) reported first quarter adjusted earnings of 50 cents per share,
surpassing the Zacks Consensus Estimate of 44 cents. Results also
exceeded the year-ago quarter's earnings by 16.3%.
The solid performance came on the back of increase in revenue and
profit margins. Lower share count due to share repurchases during
the second quarter of 2013 also led to an improvement in the
CoreLogic reported net income of 46 cents per share, up 17.9%
from 39 cents earned in the year-ago quarter.
Quarterly Operational Update
Operating revenues increased 9.7% year over year to $427 million
in the second quarter driven by solid contribution from Mortgage
Origination Services (MOS) segment and Data & Analytics
(D&A) segment revenue. It surpassed the Zacks Consensus
Estimate of $412 million.
Total operating expenses in the quarter increased 11.4% year over
year to $358.6 million. The increase was largely driven by higher
cost of services (up 7.6% year over year) and selling, general
and administrative expenses (up 20.3% year over year).
Operating income of CoreLogic during the second quarter of 2013
increased 1.2% year over year to $68.4 million. The increase was
driven by higher revenues in the MOS and D&A segment as well
as improved operating leverage in the MOS segment.
Adjusted earnings before interest tax, depreciation and
amortization (EBITDA) increased 6% year over year to $132.7
Quarterly Segment Update
Data & Analytics
revenues in the quarter increased 11.2% year over year to $169
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 $52.5 million were down 1.2% year over year.
Mortgage Origination Services
revenues in the quarter increased 24.6% year over year to $184.4
million, due to increased market demand for credit reports, tax
services and flood certifications, and market-share gains by the
tax services business.
Adjusted EBITDA of $73.2 million were up 12.8% year over year due
to higher volumes processed and market share gains.
Asset Management & Processing Services
revenues in the quarter decreased 14.5% year over year to $80.1
million, due to a double-digit fall in market volumes of
delinquent loans and foreclosure starts, and the impact of exit
of unprofitable product lines over the past twelve months.
Adjusted EBITDA of $18.8 million were down 13.1% year over year
as lower revenues more than offset the impact of cost reduction
Cost Reduction Programs
Cost reductions related to CoreLogic's previously announced
Project 30 program were approximately $5.8 million in the
CoreLogic repurchased common shares for a total of $75.7 million
in the first six months of 2013 and raised its 2013 share
repurchase target to 8 million from 5 million.
CoreLogic exited the quarter with cash and cash equivalents of
$176.6 million, up 18.6% from $148.9 million at Dec 31, 2012.
Net cash from operations totaled $166.7 million in the first half
og 2013, decreasing 13.4% year over year.
Free cash flow generated in the first half of 2013 was $114.4
Long-term debt of CoreLogic declined 1.1% to $783.7 million at
Jun 30, 2013 from $792.3 million at year end 2012. Debt to
capital ratio deteriorated 30 basis points to 40.7% from 40.4% at
year end 2012.
As of Jun 30, 2013, CoreLogic had approximately $500.0 million
available in its revolving credit facility.
To strengthen its association with
Bank of America Corporation
), CoreLogic entered into a services agreement on Jul 18, 2013.
Pursuant to the agreement CoreLogic will continue to provide
flood and tax services to the mega bank. For this, it acquired
the flood zone determination and tax processing services assets
and operating platforms from Bank of America in the first week of
CoreLogic expects its 2013 revenues to be in the range of
$1.575 and $1.6 billion, based on the present revenue and volume
trends within the company's operating units, projected Project 30
cost savings and TTI investments, and seasonality.
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Adjusted EBITDA is expected to be between $460 and $475 million.
On account of the enhanced share repurchase program, the previous
guidance regarding adjusted EPS of $1.65-$1.75 has been increased
CoreLogic currently carries a Zacks Rank #3 (Hold). Among others,
Information Services Group Inc.
) with a favorable Zacks Rank #2 (Buy) are scheduled to report
second quarter 2013 results on Aug 6 and Aug 2 respectively.