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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 | |
---|---|---|---|---|---|---|---|---|---|---|
-0.11 | -5.61% | 1.85 | 1.76 | 2.23 | 1.9999 | 1.81 | 1.97 | 96,966 | 01:00:00 |
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þ
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QUARTERLY 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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Large accelerated filer
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Accelerated filer
þ
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Emerging growth company
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March 31,
2018 |
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December 31,
2017 |
||||
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ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
84,850
|
|
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$
|
105,006
|
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Investment in equity securities
|
41,652
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|
|
49,153
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||
Accounts receivable, net
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50,839
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|
52,740
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Prepaid expenses and other current assets
|
73,955
|
|
|
64,742
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||
Total current assets
|
251,296
|
|
|
271,641
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||||
Premises and equipment, net
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65,585
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|
73,273
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Goodwill
|
86,283
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86,283
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Intangible assets, net
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112,918
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|
120,065
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Deferred tax assets, net
|
305,679
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303,707
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Other assets
|
10,012
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|
|
10,195
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||||
Total assets
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$
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831,773
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$
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865,164
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||||
LIABILITIES AND EQUITY
|
|||||||
Current liabilities:
|
|
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|
||||
Accounts payable and accrued expenses
|
$
|
66,475
|
|
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$
|
84,400
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Current portion of long-term debt
|
5,945
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|
|
5,945
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||
Deferred revenue
|
15,489
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|
|
9,802
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||
Other current liabilities
|
6,651
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|
|
9,414
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Total current liabilities
|
94,560
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|
109,561
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Long-term debt, less current portion
|
401,716
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403,336
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Other non-current liabilities
|
15,415
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|
|
12,282
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Commitments, contingencies and regulatory matters (Note 19)
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||||
Equity:
|
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|
||||
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 17,343 outstanding as of March 31, 2018; 100,000 shares authorized, 25,413 shares issued and 17,418 outstanding as of December 31, 2017)
|
25,413
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|
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25,413
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Additional paid-in capital
|
114,676
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|
|
112,475
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Retained earnings
|
600,253
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|
626,600
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Accumulated other comprehensive income
|
—
|
|
|
733
|
|
||
Treasury stock, at cost (8,070 shares as of March 31, 2018 and 7,995 shares as of December 31, 2017)
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(421,486
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)
|
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(426,609
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)
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||
Altisource equity
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318,856
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338,612
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Non-controlling interests
|
1,226
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|
|
1,373
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|
||
Total equity
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320,082
|
|
|
339,985
|
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||
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||||
Total liabilities and equity
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$
|
831,773
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$
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865,164
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Three months ended
March 31, |
||||||
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2018
|
|
2017
|
||||
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||||
Revenue
|
|
$
|
197,438
|
|
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$
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240,483
|
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Cost of revenue
|
|
147,194
|
|
|
177,953
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|
||||
Gross profit
|
|
50,244
|
|
|
62,530
|
|
||
Selling, general and administrative expenses
|
|
43,124
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|
|
47,701
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||||
Income from operations
|
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7,120
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|
|
14,829
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|
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Other income (expense), net:
|
|
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|
||||
Interest expense
|
|
(5,863
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)
|
|
(5,798
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)
|
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Unrealized loss on investment in equity securities (Note 3)
|
|
(7,501
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)
|
|
—
|
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Other income (expense), net
|
|
1,272
|
|
|
715
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Total other income (expense), net
|
|
(12,092
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)
|
|
(5,083
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)
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(Loss) income before income taxes and non-controlling interests
|
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(4,972
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)
|
|
9,746
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Income tax benefit (provision)
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1,365
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(2,586
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)
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||||
Net (loss) income
|
|
(3,607
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)
|
|
7,160
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Net income attributable to non-controlling interests
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(525
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)
|
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(615
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)
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||||
Net (loss) income attributable to Altisource
|
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$
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(4,132
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)
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$
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6,545
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||||
(Loss) earnings per share:
|
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|
||||
Basic
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$
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(0.24
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)
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$
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0.35
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Diluted
|
|
$
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(0.24
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)
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$
|
0.34
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||||
