Revenues and adjusted EBITDA contributions from the BAC Acquisition for 2013 are expected to be approximately $20.0 million and $7.0 million (before one-time integration costs), respectively. One-time integration costs are expected to aggregate about $18.0 million in 2013. The Company plans to issue guidance related to the impact of the acquisition of MSB and DataQuick, as appropriate, upon the closing of the transaction.
Teleconference/Webcast
CoreLogic management will host a live webcast and conference call on Thursday, October 24, 2013, at 8:00 a.m. Pacific time (11:00 a.m. Eastern Time) to discuss these results. All interested parties are invited to listen to the event via webcast on the CoreLogic website at http://investor.corelogic.com. Alternatively, participants may use the following dial-in numbers: 1-866-318-8618 for U.S./Canada callers or 617-399-5137 for international callers. The Conference ID for the call is 78296778.
Additional detail on the Company's third quarter results is included in the quarterly financial supplement, available on the Investor Relations page at http://investor.corelogic.com.
A replay of the webcast will be available on the CoreLogic investor website for 30 days and also through the conference call number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 34682506.
About CoreLogic
CoreLogic (NYSE:
CLGX) is a leading property information, analytics and services provider in the United States and Australia. The Company's combined data from public, contributory and proprietary sources includes over 3.3 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, visit
www.corelogic.com.
Safe Harbor / Forward Looking Statements
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the Company's overall financial performance, including future revenue and profit growth, future margin improvement, future adjusted EBITDA and adjusted EPS performance, and future free cash flow generation and margin expansion; our ability to meet our 2013 business, strategic growth and financial objectives; the Company's full-year expected results and 2013 financial guidance; estimated future cost savings and the impact thereof; mortgage and housing market trends, including mortgage origination and mortgage delinquency volumes; net operating expense reductions, expected non-recurring cash and non-cash charges; targeted cost reductions including Project 30 and the Technology Transformation Initiative; the anticipated benefits of the acquisitions of MSB, DataQuick, and Bank of America's flood and tax processing operations to the Company's 2013 financial results and the expected timing thereof; and our plans to continue to return capital to shareholders through our 2013 share repurchase program, including the expected number of shares expected to be repurchased. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include failure to consummate or delay in consummating the transaction if required closing conditions or regulatory clearances are not satisfied or for any other reason; failure to successfully integrate the operations, technology, infrastructure and employees of MSB, DataQuick and Bank of America's flood and tax processing operations into our Data & Analytics and Mortgage Origination Services segments; and the additional risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K, as amended or updated by our Quarterly Reports on Form 10-Q. These additional risks and uncertainties include but are not limited to: limitations on access to or increase in prices for data from various external sources; government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including the Consumer Financial Protection Bureau and with respect to the use of public records and consumer data; compromises in the security of our data transmissions, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer lending industries and the economy generally, together with our customer concentration and the impact of these factors thereon; our growth strategy and cost reduction plan and our ability to significantly decrease future allocated costs and other amounts in connection therewith; risks related to the outsourcing of services and our international operations; our ability to realize the anticipated benefits of certain acquisitions and the timing thereof; the inability to control the operations and dividend policies of our partially-owned affiliates; impairments in our goodwill or other intangible assets; and the restrictive covenants in the agreements governing certain of our outstanding indebtedness. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
This press release contains certain non-GAAP financial measures which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is included in this press release. The Company is not able to provide a reconciliation of projected adjusted EBIDTA or projected adjusted earnings per share, where provided, to expected results due to the unknown effect, timing and potential significance of special charges or gains.
The Company believes that its presentation of non-GAAP measures, such as adjusted EBITDA and adjusted EPS provides useful supplemental information to investors and management regarding CoreLogic's financial condition and results. Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortization, non-cash stock compensation, non-operating gains/losses and other one-time adjustments plus pretax equity in earnings of affiliates. Adjusted net income is defined as income from continuing operations before equity earnings of affiliates, adjusted for non-cash stock compensation, non-operating gains/losses, and other adjustments plus pretax equity in earnings of affiliates, tax affected at an assumed effective tax rate of 40%. Adjusted EPS is derived by dividing adjusted net income by diluted weighted shares. Other firms may calculate non-GAAP measures differently than CoreLogic, which limits comparability between companies.
