Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (May 2012)
25 slides from Altisource Portfolio Solutions's investor presentation, May 23, 2012
Slide 1: Altisource Today
Altisource Altisource Today May 2012
Slide 2: Forward-looking Statements
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 that forward-looking statements are qualified to c
Slide 3: Overview
Overview Altisource is a provider of services focused on high-value, technology-enabled, knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. William C. Erbey, Chairman William C. Erbey, Chairman William
Slide 4: Key Takeaways
Key Takeaways Strong revenue growth visibility Operating margin expansion Attractive growth opportunities Strong cash generation
Slide 5: Strong Revenue Growth Visibility
Strong Revenue Growth Visibility Long-term (8 year) service agreements with Ocwen(r) Long runway for elevated default and REO oriented service referrals Ocwen's track record of growing servicing business over an extended period of time Litton portfolio acquisition completed in September 2011 Saxon/M
Slide 6: Operating Margin Expansion
Operating Margin Expansion Enabling operating margin improvement over full year 2011: Accelerated Service Revenue growth of Mortgage Services relative to the other segments Reduced employee and vendor costs through deployment of next generation vendor management and business process management techn
Slide 7: Build Foundation
Attractive Growth Opportunities Build Foundation Consistent, high- quality delivery leading to enhanced customer satisfaction Sustainable long-term growth leading to shareholder value creation People Technology Infrastructure Finance / Human Resources / Law / Quality Assurance / Vendor Management Me
Slide 8: Market verticals present significant opportunity for long-term growth
Attractive Growth Opportunities The market verticals in which we operate present significant opportunity for long-term growth. We believe success is a function of selective deployment of resources and execution.
Slide 9: Correspondent One and Lenders One
. Attractive Growth Opportunities - Correspondent One Altisource Correspondent One Members of Lenders One Purchases closed loans from mortgage bankers Sells loans The Cooperative provides its members with education and training along with revenue enhancing, cost reducing and market share expanding o
Slide 10: Correspondent One targets and progress
Targeting to acquire $500 million to $1 billion of closed conventional loans from Lenders One members in 2012 Purchased $6 million of loans from the 3 pilot participants in the 1st quarter of 2012; pilot phase now complete Expanding the number of Lenders One members approved to sell loans to Corresp
Slide 11: Residential Asset Business
. Attractive Growth Opportunities - Residential Asset Business Million Multi-Family Units Million Single-Family Units $3 trillion Single family residential rental market estimated at $3 trillion with estimated conversion to rental of 4 million additional units by 2015 More than $3 billion of capital
Slide 12: Rental Asset Business: Operating Model Competitive Advantages
Attractive Growth Opportunities - Rental Asset Business: Operating Model Competitive Advantages Robust technology to automate leasing and property management activities for speed, cost, accuracy and compliance Centralized offshore resources Standardized controlled processes Knowledge management and
Slide 13: Residential Asset Business structure
Attractive Growth Opportunities - Residential Asset Business Altisource Residential GP, LLC, a Delaware LLC Altisource Asset Management Corporation, a U.S.V.I. corporation Altisource Residential L.P. Altisource Residential Institutional Investor, LLC, a Delaware LLC (taxed as a corporation) The foll
Slide 14: Consumer Real Estate Portal
An on-line solution for buying and selling real estate and related services in an automated, integrated and transparent fashion: The market is immense - the 2012 forecast for home sales in the United States is approximately $780 billion We estimate these sales will generate over $40 billion in broke
Slide 15: Consumer Real Estate Portal metrics
Attractive Growth Opportunities - Consumer Real Estate Portal 200 thousand+ registered prospective buyers 1 million+ monthly visitors 9 million+ detailed property views per month 260 detailed views per property per month 8+ average offers per property Unmatched repository of insights and data MLS Ma
Slide 16: Strong Cash Generation
Strong Cash Generation Altisource has limited capital requirements, no debt and a low cost operating model. First quarter cash flow of each year is impacted by annual bonus payments. We look to deploy cash through: Planned 2012 investment in Residential Asset business Capital Expenditures - $16.2 mi
Slide 17: Key Takeaways
Key Takeaways Strong revenue growth visibility Operating margin expansion Attractive growth opportunities Strong cash generation
Slide 18: About Altisource
About Altisource(tm) We are a provider of services focused on high-value, technology-enabled, knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. Contact Information All Investor Relations inquiries shou
Slide 19: Appendices
Appendices What We Do (slides 20 - 22) Service Revenue per Loan (slides 23 - 24) Stock Repurchase Program (slide 25)
Slide 20: What We Do - Mortgage and Real Estate Services
What We Do - Mortgage and Real Estate Services ORIGINATION Valuation Property Preservation and Inspection Mortgage Component Services DEFAULT MANAGEMEN T Valuation Field Services Title Insurance Settlement Services Rental Property Management Pricing / Marketing Strategy Eviction Management ASSET MAN
Slide 21: What We Do - Customer Relationship & Receivable Management
What We Do - Customer Relationship & Receivable Management Altisource's subsidiary, Nationwide Credit(r), leverages a combination of behavioral sciences and a proprietary dialogue engine to help clients streamline processes, grow their customer base and improve their margins. Customer Relationship M
Slide 22: What We Do - Technology Platform Strategy
What We Do - Technology Platform Strategy Transaction Services REALTrans(c) REALFoundation(tm) REALRemit(c) SaaS Infrastructure Service REALDoc(tm) Mortgage Industry Applications Temp Staffing Industry Apps Healthcare Industry Apps Insurance Industry Apps Valuation Property Preservatio n Title Bankr
Slide 23: Service Revenue per Loan Serviced by Ocwen
Service Revenue per Loan Serviced by Ocwen(r) Notes: Service Revenue per loan is measured for the quarter. Average loans serviced for Q1'12 is provisional and subject to change. Revenue from Ocwen is derived through a variety of services with different revenue recognition practices. Factors that imp
Slide 24: Service Revenue per Loan per Quarter
Service Revenue per Loan per Quarter Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Mortgage Services Revenue from Related Parties ($ 000s) 24,762 31,222 34,765 44,906 45,286 49,411 58,370 70,117 76,085 Less: Reimbursable Revenue Included Above 7,897 10,371 12,565 13,733 15,068 18,689 21,464
Slide 25: Stock Repurchase Program
Since August 2009 Stock Repurchase Program Net share impact Option grants - Executive Management* - 560,000 Other option grants, net of forfeitures* - 269,503 Stock option grants, net of forfeitures - 24,253 Stock repurchases 2,283,843 (2,283,843) As of December 31, 2011 2,283,843 (1,430,087) Stock
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