Weighted average shares outstanding:
|
|
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|
||||
Basic
|
|
17,378
|
|
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18,662
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Diluted
|
|
17,378
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19,304
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||
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|
||||
Comprehensive (loss) income:
|
|
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|
||||
Net (loss) income
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|
$
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(3,607
|
)
|
|
$
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7,160
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Other comprehensive income, net of tax:
|
|
|
|
|
||||
Reclassification of unrealized gain on investment in equity securities, net of
income tax provision of $200, to retained earnings from the cumulative effect of an accounting change (Note 1) |
|
(733
|
)
|
|
—
|
|
||
Unrealized gain on investment in equity securities, net of income tax
provision of $4,725 |
|
—
|
|
|
12,723
|
|
||
|
|
|
|
|
||||
Comprehensive (loss) income, net of tax
|
|
(4,340
|
)
|
|
19,883
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|
||
Comprehensive income attributable to non-controlling interests
|
|
(525
|
)
|
|
(615
|
)
|
||
|
|
|
|
|
||||
Comprehensive (loss) income attributable to Altisource
|
|
$
|
(4,865
|
)
|
|
$
|
19,268
|
|
|
Altisource Equity
|
|
|
|
|
|||||||||||||||||||||||||
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Treasury stock, at cost
|
|
Non-controlling interests
|
|
Total
|
|||||||||||||||||
|
Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2016
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
107,288
|
|
|
$
|
333,786
|
|
|
$
|
(1,745
|
)
|
|
$
|
(403,953
|
)
|
|
$
|
1,405
|
|
|
$
|
62,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
6,545
|
|
|
—
|
|
|
—
|
|
|
615
|
|
|
7,160
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,723
|
|
|
—
|
|
|
—
|
|
|
12,723
|
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(569
|
)
|
|
(569
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
695
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
695
|
|
|||||||
Cumulative effect of an accounting change (Note 13)
|
—
|
|
|
—
|
|
|
932
|
|
|
(932
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,872
|
)
|
|
—
|
|
|
3,624
|
|
|
—
|
|
|
752
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,590
|
)
|
|
—
|
|
|
(10,590
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2017
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
108,915
|
|
|
$
|
336,527
|
|
|
$
|
10,978
|
|
|
$
|
(410,919
|
)
|
|
$
|
1,451
|
|
|
$
|
72,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2017
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
112,475
|
|
|
$
|
626,600
|
|
|
$
|
733
|
|
|
$
|
(426,609
|
)
|
|
$
|
1,373
|
|
|
$
|
339,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,132
|
)
|
|
—
|
|
|
—
|
|
|
525
|
|
|
(3,607
|
)
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(672
|
)
|
|
(672
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
2,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,201
|
|
|||||||
Cumulative effect of accounting change
s (Note 1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,715
|
)
|
|
(733
|
)
|
|
—
|
|
|
—
|
|
|
(10,448
|
)
|
|||||||
Exercise of stock options and issuance of restricted shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,500
|
)
|
|
—
|
|
|
15,117
|
|
|
—
|
|
|
2,617
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,994
|
)
|
|
—
|
|
|
(9,994
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2018
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
114,676
|
|
|
$
|
600,253
|
|
|
$
|
—
|
|
|
$
|
(421,486
|
)
|
|
$
|
1,226
|
|
|
$
|
320,082
|
|
|
Three months ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net (loss) income
|
$
|
(3,607
|
)
|
|
$
|
7,160
|
|
Adjustments to reconcile net (loss) income to net cash
used in o
perating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
8,721
|
|
|
10,008
|
|
||
Amortization of intangible assets
|
7,147
|
|
|
9,146
|
|
||
Change in the fair value of acquisition related contingent consideration
|
—
|
|
|
8
|
|
||
Unrealized loss on investment in equity securities
|
7,501
|
|
|
—
|
|
||
Share-based compensation expense
|
2,201
|
|
|
695
|
|
||
Bad debt expense
|
724
|
|
|
1,903
|
|
||
Amortization of debt discount
|
89
|
|
|
105
|
|
||
Amortization of debt issuance costs
|
273
|
|
|
291
|
|
||
Deferred income taxes
|
(1,972
|
)
|
|
—
|
|
||
Loss on disposal of fixed assets
|
489
|
|
|
1,480
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
2,289
|
|
|
2,880
|
|
||
Prepaid expenses and other current assets
|
(9,213
|
)
|
|
(4,749
|
)
|
||
Other assets
|
481
|
|
|
(374
|
)
|
||
Accounts payable and accrued expenses
|
(18,189
|
)
|
|
(10,177
|
)
|
||
Other current and non-current liabilities
|
(5,503
|
)
|
|
(36,735
|
)
|
||
Net cash used in operating activities
|
(8,569
|
)
|
|
(18,359
|
)
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Additions to premises and equipment
|
(1,258
|
)
|
|
(1,944
|
)
|
||
Net cash used in investing activities
|
(1,258
|
)
|
|
(1,944
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Repayment of long-term debt
|
(1,486
|
)
|
|
(1,486
|
)
|
||
Debt issuance costs
|
(496
|
)
|
|
—
|
|
||
Proceeds from stock option exercises
|
2,617
|
|
|
752
|
|
||
Purchase of treasury shares
|
(9,994
|
)
|
|
(10,590
|
)
|
||
Distributions to non-controlling interests
|
(672
|
)
|
|
(569
|
)
|
||
Net cash used in financing activities
|
(10,031
|
)
|
|
(11,893
|
)
|
||
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash
|
(19,858
|
)
|
|
(32,196
|
)
|
||
Cash, cash equivalents and restricted cash at the beginning of the period
|
108,843
|
|
|
153,421
|
|
||
|
|
|
|
||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
88,985
|
|
|
$
|
121,225
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
|
|
||
Interest paid
|
$
|
5,269
|
|
|
$
|
5,456
|
|
Income taxes paid, net
|
946
|
|
|
6,515
|
|
||
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
|
|
||
Increase in payables for purchases of premises and equipment
|
$
|
264
|
|
|
$
|
2,094
|
|
•
|
For the majority of the services we provide, we recognize transactional revenue when the service is provided.
|
•
|
For loan servicing technologies, we recognize revenue based on the number of loans on the system, on a per-transaction basis or over the estimated average number of months the loans and real estate owned (“REO”) are on the platform, as applicable. We generally recognize revenue for professional services relating to loan servicing technologies over the contract period. For our loan origination system, we generally recognize revenue over the contract term, beginning on the commencement date of each contract. For foreclosure trustee services, we recognize revenue over the period during which we perform the related services, with full recognition upon completion and/or recording the related foreclosure deed. For loan disbursement processing services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements. We use judgment to determine the period over which we recognize revenue for certain of these services. For mortgage charge-off collections performed on behalf of our clients, we recognize revenue as a percentage of amounts collected following collection from the borrowers.
|
•
|
For real estate brokerage and auction services, we recognize revenue on a net basis as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage.
|
•
|
Reimbursable expenses revenue, primarily related to our property preservation and inspection services, real estate sales and our foreclosure trustee services businesses, is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.
|
•
|
For the majority of the services we provide, we recognize transactional revenue when the service is provided.
|
•
|
For our renovation services, revenue is recognized over the period of the construction activity, based on the estimated percentage of completion of the projects. We use judgment to determine the period over which we recognize revenue for certain of these services. For real estate brokerage and auction services, we recognize revenue on a net basis as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage. For the buy-renovate-lease-sell business, we recognize revenue associated with our sales of short-term investments in real estate on a gross basis as we assume the risks and rewards of ownership of the asset.
|
•
|
Reimbursable expenses revenue, primarily related to our real estate sales business, is included in revenue with an equal offsetting expense recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.
|
•
|
For the majority of the services we provide, we recognize transactional revenue when the service is provided. We generally earn fees for our post-charge-off consumer debt collection services as a percentage of the amount we collect on delinquent consumer receivables and recognize revenue following collection from the borrowers. We provide customer relationship management services for which we typically earn and recognize revenue on a per-person, per-call or per-minute basis as the related services are performed.
|
•
|
For the information technology (“IT”) infrastructure services we provide to Ocwen Financial Corporation (“Ocwen”), Front Yard Residential Corporation (“RESI”) and Altisource Asset Management Corporation (“AAMC”), we recognize revenue primarily based on the number of users of the applicable systems, fixed fees and the number and type of licensed platforms. We recognize revenue associated with implementation services upon completion and maintenance ratably over the related service period.
