EX-99.1 2 pressreleaseforperiodended.htm EXHIBIT 99.1 Press Release for Period Ended December 31, 2014


 
NEWS
FOR
IMMEDIATE
RELEASE
Exhibit 99.1

CORELOGIC REPORTS FOURTH QUARTER AND FULL-YEAR 2014 FINANCIAL RESULTS
Execution of Strategic Transformation Program Drives Double-Digit Data & Analytics Growth, Technology Processing Solutions Market Outperformance and Record Free Cash Flow


Fourth-Quarter Highlights
Revenues up 5% to $345.5 million driven by 16% growth in Data and Analytics (D&A) segment. Technology and Processing Solutions (TPS) revenues outperformed estimated U.S. mortgage volume trends.
Operating income from continuing operations increased $55.4 million to $36.2 million reflecting the impact of lower operating expenses including a 2013 non-cash impairment charge with no 2014 counterpart.
Net income from continuing operations up $25.8 million to $16.5 million. Diluted EPS from continuing operations of $0.18 per share compared with a $0.10 per share prior year loss. Adjusted EPS up 12% to $0.28 per share.
Adjusted EBITDA up 16% to $84.1 million; adjusted EBITDA margin of 24%.
Repurchased 0.6 million common shares; $81.2 million debt repaid.


Full-Year Highlights
Revenues of $1.4 billion, unchanged from 2013 levels - 13% growth in D&A and the benefit from TPS share gains offset the impact of an estimated 40% decline in U.S. mortgage market volumes.
Operating income from continuing operations up 19% to $169.8 million reflecting the impact of lower operating expenses and impairment charges partially offset by higher depreciation and amortization.
Net income from continuing operations down 11% to $89.7 million primarily due to the impact of lower U.S. mortgage volumes and higher interest expense. Diluted EPS from continuing operations of $0.97 per share, down 6%. Adjusted EPS of $1.33 per share, down 21%.
Adjusted EBITDA of $360.2 million; adjusted EBITDA margin of 26%.
Completed 2014 share repurchase program (3.1 million shares repurchased).


Irvine, Calif., February 24, 2015 - CoreLogic (NYSE:CLGX), a leading global property information, analytics and data-enabled services provider, today reported financial results for the full year and quarter ended December 31, 2014.

“CoreLogic delivered an outstanding operating performance in 2014 in the face of a very challenging set of market dynamics. We finished the year with accelerating momentum as we continued to expand our D&A footprint and reap the benefits of our market leadership in TPS. Revenue, profit and cash flow were up in the fourth quarter, despite a drop of about 5% in U.S. mortgage volumes," said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. “We are exiting 2014 a strong and high performing company. As we move forward into 2015, we are squarely focused on enabling and accelerating the growth of our unique data assets, analytics and services through innovation, technology and operational excellence and deeper client intimacy.”

“We continue to shift our business mix toward data-driven, subscription based models built around scaled market-leading solutions and services. As a result of this strategy, our core mortgage operations continue to outperform market volume trends and we materially expanded and diversified our D&A revenues in the fourth quarter,” added Frank Martell, Chief Operating and Financial Officer of CoreLogic. "The durability of our business model allows us to continue to invest in product and service innovation, technology leadership and operational improvements and, at the same time, return significant amounts of capital to our shareholders and reduce our debt balances.”






Fourth-Quarter Financial Highlights 

Fourth quarter revenues totaled $345.5 million, 5% higher than prior-year levels, as market share gains, organic growth and acquisition-related revenues more than offset the impact of an estimated 5% decline in mortgage origination volumes. D&A revenues rose 16% to $164.1 million driven principally by growth in insurance, spatial solutions, international and core property data revenues, which more than offset the impact of lower mortgage volumes, unfavorable foreign currency translation and the exit of certain non-core product lines. TPS revenues decreased 3% year-over-year to $183.6 million as the impact of contracting mortgage volumes, lower project-related document processing and retrieval revenues and the planned run-off of a non-core credit reporting service offset the benefit of market share gains.

