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 second quarter 2024.
“We had a strong second quarter and believe we
are on track to achieve our 2024 guidance of 13% to 32% service
revenue growth over 2023 and Adjusted EBITDA(1) of between $17.5
million and $22.5 million in 2024, a $21 million improvement in
Adjusted EBITDA(1) over 2023 if the midpoint is achieved. For the
quarter, we generated $36.9 million of Service revenue and $4.4
million of Adjusted EBITDA(1) and modestly increased cash and cash
equivalents to $29.7 million. Our financial results reflect our
strong sales wins, price increases, referral volume growth and
lower cost base in what continues to be an incredibly difficult
environment of close to historically low mortgage delinquency rates
and low origination volume,” said Chairman and Chief Executive
Officer William B. Shepro.
Mr. Shepro further commented, “We continue to
win meaningful new business and are making good progress ramping
sales wins on a much lower cost base. As we ramp new business, we
are cautiously optimistic that we will exit the year at a $30
million plus Adjusted EBITDA(1) run-rate.”
Second Quarter 2024
Highlights(2)
Company, Corporate and Financial:
- Second quarter Service revenue of $36.9 million was $3.7
million, or 11%, higher than the same quarter of 2023
- Second quarter Adjusted earnings before interest, tax,
depreciation and amortization (“Adjusted EBITDA”)(1) of
$4.4 million was $7.9 million better than the same quarter of
2023
- Second quarter Adjusted EBITDA(1) margin of 11.9% was
considerably stronger than the (10.5)% Adjusted EBITDA(1) margin in
the same quarter of 2023
- Second quarter gross profit margin of 34.0% was considerably
stronger than the 16.7% gross profit margin in the same quarter of
2023
- Ended the quarter with $29.7 million of cash and cash
equivalents, $15.0 million available under a revolving credit
facility and $198.7 million of net debt(1)
Business and Industry:
- Generated sales wins which we estimate represent potential
annualized revenue on a stabilized basis of $15.3 million for the
Servicer and Real Estate segment and $1.5 million for the
Origination segment
- Ended the quarter with a weighted average sales pipeline
between $31 million and $39 million of estimated potential revenue
on a stabilized basis based upon forecasted probability of closing
(comprising of between $18 million and $23 million in the Servicer
and Real Estate segment and between $13 million and $16 million in
the Origination segment)
- Improved Adjusted EBITDA(1) in the Servicer and Real Estate and
Origination segments (together “Business Segments”) to $11.6
million, or 31.3% of Service revenue, from $6.0 million, or 18.2%
of Service revenue, in the same quarter of 2023
- Industrywide foreclosure initiations were 9% lower for the six
months ended June 30, 2024 compared to the same period in 2023 (and
37% lower than the same pre-COVID-19 periods in 2019)(3)
- Industrywide foreclosure sales were 14% lower for the six
months ended June 30, 2024 compared to the same period in 2023 (and
53% lower than the same pre-COVID-19 periods in 2019)(3)
- Industrywide mortgage origination volume decreased by 13% for
the second quarter 2024 compared to the second quarter 2023(4)
- Industrywide seriously delinquent mortgage rate (90+ day past
due and loans in foreclosure) declined to 1.1% in June 2024
compared to 1.3% in December 2023(3)
Second Quarter 2024
Financial Results
- Service revenue of $36.9 million
