Altisource Portfolio Solutions S.A.(US:ASPS)2024-03-06 16:00Revenue 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].