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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Luxembourg
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98-0554932
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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June 30,
2017 |
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December 31,
2016 |
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ASSETS
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|||||||
Current assets:
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Cash and cash equivalents
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$
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114,205
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$
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149,294
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Available for sale securities
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53,628
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|
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45,754
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Accounts receivable, net
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72,977
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87,821
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Prepaid expenses and other current assets
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49,419
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42,608
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Total current assets
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290,229
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325,477
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Premises and equipment, net
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87,060
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103,473
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Goodwill
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86,283
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86,283
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Intangible assets, net
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136,893
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155,432
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Deferred tax assets, net
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5,160
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7,292
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Other assets
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11,003
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11,255
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Total assets
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$
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616,628
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$
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689,212
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LIABILITIES AND EQUITY
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Current liabilities:
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Accounts payable and accrued expenses
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$
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75,162
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$
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83,135
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Accrued litigation settlement
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—
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32,000
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Current portion of long-term debt
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5,945
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5,945
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Deferred revenue
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9,886
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8,797
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Other current liabilities
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10,520
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19,061
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Total current liabilities
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101,513
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148,938
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Long-term debt, less current portion
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439,486
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467,600
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Other non-current liabilities
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8,906
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10,480
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Commitments, contingencies and regulatory matters (Note 20)
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Equity:
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Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 18,034 outstanding as of June 30, 2017; 25,413 shares authorized and issued and 18,774 outstanding as of December 31, 2016)
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25,413
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25,413
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Additional paid-in capital
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110,078
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107,288
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Retained earnings
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341,926
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333,786
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Accumulated other comprehensive income (loss)
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3,997
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(1,745
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)
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Treasury stock, at cost (7,379 shares as of June 30, 2017 and 6,639 shares as of December 31, 2016)
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(416,342
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)
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(403,953
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)
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Altisource equity
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65,072
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60,789
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Non-controlling interests
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1,651
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1,405
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Total equity
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66,723
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62,194
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Total liabilities and equity
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$
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616,628
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$
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689,212
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Three months ended
June 30, |
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Six months ended
June 30, |
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2017
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2016
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2017
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2016
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Revenue
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$
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250,685
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$
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255,799
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$
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491,168
