Altisource Portfolio Solutions S.A.(US:ASPS)2022-07-27 16:00Financial Performance - Total revenue for Q2 2022 was $40,421, a decrease of 12% compared to $46,041 in Q2 2021[12] - Gross profit for Q2 2022 was $4,066, significantly improved from $2,004 in Q2 2021[12] - Net loss for Q2 2022 was $15,321, compared to a net loss of $18,654 in Q2 2021, indicating a reduction in losses[12] - Basic loss per share for Q2 2022 was $(0.96), an improvement from $(1.17) in Q2 2021[12] - Net loss for June 2022 was $27.35 million, a decrease from $40.57 million in June 2021, indicating an improvement in financial performance[20] - Total revenue for the six months ended June 30, 2022, was $79,937 thousand, down 17% from $96,506 thousand in the prior year[111] - Service revenue for the six months ended June 30, 2022, was $75,401 thousand, a decrease of 18% from $92,046 thousand for the same period in 2021[107] - Gross profit for the six months ended June 30, 2022, was $9.7 million, a 320% increase compared to $2.3 million for the same period in 2021[183] - Net loss attributable to Altisource for the six months ended June 30, 2022, was $(27.7) million, a 32% improvement compared to $(40.5) million for the same period in 2021[183] Assets and Liabilities - Total current assets decreased to $110,703 as of June 30, 2022, down from $138,004 as of December 31, 2021[10] - Total liabilities decreased to $224,839 as of June 30, 2022, compared to $257,808 as of December 31, 2021[10] - Total assets decreased to $224,839 as of June 30, 2022, from $257,808 as of December 31, 2021[10] - Retained earnings decreased to $145,879 as of June 30, 2022, down from $186,592 as of December 31, 2021[10] - Long-term debt increased slightly to $244,458 as of June 30, 2022, from $243,637 as of December 31, 2021[10] - Total non-current liabilities amounted to $18.764 million, a decrease from $19.266 million as of December 31, 2021[79] Cash Flow and Investments - Cash used in operating activities for June 2022 was $25.78 million, compared to $22.78 million in June 2021, reflecting increased operational costs[20] - Total cash, cash equivalents, and restricted cash at the end of June 2022 was $74.30 million, up from $40.15 million at the end of June 2021, showing improved liquidity[20] - The company had a net cash outflow from investing activities of $0.29 million in June 2022, down from a net inflow of $2.31 million in June 2021, indicating reduced investment activity[20] - Proceeds from the sale of business in June 2022 were $0.35 million, significantly lower than $3.00 million in June 2021, reflecting a decline in divestiture activities[20] Expenses - Selling, general and administrative expenses for Q2 2022 were $14,525, down from $16,556 in Q2 2021[12] - Total selling, general and administrative expenses for the three months ended June 30, 2022, were $14.525 million, a decrease of 12.3% from $16.556 million in the same period of 2021[118] - Compensation and benefits accounted for $6.296 million in the three months ended June 30, 2022, unchanged from the same period in 2021[118] - Selling, General and Administrative (SG&A) expenses for the six months ended June 30, 2022, were $28.5 million, a decrease of 20% compared to $35.4 million for the same period in 2021[194] Revenue Sources - For the six months ended June 30, 2022, revenue from Ocwen was $29.9 million, a decrease from $31.2 million for the same period in 2021, with second quarter revenue of $16.2 million compared to $14.2 million in 2021[31] - Ocwen accounted for 37% of total revenue for the six months ended June 30, 2022, and 40% for the second quarter of 2022[30] - For the six months ended June 30, 2022, revenue from NRZ was $1.8 million, slightly up from $1.7 million in 2021, with second quarter revenue of $1.0 million compared to $0.9 million in 2021[37] - The company recognized additional revenue of $5.1 million from Ocwen for the six months ended June 30, 2022, compared to $5.5 million in 2021[31] Share Repurchase and Compensation - As of June 30, 2022, approximately 2.4 million shares remain available for repurchase under the share repurchase program, with a limit of $72 million under Luxembourg law[86] - The company has a maximum limit of approximately $420 million for share repurchases under the Credit Agreement, which may restrict repurchases under certain conditions[86] - Share-based compensation expense for June 2022 was $2.58 million, an increase from $2.08 million in June 2021, indicating higher employee compensation costs[20] - Estimated unrecognized compensation costs related to share-based awards amounted to $5.4 million, expected to be recognized over a remaining service period of approximately 1.51 years[89] Segment Performance - The company has restructured its reportable segments into Servicer and Real Estate, and Origination, effective January 1, 2022, to better align with its operational management[141] - Total revenue for the Servicer and Real Estate segment was $31,947 thousand for the three months ended June 30, 2022, compared to $30,150 thousand for the same period in 2021, representing a growth of 5.95%[145] - The Origination segment experienced a 40% decrease in service revenue for the six months ended June 30, 2022, compared to the same period in 2021[183] - The Servicer and Real Estate segment saw a 4% decrease in service revenue for the six months ended June 30, 2022, compared to the same period in 2021[183] Market Conditions and Future Outlook - The company anticipates an increase in default-related referrals following the expiration of foreclosure and eviction moratoriums, which may impact future performance[154] - The company is positioned to gain market share as customers consolidate services or outsource historically in-house functions[166] - Altisource aims to grow its Lenders One membership and increase customer adoption of solutions to enhance its origination business[172] - Altisource's strategy includes diversifying its customer base and revenue streams to mitigate risks associated with reliance on key customers like Ocwen[177]