt
|
|
473,545
|
|
|
528,178
|
|
||
Less: current portion
|
|
(5,945
|
)
|
|
(5,945
|
)
|
||
|
|
|
|
|
||||
Long-term debt, less current portion
|
|
$
|
467,600
|
|
|
$
|
522,233
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Acquisition related obligations
|
|
$
|
—
|
|
|
$
|
8,422
|
|
Other non-current liabilities
|
|
10,480
|
|
|
9,731
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
10,480
|
|
|
$
|
18,153
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||||||||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
|
$
|
149,294
|
|
|
$
|
149,294
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179,327
|
|
|
$
|
179,327
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
|
4,127
|
|
|
4,127
|
|
|
—
|
|
|
—
|
|
|
4,801
|
|
|
4,801
|
|
|
—
|
|
|
—
|
|
||||||||
Available for sale securities
|
|
45,754
|
|
|
45,754
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition contingent consideration
|
|
376
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
3,932
|
|
|
—
|
|
|
—
|
|
|
3,932
|
|
||||||||
Long-term debt
|
|
479,653
|
|
|
—
|
|
|
474,856
|
|
|
—
|
|
|
536,598
|
|
|
—
|
|
|
469,523
|
|
|
—
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
|
|
Black-Scholes
|
|
Binomial
|
|
Black-Scholes
|
|
Binomial
|
|
Black-Scholes
|
|
Binomial
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Risk-free interest rate
(%)
|
|
1.25 – 1.89
|
|
|
0.23 – 2.23
|
|
|
1.50 – 1.91
|
|
|
0.02 – 2.34
|
|
|
1.80 – 1.91
|
|
|
0.01 – 2.49
|
|
Expected stock price volatility (%)
|
|
59.75 – 62.14
|
|
|
59.76 – 62.14
|
|
|
55.06 – 59.73
|
|
|
55.06 – 59.73
|
|
|
37.57 – 45.15
|
|
|
38.38 – 45.15
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Expected option life
(in years)
|
|
6.00 – 6.25
|
|
|
4.06 – 4.88
|
|
|
6.00 – 6.25
|
|
|
4.08 – 4.92
|
|
|
6.25
|
|
|
4.36 – 5.83
|
|
Fair value
|
|
$11.15 – $18.60
|
|
|
$11.06 – $19.27
|
|
|
$10.01 – $17.66
|
|
|
$9.91 – $18.05
|
|
|
$15.54 – $41.79
|
|
|
$12.66 – $33.62
|
|
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Weighted average grant date fair value of stock options granted per share
|
|
$
|
16.82
|
|
|
$
|
13.20
|
|
|
$
|
26.92
|
|
Intrinsic value of stock options exercised
|
|
18,209
|
|
|
1,998
|
|
|
10,250
|
|
|||
Grant date fair value of stock options that vested during the period
|
|
2,698
|
|
|
1,616
|
|
|
2,641
|
|
|
Number of options
|
|
Weighted average exercise price
|
|
Weighted average contractual term
(in years
)
|
|
Aggregate intrinsic value
(
in thousands)
|
|||||
|
|
|
|
|
|
|
|
|||||
Outstanding at December 31, 2015
|
3,163,125
|
|
|
$
|
20.13
|
|
|
4.94
|
|
$
|
35,842
|
|
Granted
|
144,654
|
|
|
29.17
|
|
|
|
|
|
|||
Exercised
|
(1,173,132
|
)
|
|
9.63
|
|
|
|
|
|
|
||
Forfeited
|
(138,138
|
)
|
|
34.13
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||
Outstanding at December 31, 2016
|
1,996,509
|
|
|
25.98
|
|
|
5.32
|
|
15,942
|
|
||
|
|
|
|
|
|
|
|
|||||
Exercisable at December 31, 2016
|
1,225,924
|
|
|
21.00
|
|
|
3.45
|
|
10,825
|
|
|
|
Options outstanding
|
|
Options exercisable
|
||||||||||||||
Exercise price range
(1)
|
|
Number
|
|
Weighted average remaining contractual life
(in years
)
|
|
Weighted average exercise price
|
|
Number
|
|
Weighted average remaining contractual life
(in years
)
|
|
Weighted average exercise price
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Up to $10.00
|
|
480,003
|
|
|
1.53
|
|
$
|
9.14
|
|
|
480,003
|
|
|
1.53
|
|
$
|
9.14
|
|
$10.01 — $20.00
|
|
298,137
|
|
|
7.91
|
|
18.74
|
|
|
101,438
|
|
|
7.77
|
|
18.65
|
|
||
$20.01 — $30.00
|
|
916,491
|
|
|
5.93
|
|
25.74
|
|
|
520,159
|
|
|
3.88
|
|
23.79
|
|
||
$30.01 — $40.00
|
|
109,003
|
|
|
7.63
|
|
32.46
|
|
|
43,729
|
|
|
4.96
|
|
32.83
|
|
||
$40.01 — $50.00
|
|
5,000
|
|
|
7.94
|
|
49.06
|
|
|
625
|
|
|
7.94
|
|
49.06
|
|
||
$60.01 — $70.00
|
|
71,000
|
|
|
5.19
|
|
60.73
|
|
|
51,375
|
|
|
5.19
|
|
60.74
|
|
||
$70.01 — $80.00
|
|
25,000
|
|
|
7.86
|
|
72.78
|
|
|
3,125
|
|
|
7.86
|
|
72.78
|
|
||
$80.01 — $90.00
|
|
40,000
|
|
|
7.04
|
|
85.63
|
|
|
13,438
|
|
|
6.46
|
|
84.52
|
|
||
$90.01 — $100.00
|
|
50,000
|
|
|
7.18
|
|
95.40
|
|
|
11,094
|
|
|
7.12
|
|
94.30
|
|
||
$100.01 — $110.00
|
|
1,875
|
|
|
7.37
|
|
105.11
|
|
|
938
|
|
|
7.37
|
|
105.11
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
1,996,509
|
|
|
|
|
|
|
1,225,924
|
|
|
|
|
|
(1)
|
These options contain market-based components as described above.
