CoreLogic Reports Record Full-Year and Fourth Quarter 2020 Revenue, Operating Income, Profit Margins and Cash Flow
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CoreLogic Reports Record Full-Year and Fourth Quarter 2020 Revenue, Operating Income, Profit Margins and Cash Flow

Fueled by Double-Digit Revenue Growth Driven by Housing Market Activity and Share Gains, Operating Leverage and Cost Productivity

Returned $595 Million to Shareholders in 2020 Through Share Repurchases and Dividends

IRVINE, Calif. — (BUSINESS WIRE) — March 1, 2021 — CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today reported financial results for the full-year and fourth quarter ended December 31, 2020.

Full-Year and Fourth Quarter Financial(1) and Business Highlights

Growth Focus – Share Gains, Mega Wins and Pricing Drive Organic Growth Rates

Profitability – Operating Leverage, Favorable Mix and Productivity Fuel Expanded Profit and Margins

Liquidity and Capital Return – Record Cash Flow Generation

(1) The Company’s financial results presented in this release reflect continuing operations. Reseller operations held for sale are presented as discontinued operations for all periods presented.

Discontinued Operations

Consistent with our previously announced intentions, the Company has exited its multi-family tenant screening operations and intends to exit its mortgage credit and borrower verification operations. Although market leaders in their respective business areas, these reseller businesses are not compatible with the Company’s long-term strategic imperatives. The divestiture of these operations is expected to improve the Company’s revenue growth trends, revenue mix, and significantly enhance profit margins. These reseller operations have been classified as discontinued operations and prior period results have been presented on a comparable basis.

In October 2020, we consummated the sale of a component of our multi-family tenant screening business for $9 million of proceeds. In February 2021, we sold the remainder of our multi-family tenant screening business for proceeds of $51 million.

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CLGX-F

About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy, and protect their homes. For more information, please visit www.corelogic.com.

Safe Harbor / Forward Looking Statements

Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to (i) projections and trends regarding financial performance and operating results, including with respect to revenue growth, margin gains, contract wins, market share gains, new products, and long-term stockholder value, and (ii) our intention to exit our reseller operations. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include the risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K and in Part II, Item 1A of our subsequent Quarterly Reports on Form 10-Q, as such risk factors may be amended, supplemented, or superseded from time to time by other reports we file with the Securities and Exchange Commission. These risks and uncertainties include but are not limited to: the potential impact of, and any potential developments related to, the proposed acquisition of the Company by Stone Point Capital and Insight Partners, as well as the competing proposed acquisition of the Company by CoStar Group, Inc.; the potential impact of, and any potential developments related to, activist shareholder activity; compromises in the security or stability of our data and systems, including from cyber-based attacks, the unauthorized transmission of confidential information or systems interruptions, which could impair the delivery of our products and services; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our clients or us, including with respect to consumer financial services and the use of public records and consumer data; reliance on our top ten clients for a significant portion of our revenue and profit; intense competition in the market against third parties and the in-house capabilities of our clients; risks related to the outsourcing of services and international operations; potential impairment of our substantial goodwill and other intangible assets; the potential impact that the COVID-19 pandemic, or the perception of its effects, may have on our business; our ability to protect proprietary technology rights and avoid infringement of others’ proprietary technology rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our various debt agreements; our ability to realize the anticipated benefits of certain acquisitions and the timing thereof; the impact of our adoption of a shareholder rights plan; difficult or uncertain conditions in the mortgage and consumer lending industries and the economy generally; and our ability to attract and retain qualified personnel.. The forward-looking statements speak only as of the date they are made. CoreLogic does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures

This press release contains certain non-GAAP financial measures, including adjusted EBITDA, adjusted EPS and FCF, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with their most directly comparable GAAP financial measures. These non-GAAP measures are not in accordance with, or a substitute for, U.S. GAAP. A reconciliation of non-GAAP measures for historical periods to the most directly comparable GAAP financial measures is included in this press release. CoreLogic believes that its presentation of these non-GAAP measures provides useful supplemental information to investors and management regarding CoreLogic's financial condition and results of operations. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest, taxes, depreciation and amortization, share-based compensation, non-operating gains/losses, and other adjustments. Adjusted EPS is defined as diluted income from continuing operations, net of tax per share, adjusted for share-based compensation, amortization of acquisition-related intangibles, non-operating gains/losses, and other adjustments; and assumes an effective tax rate of 26% for 2020 and 25% for 2019. FCF is defined as net cash provided by continuing operating activities, less capital expenditures for purchases of property and equipment, capitalized data, and other intangible assets. Other firms may calculate non-GAAP measures differently than the Company, which limits comparability between companies. Non-GAAP measures are not in accordance with, or a substitute for, U.S. GAAP. Because the non-GAAP measures for future periods included herein are forward-looking, CoreLogic is not able to provide a reconciliation, without unreasonable efforts, of such forward-looking guidance to the most directly comparable GAAP financial measure due to the unknown effect, timing, and potential significance of special charges or gains that are material to the comparable GAAP financial measure.

