EX-99.1 2 pressreleaseforperiodended.htm EXHIBIT 99.1 Press Release for Period Ended June 30, 2014


 
NEWS
FOR
IMMEDIATE
RELEASE
Exhibit 99.1

CORELOGIC REPORTS SECOND QUARTER 2014 FINANCIAL RESULTS
Execution of Strategic Transformation Plan Drives Double-Digit Growth in Data & Analytics and Market Outperformance in Technology and Processing Solutions


Revenues of $349.4 million, up 0.4% despite an estimated 50% contraction in U.S. mortgage volumes
- Data & Analytics (D&A) up 14% fueled by growth in insurance, spatial solutions and international
- Technology and Processing Solutions (TPS) down 11% as share gains partially offset the impact of
lower mortgage originations and discretionary spending.

Operating income from continuing operations totaled $42.1 million, a decrease of 11% reflecting the impact of lower U.S. mortgage volumes, acquisition-related costs, severance charges and stranded AMPS overhead costs.

Net income from continuing operations totaled $25.2 million. Diluted EPS from continuing operations totaled $0.27. Adjusted diluted EPS was $0.36.

Adjusted EBITDA totaled $94.1 million; adjusted EBITDA margin was 27%.

Company reduced debt by $51 million and repurchased 0.85 million common shares (1.1 million shares repurchased during the first half 2014).


Irvine, Calif., July 23, 2014 - CoreLogic (NYSE:CLGX), a leading global property information, analytics and data-enabled services provider, today reported financial results for the quarter ended June 30, 2014.
 
“CoreLogic delivered strong operating results in the second quarter despite the continuing contraction in U.S. mortgage volumes. We continued to scale and grow our D&A and TPS segments in line with our strategic business plan and we also invested in areas of strategic growth and operational excellence which we believe will provide sustainable, long-term value creation for our stakeholders," said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. “As we move forward, we will continue to aggressively shift our business mix toward data-driven, subscription based models built around unique data sets, analytics and data-enabled services. The successful transformation of our business operations over the past three years has underpinned our consistent outperformance of the broader housing and mortgage markets and positions us for growth and margin expansion in the future.”

“We grew revenues and delivered strong margins and free cash flow in the second quarter. We also progressed our major operational initiatives, exceeded our cost reduction targets, reduced our debt and repurchased close to one million of our common shares,” added Frank Martell, Chief Operating and Financial Officer of CoreLogic. “Over the balance of 2014, we will remain focused on progressing our imperatives of growing our D&A segment to over 50% of our total revenues and ensuring that our TPS operations outperform their respective markets and are well-positioned to capitalize on a rebound in U.S. mortgage volumes from current trough levels.”


Second Quarter Financial Highlights 

Second quarter revenues totaled $349.4 million, 0.4% higher than prior-year levels and a 13% increase from the first quarter of 2014. Year-on-year revenue gains were principally attributable to market share gains and acquisition-related revenues which offset the impact of an estimated 50% decline in U.S. mortgage origination volumes. D&A revenues of $174.1 million were 14% above prior year levels driven principally by higher insurance,





spatial solutions, international and core property data revenues, which more than offset the impact of lower mortgage volumes, declines in specialty credit and multifamily tenant screening revenues and the exit of certain non-core product lines. TPS revenues fell 11% to $177.3 million year-over-year as the benefit of market share gains in payment processing were more than offset by the impact of contracting mortgage volumes and lower project-related document processing and retrieval revenues related to the transfer of mortgage servicing rights (MSRs) portfolios.

Operating income from continuing operations totaled $42.1 million for the second quarter, an 11% decrease from prior-year levels and a 208% increase from the first quarter of 2014. The year-over-year decrease in operating income was principally attributable to lower mortgage volumes and costs related to the ongoing execution of the Company’s strategic transformation program. Regarding the latter, during the second quarter of 2014 the Company incurred (1) costs associated with the acquisition and integration of Bank of America (BAC) tax services operations, Marshall & Swift/Boeckh (MSB) and DataQuick Information Systems (DQ) totaling $6.7 million, (2) cash and non-cash charges attributable to the Technology Transformation Initiative (TTI) of $5.3 million, (3) severance and other charges of $2.6 million related to the Company’s 2014 cost reduction program and (4) overhead costs previously allocated to the AMPS segment (stranded AMPS costs) of $2.4 million. Second quarter 2014 operating margin was 12% including the impact of approximately 487 basis points attributable to the transformation program costs discussed above.

