Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
This press release contains certain non-GAAP financial measures, such as adjusted EBITDA, adjusted EPS, and FCF, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the most directly comparable GAAP financial measures. These non-GAAP measures are not in accordance with, or a substitute for, U.S. GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is included in this press release. The Company believes that its presentation of these non-GAAP measures provides useful supplemental information to investors and management regarding the Company's financial condition and results of operations. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest, taxes, depreciation and amortization, share-based compensation, non-operating gains/losses, and other adjustments. Adjusted EPS is defined as diluted income from continuing operations, net of tax per share, adjusted for share-based compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments; and assumes an effective tax rate of 26% and 25% for 2020 and 2019, respectively. FCF is defined as net cash provided by continuing operating activities, less capital expenditures for purchases of property and equipment, capitalized data, and other intangible assets. Other firms may calculate non-GAAP measures differently than the Company, which limits comparability between companies.
CoreLogic, Inc. Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
|||||||
|
For the Three Months Ended March 31, |
|||||||
(in thousands, except per share amounts) |
2020 |
|
2019 |
|||||
Operating revenues |
$ |
443,885 |
|
|
$ |
417,708 |
|
|
Cost of services (excluding depreciation and amortization shown below) |
215,565 |
|
|
219,061 |
|
|||
Selling, general and administrative expenses |
114,406 |
|
|
128,224 |
|
|||
Depreciation and amortization |
46,843 |
|
|
49,219 |
|
|||
Total operating expenses |
376,814 |
|
|
396,504 |
|
|||
Operating income |
67,071 |
|
|
21,204 |
|
|||
Interest expense: |
|
|
|
|||||
Interest income |
414 |
|
|
978 |
|
|||
Interest expense |
18,193 |
|
|
19,703 |
|
|||
Total interest expense, net |
(17,779 |
) |
|
(18,725 |
) |
|||
(Loss)/gain on investments and other, net |
(3,047 |
) |
|
734 |
|
|||
| Income from continuing operations before equity in earnings/(losses) of affiliates and income taxes |
46,245 |
|
|
3,213 |
|
|||
| Provision for income taxes |
12,951 |
|
|
1,058 |
|
|||
| Income from continuing operations before equity in earnings/(losses) of affiliates |
33,294 |
|
|
2,155 |
|
|||
| Equity in earnings/(losses) of affiliates, net of tax |
512 |
|
|
(422 |
) |
|||
| Net income from continuing operations |
33,806 |
|
|
1,733 |
|
|||
| Income/(loss) from discontinued operations, net of tax |
13 |
|
|
(46 |
) |
|||
| Net income |
$ |
33,819 |
|
|
$ |
1,687 |
|
|
|
|
|
|
|
|||||
| Basic income per share: |
|
|
|
|||||
| Net income from continuing operations |
$ |
0.43 |
|
|
$ |
0.02 |
|
|
| Income/(loss) from discontinued operations, net of tax |
— |
|
|
— |
|
|||
| Net income |
$ |
0.43 |
|
|
$ |
0.02 |
|
|
| Diluted income per share: |
|
|
|
|||||
| Net income from continuing operations |
$ |
0.42 |
|
|
$ |
0.02 |
|
|
| Income/(loss) from discontinued operations, net of tax |
— |
|
|
— |
|
|||
| Net income |
$ |
0.42 |
