Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q1 2023 Earnings Presentation
29 slides from Altisource Portfolio Solutions's earnings presentation, Apr 27, 2023
Slide 1: Altisource First Quarter 2023 Supplementary Information
ALTISOURCE FIRST QUARTER 2023 SUPPLEMENTARY INFORMATION APRIL 27, 2023 1
Slide 2: Altisource Overview (forward-looking statements)
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: First Quarter 2023 Highlights
FIRST QUARTER 20 23 HIGHLIGHTS • Generated $1.5 million in Adjusted EBITDA1, representing a $5.6 million improvement over the first quarter of 2022 • Improved company-wide gross profit margins to 23% compared to 15% in the first quarter of 2022 • Results primarily driven by revenue growth in pre-for
Slide 5: Servicer and Real Estate Segment
SE RVICER AND REAL ESTATE S EGME NT Segment Service Revenue $29.4 ($ millions) $29.0 $29.8 First Quarter Financial Performance $27.2 $26.5 • Grew service revenue by 10% and Adjusted EBITDA by 63% compared to Q1’22 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 • Improved Adjusted EBITDA margins to 37% from 25% in Q1
Slide 6: SRE Sales Pipeline and Wins
SRE SALES PIPELINE AND WINS ($ millions) Attractive Sales $46.3 $41.7 $35.4 $35.6 Pipeline1 $33.4 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'22 Q2 Q3 Q4 Q1'23 FY 2022 $14.4 Strong Sales Wins $9.4 Wins3 $4.2 $1.2 $1.7 $2.2 Estimated Annualized Revenue on a Stabilized Basis Q1'2
Slide 7: Macroeconomic Environment
MACROECONOMIC EN VIRONMENT • Indicators that consumers are becoming increasingly financially stressed which could be precursors to a rise in mortgage delinquency rates: • High inflation eroding consumer purchasing power • Rapid rise in Fed Funds Rate driving mortgage interest rates to almost double
Slide 8: Origination Segment
ORIGINATION SEG MENT Segment Service Revenue First Quarter Financial Performance ($ millions) $10.6 • Grew service revenue by 17% compared to Q4’22, representing $8.2 $7.3 $6.3 $7.3 the first quarter of sequential revenue growth in eight quarters • Adjusted EBITDA was flat compared to Q4’22, reflect
Slide 9: Origination Sales Pipeline and Wins
ORIGINATION SALES P IPE LINE AND W INS ($ millions) Attractive Sales $31.9 $23.4 $22.6 Pipeline1 $20.8 $20.8 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 2 Q1'22 Q2 Q3 Q4 Q1'23 FY 2022 Strong Sales Wins $10.2 Wins3 $7.9 $21.6 $3.4 Estimated Annualized Revenue $1.7 $1.8 on a Stabili
Slide 10: Appendix
APPENDIX FIRST QUARTER 2023 DEBT SEGMENT INVESTOR FINANCIAL O P E R AT I N G AMENDMENTS FINANCIAL NON-GAAP R E L AT I O N S R E S U LT S METRICS AND EXTENSIONS I N F O R M AT I O N MEASURES I N F O R M AT I O N 11 13 16 17 18 28 © 2023 Altisource All Rights Reserved. 10
Slide 11: First Quarter Financial Results
FIRST QUARTER 20 23 FINANCIAL RESULTS Q1 Q1 Vs. Q4 Vs. $ millions (except EPS) 2023 2022 Q1 2022 2022 Q4 2022 Revenue $39.5 $39.5 0% $34.8 13% Service revenue 37.1 37.8 -2% 32.8 13% Loss from operations (3.6) (8.3) 57% (3.8) 6% Adjusted operating income (loss)1 2.3 (5.6) 140% (0.5) n/m Pretax loss a
Slide 12: 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 Q2'21 Channel Partner Lenders One Reseller Services √ Q1'22 Large Q2'21 Channe
Slide 13: Operating Metrics
OPERATING ME TRICS Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Ocwen1 Serviced Portfolio2: Default Related Services: Service revenue3 per delinquent loan4 per quarter Non-GSE $ 668 $ 359 $ 366 $ 235 $ 157 $ 158 $ 156 $ 158 $ 210 $ 244 $ 260 $ 243 $ 295 GSE and FHA $
Slide 14: Operating Metrics (Hubzu)
