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.
(Additional Financial Data Follow)
CoreLogic, Inc. Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
For the Three Months Ended |
|
For the Year Ended |
|||||||||||||
|
December 31, |
|
December 31, |
|||||||||||||
(in thousands, except per share amounts) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Operating revenue |
$ |
426,032 |
|
|
$ |
403,309 |
|
|
$ |
1,762,235 |
|
|
$ |
1,788,378 |
|
|
Cost of services (exclusive of depreciation and amortization) |
205,676 |
|
|
212,275 |
|
|
880,133 |
|
|
921,429 |
|
|||||
Selling, general and administrative expenses |
118,640 |
|
|
104,565 |
|
|
480,938 |
|
|
444,614 |
|
|||||
Depreciation and amortization |
45,674 |
|
|
50,048 |
|
|
187,716 |
|
|
191,996 |
|
|||||
Impairment loss |
— |
|
|
7,639 |
|
|
47,912 |
|
|
7,721 |
|
|||||
| Total operating expenses |
369,990 |
|
|
374,527 |
|
|
1,596,699 |
|
|
1,565,760 |
|
|||||
| Operating income |
56,042 |
|
|
28,782 |
|
|
165,536 |
|
|
222,618 |
|
|||||
| Interest expense: |
|
|
|
|
|
|
|
|||||||||
| Interest income |
408 |
|
|
524 |
|
|
2,136 |
|
|
1,577 |
|
|||||
| Interest expense |
19,156 |
|
|
19,490 |
|
|
78,293 |
|
|
75,551 |
|
|||||
| Total interest expense, net |
(18,748 |
) |
|
(18,966 |
) |
|
(76,157 |
) |
|
(73,974 |
) |
|||||
| Tax indemnification release |
— |
|
|
— |
|
|
(13,394 |
) |
|
— |
|
|||||
| Gain/(loss) on investments and other, net |
1,426 |
|
|
12,881 |
|
|
(500 |
) |
|
18,005 |
|
|||||
| Income from continuing operations before equity in earnings/(losses) of affiliates and income taxes |
38,720 |
|
|
22,697 |
|
|
75,485 |
|
|
166,649 |
|
|||||
| Provision for income taxes |
8,682 |
|
|
8,259 |
|
|
9,190 |
|
|
45,691 |
|
|||||
| Income from continuing operations before equity in earnings/(losses) of affiliates |
30,038 |
|
|
14,438 |
|
|
66,295 |
|
|
120,958 |
|
|||||
| Equity in earnings/(losses) of affiliates, net of tax |
58 |
|
|
(1,416 |
) |
|
555 |
|
|
1,493 |
|
|||||
| Net income from continuing operations |
30,096 |
|
|
13,022 |
|
|
66,850 |
|
|
122,451 |
|
|||||
| (Loss)/income from discontinued operations, net of tax |
(14 |
) |
|
(412 |
) |
|
(17,470 |
) |
|
(587 |
) |
|||||
| Net income |
$ |
30,082 |
|
|
$ |
12,610 |
|
|
$ |
49,380 |
|
|
$ |
121,864 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Basic income/(loss) per share: |
|
|
|
|
|
|
|
|||||||||
| Net income from continuing operations |
$ |
0.38 |
|
|
$ |
0.16 |
|
|
$ |
0.84 |
|
|
$ |
1.51 |
|
|
| (Loss)/income from discontinued operations, net of tax |
— |
|
|
(0.01 |
) |
|
(0.22 |
) |
|
(0.01 |
) |
|||||
| Net income |
$ |
0.38 |
|
|
$ |
0.15 |
|
|
$ |
0.62 |
|
|
$ |
1.50 |
|
|
| Diluted income/(loss) per share: |
|
|
|
|
|
|
|
|||||||||
| Net income from continuing operations |
$ |
0.37 |
|
|
$ |
0.16 |
|
|
$ |
0.83 |
|
|
$ |
1.49 |
|
|
| (Loss)/income from discontinued operations, net of tax |
— |
|
|
(0.01 |
) |
|
(0.22 |
) |
|
(0.01 |
) |
|||||
| Net income |
$ |
0.37 |
|
|
$ |
0.15 |
|
|
$ |
0.61 |
|
|
$ |
1.48 |
|
|
| Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
| Basic |
79,125 |
|
|
80,198 |
|
|
79,885 |
|
|
80,854 |
|
|||||
| Diluted |
80,356 |
|
|
81,330 |
|
|
81,021 |
|
|
82,275 |
|
|||||
| Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||||||||||
| CoreLogic, Inc. Consolidated Balance Sheets (Unaudited) |
