Third Quarter Financial Results 2018

Transcription

1 Third Quarter Financial Results 2018 October 24, 2018

2 Safe Harbor / Forward Looking Statements Certain statements made in this presentation are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the Company s overall financial performance and the proposed acquisition of Symbility, including projected scaling of the insurance vertical, international operations, diversified revenue mix, introduction of new mobile applications and software solutions, and the timing and impact of revenue and cost synergies. Forward-looking statements also include statements related intent to expand certain efficiency and infrastructure enhancements together with projected increases to overall margins, transformation of technology and data platforms, consolidation of real estate footprint, reduction in SG&A costs, and the automation and/or outsourcing of business activities. 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. These additional risks and uncertainties include but are not limited to: our ability to protect our information systems against data corruption, cyber-based attacks or network security breaches; 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; systems interruptions that may impair the delivery of our products and services; difficult conditions in the mortgage and consumer lending industries and the economy generally; our ability to protect proprietary rights; our technology 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 operations or 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. 2

3 Q Financial Summary Revenues of $452 million were down 6% reflecting the estimated impact of a greater than 15% decline in U.S. mortgage origination unit volumes which more than offset organic growth in the Property Intelligence & Risk Management (PIRM) segment and market outperformance in the Underwriting & Workflow Solutions (UWS) segment. Operating income totaled $60 million compared with $62 million in the prior year as a 7% reduction in operating expenses largely offset the impact of lower U.S. mortgage market volumes. Net income from continuing operations decreased $8 million to $23 million after reflecting a $13 million one-time transition tax for certain foreign earnings in connection with the Tax Cuts and Job Act (TCJA). Diluted EPS from continuing operations were $0.27 compared with $0.36 in the prior year. Adjusted EPS totaled $0.72, in-line with Adjusted EBITDA totaled $128 million, 7% below prior year as organic growth and cost productivity were offset by the impact of lower market volumes. Adjusted EBITDA margin was 28%, largely in-line with A total of 479,000 common shares were repurchased in the third quarter (1.8 million repurchased year-to-date). Company to acquire full ownership of Symbility Solutions, Inc. (Symbility), further scaling its insurance vertical and international operations. 3

4 Financial Highlights ($ in millions, except EPS) Q Q Q Rev enue Operating Income Adjusted EPS 1 $ 0.72 $ 1.00 $ 0.72 (1) Adjusted EPS is a non-gaap financial measure. For a reconciliation to the most directly comparable GAAP measure, see the reconciliation included in the appendix. 4

5 Segment Results ($ in millions) Q Q Q Property Intelligence & Risk Management Solutions Underwriting & Workflow Solutions Corporate & Elminations (2.5) (2.5) (2.6) 4 Revenue Property Intelligence & Risk Management Solutions Underwriting & Workflow Solutions Corporate & Elminations (5.8) (5.2) (9.1) 1 8 Adjusted EBITDA Property Intelligence & Risk Management Solutions 29.9% 32.6% 31.5% 10 Underwriting & Workflow Solutions 29.2% 33.9% 29.8% 11 Corporate & Elminations N/M N/M N/M 2 12 Adjusted EBITDA Margin 28.4% 32.5% 28.7% (1) Adjusted EBITDA is a non-gaap financial measure. For a reconciliation to the most directly comparable GAAP measures, see the reconciliations included in the appendix. (2) Adjusted EBITDA margin represents the ratio of adjusted EBITDA to revenue for a given quarter, each as defined in the company s most recent quarterly earnings release. 5

6 Free Cash Flow Conversion 1 (2011 Q3 2018) 75% Free Cash Flow Conversion 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% Q3'18 LTM (1) Free cash flow conversion represents the ratio of free cash flow to adjusted EBITDA for a given quarter, each as defined in the company s most recent quarterly earnings release. 6

7 Capital Returned 1 (2011 Q3 2018) Total Capital Returned ($M) Prior Cumulative Periodic 1,265 1,352 1, YTD (1) Prior period capital return in FY2011 contains capital return in FY

