CoreLogic narrows 4Q loss on strong data and mortgage services business
Mortgage and real estate data provider CoreLogic (CLGX) narrowed its fourth-quarter loss as it continued its cost-cutting and as revenue rose on strong data, analytics and mortgage services volume.
Santa Ana, Calif.-based CoreLogic reported a loss of $14.1 million for the quarter ended Dec. 31, 2011, or a loss of 13 cents a share, down from a loss of $27.7 million, or a loss of 24 cents a share, in the year-ago quarter.
Fourth-quarter revenue increased 9.5% year-over-year to $345.4 million.
Data and analytics revenue rose 25.8% to $138.5 million reflecting the acquisition of RP Data, higher analytics revenue and growth in advisory projects. Mortgage origination services revenue climbed 9.4% to $134.4 million due primarily to the acquisition of Dorado Network Systems and higher flood certification volumes, which offset the impact of lower origination volumes.
Default services revenue declined to $78.9 million, an 11.8% drop from the prior year, reflecting, in part, the exit of unprofitable product lines.
Fourth-quarter income from continuing operations totaled $15.4 million, a $17.8 million decrease from the same prior-year period. It included one-time charges totaling $36.2 million related to consolidations, cost-cutting and strategic alternatives. The one-time charges were partially offset by an $8.1 million gain on the sale of real estate assets and the benefits of higher revenues and cost savings.
For full-year 2011, CoreLogic reported a loss of $66.59 million, or a loss of 61 cents a share, narrowed from $67.33 million for 2010, also a loss of 61 cents a share.
CoreLogic said it realized $20 million in cost reductions for the year.
"CoreLogic nearly doubled its cash on hand during the fourth quarter and we plan to deploy some of those funds in the first half of 2012 to reduce our debt balances by at least $100 million," said Frank Martell, CFO. "We also expect to build our liquidity and capital resources in 2012."
At Dec. 31, 2011, CoreLogic had total cash of approximately $259 million, up $120 million from September 30, 2011.
Total debt as of Dec. 31, 2011, was approximately $908 million, with available capacity on the company's credit facility of approximately $498 million.
Last year, CoreLogic hired advisory firm Greenhill & Co. to help explore options, including a possible sale or merger. In December, First American Financial dropped its plan to buy CoreLogic, two months after it made an offer.