IRVINE, Calif., Feb. 24, 2015 /PRNewswire/ -- CoreLogic
(NYSE:CLGX), a leading global property information, analytics and
data-enabled services provider, today reported financial results
for the full year and quarter ended December
31, 2014.
"CoreLogic delivered an outstanding operating performance
in 2014 in the face of a very challenging set of market
dynamics. We finished the year with accelerating momentum as
we continued to expand our D&A footprint and reap the benefits
of our market leadership in TPS. Revenue, profit and cash
flow were up in the fourth quarter, despite a drop of about 5% in
U.S. mortgage volumes," said Anand Nallathambi, President and
Chief Executive Officer of CoreLogic. "We are exiting 2014 a strong
and high performing company. As we move forward into 2015, we
are squarely focused on enabling and accelerating the growth of our
unique data assets, analytics and services through innovation,
technology and operational excellence and deeper client
intimacy."
"We continue to shift our business mix toward data-driven,
subscription based models built around scaled market-leading
solutions and services. As a result of this strategy, our
core mortgage operations continue to outperform market volume
trends and we materially expanded and diversified our D&A
revenues in the fourth quarter," added Frank Martell, Chief Operating and Financial
Officer of CoreLogic. "The durability of our business model
allows us to continue to invest in product and service innovation,
technology leadership and operational improvements and, at the same
time, return significant amounts of capital to our shareholders and
reduce our debt balances."
Fourth-Quarter Financial Highlights
Fourth quarter revenues totaled $345.5
million, 5% higher than prior-year levels, as market share
gains, organic growth and acquisition-related revenues more than
offset the impact of an estimated 5% decline in mortgage
origination volumes. D&A revenues rose 16% to $164.1 million driven principally by growth in
insurance, spatial solutions, international and core property data
revenues, which more than offset the impact of lower mortgage
volumes, unfavorable foreign currency translation and the exit of
certain non-core product lines. TPS revenues decreased 3%
year-over-year to $183.6 million as
the impact of contracting mortgage volumes, lower project-related
document processing and retrieval revenues and the planned run-off
of a non-core credit reporting service offset the benefit of market
share gains.
Operating income from continuing operations totaled $36.2 million for the fourth quarter compared
with a loss of $19.3
million for the fourth quarter of 2013. The fourth
quarter 2013 operating loss was attributable to a pre-tax non-cash
goodwill impairment charge of $42.2 million related to
the planned divestiture of the Company's Asset Management and
Processing Solutions (AMPS) business. Before the effect of
the 2013 impairment charge, fourth quarter 2014 operating income
from continuing operations increased 58%, reflecting benefits from
D&A growth and favorable mix, TPS share gains, as well as lower
operating and SG&A costs related to the ongoing cost efficiency
programs. These benefits were partially offset by increased
depreciation and amortization associated with the acquisition of
Marshall & Swift/Boeckh (MSB) and Data Quick (DQ). Fourth
quarter 2014 operating income margin was 10% compared with 7%
(before the impairment charge discussed above) for the fourth
quarter of 2013.
Fourth quarter net income from continuing operations totaled
$16.5 million compared with a net
loss of $9.3 million in the same 2013
period. The $25.8 million
year-over-year increase was driven primarily by D&A growth, TPS
share gains, the 2013 AMPS impairment charge discussed previously
and lower taxes which more than offset the impact of lower U.S.
mortgage volumes, unfavorable foreign currency translation and
higher interest expense associated with the acquisition of MSB and
DQ. Diluted EPS from continuing operations totaled
$0.18 for the fourth quarter of 2014
compared with a loss of $0.10 in the
fourth quarter of 2013. As discussed previously, fourth
quarter 2013 diluted EPS from continuing operations included
pre-tax non-cash impairment charges of $42.2
million associated with the exit of AMPS. Adjusted
diluted EPS totaled $0.28, up 12%
from the same 2013 period reflecting the positive impacts of
D&A revenue growth, lower taxes and share repurchases partially
offset by an estimated 5% decrease in mortgage loan origination
volumes and higher interest expense.
Adjusted EBITDA totaled $84.1
million in fourth quarter 2014 compared with $72.5 million in the same prior year
period. Fourth quarter 2014 adjusted EBITDA margin was 24%,
compared with 22% in the prior year. The year-over-year
increase in adjusted EBITDA was principally the result of D&A
revenue growth and favorable business mix and lower costs related
to cost productivity programs. D&A adjusted EBITDA
totaled $48.6 million, a 22% increase
from 2013, as higher revenues from insurance and spatial solutions
and international operations more than offset the impact of lower
U.S. mortgage loan application volumes, unfavorable currency
translation and the exit of a non-core product line. TPS
adjusted EBITDA increased 25% or $9.9
million to $50.0 million as
share gains, cost management benefits and lower acquisition-related
integration costs more than offset the unfavorable impact of lower
U.S. mortgage market volumes and the decreased client-related
project and discretionary spending.