OPERATING ME TRICS Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 1 Hubzu : Service revenue (in millions)2 $ 23.1 $ 14.5 $ 21.4 $ 12.2 $ 7.4 $ 8.6 $ 6.1 $ 5.8 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 Number of homes sold on Hubzu: Ocwen serviced portfolios3 2,107 1,465 1,709 860
Slide 15: Hubzu Inventory
HUBZU IN VENTORY 9.6 Ending Inventory (in 000’s) 8.1 6.9 6.0 6.2 6.3 6.2 6.3 5.9 5.9 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 2.6 2.4 3.7 3.5 2.7 2.4 2.2 2.4 2.5 2.6 2.7 2.7 2.1 2.0 2.0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 All Other Customers O
Slide 16: Debt Amendments and Extensions
DEBT A MENDMENTS A ND EX TENSIONS • Effective February 14, 2023 (the “Transaction Date”), Altisource amended its Credit Agreements1, including the Senior Secured Term Loans and Revolver, and extended the maturity dates to April 2025 as may be extended. General terms are summarized in the table below
Slide 17: Segment Financial Information
SEG MENT F INA NCIAL INFORMATION Service revenue ($ millions) Q1'22 Q4'22 Q1'23 1 Servicer and Real Estate $ 27.2 $ 26.5 $ 29.8 1 Origination 10.6 6.3 7.3 1 Corporate and Others - - - Total $ 37.8 $ 32.8 $ 37.1 Income (loss) before income taxes and non-controlling interests Q1'22 Q4'22 Q1'23 ($ mill
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, loss on sale of business, cost of cost savings initiatives and o
Slide 20: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Loss from operations $ (8.3) $ (3.8) $ (3.6) Intangible asset amortization expense 1.3 1.3 1.3 Share-based compensation expense 1.3 1.2 1.4 Loss on sale of business - 0.2 - Cost of cost savings initiatives and
Slide 21: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Net loss attributable to Altisource $ (12.2) $ (11.3) $ (12.9) Income tax provision 0.9 3.1 1.5 Interest expense, net of interest income 3.5 4.9 6.3 Depreciation and amortization, including intangible asset amo
Slide 22: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Servicer and Real Estate: Income before income taxes and non-controlling interests $ 5.7 $ 8.6 $ 9.9 Depreciation and amortization, including intangible asset amortization 1.0 1.0 1.0 expense EBITDA $ 6.7 $ 9.6
Slide 23: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Corporate and Others: Loss before income taxes and non-controlling interests $ (16.4) $ (15.3) $ (19.6) Non-controlling interests - - - Interest expense, net of interest income 3.5 4.9 6.3 Depreciation and amor
Slide 24: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Net loss attributable to Altisource $ (12.2) $ (11.3) $ (12.9) Intangible asset amortization expense, net of tax 1.3 1.3 1.3 Share-based compensation expense, net of tax 1.2 1.0 1.2 Loss on sale of business, ne
Slide 25: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ 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 Tax benefit from intangible asset amortization (0.0) (0.0) (0.0) Intangibl
Slide 26: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ 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 $ 0.1 $ 0.6 $ 0.6 Tax (benefit) provision from cost of cost savings initiatives an
Slide 27: Non-GAAP Measures Reconciliation and Net Debt
NON-GAAP MEA SURES Reconciliation Q1'22 Q4'22 Q1'23 ($ in millions except per share data) Certain income tax related items resulting from: Certain income tax related items $ 0.3 $ 1.1 $ 0.4 Diluted share count (in 000s) 15,956 16,095 18,442 Certain income tax related items per diluted share $ 0.02 $
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 - Your One Source
a x Altisource YOUR ONE SOURCE™
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