|
|
|
Impact of the adoption of Topic 606
|
||||||||||
(in thousands)
|
|
As reported
|
|
Adjustments
|
|
Balances without adoption of Topic 606
|
||||||
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
$
|
50,839
|
|
|
$
|
(28
|
)
|
|
$
|
50,811
|
|
Total current assets
|
|
251,296
|
|
|
(28
|
)
|
|
251,268
|
|
|||
Total assets
|
|
831,773
|
|
|
(28
|
)
|
|
831,745
|
|
|||
|
|
|
|
|
|
|
||||||
Other current liabilities
|
|
6,651
|
|
|
348
|
|
|
6,999
|
|
|||
Deferred revenue
|
|
15,489
|
|
|
(6,655
|
)
|
|
8,834
|
|
|||
Total current liabilities
|
|
94,560
|
|
|
(6,307
|
)
|
|
88,253
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred revenue, non-current
|
|
5,529
|
|
|
(3,890
|
)
|
|
1,639
|
|
|||
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
600,253
|
|
|
10,169
|
|
|
610,422
|
|
|||
Altisource equity
|
|
318,856
|
|
|
10,169
|
|
|
329,025
|
|
|||
Total equity
|
|
320,082
|
|
|
10,169
|
|
|
330,251
|
|
|||
Total liabilities and equity
|
|
831,773
|
|
|
(28
|
)
|
|
831,745
|
|
|
|
Impact of the adoption of Topic 606
|
||||||||||
(in thousands)
|
|
As reported
|
|
Adjustments
|
|
Balances without adoption of Topic 606
|
||||||
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
197,438
|
|
|
$
|
412
|
|
|
$
|
197,850
|
|
Cost of revenue
|
|
147,194
|
|
|
797
|
|
|
147,991
|
|
|||
Gross profit
|
|
50,244
|
|
|
(385
|
)
|
|
49,859
|
|
|||
Income from operations
|
|
7,120
|
|
|
(385
|
)
|
|
6,735
|
|
|||
Loss before income taxes and non-controlling interests
|
|
(4,972
|
)
|
|
(385
|
)
|
|
(5,357
|
)
|
|||
Income tax benefit
|
|
1,365
|
|
|
106
|
|
|
1,471
|
|
|||
Net loss
|
|
(3,607
|
)
|
|
(279
|
)
|
|
(3,886
|
)
|
|||
Net loss attributable to Altisource
|
|
(4,132
|
)
|
|
(279
|
)
|
|
(4,411
|
)
|
|
|
2018
|
|
2017
|
||
|
|
|
|
|
||
Mortgage Market
|
|
60
|
%
|
|
68
|
%
|
Real Estate Market
|
|
1
|
%
|
|
1
|
%
|
Other Businesses, Corporate and Eliminations
|
|
9
|
%
|
|
14
|
%
|
Consolidated revenue
|
|
52
|
%
|
|
59
|
%
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Billed
|
|
$
|
42,509
|
|
|
$
|
40,787
|
|
Unbilled
|
|
19,231
|
|
|
22,532
|
|
||
|
|
61,740
|
|
|
63,319
|
|
||
Less: Allowance for doubtful accounts
|
|
(10,901
|
)
|
|
(10,579
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
50,839
|
|
|
$
|
52,740
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Short-term investments in real estate
|
|
$
|
39,320
|
|
|
$
|
29,405
|
|
Maintenance agreements, current portion
|
|
6,362
|
|
|
8,014
|
|
||
Income taxes receivable
|
|
9,702
|
|
|
9,227
|
|
||
Prepaid expenses
|
|
7,748
|
|
|
7,898
|
|
||
Other current assets
|
|
10,823
|
|
|
10,198
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
73,955
|
|
|
$
|
64,742
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Computer hardware and software
|
|
$
|
180,488
|
|
|
$
|
179,567
|
|
Leasehold improvements
|
|
33,202
|
|
|
33,417
|
|
||
Furniture and fixtures
|
|
14,015
|
|
|
14,092
|
|
||
Office equipment and other
|
|
9,574
|
|
|
9,388
|
|
||
|
|
237,279
|
|
|
236,464
|
|
||
Less: Accumulated depreciation and amortization
|
|
(171,694
|
)
|
|
(163,191
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
65,585
|
|
|
$
|
73,273
|
|
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Balance as of March 31, 2018 and December 31, 2017
|
|
$
|
73,259
|
|
|
$
|
10,056
|
|
|
$
|
2,968
|
|
|
$
|
86,283
|
|
|
|
Weighted average estimated useful life
(in years)
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net book value
|
||||||||||||||||||
(in thousands)
|
|
|
March 31,
2018 |
|
December 31,
2017 |
|
March 31,
2018 |
|
December 31,
2017 |
|
March 31,
2018 |
|
December 31,
2017 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Definite lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer related intangible assets
|
|
10
|
|
$
|
277,828
|
|
|
$
|
277,828
|
|
|
$
|
(194,470
|
)
|
|
$
|
(188,258
|
)
|
|
$
|
83,358
|
|
|
$
|
89,570
|
|
Operating agreement
|
|
20
|
|
35,000
|
|
|
35,000
|
|
|
(14,307
|
)
|
|
(13,865
|
)
|
|
20,693
|
|
|
21,135
|
|
||||||
Trademarks and trade names
|
|
13
|
|
15,354
|
|
|
15,354
|
|
|
(9,080
|
)
|
|
(8,881
|
)
|
|
6,274
|
|
|
6,473
|
|
||||||
Non-compete agreements
|
|
4
|
|
1,560
|
|
|
1,560
|
|
|
(995
|
)
|
|
(897
|
)
|
|
565
|
|
|
663
|
|
||||||
Intellectual property
|
|
10
|
|
300
|
|
|
300
|
|
|
(123
|
)
|
|
(115
|
)
|
|
177
|
|
|
185
|
|
||||||
Other intangible assets
|
|
5
|
|
3,745
|
|
|
3,745
|
|
|
(1,894
|
)
|
|
(1,706
|
)
|
|
1,851
|
|
|
2,039
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
|
|
$
|
333,787
|
|
|
$
|
333,787
|
|
|
$
|
(220,869
|
)
|
|
$
|
(213,722
|
)
|
|
$
|
112,918
|
|
|
$
|
120,065
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Security deposits
|
|
$
|
5,150
|
|
|
$
|
5,304
|
|
Restricted cash
|
|
4,135
|
|
|
3,837
|
|
||
Maintenance agreements, non-current portion
|
|
189
|
|
|
362
|
|
||
Other
|
|
538
|
|
|
692
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
10,012
|
|
|
$
|
10,195
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Accounts payable
|
|
$
|
11,324
|
|
|
$
|
15,682
|
|
Accrued expenses - general
|
|
30,628
|
|
|
27,268
|
|
||
Accrued salaries and benefits
