CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today announced that it has completed the transformation of its appraisal management company (“AMC”) operations which was commenced in December 2018. The transformation program focused on greater use of data-driven analytics, automation of critical workflows and enhanced utilization of dedicated staff appraisers. The successful completion of the program and progressive launch of the enhanced service model is expected to increase client satisfaction by significantly reducing appraiser turn times and improving quality and productivity. Based on a strong pipeline of secured business and pending contract signings, CoreLogic’s AMC is expected to generate strong growth and significantly higher profit margins in 2020 and beyond.
“The successful completion of the AMC transformation is a major accomplishment and a significant milestone for CoreLogic. Our new AMC service model has been well received and an accelerating trend of client contract signings and adoption sets us up well for double-digit underlying organic growth in this business next year. In addition, building off of our forecasted 30% adjusted EBITDA margins for the second half of 2019, higher AMC margins should contribute to the Company achieving its full-year 30% adjusted EBITDA margin target in 2020,” said Frank Martell, President and Chief Executive Officer of CoreLogic. “In addition to powering accelerated organic growth trends and margin expansion, the completion of the AMC transformation has contributed to our high quality more diversified revenue base and provides clarity with regards to the financial trends in this business for 2020 and beyond.”
CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire, and protect their homes. For more information, please visit www.corelogic.com.
Safe Harbor / Forward Looking Statements
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the expected revenue growth, including increased organic growth trends, and margin expansion as a result of the completion of the AMC transformation and the expected operational and financial impact of the transformation. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include the risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K. These risks and uncertainties include but are not limited to: our ability to protect our information systems against data corruption, cyber-based attacks or network security breaches; limitations on access to or increase in prices for data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data; systems interruptions that may impair the delivery of our products and services; difficult conditions in the mortgage and consumer lending industries and the economy generally; risks related to the outsourcing of services and international operations; our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof; and impairments in our goodwill or other intangible assets. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
This press release contains certain references to adjusted EBITDA and adjusted EBITDA margins, non-GAAP financial measures. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest, taxes, depreciation and amortization, stock compensation, non-operating gains/losses and other adjustments. Disclosure of this non-GAAP measure is not in accordance with or a substitute for U.S. GAAP.
The Company believes that its presentation of and reference to adjusted EBITDA and adjusted EBITDA margins provides useful supplemental information to investors and management regarding the Company’s financial results. Other firms may calculate adjusted EBITDA differently than CoreLogic, which limits comparability between companies.