Operational Excellence Programs
CoreLogic launched Phase I of its Technology Transformation
Initiative (TTI) during mid-2012. Phase I of the TTI is
focused on migrating the Company's existing technology
infrastructure from CoreLogic internal management to an outsourced
service arrangement with Dell Services. The migration of
CoreLogic's legacy systems and data center infrastructure to Dell
Services is expected to provide new functionality, increased
performance and a reduction in costs commencing during the second
half of 2015. During 2014, the Company successfully completed
the migration of its Dallas, Texas
data center to a Dell Services operated facility. The
migration of the Company's remaining data center, based in
Santa Ana, California, is expected
to be complete by mid-2015. Full-year 2014 charges related to
implementation of Phase I of the TTI totaled $15.6 million.
Phase II of the TTI, launched during 2014, focuses on the
development of the Company's next generation technology (NextGen)
platform which is designed to augment and eventually replace
portions of our legacy systems. During 2014, the Company
commenced the development of its NextGen platform capabilities
including certain proof of concept deliverables. During the
fourth quarter of 2014, the Company announced the formation of the
CoreLogic Innovation Labs (CIL) in collaboration with Pivotal
Software, Inc. The CIL is designed to accelerate progress on
the NextGen platform as well as support the upgrading of existing
technology assets and facilitating the greater monetization of the
Company's data assets. Investments in Phase II of the TTI are
expected to aggregate approximately $15
million per year beginning in 2015. Full-year 2014
charges related to implementation of Phase II of TTI aggregated
$3.4 million.
During the fourth quarter of 2013, CoreLogic launched a cost
reduction program and operational initiatives designed to lower
2014 operating expenses by at least $25
million. Full-year 2014 savings associated with these
programs totaled approximately $30
million.
Liquidity and Capital Resources
At December 31, 2014, the Company had cash and cash
equivalents of $104.7 million
compared with $134.4 million at
December 31, 2013. As of
December 31, 2014, the Company had available capacity on its
revolving credit facility under the Credit Agreement of
$465 million.
Total debt as of December 31, 2014 was $1.3 billion compared with $1.4 billion as of September 30, 2014 and $840 million as of December 31, 2013. The decrease in debt
from September 30 to December 31,
2014 was attributable to the Company's ongoing debt
reduction program. The increase in debt from December 31, 2013 to December 31, 2014 reflects the financing of the
acquisition of MSB and DQ completed on March
25, 2014 which was partially offset by $194.9 million in principal repayments made over
the final nine months of 2014 attributable to the Company's debt
reduction program.
During the fourth quarter of 2014, the Company repaid
approximately $81.2 million in term
loan, revolving and other debt obligations. The Company also
repurchased 0.6 million of its common shares for a total of
$18.7 million during the
quarter. In 2014, the Company repurchased approximately 3.1
million of its common shares for $91.5
million.
Free cash flow (FCF) for the twelve months ended
December 31, 2014 totaled $248.4
million, which represented 69% 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. Net operating
cash provided by continuing operations for the twelve months ended
December 31, 2014 was $335.6
million.
2015 Financial Guidance (Continuing Operations)
($ in millions
except adjusted EPS)
|
2014
Results
|
2015
Outlook/Guidance
|
Revenue
|
$1,405.0
|
$1,470.0 -
$1,500.0
|
Adjusted
EBITDA(1)
|
$360.2
|
$390.0 -
$405.0
|
Adjusted
EPS(1)
|
$1.33
|
$1.50 -
$1.60
|
|
(1) Definition of
adjusted results, as well as other non-GAAP financial measures used
by management is included in the Use of Non-GAAP Financial Measures
section of this release. A reconciliation of 2014 Non-GAAP measures
to their nearest GAAP equivalents are also provided in this
release.
|
2015 guidance is based upon the following estimates and
assumptions:
- 2015 U.S. new purchase and refinancing mortgage origination
unit volumes equivalent to 2014 levels.
- 10%-15% appreciation of the U.S. dollar against the Australian
and New Zealand currencies.
- Completion of TTI Phase I by mid-2015; estimated 2015 savings
of approximately $10 million.
- TTI Phase II investment of approximately $15 million.
