LUXEMBOURG, April 25, 2024 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the first quarter 2024. "I am very pleased with our first quarter performance. We generated $4.6 million of Adjusted EBITDA(1), marking our best quarterly performance since the third quarter of 2020, on $36.9 million of service revenue. We are winning meaningful new business and ramping 2023 sales wins on a lower cost base. In our Servicer and Real Estate segment, we are winning market share. In our Origination segment, we are increasing adoption of our solutions that help originators save money," said Chairman and Chief Executive Officer William B. Shepro. Mr. Shepro further commented, "We believe our financial results and sales wins demonstrate that we are not waiting for the default market to return to normal or for delinquency rates to rise to achieve growth. For the balance of 2024, we anticipate quarter over quarter Service revenue and Adjusted EBITDA(1) growth compared to the same quarters in 2023 as we continue to ramp sales wins and win new business on a lower cost base." First Quarter 2024 Highlights(2) Company, Corporate and Financial: Service revenue of $36.9 million was $0.2 million lower than the first quarter 2023 and $4.7 million higher than the fourth quarter 2023 Revenue of $39.5 million was the same as the first quarter 2023 and $5.3 million higher than the fourth quarter 2023 Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA")(1) of $4.6 million was $3.2 million better than the same period in 2023 and $4.4 million better than the fourth quarter 2023; first quarter 2024 Adjusted EBITDA(1) includes an estimated $0.6 million of net non-recurring gains compared to an estimated of $2.1 million of non-recurring gains in the first quarter 2023 Adjusted EBITDA(1) margin of 12.6% was considerably stronger than the first quarter of 2023 Adjusted EBITDA(1) margin of 4.0% and the fourth quarter 2023 Adjusted EBITDA(1) margin of 0.7% Gross profit margin of 33.4% was considerably stronger than the first quarter of 2023 gross profit margin of 22.9% and the fourth quarter 2023 gross profit margin of 26.2% Ended the quarter with $29.6 million of cash and cash equivalents, $15.0 million available under a revolving credit facility and $196.6 million of net debt(1) Business and Industry: Generated sales wins which we estimate represent potential annualized revenue on a stabilized basis of $6.3 million for the Servicer and Real Estate segment and $4.2 million for the Origination segment Ended the quarter with a weighted average sales pipeline between $36 million and $45 million of estimated potential revenue on a stabilized basis based upon forecasted probability of closing (comprising of between $24 million and $30 million in the Servicer and Real Estate segment and between $12 million and $15 million in the Origination segment) Improved Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together "Business Segments") to $10.9 million, or 29.5% of Service revenue, from $10.4 million, or 28.0% of Service revenue, in the first quarter 2023 and $8.2 million, or 25.6% of Service revenue, in the fourth quarter 2023 Industrywide foreclosure initiations were 5% lower for January and February of 2024 compared to the same period in 2023 (and 35% lower than the same pre-COVID-19 periods in 2019)(3) Industrywide foreclosure sales were 11% lower for January and February of 2024 compared to the same period in 2023 (and 52% lower than the same pre-COVID-19 periods in 2019)(3) Industrywide early-stage mortgage delinquencies (30-days late) decreased by 8% and borrowers who have missed two payments (60-days past due) decreased by 8% in February 2024 compared to December 2023(3) Industrywide mortgage origination volume increased by 8% for the first quarter 2024 compared to the first quarter 2023(4) Industrywide seriously delinquent mortgage rate (90+ day past due and loans in foreclosure) remain unchanged at 1.3% in February 2024 and December 2023 First Quarter 2024 Financial Results Service revenue of $36.9 million Loss before income taxes and non-controlling interests of $(8.4) million Net loss attributable to Altisource of $(9.2) million Adjusted EBITDA(1) of $4.6 million First Quarter 2024 Results Compared to the First Quarter 2023 (unaudited): (in thousands, except per share data) First Quarter 2024   First Quarter 2023   % Change Service revenue $ 36,891     $ 37,071     —   Revenue   39,469       39,461     —   Gross profit   12,304       8,504     45   Loss from operations   (548 )     (3,590 )   85   Adjusted operating income(1)   2,958       2,275     30   Loss