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$
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505,931
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Cost of revenue
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185,393
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174,371
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363,346
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343,234
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Gross profit
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65,292
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81,428
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127,822
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162,697
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Selling, general and administrative expenses
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52,470
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54,207
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100,171
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107,823
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Income from operations
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12,822
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27,221
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27,651
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54,874
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Other income (expense), net:
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Interest expense
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(5,465
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)
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(5,988
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)
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(11,263
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)
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(12,529
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)
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Other income (expense), net
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4,803
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2,744
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5,518
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2,717
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Total other income (expense), net
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(662
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)
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(3,244
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)
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(5,745
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)
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(9,812
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)
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Income before income taxes and non-controlling interests
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12,160
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23,977
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21,906
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45,062
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Income tax provision
|
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(2,438
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)
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(3,291
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)
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(5,024
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)
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(5,484
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)
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Net income
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9,722
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20,686
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16,882
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39,578
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Net income attributable to non-controlling interests
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(687
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)
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(692
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)
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(1,302
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)
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(1,090
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)
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Net income attributable to Altisource
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$
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9,035
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$
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19,994
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$
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15,580
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$
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38,488
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Earnings per share:
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Basic
|
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$
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0.49
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$
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1.08
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$
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0.84
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$
|
2.06
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Diluted
|
|
$
|
0.48
|
|
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$
|
1.02
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|
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$
|
0.82
|
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$
|
1.94
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Weighted average shares outstanding:
|
|
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|
|
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|
||||||||
Basic
|
|
18,335
|
|
|
18,437
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|
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18,497
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|
|
18,646
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|
||||
Diluted
|
|
18,836
|
|
|
19,604
|
|
|
19,069
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|
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19,822
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Comprehensive income:
|
|
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|
|
|
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Net income
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|
$
|
9,722
|
|
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$
|
20,686
|
|
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$
|
16,882
|
|
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$
|
39,578
|
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Other comprehensive income (loss), net of tax:
|
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||||||||
Unrealized gain (loss) on securities, net of income tax (provision) benefit of $2,593, $3,249, $(2,132), $2,960
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|
(6,981
|
)
|
|
(7,871
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)
|
|
5,742
|
|
|
(7,172
|
)
|
||||
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|
|
|
|
||||||||
Comprehensive income, net of tax
|
|
2,741
|
|
|
12,815
|
|
|
22,624
|
|
|
32,406
|
|
||||
Comprehensive income attributable to non-controlling interests
|
|
(687
|
)
|
|
(692
|
)
|
|
(1,302
|
)
|
|
(1,090
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income attributable to Altisource
|
|
$
|
2,054
|
|
|
$
|
12,123
|
|
|
$
|
21,322
|
|
|
$
|
31,316
|
|
|
Altisource Equity
|
|
|
|
|
|||||||||||||||||||||||||
