Exhibit 99.1
Press Release
Investors: Media:
Nancy Murphy Michelle Kersch
(904) 854-8640 (904) 854-5043
nancy.murphy@lpsvcs.com michelle.kersch@lpsvcs.com
Lender Processing Services Reports First Quarter 2012 Earnings
Adjusted EPS of $0.59 and free cash flow of $68.7 million
JACKSONVILLE, Fla. - May 3, 2012 - Lender Processing Services, Inc. (NYSE:LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced financial results for the first quarter 2012.
Highlights
| |
| • | GAAP net earnings of $47.1 million or $0.56 per diluted share |
| |
| • | Adjusted net earnings of $49.5 million or $0.59 per diluted share reflecting the add back of purchase amortization |
| |
| • | Adjusted free cash flow of $68.7 million |
| |
| • | Signed 2 new MSP Servicing Technology customers |
“LPS is off to a positive start in 2012. We delivered results that exceeded our outlook, continued to expand key customer relationships by delivering outstanding technology and service solutions, and moved forward with our commitment to operational excellence,” said Hugh Harris, president and chief executive officer of LPS. “We will continue to leverage and invest in our comprehensive technology solutions to help our customers address evolving servicing and regulatory standards and position LPS for long-term growth.”
“Although the operating environment remained challenging, we generated strong profitability, margins and cash flow,” commented Tom Schilling, chief financial officer. “Our Technology, Data and Analytics segment had another solid quarter of revenue growth and our Origination Services benefited from strong refinance volumes, while Default Services continued to be negatively affected by industry-wide foreclosure delays.”
Consolidated First Quarter Performance
First quarter 2012 revenue was $506.0 million, a decrease of 5.8% from the same period in the prior year due to a decline in Default Services revenue. Adjusted operating income was $94.3 million compared to $129.7 million in the first quarter 2011, while GAAP operating income was $94.3 million compared to $110.4 million in the first quarter of 2011. Adjusted net earnings were $49.5 million, or $0.59 per diluted share, compared to $71.1 million, or $0.81 per diluted share, in the first quarter 2011. Adjusted net earnings includes a purchase price amortization add-back of $0.03 per share in the current quarter and $0.04 per diluted share in the first quarter 2011. In addition, first quarter 2011 adjusted net earnings exclude a charge of $0.14 per diluted share related to cost reduction initiatives.
Net cash provided by operating activities was $90.1 million compared to $120.4 million in the first quarter of 2011. Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) was $68.7 million in the first quarter of 2012 compared to $101.3 million in the same period last year. During the quarter, the company reduced debt by $17.3 million, paid regular dividends of $8.4 million and ended the first quarter with cash of $103.7 million, up $26.4 million from the prior quarter.
Technology, Data and Analytics Segment
Revenue for the Technology, Data and Analytics segment was $178.1 million, a 5.7% increase from first quarter 2011. Servicing Technology (MSP) revenue was $108.4 million, a 4.9% increase; Origination Technology revenue was $21.4 million, a 13.7% increase; Default Technology revenue was $31.6 million, an 8.3% increase; and Data and Analytics revenue was $16.9 million, a 2.6% decrease. Operating income was $54.0 million, a decrease of 4.7% from first quarter 2011, primarily as a result of lower income from Origination Technology driven by higher expenses related to growth initiatives, partially offset by higher income from Servicing Technology.
Transaction Services Segment
Revenue for the Transaction Services segment was $329.6 million, a decrease of 10.9% from first quarter 2011. Origination Services revenue was $146.8 million, a 13.8% increase from the first quarter of 2011 as a result of a higher refinance origination volumes. Default Services revenue was $182.9 million, a 24.2% decrease from the first quarter 2011, primarily due to the continued slowdown in the initiation of industry-wide mortgage foreclosure proceedings. Operating income for the segment was $51.5 million, a decrease of 38.8% from the same period in the prior year, primarily due to lower income from the Default Services business.
Corporate and Other
Adjusted net corporate expenses in the first quarter of 2012 were $11.1 million compared to $11.0 million in the prior year quarter.
Outlook
Based on the current environment, the company expects second quarter 2012 revenue to be in the range of $500 million to $520 million and adjusted net earnings per diluted share to be in the range of
$0.58 to $0.62.
Financial Reporting Reclassification
The company made minor reclassification adjustments to its financial reporting structure effective in the first quarter 2012. The reclassifications resulted in the transfer of revenue, expenses and operating income between reporting segments; the allocation of certain corporate costs into the segments; and a change in the cost and expense presentation in the consolidated statement of earnings. All prior periods included in this release and related financial statement exhibits have been reclassified to conform to the current period presentation. The reclassifications do not impact previously reported consolidated revenues, operating income, net earnings or earnings per share of LPS.
Earnings Conference Call and Webcast
LPS will host a conference call today at 10:00 a.m. ET with a live webcast on the Investor Relations section of its website at www.lpsvcs.com. Earnings information including this press release and supplemental material is available on the website. A replay of the webcast will be available on the website shortly after the call where it will be archived for one month. A replay of the call will be available until May 10, 2012, by dialing 888-203-1112 (access code: 2865489).
About Lender Processing Services
Lender Processing Services (NYSE: LPS) delivers comprehensive technology solutions and services, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers and investors. As a proven and trusted partner with deep client relationships, LPS offers the only end-to-end suite of solutions that provides major U.S. banks and many federal government agencies the technology and data needed to support mortgage lending and servicing operations, meet unique regulatory and compliance requirements and mitigate risk.
These integrated solutions support origination, servicing, portfolio retention and default servicing. LPS' servicing solutions include MSP, the industry's leading loan-servicing platform which is used to service approximately 50 percent of all U.S. mortgages by dollar volume. The company also provides proprietary data and analytics for the mortgage, real estate and capital markets industries.
LPS is headquartered in Jacksonville, Fla., and employs approximately 8,000 professionals. For more information please visit www.lpsvcs.com.
