Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”)
(NASDAQ: ASPS), a leading provider and marketplace for the real
estate and mortgage industries, today reported financial results
for the first quarter 2024.
“I am very pleased with our first quarter
performance. We generated $4.6 million of Adjusted EBITDA(1),
marking our best quarterly performance since the third quarter of
2020, on $36.9 million of service revenue. We are winning
meaningful new business and ramping 2023 sales wins on a lower cost
base. In our Servicer and Real Estate segment, we are winning
market share. In our Origination segment, we are increasing
adoption of our solutions that help originators save money,” said
Chairman and Chief Executive Officer William B. Shepro.
Mr. Shepro further commented, “We believe our
financial results and sales wins demonstrate that we are not
waiting for the default market to return to normal or for
delinquency rates to rise to achieve growth. For the balance of
2024, we anticipate quarter over quarter Service revenue and
Adjusted EBITDA(1) growth compared to the same quarters in 2023 as
we continue to ramp sales wins and win new business on a lower cost
base.”
First Quarter
2024
Highlights(2)
Company, Corporate and Financial:
- Service revenue of $36.9 million
was $0.2 million lower than the first quarter 2023 and $4.7 million
higher than the fourth quarter 2023
- Revenue of $39.5 million was the
same as the first quarter 2023 and $5.3 million higher than the
fourth quarter 2023
- Adjusted earnings before interest,
tax, depreciation and amortization (“Adjusted EBITDA”)(1) of
$4.6 million was $3.2 million better than the same period in
2023 and $4.4 million better than the fourth quarter 2023; first
quarter 2024 Adjusted EBITDA(1) includes an estimated $0.6 million
of net non-recurring gains compared to an estimated of $2.1 million
of non-recurring gains in the first quarter 2023
- Adjusted EBITDA(1) margin of 12.6%
was considerably stronger than the first quarter of 2023 Adjusted
EBITDA(1) margin of 4.0% and the fourth quarter 2023 Adjusted
EBITDA(1) margin of 0.7%
- Gross profit margin of 33.4% was
considerably stronger than the first quarter of 2023 gross profit
margin of 22.9% and the fourth quarter 2023 gross profit margin of
26.2%
- Ended the quarter with $29.6
million of cash and cash equivalents, $15.0 million available under
a revolving credit facility and $196.6 million of net debt(1)
Business and Industry:
- Generated sales wins which we
estimate represent potential annualized revenue on a stabilized
basis of $6.3 million for the Servicer and Real Estate segment and
$4.2 million for the Origination segment
- Ended the quarter with a weighted
average sales pipeline between $36 million and $45 million of
estimated potential revenue on a stabilized basis based upon
forecasted probability of closing (comprising of between $24
million and $30 million in the Servicer and Real Estate segment and
between $12 million and $15 million in the Origination
segment)
- Improved Adjusted EBITDA(1) in the
Servicer and Real Estate and Origination segments (together
“Business Segments”) to $10.9 million, or 29.5% of Service revenue,
from $10.4 million, or 28.0% of Service revenue, in the first
quarter 2023 and $8.2 million, or 25.6% of Service revenue, in the
fourth quarter 2023
- Industrywide foreclosure
initiations were 5% lower for January and February of 2024 compared
to the same period in 2023 (and 35% lower than the same
pre-COVID-19 periods in 2019)(3)
- Industrywide foreclosure sales were
11% lower for January and February of 2024 compared to the same
period in 2023 (and 52% lower than the same pre-COVID-19 periods in
2019)(3)
- Industrywide early-stage mortgage
delinquencies (30-days late) decreased by 8% and borrowers who have
missed two payments (60-days past due) decreased by 8% in February
2024 compared to December 2023(3)
- Industrywide mortgage origination
volume increased by 8% for the first quarter 2024 compared to the
first quarter 2023(4)
- Industrywide seriously delinquent
mortgage rate (90+ day past due and loans in foreclosure) remain
unchanged at 1.3% in February 2024 and December 2023
First Quarter
2024 Financial Results
- Service revenue of $36.9 million
- Loss before income taxes and non-controlling interests of
$(8.4) million
- Net loss attributable to Altisource of $(9.2) million
- Adjusted EBITDA(1) of $4.6 million
First Quarter
2024 Results Compared to the
First Quarter 2023
(unaudited):
|
(in thousands, except per share data) |
First Quarter 2024 |
|
First Quarter 2023 |
|
% Change |
|
Service revenue |
$ |
36,891 |
|
|
$ |
37,071 |
|
|
— |
|
|
Revenue |
|
39,469 |
|
|
|
39,461 |
|
|
— |
|
|
Gross profit |
|
12,304 |
|
|
|
8,504 |
|
|
45 |
|
|
Loss from operations |
|
(548 |
) |
|
|
(3,590 |
) |
|
85 |
|
|
Adjusted operating income(1) |
|
2,958 |
|
|
|
2,275 |
|
|
30 |
|
|
Loss before income taxes and non-controlling interests |
|
(8,435 |
) |
|
|
(11,338 |
) |
|