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Treasury stock, at cost
|
|
Non-controlling interests
|
|
Total
|
|||||||||||||||||
|
Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2015
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
96,321
|
|
|
$
|
369,270
|
|
|
$
|
—
|
|
|
$
|
(440,026
|
)
|
|
$
|
1,292
|
|
|
$
|
52,270
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
38,488
|
|
|
—
|
|
|
—
|
|
|
1,090
|
|
|
39,578
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,172
|
)
|
|
—
|
|
|
—
|
|
|
(7,172
|
)
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,065
|
)
|
|
(1,065
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
3,569
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,569
|
|
|||||||
Exercise of stock options and issuance of restricted shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,298
|
)
|
|
—
|
|
|
5,284
|
|
|
—
|
|
|
986
|
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,746
|
)
|
|
—
|
|
|
(19,746
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, June 30, 2016
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
99,890
|
|
|
$
|
403,460
|
|
|
$
|
(7,172
|
)
|
|
$
|
(454,488
|
)
|
|
$
|
1,317
|
|
|
$
|
68,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2016
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
107,288
|
|
|
$
|
333,786
|
|
|
$
|
(1,745
|
)
|
|
$
|
(403,953
|
)
|
|
$
|
1,405
|
|
|
$
|
62,194
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
15,580
|
|
|
—
|
|
|
—
|
|
|
1,302
|
|
|
16,882
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,742
|
|
|
—
|
|
|
—
|
|
|
5,742
|
|
|||||||
Distributions to non-controlling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,056
|
)
|
|
(1,056
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,858
|
|
|||||||
Cumulative effect of an accounting change (Note 1)
|
—
|
|
|
—
|
|
|
932
|
|
|
(932
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exercise of stock options and issuance of restricted shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,014
|
)
|
|
—
|
|
|
5,779
|
|
|
—
|
|
|
765
|
|
|||||||
Treasury shares withheld for the payment of tax on restricted share issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,494
|
)
|
|
—
|
|
|
405
|
|
|
—
|
|
|
(1,089
|
)
|
|||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,573
|
)
|
|
—
|
|
|
(18,573
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, June 30, 2017
|
25,413
|
|
|
$
|
25,413
|
|
|
$
|
110,078
|
|
|
$
|
341,926
|
|
|
$
|
3,997
|
|
|
$
|
(416,342
|
)
|
|
$
|
1,651
|
|
|
$
|
66,723
|
|
|
Six months ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
16,882
|
|
|
$
|
39,578
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
18,895
|
|
|
18,346
|
|
||
Amortization of intangible assets
|
18,539
|
|
|
24,967
|
|
||
Change in the fair value of acquisition related contingent consideration
|
16
|
|
|
193
|
|
||
Share-based compensation expense
|
1,858
|
|
|
3,569
|
|
||
Bad debt expense
|
2,890
|
|
|
1,041
|
|
||
Gain on early extinguishment of debt
|
(3,937
|
)
|
|
(5,464
|
)
|
||
Amortization of debt discount
|
156
|
|
|
201
|
|
||
Amortization of debt issuance costs
|
433
|
|
|
557
|
|
||
Deferred income taxes
|
—
|
|
|
18
|
|
||
Loss on disposal of fixed assets
|
2,798
|
|
|
9
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
11,954
|
|
|
3,407
|
|
||
Prepaid expenses and other current assets
|
(6,811
|
)
|
|
(6,012
|
)
|
||
Other assets
|
523
|
|
|
447
|
|
||
Accounts payable and accrued expenses
|
(10,637
|
)
|
|
(4,454
|
)
|
||
Other current and non-current liabilities
|
(41,042
|
)
|
|
(6,998
|
)
|
||
Net cash provided by operating activities
|
12,517
|
|
|
69,405
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Additions to premises and equipment
|
(5,658
|
)
|
|
(12,441
|
)
|
||
Purchase of available for sale securities
|
—
|
|
|
(48,219
|
)
|
||
Change in restricted cash
|
(271
|
)
|
|
(10
|
)
|
||
Net cash used in investing activities
|
(5,929
|
)
|
|
(60,670
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Repayment and repurchases of long-term debt
|
(24,766
|
)
|
|
(47,751
|
)
|
||
Proceeds from stock option exercises
|
765
|
|
|
986
|
|
||
Purchase of treasury shares
|
(15,531
|
)
|
|
(19,746
|
)
|
||
Distributions to non-controlling interests
|
(1,056
|
)
|
|
(1,065
|
)
|
||
Payment of tax withholding on issuance of restricted shares
|
(1,089
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(41,677
|
)
|
|
(67,576
|
)
|
||
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(35,089
|
)
|
|
(58,841
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
149,294
|
|
|
179,327
|
|
||
|
|
|
|
||||
Cash and cash equivalents at the end of the period
|
$
|
114,205
|
|
|
$
|
120,486
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
|
|
||
Interest paid
|
$
|
10,787
|
|
|
$
|
11,694
|
|
Income taxes paid, net
|
12,668
|
|
|
5,618
|
|
||
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
|
|
||
(Decrease) increase in payables for purchases of premises and equipment
|
$
|
(378
|
)
|
|
$
|
1,369
|
|
Increase in payables for purchases of treasury shares
|
3,042
|
|
|
—
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
|
|
|
|
||||
Mortgage Market
|
|
68
|
%
|
|
64
|
%
|
|
68
|
%
|
|
65
|
%
|
Real Estate Market
|
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
|
1
|
%
|
Other Businesses, Corporate and Eliminations
|
|
11
|
%
|
|
22
|
%
|
|
13
|
%
|
|
23
|
%
|
Consolidated revenue
|
|
58
|
%
|
|
55
|
%
|
|
58
|
%
|
|
55
|
%
|
(in thousands)
|
|
|
||
|
|
|
||
Accounts receivable, net
|
|
$
|
1,024
|
|
Prepaid expenses
|
|
22
|
|
|
Other assets
|
|
25
|
|
|
Premises and equipment, net
|
|
299
|
|
|
Non-compete agreements
|
|
100
|
|
|
Trademarks and trade names
|
|
100
|
|
|
Customer relationships
|
|
3,400
|
|
|
Goodwill
|
|
4,827
|
|
|
|
|
9,797
|
|
|
Accounts payable and accrued expenses
|
|
(57
|
)
|
|
Other current liabilities
|
|
(192
|
)
|
|
|
|
|
||
Purchase price
|
|
$
|
9,548
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Billed
|
|
$
|
53,703
|
|
|
$
|
58,392
|
|
Unbilled
|
|
31,242
|
|
|
39,853
|
|
||
|
|
84,945
|
|
|
98,245
|
|
||
Less: Allowance for doubtful accounts
|
|
(11,968
|
)
|
|
(10,424
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
72,977
|
|
|
$
|
87,821
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Maintenance agreements, current portion
|
|
$
|
6,008
|
|
|
$
|
6,590
|
|
Short-term investments in real estate
|
|
15,114
|
|
|
13,025
|
|
||
Income taxes receivable
|
|
13,054
|
|
|
5,186
|
|
||
Prepaid expenses
|
|
7,950
|
|
|
6,919
|
|
||
Litigation settlement insurance recovery
|
|
—
|
|
|
4,000
|
|
||
Other current assets
|
|
7,293
|
|
|
6,888
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
49,419
|
|
|
$
|
42,608
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
|||||
|
|
|
|
|
|||||
Computer hardware and software
|
|
$
|
172,535
|
|
|
$
|
164,877
|
|
|
Office equipment and other
|
|
13,279
|
|
|
20,188
|
|
|||
Furniture and fixtures
|
|
13,895
|
|
|
13,997
|
|
|||
Leasehold improvements
|
|
33,019
|
|
|
33,808
|
|
|||
|
|
232,728
|
|
|
232,870
|
|
|||
Less: accumulated depreciation and amortization
|
|
(145,668
|
)
|
—
|
|
(129,397
|
)
|
||
|
|
|
|
|
|||||
Total
|
|
$
|
87,060
|
|
|
$
|
103,473
|
|
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Balance as of June 30, 2017 and December 31, 2016
|
|
$
|
73,259
|
|
|
$
|
10,056
|
|
|
$
|
2,968
|
|
|
$
|
86,283
|
|
|
|
Weighted average estimated useful life
(in years)
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net book value
|
||||||||||||||||||
(in thousands)
|
|
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2017 |
|
December 31,
2016 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Definite lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks and trade names
|
|
13
|
|
$
|
15,354
|
|
|
$
|
15,354
|
|
|
$
|
(8,328
|
)
|
|
$
|
(7,724
|
)
|
|
$
|
7,026
|
|
|
$
|
7,630
|
|
Customer related intangible assets
|
|
10
|
|
277,828
|
|
|
277,828
|
|
|
(173,452
|
)
|
|
(156,980
|
)
|
|
104,376
|
|
|
120,848
|
|
||||||
Operating agreement
|
|
20
|
|
35,000
|
|
|
35,000
|
|
|
(12,982
|
)
|
|
(12,104
|
)
|
|
22,018
|
