-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KYVAqtoa4L0eeMKIQwxH2jISA6pJgHwOKQGf5arBuA/0X6u2hKUCOw6bsToCpYa9 JcR/srktP23cmp8qu4XK/g== 0001140361-10-043688.txt : 20101104 0001140361-10-043688.hdr.sgml : 20101104 20101104165749 ACCESSION NUMBER: 0001140361-10-043688 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20101104 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20101104 DATE AS OF CHANGE: 20101104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORELOGIC, INC. CENTRAL INDEX KEY: 0000036047 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 951068610 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13585 FILM NUMBER: 101165642 BUSINESS ADDRESS: STREET 1: 4 FIRST AMERICAN WAY CITY: SANTA ANA STATE: CA ZIP: 92707 BUSINESS PHONE: 714-250-6400 MAIL ADDRESS: STREET 1: 4 FIRST AMERICAN WAY CITY: SANTA ANA STATE: CA ZIP: 92707 FORMER COMPANY: FORMER CONFORMED NAME: FIRST AMERICAN CORP DATE OF NAME CHANGE: 20020628 FORMER COMPANY: FORMER CONFORMED NAME: FIRST AMERICAN FINANCIAL CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIRST AMERICAN TITLE INSURANCE & TRUST C DATE OF NAME CHANGE: 19690515 8-K 1 form8k.htm EARNINGS RELEASE 8K form8k.htm


 
 
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
 

 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
 
 

 
Date of report (Date of earliest event reported): November 4, 2010
 
 
CORELOGIC, INC.
(Exact Name of the Registrant as Specified in Charter)
 
         
Delaware
  
001-13585
  
95-1068610
(State or Other Jurisdiction
of Incorporation)
  
(Commission File Number)
  
(IRS Employer
Identification No.)
 
     
4 First American Way, Santa Ana, California
  
92707
(Address of Principal Executive Offices)
  
(Zip Code)
 
Registrant’s telephone number, including area code (714) 250-6400
 
Not Applicable.
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 

 
 
 


Item 2.02.
Results of Operations and Financial Condition.
 
On November 4, 2010, CoreLogic, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended September 30, 2010.  The full text of the press release is attached hereto as Exhibit 99.1.
 
The information in this current report, including the exhibit hereto, is being “furnished” in accordance with General Instruction B.2 of Form 8-K. As such, this information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filings with the Securities and Exchange Commission unless it is explicitly so incorporated in such filings.
 
Item 9.01. Financial Statements and Exhibits
 
(d)           Exhibits.
 
Exhibit
 
Number                      Description                                                                                     ; 
 
99.1
Press Release dated November 4, 2010, announcing the Company’s financial results for the quarter ended September 30, 2010.

 
 
 

 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
             
       
CORELOGIC, INC.
       
Date: November 4, 2010
      
By:
     /s/Anthony S. Piszel
       
Name:
  
Anthony S. Piszel
       
Title:
  
Chief Financial Officer


 
 
 

EX-99.1 2 exhibit99.htm PRESS RELEASE exhibit99.htm
Exhibit 99.1
FOR IMMEDIATE RELEASE
NOVEMBER 4, 2010

Contact Information Below


CORELOGIC REPORTS THIRD QUARTER 2010 NET LOSS OF
$93.4 MILLION, OR $0.80 PER SHARE, ON REVENUE OF $484.3 MILLION

RESULTS INCLUDE NON-CASH IMPAIRMENT CHARGE OF $174.0 MILLION ON THE CARRYING VALUE OF EMPLOYER AND LITIGATION SERVICES BUSINESSES

PRE-TAX LOSS OF $123.2 MILLION; ADJUSTED PRE-TAX INCOME1 OF $78.2 MILLION; ADJUSTED EBITDA1 OF $116.0 MILLION

·  
Third quarter revenues totaled $484.3 million, compared to $468.3 million in the second quarter of 2010 and $469.8 million in the third quarter of 2009.

·  
Third quarter adjusted revenues1 totaled $506.7 million, compared to $479.1 million in the second quarter of 2010 and $490.8 million in the third quarter of 2009.

·  
Growth in flood data services led revenue gains and improved profitability in the Business and Information Services segment.

·  
Growth in mortgage credit reporting volumes and risk and fraud analytical products led revenue gains and improved profitability in the Data and Analytics segment.

·  
Subsequent to September 30, 2010, CoreLogic entered into a definitive agreement to acquire a controlling interest in RealtyBid International, LLC, a leading online REO auction site.

·  
CoreLogic announces its intent to repurchase up to $100 million in common stock between November 4, 2010 and December 31, 2011.


 
Santa Ana, Calif., November 4, 2010 – CoreLogic (NYSE:CLGX) today announced a net loss of $93.4 million for the quarter ended September 30, 2010 compared with net income of $24.4 million in the second quarter of 2010 and net income of $55.4 million in the third quarter of 2009.  Diluted earnings per share was a loss of $0.80, compared with income of $0.22 in the second quarter of 2010 and income of $0.59 in the third quarter of 2009.

As part of the previously announced marketing process for our employer and litigation services businesses, the company concluded that the goodwill of the employer and litigation services businesses

1 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 6 and following.
 
1
 
 



was impaired as of September 30, 2010.  Accordingly, the company recorded an impairment charge of $174.0 million for the third quarter.

Anand Nallathambi, President and Chief Executive Officer, commented on the quarter: “In our first full quarter as an independent company, CoreLogic delivered significant revenue and EBITDA growth, improved our business mix and profitability, and announced our intent to repurchase up to $100 million of common stock.”

Continuing on, Nallathambi added:  “we believe that continued investment in new products, expansion of our capabilities through targeted acquisitions and growing demand for our analytical and advisory services should enable us to deliver significant value to our shareholders over the next several years.”

