CoreLogic reported Q1 2014 revenues of $310.4 million down 6% as market share gains in Technology and Processing Solutions (TPS) and growth in insurance and spatial solutions and international operations partially offset the impact of an estimated 60% contraction in U.S. mortgage origination volumes.
Operating income from continuing operations decreased 71% to $13.7 million reflecting the impact of lower mortgage origination volumes as well as acquisition-related costs, severance charges and stranded AMPS costs. Net loss from continuing operations totaled $3.9 million. Diluted EPS from continuing operations totaled $(0.04). Adjusted diluted EPS was $0.17.
TPS revenues fell 11% to $169.3 million as the benefit of market share gains in payment processing were more than offset by the impact of lower mortgage origination volumes and project-related document processing and retrieval revenues.
D&A revenues fell 2% to $142.5 million driven principally by the impact of lower origination volumes, unfavorable currency translation and declines in specialty credit and multifamily tenant screening revenues which more than offset growth in insurance and spatial solutions and property information revenues in Australia and New Zealand (Pacific region).
Cost Reduction Programs: During the fourth quarter of 2013, CoreLogic launched a cost reduction program designed to lower 2014 operating expenses by at least $25 million. Cost savings relate primarily to workforce reductions, the outsourcing of certain business process functions and cuts in spending on real estate and outside services. Severance charges and savings associated with this program totaled $0.3 million and $7.2 million, respectively, for the first quarter of 2014.
CoreLogic launched the Technology Transformation Initiative (TTI) during mid-2012. The primary objective of the TTI is to convert the Company’s existing technology infrastructure to a new platform which is expected to provide new functionality, increased performance and a reduction in application management and development costs commencing in mid-2015. First quarter 2014 cash and non-cash charges related to TTI implementation totaled $4.6 million.
Source: CoreLogic Earnings Report