|
|
22,896
|
|
||||||
Non-compete agreements
|
|
4
|
|
1,560
|
|
|
1,560
|
|
|
(702
|
)
|
|
(507
|
)
|
|
858
|
|
|
1,053
|
|
||||||
Intellectual property
|
|
10
|
|
300
|
|
|
300
|
|
|
(100
|
)
|
|
(85
|
)
|
|
200
|
|
|
215
|
|
||||||
Other intangible assets
|
|
5
|
|
3,745
|
|
|
3,745
|
|
|
(1,330
|
)
|
|
(955
|
)
|
|
2,415
|
|
|
2,790
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
|
|
$
|
333,787
|
|
|
$
|
333,787
|
|
|
$
|
(196,894
|
)
|
|
$
|
(178,355
|
)
|
|
$
|
136,893
|
|
|
$
|
155,432
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Security deposits
|
|
$
|
5,135
|
|
|
$
|
5,508
|
|
Maintenance agreements, non-current portion
|
|
666
|
|
|
853
|
|
||
Restricted cash
|
|
4,398
|
|
|
4,127
|
|
||
Other
|
|
804
|
|
|
767
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
11,003
|
|
|
$
|
11,255
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Accounts payable
|
|
$
|
11,168
|
|
|
$
|
8,787
|
|
Accrued expenses - general
|
|
30,552
|
|
|
26,426
|
|
||
Accrued salaries and benefits
|
|
33,442
|
|
|
47,614
|
|
||
Income taxes payable
|
|
—
|
|
|
308
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
75,162
|
|
|
$
|
83,135
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Unfunded cash account balances
|
|
$
|
2,475
|
|
|
$
|
7,137
|
|
Other
|
|
8,045
|
|
|
11,924
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
10,520
|
|
|
$
|
19,061
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Senior secured term loan
|
|
$
|
450,648
|
|
|
$
|
479,653
|
|
Less: debt issuance costs, net
|
|
(3,831
|
)
|
|
(4,486
|
)
|
||
Less: unamortized discount, net
|
|
(1,386
|
)
|
|
(1,622
|
)
|
||
Net long-term debt
|
|
445,431
|
|
|
473,545
|
|
||
Less: current portion
|
|
(5,945
|
)
|
|
(5,945
|
)
|
||
|
|
|
|
|
||||
Long-term debt, less current portion
|
|
$
|
439,486
|
|
|
$
|
467,600
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
Deferred revenue
|
|
$
|
4,276
|
|
|
$
|
5,680
|
|
Other non-current liabilities
|
|
4,630
|
|
|
4,800
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
8,906
|
|
|
$
|
10,480
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Carrying amount
|
|
Fair value
|
|
Carrying amount
|
|
Fair value
|
||||||||||||||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
|
$
|
114,205
|
|
|
$
|
114,205
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
149,294
|
|
|
$
|
149,294
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
|
4,398
|
|
|
4,398
|
|
|
—
|
|
|
—
|
|
|
4,127
|
|
|
4,127
|
|
|
—
|
|
|
—
|
|
||||||||
Available for sale securities
|
|
53,628
|
|
|
53,628
|
|
|
—
|
|
|
—
|
|
|
45,754
|
|
|
45,754
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition contingent consideration
|
|
393
|
|
|
—
|
|
|
—
|
|
|
393
|
|
|
376
|
|
|
—
|
|
|
—
|
|
|
376
|
|
||||||||
Long-term debt
|
|
450,648
|
|
|
—
|
|
|
392,064
|
|
|
—
|
|
|
479,653
|
|
|
—
|
|
|
474,856
|
|
|
—
|
|
|
|
Six months ended
June 30, 2017 |
|
Six months ended
June 30, 2016 |
||||||||
|
|
Black-Scholes
|
|
Binomial
|
|
Black-Scholes
|
|
Binomial
|
||||
|
|
|
|
|
|
|
|
|
||||
Risk-free interest rate (%)
|
|
2.06 - 2.29
|
|
|
0.77 - 2.38
|
|
|
1.25 - 1.89
|
|
|
0.23 - 1.97
|
|
Expected stock price volatility (%)
|
|
61.49 - 66.68
|
|
|
66.68
|
|
|
59.75 - 62.14
|
|
|
59.76 - 62.14
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Expected option life (in years)
|
|
6.00 - 7.50
|
|
|
3.53 - 3.85
|
|
|
6.00 - 6.25
|
|
|
4.54 - 4.88
|
|
Fair value
|
|
$23.91 - $24.80
|
|
|
$23.54 - $24.30
|
|
|
$11.15 - $17.09
|
|
|
$11.06 - $17.58
|
|
|
|
Six months ended June 30,
|
||||||
(in thousands, except per share amounts)
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
||||
Weighted average grant date fair value of stock options granted per share
|
|
$
|
24.23
|
|
|
$
|
15.81
|
|
Intrinsic value of options exercised
|
|
875
|
|
|
1,002
|
|
||
Grant date fair value of stock options that vested
|
|
1,693
|
|
|
2,010
|
|
|
Number of options
|
|
Weighted average exercise price
|
|
Weighted average contractual term
(in years
)
|
|
Aggregate intrinsic value
(
in thousands)
|
|||||
|
|
|
|
|
|
|
|
|||||
Outstanding at December 31, 2016
|
1,996,509
|
|
|
$
|
25.98
|
|
|
5.32
|
|
$
|
15,942
|
|
Granted
|
128,630
|
|
|
39.13
|
|
|
|
|
|
|||
Exercised
|
(62,232
|
)
|
|
12.29
|
|
|
|
|
|
|
||
Forfeited
|
(200,316
|
)
|
|
29.32
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||||
Outstanding at June 30, 2017
|
1,862,591
|
|
|
26.99
|
|
|
4.87
|
|
9,075
|
|
||
|
|
|
|
|
|
|
|
|||||
Exercisable at June 30, 2017
|
1,286,618
|
|
|
21.56
|
|
|
3.40
|
|
6,257
|
|
|
Number of restricted shares
|
|
|
|
|
Outstanding at December 31, 2016
|
231,730
|
|
Granted
|
120,842
|
|
Issued
|
(35,672
|
)
|
Forfeited/canceled
|
(56,511
|
)
|
|
|
|
Outstanding at June 30, 2017
|
260,389
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
|
$
|
238,107
|
|
|
$
|
241,324
|
|
|
$
|
467,946
|
|
|
$
|
475,604
|
|
Reimbursable expenses
|
|
11,891
|
|
|
13,783
|
|
|
21,920
|
|
|
29,237
|
|
||||
Non-controlling interests
|
|
687
|
|
|
692
|
|
|
1,302
|
|
|
1,090
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
250,685
|
|
|
$
|
255,799
|
|
|
$
|
491,168
|
|
|
$
|
505,931
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
62,666
|
|
|
$
|
69,773
|
|
|
$
|
125,758
|
|
|
$
|
134,836
|
|
Outside fees and services
|
|
93,369
|
|
|
73,326
|
|
|
179,263
|
|
|
145,129
|
|
||||
Reimbursable expenses
|
|
11,891
|
|
|
13,783
|
|
|
21,920
|
|
|
29,237
|
|
||||
Technology and telecommunications
|
|
10,941
|
|
|
10,703
|
|
|
22,292
|
|
|
20,643
|
|
||||
Depreciation and amortization
|
|
6,526
|
|
|
6,786
|
|
|
14,113
|
|
|
13,389
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
185,393
|
|
|
$
|
174,371
|
|
|
$
|
363,346
|
|
|
$
|
343,234
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
15,541
|
|
|
$
|
14,324
|
|
|
$
|
28,047
|
|
|
$
|
28,315
|
|
Occupancy related costs
|
|
9,538
|
|
|
8,799
|
|
|
19,811
|
|
|
17,882
|
|
||||
Amortization of intangible assets
|
|
9,393
|
|
|
12,756
|
|
|
18,539
|
|
|
24,967
|
|
||||
Professional services
|
|
4,367
|
|
|
6,696
|
|
|
8,097
|
|
|
13,436
|
|
||||
Marketing costs
|
|
3,697
|
|
|
5,671
|
|
|
7,966
|
|
|
12,163
|
|
||||
Depreciation and amortization
|
|
2,361
|
|
|
2,352
|
|
|
4,782
|
|
|
4,957
|
|
||||
Other
|
|
7,573
|
|
|
3,609
|
|
|
12,929
|
|
|
6,103
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
52,470
|
|
|
$
|
54,207
|
|
|
$
|
100,171
|
|
|
$
|
107,823
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gain on early extinguishment of debt
|
|
$
|
3,937
|
|
|
$
|
5,464
|
|
|
$
|
3,937
|
|
|
$
|
5,464
|
|
Expenses related to the purchase of available for sale securities
|
|
—
|
|
|
(3,356
|
)
|
|
—
|
|
|
(3,356
|
)
|
||||
Interest income
|
|
44
|
|
|
6
|
|
|
142
|
|
|
17
|
|
||||
Other, net
|
|
822
|
|
|
630
|
|
|
1,439
|
|
|
592
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
4,803
|
|
|
$
|
2,744
|
|
|
$
|
5,518
|
|
|
$
|
2,717
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in thousands, except per share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Altisource
|
|
$
|
9,035
|
|
|
$
|
19,994
|
|
|
$
|
15,580
|
|
|
$
|
38,488
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic
|
|
18,335
|
|
|
18,437
|
|
|
18,497
|
|
|
18,646
|
|
||||
Dilutive effect of stock options and restricted shares
|
|
501
|
|
|
1,167
|
|
|
572
|
|
|
1,176
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, diluted
|
|
18,836
|
|
|
19,604
|
|
|
19,069
|
|
|
19,822
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.49
|
|
|
$
|
1.08
|
|
|
$
|
0.84
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
0.48
|
|
|
$
|
1.02
|
|
|
$
|
0.82
|
|
|
$
|
1.94
|
|
•
|
Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
|
•
|
Ocwen loses, sells or transfers a significant portion or all of its non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
|
•
|
Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
|
•
|
Altisource fails to be retained as a service provider
|
•
|
The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
|
•
|
Servicer Solutions business
|
•
|
Origination Solutions business
|
•
|