- Loss before income taxes and non-controlling interests of
$(7.6) million
- Net loss attributable to Altisource of $(8.3) million
- Adjusted EBITDA(1) of $4.4 million
Second Quarter 2024
Results Compared to the Second Quarter 2023
(unaudited):
| (in thousands, except per
share data) |
Second Quarter 2024 |
|
Second Quarter 2023 |
|
% Change |
|
Year-to-DateJune 30, 2024 |
|
Year-to-Date June 30, 2023 |
|
% Change |
|
Service revenue |
$ |
36,863 |
|
|
$ |
33,173 |
|
|
11 |
|
$ |
73,754 |
|
|
$ |
70,244 |
|
|
5 |
| Revenue |
|
39,121 |
|
|
|
35,235 |
|
|
11 |
|
|
78,590 |
|
|
|
74,696 |
|
|
5 |
| Gross profit |
|
12,717 |
|
|
|
5,532 |
|
|
130 |
|
|
25,021 |
|
|
|
14,036 |
|
|
78 |
| Income (loss) from
operations |
|
2,083 |
|
|
|
(6,809 |
) |
|
131 |
|
|
1,535 |
|
|
|
(10,399 |
) |
|
115 |
| Adjusted operating income
(loss)(1) |
|
4,210 |
|
|
|
(2,333 |
) |
|
280 |
|
|
7,168 |
|
|
|
(59 |
) |
|
N/M |
| Loss before income taxes and
non-controlling interests |
|
(7,566 |
) |
|
|
(18,198 |
) |
|
58 |
|
|
(16,001 |
) |
|
|
(29,536 |
) |
|
46 |
| Pretax loss attributable to
Altisource(1) |
|
(7,601 |
) |
|
|
(18,211 |
) |
|
58 |
|
|
(16,077 |
) |
|
|
(29,629 |
) |
|
46 |
| Adjusted pretax loss
attributable to Altisource(1) |
|
(5,474 |
) |
|
|
(13,735 |
) |
|
60 |
|
|
(10,444 |
) |
|
|
(19,289 |
) |
|
46 |
| Adjusted EBITDA(1) |
|
4,384 |
|
|
|
(3,491 |
) |
|
226 |
|
|
9,016 |
|
|
|
(2,020 |
) |
|
N/M |
| Net loss attributable to
Altisource |
|
(8,307 |
) |
|
|
(18,850 |
) |
|
56 |
|
|
(17,505 |
) |
|
|
(31,797 |
) |
|
45 |
| Adjusted net loss attributable
to Altisource(1) |
|
(5,957 |
) |
|
|
(14,140 |
) |
|
58 |
|
|
(11,555 |
) |
|
|
(21,228 |
) |
|
46 |
| Diluted loss per share |
|
(0.29 |
) |
|
|
(0.90 |
) |
|
68 |
|
|
(0.62 |
) |
|
|
(1.62 |
) |
|
62 |
| Adjusted diluted loss per
share(1) |
|
(0.21 |
) |
|
|
(0.68 |
) |
|
69 |
|
|
(0.41 |
) |
|
|
(1.08 |
) |
|
62 |
| Net cash provided by (used in)
operating activities |
|
180 |
|
|
|
(7,882 |
) |
|
102 |
|
|
(2,057 |
) |
|
|
(10,940 |
) |
|
81 |
| Net cash provided by (used in)
operating activities less additions to premises and
equipment(1) |
|
180 |
|
|
|
(7,882 |
) |
|
102 |
|
|
(2,057 |
) |
|
|
(10,940 |
) |
|
81 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Margins: |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit / service revenue |
|
34 |
% |
|
|
17 |
% |
|
|
|
|
34 |
% |
|
|
20 |
% |
|
|
|
Adjusted EBITDA(1) / service revenue |
|
12 |
% |
|
|
(11) |
% |
|
|
|
|
12 |
% |
|
|
(3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
N/M — not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Second quarter and year-to-date 2023 loss before income taxes
and non-controlling interests includes $0.1 million and
$3.3 million. respectively, of debt amendment costs (no
comparative amount for the second quarter and year-to-date
2024). Second quarter and year-to-date 2023 loss before
income taxes and non-controlling interests includes
$1.8 million and $1.1 million, respectively, of other
income related to the change in fair value of warrant liability (no
comparative amount for the second quarter and year-to-date
2024).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is a non-GAAP measure that is defined and reconciled to
the corresponding GAAP measure herein |
|
(2) Applies to the second quarter 2024 unless otherwise
indicated |
|
(3) Based on data from ICE’s Mortgage Monitor and First Look
reports with data through June 2024 |
|
(4) Based on estimated number of loans originated as reported by