26 |
|
|
Pretax loss attributable to Altisource(1) |
|
(8,476 |
) |
|
|
(11,418 |
) |
|
26 |
|
|
Adjusted pretax loss attributable to Altisource(1) |
|
(4,970 |
) |
|
|
(5,553 |
) |
|
10 |
|
|
Adjusted EBITDA(1) |
|
4,632 |
|
|
|
1,472 |
|
|
215 |
|
|
Net loss attributable to Altisource |
|
(9,198 |
) |
|
|
(12,947 |
) |
|
29 |
|
|
Adjusted net loss attributable to Altisource(1) |
|
(5,598 |
) |
|
|
(7,086 |
) |
|
21 |
|
|
Diluted loss per share |
|
(0.33 |
) |
|
|
(0.70 |
) |
|
53 |
|
|
Adjusted diluted loss per share(1) |
|
(0.20 |
) |
|
|
(0.38 |
) |
|
47 |
|
|
Net cash used in operating activities |
|
(2,237 |
) |
|
|
(3,058 |
) |
|
27 |
|
|
Net cash used in operating activities less additions to premises
and equipment(1) |
|
(2,237 |
) |
|
|
(3,058 |
) |
|
27 |
|
|
|
|
|
|
|
|
|
|
Margins: |
|
|
|
|
|
|
|
Gross profit / service revenue |
|
33 |
% |
|
|
23 |
% |
|
|
|
|
Adjusted EBITDA(1) / service revenue |
|
13 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- First quarter 2023 loss before
income taxes and non-controlling interests includes
$3.2 million of debt amendment costs (no comparative amount
for the first quarter of 2024). First quarter 2023 loss before
income taxes and non-controlling interests includes
$0.7 million of other income related to the change in fair
value of warrant liability (no comparative amount for the first
quarter of 2024).
________________________
|
(1) |
This is a non-GAAP measure that is defined and reconciled to the
corresponding GAAP measure herein |
|
(2) |
Applies to the first quarter 2024 unless otherwise indicated |
|
(3) |
Based on data from ICE’s Mortgage Monitor report with data through
February 2024 |
|
(4) |
Based on estimated number of loans originated as reported by the
Mortgage Bankers Association’s Mortgage Finance Forecast dated
April 18, 2024 |
|
|
|
Forward-Looking Statements
This press release contains forward-looking
statements that involve a number of risks and uncertainties. These
forward-looking statements include all statements that are not
historical fact, including statements that relate to, among other
things, future events or our future performance or financial
condition. These statements may be identified by words such as
“anticipate,” “intend,” “expect,” “may,” “could,” “should,”
“would,” “plan,” “estimate,” “seek,” “believe,” “potential” or
“continue” or the negative of these terms and comparable
terminology. Such statements are based on expectations as to the
future and are not statements of historical fact. Furthermore,
forward-looking statements are not guarantees of future performance
and involve a number of assumptions, risks and uncertainties that
could cause actual results to differ materially. Important factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements include, but are not
limited to, the risks discussed in Item 1A of Part I “Risk Factors”
in our Form 10-K filing with the Securities and Exchange
Commission, as the same may be updated from time to time in our
Form 10-Q filings. We caution you not to place undue reliance on
these forward-looking statements which reflect our view only as of
the date of this report. We are under no obligation (and expressly
disclaim any obligation) to update or alter any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or change in events, conditions or
circumstances on which any such statement is based. The risks and
uncertainties to which forward-looking statements are subject
include, but are not limited to, risks related to the COVID-19
pandemic, customer concentration, the timing of the anticipated
increase in default related referrals following the expiration of
foreclosure and eviction moratoriums and forbearance programs, the
timing of the expiration of such moratoriums and programs, and any
other delays occasioned by government, investor or servicer
actions, the use and success of our products and services, our
ability to retain existing customers and attract new customers and
the potential for expansion or changes in our customer
relationships, technology disruptions, our compliance with
applicable data requirements, our use of third party vendors and
contractors, our ability to effectively manage potential conflicts
of interest, macro-economic and industry specific conditions, our
ability to effectively manage our regulatory and contractual
obligations, the adequacy of our financial resources, including our
sources of liquidity and ability to repay borrowings and comply
with our Credit Agreement, including the financial and other
covenants contained therein, as well as Altisource’s ability to
retain key executives or employees, behavior of customers,
suppliers and/or competitors, technological developments,
governmental regulations, taxes and policies. The financial
projections and scenarios contained in this press release are
expressly qualified as forward-looking statements and, as with
other forward-looking statements, should not be unduly relied upon.
