Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (November 2023)
22 slides from Altisource Portfolio Solutions's investor presentation, Nov 15, 2023
Slide 1: Investor Presentation November 2023
I N V E S T O R P R E S E N T A T I O N N A S D A Q : A S P S ALTISOURCE PORTFOLIO SOLUTIONS N O V E M B E R 2 0 2 3
Slide 2: Disclaimer: Cautionary Statement Regarding Forward Looking Statements
© 2023 Altisource All Rights Reserved. DISCLAIMER 2 CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This corporate presentation includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litig
Slide 3: Company Highlights
© 2023 Altisource All Rights Reserved. COMPANY HIGHLIGHTS 3 Altisource is positioned for attractive growth as we look to 2024 and beyond Adjusted EBITDA1 performance is improving post pandemic impact • Q3’23 Adjusted EBITDA of $0.9 million1 was $7.3 million better than Q3’22 • YTD September’23 Adjus
Slide 4: Overview of Altisource
© 2023 Altisource All Rights Reserved. OVERVIEW OF ALTISOURCE 4 1 Comprehensive suite of solutions 1 Full time employees, excluding contractors, as of October 31, 2023 2 Service Revenue presented herein excludes reimbursable expenses and non-controlling interests. LTM Q3’23 represents last twelve mo
Slide 5: Overview of Altisource
© 2023 Altisource All Rights Reserved. OVERVIEW OF ALTISOURCE 5 Note: Numbers may not sum due to rounding 1 Service revenue for YTD September’23 2 Rithm Capital Corp. (“RITM” formerly known as New Residential Investment Corp.) 3 Represents the amount of Field Services, Valuation and Title Service Re
Slide 6: Solutions Along the Foreclosure Process
© 2023 Altisource All Rights Reserved. 6 SOLUTIONS ALONG THE FORECLOSURE PROCESS Asset Management Workflow and Invoicing Solutions Technology solutions that support loan servicers and real estate investors Online Real Estate Marketing Platform Real Estate Marketplace Real Estate Brokerage Valuation
Slide 7: Service Offerings: SRE Businesses
© 2023 Altisource All Rights Reserved. SERVICE OFFERINGS 7 SRE Businesses Description M A R K E T P L A C E Hubzu® Online Real Estate Marketing Platform, Real Estate Brokerage and Asset Management Real Estate Marketplace S O L U T I O N S Property Inspection and Preservation (Field Services) Title a
Slide 8: Compelling Growth Catalysts: Foreclosure Starts and Timing
© 2023 Altisource All Rights Reserved. COMPELLING GROWTH CATALYSTS 8 Foreclosure Starts and Timing Foreclosure Starts Days • In response to the COVID-19 pandemic, borrowers were provided various relief measures including foreclosure and eviction moratoriums, forbearance programs and loss mitigation
Slide 9: Foreclosures that Convert to Foreclosure Sales
© 2023 Altisource All Rights Reserved. 9 Foreclosures that Convert to Foreclosure Sales Foreclosure Sales % • Foreclosure sales are increasing, but remain significantly lower than pre- pandemic levels as there is a lag between foreclosure starts and sales • Foreclosure sales for the nine months ende
Slide 10: Macroeconomic Environment
© 2023 Altisource All Rights Reserved. • Government relief measures and the historically low interest rate environment boosted the economy during the pandemic • Federal Funds rate has been raised 11 times since March 2022 • Student loan payments resumed in October 2023 • 30-year fixed interest mortg
Slide 11: Solutions Along Loan Origination Process
© 2023 Altisource All Rights Reserved. SOLUTIONS ALONG LOAN ORIGINATION PROCESS Membership Events Market Intelligence and Benchmarking Vendor Management SaaS Insurance Capital Markets Solutions Suite of Third-Party Solutions Borrower Verifications Tri-merge Credit and Related Products Flood Certific