|
|
24,523
|
|
|
41,363
|
|
||
Income taxes payable
|
|
—
|
|
|
87
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
66,475
|
|
|
$
|
84,400
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Unfunded cash account balances
|
|
$
|
3,597
|
|
|
$
|
5,900
|
|
Other
|
|
3,054
|
|
|
3,514
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
6,651
|
|
|
$
|
9,414
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Senior secured term loan
|
|
$
|
412,095
|
|
|
$
|
413,581
|
|
Less: Debt issuance costs, net
|
|
(3,381
|
)
|
|
(3,158
|
)
|
||
Less: Unamortized discount, net
|
|
(1,053
|
)
|
|
(1,142
|
)
|
||
Net long-term debt
|
|
407,661
|
|
|
409,281
|
|
||
Less: Current portion
|
|
(5,945
|
)
|
|
(5,945
|
)
|
||
|
|
|
|
|
||||
Long-term debt, less current portion
|
|
$
|
401,716
|
|
|
$
|
403,336
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
Income tax liabilities
|
|
$
|
5,825
|
|
|
$
|
5,955
|
|
Deferred revenue
|
|
5,529
|
|
|
2,101
|
|
||
Other non-current liabilities
|
|
4,061
|
|
|
4,226
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
15,415
|
|
|
$
|
12,282
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
(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
|
|
$
|
84,850
|
|
|
$
|
84,850
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
105,006
|
|
|
$
|
105,006
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
|
4,135
|
|
|
4,135
|
|
|
—
|
|
|
—
|
|
|
3,837
|
|
|
3,837
|
|
|
—
|
|
|
—
|
|
||||||||
Investment in equity securities
|
|
41,652
|
|
|
41,652
|
|
|
—
|
|
|
—
|
|
|
49,153
|
|
|
49,153
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt
|
|
412,095
|
|
|
—
|
|
|
412,095
|
|
|
—
|
|
|
413,581
|
|
|
—
|
|
|
407,377
|
|
|
—
|
|
|
|
Three months ended
March 31, 2018 |
||||
|
|
Black-Scholes
|
|
Binomial
|
||
|
|
|
|
|
||
Risk-free interest rate (%)
|
|
2.66 – 2.70
|
|
|
1.65 – 2.77
|
|
Expected stock price volatility (%)
|
|
70.31 – 71.81
|
|
|
71.81
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
Expected option life (in years)
|
|
6.00 – 6.25
|
|
|
2.56 – 4.32
|
|
Fair value
|
|
$16.17 – $17.15
|
|
|
$15.58 – $18.28
|
|
|
|
Three months ended March 31,
|
||||||
(in thousands, except per share amounts)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Weighted average grant date fair value of stock options granted per share
|
|
$
|
16.20
|
|
|
$
|
—
|
|
Intrinsic value of options exercised
|
|
4,320
|
|
|
868
|
|
||
Grant date fair value of stock options that vested
|
|
23
|
|
|
89
|
|
|
Number of options
|
|
Weighted average exercise price
|
|
Weighted average contractual term
(in years)
|
|
Aggregate intrinsic value
(in thousands)
|
|||||
|
|
|
|
|
|
|
|
|||||
Outstanding at December 31, 2017
|
1,745,906
|
|
|
$
|
28.20
|
|
|
4.96
|
|
$
|
10,202
|
|
Granted
|
260,697
|
|
|
24.95
|
|
|
|
|
|
|||
Exercised
|
(286,252
|
)
|
|
9.14
|
|
|
|
|
|
|
||
Forfeited
|
(96,734
|
)
|
|
36.35
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||||
Outstanding at March 31, 2018
|
1,623,617
|
|
|
30.55
|
|
|
6.09
|
|
3,999
|
|
||
|
|
|
|
|
|
|
|
|||||
Exercisable at March 31, 2018
|
841,472
|
|
|
27.81
|
|
|
3.95
|
|
2,817
|
|
|
Number of restricted shares
|
|
|
|
|
Outstanding at December 31, 2017
|
356,509
|
|
Granted
|
254,619
|
|
Forfeited/canceled
|
(43,697
|
)
|
|
|
|
Outstanding at March 31, 2018
|
567,431
|
|
(in thousands)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Service revenue
|
|
$
|
188,766
|
|
|
$
|
229,839
|
|
Reimbursable expenses
|
|
8,147
|
|
|
10,029
|
|
||
Non-controlling interests
|
|
525
|
|
|
615
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
197,438
|
|
|
$
|
240,483
|
|
(in thousands)
|
|
Revenue recognized when services are performed or assets are sold
|
|
Revenue related to technology platforms and professional services
|
|
Reimbursable expenses revenue
|
|
Total revenue
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Mortgage Market
|
|
|
|
|
|
|
|
|
||||||||
Servicer Solutions
|
|
$
|
129,536
|
|
|
$
|
18,273
|
|
|
$
|
7,602
|
|
|
$
|
155,411
|
|
Origination Solutions
|
|
9,185
|
|
|
2,686
|
|
|
56
|
|
|
11,927
|
|
||||
Total Mortgage Market
|
|
138,721
|
|
|
20,959
|
|
|
7,658
|
|
|
167,338
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Real Estate Market
|
|
|
|
|
|
|
|
|
||||||||
Consumer Real Estate Solutions
|
|
1,405
|
|
|
—
|
|
|
2
|
|
|
1,407
|
|
||||
Real Estate Investor Solutions
|
|
13,398
|
|
|
—
|
|
|
475
|
|
|
13,873
|
|
||||
Total Real Estate Market
|
|
14,803
|
|
|
—
|
|
|
477
|
|
|
15,280
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Businesses, Corporate and Eliminations
|
|
13,432
|
|
|
1,376
|
|
|
12
|
|
|
14,820
|
|
||||
Total revenue
|
|
$
|
166,956
|
|
|
$
|
22,335
|
|
|
$
|
8,147
|
|
|
$
|
197,438
|
|
(in thousands)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Compensation and benefits
|
|
$
|
54,866
|
|
|
$
|
63,092
|
|
Outside fees and services
|
|
65,098
|
|
|
80,959
|
|
||
Cost of real estate sold
|
|
3,179
|
|
|
4,935
|
|
||
Technology and telecommunications
|
|
9,451
|
|
|
11,351
|
|
||
Reimbursable expenses
|
|
8,147
|
|
|
10,029
|
|
||
Depreciation and amortization
|
|
6,453
|
|
|
7,587