CoreLogic, Inc.
Consolidated Statements of Operations
(Unaudited)

 

For the Three Months Ended

 

For the Year Ended

 

December 31,

 

December 31,

(in thousands, except per share amounts)

2020

 

2019

 

2020

 

2019

Operating revenue

$

467,642

 

 

$

352,841

 

 

$

1,642,375

 

 

$

1,440,873

 

Cost of services (exclusive of depreciation and amortization)

157,990

 

 

145,144

 

 

597,022

 

 

632,117

 

Selling, general and administrative expenses

144,370

 

 

114,999

 

 

537,617

 

 

463,787

 

Depreciation and amortization

43,806

 

 

42,333

 

 

174,445

 

 

175,100

 

Impairment loss

1,081

 

 

 

 

2,309

 

 

47,834

 

Total operating expenses

347,247

 

 

302,476

 

 

1,311,393

 

 

1,318,838

 

Operating income

120,395

 

 

50,365

 

 

330,982

 

 

122,035

 

Interest expense:

 

 

 

 

 

 

 

Interest income

113

 

 

408

 

 

724

 

 

2,136

 

Interest expense

16,942

 

 

19,156

 

 

69,900

 

 

78,293

 

Total interest expense, net

(16,829)

 

 

(18,748)

 

 

(69,176)

 

 

(76,157)

 

Tax indemnification release

 

 

 

 

 

 

(13,394)

 

Gain/(loss) on investments and other, net

4,997

 

 

1,039

 

 

42,151

 

 

(1,077)

 

Income from continuing operations before equity in earnings of affiliates and income taxes

108,563

 

 

32,656

 

 

303,957

 

 

31,407

 

Provision/(benefit) for income taxes

22,133

 

 

7,169

 

 

41,566

 

 

(1,807)

 

Income from continuing operations before equity in earnings of affiliates

86,430

 

 

25,487

 

 

262,391

 

 

33,214

 

Equity in earnings of affiliates, net of tax

 

 

58

 

 

1,859

 

 

556

 

Net income from continuing operations

86,430

 

 

25,545

 

 

264,250

 

 

33,770

 

Income from discontinued operations, net of tax

6,214

 

 

4,537

 

 

34,363

 

 

15,610

 

Gain from sale of discontinued operations, net of tax

2,742

 

 

 

 

2,742

 

 

 

Net income

$

95,386

 

 

$

30,082

 

 

$

301,355

 

 

$

49,380

 

 

 

 

 

 

 

 

 

Basic income per share:

 

 

 

 

 

 

 

Net income from continuing operations

$

1.13

 

 

$

0.32

 

 

$

3.36

 

 

$

0.42

 

Income from discontinued operations, net of tax

0.08

 

 

0.06

 

 

0.44

 

 

0.20

 

Gain from sale of discontinued operations, net of tax

0.04

 

 

 

 

0.03

 

 

 

Net income

$

1.25

 

 

$

0.38

 

 

$

3.83

 

 

$

0.62

 

Diluted income per share:

 

 

 

 

 

 

 

Net income from continuing operations

$

1.10

 

 

$

0.32

 

 

$

3.28

 

 

$

0.42

 

Income from discontinued operations, net of tax

0.08

 

 

0.06

 

 

0.43

 

 

0.19

 

Gain from sale of discontinued operations, net of tax

0.03

 

 

 

 

0.03

 

 

 

Net income

$

1.21

 

 

$

0.38

 

 

$

3.74

 

 

$

0.61

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

76,271

 

 

79,125

 

 

78,542

 

 

79,885

 

Diluted

78,371

 

 

80,356

 

 

80,495

 

 

81,021

 

Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements.

CoreLogic, Inc.
Consolidated Balance Sheets
(Unaudited)

(in thousands, except par value)

December 31,

 

December 31,

Assets

2020

 

2019

Current assets:

 

 

 

Cash and cash equivalents

$

167,422

 

 

$

104,162

 

Accounts receivable (less allowances of $9,838 and $6,937 in 2020 and 2019, respectively)

303,202

 

 

247,683

 

Prepaid expenses and other current assets

82,794

 

 

53,105

 

Assets of discontinued operations

202,417

 

 

201,986

 

Total current assets

755,835

 

 

606,936

 

Property and equipment, net

406,114

 

 

424,670

 

Operating lease assets

82,459

 

 

65,825

 

Goodwill, net

2,315,495

 

 

2,286,896

 

Other intangible assets, net

320,921

 

 

375,629

 

Capitalized data and database costs, net

321,211

 

 

308,409

 

Investment in affiliates, net

 

 

16,666

 

Other assets

81,187

 

 

74,250

 

Total assets

$

4,283,222

 

 

$

4,159,281

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and other accrued expenses

$

177,606

 

 

$

139,511

 

Accrued salaries and benefits

57,499

 

 

83,418

 

Dividend payable

 

 

17,374

 

Contract liabilities, current

411,821

 

 

320,634

 

Current portion of long-term debt

43,230

 

 

56,022

 

Operating lease liabilities, current

15,566

 

 

18,058

 

Liabilities of discontinued operations

44,677

 

 

42,708

 

Total current liabilities

750,399

 

 

677,725

 

Long-term debt, net of current

1,828,003

 

 

1,610,538

 

Contract liabilities, net of current

617,318

 

 

563,190

 

Deferred income tax liabilities

91,853

 

 

92,783

 

Operating lease liabilities, net of current

99,966

 

 

85,139

 

Other liabilities

172,421

 

 

178,696

 

Total liabilities

3,559,960

 

 

3,208,071

 

 

 

 

 

Stockholders' Equity:

 

 

 

Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding

 

 

 

Common stock, $0.00001 par value; 180,000 shares authorized; 73,152 and 78,972 shares issued and outstanding as of December 31, 2020 and 2019, respectively

1

 

 

1

 

Additional paid-in capital

 

 

111,000

 

Retained earnings

893,404

 

 

1,006,992

 

Accumulated other comprehensive loss

(170,143)

 

 

(166,783)

 

Total stockholders' equity

723,262

 

 

951,210

 

Total liabilities and equity

$

4,283,222

 

 

$

4,159,281

 

Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements.

CoreLogic, Inc.
Consolidated Statements of Cash Flows
(Unaudited)

 

For the Year Ended

 

December 31,

(in thousands)

2020

 

2019

Cash flows from operating activities:

 

 

 

Net income

$

301,355

 

 

$

49,380

 

Less: Income from discontinued operations, net of tax

34,363

 

 

15,610

 

Less: Gain from sale of discontinued operations, net of tax

2,742

 

 

 

Net income from continuing operations

264,250

 

 

33,770

 

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:

 

 

 

Depreciation and amortization

174,445

 

 

175,100

 

Impairment loss

2,309

 

 

47,834

 

Amortization of debt issuance costs

4,935

 

 

5,077

 

Amortization of operating lease assets

14,855

 

 

15,402

 

Provision for bad debts and claim losses

22,711

 

 

15,341

 

Share-based compensation

45,060

 

 

35,171

 

Equity in earnings of investee, net of taxes

(1,859)

 

 

(556)

 

Loss on early extinguishment of debt

 

 

1,892

 

Deferred income tax

23,639

 

 

2,069

 

Impairment loss on investment in affiliates

 

 

1,511

 

Tax indemnification release

 

 

13,394

 

Gain on investments and other, net

(42,153)

 

 

(2,329)

 

Change in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

(55,829)

 

 

(33,491)

 

Prepaid expenses and other assets

(2,570)

 

 

(7,300)

 

Accounts payable and other accrued expenses

(21,095)

 

 

1,283

 

Contract liabilities

144,548

 

 

50,380

 

Income taxes

(32,397)

 

 

22,210

 

Dividends received from investments in affiliates

109

 

 

1,987

 

Other assets and other liabilities

(49,780)

 

 

(31,413)

 

Net cash provided by operating activities - continuing operations

491,178

 

 

347,332

 

Net cash provided by operating activities - discontinued operations

44,594

 

 

16,884

 

Total cash provided by operating activities

$

535,772

 

 

$

364,216

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

$

(57,668)

 

 

$

(79,265)

 

Purchases of capitalized data and other intangible assets

(41,442)

 

 

(35,481)

 

Cash paid for acquisitions, net of cash acquired

(12,045)

 

 

(13,283)

 

Cash received from sale of business-lines

 

 

4,109

 

Cash received from sale of discontinued operations

7,506

 

 

 

Purchases of investments

(1,315)

 

 

(658)

 

Proceeds from investments and other

51,358

 

 

5,594

 

Net cash used in investing activities - continuing operations

(53,606)

 

 

(118,984)

 

Net cash used in investing activities - discontinued operations

(12,113)

 

 

(16,845)

 

Total cash used in investing activities

$

(65,719)

 

 

$

(135,829)

 

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

$

300,000

 

 

$

1,770,000

 

Debt issuance costs

 

 

(9,621)

 

Debt extinguishment premium

 

 

(425)

 

Repayments of long-term debt

(103,197)

 

 

(1,883,955)

 

Shares repurchased and retired

(509,259)

 

 

(86,675)

 

Proceeds from issuance of shares in connection with share-based compensation

11,256

 

 

10,149

 

Payment of tax withholdings related to net share settlements

(22,529)

 

 

(10,026)

 

Contingent consideration payments subsequent to acquisitions

 

 

(600)

 

Cash dividends

(85,722)

 

 

 

Net cash used in financing activities - continuing operations

(409,451)

 

 

(211,153)

 

Net cash used in financing activities - discontinued operations

(6)

 

 

(12)

 

Total cash used in financing activities

$

(409,457)

 

 

$

(211,165)

 

Effect of exchange rate on cash, cash equivalents and restricted cash

4,007

 

 

230

 

Net change in cash, cash equivalents and restricted cash

$

64,603

 

 

$

17,452

 

Cash, cash equivalents and restricted cash at beginning of year

114,678

 

 

94,679

 

Less: Change in cash, cash equivalents and restricted cash - discontinued operations

32,475

 

 

27

 

Plus: Cash swept from discontinued operations

31,027

 

 

2,574

 

Cash, cash equivalents and restricted cash at end of year

$

177,833

 

 

$

114,678

 

Please refer to the full Form 10-K filing for the complete financial statements and related notes that are an integral part of the financial statements.

CoreLogic, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited)

 

For the Three Months Ended December 31, 2020

(in thousands)

PIRM

UWS

CORP

ELIM

CoreLogic

Net income/(loss) from continuing operations

$

27,414

 

$

150,156

 

$

(91,140)

 

$

 

$

86,430

 

Income taxes

 

 

22,133

 

 

22,133

 

Depreciation and amortization

23,807

 

12,035

 

7,964

 

 

43,806

 

Interest expense/(income), net

470

 

(33)

 

16,392

 

 

16,829

 

Share-based compensation

1,928

 

1,737

 

7,499

 

 

11,164

 

Non-operating (gains)/losses

(2,202)

 

 

(3,198)

 

 

(5,400)

 

Efficiency investments and other

(205)

 

251

 

7,496

 

 

7,542

 

Transaction costs

1,723

 

223

 

34

 

 

1,980

 

Impairment Loss

 

1,050

 

31

 

 

1,081

 

Unsolicited Proposal Related Costs

17,098

 

17,098

 

Adjusted EBITDA

$

52,935

 

$

165,419

 

$

(15,691)

 

$

 

$

202,663

 

 

For the Three Months Ended December 31, 2019

(in thousands)

PIRM

UWS

CORP

ELIM

CoreLogic

Net income/(loss) from continuing operations

$

9,377

 

$

72,709

 

$

(56,541)

 

$

 

$

25,545

 

Income taxes

 

 

7,189

 

 

7,189

 

Depreciation and amortization

22,727

 

11,947

 

7,659

 

 

42,333

 

Interest (income)/expense, net

(88)

 

67

 

18,769

 

 

18,748

 

Share-based compensation

1,707

 

1,564

 

5,882

 

 

9,153

 

Impairment loss

 

 

 

 

 

Non-operating losses

425

 

6,002

 

963

 

 

7,390

 

Efficiency investments and other

1,023

 

293

 

6,228

 

 

7,544

 

Transaction costs

1,468

 

359

 

72

 

 

1,899

 

Amortization of acquired intangibles included in equity in losses of affiliates

77

 

 

 

 

77

 

Adjusted EBITDA

$

36,716

 

$

92,941

 

$

(9,779)

 

$

 

$

119,878

 

 

For the Year Ended December 31, 2020

(in thousands)

