CORELOGIC REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS
Outperformance of Market Trends and Cost Management Highlight Strong Underlying Operational Performance; Company Expands Insurance and International Footprint
Irvine, Calif., October 24, 2018 - CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today reported financial results for the quarter ended September 30, 2018. Operating and financial highlights for the third quarter appear below.
Revenues of $452 million were down 6% reflecting the impact of a greater than 15% decline in U.S. mortgage origination unit volumes which more than offset organic growth in the Property Intelligence & Risk Management (PIRM) segment and market outperformance in the Underwriting & Workflow Solutions (UWS) segment.
Operating income totaled $60 million compared with $62 million in the prior year as a 7% reduction in operating expenses largely offset the impact of lower U.S. mortgage market volumes.
Net income from continuing operations decreased $8 million to $23 million after reflecting a $13 million one-time transition tax for certain foreign earnings in connection with the Tax Cuts and Job Act (TCJA).
Diluted EPS from continuing operations were $0.27 compared with $0.36 in the prior year. Adjusted EPS totaled $0.72, in-line with 2017.
Adjusted EBITDA totaled $128 million, 7% below prior year as organic growth and cost productivity were offset by the impact of lower market volumes. Adjusted EBITDA margin was 28%, largely in-line with 2017.
A total of 479,000 common shares were repurchased in the third quarter (1.8 million repurchased year-to-date).
Company to acquire full ownership of Symbility Solutions, Inc. (Symbility), further scaling its insurance vertical and international operations.
“CoreLogic delivered a strong set of operating and financial results in the third quarter and for the first nine months of 2018. Year-to-date, despite a double-digit contraction in U.S. mortgage loan volumes, we grew overall profits, expanded margins and repurchased 2% of our outstanding shares. We achieved these positive results through aggressive cost management, growing our non-mortgage and international footprint, and leveraging benefits attributable to our market leadership in underwriting solutions,” said Frank Martell, President and Chief Executive Officer of CoreLogic.
“The acquisition of Symbility further scales our insurance and international footprint and offers the potential for significant non-cyclical growth in line with our long-term goal of sourcing at least 50% of our revenues from non-U.S. mortgage. Symbility is a leading provider of subscription cloud-based property insurance claims workflow solutions and also provides a growing array of innovative enterprise mobile and application software solutions. Symbility is a great strategic fit for CoreLogic on many levels offering significant future revenue and cost synergies,” Martell added.
Third Quarter Financial Summary
Third quarter revenues totaled $452 million compared with $483 million in the same 2017 period, a decrease of 6%. PIRM revenues totaled $181 million, equivalent to 2017 as organic growth in property insights, including real estate-related and international operations, as well as contributions from insurance & spatial solutions acquisitions completed in 2017 were offset by the impacts of declining U.S. mortgage loan unit volumes, lower weather event-related revenues and unfavorable foreign currency translation. UWS segment revenues were down 10% to $274 million, driven by lower mortgage market unit volumes and vendor diversification by two key appraisal management clients, which more than offset market outperformance in the segment's property tax, credit and flood operations. UWS revenue also benefited from the scaling of CoreLogic's valuation solutions platform through organic growth and the acquisition of Mercury Network and a la mode technologies.
The following information was filed by Corelogic, Inc. (CLGX) on Wednesday, October 24, 2018 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.
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Ticker: CLGX CIK: 36047 Form Type:10-Q Quarterly Report Accession Number: 0000036047-18-000115 Submitted to the SEC: Thu Oct 25 2018 2:07:42 PM EST Accepted by the SEC: Thu Oct 25 2018 Period: Sunday, September 30, 2018 Industry: Computer Processing And Data Preparation