the Mortgage Bankers Association’s Mortgage Finance Forecast dated
July 19, 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 second 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
OfficerT: (770) 612-7007E:
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 June 30, |
|
Six months ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
| Service revenue |
$ |
36,863 |
|
|
$ |
33,173 |
|
|
$ |
73,754 |
|
|
$ |
70,244 |
|
| Reimbursable expenses |
|
2,223 |
|
|
|
2,049 |
|
|
|
4,760 |
|
|
|
4,359 |
|
| Non-controlling interests |
|
35 |
|
|
|
13 |
|
|
|
76 |
|
|
|
93 |
|
| Total revenue |
|
39,121 |
|
|
|
35,235 |
|
|
|
78,590 |
|
|
|
74,696 |
|
| Cost of revenue |
|
26,404 |
|
|
|
29,703 |
|
|
|
53,569 |
|
|
|
60,660 |
|
| Gross profit |
|
12,717 |
|
|
|
5,532 |
|
|
|
25,021 |
|
|
|
14,036 |
|
| Selling, general and
administrative expenses |
|
10,634 |
|
|
|
12,341 |
|
|
|
23,486 |
|
|
|
24,435 |
|
| |
|
|
|
|
|
|
|
| Income (loss) from
operations |
|
2,083 |
|
|
|
(6,809 |
) |
|
|
1,535 |
|
|
|
(10,399 |
) |
| Other income (expense),
net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(9,788 |
) |
|
|
(9,904 |
) |
|
|
(19,317 |
) |
|
|
(16,664 |
) |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(1,774 |
) |
|
|
— |
|
|
|
(1,080 |
) |
|
Debt amendment costs |
|
— |
|
|
|
(101 |
) |
|
|
— |
|
|
|
(3,343 |
) |
|
Other income (expense), net |
|
139 |
|
|
|
390 |
|
|
|
1,781 |
|
|
|
1,950 |
|
|
Total other income (expense), net |
|
(9,649 |
) |
|
|
(11,389 |
) |
|
|
(17,536 |
) |
|
|
(19,137 |
) |
| |
|
|
|
|
|
|
|
| Loss before income taxes and
non-controlling interests |
|
(7,566 |
) |
|
|
(18,198 |
) |
|
|
(16,001 |
) |
|
|
(29,536 |
) |
| Income tax provision |
|
(706 |
) |
|
|
(639 |
) |
|
|
(1,428 |
) |
|
|
(2,168 |
) |
| |
|
|
|
|
|
|
|
| Net loss |
|
(8,272 |
) |
|
|
(18,837 |
) |
|
|
(17,429 |
) |
|
|
(31,704 |
) |
| Net income attributable to
non-controlling interests |
|
(35 |
) |
|
|
(13 |
) |
|
|
(76 |
) |
|
|
(93 |
) |
| |
|
|
|
|
|
|
|
| Net loss attributable to
Altisource |
$ |
(8,307 |
) |
|
$ |
(18,850 |
) |
|
$ |
(17,505 |
) |
|
$ |
(31,797 |
) |
| |
|
|
|
|
|
|
|
| Loss per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.29 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.62 |
) |
|
Diluted |
$ |
(0.29 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.62 |
) |
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
|
Diluted |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Comprehensive loss: |
|
|
|
|
|
|
|
|
Comprehensive loss, net of tax |
$ |
(8,272 |
) |
|
$ |
(18,837 |
) |
|
$ |
(17,429 |
) |
|
$ |
(31,704 |
) |
|
Comprehensive income attributable to non-controlling interests |
|
(35 |
) |
|
|
(13 |
) |
|
|
(76 |
) |
|
|
(93 |
) |
| |
|
|
|
|
|
|
|
| Comprehensive loss
attributable to Altisource |
$ |
(8,307 |
) |
|
$ |
(18,850 |
) |
|
$ |
(17,505 |
) |
|
$ |
(31,797 |
) |
| |
|
ALTISOURCE PORTFOLIO SOLUTIONS
S.A.CONSOLIDATED BALANCE
SHEETS(in thousands, except for per share
data)(unaudited) |
| |
| |
June 30, 2024 |
|
December 31, 2023 |
| |
|
|
|
|
ASSETS |
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
29,702 |
|
|
$ |
32,522 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$3,421 and $3,123, respectively |
|
13,190 |
|
|
|
11,682 |
|
|
Prepaid expenses and other current assets |
|
8,309 |
|
|
|
11,336 |
|
|
Total current assets |
|
51,201 |
|
|
|
55,540 |
|
| |
|
|
|
| Premises and equipment,
net |
|
1,124 |
|
|
|
1,709 |
|
| Right-of-use assets under
operating leases |
|
2,612 |
|
|
|
