Please wait


cllogovcmyk20printjpg003a0a.jpg


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., 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
•Full-year revenues totaled $1.642 billion, up 14%. Revenues were up approximately 20%, normalizing for $69 million of revenues attributable to non-core default technology units sold and the AMC transformation, which have no 2020 counterpart, and impacts attributable to COVID-19 of approximately $19 million.
•Fourth quarter revenues of $468 million were up 33% over the prior year. PIRM segment organic growth totaled 7%, benefiting from double-digit growth in property insights and international. UWS revenues grew 51% on strong market volumes and market outperformance in tax and flood zone solutions, credit solutions and valuations platforms.
•Strong share gains, including mega wins in both segments, drove 2020 full-year organic revenue growth to approximately 8%.
•During 2020, secured two mega wins in insurance and spatial solutions including a significant strategic win of a top 5 U.S. insurance carrier for CoreLogic’s next-generation integrated insurance solution
•Core mortgage market outperformance in tax and flood zone solutions and double-digit growth in credit solutions and valuations platforms. During 2020, secured two mega wins in tax payment processing and collateral valuations which were successfully onboarded in second half 2020

Profitability – Operating Leverage, Favorable Mix and Productivity Fuel Expanded Profit and Margins
•Full-year Highlights
◦Operating income of $331 million, up by $209 million
◦Operating leverage and productivity demonstrated by reduction in run-rate operating expenses on significantly higher revenues
◦Net income from continuing operations of $264 million, up by $230 million
◦Diluted EPS from continuing operations of $3.28; Adjusted EPS of $4.26, up 77%
◦Adjusted EBITDA of $638 million, up 45%
◦Adjusted EBITDA margin of 39%, up 830 basis points
•Fourth Quarter Highlights
◦Operating income of $120 million, up by $70 million
◦Net income from continuing operations of $86 million, up by $61 million
◦Diluted EPS from continuing operations of $1.10; Adjusted EPS of $1.51, up 113%
◦Adjusted EBITDA of $203 million, up 69%


◦Adjusted EBITDA margin of 43%, up 930 basis points

Liquidity and Capital Return – Record Cash Flow Generation
•Net operating cash provided by continuing operations for the 12 months ended December 31, 2020 was $491 million. Free cash flow ("FCF") for the 12 months ended December 31, 2020 totaled $392 million or 61% of adjusted EBITDA
•Debt outstanding on December 31, 2020 of $1.89 billion compared with $1.69 billion on December 31, 2019
•$450.0 million available on revolving credit facility; covenant debt leverage at 2.7 times
•Repurchased $500 million of our common shares in the fourth quarter, 2020 full-year repurchases totaled $509 million
•Dividends paid to shareholders totaled $86 million for full year 2020

(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.

###

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


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 EndedFor the Year Ended
December 31,December 31,
(in thousands, except per share amounts)2020201920202019
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 expenses144,370 114,999 537,617 463,787 
Depreciation and amortization43,806 42,333 174,445 175,100 
Impairment loss1,081 — 2,309 47,834 
Total operating expenses347,247 302,476 1,311,393 1,318,838 
Operating income120,395 50,365 330,982 122,035 
Interest expense:    
Interest income113 408 724 2,136 
Interest expense16,942 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, net4,997 1,039 42,151 (1,077)
Income from continuing operations before equity in earnings of affiliates and income taxes108,563 32,656 303,957 31,407 
Provision/(benefit) for income taxes22,133 7,169 41,566 (1,807)
Income from continuing operations before equity in earnings of affiliates86,430 25,487 262,391 33,214 
Equity in earnings of affiliates, net of tax— 58 1,859 556 
Net income from continuing operations86,430 25,545 264,250 33,770 
Income from discontinued operations, net of tax6,214 4,537 34,363 15,610 
Gain from sale of discontinued operations, net of tax2,742 — 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 tax0.08 0.06 0.44 0.20 
Gain from sale of discontinued operations, net of tax0.04 — 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 tax0.08 0.06 0.43 0.19 
Gain from sale of discontinued operations, net of tax0.03 — 0.03 — 
Net income$1.21 $0.38 $3.74 $0.61 
Weighted-average common shares outstanding:    
Basic76,271 79,125 78,542 79,885 
Diluted78,371 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,
Assets20202019
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 assets82,794 53,105 
Assets of discontinued operations202,417 201,986 
Total current assets755,835 606,936 
Property and equipment, net406,114 424,670 
Operating lease assets82,459 65,825 
Goodwill, net2,315,495 2,286,896 
Other intangible assets, net320,921 375,629 
Capitalized data and database costs, net321,211 308,409 
Investment in affiliates, net— 16,666 
Other assets81,187 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 benefits57,499 83,418 
Dividend payable— 17,374 
Contract liabilities, current411,821 320,634 
Current portion of long-term debt43,230 56,022 
Operating lease liabilities, current15,566 18,058 
Liabilities of discontinued operations44,677 42,708 
Total current liabilities750,399 677,725 
Long-term debt, net of current1,828,003 1,610,538 
Contract liabilities, net of current617,318 563,190 
Deferred income tax liabilities91,853 92,783 
Operating lease liabilities, net of current99,966 85,139 
Other liabilities172,421 178,696 
Total liabilities3,559,960 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 earnings893,404 1,006,992 
Accumulated other comprehensive loss(170,143)(166,783)
Total stockholders' equity723,262 951,210 
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)20202019
Cash flows from operating activities:  
Net income$301,355 $49,380 
Less: Income from discontinued operations, net of tax34,363 15,610 
Less: Gain from sale of discontinued operations, net of tax2,742 — 
Net income from continuing operations264,250 33,770 
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
  
