ASPS - Earnings call transcript Q1 2018 | Altisource Portfolio Solutions S.A.

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Operator

Good day, ladies and gentlemen, and welcome to the Altisource Portfolio Solutions First Quarter Earnings Call. [Operator Instructions].

As a reminder, today's program is being recorded. I'd now like to introduce your host for today's program, Indroneel Chatterjee, Chief Financial Officer. Please go ahead.

Indroneel Chatterjee

operator. you, Thank to XX-Q want website that earnings the www.altisource.com. We quarterly remind slides Form and our are release, first you available at on These find investors provide useful. additional information may

involve may release, lead and forward-looking uncertainties today quarterly could results result describe to forward-looking slides contained factors in review XXXX actual factors risk take that Form differ. which obligation cause of the events. statement statements remarks Our sections may information that statements, which We in the update risks as well future a no results. include Form our to and Please of the as to want XX-Q these number XX-K, or company's to earnings as new a

and release disclosures of our of measures. During this slides. included non-GAAP A non-GAAP measures call, financial is and find the additional slides, in we earnings you regarding will the to non-GAAP reconciliation measures. Appendix GAAP In GAAP will quarterly quarterly both the present

today's call our turn to me now Chief Bill. the call Joining to would I is like for Officer. over Executive Shepro, Bill

William Shepro

X, XXXX. and April the XXXX to letter On December acquisition plan will announced Ocwen's of Good the Altisource couple refinanced of business progress provide in our Indroneel. completion highlights, term maturity PHH. X to of loan. making extend loan, the term we I lines. on financial to an with from a Today, morning. our investigation are an from the the the overview the business core refinancing of our begin performance CFPB April and with Thanks, its I date Beginning our loan of update including regarding of we

higher determining term general The of available payments baskets debt $XX carries the secured previous credit of that and restricted on on LIBOR million had us of years. is is our purposes than our million marketable X% of is years expands XX% subsequent for previous for up to points payment new available giving we two and the corporate securities. for annual the sweeps, is revolver repurchases first in for Interest based excess loan for facility, share other amortization agreement, cash term basis the from flow over addition, and by definition covenant-light, and mandatory credit a $XX has purposes. three-month XX loan net In

free Given limited generation, we strong loan. our and and the for rates term six-year of believe tradeoff higher cash liquidity, expectations a are requirements, capital interest good amortization this flow

the recently that of that front, enforcement been fully take in letter a On from informing us. as to received today, the more CFPB its disclosed us intend currently doesn't we completed regulatory XX-Q against investigation it and the filed action has Altisource

of are process. relieved also advised retention civil document We is its the that investigative to pursuant obligations Altisource

us. matter to put We behind this are pleased

Ocwen that Now PHH to Ocwen's acquire January On acquisition XX, was it of Corporation. entering definitive announced into a PHH. to agreement

migration Ocwen's Similar to increasing risks services agreements provide In acquisition, to it services its from will long-term on connection may that other system the reducing to have its acquisitions, believe Altisource's Ocwen's path to novo the provide after on anticipate subservicing and In the the growth to Ocwen Altisource Ocwen's portfolio outsource implementation. current the the that of PHH's Ocwen we costs PHH with on portfolio. addition a fee-based hiatus. with portfolio, provide de fee-based plans servicing to Ocwen's transferring portfolio. Altisource we return pave Ocwen's acquisition same the that platform, by X-year for stated servicing the loans accelerate we

the provide the benefit information As the on more portfolio, we we about for Altisource. learn and the of more acquisition to timing of PHH will Ocwen's characteristics

into anticipate is operating adjusted based interest flow to business. our $X.X in diluted of typically the our investments cash in of the to XXXX cash refinancing to million in generated on short-term of buy-renovate-lease-sell after reflect $X.XX the adjusted been revenue adjusted lowest This service the estate in million million range cash first of that We $XXX.X cash to $XX earnings of the Altisource Slide X. in due million and translates operating real Operating our $X.X quarter first Turning adding following generating updated have $XX debt. quarter flow per results flow in payment million, expense scenarios higher back share. bonuses. of

result and full as portfolio, of of scenarios. first runoff the servicing the revenue Texas the XX% decline Service businesses. in smaller California non-Ocwen the REO. foreclosure Ocwen in First lower management, was of the quarter service partially midpoint quarter 'XX, loans holds our a than fulfillment Hubzu, growth normal Owners.com nonperforming revenue by was year of portfolio and offset revenue its from services, revenue RESI's represents of natural of and service and field renovation primarily disasters The

midpoint the We financial service the anticipate scenarios. will continue of to within be of that our range revenue

within of share In value our of bringing first XX our stock million the XX% quarter. $XX to was in marketable We us implemented we quarter, earnings midpoint per securities. the of net full of decline line $X.X represents of the an the average price diluted million of of of we in of from the adjusted quarter share which seasonally adjusted quarter, XXXX, will by to repurchase Compared outstanding of ended $XX.XX, in partially I expectations $XXX marketable our scenarios. of first quarter to will at share our and rules, slower with adjusted shares the fair million that quarter first cash per service $XXX accounting XXXX our require updated We to lower reduction anticipate XXX,XXX securities, RESI statement. changes revenue debt midpoint approximately and new nondiluted count the scenarios, exclude initiatives. in income first the earnings Diluted First used earnings full share million million. approximately year as for the the year with been per include offset losses to plus shares updated earnings securities the just range be diluted adjusted share from cost our discussed, in diluted per has mark-to-market

XX basis. Now a X anticipate approximately second our making client annual I'd of should the are the that $XX with brief received a Collectively, businesses. continued X during first business. that produce from won these momentum we the our the XXXX prospects quarter. notification Servicer of the half in experienced wins wins compares of core like second This wins with provide million Solutions we and We XXXX. strong each time, of that their overview of you over Solutions half in progress key stabilized to during revenue of The we on we key Origination businesses

to clients, growth non-Ocwen/NRZ revenue Based growth Our posted XX% to Servicer these we last year upon Solutions revenue accelerate wins and sales of progresses. year. the and of quarter non-Ocwen as anticipate onboarding first the business new the XXXX non-NRZ compared anticipated

from Our XX business. top and asset auction statement executed call, that new strong of won in our the agreement property work a This business sales bank and and their included first preservation inspection, real settlement and includes momentum top X the to a services. management with quarter earnings services last brokerage asset management, bank the provide prospects estate year XX estate this auction, master we we and services. with notification of real Since

and active We sales a attractive have very pipeline. also

Origination maintained last revenue origination quarter environment by first to Our year next X%. an strategic flat volumes which in business compared is where the Solutions, declined of

Solutions wins During the progresses. recent X and for as business the notified that meaningful onboarding should new platform Origination customers. year of including we These first customers, of clients these quarter XXXX, are X growth we the our attractive won position status

real smaller quarter portfolio REO XXXX. solutions decline compared and of revenue reflects flat sales RESI's our business Our service estate XX% BRS nonperforming experienced loans investor the This relatively property to first business. in of a and

the the BRS in progresses, the we than will from the business offset that revenue As decline anticipate more year of RESI. growth

the rising rate reflect potential in Given home our underwriting we environment, values. to decrease have the criteria BRS refined interest

BRS typically lower sellers takes program reduce that year. it to price our the market following somewhat the be may changes, for for we than this expectations their time growth anticipate sales original As of expectations,

our and same progress. tools and of using capitalize leadership revenue is by Finally, business, by new XXXX, under business solutions of consumers on the grew first quarter, real XX% buy of the In This online to the solid transactions demonstrating homes. consumer year. continues August the estate to service to sell since number growing compared period trend we last XX%

tests a We and continue across our are running the operating Internet-based to levels enhancement companies. performance at mature platform similar of deployment now natural model

hiring working roughly time of National our a working finished X,XXX X,XXX this clients also and of team, were approximately We the bolstered Sales year. last leadership with quarter compared to the with with we Head

Owners.com's XXXX to for I double in loan, been The XXXX We sales pipeline feel year. first can we're our I'm team excellence this Altisource refinancing than as I and benefit pleased the of accelerate good our that believe sales as Operator? our with to We growth. and like are our non-Ocwen/NRZ management now from Ocwen's growth conclusion, very questions. have the CFPB's I'd our sales that completed. year PHH, quarter investigation long we continue of we up acquisition improved call the believe strong progress and positions Altisource focused more and now business and this ever In positioned progresses. by to term about has operational as liquidity We profile prospects time. revenue to year. a is wins very our pleased its on open

Operator

[Operator Instructions].

of Northland Your line comes first from question Securities. Mike from the Grondahl

Michael Grondahl

quarter. to questions kind Just some better understand the trends the in of

per a there? it going loan, you about number. just about $XXX first that? Can Because delinquent revenue on one, from that it like What's to seasonality? Is The $XXX. about service that's talk year-over-year looks fell

William Shepro

natural Bill. or it's rate time more loan higher your the a the think one, going is of result here, I revenue Mike, delinquent Texas is what fluctuate in and actually this things, this from so happening is, number California. in than -- quarter-to-quarter. couple think, service per delinquent the year, delinquency you are last of as of specifically primarily year disasters loans saw But Yes, to I

loans, a doing loans those And loan. that lifted, until on so have more on delinquent those is delinquencies Ocwen so holds And not brings are you hold. hold. your are has the delinquent bigger, work do or denominator of down disaster revenue actual natural what's are some those is natural much you a per but -- They happening

Michael Grondahl

it. make about sort per from just about Got unit have roughly And actual to Is What's home the XX% seemed per to driving a HPA? sense. of then home. jumped on that revenue $X,XXX that basis? home per year-over-year That Hubzu, $XX,XXX

William Shepro

question, Great Mike.

of things And by April appreciating. as we sold being that's more month saw, more three on, trend continuing there's commissions, home by are the going homes prices that well. and are in So way, earning it's auction the a

Michael Grondahl

meaning So a... commissions, more

William Shepro

More commissions, sold a greater appreciation. percentage home auction by price and homes of

Michael Grondahl

Just explain commissions? define charging the you Or greater that one? Are more? little bit a

William Shepro

Sure.

So more of all will price, on auction, so the that was listing the -- so the earning premium we're you're of our we're month time. way also gone we the into home trend the with just selling on on sell that listing some percentage those that we're the a of so we're by values the the homes. and has normalize we're fronts. a Mike, of we're up transferred, homes. seeing and greater listing that structured a out of beginning agent on into arrangement homes at least is in the earning more the over price We're in selling, percentage And agent, on continued NRZ commission. home homes sales home earning buyer's homes on quite were greater And greater commission have really a April, far beginning, What substantially X the

Michael Grondahl

up Well, when season be to, that this should good. summer, picks that

with called out business you of over timing? the six of six the sort Servicer the Specifically, Solutions. won and nature in sort those go you again of Could wins you

William Shepro

basis I could not so mean, do management from Mike, a go-forward of if those of one work units perspective, we get hundreds a and Yes, volume hiring where to our on names like institutions. of these household from are, XXX, asset auction, us month REO

to The could business XX institution, units month. a the with get some second XX XX inspection and bank. top won property we preservation We've

good. And so the very nature wins of is these

auction get business, we're you hired and we're due asset management when the and the off off title closing, realtor. to the Hubzu the So insurance, valuation, the

So perspective. it's our attractive very from

Michael Grondahl

timing The two side. Can a origination it. on Got there? bit it. the talk nature Got and you little wins about

William Shepro

We're a fulfillment the bit historically excited of we'd little doing been it's type about these, work operation. in because than our different

back So we're now some underwriting and include maybe a and the the insurance office -- will two, being and the fulfillment, titled title those processing the our it's the I where was actually one over to group and do of valuation able of of complete it the taking appraisal. the to that we're one, wins, to think Springhouse do premium hire us loans eventually doing

whole basically underwriting, the loan to we're the over origination fulfillment and technology, taking our taking system, So over do back office. office, the our Builder, Mortgage using we're

month prospects faster. loans, work. of And and over in April, of one-by-one we're And about some pipeline and bit deal process do revenue to we our the we're provide per high. winning other file even this the very to to so very signing is onboarding sales actually from And a interesting branches thing. time now starting, a to the the in case, this In have interesting And a is normally those same taking sort moved contract clients, what's long. little it line

like margins the back attractive; and become a revenue much, really office. truly we business, per higher; their because that you are partner with the unit is So you the are much clients

Michael Grondahl

interesting. about XX% seasonality? full were Sounds year. guys revenues Or just the non-Ocwen of you expected? was than The that, midpoint less what that like, at the Is for

William Shepro

Mike, the think, that year, of excited. for I that's were And the agreements time weeks. last and signed these new generate meetings do wins this it's of contracts, last exact process. when notified having to just couple us started timing deals just those revenue. onboarding to wins we're we signed And in those of we the those Yes, we very why predict of X hard

hard and most those time soon. to homes So start good sold. it's we're the at the -- some start process it's to revenue are year course, But selling And should going to then to of agreements got We've process, the listed, it -- feel start, exact onboarding had now clients' you're when will but get excited very it get is when about predict timing starting, is, that, what the as those grow the offices and of takes signed. that receiving meetings buyer referrals we just we progresses. the REO, a is getting and

Michael Grondahl

it. Got

good a the feel for year you even XQ non-Ocwen, still bit about XX% the fair? at Is So little was it. soft that

William Shepro

because frankly, so interest rising we'll the feel have in to the don't we our still for the solutions want within some right range. impact. homes now, with attention of We paying has Yes. be But real in to midpoint buy-renovate-sell We're to, the business close estate overpay investor our environment, we're that a potential scenarios. sticking business -- rate our

Michael Grondahl

lastly and just revenues double thinking then the are did real How you And I mean, update this investor about Is that? you. say estate on when breakeven? those might Got Owners.com. on the year. services any you could owners there

William Shepro

improving building Yes, very I the mean, on Mike, a we're so of building doing job of good the number transactions, Owners.com, business, revenue.

is But we So could loss shows -- there XX% that to XXXX. modeling as still in work to have do look, that get be much lot a as there. by the we some cutting of

business really on an breakeven. there's And crushing opportunity scenario, and the it could so there's, -- a

making we're And there. hope working down in on then to we're cover sell So if business continue costs returns we those there, not money how will real business, investor improve quite operate homes in to money of And buy-renovate-sell homes. making refine we to the business, on our fixed some continuing to then we're of in doing for lot the our making up to we be we're we're are but this XXXX. and a we RESI, still the investment our year, in think the substantially progress estate work the coming solutions we making that

Operator

Pierce of Piper question comes from from Dever Jaffray. line Next the

Pierce Dever

to the Just cash regards guidance in change interest expense entirely flow. the Is for related that to the in and debt?

William Shepro

Yes.

Pierce Dever

change Okay. the then for as share, other And besides guidance well? the is per expense the change earnings in there interest any

William Shepro

No, no.

Pierce Dever

And then on loan appreciation revenue the price did how the increase per much the home service in Hubzu? Okay. -- impact profits

William Shepro

that But benefit the price and been to appreciation has out breaking be components in not those strong I continues April. strong We're X very from home discussed.

Pierce Dever

effect, Was servicing has and located? appreciation Ocwen's particular there price where in outsize portfolio any an that given markets home it's

William Shepro

board mean, we're don't but across data the have board I sort the at fingertips, seeing at my -- generally across this point price I the of appreciation. but

Pierce Dever

the out you in there? agreement, And Residential to missed any Okay. if at call. the I'm regards do New beginning updates then I the of have sorry very

William Shepro

No problem. No, we're continuing.

We with turn to have NRZ. the the close relationship and work. we're then statements servicers strong a We're of very agreement, going very getting to negotiating to

wish I went faster, but get both very close. sides getting to we're signed. So are it working it diligently

Pierce Dever

the on on where property wins? when the then the new margins had, in margins you're typical think that do wins And expect of preservation you Okay. you new that doing the the work business REO about you some with pretax

William Shepro

I Solutions they mean, think I with are talk overall today. business margins revenue, Yes. the consistent that depend margins of business as just on course, And very make expect will to the when unit to on this new make you the the of then, we mix are. what Servicer margins about we

bit business very So getting have cost, the think, on margins. but business, closer, good we're those perspective. pricing And to and we still to We do we XX% that feel and marginal fixed make our to high XX% Origination margin. we're work then little base cover from of Solutions to it's a deals on very again, attractive that a

Pierce Dever

to the consider schedule pay Okay. amortization And just to then down to are that? Or debt to accelerating schedule? you net would regards the planning you in debt, the continue according amortization

William Shepro

now, schedule. Right don't amortization I we're know. the focused on

always right to more. focused But schedule. amortization the buy ability Of retain the now, on course, we're we

Operator

question Napier Minkove line comes the from next Shachar Our from Park. of

Shachar Minkove

here. questions of A couple

new to we are a new that or sense Or up little Solutions. new Servicer is wins? prior that non-Ocwen customers? the Just -- for some The contracts, contract ramp actually from get seeing the wins customer of that trying bit? from a on just First, was growth,

William Shepro

Yes.

some the the it's So of customers won. growth had we of that

the market primarily. our these we meaningfully expand what's are share our foreclosure And some grow We've as We've a we property expect and new substantially example, auction bank. and going second that grow referral And volumes that customer. we quarter with expanding revenue So seeing, bringing well. some our growth are seen be newer volumes, customers, and continue for going up market can to preservation existing customers, of on we top beyond. to It's very seen with business. still into optimistic sort with of volumes share customers inspection going of with and the the

to hope as we the So these on as new growth. should help continue grab well from them to share drive customers bringing that

Shachar Minkove

that -- any I know Okay. new a in of we at Will see ramp can have of I the you best? second just in customers but -- quarter? of starting enough Or beginning you visibility, up is was to the half second you don't more that see wondering, are on lot XQ? volume any the

William Shepro

volume we'll some in Yes. Solutions, have a grow We we ramp beginning second see happening. to in I QX, than quarter, couple Origination ramping hope and we'll we but QX. in are to expect really And start think One, we start volumes Solutions. In more Servicer of likely clients. that's to these in the origination of tailwinds the

in grow little quite a businesses to cases, see But more growth Solutions. we'll as the So nicely. year progresses, that Origination those both expect we bit in perhaps

Shachar Minkove

you the -- that I houses the And -- see couple for how -- you a I about in talked of coming spending the you flipping. in if -- quarters? And volume more to then -- and And did Okay. this to quarter? of be you you wanted just relative how That's rebuying next get had kind -- on what guess, sense guess helpful. should

William Shepro

Yes.

had a we I the -- in something give second. me think

the properties we acquired XX. renovated in first XX So quarter, and XX, leased we

sales fairly in it turn with sold we're to leased, to optimize turn some we're pretty what on probably the in got home, with But the homes we're continuing will it those around We're we second now the returns to Our We're on starting effort homes. ultimately leased sell will the getting pleased faster, pleased leased be our faster, we've and and were -- be faster earning aggressive a -- modest these, we're faster. when to quarter, the get yield and and get third. first think sell to quarter. buy renovated to sort into slip homes the able we we're focused a these

Shachar Minkove

if In was first the quarter really earnest. doing recall, time, I were actually first that in this the you

potential So buy-renovate-sale. we're not really at a run of rate

are You will of element that buy-renovate -- these first the is right? more and on

William Shepro

Yes. That's correct.

Shachar Minkove

more see and back you more Presumably, forward, you'll But it, of, cash call see as returning let's that. move more actually sort we'll generation on from churn. the

William Shepro

Yes. Absolutely.

Shachar Minkove

to little my question Okay. get this around a is, just And last my trying better. then head just bit

your on the I'm spent trying until feels less turning buying like, business debt, You paying equity you debt, million -- $XXX-plus not And spending start guys debt down a around. -- stock. as I -- of quarter, you the $XX bunch we but yes, are we've and -- you I understand this been not to how has past lender, been down on around, on business buying just equity? last you've guys watching feels mean, for million paying why back the turned been more quarters. it like It mean, right We've of seeing feels this

William Shepro

think generate years. a of have couple couple of flow. be next Also, of we clip let will reasonably we and think, talk continue I first to why the talk for debt good we amount at a to from have believe of Well, buying But we if shares think makes you the then you sense. the amortization perspective, debt I the reducing over years, the schedule debt me operating I about and lot loan we'll cash the the about outstanding next

million on million like top securities that's And of of year. have of to cash $XX million and flow expect something operating cash $XXX-plus generate the on to we We right this hand $XX marketable now.

in debt, discretionary of down we're bit; without will our talking And as the earlier, the consider businesses. losses Mike come businesses comfortably, without an will the We investments generating spending those investments investments the money. a years. by but of over changing to like very shoots we investments -- of changing as the couple to we're investment. company But the we can over way, were in to new have down seeing quite share these we're $X.XX of expect and not make with it's businesses. actually investments, course risk think the in income down, a make we profile but it. on businesses we of very losses reducing Those we not of next last And risk, come be anymore to only about couple in green So the our good feel sort about pay something those quarters, so believe, our those losses materially we

trading if of of earnings discretionary look the to back. is believe the won't and it and do, we scenarios it's per buy investments debt, we share to think about we continue $X.XX So make the the our we price stock $X.XX very shares attractive, adjusted is of where risk the our company, materially our the and you we at we impact amortize when share long-term as profile and think and believe plus comfortably support growth can investments

Shachar Minkove

down it Okay. amortization big to million chunk to cash to going that XXXX free your Presumably, Is we're roughly be pay debt? in next that assume about or continue XX talking a safe $XX-plus months. of of will the flow

William Shepro

another I we'll we think million. marketable cash $XXX of million generate securities, have $XX plus Well, and

we tools we in But available certainly have our have other have So the to those yes, yes, the make we amortization payments. cash toolkit. certainly,

Operator

line Our next comes Crédit the of Kamali Ramin Suisse. question from from

Ramin Kamali

I the focus previous wanted guess, But your the I buybacks. little with caller plans bit on a had share similar to questions about buy-renovate-sell. to

$XX it's about the current So views year, on should just market? on sheet. of based the balance million your at the see Where of assets over we of course now, trending right the that

William Shepro

Yes.

think our it originally get you I scenarios, projected would look if at to million. $XX we Ramin,

rates think sellers thoughtful current think there interest I views I a on big right now. market, be that issue based trying as in is our and supply to we're rise the

you between sellers' come supply, prices the expectations haven't would So like prices and limited expect. down

being And thoughtful the so purchases. we're of around more

for So million think -- by the about But yes, have an year. we the expect end midpoint haven't from updated of our scenarios don't increase was -- for to estimate we I $XX where we full to year. the

Ramin Kamali

should $XXX line million by be year-end. item it So

William Shepro

No.

is meaningful about of I think beginning a our that and to way come number criteria. was we being the going making year, because thoughtful in homes we're we're underwriting that Ramin, from sure that down that very the meet anticipate buying

Ramin Kamali

revenue quantify kind Okay. guess, I you revenue then attributed And and loan Texas. weakness impact quarter some you California and that in Can the mentioned the delays? of the you to related kind per those foreclosure of in to

William Shepro

earning the hard revenue number tied that you greater. -- those on it's we're denominator exactly the tell are And to that, substantially, percentage Ramin, clearly, think hold. but much is not -- of I on so are the how to loans that is delinquent is up

the revenue. they generating So but denominator, not in are

maybe decline all per most that's loan. of I the think probably not delinquent in it, revenue but of

Ramin Kamali

per you that just would've for So if year-over-year moratorium, not directionally what... loan revenue seen increases? And flat

William Shepro

I foreclosure know process, faster in last don't so continue states Texas, those holds loans they our But the states continue year. the trustee ordering continue to you REO. an get and and the you Well, what year, you is business, inspections last California relative process foreclosure are those nonjudicial, think in think doing to that to valuations, are I what would is relative increase off you -- I see to come see as hold, would you'll would

seen REO have referrals. would you So more

fueling come and what many delinquent end percent loans coming then of loan we're of think across I the most the remain up back those off And ultimately as So services. seen a how servicer that it it's be to when performing could it to can the be months. different last but required holds as is I've months, as and as guidelines to the told as it, how each six investors hold. a long six have long as of been handle they

they So California, And for are remain still that what off it's what most come we in then I'm starting Texas, and change, Texas, But percentage to California, default. -- be part, just sorry, example, they're in not in for hold California start in to hold. seen should February. in and on actually percentage to in the perform