 
2
 

 


FINANCIAL SUMMARY

($ millions)
     3Q10       2Q10       3Q09  
Total revenue (excludes equity in earnings of affiliates)
   $ 484.3     $ 468.3     $ 469.8  
     Business and Information Services
     229.6       228.1       227.7  
     Data and Analytics
     183.4       178.3       166.9  
     Employer, Legal and Marketing
     77.9       66.1       69.7  
     Corporate and Eliminations
     (6.6 )     (4.2 )     5.6  
Total operating expenses
   $ 600.6     $ 442.8     $ 439.4  
     Business and Information Services
     192.2       189.3       199.4  
     Data and Analytics
     144.6       144.2       135.7  
     Employer, Legal and Marketing
     246.7       69.6       65.2  
     Corporate and Eliminations
     17.0       39.7       39.2  
Total pretax income / margin (%)
   $ (123.2) / NM     $ 10.8 / 2 %   $ 23.4 / 5 %
     Business and Information Services
     55.9 / 24 %     51.8 / 23 %     48.0 / 21 %
     Data and Analytics
     42.4 / 23 %     35.2 / 20 %     34.5 / 21 %
     Employer, Legal and Marketing
  
(170.5) / NM
    
(3.6) / NM
       4.7 / 7 %
     Corporate and Eliminations
  
(51.1) / NM
    
(72.6) / NM
    
(63.8) / NM
  
Adjusted pretax income / margin (%)2
   $ 78.2 / 15 %   $ 69.3 / 14 %   $ 73.8 / 15 %
     Business and Information Services
     57.0 / 23 %     53.3 / 22 %     48.6 / 20 %
     Data and Analytics
     42.7 / 23 %     35.3 / 20 %     35.2 / 21 %
     Employer, Legal and Marketing
     5.1 / 7 %     1.3 / 2 %     4.9 / 7 %
     Corporate and Eliminations
  
(26.6) / NM
    
(20.5) / NM
    
(14.9) / NM
  
Cash on balance sheet
   $ 327     $ 395    
Intentionally left blank
  
Total debt outstanding
   $ 531     $ 617    
Intentionally left blank
  

2 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 6 and following.


 
3
 
 



BUSINESS SEGMENT RESULTS 3

 ($ millions)
     3Q10       2Q10       3Q09  
Total adjusted revenue4
   $ 506.7     $ 479.1     $ 490.8  
     Business and Information Services
     247.9       242.4       245.6  
     Data and Analytics
     187.5       179.8       169.5  
     Employer, Legal and Marketing
     77.8       66.0       69.7  
     Corporate and Eliminations
     (6.5 )     (9.1 )     6.1  
Total adjusted EBITDA / margin (%)4
   $ 116.0 / 23 %   $ 102.8 / 21 %   $ 108.1 / 22 %
     Business and Information Services
     62.2 / 25 %     58.6 / 24 %     53.4 / 22 %
     Data and Analytics
     56.1 / 30 %     49.0 / 27 %     48.9 / 29 %
     Employer, Legal and Marketing
     10.7 / 14 %     6.9 / 10 %     10.8 / 15 %
     Corporate and Eliminations
  
(13.1) / NM
    
(11.6) / NM
    
(4.9) / NM
  

3 The discussion of segment financial results reflects the comparison of third quarter 2010 to the prior quarter’s results.
4 This is a non-GAAP measure. For a discussion and reconciliation of non-GAAP measures to the GAAP equivalent, see page 6 and following.

Buddy Piszel, Chief Financial Officer, commented on the quarter: “Our third quarter 2010 results demonstrate the earnings power and resiliency of our current business mix.  As expected, the majority of our businesses performed very well, with flood, geospatial and tax servicing volumes showing good follow-through from the second quarter and risk and fraud analytics products continuing to gain customer adoption.  While the outlook for mortgage originations in 2011 suggests some softening in refinancing volumes, targeted cost savings and our announced share repurchase program should help us defend EBITDA margins and per share results from our continuing businesses.”


BUSINESS AND INFORMATION SERVICES
Adjusted EBITDA was $62.2 million, up 6.1% compared with the prior quarter, driven by significant growth in adjusted revenues and lower operating expenses in the mortgage origination services group.

Adjusted revenues from the mortgage origination services group increased by 5.6% to $137.7 million, as continued growth in flood and geospatial services and improved results from the company’s national joint ventures more than offset adjusted revenue declines in the appraisal and tax servicing businesses.  During the third quarter, adjusted revenues from the flood and geospatial solutions businesses increased due to the continued high level of mortgage loan refinancing volumes, the closing of several large geospatial solutions contracts and increased activity in federal projects.  Adjusted revenues from the national joint ventures also increased due to higher loan application and origination volumes.  Adjusted revenues in the default and technology services group declined by 1.5% to $110.2 million, d ue to a lower volume of broker price opinions and default technology services compared to the previous quarter.

Adjusted EBITDA margin was 25%, up from 24% in the prior quarter.  Margin growth in the third quarter reflected higher revenues, continued cost containment efforts, and improved business mix that was more heavily weighted towards relatively high margin flood, geospatial and national joint venture businesses.

 
4
 
 
DATA AND ANALYTICS
Adjusted EBITDA was $56.1 million, up 14.5% compared with the prior quarter, driven by higher adjusted revenues from fraud and income verification products in the risk and fraud group and significant growth in adjusted revenues associated with mortgage loan credit reports in the specialty finance group.

Adjusted revenue was $187.5 million, compared with $179.8 million in the prior quarter.  Risk and fraud analytics adjusted revenues increased by 1.3% to $103.5 million, as continued high level of mortgage loan applications and originations increased demand for the company’s fraud and income verification services.  Specialty finance adjusted revenues increased by 8.1% to $84.0 million, led by higher mortgage-related credit report volumes.

Adjusted EBITDA margin was 30%, up from 27% in the prior quarter.  Adjusted EBITDA margin in the risk and fraud analytics group increased to 34% from 32% reflecting improved product mix, resulting from an increased proportion of relatively high-margin fraud and income verification products.  Adjusted EBITDA margin in the specialty finance group improved to 25% from 21% in the prior quarter, reflecting significant growth in mortgage-related credit report volumes.

