Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (September 2014)
23 slides from Altisource Portfolio Solutions's investor presentation, September 2014
Slide 1: Investor Presentation
Investor Presentation September 2014 © 2014 Altisource. All rights reserved. Proprietary and Confidential.
Slide 2: Forward-Looking Statements / Non-GAAP Measures
Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “seek,” “believe” and similar expressions. We caution tha
Slide 3: Table of Contents
Table of Contents Strategy …………………………………………………………………………………………………….. 3 Business Overview ………………………………………………………………………………..…. 10 Financial Performance …………………………………………………………………………….. 15 Growth Initiatives ………………………………………………………………………………..…… 18 Appendix ………………………………………………………………………………….……………… 20 Page | 2
Slide 4: Strategy
Strategy Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Trademark Offic
Slide 5: Altisource Vision
Altisource Vision To be the premier real estate and mortgage marketplace offering both content and Vision distribution to the marketplace participants To offer homeowners, buyers, sellers, agents, mortgage originators and servicers Mission trusted and efficient marketplaces to conduct real estate an
Slide 6: Putting the Pieces Together to Serve Marketplaces
Putting the Pieces Together to Serve Marketplaces Affinity relationships Large vendor BPM solutions and network people Technology to order, deliver and pay for services Page | 5 © 2014 Altisource. All rights reserved. Proprietary and Confidential.
Slide 7: Real Estate Marketplace
Real Estate Marketplace Home Sales Home Rentals Home Maintenance Home sellers (and Homeowners (and Homeowners (and Connecting their agents) their agents) their agents) Renters (and their agents) Home buyers (and Renters (and their Service Providers With their agents) agents) Service Providers Servic
Slide 8: Mortgage Marketplace
Mortgage Marketplace Mortgage Origination Mortgage Servicing Mortgage Originators Mortgage Servicers Connecting Service Providers Service Providers With Investors Borrowers Borrowers Origination technology, title Servicing technology and dialogue Offering and escrow, valuation, engines, title and es
Slide 9: Distribution and Transaction Solutions Enabling the Marketplaces
Distribution and Transaction Solutions Enabling the Marketplaces Rules engines and processing solutions that enable and improve the efficiency and effectiveness of the Real Estate and Mortgage Marketplaces. Our solutions are industry agnostic and can be applied to other marketplaces Vendor selection
Slide 10: Market Sizes
Market Sizes Real Estate Marketplace Mortgage Marketplace Home Sales1 Mortgage Originations 5.0 million homes sold in the United States Estimated mortgage loan originations of during the 12 months ended June 2014 for $1.1 trillion and $1.2 trillion in 2014 and an aggregate sales price of ~$1.1 trill
Slide 11: Business Overview
Business Overview Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Tradem
Slide 12: Business Overview
Business Overview Consolidated Altisource ‐ 6/30/2014 LTM Service Revenue: $846.0mm Operating Income: $200.6mm EBITDA(1): $258.1mm Mortgage Services Financial Services Technology Services Services to the real Accounts receivable Business process estate and mortgage management and management solution
Slide 13: Mortgage Services – Summary
Mortgage Services – Summary Segment Service Revenue ($mm) Overview $700 Service revenue growth principally from continued $600 growth of Ocwen, services expansion and growth of services provided to Lenders One® members $500 $400 Operating margins have generally expanded due to $300 609.0 scale benef
Slide 14: Financial Services – Summary
Financial Services – Summary Overview Segment Service Revenue ($mm) $120 103.1 During 2013, asset recovery management 92.5 significantly expanded its higher margin mortgage $100 79.7 73.8 74.7 charge-off collections services $80 69.2 64.0 51.0 11.1 28.7 45.7 Operating margins have expanded due to ou
Slide 15: Technology Services – Summary
Technology Services – Summary Segment Service Revenue ($mm) Overview Revenue growth primarily from Ocwen’s portfolio $180 growth $150 Operating margins have recently declined as we $120 invest in personnel to accelerate our next generation $90 technology development to support our anticipated 164.4
Slide 16: Financial Performance
Financial Performance Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Tr
Slide 17: Historical Performance
Historical Performance Service Revenue ($mm) Operating cash flow ($mm) Operating Margin % % of Service Revenue $800 $200 40% $190 33% $700 27% $180 26% 30% $170 24% 24% $160 28% 27% $600 22% $150 $140 25% 30% $500 20% $130 21% $120 20% 18% 229.5 846.0 $110 $400 $100 20% $90 185.5 $300 662.1 $80 $70
Slide 18: Historical Performance
Historical Performance Net Income Attributable to Altisource ($mm) $6.00 Diluted Earnings Per Share ($) $5.60 % of Service Revenue $5.20 $160 Return on Equity 100% 38% $4.80 78% $4.40 $150 100% $140 58% 33% $4.00 $130 37% 38% 44% $3.60 $120 $110 28% 50% $3.20 6.69 $100 20% 20% 23% $2.80 $90 24% 5.19
Slide 19: Growth Initiatives
Growth Initiatives Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Trade
Slide 20: Growth Initiatives
Growth Initiatives Distribution and Transaction Marketplace: Real Estate Marketplace: Mortgage Solutions — Supporting Ocwen — Supporting Ocwen — Developing NextGen REALDoc®, REALTrans®, — Expanding Hubzu to — Growing our origination REALRemit®, other institutions and related services through REALAna
Slide 21: Appendix
Appendix Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Trademark Offic
Slide 22: Historical Financial Information – EBITDA Reconciliation
Historical Financial Information – EBITDA Reconciliation LTM ($ mm) 6/30/14 Net Income attributable to Altisource $165.3 Income tax provision 10.5 Interest expense, net of interest income 21.7 Depreciation and amortization 60.6 EBITDA $258.1 Page | 21 © 2014 Altisource. All rights reserved. Propriet
Slide 23: Investor Relations Information
Investor Relations Information We are a premier marketplace and transaction solutions Exchange NASDAQ Global Select provider for the real estate, mortgage and consumer debt Market industries offering both distribution and content. We leverage About Altisource Ticker ASPS proprietary business process
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