Ramin Kamali

a similar in QX? decline see we Should

William Shepro

expect to the expect taxes us, would -- has no, Ramin. and seasonally I would No. quarter stronger grow. because for it's come it off I a

Ramin Kamali

Okay. the of kind back profitability, turning kind to other kind buying would softness into cautious I continued of not guess, approach you given advised a in because the stock? of be segments

William Shepro

very these sales and time. And We you we support, the stronger are names, way, Ramin, enviable as with appreciate a household the By marquee base. the customer they very, pipeline about sort want, a feel quickly good feedback or here. but have long start growing up and as you know. And And about in of are very doesn't had be not were opportunities. growth as very we're if excited we'd do We're disappointed we as would our the prospects it disappointed we've meaningfully. very it's picking we

Operator

[Operator Instructions].

question next Omega from of Our comes Advisors. from Lee Cooperman line the

Leon Cooperman

been up number Would repurchase wasted second question can to consolidation. minus your for now servicing above that? tax I really a a have which best few out tell, any seem as the you, would until loss or plus that talk you consolidated? a degree as an that The companies. convinced years. significant follow And what back? stuff has really money is, a that think closely you you industry you buyer to heading been one? have this is be to X sense. the do questions. words, going for opinion a Do a you're NSM people if be carryforwards the other on the that, industry The your WMIH, this agreed in have buy has In is you that would how buying of last make and direction be the There's the wrong X But substantial confidence of industry or most earnings have in

a, earnings a about what year are the have that You for missed RESI you're with mentioned have then $X I RESI $X.XX. you are you range but I Or earlier, doing the stock, we forecast comfortable about guess, to it this that Directionally, you? stock? $X.XX in of to is going XXXX? in for And uncertain of something a higher

William Shepro

Great.

there that Lee, PHH. some taking you've is I question acquisition consolidation, first place, mean, your So industry Nationstar, consolidation on clear of got Ocwen's it's regarding

some clearly there's consolidation. So

Lee, is cooperative We long-term what's brokerage NRZ. at agreement, the seemed our agreement, the nice Ocwen, be it to got service agreements with have long-term -- we and have we've about with least agreements,

your loss consolidation whether sense turn, to hard I very going tax So It's acquisitions, -- for I good in hard it's to that for that perspective, But is move from very other and to for next us. me to is where to mean that's going question. to predict go. Ocwen's of to buyer Nationstar was me Ocwen, our for the good going think use to logical makes going go predict me. I to do they're

Leon Cooperman

when buys back the spend in money And to sense the a said against wants line on to that back he stock he's time on operating spending know publicly repurchase. thinking because bottom your of and is they shareholders when exactly lot stock. shareholder companies are buying Buffet a are their you're he question, Warren has shareholders, what stock,

stock is is Because a buying time it makes if value? at you're only now is when back the of it the What sense to thinking what think stock that you terms are in you you're think discount $XX.XX. back is what are to back business curious, stock $XX.XX? I'm worth. buying you buy Your buying at back that, So you

think market? is So tell with us why what disagree you the and business worth the you

William Shepro

longer stock of company and risk buying we I to investments and long-term materially it's feel back our because I as you the that money paid big shares the sales add my I company. recently change, about the We because it's believe there. taking profile it's Lee, but we also look prospects. putting And discretionary good the the undervalued. doesn't as this all, pretty I personally I'm $X.XX can making I buying restricted think at It on my least change, money where believe so the that last very are wrote personally been when putting we're first year. at company as that back over is I share, investments year, and is. back believe the truly And the restricted stock this I've materialize the about you am market grow disappeared. quarter, and my mouth check, hasn't my pipeline, on think then open of the taxes our So a of