EMPLOYER, LEGAL AND MARKETING SERVICES
Adjusted EBITDA was $10.7 million, up 55.1% compared with the prior quarter.  Improvements were driven by higher adjusted revenues in the employer and litigation services businesses.

Adjusted revenue was $77.8 million, compared with $66.0 million in the prior quarter.  Employer services revenues increased by 10.1% to $54.6 million, driven by continued growth in international employment screening activity.  Litigation and investigation support adjusted revenues increased compared to the prior quarter, reflecting an improvement in adjusted revenues tied to increased legal services for new clients.
 
Adjusted EBITDA margin was 14%, up from 10% in the prior quarter.  Significantly, all of this improvement resulted from improved adjusted revenues in the employer and litigation services businesses.

LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2010, CoreLogic had cash on balance sheet of $327.3 million, and total debt outstanding of $530.9 million.  During the quarter, CoreLogic paid down $85 million on its credit line, leaving the full $500 million available under the company’s credit facility at quarter end.

Teleconference/Webcast
The CoreLogic management team will host a live webcast and conference call on Thursday, November 4, 2010, at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss third quarter 2010 financial results. All interested parties are invited to listen to the live event via webcast on the CoreLogic website at http://investor.corelogic.com. The discussion is also available through dial-in number 1-866-804-6923 for U.S./Canada participants or 857-350-1669 for international participants using Conference ID 84254064.

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 47397448.

Additional detail on the company’s third quarter financial results is included in the quarterly supplement, available on the Investor Relations page at http://investor.corelogic.com.

About CoreLogic
CoreLogic (NYSE:CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive and decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a leading provider of mortgage and automotive credit reporting, property tax information, valuation, flood determination and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the informatio n solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of $2 billion. For more information visit www.corelogic.com.

Web Site Disclosure
CoreLogic posts information of interest to investors at http://investor.corelogic.com.

 
5
 
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 related to the company’s outlook, performance and strategy for 2010, the company’s intended share repurchases and the impact thereof, the potential sale of the employer, investigative and litigation services businesses and the impact thereof, and the company’s intended acquisition strategy. These forward-looking statements may contain the words “believe,” “anticipate,” “expect,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases. Risks and uncert ainties exist that may cause 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 are set forth in our Current Report on Form 8-K filed on June 1, 2010 and Part I, Item 1A of our most recent Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q, including but not limited to:
 
·  
limitations on access to 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 transmissions, including the transmission of confidential information or systems interruptions;
 
·  
difficult conditions in the mortgage and consumer credit industry, the state of the securitization market, increased unemployment,  and conditions in the economy generally;
 
·  
our ability to bring new products to market and to protect proprietary technology rights;
 
·  
our ability to identify purchasers and complete the sale of certain businesses on satisfactory terms or identify suitable acquisition targets, obtain necessary capital and complete such transactions on satisfactory terms;
 
·  
our ability to realize the benefits of our off-shore strategy;
 
·  
consolidation among our significant customers and competitors;
 
·  
impairments in our goodwill or other intangible assets; and
 
·  
the inability to realize the benefits of the spin-off transaction as a result of the factors described immediately above, as well as, among other factors, increased borrowing costs, competition between the resulting companies, increased operating or other expenses or the triggering of rights and obligations by the transaction or any litigation arising out of or related to the separation.
 

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 Financial Measures
This press release contains certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including adjusted revenue which includes equity in earnings of affiliates; adjusted EBITDA and adjusted EBITDA margin which is adjusted to exclude historical corporate expense and other adjustments, and adjusted pretax margin, which is adjusted to exclude net realized investment losses, employee separation costs and lease termination costs.  Although these exclusions represent actual losses or expenses to the company, they may mask the periodic income and financial and operating trends associated with the company’s business. To compensate for the inherent limitations of these non-GAAP measures, the company uses them in conjunction with the corresponding GA AP measures.

The company is presenting these non-GAAP financial measures because the company believes that they provide the company’s management and investors with additional insight into the operational performance of the company relative to earlier periods. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this press release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

 Media Contact:    
Investor Contact:
  
Bob Visini
    
Dan Smith
  
Corporate Communications
    
Investor Relations
  
CoreLogic    
CoreLogic
  
 415-536-3526      703-610-5410  



(Additional Financial Data Follows)




 
6
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.


($ thousands)
  
3Q10
as adjusted
    
2Q10
as adjusted
    
3Q09
 as adjusted
  
Net Income
   $ (93,415 )   $ 24,410     $ 55,361  
Less:  Discontinued Operations
     0       (24,709 )     (37,620 )
Plus:  Noncontrolling Interests
     10,372       9,035       13,832  
          Income Tax Provision*
     (17,811 )     16,168       11,832  
          Interest Expense, Net
     7,430       9,120       6,827  
          Depreciation & Amortization
     30,317       31,864       44,979  
          Impairment Loss
     174,000       0       0  
          Other Legacy FAC Corporate Costs
     0       29,699       10,647  
          Other Adjustments
     5,062       7,255       2,245  
 
                        
Adjusted EBITDA
   $ 115,956     $ 102,841     $ 108,104  

*Includes income tax provision associated with equity in earnings of affiliates.

 
7
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.