3,379 |
|
| Goodwill |
|
55,960 |
|
|
|
55,960 |
|
| Intangible assets, net |
|
24,008 |
|
|
|
26,548 |
|
| Deferred tax assets, net |
|
4,983 |
|
|
|
4,992 |
|
| Other assets |
|
6,669 |
|
|
|
6,730 |
|
| |
|
|
|
| Total assets |
$ |
146,557 |
|
|
$ |
154,858 |
|
| |
|
|
|
|
LIABILITIES AND DEFICIT |
| Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
30,044 |
|
|
$ |
30,088 |
|
|
Current portion of long-term debt |
|
223,009 |
|
|
|
— |
|
|
Deferred revenue |
|
3,634 |
|
|
|
3,195 |
|
|
Other current liabilities |
|
2,245 |
|
|
|
2,477 |
|
|
Total current liabilities |
|
258,932 |
|
|
|
35,760 |
|
| |
|
|
|
| Long-term debt |
|
— |
|
|
|
215,615 |
|
| Deferred tax liabilities,
net |
|
9,047 |
|
|
|
9,028 |
|
| Other non-current
liabilities |
|
18,778 |
|
|
|
19,510 |
|
| |
|
|
|
| Commitments, contingencies and
regulatory matters |
|
|
|
| |
|
|
|
| Deficit: |
|
|
|
|
Common stock ($1.00 par value; 100,000 shares authorized, 29,963
issued and 27,110 outstanding as of June 30, 2024; 29,963
issued and 26,496 outstanding as of December 31, 2023) |
|
29,963 |
|
|
|
29,963 |
|
|
Additional paid-in capital |
|
179,937 |
|
|
|
177,278 |
|
|
Accumulated deficit |
|
(234,351 |
) |
|
|
(180,162 |
) |
|
Treasury stock, at cost (2,853 shares as of June 30, 2024 and
3,467 shares as of December 31, 2023) |
|
(116,389 |
) |
|
|
(152,749 |
) |
|
Altisource deficit |
|
(140,840 |
) |
|
|
(125,670 |
) |
| |
|
|
|
|
Non-controlling interests |
|
640 |
|
|
|
615 |
|
|
Total deficit |
|
(140,200 |
) |
|
|
(125,055 |
) |
| |
|
|
|
| Total liabilities and
deficit |
$ |
146,557 |
|
|
$ |
154,858 |
|
| |
|
ALTISOURCE PORTFOLIO SOLUTIONS
S.A.CONSOLIDATED STATEMENTS OF CASH
FLOWS(in
thousands)(unaudited) |
| |
| |
Six months ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
|
| Cash flows from operating
activities: |
|
|
|
| Net loss |
$ |
(17,429 |
) |
|
$ |
(31,704 |
) |
| Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
572 |
|
|
|
1,353 |
|
|
Amortization of right-of-use assets under operating leases |
|
811 |
|
|
|
930 |
|
|
Amortization of intangible assets |
|
2,540 |
|
|
|
2,560 |
|
|
PIK accrual |
|
4,269 |
|
|
|
2,556 |
|
|
Share-based compensation expense |
|
3,057 |
|
|
|
2,687 |
|
|
Bad debt expense |
|
550 |
|
|
|
522 |
|
|
Amortization of debt discount |
|
1,901 |
|
|
|
1,828 |
|
|
Amortization of debt issuance costs |
|
1,224 |
|
|
|
1,249 |
|
|
Deferred income taxes |
|
18 |
|
|
|
(203 |
) |
|
Loss on disposal of fixed assets |
|
13 |
|
|
|
27 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
1,080 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(2,058 |
) |
|
|
(1,214 |
) |
|
Prepaid expenses and other current assets |
|
3,027 |
|
|
|
12,504 |
|
|
Other assets |
|
61 |
|
|
|
(2,045 |
) |
|
Accounts payable and accrued expenses |
|
(44 |
) |
|
|
(1,187 |
) |
|
Current and non-current operating lease liabilities |
|
(838 |
) |
|
|
(960 |
) |
|
Other current and non-current liabilities |
|
269 |
|
|
|
(923 |
) |
| Net cash used in operating
activities |
|
(2,057 |
) |
|
|
(10,940 |
) |
| |
|
|
|
| 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 |
|
— |
|
|
|
(4,886 |
) |
|
Repayments of long-term debt |
|
— |
|
|
|
(20,000 |
) |
|
Distributions to non-controlling interests |
|
(51 |
) |
|
|
(202 |
) |
|
Payments of tax withholding on issuance of restricted share units
and restricted shares |
|
(632 |
) |
|
|
(463 |
) |
| Net cash used in financing
activities |
|
(773 |
) |
|
|
(5,090 |
) |
| |
|
|
|
| Net decrease in cash, cash