Use of Non-GAAP Financial Information
U.S. 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 “EBITDA” (GAAP operating income plus depreciation and amortization); “EBITDA, as adjusted” (EBITDA adjusted for the impact of certain non-recurring adjustments, if applicable); “EBIT, as adjusted” or “adjusted operating income” (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” or “adjusted EPS 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 and other 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 measures. A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.
Forward-Looking Statements
This press release 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 enforcement proceedings, 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; the impact of continued delays in the foreclosure process on the timing and collectability of our fees for certain of our services; 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 and other filings with the Securities and Exchange Commission.
###
Exhibit A
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)
|
| | | | | | | | |
| | Three months ended March 31, | |
| | 2012 | | 2011 | |
| | (In thousands, except per share data) |
| Revenues | $ | 506,021 |
| | $ | 537,183 |
| |
| Expenses: | | | | |
| Operating expenses | 387,476 |
| | 384,478 |
| |
| Depreciation and amortization | 24,244 |
| | 22,996 |
| |
| Exit costs, impairments and other charges | — |
| | 19,311 |
| |
| Total expenses | 411,720 |
| | 426,785 |
| |
| Operating income | 94,301 |
| | 110,398 |
| |
| Other income (expense): | | | | |
| Interest income | 448 |
| | 326 |
| |
| Interest expense | (16,402 | ) | | (14,156 | ) | |
| Other income, net | 85 |
| | 14 |
| |
| Total other income (expense) | (15,869 | ) | | (13,816 | ) | |
| Earnings from continuing operations before income taxes | 78,432 |
| | 96,582 |
| |
| Provision for income taxes | 29,255 |
| | 36,702 |
| |
| Net earnings from continuing operations | 49,177 |
| | 59,880 |
| |
| Loss from discontinued operations, net of tax | (2,056 | ) | | (3,951 | ) | |
| Net earnings | $ | 47,121 |
| | $ | 55,929 |
| |
| | | | | |
| Net earnings per share - diluted from continuing operations | $ | 0.58 |
| | $ | 0.67 |
| |
| Net loss per share - diluted from discontinued operations | (0.02 | ) | | (0.04 | ) | |
| Net earnings per share - diluted | $ | 0.56 |
| | $ | 0.63 |
| |
| Weighted average shares outstanding - diluted | 84,567 |
| | 88,134 |
| |
Exhibit B
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited) |
| | | | | | | |
| | March 31,
2012 | | December 31,
2011 |
| | (In thousands) |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 103,728 |
| | $ | 77,355 |
|
| Trade receivables, net of allowance for doubtful accounts | 328,219 |
| | 345,048 |
|
| Other receivables | 3,487 |
| | 1,423 |
|
| Prepaid expenses and other current assets | 33,690 |
| | 33,004 |
|
| Deferred income taxes, net | 74,088 |
| | 74,006 |
|
| Total current assets | 543,212 |
| | 530,836 |
|
| | | | |
| Property and equipment, net | 119,436 |
| | 121,245 |
|
| Computer software, net | 228,021 |
| | 228,882 |
|
| Other intangible assets, net | 35,255 |
| | 39,140 |
|
| Goodwill | 1,125,604 |
| | 1,132,828 |
|
| Other non-current assets | 208,370 |
| | 192,484 |
|
| Total assets | $ | 2,259,898 |
| | $ | 2,245,415 |
|
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| Current liabilities: | | | |
| Current portion of long-term debt | $ | 29,311 |
| | $ | 39,310 |
|
| Trade accounts payable | 44,297 |
| | 43,105 |
|
| Accrued salaries and benefits | 60,085 |
| | 64,383 |
|
| Other accrued liabilities | 243,539 |
| | 247,110 |
|
| Deferred revenues | 58,911 |
| | 64,078 |
|
| Total current liabilities | 436,143 |
| | 457,986 |
|
| | | | |
| Deferred revenues | 24,871 |
| | 34,737 |
|
| Deferred income taxes, net | 133,715 |
| | 122,755 |
|
| Long-term debt, net of current portion | 1,102,522 |
| | 1,109,850 |
|
| Other non-current liabilities | 32,083 |
| | 32,099 |
|
| Total liabilities | 1,729,334 |
| | 1,757,427 |
|
| | | | |
| Stockholders' equity: | | | |
| Preferred stock $0.0001 par value; 50 million shares authorized, none issued at March 31, 2012 and December 31, 2011 | — |
| | — |
|
| Common stock $0.0001 par value; 500 million shares authorized, 97.4 million shares issued at March 31, 2012 and December 31, 2011 | 10 |
| | 10 |
|
| Additional paid-in capital | 252,758 |
| | 250,533 |
|
| Retained earnings | 696,719 |
| | 658,146 |
|
| Accumulated other comprehensive loss | (2,040 | ) | | (1,783 | ) |