Operating income from continuing operations totaled $36.2 million for the fourth quarter compared with a loss of $19.3 million for the fourth quarter of 2013. The fourth quarter 2013 operating loss was attributable to a pre-tax non-cash goodwill impairment charge of $42.2 million related to the planned divestiture of the Company’s Asset Management and Processing Solutions (AMPS) business. Before the effect of the 2013 impairment charge, fourth quarter 2014 operating income from continuing operations increased 58%, reflecting benefits from D&A growth and favorable mix, TPS share gains, as well as lower operating and SG&A costs related to the ongoing cost efficiency programs. These benefits were partially offset by increased depreciation and amortization associated with the acquisition of Marshall & Swift/Boeckh (MSB) and Data Quick (DQ). Fourth quarter 2014 operating income margin was 10% compared with 7% (before the impairment charge discussed above) for the fourth quarter of 2013.

Fourth quarter net income from continuing operations totaled $16.5 million compared with a net loss of $9.3 million in the same 2013 period. The $25.8 million year-over-year increase was driven primarily by D&A growth, TPS share gains, the 2013 AMPS impairment charge discussed previously and lower taxes which more than offset the impact of lower U.S. mortgage volumes, unfavorable foreign currency translation and higher interest expense associated with the acquisition of MSB and DQ. Diluted EPS from continuing operations totaled $0.18 for the fourth quarter of 2014 compared with a loss of $0.10 in the fourth quarter of 2013. As discussed previously, fourth quarter 2013 diluted EPS from continuing operations included pre-tax non-cash impairment charges of $42.2 million associated with the exit of AMPS. Adjusted diluted EPS totaled $0.28, up 12% from the same 2013 period reflecting the positive impacts of D&A revenue growth, lower taxes and share repurchases partially offset by an estimated 5% decrease in mortgage loan origination volumes and higher interest expense.

Adjusted EBITDA totaled $84.1 million in fourth quarter 2014 compared with $72.5 million in the same prior year period. Fourth quarter 2014 adjusted EBITDA margin was 24%, compared with 22% in the prior year. The year-over-year increase in adjusted EBITDA was principally the result of D&A revenue growth and favorable business mix and lower costs related to cost productivity programs. D&A adjusted EBITDA totaled $48.6 million, a 22% increase from 2013, as higher revenues from insurance and spatial solutions and international operations more than offset the impact of lower U.S. mortgage loan application volumes, unfavorable currency translation and the exit of a non-core product line. TPS adjusted EBITDA increased 25% or $9.9 million to $50.0 million as share gains, cost management benefits and lower acquisition-related integration costs more than offset the unfavorable impact of lower U.S. mortgage market volumes and the decreased client-related project and discretionary spending.

Operational Excellence Programs

CoreLogic launched Phase I of its Technology Transformation Initiative (TTI) during mid-2012. Phase I of the TTI is focused on migrating the Company's existing technology infrastructure from CoreLogic internal management to an outsourced service arrangement with Dell Services. The migration of CoreLogic’s legacy systems and data center infrastructure to Dell Services is expected to provide new functionality, increased performance and a reduction in costs commencing during the second half of 2015. During 2014, the Company successfully completed the migration of its Dallas, Texas data center to a Dell Services operated facility. The migration of the Company’s remaining data center, based in Santa Ana, California, is expected to be complete by mid-2015. Full-year 2014 charges related to implementation of Phase I of the TTI totaled $15.6 million.
  
Phase II of the TTI, launched during 2014, focuses on the development of the Company's next generation technology (NextGen) platform which is designed to augment and eventually replace portions of our legacy systems. During 2014, the Company commenced the development of its NextGen platform capabilities including certain proof of concept deliverables. During the fourth quarter of 2014, the Company announced the formation of the CoreLogic Innovation Labs (CIL) in collaboration with Pivotal Software, Inc. The CIL is designed to accelerate





progress on the NextGen platform as well as support the upgrading of existing technology assets and facilitating the greater monetization of the Company’s data assets. Investments in Phase II of the TTI are expected to aggregate approximately $15 million per year beginning in 2015. Full-year 2014 charges related to implementation of Phase II of TTI aggregated $3.4 million.

During the fourth quarter of 2013, CoreLogic launched a cost reduction program and operational initiatives designed to lower 2014 operating expenses by at least $25 million. Full year 2014 savings associated with these programs totaled approximately $30 million.