Second quarter net income from continuing operations totaled $25.2 million compared with $32.0 million in the same 2013 period and a net loss from continuing operations of $3.9 million in the first quarter of 2014. The year-over-year decrease was driven primarily by the impact of lower mortgage volumes, higher interest expense and the transformation program costs discussed previously. Diluted EPS from continuing operations totaled $0.27 for the second quarter of 2014 compared with $0.33 in the second quarter of 2013. Adjusted diluted EPS totaled $0.36, down from $0.48 in the same 2013 period reflecting the impact of lower mortgage volumes, higher interest expense, integration and transition costs related to the BAC, MSB and DQ acquisitions as well as severance and stranded AMPS costs.

Adjusted EBITDA totaled $94.1 million in second quarter 2014 compared with $111.0 million in the same prior year period and $64.0 million in first quarter 2014. Second quarter 2014 adjusted EBITDA margin was 27%, compared with 32% in the second quarter of 2013. The year-over-year decrease in adjusted EBITDA was principally the result of lower mortgage volumes; one-time non-operating costs attributable to the BAC, MSB and DQ acquisitions and severance charges related to the Company’s 2014 cost reduction program which collectively totaled $8.2 million; cash charges related to TTI of $4.6 million, and the stranded AMPS costs of $2.4 million discussed previously. D&A adjusted EBITDA totaled $56.7 million, an 11% increase from 2013, as higher revenues in the insurance and spatial solutions and international operations more than offset the impact of lower mortgage loan application volumes and declines in specialty credit and tenant screening. TPS adjusted EBITDA decreased 37% to $47.2 million compared with prior-year levels driven primarily by lower market volumes and integration costs related to the acquisition of BAC's tax operation.


Operational Excellence Programs

During the fourth quarter of 2013, CoreLogic launched a cost reduction program designed to lower 2014 operating expenses by at least $25 million. Cost savings relate primarily to workforce reductions in corporate shared services and information technology (IT), the outsourcing of certain business process functions and cuts in spending on real estate and outside services. Severance charges and savings associated with this program totaled $2.6 million and $10.1 million, respectively, for the second quarter of 2014.

CoreLogic launched the TTI during mid-2012. The primary objective of the TTI is to convert the Company's existing technology infrastructure to a new platform which is expected to provide new functionality, increased performance and a reduction in application management and development costs commencing in the second half of 2015. Second quarter 2014 cash and non-cash charges related to TTI implementation totaled $5.3 million.

During the first half of 2014, the Company successfully completed the integration of BAC’s flood zone determination and tax services operations.








Liquidity and Capital Resources
 
At June 30, 2014, the Company had cash and cash equivalents of $140.9 million compared with $134.7 million at December 31, 2013. Total debt as of June 30, 2014 was approximately $1.5 billion, up $633.7 million from December 31, 2013. The increase in outstanding debt was primarily the result of the completion of the acquisition of MSB and DQ on March 25, 2014. As of June 30, 2014, the Company had available capacity on its revolving credit facility under the Credit Agreement of $365.0 million.

During the second quarter of 2014, the Company repaid approximately $51 million in term loan and revolving debt. The Company also repurchased 848,779 of its common shares for a total of $25.2 million during the second quarter. Through the first six months of 2014, the Company has repurchased approximately 1.1 million of its common shares.
 
Free cash flow (FCF) for the twelve months ended June 30, 2014 totaled $197.1 million, which represented 60% of adjusted EBITDA. Year-to-date 2014 FCF totaled $82.6 million or 52% of adjusted EBITDA. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets. Net operating cash provided by continuing operations for the six months ended June 30, 2014 was $125.5 million.


2014 Financial Guidance (Continuing Operations)
 
Based on current market trends, the Company has reduced its full-year 2014 estimate for U.S. mortgage originations by ten percent to approximately $1 trillion. The impact of lower volumes of originations, as well as continuing headwinds in the U.S. housing market, and expected reductions in discretionary client spending is reflected in the following updated 2014 guidance: revenues; adjusted EBITDA and adjusted EPS of $1.33 to $1.37 billion, $335 to $360 million, and $1.25 to $1.40 per share, respectively.