|
|
|
Market-based options
|
||||||
Vesting price
|
|
Ordinary performance
|
|
Extraordinary performance
|
||||
|
|
|
|
|
||||
$40.01 — $50.00
|
|
14,500
|
|
|
—
|
|
||
$50.01 — $60.00
|
|
47,129
|
|
|
16,483
|
|
||
$60.01 — $70.00
|
|
17,884
|
|
|
6,250
|
|
||
$70.01 — $80.00
|
|
—
|
|
|
1,000
|
|
||
$80.01 — $90.00
|
|
—
|
|
|
25,467
|
|
||
$90.01 — $100.00
|
|
2,500
|
|
|
8,943
|
|
||
$140.01 — $150.00
|
|
12,500
|
|
|
1,250
|
|
||
$170.01 — $180.00
|
|
12,500
|
|
|
—
|
|
||
$180.01 — $190.00
|
|
—
|
|
|
23,375
|
|
||
Over $190.00
|
|
22,500
|
|
|
23,750
|
|
||
|
|
|
|
|
||||
Total
|
|
129,513
|
|
|
106,518
|
|
||
|
|
|
|
|
||||
Weighted average share price
|
|
$
|
50.32
|
|
|
$
|
48.13
|
|
|
Number of
restricted shares |
|
|
|
|
Outstanding at December 31, 2015
|
272,326
|
|
Granted
|
12,878
|
|
Issued
|
(38,074
|
)
|
Forfeited
|
(15,400
|
)
|
|
|
|
Outstanding at December 31, 2016
|
231,730
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Service revenue
|
|
$
|
942,599
|
|
|
$
|
940,920
|
|
|
$
|
938,679
|
|
Reimbursable expenses
|
|
52,011
|
|
|
107,344
|
|
|
137,634
|
|
|||
Non-controlling interests
|
|
2,693
|
|
|
3,202
|
|
|
2,603
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
997,303
|
|
|
$
|
1,051,466
|
|
|
$
|
1,078,916
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
$
|
264,796
|
|
|
$
|
261,839
|
|
|
$
|
255,889
|
|
Outside fees and services
|
|
302,156
|
|
|
248,278
|
|
|
243,325
|
|
|||
Reimbursable expenses
|
|
52,011
|
|
|
107,344
|
|
|
137,634
|
|
|||
Technology and telecommunications
|
|
44,295
|
|
|
43,177
|
|
|
48,834
|
|
|||
Depreciation and amortization
|
|
26,787
|
|
|
26,689
|
|
|
21,498
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
690,045
|
|
|
$
|
687,327
|
|
|
$
|
707,180
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
$
|
55,577
|
|
|
$
|
54,897
|
|
|
$
|
45,098
|
|
Professional services
|
|
23,284
|
|
|
23,183
|
|
|
18,598
|
|
|||
Occupancy related costs
|
|
37,370
|
|
|
39,917
|
|
|
38,262
|
|
|||
Amortization of intangible assets
|
|
47,576
|
|
|
41,135
|
|
|
37,680
|
|
|||
Depreciation and amortization
|
|
10,001
|
|
|
9,781
|
|
|
7,548
|
|
|||
Marketing costs
|
|
27,847
|
|
|
27,499
|
|
|
24,130
|
|
|||
Other
|
|
12,500
|
|
|
24,456
|
|
|
30,417
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
214,155
|
|
|
$
|
220,868
|
|
|
$
|
201,733
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Gain on early extinguishment of debt
|
|
$
|
5,464
|
|
|
$
|
3,836
|
|
|
$
|
—
|
|
Expenses related to the purchase of available for sale securities
|
|
(3,356
|
)
|
|
—
|
|
|
—
|
|
|||
Loss on HLSS equity securities and dividends received, net
|
|
—
|
|
|
(1,854
|
)
|
|
—
|
|
|||
Interest income
|
|
91
|
|
|
133
|
|
|
103
|
|
|||
Other, net
|
|
1,431
|
|
|
76
|
|
|
71
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
3,630
|
|
|
$
|
2,191
|
|
|
$
|
174
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Domestic - Luxembourg
|
|
$
|
8,498
|
|
|
$
|
27,884
|
|
|
$
|
124,181
|
|
Foreign - U.S.