Liquidity and Capital Resources
 
At December 31, 2014, the Company had cash and cash equivalents of $104.7 million compared with $134.4 million at December 31, 2013. As of December 31, 2014, the Company had available capacity on its revolving credit facility under the Credit Agreement of $465 million.

Total debt as of December 31, 2014 was $1.3 billion compared with $1.4 billion as of September 30, 2014 and $840 million as of December 31, 2013. The decrease in debt from September 30 to December 31, 2014 was attributable to the Company’s ongoing debt reduction program. The increase in debt from December 31, 2013 to December 31, 2014 reflects the financing of the acquisition of MSB and DQ completed on March 25, 2014 which was partially offset by $194.9 million in principal repayments made over the final nine months of 2014 attributable to the Company’s debt reduction program.

During the fourth quarter of 2014, the Company repaid approximately $81.2 million in term loan, revolving and other debt obligations. The Company also repurchased 0.6 million of its common shares for a total of $18.7 million during the quarter. In 2014, the Company repurchased approximately 3.1 million of its common shares for $91.5 million.
 
Free cash flow (FCF) for the twelve months ended December 31, 2014 totaled $248.4 million, which represented 69% 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 twelve months ended December 31, 2014 was $335.6 million.

2015 Financial Guidance (Continuing Operations)

($ in millions except adjusted EPS)
2014 Results
2015 Outlook/Guidance
Revenue
$1,405.0
$1,470.0 - $1,500.0
Adjusted EBITDA(1)
$360.2
$390.0 - $405.0
Adjusted EPS(1)
$1.33
$1.50 - $1.60

(1)
Definition of adjusted results, as well as other non-GAAP financial measures used by management is included in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of 2014 Non-GAAP measures to their nearest GAAP equivalents are also provided in this release.

2015 guidance is based upon the following estimates and assumptions:

2015 U.S. new purchase and refinancing mortgage origination unit volumes equivalent to 2014 levels.
10%-15% appreciation of the U.S. dollar against the Australian and New Zealand currencies.
Completion of TTI Phase I by mid-2015; estimated 2015 savings of approximately $10 million.
TTI Phase II investment of approximately $15 million.
Progressive reduction in debt balances in line with long-term debt to EBITDA target ratio of 2.5 times.
Repurchase of 2 to 3 million common shares over the balance of 2015.

Teleconference/Webcast

CoreLogic management will host a live webcast and conference call on Wednesday, February 25, 2015, 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: 866-202-0886 for U.S./Canada callers or 617-213-8841 for international callers. The Conference ID for the call is 94079698.






Additional detail on the Company's fourth 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 888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 12263010.

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, 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 2015 financial guidance and assumptions thereunder; mortgage and housing market trends, including mortgage origination volumes; 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 the 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 EBITDA 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 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 2013. 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.
CONDENSED CONSOLIDATED INCOME STATEMENTS
UNAUDITED
 
For the Three Months Ended
 
For the Year Ended
 
December 31,
 
December 31,
(in thousands, except per share amounts)
2014
 
2013
 
2014
 
2013
Operating revenue
$
345,512

 
$
328,522

 
$
1,405,040

 
$
1,404,401

Cost of services (exclusive of depreciation and amortization below)
175,385

 
177,409

 
740,301

 
717,205

Selling, general and administrative expenses
96,129

 
98,032

 
351,617

 
374,289

Depreciation and amortization
37,758

 
29,634

 
138,394

 
126,332

Impairment loss
82

 
42,711

 
4,970

 
44,433

Total operating expenses
309,354

 
347,786

 
1,235,282

 
1,262,259

Operating income/(loss)
36,158

 
(19,264
)
 
169,758

 
142,142

Interest expense:
 

 
 

 
 

 
 

Interest income
1,029

 
2,252

 
4,110

 
4,748

Interest expense
18,545

 
14,985

 
71,092

 
52,350

Total interest expense, net
(17,516
)
 
(12,733
)
 
(66,982
)
 
(47,602
)
Gain on investments and other, net
1,057

 
2,673

 
3,882

 
12,032

Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
19,699

 
(29,324
)
 
106,658

 
106,572

Provision/(benefit) for income taxes
6,701

 
(16,414
)
 