| Treasury stock at cost; 12.9 million and 13.0 million shares at March 31, 2012 and December 31, 2011, respectively | (416,883 | ) | | (418,918 | ) |
| Total stockholders' equity | 530,564 |
| | 487,988 |
|
| Total liabilities and stockholders' equity | $ | 2,259,898 |
| | $ | 2,245,415 |
|
Exhibit C
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
| | | | | | | |
| | Three months ended March 31, |
| | 2012 | | 2011 |
| | (In thousands) |
| Cash flows from operating activities: | | | |
| Net earnings | $ | 47,121 |
| | $ | 55,929 |
|
| Adjustments to reconcile net earnings to net cash provided by operating activities: | | | |
| Depreciation and amortization | 24,902 |
| | 24,868 |
|
| Amortization of debt issuance costs | 1,117 |
| | 1,167 |
|
| Asset impairment charges | 2,842 |
| | — |
|
| Gain on sale of discontinued operation | (8,064 | ) | | — |
|
| Deferred income taxes, net | 11,036 |
| | 8,428 |
|
| Stock-based compensation cost | 5,257 |
| | 10,628 |
|
| Income tax effect of equity compensation | 342 |
| | (112 | ) |
| Changes in assets and liabilities, net of effects of acquisitions: | | | |
| Trade receivables | 12,700 |
| | 33,734 |
|
| Other receivables | (2,159 | ) | | 1,087 |
|
| Prepaid expenses and other assets | (8,853 | ) | | (3,031 | ) |
| Deferred revenues | 8,965 |
| | (1,900 | ) |
| Accounts payable, accrued liabilities and other liabilities | (5,155 | ) | | (10,358 | ) |
| Net cash provided by operating activities | 90,051 |
| | 120,440 |
|
| | | | |
| Cash flows from investing activities: | | | |
| Additions to property and equipment | (6,595 | ) | | (7,060 | ) |
| Additions to capitalized software | (17,124 | ) | | (16,261 | ) |
| Purchases of investments, net of proceeds from sales | (5,763 | ) | | (3,732 | ) |
| Acquisition of title plants and property records data | (11,821 | ) | | (2,425 | ) |
| Acquisitions, net of cash acquired | — |
| | (9,802 | ) |
| Proceeds from sale of discontinued operations, net of cash distributed | 6,398 |
| | — |
|
| Net cash used in investing activities | (34,905 | ) | | (39,280 | ) |
| | | | |
| Cash flows from financing activities: | | | |
| Debt service payments | (17,327 | ) | | (36,288 | ) |
| Exercise of stock options and restricted stock vesting | (655 | ) | | 239 |
|
| Income tax effect of equity compensation | (342 | ) | | 112 |
|
| Dividends paid | (8,449 | ) | | (8,784 | ) |
| Treasury stock repurchases | — |
| | (83,882 | ) |
| Payment of contingent consideration related to acquisitions | (2,000 | ) | | — |
|
| Net cash used in financing activities | (28,773 | ) | | (128,603 | ) |
| Net increase (decrease) in cash and cash equivalents | 26,373 |
| | (47,443 | ) |
| Cash and cash equivalents, beginning of period | 77,355 |
| | 52,287 |
|
| Cash and cash equivalents, end of period | $ | 103,728 |
| | $ | 4,844 |
|
| | | | |
| Supplemental disclosures of cash flow information: | | | |
| Cash paid for interest | $ | 20,830 |
| | $ | 20,897 |
|
| Cash paid for taxes | $ | 4,053 |
| | $ | 4,713 |
|
Exhibit D
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(In thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | QUARTER (1) | | QUARTER (1) | | YEAR ENDED (1) |
| | | Q1-2012 | | Q1-2011 | | Q1-2012 | | Q4-2011 | | Q3-2011 | | Q2-2011 | | Q1-2011 | | 12/31/2011 |
| 1. | Operating Results - Continuing Operations | | | | | | | | | | | | | | | |
| | Consolidated | | | | | | | | | | | | | | | |
| | Revenues | $ | 506,021 |
| | $ | 537,183 |
| | $ | 506,021 |
| | $ | 533,832 |
| | $ | 519,437 |
| | $ | 499,660 |
| | $ | 537,183 |
| | $ | 2,090,112 |
|
| | Operating Income, as reported | 94,301 |
| | 110,398 |
| | 94,301 |
| | 4,926 |
| | 94,192 |
| | 80,666 |
| | 110,398 |
| | 290,182 |
|
| | Adjustments: | | | | | | | | | | | | | | | |
| | Legal and Regulatory Charge (2) | — |
| | — |
| | — |
| | 78,484 |
| | — |
| | — |
| | — |
| | 78,484 |
|
| | Exit costs, Impairments and Other Charges (3) | — |
| | 19,311 |
| | — |
| | 27,714 |
| | — |
| | 9,887 |
| | 19,311 |
| | 56,912 |
|
| | Operating Income, as adjusted | 94,301 |
| | 129,709 |
| | 94,301 |
| | 111,124 |
| | 94,192 |
| | 90,553 |
| | 129,709 |
| | 425,578 |
|
| | Depreciation and Amortization | 24,244 |
| | 22,996 |
| | 24,244 |
| | 23,931 |
| | 20,822 |
| | 22,627 |
| | 22,996 |
| | 90,376 |
|
| | EBITDA, as adjusted | $ | 118,545 |
| | $ | 152,705 |
| | $ | 118,545 |
| | $ | 135,055 |
| | $ | 115,014 |
| | $ | 113,180 |
| | $ | 152,705 |
| | $ | 515,954 |
|
| | Operating Margin, as adjusted | 18.6 | % | | 24.1 | % | | 18.6 | % | | 20.8 | % | | 18.1 | % | | 18.1 | % | | 24.1 | % | | 20.4 | % |