equivalents and restricted cash |
|
(2,830 |
) |
|
|
(16,030 |
) |
| 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 |
$ |
32,586 |
|
|
$ |
38,243 |
|
| |
|
|
|
| Supplemental cash flow
information: |
|
|
|
|
Interest paid |
$ |
11,870 |
|
|
$ |
11,022 |
|
|
Income taxes paid (refunded), net |
|
1,121 |
|
|
|
(4,509 |
) |
|
Acquisition of right-of-use assets with operating lease
liabilities |
|
44 |
|
|
|
298 |
|
| |
|
|
|
| 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 (loss), 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 income (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 (loss) is calculated
by removing intangible asset amortization expense, share-based
compensation expense, cost of cost savings initiatives and other,
debt amendment costs and unrealized loss on warrant liability from
income (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 loss 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 loss 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 loss 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 loss 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 June 30, |
|
Six months ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
| Income (loss) from
operations |
$ |
2,083 |
|
|
$ |
(6,809 |
) |
|
$ |
1,535 |
|
|
$ |
(10,399 |
) |
| |
|
|
|
|
|
|
|
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
2,540 |
|
|
|
2,560 |
|
|
Share-based compensation expense |
|
844 |
|
|
|
1,242 |
|
|
|
3,057 |
|
|
|
2,687 |
|
|
Cost of cost savings initiatives and other |
|
13 |
|
|
|
79 |
|
|
|
36 |
|
|
|
670 |
|
|
Debt amendment costs |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,343 |
|
|
Unrealized loss on warrant liability |
|
— |
|
|
|
1,774 |
|
|
|
— |
|
|
|
1,080 |
|
| |
|
|
|
|
|
|
|
| Adjusted operating income
(loss) |
$ |
4,210 |
|
|
$ |
(2,333 |
) |
|
$ |
7,168 |
|
|
$ |
(59 |
) |
| |
|
|
|
|
|
|
|
| Loss before income taxes and
non-controlling interests |
$ |
(7,566 |
) |
|
$ |
(18,198 |
) |
|
$ |
(16,001 |
) |
|
$ |
(29,536 |
) |
| |
|
|
|
|
|
|
|
|
Non-controlling interests |
|
(35 |
) |
|
|
(13 |
) |
|
|
(76 |
) |
|
|
(93 |
) |
|
Pretax loss attributable to Altisource |
|
(7,601 |
) |
|
|
(18,211 |
) |
|
|
(16,077 |
) |
|
|
(29,629 |
) |
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
2,540 |
|
|
|
2,560 |
|
|
Share-based compensation expense |
|
844 |
|
|
|
1,242 |
|
|
|
3,057 |
|
|
|
2,687 |
|
|
Cost of cost savings initiatives and other |
|
13 |
|
|
|
79 |
|
|
|
36 |
|
|
|
670 |
|
|
Debt amendment costs |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,343 |
|
|
Unrealized loss on warrant liability |
|
— |
|
|
|
1,774 |
|
|
|
— |
|
|
|
1,080 |
|
| |
|
|
|
|
|
|
|
| Adjusted pretax loss
attributable to Altisource |
$ |
(5,474 |
) |
|
$ |
(13,735 |
) |
|
$ |
(10,444 |
) |
|
$ |
(19,289 |
) |
| |
|
|
|
|
|
|
|
| Net loss attributable to
Altisource |
$ |
(8,307 |
) |
|
$ |
(18,850 |
) |
|
$ |
(17,505 |
) |
|
$ |
(31,797 |
) |
| |
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax |
|
1,270 |
|
|
|
1,278 |
|
|
|
2,540 |
|
|
|
2,555 |
|
|
Share-based compensation expense, net of tax |
|
715 |
|
|
|
1,109 |
|
|
|
2,677 |
|
|
|
2,276 |
|
|
Cost of cost savings initiatives and other, net of tax |
|
11 |
|
|
|
65 |
|
|
|
28 |
|
|
|
556 |
|
|
Debt amendment costs, net of tax |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,343 |
|
|
Unrealized loss on warrant liability, net of tax |
|
— |
|
|
|
1,774 |
|
|
|
— |
|
|
|
1,080 |
|
|
Certain income tax related items |
|
354 |
|
|
|
383 |
|
|