- Progressive reduction in debt balances in line with long-term
debt to EBITDA target ratio of 2.5 times.
- Repurchase of 2 to 3 million common shares over the
balance of 2015.
Teleconference/Webcast
CoreLogic management will host a live webcast and conference
call on Wednesday, February 25, 2015,
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: 866-202-0886 for U.S./Canada callers or 617-213-8841 for
international callers. The Conference ID for the call is
94079698.
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 888-286-8010 for U.S./Canada participants or 617-801-6888 for
international participants using Conference ID 12263010.
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading global property information,
analytics and data-enabled services provider. The Company's
combined data from public, contributory and proprietary sources
includes over 3.5 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, and the public sector. 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 North
America, Western Europe and
Asia Pacific. For more
information, please 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 investment and strategic growth plans,
cost productivity and the TTI; the Company's overall financial
performance, including future revenue and profit growth and market
position, and the Company's margin and cash flow profile; the
Company's 2015 financial guidance and assumptions thereunder;
mortgage and housing market trends, including mortgage origination
volumes; and our plans to reduce our outstanding debt and continue
to return capital to shareholders through our share repurchase
program. 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: limitations on access
to or increase in prices for data from external sources, including
government and public record sources; changes in applicable
government legislation, regulations and the level of regulatory
scrutiny affecting our customers or us, including with respect to
consumer financial services and 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; our ability to
protect proprietary rights; our TTI and growth strategies and our
ability to effectively and efficiently implement them; risks
related to the outsourcing of services and international
operations; our indebtedness and the restrictions in our various
debt agreements; our ability to realize the anticipated benefits of
certain acquisitions and/or divestitures and the timing thereof;
the inability to control the dividend policies of our
partially-owned affiliates; and impairments in our goodwill or
other intangible assets. 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 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 of projected adjusted EBITDA 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, adjusted EPS and FCF, 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 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 2013. Adjusted EPS is derived by dividing
adjusted net income by diluted weighted average shares. 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 CoreLogic, which
limits comparability between companies.
(Additional Financial Data Follow)
CORELOGIC,
INC.
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS
|
UNAUDITED
|
|
|
For the Three
Months
Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
(in thousands,
except per share amounts)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
revenue
|
$
|
345,512
|
|
|
$
|
328,522
|
|
|
$
|
1,405,040
|
|
|
$
|
1,404,401
|
|
Cost of services
(exclusive of depreciation and amortization
below)
|
175,385
|
|
|
177,409
|
|
|
740,301
|
|
|
717,205
|
|
Selling, general and
administrative expenses
|
96,129
|
|
|
98,032
|
|
|
351,617
|
|
|
374,289
|
|
Depreciation and
amortization