|
|
16,655
|
|
|
5,944
|
|
|
9,575
|
|
|||
Foreign - Non-U.S.
|
|
19,168
|
|
|
19,232
|
|
|
13,509
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
44,321
|
|
|
$
|
53,060
|
|
|
$
|
147,265
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Domestic - Luxembourg
|
|
$
|
160
|
|
|
$
|
1,787
|
|
|
$
|
4,415
|
|
Foreign - U.S. Federal
|
|
9,556
|
|
|
539
|
|
|
75
|
|
|||
Foreign - U.S. State
|
|
258
|
|
|
855
|
|
|
476
|
|
|||
Foreign - Non-U.S.
|
|
5,558
|
|
|
6,405
|
|
|
4,046
|
|
|||
|
|
|
|
|
|
|
||||||
|
|
$
|
15,532
|
|
|
$
|
9,586
|
|
|
$
|
9,012
|
|
Deferred:
|
|
|
|
|
|
|
||||||
Domestic - Luxembourg
|
|
$
|
432
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign - U.S. Federal
|
|
(3,065
|
)
|
|
(108
|
)
|
|
1,756
|
|
|||
Foreign - U.S. State
|
|
(100
|
)
|
|
(526
|
)
|
|
(281
|
)
|
|||
Foreign - Non-U.S.
|
|
136
|
|
|
(692
|
)
|
|
(309
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
|
$
|
(2,597
|
)
|
|
$
|
(1,326
|
)
|
|
$
|
1,166
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
12,935
|
|
|
$
|
8,260
|
|
|
$
|
10,178
|
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Non-current deferred tax assets:
|
|
|
|
|
||||
Net operating loss carryforwards
|
|
$
|
5,891
|
|
|
$
|
5,417
|
|
U.S. federal and state tax credits
|
|
316
|
|
|
2,577
|
|
||
Non-U.S. deferred tax assets
|
|
3,674
|
|
|
2,472
|
|
||
Share-based compensation
|
|
2,486
|
|
|
1,750
|
|
||
Accrued expenses
|
|
11,527
|
|
|
7,730
|
|
||
Non-current deferred tax liabilities:
|
|
|
|
|
||||
Intangible assets
|
|
(4,203
|
)
|
|
(4,508
|
)
|
||
Depreciation
|
|
(6,964
|
)
|
|
(7,446
|
)
|
||
Non-U.S. deferred tax liability
|
|
(1,342
|
)
|
|
—
|
|
||
Other
|
|
(626
|
)
|
|
(815
|
)
|
||
|
|
10,759
|
|
|
7,177
|
|
||
|
|
|
|
|
||||
Valuation allowance
|
|
(3,467
|
)
|
|
(3,558
|
)
|
||
|
|
|
|
|
||||
Non-current deferred tax assets, net
|
|
$
|
7,292
|
|
|
$
|
3,619
|
|
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
|
|
|
|
|
|||
Statutory tax rate
|
|
29.22
|
%
|
|
29.22
|
%
|
|
29.22
|
%
|
Permanent difference related to Luxembourg intangible assets
|
|
—
|
|
|
(13.56
|
)
|
|
(22.60
|
)
|
Change in valuation allowance
|
|
(0.08
|
)
|
|
0.83
|
|
|
(0.05
|
)
|
State tax expense
|
|
2.30
|
|
|
0.29
|
|
|
0.03
|
|
Tax credits
|
|
(1.81
|
)
|
|
(2.34
|
)
|
|
(0.71
|
)
|
Uncertain taxes
|
|
(3.65
|
)
|
|
1.39
|
|
|
0.88
|
|
Other
|
|
3.20
|
|
|
(0.26
|
)
|
|
0.14
|
|
|
|
|
|
|
|
|
|||
Effective tax rate
|
|
29.18
|
%
|
|
15.57
|
%
|
|
6.91
|
%
|
(in thousands)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Amount of unrecognized tax benefits as of the beginning of the year
|
|
$
|
2,005
|
|
|
$
|
1,153
|
|
Decreases as a result of tax positions taken in a prior period
|
|
(1,527
|
)
|
|
—
|
|
||
Increases as a result of tax positions taken in a prior period
|
|
60
|
|
|
638
|
|
||
Increases as a result of tax positions taken in the current period
|
|
220
|
|
|
214
|
|
||
|
|
|
|
|
||||
Amount of unrecognized tax benefits as of the end of the year
|
|
$
|
758
|
|
|
$
|
2,005
|
|
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
|
|
|
|
||||||
Net income attributable to Altisource
|
|
$
|
28,693
|
|
|
$
|
41,598
|
|
|
$
|
134,484
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding, basic
|
|
18,696
|
|
|
19,504
|
|
|
21,625
|
|
|||
Dilutive effect of stock options and restricted shares
|
|
916
|
|
|
1,115
|
|
|
2,009
|
|
|||
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding, diluted
|
|
19,612
|
|
|
20,619
|
|
|
23,634
|
|
|||
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.53
|
|
|
$
|
2.13
|
|
|
$
|
6.22
|
|
|
|
|
|
|
|
|
||||||
Diluted
