Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (May 2016)
36 slides from Altisource Portfolio Solutions's investor presentation, May 10, 2016
Slide 1: Investor Presentation May 2016
© 2016 Altisource. All rights reserved. Investor Presentation May 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” family of trademarks and ser
Slide 2: Forward-looking statements
1© 2016 Altisource. All rights reserved. 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, including statements about management’s beliefs and expectations. Th
Slide 3: Table of Contents
2© 2016 Altisource. All rights reserved. Overview …………….………………………………………........... 3 Key Investment Highlights ………….………………..…….......... 8 Appendix ………………………….………………………………… 25 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 8,900+ Employees Traded NASDAQ: ASPS Service Revenue: $967 million1 1 For the twel
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 marke
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) S
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 s
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 history of revenue and earnings growth • Attractive cash flow with limited capital requirements • Strategic initiatives position company for longer term revenue growth and customer diversification • Investment in and commitm
Slide 11: Strong History of Revenue and Earnings Growth
10© 2016 Altisource. All rights reserved. 186.7 247.0 334.8 466.9 662.1 938.7 940.9 967.4 20% 22% 26% 27% 24% 18% 8% 9% 21% 25% 27% 28% 29% 22% 20% 21% 5% 10% 15% 20% 25% 30% 35% $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 2009 2010 2011 2012 2013 2014 2015 LTM 3/31/16 Service Revenue
Slide 12: Strong History of Revenue and Earnings Growth (EPS)
11© 2016 Altisource. All rights reserved. 1.07 1.88 2.77 4.43 5.19 5.69 2.02 2.77 1.15 2.17 2.96 4.62 6.25 7.16 6.96 7.90 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2009 2010 2011 2012 2013 2014 2015 LTM 3/31/16 Earnings Per Share - Diluted ($) GAAP EPS - Diluted Adjusted EPS – Dilu
Slide 13: Attractive Cash Flow with Limited Capital Requirements
12© 2016 Altisource. All rights reserved. Attractive Cash Flow with Limited Capital Requirements 33.3 52.8 111.6 116.5 185.5 197.5 195.4 240.3 18% 21% 33% 25% 28% 21% 21% 25% 12% 22% 32% 42% $0 $50 $100 $150 $200 $250 $300 2009 2010 2011 2012 2013 2014 2015 LTM 3/31/16 Operating Cash Flow ($ million
Slide 14: Strategic Initiatives Position Company for Longer Term Growth
13© 2016 Altisource. All rights reserved. Mortgage Market – Grow our Servicer Solutions business – Grow our Origination Solutions business Real Estate Market – Grow our Consumer Real Estate Solutions business – Grow our Real Estate Investor Solutions business Strategic Initiatives Position Company f
Slide 15: Servicer Solutions
14© 2016 Altisource. All rights reserved. • Large addressable market: estimated to be $6.5 billion1 in 2016 • Altisource is one of a few service providers with a full suite of services and a national footprint • We stand to gain market share as customers consolidate to larger full-service vendors •
Slide 16: Servicer Solutions: Hubzu
15© 2016 Altisource. All rights reserved. Servicer Solutions Browser View Mobile View Hubzu® is one of the largest online marketplaces in the U.S. to sell and auction homes. Hubzu’s extensive marketing and scale increase buyer traffic and bidding activity to drive optimal outcomes
Slide 17: Origination Solutions
16© 2016 Altisource. All rights reserved. Origination Solutions square4 Group Purchasing Services square4 VendorlyTM (vendor oversight software) square4 Lead Gen2 square4 Title and Closing square4 Valuation square4 Verification Services square4 Flood Certification square4 Quality Control square4 Und
Slide 18: Origination Solutions platform
17© 2016 Altisource. All rights reserved. Origination Solutions • Lenders One Preferred Investors • CastleLine® Certified Loan Program • Fulfillment Operations Our platform offering includes access to Lenders One members’ originations, CastleLine’s certified loan product and our fulfillment operatio
Slide 19: Consumer Real Estate Solutions
18© 2016 Altisource. All rights reserved. Consumer Real Estate Solutions 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 $69 billion1 in 2016 • Consumers are demonstrating a
Slide 20: Consumer Real Estate Solutions: Owners.com
19© 2016 Altisource. All rights reserved. Consumer Real Estate Solutions Owners.com is an end-to-end transaction platform to buy and sell homes and order related services