29,770

 
33,673

Income/(loss) from continuing operations before equity in earnings of affiliates
12,998

 
(12,910
)
 
76,888

 
72,899

Equity in earnings of affiliates, net of tax
3,831

 
3,510

 
14,120

 
27,361

Net income/(loss) from continuing operations
16,829

 
(9,400
)
 
91,008

 
100,260

(Loss)/income from discontinued operations, net of tax
(1,432
)
 
(3,512
)
 
(16,653
)
 
14,423

(Loss)/gain from sale of discontinued operations, net of tax
(364
)
 
(212
)
 
112

 
(7,008
)
Net income/(loss)
15,033

 
(13,124
)
 
74,467

 
107,675

Less: Net income/(loss) attributable to noncontrolling interests
368

 
(72
)
 
1,267

 
(53
)
Net income/(loss) attributable to CoreLogic
$
14,665

 
$
(13,052
)
 
$
73,200

 
$
107,728

Amounts attributable to CoreLogic:
 

 
 

 
 

 
 

Income/(loss) from continuing operations, net of tax
$
16,461

 
$
(9,328
)
 
$
89,741

 
$
100,313

(Loss)/income from discontinued operations, net of tax
(1,432
)
 
(3,512
)
 
(16,653
)
 
14,423

(Loss)/gain from sale of discontinued operations, net of tax
(364
)
 
(212
)
 
112

 
(7,008
)
Net income/(loss) attributable to CoreLogic
$
14,665

 
$
(13,052
)
 
$
73,200

 
$
107,728

Basic income/(loss) per share:
 
 
 
 
 
 
 
Income/(loss) from continuing operations, net of tax
$
0.18

 
$
(0.10
)
 
$
0.99

 
$
1.05

(Loss)/income from discontinued operations, net of tax
(0.02
)
 
(0.04
)
 
(0.18
)
 
0.15

(Loss)/gain from sale of discontinued operations, net of tax

 

 

 
(0.07
)
Net income/(loss) attributable to CoreLogic
$
0.16

 
$
(0.14
)
 
$
0.81

 
$
1.13

Diluted income/(loss) per share:
 

 
 

 
 

 
 

Income/(loss) from continuing operations, net of tax
$
0.18

 
$
(0.10
)
 
$
0.97

 
$
1.03

(Loss)/income from discontinued operations, net of tax
(0.02
)
 
(0.04
)
 
(0.18
)
 
0.15

(Loss)/gain from sale of discontinued operations, net of tax

 

 

 
(0.07
)
Net income/(loss) attributable to CoreLogic
$
0.16

 
$
(0.14
)
 
$
0.79

 
$
1.11

Weighted-average common shares outstanding:
 

 
 

 
 

 
 

Basic
89,597

 
92,946

 
90,825

 
95,088

Diluted
91,245

 
95,115

 
92,429

 
97,109


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





CORELOGIC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED 
(in thousands, except par value)
December 31,
 
December 31,
Assets
2014
 
2013
Current assets:
 
 
 
Cash and cash equivalents
$
104,677

 
$
134,419

Marketable securities
22,264

 
22,220

Accounts receivable (less allowance for doubtful accounts of $10,826 and $13,045 in 2014 and 2013, respectively)
214,344

 
215,020

Prepaid expenses and other current assets
51,375

 
50,829

Income tax receivable
13,357

 
13,516

Deferred income tax assets, current
90,341

 
86,487

Assets of discontinued operations
4,267

 
38,926

Total current assets
500,625

 
561,417

Property and equipment, net
368,614

 
197,542

Goodwill, net
1,780,758

 
1,468,290

Other intangible assets, net
278,270

 
175,808

Capitalized data and database costs, net
333,265

 
330,188

Investment in affiliates, net
103,598

 
95,343

Restricted cash
12,360

 
12,050

Other assets
138,872

 
162,493

Total assets
$
3,516,362

 
$
3,003,131

Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable and accrued expenses
$
170,418