| | EBITDA Margin, as adjusted | 23.4 | % | | 28.4 | % | | 23.4 | % | | 25.3 | % | | 22.1 | % | | 22.7 | % | | 28.4 | % | | 24.7 | % |
| | Technology, Data and Analytics | | | | | | | | | | | | | | | |
| | Revenues | $ | 178,143 |
| | $ | 168,548 |
| | $ | 178,143 |
| | $ | 178,271 |
| | $ | 173,138 |
| | $ | 170,573 |
| | $ | 168,548 |
| | $ | 690,530 |
|
| | Operating Income, as reported | 53,966 |
| | 54,322 |
| | 53,966 |
| | 51,341 |
| | 58,715 |
| | 49,526 |
| | 54,322 |
| | 213,904 |
|
| | Adjustments: | | | | | | | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (3) | — |
| | 2,302 |
| | — |
| | 7,971 |
| | — |
| | 6,585 |
| | 2,302 |
| | 16,858 |
|
| | Operating Income, as adjusted | 53,966 |
| | 56,624 |
| | 53,966 |
| | 59,312 |
| | 58,715 |
| | 56,111 |
| | 56,624 |
| | 230,762 |
|
| | Depreciation and Amortization | 18,584 |
| | 17,233 |
| | 18,584 |
| | 18,105 |
| | 15,120 |
| | 16,881 |
| | 17,233 |
| | 67,339 |
|
| | EBITDA, as adjusted | $ | 72,550 |
| | $ | 73,857 |
| | $ | 72,550 |
| | $ | 77,417 |
| | $ | 73,835 |
| | $ | 72,992 |
| | $ | 73,857 |
| | $ | 298,101 |
|
| | Operating Margin, as adjusted | 30.3 | % | | 33.6 | % | | 30.3 | % | | 33.3 | % | | 33.9 | % | | 32.9 | % | | 33.6 | % | | 33.4 | % |
| | EBITDA Margin, as adjusted | 40.7 | % | | 43.8 | % | | 40.7 | % | | 43.4 | % | | 42.6 | % | | 42.8 | % | | 43.8 | % | | 43.2 | % |
| | Transaction Services | | | | | | | | | | | | | | | |
| | Revenues | $ | 329,612 |
| | $ | 370,105 |
| | $ | 329,612 |
| | $ | 356,853 |
| | $ | 348,095 |
| | $ | 330,600 |
| | $ | 370,105 |
| | $ | 1,405,653 |
|
| | Operating Income, as reported | 51,454 |
| | 81,133 |
| | 51,454 |
| | 70,752 |
| | 55,824 |
| | 52,610 |
| | 81,133 |
| | 260,319 |
|
| | Adjustments: | | | | | | | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (3) | — |
| | 2,978 |
| | — |
| | (236 | ) | | — |
| | 1,074 |
| | 2,978 |
| | 3,816 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Operating Income, as adjusted | 51,454 |
| | 84,111 |
| | 51,454 |
| | 70,516 |
| | 55,824 |
| | 53,684 |
| | 84,111 |
| | 264,135 |
|
| | Depreciation and Amortization | 4,692 |
| | 4,608 |
| | 4,692 |
| | 4,850 |
| | 4,726 |
| | 4,650 |
| | 4,608 |
| | 18,834 |
|
| | EBITDA, as adjusted | $ | 56,146 |
| | $ | 88,719 |
| | $ | 56,146 |
| | $ | 75,366 |
| | $ | 60,550 |
| | $ | 58,334 |
| | $ | 88,719 |
| | $ | 282,969 |
|
| | Operating Margin, as adjusted | 15.6 | % | | 22.7 | % | | 15.6 | % | | 19.8 | % | | 16.0 | % | | 16.2 | % | | 22.7 | % | | 18.8 | % |
| | EBITDA Margin, as adjusted | 17.0 | % | | 24.0 | % | | 17.0 | % | | 21.1 | % | | 17.4 | % | | 17.6 | % | | 24.0 | % | | 20.1 | % |
| | Corporate and Other | | | | | | | | | | | | | | | |
| | Revenues | $ | (1,734 | ) | | $ | (1,470 | ) | | $ | (1,734 | ) | | $ | (1,292 | ) | | $ | (1,796 | ) | | $ | (1,513 | ) | | $ | (1,470 | ) | | $ | (6,071 | ) |
| | Operating Loss, as reported | (11,119 | ) | | (25,057 | ) | | (11,119 | ) | | (117,167 | ) | | (20,347 | ) | | (21,470 | ) | | (25,057 | ) | | (184,041 | ) |
| | Adjustments: | | | | | | | | | | | | | | | |
| | Legal and Regulatory Charge (2) | — |
| | — |
| | — |
| | 78,484 |
| | — |
| | — |
| | — |
| | 78,484 |
|
| | Exit costs, Impairments and Other Charges (3) | — |
| | 14,031 |
| | — |
| | 19,979 |
| | — |
| | 2,228 |
| | 14,031 |
| | 36,238 |
|
| | Operating Loss, as adjusted | (11,119 | ) | | (11,026 | ) | | (11,119 | ) | | (18,704 | ) | | (20,347 | ) | | (19,242 | ) | | (11,026 | ) | | (69,319 | ) |
| | Depreciation and Amortization | 968 |
| | 1,155 |
| | 968 |
| | 976 |
| | 976 |
| | 1,096 |
| | 1,155 |
| | 4,203 |
|
| | EBITDA, as adjusted | $ | (10,151 | ) | | $ | (9,871 | ) | | $ | (10,151 | ) | | $ | (17,728 | ) | | $ | (19,371 | ) | | $ | (18,146 | ) | | $ | (9,871 | ) | | $ | (65,116 | ) |
| 2. | Net Earnings - Reconciliation | | | | | | | | | | | | | | | |
| | Net Earnings (Loss) | $ | 47,121 |
| | $ | 55,929 |
| | $ | 47,121 |
| | $ | (21,201 | ) | | $ | 40,450 |
| | $ | 21,365 |
| | $ | 55,929 |
| | $ | 96,543 |
|
| | Adjustments - Continuing Operations: | | | | | | | | | | | | | | | |
| | Legal and Regulatory Charge (2) | — |
| | — |
| | — |
| | 53,086 |
| | — |
| | — |
| | — |
| | 53,086 |
|
| | Exit costs, Impairments and Other Charges (3) | — |
| | 11,973 |
| | — |
| | 16,822 |
| | — |
| | 6,204 |
| | 11,973 |
| | 34,999 |
|
| | Total Adjustments to Continuing Operations | — |
| | 11,973 |
| | — |
| | 69,908 |
| | — |
| | 6,204 |
| | 11,973 |
| | 88,085 |
|
