Adjusted EBITDA totaled $135 million in the second quarter compared with $136 million in the same prior year period as the impact of lower U.S. mortgage market volumes were largely offset by operating leverage and cost productivity program benefits. Adjusted EBITDA margin was 28%, up from 27% in the same prior year period. PI segment adjusted EBITDA totaled $70 million compared to $71 million in 2016 as the impact of lower mortgage origination volumes were mostly offset by the benefits of cost productivity initiatives and higher margins in our valuation solutions related businesses. PI adjusted EBITDA margin was 28%, up from 26% in the same prior year period. RMW adjusted EBITDA was $72 million, down 3% from 2016 levels, as continued organic growth and cost management mostly offset the impacts of lower mortgage volumes. RMW adjusted EBITDA margin was 32%, down from 33% in the same prior year period.
Liquidity and Capital Resources
At June 30, 2017, the Company had cash and cash equivalents of $89 million compared with $72 million at December 31, 2016. Total debt as of June 30, 2017 was $1,655 million compared with $1,619 million as of December 31, 2016. As of June 30, 2017, the Company had available capacity on its revolving credit facility of $178 million.
Net operating cash provided by continuing operations for the twelve months ended June 30, 2017 was $377 million. Free cash flow (FCF) for the twelve months ended June 30, 2017 totaled $305 million, which represented 63% of adjusted EBITDA. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets.
In June 2017, the Company acquired a 45% ownership position in Mercury Network, LLC for $70 million which was funded by cash on hand and through available capacity on its revolving credit facility. Mercury Network is a technology company headquartered in Oklahoma City, servicing more than 800 small and medium-sized mortgage lenders and appraisal management companies to manage their collateral valuation operations. The purchase of the remaining 55% ownership of Mercury Network is expected to close in the third quarter of 2017, subject to customary closing conditions.
During the second quarter, CoreLogic repurchased 0.5 million of its common shares for $21 million. Year-to-date, the Company has repurchased 1 million shares for $41 million.
The Company recently initiated a process to refinance its current term loan debt and revolving credit facilities. The purpose of this refinancing is to secure a new Credit Agreement (CA) that increases the Company’s financial flexibility by expanding capacity and extending tenor at interest rates and terms substantially equivalent to CoreLogic’s existing CA. This CA is expected to be closed in August 2017.
Financial Guidance and Assumptions
The Company raised the lower end of its 2017 guidance ranges as follows.
| ($ in millions except adjusted EPS) |
Initial 2017
|
Revised 2017
|
||
| Revenue | $1,825 - $1,875 | $1,835 - $1,875 | ||
| Adjusted EBITDA(1) | $450 - $480 | $460 - $480 | ||
| Adjusted EPS (1) | $2.15 - $2.40 | $2.20 - $2.40 | ||