 
$
156,937

Accrued salaries and benefits
99,786

 
104,781

Deferred revenue, current
255,330

 
223,603

Current portion of long-term debt
11,352

 
28,154

Liabilities of discontinued operations
13,704

 
20,616

Total current liabilities
550,590

 
534,091

Long-term debt, net of current
1,319,211

 
811,776

Deferred revenue, net of current
389,308

 
377,855

Deferred income tax liabilities, long-term
63,979

 
76,969

Other liabilities
161,084

 
147,865

Total liabilities
2,484,172

 
1,948,556


 
 
 
Redeemable noncontrolling interests
18,023

 
10,202


 
 
 
Equity:
 

 
 

CoreLogic, Inc.'s ("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; 89,343 and 91,254 shares issued and outstanding as of December 31, 2014 and 2013, respectively
1

 
1

Additional paid-in capital
605,511

 
672,165

Retained earnings
492,441

 
425,796

Accumulated other comprehensive loss
(83,786
)
 
(53,589
)
Total equity
1,014,167

 
1,044,373

Total liabilities and equity
$
3,516,362

 
$
3,003,131


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






CORELOGIC, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
 
For the Year Ended
 
December 31,
(in thousands)
2014
 
2013
Cash flows from operating activities:
 
 
 
Net income
$
74,467

 
$
107,675

Less: (Loss)/income from discontinued operations, net of tax
(16,653
)
 
14,423

Less: Gain/(loss) from sale of discontinued operations, net of tax
112

 
(7,008
)
Income from continuing operations, net of tax
91,008

 
100,260

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

 
 

Depreciation and amortization
138,394

 
126,332

Impairment loss
4,970

 
44,433

Provision for bad debts and claim losses
11,825

 
13,345

Share-based compensation
25,379

 
26,901

Tax benefit related to stock options
(6,791
)
 
(5,146
)
Equity in earnings of investee, net of taxes
(14,120
)
 
(27,361
)
Gain on sale of property and equipment
(13,866
)
 

Loss on early extinguishment of debt
763

 

Deferred income tax
20,986

 
8,120

Gain on investments and other, net
(3,882
)
 
(12,032
)
Change in operating assets and liabilities, net of acquisitions:
 

 
 

Accounts receivable
13,151

 
24,553

Prepaid expenses and other assets
1,231

 
113

Accounts payable and accrued expenses
(5,000
)
 
(9,330
)
Deferred revenue
16,010

 
48,125

Income taxes
(11,380
)
 
(27,543
)
Dividends received from investments in affiliates
38,655

 
36,680

Other assets and other liabilities
28,260

 
(19,230
)
Net cash provided by operating activities - continuing operations
335,593

 
328,220

Net cash (used in)/provided by operating activities - discontinued operations
(13,717
)
 
25,600

Total cash provided by operating activities
$
321,876

 
$
353,820

Cash flows from investing activities:
 

 
 

Purchases of capitalized data and other intangible assets
$
(35,129
)
 
$
(37,841
)
Purchases of property and equipment
(52,025
)
 
(68,745
)
Cash paid for acquisitions, net of cash acquired
(694,871
)
 
(92,049
)
Purchases of investments

 
(2,351
)
Cash received from sale of subsidiary, net
25,366

 
2,263

Proceeds from sale of property and equipment
13,937

 

Change in restricted cash
(310
)
 
10,068

Net cash used in investing activities - continuing operations
(743,032
)
 
(188,655
)
Net cash provided by/(used in) investing activities - discontinued operations
1,536

 
1,862

Total cash used in investing activities
$
(741,496
)
 
$
(186,793
)
Cash flows from financing activities:
 

 
 

Proceeds from long-term debt
$
690,017

 
$
51,647

Debt issuance costs
(14,042
)
 
(10,436
)
Repayments of long-term debt
(200,006
)
 
(4,666
)
Proceeds from issuance of stock related to stock options and employee benefit plans
15,213

 
28,232

Minimum tax withholding paid on behalf of employees for restricted stock units
(15,980
)
 
(8,665
)
Shares repurchased and retired
(91,475
)
 
(241,161
)
Tax benefit related to stock options
6,791

 
5,146

Net cash provided by/(used in) financing activities - continuing operations
390,518

 
(179,903
)
Net cash used in financing activities - discontinued operations

 

Total cash provided by/(used in) financing activities
$
390,518

 
$
(179,903
)
Effect of Exchange Rate on cash
(625
)
 