We undertake no obligation to update these statements, scenarios
and projections as a result of a change in circumstances, new
information or future events.
Webcast
Altisource will host a webcast at 08:30 a.m. EDT
today to discuss our first quarter. A link to the live audio
webcast will be available on Altisource’s website in the Investor
Relations section. Those who want to listen to the call should go
to the website at least fifteen minutes prior to the call to
register, download and install any necessary audio software. A
replay of the conference call will be available via the website
approximately two hours after the conclusion of the call and will
remain available for approximately 30 days.
About Altisource
Altisource Portfolio Solutions S.A. is an
integrated service provider and marketplace for the real estate and
mortgage industries. Combining operational excellence with a suite
of innovative services and technologies, Altisource helps solve the
demands of the ever-changing markets we serve. Additional
information is available at www.Altisource.com.
FOR FURTHER INFORMATION
CONTACT:
Michelle D. EstermanChief Financial
Officer T: (770) 612-7007 E:
Michelle.Esterman@altisource.com
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS (in thousands, except per share
data) (unaudited) |
|
|
|
|
Three months ended March 31, |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
Service revenue |
$ |
36,891 |
|
|
$ |
37,071 |
|
|
Reimbursable expenses |
|
2,537 |
|
|
|
2,310 |
|
|
Non-controlling interests |
|
41 |
|
|
|
80 |
|
|
Total revenue |
|
39,469 |
|
|
|
39,461 |
|
|
Cost of revenue |
|
27,165 |
|
|
|
30,957 |
|
|
Gross profit |
|
12,304 |
|
|
|
8,504 |
|
|
Selling, general and administrative expenses |
|
12,852 |
|
|
|
12,094 |
|
|
|
|
|
|
|
Loss from operations |
|
(548 |
) |
|
|
(3,590 |
) |
|
Other income (expense), net: |
|
|
|
|
Interest expense |
|
(9,529 |
) |
|
|
(6,760 |
) |
|
Change in fair value of warrant liability |
|
— |
|
|
|
694 |
|
|
Debt amendment costs |
|
— |
|
|
|
(3,242 |
) |
|
Other income (expense), net |
|
1,642 |
|
|
|
1,560 |
|
|
Total other income (expense), net |
|
(7,887 |
) |
|
|
(7,748 |
) |
|
|
|
|
|
|
Loss before income taxes and non-controlling interests |
|
(8,435 |
) |
|
|
(11,338 |
) |
|
Income tax provision |
|
(722 |
) |
|
|
(1,529 |
) |
|
|
|
|
|
|
Net loss |
|
(9,157 |
) |
|
|
(12,867 |
) |
|
Net income attributable to non-controlling interests |
|
(41 |
) |
|
|
(80 |
) |
|
|
|
|
|
|
Net loss attributable to Altisource |
$ |
(9,198 |
) |
|
$ |
(12,947 |
) |
|
|
|
|
|
|
Loss per share: |
|
|
|
|
Basic |
$ |
(0.33 |
) |
|
$ |
(0.70 |
) |
|
Diluted |
$ |
(0.33 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
Basic |
|
28,181 |
|
|
|
18,442 |
|
|
Diluted |
|
28,181 |
|
|
|
18,442 |
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
Comprehensive loss, net of tax |
$ |
(9,157 |
) |
|
$ |
(12,867 |
) |
|
Comprehensive income attributable to non-controlling interests |
|
(41 |
) |
|
|
(80 |
) |
|
|
|
|
|
|
Comprehensive loss attributable to Altisource |
$ |
(9,198 |
) |
|
$ |
(12,947 |
) |
| |
|
|
|
|
|
|
|
| ALTISOURCE
PORTFOLIO SOLUTIONS S.A.CONSOLIDATED BALANCE
SHEETS(in thousands, except for per share
data)(unaudited) |
| |
| |
March 31, 2024 |
|
December 31, 2023 |
| |
|
|
|
| ASSETS |
| Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
29,599 |
|
|
$ |
32,522 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$3,555 and $3,123, respectively |
|
13,625 |
|
|
|
11,682 |
|
|
Prepaid expenses and other current assets |
|
8,350 |
|
|
|
11,336 |
|
|
Total current assets |
|
51,574 |
|
|
|
55,540 |
|
| |
|
|
|
| Premises and
equipment, net |
|
1,413 |
|
|
|
1,709 |
|
| Right-of-use
assets under operating leases |
|
2,983 |
|
|
|
3,379 |
|
|
Goodwill |
|
55,960 |
|
|
|
55,960 |
|
| Intangible
assets, net |
|
25,278 |
|
|
|
26,548 |
|
| Deferred tax
assets, net |
|
4,985 |
|
|
|
4,992 |
|
| Other
assets |
|
6,675 |
|
|
|
6,730 |
|
| |
|
|
|
| Total
