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SEGMENT REPORTING
6 Months Ended
Jun. 30, 2013
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 18 — SEGMENT REPORTING

 

Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer to evaluate operating performance and to assess the allocation of our resources.

 

We classify our businesses into three reportable segments. The Mortgage Services segment provides services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators and investors in single family homes. The Financial Services segment provides collection and customer relationship management services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and the utility and insurance industries. The Technology Services segment principally consists of our REALSuite software applications as well as our information technology infrastructure services. The REALSuite platform provides a fully integrated set of software applications and technologies that manage the end-to-end lifecycle for residential and commercial mortgage loan servicing including the automated management and payment of a distributed network of vendors. In addition, our Corporate Items and Eliminations segment includes eliminations of transactions between the reporting segments and costs related to corporate support functions including executive, finance, legal, human resources, vendor management, risk and six sigma.

 

Financial information for our segments is as follows:

 

 

 

Three months ended June 30, 2013

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Mortgage

 

Financial

 

Technology

 

Items and

 

Consolidated

 

(in thousands)

 

Services

 

Services

 

Services

 

Eliminations

 

Altisource

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 144,210

 

$

 23,072

 

$

 24,783

 

$

 (5,955

)

$

 186,110

 

Cost of revenue

 

89,078

 

13,807

 

19,407

 

(5,320

)

116,972

 

Gross profit

 

55,132

 

9,265

 

5,376

 

(635

)

69,138

 

Selling, general and administrative expenses

 

12,590

 

3,534

 

3,028

 

10,676

 

29,828

 

Income from operations

 

42,542

 

5,731

 

2,348

 

(11,311

)

39,310

 

Other income (expense), net

 

61

 

(5

)

(1

)

(4,880

)

(4,825

)

Income before income taxes and non-controlling interests

 

$

 42,603

 

$

 5,726

 

$

 2,347

 

$

 (16,191

)

$

 34,485

 

 

 

 

Three months ended June 30, 2012

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Mortgage

 

Financial

 

Technology

 

Items and

 

Consolidated

 

(in thousands)

 

Services

 

Services

 

Services

 

Eliminations

 

Altisource

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

115,903

 

$

16,239

 

$

17,886

 

$

(5,823

)

$

144,205

 

Cost of revenue

 

73,156

 

11,663

 

13,214

 

(5,295

)

92,738

 

Gross profit

 

42,747

 

4,576

 

4,672

 

(528

)

51,467

 

Selling, general and administrative expenses

 

5,612

 

3,604

 

1,819

 

7,983

 

19,018

 

Income from operations

 

37,135

 

972

 

2,853

 

(8,511

)

32,449

 

Other expense, net

 

(246

)

(2

)

(6

)

(67

)

(321

)

Income before income taxes and non-controlling interests

 

$

36,889

 

$

970

 

$

2,847

 

$

(8,578

)

$

32,128

 

 

 

 

Six months ended June 30, 2013

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Mortgage

 

Financial

 

Technology

 

Items and

 

Consolidated

 

(in thousands)

 

Services

 

Services

 

Services

 

Eliminations

 

Altisource

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

261,658

 

$

39,408

 

$

45,014

 

$

(11,143

)

$

334,937

 

Cost of revenue

 

161,447

 

25,833

 

36,519

 

(9,865

)

213,934

 

Gross profit

 

100,211

 

13,575

 

8,495

 

(1,278

)

121,003

 

Selling, general and administrative expenses

 

18,048

 

6,384

 

4,893

 

19,183

 

48,508

 

Income from operations

 

82,163

 

7,191

 

3,602

 

(20,461

)

72,495

 

Other income (expense), net

 

(112

)

(8

)

3

 

(7,215

)

(7,332

)

Income before income taxes and non-controlling interests

 

$

82,051

 

$

7,183

 

$

3,605

 

$

(27,676

)

$

65,163

 

 

 

 

Six months ended June 30, 2012

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Mortgage

 

Financial

 

Technology

 

Items and

 

Consolidated

 

(in thousands)

 

Services

 

Services

 

Services

 

Eliminations

 

Altisource

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

225,564

 

$

34,255

 

$

34,908

 

$

(11,456

)

$

283,271

 

Cost of revenue

 

146,195

 

23,996

 

24,680

 

(10,373

)

184,498

 

Gross profit

 

79,369

 

10,259

 

10,228

 

(1,083

)

98,773

 

Selling, general and administrative expenses

 

11,303

 

7,434

 

3,668

 

13,628

 

36,033

 

Income from operations

 

68,066

 

2,825

 

6,560

 

(14,711

)

62,740

 

Other expense, net

 

(567

)

(16

)

(17

)

(72

)

(672

)

Income before income taxes and non-controlling interests

 

$

67,499

 

$

2,809

 

$

6,543

 

$

(14,783

)

$

62,068

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Mortgage

 

Financial

 

Technology

 

Items and

 

Consolidated

 

(in thousands)

 

Services

 

Services

 

Services

 

Eliminations

 

Altisource

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

 

$

316,648

 

$

56,322

 

$

113,794

 

$

156,369

 

$

643,133

 

December 31, 2012

 

132,924

 

37,782

 

64,570

 

193,950

 

429,226