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QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Schedule of unaudited quarterly results
The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality.
 
 
2018 quarter ended (1)(2)(3)(4)(5)(6)(7)
(in thousands, except per share data)
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
 
 
 
 
 
 
 
 
Revenue
 
$
197,438

 
$
218,556

 
$
204,575

 
$
217,633

Gross profit
 
50,244

 
55,350

 
56,995

 
53,448

(Loss) income before income taxes and non-controlling interests
 
(4,972
)
 
3,071

 
16,129

 
(12,829
)
Net (loss) income
 
(3,607
)
 
2,255

 
9,521

 
(10,868
)
Net (loss) income attributable to Altisource
 
(4,132
)
 
1,568

 
8,667

 
(11,485
)
 
 
 
 
 
 
 
 
 
(Loss) earnings per share:
 
 
 
 
 
 
 
 
Basic
 
$
(0.24
)
 
$
0.09

 
$
0.51

 
$
(0.69
)
Diluted
 
$
(0.24
)
 
$
0.09

 
$
0.49

 
$
(0.69
)
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
17,378

 
17,142

 
17,033

 
16,745

Diluted
 
17,378

 
17,553

 
17,575

 
16,745

 
 
2017 quarter ended (1)(8)
(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

______________________________________
(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) 
Effective January 1, 2018, the Company adopted Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. Previously, changes in the fair value of the Company’s available for sale securities were included in comprehensive income. During the three months ended March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018, we recognized unrealized (losses) gains from our investment in RESI common shares of $(7.5) million, $1.5 million, $1.8 million and $(8.8) million, respectively. See Note 6.
(3) 
In April 2018, Altisource entered into the Credit Agreement, pursuant to which, among other things, Altisource borrowed $412.0 million in the form of Term B Loans. Proceeds from the Term B Loans were used to repay the Company’s prior senior secured term loan. In connection with the refinancing, we recognized a loss of $4.4 million from the write-off of the unamortized debt issuance costs and debt discount in the second quarter of 2018. See Note 14.
(4) 
In August 2018, we sold our rental property management business to RESI for total transaction proceeds of $18.0 million, $15.0 million of which was received on the closing date of August 8, 2018 and $3.0 million of which will be received on the earlier of a RESI change of control or August 8, 2023. We recognized a $13.7 million pretax gain on the sale of this business during the third quarter of 2018. See Note 4.
(5) 
In August 2018, we initiated Project Catalyst, a restructuring plan intended to optimize our operations and reduce costs to align our cost structure with our anticipated revenues and improve our operating margins. During the three months ended September 30, 2018 and December 31, 2018, we incurred $3.4 million and $8.1 million, respectively, of severance costs, facility shut-down costs and professional services fees related to the restructuring plan. See Note 24.
(6) 
In connection with a United States Supreme Court decision in June 2018, the Company is analyzing its services for potential exposure to sales tax in various jurisdictions in the United States and believes that the Company has a related estimated probable loss of $6.2 million. The Company recognized $5.9 million and $0.4 million during the three months ended September 30, 2018 and December 31, 2018, respectively. See Note 25.
(7) 
In November 2018, the Company announced its plans to sell its BRS Inventory and discontinue the Company’s BRS business. The Company recorded a write-off of goodwill related to its plan to discontinue the BRS business of $2.6 million during the three months ended December 31, 2018. See Notes 9 and 11.
(8) 
During the three months ended December, 31, 2017, the Company recognized net tax benefits of $284.1 million. 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. 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. This deferred tax benefit was partially offset by $6.3 million of income tax from changes in U.S. and Luxembourg income tax rates and a $10.5 million increase in certain foreign income tax reserves (and related interest). See Note 22.