|
|
$ |
0.02 |
|
|
| Weighted-average common shares outstanding: |
|
|
|
|||||
| Basic |
79,028 |
|
|
80,179 |
|
|||
| Diluted |
80,525 |
|
|
81,277 |
|
|||
| Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||
| CoreLogic, Inc. Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
| (in thousands, except par value) |
March 31, |
|
December 31, |
|||||
| Assets |
2020 |
|
2019 |
|||||
| Current assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
152,822 |
|
|
$ |
105,185 |
|
|
| Accounts receivable (less allowance for credit losses of $7,236 and $7,161 as of March 31, 2020 and December 31, 2019, respectively) |
285,528 |
|
|
281,392 |
|
|||
| Prepaid expenses and other current assets |
54,453 |
|
|
59,972 |
|
|||
| Total current assets |
492,803 |
|
|
446,549 |
|
|||
| Property and equipment, net |
443,998 |
|
|
451,021 |
|
|||
| Operating lease assets |
61,754 |
|
|
65,825 |
|
|||
| Goodwill, net |
2,381,309 |
|
|
2,396,096 |
|
|||
| Other intangible assets, net |
364,425 |
|
|
378,818 |
|
|||
| Capitalized data and database costs, net |
320,226 |
|
|
327,078 |
|
|||
| Investment in affiliates, net |
11,339 |
|
|
16,666 |
|
|||
| Other assets |
71,753 |
|
|
76,604 |
|
|||
| Total assets |
$ |
4,147,607 |
|
|
$ |
4,158,657 |
|
|
| Liabilities and Equity |
|
|
|
|||||
| Current liabilities: |
|
|
|
|||||
| Accounts payable and other accrued expenses |
$ |
174,007 |
|
|
$ |
173,989 |
|
|
| Accrued salaries and benefits |
66,643 |
|
|
86,598 |
|
|||
| Contract liabilities, current |
341,068 |
|
|
321,647 |
|
|||
| Current portion of long-term debt |
77,724 |
|
|
56,022 |
|
|||
| Operating lease liabilities, current |
17,532 |
|
|
18,058 |
|
|||
| Total current liabilities |
676,974 |
|
|
656,314 |
|
|||
| Long-term debt, net of current |
1,589,507 |
|
|
1,610,538 |
|
|||
| Contract liabilities, net of current |
568,964 |
|
|
563,246 |
|
|||
| Deferred income tax liabilities |
85,008 |
|
|
110,396 |
|
|||
| Operating lease liabilities, net of current |
80,301 |
|
|
85,139 |
|
|||
| Other liabilities |
219,855 |
|
|
181,814 |
|
|||
| Total liabilities |
3,220,609 |
|
|
3,207,447 |
|
|||
|
|
|
|
|
|||||
| Stockholders' equity: |
|
|
|
|||||
| Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding |
— |
|
|
— |
|
|||
| Common stock, $0.00001 par value; 180,000 shares authorized; 79,411 and 78,972 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively |
1 |
|
|
1 |
|
|||
| Additional paid-in capital |
111,481 |
|
|
111,000 |
|
|||
| Retained earnings |
1,057,692 |
|
|
1,006,992 |
|
|||
| Accumulated other comprehensive loss |
(242,176 |
) |
|
(166,783 |
) |
|||
| Total stockholders' equity |
926,998 |
|
|
951,210 |
|
|||
| Total liabilities and equity |
$ |
4,147,607 |
|
|
$ |
4,158,657 |
|
|
| Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||
| CoreLogic, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
|||||||
|
|
For the Three Months Ended March 31, |
|||||||
| (in thousands) |
2020 |
|
2019 |
|||||
| Cash flows from operating activities: |
|
|
|
|||||
| Net income |
$ |
33,819 |
|
|
$ |
1,687 |
|
|
| Less: Income/(loss) from discontinued operations, net of tax |
13 |
|
|
(46 |
) |
|||
| Net income from continuing operations |
33,806 |
|
|
1,733 |
|
|||
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: |