Consumer Real Estate Solutions business
|
•
|
Real Estate Investor Solutions business
|
|
|
Three months ended June 30, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
210,195
|
|
|
$
|
25,130
|
|
|
$
|
15,360
|
|
|
$
|
250,685
|
|
Cost of revenue
|
|
144,326
|
|
|
26,844
|
|
|
14,223
|
|
|
185,393
|
|
||||
Gross profit (loss)
|
|
65,869
|
|
|
(1,714
|
)
|
|
1,137
|
|
|
65,292
|
|
||||
Selling, general and administrative expenses
|
|
29,805
|
|
|
5,551
|
|
|
17,114
|
|
|
52,470
|
|
||||
Income (loss) from operations
|
|
36,064
|
|
|
(7,265
|
)
|
|
(15,977
|
)
|
|
12,822
|
|
||||
Total other income (expense), net
|
|
102
|
|
|
—
|
|
|
(764
|
)
|
|
(662
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
36,166
|
|
|
$
|
(7,265
|
)
|
|
$
|
(16,741
|
)
|
|
$
|
12,160
|
|
|
|
Three months ended June 30, 2016
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
211,300
|
|
|
$
|
24,804
|
|
|
$
|
19,695
|
|
|
$
|
255,799
|
|
Cost of revenue
|
|
135,723
|
|
|
16,854
|
|
|
21,794
|
|
|
174,371
|
|
||||
Gross profit (loss)
|
|
75,577
|
|
|
7,950
|
|
|
(2,099
|
)
|
|
81,428
|
|
||||
Selling, general and administrative expenses
|
|
31,141
|
|
|
5,620
|
|
|
17,446
|
|
|
54,207
|
|
||||
Income (loss) from operations
|
|
44,436
|
|
|
2,330
|
|
|
(19,545
|
)
|
|
27,221
|
|
||||
Total other income (expense), net
|
|
74
|
|
|
4
|
|
|
(3,322
|
)
|
|
(3,244
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
44,510
|
|
|
$
|
2,334
|
|
|
$
|
(22,867
|
)
|
|
$
|
23,977
|
|
|
|
Six months ended June 30, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
414,918
|
|
|
$
|
45,193
|
|
|
$
|
31,057
|
|
|
$
|
491,168
|
|
Cost of revenue
|
|
284,476
|
|
|
48,987
|
|
|
29,883
|
|
|
363,346
|
|
||||
Gross profit (loss)
|
|
130,442
|
|
|
(3,794
|
)
|
|
1,174
|
|
|
127,822
|
|
||||
Selling, general and administrative expenses
|
|
58,487
|
|
|
9,876
|
|
|
31,808
|
|
|
100,171
|
|
||||
Income (loss) from operations
|
|
71,955
|
|
|
(13,670
|
)
|
|
(30,634
|
)
|
|
27,651
|
|
||||
Total other income (expense), net
|
|
112
|
|
|
—
|
|
|
(5,857
|
)
|
|
(5,745
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
72,067
|
|
|
$
|
(13,670
|
)
|
|
$
|
(36,491
|
)
|
|
$
|
21,906
|
|
|
|
Six months ended June 30, 2016
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
414,701
|
|
|
$
|
48,713
|
|
|
$
|
42,517
|
|
|
$
|
505,931
|
|
Cost of revenue
|
|
269,766
|
|
|
31,312
|
|
|
42,156
|
|
|
343,234
|
|
||||
Gross profit
|
|
144,935
|
|
|
17,401
|
|
|
361
|
|
|
162,697
|
|
||||
Selling, general and administrative expenses
|
|
60,595
|
|
|
11,794
|
|
|
35,434
|
|
|
107,823
|
|
||||
Income (loss) from operations
|
|
84,340
|
|
|
5,607
|
|
|
(35,073
|
)
|
|
54,874
|
|
||||
Total other income (expense), net
|
|
134
|
|
|
—
|
|
|
(9,946
|
)
|
|
(9,812
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
84,474
|
|
|
$
|
5,607
|
|
|
$
|
(45,019
|
)
|
|
$
|
45,062
|
|
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
June 30, 2017
|
|
$
|
308,501
|
|
|
$
|
43,370
|
|
|
$
|
264,757
|
|
|
$
|
616,628
|
|
December 31, 2016
|
|
347,067
|
|
|
47,863
|
|
|
294,282
|
|
|
689,212
|
|
(in thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
|
||||
United States
|
|
$
|
57,030
|
|
|
$
|
71,418
|
|
India
|
|
10,743
|
|
|
14,006
|
|
||
Luxembourg
|
|
16,793
|
|
|
14,791
|
|
||
Philippines
|
|
2,299
|
|
|
3,027
|
|
||
Uruguay
|
|
195
|
|
|
231
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
87,060
|
|
|
$
|
103,473
|
|
•
|
assumptions related to the sources of liquidity and the adequacy of financial resources;
|
•
|
assumptions about our ability to grow our business, including executing on our strategic initiatives;
|
•
|
assumptions about our ability to improve margins;
|
•
|
assumptions regarding the impact of seasonality;
|
•
|
estimates regarding our effective tax rate; and
|
•
|
estimates regarding our reserves and valuations.
|
•
|
if, as a result of difficulties faced by Ocwen Financial Corporation (“Ocwen”), we were to lose Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us;
|
•
|
our ability to execute on our strategic initiatives;
|
•
|
our ability to retain our existing customers, expand relationships and attract new customers;
|
•
|
the level of loan delinquencies and charge-offs;
|
•
|
the level of origination volume;
|
•
|
technology failures;
|
•
|
the outsourcing trends;
|
•
|
our ability to raise debt;
|
•
|
our ability to retain our directors, executive officers and key personnel;
|
•
|
our ability to integrate acquired businesses;
|
•
|
our ability to comply with, and burdens imposed by, governmental regulations and policies and any changes in such regulations and policies; and
|
•
|
significant changes in the Luxembourg tax regime or interpretations of the Luxembourg tax regime.
|
• Property preservation and inspection services
|
|
• Residential and commercial loan servicing technologies
|
|
• Real estate brokerage and auction services
|
|
• Vendor management, marketplace transaction management and payment management platforms
|
|
• Title insurance (agent and related services) and settlement services
|
|
||
|
• Document management platform
|
||
• Appraisal management services and broker and non-broker valuation services
|
|
• Default services (real estate owned (“REO”), foreclosure, bankruptcy, eviction) technologies
|
|
• Foreclosure trustee services
|
|
• Mortgage charge-off collections
|
|
• Non-legal processing and related services for and under the supervision of foreclosure, bankruptcy and eviction attorneys
|
|
• Residential and commercial loan disbursement processing, risk mitigation and construction inspection services
|
• Title insurance (agent and related services) and settlement services
|
|
• Certified loan insurance and certification
|
|
• Vendor management platform
|
|
• Appraisal management services and broker and non-broker valuation services
|
|
• Mortgage banker cooperative, Best Partners Mortgage Cooperative, Inc., doing business as Lenders One
®
(“Lenders One”)
|
• Fulfillment services
|
|
|
• Loan origination system and document management platform
|
|
• Mortgage trading platform
|
• Real estate brokerage
|
|
• Mortgage brokerage
|
• Title insurance (agent and related services) and settlement services
|
|
|
• Property preservation and inspection services
|
|
• Buy-renovate-sell
|
|
• Real estate brokerage and auction services
|
|
• Renovation services
|
|
• Data solutions
|
|
• Property management services
|
|
• Title insurance (agent and related services) and settlement services
|
|
• Appraisal management services and broker and non-broker valuation services
|
|
•
|
Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
|
•
|
Ocwen loses, sells or transfers a significant portion or all of its non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
|
•
|
Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
|
•
|
Altisource fails to be retained as a service provider
|
•
|
The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
|
•
|
The average number of loans serviced by Ocwen on REALServicing
®
was
1.3 million
for the
six
months ended
June 30, 2017
compared to
1.5 million
for the
six
months ended
June 30, 2016
, a
decrease
of
13%
(
1.3 million
for the
second quarter
of
2017
and
1.5 million
for the
second quarter
of
2016
, a
decrease
of
13%
). The average number of delinquent non-GSE loans serviced by Ocwen on REALServicing was
184 thousand
for the
six
months ended
June 30, 2017
compared to
230 thousand
for the
six
months ended
June 30, 2016
, a
decrease
of
20%
(
177 thousand
for the
second quarter
of
2017
and
222 thousand
for the
second quarter
of
2016
, a
decrease
of
20%
);
|
•
|
In the
second quarter
of
2017
, we repurchased portions of our senior secured term loan with an aggregate par value of
$26.0 million
at a weighted average discount of
16.5%
, recognizing a net gain of
$3.9 million
on the early extinguishment of debt (same amounts for the
six
months ended
June 30, 2017
). In the
second quarter
of
2016
, we repurchased portions of our senior secured term loan with an aggregate par value of
$51.0 million
at a weighted average discount of