||||||||
| (in thousands, except par value) |
December 31, |
|
December 31, |
|||||
| Assets |
2019 |
|
2018 |
|||||
| Current assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
105,185 |
|
|
$ |
85,271 |
|
|
| Accounts receivable (less allowances of $7,161 and $5,742 in 2019 and 2018, respectively) |
281,392 |
|
|
242,814 |
|
|||
| Prepaid expenses and other current assets |
58,495 |
|
|
50,136 |
|
|||
| Income tax receivable |
1,477 |
|
|
25,299 |
|
|||
| Total current assets |
446,549 |
|
|
403,520 |
|
|||
| Property and equipment, net |
451,021 |
|
|
456,497 |
|
|||
| Operating lease assets |
65,825 |
|
|
— |
|
|||
| Goodwill, net |
2,396,096 |
|
|
2,391,954 |
|
|||
| Other intangible assets, net |
378,818 |
|
|
468,405 |
|
|||
| Capitalized data and database costs, net |
327,078 |
|
|
324,049 |
|
|||
| Investment in affiliates, net |
16,666 |
|
|
22,429 |
|
|||
| Other assets |
76,604 |
|
|
102,136 |
|
|||
| Total assets |
$ |
4,158,657 |
|
|
$ |
4,168,990 |
|
|
| Liabilities and Equity |
|
|
|
|||||
| Current liabilities: |
|
|
|
|||||
| Accounts payable and other accrued expenses |
$ |
173,989 |
|
|
$ |
166,258 |
|
|
| Accrued salaries and benefits |
86,598 |
|
|
84,940 |
|
|||
| Contract liabilities, current |
321,647 |
|
|
308,959 |
|
|||
| Current portion of long-term debt |
56,022 |
|
|
26,935 |
|
|||
| Operating lease liabilities, current |
18,058 |
|
|
— |
|
|||
| Total current liabilities |
656,314 |
|
|
587,092 |
|
|||
| Long-term debt, net of current |
1,610,538 |
|
|
1,752,241 |
|
|||
| Contract liabilities, net of current |
563,246 |
|
|
524,069 |
|
|||
| Deferred income tax liabilities |
110,396 |
|
|
124,968 |
|
|||
| Operating lease liabilities, net of current |
85,139 |
|
|
— |
|
|||
| Other liabilities |
181,814 |
|
|
180,122 |
|
|||
| Total liabilities |
3,207,447 |
|
|
3,168,492 |
|
|||
|
|
|
|
|
|||||
| Stockholders' Equity: |
|
|
|
|||||
| Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding |
— |
|
|
— |
|
|||
| Common stock, $0.00001 par value; 180,000 shares authorized; 78,972 and 80,092 shares issued and outstanding as of December 31, 2019 and 2018, respectively |
1 |
|
|
1 |
|
|||
| Additional paid-in capital |
111,000 |
|
|
160,870 |
|
|||
| Retained earnings |
1,006,992 |
|
|
975,375 |
|
|||
| Accumulated other comprehensive loss |
(166,783 |
) |
|
(135,748 |
) |
|||
| Total stockholders' equity |
951,210 |
|
|
1,000,498 |
|
|||
| Total liabilities and equity |
$ |
4,158,657 |
|
|
$ |
4,168,990 |
|
|
| Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||
| CoreLogic, Inc. Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
For the Year Ended |
|||||||
|
|
December 31, |
|||||||
| (in thousands) |
2019 |
|
2018 |
|||||
| Cash flows from operating activities: |
|
|
|
|||||
| Net income |
$ |
49,380 |
|
|
$ |
121,864 |
|
|
| Less: Loss from discontinued operations, net of tax |
(17,470 |
) |
|
(587 |
) |
|||
| Net income from continuing operations |
66,850 |
|
|
122,451 |
|
|||
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: |
|
|
|
|||||
| Depreciation and amortization |
187,716 |
|
|
191,996 |
|
|||
| Impairment loss |
47,912 |
|
|
7,721 |
|
|||
| Amortization of debt issuance costs |
5,077 |
|
|
5,434 |
|
|||
| Amortization of operating lease assets |
15,401 |
|
|
— |
|
|||
| Provision for bad debts and claim losses |
