Altisource posts record service revenue in 1Q 2014
$210M service revenue grows 65% YOY
Altisource Portfolio Solutions (ASPS) posted record service revenue, net income attributable to shareholders and diluted earnings per share.
Altisource posted service revenue of $210 million for the first quarter 2014, a 65% increase over the first quarter 2013.
The company had net income of $39.6 million in the first quarter, a 44% increase over the first quarter of 2013. The company recorded cash from operations of $36.3 million, a 280% increase over the first quarter of 2013.
The quarter-over-quarter growth in service revenue and net income was primarily driven by the higher number of loans that were boarded on REALServicing in 2013 and the inclusion of a full quarter of Equator, LLC operations.
"Altisource had a very strong quarter, marking the 12th straight quarter of sequential service revenue growth. To maintain this trend, we remain focused on executing against our strategic plan," said chairman William Erbey.
William Shepro, CEO, added, "We are focused on providing high quality, compliant services to our customers while diligently executing on our 2014 strategic initiatives to diversify our customer base and grow our revenue and earnings. Our strong cash flow generation provides us the ability to invest in our next-generation technologies, acquire businesses that advance our strategic objectives and repurchase our common stock."
Gross profit as a percentage of service revenue was 44% for the quarter, an increase from 41% for the same quarter in 2013 driven by margin expansion in all of the company's operating segments.
The average number of delinquent non-GSE loans serviced by Ocwen Financial Services on REALServicing totaled 369,000 for the three months ended March 31, 2014, an increase of 57% compared to the three months ended March 31, 2013.