Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Day (December 2013)
35 slides from Altisource Portfolio Solutions's investor day presentation, Dec 3, 2013
Slide 1: Investor Day
© 2013 Altisource. All rights reserved. Proprietary and Confidential. December 3, 2013 Investor Day
Slide 2: Forward Looking Statements / Non-GAAP Measures
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 1 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,” “woul
Slide 3: Table of Contents
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 2 Table of Contents Company Overview 3 Competitive Advantages and Strategy 5 Business Overview 13 Key Investment Highlights 18 Financial Performance 25 Appendix 32
Slide 4: Company Overview
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 3 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 mar
Slide 5: Company Overview
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 4 Chairman: William C. Erbey CEO: William B. Shepro Employees: ~7,600 NASDAQ: ASPS Market Cap: (Nov. 30, 2013) $3.7 Billion Performance since August 2009 Separation from Ocwen® CAGR Share Price: (Through Nov. 30, 2013) 82%
Slide 6: Competitive Advantages and Strategy
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 5 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 mar
Slide 7: Competitive Advantages
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 6 Competitive Advantages Global workforce Low effective tax rate Affinity relationships Next Generation technologies
Slide 8: Altisource Vision
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 7 © 2013 Altisource. All rights reserved. Proprietary and Confidential. Altisource Vision Vision To be the premier real estate and mortgage marketplace offering both content and distribution to the marketplace participants
Slide 9: Putting the Pieces Together to Serve Marketplaces
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 8 Putting the Pieces Together to Serve Marketplaces Large vendor network Technology to order, deliver and pay for services Affinity relationships BPM solutions and people
Slide 10: Real Estate Marketplace
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 9 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 thei
Slide 11: Mortgage Marketplace
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 10 Mortgage Marketplace Mortgage Origination Mortgage Servicing Mortgage Originators Service Providers Mortgage Servicers Service Providers Investors Title and escrow, valuation, quality control, verification of employment
Slide 12: Distribution and Transaction Solutions Enabling the Marketplaces
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 11 Distribution and Transaction Solutions Enabling the Marketplaces Vendor selection Price discovery Order processing Fulfillment acceptance Quality control Compliance validation Vendor scoring Invoicing and payment Custome
Slide 13: U.S. Market Sizes
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 12 U.S. Market Sizes Real Estate Marketplace Home Sales1 5.4 million homes sold in the 12 months ended July 2013 for an aggregate sales price of $1.3 trillion Home Rentals2 21.3 million single family rental homes3 Home Main
Slide 14: Business Overview
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 13 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 ma
Slide 15: Business Overview
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 14 Business Overview Services to the real estate and mortgage marketplaces that are typically outsourced by loan servicers, originators and home owners Accounts receivable management and customer relationship management ser
Slide 16: Mortgage Services Summary
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 15 55.0 71.7 135.7 224.9 351.9 442.6 $0 $100 $200 $300 $400 $500 2008 2009 2010 2011 2012 9/30/13 LTM Segment Service Revenue ($ million) Mortgage Services Summary Service revenue growth principally from continued growth of
Slide 17: Financial Services Summary
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 16 (1) Operating margin is calculated using Service revenue, which we define as revenue less revenue from expense reimbursement and non-controlling interest (2) Operating income and margin exclude $2.8mm of goodwill impairm
Slide 18: Technology Services Summary
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 17 45.3 47.5 52.0 56.1 74.2 90.4 $0 $20 $40 $60 $80 $100 2008 2009 2010 2011 2012 9/30/13 LTM Segment Service Revenue ($ million) Technology Services Summary growth Operating margins have recently declined as we invest in p
Slide 19: Key Investment Highlights
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 18 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 ma
Slide 20: Key Investment Highlights