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
147,194
|
|
|
$
|
177,953
|
|
(in thousands)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Compensation and benefits
|
|
$
|
13,569
|
|
|
$
|
12,506
|
|
Occupancy related costs
|
|
8,434
|
|
|
10,273
|
|
||
Amortization of intangible assets
|
|
7,147
|
|
|
9,146
|
|
||
Marketing costs
|
|
3,607
|
|
|
4,269
|
|
||
Professional services
|
|
3,226
|
|
|
3,730
|
|
||
Depreciation and amortization
|
|
2,268
|
|
|
2,421
|
|
||
Other
|
|
4,873
|
|
|
5,356
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
43,124
|
|
|
$
|
47,701
|
|
(in thousands)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Interest income
|
|
$
|
131
|
|
|
$
|
98
|
|
Other, net
|
|
1,141
|
|
|
617
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
1,272
|
|
|
$
|
715
|
|
(in thousands, except per share data)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Net (loss) income attributable to Altisource
|
|
$
|
(4,132
|
)
|
|
$
|
6,545
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding, basic
|
|
17,378
|
|
|
18,662
|
|
||
Dilutive effect of stock options and restricted shares
|
|
—
|
|
|
642
|
|
||
|
|
|
|
|
||||
Weighted average common shares outstanding, diluted
|
|
17,378
|
|
|
19,304
|
|
||
|
|
|
|
|
||||
(Loss) earnings per share:
|
|
|
|
|
||||
Basic
|
|
$
|
(0.24
|
)
|
|
$
|
0.35
|
|
Diluted
|
|
$
|
(0.24
|
)
|
|
$
|
0.34
|
|
•
|
Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
|
•
|
Ocwen loses, sells or transfers a significant portion or all of its remaining 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
|
•
|
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
|
•
|
Altisource otherwise fails to be retained as a service provider
|
|
|
Three months ended March 31, 2018
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
167,338
|
|
|
$
|
15,280
|
|
|
$
|
14,820
|
|
|
$
|
197,438
|
|
Cost of revenue
|
|
111,073
|
|
|
18,554
|
|
|
17,567
|
|
|
147,194
|
|
||||
Gross profit (loss)
|
|
56,265
|
|
|
(3,274
|
)
|
|
(2,747
|
)
|
|
50,244
|
|
||||
Selling, general and administrative expenses
|
|
23,374
|
|
|
4,118
|
|
|
15,632
|
|
|
43,124
|
|
||||
Income (loss) from operations
|
|
32,891
|
|
|
(7,392
|
)
|
|
(18,379
|
)
|
|
7,120
|
|
||||
Total other income (expense), net
|
|
16
|
|
|
2
|
|
|
(12,110
|
)
|
|
(12,092
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
32,907
|
|
|
$
|
(7,390
|
)
|
|
$
|
(30,489
|
)
|
|
$
|
(4,972
|
)
|
|
|
Three months ended March 31, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
204,723
|
|
|
$
|
20,063
|
|
|
$
|
15,697
|
|
|
$
|
240,483
|
|
Cost of revenue
|
|
140,150
|
|
|
22,143
|
|
|
15,660
|
|
|
177,953
|
|
||||
Gross profit (loss)
|
|
64,573
|
|
|
(2,080
|
)
|
|
37
|
|
|
62,530
|
|
||||
Selling, general and administrative expenses
|
|
28,682
|
|
|
4,325
|
|
|
14,694
|
|
|
47,701
|
|
||||
Income (loss) from operations
|
|
35,891
|
|
|
(6,405
|
)
|
|
(14,657
|
)
|
|
14,829
|
|
||||
Total other income (expense), net
|
|
10
|
|
|
—
|
|
|
(5,093
|
)
|
|
(5,083
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
35,901
|
|
|
$
|
(6,405
|
)
|
|
$
|
(19,750
|
)
|
|
$
|
9,746
|
|
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
March 31, 2018
|
|
$
|
285,989
|
|
|
$
|
82,574
|
|
|
$
|
463,210
|
|
|
$
|
831,773
|
|
December 31, 2017
|
|
304,346
|
|
|
64,624
|
|
|
496,194
|
|
|
865,164
|
|
(in thousands)
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
United States
|
|
$
|
40,068
|
|
|
$
|
46,268
|
|
Luxembourg
|
|
16,686
|
|
|
16,688
|
|
||
India
|
|
6,797
|
|
|
8,136
|
|
||
Philippines
|
|
1,916
|
|
|
2,038
|
|
||
Uruguay
|
|
118
|
|
|
143
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
65,585
|
|
|
$
|
73,273
|
|
•
|
The Term B Loans mature in
April 2024
while the term loans under the prior credit agreement would have matured in
December 2020
.
|
•
|
The Credit Agreement includes a revolving credit facility with a maintenance covenant that will apply to Altisource S.à r.l. only if funds are drawn on the revolving credit facility as of the last day of a fiscal quarter.
|
•
|
The new Term B Loans have no financial maintenance covenants and are similar to Altisource S.à r.l.’s term loans under the prior credit agreement.
|
•
|
The net debt definition in the Credit Agreement permits Altisource S.à r.l. to reduce net debt by up to
$75 million
in marketable securities while the prior credit agreement did not reduce net debt by marketable securities.
|
•
|
The Available Amount accumulated under the prior credit agreement is being carried over to the Credit Agreement. The Available Amount can be used to make certain restricted payments, investments and payments, subject to certain conditions set forth in the Credit Agreement.
|
•
|
Altisource S.à r.l. may incur incremental indebtedness under the Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed
$125 million
(compared to
$200 million
in the prior credit agreement), subject to certain conditions set forth in the Credit Agreement, including a sublimit of
$80 million
with respect to incremental revolving credit commitments. The lenders have no obligation to provide any incremental indebtedness.
