CoreLogic reported revenues of $1.788 billion for 2018, down 3 percent as organic growth and benefits of acquisitions weren't enough to offset an estimated 15 percent drop in U.S. mortgage origination unit volumes and lower appraisal management company revenues.
The company had U.S. mortgage loan origination unit volumes expected to decline around 5 percent from 2018 levels. Operating income from continuing operations of $223 million, was down 7 percent as cost productivity benefits and favorable revenue mix partially offset mortgage market headwinds in the U.S. Also, increased the amount of money reinvested in the business and took an $8 million non-cash impairment charge related to the planned exit of non-core software units including the loan origination platform.
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Frank Martell[/caption]
Net income from continuing operations of $122 million, down 18 percent , reflecting a one-time benefit of $38 million in the 2017 tax provision, attributable to the U.S. Tax Cuts and Jobs Act. Diluted EPS from continuing operations of $1.49, down 15 percent. Adjusted EPS of $2.72, up 15 percent.
Adjusted EBITDA of $493 million, up 3 percent; adjusted EBITDA margin of 28 percent. Repurchased 2.3 million shares, or 3 percent of outstanding shares, for $109 million.
In the fourth quarter, Corelogic reported revenues of $403 million, down 11 percent, driven by an estimated 25 percent drop in U.S. mortgage volumes and lower AMC revenues. Operating income from continuing operations of $29 million, down 56 percent, on lower mortgage market volumes, elevated investment spending, and the above described 2018 non-cash impairment charge.
Net income from continuing operations of $13 million, down from $65 million reflecting the effects of U.S. mortgage market headwinds, the 2017 tax benefit and the 2018 non-cash impairment charge. Adjusted EBITDA of $103 million, compared to $117 million in 2017.
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“We reduced our costs significantly and drove productivity. In addition, we continued to scale our core operations, expanded our international and insurance business, accelerated the transformation of our [appraisal management company] and initiated the exit of certain non-core legacy units," said Frank Martell, president and chief executive officer of CoreLogic. “Throughout 2018, we reinvested in our business with a focus on building our core capabilities in data and technology, which we expect will be a foundation for future growth and margin expansion.”
Fourth quarter reported revenues of $403 million, compared with $454 million in the same period one year earlier. During the quarter, U.S. mortgage market volumes declined by an estimated 25 percent on lower refinancing activity and home sales.
Property Intelligence and Risk Management Solutions revenues fell 7 percent from 2017 levels to $168 million, due mainly to lower contributions from weather-related natural hazard solutions, and the impact of lower U.S. mortgage loan volumes.
Underwriting and Workflow Solutions revenue was $239 million, down 14 percent from 2017 levels, as benefits from market outperformance and higher collateral valuation platform revenues partially offset mortgage market unit declines and lower appraisal management company volumes.
Operating income from continuing operations was $29 million for the fourth quarter, compared with $65 million in 2017. Lower operating income was attributable to the impact of a 25 percent decline in origination unit volumes, lower weather-related natural-hazard revenues, larger investment in the business, as well as the 2018 non-cash impairment charge.
Fourth quarter net income from continuing operations was $13 million, a decline of $52 million when compared to 2017. The decline was primarily driven by U.S. mortgage market headwinds, the 2017 tax benefit and the 2018 non-cash impairment charge. Diluted EPS from continuing operations was $0.16 for the fourth quarter of 2018 compared with $0.78 in 2017. Adjusted EPS was $0.48 compared with $0.55 in the fourth quarter of 2017.
Adjusted EBITDA totaled $103 million in the fourth quarter compared with $117 million in the same prior year period. The year-over-year reduction in adjusted EBITDA resulted principally from lower revenues and higher levels of investment on data and technology capabilities, partially offset by cost management benefits. Property Intelligence and Risk Management segment adjusted EBITDA totaled $41 million compared to $50 million in 2017. Underwriting and Workflow Solutions adjusted EBITDA was $71 million, in-line with the prior year total of $72 million.
