) reported fourth quarter adjusted earnings of 36 cents per
share, surpassing the Zacks Consensus Estimate of 32 cents.
Results also exceeded the year-ago quarter's earnings by 140%.
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The solid performance came on back of increase in revenue, profit
margins and share repurchases.
Including one-time impairment charges associated with facility
consolidations of $14.2 million, one-time investments in
improving operating efficiency and the review of strategic
alternatives of $7.1 million, and Project-30 related severance of
$6.2 million, loss from discontinued operations of $3.1 million
and loss from sale of discontinued operations of $5.4 million,
CoreLogic reported net income of 15 cents per share rebounding
from a net loss of 21 cents per share in the year-ago quarter.
Quarterly Operational Update
Operating revenues increased 18.8% year over year to $410.4
million in the fourth quarter, driven by solid contribution from
Mortgage Origination Services segment (up 37.6% year over year)
and Data & Analytics segment revenue (up 12.3% year over
year). It surpassed the Zacks Consensus Estimate of $387 million.
Total operating expenses in the quarter increased 9.8% year over
year to $362.3 million. The increase was driven by higher cost of
services (up 14.9% year over year) and depreciation and
amortization (up 28.3% year over year).
The magnitude of increase in revenues more than offset the
magnitude of increase in expenses, thus driving up operating
income 211.5% year over year to $48.1 million.
Adjusted earnings before interest tax, depreciation and
amortization (EBITDA) increased 49.5% year over year to $106.4
Quarterly Segment Update
Data & Analytics
segment revenues increased 12.3% year over year to $162.4
million, primarily due to higher demand for property-related
information and analytics as well as advisory services related to
assisting clients with regulatory compliance
Adjusted EBITDA of $43.3 million were up 4.8% year over year.
Mortgage Origination Services
segment revenues increased 32.7% year over year to $176.4
million, due to increased market demand for credit and tax
services and flood certifications, market-share gains and
improved pricing in certain product lines.
Adjusted EBITDA of $68.4 million were up 55.5% year over year.
Asset Management & Processing Services
segment revenues decreased 2.1% year over year to $77.2 million,
due to lower field services revenues, partially offset by growth
in loss mitigation and collateral solutions revenues.
Adjusted EBITDA of $9.7 million were up 4.6% year over year.
Full Year Highlights
In 2012, the company reported adjusted earnings of $1.58 per
share, up 116.4% year over year.
CoreLogic reported net income of $1.09 per share in 2012,
rebounding from a loss of 68 cents in 2011.
Operating revenues for full year 2012 increased 17.1% year over
year to $1.6 billion.
Adjusted EBITDA increased 54.5% year over year to $450.5 million.
Cost Reduction Programs
Cost reductions related to the Company's previously announced
Project 30 program were approximately $62.2 million in 2012.
In 2012, CoreLogic launched the Technology Transformation
Initiative (TTI), an expansion and extension of Project 30, a
cost saving program related to workforce reductions in corporate
shared services and information technology (IT), outsourcing of
certain IT and business process functions and cuts in spending on
real estate and outside services. TTI was launched to provide a
new platform to the Company's existing technology infrastructure.
This is expected to augment the functionality and performance of
CoreLogic and reduce application management and development
costs. TTI implementation charges were $10.8 million and $33.2
million, in the fourth quarter and full year 2012 respectively.
In 2012, the company repurchased 10 million common shares for a
total of $226.6 million.
In Dec 2012, the board of directors approved a new share buyback
program which enables it to repurchase up to $250 million worth
of shares. The new program replaced the previous one which had
$156 million remaining under its authorization
CoreLogic exited 2012 with cash and cash equivalents of $148.9
million, down 42.6% year over year.
Net cash flow from operating activities increased 111.1% year
over year to $362.3 million.
Free cash flow in for the full year 2012 was $277.8 million.
Long-term debt of the company declined 6.3% year over year to
$792.4 million. Debt to capital ratio improved 2 basis points
year over year to 40%.
As of Dec 31, 2012, the Company had approximately $500.0 million
available in its revolving credit facility.
In Dec 2012, CoreLogic in an effort to solidify its position as a
leading provider of geo-spatial property data and analytics
purchased Middletown, Conn.-based CDS Business Mapping, LLC
("CDS") for $78 million.
The Company's geo-spatial property data and analytics business
operations are now reported as part of the D&A segment.
CoreLogic has renamed its Default Services segment as Asset
Management and Processing Solutions or AMPS
The company has now has a functional operating statement which
includes expense categories for costs of services and selling,
general and administrative.
Performance of Few Other Consultants
CRA International Inc
) non-GAAP net income for the forth quarter was 43 cents per
share compared with 40 cents in the year-earlier quarter.
Non-GAAP earnings beat the Zacks Consensus Estimate of 36 cents.
Navigant Consulting Inc.
) reported adjusted earnings per share of 31 cents versus 22
cents in the year-ago quarter, representing a 40.9% year over
year increase. Adjusted earnings for the reported quarter
exceeded the Zacks Consensus Estimate by 7 cents.
) reported adjusted earnings per share of $1.48 cents for the
second quarter of fiscal year 2013, ending Dec 31, 2012,
representing a 10% year over year increase. Adjusted earnings for
the reported quarter exceeded the Zacks Consensus Estimate by
CoreLogic currently carries a Zacks Rank #2 (Buy).