Altisource Portfolio Solutions S.A. (ASPS) saw its loss narrow to $20.38 million, or $1.08 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $45.10 million, or $2.35 a share. On the other hand, adjusted net income for the quarter stood at $10.68 million, or $0.55 a share compared with $38.05 million or $1.86 a share, a year ago. Revenue during the quarter dropped 11.58 percent to $238.63 million from $269.89 million in the previous year period. Gross margin for the quarter contracted 851 basis points over the previous year period to 27.58 percent. Operating margin for the quarter stood at negative 6.13 percent as compared to a negative 14.80 percent for the previous year period.
Operating loss for the quarter was $14.63 million, compared with an operating loss of $39.95 million in the previous year period.
“In 2016, we continued our transformation from a mortgage services company generating the majority of revenue from Ocwen to a real estate and mortgage marketplace company offering many of the same innovative solutions to a diversified customer base. Because the sales cycle was longer than originally projected, our 22% non-Ocwen service revenue growth and earnings were lower than we anticipated. We are disappointed that we did not achieve our anticipated non-Ocwen revenue growth but the progress made in 2016 positions us for a higher rate of non-Ocwen growth in 2017 and beyond,” said Chief Executive Officer William B. Shepro.
Operating cash flow drops significantly
Altisource Portfolio Solutions S.A. has generated cash of $126.82 million from operating activities during the year, down 35.08 percent or $68.53 million, when compared with the last year. The company has spent $80.22 million cash to meet investing activities during the year as against cash outgo of $66 million in the last year.
The company has spent $76.63 million cash to carry out financing activities during the year as against cash outgo of $111.39 million in the last year period.
Cash and cash equivalents stood at $149.29 million as on Dec. 31, 2016, down 16.75 percent or $30.03 million from $179.33 million on Dec. 31, 2015.
Working capital remains almost stable
Working capital of Altisource Portfolio Solutions S.A. remained almost stable for the quarter at $176.54 million, when compared with the previous year period. Current ratio was at 2.19 as on Dec. 31, 2016, down from 2.37 on Dec. 31, 2015.
Debt comes down
Altisource Portfolio Solutions S.A. has recorded a decline in total debt over the last one year. It stood at $473.54 million as on Dec. 31, 2016, down 10.34 percent or $54.63 million from $528.18 million on Dec. 31, 2015. Total debt was 68.71 percent of total assets as on Dec. 31, 2016, compared with 72.55 percent on Dec. 31, 2015. Debt to equity ratio was at 7.61 as on Dec. 31, 2016, down from 10.10 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