Slide 12: Service Offerings: ORG Businesses
© 2023 Altisource All Rights Reserved. 12 ORG Businesses Description L E N D E R S O N E ® S O L U T I O N S Mortgage Loan Fulfillment Title and Escrow Valuation Products Insurance O R I G I N AT I O N T E C H Vendor Management SaaS Loan QC SaaS Document Solutions SaaS Automated Home Valuation Model
Slide 13: Lenders One growth opportunity and network effect
© 2023 Altisource All Rights Reserved. 13 1 MBA Mortgage Finance Forecasts from April 2020 through October 2023 2 US REO Partners, MBA “IMBs Report Losses in the Third Quarter of 2022” (November 18 2022) 3 For certain other Origination solutions (e.g., Trelix, Title and Escrow), customers are increa
Slide 14: Consolidated Sales Pipeline and Wins
© 2023 Altisource All Rights Reserved. CONSOLIDATED SALES P IPELINE AND WINS 14 $56.2 $65.3 $59.0 $68.9 $62.4 $63.2 $45.9 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $3.0 $9.6 $14.4 $4.0 $17.8 $5.7 $16.9 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $0.2 $0.5 $0.9 $1.2 $2.6 $3.2 $3.4 Q1'22 Q2'22 Q3'22 Q4'
Slide 15: Financial Performance Summary
© 2023 Altisource All Rights Reserved. FINANCIAL PERFORMANCE SUMMARY 15 Note: Dollars in millions 1 2019-2021 includes Service Revenue and Adjusted EBITDA from businesses that have been sold or discontinued 2 Adjusted EBITDA margin is a non-GAAP measure reconciled and calculated in the Appendix. For
Slide 16: Defined Path to Positive Cash Flow
© 2023 Altisource All Rights Reserved. DEFINED PATH TO POSIT IVE CASH FLOW 16 • Slides 21 and 22 in the Appendix summarize the assumptions used in arriving at this Run- Rate scenario • The Run-Rate scenario assumes the default market will return to a normal, pre-pandemic foreclosure environment; it
Slide 17: Appendix
Altisource APPENDIX
Slide 18: Reconciliation of Non-GAAP Measures
© 2023 Altisource All Rights Reserved. RECONCIL IATION OF NON-GAAP MEASURES 18 Note: Numbers may not sum due to rounding 1 Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for certain special items set forth in the table above 2 Adjusted EBITDA marg
Slide 19: Reconciliation of Non-GAAP Measures: Servicer and Real Estate
© 2023 Altisource All Rights Reserved. RECONCIL IATION OF NON-GAAP MEASURES 19 Note: Numbers may not sum due to rounding 1 Adjusted EBITDA is a non-GAAP measure reconciled and calculated in the Appendix. For a definition of Adjusted EBITDA, see page 18 2 Adjusted EBITDA margin is a non-GAAP measure
Slide 20: Reconciliation of Non-GAAP Measures: Corporate and Others
© 2023 Altisource All Rights Reserved. RECONCIL IATION OF NON-GAAP MEASURES 20 Note: Numbers may not sum due to rounding. NM stands for not meaningful 1 Adjusted EBITDA is a non-GAAP measure reconciled and calculated in the Appendix. For a definition of Adjusted EBITDA, see page 18 2 Adjusted EBITDA
Slide 21: Run-Rate Scenario Assumptions: Servicer and Real Estate
© 2023 Altisource All Rights Reserved. ($ in millions, except for Service revenue per delinquent loan / active foreclosure) 2019 LTM Q3’23 Run-Rate Scenario Servicer and Real Estate Segment: Default Service revenue - Ocwen-serviced loans (Non GSE): Average number of loans serviced by Ocwen (in 000s)
Slide 22: Normal Default Market Run-Rate Assumptions
© 2023 Altisource All Rights Reserved. ($ in millions, except for Service revenue per delinquent loan / active foreclosure) 2019 LTM Q3’23 Run-Rate Scenario Origination Segment: Total Origination segment Service revenue $ 36.8 $ 29.1 $ 29.1 Corporate and Others Segment: Total Corporate and Others Se
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