8 Appendix 8

9 CoreLogic Consolidated Historical Results ($ in millions, unaudited) Q Q Q Q Q Q Q Q Q Q Q Q Net Income/(Loss) from Continuing Operations $ 38.1 $ 27.5 $ 40.4 $ 36.0 $ 6.0 $ 12.7 $ 41.2 $ 30.8 $ 64.8 $ 28.4 $ 58.5 $ 22.5 Income Taxes (18.6) (0.6) Share-based Compensation Non-Operating (Gains)/Losses (35.5) (1.9) (2.4) (1.0) (2.0) 0.9 (2.8) (1.4) Efficiency Investments (0.0) Transaction Costs Depreciation and Amortization Impairment Loss Interest Expense Amortization of Acquired Software (Equity in earnings of Affliates) Adjusted EBITDA $ 87.8 $ $ $ $ $ 90.0 $ $ $ $ $ $

10 Property Intelligence & Risk Management Historical Results ($ in millions, unaudited) Q Q Q Q Q Q Q Q Q Q Q Q Net Income/(Loss) from Continuing Operations $ 18.9 $ 16.8 $ 30.7 $ 27.9 $ 30.0 $ 14.8 $ 31.5 $ 12.7 $ 28.0 $ 20.7 $ 32.3 $ 24.2 Share-based Compensation Non-Operating (Gains)/Losses (1.1) - (7.5) (4.8) 0.5 (2.7) (1.7) Efficiency Investments Transaction Costs Depreciation and Amortization Interest Expense Amortization of Acquired Software (Equity in earnings of Affliates) Adjusted EBITDA $ 47.3 $ 46.7 $ 58.3 $ 56.4 $ 50.5 $ 41.7 $ 58.3 $ 57.0 $ 50.2 $ 49.7 $ 59.6 $

11 Underwriting & Workflow Solutions Historical Results ($ in millions, unaudited) Q Q Q Q Q Q Q Q Q Q Q Q Net Income/(Loss) from Continuing Operations $ 36.4 $ 52.8 $ 68.7 $ 77.2 $ 39.0 $ 36.2 $ 60.5 $ 71.5 $ 54.8 $ 47.8 $ 85.9 $ 61.6 Share-based Compensation Non-Operating (Gains)/Losses Efficiency Investments Transaction Costs Depreciation and Amortization Impairment Loss Interest Expense Amortization of Acquired Software (Equity in earnings of Affliates) Adjusted EBITDA $ 50.2 $ 65.7 $ 87.2 $ 95.8 $ 76.0 $ 54.0 $ 83.1 $ 90.8 $ 72.1 $ 65.1 $ $

12 Corporate & Eliminations Historical Results ($ in millions, unaudited) Q Q Q Q Q Q Q Q Q Q Q Q Net Income/(Loss) from Continuing Operations $ (17.1) $ (42.1) $ (59.0) $ (69.1) $ (63.0) $ (38.2) $ (50.8) $ (53.4) $ (18.0) $ (40.1) $ (59.6) $ (63.3) Income Taxes (18.6) (0.6) Share-based Compensation Non-Operating (Gains)/Losses (35.5) (3.0) (1.3) (1.4) (0.1) 0.3 Efficiency Investments (0.0) Transaction Costs (0.1) Depreciation and Amortization Interest Expense Adjusted EBITDA $ (9.7) $ (5.6) $ (9.1) $ (8.9) $ (10.4) $ (5.8) $ (6.6) $ (9.1) $ (5.6) $ (11.4) $ (5.2) $ (5.8) 12

13 Reconciliation of Adjusted EPS Historical Results ($ in millions) Q Q Q Q Q Q Q Q Q Q Q Q Net Income/(Loss) from Continuing Operations $ 0.42 $ 0.31 $ 0.45 $ 0.40 $ 0.07 $ 0.15 $ 0.48 $ 0.36 $ 0.78 $ 0.34 $ 0.71 $ 0.27 Share-based Compensation Non-Operating (Gains)/Losses (0.40) (0.02) (0.03) (0.01) (0.02) 0.01 (0.03) (0.02) Efficiency Investments Transaction Costs Depreciation and Amortization Amortization of Acquired Software (Equity in earnings of Affliates) Impairment Loss Income Tax Effect (0.04) (0.10) (0.13) (0.23) (0.26) (0.14) (0.15) (0.25) (0.53) (0.18) (0.13) - 1 Adjusted EPS $ 0.35 $ 0.48 $ 0.65 $ 0.73 $ 0.56 $ 0.37 $ 0.72 $ 0.72 $ 0.55 $ 0.52 $ 1.00 $ 0.72 (1) Reflects the income tax effect on adjustments and the differential impact on assumed tax rate and effective tax rate. 13