CoreLogic reported financial results for the quarter and full-year ended December 31, 2015.
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Fourth quarter revenues totaled $391 million, 13% higher than prior-year levels, as market share gains, organic growth and acquisition-related revenues more than offset unfavorable currency translation.
PI segment revenues rose 24% to $192 million driven principally by improved organic growth trends in property information and analytics and the launch of the VSG which more than offset unfavorable currency translation.
Benefits from market share and pricing gains drove RMW revenues up 4% year-over-year to $201 million despite flat U.S. mortgage loan application volumes, the impact of lower project-related document processing and retrieval revenues and the planned run-off of a non-core credit reporting service.
Operating income from continuing operations totaled $27 million for the fourth quarter compared with $36 million for the fourth quarter of 2014.
Benefits of previously discussed revenue gains and productivity were offset by VSG-related transaction as well as integration costs and investments in previously announced cost reduction programs aggregating $14 million.
Before the effect of these items, operating income from continuing operations increased by approximately $5 million.
Fourth quarter operating income margin was 7% compared with 10% for the fourth quarter of 2014. One-time items identified above negatively impacted fourth quarter 2015 operating income margin by about 350 basis points.
Fourth quarter net income from continuing operations totaled $38 million compared with $16 million in the same 2014 period.
The $21 million year-over-year increase was driven primarily by increased operating results and a $26 million after-tax gain on investments associated with the acquisition of RELS, which were partially offset by costs associated with the launch of the VSG and previously-announced cost reduction programs as outlined above, higher tax provisions and unfavorable currency translation.
Diluted EPS from continuing operations totaled $0.42 for the fourth quarter compared with $0.18 in the fourth quarter of 2014.
Adjusted EPS totaled $0.35, up 25% reflecting the positive impacts of growth, reduced operating expenses and share repurchases.
Adjusted EBITDA totaled $88 million in the fourth quarter compared with $84 million in the same prior year period.
The 4% year-over-year increase in adjusted EBITDA was principally the result of revenue growth and run rate benefits of previously-completed expense productivity programs which were partially offset by VSG-related transaction and integration costs, investments in ongoing cost reduction programs and unfavorable currency translation of approximately $2 million.
PI segment adjusted EBITDA totaled $47 million compared to $48 million in 2014, as higher revenues were offset by unfavorable currency translation of $2 million and investments in cost efficiency and innovation.
RMW adjusted EBITDA was $50 million, consistent with 2014 levels, as the benefits of share gains in tax, credit and flood zone determination services, cost management and improved pricing were offset by investment in cost efficiency programs, lower document processing and retrieval revenues and the run-off of a non-core credit reporting service.
Full-year highlights
Revenues up 9% to $1,528 million driven by double-digit growth in the Property Intelligence (PI) segment and market outperformance in the Risk Management and Work Flow (RMW) segment and partially offset by $23 million in unfavorable foreign currency translation.
Operating income from continuing operations up 20% to $203 million reflecting the benefits of revenue growth and cost management.
Net income from continuing operations up 43% to $128 million with growth in operating results, a gain on investments related to the acquisition of RELS, LLC (RELS) and lower interest costs partially offset by higher taxes and unfavorable currency translation.
Diluted EPS from continuing operations up 46% to $1.42 per share. Adjusted EPS up 43% to $1.90.
Adjusted EBITDA up 17% to $423 million including $8 million unfavorable FX; adjusted EBITDA margin of 28%.
Completed 2015 share repurchase program (2.5 million shares repurchased). ■