|
|
$
|
1.46
|
|
|
$
|
2.02
|
|
|
$
|
5.69
|
|
•
|
Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
|
•
|
Ocwen loses or sells a significant portion or all of its non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
|
•
|
Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
|
•
|
Altisource fails to be retained as a service provider
|
•
|
The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
|
•
|
Servicer Solutions business
|
•
|
Origination Solutions business
|
•
|
Consumer Real Estate Solutions business
|
•
|
Real Estate Investor Solutions business
|
(in thousands)
|
|
Operating lease obligations
|
||
|
|
|
||
2017
|
|
$
|
17,857
|
|
2018
|
|
13,560
|
|
|
2019
|
|
10,706
|
|
|
2020
|
|
7,406
|
|
|
2021
|
|
5,469
|
|
|
Thereafter
|
|
1,154
|
|
|
|
|
|
||
|
|
$
|
56,152
|
|
|
|
For the year ended December 31, 2016
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
804,539
|
|
|
$
|
74,352
|
|
|
$
|
160,101
|
|
|
$
|
(41,689
|
)
|
|
$
|
997,303
|
|
Cost of revenue
|
|
514,832
|
|
|
53,841
|
|
|
159,869
|
|
|
(38,497
|
)
|
|
690,045
|
|
|||||
Gross profit (loss)
|
|
289,707
|
|
|
20,511
|
|
|
232
|
|
|
(3,192
|
)
|
|
307,258
|
|
|||||
Selling, general and administrative expenses
|
|
108,987
|
|
|
17,768
|
|
|
27,811
|
|
|
59,589
|
|
|
214,155
|
|
|||||
Litigation settlement loss, net of $4,000
insurance recovery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,000
|
|
|
28,000
|
|
|||||
Income (loss) from operations
|
|
180,720
|
|
|
2,743
|
|
|
(27,579
|
)
|
|
(90,781
|
)
|
|
65,103
|
|
|||||
Other income (expense), net
|
|
43
|
|
|
92
|
|
|
66
|
|
|
(20,983
|
)
|
|
(20,782
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
180,763
|
|
|
$
|
2,835
|
|
|
$
|
(27,513
|
)
|
|
$
|
(111,764
|
)
|
|
$
|
44,321
|
|
|
|
For the year ended December 31, 2015
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
786,648
|
|
|
$
|
88,448
|
|
|
$
|
215,482
|
|
|
$
|
(39,112
|
)
|
|
$
|
1,051,466
|
|
Cost of revenue
|
|
474,169
|
|
|
60,806
|
|
|
187,835
|
|
|
(35,483
|
)
|
|
687,327
|
|
|||||
Gross profit (loss)
|
|
312,479
|
|
|
27,642
|
|
|
27,647
|
|
|
(3,629
|
)
|
|
364,139
|
|
|||||
Selling, general and administrative expenses
|
|
105,153
|
|
|
18,707
|
|
|
29,902
|
|
|
67,106
|
|
|
220,868
|
|
|||||
Impairment losses
|
|
—
|
|
|
—
|
|
|
71,785
|
|
|
—
|
|
|
71,785
|
|
|||||
Change in the fair value of Equator Earn Out
|
|
—
|
|
|
—
|
|
|
(7,591
|
)
|
|
—
|
|
|
(7,591
|
)
|
|||||
Income (loss) from operations
|
|
207,326
|
|
|
8,935
|
|
|
(66,449
|
)
|
|
(70,735
|
)
|
|
79,077
|
|
|||||
Other income (expense), net
|
|
506
|
|
|
58
|
|
|
61
|
|
|
(26,642
|
)
|
|
(26,017
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
207,832
|
|
|
$
|
8,993
|
|
|
$
|
(66,388
|
)
|
|
$
|
(97,377
|
)
|
|
$
|
53,060
|
|
|
|
For the year ended December 31, 2014
|
||||||||||||||||||
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
793,143
|
|
|
$
|
98,499
|
|
|
$
|
227,300
|
|
|
$
|
(40,026
|
)
|
|
$
|
1,078,916
|
|
Cost of revenue
|
|
486,387
|
|
|
64,338
|
|
|
192,426
|
|
|
(35,971
|
)
|
|
707,180
|
|
|||||
Gross profit (loss)
|
|
306,756
|
|
|
34,161
|
|
|
34,874
|
|
|
(4,055
|
)
|
|
371,736
|
|
|||||
Selling, general and administrative expenses
|
|
94,686
|
|
|
18,791
|
|
|
32,393
|
|
|
55,863
|
|
|
201,733
|
|
|||||
Impairment losses
|
|
—
|
|
|
—
|
|
|
37,473
|
|
|
—
|
|
|
37,473
|
|
|||||
Change in the fair value of Equator Earn Out
|
|
—
|
|
|
—
|
|
|
(37,924
|
)
|
|
—
|
|
|
(37,924
|
)
|
|||||
Income (loss) from operations
|
|
212,070
|
|
|
15,370
|
|
|
2,932
|
|
|
(59,918
|
)
|
|
170,454
|
|
|||||
Other income (expense), net
|
|
204
|
|
|
62
