First Quarter Financial Results 2018

Transcription

1 First Quarter Financial Results 2018 April 25, 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 productivity excellence, the Company's overall financial performance, including future revenue, adjusted EBITDA and adjusted EPS growth, and the Company's margin, tax rate and cash flow profile; and the Company's plans to continue to return capital to shareholders through the 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. 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 Q118 Financial Summary Revenues of $445 million were up 1% led by growth across the Property Intelligence & Risk Management (PIRM) segment and market outperformance by the Underwriting & Workflow Solutions (UWS) segment which largely offset the impact of an estimated 10% decline in U.S. mortgage origination unit volumes. Operating income from continuing operations rose 36% to $44 million attributable to productivity and cost management program benefits as well as the positive effects of revenue growth and favorable business mix. Net income from continuing operations increased $16 million, or 123%, to $28 million. Diluted EPS from continuing operations was up 127% to $0.34. Adjusted EPS totaled $0.52 per share, up 41%. Adjusted EBITDA rose 15% to $103 million. Adjusted EBITDA margin was up 280 basis points to 23%. The Company completed the acquisition of etech Solutions and repurchased 400,000 of its common shares. 3

4 Financial Highlights ($ in millions, except EPS) Q Q Q Rev enue Operating Income Adjusted EPS $ 0.52 $ 0.55 $ 0.37 (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 (2.3) (2.2) (2.1) 4 Revenue Property Intelligence & Risk Management Solutions Underwriting & Workflow Solutions Corporate & Elminations (11.4) (5.6) (5.8) 1 8 Adjusted EBITDA Property Intelligence & Risk Management Solutions 28.6% 27.8% 25.2% 10 Underwriting & Workflow Solutions 23.8% 26.1% 19.6% 11 Corporate & Elminations N/M N/M N/M 2 12 Adjusted EBITDA Margin 23.2% 25.7% 20.5% (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 Q1 2018) 75% Free Cash Flow Conversion 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% Q1'18 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 Q1 2018) Total Capital Returned ($M) Prior Cumulative Periodic 1,265 1,284 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 Income Taxes (18.6) (0.6) Stock-based Compensation Non-Operating (Gains)/Losses and Other (35.5) (1.9) (2.4) (1.0) (2.0) 0.9 Efficiency Investments (0.0) Transactional 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 Stock-based Compensation Non-Operating (Gains)/Losses and Other (1.1) - (7.5) (4.8) 0.5 Efficiency Investments Transactional Costs Depreciation and Amortization Interest Expense Amortization of Acquired Software (Equity in earnings of Affliates) Adjusted EBITDA $ 54.5 $ 52.8 $ 47.3 $ 46.7 $ 58.3 $ 56.4 $ 50.5 $ 41.7 $ 58.3 $ 57.0 $ 50.2 $

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 Stock-based Compensation Non-Operating (Gains)/Losses and Other Efficiency Investments Transactional Costs Depreciation and Amortization Impairment Loss Interest Expense Amortization of Acquired Software (Equity in earnings of Affliates) Adjusted EBITDA $ 73.1 $ 73.1 $ 50.2 $ 65.7 $ 87.2 $ 95.8 $ 76.0 $ 54.0 $ 83.1 $ 90.8 $ 72.1 $

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 $ (56.2) $ (60.7) $ (17.1) $ (42.1) $ (59.0) $ (69.1) $ (63.0) $ (38.2) $ (50.8) $ (53.4) $ (18.0) $ (40.1) Income Taxes (18.6) (0.6) Stock-based Compensation Non-Operating (Gains)/Losses and Other (35.5) (3.0) (1.3) (1.4) Efficiency Investments (0.0) Transactional Costs (0.1) Depreciation and Amortization Interest Expense Adjusted EBITDA $ (9.5) $ (9.2) $ (9.7) $ (5.6) $ (9.1) $ (8.9) $ (10.4) $ (5.8) $ (6.6) $ (9.1) $ (5.6) $ (11.4) 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 $ 0.36 $ 0.31 $ 0.42 $ 0.31 $ 0.45 $ 0.40 $ 0.07 $ 0.15 $ 0.48 $ 0.36 $ 0.78 $ 0.34 Stock-based Compensation Non-Operating (Gains)/Losses and Other (0.40) (0.02) (0.03) (0.01) (0.02) 0.01 Efficiency Investments Transactional Costs Depreciation and Amortization Amortization of Acquired Software (Equity in earnings of Affliates) Impairment Loss Income Tax Effect (0.10) (0.03) (0.06) (0.10) (0.13) (0.23) (0.26) (0.14) (0.15) (0.25) (0.53) (0.18) Adjusted EPS $ 0.55 $ 0.54 $ 0.35 $ 0.48 $ 0.65 $ 0.73 $ 0.56 $ 0.37 $ 0.72 $ 0.72 $ 0.55 $ 0.52 (1) Reflects the income tax effect on adjustments and the differential impact on assumed tax rate and effective tax rate. 13