assets |
$ |
148,868 |
|
|
$ |
154,858 |
|
| |
|
|
|
| LIABILITIES AND
DEFICIT |
| Current
liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
28,465 |
|
|
$ |
30,088 |
|
|
Deferred revenue |
|
3,445 |
|
|
|
3,195 |
|
|
Other current liabilities |
|
2,171 |
|
|
|
2,477 |
|
|
Total current liabilities |
|
34,081 |
|
|
|
35,760 |
|
| |
|
|
|
| Long-term
debt |
|
219,266 |
|
|
|
215,615 |
|
| Deferred tax
liabilities, net |
|
8,998 |
|
|
|
9,028 |
|
| Other
non-current liabilities |
|
19,221 |
|
|
|
19,510 |
|
| |
|
|
|
| Commitments,
contingencies and regulatory matters |
|
|
|
| |
|
|
|
|
Deficit: |
|
|
|
|
Common stock ($1.00 par value; 100,000 shares authorized, 29,963
issued and 26,953 outstanding as of March 31, 2024; 29,963
issued and 26,496 outstanding as of December 31, 2023) |
|
29,963 |
|
|
|
29,963 |
|
|
Additional paid-in capital |
|
179,093 |
|
|
|
177,278 |
|
|
Accumulated deficit |
|
(218,517 |
) |
|
|
(180,162 |
) |
|
Treasury stock, at cost (3,010 shares as of March 31, 2024 and
3,467 shares as of December 31, 2023) |
|
(123,874 |
) |
|
|
(152,749 |
) |
|
Altisource deficit |
|
(133,335 |
) |
|
|
(125,670 |
) |
| |
|
|
|
|
Non-controlling interests |
|
637 |
|
|
|
615 |
|
|
Total deficit |
|
(132,698 |
) |
|
|
(125,055 |
) |
| |
|
|
|
| Total
liabilities and deficit |
$ |
148,868 |
|
|
$ |
154,858 |
|
| |
|
|
|
|
|
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS
S.A.CONSOLIDATED STATEMENTS OF CASH
FLOWS(in
thousands)(unaudited) |
|
|
|
|
Three months ended March 31, |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net loss |
$ |
(9,157 |
) |
|
$ |
(12,867 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
296 |
|
|
|
699 |
|
|
Amortization of right-of-use assets under operating leases |
|
410 |
|
|
|
472 |
|
|
Amortization of intangible assets |
|
1,270 |
|
|
|
1,280 |
|
|
PIK accrual |
|
2,102 |
|
|
|
— |
|
|
Share-based compensation expense |
|
2,213 |
|
|
|
1,445 |
|
|
Bad debt expense |
|
558 |
|
|
|
40 |
|
|
Amortization of debt discount |
|
942 |
|
|
|
904 |
|
|
Amortization of debt issuance costs |
|
607 |
|
|
|
627 |
|
|
Deferred income taxes |
|
(30 |
) |
|
|
(155 |
) |
|
Loss on disposal of fixed assets |
|
— |
|
|
|
23 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
(694 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(2,501 |
) |
|
|
(1,308 |
) |
|
Prepaid expenses and other current assets |
|
2,986 |
|
|
|
10,506 |
|
|
Other assets |
|
49 |
|
|
|
(2,044 |
) |
|
Accounts payable and accrued expenses |
|
(1,623 |
) |
|
|
(478 |
) |
|
Current and non-current operating lease liabilities |
|
(420 |
) |
|
|
(465 |
) |
|
Other current and non-current liabilities |
|
61 |
|
|
|
(1,043 |
) |
|
Net cash used in operating activities |
|
(2,237 |
) |
|
|
(3,058 |
) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of common stock, net of issuance costs |
|
— |
|
|
|
20,461 |
|
|
Exercise of Warrants, net of costs |
|
(90 |
) |
|
|
— |
|
|
Debt issuance and amendment costs |
|
— |
|
|
|
(4,786 |
) |
|
Repayments of long-term debt |
|
— |
|
|
|
(20,000 |
) |
|
Distributions to non-controlling interests |
|
(19 |
) |
|
|
(102 |
) |
|
Payments of tax withholding on issuance of restricted share units
and restricted shares |
|
(590 |
) |
|
|
(460 |
) |
|
Net cash used in financing activities |
|
(699 |
) |
|
|
(4,887 |
) |
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
(2,936 |
) |
|
|
(7,945 |
) |
|
Cash, cash equivalents and restricted cash at the beginning of the
period |
|
35,416 |
|
|
|
54,273 |
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the end of the
period |
$ |
32,480 |
|
|
$ |
46,328 |
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
Interest paid |
$ |
5,853 |
|
|
$ |
5,221 |
|
|
Income taxes paid (refunded), net |
|
229 |
|
|
|
(4,663 |
) |
|
Acquisition of right-of-use assets with operating lease
liabilities |
|
14 |
|
|
|
258 |
|
|
|
|
|
|
|
Non-cash investing and financing activities: |
|
|
|
|
