Ocwen Financial (OCN) - 2024 Q1 - Quarterly Results

Financial Performance - Ocwen reported GAAP net income of $30 million for Q1 2024, with diluted earnings per share of $3.74 and an annualized return on equity of 29%[5] - Reported net income for Q1'24 was $30 million, a significant improvement from a net loss of $40 million in Q1'23[20] - Total revenue for Q1'24 decreased to $239.1 million, down 8.7% from $261.8 million in Q1'23[20] - Adjusted pre-tax income for Q1'24 was $14 million, representing an increase from $6 million in Q1'23[18] - Basic EPS for Q1'24 was $3.91, a recovery from a loss of $5.34 in Q1'23[20] Operational Efficiency - Adjusted pre-tax income for the quarter was $14 million, driven primarily by the servicing segment, achieving a 13.8% annualized adjusted pre-tax return on equity[5] - Legacy MSR servicing advances were reduced by 14% compared to March 31, 2023, demonstrating operational efficiency[6] Debt and Liquidity Management - The company reduced corporate debt by $47 million, contributing to its deleveraging objectives[3] - The company reported total liquidity of $219 million as of March 31, 2024, and reduced GAAP operating expenses by $9.7 million, or 8.5%, from Q1 2023[6] - Cash and cash equivalents decreased to $185.1 million from $216.6 million in Q1'23[19] Asset and Liability Overview - Total assets increased to $13,090.1 million as of March 31, 2024, compared to $12,627.0 million a year earlier[19] - Total liabilities rose to $12,658.0 million as of March 31, 2024, up from $12,210.7 million in Q1'23[19] Market Position and Future Plans - Total servicing additions reached $23 billion, including $19 billion in subservicing additions, with total ending servicing UPB of $302 billion, up 5% from the previous quarter[6] - Ocwen plans to rebrand to Onity Group Inc. and will begin trading under the stock symbol "ONIT" in June 2024, pending shareholder approval[6] - Moody's upgraded Ocwen's corporate family rating to B3 in April 2024, reflecting improved financial stability[5] - The mix of higher margin products increased to 41% of owned MSR originations compared to 31% in Q1 2023[6] - Book value per share increased to $56 as of March 31, 2024, indicating growth in shareholder value[6] Gains and Notable Items - The company reported a gain on loans held for sale of $10.9 million, significantly up from $2.8 million in Q1'23[20] - The equity impact of notable items was $(18) million in Q1'24, compared to $44 million in Q1'23[18]