PIRM

UWS

CORP

ELIM

CoreLogic

Net income/(loss) from continuing operations

$

129,865

 

$

431,873

 

$

(297,488)

 

$

 

$

264,250

 

Income taxes

 

 

42,184

 

 

42,184

 

Depreciation and amortization

93,640

 

48,126

 

32,679

 

 

174,445

 

Interest expense/(income), net

1,760

 

(56)

 

67,472

 

 

69,176

 

Share-based compensation

7,886

 

7,607

 

29,567

 

 

45,060

 

Impairment loss

 

2,278

 

31

 

 

2,309

 

Non-operating (gains)/losses

(35,425)

 

(128)

 

(5,464)

 

 

(41,017)

 

Efficiency investments

(2,286)

 

1,460

 

26,211

 

 

25,385

 

Transaction costs

300

 

905

 

1,533

 

 

2,738

 

Unsolicited Proposal Related Costs

$

53,846

 

53,846

 

Adjusted EBITDA

$

195,740

 

$

492,065

 

$

(49,429)

 

$

 

$

638,376

 

 

For the Year Ended December 31, 2019

(in thousands)

PIRM

UWS

CORP

ELIM

CoreLogic

Net income/(loss) from continuing operations

$

47,759

 

$

194,454

 

$

(208,443)

 

$

 

$

33,770

 

Income taxes

 

 

(1,622)

 

 

(1,622)

 

Depreciation and amortization

94,862

 

51,337

 

28,901

 

 

175,100

 

Interest expense, net

37

 

269

 

75,851

 

 

76,157

 

Share-based compensation

6,309

 

6,079

 

22,783

 

 

35,171

 

Impairment loss

 

47,834

 

 

 

47,834

 

Non-operating gains

6,725

 

6,279

 

13,738

 

 

26,742

 

Efficiency investments

3,471

 

6,484

 

29,562

 

 

39,517

 

Transaction costs

6,448

 

359

 

392

 

 

7,199

 

Amortization of acquired intangibles included in equity in earnings of affiliates

307

 

 

 

 

307

 

Adjusted EBITDA

$

165,918

 

$

313,095

 

$

(38,838)

 

$

 

$

440,175

 

CoreLogic, Inc.
Reconciliation of Adjusted EPS
(Unaudited)

 

For the Three Months Ended December 31,

(Diluted income per share)

2020

 

2019

Net income from continuing operations

$

1.10

 

 

$

0.32

 

Share-based compensation

0.14

 

 

0.11

 

Non-operating (gains)/losses

(0.07)

 

 

0.09

 

Efficiency investments and other

0.10

 

 

0.09

 

Impairment loss

0.01

 

 

 

Transaction costs

0.03

 

 

0.02

 

Depreciation and amortization of acquired software and intangibles

0.22

 

 

0.21

 

Unsolicited proposal related costs

0.22

 

 

 

Income tax effect on adjustments

(0.24)

 

 

(0.13)

 

Adjusted EPS

$

1.51

 

 

$

0.71

 

 

For the Year Ended December 31,

(Diluted income per share)

2020

 

2019

Net income from continuing operations

$

3.28

 

 

$

0.42

 

Share-based compensation

0.56

 

 

0.43

 

Non-operating (gains)/losses

(0.51)

 

 

0.33

 

Efficiency investments

0.32

 

 

0.49

 

Impairment loss

0.03

 

 

0.59

 

Transaction costs

0.03

 

 

0.09

 

Depreciation and amortization of acquired software and intangibles

0.85

 

 

0.89

 

Amortization of acquired intangibles included in equity in earnings of affiliates

 

 

 

Unsolicited proposal related costs

0.67

 

 

 

Income tax effect on adjustments

(0.97)

 

 

(0.83)

 

Adjusted EPS

$

4.26

 

 

$

2.41

 

CoreLogic, Inc.
Reconciliation to Free Cash Flow
(Unaudited)

(in thousands)

 

For the Year Ended December 31, 2020

Net cash provided by operating activities - continuing operations

 

$

491,178

 

Purchases of property and equipment

 

(57,668)

 

Purchases of capitalized data and other intangible assets

 

(41,442)

 

Free Cash Flow

 

$

392,068

 

 



Contact:

Investor Contact: Dan Smith, office phone: 703-610-5410, e-mail: danlsmith@corelogic.com

Media Contact: George Sard, Sard Verbinnen & Co, office phone: 212-687-8080, e-mail: GSard@SARDVERB.com