| | Adjustments - Discontinued Operations: | | | | | | | | | | | | | | | |
| | Impairment and Restructuring Charges, net | — |
| | 38 |
| | — |
| | 16,454 |
| | — |
| | 17,759 |
| | 38 |
| | 34,251 |
|
| | (Gain)/Loss on Disposal of Operations, net | — |
| | — |
| | — |
| | (928 | ) | | 1,486 |
| | — |
| | — |
| | 558 |
|
| | Total Adjustments to Discontinued Operations | — |
| | 38 |
| | — |
| | 15,526 |
| | 1,486 |
| | 17,759 |
| | 38 |
| | 34,809 |
|
| | Adjustments - Non-operating: | | | | | | | | | | | | | | | |
| | Write-off of Debt Issuance Costs, net (4) | — |
| | — |
| | — |
| | — |
| | 4,978 |
| | — |
| | — |
| | 4,978 |
|
| | Prior Year Tax Benefit | — |
| | — |
| | — |
| | (6,458 | ) | | — |
| | — |
| | — |
| | (6,458 | ) |
| | Total Non-operating Adjustments | — |
| | — |
| | — |
| | (6,458 | ) | | 4,978 |
| | — |
| | — |
| | (1,480 | ) |
| | Net Earnings, as adjusted | 47,121 |
| | 67,940 |
| | 47,121 |
| | 57,775 |
| | 46,914 |
| | 45,328 |
| | 67,940 |
| | 217,957 |
|
| | Purchase Price Amortization, net (5) | 2,421 |
| | 3,128 |
| | 2,421 |
| | 2,655 |
| | 2,495 |
| | 2,674 |
| | 3,128 |
| | 10,952 |
|
| | Adjusted Net Earnings | $ | 49,542 |
| | $ | 71,068 |
| | $ | 49,542 |
| | $ | 60,430 |
| | $ | 49,409 |
| | $ | 48,002 |
| | $ | 71,068 |
| | $ | 228,909 |
|
| | Adjusted Net Earnings Per Diluted Share | $ | 0.59 |
| | $ | 0.81 |
| | $ | 0.59 |
| | $ | 0.72 |
| | $ | 0.59 |
| | $ | 0.56 |
| | $ | 0.81 |
| | $ | 2.68 |
|
| | Diluted Weighted Average Shares | 84,567 |
| | 88,134 |
| | 84,567 |
| | 84,430 |
| | 84,415 |
| | 85,812 |
| | 88,134 |
| | 85,685 |
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 3. | Cash Flow - Reconciliation | | | | | | | | | | | | | | | |
| | Cash Flows from Operating Activities: | | | | | | | | | | | | | | | |
| | Net Earnings (Loss) | $ | 47,121 |
| | $ | 55,929 |
| | $ | 47,121 |
| | $ | (21,201 | ) | | $ | 40,450 |
| | $ | 21,365 |
| | $ | 55,929 |
| | $ | 96,543 |
|
| | Adjustments: | | | | | | | | | | | | | | | |
| | Cash Related Restructuring Costs, net | 2,353 |
| | 4,152 |
| | 2,353 |
| | (3,302 | ) | | 2,107 |
| | 5,220 |
| | 4,152 |
| | 8,177 |
|
| | Net Earnings (Loss), as adjusted | 49,474 |
| | 60,081 |
| | 49,474 |
| | (24,503 | ) | | 42,557 |
| | 26,585 |
| | 60,081 |
| | 104,720 |
|
| | Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | | | | | | | |
| | Non-cash adjustments | 37,432 |
| | 44,979 |
| | 37,432 |
| | 62,763 |
| | 50,508 |
| | 61,260 |
| | 44,979 |
| | 219,510 |
|
| | Working capital adjustments | 5,498 |
| | 19,532 |
| | 5,498 |
| | 106,696 |
| | 11,756 |
| | 23,822 |
| | 19,532 |
| | 161,806 |
|
| | Net cash provided by operating activities | 92,404 |
| | 124,592 |
| | 92,404 |
| | 144,956 |
| | 104,821 |
| | 111,667 |
| | 124,592 |
| | 486,036 |
|
| | Capital expenditures included in investing activities | (23,719 | ) | | (23,321 | ) | | (23,719 | ) | | (23,408 | ) | | (28,243 | ) | | (29,907 | ) | | (23,321 | ) | | (104,879 | ) |
| | Adjusted Net Free Cash Flow | $ | 68,685 |
| | $ | 101,271 |
| | $ | 68,685 |
| | $ | 121,548 |
| | $ | 76,578 |
| | $ | 81,760 |
| | $ | 101,271 |
| | $ | 381,157 |
|
| 4. | Discontinued Operations - Reconciliation | | | | | | | | | | | | | | | |
| | Net Loss, as reported | $ | (2,056 | ) | | $ | (3,951 | ) | | $ | (2,056 | ) | | $ | (17,017 | ) | | $ | (4,194 | ) | | $ | (21,101 | ) | | $ | (3,951 | ) | | $ | (46,263 | ) |
| | Adjustments: | | | | | | | | | | | | | | | |
| | Exit Costs, Impairments and Other Charges, net (6) | — |
| | 38 |
| | — |
| | 16,454 |
| | — |
| | 17,759 |
| | 38 |
| | 34,251 |
|
| | (Gain)/Loss on Disposal of Operations, net (7) | — |
| | — |
| | — |
| | (928 | ) | | 1,486 |
| | — |
| | — |
| | 558 |
|
| | Net Loss, as adjusted | (2,056 | ) | | (3,913 | ) | | (2,056 | ) | | (1,491 | ) | | (2,708 | ) | | (3,342 | ) | | (3,913 | ) | | (11,454 | ) |
| | Purchase Price Amortization, net | 114 |
| | 262 |
| | 114 |
| | 201 |
| | 122 |
| | 272 |
| | 262 |
| | 857 |
|
| | Adjusted Net Loss | $ | (1,942 | ) | | $ | (3,651 | ) | | $ | (1,942 | ) | | $ | (1,290 | ) | | $ | (2,586 | ) | | $ | (3,070 | ) | | $ | (3,651 | ) | | $ | (10,597 | ) |
| | Adjusted Net Loss Per Diluted Share | $ | (0.02 | ) | | $ | (0.04 | ) | | $ | (0.02 | ) | | $ | (0.02 | ) | | $ | (0.03 | ) | | $ | (0.04 | ) | | $ | (0.04 | ) | | $ | (0.13 | ) |
| | Diluted Weighted Average Shares | 84,567 |
| | 88,134 |
| | 84,567 |
| | 84,430 |
| | 84,415 |
| | 85,812 |
| | 88,134 |
| | 85,685 |
|
Notes:
(1) 2011 revenues and operating income have been reclassified to conform to the current year presentation.
