Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Morgan Stanley Leveraged Finance Conference November 2016
27 slides from Altisource Portfolio Solutions's conference presentation, Nov 9, 2016
Slide 1: Morgan Stanley Leveraged Finance Conference November 2016
© 2016 Altisource. All rights reserved. Morgan Stanley Leveraged Finance Conference November 2016 Any copying, distribution or use of any of the information contained herein that is not expressly permitted by Altisource in writing is STRICTLY PROHIBITED. Altisource, the Altisource logo, the “REAL” f
Slide 2: Forward-Looking Statements, Estimates and Non-GAAP Measures
1 © 2016 Altisource. All rights reserved. Forward-Looking Statements, Estimates and Non-GAAP Measures This presentation contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, includin
Slide 3: Table of Contents
2 © 2016 Altisource. All rights reserved. Overview …………….………………………………………........... 3 Key Investment Highlights ………….………………..…….......... 8 Appendix ………………………….………………………………… 21 Table of Contents
Slide 4: Overview
3 © 2016 Altisource. All rights reserved. Overview
Slide 5: About Altisource
4 © 2016 Altisource. All rights reserved. About Altisource® A trusted provider of marketplace transaction solutions for the real estate, mortgage and consumer debt industries. William B. Shepro, Chief Executive Officer Approximately 8,500 Employees Traded NASDAQ: ASPS Service Revenue: $966 million1
Slide 6: Vision and Mission
5 © 2016 Altisource. All rights reserved. Vision and Mission Vision To be the premier real estate and mortgage marketplace connecting market participants and providing related services Mission To offer homeowners, buyers, sellers, agents, mortgage originators and servicers trusted and efficient mark
Slide 7: Real Estate Marketplace
6 © 2016 Altisource. All rights reserved. Real Estate Marketplace Home Sales Home Rentals Home Maintenance Home buyers (and their agents) Home sellers (and their agents) Homeowners (and their agents) Renters (and their agents) Connecting with Homeowners (and their agents) Renters (and their agents)
Slide 8: Mortgage Marketplace
7 © 2016 Altisource. All rights reserved. Mortgage Marketplace Mortgage Origination Mortgage Servicing Mortgage Originators Service Providers Mortgage Servicers Service Providers Investors Title and escrow, valuation, quality control, underwriting, certified loan, vendor oversight, loan origination
Slide 9: Key Investment Highlights
8 © 2016 Altisource. All rights reserved. Key Investment Highlights
Slide 10: Key Investment Highlights
9 © 2016 Altisource. All rights reserved. Key Investment Highlights • Strong revenue, EBITDA and earnings • Attractive operating and free cash flow and debt metrics • Strategic initiatives position the Company for longer term revenue growth and customer diversification • Investment in and commitment
Slide 11: Strong Revenue, EBITDA and Earnings
10 © 2016 Altisource. All rights reserved. Strong Revenue, EBITDA and Earnings 1 186.7 247.0 334.8 466.9 662.1 938.7 940.9 966.4 20% 22% 26% 27% 24% 18% 8% 4% 21% 25% 27% 28% 29% 22% 20% 17% 0% 5% 10% 15% 20% 25% 30% 35% $10 0 $20 0 $30 0 $40 0 $50 0 $60 0 $70 0 $80 0 $90 0 $1, 000 $1, 100 2009 2010
Slide 12: Strong Revenue, EBITDA and Earnings (Net Income)
11 © 2016 Altisource. All rights reserved. 1 26.0 49.3 71.1 110.6 130.0 134.5 41.6 4.0 27.8 57.0 75.9 115.3 156.5 169.1 143.5 116.3 $0 $20 $40 $60 $80 $10 0 $12 0 $14 0 $16 0 $18 0 2009 2010 2011 2012 2013 2014 2015 LTM 9/30/16 Net Income Attributable to Altisource ($ millions) GAAP Net Income Adjus
Slide 13: Attractive Operating and Free Cash Flow and Debt Metrics
12 © 2016 Altisource. All rights reserved. Attractive Operating and Free Cash Flow and Debt Metrics 25.7 41.2 95.2 81.0 151.3 132.6 159.2 167.2 14% 17% 28% 17% 23% 14% 17% 17% 12% 22% 32% $0 $20 $40 $60 $80 $10 0 $12 0 $14 0 $16 0 $18 0 $20 0 2009 2010 2011 2012 2013 2014 2015 LTM 9/30/16 Free Cash
Slide 14: Attractive Operating and Free Cash Flow and Debt Metrics
13 © 2016 Altisource. All rights reserved. Attractive Operating and Free Cash Flow and Debt Metrics 2 4.5x 2.4x 1.7x 1.5x $0 $1 $1 $2 $2 $3 $3 $4 $4 $5 $5 Interest Coverage Debt / EBITDA Net Debt / EBITDA Adjusted Net Debt / EBITDA Twelve Months Ended September 30, 2016 1. Interest coverage is defin