Teleconference/Webcast

CoreLogic management will host a live webcast and conference call on Thursday, July 24, 2014, at 8:00 a.m. Pacific time (11:00 a.m. Eastern Time) to discuss these results. All interested parties are invited to listen to the event via webcast on the CoreLogic website at http://investor.corelogic.com. Alternatively, participants may use the following dial-in numbers: 1-877-280-4953 for U.S./Canada callers or 857-244-7310 for international callers. The Conference ID for the call is 11918268.
 
Additional detail on the Company's second quarter results is included in the quarterly financial supplement, available on the Investor Relations page at http://investor.corelogic.com.

A replay of the webcast will be available on the CoreLogic investor website for 30 days and also through the conference call number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 8969743.

Media Contact: Alyson Austin, office phone: 949-214-1414, e-mail: alaustin@corelogic.com
Investor Contact: Dan Smith, office phone: 703-610-5410, e-mail: danlsmith@corelogic.com
 

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The Company's combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk.





Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

Safe Harbor / Forward Looking Statements
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the Company's investment and strategic growth plans, such as plans to transform to a higher-growth, higher-margin company through enhancements to its business operations, growing D&A to over 50% of revenues, cost productivity and the TTI; the Company's overall financial performance, including future revenue and profit growth and market position, and the Company's margin and cash flow profile; the Company's full-year expected results and updated 2014 financial guidance; mortgage and housing market trends, including mortgage origination and mortgage delinquency volumes; the anticipated benefits of the acquisitions of MSB, DQ, and Bank of America's flood and tax processing operations to the Company's financial results; and our plans to reduce our outstanding debt and continue to return capital to shareholders through our share repurchase program. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include failure to successfully integrate the operations, technology, infrastructure and employees of MSB and DQ; and the additional risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K, as amended or updated by our Quarterly Reports on Form 10-Q. These additional risks and uncertainties include but are not limited to: limitations on access to or increase in prices for data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data; compromises in the security of our data, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer lending industries and the economy generally; our ability to protect proprietary rights; our TTI and growth strategies and our ability to effectively and efficiently implement them; risks related to the outsourcing of services and international operations; our indebtedness and the restrictions in our various debt agreements; our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof; the inability to control the dividend policies of our partially-owned affiliates; and impairments in our goodwill or other intangible assets. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
 
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
This press release contains certain non-GAAP financial measures which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the most directly comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is included in this press release. The Company is not able to provide a reconciliation of projected adjusted EBIDTA or projected adjusted earnings per share, where provided, to expected results due to the unknown effect, timing and potential significance of special charges or gains.
The Company believes that its presentation of non-GAAP measures, such as adjusted EBITDA, adjusted EPS and FCF, provides useful supplemental information to investors and management regarding CoreLogic's financial condition and results. Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortization, non-cash stock compensation, non-operating gains/losses and other one-time adjustments plus pretax equity in earnings of affiliates. Adjusted net income is defined as income from continuing operations before equity earnings of affiliates, adjusted for non-cash stock compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments plus pretax equity in earnings of affiliates, tax affected at an assumed effective tax rate of 38% for 2014 and 40% for all periods prior to 2014. Adjusted EPS is derived by dividing adjusted net income by diluted weighted average shares. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets. Other firms may calculate non-GAAP measures differently than CoreLogic, which limits comparability between companies.

(Additional Financial Data Follow)






CORELOGIC, INC.
CONSOLIDATED INCOME STATEMENTS
UNAUDITED
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30,
 
June 30,
(in thousands, except per share amounts)
2014
 
2013
 
2014
 
2013
Operating revenues
$
349,421

 
$
348,201

 
$
659,838

 
$
679,501

Cost of services (excluding depreciation and amortization shown below)
182,222

 
168,060

 
359,603

 
335,689

Selling, general and administrative expenses
89,763

 
98,476

 
179,709

 
180,667

Depreciation and amortization
35,333

 
34,154

 
64,772

 
68,295

Total operating expenses
307,318

 
300,690

 
604,084

 
584,651

Operating income
42,103

 
47,511

 
55,754

 
94,850

Interest expense:
 

 
 

 
 

 
 