|
|
|
(31
|
)
|
|
(23,424
|
)
|
|
(23,189
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and
non-controlling interests
|
|
$
|
212,274
|
|
|
$
|
15,432
|
|
|
$
|
2,901
|
|
|
$
|
(83,342
|
)
|
|
$
|
147,265
|
|
(in thousands)
|
|
Mortgage Services
|
|
Financial Services
|
|
Technology Services
|
|
Corporate Items and Eliminations
|
|
Consolidated Altisource
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2016
|
|
$
|
306,207
|
|
|
$
|
38,746
|
|
|
$
|
130,032
|
|
|
$
|
214,227
|
|
|
$
|
689,212
|
|
December 31, 2015
|
|
325,461
|
|
|
53,757
|
|
|
165,778
|
|
|
176,802
|
|
|
721,798
|
|
(in thousands)
|
|
December 31,
2016 |
|
December 31,
2015 |
||||
|
|
|
|
|
||||
United States
|
|
$
|
71,418
|
|
|
$
|
85,021
|
|
India
|
|
14,006
|
|
|
21,187
|
|
||
Luxembourg
|
|
14,791
|
|
|
9,944
|
|
||
Philippines
|
|
3,027
|
|
|
2,664
|
|
||
Uruguay
|
|
231
|
|
|
305
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
103,473
|
|
|
$
|
119,121
|
|
|
|
2016 quarter ended
(1)(2)(3)
|
||||||||||||||
(in thousands, except per share data)
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
250,132
|
|
|
$
|
255,799
|
|
|
$
|
252,745
|
|
|
$
|
238,627
|
|
Gross profit
|
|
81,269
|
|
|
81,428
|
|
|
78,743
|
|
|
65,818
|
|
||||
Income (loss) before income taxes and non-controlling interests
|
|
21,085
|
|
|
23,977
|
|
|
18,796
|
|
|
(19,537
|
)
|
||||
Net income (loss)
|
|
18,892
|
|
|
20,686
|
|
|
11,472
|
|
|
(19,664
|
)
|
||||
Net income (loss) attributable to Altisource
|
|
18,494
|
|
|
19,994
|
|
|
10,589
|
|
|
(20,384
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.98
|
|
|
$
|
1.08
|
|
|
$
|
0.57
|
|
|
$
|
(1.08
|
)
|
Diluted
|
|
$
|
0.92
|
|
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
(1.08
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
18,855
|
|
|
18,437
|
|
|
18,715
|
|
|
18,788
|
|
||||
Diluted
|
|
20,040
|
|
|
19,604
|
|
|
19,568
|
|
|
18,788
|
|
|
|
2015 quarter ended
(1)(4)(5)(6)
|
||||||||||||||
(in thousands, except per share data)
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
240,482
|
|
|
$
|
268,321
|
|
|
$
|
272,776
|
|
|
$
|
269,887
|
|
Gross profit
|
|
67,656
|
|
|
100,162
|
|
|
98,926
|
|
|
97,395
|
|
||||
Income (loss) before income taxes and non-controlling interests
|
|
4,808
|
|
|
51,244
|
|
|
41,200
|
|
|
(44,192
|
)
|
||||
Net income (loss)
|
|
4,408
|
|
|
46,846
|
|
|
37,897
|
|
|
(44,351
|
)
|
||||
Net income (loss) attributable to Altisource
|
|
3,698
|
|
|
45,950
|
|
|
37,046
|
|
|
(45,096
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.18
|
|
|
$
|
2.35
|
|
|
$
|
1.94
|
|
|
$
|
(2.35
|
)
|
Diluted
|
|
$
|
0.18
|
|
|
$
|
2.22
|
|
|
$
|
1.82
|
|
|
$
|
(2.35
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
20,172
|
|
|
19,571
|
|
|
19,091
|
|
|
19,196
|
|
||||
Diluted
|
|
20,995
|
|
|
20,669
|
|
|
20,411
|
|
|
19,196
|
|
(1)
|
The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted average shares outstanding for each period.
|
(2)
|
We acquired Granite on July 29, 2016 (see
Note 5
).
|
(3)
|
During the fourth quarter of 2016, Altisource recorded a litigation settlement loss of
$32.0 million
in connection with a litigation matter. Also during the fourth quarter of 2016, Altisource recorded an insurance recovery related to this litigation settlement of
$4.0 million
. See
Note 23
.
|
(4)
|
We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see
Note 5
).
|
(5)
|
During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.
|
(6)
|
In the fourth quarter of 2015, we recorded impairment losses of
$71.8 million
in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see
Note 9
and
Note 10
).