(2) During 2011, we recognized a pre-tax legal and regulatory contingency accrual of $78.5 million ($53.1 million after tax) for estimated settlement and third-party legal expenses related to various ongoing legal and regulatory matters.
(3) Includes the impact of various severance, asset impairment and restructuring charges. Severance charges reflect the departure of certain executives including our former chief executive officer, co-chief operating officer and chief financial officer, as well as the impact of other personnel restructuring programs. In connection with these initiatives, during 2011, we recorded severance charges, including equity acceleration, of $33.4 million ($20.6 million net of tax). Asset impairment and restructuring charges, which totaled $23.5 million during 2011 ($14.4 million net of tax) primarily reflects the write-down of various assets as well as provisions for operating lease impairments.
(4) During 2011, we recorded a charge totaling $8.0 million ($5.0 million net of tax) related to the write-off of certain debt issuance costs in connection with the refinancing of our senior credit facilities.
(5) Purchase price amortization, net represents the periodic amortization of intangible assets acquired through business acquisitions primarily relating to customer lists, trademarks and non-compete agreements.
(6) Fiscal 2011 reflects charges totaling $57.0 million ($34.3 million net of tax) relating to severance accruals and the write-down of net assets for businesses that have been classified as discontinued operations.
(7) Fiscal 2011 reflects the (gain) or loss, net of tax, included in "Total Other Income (Expense)" above, recognized upon the disposition of business units that have been sold or shutdown.
Exhibit D - continued
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(In thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | |
| | | YEAR ENDED (1) | | QUARTER (1) |
| | | 2010 | | Q4-2010 | | Q3-2010 | | Q2-2010 | | Q1-2010 |
| 1. | Operating Results - Continuing Operations | | | | | | | | | |
| | Consolidated | | | | | | | | | |
| | Revenues | $ | 2,376,861 |
| | $ | 618,152 |
| | $ | 605,984 |
| | $ | 579,280 |
| | $ | 573,445 |
|
| | Operating Income, as reported | 580,090 |
| | 134,729 |
| | 149,107 |
| | 154,004 |
| | 142,250 |
|
| | Adjustments: | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (2) | 14,069 |
| | 14,069 |
| | — |
| | — |
| | — |
|
| | Operating Income, as adjusted | 594,159 |
| | 148,798 |
| | 149,107 |
| | 154,004 |
| | 142,250 |
|
| | Depreciation and Amortization | 89,079 |
| | 23,900 |
| | 22,377 |
| | 21,332 |
| | 21,470 |
|
| | EBITDA, as adjusted | $ | 683,238 |
| | $ | 172,698 |
| | $ | 171,484 |
| | $ | 175,336 |
| | $ | 163,720 |
|
| | Operating Margin, as adjusted | 25.0 | % | | 24.1 | % | | 24.6 | % | | 26.6 | % | | 24.8 | % |
| | EBITDA Margin, as adjusted | 28.7 | % | | 27.9 | % | | 28.3 | % | | 30.3 | % | | 28.6 | % |
| | Technology, Data and Analytics | | | | | | | | | |
| | Revenues | $ | 676,001 |
| | $ | 173,858 |
| | $ | 174,389 |
| | $ | 167,308 |
| | $ | 160,446 |
|
| | Operating Income, as reported | 256,666 |
| | 60,436 |
| | 68,783 |
| | 69,384 |
| | 58,063 |
|
| | Adjustments: | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (3) | — |
| | — |
| | — |
| | — |
| | — |
|
| | Operating Income, as adjusted | 256,666 |
| | 60,436 |
| | 68,783 |
| | 69,384 |
| | 58,063 |
|
| | Depreciation and Amortization | 60,920 |
| | 16,258 |
| | 15,113 |
| | 14,313 |
| | 15,236 |
|
| | EBITDA, as adjusted | $ | 317,586 |
| | $ | 76,694 |
| | $ | 83,896 |
| | $ | 83,697 |
| | $ | 73,299 |
|
| | Operating Margin, as adjusted | 38.0 | % | | 34.8 | % | | 39.4 | % | | 41.5 | % | | 36.2 | % |
| | EBITDA Margin, as adjusted | 47.0 | % | | 44.1 | % | | 48.1 | % | | 50.0 | % | | 45.7 | % |
| | Transaction Services | | | | | | | | | |
| | Revenues | $ | 1,708,689 |
| | $ | 446,187 |
| | $ | 433,534 |
| | $ | 413,616 |
| | $ | 415,352 |
|
| | Operating Income, as reported | 363,969 |
| | 90,568 |
| | 89,837 |
| | 91,793 |
| | 91,771 |
|
| | Adjustments: | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (3) | 9,800 |
| | 9,800 |
| | — |
| | — |
| | — |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Operating Income, as adjusted | 373,769 |
| | 100,368 |
| | 89,837 |
| | 91,793 |
| | 91,771 |
|
| | Depreciation and Amortization | 23,338 |
| | 6,484 |
| | 6,109 |
| | 5,795 |
| | 4,950 |
|
| | EBITDA, as adjusted | $ | 397,107 |
| | $ | 106,852 |
| | $ | 95,946 |
| | $ | 97,588 |
| | $ | 96,721 |
|
| | Operating Margin, as adjusted | 21.9 | % | | 22.5 | % | | 20.7 | % | | 22.2 | % | | 22.1 | % |
| | EBITDA Margin, as adjusted | 23.2 | % | | 23.9 | % | | 22.1 | % | | 23.6 | % | | 23.3 | % |
| | Corporate and Other | | | | | | | | | |
| | Revenues | $ | (7,829 | ) | | $ | (1,893 | ) | | $ | (1,939 | ) | | $ | (1,644 | ) | | $ | (2,353 | ) |
| | Operating Loss, as reported | (40,545 | ) | | (16,275 | ) | | (9,513 | ) | | (7,173 | ) | | (7,584 | ) |
| | Adjustments: | | | | | | | | | |
| | Exit costs, Impairments and Other Charges (3) | 4,269 |
| | 4,269 |
| | — |
| | — |
| | — |
|
| | Operating Loss, as adjusted | (36,276 | ) | | (12,006 | ) | | (9,513 | ) | | (7,173 | ) | | (7,584 | ) |
| | Depreciation and Amortization | 4,821 |
| | 1,158 |
| | 1,155 |
| | 1,224 |
| | 1,284 |
|
| | EBITDA, as adjusted | $ | (31,455 | ) | | $ | (10,848 | ) | | $ | (8,358 | ) | | $ | (5,949 | ) | | $ | (6,300 | ) |
Notes:
(1) 2010 revenues and operating income have been reclassified to conform to the current year presentation.
