CORELOGIC, INC. (CLGX) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

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NEWS
FOR
IMMEDIATE
RELEASE
Exhibit 99.1

CORELOGIC REPORTS FOURTH QUARTER AND FULL-YEAR 2017 FINANCIAL RESULTS

Strong Operating Performance Highlighted by Revenue Outperformance of Market Trends, Achievement of High End of Profit Guidance and Outstanding Cash Flow and Capital Return

Irvine, Calif., February 26, 2018
- CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today reported financial results for the quarter and full-year ended December 31, 2017. Operating and financial highlights appear below:

Fourth Quarter
Revenues of $454 million were down 4% as the benefits of growth in insurance & spatial solutions and international as well as pricing actions, market share gains and new products were offset by the impact of an estimated 15% decline in U.S. mortgage origination unit volumes.
Operating income from continuing operations rose 13% to $65 million driven principally by productivity and cost management program benefits.
Net income from continuing operations increased $59 million to $65 million fueled by operating upsides and a one-time tax benefit attributable to the U.S. Tax Cuts and Jobs Act (“Tax Reform Act”).
Diluted EPS from continuing operations was up $0.71 to $0.78. Adjusted EPS totaled $0.55 per share.
Adjusted EBITDA totaled $117 million, up from $116 million. Adjusted EBITDA margin was 26%.
Repurchased 1.6 million common shares for $75 million.

Full-Year 2017
Revenues of $1,851 million were 5% lower than 2016 as an estimated 20% decrease in U.S. mortgage market unit volumes offset growth in insurance & spatial solutions and international as well as the benefits from pricing actions, market share gains and new products.
Operating income from continuing operations was down 14% to $239 million as lower mortgage market volumes and the cost of a third quarter legal settlement more than offset benefits from organic growth, productivity and cost management programs.
Net income from continuing operations increased 36% to $150 million primarily due to benefits attributable to the Tax Reform Act, organic growth and cost productivity.
Diluted EPS from continuing operations rose $0.52 to $1.75. Adjusted EPS totaled $2.37.
Adjusted EBITDA totaled $480 million. Adjusted EBITDA margin was 26%.
Repurchased 4.6 million shares (5% of outstanding common shares) for $207 million.