Interest income
1,041

 
685

 
2,213

 
1,409

Interest expense
17,321

 
12,438

 
34,149

 
24,814

Total interest expense, net
(16,280
)
 
(11,753
)
 
(31,936
)
 
(23,405
)
Gain on investments and other, net
6,992

 
393

 
2,642

 
1,734

Income from continuing operations before equity in earnings of affiliates and income taxes
32,815

 
36,151

 
26,460

 
73,179

Provision for income taxes
11,305

 
13,529

 
10,942

 
27,751

Income from continuing operations before equity in earnings of affiliates
21,510

 
22,622

 
15,518

 
45,428

Equity in earnings of affiliates, net of tax
3,874

 
9,347

 
6,257

 
18,132

Net income from continuing operations
25,384

 
31,969

 
21,775

 
63,560

(Loss)/income from discontinued operations, net of tax
(9,165
)
 
11,581

 
(8,082
)
 
15,277

Loss from sale of discontinued operations, net of tax

 

 

 
(1,744
)
Net income
16,219

 
43,550

 
13,693

 
77,093

Less: Net income/(loss) attributable to noncontrolling interests
230

 

 
495

 
(26
)
Net income attributable to CoreLogic
$
15,989

 
$
43,550

 
$
13,198

 
$
77,119

Amounts attributable to CoreLogic stockholders:
 

 
 

 
 

 
 

Net income from continuing operations
$
25,154

 
$
31,969

 
$
21,280

 
$
63,586

(Loss)/income from discontinued operations, net of tax
(9,165
)
 
11,581

 
(8,082
)
 
15,277

Loss from sale of discontinued operations, net of tax

 

 

 
(1,744
)
Net income attributable to CoreLogic
$
15,989

 
$
43,550

 
$
13,198

 
$
77,119

Basic income/(loss) per share:
 
 
 
 
 
 
 
Net income from continuing operations
$
0.27

 
$
0.33

 
$
0.23

 
$
0.66

(Loss)/income from discontinued operations, net of tax
(0.10
)
 
0.12

 
(0.09
)
 
0.16

Loss from sale of discontinued operations, net of tax

 

 

 
(0.02
)
Net income attributable to CoreLogic
$
0.17

 
$
0.45

 
$
0.14

 
$
0.80

Diluted income/(loss) per share:
 

 
 

 
 

 
 

Net income from continuing operations
$
0.27

 
$
0.33

 
$
0.23

 
$
0.65

(Loss)/income from discontinued operations, net of tax
(0.10
)
 
0.12

 
(0.09
)
 
0.16

Loss from sale of discontinued operations, net of tax

 

 

 
(0.02
)
Net income attributable to CoreLogic
$
0.17

 
$
0.45

 
$
0.14

 
$
0.79

Weighted-average common shares outstanding:
 

 
 

 
 

 
 

Basic
91,750

 
95,516

 
91,591

 
96,315

Diluted
93,062

 
97,180

 
93,235

 
98,120


Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.





CORELOGIC, INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED 
(in thousands, except par value)
June 30,
 
December 31,
Assets
2014
 
2013
Current assets:
 
 
 
Cash and cash equivalents
$
140,909

 
$
134,741

Marketable securities
22,299

 
22,220

Accounts receivable (less allowance for doubtful accounts of $11,912 and $12,930 as of June 30, 2014 and December 31, 2013, respectively)
197,662

 
196,282

Prepaid expenses and other current assets
50,861

 
50,674

Income tax receivable

 
13,516

Deferred income tax assets, current
88,995

 
86,158

Assets of discontinued operations
132,246

 
138,023

Total current assets
632,972

 
641,614

Property and equipment, net
372,846

 
195,645

Goodwill, net
1,774,013

 
1,390,674

Other intangible assets, net
297,039

 
175,808

Capitalized data and database costs, net
341,563

 
330,188

Investment in affiliates, net
103,346

 
95,343

Restricted cash
12,544

 
12,050

Other assets
164,445

 
162,033

Total assets
$
3,698,768

 
$
3,003,355

Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable and accrued expenses
$
160,652

 
$
154,526

Accrued salaries and benefits
74,184

 
101,715

Deferred revenue, current
252,093

 
223,323

Income taxes payable
35,000

 