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
•
|
Reviewed the processes related to the impairment assessment of long-lived and indefinite-lived assets
|
•
|
Enhanced review controls relating to the review of impairment indicators of long-lived assets and the impairment analysis of indefinite-lived assets
|
•
|
Tested and evaluated the design and operating effectiveness of the control procedures
|
•
|
Assessed the effectiveness of the remediation plan
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
10.8
|
|
Intellectual Property Agreement, dated as of August 10, 2009, by and between Altisource Solutions S.à r.l. and Ocwen Financial Corporation (incorporated by reference to Exhibit 10.8 of the Registrant’s Current Report on Form 8-K as filed with the Commission on August 13, 2009)
|
|
|
|
10.9†
|
|
Altisource Portfolio Solutions S.A. 2009 Equity Incentive Plan, dated as of August 7, 2009 (incorporated by reference from Exhibit 10.8 to Amendment No. 1 to the Registration Statement on Form 10 of Altisource Portfolio Solutions S.A. as filed with the Commission on June 29, 2009)
|
|
|
|
10.10†
|
|
Employment Contract between Altisource Solutions S.à r.l. and William B. Shepro (incorporated by reference from Exhibit 10.9 to Amendment No. 1 to the Registration Statement on Form 10 of Altisource Portfolio Solutions S.A. as filed with the Commission on June 29, 2009)
|
|
|
|
10.11†
|
|
Employment Contract between Altisource Solutions S.à r.l. and Kevin J. Wilcox (incorporated by reference from Exhibit 10.11 to Amendment No. 1 to the Registration Statement on Form 10 of Altisource Portfolio Solutions S.A. as filed with the Commission on June 29, 2009)
|
|
|
|
10.12
|
|
Purchase and Sale Agreement, dated as of February 12, 2010, by and among Altisource Portfolio Solutions S.A., and the Equity Interest Holders of The Mortgage Partnership of America, L.L.C. and the Management Owners (incorporated by reference to Exhibit 10.12 of the Company’s 10-K as filed with the Commission on March 17, 2010)
|
|
|
|
10.13†
|
|
Form of Put Option Agreements (incorporated by reference to Exhibit 10.13 of the Company’s 10-K as filed with the Commission on March 17, 2010)
|
|
|
|
10.14†
|
|
Form of Non-qualified Stock Option Agreement, pursuant to the 2009 Equity Incentive Plan (incorporated by reference to Exhibit 10.14 of the Company’s 10-K as filed with the Commission on February 18, 2011)
|
|
|
|
10.15
|
|
First Amendment to the Transition Services Agreement, dated as of August 10, 2011, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K as filed with the Commission on August 16, 2011)
|
|
|
|
10.16†
|
|
Employment Agreement dated March 13, 2012 between Altisource Solutions S.à r.l. and Michelle D. Esterman (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K as filed with the Commission on March 16, 2012)
|
|
|
|
10.17
|
|
Support Services Agreement, dated as of August 10, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 16, 2012)
|
|
|
|
10.18†
|
|
First Amendment to the Employment Contract dated as of August 15, 2012 between Altisource Solutions S.à r.l. and William B. Shepro (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 20, 2012)
|
|
|
|
10.19†
|
|
First Amendment to the Employment Contract dated as of August 15, 2012 between Altisource Solutions S.à r.l. and Kevin J. Wilcox (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on August 20, 2012)
|
|
|
|
10.20
|
|
Services Agreement, dated as of October 1, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.21
|
|
Technology Products Services Agreement, dated as of October 1, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.22
|
|
Data Center and Disaster Recovery Agreement, dated as of October 1, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.23
|
|
Intellectual Property Agreement, dated as of October 1, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.24
|
|
First Amendment to Support Services Agreement, dated as of October 1, 2012, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.5 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.25
|
|
First Amendment to Services Agreement, dated as of October 1, 2012, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.6 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.26
|
|
First Amendment to Technology Products and Services Agreement, dated as of October 1, 2012, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.7 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.27
|
|
First Amendment to Data Center and Disaster Recovery Agreement, dated as of October 1, 2012, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.8 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.28
|
|
First Amendment to Intellectual Property Agreement, dated as of October 1, 2012, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.9 of the Company’s Form 8-K filed on October 5, 2012)
|
|
|
|
10.29
|
|
Credit Agreement, dated as of November 27, 2012, among Altisource Solutions S.à r.l., as borrower, the Company and certain of the Company’s wholly-owned subsidiaries, as guarantors, Bank of America, N.A., as Administrative Agent and Collateral Agent, Bank of America, N.A., Barclays Bank PLC and Citigroup Global Markets Inc., as Lead Arrangers and Barclays Bank PLC and Citigroup Global Markets Inc., as Co-Syndication Agents, and certain lenders party thereto from time to time (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on December 3, 2012)
|
|
|
|
10.30
|
|
Support Services Agreement, dated as of December 21, 2012, between Altisource Residential Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.31
|
|
Support Services Agreement, dated as of December 21, 2012, between Altisource Asset Management Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.32
|
|
Tax Matters Agreement, dated as of December 21, 2012, between Altisource Residential Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.33
|
|