|
37,758
|
|
|
29,634
|
|
|
138,394
|
|
|
126,332
|
|
Impairment
loss
|
82
|
|
|
42,711
|
|
|
4,970
|
|
|
44,433
|
|
Total operating
expenses
|
309,354
|
|
|
347,786
|
|
|
1,235,282
|
|
|
1,262,259
|
|
Operating
income/(loss)
|
36,158
|
|
|
(19,264)
|
|
|
169,758
|
|
|
142,142
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,029
|
|
|
2,252
|
|
|
4,110
|
|
|
4,748
|
|
Interest
expense
|
18,545
|
|
|
14,985
|
|
|
71,092
|
|
|
52,350
|
|
Total interest
expense, net
|
(17,516)
|
|
|
(12,733)
|
|
|
(66,982)
|
|
|
(47,602)
|
|
Gain on investments
and other, net
|
1,057
|
|
|
2,673
|
|
|
3,882
|
|
|
12,032
|
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
19,699
|
|
|
(29,324)
|
|
|
106,658
|
|
|
106,572
|
|
Provision/(benefit)
for income taxes
|
6,701
|
|
|
(16,414)
|
|
|
29,770
|
|
|
33,673
|
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates
|
12,998
|
|
|
(12,910)
|
|
|
76,888
|
|
|
72,899
|
|
Equity in earnings of
affiliates, net of tax
|
3,831
|
|
|
3,510
|
|
|
14,120
|
|
|
27,361
|
|
Net income/(loss)
from continuing operations
|
16,829
|
|
|
(9,400)
|
|
|
91,008
|
|
|
100,260
|
|
(Loss)/income from
discontinued operations, net of tax
|
(1,432)
|
|
|
(3,512)
|
|
|
(16,653)
|
|
|
14,423
|
|
(Loss)/gain from sale
of discontinued operations, net of tax
|
(364)
|
|
|
(212)
|
|
|
112
|
|
|
(7,008)
|
|
Net
income/(loss)
|
15,033
|
|
|
(13,124)
|
|
|
74,467
|
|
|
107,675
|
|
Less: Net
income/(loss) attributable to noncontrolling interests
|
368
|
|
|
(72)
|
|
|
1,267
|
|
|
(53)
|
|
Net income/(loss)
attributable to CoreLogic
|
$
|
14,665
|
|
|
$
|
(13,052)
|
|
|
$
|
73,200
|
|
|
$
|
107,728
|
|
Amounts attributable
to CoreLogic:
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations, net of tax
|
$
|
16,461
|
|
|
$
|
(9,328)
|
|
|
$
|
89,741
|
|
|
$
|
100,313
|
|
(Loss)/income from
discontinued operations, net of tax
|
(1,432)
|
|
|
(3,512)
|
|
|
(16,653)
|
|
|
14,423
|
|
(Loss)/gain from sale
of discontinued operations, net of tax
|
(364)
|
|
|
(212)
|
|
|
112
|
|
|
(7,008)
|
|
Net income/(loss)
attributable to CoreLogic
|
$
|
14,665
|
|
|
$
|
(13,052)
|
|
|
$
|
73,200
|
|
|
$
|
107,728
|
|
Basic income/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations, net of tax
|
$
|
0.18
|
|
|
$
|
(0.10)
|
|
|
$
|
0.99
|
|
|
$
|
1.05
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.02)
|
|
|
(0.04)
|
|
|
(0.18)
|
|
|
0.15
|
|
(Loss)/gain from sale
of discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.07)
|
|
Net income/(loss)
attributable to CoreLogic
|
$
|
0.16
|
|
|
$
|
(0.14)
|
|
|
$
|
0.81
|
|
|
$
|
1.13
|
|
Diluted income/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations, net of tax
|
$
|
0.18
|
|
|
$
|
(0.10)
|
|
|
$
|
0.97
|
|
|
$
|
1.03
|
|
(Loss)/income from
discontinued operations, net of tax
|
(0.02)
|
|
|
(0.04)
|
|
|
(0.18)
|
|
|
0.15
|
|
(Loss)/gain from sale
of discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.07)
|
|
Net income/(loss)
attributable to CoreLogic
|
$
|
0.16
|
|
|
$
|
(0.14)
|
|
|
$
|
0.79
|
|
|
$
|
1.11
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
89,597
|
|
|
92,946
|
|
|
90,825
|
|
|
95,088
|
|
Diluted
|
91,245
|
|
|
95,115
|
|
|
92,429
|
|
|
97,109
|
|
Please refer to the full Form 10-K filing for the complete
financial statements and related notes that are an integral part of
the financial statements.
CORELOGIC,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
UNAUDITED
|
|
(in thousands,
except par value)
|
December
31,
|
|
December
31,
|
Assets
|
2014
|
|
2013
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
104,677
|
|
|
$
|
134,419
|
|
Marketable
securities
|
22,264
|
|
|
22,220
|
|
Accounts receivable
(less allowance for doubtful accounts of $10,826 and $13,045 in
2014
and 2013, respectively)