|
•
|
The new Term B Loans amortize
$41.2 million
in year 1,
$41.2 million
in year 2 and
$12.4 million
per year in each of the subsequent years. Amortization under the prior credit agreement was equal to
$5.9 million
per year.
|
•
|
assumptions related to sources of liquidity and the adequacy of financial resources;
|
•
|
assumptions about our ability to grow our business, including executing on our strategic initiatives;
|
•
|
assumptions about our ability to improve margins;
|
•
|
assumptions regarding the impact of seasonality;
|
•
|
estimates regarding our effective tax rate; and
|
•
|
estimates regarding our reserves and valuations.
|
•
|
our ability to retain Ocwen Financial Corporation (“Ocwen”) as a customer or our ability to receive the anticipated volume of referrals from Ocwen;
|
•
|
our ability to reach agreement with New Residential Investment Corp. (individually, together with one or more of its subsidiaries, or one or more of its subsidiaries individually, “NRZ”) on a Services Agreement or the termination of the Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”);
|
•
|
our ability to execute on our strategic businesses;
|
•
|
our ability to retain our existing customers, expand relationships and attract new customers;
|
•
|
the level of loan delinquencies and charge-offs;
|
•
|
the level of origination volume;
|
•
|
technology failures;
|
•
|
the outsourcing trends;
|
•
|
our ability to raise debt;
|
•
|
our ability to retain our directors, executive officers and key personnel;
|
•
|
our ability to integrate acquired businesses;
|
•
|
our ability to comply with, and burdens imposed by, governmental regulations and policies and any changes in such regulations and policies; and
|
•
|
significant changes in the Luxembourg tax regime or interpretations of the Luxembourg tax regime.
|
• Property preservation and inspection services
• Real estate brokerage and auction services
• Title insurance (agent and related services) and settlement services
• Appraisal management services and broker and non-broker valuation services
• Foreclosure trustee services
• Residential and commercial loan servicing technologies
|
|
• Vendor management, marketplace transaction management and payment management technologies
• Document management platform
• Default services (real estate owned (“REO”), foreclosure, bankruptcy, eviction) technologies
• Mortgage charge-off collections
• Residential and commercial loan disbursement processing, risk mitigation and construction inspection services
|
• Title insurance (agent and related services) and settlement services
• Appraisal management services and broker and non-broker valuation services
• Fulfillment services
• Loan origination system
|
|
• Document management platform
• Certified loan insurance and certification
• Vendor management oversight platform
• Mortgage banker cooperative management
• Mortgage trading platform
|
• Real estate brokerage doing business as Owners.com
®
• Title insurance (agent and related services) and settlement services
|
|
• Mortgage brokerage
• Homeowners insurance
|
• Property preservation and inspection services
• Real estate brokerage and auction services
• Data solutions
• Title insurance (agent and related services) and settlement services
|
|
• Buy-renovate-lease-sell
• Renovation services
• Property management services
• Appraisal management services and broker and non-broker valuation services
|
•
|
Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
|
•
|
Ocwen loses, sells or transfers a significant portion or all of its remaining 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
|
•
|
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
|
•
|
Altisource otherwise fails to be retained as a service provider
|
•
|
The average number of loans serviced by Ocwen on REALServicing (including those MSRs owned by NRZ and subserviced by Ocwen) was approximately
1.2 million
for the
three
months ended
March 31, 2018
compared to
1.3 million
for the
three
months ended
March 31, 2017
, a
decrease
of
13%
. The average number of delinquent non-GSE loans serviced by Ocwen on REALServicing was approximately
171 thousand
for the
three
months ended
March 31, 2018
compared to
191 thousand
for the
three
months ended
March 31, 2017
, a
decrease
of
10%
.
|
•
|
Effective January 1, 2018, the Company adopted Accounting Standards Update No. 2016-01
, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
, which requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. Previously, changes in the fair value of the Company’s available for sale securities were included in comprehensive income. During the
three
months ended
March 31, 2018
, net loss included an unrealized loss from our investment in RESI common shares of $5.6 million, net of a $1.9 million income tax benefit. During the
three
months ended
March 31, 2017
, comprehensive income included an unrealized gain from our investment in RESI common shares of
$12.7 million
, net of a $4.7 million income tax provision. See
Note 1
to the condensed consolidated financial statements for additional information on the adoption of the new accounting standard on investments in equity securities.
|