Warrants issued in connection with Amended Credit Agreement |
|
— |
|
|
|
8,096 |
|
|
ALTISOURCE PORTFOLIO SOLUTIONS
S.A.NON-GAAP MEASURES(in
thousands, except per share
data)(unaudited) |
| |
Adjusted operating income, pretax loss
attributable to Altisource, adjusted pretax loss attributable to
Altisource, adjusted net loss attributable to Altisource, adjusted
diluted loss per share, net cash used in operating activities less
additions to premises and equipment, Adjusted EBITDA, Business
Segments Adjusted EBITDA and net debt, which are presented
elsewhere in this earnings release, are non-GAAP measures used by
management, existing shareholders, potential shareholders and other
users of our financial information to measure Altisource’s
performance and do not purport to be alternatives to loss from
operations, loss before income taxes and non-controlling interests,
net loss attributable to Altisource, diluted loss per share, net
cash used in operating activities and long-term debt, including
current portion, as measures of Altisource’s performance. We
believe these measures are useful to management, existing
shareholders, potential shareholders and other users of our
financial information in evaluating operating profitability and
cash flow generation more on the basis of continuing cost and cash
flows as they exclude amortization expense related to acquisitions
that occurred in prior periods and non-cash share-based
compensation, as well as the effect of more significant
non-operational items from earnings, cash flows from operating
activities and long-term debt net of cash on-hand. We believe these
measures are also useful in evaluating the effectiveness of our
operations and underlying business trends in a manner that is
consistent with management’s evaluation of business performance.
Furthermore, we believe the exclusion of more significant
non-operational items enables comparability to prior period
performance and trend analysis. Specifically, management uses
adjusted net loss attributable to Altisource to measure the
on-going after tax performance of the Company because the measure
adjusts for the after tax impact of more significant non-recurring
items, amortization expense relating to prior acquisitions (some of
which fluctuates with revenue from certain customers and some of
which is amortized on a straight-line basis) and non-cash
share-based compensation expense which can fluctuate based on
vesting schedules, grant date timing and the value attributable to
awards. We believe adjusted net loss attributable to Altisource is
useful to existing shareholders, potential shareholders and other
users of our financial information because it provides an after-tax
measure of Altisource’s on-going performance that enables these
users to perform trend analysis using comparable data. Management
uses adjusted diluted loss per share to further evaluate adjusted
net loss attributable to Altisource while taking into account
changes in the number of diluted shares over the comparable
periods. We believe adjusted diluted loss per share is useful to
existing shareholders, potential shareholders and other users of
our financial information because it also enables these users to
evaluate adjusted net loss attributable to Altisource on a per
share basis. Management uses Adjusted EBITDA to measure the
Company’s overall performance and Business Segments Adjusted EBITDA
to measure the segments overall performance (with the adjustments
discussed earlier with regard to adjusted net loss attributable to
Altisource) without regard to its capitalization (debt vs. equity)
or its income taxes and to perform trend analysis of the Company’s
performance over time. Our effective income tax rate can vary based
on the jurisdictional mix of our income. Additionally, as the
Company’s capital expenditures have significantly declined over
time, it provides a measure for management to evaluate the
Company’s performance without regard to prior capital expenditures.