Current portion of long-term debt
33,339

 
28,154

Liabilities of discontinued operations
42,358

 
30,309

Total current liabilities
597,626

 
538,027

Long-term debt, net of current
1,440,262

 
811,776

Deferred revenue, net of current
362,444

 
377,086

Deferred income tax liabilities, long term
103,184

 
74,308

Other liabilities
134,481

 
147,583

Total liabilities
2,637,997

 
1,948,780

 
 
 
 
Redeemable noncontrolling interests
10,669

 
10,202

 
 
 
 
Equity:
 

 
 

CoreLogic stockholders' equity:
 

 
 

Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding

 

Common stock, $0.00001 par value; 180,000 shares authorized; 91,133 and 91,254 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively
1

 
1

Additional paid-in capital
645,338

 
672,165

Retained earnings
439,020

 
425,796

Accumulated other comprehensive loss
(34,257
)
 
(53,589
)
Total equity
1,050,102

 
1,044,373

Total liabilities and equity
$
3,698,768

 
$
3,003,355


Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.






CORELOGIC, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED

For the Six Months Ended

June 30,
(in thousands)
2014
 
2013
Cash flows from operating activities:
 
 
 
Net income
$
13,693

 
$
77,093

Less: (Loss)/income from discontinued operations, net of tax
(8,082
)
 
15,277

Less: Loss from sale of discontinued operations, net of tax

 
(1,744
)
Net income from continuing operations
21,775

 
63,560

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
 

 
 

Depreciation and amortization
64,772

 
68,295

Provision for bad debt and claim losses
6,958

 
8,469

Share-based compensation
15,504

 
16,711

Excess tax benefit related to stock options
(6,275
)
 
(2,652
)
Equity in earnings of affiliates, net of taxes
(6,257
)
 
(18,132
)
Gain on sale of property and equipment
(24
)
 

Loss on early extinguishment of debt
763

 

Deferred income tax
3,603

 
3,737

Gain on investments and other, net
(2,642
)
 
(1,734
)
Change in operating assets and liabilities, net of acquisitions:
 

 
 

Accounts receivable
9,681

 
(11,324
)
Prepaid expenses and other current assets
1,916

 
(1,463
)
Accounts payable and accrued expenses
(27,884
)
 
(32,863
)
Deferred revenue
(12,956
)
 
26,014

Income taxes
44,723

 
11,878

Dividends received from investments in affiliates
26,052

 
23,868

Other assets and other liabilities
(14,235
)
 
(19,624
)
Net cash provided by operating activities - continuing operations
125,474

 
134,740

Net cash provided by operating activities - discontinued operations
10,059

 
30,458

Total cash provided by operating activities
$
135,533

 
$
165,198

Cash flows from investing activities:
 

 
 

Purchases of capitalized data and other intangible assets
$
(16,533
)
 
$
(18,928
)
Purchases of property and equipment
(26,296
)
 
(34,410
)
Cash paid for acquisitions, net of cash acquired
(670,036
)
 
(6,852
)
Purchases of investments

 
(2,351
)
Cash received from sale of discontinued operations

 
2,263

Proceeds from sale of property and equipment
36

 

Change in restricted cash
(494
)
 
2,093

Net cash used in investing activities - continuing operations
(713,323
)
 
(58,185
)
Net cash used in investing activities - discontinued operations

 
(253
)
Total cash used in investing activities
$
(713,323
)
 
$
(58,438
)
Cash flows from financing activities:
 

 
 

Proceeds from long-term debt
$
690,017

 
$
551

Debt issuance costs
(14,042
)
 

Repayment of long-term debt
(56,550
)
 
(4,423
)
Proceeds from issuance of stock related to stock options and employee benefit plans
4,440

 
7,119

Minimum tax withholding paid on behalf of employees for restricted stock units
(15,034
)
 
(6,680
)
Shares repurchased and retired
(32,041
)
 
(75,676
)
Excess tax benefit related to stock options
6,275

 
2,652

Net cash provided by/(used in) financing activities - continuing operations
583,065

 
(76,457
)
Net cash provided by financing activities - discontinued operations

 

Total cash provided by/(used in) financing activities
$
583,065

 
$
(76,457
)
Effect of exchange rate on cash
903

 
(2,574
)
Net increase in cash and cash equivalents
6,178

 
27,729

Cash and cash equivalents at beginning of period
134,741

 
151,986

Less: Change in cash and cash equivalents - discontinued operations
10,059

 
30,205

Plus: Cash swept from discontinued operations
10,049

 
28,471

Cash and cash equivalents at end of period
$
140,909

 
$
177,981




 



Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements.