($ thousands)
  
3Q10 as reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                Equity in Earnings        
                 of Affiliates        
Revenue
   $ 484,304     $ 0     $ 22,382     $ 506,686  
Salaries and Benefits
     171,638       (1,741 )     0       169,898  
Other Operating
     224,601       (1,697 )     0       222,905  
Depr. and Amort.
     30,317       0       0       30,317  
Impairment Loss
     174,000       (174,000 )     0       0  
Total Operating exp.
   $ 600,557     $ (177,438 )   $ 0     $ 423,120  
Interest Expense, Net
     7,430       0       0       7,430  
Other Income
     447       1,625       0       2,071  
Pre-tax Income
   $ (123,236 )   $ 179,062     $ 22,382     $ 78,208  
Provision for Income Taxes
     26,764       0       (8,953 )     17,811  
Equity in Earnings of Affiliates, Net of Tax
     13,429       0       (13,429 )     0  
Income from Continuing Operations
   $ (83,043 )   $ 179,062     $ 0     $ 96,019  
Pre-tax margin
  
NM
                       15 %
   + Adj. Interest Exp.
                             7,430  
   + Adj. Depr. and Amort.
                             30,317  
   = Adj. EBITDA
                           $ 115,956  
   Adj. EBITDA Margin
                             23 %
 * Includes severance of $1,741, net realized investment losses, including investment impairment,  
 of $1,625, spin-related costs of $1,697 and goodwill impairment charge totaling $174,000.
  

 
8
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.


($ thousands)
  
 3Q09 as Reported
    
3Q09 Historical
   
3Q09 Reclass. of
     
3Q09 as Adjusted
  
           Corporate Exp. and      Equity in Earnings        
           Other Adjustments*      of Affiliates        
Revenue
   $ 469,796     $ 1,001     $ 20,002     $ 490,799  
Salaries and Benefits
     166,582       (4,890 )     0       161,692  
Other Operating
     227,851       (7,670 )     0       220,181  
Depr. and Amort.
     44,979       (13,127 )     0       31,852  
Total Operating Exp.
   $ 439,412     $ (25,687 )   $ 0     $ 413,725  
Interest Expense, Net
     6,827       (4,329 )     0       2,498  
Other Income
     (154 )     (669 )     0       (822 )
Pre-tax Income
   $ 23,403     $ 30,348     $ 20,002     $ 73,754  
Provision for Income Taxes
     (3,832 )     0       (8,001 )     (11,832 )
Equity in Earnings of Affiliates, Net of Tax
     12,001       0       (12,001 )     0  
Income from Continuing Operations
   $ 31,573     $ 30,348     $ 0     $ 61,921  
Pre-tax Margin
     5 %                     15 %
   + Adj. Interest Exp.
                             2,498  
   + Adj. Depr. and Amort.
                             31,852  
   = Adj. EBITDA
                           $ 108,104  
   Adj. EBITDA Margin
                             22 %
* Includes severance of $1,301, software impairment and facility restructuring of $2,944, net realized gains
 
 of $1,032 and legacy First American Corp. costs of $27,135.  

 
9
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CONSOLIDATED CORELOGIC, INC.


($ thousands)
    2Q10 as Reported    
2Q10 Historical 
   
2Q10 Reclass. of
     
2Q10 as Adjusted
  
           Corporate Exp. and      Equity in Earnings        
           Other Adjustments*      of Affiliates        
Revenue
   $ 468,279     $ (3,315 )   $ 14,097     $ 479,061  
Salaries and Benefits
     165,537       (3,174 )     0       162,363  
Other Operating
     245,433       (30,850 )     0       214,583  
Depr. and Amort.
     31,864       (2,228 )     0       29,636  
Total Operating Exp.
   $ 442,833     $ (36,252 )   $ 0     $ 406,582  
Interest Expense, Net
     9,120       (5,188 )     0       3,932  
Other Income
     (5,520 )     6,245       0       725  
Pre-tax Income
   $ 10,806     $ 44,370     $ 14,097     $ 69,273  
Provision for Income Taxes
     (10,530 )     0       (5,639 )     (16,168 )
Equity in Earnings of Affiliates, Net of Tax
     8,458       0       (8,458 )     0  
Income from Continuing Operations
   $ 8,735     $ 44,370     $ 0     $ 53,105  
Pre-tax Margin
     2 %                     14 %
   + Adj. Interest Exp.
                             3,932  
   + Adj. Depr. and Amort.
                             29,636  
   = Adj. EBITDA
                           $ 102,841  
   Adj. EBITDA Margin
                             21 %
 * Includes severance of $1,105, an adjustment related to sales tax exposure of $4,750, loss  
related to closure of a national joint venture of $1,400 and legacy First American Corp. costs of $37,115.
  


 
10
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR BUSINESS AND INFORMATION SERVICES

($ thousands)
    
3Q10 as Reported
      
3Q10 Adjustments*
    
3Q10 Reclass. of
     
3Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 229,602     $ 0     $ 18,304     $ 247,906  
Salaries and Benefits
     52,050       (1,100 )     0       50,951  
Other Operating
     134,784       0       0       134,784  
Depr. and Amort.
     5,352       0       0       5,352  
Total Operating Exp.
   $ 192,186     $ (1,100 )   $ 0     $ 191,087  
Interest Expense, Net
     (175 )     0       0       (175 )
Other Income
     18,336       0       (18,304 )     32  
Pre-tax Income
   $ 55,926     $ 1,100     $ 0     $ 57,026  
Pre-tax Margin
     24 %                     23 %
   + Adj. interest exp.
                             (175 )
   + Adj. depr. and amort.
                             5,352  
   = Adj. EBITDA
                           $ 62,203  
   Adj. EBITDA Margin
                             25 %
* Includes severance of $1,100.
  


($ thousands)
    
3Q09 as Reported
      
3Q09 Adjustments*
    
3Q09 Reclass. of
     
3Q09 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 227,666     $ 0     $ 17,905     $ 245,571  
Salaries and Benefits
     53,866       (376 )     0       53,490  
Other Operating
     138,885       (60 )     0       138,825  
Depr. and Amort.
     6,601       0       0       6,601  
Total Operating Exp.
   $ 199,353     $ (436 )   $ 0     $ 198,917  
Interest Expense, Net
     (1,814 )     0       0       (1,814 )
Other Income
     17,905       128       (17,905 )     128  
Pre-tax Income
   $ 48,032     $ 564     $ 0     $ 48,596  
Pre-tax Margin
     21 %                     20 %
   + Adj. interest exp.
                             (1,814 )
   + Adj. depr. and amort.
                             6,601  
   = Adj. EBITDA
                           $ 53,384  
   Adj. EBITDA Margin
                             22 %
* Includes severance of $376, asset impairment of $60 and net realized losses of $128.
  