|
214,344
|
|
|
215,020
|
|
Prepaid expenses and
other current assets
|
51,375
|
|
|
50,829
|
|
Income tax
receivable
|
13,357
|
|
|
13,516
|
|
Deferred income
tax assets, current
|
90,341
|
|
|
86,487
|
|
Assets of
discontinued operations
|
4,267
|
|
|
38,926
|
|
Total current
assets
|
500,625
|
|
|
561,417
|
|
Property and
equipment, net
|
368,614
|
|
|
197,542
|
|
Goodwill,
net
|
1,780,758
|
|
|
1,468,290
|
|
Other intangible
assets, net
|
278,270
|
|
|
175,808
|
|
Capitalized data and
database costs, net
|
333,265
|
|
|
330,188
|
|
Investment in
affiliates, net
|
103,598
|
|
|
95,343
|
|
Restricted
cash
|
12,360
|
|
|
12,050
|
|
Other
assets
|
138,872
|
|
|
162,493
|
|
Total
assets
|
$
|
3,516,362
|
|
|
$
|
3,003,131
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
170,418
|
|
|
$
|
156,937
|
|
Accrued salaries and
benefits
|
99,786
|
|
|
104,781
|
|
Deferred revenue,
current
|
255,330
|
|
|
223,603
|
|
Current portion of
long-term debt
|
11,352
|
|
|
28,154
|
|
Liabilities of
discontinued operations
|
13,704
|
|
|
20,616
|
|
Total current
liabilities
|
550,590
|
|
|
534,091
|
|
Long-term debt, net
of current
|
1,319,211
|
|
|
811,776
|
|
Deferred revenue, net
of current
|
389,308
|
|
|
377,855
|
|
Deferred income tax
liabilities, long-term
|
63,979
|
|
|
76,969
|
|
Other
liabilities
|
161,084
|
|
|
147,865
|
|
Total
liabilities
|
2,484,172
|
|
|
1,948,556
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
18,023
|
|
|
10,202
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
CoreLogic, Inc.'s
("CoreLogic") stockholders' equity:
|
|
|
|
|
|
Preferred stock,
$0.00001 par value; 500 shares authorized, no shares issued or
outstanding
|
—
|
|
|
—
|
|
Common stock,
$0.00001 par value; 180,000 shares authorized; 89,343 and
91,254
shares issued and outstanding as of December 31, 2014 and 2013,
respectively
|
1
|
|
|
1
|
|
Additional paid-in
capital
|
605,511
|
|
|
672,165
|
|
Retained
earnings
|
492,441
|
|
|
425,796
|
|
Accumulated other
comprehensive loss
|
(83,786)
|
|
|
(53,589)
|
|
Total
equity
|
1,014,167
|
|
|
1,044,373
|
|
Total liabilities and
equity
|
$
|
3,516,362
|
|
|
$
|
3,003,131
|
|
Please refer to the full Form 10-K filing for the complete
financial statements and related notes that are an integral part of
the financial statements.
CORELOGIC,
INC.
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
UNAUDITED
|
|
|
For the Year
Ended
|
|
December
31,
|
(in
thousands)
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
74,467
|
|
|
$
|
107,675
|
|
Less: (Loss)/income
from discontinued operations, net of tax
|
(16,653)
|
|
|
14,423
|
|
Less: Gain/(loss)
from sale of discontinued operations, net of tax
|
112
|
|
|
(7,008)
|
|
Income from
continuing operations, net of tax
|
91,008
|
|
|
100,260
|
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
138,394
|
|
|
126,332
|
|
Impairment
loss
|
4,970
|
|
|
44,433
|
|
Provision for bad
debts and claim losses
|
11,825
|
|
|
13,345
|
|
Share-based
compensation
|
25,379
|
|
|
26,901
|
|
Tax benefit related
to stock options
|
(6,791)
|
|
|
(5,146)
|
|
Equity in earnings of
investee, net of taxes
|
(14,120)
|
|
|
(27,361)
|
|
Gain on sale of
property and equipment
|
(13,866)
|
|
|
—
|
|
Loss on early
extinguishment of debt
|
763
|
|
|
—
|
|
Deferred income
tax
|
20,986
|
|
|
8,120
|
|
Gain on investments
and other, net
|
(3,882)
|
|
|
(12,032)
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
13,151
|
|
|
24,553
|
|
Prepaid expenses and
other assets
|
1,231
|
|
|
113
|
|
Accounts payable and
accrued expenses
|
(5,000)
|
|
|
(9,330)
|
|
Deferred
revenue
|
16,010
|
|
|
48,125
|
|
Income
taxes
|
(11,380)
|
|
|
(27,543)
|
|
Dividends received
from investments in affiliates
|
38,655
|
|
|
36,680
|
|
Other assets and
