Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (March 2014)
24 slides from Altisource Portfolio Solutions's investor presentation, Mar 10, 2014
Slide 1: March 2014 Investor Presentation
March 2014 Investor Presentation
Slide 2: Forward Looking Statements / Non-GAAP Measures
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,” “would,” “plan,” “estimate,” “seek,” “believe” and similar expressions. We caution tha
Slide 3: Table of Contents
Table of Contents Strategy 3 Business Overview 9 Financial Performance 14 Growth Initiatives 17 Appendix 21
Slide 4: Strategy
Strategy 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 marks may be registered with the United States Patent and Trademark Offic
Slide 5: Altisource Vision
Altisource Vision Home Sales Home Rentals Home Maintenance Mortgage Originations Mortgage Servicing Real Estate Marketplace Mortgage Marketplace Vision To be the premier real estate and mortgage marketplace offering both content and distribution to the marketplace participants Mission To offer homeo
Slide 6: Putting the Pieces Together to Serve Marketplaces
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 7: Real Estate Marketplace
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) Service Providers Service Providers Servic
Slide 8: Mortgage Marketplace
Mortgage Marketplace Mortgage Origination Mortgage Servicing Mortgage Originators Service Providers Mortgage Servicers Service Providers Investors Title and escrow, valuation, quality control, verification of employment and income, flood certifications, etc. Servicing technology and dialogue engines
Slide 9: Distribution and Transaction Solutions Enabling the Marketplaces
Distribution and Transaction Solutions Enabling the Marketplaces Vendor selection Price discovery Order processing Fulfillment acceptance Quality control Compliance validation Vendor scoring Invoicing and payment Customer care Collections Advanced analytics Document management Rules engines and proc
Slide 10: Business Overview
Business Overview 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 marks may be registered with the United States Patent and Tradem
Slide 11: Business Overview
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 services Business process management solutions and distribution solutions to enable
Slide 12: Mortgage Services – Summary
Mortgage Services – Summary Service revenue growth principally from continued growth of Ocwen, services expansion and growth of services provided to Lenders One® members Operating margins have generally expanded due to scale benefits and operating efficiencies, partially offset by amortization of th
Slide 13: Financial Services – Summary
Operating margin is calculated using Service revenue, which we define as revenue less revenue from expense reimbursement and non-controlling interest Operating income and margin exclude $2.8mm of goodwill impairment recognized in 2010 Financial Services – Summary 55 During 2013, asset recovery manag
Slide 14: Technology Services – Summary
Technology Services – Summary Revenue growth primarily from Ocwen’s portfolio growth Operating margins have recently declined as we invest in personnel to accelerate our next generation technology development to support our anticipated growth 2008 – 2013 CAGR: 18% Overview (1) Operating margin is ca
Slide 15: Financial Performance
Financial Performance Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à.r.l. or its subsidiaries. These marks may be registered with the United States Patent and Tr
Slide 16: Historical Performance
Altisource’ pase oe Historical Performance Service Revenue ($ millions) Operating cash flow ($ millions) Operating Margin% —@— ‘% of ServiceRevenue —@- 27% 24% = bast 2% 208 25% = 2% Thinking Ahead. Delivering Today®
Slide 17: Historical Performance
Altisource’ ———_ Historical Performance Net Income Attributable to Altisource ($ millions) Diluted Earnings Per Share ($) % of Service Revenue —@~ 79% Return on Equity 0% ———— 2012 am3 Thinking Ahead. Delivering Today®
Slide 18: Growth Initiatives
Growth Initiatives 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 marks may be registered with the United States Patent and Trade
Slide 19: Growth Initiatives
Growth Initiatives Supporting Ocwen’s growth Expanding Hubzu to other institutions and the non-distressed home sale market Providing asset management services to the single family rental market Marketplace: Real Estate Supporting Ocwen’s growth Growing our origination related services through our ac
Slide 20: Service Revenue Scenarios
Service Revenue Scenarios Creating a stable, long-term revenue stream for Altisource as delinquency rates decline. The scenarios are for illustrative purposes only and do not represent a forecast. Note: The above scenarios do not assume any reinvestment of the cash generated from the businesses TM
Slide 21: Service Revenue Scenarios: Assumptions
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 and 2018) None $100 billion 1 Delinquency rate is calculated as the average % of total loans
Slide 22: Appendix
Appendix Altisource, the Altisource logo, the “REAL” family of trademarks and service marks, and certain other marks identified herein are trademarks or service marks of Altisource Solutions S.à.r.l. or its subsidiaries. These marks may be registered with the United States Patent and Trademark Offic
Slide 23: Historical Financial Information – EBITDA Reconciliation and Capital Expenditures
Historical Financial Information – EBITDA Reconciliation and Capital Expenditures Year Ended December 31, ($ mm) 2008 2009 2010 2011 2012 2013 Net Income attributable to Altisource $9.2 $26.0 $49.3 $71.1 $110.6 $130.0 Income tax provision 5.4 11.6 (0.4) 7.9 8.7 8.5 Interest expense, net of interest
Slide 24: About Altisource
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 process, vendor and electronic payment management software and behavioral science based
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