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 19 Key Investment Highlights Successful Service Development Track Record Strong Recurring Cash Flows Seasoned Management Team Next Generation Technology Strong Revenue Growth Visibility 1 2 3 4 5
Slide 21: Strong Recurring Cash Flows
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 20 28.9 33.3 52.8 111.6 116.5 154.0 $0 $25 $50 $75 $100 $125 $150 $175 2008 2009 2010 2011 2012 9/30/13 LTM Net Operating Cash Flows ($mm) Strong Recurring Cash Flows Altisource is a fee-based transactional business with st
Slide 22: Strong Revenue Growth Visibility
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 21 Strong Revenue Growth Visibility 2 (1) Represent Altisource ty to be raised reflected on Form S-11 filed with the SEC in November 2013 Long term services agreements with Ocwen $435 billion servicing portfolio Long term s
Slide 23: Next Generation Technology
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 22 Next generation technology supports the essence of what Altisource does: Manages a distributed network of vendors Processes the work Delivers the product to our clients Pays the vendors Collects receivables Allows Altiso
Slide 24: Successful Service Development Track Record
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 23 48.1 62.7 81.3 114.4 122.9 23.6 57.5 89.4 129.4 174.5 15.4 29.2 48.7 52.6 25.0 58.9 78.3 0.6 13.1 1.1 71.7 135.7 224.9 351.9 442.6 $0 $100 $200 $300 $400 $500 2009 2010 2011 2012 LTM 9/30/2013 Mortgage Services Service R
Slide 25: Seasoned Management Team
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 24 Seasoned Management Team 5 Strong management team with significant industry experience Name Title Industry Experience ASPS and Ocwen William B. Shepro Chief Executive Officer and Director 19 16.5 Michelle D. Esterman Chi
Slide 26: Financial Performance
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 25 Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identifiedherein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These mar
Slide 27: Financial Metrics
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 26 160.4 186.7 247.0 334.8 466.9 591.4 $0 $100 $200 $300 $400 $500 $600 $700 2008 2009 2010 2011 2012 9/30/13 LTM Service Revenue ($mm) Financial Metrics (1) EBITDA defined as net income attributable to Altisource plus inte
Slide 28: Diluted Earnings per Share and Operating Cash Flow
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 27 0.38 1.08 1.88 2.77 4.43 4.97 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2008 2009 2010 2011 2012 9/30/13 LTM Diluted Earnings per Share ($) 28.9 33.3 52.8 111.6 116.5 154.0 18.0% 17.8% 21.4% 33.3% 25.0% 26.0% 0% 7% 14% 21% 28%
Slide 29: Service Revenue Scenarios
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 28 Service Revenue Scenarios Note: The above scenarios do not assume any reinvestment of the cash generated from the businesses Creating a stable, long-term revenue stream for Altisource as delinquency rates decline. The sc
Slide 30: Service Revenue Scenarios: Assumptions
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 29 Service Revenue Scenarios: Assumptions Portfolio acquisition assumptions Scenario 1 Scenario 2 Annual non-GSE portfolio acquisitions by Ocwen in 2014, 2015 and 2016 (no non-GSE portfolio acquisitions in 2017) None $100 b
Slide 31: Stock Performance Since Separation from Ocwen
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 30 $0 $50 $100 $150 $200 $250 8/6/09 11/6/09 2/6/10 5/6/10 8/6/10 11/6/10 2/6/11 5/6/11 8/6/11 11/6/11 2/6/12 5/6/12 8/6/12 11/6/12 2/6/13 5/6/13 8/6/13 11/6/13 Stock Performance Since Separation from Ocwen(1) ASPS stock pr
Slide 32: Key Investment Highlights
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 31 Key Investment Highlights Successful Service Development Track Record Strong Recurring Cash Flows Seasoned Management Team Next Generation Technology Strong Revenue Growth 1 2 3 4 5
Slide 33: Appendix
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 32 herein are trademarks or service marks of Altisource Solutions S.à r.l. or its subsidiaries. These marks may be registered with the United States Patent and Trademark Office and Intellectual Property Offices of other cou
Slide 34: Historical Financial Information: EBITDA Reconciliation and Capital Expenditures
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 33 1/2 Historical Financial Information EBITDA Reconciliation and Capital Expenditures Year Ended December 31, LTM ($ mm) 2008 2009 2010 2011 2012 9/30/13 Net Income attributable to Altisource $9.2 $26.0 $49.3 $71.1 $110.6
Slide 35: About Altisource / Contact Information
© 2013 Altisource. All rights reserved. Proprietary and Confidential. Page | 34 © About Altisource We are a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries offering both distribution and content. We leverage proprietary business proce
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