Adjusted revenues in the default and technology services group fell 1 percent to $102.6 million from $104.1 million in the year-ago period. Excluding acquisitions, adjusted revenues declined 8 percent from the year-ago period. Contributing to this decline was an approximate 35 percent reduction in the volume of broker price opinion orders as industry participants sought to reduce the costs associated with loans in the foreclosure process. Partially offsetting these declines were higher revenues from field services and REO asset management. The inventory of REO properties under management increased 25 percent from the prior year on market share gains.
Adjusted EBITDA margin for the segment was 18 percent, down from 21 percent in the year-ago period. Adjusted EBITDA margin in the mortgage originations services group decreased to 20 percent from 23 percent due to reduced earnings from the company's national joint ventures, particularly related to lower appraisal volumes. Adjusted EBITDA margin in the default and technology group decreased to 17 percent from 19 percent as a result of an unfavorable shift in product mix more heavily weighted towards lower-margin field services and default outsourcing.
LIQUIDITY AND CAPITAL RESOURCES
Year to date through April 30, 2011, CoreLogic repurchased a total of 7 million common shares for $131 million. At March 31, 2011, CoreLogic had cash on balance sheet of $150 million. Total debt as of May 2, 2011, was approximately $825 million and available capacity on the credit facility was approximately $195 million.
In April 2011, the company initiated the renewal of its revolving credit facility and the refinancing of its $350 million term-loan facility. It is anticipated these transactions will close in the second quarter of 2011.
During the first quarter of 2011, CoreLogic announced an agreement with the independent board of directors of RP Data Limited to recommend to RP Data Limited shareholders the acquisition by CoreLogic of all of the outstanding shares of RP Data Limited. The company has received all necessary approvals and anticipate the transaction will close in May of 2011.
The CoreLogic management team will host a live webcast and conference call on Thursday, May 5, 2011, at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss these results. All interested parties are invited to listen to the live event via webcast on the CoreLogic website at http://investor.corelogic.com. The discussion is also available through dial-in number 1-800-591-6945for U.S./Canada participants or 617-614-4911 for international participants using Conference ID 69030737.
A replay of the webcast will be available on the CoreLogic investor website for 30 days and also through the conference call number 1-888-286-8010 for U.S./Canada participants or 617-801-6888 for international participants using Conference ID 98342648.
Additional detail on the company's first quarter financial results is included in the quarterly supplement, available on the Investor Relations page at http://investor.corelogic.com.
CoreLogic is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly, the information solutions group of The First American Corporation, CoreLogic began trading under the ticker symbol CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2010 revenues of $1.6 billion. For more information visit www.corelogic.com.
Web Site Disclosure
CoreLogic posts information of interest to investors at http://investor.corelogic.com.
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the company's outlook, including overall financial performance, future growth, including earnings and revenue growth performance, the planned renewal and refinancing of the company's credit facility, and the anticipated closing of the acquisition of RP Data Limited. These forward-looking statements may contain the words "believe," "anticipate," "expect," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases. Risks and uncertainties exist that may cause 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 are set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K for the year ended December 31, 2010, as updated by our Quarterly Reports on Form 10-Q, including but not limited to:
- limitations on access to 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 which may, among other things, limit the manner in which we conduct business with our customers;
- compromises in the security of our data transmissions, including the transmission of confidential information or systems interruptions;
- difficult conditions in the mortgage and consumer credit industry, including the continued decline in mortgage applications, declines in the level of loans seriously delinquent and continued delays in the default cycle, the state of the securitization market, increased unemployment, and conditions in the economy generally;
- our ability to bring new products to market and to protect proprietary technology rights;
- our ability to identify suitable acquisition targets, obtain necessary capital and complete such transactions on satisfactory terms;
- risks related to our international operations;
- consolidation among our significant customers and competitors;
- impairments in our goodwill or other intangible assets; and
- the inability to realize the benefits of the spin-off transaction as a result of the factors described immediately above, as well as, among other factors, increased borrowing costs, competition between the resulting companies, increased operating or other expenses or the triggering of rights and obligations by the transaction or any litigation arising out of or related to the separation.
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.
Use of Non-GAAP Financial Measures
This press release contains certain financial measures that are not presented in accordance with Generally Accepted Accounting Principles (GAAP), including adjusted revenue which includes equity in earnings of affiliates; adjusted EBITDA, adjusted EBITDA margin and adjusted pretax margin which is adjusted to exclude historical corporate expense of the spun-off businesses, net realized investment losses, employee separation costs, lease termination costs and other adjustments. Although these exclusions represent actual losses or expenses to the company, they may mask the periodic income and financial and operating trends associated with the company's business. To compensate for the inherent limitations of these non-GAAP measures, the company uses them in conjunction with the corresponding GAAP measures.
The company is presenting these non-GAAP financial measures because the company believes that they provide the company's management and investors with additional insight into the operational performance of the company relative to earlier periods. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this press release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.