Management also uses Adjusted EBITDA as one of the measures in
determining bonus compensation for certain employees. We believe
Adjusted EBITDA and Business Segments Adjusted EBITDA are useful to
existing shareholders, potential shareholders and other users of
our financial information for the same reasons that management
finds the measure useful. Management uses net debt in evaluating
the amount of debt the Company has that is in excess of cash and
cash equivalents. We believe net debt is useful to existing
shareholders, potential shareholders and other users of our
financial information for the same reasons management finds the
measure useful.
Altisource operates in several countries,
including Luxembourg, India, the United States and Uruguay. The
Company has differing effective tax rates in each country and these
rates may change from year to year. In determining the tax effects
related to the adjustments in calculating adjusted net loss
attributable to Altisource and adjusted diluted loss per share, we
use the tax rate in the country in which the adjustment applies or,
if the adjustment is recognized in more than one country, we
separate the adjustment by country, apply the relevant tax rate for
each country to the applicable adjustment, and then sum the result
to arrive at the total adjustment, net of tax. In 2019, the Company
recognized a full valuation allowance on its net deferred tax
assets in Luxembourg. Accordingly, for 2024 and 2023, the Company
has an effective tax rate of close to 0% in Luxembourg.
It is management’s intent to provide non-GAAP
financial information to enhance the understanding of Altisource’s
GAAP financial information, and it should be considered by the
reader in addition to, but not instead of, the financial statements
prepared in accordance with GAAP. Each non-GAAP financial measure
is presented along with the corresponding GAAP measure so as not to
imply that more emphasis should be placed on the non-GAAP measure.
The non-GAAP financial information presented may be determined or
calculated differently by other companies. The non-GAAP financial
information should not be unduly relied upon.
Adjusted operating income is calculated by
removing intangible asset amortization expense, share-based
compensation expense, cost of cost savings initiatives and other,
debt amendment costs and Unrealized gain on warrant liability from
loss from operations. Pretax loss attributable to Altisource is
calculated by removing non-controlling interests from loss before
income taxes and non-controlling interests. Adjusted pretax loss
attributable to Altisource is calculated by removing
non-controlling interests, intangible asset amortization expense,
share-based compensation expense, cost of cost savings initiatives
and other, debt amendment costs and unrealized gain on warrant
liability from loss before income taxes and non-controlling
interests. Adjusted net loss attributable to Altisource is
calculated by removing intangible asset amortization expense (net
of tax), share-based compensation expense (net of tax), cost of
cost savings initiatives and other (net of tax), debt amendment
costs, unrealized gain on warrant liability and certain income tax
related items from net loss attributable to Altisource. Adjusted
diluted loss per share is calculated by dividing net loss
attributable to Altisource after removing intangible asset
amortization expense (net of tax), share-based compensation expense
(net of tax), cost of cost savings initiatives and other (net of
tax), debt amendment costs (net of tax), unrealized gain on warrant
liability (net of tax) and certain income tax related items by the
weighted average number of diluted shares. Net cash used in
operating activities less additions to premises and equipment is
calculated by removing additions to premises and equipment from net
cash used in operating activities. Adjusted EBITDA is calculated by
removing the income tax provision, interest expense (net of
interest income), depreciation and amortization, intangible asset
amortization expense, share-based compensation expense, cost of
cost savings initiatives and other, debt amendment costs and
unrealized gain on warrant liability from net loss attributable to
Altisource. Business Segments Adjusted EBITDA is calculated by
removing non-controlling interests, depreciation and amortization,
intangible asset amortization expense, share-based compensation
expense, cost of cost savings initiatives and other from income
before income taxes and non-controlling interests. Net debt is
calculated as long-term debt, including current portion, minus cash
and cash equivalents.