Slide 21: Real Estate Investor Solutions
20© 2016 Altisource. All rights reserved. Real Estate Investor Solutions • Investability • RentRange data and analytics • Brokerage • Title and closing • Home inspection • Home warranty • Valuation • Mortgage loan • Brokerage • Auction • Title and closing • Valuation • RentRange data and analytics •
Slide 22: Real Estate Investor Solutions: Investability
21© 2016 Altisource. All rights reserved. Real Estate Investor Solutions Investability is an online platform to search for and acquire single family investment properties and order related services
Slide 23: Demonstrated Progress on Revenue Diversification
22© 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 10756 55 54 55 7 47 51 48 $96 $135 $193 $210 2013 2014 2015 LTM 3/31/16 Adjusted Service R
Slide 24: 2015 Actual, 2016 Scenarios and Q1 2016 Actual
23© 2016 Altisource. All rights reserved. Full Year Actual $ millions (except EPS) 2015 Scenario A3 Scenario B4 Average of Scenarios A and B Q1 2016 % of Scenario Average Service Revenue $ 941 $ 782 $1,005 $ 893 $ 234 26% Pretax Income1 $ 50 $ 60 $ 140 $ 100 $ 21 21% Adjusted Pretax Income1,2 $ 155
Slide 25: Commitment to Quality and Control Environment
24© 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 improvem
Slide 26: Appendix
25© 2016 Altisource. All rights reserved. • Management Team………………………...………………… 26 • Scenario Assumptions………………………………...…….. 27 • Non-GAAP Measures………………………………….……. 29 • Strategic Initiatives and our Businesses………………….. 33 • Investor Relations Information……………………..………. 34 Appendix
Slide 27: Management Team
26© 2016 Altisource. All rights reserved. Management Team Name Title Experience ASPS William B. Shepro Chief Executive Officer and Director 22 7 Michelle D. Esterman Chief Financial Officer 20 4 Kevin J. Wilcox Chief Risk and Administration Officer 22 7 Mark J. Hynes Chief Strategy and Development O
Slide 28: Scenario Assumptions
27© 2016 Altisource. All rights reserved. Scenario Assumptions1 Full Year Actual Q1 Actual 2015 A B Average Q1 2016 Service Revenue by Strategic Initiative Mortgage Services 583$ 382$ 467$ 424$ 148$ Financial Services 34 25 31 28 6 Technology Services 126 75 92 83 21 Subtotal 743 482 589 535 174 Mor
Slide 29: Scenario Assumptions
28© 2016 Altisource. All rights reserved. Scenario Assumptions1 Full Year Actual Q1 Actual 2015 A B Average Q1 2016 Interest expense 28$ 25$ 25$ 25$ 7$ Corporate Items and Eliminations 71$ 78$ 71$ 75$ 17$ Pre-tax income (loss)2 plus non-cash impairment losses3 as a percentage of service revenue Mort
Slide 30: Non-GAAP Measures
29© 2016 Altisource. All rights reserved. • Adjusted Pretax Income Attributable to Altisource, Adjusted Operating Income, Adjusted Net Income Attributable to Altisource and Adjusted Earnings Per Share – Diluted are non-GAAP measures used by our Chief Operating Decision Maker, existing shareholders a
Slide 31: Reconciliation
30© 2016 Altisource. All rights reserved. Reconciliation ($ in millions except share count and per share values) 2009 2010 2011 2012 2013 2014 2015 Q2'15 Q3'15 Q4'15 Q1'16 Total GAAP Pretax Income (Loss)1 37.6 48.9 79.1 119.4 138.5 144.7 49.9 50.3 40.3 (44.9) 20.7 66.4 Add: Intangible amortization e
Slide 32: Reconciliation
31© 2016 Altisource. All rights reserved. Reconciliation ($ in millions except share count and per share values) 2009 2010 2011 2012 2013 2014 2015 Q2'15 Q3'15 Q4'15 Q1'16 Total Calculation of the impact of intangible asset amortization expense, net of tax Intangible amortization expense 2.7 4.9 5.3
Slide 33: Non-GAAP Measures
32© 2016 Altisource. All rights reserved. Non-GAAP Measures Note: Numbers may not sum due to rounding 1 Attributable to Altisource Reconciliation ($ in millions except share count and per share values) A B Average GAAP Pretax Income1 60 140 100 Add: Intangible amortization expense 34 34 34 Adjusted
Slide 34: Strategic Initiatives and our Businesses
33© 2016 Altisource. All rights reserved. Strategic Initiatives and our Businesses Real Estate Brokerage Property Inspection and Preservation Insurance Services Residential Property Valuation Owners.com REALServicing® Default Management Services Equator Cooperative Management (Lenders One and Wholes
Slide 35: Investor Relations Information
34© 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 36: ©
© 2016 Altisource. All rights reserved.
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