15,534 |
|
|
13,467 |
|
|||
| Share-based compensation |
36,292 |
|
|
37,196 |
|
|||
| Equity in earnings of investee, net of taxes |
(555 |
) |
|
(1,493 |
) |
|||
| Gain on sale of property and equipment |
(3 |
) |
|
(32 |
) |
|||
| Loss on early extinguishment of debt |
1,892 |
|
|
— |
|
|||
| Deferred income tax |
2,675 |
|
|
26,940 |
|
|||
| Impairment loss on investment in affiliates |
1,511 |
|
|
— |
|
|||
| Tax indemnification release |
13,394 |
|
|
— |
|
|||
| Gain on investments and other, net |
(2,903 |
) |
|
(18,005 |
) |
|||
| Change in operating assets and liabilities, net of acquisitions: |
|
|
|
|||||
| Accounts receivable |
(37,051 |
) |
|
21,093 |
|
|||
| Prepaid expenses and other assets |
(7,269 |
) |
|
(1,158 |
) |
|||
| Accounts payable and other accrued expenses |
296 |
|
|
(17,957 |
) |
|||
| Contract liabilities |
49,947 |
|
|
(15,983 |
) |
|||
| Income taxes |
22,209 |
|
|
(1,142 |
) |
|||
| Dividends received from investments in affiliates |
1,987 |
|
|
775 |
|
|||
| Other assets and other liabilities |
(31,889 |
) |
|
(16,185 |
) |
|||
| Net cash provided by operating activities - continuing operations |
389,023 |
|
|
355,118 |
|
|||
| Net cash used in operating activities - discontinued operations |
(24,807 |
) |
|
(5 |
) |
|||
| Total cash provided by operating activities |
$ |
364,216 |
|
|
$ |
355,113 |
|
|
| Cash flows from investing activities: |
|
|
|
|||||
| Purchases of property and equipment |
$ |
(91,572 |
) |
|
$ |
(62,304 |
) |
|
| Purchases of capitalized data and other intangible assets |
(40,019 |
) |
|
(35,075 |
) |
|||
| Cash paid for acquisitions, net of cash acquired |
(13,283 |
) |
|
(219,588 |
) |
|||
| Cash received from sale of business-lines |
4,109 |
|
|
3,178 |
|
|||
| Purchases of investments |
(658 |
) |
|
— |
|
|||
| Proceeds from sale of property and equipment |
3 |
|
|
207 |
|
|||
| Proceeds from investments and other |
5,591 |
|
|
4,716 |
|
|||
| Net cash used in investing activities - continuing operations |
(135,829 |
) |
|
(308,866 |
) |
|||
| Net cash provided by investing activities - discontinued operations |
— |
|
|
— |
|
|||
| Total cash used in investing activities |
$ |
(135,829 |
) |
|
$ |
(308,866 |
) |
|
| Cash flows from financing activities: |
|
|
|
|||||
| Proceeds from long-term debt |
$ |
1,770,000 |
|
|
$ |
191,291 |
|
|
| Debt issuance costs |
(9,621 |
) |
|
— |
|
|||
| Debt extinguishment premium |
(425 |
) |
|
— |
|
|||
| Repayments of long-term debt |
(1,883,955 |
) |
|
(173,236 |
) |
|||
| Shares repurchased and retired |
(86,675 |
) |
|
(109,063 |
) |
|||
| Proceeds from issuance of shares in connection with share-based compensation |
10,149 |
|
|
21,140 |
|
|||
| Payment of tax withholdings related to net share settlements |
(10,026 |
) |
|
(12,858 |
) |
|||
| Contingent consideration payments subsequent to acquisitions |
(612 |
) |
|
— |
|
|||
| Net cash used in financing activities - continuing operations |
(211,165 |
) |
|
(82,726 |
) |
|||
| Net cash provided by financing activities - discontinued operations |
— |
|
|
— |
|
|||
| Total cash used in financing activities |
$ |
(211,165 |
) |
|
$ |
(82,726 |
) |
|
| Effect of exchange rate on cash, cash equivalents and restricted cash |
230 |
|
|
2,575 |
|
|||
| Net change in cash, cash equivalents and restricted cash |
$ |
17,452 |
|
|