Tax Matters Agreement, dated as of December 21, 2012, between Altisource Asset Management Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.34**
|
|
Master Services Agreement, dated as of December 21, 2012, between Altisource Residential Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.5 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.35
|
|
Trademark License Agreement, dated as of December 21, 2012, between Altisource Residential Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.6 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.36
|
|
Trademark License Agreement, dated as of December 21, 2012, between Altisource Asset Management Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.7 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.37
|
|
Technology Products Services Agreement, between Altisource Asset Management Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.8 of the Company’s Form 8-K filed on December 28, 2012)
|
|
|
|
10.38
|
|
Senior Unsecured Term Loan Agreement, dated as of December 27, 2012, among Altisource Solutions S.à r.l., as Lender, Ocwen Financial Corporation, as Borrower, and certain subsidiaries of Ocwen Financial Corporation, as Guarantors (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on December 31, 2012)
|
|
|
|
10.39
|
|
Second Amendment to Services Agreement, dated as of March 29, 2013, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.40
|
|
Second Amendment to Technology Products Services Agreement, dated as of March 29, 2013, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.41
|
|
Second Amendment to Data Center and Disaster Recovery Services Agreement, dated as of March 29, 2013, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.42
|
|
Second Amendment to Intellectual Property Agreement, dated as of March 29, 2013, by and between Ocwen Financial Corporation and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.43
|
|
First Amendment to Services Agreement, dated as of March 29, 2013, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.5 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.44
|
|
First Amendment to Technology Products Services Agreement, dated as of March 29, 2013, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.6 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.45
|
|
First Amendment to Data Center and Disaster Recovery Services Agreement, dated as of March 29, 2013, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.7 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.46
|
|
First Amendment to Intellectual Property Agreement, dated as of March 29, 2013, by and between Ocwen Mortgage Servicing, Inc. and Altisource Solutions S.à r.l. (incorporated by reference to Exhibit 10.8 of the Company’s Form 8-K filed on April 4, 2013)
|
|
|
|
10.47
|
|
Agreement, dated as of April 12, 2013, by and among Altisource Solutions S.à r.l., Ocwen Financial Corporation and Ocwen Mortgage Servicing, Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on April 18, 2013)
|
|
|
|
10.48
|
|
Amendment No. 1 to Credit Agreement, dated as of May 7, 2013, among Altisource Solutions S.à r.l., as borrower, Altisource Portfolio Solutions S.A., Bank of America, N.A., as administrative agent and incremental term lender and the other lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on May 13, 2013)
|
|
|
|
10.49
|
|
Amendment No. 2 to Credit Agreement, dated as of December 9, 2013, among Altisource Solutions S.à r.l., as borrower, Altisource Portfolio Solutions S.A., Bank of America, N.A., as Administrative Agent and the Lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on December 11, 2013)
|
|
|
|
10.50
|
|
Amendment No. 3 to Credit Agreement, dated as of August 1, 2014, among Altisource Solutions S.à r.l., as borrower, Altisource Portfolio Solutions S.A., Bank of America, N.A., as Administrative Agent and incremental term lender and the other lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 6, 2014)
|
|
|
|
10.51†
|
|
Form of Cash Retention Award Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on April 21, 2015)
|
|
|
|
10.52†
|
|
Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on April 21, 2015)
|
|
|
|
10.53†
|
|
Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.3 of the Company’s Form 10-Q filed on July 23, 2015)
|
|
|
|
10.54†
|
|
Employment Agreement dated April 30, 2013 between Altisource Solutions S.à r.l. and Vivek Bhandari (incorporated by reference to Exhibit 10.60 of the Company’s Form 10-K filed on March 15, 2016)
|
|
|
|
10.55†
|
|
Employment Agreement dated June 17, 2011 between Altisource Solutions S.à r.l. and Joseph A. Davila (incorporated by reference to Exhibit 10.61 of the Company’s Form 10-K filed on March 15, 2016)
|
|
|
|
10.56†
|
|
Employment Agreement dated December 31, 2013 between Altisource Solutions S.à r.l. and Mark J. Hynes (incorporated by reference to Exhibit 10.62 of the Company’s Form 10-K filed on March 15, 2016)
|
|
|
|
10.57†
|
|
Amended and Restated Employment Agreement effective as of October 1, 2014 between Altisource Solutions S.à r.l. and Gregory J. Ritts (incorporated by reference to Exhibit 10.63 of the Company’s Form 10-K filed on March 15, 2016)
|
|
|
|
10.58†
|
|
Non-Qualified Stock Option Award Agreement between the Company and Gregory J. Ritts dated as of August 29, 2016 (incorporated by reference to Exhibit 10.1 of the Company’s Form 10-Q filed on October 27, 2016)
|
|
|
|
10.59†
|
|
Non-Qualified Stock Option Award Agreement between the Company and Vivek Bhandari dated as of August 29, 2016 (incorporated by reference to Exhibit 10.2 of the Company’s Form 10-Q filed on October 27, 2016)
|
|
|
|
10.60
|
|
Form of Director Restricted Share Award Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 24, 2016)
|
|
|
|
10.61
|
|
Amendment and Waiver Agreement dated September 30, 2016 between Altisource Solutions S.à r.l. and Altisource Residential Corporation (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on October 3, 2016)
|
|
|
|
21.1*
|
|
Subsidiaries of the Registrant.