(Additional Financial Data Follow)
CORELOGIC, INC. | |||||||||||||||
CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||
UNAUDITED | |||||||||||||||
| |||||||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended | ||||||||||||
|
September 30, |
|
September 30, | ||||||||||||
(in thousands, except per share amounts) |
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||
Operating revenues |
$ |
405,542 |
|
|
$ |
409,760 |
|
|
$ |
1,229,683 |
|
|
$ |
1,157,222 |
|
Cost of services (excluding depreciation and amortization shown below) |
213,789 |
|
|
213,008 |
|
|
651,150 |
|
|
616,397 |
| ||||
Selling, general and administrative expenses |
90,042 |
|
|
102,333 |
|
|
283,523 |
|
|
273,220 |
| ||||
Depreciation and amortization |
29,695 |
|
|
33,037 |
|
|
99,333 |
|
|
93,434 |
| ||||
Total operating expenses |
333,526 |
|
|
348,378 |
|
|
1,034,006 |
|
|
983,051 |
| ||||
Operating income |
72,016 |
|
|
61,382 |
|
|
195,677 |
|
|
174,171 |
| ||||
Interest expense: |
|
|
|
|
|
|
| ||||||||
Interest income |
1,040 |
|
|
800 |
|
|
2,495 |
|
|
2,262 |
| ||||
Interest expense |
12,552 |
|
|
13,525 |
|
|
37,365 |
|
|
42,463 |
| ||||
Total interest expense, net |
(11,512) |
|
|
(12,725) |
|
|
(34,870) |
|
|
(40,201) |
| ||||
Gain/(loss) on investments and other, net |
7,627 |
|
|
(4,254) |
|
|
10,825 |
|
|
(3,865) |
| ||||
Income from continuing operations before equity in earnings of affiliates and income taxes |
68,131 |
|
|
44,403 |
|
|
171,632 |
|
|
130,105 |
| ||||
Provision for income taxes |
23,848 |
|
|
16,406 |
|
|
66,423 |
|
|
53,222 |
| ||||
Income from continuing operations before equity in earnings of affiliates |
44,283 |
|
|
27,997 |
|
|
105,209 |
|
|
76,883 |
| ||||
Equity in earnings of affiliates, net of tax |
5,716 |
|
|
8,166 |
|
|
23,848 |
|
|
29,381 |
| ||||
Net income from continuing operations |
49,999 |
|
|
36,163 |
|
|
129,057 |
|
|
106,264 |
| ||||
Loss from discontinued operations, net of tax |
(1,240) |
|
|
(10,157) |
|
|
(3,205) |
|
|
(18,142) |
| ||||
(Loss)/gain from sale of discontinued operations, net of tax |
(5,052) |
|
|
12,264 |
|
|
(5,052) |
|
|
9,277 |
| ||||
Net income |
43,707 |
|
|
38,270 |
|
|
120,800 |
|
|
97,399 |
| ||||
Less: Net income/(loss) attributable to noncontrolling interests |
45 |
|
|
(50) |
|
|
19 |
|
|
(209) |
| ||||
Net income attributable to CoreLogic |
$ |
43,662 |
|
|
$ |
38,320 |
|
|
$ |
120,781 |
|
|
$ |
97,608 |
|
Amounts attributable to CoreLogic stockholders: |
|
|
|
|
|
|
| ||||||||
Net income from continuing operations |
$ |
49,954 |
|
|
$ |
36,213 |
|
|
$ |
129,038 |
|
|
$ |
106,473 |
|
Loss from discontinued operations, net of tax |
(1,240) |
|
|
(10,157) |
|
|
(3,205) |
|
|
(18,142) |
| ||||
(Loss)/gain from sale of discontinued operations, net of tax |
(5,052) |
|
|
12,264 |
|
|
(5,052) |
|
|
9,277 |
| ||||
Net income attributable to CoreLogic |
$ |
43,662 |
|
|
$ |
38,320 |
|
|
$ |
120,781 |
|
|
$ |
97,608 |
|
Basic income/(loss) per share: |
|
|
|
|
|
|
| ||||||||
Net income from continuing operations |
$ |
0.53 |
|
|
$ |
0.36 |
|
|
$ |
1.35 |
|
|
$ |
1.02 |
|
Loss from discontinued operations, net of tax |
(0.01) |
|
|
(0.10) |
|
|
(0.03) |
|
|
(0.17) |
| ||||
(Loss)/gain from sale of discontinued operations, net of tax |
(0.05) |
|
|
0.12 |
|
|
(0.05) |
|
|
0.09 |
| ||||
Net income attributable to CoreLogic |
$ |
0.47 |
|
|
$ |
0.38 |
|
|
$ |
1.27 |
|
|
$ |
0.94 |
|
Diluted income/(loss) per share: |
|
|
|
|
|
|
| ||||||||
Net income from continuing operations |
$ |
0.52 |
|
|
$ |
0.35 |
|
|
$ |
1.32 |
|
|
$ |
1.01 |
|
Loss from discontinued operations, net of tax |
(0.01) |
|
|
(0.10) |
|
|
(0.03) |
|
|
(0.17) |
| ||||
(Loss)/gain from sale of discontinued operations, net of tax |
(0.05) |
|
|
0.12 |
|
|
(0.05) |
|
|
0.09 |
| ||||
Net income attributable to CoreLogic |
$ |
0.46 |
|
|
$ |
0.37 |
|
|
$ |
1.24 |
|
|
$ |
0.93 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
| ||||||||
Basic |
94,773 |
|
|
101,650 |
|
|
95,802 |
|
|
104,713 |
| ||||
Diluted |
96,793 |
|
|
103,113 |
|
|
97,672 |
|
|
105,686 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements. |