$ |
(33,904 |
) |
|
| Cash, cash equivalents and restricted cash at beginning of year |
98,250 |
|
|
132,154 |
|
|||
| Less: Change in cash, cash equivalents and restricted cash - discontinued operations |
(24,807 |
) |
|
(5 |
) |
|||
| Plus: Cash swept (to)/from discontinued operations |
(24,807 |
) |
|
(5 |
) |
|||
| Cash, cash equivalents and restricted cash at end of year |
$ |
115,702 |
|
|
$ |
98,250 |
|
|
| Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements. |
||||||||
| CoreLogic, Inc. Reconciliation of Adjusted EBITDA (Unaudited) |
||||||||||||||||
|
|
For the Three Months Ended December 31, 2019 |
|||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||
| Net income/(loss) from continuing operations |
$ |
10,894 |
|
$ |
77,419 |
|
$ |
(58,217 |
) |
$ |
— |
|
$ |
30,096 |
|
|
| Income taxes |
— |
|
— |
|
8,701 |
|
— |
|
8,701 |
|
||||||
| Depreciation and amortization |
24,659 |
|
13,194 |
|
7,821 |
|
— |
|
45,674 |
|
||||||
| Interest (income)/expense, net |
(88 |
) |
67 |
|
18,769 |
|
— |
|
18,748 |
|
||||||
| Share-based compensation |
1,811 |
|
1,737 |
|
5,881 |
|
— |
|
9,429 |
|
||||||
| Non-operating losses |
425 |
|
5,616 |
|
964 |
|
— |
|
7,005 |
|
||||||
| Efficiency investments and other |
1,084 |
|
310 |
|
6,227 |
|
— |
|
7,621 |
|
||||||
| Transaction costs |
1,469 |
|
359 |
|
72 |
|
— |
|
1,900 |
|
||||||
| Amortization of acquired intangibles included in equity in earnings of affiliates |
75 |
|
— |
|
— |
|
— |
|
75 |
|
||||||
| Adjusted EBITDA |
$ |
40,329 |
|
$ |
98,702 |
|
$ |
(9,782 |
) |
$ |
— |
|
$ |
129,249 |
|
|
|
|
For the Three Months Ended December 31, 2018 |
|||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||
| Net income/(loss) from continuing operations |
$ |
25,517 |
|
$ |
43,181 |
|
$ |
(55,676 |
) |
$ |
— |
|
$ |
13,022 |
|
|
| Income taxes |
— |
|
— |
|
7,786 |
|
— |
|
7,786 |
|
||||||
| Depreciation and amortization |
25,920 |
|
17,614 |
|
6,514 |
|
— |
|
50,048 |
|
||||||
| Interest expense, net |
85 |
|
78 |
|
18,803 |
|
— |
|
18,966 |
|
||||||
| Share-based compensation |
996 |
|
1,597 |
|
5,029 |
|
— |
|
7,622 |
|
||||||
| Impairment loss |
— |
|
7,639 |
|
— |
|
— |
|
7,639 |
|
||||||
| Non-operating gains |
(13,335 |
) |
— |
|
(3,188 |
) |
— |
|
(16,523 |
) |
||||||
| Efficiency investments and other |
187 |
|
1,058 |
|
7,911 |
|
— |
|
9,156 |
|
||||||
| Transaction costs |
1,675 |
|
— |
|
2,928 |
|
— |
|
4,603 |
|
||||||
| Amortization of acquired intangibles included in equity in losses of affiliates |
210 |
|
— |
|
— |
|
— |
|
210 |
|
||||||
| Adjusted EBITDA |
$ |
41,255 |
|
$ |
71,167 |
|
$ |
(9,893 |
) |
$ |
— |
|
$ |
102,529 |
|
|
|
|
For the Year Ended December 31, 2019 |
|||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||
| Net income/(loss) from continuing operations |
$ |
68,750 |
|
$ |
218,034 |
|
$ |
(219,934 |
) |
$ |
— |
|
$ |
66,850 |
|
|
| Income taxes |
— |
|
— |
|
9,375 |
|
— |
|
9,375 |
|
||||||
| Depreciation and amortization |
102,586 |
|
55,738 |
|
29,392 |
|
— |
|
187,716 |
|
||||||
| Interest expense, net |
37 |
|
269 |
|
75,851 |
|
— |
|
76,157 |
|
||||||
| Share-based compensation |
6,746 |
|
6,763 |
|
22,783 |
|
— |
|
36,292 |
|
||||||
| Impairment loss |
— |
|
47,912 |
|
— |
|
— |
|
47,912 |
|
||||||
| Non-operating losses |
3,961 |
|
8,466 |
|
13,739 |
|
— |
|
26,166 |
|
||||||
