The operating results for any quarter are not necessarily indicative of results for any future period. Our business can be affected by seasonality.



	2019 quarter ended (1)(2)(3)(4)(5)(6)(7)
(in thousands, except per share data)	March 31,			June 30,			September 30,		December 31,

Revenue	$	169,935		$	196,535		$	141,493	$	140,688
Gross profit	45,831			43,894			30,587		35,083
(Loss) income before income taxes and non-controlling interests	(3,966		)	11,909			12,955		(8,459		)
Net (loss) income	(2,744		)	(4,604		)	7,576		(306,085		)
Net (loss) income attributable to Altisource	(3,184		)	(5,844		)	7,165		(306,106		)

(Loss) earnings per share:
Basic	$	(0.20	)	$	(0.36	)	$	0.45	$	(19.66	)
Diluted	$	(0.20	)	$	(0.36	)	$	0.44	$	(19.66	)

Weighted average shares outstanding:
Basic	16,292			16,214			15,897		15,568
Diluted	16,292			16,214			16,151		15,568



	2018 quarter ended (1)(2)(3)(4)(5)(6)(7)(8)
(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

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⁽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⁾

During the fourth quarter of 2019, we recognized net income tax provision of $318.3 million, which included an increase in the valuation allowance in connection with the Luxembourg net operating loss carryforward of $291.5 million, the impact of a decrease in the Luxembourg statutory income tax rate on deferred taxes of $1.7 million and foreign income tax reserves of $5.6 million. During the second quarter of 2019, we recognized $12.3 million as a result of the change in the Luxembourg statutory income tax rate on deferred taxes. In addition, during the third quarter of 2018, we recognized foreign income tax reserves of $1.6 million. See Note 22.

⁽³⁾

In July 2019, we sold the Financial Services business to TSI for $44.0 million consisting of an up-front payment of $40.0 million, subject to a working capital adjustment and transaction costs upon closing of the sale, and an additional $4.0 million payment on the one year anniversary of the sale closing. We recognized a $17.6 million pretax gain on sale in the third quarter of 2019 and a working capital true-up gain of an additional $0.3 million in the fourth quarter of 2019. 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 in the third quarter of 2018. See Note 4.

⁽⁴⁾

During the first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized unrealized (losses) gains from our investment in RESI common shares of $2.2 million, $11.8 million, $(2.3) million and $2.7 million, respectively. During the first quarter of 2018, second quarter of 2018, third quarter of 2018 and fourth quarter of 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 5.

⁽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 first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized $4.4 million, $1.9 million, $2.8 million and $5.0 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the restructuring plan. During the third quarter of 2018 and fourth quarter of 2018 we recognized $3.4 million and $8.1 million, respectively, of severance costs, professional services fees and facility consolidation costs related to the restructuring plan. See Note 24.

⁽⁶⁾

In connection with the wind down of Owners.com, we wrote off $5.2 million of goodwill and $0.7 million of intangible assets during the fourth quarter of 2019. In November 2018, we announced our plans to sell the BRS Inventory and discontinue the BRS business. During the second quarter of 2019, we recognized a loss on the sale of the BRS Inventory of $1.8 million. We recognized a write-off of goodwill related to our plan to discontinue the BRS business of $2.6 million during the fourth quarter of 2018. See Note 8.

⁽⁷⁾

In connection with a United States Supreme Court decision in June 2018, we analyzed our services for potential exposure to sales tax in various jurisdictions in the United States and recognized an estimated probable loss of $5.9 million and $0.4 million during the third quarter of 2018 and fourth quarter of 2018, respectively. In addition, we recognized and additional loss of $2.1 million during the first quarter of 2019 and recognized a net reimbursement from clients of $1.7 million in the third quarter of 2019. See Note 25.

⁽⁸⁾

In April 2018, we entered into the Credit Agreement, pursuant to which, among other things, we borrowed $412 million in the form of Term B Loans. Proceeds from the Term B Loans were used to repay our 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.