Depreciation and amortization174,445 175,100 
Impairment loss2,309 47,834 
Amortization of debt issuance costs4,935 5,077 
Amortization of operating lease assets14,855 15,402 
Provision for bad debts and claim losses22,711 15,341 
Share-based compensation45,060 35,171 
Equity in earnings of investee, net of taxes(1,859)(556)
Loss on early extinguishment of debt— 1,892 
Deferred income tax23,639 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 liabilities144,548 50,380 
Income taxes(32,397)22,210 
Dividends received from investments in affiliates109 1,987 
Other assets and other liabilities(49,780)(31,413)
Net cash provided by operating activities - continuing operations491,178 347,332 
Net cash provided by operating activities - discontinued operations44,594 16,884 
Total cash provided by operating activities$535,772 $364,216 
Cash flows from investing activities:  
Purchases of property and equipment$(57,668)$(79,265)
Purchases of capitalized data and other intangible assets(41,442)(35,481)
Cash paid for acquisitions, net of cash acquired(12,045)(13,283)
Cash received from sale of business-lines— 4,109 
Cash received from sale of discontinued operations7,506 — 
Purchases of investments(1,315)(658)
Proceeds from investments and other51,358 5,594 
Net cash used in investing activities - continuing operations(53,606)(118,984)
Net cash used in investing activities - discontinued operations(12,113)(16,845)
Total cash used in investing activities$(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 cash4,007 230 
Net change in cash, cash equivalents and restricted cash$64,603 $17,452 
Cash, cash equivalents and restricted cash at beginning of year114,678 94,679 
Less: Change in cash, cash equivalents and restricted cash - discontinued operations32,475 27 
Plus: Cash swept from discontinued operations31,027 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)PIRMUWSCORPELIMCoreLogic
Net income/(loss) from continuing operations$27,414 $150,156 $(91,140)$— $86,430 
Income taxes— — 22,133 — 22,133 
Depreciation and amortization23,807 12,035 7,964 — 43,806 
Interest expense/(income), net470 (33)16,392 — 16,829 
Share-based compensation1,928 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 costs1,723 223 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)PIRMUWSCORPELIMCoreLogic
Net income/(loss) from continuing operations$9,377 $72,709 $(56,541)$— $25,545 
Income taxes— — 7,189 — 7,189 
Depreciation and amortization22,727 11,947 7,659 — 42,333 
Interest (income)/expense, net(88)67 18,769 — 18,748 
Share-based compensation1,707 1,564 5,882 — 9,153 
Impairment loss— — — — 
Non-operating losses425 6,002 963 — 7,390 
Efficiency investments and other1,023 293 6,228 — 7,544 
Transaction costs1,468 359 72 — 1,899 
Amortization of acquired intangibles included in equity in losses of affiliates77 — — 77 
Adjusted EBITDA$36,716 $92,941 $(9,779)$— $119,878 

For the Year Ended December 31, 2020
(in thousands)PIRMUWSCORPELIMCoreLogic
Net income/(loss) from continuing operations$129,865 $431,873 $(297,488)$— $264,250 
Income taxes— — 42,184 — 42,184 
Depreciation and amortization93,640 48,126 32,679 — 174,445 
Interest expense/(income), net1,760 (56)67,472 — 69,176 
Share-based compensation7,886 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 costs300 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)PIRMUWSCORPELIMCoreLogic
Net income/(loss) from continuing operations$47,759 $194,454 $(208,443)$— $33,770 
Income taxes— — (1,622)— (1,622)
Depreciation and amortization94,862 51,337 28,901 — 175,100 
Interest expense, net37 269 75,851 — 76,157 
Share-based compensation6,309 6,079 22,783 — 35,171 
Impairment loss— 47,834 — — 47,834 
Non-operating gains6,725 6,279 13,738 — 26,742 
Efficiency investments3,471 6,484 29,562 — 39,517 
Transaction costs6,448 359 392 — 7,199 
Amortization of acquired intangibles included in equity in earnings of affiliates307 — — — 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)20202019
Net income from continuing operations$1.10 $0.32 
Share-based compensation0.14 0.11 
Non-operating (gains)/losses(0.07)0.09 
Efficiency investments and other0.10 0.09 
Impairment loss0.01 — 
Transaction costs0.03 0.02 
Depreciation and amortization of acquired software and intangibles0.22 0.21 
Unsolicited proposal related costs0.22— 
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)20202019
Net income from continuing operations$3.28 $0.42 
Share-based compensation0.56 0.43 
Non-operating (gains)/losses(0.51)0.33 
Efficiency investments0.32 0.49 
Impairment loss0.03 0.59 
Transaction costs0.03 0.09 
Depreciation and amortization of acquired software and intangibles0.85 0.89 
Amortization of acquired intangibles included in equity in earnings of affiliates— — 
Unsolicited proposal related costs0.67— 
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