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Home Loan Servicing Solutions, Ltd. Reports EPS Of $0.44 And Net Income Of $14.3 Million In The Fourth Quarter Of 2012 And Declares Dividend Of $0.13 Per Ordinary Share For February And March 2013

Our income from operations as presented in our Management Reporting shown below should be considered in addition to, and not as a substitute for, income from operations determined in accordance with GAAP.

       
For the three months ended December 31, 2012: Condensed Consolidated Results (GAAP) Adjustments Management Reporting (Non-GAAP)
Revenue      
Servicing fee revenue  $ — $60,599 $60,599
Interest income - notes receivable – Rights to MSRs  27,157 (27,157)
Interest income – other  (173) (173)
Related party revenue(1)  652 652
Total revenue  27,636 33,442 61,078
       
Operating expenses      
Compensation and benefits  1,069 1,069
Servicing expense  27,080 27,080
Amortization of MSRs  6,362 6,362
Related party expenses (2)  277 277
General and administrative expenses  497 497
Total operating expenses  1,843 33,442 35,285
Income from operations $25,793 $ — $25,793
       
(1) Revenue earned as part of our Professional Services Agreement with Ocwen.
(2) Expenses incurred as part of our Professional Services Agreement and Administrative Agreement with Ocwen and Altisource, respectively.
         
HOME LOAN SERVICING SOLUTIONS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
(UNAUDITED)
         
         
  Three months Twelve months
For the periods ended December 31,  2012 2011 2012 2011
Revenue        
Interest income – notes receivable – Rights to MSRs  $27,157 $ — $54,699 $ —
Interest income – other  (173) 109
Total interest income  26,984 54,808
Related party revenue  652 2,316
Total revenue  27,636 57,124
         
Operating expenses        
Compensation and benefits  1,069 3,751
Related party expenses  277 755
General and administrative expenses  497 191 1,644 273
Total operating expenses  1,843 191 6,150 273
Income (loss) from operations 25,793 (191) 50,974 (273)
         
Other expense        
Interest expense  11,550 24,057
Total other expense  11,550 24,057
         
Income (loss) before income taxes  14,243 (191) 26,917 (273)
Income tax benefit/(expense)  103 (46)
Net income (loss) $14,346 $(191) $26,871 $(273)
         
         
Earnings (loss) per share        
Basic  $0.44 $(9.55) $1.56 $(13.66)
Diluted  $0.44 $(9.55) $1.56 $(13.66)
         
Weighted average ordinary shares outstanding        
Basic  32,784,718 20,000 17,230,858 20,000
Diluted  32,784,718 20,000 17,230,858 20,000
         
Dividends declared per share $0.42 $0.00 $1.45 $0.00
 
 
HOME LOAN SERVICING SOLUTIONS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)
 
  December 31, 2012 December 31, 2011
Assets    
Cash and cash equivalents   $ 76,048  $ 283
Match funded advances  3,098,198  —
Notes receivable – Rights to MSRs  303,705  —
Related party receivables  28,271  —
Other assets   79,091   2,860
Total assets  $ 3,585,313  $ 3,143
     
Liabilities and Equity    
Liabilities    
Match funded liabilities  $ 2,690,821  $ —
Dividends payable  6,706  —
Income taxes payable  46   —
Related party payables  2,874  1,487
Other liabilities   4,233   1,647
Total liabilities   2,704,680   3,134
     
     
Equity    
Equity – Ordinary shares, $.01 par value; 200,000,000 and 5,000,000 shares authorized; 55,884,718 and 20,000 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively $ 559 $ —
Additional paid-in capital  876,657  300
Retained earnings (accumulated deficit)  4,493  (291)
Accumulated other comprehensive income (loss)   (1,076)   —
Total equity   880,633   9
Total liabilities and equity  $ 3,585,313  $ 3,143
CONTACT: FOR FURTHER INFORMATION CONTACT:
         James E. Lauter
         Senior Vice President & Chief Financial Officer
         T: (561) 682-7561
         E: James.Lauter@hlss.com

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