The following information was filed by CORELOGIC, INC. on Monday, February 26, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • clgx_10k_2018-02-27_104_297
    Other - Other
    The Credit Agreement contains the following financial maintenance covenants: i a maximum total leverage ratio not to exceed 4.50:1.00 stepped down to 4.25:1.00 starting with the fiscal quarter ending on September 30, 2018, with a further step down to 4.00:1.00 starting with the fiscal quarter ending on September 30, 2019, with an additional step down to 3.75:1.00 starting with the fiscal quarter ending on September 30, 2020, and a final step down to 3.50:1.00 starting with the fiscal quarter ending on September 30, 2021 and ii a minimum interest coverage ratio of at least 3.50:1.00.
  • clgx_10k_2018-02-27_112_172
    Financial - Earnings
    However, a weakening of our financial condition, including a significant decrease in our profitability or cash flows or a material increase in our leverage, could adversely affect our ability to access these markets andor increase our cost of borrowings.
  • clgx_10k_2018-02-27_91_129
    Financial - Earnings
    The increase in cash provided by operating activities in 2016 relative to 2015 was primarily due to cash generated from higher net earnings, as adjusted to exclude non-cash items, offset by unfavorable changes in working capital.
  • clgx_10k_2018-02-27_124_207
    Financial - Expense
    Examples of such events or circumstances include the following: cost factors, financial performance, legal and regulatory factors, entity specific events, industry and market factors, macroeconomic conditions and other considerations.
  • clgx_10k_2018-02-27_38_50
    Financial - Expense
    These programs also lowered facility costs by $2.3 million, travel and communication costs by $2.4 million and other costs by $9.4 million, partially offset by higher legal settlement costs of $14.0 million, higher external services costs of $32.4 million including investments in technology, innovation and compliance-related capabilities and higher professional fees of $22.0 million.
  • clgx_10k_2018-02-27_127_220
    Revenue - Product
    Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates and future market conditions, among others.
  • clgx_10k_2018-02-27_59_79
    MA - Other
    Excluding acquisition activity, the increase of $46.7 million was primarily due to higher mortgage loan origination volumes and market-share gains, which increased our revenues from property tax solutions by $37.5 million, credit solutions by $36.2 million and flood data solutions by $7.5 million, partially offset by lower valuation solutions of $3.5 million and lower other revenues of $31.0 million due to certain business line exits and market volume decreases.
  • clgx_10k_2018-02-27_28_36
    Financial - Expense
    Savings were realized through the reduction of operating costs, selling, general and administrative costs, outsourcing certain business process functions, consolidation of real estate facilities and other operational improvements.
  • clgx_10k_2018-02-27_68_91
    MA - Other
    Excluding acquisition activity, operating income increased $47.8 million and operating margins increased 434 basis points primarily due to an increase in mortgage loan origination volumes, market-share gains, product mix, and the impact of ongoing operational efficiency programs.
  • clgx_10k_2018-02-27_73_101
    Financial - Earnings
    Net income from continuing operations was not impacted due to the offsetting favorable tax benefit recognized from the release of the federal tax reserves for uncertain tax benefits, which resulted in a favorable variance to the effective tax rate.
  • clgx_10k_2018-02-27_109_168
    Other - Other
    Cash available from operations, however, could be affected by any general economic downturn or any decline or adverse changes in our business such as a loss of clients, competitive pressures or other significant change in business environment.
  • clgx_10k_2018-02-27_26_27
    MA - Other
    The acquisition of Myriad included contingent consideration of up to $3.0 million, to be paid in cash by 2019 upon the achievement of certain revenue targets in fiscal years 2017 and 2018.
  • clgx_10k_2018-02-27_42_59
    MA - Other
    Excluding acquisition activity, operating income decreased $23.6 million and operating margins remained relatively consistent when compared to 2016.
  • clgx_10k_2018-02-27_41_56
    MA - Other
    Excluding acquisition activity, operating income decreased $15.8 million and operating margins decreased 199 basis points primarily due to lower property insights revenues and higher legal settlement costs of $14.0 million, partially offset by higher insurance & spatial solutions revenues and the impact of our on-going operational efficiency programs.
  • clgx_10k_2018-02-27_87_115
    Other - Other
    Cash and cash equivalents totaled $118.8 million and $72.0 million as of December 31, 2017 and 2016, respectively, representing an increase of $46.8 million.
