CoreLogic (CLGX), a provider of property, financial and consumer information, has recorded a 63.29 percent plunge in profit for the quarter ended Jun. 30, 2014. The company earned $15.99 million or $0.17 a share in the second-quarter compared with $43.55 million or $0.45 a share a year ago. Adjusted earnings per share came in at $0.36, when analysts expected $0.38.
Revenue during the second-quarter went up marginally 0.35 percent to $349.42 million from $348.20 million in the last year period.
Gross margin contracted by 388 basis points over the previous year period to 47.85 percent. Operating income for the quarter declined to $42.10 million compared with $47.51 million in the last year period. That has resulted in contraction of 160 basis points in operating margins to 12.05 percent.
''CoreLogic delivered strong operating results in the second quarter despite the continuing contraction in U.S. mortgage volumes. We continued to scale and grow our D&A and TPS segments in line with our strategic business plan and we also invested in areas of strategic growth and operational excellence which we believe will provide sustainable, long-term value creation for our stakeholders,'' said Anand Nallathambi, president and chief executive officer of CoreLogic.
''We grew revenues and delivered strong margins and free cash flow in the second quarter. We also progressed our major operational initiatives, exceeded our cost reduction targets, reduced our debt and repurchased close to one million of our common shares,'' added Frank Martell, chief operating and financial officer of CoreLogic.
Cash Flow
Corelogic has generated cash of $135.53 million from operating activities during the first half, down 17.96 percent or $29.66 million when compared with the last year period.
The company has spent $713.32 million cash to meet investing activities during the first half, as against cash outgo of $58.44 million in the last year period. It has made net capital expenditure of $42.79 million during the first half, which was lower by 19.77 percent or $10.54 million, from a year ago.
The company's free cash flow accounted for 68.43 percent of operating cash flow for the first half, compared with 67.71 percent in the last year period.
The company has generated net cash of $583.06 million from financing activities during the first half, as against cash outgo of $76.46 million in the last year period. It has borrowed net of $619.42 million through debt during the first half. It has spent net of $27.60 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $140.91 million, down 20.21 percent or $35.68 million from Jun. 30, 2013.
Working Capital
Corelogic. has witnessed a decline in the working capital over the last one year. The company's working capital stood at $35.35 million as at Jun. 30, 2014, down $72.37 million or 67.19 percent from $107.72 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.06 as at Jun. 30, 2014 from 1.21 on Jun. 30, 2013.
Debt Position
Corelogic has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $1473.60 million, up 86.81 percent or $684.79 million, from Jun. 30, 2013.
The company's total debt was 39.84 percent of total assets as on Jun. 30, 2014, compared with 26.09 percent on Jun. 30, 2013. It has witnessed an increase in debt to equity ratio to 1.40 on Jun. 30, 2014 compared with 0.69 on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 2.43 from 3.82 in the same period last year.
Shares of Corelogic gained $0.12 or 0.40 percent to settle at $30.09 on Wednesday.
