Take note of This News: Altisource Portfolio Solutions S.A. (NASDAQ: ASPS)

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On 20 April 2020, Altisource Portfolio Solutions S.A.  (NASDAQ: ASPS) stock observed trading -73.99% off 52-week high price. On the other end, the stock has been noted 8.83% away from low price over the last 52-weeks. The stock disclosed a move of -10.24% away from 50 day moving average and -63.24% away from 200 day moving average. Moving closer, we can see that shares have been trading -10.24% off 20-day moving average.

Altisource Portfolio Solutions S.A. (ASPS) recently stated financial results for the fourth quarter and full year 2019.

“During 2019, we continued to reposition Altisource. We sold and closed certain non-core businesses, consolidated our sales and marketing resources under a seasoned leader, established an innovative product organization and further developed our core Field Services, Marketplace, and Mortgage and Real Estate Solutions businesses. Across our three core businesses, fourth quarter 2019 service revenue from consumers other than Ocwen, NRZ and RESI grew by 19% contrast to the fourth quarter 2018,” stated Chairman and Chief Executive Officer William B. Shepro.

Mr. Shepro further commented, “Looking to 2020, our objectives are to accelerate the growth of our core businesses from consumers other than Ocwen and NRZ, lower costs, maintain strong liquidity, and reduce debt based upon business and market conditions.  We are gaining market share and winning business with some of the largest financial institutions in the country and anticipate growing business from other consumers by 25% to 35% in 2020 despite historically low delinquency rates. We believe we are in a very strong position to benefit from growing loan originations and a softening economy.”

2019 Financial Results

2019 service revenue of $621.9M was 23% lower than 2018, primarily from the July 1, 2019 sale of the Financial Services business, Ocwen’s second quarter 2019 migration from REAL Servicing to another servicing system, the discontinuation of the BRS business, the reduction in the size of Ocwen’s servicing portfolio and RESI’s real estate owned (“REO”) portfolio, NRZ’s more aggressive sale of homes at foreclosure auctions (which reduces our REO auction, brokerage, field services and title referral service revenue) and the temporary impact that Ocwen’s transition to another servicing system had on default related referral volume and REO inventory conversion rates.  These decreases were partially offset by a raise in Field Services revenue from higher volumes of orders from new consumers.

The Company estimates that 2019 revenue declined by about $7.2M because of lower REO inventory conversion rates related to Ocwen’s transition to a new servicing system.  Pretax earnings were negatively influenced by a similar amount since the Company’s cost structure would have supported this anticipated revenue.  The Company believes that the lower REO conversion rates are temporary and anticipates returning to normal conversion rates during the first half of 2020.

Fourth quarter 2019 service revenue of $132.6M was 37% lower than the fourth quarter 2018, primarily as a result of the sale of the Financial Services business, the discontinuation of the BRS business and lower revenues from Ocwen, NRZ and RESI, as described above.

2019 income from operations of $18.1M was 58% lower than 2018, primarily from the impact of the revenue declines discussed above, revenue mix with lower revenue from high margin businesses and a higher write-off of goodwill and intangible assets related to the wind down of Owners.com in 2019, partially offset by lower selling, general and administrative expenses from the benefits of restructuring activities, lower intangible asset amortization (service revenue based amortization) and a lower sales tax loss accrual.  The effect of the higher gain on sale of businesses was largely offset by higher restructuring charges in 2019.

2019 adjusted operating income (1) of $53.4M was 40% lower than 2018, primarily from the impact of revenue declines and revenue mix discussed above, partially offset by the benefits of restructuring activities.

Fourth quarter 2019 loss from operations was $6.5M contrast to income from operations of $2.0M in the fourth quarter 2018, primarily from the impact of revenue declines discussed above, revenue mix with lower revenue from high margin businesses and a higher write-off of goodwill and intangible assets related to the wind down of Owners.com, partially offset by lower selling, general and administrative expenses from the benefits of restructuring activities, lower intangible asset amortization (service revenue based amortization) and lower restructuring charges.

Fourth quarter 2019 adjusted operating income (1) of $11.3M was 53% lower than the fourth quarter 2018, primarily from the impact of revenue declines and revenue mix discussed above, partially offset by the benefits of restructuring activities.

2019 income before income taxes and non-controlling interests was $12.4M contrast to $1.4M in 2018, primarily from higher unrealized gains on the investment in RESI stock, the write-off of the net discount and debt issuance costs from the debt refinancing in 2018 and lower interest expense, partially offset by the lower operating income discussed above.

2019 adjusted pretax income attributable to Altisource (1) of $31.2M was 50% lower than 2018, primarily from lower adjusted operating income (1) discussed above, partially offset by lower interest expense.

Fourth quarter 2019 loss before income taxes and non-controlling interests of $8.5M was 34% lower than the fourth quarter 2018, primarily from higher unrealized gains on the investment in RESI stock and lower interest expense, partially offset by lower operating income discussed above.

Fourth quarter 2019 adjusted pretax income attributable to Altisource (1) of $6.6M was 63% lower than the fourth quarter 2018, primarily from lower adjusted operating income(1) discussed above, partially offset by lower interest expense.

2019 diluted loss per share was $19.26 contrast to a diluted loss per share of $0.32 in 2018.  2019 diluted loss per share includes certain non-cash income tax expense items totaling $311.2M.  These items include a full valuation allowance on the Company’s Luxembourg net deferred tax assets, the impact of a change in the Luxembourg income tax rate and adjustments to foreign income tax reserves.  Because the Company has cumulative losses in Luxembourg for the past three years, a full valuation allowance on the net deferred tax assets was recognized.  The full year non-cash income tax provision of $318.3M also reflects a change in the Luxembourg statutory income tax rate from 26.0% to 24.9% and adjustments to foreign income tax reserves.

2019 adjusted earnings per share (1) of $1.34 was 45% lower than 2018, primarily from lower adjusted pretax income attributable to Altisource (1) discussed above, partially offset by fewer diluted shares outstanding from share repurchases.

Fourth quarter 2019 diluted loss per share was $19.66 contrast to a diluted loss per share of $0.69 in the fourth quarter 2018.  Fourth quarter 2019 net loss includes certain non-cash income tax expense items totaling $298.9M.  These items include a full valuation allowance on the Company’s Luxembourg net deferred tax assets and adjustments to foreign income tax reserves discussed above.

Altisource Portfolio Solutions S.A. moved with change of -5.64% to $6.53 with the total traded volume of 70,701 shares in recent session versus to an average volume of 123.73K. ASPS’s shares are at -66.37% for the quarter and driving a -72.38% return over the course of the past year and is now at -66.22% since this point in 2018.  Right now, the stock beta is 1.24. There are 15.57M shares outstanding and 101.67M shares are floated in market.

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