|
|
|
|||||
| Depreciation and amortization |
46,843 |
|
|
49,219 |
|
|||
| Amortization of debt issuance costs |
1,235 |
|
|
1,302 |
|
|||
| Amortization of operating lease assets |
3,656 |
|
|
4,036 |
|
|||
| Provision for bad debt and claim losses |
3,362 |
|
|
3,788 |
|
|||
| Share-based compensation |
8,085 |
|
|
9,892 |
|
|||
| Equity in (earnings)/losses of affiliates, net of taxes |
(512 |
) |
|
422 |
|
|||
| Deferred income tax |
2,092 |
|
|
4,346 |
|
|||
| Loss/(gain) on investments and other, net |
3,047 |
|
|
(734 |
) |
|||
| Change in operating assets and liabilities, net of acquisitions: |
|
|
|
|||||
| Accounts receivable |
(4,011 |
) |
|
(5,489 |
) |
|||
| Prepaid expenses and other current assets |
3,677 |
|
|
(2,778 |
) |
|||
| Accounts payable and other accrued expenses |
(8,112 |
) |
|
(7,665 |
) |
|||
| Contract liabilities |
24,372 |
|
|
173 |
|
|||
| Income taxes |
4,930 |
|
|
10,966 |
|
|||
| Dividends received from investments in affiliates |
185 |
|
|
— |
|
|||
| Other assets and other liabilities |
(9,808 |
) |
|
(4,630 |
) |
|||
| Net cash provided by operating activities - continuing operations |
112,847 |
|
|
64,581 |
|
|||
| Net cash provided by operating activities - discontinued operations |
18 |
|
|
— |
|
|||
| Total cash provided by operating activities |
$ |
112,865 |
|
|
$ |
64,581 |
|
|
| Cash flows from investing activities: |
|
|
|
|||||
| Purchases of property and equipment |
$ |
(14,312 |
) |
|
$ |
(24,020 |
) |
|
| Purchases of capitalized data and other intangible assets |
(9,464 |
) |
|
(8,947 |
) |
|||
| Cash paid for acquisitions, net of cash acquired |
(11,760 |
) |
|
— |
|
|||
| Purchases of investments |
(631 |
) |
|
— |
|
|||
| Cash received from sale of business-lines |
— |
|
|
1,082 |
|
|||
| Proceeds from investments and other |
651 |
|
|
1,157 |
|
|||
| Net cash used in investing activities - continuing operations |
(35,516 |
) |
|
(30,728 |
) |
|||
| Net cash provided by investing activities - discontinued operations |
— |
|
|
— |
|
|||
| Total cash used in investing activities |
$ |
(35,516 |
) |
|
$ |
(30,728 |
) |
|
| Cash flows from financing activities: |
|
|
|
|||||
| Repayment of long-term debt |
$ |
(723 |
) |
|
$ |
(25,563 |
) |
|
| Proceeds from issuance of shares in connection with share-based compensation |
2,932 |
|
|
2,758 |
|
|||
| Payment of tax withholdings related to net share settlements |
(8,051 |
) |
|
(8,551 |
) |
|||
| Shares repurchased and retired |
(2,431 |
) |
|
— |
|
|||
| Dividends paid |
(17,374 |
) |
|
— |
|
|||
| Contingent consideration payments subsequent to acquisitions |
— |
|
|
(600 |
) |
|||
| Net cash used in financing activities - continuing operations |
(25,647 |
) |
|
(31,956 |
) |
|||
| Net cash provided by financing activities - discontinued operations |
— |
|
|
— |
|
|||
| Total cash used in financing activities |
$ |
(25,647 |
) |
|
$ |
(31,956 |
) |
|
| Effect of exchange rate on cash, cash equivalents, and restricted cash |
(4,690 |
) |
|
(200 |
) |
|||
| Net change in cash, cash equivalents, and restricted cash |
47,012 |
|
|
1,697 |
|
|||
| Cash, cash equivalents, and restricted cash at beginning of period |
115,702 |
|
|
98,250 |
|
|||
| Less: Change in cash, cash equivalents, and restricted cash - discontinued operations |
