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PRESS RELEASE

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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

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 EndedFor the Year Ended
December 31,December 31,
(in thousands, except per share amounts)2020201920202019
Operating revenue$467,642.00$352,841.00$1,642,375.00$1,440,873.00
Cost of services (exclusive of depreciation and amortization)157,990145,144597,022632,117
Selling, general and administrative expenses144,370114,999537,617463,787
Depreciation and amortization43,80642,333174,445175,100
Impairment loss1,0812,30947,834
Total operating expenses347,247302,4761,311,3931,318,838
Operating income120,39550,365330,982122,035
Interest expense:
Interest income1134087242,136
Interest expense16,94219,15669,90078,293
Total interest expense, net-16829-18748-69176-76157
Tax indemnification release-13394
Gain/(loss) on investments and other, net4,9971,03942,151-1077
Income from continuing operations before equity in earnings of affiliates and income taxes108,56332,656303,95731,407
Provision/(benefit) for income taxes22,1337,16941,566-1807
Income from continuing operations before equity in earnings of affiliates86,43025,487262,39133,214
Equity in earnings of affiliates, net of tax581,859556
Net income from continuing operations86,43025,545264,25033,770
Income from discontinued operations, net of tax6,2144,53734,36315,610
Gain from sale of discontinued operations, net of tax2,7422,742
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$0.42
Income from discontinued operations, net of tax0.080.060.440.20
Gain from sale of discontinued operations, net of tax0.040.03
Net income$ 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 tax0.080.060.430.19
Gain from sale of discontinued operations, net of tax0.030.03
Net income$1.21$0.38$3.74$0.61
Weighted-average common shares outstanding:
Basic76,27179,12578,54279,885
Diluted78,37180,35680,49581,021

