QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables contain selected unaudited statement of operations information for each quarter of 2017 and 2016. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality.



	2017 quarter ended ⁽¹⁾⁽²⁾
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	240,483	$	250,685	$	234,979	$	216,066
Gross profit	62,530		65,292		60,081		54,445
Income before income taxes and non-controlling interests	9,746		12,160		10,357		3,112
Net income	7,160		9,722		7,766		286,983
Net income attributable to Altisource	6,545		9,035		6,961		286,350

Earnings per share:
Basic	$	0.35	$	0.49	$	0.39	$	16.16
Diluted	$	0.34	$	0.48	$	0.38	$	15.72

Weighted average shares outstanding:
Basic	18,662		18,335		18,023		17,724
Diluted	19,304		18,836		18,429		18,211



	2016 quarter ended ^(1)(3)(4)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	250,132	$	255,799	$	252,745	$	238,627
Gross profit	81,269		81,428		78,743		65,818
Income (loss) before income taxes and non-controlling interests	21,085		23,977		18,796		(19,537		)
Net income (loss)	18,892		20,686		11,472		(19,664		)
Net income (loss) attributable to Altisource	18,494		19,994		10,589		(20,384		)

Earnings (loss) per share:
Basic	$	0.98	$	1.08	$	0.57	$	(1.08	)
Diluted	$	0.92	$	1.02	$	0.54	$	(1.08	)

Weighted average shares outstanding:
Basic	18,855		18,437		18,715		18,788
Diluted	20,040		19,604		19,568		18,788

______________________________________


⁽¹⁾	The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted average shares outstanding for each period.

⁽²⁾

On December 27, 2017, two of the Company’s wholly-owned subsidiaries, Altisource Solutions S.à r.l. and Altisource Holdings S.à r.l., merged, with Altisource Holdings S.à r.l. as the surviving entity. Altisource Holdings S.à r.l. was subsequently renamed Altisource S.à r.l. The merger is part of a larger subsidiary restructuring plan designed to simplify the Company’s corporate structure, allow it to operate more efficiently and reduce administrative costs. For Luxembourg tax purposes, the merger was recognized at fair value and generated an NOL of $1.3 billion and a deferred tax asset, net of valuation allowance, of $300.9 million as of December 31, 2017. The NOL has a 17 year life. This deferred tax asset was partially offset by the impact of other changes in U.S. and Luxembourg income tax rates of $6.3 million and an increase in certain foreign income tax reserves (and related interest) of $10.5 million. See Note 21.


⁽³⁾	We acquired Granite on July 29, 2016. See Note 5.


⁽⁴⁾	During the fourth quarter of 2016, Altisource recorded a litigation settlement loss of $32.0 million in connection with a litigation matter. Also during the fourth quarter of 2016, Altisource recorded an insurance recovery related to this litigation settlement of $4.0 million. See Note 19.