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PHH Corporation (NYSE: PHH) (“PHH” or the “Company”) today announced financial results for the quarter and year ended December 31, 2011.
For the quarter ended December 31, 2011, the Company reported GAAP net income of $13 million or $0.22 per share. Core earnings (after-tax) for the quarter ended December 31, 2011, was $55 million, or $0.98 per share, an increase of 224% over the fourth quarter 2010. For the year ended December 31, 2011, PHH Corporation reported a GAAP net loss of $127 million or $2.26 per share. Core earnings (after-tax) for the year ended December 31, 2011, was $182 million, or $3.23 per share, an increase of 9% over the prior year.*
Core earnings (after-tax) and Core earnings per share are financial measures that are not in accordance with GAAP and are designed to measure the Company’s financial performance excluding unrealized changes in value of Mortgage Servicing Rights (MSR) that are based upon projections of expected future cash flows. Core earnings (after-tax) and Core earnings per share also exclude realized and unrealized changes in fair value of derivatives related to the MSR, if any. See the Note Regarding Non-GAAP Financial Measures below for a detailed description of these and certain other non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their most directly comparable GAAP financial measures as required by Regulation G.
“We delivered solid core earnings performance in the fourth quarter,” said Glen A. Messina, president and CEO of PHH Corporation. “In our Mortgage business, we took advantage of elevated levels of both volumes and priced-in margins while maintaining the quality of our mortgage servicing portfolio. Our continued focus on fee-based services in our Fleet Management segment continues to reap benefits and drive improvement in our ROE.
“Going forward we are focusing on four key strategies: disciplined growth in our franchise platforms; industry leading operational execution; an unwavering commitment to customer service; and in the near term, an emphasis on liquidity, cash flow generation and deleveraging the balance sheet. These strategies are intended to maximize shareholder value by making PHH more efficient from both an operating and financial perspective while leveraging our scale and franchise to improve profitability.