other liabilities
|
28,260
|
|
|
(19,230)
|
|
Net cash provided by
operating activities - continuing operations
|
335,593
|
|
|
328,220
|
|
Net cash (used
in)/provided by operating activities - discontinued
operations
|
(13,717)
|
|
|
25,600
|
|
Total cash provided
by operating activities
|
$
|
321,876
|
|
|
$
|
353,820
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of
capitalized data and other intangible assets
|
$
|
(35,129)
|
|
|
$
|
(37,841)
|
|
Purchases of property
and equipment
|
(52,025)
|
|
|
(68,745)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(694,871)
|
|
|
(92,049)
|
|
Purchases of
investments
|
—
|
|
|
(2,351)
|
|
Cash received from
sale of subsidiary, net
|
25,366
|
|
|
2,263
|
|
Proceeds from sale of
property and equipment
|
13,937
|
|
|
—
|
|
Change in restricted
cash
|
(310)
|
|
|
10,068
|
|
Net cash used in
investing activities - continuing operations
|
(743,032)
|
|
|
(188,655)
|
|
Net cash provided
by/(used in) investing activities - discontinued
operations
|
1,536
|
|
|
1,862
|
|
Total cash used in
investing activities
|
$
|
(741,496)
|
|
|
$
|
(186,793)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
long-term debt
|
$
|
690,017
|
|
|
$
|
51,647
|
|
Debt issuance
costs
|
(14,042)
|
|
|
(10,436)
|
|
Repayments of
long-term debt
|
(200,006)
|
|
|
(4,666)
|
|
Proceeds from
issuance of stock related to stock options and employee benefit
plans
|
15,213
|
|
|
28,232
|
|
Minimum tax
withholding paid on behalf of employees for restricted stock
units
|
(15,980)
|
|
|
(8,665)
|
|
Shares repurchased
and retired
|
(91,475)
|
|
|
(241,161)
|
|
Tax benefit related
to stock options
|
6,791
|
|
|
5,146
|
|
Net cash provided
by/(used in) financing activities - continuing
operations
|
390,518
|
|
|
(179,903)
|
|
Net cash used in
financing activities - discontinued operations
|
—
|
|
|
—
|
|
Total cash provided
by/(used in) financing activities
|
$
|
390,518
|
|
|
$
|
(179,903)
|
|
Effect of Exchange
Rate on cash
|
(625)
|
|
|
(2,116)
|
|
Net decrease in cash
and cash equivalents
|
$
|
(29,727)
|
|
|
$
|
(14,992)
|
|
Cash and cash
equivalents at beginning of year
|
134,419
|
|
|
149,568
|
|
Less: Change in cash
and cash equivalents of discontinued operations
|
(12,181)
|
|
|
27,462
|
|
Plus: Cash swept
(to)/from discontinued operations
|
(12,196)
|
|
|
27,305
|
|
Cash and cash
equivalents at end of year
|
$
|
104,677
|
|
|
$
|
134,419
|
|
|
|
|
|
|
|
Please refer to the full Form 10-K filing for the complete
financial statements and related notes that are an integral part of
the financial statements.
CORELOGIC,
INC.
|
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31, 2014
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
21,952
|
|
$
|
36,510
|
|
$
|
(26,798)
|
|
$
|
(11,965)
|
|
$
|
19,699
|
|
Pre-tax equity in
earnings of affiliates
|
34
|
|
6,200
|
|
91
|
|
—
|
|
6,325
|
|
Depreciation &
amortization
|
26,159
|
|
6,354
|
|
5,245
|
|
—
|
|
37,758
|
|
Total interest
expense
|
(217)
|
|
73
|
|
17,660
|
|
—
|
|
17,516
|
|
Stock-based
compensation
|
545
|
|
866
|
|
1,890
|
|
—
|
|
3,301
|
|
Impairment loss
|
82
|
|
—
|
|
—
|
|
—
|
|
82
|
|
Non-operating
investment gains
|
—
|
|
—
|
|
(63)
|
|
—
|
|
(63)
|
|
Transaction
costs
|
—
|
|
—
|
|
(535)
|
|
—
|
|
(535)
|
|
Adjusted
EBITDA
|
$
|
48,555
|
|
$
|
50,003
|
|
$
|
(2,510)
|
|
$
|
(11,965)
|
|
$
|
84,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31, 2013
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
19,158
|
|
$
|
(17,702)
|
|
$
|
(30,780)
|
|
$
|
—
|
|
$
|
(29,324)
|
|
Pre-tax equity in
(loss)/earnings of affiliates
|
(9)
|
|
4,990
|
|
213
|
|
—
|
|
5,194
|
|
Depreciation &
amortization
|
19,049
|
|
7,664
|
|
2,921
|
|
—
|
|
29,634
|
|
Total interest
expense
|
(95)
|
|
135
|
|
12,693
|
|
—
|
|
12,733