XXXX adjusted or least, the our updated view at earnings than numbers, XXXX. haven't be point, We same should better is so our at XXXX's this

taxes it at stock. in own the company I'm buying So my money, about we you as of And perspective. terms the substantially believe think consistent least shares is to holding in my belief when doing and undervalued from and that terms of with paying what I'm

flow, we things back, believe shares should investing that's scenario. of flow. addition current $XX this and we debt and a also flow million a we're some be million why shares generate of is one cash lot with given $XX down we free cash of buying buying also and So think we paying in the is cash of doing lot back, the the in business to to

Leon Cooperman

Where does the picture? the dividend fit in

William Shepro

view about feel dividends, that... still same. our Lee. on talked changed haven't We the We We

Leon Cooperman

the when been all to So is in we Clearly, alluded correct decision, if I'm a X $X to looked what year impressed $X earnings. talking like the you. you -- I'm XXXX. tied which wrong. far at is for years timing have that not looking asking would earnings. has you've you were flat have repurchase ago, I'm stock in a

few materially rather worth is or trading million next $XX $XX million million of issue. million years than flow the shares going understand $XX is cash grow, go to XX stock the is the unless I on for million that's over the $XX more down than Now or

we not confidence about you're the growth. seen So statement so have a in and growth, making far,

William Shepro

Lee, disappointed hasn't the as we stock tremendous coming. as And believe up. We moved that it's you are progress. we believe making I'm

Leon Cooperman

the care the prices stock. take I stock think stock itself. into I look The put it when repurchase. is not really paying you what I your flow owns direction XX%, owner, involved you're my don't care statement, frankly, is stock me That's you a why being stock making of the kept that's about. And of cash because is and the in undervalued, materially is I the that's The Deer about care issue about earnings. price will firm XX%, interested care Erbey the of the in or stock whatever, and academic in so at own Putnam much when are pay have than company; they is cetera. the Park, of owning Mr. ownership, smart still company more XX% a the buying people ownership, constantly back dividend concentrated et close to attention. you XX% people, the

shares you then you and own XXX,XXX -- correctly So plus about options. say,

stock. progression we when the going my So justify decision back to is, the are question when back you buying to buy equity? people earnings tend pay allegedly to to are see attention smart And the

William Shepro

that stated is adjusted be the we pretax next As same growing believe we our or going to year.

Leon Cooperman

Same does. doesn't for anything Growing do you.

William Shepro

the the you. grow a stayed with year, few we're cash next agree a And where have requirements. cash very bad free tremendous generate. limited of we of I we're of be flow of going for given generating if cash also, just over we agree, it we're believe years. we But flat is wouldn't flow the trading so given course, and amount couple the to and Lee, also flow, we capital amount But generating, stock I

Leon Cooperman

a And right. earlier lastly intentions our then comment comment. you there? right, the I Right, is stock, RESI What made missed on, the

William Shepro

position also very from Lee, would we're are the cycle. where a The is say, in good economic in we one, I last

They're vendors to national -- and that even are a in with that that and products are first provide. time delinquencies natural fewer services spike long beginning up today. of we scale there a all-time So disasters, time those the vendors have lows in at outside for the fewer

turns, well I be. economy positioned you well could positioned think very are as if the as we

you very, to as if in off world, we're loosen your very were couple the as it don't depending we historical a years, look out a delinquencies the a grow of underwriting lows. all-time if benefit standards So view even position as and to -- of on of see recession, good

that's is very a company another at this reason Altisource why think in point. sort to of I interesting invest So

Leon Cooperman

So RESI, our I me say are intentions? earlier? it. missed tell what did about what you And

William Shepro

Sure.

is RESI So important an customer, Lee.

As long stock to I don't for plan before, own the run. their we said

conversations in not-to point, out that having some way at on But of come. working several we're we But the our -- more over next So the work quarters to with do to RESI. position. hope

Operator

the hand like Indroneel This I'd to for does program. conclude question-and-answer today's to back of further the program any session Chatterjee remarks.

William Shepro

look to forward to joining speaking for the Thanks. Thanks soon. call. We you

Operator

Thank precipitation and conference. ladies program. concludes This does today's you, for the gentlemen, in your

now may disconnect. Good You day.

Altisource Portfolio Solutions (ASPS) 29 Apr 182018 Q1 Earnings call transcript