FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
ALTISOURCE ANNOUNCES SECOND QUARTER 2020 FINANCIAL RESULTS
Second Quarter 2020
Service revenue of $91.0 million
Loss before income taxes and non-controlling interests of $(33.7) million
Adjusted pretax loss attributable to Altisource(1) of $(10.0) million
Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”)(1) of $(2.1) million
Luxembourg, August 6, 2020 - Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the second quarter 2020.
“In the second quarter, Altisource faced an unprecedented and challenging business environment as a result of the COVID-19 pandemic. As anticipated, Altisource’s second quarter financial results reflect this impact with industrywide foreclosure initiations down by approximately 85% and lender completed foreclosures down by 75% compared to the second quarter of 2019. Despite this difficult environment, we acted quickly to reduce costs, work to mitigate the impact to our customers and support the safety of our employees. As result, the vast majority of our staff are working from home and we were able to preserve cash, ending the quarter with $68 million in cash and cash equivalents.”
“We anticipate this short to medium term pressure on our default related businesses to continue with governmental forbearance programs and moratoriums temporarily preventing servicers from pursuing foreclosure of delinquent loans and with the news from Ocwen that an MSR investor instructed it to move certain referrals for field services to another service provider beginning in July. To address these challenges and protect our business, we are developing a plan to further reduce our costs. Based upon our current planning, we are forecasting Altisource to generate 2021 service revenue of $250 million to $270 million, adjusted EBITDA of $35 million to $43 million and adjusted EBITDA margins of 14% to 16%,” said Chairman and Chief Executive Officer William B. Shepro.
Mr. Shepro further commented, “Longer term, we believe that the overall market for our default related services will stabilize at a much higher rate than it was before the pandemic began, positioning Altisource to become a stronger, more diversified and fast growing company.”
Second Quarter 2020 Highlights(2)
Financial and Corporate:
Ended the second quarter 2020 with $68.2 million of cash and cash equivalents and $30.0 million of investment in equity securities
Ended the second quarter 2020 with $195.6 million of net debt less investment in equity securities(1), 4% lower than June 30, 2019
The following information was filed by Altisource Portfolio Solutions S.A. (ASPS) on Thursday, August 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.