Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q2 2023 Earnings Presentation
29 slides from Altisource Portfolio Solutions's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Supplementary Information
ALTISOURCE SECOND QUARTER 2023 SUPPLEMENTARY INFORMATION JULY 27, 2023 1
Slide 2: Altisource Overview
ALT IS OURCE OVE RVIEW This presentation contains forward-looking statements that involve a number of risks pandemic, customer concentration, the timing of the anticipated increase in default and uncertainties. These forward-looking statements include all statements that are related referrals follow
Slide 3: Non-GAAP Measures
NON-G AAP MEA SURES Adjusted operating (loss) income, pretax loss attributable to Altisource, adjusted pretax significant non-operational items enables comparability to prior period performance loss attributable to Altisource, earnings before interest, taxes, depreciation and and trend analysis. amo
Slide 4: Second Quarter 2023 Overview
SECOND QUARTER 20 23 OV ERV IEW • Second quarter Adjusted EBITDA1 was 47% better than the same period in 2022; year-to-date Adjusted EBITDA was 81%, or $8.7 million, better • Anticipate roughly break-even Adjusted EBITDA for the third quarter and positive Adjusted EBITDA for the fourth quarter and f
Slide 5: Consolidated Sales Pipeline and Wins
CONSOLIDATE D SA LES P IP ELINE A ND WINS ($ millions) $64.0 $68.9 $62.4 $63.2 $59.0 Attractive Sales $53.2 Pipeline1 Weighted Average Pipeline Estimated Q2 and July’23 Revenue – End of Quarter 2 (to date) Sales Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 FY 2022 Wins total $18.6 Strong Sales Wins $17.8 $14
Slide 6: Servicer and Real Estate (SRE) Segment
SE RVICER AND REAL ESTATE (S RE ) S EGME NT Segment Service Revenue $29.4 $29.0 ($ millions) $29.8 Second Quarter Financial Performance $26.5 $24.9 • Second quarter Adjusted EBITDA was $0.2 million, or 2%, lower than the same quarter in 2022 • We estimate that the unexpected temporary delays in cert
Slide 7: SRE Sales Pipeline and Wins
SRE SALES PIPELINE AND WINS ($ millions) $46.3 $41.7 Attractive Sales $35.4 $33.4 $35.6 $38.6 Pipeline1 Weighted Average Pipeline Estimated Q2 and July’23 Revenue – End of Quarter 2 (to date) Sales Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Wins total $15.7 FY 2022 $14.4 Strong Sales Wins $12.8 Wins3 $4.2
Slide 8: Macroeconomic Environment
MACROECONOMIC EN VIRONMENT • Indicators that consumers are becoming increasingly financially stressed which could be precursors to a rise in mortgage delinquency rates: • Inflation eroding consumer purchasing power • Rising auto and credit card delinquency rates • 30-year fixed interest mortgage rat
Slide 9: Origination Segment
ORIGINATION SEG MENT Segment Historical Financials ($ millions) Second Quarter Financial Performance 8.2 8.3 7.3 7.3 6.3 • Performed well in a difficult origination environment; second quarter Adjusted EBITDA was 44% better than the same period (2.3) (1.3) in 2022 despite the $0.4 million negative i
Slide 10: Origination Sales Pipeline and Wins
ORIGINATION SALES P IPE LINE AND W INS ($ millions) $31.9 Attractive Sales $20.8 $23.4 $22.6 $20.8 $24.6 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 FY 2022 Strong Sales $10.2 Wins $7.9 $21.6 Wins3 $3.4 $1.7 $1.8 $2.9 Estimated Annuali
Slide 11: Appendix
APPENDIX SECOND QUARTER 2023 SEGMENT INVESTOR FINANCIAL O P E R AT I N G FINANCIAL NON-GAAP R E L AT I O N S R E S U LT S METRICS I N F O R M AT I O N MEASURES I N F O R M AT I O N 12 14 17 18 28 © 2023 Altisource All Rights Reserved. 11
Slide 12: Second Quarter Financial Results
SECOND QUARTER 20 23 FINANCIAL RESULTS Q2 Q2 Vs. H1 H1 Vs. $ millions (except EPS) 2023 2022 Q2 2022 2023 2022 H1 2022 Revenue $35.2 $40.4 -13% $74.7 $79.9 -7% Service revenue 33.2 37.6 -12% 70.2 75.4 -7% Loss from operations (6.8) (10.5) 35% (10.4) (18.8) 45% Adjusted operating loss1 (2.3) (7.5) 69
Slide 13: Progress with Select Customer Wins
PROGRESS W ITH SELECT 1 CUSTOMER WINS Agreements Began Est. Stabilized Notified of Agreements in Anticipated receiving revenue win Customer description Service executed negotiation "Go Live" Date referrals in opportunity1 Q4'21 Originator Lenders One √ Q2'22 Medium Q4'21 Originator Lenders One √ Q3'
Slide 14: Operating Metrics