Slide 15: Strategic Initiatives Position the Company for Longer Term Revenue Growth
14 © 2016 Altisource. All rights reserved. Strategic Initiatives Position the Company for Longer Term Revenue Growth and Customer Diversification Mortgage Market – Grow our Servicer Solutions business – Grow our Origination Solutions business Real Estate Market – Grow our Consumer Real Estate Soluti
Slide 16: Demonstrated Progress on Revenue Diversification
15 © 2016 Altisource. All rights reserved. Demonstrated Progress on Revenue Diversification 1 This is a non-GAAP measure defined and reconciled in the Appendix Note: Numbers may not sum due to rounding 32 33 89 63 109 56 55 54 42 41 7 47 51 40 33 $96 $135 $193 $145 $183 2013 2014 2015 YTD 9/30/15 YT
Slide 17: Servicer Solutions
16 © 2016 Altisource. All rights reserved. Our scale, technology and full suite of services position us for growth with large banks and servicers • Large addressable market: estimated to be $6 billion1 in 2016 • Altisource is one of a few service providers with a full suite of services and a nationa
Slide 18: Origination Solutions
17 © 2016 Altisource. All rights reserved. Our suite of services, channel partners and sales and marketing efforts position us for longer term growth • Large addressable services market: estimated to be $27 billion1 in 2016 • Lenders are focused on growing revenue and maintaining margins while the c
Slide 19: Owners.com offers self-directed home buyers and sellers tools and service
18 © 2016 Altisource. All rights reserved. Owners.com® offers self-directed home buyers and sellers the tools and personal service to transact and save • Massive brokerage and related services market: estimated to be $68 billion1 in 2016 • Consumers are demonstrating a greater desire to engage in se
Slide 20: Real Estate Investor Solutions
19 © 2016 Altisource. All rights reserved. Our suite of services, channel partner and online transaction platform position us for longer term growth Home sale Home purchase Renovation Leasing Maintenance • Very large market with approximately 15 million single family rental homes in the U.S.1 • Inst
Slide 21: Investment in and Commitment to Quality and Control Environment
20 © 2016 Altisource. All rights reserved. Investment in and Commitment to Quality and Control Environment Positions Altisource as a Strong Competitor Strive to do the right thing for all stakeholders Foster a culture of compliance across all teams, all services Deliver a focus on continuous improve
Slide 22: Appendix
21 © 2016 Altisource. All rights reserved. • Non-GAAP Measures………………………………….……. 22 • Investor Relations Information……………………..………. 25 Appendix
Slide 23: Non-GAAP Measures
22 © 2016 Altisource. All rights reserved. Non-GAAP Measures • EBITDA, EBIT, Free Cash Flow, Adjusted Operating Income, Adjusted Net Income Attributable to Altisource, Adjusted Service Revenue Unrelated to Ocwen, Net Debt and Adjusted Net Debt are non-GAAP measures used by our Chief Operating Decisi
Slide 24: Reconciliation
23 © 2016 Altisource. All rights reserved. Reconciliation ($ in millions) 2009 2010 2011 2012 2013 2014 2015 Q4'15 Q1'16 Q2'16 Q3'16 Total GAAP Operating Income (Loss) 36.5 55.0 85.7 127.4 162.1 170.5 79.1 (39.9) 27.7 27.2 24.9 39.8 Add: Intangible amortization expense 2.7 4.9 5.3 5.0 28.2 37.7 41.1
Slide 25: Reconciliation
24 © 2016 Altisource. All rights reserved. Reconciliation ($ in millions) 2009 2010 2011 2012 2013 2014 2015 Q4'15 Q1'16 Q2'16 Q3'16 Total Calculation of the impact of intangible asset amortization expense, net of tax Intangible amortization expense 2.7 4.9 5.3 5.0 28.2 37.7 41.1 13.1 12.2 12.8 11.5
Slide 26: Investor Relations Information
25 © 2016 Altisource. All rights reserved. Investor Relations Information About Altisource We are a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. Altisource’s proprietary business processes, vendor and electronic payment management
Slide 27: © 2016 Altisource. All rights reserved.
© 2016 Altisource. All rights reserved.
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