CoreLogic management will host a live webcast and conference call on Wednesday, February 26, 2014 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- 877-280-4953 for U.S./Canada callers or 857-244-7310 for international callers. The Conference ID for the call is 29135227.
Additional detail on the Company's fourth 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 53543460.
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 eight 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 the Company's investment and strategic growth plans; the Company's overall financial performance, including future revenue and profit growth and market position, and the Company's strong margin and cash flow profile; the anticipated timing for completion of the acquisition of MSB and DataQuick; the Company's plans to divest the AMPS business segment; the Company's full-year expected results and 2014 financial guidance; the Company's continued plans to improve cost productivity, including the expected future cost savings and the impact of Project 30 and the TTI; mortgage and housing market trends, including mortgage origination and mortgage delinquency volumes; the anticipated benefits of the acquisitions of EQECAT, MSB, DataQuick, and Bank of America's flood and tax processing operations to the Company's financial results; and our plans to continue to return capital to shareholders through our 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 pending acquisition of MSB and DataQuick 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 EQECAT, MSB, DataQuick and Bank of America's flood and tax processing operations; 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, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer lending industries and the economy generally 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; 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, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments plus pretax equity in earnings of affiliates, tax affected at an assumed effective tax rate of 38% for 2014 and 40% for all periods prior to 2014. Adjusted EPS is derived by dividing adjusted net income by diluted weighted average shares. Other firms may calculate non-GAAP measures differently than CoreLogic, which limits comparability between companies.
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(Additional Financial Data Follow) CORELOGIC, INC. CONSOLIDATED INCOME STATEMENTS UNAUDITED | |||||||||||||||
|
| |||||||||||||||
|
|
For the Three Months Ended |
|
For the Twelve Months Ended | ||||||||||||
|
|
December 31, |
|
December 31, | ||||||||||||
|
(in thousands, except per share amounts) |
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||
|
Operating revenue |
$ |
311,923 |
|
|
$ |
334,026 |
|
|
$ |
1,330,630 |
|
|
$ |
1,235,383 |
|
|
Cost of services (exclusive of depreciation and amortization below) |
166,546 |
|
|
167,853 |
|
|
670,228 |
|
|
609,399 |
| ||||
|
Selling, general and administrative expenses |
94,216 |
|
|
88,307 |
|
|
360,506 |
|
|
334,228 |
| ||||
|
Depreciation and amortization |
29,604 |
|
|
31,755 |
|
|
127,020 |
|
|
121,784 |
| ||||
|
Total operating expenses |
290,366 |
|
|
287,915 |
|
|
1,157,754 |
|
|
1,065,411 |
| ||||
|
Operating income |
21,557 |
|
|
46,111 |
|
|
172,876 |
|
|
169,972 |
| ||||
|
Interest expense: |
|
|
|
|
|
|
| ||||||||
|
Interest income |
2,252 |
|
|
724 |
|
|
4,701 |
|
|
2,771 |
| ||||
|
Interest expense |
14,985 |
|
|
13,061 |
|
|
52,350 |
|
|
55,524 |
| ||||
|
Total interest expense, net |
(12,733) |
|
|
(12,337) |
|
|
(47,649) |
|
|
(52,753) |
| ||||
|
Gain/(loss) on investments and other, net |
2,670 |
|
|
1,348 |
|
|
12,032 |
|
|
(2,516) |
| ||||
|
Income from continuing operations before equity in earnings of affiliates and income taxes |
11,494 |
|
|
35,122 |
|
|
137,259 |
|
|
114,703 |
| ||||
|
(Benefit)/Provision for income taxes |
(11,150) |
|
|
26,955 |
|
|
34,473 |
|
|
60,502 |
| ||||
|
Income from continuing operations before equity in earnings of affiliates |
22,644 |
|
|
8,167 |
|
|
102,786 |
|
|
54,201 |
| ||||
|
Equity in earnings of affiliates, net of tax |
3,512 |
|
|
6,604 |
|
|
27,361 |
|
|
35,983 |
| ||||
|
Net income from continuing operations |
26,156 |
|
|
14,771 |
|
|
130,147 |
|
|
90,184 |
| ||||
|
(Loss)/income from discontinued operations, net of tax |
(39,070) |
|
|
4,915 |
|
|
(15,464) |
|
|
17,623 |
| ||||
|
(Loss)/gain from sale of discontinued operations, net of tax |
(211) |
|
|
(5,437) |
|
|
(7,008) |
|
|
3,841 |
| ||||
|
Net (loss)/income |
(13,125) |
|
|
14,249 |
|
|
107,675 |
|
|
111,648 |
| ||||
|
Less: Net loss attributable to noncontrolling interests |
(72) |
|
|
(437) |
|
|
(53) |
|
|
(645) |
| ||||
|
Net (loss)/income attributable to CoreLogic |
$ |
(13,053) |
|
|
$ |
14,686 |
|
|
$ |
107,728 |
|
|
$ |
112,293 |
|
|
Amounts attributable to CoreLogic: |
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations, net of tax |
$ |
26,228 |
|
|
$ |
15,208 |
|
|
$ |
130,200 |
|
|
$ |
90,829 |
|
|
(Loss)/income from discontinued operations, net of tax |
(39,070) |
|
|
4,915 |
|
|
(15,464) |
|
|
17,623 |
| ||||
|
(Loss)/gain from sale of discontinued operations, net of tax |
(211) |
|
|
(5,437) |
|
|
(7,008) |
|
|
3,841 |
| ||||
|
Net (loss)/income attributable to CoreLogic |
$ |
(13,053) |
|
|
$ |
14,686 |
|
|
$ |
107,728 |
|
|
$ |
112,293 |
|
|
Basic income/(loss) per share: |
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations, net of tax |
$ |
0.28 |
|
|
$ |
0.16 |
|
|
$ |
1.37 |
|
|
$ |
0.88 |
|
|
(Loss)/income from discontinued operations, net of tax |
(0.42) |
|
|
0.05 |
|
|
(0.16) |
|
|
0.17 |
| ||||
|
(Loss)/gain from sale of discontinued operations, net of tax |
— |
|
|
(0.06) |
|
|
(0.07) |
|
|
0.04 |
| ||||
|
Net (loss)/income attributable to CoreLogic |
$ |
(0.14) |
|
|
$ |
0.15 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
Diluted income/(loss) per share: |
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations, net of tax |
$ |
0.28 |
|
|
$ |
0.15 |
|
|
$ |
1.34 |
|
|
$ |
0.87 |
|
|
(Loss)/income from discontinued operations, net of tax |
(0.41) |
|
|
0.05 |
|
|
(0.16) |
|
|
0.17 |
| ||||
|
(Loss)/gain from sale of discontinued operations, net of tax |
— |
|
|
(0.05) |
|
|
(0.07) |
|
|
0.04 |
| ||||
|
Net (loss)/income attributable to CoreLogic |
$ |
(0.13) |
|
|
$ |
0.15 |
|
|
$ |
1.11 |
|
|
$ |
1.08 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
| ||||||||
|
Basic |
92,946 |
|
|
97,513 |
|
|
95,088 |
|
|
102,913 |
| ||||
|
Diluted |
95,115 |
|
|
99,346 |
|
|
97,109 |
|
|
104,050 |
| ||||