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$167,422.00$104,162.00
Accounts receivable (less allowances of $9,838 and $6,937 in 2020 and 2019, respectively)303,202247,683
Prepaid expenses and other current assets82,79453,105
Assets of discontinued operations202,417201,986
Total current assets755,835606,936
Property and equipment, net406,114424,670
Operating lease assets82,45965,825
Goodwill, net2,315,4952,286,896
Other intangible assets, net320,921375,629
Capitalized data and database costs, net321,211308,409
Investment in affiliates, net16,666
Other assets81,18774,250
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 benefits57,49983,418
Dividend payable17,374
Contract liabilities, current411,821320,634
Current portion of long-term debt43,23056,022
Operating lease liabilities, current15,56618,058
Liabilities of discontinued operations44,67742,708
Total current liabilities750,399677,725
Long-term debt, net of current1,828,0031,610,538
Contract liabilities, net of current617,318563,190
Deferred income tax liabilities91,85392,783
Operating lease liabilities, net of current99,96685,139
Other liabilities172,421178,696
Total liabilities3,559,9603,208,071
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, respectively11
Additional paid-in capital111,000
Retained earnings893,4041,006,992
Accumulated other comprehensive loss-170143-166783
Total stockholders’ equity723,262951,210
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)20202019
Cash flows from operating activities:
Net income$301,355$49,380
Less: Income from discontinued operations, net of tax34,36315,610
Less: Gain from sale of discontinued operations, net of tax2,742
Net income from continuing operations264,25033,770
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization174,445175,100
Impairment loss2,30947,834
Amortization of debt issuance costs4,9355,077
Amortization of operating lease assets14,85515,402
Provision for bad debts and claim losses22,71115,341
Share-based compensation45,06035,171
Equity in earnings of investee, net of taxes-1859-556
Loss on early extinguishment of debt1,892
Deferred income tax23,6392,069
Impairment loss on investment in affiliates1,511
Tax indemnification release13,394
Gain on investments and other, net-42153-2329
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable-55829-33491
Prepaid expenses and other assets-2570-7300
Accounts payable and other accrued expenses-210951,283
Contract liabilities144,54850,380
Income taxes-3239722,210
Dividends received from investments in affiliates1091,987
Other assets and other liabilities-49780-31413
Net cash provided by operating activities – continuing operations491,178347,332
Net cashprovided by operating activities – discontinued operations44,59416,884
Total cash provided by operating activities$ 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-lines4,109
Cash received from sale of discontinued operations7,506
Purchases of investments-1315-658
Proceeds from investments and other51,3585,594
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$1,770,000
Debt issuance costs-9621
Debt extinguishment premium-425
Repayments of long-term debt-103197-1883955
Shares repurchased and retired-509259-86675
Proceeds from issuance of shares in connection with share-based compensation11,25610,149
Payment of tax withholdings related to net share settlements-22529-10026
Contingent consideration payments subsequent to acquisitions-600
Cash dividends-85722
Net cash used in financing activities – continuing operations-409451-211153
Net cash used in financing activities – discontinued operations-6-12
Total cash used in financing activities-409457-211165
Effect of exchange rate on cash, cash equivalents and restricted cash4,007230
Net change in cash, cash equivalents and restricted cash$ 64,603$ 17,452
Cash, cash equivalents and restricted cash at beginning of year114,67894,679
Less: Change in cash, cash equivalents and restricted cash – discontinued operations32,47527
Plus: Cash swept from discontinued operations31,0272,574
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$150,156$(91,140.00)$86,430
Income taxes22,13322,133
Depreciation and amortization23,80712,0357,96443,806
Interest expense/(income), net470-3316,39216,829
Share-based compensation1,9281,7377,49911,164
Non-operating (gains)/losses-2202-3198-5400
Efficiency investments and other-2052517,4967,542
Transaction costs1,723223341,980
Impairment Loss1,050311,081
Unsolicited Proposal Related Costs17,09817,098
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$9,377.00$72,709.00$(56,541.00)$25,545.00
Income taxes7,1897,189
Depreciation and amortization22,72711,9477,65942,333
Interest (income)/expense, net-886718,76918,748
Share-based compensation1,7071,5645,8829,153
Impairment loss
Non-operating losses4256,0029637,390
Efficiency investments and other1,0232936,2287,544
Transaction costs1,468359721,899
Amortization of acquired intangibles included in equity in losses of affiliates7777
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 taxes42,18442,184
Depreciation and amortization93,64048,12632,679174,445
Interest expense/(income), net1,760-5667,47269,176
Share-based compensation7,8867,60729,56745,060
Impairment loss2,278312,309
Non-operating (gains)/losses-35425-128-5464-41017
Efficiency investments-22861,46026,21125,385
Transaction costs3009051,5332,738
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)PIRMUWSCORPELIMCoreLogic
Net income/(loss) from continuing operations$47,759$194,454$(208,443)$33,770
Income taxes-1622-1622
Depreciation and amortization94,86251,33728,901175,100
Interest expense, net3726975,85176,157
Share-based compensation6,3096,07922,78335,171
Impairment loss47,83447,834
Non-operating gains6,7256,27913,73826,742
Efficiency investments3,4716,48429,56239,517
Transaction costs6,4483593927,199
Amortization of acquired intangibles included in equity in earnings of affiliates307307
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 compensation0.140.11
Non-operating (gains)/losses(0.07)0.09
Efficiency investments and other0.100.09
Impairment loss0.01
Transaction costs0.030.02
Depreciation and amortization of acquired software and intangibles0.220.21
Unsolicited proposal related costs0.22
Income tax effect on adjustments(0.24)(0.13)
Adjusted EPS$$0.71
For the Year Ended December 31,
(Diluted income per share)20202019
Net income from continuing operations$3.28$0.42
Share-based compensation0.560.43
Non-operating (gains)/losses(0.51)0.33
Efficiency investments0.320.49
Impairment loss0.030.59
Transaction costs0.030.09
Depreciation and amortization of acquired software and intangibles0.850.89
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