Black Knight InfoServ 8-K Lender Processing Services, Inc. Reports Third Quarter 2011 Earnings

Supplemental Materials

Lender Processing Services

Third Quarter 2011

Exhibit 99.2

This presentation contains forward-looking statements that involve a number of risks and uncertainties. 

Those forward-looking statements include all statements that are not historical facts, including statements

about our beliefs and expectations. Forward-looking statements are based on management's beliefs, as

well as assumptions made by and information currently available to management. Because such

statements are based on expectations as to future economic performance and are not statements of

historical

fact,

actual

results

may

differ

materially

from

those

projected. We undertake no obligation to

update any forward-looking statements, whether as a result of new information, future events or

otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are

not limited to: our ability to adapt our services to changes in technology or the marketplace; the impact of

adverse changes in the level of real estate activity (including among others, loan originations and

foreclosures)

on

demand

for

certain

of

our

services;

our

ability

to maintain and grow our relationships with

our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our

business; the level of scrutiny being placed on participants in the foreclosure process; risks associated

with federal and state inquiries and examinations currently underway or that may be commenced in the

future with respect to our default management operations, and with civil litigation related to these matters;

changes to the laws, rules and regulations that regulate our businesses as a result of the current

economic

and

financial

environment;

changes

in

general

economic,

business and political conditions,

including changes in the financial markets; the impact of any potential defects, development delays,

installation difficulties or system failures on our business and

reputation; risks associated with protecting

information security and privacy; and other risks and uncertainties detailed in the “Statement Regarding

Forward-Looking Information,”

“Risk Factors”

and other sections of the Company’s Form 10-K, the

Company’s subsequent reports on Form 10-Q and other filings with the Securities and Exchange

Commission.

Forward-Looking

Statements

2

Generally Accepted Accounting Principles (GAAP) is the term used

to refer to the standard framework of

guidelines for financial accounting.  GAAP includes the standards, conventions, and rules accountants

follow in recording and summarizing transactions, and in the preparation of financial statements.  In

addition to reporting financial results in accordance with GAAP,

LPS reports several non-GAAP measures,

including “EBIT, as adjusted”

(GAAP operating income adjusted for the impact of certain non-recurring

adjustments, if applicable), “adjusted net earnings”

(GAAP net earnings adjusted for the impact of certain

non-recurring adjustments, if applicable, plus the after-tax purchase price amortization of intangible assets

added

through

acquisitions),

“adjusted

net

earnings

per

diluted

share”

(adjusted net earnings divided by

diluted weighted average shares), and “adjusted free cash flow”

(net cash provided by operating activities

less additions to property, equipment and computer software, as well as non-recurring adjustments, if

applicable).

LPS provides these measures because it believes that they are helpful to investors in

comparing year-over-year performance in light of certain non-recurring charges, and to better understand

our financial performance, competitive position and future prospects.  Non-GAAP measures should be

considered in conjunction with the GAAP financial presentation and should not be considered in isolation or

as a substitute for GAAP net earnings.  A reconciliation of these non-GAAP measures to related GAAP

measures is included in the 3Q11 earnings release.

Use of Non-GAAP Measures

3

•

Revenues decreased 13.8% year-over-year primarily driven by a 

continued slow down in foreclosure and origination activity,

partially offset by 3.1% growth in TD&A

•

Adjusted EBIT margin of 16.9% in 3Q11 (vs. 23.5% in 3Q10 and

16.8% in 2Q11)

•

Adjusted net earnings of $49 million

•

Adjusted net earnings per diluted share of 59 cents

•

Adjusted free cash flow of $77 million

•

Successfully completed refinancing of senior credit facilities to

improve financial flexibility, enhance liquidity and provide for

attractive long-term cost of capital

•

No share or public bond repurchases during the quarter

Third

Quarter

2011

Key

Statistics

4

Consolidated

Earnings

($ in millions, except per share data)

3Q11

3Q10

% Growth

vs PY

Net Earnings

40.5

$     

78.7

$     

-48.6%

Less non-recurring charges, net of tax

6.5

-

Net Earnings, excluding non-recurring charges

46.9

78.7

-40.4%

Purchase Price Amortization, net of tax

2.5

3.5

Adjusted Net Earnings

49.4

$     

82.2

$     

-39.9%

Adjusted Net Earnings per Diluted Share

0.59

$     

0.89

$     

-33.7%

Note: columns may not total due to rounding.

Quarter ended

5

Segment Revenue

($ in millions)

3Q11

% Growth

vs PY

% Growth

vs PQ

Technology, Data and Analytics:

Mortgage Processing

106.4

$    

3.9%

3.5%

Other TD&A

87.4

2.2%

-0.8%

Total

193.7

3.1%

1.5%

Loan Transaction Services:

Loan Facilitation Services

141.1

-14.7%

24.5%

Default Services

199.1

-25.0%

-5.4%

Total

340.2

-21.1%

5.1%

Corporate and Other

(1.8)

nm

nm

Total Revenue

532.1

$    

-13.8%

3.7%

Note: columns may not total due to rounding.

6

Segment EBIT

($ in millions)

$

Margin %

% Var

bps Var

% Var

bps Var

Technology, Data and Analytics

62.6

$         

32.3%

-8.3%

(401)

6.4%

150

Loan Transaction Services

61.2

18.0%

-36.7%

(444)

3.9%

(21)

Corporate and Other

(34.0)

nm

nm

nm

nm

nm

Total EBIT

89.8

$         

16.9%

-38.1%

(664)

4.4%

11

EBIT excluding Corporate

123.8

$        

23.2%

-24.9%

(347)

5.2%

31

Note: columns may not total due to rounding.

% Growth vs PQ

3Q11

% Growth vs PY

7

Free Cash Flow

($ in millions)

1Q11

2Q11

3Q11

YTD11

Net Earnings

55.9

$       

21.4

$       

40.5

$       

117.7

$     

Less cash related non-recurring charge, net of tax

4.2

5.2

2.1

11.5

Net earnings, as adjusted

60.1

26.6

42.6

129.2

Adjustments to reconcile net earnings to net cash

provided by operating activities:

Depreciation and amortization

24.9

24.6

24.3

73.8

Other non-cash items

20.1

36.7

26.2

83.0

Working capital adjustments:

Net change in accounts receivable

33.7

19.7

10.9

64.3

Net change in other working capital items

(14.2)

4.1

0.9

(9.2)

Net cash provided by operating activities

124.6

111.7

104.8

341.1

Capital expenditures

(23.3)

(29.9)

(28.2)

(81.5)

Adjusted Net Free Cash Flow

101.3

$     

81.8

$       

76.6

$       

259.6

$     

Note: columns may not total due to rounding.

8

Guidance Update

Revenue

$510m - $520m

Adjusted EPS

$0.57 - $0.59

Adjusted Free Cash Flow

$60m - $70m

Q4 2011 Guidance

9