Financial Results in Focus: CoreLogic (NYSE: CLGX)

On Friday, Shares of CoreLogic (NYSE: CLGX) showed the bullish trend with a higher momentum of 1.52% to $40.81. The company traded total volume of 1,059,202 shares as contrast to its average volume of 538.41K shares. The company has a market value of $3.25B and about 79.54M shares outstanding.

CoreLogic (CLGX), a leading global provider of residential property information, insight, analytics and data-enabled solutions, recently stated financial results for the quarter and year ended December 31, 2018.

Fourth Quarter Financial Summary:

Fourth quarter stated revenues totaled $403.0M contrast with $454.0M in the same 2017 period. During the quarter, U.S. mortgage market volumes declined by an estimated 25% on lower refinancing activity and home sales. Property Intelligence & Risk Management Solutions (“PIRM”) revenues fell 7% from 2017 levels to $168.0M, due mainly to lower contributions from weather-related natural hazard solutions, the impact of lower U.S. mortgage loan volumes and unfavorable foreign currency translation. Underwriting & Workflow Solutions (“UWS”) revenues totaled $239.0M, down 14% from 2017 levels, as benefits from market outperformance and higher collateral valuation platform revenues partially offset mortgage market unit declines and lower AMC volumes.

Operating income from continuing operations totaled $29.0M for the fourth quarter contrast with $65.0M in 2017. Lower operating income was principally attributable to the impact of a 25% decline in origination unit volumes, lower weather-related natural hazard revenues, higher investment spend, and the 2018 non-cash impairment charge discussed formerly.

Fourth quarter net income from continuing operations totaled $13.0M, a decline of $52.0M when contrast to 2017. The decline was mainly driven by U.S. mortgage market headwinds, the above described 2017 tax benefit and the 2018 non-cash impairment charge. Diluted EPS from continuing operations totaled $0.16 for the fourth quarter of 2018 contrast with $0.78 in 2017. Adjusted EPS totaled $0.48 contrast with $0.55 in the fourth quarter of 2017.

Adjusted EBITDA totaled $103.0M in the fourth quarter contrast with $117.0M in the same prior year period. The year-over-year reduction in adjusted EBITDA resulted principally from lower revenues and higher levels of investment on data and technology capabilities, partially offset by cost management benefits. PIRM segment adjusted EBITDA totaled $41.0M contrast to $50.0M in 2017. UWS adjusted EBITDA was $71.0M, in-line with the prior year total of $72.0M.

Liquidity and Capital Resources:

At December 31, 2018, the Company had cash and cash equivalents of $85.0M contrast with $119.0M at December 31, 2017. Total debt as of December 31, 2018 was $1,797.0M contrast with $1,777.0M as of December 31, 2017. As of December 31, 2018, the Company had available capacity on its revolving credit facility of $522.0M. During 2018, the Company made $90.0M in voluntary principal payments against its outstanding term loan obligations.

Net operating cash offered by continuing operations for the year ended December 31, 2018 was $355.0M. Free cash flow (“FCF”) for the year ended December 31, 2018 totaled $258.0M, which represented 52% of adjusted EBITDA.

In 2018, the Company repurchased 2.30M of its common shares for $109.0M. In line with its strategy of growing its platform, insurance and international revenues, during the fourth quarter of 2018 the Company purchased HomeVisit and the remaining interest in Symbility.

2019 Full Year Financial Guidance and Assumptions:

2019 guidance ranges for revenues, adjusted EBITDA and adjusted EPS are as follows:

  • Revenue of $1.620 to $1.680B,
  • Adjusted EBITDA of $450 to $480.0M, and Adjusted EPS of $2.25 to $2.55.

The Company offered net profit margin of 6.80% while its gross profit margin was 48.50%. ROE was recorded as 12.00% while beta factor was 0.86. The stock, as of recent close, has shown the weekly downbeat performance of -3.11% which was maintained at 22.11% in this year.


      

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