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Dec 31, 2019

Altisource Q4 2019 Earnings Report

Altisource reported a net loss and a decrease in service revenue compared to the same quarter last year, but saw growth in revenue from customers other than Ocwen, NRZ and RESI.

Key Takeaways

Altisource reported a net loss attributable to Altisource of $306.1 million, or $(19.66) per diluted share. Service revenue was $132.6 million, a 37% decrease compared to the fourth quarter 2018. The company's adjusted net income attributable to Altisource was $4.1 million, or $0.26 per diluted share.

Service revenue of $132.6 million

Loss from operations of $(6.5) million

Adjusted operating income of $11.3 million

Adjusted EBITDA of $15.6 million

Total Revenue
$133M
Previous year: $211M
-37.2%
EPS
$0.26
Previous year: $0.59
-55.9%
Gross Profit
$35.1M
Previous year: $53.4M
-34.4%
Cash and Equivalents
$82.7M
Previous year: $58.3M
+41.9%
Free Cash Flow
$23.5M
Previous year: $25M
-6.0%
Total Assets
$385M
Previous year: $742M
-48.1%

Altisource

Altisource

Forward Guidance

Looking to 2020, Altisource's objectives are to accelerate the growth of their core businesses from customers other than Ocwen and NRZ, lower costs, maintain strong liquidity, and reduce debt based upon business and market conditions. They anticipate growing business from other customers by 25% to 35% in 2020 despite historically low delinquency rates and believe they are in a very strong position to benefit from growing loan originations and a softening economy.

Positive Outlook

  • Accelerate the growth of our core businesses from customers other than Ocwen and NRZ
  • Lower costs
  • Maintain strong liquidity
  • Reduce debt based upon business and market conditions
  • Growing business from other customers by 25% to 35% in 2020 despite historically low delinquency rates