(2,116
)
Net decrease in cash and cash equivalents
$
(29,727
)
 
$
(14,992
)
Cash and cash equivalents at beginning of year
134,419

 
149,568

Less: Change in cash and cash equivalents of discontinued operations
(12,181
)
 
27,462

Plus: Cash swept (to)/from discontinued operations
(12,196
)
 
27,305

Cash and cash equivalents at end of year
$
104,677

 
$
134,419

 
 
 
 

Please refer to the full Form 10-K 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 December 31, 2014
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
21,952

$
36,510

$
(26,798
)
$
(11,965
)
$
19,699

Pre-tax equity in earnings of affiliates
34

6,200

91


6,325

Depreciation & amortization
26,159

6,354

5,245


37,758

Total interest expense
(217
)
73

17,660


17,516

Stock-based compensation
545

866

1,890


3,301

Impairment loss
82




82

Non-operating investment gains


(63
)

(63
)
Transaction costs


(535
)

(535
)
Adjusted EBITDA
$
48,555

$
50,003

$
(2,510
)
$
(11,965
)
$
84,083


 
 
 
 
 
 
 
For the Three Months Ended December 31, 2013
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
19,158

$
(17,702
)
$
(30,780
)
$

$
(29,324
)
Pre-tax equity in (loss)/earnings of affiliates
(9
)
4,990

213


5,194

Depreciation & amortization
19,049

7,664

2,921


29,634

Total interest expense
(95
)
135

12,693


12,733

Stock-based compensation
1,312

2,355

2,545


6,212

Impairment loss

42,711



42,711

Efficiency investments


2,826


2,826

Transaction costs
322


2,224


2,546

Adjusted EBITDA
$
39,737

$
40,153

$
(7,358
)
$

$
72,532















CORELOGIC, INC.
RECONCILIATION OF ADJUSTED EBITDA
 
 
 
 
 
 
 
For the Year Ended December 31, 2014
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
98,926

$
144,826

$
(125,129
)
$
(11,965
)
$
106,658

Pre-tax equity in earnings of affiliates
49

22,900

39


22,988

Depreciation & amortization
98,313

26,019

14,062


138,394

Total interest expense
(299
)
354

66,927


66,982

Stock-based compensation
5,612

4,652

15,115


25,379

Impairment loss
1,071

3,900



4,971

Non-operating investment gains

(6,012
)
(9,765
)

(15,777
)
Efficiency investments


1,616


1,616

Transaction costs


9,005


9,005

Adjusted EBITDA
$
203,672

$
196,639

$
(28,130
)
$
(11,965
)
$
360,216


 
 
 
 
 
 
 
For the Year Ended December 31, 2013
(in thousands)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
108,512

$
137,984

$
(139,924
)

$
106,572

Pre-tax equity in earnings of affiliates
1,631

41,638

548


43,817

Depreciation & amortization
74,186

30,780

21,366


126,332

Total interest (income)/expense
(552
)
491

47,663


47,602

Stock-based compensation
3,634

8,844

14,423


26,901

Impairment loss
1,482

42,950



44,432

Non-operating investment gains
(6,638
)



(6,638
)
Efficiency investments


5,832


5,832

Transaction costs
322


7,842


8,164

Adjusted EBITDA
$
182,577

$
262,687

$
(42,250
)
$

$
403,014








CORELOGIC, INC.
RECONCILIATION OF ADJUSTED DILUTED EPS
 
 
 
 
 
 
 
For the Three Months Ended December 31, 2014
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
21,952

$
36,510

$
(26,798
)
$
(11,965
)
$
19,699

Pre-tax equity in earnings of affiliates
34

6,200

91


6,325

Stock-based compensation
545

866

1,890


3,301

Non-operating investment gains


(63
)

(63
)
Transaction costs


(535
)

(535
)
Impairment loss
82




82

Amortization of acquired intangibles
7,048

2,671



9,719

Depreciation of certain acquired proprietary technology included in property and equipment
2,880




2,880

Adjusted pretax income from continuing operations
$
32,541

$
46,247

$
(25,415
)
$
(11,965
)
$
41,408

Tax provision (38% rate)
 