|
705 |
|
|
|
759 |
|
| |
|
|
|
|
|
|
|
| Adjusted net loss attributable
to Altisource |
$ |
(5,957 |
) |
|
$ |
(14,140 |
) |
|
$ |
(11,555 |
) |
|
$ |
(21,228 |
) |
| |
|
|
|
|
|
|
|
| Diluted loss per share |
$ |
(0.29 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.62 |
) |
| |
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax, per diluted
share |
|
0.04 |
|
|
|
0.06 |
|
|
|
0.09 |
|
|
|
0.13 |
|
|
Share-based compensation expense, net of tax, per diluted
share |
|
0.03 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.12 |
|
|
Cost of cost savings initiatives and other, net of tax, per diluted
share |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
Debt amendment costs, net of tax, per diluted share |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.17 |
|
|
Unrealized loss on warrant liability, net of tax, per diluted
share |
|
— |
|
|
|
0.09 |
|
|
|
— |
|
|
|
0.05 |
|
|
Certain income tax related items per diluted share |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
| Adjusted diluted loss per
share |
$ |
(0.21 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.41 |
) |
|
$ |
(1.08 |
) |
| |
|
|
|
|
|
|
|
| Calculation of the impact of
intangible asset amortization expense, net of tax |
|
|
|
|
|
|
|
|
Intangible asset amortization expense |
$ |
1,270 |
|
|
$ |
1,280 |
|
|
$ |
2,540 |
|
|
$ |
2,560 |
|
|
Tax benefit from intangible asset amortization |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(5 |
) |
|
Intangible asset amortization expense, net of tax |
|
1,270 |
|
|
|
1,278 |
|
|
|
2,540 |
|
|
|
2,555 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Intangible asset amortization
expense, net of tax, per diluted share |
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.09 |
|
|
$ |
0.13 |
|
| |
|
|
|
|
|
|
|
| Calculation of the impact of
share-based compensation expense, net of tax |
|
|
|
|
|
|
|
|
Share-based compensation expense |
$ |
844 |
|
|
$ |
1,242 |
|
|
$ |
3,057 |
|
|
$ |
2,687 |
|
|
Tax benefit from share-based compensation expense |
|
(129 |
) |
|
|
(133 |
) |
|
|
(380 |
) |
|
|
(411 |
) |
|
Share-based compensation expense, net of tax |
|
715 |
|
|
|
1,109 |
|
|
|
2,677 |
|
|
|
2,276 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Share-based compensation
expense, net of tax, per diluted share |
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
0.12 |
|
| |
|
|
|
|
|
|
|
| Calculation of the impact of
cost of cost savings initiatives and other, net of tax |
|
|
|
|
|
|
|
|
Cost of cost savings initiatives and other |
$ |
13 |
|
|
$ |
79 |
|
|
$ |
36 |
|
|
$ |
670 |
|
|
Tax benefit from cost of cost savings initiatives and other |
|
(2 |
) |
|
|
(14 |
) |
|
|
(8 |
) |
|
|
(114 |
) |
|
Cost of cost savings initiatives and other, net of tax |
|
11 |
|
|
|
65 |
|
|
|
28 |
|
|
|
556 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Cost of cost savings
initiatives and other, net of tax, per diluted share |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.03 |
|
| |
|
|
|
|
|
|
|
| Calculation of the impact of
debt amendment costs, net of tax |
|
|
|
|
|
|
|
|
Debt amendment costs |
$ |
— |
|
|
$ |
101 |
|
|
$ |
— |
|
|
$ |
3,343 |
|
|
Tax benefit from debt amendment costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Debt amendment costs, net of tax |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,343 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Debt amendment costs, net of
tax, per diluted share |
$ |
— |
|
|
$ |
0.00 |
|
|
$ |
— |
|
|
$ |
0.17 |
|
