LUXEMBOURG, April 18, 2024 (GLOBE NEWSWIRE) -- On Thursday, April 25, 2024, Altisource Portfolio Solutions S.A. (“Altisource”) (NASDAQ: ASPS) will report earnings for the first quarter 2024. A press release and presentation will be available on Altisource’s website in the Investor Relations section. Altisource will also host a conference call at 8:30 a.m. EDT on the same day to discuss its first quarter 2024 results. A link to the live audio webcast will be available on Altisource’s website in the Investor ...

Group 1: Market Overview - The real estate sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - An asset is considered oversold when the Relative Strength Index (RSI) is below 30, indicating potential for short-term price recovery [1] Group 2: LuxUrban Hotels Inc. (LUXH) - LuxUrban issued a preliminary fourth-quarter revenue outlook that fell below estimates, despite a transformative year with a 160% increase in net rental revenue and a 146% increase in Adjusted EBITDA [2] - The company's stock has decreased approximately 43% over the past month, reaching a 52-week low of $1.25 [2] - The current RSI value for LuxUrban is 25.10, with shares trading at $1.2950 after a 1.9% decline [2] Group 3: Altisource Portfolio Solutions S.A. (ASPS) - Altisource reported a narrower-than-expected quarterly loss, with service revenue in the Servicer and Real Estate segment only 4% lower than 2022 [3] - The company experienced a stock decline of around 74% over the past month, with a 52-week low of $1.58 [3] - The current RSI value for Altisource is 22.36, with shares trading at $1.5950 after a 7.2% drop [3]

Altisource Portfolio Solutions (ASPS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Indi ...

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Q4 2023 Earnings Conference Call March 7, 2024 8:30 AM ET Company Participants Michelle Esterman - CFO Bill Shepro - Chairman and CEO Conference Call Participants Raj Sharma - B. Riley Mike Grondahl - Northland Operator Hello and thank you for standing by. Welcome to Altisource Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After speakers' presentation, there will be a question-and-answer session. [Ope ...

ALTISOURCE FOURTH QUARTER 2023 SUPPLEMENTARY INFORMATION MARCH 7, 2024 DISCLAIMER This presentation contains forward-looking statements that involve a number of risks statements are subject include, but are not limited to, risks related to the COVID-19 and uncertainties. These forward-looking statements include all statements that are pandemic, customer concentration, the timing of the anticipated increase in default not historical fact, including statements that relate to, among other things, future relate ...

Core Insights - Altisource Portfolio Solutions (ASPS) reported a revenue of $32.21 million for the quarter ended December 2023, reflecting a year-over-year decline of 1.8% [1] - The earnings per share (EPS) for the quarter was -$0.37, an improvement from -$0.45 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $34.36 million, resulting in a surprise of -6.25% [1] - The company experienced an EPS surprise of -12.12%, with the consensus EPS estimate being -$0.33 [1] Revenue Breakdown - Service revenue was reported at $32.21 million, compared to the average estimate of $34.35 million, indicating a year-over-year change of -1.8% [2] - Revenue from non-controlling interests was $0.07 million, significantly lower than the estimated $0.33 million, representing a decline of 37.6% year-over-year [2] - Reimbursable expenses revenue was $1.88 million, slightly above the average estimate of $1.66 million, showing a minimal year-over-year change of -0.3% [2] Stock Performance - Over the past month, shares of Altisource Portfolio have returned +10.2%, outperforming the Zacks S&P 500 composite's +3.2% change [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

Company Performance - Altisource Portfolio Solutions reported a quarterly loss of $0.37 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.33, but an improvement from a loss of $0.45 per share a year ago [1] - The company posted revenues of $32.21 million for the quarter, missing the Zacks Consensus Estimate by 6.25% and down from $32.81 million year-over-year [1] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has missed revenue estimates three times [1] Stock Performance - Altisource Portfolio shares have declined approximately 17.7% since the beginning of the year, contrasting with a 7% gain in the S&P 500 [2] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [4] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is -$0.34 on revenues of $35.15 million, while the estimate for the current fiscal year is -$1.30 on revenues of $163.67 million [4] - The trend of estimate revisions for Altisource Portfolio is mixed, which could change following the recent earnings report [4] Industry Context - The REIT and Equity Trust industry, to which Altisource Portfolio belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges ahead [5] - The performance of Altisource Portfolio may be influenced by the overall outlook of the industry [5]