 
11
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR BUSINESS AND INFORMATION SERVICES

($ thousands)
    
2Q10 as Reported
      
2Q10 Adjustments*
    
2Q10 Reclass. of
     
2Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 228,064     $ 0     $ 14,305     $ 242,369  
Salaries and Benefits
     52,647       (29 )     0       52,617  
Other Operating
     131,360       0       0       131,360  
Depr. and Amort.
     5,303       0       0       5,303  
Total Operating Exp.
   $ 189,309     $ (29 )   $ 0     $ 189,280  
Interest Expense, Net
     22       0       0       22  
Other Income
     13,090       1,400       (14,305 )     185  
Pre-tax Income
   $ 51,822     $ 1,429     $ 0     $ 53,252  
Pre-tax Margin
     23 %                     22 %
   + Adj. interest exp.
                             22  
   + Adj. depr. and amort.
                             5,303  
   = Adj. EBITDA
                           $ 58,576  
   Adj. EBITDA Margin
                             24 %
* Includes severance of $29 and loss related to closure of a national joint venture of $1,400.
  



 
12
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DATA AND ANALYTICS

($ thousands)
    
3Q10 as Reported
      
3Q10 Adjustments*
    
3Q10 Reclass. of
     
3Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 183,440     $ 0     $ 4,068     $ 187,508  
Salaries and Benefits
     53,128       (218 )     0       52,910  
Other Operating
     78,122       0       0       78,122  
Depr. and Amort.
     13,386       0       0       13,386  
Total Operating Exp.
   $ 144,635     $ (218 )   $ 0     $ 144,418  
Interest Expense, Net
     46       0       0       46  
Other Income
     3,686       0       (4,068 )     (382 )
Pre-tax Income
   $ 42,445     $ 218     $ 0     $ 42,662  
Pre-tax Margin
     23 %                     23 %
   + Adj. interest exp.
                             46  
   + Adj. depr. and amort.
                             13,386  
   = Adj. EBITDA
                           $ 56,094  
   Adj. EBITDA Margin
                             30 %
* Includes severance of $218.
  

($ thousands)
    
3Q09 as Reported
      
3Q09 Adjustments*
    
3Q09 Reclass. of
      
3Q09 as Adjusted
  
                  Equity in Earnings        
                 of Affiliates        
Revenue
   $ 166,909     $ 0     $ 2,552     $ 169,461  
Salaries and Benefits
     53,862       (685 )     0       53,177  
Other Operating
     67,758       (316 )     0       67,442  
Depr. and Amort.
     14,065       (968 )     0       13,097  
Total Operating Exp.
   $ 135,685     $ (1,969 )   $ 0     $ 133,716  
Interest Expense, Net
     576       0       0       576  
Other Income
     3,825       (1,210 )     (2,552 )     64  
Pre-tax Income
   $ 34,473     $ 759     $ 0     $ 35,233  
Pre-tax Margin
     21 %                     21 %
   + Adj. interest exp.
                             576  
   + Adj. depr. and amort.
                             13,097  
   = Adj. EBITDA
                           $ 48,906  
   Adj. EBITDA Margin
                             29 %
* Includes severance of $685, software impairments of $1,284 and net realized gains of $1,210.
  


 
13
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DATA AND ANALYTICS

($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of
   
2Q10 as Adjusted
  
                      Equity in Earnings            
                      of Affiliates           
Revenue
   $ 178,331     $ 0     $ 1,496     $ 179,827  
Salaries and Benefits
     53,239       (134 )     0       53,105  
Other Operating
     77,753       0       0       77,753  
Depr. and Amort.
     13,249       0       0       13,249  
Total Operating Exp.
   $ 144,242     $ (134 )   $ 0     $ 144,108  
Interest Expense, Net
     404       0       0       404  
Other Income
     1,496       0       (1,496 )     0  
Pre-tax Income
   $ 35,181     $ 134     $ 0     $ 35,316  
Pre-tax Margin
     20 %                     20 %
   + Adj. interest exp.
                             404  
   + Adj. depr. and amort.
                             13,249  
   = Adj. EBITDA
                           $ 48,969  
   Adj. EBITDA Margin
                             27 %
* Includes severance of $134.
  




 
14
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR EMPLOYER, LEGAL AND MARKETING SERVICES

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
    
3Q10 as Adjusted
  
                  Equity in Earnings        
                 of Affiliates        
Revenue
   $ 77,857     $ 0     $ (78 )   $ 77,779  
Salaries and Benefits
     26,510       (3 )     0       26,507  
Other Operating
     40,537       0       0       40,537  
Depr. and Amort.
     5,688       0       0       5,688  
Impairment Loss
     174,000       (174,000 )     0       0  
Total Operating Exp.
   $ 246,735     $ (174,003 )   $ 0     $ 72,732  
Interest Expense, Net
     (43 )     0       0       (43 )
Other Income
     (1,703 )     1,625       78       0  
Pre-tax Income
   $ (170,538 )   $ 175,628     $ 0     $ 5,090  
Pre-tax Margin
  
NM
                       7 %
   + Adj. interest exp.
                             (43 )
   + Adj. depr. and amort.
                             5,688  
   = Adj. EBITDA
                           $ 10,735  
   Adj. EBITDA Margin
                             14 %
* Includes severance of $3, net realized investment losses, including investment impairment, of $1,625 and
 
 goodwill impairment charge totaling $174,000.  