| |
|
|
|
|
|
|
|
| Calculation of the impact of
unrealized loss on warrant liability, net of tax |
|
|
|
|
|
|
|
|
Unrealized loss on warrant liability |
$ |
— |
|
|
$ |
1,774 |
|
|
$ |
— |
|
|
$ |
1,080 |
|
|
Tax benefit from unrealized gain on warrant liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Unrealized loss on warrant liability, net of tax |
|
— |
|
|
|
1,774 |
|
|
|
— |
|
|
|
1,080 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Unrealized loss on warrant
liability, net of tax, per diluted share |
$ |
— |
|
|
$ |
0.09 |
|
|
$ |
— |
|
|
$ |
0.05 |
|
| |
|
|
|
|
|
|
|
| Certain income tax related
items resulting from: |
|
|
|
|
|
|
|
|
Foreign income tax reserves / other |
$ |
354 |
|
|
$ |
383 |
|
|
$ |
705 |
|
|
$ |
759 |
|
|
Certain income tax related items |
|
354 |
|
|
|
383 |
|
|
|
705 |
|
|
|
759 |
|
|
Diluted share count |
|
28,551 |
|
|
|
20,840 |
|
|
|
28,366 |
|
|
|
19,648 |
|
| |
|
|
|
|
|
|
|
| Certain income tax related
items per diluted share |
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.04 |
|
| |
|
|
|
|
|
|
|
| Net cash provided by (used in)
operating activities |
$ |
180 |
|
|
$ |
(7,882 |
) |
|
$ |
(2,057 |
) |
|
$ |
(10,940 |
) |
|
Less: additions to premises and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
| Net cash provided by (used in)
operating activities less additions to premises and equipment |
$ |
180 |
|
|
$ |
(7,882 |
) |
|
$ |
(2,057 |
) |
|
$ |
(10,940 |
) |
| |
| |
Three months ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
December 31, 2023 |
| |
|
|
|
|
|
|
Net loss attributable to Altisource |
$ |
(8,307 |
) |
|
$ |
(18,850 |
) |
|
$ |
(13,151 |
) |
| |
|
|
|
|
|
|
Income tax provision |
|
706 |
|
|
|
639 |
|
|
|
1,128 |
|
|
Interest expense (net of interest income) |
|
9,582 |
|
|
|
9,589 |
|
|
|
9,246 |
|
|
Depreciation and amortization |
|
276 |
|
|
|
654 |
|
|
|
459 |
|
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
1,270 |
|
|
Share-based compensation expense |
|
844 |
|
|
|
1,242 |
|
|
|
1,151 |
|
|
Cost of cost savings initiatives and other |
|
13 |
|
|
|
79 |
|
|
|
127 |
|
|
Debt amendment costs |
|
— |
|
|
|
101 |
|
|
|
7 |
|
|
Unrealized loss on warrant liability |
|
— |
|
|
|
1,774 |
|
|
|
— |
|
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
4,384 |
|
|
$ |
(3,491 |
) |
|
$ |
237 |
|
| |
|
|
|
|
|
| Business Segments: |
|
|
|
|
|
| Income before income taxes and
non-controlling interests |
$ |
9,907 |
|
|
$ |
4,191 |
|
|
$ |
6,626 |
|
| |
|
|
|
|
|
|
Non-controlling interests |
|
(35 |
) |
|
|
(13 |
) |
|
|
(73 |
) |
|
Depreciation and amortization |
|
88 |
|
|
|
224 |
|
|
|
110 |
|
|
Intangible asset amortization expense |
|
1,270 |
|
|
|
1,280 |
|
|
|
1,270 |
|
|
Share-based compensation expense |
|
314 |
|
|
|
304 |
|
|
|
277 |
|
|
Cost of cost savings initiatives and other |
|
9 |
|
|
|
54 |
|
|
|
31 |
|
|
Interest expense (net of interest income) |
|
1 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
| Business Segments Adjusted
EBITDA |
$ |
11,554 |
|
|
$ |
6,040 |
|
|
$ |
8,241 |
|
| |
| |
June 30, 2024 |
| |
|
|
Senior Secured Term Loans |
$ |
228,354 |
|
|
Less: Cash and cash equivalents |
|
(29,702 |
) |
| |
|
| Net debt |
$ |
198,652 |
|
|
_______________________________ |
|
|
|
| Note: Amounts may not add to
the total due to rounding. |
|
|
|
| |
Altisource Portfolio Sol... (NASDAQ:ASPS)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Altisource Portfolio Sol... (NASDAQ:ASPS)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