OPERATING ME TRICS Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Ocwen1 Serviced Portfolio2 : Default Related Services: Service revenue3 per delinquent loan 4 per quarter Non-GSE $ 359 $ 366 $ 235 $ 157 $ 158 $ 156 $ 158 $ 210 $ 244 $ 260 $ 243 $ 295 $ 257 GSE and FHA
Slide 15: Operating Metrics
OPERATING ME TRICS Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 1 Hubzu : Service revenue (in millions)2 $ 14.5 $ 21.4 $ 12.2 $ 7.4 $ 8.6 $ 6.1 $ 5.8 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 $ 7.1 Number of homes sold on Hubzu: Ocwen serviced portfolios3 1,465 1,709 860 570 620
Slide 16: Hubzu Inventory
HUBZU IN VENTORY Ending Inventory (in 000’s) 8.1 6.9 6.2 6.3 6.2 6.3 5.9 5.9 6.0 6.0 6.0 4.6 5.0 4.5 4.4 3.2 4.1 3.5 3.4 3.6 3.6 3.9 4.2 3.5 2.6 2.4 3.5 2.7 2.4 2.2 2.4 2.5 2.6 2.7 2.7 2.4 2.1 2.0 2.0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 All Other Customers O
Slide 17: Segment Financial Information
SEG MENT F INA NCIAL INFORMATION Service revenue ($ millions) Q2'22 Q1'23 Q2'23 1 Servicer and Real Estate $ 29.4 $ 29.8 $ 24.9 1 Origination 8.2 7.3 8.3 1 Corporate and Others - - - Total $ 37.6 $ 37.1 $ 33.2 Income (loss) before income taxes and non-controlling interests Q2'22 Q1'23 Q2'23 ($ milli
Slide 18: Non-GAAP Measures
NON-GAAP MEA SURES Adjusted operating (loss) income, pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, EBITDA, Adjusted EBITDA, adjusted net loss attributable to Altisource, adjusted diluted loss per share, and net debt are non-GAAP measures used by management,
Slide 19: Non-GAAP Measures
NON-GAAP MEA SURES • Adjusted EBITDA is calculated by removing the income tax provision, interest expense (net of interest income), depreciation and amortization, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other, debt amendment costs
Slide 20: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Loss from operations $ (10.5) $ (3.6) $ (6.8) $ (18.8) $ (10.4) Intangible asset amortization expense 1.3 1.3 1.3 2.6 2.6 Share-based compensation expense 1.3 1.4 1.2 2.6 2.7 Cost of cost savings in
Slide 21: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Net loss attributable to Altisource $ (15.5) $ (12.9) $ (18.9) $ (27.7) $ (31.8) Income tax provision 1.5 1.5 0.6 2.4 2.2 Interest expense, net of interest income 3.5 6.3 9.6 7.0 15.9 Depreciation a
Slide 22: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Servicer and Real Estate: Income before income taxes and non-controlling interests $ 6.3 $ 9.9 $ 6.2 $ 12.0 $ 16.1 Depreciation and amortization, including intangible asset amortization 1.0 1.0 1.0
Slide 23: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Corporate and Others: Loss before income taxes and non-controlling interests $ (17.1) $ (19.6) $ (22.4) $ (33.5) $ (42.0) Non-controlling interests - - - - - Interest expense, net of interest income
Slide 24: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Net loss attributable to Altisource $ (15.5) $ (12.9) $ (18.9) $ (27.7) $ (31.8) Intangible asset amortization expense, net of tax 1.3 1.3 1.3 2.6 2.6 Share-based compensation expense, net of tax 1.
Slide 25: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Calculation of the impact of intangible asset amortization expense, net of tax: Intangible asset amortization expense $ 1.3 $ 1.3 $ 1.3 $ 2.6 $ 2.6 Tax benefit from intangible asset amortization (0.
Slide 26: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Calculation of the impact of cost of cost savings initiatives and other, net of tax: Cost of cost savings initiatives and other $ 0.4 $ 0.6 $ 0.1 $ 0.5 $ 0.7 Tax benefit from cost of cost savings in
Slide 27: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q2'22 Q1'23 Q2'23 H1'22 H1'23 ($ in millions except per share data) Certain income tax related items resulting from: Certain income tax related items $ 1.5 $ 0.4 $ 0.4 $ 1.8 $ 0.8 Diluted share count (in 000s) 16,083 18,442 20,840 16,020 19,648 Certain income tax re
Slide 28: Investor Relations Information
INVESTOR RELATION S INFORMATION Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of ABOUT ALTISOURCE innovative services and technologies, Altisource helps solve the demand
Slide 29: Altisource
a x Altisource YOUR ONE SOURCE™
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