• CoreLogic_LogoRevenues up 12% to $364.8 million fueled by 19% growth in Data and Analytics (D&A) revenues.  Technology & Processing Solutions (TPS) revenues up 6%.
  • Operating income from continuing operations up 232% to $49.3 million reflecting the benefits of revenue growth, favorable business mix and cost productivity.
  • Net income from continuing operations up $32.5 million to $29.3 million.  Diluted EPS of $0.32 versus prior year $0.03 loss.  Adjusted EPS up 156% to $0.46.
  • Adjusted EBITDA up 54% to $100.9 million; adjusted EBITDA margin up 760 basis points to 28%.
  • Company confirms expanded program to lower operating costs by $60 million over three years.
  • Credit facility amended to increase borrowing capacity, expand flexibility and reduce interest expense.

CoreLogic, one of the leading global property information, analytics and data-enabled services providers, reported revenue growth of 12% to US$364.8 million fueled by 19% growth in analytics.

First quarter revenues increased 12% from prior year levels to $364.8 million.  Revenue growth was principally attributable to higher demand for property data, analytics and underwriting solutions as well as market share gains and the benefits of the acquisition of Marshall & Swift /Boeckh (MSB) and DataQuick (DQ).

CoreLogic Q1 2015D&A revenues rose 19% compared with prior year to $165.6 million driven principally by gains in insurance, international and core property data, which more than offset the impact of unfavorable foreign currency translation and lower multifamily services revenues.  TPS revenues increased 6% year-over-year to $201.6 million driven primarily by higher demand for underwriting solutions which more than offset lower specialty credit and project-related document processing and retrieval revenues.

Operating income from continuing operations totaled $49.3 million for the first quarter compared with $14.8 million for the first quarter of 2014.  The 232% increase in operating income resulted primarily from higher revenues, favorable operating leverage in our mortgage-related underwriting solutions businesses and lower expenses related to the cost efficiency programs, which were partially offset by increased depreciation and amortization associated with the acquisition of MSB and DQ.  Prior year operating income also reflected certain costs related to the Company’s strategic transformation program including transaction costs of $8.5 million related to the MSB and DQ acquisitions and costs associated with the integration of the tax and flood services operations of Bank of America (BAC tax and flood) totaling $4.4 million, which had no 2015 counterpart.  First quarter 2015 operating income margin was 14%, up from 5%.

First quarter net income from continuing operations totaled $29.3 million compared with a net loss of $3.2 million in 2014.  The $32.5 million year-over-year jump was primarily driven by higher operating income and lower interest costs, which more than offset the impact of increased provisions for income taxes.  Diluted EPS from continuing operations totaled $0.32 for the first quarter of 2015 compared with a loss of $0.03 in the first quarter of 2014.  Adjusted diluted EPS totaled $0.46, up 156% reflecting the positive impacts of revenue growth, margin improvement and share repurchases.

Adjusted EBITDA totaled $100.9 million in first quarter 2015 compared with $65.4 million in first quarter 2014.  First quarter 2015 adjusted EBITDA margin was 28%, up from 20% in 2014.  The increase in adjusted EBITDA and margins was principally the result of double-digit revenue growth and favorable business mix as well as lower costs resulting from ongoing cost management programs.  In addition, 2014 adjusted EBITDA included integration costs attributable to the BAC tax and flood acquisition which had no 2015 counterpart.  D&A adjusted EBITDA totaled $53.5 million, a 41% increase from 2014, as higher revenues from insurance and property information and cost containment benefits more than offset unfavorable currency translation.  TPS adjusted EBITDA increased 58% to $58.8 million as operating leverage, cost management benefits and lower acquisition-related integration costs drove improved results.

Cost Management And Technology Excellence:  In line with the Company’s demonstrated commitment to operational excellence and progressive growth in profit margins, CoreLogic is implementing an expanded three-year productivity and cost management program which is expected to reduce expense, on an annual run-rate basis, by approximately $60 million by 2018.  Savings are expected to be realized through the reduction of selling, general and administrative (SG&A) costs, outsourcing certain business process functions, consolidation of facilities and other operational improvements.  This program will incorporate expected savings from the completion of Phase I of the Company’s previously announced Technology Transformation Initiative (TTI).  TTI Phase I, which is scheduled for completion in June 2015, incorporates the transition of the Company’s existing technology infrastructure to a managed service arrangement with Dell Services. The second phase of the TTI (TTI-NextGen) relates to the development of the Company’s next generation technology platform which is designed to augment and eventually replace substantial portions of our legacy systems.  TTI-NextGen is expected to support accelerated revenue growth trends beginning in 2015.

Source: CoreLogic Earnings Report