(in thousands, except per share data)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Service revenue
|
|
|
|
|
|
|
|
|
|
||
Mortgage Market
|
|
$
|
159,155
|
|
|
$
|
194,973
|
|
|
(18
|
)
|
Real Estate Market
|
|
14,803
|
|
|
19,189
|
|
|
(23
|
)
|
||
Other Businesses, Corporate and Eliminations
|
|
14,808
|
|
|
15,677
|
|
|
(6
|
)
|
||
Total service revenue
|
|
188,766
|
|
|
229,839
|
|
|
(18
|
)
|
||
Reimbursable expenses
|
|
8,147
|
|
|
10,029
|
|
|
(19
|
)
|
||
Non-controlling interests
|
|
525
|
|
|
615
|
|
|
(15
|
)
|
||
Total revenue
|
|
197,438
|
|
|
240,483
|
|
|
(18
|
)
|
||
Cost of revenue
|
|
147,194
|
|
|
177,953
|
|
|
(17
|
)
|
||
Gross profit
|
|
50,244
|
|
|
62,530
|
|
|
(20
|
)
|
||
Selling, general and administrative expenses
|
|
43,124
|
|
|
47,701
|
|
|
(10
|
)
|
||
Income from operations
|
|
7,120
|
|
|
14,829
|
|
|
(52
|
)
|
||
Other income (expense), net:
|
|
|
|
|
|
|
|||||
Interest expense
|
|
(5,863
|
)
|
|
(5,798
|
)
|
|
1
|
|
||
Unrealized loss on investments in equity securities
|
|
(7,501
|
)
|
|
—
|
|
|
N/M
|
|
||
Other income (expense), net
|
|
1,272
|
|
|
715
|
|
|
78
|
|
||
Total other income (expense), net
|
|
(12,092
|
)
|
|
(5,083
|
)
|
|
138
|
|
||
|
|
|
|
|
|
|
|||||
(Loss) income before income taxes and non-controlling interests
|
|
(4,972
|
)
|
|
9,746
|
|
|
(151
|
)
|
||
Income tax benefit (provision)
|
|
1,365
|
|
|
(2,586
|
)
|
|
(153
|
)
|
||
|
|
|
|
|
|
|
|||||
Net (loss) income
|
|
(3,607
|
)
|
|
7,160
|
|
|
(150
|
)
|
||
Net income attributable to non-controlling interests
|
|
(525
|
)
|
|
(615
|
)
|
|
(15
|
)
|
||
|
|
|
|
|
|
|
|||||
Net (loss) income attributable to Altisource
|
|
$
|
(4,132
|
)
|
|
$
|
6,545
|
|
|
(163
|
)
|
|
|
|
|
|
|
|
|||||
Margins:
|
|
|
|
|
|
|
|
|
|
||
Gross profit/service revenue
|
|
27
|
%
|
|
27
|
%
|
|
|
|
||
Income from operations/service revenue
|
|
4
|
%
|
|
6
|
%
|
|
|
|
||
|
|
|
|
|
|
|
|||||
(Loss) earnings per share:
|
|
|
|
|
|
|
|||||
Basic
|
|
$
|
(0.24
|
)
|
|
$
|
0.35
|
|
|
(169
|
)
|
Diluted
|
|
$
|
(0.24
|
)
|
|
$
|
0.34
|
|
|
(171
|
)
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
$
|
13,569
|
|
|
$
|
12,506
|
|
|
8
|
|
Occupancy related costs
|
|
8,434
|
|
|
10,273
|
|
|
(18
|
)
|
||
Amortization of intangible assets
|
|
7,147
|
|
|
9,146
|
|
|
(22
|
)
|
||
Marketing costs
|
|
3,607
|
|
|
4,269
|
|
|
(16
|
)
|
||
Professional services
|
|
3,226
|
|
|
3,730
|
|
|
(14
|
)
|
||
Depreciation and amortization
|
|
2,268
|
|
|
2,421
|
|
|
(6
|
)
|
||
Other
|
|
4,873
|
|
|
5,356
|
|
|
(9
|
)
|
||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses
|
|
$
|
43,124
|
|
|
$
|
47,701
|
|
|
(10
|
)
|
|
|
Three months ended March 31, 2018
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
159,155
|
|
|
$
|
14,803
|
|
|
$
|
14,808
|
|
|
$
|
188,766
|
|
Reimbursable expenses
|
|
7,658
|
|
|
477
|
|
|
12
|
|
|
8,147
|
|
||||
Non-controlling interests
|
|
525
|
|
|
—
|
|
|
—
|
|
|
525
|
|
||||
|
|
167,338
|
|
|
15,280
|
|
|
14,820
|
|
|
197,438
|
|
||||
Cost of revenue
|
|
111,073
|
|
|
18,554
|
|
|
17,567
|
|
|
147,194
|
|
||||
Gross profit (loss)
|
|
56,265
|
|
|
(3,274
|
)
|
|
(2,747
|
)
|
|
50,244
|
|
||||
Selling, general and administrative expenses
|
|
23,374
|
|
|
4,118
|
|
|
15,632
|
|
|
43,124
|
|
||||
Income (loss) from operations
|
|
32,891
|
|
|
(7,392
|
)
|
|
(18,379
|
)
|
|
7,120
|
|
||||
Total other income (expense), net
|
|
16
|
|
|
2
|
|
|
(12,110
|
)
|
|
(12,092
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
32,907
|
|
|
$
|
(7,390
|
)
|
|
$
|
(30,489
|
)
|
|
$
|
(4,972
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (loss)/service revenue
|
|
35
|
%
|
|
(22
|
)%
|
|
(19
|
)%
|
|
27
|
%
|
||||
Income (loss) from operations/service revenue
|
|
21
|
%
|
|
(50
|
)%
|
|
(124
|
)%
|
|
4
|
%
|
|
|
Three months ended March 31, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
194,973
|
|
|
$
|
19,189
|
|
|
$
|
15,677
|
|
|
$
|
229,839
|
|
Reimbursable expenses
|
|
9,135
|
|
|
874
|
|
|
20
|
|
|
10,029
|
|
||||
Non-controlling interests
|
|
615
|
|
|
—
|
|
|
—
|
|
|
615
|
|
||||
|
|
204,723
|
|
|
20,063
|
|
|
15,697
|
|
|
240,483
|
|
||||
Cost of revenue
|
|
140,150
|
|
|
22,143
|
|
|
15,660
|
|
|
177,953
|
|
||||
Gross profit (loss)
|
|
64,573
|
|
|
(2,080
|
)
|
|
37
|
|
|
62,530
|
|
||||
Selling, general and administrative expenses
|
|
28,682
|
|
|
4,325
|
|
|
14,694
|
|
|
47,701
|
|
||||
Income (loss) from operations
|
|
35,891
|
|
|
(6,405
|
)
|
|
(14,657
|
)
|
|
14,829
|
|
||||
Total other income (expense), net
|
|
10
|
|
|
—
|
|
|
(5,093
|
)
|
|
(5,083
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
35,901
|
|
|
$
|
(6,405
|
)
|
|
$
|
(19,750
|
)
|
|
$
|
9,746
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (loss)/service revenue
|
|
33
|
%
|
|
(11
|
)%
|
|
—
|
%
|
|
27
|
%
|
||||
Income (loss) from operations/service revenue
|
|
18
|
%
|
|
(33
|
)%
|
|
(93
|
)%
|
|
6
|
%
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Service revenue:
|
|
|
|
|
|
|
|
|
|||
Servicer Solutions
|
|
$
|
147,809
|
|
|
$
|
183,433
|
|
|
(19
|
)
|
Origination Solutions
|
|
11,346
|
|
|
11,540
|
|
|
(2
|
)
|
||
Total service revenue
|
|
159,155
|
|
|
194,973
|
|
|
(18
|
)
|
||
|
|
|
|
|
|
|
|||||
Reimbursable expenses:
|
|
|
|
|
|
|
|||||