Reconciliations of the non-GAAP measures to the
corresponding GAAP measures are as follows:
| |
|
|
|
Three months ended March
31, |
|
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
Loss from operations |
$ |
(548 |
) |
|
$ |
(3,590 |
) |
|
|
|
|
|
|
|
|
Intangible asset amortization expense |
1,270 |
|
|
1,280 |
|
|
Share-based compensation expense |
2,213 |
|
|
1,445 |
|
|
Cost of cost savings initiatives and other |
23 |
|
|
591 |
|
|
Debt amendment costs |
— |
|
|
3,242 |
|
|
Unrealized gain on warrant liability |
— |
|
|
(693 |
) |
|
|
|
|
|
|
|
|
Adjusted operating income |
$ |
2,958 |
|
|
$ |
2,275 |
|
|
|
|
|
|
|
|
|
Loss before income taxes and non-controlling interests |
$ |
(8,435 |
) |
|
$ |
(11,338 |
) |
|
|
|
|
|
|
|
|
Non-controlling interests |
(41 |
) |
|
(80 |
) |
|
Pretax loss attributable to Altisource |
(8,476 |
) |
|
(11,418 |
) |
|
Intangible asset amortization expense |
1,270 |
|
|
1,280 |
|
|
Share-based compensation expense |
2,213 |
|
|
1,445 |
|
|
Cost of cost savings initiatives and other |
23 |
|
|
591 |
|
|
Debt amendment costs |
— |
|
|
3,242 |
|
|
Unrealized gain on warrant liability |
— |
|
|
(693 |
) |
|
|
|
|
|
|
|
|
Adjusted pretax loss attributable to Altisource |
$ |
(4,970 |
) |
|
$ |
(5,553 |
) |
|
|
|
|
|
|
|
|
Net loss attributable to Altisource |
$ |
(9,198 |
) |
|
$ |
(12,947 |
) |
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax |
1,270 |
|
|
1,278 |
|
|
Share-based compensation expense, net of tax |
1,962 |
|
|
1,167 |
|
|
Cost of cost savings initiatives and other, net of tax |
17 |
|
|
491 |
|
|
Debt amendment costs, net of tax |
— |
|
|
3,242 |
|
|
Unrealized gain on warrant liability, net of tax |
— |
|
|
(693 |
) |
|
Certain income tax related items |
351 |
|
|
376 |
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to Altisource |
$ |
(5,598 |
) |
|
$ |
(7,086 |
) |
|
|
|
|
|
|
|
|
Diluted loss per share |
$ |
(0.33 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax, per diluted
share |
0.05 |
|
|
0.07 |
|
|
Share-based compensation expense, net of tax, per diluted
share |
0.07 |
|
|
0.06 |
|
|
Cost of cost savings initiatives and other, net of tax, per diluted
share |
— |
|
|
0.03 |
|
|
Debt amendment costs, net of tax, per diluted share |
— |
|
|
0.18 |
|
|
Unrealized gain on warrant liability, net of tax, per diluted
share |
— |
|
|
(0.04 |
) |
|
Certain income tax related items per diluted share |
0.01 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
Adjusted diluted loss per share |
$ |
(0.20 |
) |
|
$ |
(0.38 |
) |
|
|
|
|
|
|
|
|
Calculation of the impact of intangible asset amortization expense,
net of tax |
|
|
|
|
|
|
Intangible asset amortization expense |
$ |
1,270 |
|
|
$ |
1,280 |
|
|
Tax benefit from intangible asset amortization |
— |
|
|
(2 |
) |
|
Intangible asset amortization expense, net of tax |
1,270 |
|
|
1,278 |
|
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax, per diluted
share |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
Calculation of the impact of share-based compensation expense, net
of tax |
|
|
|
|
|
|
Share-based compensation expense |
$ |
2,213 |
|
|
$ |
1,445 |
|
|
Tax benefit from share-based compensation expense |
(251 |
) |
|
(278 |
) |
|
Share-based compensation expense, net of tax |
1,962 |
|
|
1,167 |
|
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Share-based compensation expense, net of tax, per diluted
share |
$ |
0.07 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
Calculation of the impact of cost of cost savings initiatives and
other, net of tax |
|
|
|
|
|
|
Cost of cost savings initiatives and other |
$ |
23 |
|
|
$ |
591 |
|
|
Tax benefit from cost of cost savings initiatives and other |
