CoreLogic reported Q1 revenues of $418 million, down 6% primarily reflecting the impacts of an estimated 10% to 15% drop in U.S. mortgage volumes and lower revenues attributable to appraisal management company (AMC) operations and non-core mortgage and default technology related platforms.
Operating and net income from continuing operations were $21 million and $2 million, 52% and 94% below prior year levels, driven by the impacts of lower revenues and higher costs related to productivity programs and efficiency actions.
“CoreLogic is off to a strong start in 2019. We delivered solid financial results highlighted by adjusted EBITDA above our expected range, despite significant mortgage market headwinds. We also reduced our run-rate costs significantly and drove productivity. In addition, we pressed forward with our AMC transformation and the exit of non-core mortgage and default technology units,” said Frank Martell, President and Chief Executive Officer of CoreLogic. “As market leaders, we are continuing to reinvest in our business with a focus on building our core capabilities in data and technology, which we expect will be a foundation for future growth and margin expansion,” Martell added.
First Quarter Financial Summary: First quarter reported revenues totaled $418 million, down 6% from 2018. The decline in revenue resulted principally from lower U.S. mortgage market activity, AMC volumes, and the wind-down of non-core mortgage and default technology related platforms, partially offset by 2018 acquisitions. Property Intelligence & Risk Management Solutions (PIRM) revenues rose 1% from 2018 levels to $176 million. Underwriting & Workflow Solutions (UWS) revenues totaled $245 million, down 11% from 2018 levels.
Operating income from continuing operations totaled $21 million for the first quarter compared with $44 million in 2018. The decline in operating income was driven by the impact of lower revenues, partially offset by cost management benefits. The Company also incurred higher levels of investments related to productivity programs which totaled $8 million and discrete efficiency-related charges of $5 million.
First quarter net income from continuing operations totaled $2 million, compared with $28 million, reflecting lower operating income levels discussed previously and modestly higher interest expense and tax provisions. Diluted EPS from continuing operations totaled $0.02 for the first quarter of 2019 compared with $0.34 in 2018. Adjusted EPS totaled $0.45 compared with $0.52 in the first quarter of 2018.
Adjusted EBITDA totaled $98 million in the first quarter compared with $103 million in the same prior year period. The year-over-year reduction in adjusted EBITDA resulted principally from lower revenues, partially offset by cost management benefits. Adjusted EBITDA margin was 23%, up approximately 20 basis points. PIRM segment adjusted EBITDA totaled $46 million compared to $50 million in 2018. UWS adjusted EBITDA was $63 million, compared to $65 million in 2018.
Source: CoreLogic Earnings Release