(2) Reflects the impact of an immaterial error correction recorded in 2010, totaling $9.8 million, related to fiscal years 2007 and 2008. Also reflects the impact of various severance charges, including the departure of our former chief financial officer, as well as the impact of other personnel restructuring programs. In connection with these initiatives, during 2010, we recorded severance charges, including equity acceleration, of $4.3 million ($2.6 million net of tax).
Exhibit E
LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | YEAR ENDED (1) | | QUARTER (1) |
| | | 2011 | | 2010 | | Q1-2012 | | Q4-2011 | | Q3-2011 | | Q2-2011 | | Q1-2011 | | Q4-2010 | | Q3-2010 | | Q2-2010 | | Q1-2010 |
| 1. | Revenues - Continuing Operations | | | | | | | | | | | | | | | | | | | | | |
| | Technology, Data and Analytics: | | | | | | | | | | | | | | | | | | | | | |
| | Technology | $ | 621,585 |
| | $ | 600,542 |
| | $ | 161,290 |
| | $ | 161,252 |
| | $ | 156,414 |
| | $ | 152,676 |
| | $ | 151,243 |
| | $ | 154,133 |
| | $ | 156,188 |
| | $ | 148,689 |
| | $ | 141,532 |
|
| | Servicing Technology | 421,352 |
| | 405,490 |
| | 108,351 |
| | 107,103 |
| | 107,273 |
| | 103,676 |
| | 103,300 |
| | 101,274 |
| | 103,126 |
| | 102,969 |
| | 98,121 |
|
| | Default Technology | 120,288 |
| | 119,304 |
| | 31,576 |
| | 33,752 |
| | 28,185 |
| | 29,201 |
| | 29,150 |
| | 33,125 |
| | 33,040 |
| | 25,364 |
| | 27,775 |
|
| | Origination Technology | 79,945 |
| | 75,748 |
| | 21,363 |
| | 20,397 |
| | 20,956 |
| | 19,799 |
| | 18,793 |
| | 19,734 |
| | 20,022 |
| | 20,356 |
| | 15,636 |
|
| | Data and Analytics | 68,945 |
| | 75,459 |
| | 16,853 |
| | 17,019 |
| | 16,724 |
| | 17,897 |
| | 17,305 |
| | 19,725 |
| | 18,201 |
| | 18,619 |
| | 18,914 |
|
| | Total | 690,530 |
| | 676,001 |
| | 178,143 |
| | 178,271 |
| | 173,138 |
| | 170,573 |
| | 168,548 |
| | 173,858 |
| | 174,389 |
| | 167,308 |
| | 160,446 |
|
| | Transaction Services: | | | | | | | | | | | | | | | | | | | | | |
| | Origination Services | 519,438 |
| | 605,636 |
| | 146,750 |
| | 151,527 |
| | 133,099 |
| | 105,856 |
| | 128,956 |
| | 179,394 |
| | 156,167 |
| | 131,439 |
| | 138,636 |
|
| | Default Services | 886,215 |
| | 1,103,053 |
| | 182,862 |
| | 205,326 |
| | 214,996 |
| | 224,744 |
| | 241,149 |
| | 266,793 |
| | 277,367 |
| | 282,177 |
| | 276,716 |
|
| | Total | 1,405,653 |
| | 1,708,689 |
| | 329,612 |
| | 356,853 |
| | 348,095 |
| | 330,600 |
| | 370,105 |
| | 446,187 |
| | 433,534 |
| | 413,616 |
| | 415,352 |
|
| | Corporate | (6,071 | ) | | (7,829 | ) | | (1,734 | ) | | (1,292 | ) | | (1,796 | ) | | (1,513 | ) | | (1,470 | ) | | (1,893 | ) | | (1,939 | ) | | (1,644 | ) | | (2,353 | ) |
| | Total Revenues | $ | 2,090,112 |
| | $ | 2,376,861 |
| | $ | 506,021 |
| | $ | 533,832 |
| | $ | 519,437 |
| | $ | 499,660 |
| | $ | 537,183 |
| | $ | 618,152 |
| | $ | 605,984 |
| | $ | 579,280 |
| | $ | 573,445 |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Revenue Growth from Prior Year Period | | | | | | | | | | | | | | | | | | | | | |
| | Technology, Data and Analytics: | | | | | | | | | | | | | | | | | | | | | |
| | Technology | 3.5 | % | | 6.8 | % | | 6.6 | % | | 4.6 | % | | 0.1 | % | | 2.7 | % | | 6.9 | % | | 3.8 | % | | 6.1 | % | | 11.2 | % | | 6.6 | % |
| | Servicing Technology | 3.9 | % | | 3.9 | % | | 4.9 | % | | 5.8 | % | | 4 | % | | 0.7 | % | | 5.3 | % | | (3.4 | )% | | (0.8 | )% | | 14.5 | % | | 7.3 | % |