 
 
 
15,735

Less: Net income attributable to noncontrolling interests
 
 
 
 
368

Adjusted net income attributable to CoreLogic
 
 
 
 
$
25,305

Weighted average diluted common shares outstanding
 
 
 
 
91,245

Adjusted diluted EPS
 
 
 
 
$
0.28


 
 
 
 
 
 
 
For the Three Months Ended December 31, 2013
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
19,158

$
(17,702
)
$
(30,780
)
$

$
(29,324
)
Pre-tax equity in (loss)/earnings of affiliates
(9
)
4,990

213


5,194

Stock-based compensation
1,312

2,355

2,545


6,212

Efficiency investments


2,826


2,826

Impairment loss

42,711



42,711

Transaction costs
322


2,224


2,546

Amortization of acquired intangibles
4,858

4,174



9,032

Adjusted pretax income from continuing operations
$
25,641

$
36,528

$
(22,972
)
$

$
39,197

Tax provision (40% rate)
 
 
 
 
15,679

Less: Net loss attributable to noncontrolling interests
 
 
 
 
(72
)
Adjusted net income attributable to CoreLogic
 
 
 
 
$
23,590

Weighted average diluted common shares outstanding
 
 
 
 
95,115

Adjusted diluted EPS
 
 
 
 
$
0.25









CORELOGIC, INC.
RECONCILIATION OF ADJUSTED DILUTED EPS
 
 
 
 
 
 
 
For the Year Ended December 31, 2014
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
98,926

$
144,826

$
(125,129
)
$
(11,965
)
$
106,658

Pre-tax equity in earnings of affiliates
49

22,900

39


22,988

Stock-based compensation
5,612

4,652

15,115


25,379

Non-operating investment gains

(6,012
)
(9,765
)

(15,777
)
Transaction costs


9,005


9,005

Efficiency investments


1,616


1,616

Interest expense adjustments


130


130

Impairment loss
1,071

3,900



4,971

Amortization of acquired intangibles
26,838

10,614



37,452

Depreciation of certain acquired proprietary technology included in property and equipment
8,395




8,395

Adjusted pretax income from continuing operations
$
140,891

$
180,880

$
(108,989
)
$
(11,965
)
$
200,817

Tax provision (38% rate)
 
 
 
 
76,310

Less: Net income attributable to noncontrolling interests
 
 
 
 
1,267

Adjusted net income attributable to CoreLogic
 
 
 
 
$
123,240

Weighted average diluted common shares outstanding
 
 
 
 
92,429

Adjusted diluted EPS
 
 
 
 
$
1.33


 
 
 
 
 
 
 
For the Year Ended December 31, 2013
(in thousands, except per share amounts)
D&A
TPS
Corporate
Elim
CoreLogic
Income/(loss) from continuing operations before equity in earnings of affiliates and income taxes
$
108,512

$
137,984

$
(139,924
)
$

$
106,572

Pre-tax equity in earnings of affiliates
1,631

41,638

548


43,817

Stock-based compensation
3,634

8,844

14,423


26,901

Non-operating investment gains
(6,638
)



(6,638
)
Transaction costs
322


7,842


8,164

Efficiency investments


5,832


5,832

Amortization of acquired intangibles
19,588

15,723



35,311

Impairment loss
1,482

42,950



44,432

Accelerated depreciation on TTI


8,751


8,751

Adjusted pretax income from continuing operations
$
128,531

$
247,139

$
(102,528
)
$

$
273,142

Tax provision (40% rate)
 
 
 
 
109,257

Less: Net loss attributable to noncontrolling interests
 
 
 
 
(53
)
Adjusted net income attributable to CoreLogic
 
 
 
 
$
163,938

Weighted average diluted common shares outstanding
 
 
 
 
97,109

Adjusted diluted EPS
 
 
 
 
$
1.69







CORELOGIC, INC.
RECONCILIATION TO FREE CASH FLOW

 
 
For the Year Ended December 31, 2014
Net cash provided by operating activities - continuing operations
 
$
335,593

Purchases of capitalized data and other intangible assets
 
(35,129
)
Purchases of property and equipment
 
(52,025
)
Free Cash Flow
 
$
248,439