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 key estimates and assumptions related to 2019 guidance, savings expectations from cost management and productivity programs, results of investments in R&D, as well as data and technology platforms, results of a planned acceleration of the AMC transformation program, and results of a planned wind down of certain non-core software units. 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 the 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: a cyber-based attack, data corruption or network security breach, or inability to secure the electronic transmission of sensitive data could have a material adverse effect on our business and reputation; we rely on the ability to access data from external sources at reasonable terms and prices; systems interruptions may impair the delivery of our products and services; we are subject to significant governmental regulations; our revenue is affected by the strength of the economy, interest rate environment and the housing market generally; we rely on our top ten clients for a significant portion of our revenue; and we operate in a competitive business environment that is impacted by technology advancements or new product development; our reliance on outsourcing arrangements subjects us to risk and may disrupt or adversely affect our operations; our acquisition and integration of businesses may involve increased expenses and may not produce the desired financial or operating results. 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, such as adjusted EBITDA, adjusted EPS and FCF, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the most directly 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 without unreasonable efforts of its forward-looking guidance related to adjusted EBITDA, adjusted EPS or FCF to the most directly comparable GAAP financial measure due to the unknown effect, timing and potential significance of special charges or gains that are material to the comparable GAAP financial measure.
The Company believes that its presentation of these non-GAAP measures provides useful supplemental information to investors and management regarding the Company's financial condition and results of operations. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest, taxes, depreciation and amortization, share-based compensation, non-operating gains/losses, and other adjustments. Adjusted EPS is defined as diluted income from continuing operations, net of tax per share, adjusted for share-based compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments; and assumes an effective tax rate of 25% and 26% for 2019 and 2018, respectively. 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. Other firms may calculate non-GAAP measures differently than the Company, which limits comparability between companies.
(Additional Financial Data Follow)
CLGX-F
| CORELOGIC, INC. | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
| UNAUDITED | ||||||||||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| (in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
| Operating revenue | $ | 403,309 | $ | 454,157 | $ | 1,788,378 | $ | 1,851,117 | ||||||||||||||||
| Cost of services (exclusive of depreciation and amortization) | 212,275 | 229,537 | 921,429 | 974,851 | ||||||||||||||||||||
| Selling, general and administrative expenses | 104,565 | 113,117 | 444,614 | 459,842 | ||||||||||||||||||||
| Depreciation and amortization | 57,687 | 46,137 | 199,717 | 177,806 | ||||||||||||||||||||
| Total operating expenses | 374,527 | 388,791 | 1,565,760 | 1,612,499 | ||||||||||||||||||||
| Operating income | 28,782 | 65,366 | 222,618 | 238,618 | ||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Interest income | 524 | 209 | 1,577 | 1,532 | ||||||||||||||||||||
| Interest expense | 19,490 | 18,004 | 75,551 | 63,356 | ||||||||||||||||||||
| Total interest expense, net | (18,966 | ) | (17,795 | ) | (73,974 | ) | (61,824 | ) | ||||||||||||||||
| Loss on early extinguishment of debt | — | — | — | (1,775 | ) | |||||||||||||||||||
| Impairment loss on investment in affiliates | — | (3,412 | ) | — | (3,811 | ) | ||||||||||||||||||
| Gain/(loss) on investments and other, net | 12,881 | 2,023 | 18,005 | (2,316 | ) | |||||||||||||||||||
| Income from continuing operations before equity in (losses)/earnings of affiliates and income taxes | 22,697 | 46,182 | 166,649 | 168,892 | ||||||||||||||||||||
| Provision/(benefit) for income taxes | 8,259 | (18,588 | ) | 45,691 | 18,172 | |||||||||||||||||||
| Income from continuing operations before equity in (losses)/earnings of affiliates | 14,438 | 64,770 | 120,958 | 150,720 | ||||||||||||||||||||
| Equity in (losses)/earnings of affiliates, net of tax | (1,416 | ) | 46 | 1,493 | (1,186 | ) | ||||||||||||||||||
| Net income from continuing operations | 13,022 | 64,816 | 122,451 | 149,534 | ||||||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (412 | ) | (106 | ) | (587 | ) | 2,315 | |||||||||||||||||
| Gain from sale of discontinued operations, net of tax | — | — | — | 313 | ||||||||||||||||||||
| Net income | $ | 12,610 | $ | 64,710 | $ | 121,864 | $ | 152,162 | ||||||||||||||||
| Basic income/(loss) per share: | ||||||||||||||||||||||||
| Net income from continuing operations | $ | 0.16 | $ | 0.79 | $ | 1.51 | $ | 1.79 | ||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | 0.03 | ||||||||||||||||||
| Gain from sale of discontinued operations, net of tax | — | — | — | — | ||||||||||||||||||||
| Net income | $ | 0.15 | $ | 0.79 | $ | 1.50 | $ | 1.82 | ||||||||||||||||
| Diluted income/(loss) per share: | ||||||||||||||||||||||||
| Net income from continuing operations | $ | 0.16 | $ | 0.78 | $ | 1.49 | $ | 1.75 | ||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | 0.03 | ||||||||||||||||||
| Gain from sale of discontinued operations, net of tax | — | — | — | — | ||||||||||||||||||||
| Net income | $ | 0.15 | $ | 0.78 | $ | 1.48 | $ | 1.78 | ||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||||||
| Basic | 80,198 | 81,656 | 80,854 | 83,499 | ||||||||||||||||||||
| Diluted | 81,330 | 83,539 | 82,275 | 85,234 | ||||||||||||||||||||