($ thousands)
  
3Q09 as Reported
    
3Q09 Adjustments*
    
3Q09 Reclass. of
   
3Q09 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 69,666     $ 0     $ 0     $ 69,666  
Salaries and Benefits
     24,355       (156 )     0       24,199  
Other Operating
     34,763       0       0       34,763  
Depr. and Amort.
     6,044       0       0       6,044  
Total Operating Exp.
   $ 65,162     $ (156 )   $ 0     $ 65,007  
Interest Expense, Net
     (157 )     0       0       (157 )
Other Income
     0       49       0       49  
Pre-tax Income
   $ 4,661     $ 205     $ 0     $ 4,866  
Pre-tax Margin
     7 %                     7 %
   + Adj. interest exp.
                             (157 )
   + Adj. depr. and amort.
                             6,044  
   = Adj. EBITDA
                           $ 10,754  
   Adj. EBITDA Margin
                             15 %
* Includes severance of $156 and net realized losses of $49.
  



 
15
 
 





RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR EMPLOYER, LEGAL AND MARKETING SERVICES


($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of
   
2Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 66,113     $ 0     $ (104 )   $ 66,009  
Salaries and Benefits
     24,524       (76 )     0       24,448  
Other Operating
     39,385       (4,750 )     0       34,635  
Depr. and Amort.
     5,689       0       0       5,689  
Total Operating Exp.
   $ 69,597     $ (4,826 )   $ 0     $ 64,772  
Interest Expense, Net
     (14 )     0       0       (14 )
Other Income
     (104 )     0       104       0  
Pre-tax Income
   $ (3,574 )   $ 4,826     $ 0     $ 1,252  
Pre-tax Margin
  
NM
                       2 %
   + Adj. interest exp.
                             (14 )
   + Adj. depr. and amort.
                             5,689  
   = Adj. EBITDA
                           $ 6,926  
   Adj. EBITDA Margin
                             10 %
* Includes severance of $76 and historical sales tax exposure of $4,750.
  


 
16
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CORPORATE

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates**        
Revenue
   $ (6,595 )   $ 0     $ 89     $ (6,506 )
Salaries and Benefits
     39,950       (421 )     0       39,530  
Other Operating
     (28,842 )     (1,697 )     0       (30,538 )
Depr. and Amort.
     5,891       0       0       5,891  
Total Operating Exp.
   $ 17,000     $ (2,117 )   $ 0     $ 14,883  
Interest Expense, Net
     7,602       0       0       7,602  
Other Income
     (19,872 )     0       22,293       2,421  
Pre-tax Income
   $ (51,069 )   $ 2,117     $ 22,382     $ (26,570 )
Pre-tax Margin
     N/M                       N/M  
   + Adj. interest exp.
                             7,602  
   + Adj. depr. and amort.
                             5,891  
   = Adj. EBITDA
                           $ (13,076 )
   Adj. EBITDA Margin
                             N/M  
* Includes severance of $421 and spin-related costs of $1,697.
** Includes reclassification of equity in earnings.
  

($ thousands)
  
3Q09 as Reported
    
3Q09 Historical
   
3Q09 Reclass. of
   
3Q09 as Adjusted
  
           Corp. Expense and      Equity in Earnings        
           Other Adjustments*      of Affiliates**        
Revenue
   $ 5,554     $ 1,001     $ (454 )   $ 6,101  
Salaries and Benefits
     34,499       (3,673 )     0       30,826  
Other Operating
     (13,555 )     (7,294 )     0       (20,849 )
Depr. and Amort.
     18,269       (12,159 )     0       6,109  
Total Operating Exp.
   $ 39,212     $ (23,127 )   $ 0     $ 16,086  
Interest Expense, Net
     8,222       (4,329 )     0       3,893  
Other Income
     (21,884 )     364       20,456       (1,064 )
Pre-tax Income
   $ (63,764 )   $ 28,820     $ 20,002     $ (14,941 )
Pre-tax Margin
     N/M                       N/M  
   + Adj. interest exp.
                             3,893  
   + Adj. depr. and amort.
                             6,109  
   = Adj. EBITDA
                           $ (4,939 )
   Adj. EBITDA Margin
                             N/M  
* Includes severance of $84, facility restructuring of $1,600 and legacy First American Corp. costs of $27,135.
** Includes reclassification of equity in earnings.
  


 
17
 


RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR CORPORATE

($ thousands)
  
2Q10 as Reported
    
2Q10 Historical d
   
2Q10 Reclass. of
   
2Q10 as Adjusted
  
           Corp. Expense an      Equity in Earnings        
           Other Adjustments*      of Affiliates**        
Revenue
   $ (4,229 )   $ (3,315 )   $ (1,600 )   $ (9,144 )
Salaries and Benefits
     35,127       (2,934 )     0       32,192  
Other Operating
     (3,065 )     (26,100 )     0       (29,165 )
Depr. and Amort.
     7,623       (2,228 )     0       5,395  
Total Operating Exp.
   $ 39,685     $ (31,262 )   $ 0     $ 8,423  
Interest Expense, Net
     8,708       (5,188 )     0       3,520  
Other Income
     (20,001 )     4,845       15,697       541  
Pre-tax Income
   $ (72,623 )   $ 37,980     $ 14,097     $ (20,546 )
Pre-tax Margin
     N/M                       N/M  
   + Adj. interest exp.
                             3,520  
   + Adj. depr. and amort.
                             5,395  
   = Adj. EBITDA
                           $ (11,631 )
   Adj. EBITDA Margin
                             N/M  
* Includes severance of $865 and legacy First American Corp. costs of $37,115.
** Includes reclassification of equity in earnings.
  


 
18
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR MORTGAGE ORIGINATION SERVICES GROUP

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 119,511     $ 0     $ 18,183     $ 137,694  
Salaries and Benefits
     37,461       (998 )     0       36,463  
Other Operating
     59,773       0       0       59,773  
Depr. and Amort.
     3,793       0       0       3,793  
Total Operating Exp.
   $ 101,027     $ (998 )   $ 0     $ 100,029  
Interest Expense, Net
     (174 )     0       0       (174 )
Other Income
     18,215       0       (18,183 )     32  
Pre-tax Income
   $ 36,874     $ 998     $ 0     $ 37,871  
Pre-tax Margin
     31 %                     28 %
   + Adj. interest exp.
                             (174 )
   + Adj. depr. and amort.
                             3,793  
   = Adj. EBITDA
                           $ 41,490  
   Adj. EBITDA Margin
                             30 %
* Includes severance of $998.
  

