In December 2018, the Company announced the acceleration of its AMC transformation program and the wind-down of non-core mortgage and default technology related platforms which is expected to significantly reduce UWS revenues and adjusted EBITDA in 2019. We believe these actions will expand our overall profit margins and provide for enhanced long-term organic growth trends. As of June 30, 2019, we incurred $48 million of non-cash charges relating to the impairment of certain intangible and software assets relating to our AMC business, and $6 million in severance costs. We may incur additional cash and non-cash charges (beyond those noted above in the Company’s 2019 guidance) as these programs are actioned.

In connection with the Company's previously announced 2020 adjusted EBITDA margin target of 30%, we intend to incur discrete charges of approximately $20 million over the course of 2019. For the six months ended June 30, 2019, we had incurred discrete charges of $13 million. These investments are expected to increase the operating efficiency and accelerate the transformation of certain technology and data platforms. These charges are reflected in the Company’s GAAP financial results and are excluded from adjusted EBITDA and adjusted EPS metrics which are non-GAAP measures.

Teleconference/Recast

CoreLogic management will host a live webcast and conference call on Thursday, July 25, 2019, at 8:00 a.m. Pacific time (11:00 a.m. Eastern Time) to discuss these results. All interested parties are invited to listen to the event via webcast on the CoreLogic website at http://investor.corelogic.com. Alternatively, participants may use the following dial-in numbers: 1-800-479-1004 for U.S./Canada callers or 1-786-789-4772 for international callers using confirmation code 7619087.

A replay of the webcast will be available on the CoreLogic investor website for 10 days and also through the conference call number 1-888-203-1112 for U.S./Canada participants or 1-719-457-0820 for international participants using Conference ID 7619087.

About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire, and protect their homes. For more information, please visit www.corelogic.com.

Safe Harbor / Forward Looking Statements

Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to key estimates and assumptions related to updated 2019 financial guidance and assumptions thereunder, U.S. mortgage origination unit volumes, foreign currency translation impact, underlying business trends in our UWS and PIRM segments, savings expectations from reduction of run-rate costs and productivity programs, results of a planned acceleration of the AMC transformation program, and results of a planned wind-down in a certain non-core software unit. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include the risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K. These additional risks and uncertainties include but are not limited to: our ability to protect our information systems against data corruption, cyber-based attacks or network security breaches; limitations on access to or increase in prices for data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data; systems interruptions that may impair the delivery of our products and services; difficult conditions in the mortgage and consumer lending industries and the economy generally; our ability to protect proprietary rights; our cost reduction program, technology and growth strategies and our ability to effectively and efficiently implement them; risks related to the outsourcing of services and international operations; our indebtedness and the restrictions in our various debt agreements; our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof; the inability to control the operations or dividend policies of our partially-owned affiliates; and impairments of our goodwill or other intangible assets. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures

This press release contains certain non-GAAP financial measures, such as adjusted EBITDA, adjusted EPS and FCF, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the most directly comparable GAAP financial measures. These non-GAAP measures are not in accordance with, or a substitute for, U.S. GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is included in this press release.

The Company believes that its presentation of these non-GAAP measures provides useful supplemental information to investors and management regarding the Company's financial condition and results of operations. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest, taxes, depreciation and amortization, share-based compensation, non-operating gains/losses, and other adjustments. Adjusted EPS is defined as diluted income from continuing operations, net of tax per share, adjusted for share-based compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments; and assumes an effective tax rate of 25% and 26% for 2019 and 2018, respectively. FCF is defined as net cash provided by continuing operating activities less capital expenditures for purchases of property and equipment, capitalized data and other intangible assets. Other firms may calculate non-GAAP measures differently than the Company, which limits comparability between companies.

This press release also contains certain forward-looking non-GAAP financial measures, such as adjusted EBITDA and adjusted EPS, which are provided only as supplemental information. The Company is not able to provide a reconciliation, without unreasonable efforts, of its forward-looking guidance of adjusted EBITDA and adjusted EPS to the most directly comparable GAAP financial measure due to the unknown effect, timing, and potential significance of special charges or gains that are material to the comparable GAAP financial measure.

CLGX-F

CORELOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
	For the Three Months Ended								For the Six Months Ended
	June 30,								June 30,
(in thousands, except per share amounts)	2019				2018				2019				2018
Operating revenues	$	459,538			$	488,401			$	877,246			$	933,301
Cost of services (excluding depreciation and amortization shown below)	227,210				239,346				446,271				478,735
Selling, general and administrative expenses	122,798				112,022				251,022				226,974
Depreciation and amortization	47,106				47,347				96,325				93,487
Impairment loss	47,834				49				47,834				49
Total operating expenses	444,948				398,764				841,452				799,245
Operating income	14,590				89,637				35,794				134,056
Interest expense:
Interest income	401				224				1,379				754
Interest expense	19,582				18,987				39,285				36,679
Total interest expense, net	(19,181		)		(18,763		)		(37,906		)		(35,925		)
(Loss)/gain on investments and other, net	(2,884		)		2,128				(2,150		)		2,289
Tax indemnification release	(13,394		)		—				(13,394		)		—
(Loss)/income from continuing operations before equity in earnings/(losses) of affiliates and income taxes	(20,869		)		73,002				(17,656		)		100,420
(Benefit)/provision for income taxes	(15,031		)		17,307				(13,973		)		16,596
(Loss)/income from continuing operations before equity in earnings/(losses) of affiliates	(5,838		)		55,695				(3,683		)		83,824
Equity in earnings/(losses) of affiliates, net of tax	314				2,837				(108		)		3,070
Net (loss)/income from continuing operations	(5,524		)		58,532				(3,791		)		86,894
Loss from discontinued operations, net of tax	(48		)		(16		)		(94		)		(91		)
Net (loss)/income	$	(5,572	)		$	58,516			$	(3,885	)		$	86,803
Basic (loss)/income per share:
Net (loss)/income from continuing operations	$	(0.07	)		$	0.72			$	(0.05	)		$	1.07
Loss from discontinued operations, net of tax	—				—				—				—
Net (loss)/income	$	(0.07	)		$	0.72			$	(0.05	)		$	1.07
Diluted (loss)/income per share:
Net (loss)/income from continuing operations	$	(0.07	)		$	0.71			$	(0.05	)		$	1.05
Loss from discontinued operations, net of tax	—				—				—				—
Net (loss)/income	$	(0.07	)		$	0.71			$	(0.05	)		$	1.05
Weighted-average common shares outstanding:
Basic	80,473				81,284				80,326				81,269
Diluted	80,473				82,440				80,326				82,685

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