13.2%
, recognizing a net gain of
$5.5 million
on the early extinguishment of debt (same amounts for the
six
months ended
June 30, 2016
);
|
•
|
During the
six
months ended
June 30, 2016
, we purchased
4.1 million
shares of Residential common stock for
$48.2 million
(no comparative amounts in
2017
). During the
six
months ended
June 30, 2017
and
2016
, we earned dividends of
$1.2 million
and
$1.0 million
, respectively (
$0.6 million
and
$1.0 million
for the
second quarter
of
2017
and
2016
, respectively) related to this investment. In addition, in the
second quarter
of
2016
, we incurred expenses of
$3.4 million
related to this investment (no comparative amounts in
2017
);
|
•
|
On July 29, 2016, we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for
$9.5 million
; and
|
•
|
The effective income tax rate increased to
22.9%
for the
six
months ended
June 30, 2017
from
12.2%
for the
six
months ended
June 30, 2016
(
20.0%
and
13.7%
for the
second quarter
of
2017
and
2016
, respectively). The effective tax rate increases were primarily due to changes in the expected mix of taxable income across the jurisdictions in which we operate.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands, except per share data)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Mortgage Market
|
|
$
|
198,414
|
|
|
$
|
197,479
|
|
|
—
|
|
|
$
|
393,387
|
|
|
$
|
385,564
|
|
|
2
|
|
Real Estate Market
|
|
24,347
|
|
|
24,173
|
|
|
1
|
|
|
43,536
|
|
|
47,574
|
|
|
(8
|
)
|
||||
Other Businesses, Corporate and Eliminations
|
|
15,346
|
|
|
19,672
|
|
|
(22
|
)
|
|
31,023
|
|
|
42,466
|
|
|
(27
|
)
|
||||
Total service revenue
|
|
238,107
|
|
|
241,324
|
|
|
(1
|
)
|
|
467,946
|
|
|
475,604
|
|
|
(2
|
)
|
||||
Reimbursable expenses
|
|
11,891
|
|
|
13,783
|
|
|
(14
|
)
|
|
21,920
|
|
|
29,237
|
|
|
(25
|
)
|
||||
Non-controlling interests
|
|
687
|
|
|
692
|
|
|
(1
|
)
|
|
1,302
|
|
|
1,090
|
|
|
19
|
|
||||
Total revenue
|
|
250,685
|
|
|
255,799
|
|
|
(2
|
)
|
|
491,168
|
|
|
505,931
|
|
|
(3
|
)
|
||||
Cost of revenue
|
|
185,393
|
|
|
174,371
|
|
|
6
|
|
|
363,346
|
|
|
343,234
|
|
|
6
|
|
||||
Gross profit
|
|
65,292
|
|
|
81,428
|
|
|
(20
|
)
|
|
127,822
|
|
|
162,697
|
|
|
(21
|
)
|
||||
Selling, general and administrative expenses
|
|
52,470
|
|
|
54,207
|
|
|
(3
|
)
|
|
100,171
|
|
|
107,823
|
|
|
(7
|
)
|
||||
Income from operations
|
|
12,822
|
|
|
27,221
|
|
|
(53
|
)
|
|
27,651
|
|
|
54,874
|
|
|
(50
|
)
|
||||
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
(5,465
|
)
|
|
(5,988
|
)
|
|
(9
|
)
|
|
(11,263
|
)
|
|
(12,529
|
)
|
|
(10
|
)
|
||||
Other income (expense), net
|
|
4,803
|
|
|
2,744
|
|
|
75
|
|
|
5,518
|
|
|
2,717
|
|
|
103
|
|
||||
Total other income (expense), net
|
|
(662
|
)
|
|
(3,244
|
)
|
|
(80
|
)
|
|
(5,745
|
)
|
|
(9,812
|
)
|
|
(41
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes and non-controlling interests
|
|
12,160
|
|
|
23,977
|
|
|
(49
|
)
|
|
21,906
|
|
|
45,062
|
|
|
(51
|
)
|
||||
Income tax provision
|
|
(2,438
|
)
|
|
(3,291
|
)
|
|
(26
|
)
|
|
(5,024
|
)
|
|
(5,484
|
)
|
|
(8
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
9,722
|
|
|
20,686
|
|
|
(53
|
)
|
|
16,882
|
|
|
39,578
|
|
|
(57
|
)
|
||||
Net income attributable to non-controlling interests
|
|
(687
|
)
|
|
(692
|
)
|
|
(1
|
)
|
|
(1,302
|
)
|
|
(1,090
|
)
|
|
19
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Altisource
|
|
$
|
9,035
|
|
|
$
|
19,994
|
|
|
(55
|
)
|
|
$
|
15,580
|
|
|
$
|
38,488
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gross profit/service revenue
|
|
27
|
%
|
|
34
|
%
|
|
|
|
27
|
%
|
|
34
|
%
|
|
|
|
|||||
Income from operations/service revenue
|
|
5
|
%
|
|
11
|
%
|
|
|
|
6
|
%
|
|
12
|
%
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.49
|
|
|
$
|
1.08
|
|
|
(55
|
)
|
|
$
|
0.84
|
|
|
$
|
2.06
|
|
|
(59
|
)
|
Diluted
|
|
$
|
0.48
|
|
|
$
|
1.02
|
|
|
(53
|
)
|
|
$
|
0.82
|
|
|
$
|
1.94
|
|
|
(58
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
62,666
|
|
|
$
|
69,773
|
|
|
(10
|
)
|
|
$
|
125,758
|
|
|
$
|
134,836
|
|
|
(7
|
)
|
Outside fees and services
|
|
93,369
|
|
|
73,326
|
|
|
27
|
|
|
179,263
|
|
|
145,129
|
|
|
24
|
|
||||
Reimbursable expenses
|
|
11,891
|
|
|
13,783
|
|
|
(14
|
)
|
|
21,920
|
|
|
29,237
|
|
|
(25
|
)
|
||||
Technology and telecommunications
|
|
10,941
|
|
|
10,703
|
|
|
2
|
|
|
22,292
|
|
|
20,643
|
|
|
8
|
|
||||
Depreciation and amortization
|
|
6,526
|
|
|
6,786
|
|
|
(4
|
)
|
|
14,113
|
|
|
13,389
|
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
|
$
|
185,393
|
|
|
$
|
174,371
|
|
|
6
|
|
|
$
|
363,346
|
|
|
$
|
343,234
|
|
|
6
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
15,541
|
|
|
$
|
14,324
|
|
|
8
|
|
|
$
|
28,047
|
|
|
$
|
28,315
|
|
|
(1
|
)
|
Occupancy related costs
|
|
9,538
|
|
|
8,799
|
|
|
8
|
|
|
19,811
|
|
|
17,882
|
|
|
11
|
|
||||
Amortization of intangible assets
|
|
9,393
|
|
|
12,756
|
|
|
(26
|
)
|
|
18,539
|
|
|
24,967
|
|
|
(26
|
)
|
||||
Professional services
|
|
4,367
|
|
|
6,696
|
|
|
(35
|
)
|
|
8,097
|
|
|
13,436
|
|
|
(40
|
)
|
||||
Marketing costs
|
|
3,697
|
|
|
5,671
|
|
|
(35
|
)
|
|
7,966
|
|
|
12,163
|
|
|
(35
|
)
|
||||
Depreciation and amortization
|
|
2,361
|
|
|
2,352
|
|
|
—
|
|
|
4,782
|
|
|
4,957
|
|
|
(4
|
)
|
||||
Other
|
|
7,573
|
|
|
3,609
|
|
|
110
|
|
|
12,929
|
|
|
6,103
|
|
|
112
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
$
|
52,470
|
|
|
$
|
54,207
|
|
|
(3
|
)
|
|
$
|
100,171
|
|
|
$
|
107,823
|
|
|
(7
|
)
|
|
|
Three months ended June 30, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
198,414
|
|
|
$
|
24,347
|
|
|
$
|
15,346
|
|
|
$
|
238,107
|
|
Reimbursable expenses
|
|
11,094
|
|
|
783
|
|
|
14
|
|
|
11,891
|
|
||||
Non-controlling interests
|
|
687
|
|
|
—
|
|
|
—
|
|
|
687
|
|
||||
|
|
210,195
|
|
|
25,130
|
|
|
15,360
|
|
|
250,685
|
|
||||
Cost of revenue
|
|
144,326
|
|
|
26,844
|
|
|
14,223
|
|
|
185,393
|
|
||||
Gross profit (loss)
|
|
65,869
|
|
|
(1,714
|
)
|
|
1,137
|
|
|
65,292
|
|
||||
Selling, general and administrative expenses
|
|
29,805
|
|
|
5,551
|
|
|
17,114
|
|
|
52,470
|
|
||||
Income (loss) from operations
|
|
36,064
|
|
|
(7,265
|
)
|
|
(15,977
|
)
|
|
12,822
|
|
||||
Total other income (expense), net
|
|
102
|
|
|
—
|
|
|
(764
|
)
|
|
(662
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
36,166
|
|
|
$
|
(7,265
|
)
|
|
$
|
(16,741
|
)
|
|
$
|
12,160
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (loss)/service revenue
|
|
33
|
%
|
|
(7
|
)%
|
|
7
|
%
|
|
27
|
%
|
||||
Income (loss) from operations/service revenue
|
|
18
|
%
|
|
(30
|
)%
|
|
(104
|
)%
|
|
5
|
%
|
|
|
Three months ended June 30, 2016
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
197,479
|
|
|
$
|
24,173
|
|
|
$
|
19,672
|
|
|
$
|
241,324
|
|
Reimbursable expenses
|
|
13,129
|
|
|
631
|
|
|
23
|
|
|
13,783
|
|
||||
Non-controlling interests
|
|
692
|
|
|
—
|
|
|
—
|
|
|
692
|
|
||||
|
|
211,300
|
|
|
24,804
|
|
|
19,695
|
|
|
255,799
|
|
||||
Cost of revenue
|
|
135,723
|
|
|
16,854
|
|
|
21,794
|
|
|
174,371
|
|
||||
Gross profit (loss)
|
|
75,577
|
|
|
7,950
|
|
|
(2,099
|
)
|
|
81,428
|
|
||||
Selling, general and administrative expenses
|
|
31,141
|
|
|
5,620
|
|
|
17,446
|
|
|
54,207
|
|
||||
Income (loss) from operations
|
|
44,436
|
|
|
2,330
|
|
|
(19,545
|
)
|
|
27,221
|
|
||||
Total other income (expense), net
|
|
74
|
|
|
4
|
|
|
(3,322
|
)
|
|
(3,244
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
44,510
|
|
|
$
|
2,334
|
|
|
$
|
(22,867
|
)
|
|
$
|
23,977
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (loss)/service revenue
|
|
38
|
%
|
|
33
|
%
|
|
(11
|
)%
|
|
34
|
%
|
||||
Income (loss) from operations/service revenue
|
|
23
|
%
|
|
10
|
%
|
|
(99
|
)%
|
|
11
|
%
|
|
|
Six months ended June 30, 2017
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
393,387
|
|
|
$
|
43,536
|
|
|
$
|
31,023
|
|
|
$
|
467,946
|
|
Reimbursable expenses
|
|
20,229
|
|
|
1,657
|
|
|
34
|
|
|
21,920
|
|
||||
Non-controlling interests
|
|
1,302
|
|
|
—
|
|
|
—
|
|
|
1,302
|
|
||||
|
|
414,918
|
|
|
45,193
|
|
|
31,057
|
|
|
491,168
|
|
||||
Cost of revenue
|
|
