CoreLogic Earnings Tumble as Originations Contract
Decreasing mortgage origination volumes were the main driver that contributed to a 6% drop in CoreLogic's first-quarter earnings from a year ago.
The Irvine, Calif.-based company reported revenue of $310.4 million for the first quarter, compared to $331.3 million during the same time period last year.
Operating income decreased year-over-year by 71% to $13.7 million. The decline was due to lower mortgage volumes and costs related to the company's strategic business plan that included acquiring insurance software provider Marshall & Swift Boeckh and DataQuick.
However, due to the acquisitions, CoreLogic reported market share gains in its technology and processing solutions as well as growth in insurance solutions and international operations to offset the estimated 60% contraction in mortgage origination volumes.
CoreLogic had a net loss from continuing operations of $3.9 million in the first quarter, compared to a $31.6 million profit a year earlier. Diluted earnings per share were 17 cents.
CoreLogic's total debt through the first quarter rose to approximately $1.5 billion with the increase attributed to the acquisitions.
"We continued to take aggressive actions to transform CoreLogic into a higher-growth, higher-margin company despite challenges by the troughing of the mortgage market," said Frank Martell, chief financial officer of CoreLogic, in a news release.
"Over the balance of 2014, we will continue to invest in areas of strategic growth and operational excellence which we believe will provide sustainable, long-term value creation."