LUXEMBOURG, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") ASPS , a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the third quarter 2024. "We had another solid quarter, demonstrating our resilience in a challenging market. We grew Service revenue both sequentially and year-over-year despite a 15% decline in serious delinquency rates, a 7% decline in foreclosure initiations and a 14% decline in foreclosure sales through August this year compared to the same period last year (3) . For the quarter, we generated $38.2 million in Service revenue, a $4.0 million or 11.8% increase over the same period last year. This growth primarily reflects sales wins and represents our strongest quarterly Service revenue performance in twelve quarters. Compared to last quarter, Service revenue grew by $1.3 million or 3.5%, primarily from ramping sales wins," said Chairman and Chief Executive Officer William B. Shepro. Mr. Shepro further commented, "With the recent launch and on-going ramp of our Renovation business and sales wins, we are diversifying our revenue streams and customer base and positioning the Company for further growth." Third Quarter 2024 Highlights (2) Company, Corporate and Financial : Third quarter Service revenue of $38.2 million was $4.0 million, or 11.8%, higher than the same quarter of 2023 Third quarter Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") (1) of $3.6 million was $2.8 million better than the same quarter of 2023 from higher Service revenue, lower Corporate costs and margin expansion in the Origination segment, partially offset by approximately $1.2 million of higher SG&A costs in the Servicer and Real Estate segment from legacy indemnity claims and bad debt expense Third quarter Adjusted EBITDA (1) margin of 9.5% was considerably stronger than the 2.6% Adjusted EBITDA (1) margin in the same quarter of 2023 Third quarter Adjusted EBITDA (1) in Corporate and Others of $(7.2) million was $1.5 million better than the same quarter of 2023 Third quarter gross profit margin of 31.6% was considerably stronger than the 21.1% gross profit margin in the same quarter of 2023 Ended the quarter with $28.3 million of cash and cash equivalents, $15.0 million available under a revolving credit facility and $202.3 million of net debt (1) Business and Industry : Improved Adjusted EBITDA (1) in the Servicer and Real Estate and Origination segments (together "Business Segments") to $10.8 million, or 28.3% of Service revenue, from $9.5 million, or 28.0% of Service revenue, in the same quarter of 2023 Generated sales wins which we estimate represent potential annualized revenue on a stabilized basis of $1.7 million for the Servicer and Real Estate segment and $4.9 million for the Origination segment Ended the quarter with a weighted average sales pipeline between $32 million and $40 million of estimated potential revenue on a stabilized basis based upon forecasted probability of closing (comprising of between $21 million and $26 million in the Servicer and Real Estate segment and between $11 million and $14 million in the Origination segment) Industrywide foreclosure initiations were 7% lower for the eight months ended August 31, 2024 compared to the same period in 2023 (and 34% lower than the same pre-COVID-19 periods in 2019) (3) Industrywide foreclosure sales were 14% lower for the eight months ended August 31, 2024 compared to the same period in 2023 (and 54% lower than the same pre-COVID-19 periods in 2019) (3) Industrywide mortgage origination volume increased by 6% for the third quarter 2024 compared to the third quarter 2023 (4) Industrywide seriously delinquent mortgage rate (90+ day past due and loans in foreclosure) declined to 1.2% in August 2024 compared to 1.3% in December 2023 (3) Third Quarter 2024 Financial Results Service revenue of $38.2 million Income from operations of $1.1 million Loss before income taxes and non-controlling interests of $(8.5) million Net loss attributable to Altisource of $(9.4) million Adjusted EBITDA (1) of $3.6 million Third Quarter 2024 Results Compared to the Third Quarter 2023 (unaudited): ________________________ N/M - not meaningful. Third quarter and year-to-date 2023 loss before income taxes and non-controlling interests includes $0.1 million and $3.4 million. respectively, of debt amendment costs (no comparative amount for the third quarter and year-to-date 2024). Third quarter and year-to-date 2023 loss before income taxes and non-controlling interests includes $2.2 million and $1.1 million, respectively, of other income related to the change in fair value of warrant liability (no comparative amount for the third quarter and year-to-date 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 third 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. Esterman Chief Financial Officer T: (770) 612-7007 E: Michelle.Esterman@altisource.com ALTISOURCE PORTFOLIO SOLUTIONS S.A. NON-GAAP MEASURES (in thousands, except per share data) (unaudited) Adjusted operating income (loss), pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss per share, net cash used in operating activities less additions to premises and equipment, Adjusted EBITDA, Business Segments Adjusted EBITDA and net debt, which are presented elsewhere in this earnings release, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource's performance a