|
|
Stock-based
compensation
|
1,312
|
|
2,355
|
|
2,545
|
|
—
|
|
6,212
|
|
Impairment
loss
|
—
|
|
42,711
|
|
—
|
|
—
|
|
42,711
|
|
Efficiency
investments
|
—
|
|
—
|
|
2,826
|
|
—
|
|
2,826
|
|
Transaction
costs
|
322
|
|
—
|
|
2,224
|
|
—
|
|
2,546
|
|
Adjusted
EBITDA
|
$
|
39,737
|
|
$
|
40,153
|
|
$
|
(7,358)
|
|
$
|
—
|
|
$
|
72,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2014
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
98,926
|
|
$
|
144,826
|
|
$
|
(125,129)
|
|
$
|
(11,965)
|
|
$
|
106,658
|
|
Pre-tax equity in
earnings of affiliates
|
49
|
|
22,900
|
|
39
|
|
—
|
|
22,988
|
|
Depreciation &
amortization
|
98,313
|
|
26,019
|
|
14,062
|
|
—
|
|
138,394
|
|
Total interest
expense
|
(299)
|
|
354
|
|
66,927
|
|
—
|
|
66,982
|
|
Stock-based
compensation
|
5,612
|
|
4,652
|
|
15,115
|
|
—
|
|
25,379
|
|
Impairment
loss
|
1,071
|
|
3,900
|
|
—
|
|
—
|
|
4,971
|
|
Non-operating
investment gains
|
—
|
|
(6,012)
|
|
(9,765)
|
|
—
|
|
(15,777)
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,616
|
|
—
|
|
1,616
|
|
Transaction
costs
|
—
|
|
—
|
|
9,005
|
|
—
|
|
9,005
|
|
Adjusted
EBITDA
|
$
|
203,672
|
|
$
|
196,639
|
|
$
|
(28,130)
|
|
$
|
(11,965)
|
|
$
|
360,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2013
|
(in
thousands)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
108,512
|
|
$
|
137,984
|
|
$
|
(139,924)
|
|
—
|
|
$
|
106,572
|
|
Pre-tax equity in
earnings of affiliates
|
1,631
|
|
41,638
|
|
548
|
|
—
|
|
43,817
|
|
Depreciation &
amortization
|
74,186
|
|
30,780
|
|
21,366
|
|
—
|
|
126,332
|
|
Total interest
(income)/expense
|
(552)
|
|
491
|
|
47,663
|
|
—
|
|
47,602
|
|
Stock-based
compensation
|
3,634
|
|
8,844
|
|
14,423
|
|
—
|
|
26,901
|
|
Impairment
loss
|
1,482
|
|
42,950
|
|
—
|
|
—
|
|
44,432
|
|
Non-operating
investment gains
|
(6,638)
|
|
—
|
|
—
|
|
—
|
|
(6,638)
|
|
Efficiency
investments
|
—
|
|
—
|
|
5,832
|
|
—
|
|
5,832
|
|
Transaction
costs
|
322
|
|
—
|
|
7,842
|
|
—
|
|
8,164
|
|
Adjusted
EBITDA
|
$
|
182,577
|
|
$
|
262,687
|
|
$
|
(42,250)
|
|
$
|
—
|
|
$
|
403,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORELOGIC,
INC.
|
RECONCILIATION OF
ADJUSTED DILUTED EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31, 2014
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
21,952
|
|
$
|
36,510
|
|
$
|
(26,798)
|
|
$
|
(11,965)
|
|
$
|
19,699
|
|
Pre-tax equity in
earnings of affiliates
|
34
|
|
6,200
|
|
91
|
|
—
|
|
6,325
|
|
Stock-based
compensation
|
545
|
|
866
|
|
1,890
|
|
—
|
|
3,301
|
|
Non-operating
investment gains
|
—
|
|
—
|
|
(63)
|
|
—
|
|
(63)
|
|
Transaction
costs
|
—
|
|
—
|
|
(535)
|
|
—
|
|
(535)
|
|
Impairment
loss
|
82
|
|
—
|
|
—
|
|
—
|
|
82
|
|
Amortization of
acquired intangibles
|
7,048
|
|
2,671
|
|
—
|
|
—
|
|
9,719
|
|
Depreciation of
certain acquired proprietary technology
included in property and equipment
|
2,880
|
|
—
|
|
—
|
|
—
|
|
2,880
|
|
Adjusted pretax
income from continuing operations
|
$
|
32,541
|
|
$
|
46,247
|
|
$
|
(25,415)
|
|
$
|
(11,965)
|
|
$
|
41,408
|
|
Tax provision (38%
rate)
|
|
|
|
|
|
|
|
|
15,735
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
368
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
25,305
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
91,245
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31, 2013
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
19,158
|
|
$
|
(17,702)
|
|
$
|
(30,780)
|
|
$
|
—
|
|
$
|
(29,324)
|
|
Pre-tax equity in
(loss)/earnings of affiliates
|
(9)
|
|
4,990
|
|
213
|
|
—
|
|
5,194
|
|
Stock-based
compensation
|
1,312
|
|
2,355
|
|
2,545
|
|
—
|
|
6,212
|
|
Efficiency
investments
|
—
|
|
—
|
|
2,826
|
|
—
|
|
2,826
|
|
Impairment
loss
|
—
|
|
42,711
|
|
—
|
|
—
|
|
42,711
|
|
Transaction