Servicer Solutions
|
|
7,602
|
|
|
9,036
|
|
|
(16
|
)
|
||
Origination Solutions
|
|
56
|
|
|
99
|
|
|
(43
|
)
|
||
Total reimbursable expenses
|
|
7,658
|
|
|
9,135
|
|
|
(16
|
)
|
||
|
|
|
|
|
|
|
|||||
Non-controlling interests
|
|
525
|
|
|
615
|
|
|
(15
|
)
|
||
|
|
|
|
|
|
|
|||||
Total revenue
|
|
$
|
167,338
|
|
|
$
|
204,723
|
|
|
(18
|
)
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
$
|
4,857
|
|
|
$
|
5,154
|
|
|
(6
|
)
|
Occupancy related costs
|
|
5,254
|
|
|
5,216
|
|
|
1
|
|
||
Amortization of intangible assets
|
|
6,519
|
|
|
8,435
|
|
|
(23
|
)
|
||
Professional services
|
|
1,446
|
|
|
2,230
|
|
|
(35
|
)
|
||
Marketing costs
|
|
1,728
|
|
|
2,472
|
|
|
(30
|
)
|
||
Depreciation and amortization
|
|
896
|
|
|
863
|
|
|
4
|
|
||
Other
|
|
2,674
|
|
|
4,312
|
|
|
(38
|
)
|
||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses
|
|
$
|
23,374
|
|
|
$
|
28,682
|
|
|
(19
|
)
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
$
|
709
|
|
|
$
|
599
|
|
|
18
|
|
Occupancy related costs
|
|
571
|
|
|
672
|
|
|
(15
|
)
|
||
Amortization of intangible assets
|
|
211
|
|
|
211
|
|
|
—
|
|
||
Professional services
|
|
158
|
|
|
323
|
|
|
(51
|
)
|
||
Marketing costs
|
|
1,794
|
|
|
1,724
|
|
|
4
|
|
||
Depreciation and amortization
|
|
127
|
|
|
156
|
|
|
(19
|
)
|
||
Other
|
|
548
|
|
|
640
|
|
|
(14
|
)
|
||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses
|
|
$
|
4,118
|
|
|
$
|
4,325
|
|
|
(5
|
)
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
$
|
8,003
|
|
|
$
|
6,753
|
|
|
19
|
|
Occupancy related costs
|
|
2,609
|
|
|
4,385
|
|
|
(41
|
)
|
||
Amortization of intangible assets
|
|
417
|
|
|
500
|
|
|
(17
|
)
|
||
Professional services
|
|
1,622
|
|
|
1,177
|
|
|
38
|
|
||
Marketing costs
|
|
85
|
|
|
73
|
|
|
16
|
|
||
Depreciation and amortization
|
|
1,245
|
|
|
1,402
|
|
|
(11
|
)
|
||
Other
|
|
1,651
|
|
|
404
|
|
|
309
|
|
||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses
|
|
$
|
15,632
|
|
|
$
|
14,694
|
|
|
6
|
|
(in thousands)
|
|
2018
|
|
2017
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Net (loss) income adjusted for non-cash items
|
|
$
|
21,566
|
|
|
$
|
30,796
|
|
|
(30
|
)
|
Changes in operating assets and liabilities
|
|
(30,135
|
)
|
|
(49,155
|
)
|
|
39
|
|
||
Cash flows used in operating activities
|
|
(8,569
|
)
|
|
(18,359
|
)
|
|
53
|
|
||
Cash flows used in investing activities
|
|
(1,258
|
)
|
|
(1,944
|
)
|
|
35
|
|
||
Cash flows used in financing activities
|
|
(10,031
|
)
|
|
(11,893
|
)
|
|
16
|
|
||
Net decrease in cash, cash equivalents an
d restricted cash
|
|
(19,858
|
)
|
|
(32,196
|
)
|
|
38
|
|
||
Cash, cash equivalents and restricted cash at the beginn
ing of the period
|
|
108,843
|
|
|
153,421
|
|
|
(29
|
)
|
||
|
|
|
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at the
end of the period
|
|
$
|
88,985
|
|
|
$
|
121,225
|
|
|
(27
|
)
|
a)
|
Evaluation of Disclosure Controls and Procedures
|
b)
|
Internal Control over Financial Reporting
|
Period
|
|
Total number of shares purchased
|
|
Weighted average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
(1)
|
|
Maximum number of shares that may yet be purchased under the plans or programs
(1)
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Common stock:
|
|
|
|
|
|
|
|
|
|||||
January 1 – 31, 2018
|
|
177,907
|
|
|
$
|
28.07
|
|
|
177,907
|
|
|
3,245,044
|
|
February 1 – 28, 2018
|
|
35,200
|
|
|
26.90
|
|
|
35,200
|
|
|
3,209,844
|
|
|
March 1 – 31, 2018
|
|
147,625
|
|
|
27.38
|
|
|
147,625
|
|
|
3,062,219
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
360,732
|
|
|
$
|
27.67
|
|
|
360,732
|
|
|
3,062,219
|
|
(1)
|
On
May 17, 2017
, our shareholders approved the renewal of the share repurchase program originally approved by the shareholders on
May 18, 2016
, which replaced the previous share repurchase program and authorizes us to purchase up to
4.6 million
shares of our common stock in the open market, subject to certain parameters.
|
Exhibit Number
|
|
Exhibit Description
|
10.1
*
|
|
|
|
|
|
10.2
*
†
|
|
|
|
|
|
10.3
*
†
|
|
|
|
|
|
|
||
|
|
|
31.1
*
|
|
|
|
|
|
31.2
*
|
|
|
|
|
|
32.1
*
|
|
|
|
|
|
101
*
|
|
Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2018 is formatted in XBRL interactive data files: (i) Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017; (ii) Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2018 and 2017; (iii) Condensed Consolidated Statements of Equity for the three months ended March 31, 2018 and 2017; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017; and (v) Notes to Condensed Consolidated Financial Statements.
|
|
|
|
______________________________________
|
||
*
|
|
Filed herewith.
|
†
|
|
Denotes a management contract or compensatory arrangement.
|
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
April 26, 2018
|
|
By:
|
/s/ William B. Shepro
|
|
|
|
|
William B. Shepro
|
|
|
|
|
Director and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
Date:
|
April 26, 2018
|
|
By:
|
/s/ Michelle D. Esterman
|
|
|
|
|
Michelle D. Esterman
|
|
|
|
|
Executive Vice President, Finance
|
|
|
|
|
(Principal Accounting Officer)
|
1 Year Altisource Portfolio Sol... Chart |
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