284,476
|
|
|
48,987
|
|
|
29,883
|
|
|
363,346
|
|
||||
Gross profit (loss)
|
|
130,442
|
|
|
(3,794
|
)
|
|
1,174
|
|
|
127,822
|
|
||||
Selling, general and administrative expenses
|
|
58,487
|
|
|
9,876
|
|
|
31,808
|
|
|
100,171
|
|
||||
Income (loss) from operations
|
|
71,955
|
|
|
(13,670
|
)
|
|
(30,634
|
)
|
|
27,651
|
|
||||
Total other income (expense), net
|
|
112
|
|
|
—
|
|
|
(5,857
|
)
|
|
(5,745
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
72,067
|
|
|
$
|
(13,670
|
)
|
|
$
|
(36,491
|
)
|
|
$
|
21,906
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (loss)/service revenue
|
|
33
|
%
|
|
(9
|
)%
|
|
4
|
%
|
|
27
|
%
|
||||
Income (loss) from operations/service revenue
|
|
18
|
%
|
|
(31
|
)%
|
|
(99
|
)%
|
|
6
|
%
|
|
|
Six months ended June 30, 2016
|
||||||||||||||
(in thousands)
|
|
Mortgage Market
|
|
Real Estate Market
|
|
Other Businesses, Corporate and Eliminations
|
|
Consolidated Altisource
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue
|
|
$
|
385,564
|
|
|
$
|
47,574
|
|
|
$
|
42,466
|
|
|
$
|
475,604
|
|
Reimbursable expenses
|
|
28,047
|
|
|
1,139
|
|
|
51
|
|
|
29,237
|
|
||||
Non-controlling interests
|
|
1,090
|
|
|
—
|
|
|
—
|
|
|
1,090
|
|
||||
|
|
414,701
|
|
|
48,713
|
|
|
42,517
|
|
|
505,931
|
|
||||
Cost of revenue
|
|
269,766
|
|
|
31,312
|
|
|
42,156
|
|
|
343,234
|
|
||||
Gross profit
|
|
144,935
|
|
|
17,401
|
|
|
361
|
|
|
162,697
|
|
||||
Selling, general and administrative expenses
|
|
60,595
|
|
|
11,794
|
|
|
35,434
|
|
|
107,823
|
|
||||
Income (loss) from operations
|
|
84,340
|
|
|
5,607
|
|
|
(35,073
|
)
|
|
54,874
|
|
||||
Total other income (expense), net
|
|
134
|
|
|
—
|
|
|
(9,946
|
)
|
|
(9,812
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and
non-controlling interests |
|
$
|
84,474
|
|
|
$
|
5,607
|
|
|
$
|
(45,019
|
)
|
|
$
|
45,062
|
|
|
|
|
|
|
|
|
|
|
||||||||
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit/service revenue
|
|
38
|
%
|
|
37
|
%
|
|
1
|
%
|
|
34
|
%
|
||||
Income (loss) from operations/service revenue
|
|
22
|
%
|
|
12
|
%
|
|
(83
|
)%
|
|
12
|
%
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Servicer Solutions
|
|
$
|
185,756
|
|
|
$
|
185,086
|
|
|
—
|
|
|
$
|
369,189
|
|
|
$
|
362,932
|
|
|
2
|
|
Origination Solutions
|
|
12,658
|
|
|
12,393
|
|
|
2
|
|
|
24,198
|
|
|
22,632
|
|
|
7
|
|
||||
Total service revenue
|
|
198,414
|
|
|
197,479
|
|
|
—
|
|
|
393,387
|
|
|
385,564
|
|
|
2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Servicer Solutions
|
|
11,015
|
|
|
13,074
|
|
|
(16
|
)
|
|
20,051
|
|
|
27,948
|
|
|
(28
|
)
|
||||
Origination Solutions
|
|
79
|
|
|
55
|
|
|
44
|
|
|
178
|
|
|
99
|
|
|
80
|
|
||||
Total reimbursable expenses
|
|
11,094
|
|
|
13,129
|
|
|
(16
|
)
|
|
20,229
|
|
|
28,047
|
|
|
(28
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-controlling interests
|
|
687
|
|
|
692
|
|
|
(1
|
)
|
|
1,302
|
|
|
1,090
|
|
|
19
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
|
$
|
210,195
|
|
|
$
|
211,300
|
|
|
(1
|
)
|
|
$
|
414,918
|
|
|
$
|
414,701
|
|
|
—
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
41,923
|
|
|
$
|
45,846
|
|
|
(9
|
)
|
|
$
|
84,678
|
|
|
$
|
89,817
|
|
|
(6
|
)
|
Outside fees and services
|
|
78,710
|
|
|
65,499
|
|
|
20
|
|
|
154,080
|
|
|
129,231
|
|
|
19
|
|
||||
Reimbursable expenses
|
|
11,094
|
|
|
13,129
|
|
|
(16
|
)
|
|
20,229
|
|
|
28,047
|
|
|
(28
|
)
|
||||
Technology and telecommunications
|
|
7,709
|
|
|
7,232
|
|
|
7
|
|
|
15,881
|
|
|
14,423
|
|
|
10
|
|
||||
Depreciation and amortization
|
|
4,890
|
|
|
4,017
|
|
|
22
|
|
|
9,608
|
|
|
8,248
|
|
|
16
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
|
$
|
144,326
|
|
|
$
|
135,723
|
|
|
6
|
|
|
$
|
284,476
|
|
|
$
|
269,766
|
|
|
5
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
5,947
|
|
|
$
|
5,456
|
|
|
9
|
|
|
$
|
11,101
|
|
|
$
|
10,876
|
|
|
2
|
|
Professional services
|
|
2,469
|
|
|
3,119
|
|
|
(21
|
)
|
|
4,699
|
|
|
7,128
|
|
|
(34
|
)
|
||||
Occupancy related costs
|
|
6,823
|
|
|
4,808
|
|
|
42
|
|
|
12,039
|
|
|
10,190
|
|
|
18
|
|
||||
Amortization of intangible assets
|
|
8,709
|
|
|
12,024
|
|
|
(28
|
)
|
|
17,144
|
|
|
23,418
|
|
|
(27
|
)
|
||||
Depreciation and amortization
|
|
1,006
|
|
|
984
|
|
|
2
|
|
|
1,869
|
|
|
1,911
|
|
|
(2
|
)
|
||||
Marketing costs
|
|
1,763
|
|
|
2,446
|
|
|
(28
|
)
|
|
4,235
|
|
|
4,416
|
|
|
(4
|
)
|
||||
Other
|
|
3,088
|
|
|
2,304
|
|
|
34
|
|
|
7,400
|
|
|
2,656
|
|
|
179
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
$
|
29,805
|
|
|
$
|
31,141
|
|
|
(4
|
)
|
|
$
|
58,487
|
|
|
$
|
60,595
|
|
|
(3
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumer Real Estate Solutions
|
|
$
|
1,290
|
|
|
$
|
275
|
|
|
N/M
|
|
|
$
|
1,999
|
|
|
$
|
519
|
|
|
285
|
|
Real Estate Investor Solutions
|
|
23,057
|
|
|
23,898
|
|
|
(4
|
)
|
|
41,537
|
|
|
47,055
|
|
|
(12
|
)
|
||||
Total service revenue
|
|
24,347
|
|
|
24,173
|
|
|
1
|
|
|
43,536
|
|
|
47,574
|
|
|
(8
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Investor Solutions
|
|
783
|
|
|
631
|
|
|
24
|
|
|
1,657
|
|
|
1,139
|
|
|
45
|
|
||||
Total reimbursable expenses
|
|
783
|
|
|
631
|
|
|
24
|
|
|
1,657
|
|
|
1,139
|
|
|
45
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
|
$
|
25,130
|
|
|
$
|
24,804
|
|
|
1
|
|
|
$
|
45,193
|
|
|
$
|
48,713
|
|
|
(7
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
$
|
10,148
|
|
|
$
|
7,644
|
|
|
33
|
|
$
|
19,390
|
|
|
$
|
13,162
|
|
|
47
|
Outside fees and services
|
|
13,783
|
|
|
7,102
|
|
|
94
|
|
23,434
|
|
|
14,522
|
|
|
61
|
||||
Reimbursable expenses
|
|
783
|
|
|
631
|
|
|
24
|
|
1,657
|
|
|
1,139
|
|
|
45
|
||||
Technology and telecommunications
|
|
1,734
|
|
|
1,267
|
|
|
37
|
|
3,456
|
|
|
2,108
|
|
|
64
|
||||
Depreciation and amortization
|
|
396
|
|
|
210
|
|
|
89
|
|
1,050
|
|
|
381
|
|
|
176
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
|
$
|
26,844
|
|
|
$
|
16,854
|
|
|
59
|
|
$
|
48,987
|
|
|
$
|
31,312
|
|
|
56
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
1,138
|
|
|
$
|
379
|
|
|
200
|
|
|
$
|
1,737
|
|
|
$
|
910
|
|
|
91
|
|
Professional services
|
|
312
|
|
|
212
|
|
|
47
|
|
|
635
|
|
|
604
|
|
|
5
|
|
||||
Occupancy related costs
|
|
1,050
|
|
|
646
|
|
|
63
|
|
|
1,722
|
|
|
1,066
|
|
|
62
|
|
||||
Amortization of intangible assets
|
|
211
|
|
|
232
|
|
|
(9
|
)
|
|
422
|
|
|
548
|
|
|
(23
|
)
|
||||
Depreciation and amortization
|
|
225
|
|
|
158
|
|
|
42
|
|
|
381
|
|
|
250
|
|
|
52
|
|
||||
Marketing costs
|
|
1,880
|
|
|
3,443
|
|
|
(45
|
)
|
|
3,604
|
|
|
7,480
|
|
|
(52
|
)
|
||||
Other
|
|
735
|
|
|
550
|
|
|
34
|
|
|
1,375
|
|
|
936
|
|
|
47
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
$
|
5,551
|
|
|
$
|
5,620
|
|
|
(1
|
)
|
|
$
|
9,876
|
|
|
$
|
11,794
|
|
|
(16
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Customer relationship management
|
|
$
|
7,503
|
|
|
$
|
9,374
|
|
|
(20
|
)
|
|
$
|
14,860
|
|
|
$
|
20,275
|
|
|
(27
|
)
|
Asset recovery management
|
|
6,120
|
|
|
6,478
|
|
|
(6
|
)
|
|
12,197
|
|
|
12,760
|
|
|
(4
|
)
|
||||
IT infrastructure services
|
|
1,723
|
|
|
3,820
|
|
|
(55
|
)
|
|
3,966
|
|
|
9,431
|
|
|
(58
|
)
|
||||
Total service revenue
|
|
15,346
|
|
|
19,672
|
|
|
(22
|
)
|
|
31,023
|
|
|
42,466
|
|
|
(27
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset recovery management
|
|
14
|
|
|
23
|
|
|
(39
|
)
|
|
34
|
|
|
51
|
|
|
(33
|
)
|
||||
Total reimbursable expenses
|
|
14
|
|
|
23
|
|
|
(39
|
)
|
|
34
|
|
|
51
|
|
|
(33
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
|
$
|
15,360
|
|
|
$
|
19,695
|
|
|
(22
|
)
|
|
$
|
31,057
|
|
|
$
|
42,517
|
|
|
(27
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
10,595
|
|
|
$
|
16,283
|
|
|
(35
|
)
|
|
$
|
21,690
|
|
|
$
|
31,857
|
|
|
(32
|
)
|
Outside fees and services
|
|
876
|
|
|
725
|
|
|
21
|
|
|
1,749
|
|
|
1,376
|
|
|
27
|
|
||||
Reimbursable expenses
|
|
14
|
|
|
23
|
|
|
(39
|
)
|
|
34
|
|
|
51
|
|
|
(33
|
)
|
||||
Technology and telecommunications
|
|
1,498
|
|
|
2,204
|
|
|
(32
|
)
|
|
2,955
|
|
|
4,112
|
|
|
(28
|
)
|
||||
Depreciation and amortization
|
|
1,240
|