| | Default Technology | 0.8 | % | | 4.2 | % | | 8.3 | % | | 1.9 | % | | (14.7 | )% | | 15.1 | % | | 5 | % | | 17 | % | | 15.9 | % | | (12.3 | )% | | (3.6 | )% |
| | Origination Technology | 5.5 | % | | 31.9 | % | | 13.7 | % | | 3.4 | % | | 4.7 | % | | (2.7 | )% | | 20.2 | % | | 28.5 | % | | 36.6 | % | | 37.1 | % | | 24.6 | % |
| | Data and Analytics | (8.6 | )% | | (4.3 | )% | | (2.6 | )% | | (13.7 | )% | | (8.1 | )% | | (3.9 | )% | | (8.5 | )% | | 4.4 | % | | (1.3 | )% | | (15.3 | )% | | (3.2 | )% |
| | Total | 2.1 | % | | 5.5 | % | | 5.7 | % | | 2.5 | % | | (0.7 | )% | | 2.0 | % | | 5.0 | % | | 3.8 | % | | 5.3 | % | | 7.5 | % | | 5.3 | % |
| | Transaction Services: | | | | | | | | | | | | | | | | | | | | | |
| | Origination Services | (14.2 | )% | | 15.8 | % | | 13.8 | % | | (15.5 | )% | | (14.8 | )% | | (19.5 | )% | | (7.0 | )% | | 31.6 | % | | 20.8 | % | | (8.2 | )% | | 21.5 | % |
| | Default Services | (19.7 | )% | | (4.6 | )% | | (24.2 | )% | | (23.0 | )% | | (22.5 | )% | | (20.4 | )% | | (12.9 | )% | | (7.5 | )% | | (10.7 | )% | | (7.2 | )% | | 9.0 | % |
| | Total | (17.7 | )% | | 1.7 | % | | (10.9 | )% | | (20.0 | )% | | (19.7 | )% | | (20.1 | )% | | (10.9 | )% | | 5.1 | % | | (1.5 | )% | | (7.5 | )% | | 12.9 | % |
| | Corporate | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
|
| | Total Revenues | (12.1 | )% | | 3.4 | % | | (5.8 | )% | | (13.6 | )% | | (14.3 | )% | | (13.7 | )% | | (6.3 | )% | | 4.9 | % | | 1.3 | % | | (2.8 | )% | | 11.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Revenue Growth from Sequential Period | | | | | | | | | | | | | | | | | | | | | |
| | Technology, Data and Analytics: | | | | | | | | | | | | | | | | | | | | | |
| | Technology | 3.5 | % | | 6.8 | % | | — | % | | 3.1 | % | | 2.4 | % | | 0.9 | % | | (1.9 | )% | | (1.3 | )% | | 5 | % | | 5.1 | % | | (4.7 | )% |
| | Servicing Technology | 3.9 | % | | 3.9 | % | | 1.2 | % | | (0.2 | )% | | 3.5 | % | | 0.4 | % | | 2 | % | | (1.8 | )% | | 0.2 | % | | 4.9 | % | | (6.4 | )% |
| | Default Technology | 0.8 | % | | 4.2 | % | | (6.4 | )% | | 19.8 | % | | (3.5 | )% | | 0.2 | % | | (12 | )% | | 0.3 | % | | 30.3 | % | | (8.7 | )% | | (1.9 | )% |
| | Origination Technology | 5.5 | % | | 31.9 | % | | 4.7 | % | | (2.7 | )% | | 5.8 | % | | 5.4 | % | | (4.8 | )% | | (1.4 | )% | | (1.6 | )% | | 30.2 | % | | 1.8 | % |
| | Data and Analytics | (8.6 | )% | | (4.3 | )% | | (1.0 | )% | | 1.8 | % | | (6.6 | )% | | 3.4 | % | | (12.3 | )% | | 8.4 | % | | (2.2 | )% | | (1.6 | )% | | 0.1 | % |
| | Total | 2.1 | % | | 5.5 | % | | (0.1 | )% | | 3.0 | % | | 1.5 | % | | 1.2 | % | | (3.1 | )% | | (0.3 | )% | | 4.2 | % | | 4.3 | % | | (4.2 | )% |
| | Transaction Services: | | | | | | | | | | | | | | | | | | | | | |
| | Origination Services | (14.2 | )% | | 15.8 | % | | (3.2 | )% | | 13.8 | % | | 25.7 | % | | (17.9 | )% | | (28.1 | )% | | 14.9 | % | | 18.8 | % | | (5.2 | )% | | 1.7 | % |
| | Default Services | (19.7 | )% | | (4.6 | )% | | (10.9 | )% | | (4.5 | )% | | (4.3 | )% | | (6.8 | )% | | (9.6 | )% | | (3.8 | )% | | (1.7 | )% | | 2.0 | % | | (4.0 | )% |
| | Total | (17.7 | )% | | 1.7 | % | | (7.6 | )% | | 2.5 | % | | 5.3 | % | | (10.7 | )% | | (17.1 | )% | | 2.9 | % | | 4.8 | % | | (0.4 | )% | | (2.2 | )% |
| | Corporate | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
| | n/m |
|
| | Total Revenues | (12.1 | )% | | 3.4 | % | | (5.2 | )% | | 2.8 | % | | 4.0 | % | | (7.0 | )% | | (13.1 | )% | | 2.0 | % | | 4.6 | % | | 1.0 | % | | (2.7 | )% |
Notes:
(1) 2011 and 2010 revenues have been reclassified to conform to the current year presentation.
