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Altisource Announces Strong Fourth Quarter And Full Year Results

LUXEMBOURG, February 13, 2014 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource") (Nasdaq:ASPS) today reported record fourth quarter and full year service revenue and record full year net income attributable to shareholders. The growth in service revenue and net income was primarily driven by the continued growth of our largest customer, Ocwen Financial Corporation ("Ocwen"), and growth of the Financial Services' mortgage charge-off and customer relationship management businesses.

Full Year 2013 Results Compared to 2012:

  • Service revenue of $662.1 million, a 42% increase
  • Net income attributable to Altisource of $130.0 million, a 17% increase
  • Diluted earnings per share of $5.19, a 17% increase
  • Cash from operations of $185.5 million, a 59% increase
  • Return on equity of 78%, compared to 58% in 2012

Fourth Quarter 2013 Results Compared to Fourth Quarter 2012:

  • Service revenue of $192.4 million, a 58% increase
  • Net income attributable to Altisource of $35.5 million, a 17% increase
  • Diluted earnings per share of $1.42, an 18% increase
  • Cash from operations of $50.8 million, a 162% increase

"2013 was a very strong year for Altisource, growing both organically as well as through strategic acquisitions. Earnings growth was slower than revenue as we continued to invest in the business to support our future growth. We are well positioned with our core business and our growth initiatives for an even better 2014. Further, we intend to continue our aggressive share repurchase program 1," said Chairman William Erbey.

Full year and fourth quarter 2013 highlights include:

  • The average number of loans serviced by Ocwen on REALServicing ® totaled 1.2 million in 2013 and 1.5 million in the fourth quarter of 2013
  • On November 15, 2013, we acquired Equator, LLC ("Equator"), a national leader in mortgage and real estate related business process management solutions, for an initial purchase price of $63.4 million plus contingent earn-out consideration of up to an additional $80 million over three years, subject to Equator achieving annual performance targets
  • On March 29, 2013, we completed the acquisition of the Homeward Residential, Inc. fee-based businesses from Ocwen for an aggregate purchase price of $75.8 million
  • On April 12, 2013, we completed the Residential Capital, LLC fee-based business transaction with Ocwen for an aggregate purchase price of $128.8 million
  • On May 7, 2013, we increased borrowings under our senior secured term loan agreement to $400 million. Furthermore, on December 9, 2013, we refinanced the senior secured term loan which, among other changes, lowered the interest rate of the term loan
  • We repurchased 1.2 million shares of our common stock under our stock repurchase program during 2013 at an average price of $116.99 per share

William Shepro, Chief Executive Officer, further commented, "During 2013, we focused on providing high quality services to our largest customer, Ocwen, improving our margins in our default related services businesses and developing our growth engines. With the progress made in 2013, we believe we are on track to achieve pre-tax income as a percentage of service revenue of 47% in our default related services businesses by the end of the first quarter of 2014. Further, we continue to make good progress on our growth initiatives and are optimistic that they will serve as an important longer term component of our revenue and customer diversification strategy."

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