|
|
2,559
|
|
|
(52
|
)
|
|
3,455
|
|
|
4,760
|
|
|
(27
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
|
$
|
14,223
|
|
|
$
|
21,794
|
|
|
(35
|
)
|
|
$
|
29,883
|
|
|
$
|
42,156
|
|
|
(29
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
$
|
8,456
|
|
|
$
|
8,489
|
|
|
—
|
|
|
$
|
15,209
|
|
|
$
|
16,529
|
|
|
(8
|
)
|
Professional services
|
|
1,586
|
|
|
3,365
|
|
|
(53
|
)
|
|
2,763
|
|
|
5,704
|
|
|
(52
|
)
|
||||
Occupancy related costs
|
|
1,665
|
|
|
3,345
|
|
|
(50
|
)
|
|
6,050
|
|
|
6,626
|
|
|
(9
|
)
|
||||
Amortization of intangible assets
|
|
473
|
|
|
500
|
|
|
(5
|
)
|
|
973
|
|
|
1,001
|
|
|
(3
|
)
|
||||
Depreciation and amortization
|
|
1,130
|
|
|
1,210
|
|
|
(7
|
)
|
|
2,532
|
|
|
2,796
|
|
|
(9
|
)
|
||||
Marketing costs
|
|
54
|
|
|
(218
|
)
|
|
(125
|
)
|
|
127
|
|
|
267
|
|
|
(52
|
)
|
||||
Other
|
|
3,750
|
|
|
755
|
|
|
N/M
|
|
|
4,154
|
|
|
2,511
|
|
|
65
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
17,114
|
|
|
17,446
|
|
|
(2
|
)
|
|
31,808
|
|
|
35,434
|
|
|
(10
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other expenses, net
|
|
764
|
|
|
3,322
|
|
|
(77
|
)
|
|
5,857
|
|
|
9,946
|
|
|
(41
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total corporate costs
|
|
$
|
17,878
|
|
|
$
|
20,768
|
|
|
(14
|
)
|
|
$
|
37,665
|
|
|
$
|
45,380
|
|
|
(17
|
)
|
(in thousands)
|
|
2017
|
|
2016
|
|
% Increase (decrease)
|
|||||
|
|
|
|
|
|
|
|||||
Net income adjusted for non-cash items
|
|
$
|
58,530
|
|
|
$
|
83,015
|
|
|
(29
|
)
|
Changes in operating assets and liabilities
|
|
(46,013
|
)
|
|
(13,610
|
)
|
|
(238
|
)
|
||
Net
cash provided by operating activities
|
|
12,517
|
|
|
69,405
|
|
|
(82
|
)
|
||
Net cash used in investing activities
|
|
(5,929
|
)
|
|
(60,670
|
)
|
|
90
|
|
||
Net cash used in financing activities
|
|
(41,677
|
)
|
|
(67,576
|
)
|
|
38
|
|
||
Net decrease in cash and cash equivalents
|
|
(35,089
|
)
|
|
(58,841
|
)
|
|
40
|
|
||
Cash and cash equivalents at the beginning of the period
|
|
149,294
|
|
|
179,327
|
|
|
(17
|
)
|
||
|
|
|
|
|
|
|
|||||
Cash and cash equivalents at the end of the period
|
|
$
|
114,205
|
|
|
$
|
120,486
|
|
|
(5
|
)
|
a)
|
Evaluation of Disclosure Controls and Procedures
|
b)
|
Internal Control over Financial Reporting
|
Period
|
|
Total number of shares purchased
|
|
Weighted average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
(1)
|
|
Maximum number of shares that may yet be purchased under the plans or programs
(1)
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Common stock:
|
|
|
|
|
|
|
|
|
|||||
April 1 – 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,460,598
|
|
May 1 – 31, 2017
|
|
245,663
|
|
|
20.08
|
|
|
245,663
|
|
|
4,390,108
|
|
|
June 1 – 30, 2017
|
|
170,443
|
|
|
17.85
|
|
|
170,443
|
|
|
4,219,665
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
416,106
|
|
|
$
|
19.17
|
|
|
416,106
|
|
|
4,219,665
|
|
(1)
|
On
May 17, 2017
, our shareholders approved the renewal of the share repurchase program originally approved by the shareholders on
May 18, 2016
, which replaced the previous share repurchase program and authorizes us to purchase up to
4.6 million
shares of our common stock in the open market, subject to certain parameters.
|
|
|
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
August 9, 2017
|
By:
|
/s/ Michelle D. Esterman
|
|
|
|
Michelle D. Esterman
|
|
|
|
Chief Financial Officer
|
|
|
|
(On behalf of the Registrant and as its Principal Financial Officer)
|
•
|
a distributable reserve to be used for distributions of any kind to be made by the Company;
|
•
|
a special reserve as foreseen by Articles 49-5, 49-8 and 72-1 of the Law.
|
•
|
Realize any increase of the issued share capital within the limits of the authorized share capital in one or several times, by the issuing of new Shares, grant of options, warrants or other similar instruments exercisable into Shares, rights to subscribe for
|
•
|
Determine the terms and conditions of any increase of the issued share capital, including, but not limited to, the place and date of the issue or the successive issues, the issue price, the amount of new Shares to be issued, whether the new Shares are to be issued and subscribed, with or without an issue premium and the terms and conditions of the subscription of and paying up of the new Shares (in cash or in kind or by incorporation of available reserves or funds available on the capital contribution account (
compte 115 "Apport en capitaux propres non rémunéré par des titres"
), share premium account or retained earnings). If the consideration payable to the Company for newly issued Shares exceeds the par value of those Shares, the excess is to be treated as share premium in respect of the Shares in the books of the Company.
|
•
|
Limit or waive the preferential subscription right reserved to the then existing shareholder(s) in case of issue of Shares against payment in cash, by the issue of Shares up to an amount not to exceed the authorized share capital and by cancelling or limiting the existing shareholders’ preferential right to subscribe to such Shares in relation to the employee share option scheme program of the Company.
|
•
|
Do all things necessary to amend Articles 5 and 6 of the Articles in order to record the change of the issued share capital following any increase pursuant to the present Article. The Board of Directors is empowered to take or authorize the actions required for the execution and publication of such amendment in accordance with the Law. Furthermore, the Board of Directors may delegate to any duly authorized Director (as defined in Article 11) or officer of the Company, to an appointed committee thereof or to any other duly authorized person, the duties of accepting subscriptions and receiving payment for Shares or doing all things necessary to amend Articles 5 and 6 of the present Articles in order to record the change of share capital following any increase pursuant to the present Article.
|
•
|
The joint signature of any two Directors;
|
•
|
The individual signature of the member(s) of a management committee, if such committee has been formed by the Board of Directors; and
|
•
|
The signature of a management director, if one has been appointed by the Board of Directors;
|
•
|
The individual signature of any other person to whom the Board has delegated the daily management of the Company in accordance with this Article, and then only within the scope of the daily management.
|
•
|
The individual signature of any person(s) to whom signing authority has been delegated by the Board of Directors;
|
•
|
The name, address and any other pertinent information concerning the shareholder.
|
•
|
The number of votes the shareholder wishes to cast, the direction of his or her votes, or his or her abstention.
|
•
|
The agenda of the meeting including the draft of resolutions.
|
•
|
The option to vote by proxy for any new resolution or any modification of the resolutions properly submitted to the general meeting between the date the shareholder submits his or her form through the meeting date.
|
•
|
The signature of the shareholder.
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the period ended
June 30, 2017
of Altisource Portfolio Solutions S.A.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 9, 2017
|
By:
|
/s/ William B. Shepro
|
|
|
|
William B. Shepro
|
|
|
|
Director and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the period ended
June 30, 2017
of Altisource Portfolio Solutions S.A.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 9, 2017
|
By:
|
/s/ Michelle D. Esterman
|
|
|
|
Michelle D. Esterman
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer and
Principal Accounting Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
/s/ William B. Shepro
|
|
By:
|
/s/ Michelle D. Esterman
|
|
William B. Shepro
|
|
|
Michelle D. Esterman
|
|
Director and Chief Executive Officer
|
|
|
Chief Financial Officer
|
|
(Principal Executive Officer)
|
|
|
(Principal Financial Officer and
Principal Accounting Officer)
|
|
August 9, 2017
|
|
|
August 9, 2017
|