($ thousands)
  
3Q09 as Reported
    
3Q09 Adjustments*
    
3Q09 Reclass. of
   
3Q09 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 119,770     $ 0     $ 17,796     $ 137,566  
Salaries and Benefits
     39,402       (258 )     0       39,144  
Other Operating
     63,286       (60 )     0       63,226  
Depr. and Amort.
     4,686       0       0       4,686  
Total Operating Exp.
   $ 107,374     $ (318 )   $ 0     $ 107,056  
Interest Expense, Net
     (1,817 )     0       0       (1,817 )
Other Income
     17,796       118       (17,796 )     118  
Pre-tax Income
   $ 32,010     $ 436     $ 0     $ 32,445  
Pre-tax Margin
     27 %                     24 %
   + Adj. interest exp.
                             (1,817 )
   + Adj. depr. and amort.
                             4,686  
   = Adj. EBITDA
                           $ 35,314  
   Adj. EBITDA Margin
                             26 %
* Includes severance of $258, asset write-offs of $60 and net realized losses of $118.
  


 
19
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR MORTGAGE ORIGINATION SERVICES GROUP

($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of
    
2Q10 as Adjusted
  
                  Equity in Earnings        
                 of Affiliates        
Revenue
   $ 116,473     $ 0     $ 13,971     $ 130,444  
Salaries and Benefits
     39,626       (11 )     0       39,615  
Other Operating
     58,772       0       0       58,772  
Depr. and Amort.
     3,692       0       0       3,692  
Total Operating Exp.
   $ 102,090     $ (11 )   $ 0     $ 102,079  
Interest Expense, Net
     23       0       0       23  
Other Income
     12,756       1,400       (13,971 )     185  
Pre-tax Income
   $ 27,116     $ 1,411     $ 0     $ 28,527  
Pre-tax Margin
     23 %                     22 %
   + Adj. interest exp.
                             23  
   + Adj. depr. and amort.
                             3,692  
   = Adj. EBITDA
                           $ 32,242  
   Adj. EBITDA Margin
                             25 %
* Includes severance of $11 and loss related to closure of national joint venture of $1,400.
  


 
20
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DEFAULT AND TECHNOLOGY SERVICES GROUP

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 110,091     $ 0     $ 120     $ 110,211  
Salaries and Benefits
     14,589       (102 )     0       14,487  
Other Operating
     75,011       0       0       75,011  
Depr. and Amort.
     1,559       0       0       1,559  
Total Operating Exp.
   $ 91,159     $ (102 )   $ 0     $ 91,057  
Interest Expense, Net
     0       0       0       0  
Other Income
     120       0       (120 )     0  
Pre-tax Income
   $ 19,052     $ 102     $ 0     $ 19,154  
Pre-tax Margin
     17 %                     17 %
   + Adj. interest exp.
                             0  
   + Adj. depr. and amort.
                             1,559  
   = Adj. EBITDA
                           $ 20,713  
   Adj. EBITDA Margin
                             19 %
* Includes severance of $102.
  

($ thousands)
  
3Q09 as Reported
    
3Q09 Adjustments*
    
3Q09 Reclass. of
   
3Q09 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 107,896     $ 0     $ 109     $ 108,005  
Salaries and Benefits
     14,465       (118 )     0       14,346  
Other Operating
     75,599       0       0       75,599  
Depr. and Amort.
     1,915       0       0       1,915  
Total Operating Exp.
   $ 91,979     $ (118 )   $ 0     $ 91,861  
Interest Expense, Net
     3       0       0       3  
Other Income
     109       10       (109 )     10  
Pre-tax Income
   $ 16,023     $ 128     $ 0     $ 16,151  
Pre-tax Margin
     15 %                     15 %
   + Adj. interest exp.
                             3  
   + Adj. depr. and amort.
                             1,915  
   = Adj. EBITDA
                           $ 18,069  
   Adj. EBITDA Margin
                             17 %
* Includes severance of $118 and net realized losses of $10.
  


 
21
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR DEFAULT AND TECHNOLOGY SERVICES GROUP

($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of
   
2Q10 as Adjusted
  
                 Equity in Earnings        
                 of Affiliates        
Revenue
   $ 111,590     $ 0     $ 334     $ 111,924  
Salaries and Benefits
     13,021       (18 )     0       13,002  
Other Operating
     72,588       0       0       72,588  
Depr. and Amort.
     1,610       0       0       1,610  
Total Operating Exp.
   $ 87,219     $ (18 )   $ 0     $ 87,200  
Interest Expense, Net
     0       0       0       0  
Other Income
     334       0       (334 )     0  
Pre-tax Income
   $ 24,706     $ 18     $ 0     $ 24,725  
Pre-tax Margin
     22 %                     22 %
   + Adj. interest exp.
                             0  
   + Adj. depr. and amort.
                             1,610  
   = Adj. EBITDA
                           $ 26,334  
   Adj. EBITDA Margin
                             24 %
* Includes severance of $18.
  


 
22
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR RISK AND FRAUD ANALYTICS GROUP

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                      Equity in Earnings            
                      of Affiliates           
Revenue
   $ 101,270     $ 0     $ 2,200     $ 103,470  
Salaries and Benefits
     35,117       (18 )     0       35,099  
Other Operating
     32,969       0       0       32,969  
Depr. and Amort.
     10,310       0       0       10,310  
Total Operating Exp.
   $ 78,396     $ (18 )   $ 0     $ 78,378  
Interest Expense, Net
     29       0       0       29  
Other Income
     1,818       0       (2,200 )     (382 )
Pre-tax Income
   $ 24,662     $ 18     $ 0     $ 24,680  
Pre-tax Margin
     24 %                     24 %
   + Adj. interest exp.
                             29  
   + Adj. depr. and amort.
                             10,310  
   = Adj. EBITDA
                           $ 35,020  
   Adj. EBITDA Margin
                             34 %
* Includes severance of $18.
  