  • clgx_10k_2018-02-27_46_64
    Financial - Debt
    The decrease is primarily related to losses on our extinguishment of debt of $24.4 million in connection with the redemption of all outstanding balances under the 7.25% senior notes in July 2016 and $2.2 million in connection with the pay down on the 7.55% senior debentures in November 2016.
  • clgx_10k_2018-02-27_70_92
    Financial - Expense
    Our consolidated total interest expense, net was $60.3 million for the year ended December 31, 2016, a decrease of $2.1 million, or 3.4%, when compared to 2015.
  • clgx_10k_2018-02-27_98_294
    Financial - Debt
    Net cash used in financing activities during 2017 was primarily comprised of repayment of long-term debt of $1.8 billion, share repurchases of $207.4 million, debt issuance costs of $14.3 million and net settlement from stock-based compensation related transactions of $4.4 million, partially offset by proceeds from debt issuance of $2.0 billion.
  • clgx_10k_2018-02-27_100_296
    Financial - Shares / Equity
    Net cash used in financing activities during 2015 was primarily comprised of share repurchases of $97.4 million, repayment of long-term debt of $82.9 million and debt issuance costs of $6.5 million, partially offset by proceeds from debt issuance of $114.4 million and net settlement from stock-based compensation related transactions of $13.9 million.
  • clgx_10k_2018-02-27_72_96
    Financial - Debt
    The increase is primarily related to our extinguishment of debt of $24.4 million in connection with the redemption of all outstanding balances under the 7.25% senior notes in July 2016 and $2.2 million in connection with the pay down on the 7.55% senior debentures in November 2016.
  • clgx_10k_2018-02-27_62_82
    MA - Other
    Excluding acquisition activity, the decrease of $5.1 million was primarily due to lower costs of $26.0 million resulting from our on-going operational efficiency programs and favorable product mix, partially offset by higher costs of $20.9 million associated with higher mortgage origination volumes.
  • clgx_10k_2018-02-27_19_13
    Financial - Expense
    Our combined data from public, contributory and proprietary sources provides detailed coverage of property, mortgages and other encumbrances, property risk and replacement cost, consumer credit, tenancy, location, hazard risk and related performance information.
  • clgx_10k_2018-02-27_99_295
    Financial - Debt
    Net cash provided by financing activities during 2016 was primarily comprised of proceeds from debt issuance of $962.0 million and net settlement from stock-based compensation related transactions of $6.7 million, partially offset by repayment of long-term debt of $710.0 million, share repurchases of $195.0 million, debt extinguishment premiums of $16.3 million and debt issuance costs of $6.3 million.
  • clgx_10k_2018-02-27_78_107
    Financial - Income
    Our effective income tax rate was 33.3% and 33.4% for the years ended December 31, 2016 and 2015, respectively.
  • clgx_10k_2018-02-27_52_71
    Financial - Income
    Our effective income tax rate was 10.8% and 33.3% for the years ended December 31, 2017 and 2016, respectively.
  • clgx_10k_2018-02-27_46_63
    Financial - Debt
    Our consolidated loss on early extinguishment of debt was $1.8 million for the year ended December 31, 2017, a decrease of $24.8 million when compared to 2016.
  • clgx_10k_2018-02-27_94_137
    Revenue - Product
    Further, we had investments in property and equipment and capitalized data of $45.2 million and $35.5 million, respectively, changes in restricted cash of $7.0 million and purchases of investments of $3.4 million partially offset by proceeds from the sale of marketable securities of $21.8 million and proceeds from the sale of investments of $2.5 million.
  • clgx_10k_2018-02-27_116_304
    Other - Other
    Excludes a net liability of $12.0 million related to uncertain tax positions including associated interest and penalties, and deferred compensation of $35.3 million due to uncertainty of payment period.
  • clgx_10k_2018-02-27_88_119
    Financial - Income
    Most of the amounts held outside of the U.S. could be repatriated to the U.S. without the assessment of additional income tax other than the one-time transition tax pursuant to the TCJA.
  • clgx_10k_2018-02-27_22_261
    Financial - Expense
    With our data as a foundation, we have built strong analytics capabilities and a variety of value-added business services to meet our clients needs for property tax processing, property valuation, mortgage and automotive credit reporting, tenancy screening, hazard risk, property risk and replacement cost, flood plain location determination and other geospatial data analytics and related services.
  • clgx_10k_2018-02-27_33_42
    MA - Other
    Excluding acquisition activity, the decrease of $129.8 million was primarily comprised of revenue reductions in valuation solutions of $106.8 million, flood data solutions of $9.1 million and other of $13.9 million.