18 |
|
|
— |
|
|||
| Plus: Cash swept from discontinued operations |
18 |
|
|
— |
|
|||
| Cash, cash equivalents, and restricted cash at end of period |
$ |
162,714 |
|
|
$ |
99,947 |
|
|
| Please refer to the full Form 10-Q filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||
| CoreLogic, Inc. Reconciliation of Adjusted EBITDA (Unaudited) |
||||||||||||||||||||
|
|
For the Three Months Ended March 31, 2020 |
|||||||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||||||
| Net income/(loss) from continuing operations |
$ |
19,232 |
|
$ |
76,433 |
|
$ |
(61,859 |
) |
$ |
— |
|
$ |
33,806 |
|
|||||
| Income taxes |
— |
|
— |
|
13,121 |
|
— |
|
13,121 |
|
||||||||||
| Depreciation and amortization |
25,011 |
|
13,245 |
|
8,587 |
|
— |
|
46,843 |
|
||||||||||
| Interest expense/(income), net |
419 |
|
(10 |
) |
17,370 |
|
— |
|
17,779 |
|
||||||||||
| Share-based compensation |
1,573 |
|
976 |
|
5,536 |
|
— |
|
8,085 |
|
||||||||||
| Non-operating losses/(gains) |
685 |
|
(809 |
) |
3,464 |
|
— |
|
3,340 |
|
||||||||||
| Efficiency investments and other |
484 |
|
509 |
|
3,965 |
|
— |
|
4,958 |
|
||||||||||
| Transaction costs |
1,348 |
|
223 |
|
903 |
|
— |
|
2,474 |
|
||||||||||
| Adjusted EBITDA |
$ |
48,752 |
|
$ |
90,567 |
|
$ |
(8,913 |
) |
$ |
— |
|
$ |
130,406 |
|
|||||
|
|
For the Three Months Ended March 31, 2019 |
|||||||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||||||
| Net income/(loss) from continuing operations |
$ |
11,387 |
|
$ |
45,435 |
|
$ |
(55,089 |
) |
$ |
— |
|
$ |
1,733 |
|
|||||
| Income taxes |
— |
|
— |
|
919 |
|
— |
|
919 |
|
||||||||||
| Depreciation and amortization |
26,799 |
|
15,775 |
|
6,645 |
|
— |
|
49,219 |
|
||||||||||
| Interest expense, net |
247 |
|
81 |
|
18,397 |
|
— |
|
18,725 |
|
||||||||||
| Share-based compensation |
1,750 |
|
1,623 |
|
6,519 |
|
— |
|
9,892 |
|
||||||||||
| Non-operating losses |
2,275 |
|
— |
|
269 |
|
— |
|
2,544 |
|
||||||||||
| Efficiency investments and other |
1,667 |
|
463 |
|
10,989 |
|
— |
|
13,119 |
|
||||||||||
| Transaction costs |
1,698 |
|
— |
|
(12 |
) |
— |
|
1,686 |
|
||||||||||
| Adjusted EBITDA |
$ |
45,823 |
|
$ |
63,377 |
|
$ |
(11,363 |
) |
$ |
— |
|
$ |
97,837 |
|
|||||
| CoreLogic, Inc. Reconciliation of Adjusted EPS (Unaudited) |
||||||||
|
|
For the Three Months Ended March 31, |
|||||||
| (Diluted income per share) |
2020 |
|
2019 |
|||||
| Net income from continuing operations |
$ |
0.42 |
|
|
$ |
0.02 |
|
|
| Share-based compensation |
0.10 |
|
|
0.12 |
|
|||
| Non-operating losses |
0.04 |
|
|
0.03 |
|
|||
| Efficiency investments and other |
0.06 |
|
|
0.16 |
|
|||
| Transaction costs |
0.03 |
|
|
0.02 |
|
|||
| Depreciation and amortization of acquired software and intangibles |
0.21 |
|
|
0.24 |
|
|||
| Income tax effect on adjustments |
(0.10 |
) |
|
(0.14 |
) |
|||
| Adjusted EPS |
$ |
0.76 |
|
|
$ |
0.45 |
|
|
| CoreLogic, Inc. Reconciliation to Free Cash Flow (Unaudited) |
||||
| (in thousands) |
|
For the Twelve Months Ended March 31, 2020 |
||
| Net cash provided by operating activities - continuing operations |
|
$ |
437,289 |
|
| Purchases of property and equipment |
|
(81,864 |
) |
|
| Purchases of capitalized data and other intangible assets |
|
(40,536 |
) |
|
| Free cash flow |
|
$ |
314,889 |
|