Company Performance - Altisource Portfolio Solutions reported a service revenue of $136.6 million for the full year 2023, with a loss before income taxes of $(52.3) million and a net loss attributable to Altisource of $(56.3) million [6][7] - The company improved its total Adjusted EBITDA by $15.7 million in 2023 compared to 2022, with margins in the Servicer and Real Estate segments increasing to 25% from 18% [3][4] - In the fourth quarter of 2023, service revenue was $32.2 million, with a net loss attributable to Altisource of $(13.2) million [7][8] Business Segments - Service revenue in the Servicer and Real Estate segment was only down 4%, while the Origination segment outperformed the market with an 11% decline compared to a 36% decline in industrywide residential origination volume [4][5] - Adjusted EBITDA in the Business Segments improved by $7.8 million (30%) to $34.2 million in 2023 compared to 2022 [4] - The company ended 2023 with a weighted average sales pipeline estimated between $43 million and $53 million [4] Industry Context - Industrywide mortgage origination volume decreased by 36% in 2023 compared to 2022, while foreclosure initiations were 4% lower than in 2022 [5] - The industrywide early-stage mortgage delinquencies increased by 15% in December 2023 compared to December 2022 [5] - The seriously delinquent mortgage rate decreased to 1.3% in December 2023 compared to 1.6% in December 2022 [5] 2024 Financial Guidance - For 2024, the company forecasts service revenue to be in the range of $155 million to $180 million, representing a growth of 13% to 32% compared to 2023 [2][10] - Adjusted EBITDA is anticipated to be in the range of $17.5 million to $22.5 million, driven by revenue growth and lower corporate costs [2][10]