costs
|
322
|
|
—
|
|
2,224
|
|
—
|
|
2,546
|
|
Amortization of
acquired intangibles
|
4,858
|
|
4,174
|
|
—
|
|
—
|
|
9,032
|
|
Adjusted pretax
income from continuing operations
|
$
|
25,641
|
|
$
|
36,528
|
|
$
|
(22,972)
|
|
$
|
—
|
|
$
|
39,197
|
|
Tax provision (40%
rate)
|
|
|
|
|
|
|
|
|
15,679
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
(72)
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
23,590
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
95,115
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2014
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
98,926
|
|
$
|
144,826
|
|
$
|
(125,129)
|
|
$
|
(11,965)
|
|
$
|
106,658
|
|
Pre-tax equity in
earnings of affiliates
|
49
|
|
22,900
|
|
39
|
|
—
|
|
22,988
|
|
Stock-based
compensation
|
5,612
|
|
4,652
|
|
15,115
|
|
—
|
|
25,379
|
|
Non-operating
investment gains
|
—
|
|
(6,012)
|
|
(9,765)
|
|
—
|
|
(15,777)
|
|
Transaction
costs
|
—
|
|
—
|
|
9,005
|
|
—
|
|
9,005
|
|
Efficiency
investments
|
—
|
|
—
|
|
1,616
|
|
—
|
|
1,616
|
|
Interest expense
adjustments
|
—
|
|
—
|
|
130
|
|
—
|
|
130
|
|
Impairment
loss
|
1,071
|
|
3,900
|
|
—
|
|
—
|
|
4,971
|
|
Amortization of
acquired intangibles
|
26,838
|
|
10,614
|
|
—
|
|
—
|
|
37,452
|
|
Depreciation of
certain acquired proprietary technology
included in property and equipment
|
8,395
|
|
—
|
|
—
|
|
—
|
|
8,395
|
|
Adjusted pretax
income from continuing operations
|
$
|
140,891
|
|
$
|
180,880
|
|
$
|
(108,989)
|
|
$
|
(11,965)
|
|
$
|
200,817
|
|
Tax provision (38%
rate)
|
|
|
|
|
|
|
|
|
76,310
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
1,267
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
123,240
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
92,429
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2013
|
(in thousands,
except per share amounts)
|
D&A
|
TPS
|
Corporate
|
Elim
|
CoreLogic
|
Income/(loss) from
continuing operations before equity in
earnings of affiliates and income taxes
|
$
|
108,512
|
|
$
|
137,984
|
|
$
|
(139,924)
|
|
$
|
—
|
|
$
|
106,572
|
|
Pre-tax equity in
earnings of affiliates
|
1,631
|
|
41,638
|
|
548
|
|
—
|
|
43,817
|
|
Stock-based
compensation
|
3,634
|
|
8,844
|
|
14,423
|
|
—
|
|
26,901
|
|
Non-operating
investment gains
|
(6,638)
|
|
—
|
|
—
|
|
—
|
|
(6,638)
|
|
Transaction
costs
|
322
|
|
—
|
|
7,842
|
|
—
|
|
8,164
|
|
Efficiency
investments
|
—
|
|
—
|
|
5,832
|
|
—
|
|
5,832
|
|
Amortization of
acquired intangibles
|
19,588
|
|
15,723
|
|
—
|
|
—
|
|
35,311
|
|
Impairment
loss
|
1,482
|
|
42,950
|
|
—
|
|
—
|
|
44,432
|
|
Accelerated
depreciation on TTI
|
—
|
|
—
|
|
8,751
|
|
—
|
|
8,751
|
|
Adjusted pretax
income from continuing operations
|
$
|
128,531
|
|
$
|
247,139
|
|
$
|
(102,528)
|
|
$
|
—
|
|
$
|
273,142
|
|
Tax provision (40%
rate)
|
|
|
|
|
|
|
|
|
109,257
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
(53)
|
|
Adjusted net income
attributable to CoreLogic
|
|
|
|
|
|
|
|
|
$
|
163,938
|
|
Weighted average
diluted common shares outstanding
|
|
|
|
|
|
|
|
|
97,109
|
|
Adjusted diluted
EPS
|
|
|
|
|
|
|
|
|
$
|
1.69
|
|
CORELOGIC,
INC.
|
RECONCILIATION TO
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended
December 31, 2014
|
Net cash provided by
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
335,593
|
|
Purchases of
capitalized data and other intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,129)
|
|
Purchases of property
and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52,025)
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
248,439
|
|
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visit:http://www.prnewswire.com/news-releases/corelogic-reports-fourth-quarter-and-full-year-2014-financial-results-300040735.html
SOURCE CoreLogic