Altisource Portfolio Solutions SA (ASPS) 2025 Q1 法說會逐字稿

Good day and welcome to the Altisource Portfolio Solutions first-quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Michelle Esterman, Chief Financial Officer. Please go ahead.

大家好，歡迎參加 Altisource Portfolio Solutions 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給發言人、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 and quarterly slides are available on our website at www.altisource.com. These provide additional information investors may find useful.

謝謝您，接線生。首先，我們想提醒您，您可以在我們的網站 www.altisource.com 上查閱收益報告和季度投影片。這些資訊可能對投資者有所幫助。

Our remarks today include forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ. 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 2024 Form 10-K and first quarter 2025 10-Q. These describe some factors that may lead to different results. We undertake no obligation to update statements, financial scenarios, or projections previously provided or provided herein as a result of a change in circumstances, new information, or future events.

我們今天的評論包括前瞻性陳述，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。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 2024 年 10-K 表和 2025 年第一季 10-Q 表中包含的風險因素。這些描述了一些可能導致不同結果的因素。我們不承擔因情況變化、新資訊或未來事件而更新先前提供或在此提供的聲明、財務情景或預測的義務。

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。在我們的收益報告和季度幻燈片中，您將找到有關非公認會計準則指標的更多揭露。季度幻燈片的附錄包含了 GAAP 與非 GAAP 指標的對帳。

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

參加今天電話會議的還有我們的董事長兼執行長比爾謝普羅 (Bill Shepro)。我現在將電話轉給比爾。

Thanks, Michelle. And good morning. I'll begin on slide 4. We're pleased with our first quarter performance as we continue to drive year-over-year and sequential service revenue and adjusted EBITDA growth primarily from the ramp of our renovation business, stronger foreclosure starts, and sales wins. Compared to the first quarter of last year, we grew total company service revenue by 11% to $40.9 million and adjusted EBITDA by 14% to $5.3 million. Adjusted EBITDA growth outpaced service revenue growth from scale benefits and favorable revenue mix.

謝謝，米歇爾。早安.我將從第 4 張投影片開始。我們對第一季的業績感到滿意，因為我們繼續推動同比和環比服務收入以及調整後 EBITDA 的成長，這主要得益於我們翻新業務的成長、更強勁的止贖開始以及銷售勝利。與去年第一季相比，我們公司服務總營收成長 11%，達到 4,090 萬美元，調整後 EBITDA 成長 14%，達到 530 萬美元。調整後的 EBITDA 成長因規模效益和有利的收入組合而超過服務收入成長。

On February 19, we closed the exchange and maturity extension transaction with our lenders, significantly strengthening our balance sheet and reducing interest expense. We ended the quarter with $30.8 million in unrestricted cash.

2 月 19 日，我們與貸款方完成了交換和延期交易，大大增強了我們的資產負債表並降低了利息支出。本季末，我們擁有 3,080 萬美元的非限制現金。

Turning to our financial performance on slide 5. For the first quarter, we generated $40.9 million of service revenue and 11% increase over the first quarter of 2024. The service revenue increase was driven by growth in both business segments. First quarter 2025 total company adjusted EBITDA of $5.3 million represents a 14% increase over the first quarter of 2024. The improvement was largely from the Business Segments service revenue growth and higher adjusted EBITDA margins in the Servicer and Real Estate segment, partially offset by an increase in the Corporate segment's adjusted EBITDA loss.

前往投影片 5 上的財務表現。第一季度，我們的服務收入為 4,090 萬美元，比 2024 年第一季成長 11%。服務收入的成長是由兩個業務部門的成長所推動的。2025 年第一季公司調整後 EBITDA 總額為 530 萬美元，比 2024 年第一季成長 14%。這項改善主要得益於業務部門服務收入的成長以及服務商和房地產部門更高的調整後 EBITDA 利潤率，但被企業部門調整後 EBITDA 虧損的增加部分抵銷。

The Business Segments generated $12.5 million of adjusted EBITDA at 30.5% adjusted EBITDA margins, representing a 14.5% or $1.6 million improvement in adjusted EBITDA and a 100-basis-point improvement in adjusted EBITDA margins compared to the first quarter of 2024. The Corporate segment's adjusted EBITDA loss increased by $900,000 or 15% to $7.2 million primarily due to certain non-recurring benefits in the first quarter of 2024. First quarter service revenue marked the highest level since the third quarter of 2021, and first quarter adjusted EBITDA was the strongest quarter since the third quarter of 2020.

該業務部門的調整後 EBITDA 為 1,250 萬美元，調整後 EBITDA 利潤率為 30.5%，與 2024 年第一季相比，調整後 EBITDA 提高了 14.5% 或 160 萬美元，調整後 EBITDA 利潤率提高了 100 個基點。企業部門的調整後 EBITDA 虧損增加了 90 萬美元，即 15%，達到 720 萬美元，這主要是由於 2024 年第一季的某些非經常性收益。第一季服務收入創下2021年第三季以來的最高水平，第一季調整後EBITDA為2020年第三季以來最強勁的一個季度。

Slide 6 provides a summary of the exchange and maturity extension transaction and $12.5 million super senior credit facility that we closed on February 19. These transactions significantly strengthened our balance sheet and reduced interest expense. We reduced our long-term debt by over $60 million from $232.8 million to $172.5 million. At today's SOFR rate, the annual cash interest cost on this debt is approximately $13 million which is a reduction of cash and PIK interest of approximately $18 million per year, compared to our prior facility.

投影片 6 概述了我們於 2 月 19 日完成的交換和期限延長交易以及 1250 萬美元超級優先信貸額度。這些交易大大增強了我們的資產負債表並降低了利息支出。我們將長期債務減少了 6,000 多萬美元，從 2.328 億美元減少到 1.725 億美元。以今天的 SOFR 利率計算，這筆債務的年現金利息成本約為 1,300 萬美元，與我們先前的安排相比，現金和 PIK 利息每年減少約 1,800 萬美元。

For the first quarter of this year, our GAAP interest expense was $4.9 million compared to $9.5 million in the first quarter of 2024. Beginning with the 2nd quarter, we will receive the full run rate benefit of the lower principal balance and interest rate from the exchange of maturity extension transaction. At today's SOFR rate and debt balances, we estimate annual GAAP interest expense on the new debt to be approximately $9.5 million. The transactions put the company on a much stronger financial footing and should be accretive to pre-transaction shareholders in the medium to long term.

今年第一季度，我們的 GAAP 利息支出為 490 萬美元，而 2024 年第一季為 950 萬美元。從第二季開始，我們將從期限延長交易中獲得較低本金餘額和利率的全部運行利率收益。按照今天的 SOFR 利率和債務餘額，我們估計新債務的年度 GAAP 利息支出約為 950 萬美元。此交易將使公司的財務基礎更加穩固，並將在中長期內為交易前的股東帶來增值。

Moving to slide 7 in our countercyclical Servicer and Real Estate segment. First quarter 2025 service revenue of $32.9 million was 13% higher than the first quarter 2024, primarily from the launch and growth of our innovation business, stronger foreclosure starts, and sales wins. First quarter of 2025 adjusted EBITDA of $12 million for the segment was $1.6 million or 15% higher than the first quarter of 2024. Adjusted EBITDA margins improved to 36.5% from 35.8%. Adjusted EBITDA growth and margin improvement primarily reflects service revenue growth.

前往我們的逆週期服務商和房地產部門的第 7 張投影片。2025 年第一季的服務收入為 3,290 萬美元，比 2024 年第一季高出 13%，這主要得益於我們創新業務的啟動和成長、更強勁的止贖開始以及銷售勝利。該部門 2025 年第一季的調整後 EBITDA 為 1,200 萬美元，比 2024 年第一季高出 160 萬美元，即 15%。調整後的 EBITDA 利潤率從 35.8% 提高至 36.5%。調整後的 EBITDA 成長和利潤率提高主要反映服務收入的成長。

Slide 8 provides a summary of our Servicer and Real Estate sales wins and pipeline. For the quarter, we won new business that we estimate will generate $4.7 million in annual service revenue on a stabilized basis over the next couple of years. We had significant sales wins in our Granite business. We ended the quarter with a Servicer and Real Estate segment total weighted average sales pipeline of $26.1 million of annual service revenue on a stabilized basis, most of which we anticipate will impact 2026 and beyond.

投影片 8 概述了我們的服務商和房地產銷售業績和管道。本季度，我們贏得了新業務，預計未來幾年將穩定地產生 470 萬美元的年度服務收入。我們的花崗岩業務取得了顯著的銷售勝利。本季結束時，服務商和房地產部門的加權平均總銷售管道年度服務收入穩定在 2,610 萬美元，我們預計其中大部分將對 2026 年及以後產生影響。

Moving to our origination segment on slide 9. First quarter of 2025 service revenue of $8 million was 3% higher than the first quarter of 2024. Adjusted EBITDA of $500,000 was roughly flat to the same quarter last year. Service revenue growth primarily reflects sales wins in certain of our origination segment businesses. Industry-wide origination volume decreased by 1% in the first quarter, compared to the first quarter of last year, with purchase origination volume down by 11%, partially offset by a 25% increase in refinance activity. The flat adjusted EBITDA reflects stronger margins for certain business units, partially offset by higher professional services expenses.

轉到投影片 9 上的起源部分。2025 年第一季的服務收入為 800 萬美元，比 2024 年第一季高出 3%。調整後的 EBITDA 為 50 萬美元，與去年同期基本持平。服務收入成長主要反映了我們某些發起部門業務的銷售勝利。與去年第一季相比，第一季全行業發起量下降了 1%，其中購買發起量下降了 11%，但再融資活動增加了 25%，部分抵消了這一下降。調整後的 EBITDA 持平反映了某些業務部門的利潤率有所提高，但專業服務費用的增加部分抵消了這種影響。

Slide 10 provides a summary of our origination segment sales wins and pipeline. During what continues to be a difficult origination market, our focus on helping our Lenders One members save money and better compete drove substantial interest in our solutions. On an annualized stabilized basis, we won an estimated $4.7 million in new business in the first quarter. Our weighted average sales pipeline at the end of the quarter was $11.9 million.

投影片 10 概述了我們的發起部門銷售勝利和管道。在持續艱難的貸款市場中，我們專注於幫助我們的 Lenders One 會員節省資金並提高競爭力，這引起了人們對我們解決方案的極大興趣。以年化穩定計算，我們在第一季贏得了約 470 萬美元的新業務。本季末我們的加權平均銷售額為 1,190 萬美元。

Turning to our Corporate segment on slide 11. We continue to maintain cost discipline. While first quarter 2025 Corporate adjusted EBITDA loss of $7.2 million was $900,000 more than the first quarter 2024, the increase primarily reflects certain one-time benefits we received last year.

前往投影片 11 上的公司部門。我們繼續保持成本紀律。雖然 2025 年第一季公司調整後的 EBITDA 虧損為 720 萬美元，比 2024 年第一季增加了 90 萬美元，但這一增長主要反映了我們去年收到的某些一次性福利。

Moving to slide 12 on the business environment. Starting with the residential mortgage default market, 90-plus-day mortgage delinquency rates remained low at 1.3% in March, compared to a historical low of 1.1% in May 2024. Despite the low delinquency rate environment, foreclosure starts increased by 25% in the first quarter of 2025, compared to the same period in 2024. We believe the increase in foreclosure starts is largely related to the December 31, 2024, termination of the VA-targeted foreclosure moratoriums. First quarter 2025 foreclosure starts were 18% lower than the same period in 2019. Foreclosure sales for the first quarter of 2025 declined by 2% compared to last year and are 53% lower than the same period in 2019.

轉到第 12 張投影片，介紹商業環境。從住宅抵押貸款違約市場開始，3 月 90 天以上抵押貸款拖欠率維持在 1.3% 的低位，而 2024 年 5 月的歷史低點為 1.1%。儘管拖欠率較低，但與 2024 年同期相比，2025 年第一季的止贖案件數量增加了 25%。我們認為，止贖案件的增加很大程度上與 2024 年 12 月 31 日 VA 止贖禁令的終止有關。2025 年第一季的止贖開始數量比 2019 年同期下降了 18%。2025 年第一季的止贖房屋銷售額與去年相比下降了 2%，比 2019 年同期下降了 53%。

While foreclosure starts and sales remain low compared to historical pre-pandemic periods, there are several environmental factors that we believe could drive these higher. One of those factors is the rise in delinquency rates for FHA mortgages which are typically granted to lower and moderate income Americans with more favorable terms including lower down payment requirements. According to a recent Wall Street Journal article, the 30-plus-day delinquency rate on FHA mortgages recently reached 11%, the highest level since 2013.

儘管與疫情前的歷史時期相比，止贖開始數量和銷售額仍然較低，但我們認為有幾個環境因素可能會推動這些數字上升。其中一個因素是聯邦住房管理局 (FHA) 抵押貸款拖欠率的上升，這種貸款通常發放給低收入和中等收入的美國人，貸款條款更為優惠，包括較低的首付要求。根據《華爾街日報》最近的一篇文章，聯邦住房管理局 (FHA) 抵押貸款 30 天以上的拖欠率最近達到了 11%，為 2013 年以來的最高水準。

A second factor is HUD's recently announced updates to the FHA servicer guidelines. In April, HUD issued updates and replacements of certain servicer requirements that limit borrowers to one new permanent loss mitigation option every 24 months from every 18 months, subject to certain limited exceptions. This change could reduce repeated borrower loss mitigation attempts and lead to more properties entering the foreclosure process.

第二個因素是 HUD 最近宣布 FHA 服務商指南的更新。今年 4 月，HUD 發布了某些服務商要求的更新和替換規定，將借款人每 24 個月只能選擇一次新的永久性損失緩解選項，從每 18 個月一次改為每 24 個月一次，但有某些有限的例外情況。這項變更可能會減少借款人重複的損失減輕嘗試，並導致更多房產進入止贖程序。

In addition, effective October 1, 2025, the temporary COVID-19 loss mitigation options will be replaced with new permanent loss mitigation options. While the new options have many similarities to the temporary COVID options, the implementation of certain additional borrower requirements and limitations could reduce the number of modifications granted, potentially increasing foreclosure starts and subsequently, foreclosure sales.

此外，自 2025 年 10 月 1 日起，臨時 COVID-19 損失緩解選項將被新的永久性損失緩解選項取代。雖然新方案與臨時 COVID 方案有許多相似之處，但實施某些額外的借款人要求和限制可能會減少授予的修改數量，從而可能增加止贖開始的數量，並隨後增加止贖銷售。

A third factor is the risk of a weakening U.S. economy from, for example, tariff changes and the resumption of collection activities on defaulted federal student loans. Should there be a deterioration of the U.S. economy, inflation or unemployment could rise, likely driving higher loan delinquencies, foreclosure starts, and eventually, foreclosure sales.

第三個因素是美國經濟疲軟的風險，例如關稅變動和恢復拖欠聯邦學生貸款的追討活動。如果美國經濟惡化，通貨膨脹或失業率可能會上升，這可能會導致貸款拖欠率上升、止贖率上升，並最終導致法拍房屋銷售。

The origination market also continues to have challenges. First quarter 2025 mortgage origination volume was relatively flat to the first quarter of 2024. For the full year, MBA's April 2025 forecast projects there will be $5.8 million loans originated. This is down by 4% from the MBA's November 2024 forecast.

起源市場也持續面臨挑戰。2025 年第一季的抵押貸款發放量與 2024 年第一季基本持平。MBA 預計 2025 年 4 月全年貸款發放將達 580 萬美元。這比 MBA 11 月的 2024 年預測下降了 4%。

In closing, we are pleased with our first quarter results and believe we are positioned to diversify our revenue base and ramp business we have won, while maintaining cost discipline and significantly reducing corporate interest expense.

最後，我們對第一季的業績感到滿意，並相信我們能夠實現收入基礎多元化，擴大我們贏得的業務，同時保持成本紀律並大幅降低企業利息支出。

To support longer term growth, we are focusing on accelerating the growth of certain of our businesses that we believe have tailwinds. It also appears that the U.S. economy and consumer is facing pressure which could drive higher mortgage delinquency rates, foreclosure starts, and eventually, foreclosure sales.

為了支持長期成長，我們正致力於加速我們認為有順風的某些業務的成長。美國經濟和消費者似乎也面臨壓力，這可能導致抵押貸款拖欠率上升、止贖開始，最終導致法拍銷售。

Should loan delinquencies, foreclosure starts, and foreclosure sales increase, we believe we are well- positioned to benefit from stronger revenue and adjusted EBITDA growth in our largest and most profitable countercyclical businesses.

如果貸款拖欠、止贖開始和止贖銷售增加，我們相信我們將從我們最大、最賺錢的逆週期業務的更強勁的收入和調整後的 EBITDA 增長中受益。

I'll now open up the call for questions. Operator?

我現在開始回答問題。操作員？

(Operator Instructions) I'm currently showing no questions in the queue at this time. I'll turn the call back over to Mr. Bill Shepro for any closing remarks.

（操作員指示）目前佇列中沒有顯示任何問題。我將把電話轉回給比爾·謝普羅先生，請他做最後發言。

Great. Thanks, operator. We're pleased with our first quarter performance and believe we are set up well. Thanks for joining us today.

偉大的。謝謝，接線生。我們對第一季的表現感到滿意，並相信我們已經準備好了。感謝您今天加入我們。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。