Revenue and Financial Performance - Ocwen accounted for 44% of total revenue for the year ended December 31, 2023[209]. - Total revenue for 2023 was $145.1 million, down 5% from $153.1 million in 2022[219]. - Service revenue for the year ended December 31, 2023, was $136.6 million, a 5% decrease from $144.5 million in 2022[221]. - Service revenue for the year ended December 31, 2023, was $107.8 million, a 4% decrease compared to $112.1 million in 2022[239]. - The Origination segment recognized service revenue of $28.8 million for the year ended December 31, 2023, an 11% decrease compared to $32.4 million in 2022[250]. - Revenue from Ocwen for the years ended December 31, 2023 and 2022 was $63.2 million and $63.5 million, respectively, representing 55% and 53% of segment revenue[294]. - Revenue recognized from Rithm under the Brokerage Agreement for the years ended December 31, 2023 and 2022 was $2.8 million and $3.2 million, respectively[298]. - The company recognized additional revenue of $12.6 million and $13.0 million for the years ended December 31, 2023 and 2022, respectively, when a party other than Rithm selected Altisource as the service provider[298]. - Total revenue for 2023 was $1,709,000, a decrease of 59% compared to $4,222,000 in 2022[376]. Expenses and Losses - Cost of revenue decreased by 12% to $115.4 million in 2023, down from $131.3 million in 2022[225]. - Selling, general and administrative (SG&A) expenses decreased by 15% to $46.4 million in 2023, compared to $54.8 million in 2022[229]. - Loss from operations was $(16.8) million, representing (12)% of service revenue, an improvement from $(33.2) million, or (23)%, in 2022[230]. - Other income (expense), net was $(35.6) million for 2023, compared to $(14.4) million in 2022, primarily due to higher interest expense[231]. - Net loss attributable to Altisource was $(56.3) million for 2023, a 5% increase from $(53.4) million in 2022[219]. - The company recognized a $3.7 million income tax provision for the year ending December 31, 2023[314]. - Net loss for 2023 was $56,062, compared to a net loss of $52,833 in 2022, representing an increase of approximately 4.3%[326]. Cash Flow and Liquidity - Net cash used in operating activities for the year ended December 31, 2023, was $(21.8) million, a 51% decrease from $(44.9) million in 2022[278]. - Net cash provided by financing activities increased to $2.976 million in 2023 from $(2.221) million in 2022, representing a 234% increase[280]. - Cash, cash equivalents, and restricted cash at the end of the period were $35.416 million, a 35% decrease from $54.273 million at the beginning of the period[277]. - The company anticipates total future liquidity obligations of $271.406 million, including $235.741 million for senior secured term loans and $31.880 million for interest expense payments[282]. - The company expects to fund future liquidity requirements with existing cash balances, anticipated cash generated from operating activities, and proceeds from the Amended Revolver as needed[282]. Debt and Interest Rates - The interest rate on the Company's senior secured term loans was 14.24% for the year ended December 31, 2023, compared to 7.67% for the same period in 2022[214]. - As of December 31, 2023, the interest rate on the Senior Secured Term Loans was 14.24%, including the payment-in-kind component[270]. - The maturity date of the Amended Credit Agreement is April 30, 2025, with an option to extend to April 30, 2026, contingent upon certain conditions being met[265]. - A one percentage point increase in SOFR would increase annual interest expense by approximately $2.2 million[300]. - The company made $30 million of Aggregate Paydowns during the year ended December 31, 2023, which may allow for an extension of the SSTL maturity date to April 30, 2026[282]. Assets and Liabilities - Total current assets decreased to $55,540 in 2023, down 36.5% from $87,558 in 2022[318]. - Long-term debt reduced to $215,615 in 2023, a decrease of 12.2% from $245,493 in 2022[318]. - Total liabilities decreased to $154,858 in 2023, down 20.7% from $195,268 in 2022[318]. - Cash and cash equivalents decreased to $32,522 in 2023, down 36.2% from $51,025 in 2022[318]. - The allowance for expected credit losses decreased to $3.123 million in 2023 from $4.363 million in 2022, reflecting a charge of $858,000 to expenses[372]. - Accounts payable rose to $15,275,000 in 2023 from $14,981,000 in 2022[389]. - Accrued expenses decreased to $8,637,000 in 2023 from $11,858,000 in 2022[389]. Taxation - The Company recognized an income tax provision of $3.7 million for the year ended December 31, 2023, primarily driven by income tax expense on transfer pricing income from India and the United States[214]. - The Company recognized an income tax provision of $5.3 million for the year ended December 31, 2022, driven by income tax expense on transfer pricing income from India and anticipated withholding tax on current year earnings in India[215]. - The income tax provision for 2023 was $3.7 million, down from $5.3 million in 2022, driven by various tax-related factors[232]. Business Strategy and Operations - The Company is focused on growing referrals from existing customers and attracting new customers to its offerings in the Servicer and Real Estate segment[201]. - The Company aims to grow its relationships with existing customers and develop new offerings in the Origination segment[203]. - The company noted that certain businesses are impacted by seasonality, with revenues typically lowest in fall and winter months[240]. - The Solutions business experienced a decline in service revenue due to the exit of a low-margin customer care business[239]. - The company has a concentration of revenue associated with its largest customer, Ocwen Financial Corporation, which poses various uncertainties[311].

Exhibit 99.1 | --- | --- | |---------------------------|------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | FOR IMMEDIATE RELEASE | FOR FURTHER INFORMATION CONTACT: | | | Michelle D. Esterman Chief Financial Officer T: (770) 612-7007 E: Michelle.Esterman@altisource.com | ALTISOURCE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS Luxembourg, March 7, 2024 - Altisource Portfolio Solutions S.A. ("Altisource" or th ...