before income taxes and non-controlling interests   (8,435 )     (11,338 )   26   Pretax loss attributable to Altisource(1)   (8,476 )     (11,418 )   26   Adjusted pretax loss attributable to Altisource(1)   (4,970 )     (5,553 )   10   Adjusted EBITDA(1)   4,632       1,472     215   Net loss attributable to Altisource   (9,198 )     (12,947 )   29   Adjusted net loss attributable to Altisource(1)   (5,598 )     (7,086 )   21   Diluted loss per share   (0.33 )     (0.70 )   53   Adjusted diluted loss per share(1)   (0.20 )     (0.38 )   47   Net cash used in operating activities   (2,237 )     (3,058 )   27   Net cash used in operating activities less additions to premises and equipment(1)   (2,237 )     (3,058 )   27                 Margins:             Gross profit / service revenue   33 %     23 %       Adjusted EBITDA(1) / service revenue   13 %     4 %                             First quarter 2023 loss before income taxes and non-controlling interests includes $3.2 million of debt amendment costs (no comparative amount for the first quarter of 2024). First quarter 2023 loss before income taxes and non-controlling interests includes $0.7 million of other income related to the change in fair value of warrant liability (no comparative amount for the first quarter of 2024). ________________________ (1) This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein (2) Applies to the first quarter 2024 unless otherwise indicated (3) Based on data from ICE's Mortgage Monitor report with data through February 2024 (4) Based on estimated number of loans originated as reported by the Mortgage Bankers Association's Mortgage Finance Forecast dated April 18, 2024     Forward-Looking Statements This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "plan," "estimate," "seek," "believe," "potential" or "continue" or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I "Risk Factors" in our Form 10-K filing with the Securities and Exchange Commission, as the same may be updated from time to time in our Form 10-Q filings. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to the COVID-19 pandemic, customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs, the timing of the expiration of such moratoriums and programs, and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our Credit Agreement, including the financial and other covenants contained therein, as well as Altisource's ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events. Webcast Altisource will host a webcast at 08:30 a.m. EDT today to discuss our first quarter. A link to the live audio webcast will be available on Altisource's website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days. About Altisource Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com. FOR FURTHER INFORMATION CONTACT: Michelle D. EstermanChief Financial Officer  T: (770) 612-7007  E:   ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share data) (unaudited)     Three months ended March 31,   2024   2023         Service revenue $ 36,891     $ 37,071   Reimbursable expenses   2,537       2,310   Non-controlling interests   41       80   Total revenue   39,469       39,461   Cost of revenue   27,165       30,957   Gross profit   12,304       8,504   Selling, general and administrative expenses   12,852       12,094           Loss from operations   (548 )     (3,590 ) Other income (expense), net:       Interest expense   (9,529 )     (6,760 ) Change in fair value of warrant liability   —       694   Debt amendment costs   —       (3,242 ) Other income (expense), net   1,642       1,560   Total other income (expense), net   (7,887 )     (7,748 )         Loss before income taxes and non-controlling interests   (8,435 )     (11,338 ) Income tax provision   (722 )     (1,529 )         Net loss   (9,157 )     (12,867 ) Net income attributable to non-controlling interests   (41 )     (80 )         Net loss attributable to Altisource $ (9,198 )   $ (12,947 )         Loss per share:       Basic $ (0.33 )   $ (0.70 ) Diluted $ (0.33 )   $ (0.70 )         Weighted average shares outstanding:       Basic   28,181       18,442   Diluted   28,181       18,442           Comprehensive loss:       Comprehensive loss, net of tax $ (9,157 )   $ (12,867 ) Comprehensive income attributable to non-controlling interests   (41 )     (80 )         Comprehensive loss attributable to Altisource $ (9,198 )   $ (12,947 )                 ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED BALANCE SHEETS(in thousands, except for per share data)(unaudited)     March 31, 2024   December 31, 2023         ASSETS Current assets: