Altisource Portfolio Solutions SA (ASPS) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Altisource Second Quarter 2023 Earnings Conference Call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加 Altisource 2023 年第二季財報電話會議。 （操作員說明）

Please be advised that today's conference call is being recorded. I would now like to hand the conference call over to your speaker today, Michelle Esterman, Chief Financial Officer. Please go ahead.

請注意，今天的電話會議正在錄音。我現在想將電話會議交給今天的發言人、財務長米歇爾‧埃斯特曼 (Michelle Esterman)。請繼續。

Thank you, operator. We first want to remind you that the earnings release, Form 10-Q and quarterly slides are available on our website at www.altisource.com. These provide additional information investors may find useful. Our remarks today include forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ.

謝謝你，接線生。首先我們想提醒您，收益報告、10-Q 表格和季度投影片可在我們的網站 www.altisource.com 上取得。這些提供了投資者可能認為有用的額外資訊。我們今天的言論包括前瞻性陳述，其中涉及許多風險和不確定性，可能導致實際結果有所不同。

In addition to the usual uncertainty associated with forward-looking statements, the continuing impact of government and servicer responses to the COVID-19 pandemic, together with the current economic environment, make it extremely difficult to predict the future state of the economy and the industries in which we operate as well as the potential impact on Altisource.

除了與前瞻性陳述相關的通常的不確定性之外，政府和服務機構對 COVID-19 大流行的反應的持續影響，加上當前的經濟環境，使得預測經濟和行業的未來狀況變得極其困難我們經營的業務以及對Altisource 的潛在影響。

Please review the forward-looking statements section in the company's earnings release and quarterly slides as well as the risk factors contained in our 2022 Form 10-K, which describe factors that may lead to different results. We undertake no obligation to update statements, financial scenarios and projections previously provided or provided herein as a result of a change in circumstances, new information or future events.

請查看公司收益報告和季度幻燈片中的前瞻性陳述部分以及我們 2022 年 10-K 表格中包含的風險因素，其中描述了可能導致不同結果的因素。我們不承擔因情況、新資訊或未來事件的變更而更新先前提供或本文提供的報表、財務情景和預測的義務。

During this call, we will present both GAAP and non-GAAP financial measures. In our earnings release and quarterly slides, you will find additional disclosures regarding the non-GAAP measures. A reconciliation of GAAP to non-GAAP measures is included in the appendix to the quarterly slides.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。在我們的收益發布和季度幻燈片中，您會發現有關非公認會計原則措施的其他揭露。季度投影片的附錄包含了 GAAP 與非 GAAP 指標的調整表。

Joining me for today's call is Bill Shepro, our Chairman and Chief Executive Officer. I'll now turn the call over to Bill.

與我一起參加今天電話會議的是我們的董事長兼執行長 Bill Shepro。我現在將電話轉給比爾。

Thanks, Michelle, and good morning. I'll begin on Slide 4. Our adjusted EBITDA performance continues to improve over 2022. Second quarter adjusted EBITDA was 47% better than the same period in 2022, and year-to-date adjusted EBITDA was 81% better or $8.7 million. Based on our current forecast, we anticipate roughly breakeven adjusted EBITDA for the third quarter and positive adjusted EBITDA for the fourth quarter and full year.

謝謝，米歇爾，早安。我將從投影片 4 開始。我們的調整後 EBITDA 業績在 2022 年繼續改善。第二季調整後 EBITDA 比 2022 年同期好 47%，年初至今調整後 EBITDA 好 81%，即 870 萬美元。根據我們目前的預測，我們預計第三季調整後的 EBITDA 將大致達到損益平衡，第四季和全年調整後的 EBITDA 為正。

For our second quarter adjusted EBITDA was impacted by an estimated $900,000 from certain unexpected nonrecurring items, we remain ahead of our adjusted EBITDA plan for the first half of the year. Despite improving second quarter adjusted EBITDA compared to the same period in 2022, interest expense from the higher interest rate environment and our amended term loans contributed to the greater second quarter 2023 adjusted net loss.

由於我們第二季調整後的 EBITDA 受到某些意外非經常性項目估計 90 萬美元的影響，我們仍然領先於今年上半年調整後的 EBITDA 計畫。儘管與 2022 年同期相比，第二季調整後 EBITDA 有所改善，但較高利率環境和我們修訂後的定期貸款帶來的利息支出導致 2023 年第二季調整後淨虧損更大。

Second quarter service revenue was lower than the same quarter last year, primarily from the exit of a low-margin customer care business in the fourth quarter of 2022, the decline in the customer's propensity to order services in 2 of our lower-margin default-related businesses and unexpected temporary delays in certain California foreclosures. We believe those temporary foreclosure holds are now behind us and that the associated revenue is largely deferred and not lost. We continue to position Altisource to take advantage of what we see as significant potential opportunities in the residential mortgage default market over the coming years as the market continues to normalize and consumers face financial stress.

第二季度服務收入低於去年同季度，主要是由於2022年第四季度低利潤客戶服務業務的退出，客戶在我們的2個低利潤違約中訂購服務的傾向下降——相關業務以及加州某些喪失抵押品贖回權的意外暫時延誤。我們相信，那些暫時取消抵押品贖回權的情況現已成為過去，相關收入在很大程度上被推遲而不是損失。隨著市場繼續正常化和消費者面臨財務壓力，我們將繼續讓 Altisource 充分利用未來幾年住宅抵押貸款違約市場的重大潛在機會。

As you can see on Slide 5, our sales pipeline and wins in both of our segments remain strong, and we continue to aggressively manage our expenses. Our consolidated weighted average pipeline at the end of the second quarter -- excuse me, our consolidated weighted average sales pipeline at the end of the second quarter was an estimated $63 million of annual revenue on a stabilized basis, representing 47% of our annualized second quarter 2023 revenue. We are also winning new business. Since last quarter, we've won business that we estimate will generate $18.6 million of annual revenue on a stabilized basis. The July win of $12.8 million reflects a new asset management client that we estimate will generate $3 million to $5 million per year in adjusted EBITDA across Hubzu and most of our other default solutions. During the quarter, we continued to onboard and grow sales wins from 2022 and 2023, which combined, are now at $13 million of annualized revenue run rate. Finally, from a cost perspective, in July, we began to implement a company-wide cost reduction plan that we estimate will reduce annual cash operating expenses by $13.5 million once complete.

正如您在幻燈片 5 中看到的那樣，我們的銷售管道和兩個細分市場的勝利仍然強勁，我們繼續積極管理我們的費用。我們第二季末的綜合加權平均銷售管道——對不起，我們第二季末的綜合加權平均銷售管道在穩定的基礎上估計年收入為 6,300 萬美元，占我們第二季度年化收入的 47% 2023 年季度營收。我們還贏得了新業務。自上個季度以來，我們贏得了業務，預計將穩定地產生 1860 萬美元的年收入。 7 月贏得的 1,280 萬美元反映出一個新的資產管理客戶，我們估計該客戶每年將為 Hubzu 和我們大多數其他預設解決方案帶來 300 萬至 500 萬美元的調整後 EBITDA。在本季度，我們繼續增加 2022 年和 2023 年的銷售收入，目前年化收入運行率為 1,300 萬美元。最後，從成本角度來看，7 月，我們開始實施全公司範圍的成本削減計劃，預計一旦完成，年度現金營運費用將減少 1,350 萬美元。

Turning to Slide 6 in our Service and Real Estate segment. Second quarter adjusted EBITDA was $200,000 or 2% lower than the same quarter in 2022. We estimate that the unexpected temporary delays in certain California foreclosures deferred $500,000 in adjusted EBITDA to subsequent quarters. Despite this impact, second quarter adjusted EBITDA margins improved to 30% from 26% compared to the second quarter of last year. The margin improvement reflects product mix and cost reduction measures, partially offset by the revenue impact from those delays. We experienced a decline in service revenue, primarily from the exit of a low-margin customer care business in the fourth quarter of 2022, the decline in the customer's propensity to order services in 2 of our lower-margin, default-related businesses and the temporary foreclosure holds. We believe the foreclosure holds are now behind us and that the associated revenue is largely deferred and not lost. For 2023, we anticipate that our countercyclical Servicer and Real Estate segment will have higher adjusted EBITDA compared to 2022, driven by revenue mix and efficiency initiatives.

轉向我們的服務和房地產部分的幻燈片 6。第二季調整後 EBITDA 為 20 萬美元，比 2022 年同季低 2%。我們估計，加州某些喪失抵押品贖回權的意外暫時延遲導致調整後 EBITDA 推遲到後續季度，其中 50 萬美元。儘管有這種影響，第二季調整後 EBITDA 利潤率仍從去年第二季的 26% 提高至 30%。利潤率的提高反映了產品組合和成本削減措施，但部分被這些延誤造成的收入影響所抵消。我們的服務收入下降，主要是由於 2022 年第四季度低利潤客戶服務業務的退出、客戶在我們的 2 個低利潤、違約相關業務中訂購服務的傾向下降以及暫時取消抵押品贖回權。我們相信取消抵押品贖回權的情況現已成為過去，相關收入在很大程度上被推遲而不是損失。到 2023 年，在收入組合和效率舉措的推動下，我們預計我們的反週期服務商和房地產部門的調整後 EBITDA 將高於 2022 年。

Moving to Slide 7 and our Servicer and Real Estate sales pipeline and wins. While we wait for the default market to recover, we continue to build our pipeline and are winning new business. At the end of the second quarter, our weighted average pipeline totaled $38.6 million of annual revenue on a stabilized basis. In April through July, we won business that we estimate will generate $15.7 million in annualized revenue once stabilized. One of the more notable wins that I mentioned earlier was the July signing of a master services agreement to provide REO asset management, brokerage, auction valuation and field services on a portion of the Servicer's REO portfolio. On a stabilized basis, we estimate that this new business represents $12.8 million in annual revenue and $3 million to $5 million per year in adjusted EBITDA. We anticipate that we will begin to receive referrals in the third quarter and reach revenue and earnings stabilization by the middle of 2024, if not sooner.

轉向幻燈片 7 以及我們的服務商和房地產銷售管道並取得勝利。在我們等待預設市場復甦的同時，我們繼續建造管道並贏得新業務。截至第二季末，我們的加權平均管道年收入總額穩定為 3,860 萬美元。 4 月至 7 月，我們贏得了業務，預計穩定後將產生 1,570 萬美元的年化收入。我之前提到的最引人注目的勝利之一是 7 月簽署了一項主服務協議，為服務商 REO 投資組合的一部分提供 REO 資產管理、經紀、拍賣估值和現場服務。在穩定的基礎上，我們估計這項新業務的年收入為 1,280 萬美元，調整後的 EBITDA 每年為 300 萬至 500 萬美元。我們預計，我們將在第三季開始收到推薦，並在 2024 年中期（甚至更早）實現收入和收益穩定。

Turning to the macroeconomic environment on Slide 8. There are several indicators that consumers are financially stressed, which could be precursors to a rise in mortgage delinquency rates. Inflation, which reached a 4-year high in June 2022, has eroded the American consumers' purchasing power. As you can see on the graphs, auto and credit card delinquencies continue to rise and 30-year fixed interest mortgage rates remain more than double from pandemic lows, reducing home affordability. Average personal savings rates, which were at 26% in March of '21, have declined to 4.6% in May 2023. Additionally, in 2022 and 2023, 37% of workers have taken a loan, early withdrawal and/or hardship withdrawal from their 401(k) or similar plan, or IRA, with both years marking an all-time high. While 30-plus day mortgage delinquencies are close to historical lows, we believe that there are early signs of stress. In June, the number of U.S. mortgages that are delinquent by one payment increased by 2.2% and those that are behind by 2 payments increased by 1.7% from May. Should borrowers remain under financial stress or the economy enters a recession, we anticipate that mortgage delinquency rates will rise.

轉向幻燈片 8 中的宏觀經濟環境。有多項指標表明消費者面臨財務壓力，這可能是抵押貸款拖欠率上升的先兆。 2022年6月，通貨膨脹達到四年來的最高點，侵蝕了美國消費者的購買力。正如您在圖表中看到的那樣，汽車和信用卡拖欠率繼續上升，30 年期固定利率抵押貸款利率仍是疫情低點的兩倍以上，從而降低了住房負擔能力。平均個人儲蓄率在2021 年3 月為26%，到2023 年5 月已下降至4.6%。此外，在2022 年和2023 年，37% 的工人從自己的家庭中申請了貸款、提前提款和/或困難提款。401(k) 或類似計劃，或 IRA，這兩年都創下歷史新高。雖然超過 30 天的抵押貸款拖欠率接近歷史低點，但我們認為壓力已經出現了早期跡象。 6月份，拖欠一筆還款的美國抵押貸款數量較5月增加了2.2%，拖欠2筆付款的美國抵押貸款數量增加了1.7%。如果借款人仍面臨財務壓力或經濟衰退，我們預期抵押貸款拖欠率將會上升。

Turning to Slide 9 and our origination segment. In a difficult origination environment, we performed well with second quarter adjusted EBITDA, 44% better than the same period in 2022 despite the $400,000 negative impact from the settlement of a nonrecurring litigation matter. Second quarter service revenue was 13% higher than the first quarter and 1% higher compared to the second quarter last year. Service revenue growth reflects the progress we are making in onboarding customer wins from our newer Lenders One products. As you can see on the bottom left of the slide, our second quarter revenue growth compared to the same quarter in 2022 reflects significantly better than market performance from the Lenders One business as we gain traction with our solutions that are designed to help our members save money. Our performance was partially offset by our other origination businesses, which performed largely in line with the refi market. We anticipate the Originations segment's performance to improve as the year progresses from sales momentum, efficiency initiatives and product maturity for our newer reseller offerings. For the full year, we anticipate the Originations segment to generate flat to modest year-over-year revenue growth and adjusted EBITDA improvement despite the MBA's forecasted 22% annual decline in 2023 origination volume.

轉向幻燈片 9 和我們的原創部分。在困難的發起環境中，我們表現良好，第二季調整後 EBITDA 比 2022 年同期高出 44%，儘管非經常性訴訟事項的和解造成了 40 萬美元的負面影響。第二季服務營收比第一季成長13%，比去年第二季成長1%。服務收入的成長反映了我們在透過新的 Lenders One 產品贏得客戶方面所取得的進展。正如您在幻燈片左下角所看到的，與2022 年同季相比，我們第二季的營收成長反映出Lenders One 業務的表現明顯優於市場表現，因為我們的解決方案旨在幫助我們的會員節省開支。我們的業績被我們的其他發起業務部分抵消，這些業務的表現基本上與再融資市場一致。我們預計，隨著新經銷商產品的銷售動能、效率措施和產品成熟度的提高，起源部門的業績將隨著今年的進展而改善。就全年而言，儘管 MBA 預計 2023 年的原創業務量將同比下降 22%，但我們預計原始業務部門的收入將實現持平至溫和的同比收入增長，調整後的 EBITDA 也將有所改善。

Slide 10 provides a summary of our origination segment sales pipeline and wins. Our weighted average sales pipeline as of June 30 is strong at $24.6 million of annual revenue on a stabilized basis. This includes $9 million in weighted revenue opportunities related to pricing proposals to Lenders One members and prospects for our newer reseller business. We closed $2.9 million in estimated sales wins during the quarter from our 2022 and first half of the year '23 sales wins, we recognized approximately $2.9 million in revenue in the second quarter or $11.5 million of revenue on an annualized basis. This is significantly up from the $9.4 million on an annualized basis as of the first quarter.

投影片 10 總結了我們的原創細分市場銷售管道和成果。截至 6 月 30 日，我們的加權平均銷售管道強勁，年收入穩定在 2,460 萬美元。這包括與 Lenders One 會員的定價建議相關的 900 萬美元加權收入機會以及我們新經銷商業務的前景。從2022 年和23 年上半年的銷售業績來看，本季我們預計實現了290 萬美元的銷售業績，我們在第二季度確認了約290 萬美元的收入，或按年化計算的收入為1150萬美元。這比第一季以年化計算的 940 萬美元顯著增加。

Moving to our corporate segment. We continue to maintain cost discipline. Second quarter adjusted EBITDA loss in the corporate segment was $2.3 million or 19% better than the same quarter in 2022. For the year, we anticipate corporate costs, excluding interest expense and onetime debt amendment costs to be lower compared to 2022. This reflects the additional cost-cutting initiatives that we began implementing in July. To conclude, our second quarter adjusted EBITDA was 47% better than the same period in 2022, despite the estimated $900,000 impact from the temporary foreclosure holds and nonrecurring litigation settlement. Our sales pipeline and wins remain strong, and we continue to aggressively manage our expenses. We believe we will begin to recover from the California foreclosure holds in the third quarter and are well positioned in '23 to return to year-over-year revenue growth and generate positive adjusted EBITDA. We anticipate roughly breakeven adjusted EBITDA for the third quarter and positive adjusted EBITDA for the fourth quarter and full year, positioning the company for significantly stronger performance in 2024 with potential revenue and adjusted EBITDA upside from the significant number of servicing portfolios reported to be in the market for sale, if acquired, if acquired by our customers. I'll now open up the call for questions. Operator?

轉向我們的企業部門。我們繼續維持成本紀律。企業部門第二季調整後 EBITDA 虧損為 230 萬美元，比 2022 年同季好 19%。我們預計今年的企業成本（不包括利息費用和一次性債務修正成本）將低於 2022 年。這反映了我們於7 月開始實施的其他成本削減措施。總而言之，儘管暫時取消抵押品贖回權和非經常性訴訟和解預計會產生 90 萬美元的影響，但我們第二季調整後的 EBITDA 比 2022 年同期高出 47%。我們的銷售管道和勝利仍然強勁，我們繼續積極管理我們的費用。我們相信，我們將在第三季開始從加州喪失抵押品贖回權的情況中恢復過來，並在 23 年做好準備，恢復同比收入增長並產生正的調整後 EBITDA。我們預計第三季調整後EBITDA 大致達到損益平衡，第四季和全年調整後EBITDA 為正，這使該公司在2024 年的業績將顯著增強，據報道，該公司擁有大量服務組合，具有潛在收入和調整後EBITDA 上升空間。市場出售（如果收購），如果被我們的客戶收購。我現在開始提問。操作員？

(Operator Instructions)

（操作員說明）

Our first call question comes from Mike Grondahl of Northland Securities.

我們的第一通電話問題來自北國證券的麥克·格隆達爾。

Bill, first question, just on the Hubzu inventory levels, when would you think that's going to inflect higher?

Bill，第一個問題，關於 Hubzu 庫存水平，您認為什麼時候會上漲？

Yes. So Mike, I don't think our view has changed. I think as these new foreclosures work through the system, it starts to stabilize the middle of next year. Right now, our inventory is holding relatively flat because most of our business is REO-related. As those new foreclosures work through that inventory, we would expect to see -- sorry, work through that process, we would expect to see it grow.

是的。所以麥克，我認為我們的觀點沒有改變。我認為，隨著這些新的取消抵押品贖回權透過系統發揮作用，它將在明年年中開始穩定下來。目前，我們的庫存保持相對平穩，因為我們的大部分業務都與 REO 相關。當這些新的取消抵押品贖回權通過該庫存時，我們預計會看到 - 抱歉，通過該過程，我們預計會看到它的增長。

Got it. So if Hubzu inventory is sort of inflecting middle of next year, is it fair to assume sort of your revenue in flex middle of next year also? Is that the right way to think about it?

知道了。因此，如果 Hubzu 庫存在明年年中出現某種程度的變化，那麼假設您的收入在明年年中也出現彈性變化是否公平？這是正確的思考方式嗎？

Yes. I mean I would say, Mike, look, we're very focused on the revenue side on new sales in addition to the market recovering. And so while we anticipate the market is going to recover, we want to make sure we're out there selling as hard as we can and winning new business in the meantime. And based upon revenue growth that we anticipate will take place throughout the rest of this year and revenue growth into next year. From our core business and our new sales wins, we think we can continue to improve our earnings quite significantly.

是的。我的意思是，我想說，麥克，你看，除了市場復甦之外，我們還非常關注新銷售的收入方面。因此，雖然我們預計市場將會復甦，但我們希望確保我們盡可能努力銷售，同時贏得新業務。基於我們預計今年剩餘時間將出現的收入成長以及明年的收入成長。從我們的核心業務和新的銷售業績來看，我們認為我們可以繼續大幅提高我們的收益。

In terms of the new foreclosures, clearly, Hubzu is our most profitable business and as the foreclosure initiations work through the process and become REO that represents more growth for us.

就新的止贖而言，顯然，Hubzu 是我們最賺錢的業務，隨著止贖啟動的完成，並成為代表我們更多成長的 REO。

Great. That client -- the asset management client, I think, representing $12.8 million, looked like a big win in July, and it's going to drive, I think you said $3 million to $5 million of annualized EBITDA. Are there more out there like that? I mean is that something you can replicate and kind of run with a little bit?

偉大的。我認為那個客戶——資產管理客戶，代表了 1280 萬美元，在 7 月看起來像是一個巨大的勝利，而且它將推動，我想你說的是 300 萬到 500 萬美元的年化 EBITDA。還有更多這樣的嗎？我的意思是你可以複製並運行一點東西嗎？

Yes. So Mike, first of all, we're really excited about that opportunity. We're working very hard with this customer to get launched, hopefully, in September is our plan. In terms of other opportunities, we're working on some other opportunities as we speak. That look like they would be next year launch dates, not this year, should we be successful in winning those opportunities. So we do have a couple of opportunities we think that could be -- represent more growth for Hubzu and some of our related services in a manner similar to this opportunity. But of course, until you win the deals, it's not done, but we're pretty excited there.

是的。麥克，首先，我們對這個機會感到非常興奮。我們正在與該客戶非常努力地合作，希望我們的計劃是在 9 月推出。就其他機會而言，我們正在研究其他一些機會。如果我們成功贏得這些機會，那麼看起來它們將是明年的發布日期，而不是今年。因此，我們確實有一些我們認為可能的機會——以與此機會類似的方式代表 Hubzu 和我們的一些相關服務的更多成長。當然，在你贏得交易之前，一切都還沒有結束，但我們對此感到非常興奮。

And then just lastly, the July cost reduction with the $13.5 million of annual savings, I guess, talk about that for a moment. Is that kind of to set you up for '24 and just kind of pushing that margin and profitability kind of guaranteeing it in '24? I guess help me understand the July cost reduction.

最後，我想，我們暫時討論一下 7 月的成本削減，每年節省 1,350 萬美元。這是否是為了讓您為 24 年做好準備，並推動利潤率和盈利能力在 24 年得到保證？我想可以幫助我了解七月的成本削減。

Yes, sure. So a couple of things. One is I think we'll roughly be at $1 million a month of savings beginning, Michelle, in the month of September. Is that right?

是的，當然。有幾件事。米歇爾，我認為從 9 月開始，我們每月大約可以節省 100 萬美元。是對的嗎？

That's right.

這是正確的。

And in terms of look, I think, Mike, we need -- we were, at one point, pre-pandemic, a much larger company, and we need to make sure that our costs reflect the size of the company today. And we also want to make sure we have very significant operating leverage as the market comes back. And I think by taking these actions today, we help ensure we have stronger operating leverage going forward. And depending on the timing of the market -- depending upon the timing of the market for when it recovers, we have more flexibility. And so thought it was an important step to take and proud of the work the team has done to help us identify those cost savings and get those implemented quickly.

就外觀而言，我認為，麥克，我們需要——在大流行之前，我們曾經是一家更大的公司，我們需要確保我們的成本反映了公司今天的規模。我們也希望確保隨著市場的復甦，我們擁有非常顯著的營運槓桿。我認為，透過今天採取這些行動，我們有助於確保我們未來擁有更強大的營運槓桿。根據市場的時機—取決於市場復甦的時機，我們有更大的彈性。因此，我們認為這是重要的一步，我們為團隊所做的工作感到自豪，幫助我們確定這些成本節約並迅速實施。

Our next question comes from Raj Sharma of B. Riley Financial.

我們的下一個問題來自 B. Riley Financial 的 Raj Sharma。

Bill and Michelle, I just wanted to understand the foreclosure holds and the impact on the 2Q revenues. Can you give us some more color on that? When did they come off? Do you -- are they -- were they done entirely in 2Q and no impact in 3Q? And if there are any such similar holds in other states?

比爾和米歇爾，我只是想了解取消抵押品贖回權以及對第二季收入的影響。您能給我們更多的資訊嗎？他們什麼時候下來的？您是否——他們是——他們完全在第二季度完成並且對第三季度沒有影響嗎？其他州是否也有類似的保留？

Sure. So one of our customers agreed with the state of California in the second quarter to put their pending foreclosures in that state on hold for roughly 60 days, but it didn't all start at one. So it was primarily a second quarter event that impacted primarily 2 of our businesses, our foreclosure trustee business and our title business that are both very high-margin services for us. We saw those holds start to come off at the end of June. And now we believe they're fully off, and we're back in business in California. That revenue was largely -- the $500,000 I referred to of EBITDA, is largely deferred. We think will come back in the third and fourth quarter this year.

當然。因此，我們的一位客戶在第二季同意加州將他們在該州待處理的喪失抵押品贖回權的案件擱置大約 60 天，但這一切並不是從一開始的。因此，這主要是第二季度的事件，主要影響了我們的兩項業務，即止贖受託人業務和產權業務，這對我們來說都是利潤率非常高的服務。我們看到這些保留在六月底開始消失。現在我們相信他們已經完全關閉了，我們又回到了加州的業務。我提到的 50 萬美元的 EBITDA 收入大部分是遞延的。我們認為今年第三季和第四季會回來。

Great. And any other such holds or commentary in other states?

偉大的。其他州還有其他類似的主張或評論嗎？

No, we're not aware of anything at this point in time. I mean the only thing I would say -- no, we're not aware, Raj, of any impact from our customers in other states today.

不，我們目前還不知道任何事。我的意思是我想說的唯一一件事 - 不，我們不知道，拉傑，我們今天在其他州的客戶的任何影響。

Got it. And then just secondly, just touching upon the cost reductions one more time. These are in addition to several cost cuts that were done the last 2 years. What areas of these cost reductions in?

知道了。其次，再次談到成本削減。這些都是在過去兩年中進行的幾項成本削減的基礎上進行的。這些成本削減體現在哪些領域？

Yes, I'd say the vast majority -- and Michelle, correct me if I'm wrong, are coming from comp and benefits with some coming from -- a much smaller amount coming from technology and insurance costs, things like that. Michelle, is that correct? .

是的，我想說，絕大多數——米歇爾，如果我錯了，請糾正我，來自補償和福利，其中一些來自——一小部分來自技術和保險成本等。米歇爾，這是正確的嗎？ 。

Yes. (inaudible) That's right.

是的。 （聽不清楚）是的。

Right. So because our impression was that the fixed costs, the cost cuts that were done in the last 2 years were largely fixed cost, this is more variable?

正確的。因為我們的印像是固定成本，過去兩年進行的成本削減大部分是固定成本，所以這更具可變性？

No, I would say, look,, we're -- Yes. I'd say, Raj, we're still addressing sort of fixed cost infrastructure both inside the corporate department and inside the business units and then to a lesser degree, variable costs.

不，我會說，看，我們是──是的。我想說，Raj，我們仍在解決公司部門和業務部門內部的固定成本基礎設施問題，然後在較小程度上解決變動成本問題。

Great. And then congratulations on the big asset management you win. I wanted to understand or may be get your take on growth opportunities that are inorganic that are may be more tuck-in possibility. Do you see the environment out there potential to acquire or tuck-in (inaudible) segments?

偉大的。然後恭喜你贏得了大資產管理。我想了解或了解您對無機成長機會的看法，這些機會可能更有可能。您是否認為外在環境有潛力獲得或塞入（聽不清楚）細分市場？

Yes. I mean if you listen to the large -- the loan servicers that have reported their earnings already this quarter and those -- all those servicers that reported their earnings last -- in their last quarter's earnings -- first quarter earnings calls. Everyone is talking about the very large amount of portfolios that are available in the market for sale. And some of those portfolios and platforms include fee-based businesses inside of them. And so we think there are some opportunities should our customer, or partners be successful in acquiring those portfolios for us to potentially benefit and/or participate. And so there seems like there's a lot of activity short is the short answer. And we'll wait and see how successful our customers are.

是的。我的意思是，如果你聽大型貸款服務商在本季度已經報告了收益，以及所有那些最後報告收益的服務商在上一季度的收益中，第一季的收益電話會議。每個人都在談論市場上可供出售的大量投資組合。其中一些投資組合和平台包含收費業務。因此，我們認為，如果我們的客戶或合作夥伴成功獲得這些投資組合，我們就有機會受益和/或參與。因此，似乎有很多活動很短，這就是簡短的答案。我們將拭目以待，看看我們的客戶有多成功。

Great. Other than the acquisition of servicing rights from the Servicers and the flow-through business to you, are there other opportunities that could potentially be taking share through acquisitions in Default Services market.

偉大的。除了從服務商那裡獲得服務權以及向您提供流通業務之外，是否還有其他機會可以透過收購來佔據預設服務市場的份額。

Yes. We always keep our eyes open. We're very focused, of course, on organically growing our revenue, being very aggressive in terms of managing our expenses, benefiting from the market to come back. But sure, like we will absolutely keep our eyes open for other opportunities if they make sense and for the company.

是的。我們始終保持警惕。當然，我們非常注重收入的有機成長，在管理開支方面非常積極，並從市場復甦中受益。但可以肯定的是，如果其他機會對公司有意義，我們絕對會密切注意。

(Operator Instructions)

（操作員說明）

At this time, I'm showing no further questions. I would now like to turn the conference back to Bill Shepro for closing remarks.

目前，我沒有再提出任何問題。現在我想請比爾·謝普羅（Bill Shepro）發表閉幕詞。

Great. Thank you, operator, and thanks for joining the call, and we appreciate everyone's support. Take care.

偉大的。謝謝接線員，謝謝您加入通話，我們感謝大家的支持。小心。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。