| Efficiency investments |
3,526 |
|
6,501 |
|
29,561 |
|
— |
|
39,588 |
|
||||||
| Transaction costs |
6,448 |
|
359 |
|
392 |
|
— |
|
7,199 |
|
||||||
| Amortization of acquired intangibles included in equity in earnings of affiliates |
306 |
|
— |
|
— |
|
— |
|
306 |
|
||||||
| Adjusted EBITDA |
$ |
192,360 |
|
$ |
344,042 |
|
$ |
(38,841 |
) |
$ |
— |
|
$ |
497,561 |
|
|
|
|
For the Year Ended December 31, 2018 |
|||||||||||||||
| (in thousands) |
PIRM |
UWS |
CORP |
ELIM |
CoreLogic |
|||||||||||
| Net income/(loss) from continuing operations |
$ |
102,725 |
|
$ |
238,424 |
|
$ |
(218,698 |
) |
$ |
— |
|
$ |
122,451 |
|
|
| Income taxes |
— |
|
— |
|
46,187 |
|
— |
|
46,187 |
|
||||||
| Depreciation and amortization |
103,343 |
|
65,381 |
|
23,272 |
|
— |
|
191,996 |
|
||||||
| Interest expense, net |
735 |
|
305 |
|
72,934 |
|
— |
|
73,974 |
|
||||||
| Share-based compensation |
5,421 |
|
7,885 |
|
23,890 |
|
— |
|
37,196 |
|
||||||
| Impairment loss |
— |
|
7,721 |
|
— |
|
— |
|
7,721 |
|
||||||
| Non-operating gains |
(17,220 |
) |
— |
|
(2,483 |
) |
— |
|
(19,703 |
) |
||||||
| Efficiency investments |
2,143 |
|
1,058 |
|
17,802 |
|
— |
|
21,003 |
|
||||||
| Transaction costs |
6,559 |
|
— |
|
4,792 |
|
— |
|
11,351 |
|
||||||
| Amortization of acquired intangibles included in equity in earnings of affiliates |
909 |
|
— |
|
— |
|
— |
|
909 |
|
||||||
| Adjusted EBITDA |
$ |
204,615 |
|
$ |
320,774 |
|
$ |
(32,304 |
) |
$ |
— |
|
$ |
493,085 |
|
|
| CoreLogic, Inc. Reconciliation of Adjusted EPS (Unaudited) |
||||||||
|
|
For the Three Months Ended December 31, |
|||||||
| (Diluted income per share) |
2019 |
|
2018 |
|||||
| Net income from continuing operations |
$ |
0.37 |
|
|
$ |
0.16 |
|
|
| Share-based compensation |
0.12 |
|
|
0.09 |
|
|||
| Non-operating losses/(gains) |
0.09 |
|
|
(0.20 |
) |
|||
| Efficiency investments and other |
0.09 |
|
|
0.11 |
|
|||
| Impairment loss |
— |
|
|
0.09 |
|
|||
| Transaction costs |
0.02 |
|
|
0.06 |
|
|||
| Depreciation and amortization of acquired software and intangibles |
0.21 |
|
|
0.24 |
|
|||
| Income tax effect on adjustments |
(0.13 |
) |
|
(0.07 |
) |
|||
| Adjusted EPS |
$ |
0.77 |
|
|
$ |
0.48 |
|
|
|
|
For the Year Ended December 31, |
|||||||
| (Diluted income per share) |
2019 |
|
2018 |
|||||
| Net income from continuing operations |
$ |
0.83 |
|
|
$ |
1.49 |
|
|
| Share-based compensation |
0.45 |
|
|
0.45 |
|
|||
| Non-operating losses/(gains) |
0.32 |
|
|
(0.24 |
) |
|||
| Efficiency investments |
0.49 |
|
|
0.26 |
|
|||
| Impairment loss |
0.59 |
|
|
0.09 |
|
|||
| Transaction costs |
0.09 |
|
|
0.14 |
|
|||
| Depreciation and amortization of acquired software and intangibles |
0.89 |
|
|
0.93 |
|
|||
| Amortization of acquired intangibles included in equity in earnings of affiliates |
— |
|
|
0.01 |
|
|||
| Income tax effect on adjustments |
(0.83 |
) |
|
(0.41 |
) |
|||
| Adjusted EPS |
$ |
2.83 |
|
|
$ |
2.72 |
|
|
| CoreLogic, Inc. Reconciliation to Free Cash Flow (Unaudited) |
||||
| (in thousands) |
|
For the Year Ended December 31, 2019 |
||
| Net cash provided by operating activities - continuing operations |
|
$ |
389,023 |
|
| Purchases of property and equipment |
|
(91,572 |
) |
|
| Purchases of capitalized data and other intangible assets |
|
(40,019 |
) |
|
| Free Cash Flow |
|
$ |
257,432 |
|