($ thousands)
  
3Q09 as Reported
    
3Q09 Adjustments*
    
3Q09 Reclass. of 
   
3Q09 as Adjusted
  
                      Equity in Earnings          
                      of Affiliates           
Revenue
   $ 95,414     $ 0     $ 373     $ 95,786  
Salaries and Benefits
     34,478       (3 )     0       34,475  
Other Operating
     31,984       (316 )     0       31,668  
Depr. and Amort.
     10,892       (968 )     0       9,924  
Total Operating Exp.
   $ 77,354     $ (1,287 )   $ 0     $ 76,067  
Interest Expense, Net
     576       0       0       576  
Other Income
     2,385       (1,949 )     (373 )     63  
Pre-tax Income
   $ 19,869     $ (662 )   $ 0     $ 19,207  
Pre-tax Margin
     21 %                     20 %
   + Adj. interest exp.
                             576  
   + Adj. depr. and amort.
                             9,924  
   = Adj. EBITDA
                           $ 29,706  
   Adj. EBITDA Margin
                             31 %
* Includes severance of $3, software impairment of $1,284 and net realized gains of $1,949.
  


 
23
 
 


RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR RISK AND FRAUD ANALYTICS GROUP

($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of 
   
2Q10 as Adjusted
  
                      Equity in Earnings           
                      of Affiliates           
Revenue
   $ 101,292     $ 0     $ 869     $ 102,161  
Salaries and Benefits
     35,216       (7 )     0       35,209  
Other Operating
     34,141       0       0       34,141  
Depr. and Amort.
     10,253       0       0       10,253  
Total Operating Exp.
   $ 79,610     $ (7 )   $ 0     $ 79,604  
Interest Expense, Net
     382       0       0       382  
Other Income
     869       0       (869 )     0  
Pre-tax Income
   $ 22,169     $ 7     $ 0     $ 22,175  
Pre-tax Margin
     22 %                     22 %
   + Adj. interest exp.
                             382  
   + Adj. depr. and amort.
                             10,253  
   = Adj. EBITDA
                           $ 32,811  
   Adj. EBITDA Margin
                             32 %
* Includes severance of $7.
  


 
24
 
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR SPECIALTY FINANCE SOUTIONS GROUP

($ thousands)
  
3Q10 as Reported
    
3Q10 Adjustments*
    
3Q10 Reclass. of
   
3Q10 as Adjusted
  
                      Equity in Earnings            
                      of Affiliates           
Revenue
   $ 82,171     $ 0     $ 1,867     $ 84,038  
Salaries and Benefits
     18,011       (199 )     0       17,811  
Other Operating
     45,153       0       0       45,153  
Depr. and Amort.
     3,075       0       0       3,075  
Total Operating Exp.
   $ 66,239     $ (199 )   $ 0     $ 66,040  
Interest Expense, Net
     16       0       0       16  
Other Income
     1,867       0       (1,867 )     0  
Pre-tax Income
   $ 17,782     $ 199     $ 0     $ 17,982  
Pre-tax Margin
     22 %                     21 %
   + Adj. interest exp.
                             16  
   + Adj. depr. and amort.
                             3,075  
   = Adj. EBITDA
                           $ 21,073  
   Adj. EBITDA Margin
                             25 %
* Includes severance of $199.
  

($ thousands)
  
3Q09 as Reported
    
3Q09 Adjustments*
    
3Q09 Reclass. of
   
3Q09 as Adjusted
  
                      Equity in Earnings          
                      of Affiliates           
Revenue
   $ 71,495     $ 0     $ 2,179     $ 73,674  
Salaries and Benefits
     19,384       (682 )     0       18,702  
Other Operating
     35,774       0       0       35,774  
Depr. and Amort.
     3,173       0       0       3,173  
Total Operating Exp.
   $ 58,331     $ (682 )   $ 0     $ 57,649  
Interest Expense, Net
     0       0       0       0  
Other Income
     1,440       740       (2,179 )     1  
Pre-tax Income
   $ 14,605     $ 1,422     $ 0     $ 16,026  
Pre-tax Margin
     20 %                     22 %
   + Adj. interest exp.
                             0  
   + Adj. depr. and amort.
                             3,173  
   = Adj. EBITDA
                           $ 19,200  
   Adj. EBITDA Margin
                             26 %
* Includes severance of $682 and net realized investment losses of $740.
  


 
25
 



RECONCILIATION OF AS REPORTED TO AS ADJUSTED FINANCIAL RESULTS FOR SPECIALTY FINANCE SOUTIONS GROUP

($ thousands)
  
2Q10 as Reported
    
2Q10 Adjustments*
    
2Q10 Reclass. of
   
2Q10 as Adjusted
  
                      Equity in Earnings            
                      of Affiliates           
Revenue
   $ 77,039     $ 0     $ 627     $ 77,666  
Salaries and Benefits
     18,024       (128 )     0       17,896  
Other Operating
     43,612       0       0       43,612  
Depr. and Amort.
     2,996       0       0       2,996  
Total Operating Exp.
   $ 64,632     $ (128 )   $ 0     $ 64,504  
Interest Expense, Net
     22       0       0       22  
Other Income
     627       0       (627 )     0  
Pre-tax Income
   $ 13,012     $ 128     $ 0     $ 13,140  
Pre-tax Margin
     17 %                     17 %
   + Adj. interest exp.
                             22  
   + Adj. depr. and amort.
                             2,996  
   = Adj. EBITDA
                           $ 16,158  
   Adj. EBITDA Margin
                             21 %
* Includes severance of $128.
  


 
26
 


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