CORELOGIC, INC.
RECONCILIATION OF ADJUSTED EBITDA
 
 
 
 
 
 
 
For the Three Months Ended June 30, 2014
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income from continuing operations before equity in earnings of affiliates and income taxes
$
28,870

$
39,571

$
(35,626
)
$

$
32,815

Pretax equity in earnings
(202
)
6,409

66


6,273

Depreciation & amortization
26,329

6,065

2,939


35,333

Total interest expense
(21
)
73

16,228


16,280

Stock-based compensation
1,699

1,121

4,759


7,579

Non-operating investment (gains)/losses

(6,012
)


(6,012
)
Efficiency investments


694


694

Transaction Costs


1,118


1,118

Adjusted EBITDA
$
56,675

$
47,227

$
(9,822
)
$

$
94,080


 
 
 
 
 
 
 
For the Three Months Ended June 30, 2013
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income from continuing operations before equity in earnings of affiliates and income taxes
$
30,013

$
50,474

$
(44,336
)
$

$
36,151

Pretax equity in earnings
546

14,415

174


15,135

Depreciation & amortization
19,141

7,280

7,733


34,154

Total interest expense
(133
)
136

11,750


11,753

Stock-based compensation
1,542

2,509

4,559


8,610

Efficiency investments


1,013


1,013

Spin & legacy corporate costs


4,151


4,151

Adjusted EBITDA
$
51,109

$
74,814

$
(14,956
)
$

$
110,967

 
 
 
 
 
 

 
 
 
 
 
 







CORELOGIC, INC.
RECONCILIATION OF ADJUSTED DILUTED EPS
 
 
 
 
 
 
 
For the Three Months Ended June 30, 2014
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income from continuing operations before equity in earnings of affiliates and income taxes
$
28,870

$
39,571

$
(35,626
)
$

$
32,815

Pretax equity in earnings
(202
)
6,409

66


6,273

Stock-based compensation
1,699

1,121

4,759


7,579

Non-operating investment (gains)/losses

(6,012
)


(6,012
)
Efficiency investments


694


694

Transaction costs


1,118


1,118

Amortization of acquired intangibles
7,308

2,671



9,979

Depreciation of certain acquired proprietary technology included in property and equipment
2,635




2,635

Adjusted pretax income from continuing operations
$
40,310

$
43,760

$
(28,989
)
$

$
55,081

Tax provision (38% rate)
 
 
 
 
20,931

Less: Net income attributable to noncontrolling interests
 
 
 
 
230

Adjusted net income attributable to CoreLogic
 
 
 
 
$
33,920

Weighted average diluted common shares outstanding
 
 
 
 
93,062

Adjusted diluted EPS
 
 
 
 
$
0.36


 
 
 
 
 
 
 
For the Three Months Ended June 30, 2013
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income from continuing operations before equity in earnings of affiliates and income taxes
$
30,013

$
50,474

$
(44,336
)
$

$
36,151

Pretax equity in earnings
546

14,415

174


15,135

Stock-based compensation
1,542

2,509

4,559


8,610

Efficiency investments


1,013


1,013

Spin & legacy corporate costs


4,151


4,151

Accelerated depreciation on TTI


4,375


4,375

Amortization of acquired intangibles
4,974

3,641



8,615

Adjusted pretax income from continuing operations
$
37,075

$
71,039

$
(30,064
)
$

$
78,050

Tax provision (40% rate)
 
 
 
 
31,220

Adjusted net income attributable to CoreLogic
 
 
 
 
$
46,830

Weighted average diluted common shares outstanding
 
 
 
 
97,180

Adjusted diluted EPS
 
 
 
 
$
0.48

 
 
 
 
 
 
 
 
 
 
 
 






CORELOGIC, INC.
RECONCILIATION TO FREE CASH FLOW

 
 
Twelve Months Ended June 30, 2014
Net cash provided by operating activities - continuing operations
 
$
293,147

Purchases of capitalized data and other intangible assets
 
(35,446
)
Purchases of property and equipment
 
(60,626
)
Free Cash Flow
 
$
197,075