|
|
|
|
23.1*
|
|
Consent of Independent Registered Public Accounting Firm (Mayer Hoffman McCann P.C.).
|
|
|
|
23.2*
|
|
Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP).
|
|
|
|
31.1*
|
|
Section 302 Certification of the Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
|
31.2*
|
|
Section 302 Certification of the Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
|
32.1*
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101*
|
|
Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 is formatted in XBRL interactive data files: (i) Consolidated Balance Sheets at December 31, 2016 and December 31, 2015; (ii) Consolidated Statements of Operations for each of the years in the three-year period ended December 31, 2016; (iii) Consolidated Statements of Equity for each of the years in the three-year period ended December 31, 2016; (iv) Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2016; (v) Notes to Consolidated Financial Statements; and (vi) Financial Statement Schedule.
|
|
|
|
*
|
|
Filed herewith
|
|
|
|
**
|
|
Portions of this exhibit have been redacted pursuant to a request for confidential treatment. The non-public information has been filed separately with the Securities and Exchange Commission.
|
|
|
|
†
|
|
Denotes management contract or compensatory arrangement
|
SCHEDULE II.
|
VALUATION AND QUALIFYING ACCOUNTS
|
|
|
|
|
Additions
|
|
|
||||||||||||||
(in thousands)
|
|
Balance at Beginning of Period
|
|
Charged to Expenses
|
|
Charged to Other Accounts Note
(1)(2)
|
|
Deductions Note
(3)(4)
|
|
Balance at End of Period
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deductions from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year 2016
|
|
$
|
18,456
|
|
|
$
|
1,829
|
|
|
$
|
250
|
|
|
$
|
10,111
|
|
|
$
|
10,424
|
|
Year 2015
|
|
22,675
|
|
|
5,514
|
|
|
(4
|
)
|
|
9,729
|
|
|
18,456
|
|
|||||
Year 2014
|
|
5,631
|
|
|
16,257
|
|
|
1,399
|
|
|
612
|
|
|
22,675
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year 2016
|
|
$
|
3,558
|
|
|
$
|
228
|
|
|
$
|
—
|
|
|
$
|
319
|
|
|
$
|
3,467
|
|
Year 2015
|
|
3,115
|
|
|
674
|
|
|
—
|
|
|
231
|
|
|
3,558
|
|
|||||
Year 2014
|
|
3,189
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
3,115
|
|
(1)
|
Allowance for doubtful accounts primarily includes amounts previously written off which were credited directly to this account when recovered.
|
(2)
|
Valuation allowance for deferred tax assets includes current year increase to valuation allowance charged to equity and reclassifications from other balance sheet accounts.
|
(3)
|
Amounts written off as uncollectible or transferred to other accounts or utilized.
|
(4)
|
Reductions to valuation allowances related to deferred tax assets.
|
|
|
Altisource Portfolio Solutions S.A.
|
|
|
|
|
|
|
By:
|
/s/ William B. Shepro
|
|
|
|
Name:
|
William B. Shepro
|
|
|
Title:
|
Director and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
By:
|
/s/ Michelle D. Esterman
|
|
|
|
Name:
|
Michelle D. Esterman
|
|
|
Title:
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer and
Principal Accounting Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Timo Vättö
|
|
Chairman of the Board of Directors
|
|
February 16, 2017
|
Timo Vättö
|
|
|
|
|
|
|
|
|
|
/s/ William B. Shepro
|
|
Director and Chief Executive Officer
|
|
February 16, 2017
|
William B. Shepro
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Orin S. Kramer
|
|
Director
|
|
February 16, 2017
|
Orin S. Kramer
|
|
|
|
|
|
|
|
|
|
/s/ W. Michael Linn
|
|
Director
|
|
February 16, 2017
|
W. Michael Linn
|
|
|
|
|
|
|
|
|
|
/s/ Roland Müller-Ineichen
|
|
Director
|
|
February 16, 2017
|
Roland Müller-Ineichen
|
|
|
|
|
|
|
|
|
|
/s/ Michelle D. Esterman
|
|
Chief Financial Officer
|
|
February 16, 2017
|
Michelle D. Esterman
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
|
1 Year Altisource Portfolio Sol... Chart |
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