(6 |
) |
|
(100 |
) |
|
Cost of cost savings initiatives and other, net of tax |
17 |
|
|
491 |
|
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Cost of cost savings initiatives and other, net of tax, per diluted
share |
$ — |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
Calculation of the impact of debt amendment costs, net of tax |
|
|
|
|
|
|
Debt amendment costs |
$ — |
|
|
$ |
3,242 |
|
|
Tax benefit from debt amendment costs |
— |
|
|
— |
|
|
Debt amendment costs, net of tax |
— |
|
|
3,242 |
|
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Debt amendment costs, net of tax, per diluted share |
$ — |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Calculation of the impact of unrealized gain on warrant liability,
net of tax |
|
|
|
|
|
|
Unrealized gain on warrant liability |
$ — |
|
|
$ |
(693 |
) |
|
Tax benefit from unrealized gain on warrant liability |
— |
|
|
— |
|
|
Unrealized gain on warrant liability, net of tax |
— |
|
|
(693 |
) |
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Unrealized gain on warrant liability, net of tax, per diluted
share |
$ — |
|
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
Certain income tax related items resulting from: |
|
|
|
|
|
|
Foreign income tax reserves / other |
$ |
351 |
|
|
$ |
376 |
|
|
Certain income tax related items |
351 |
|
|
376 |
|
|
Diluted share count |
28,181 |
|
|
18,442 |
|
|
|
|
|
|
|
|
|
Certain income tax related items per diluted share |
$ |
0.01 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
$ |
(2,237 |
) |
|
$ |
(3,058 |
) |
|
Less: additions to premises and equipment |
— |
|
|
— |
|
|
|
|
|
|
|
|
|
Net cash used in operating activities less additions to premises
and equipment |
$ |
(2,237 |
) |
|
$ |
(3,058 |
) |
| |
|
|
|
|
|
|
|
| |
| |
Three months
ended |
| |
March 31, 2024 |
|
March 31, 2023 |
|
December 31, 2023 |
| |
|
|
|
|
|
|
Net loss attributable to Altisource |
$ |
(9,198 |
) |
|
$ |
(12,947 |
) |
|
$ |
(13,151 |
) |
|
|
|
|
|
|
|
|
Income tax provision |
|
722 |
|
|
|
1,529 |
|
|
|
1,128 |
|
|
Interest expense (net of interest income) |
|
9,306 |
|
|
|
6,326 |
|
|
|
9,246 |
|
|
Depreciation and amortization |
|
296 |
|
|
|
699 |
|
|
|
459 |
|
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
1,270 |
|
|
Share-based compensation expense |
|
2,213 |
|
|
|
1,445 |
|
|
|
1,151 |
|
|
Cost of cost savings initiatives and other |
|
23 |
|
|
|
591 |
|
|
|
127 |
|
|
Debt amendment costs |
|
— |
|
|
|
3,242 |
|
|
|
7 |
|
|
Unrealized gain on warrant liability |
|
— |
|
|
|
(694 |
) |
|
|
— |
|
| |
|
|
|
|
|
| Adjusted
EBITDA |
$ |
4,632 |
|
|
$ |
1,472 |
|
|
$ |
237 |
|
| |
|
|
|
|
|
| Business
Segments: |
|
|
|
|
|
| Income
before income taxes and non-controlling interests |
$ |
9,147 |
|
|
$ |
8,255 |
|
|
$ |
6,626 |
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
(41 |
) |
|
|
(80 |
) |
|
|
(73 |
) |
|
Depreciation and amortization |
|
97 |
|
|
|
226 |
|
|
|
110 |
|
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
1,270 |
|
|
Share-based compensation expense |
|
396 |
|
|
|
316 |
|
|
|
277 |
|
|
Cost of cost savings initiatives and other |
|
19 |
|
|
|
397 |
|
|
|
31 |
|
| |
|
|
|
|
|
| Business
Segments Adjusted EBITDA |
$ |
10,888 |
|
|
$ |
10,394 |
|
|
$ |
8,241 |
|
| |
March 31, 2024 |
| |
|
|
Senior Secured Term Loans |
$ |
226,187 |
|
|
Less: Cash and cash equivalents |
|
(29,599 |
) |
| |
|
| Net
debt |
$ |
196,588 |
|
| |
|
|
|
________________________
Note: Amounts may not add to the total due to
rounding.
Altisource Portfolio Sol... (NASDAQ:ASPS)
過去 株価チャート
から 11 2024 まで 12 2024
Altisource Portfolio Sol... (NASDAQ:ASPS)
過去 株価チャート
から 12 2023 まで 12 2024
