Ocwen Financial Corporation Announces Second Quarter 2010 Financial Results
WEST PALM BEACH, Fla., Aug. 3, 2010 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation ("Ocwen" or the "Company") (NYSE:OCN) today reported net income of $16.0 million for the second quarter of 2010 compared to net income of $17.8 million for the second quarter of 2009. The decline in net income was primarily due to the separation of the Altisource business (f/k/a Ocwen Solutions) from Ocwen in August 2009 and certain one-time charges reflected in the quarter along with professional fees incurred and operating expenses associated with the pending HomEq servicing acquisition which are partially offset by a reversal of an $8.2 million valuation allowance for income tax expense. Net income per diluted share was $0.15 for the second quarter of 2010 compared to $0.26 for the second quarter of 2009.
Second quarter pre-tax income from continuing operations was affected by:
- The separation of Altisource which contributed $11.8 million in the second quarter of 2009
- A $5.1 million litigation accrual in the second quarter of 2010 reflecting an agreement in principle to settle the MDL Proceeding, thus reducing litigation exposure and expense prospectively
- A one-time, non-cash write off of a $3.0 million interest in a real estate partnership deemed uncollectible during the quarter. This represented the Company's last commercial real estate asset.
- A loss of $1.7 million from the sale of $46.8 million of auction rate securities compared to a $6.0 million gain on auction rate securities in the second quarter of 2009.
- Professional services of $1.2 million incurred as part of the announced acquisition of HomEq. In addition, the Company incurred expenses for new facilities and other ramp-up expenses in anticipation of the closing of HomEq of $1.5 million.
Net income for the six months ended June 30, 2010 was $36.9 million or $0.35 per share, compared to $32.9 million or $0.49 per share for the same period in 2009.
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