Irvine, Calif.

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

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
Executive, Investor Relations
703-610-5410
danlsmith@corelogic.com

Media Contact

Sard Verbinnen & Co.
George Sard
212-687-8080
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 Ended For the Year Ended
December 31, December 31,
(in thousands, except per share amounts) 2020 2019 2020 2019
Operating revenue $467,642.00 $352,841.00 $1,642,375.00 $1,440,873.00
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 -16829 -18748 -69176 -76157
Tax indemnification release -13394
Gain/(loss) on investments and other, net 4,997 1,039 42,151 -1077
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 -1807
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 $95,386.00 $30,082.00 $ 301,355.00 $49,380.00
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 $167,422.00 $104,162.00
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 $4,283,222.00 $4,159,281.00
Liabilities and Equity
Current liabilities:
Accounts payable and other accrued expenses $177,606.00 $139,511.00
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 -170143 -166783
Total stockholders' equity 723,262 951,210
Total liabilities and equity $4,283,222.00 $4,159,281.00

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 -1859 -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 -42153 -2329
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable -55829 -33491
Prepaid expenses and other assets -2570 -7300
Accounts payable and other accrued expenses -21095 1,283
Contract liabilities 144,548 50,380
Income taxes -32397 22,210
Dividends received from investments in affiliates 109 1,987
Other assets and other liabilities -49780 -31413
Net cash provided by operating activities - continuing operations 491,178 347,332
Net cashprovided 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 -41442 -35481
Cash paid for acquisitions, net of cash acquired -12045 -13283
Cash received from sale of business-lines 4,109
Cash received from sale of discontinued operations 7,506
Purchases of investments -1315 -658
Proceeds from investments and other 51,358 5,594
Net cash used in investing activities - continuing operations -53606 -118984
Net cash used investing activities - discontinued operations -12113 -16845
Total cash used in investing activities -65719 -135829
Cash flows from financing activities:
Proceeds from long-term debt $300,000 $1,770,000
Debt issuance costs -9621
Debt extinguishment premium -425
Repayments of long-term debt -103197 -1883955
Shares repurchased and retired -509259 -86675
Proceeds from issuance of shares in connection with share-based compensation 11,256 10,149
Payment of tax withholdings related to net share settlements -22529 -10026
Contingent consideration payments subsequent to acquisitions -600
Cash dividends -85722
Net cash used in financing activities - continuing operations -409451 -211153
Net cash used in financing activities - discontinued operations -6 -12
Total cash used in financing activities -409457 -211165
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 $(91,140.00) $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 -2202 -3198 -5400
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 $9,377.00 $72,709.00 $(56,541.00) $25,545.00
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 -35425 -128 -5464 -41017
Efficiency investments -2286 1,460 26,211 25,385
Transaction costs 300 905 1,533 2,738
Unsolicited Proposal Related Costs $ 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 -1622 -1622
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 $ $ 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