  • clgx_10k_2018-02-27_90_127
    Financial - Earnings
    The decrease in cash provided by operating activities in 2017 relative to 2016 was primarily due to lower net earnings as adjusted to exclude non-cash items, partially offset by favorable changes in working capital.
  • clgx_10k_2018-02-27_119_181
    Other - Other
    Our product and service deliverables are generally comprised of data or other related services.
  • clgx_10k_2018-02-27_107_160
    Other - Other
    In June 2017, we entered into Swaps which become effective in March 2018 and terminate in March 2021.
  • clgx_10k_2018-02-27_107_162
    Other - Other
    In August 2016, we entered into Swaps which became effective in September 2016 and terminate in April 2020.
  • clgx_10k_2018-02-27_108_165
    Other - Other
    In May 2014, we entered into Swaps which became effective in December 2014 and terminate in March 2019.
  • clgx_10k_2018-02-27_111_300
    Financial - Shares / Equity
    During the years ended December 31, 2017, 2016 and 2015, we repurchased approximately $4.6 million, 5.0 million and 2.5 million shares of our common stock for $207.4 million, $195.0 million and $97.4 million, respectively, including commission costs.
  • clgx_10k_2018-02-27_42_60
    Revenue - Product
    The decrease was primarily due to lower revenues, partially offset by the impact of our ongoing operational efficiency programs.
  • clgx_10k_2018-02-27_59_77
    Revenue - Product
    Our UWS segment revenues increased by $431.5 million, or 52.3%, when compared to 2015.
  • clgx_10k_2018-02-27_64_83
    Financial - Expense
    Our consolidated selling, general and administrative expenses was $458.1 million for the year ended December 31, 2016, an increase of $60.3 million, or 15.2%, when compared to 2015.
  • clgx_10k_2018-02-27_38_47
    Financial - Expense
    Our consolidated selling, general and administrative expenses were $459.8 million for the year ended December 31, 2017, an increase of $1.7 million, or 0.4%, when compared to 2016.
  • clgx_10k_2018-02-27_39_51
    Financial - Expense
    Our consolidated depreciation and amortization expense was $177.8 million for the year ended December 31, 2017, an increase of $5.2 million, or 3.0%, when compared to 2016.
  • clgx_10k_2018-02-27_65_86
    Financial - Expense
    Our consolidated depreciation and amortization expense was $172.6 million for the year ended December 31, 2016, an increase of $22.2 million, or 14.8%, when compared to 2015.
  • clgx_10k_2018-02-27_32_39
    MA - Other
    Excluding acquisition activity, the decrease of $14.0 million was primarily due to lower property insights revenues of $22.2 million from lower mortgage loan origination volumes and project-related revenues and lower other revenues of $6.8 million, partially offset by higher insurance & spatial solutions revenues of $15.0 million, improved pricing, market share gains and new product contributions.
  • clgx_10k_2018-02-27_57_278
    Revenue - Product
    Our consolidated operating revenues were $2.0 billion for the year ended December 31, 2016, an increase of $424.4 million when compared to 2015, and consisted of the following:
  • clgx_10k_2018-02-27_129_230
    Financial - Income
    We recognize interest and penalties, if any, related to uncertain tax positions within income tax expense.
  • clgx_10k_2018-02-27_53_72
    Financial - Income
    The change in the effective income tax rate was primarily due to the enactment of the Tax Cuts and Jobs Act TCJA enacted in December 2017, which required the remeasurement of our federal deferred tax assets and liabilities due to the reduction of U.S. corporate income tax rate from 35.0% to 21.0%.
  • clgx_10k_2018-02-27_38_49
    MA - Other
    Excluding acquisition activity, the decrease of $5.5 million was primarily due to lower personnel-related expenses of $59.8 million largely from lower variable compensation and the favorable impact of our ongoing operational efficiency programs.
  • clgx_10k_2018-02-27_73_100
    Financial - Income
    Our associated federal tax reserves for uncertain tax benefits of $21.8 million and federal tax liability of $1.5 million was released and recognized as income tax benefit through provision for income taxes.
  • clgx_10k_2018-02-27_133_306
    Other - Other
    For a description of recently issued and adopted accounting pronouncements, including the respective dates of adoption and expected effects on our results of operations and financial condition, see Note 2 - Significant Accounting Policies of the Notes to Consolidated Financial Statements included in Item 8 - Financial Statements and Supplementary Data of this Annual Report on Form 10-K, which is incorporated by reference in response to this item.
  • clgx_10k_2018-02-27_68_89
    Financial - Income
    Our UWS segment operating income increased by $63.2 million, or 32.9%, when compared to 2015.
  • clgx_10k_2018-02-27_48_66
    Other - Other
    Our consolidated impairment loss on investment in affiliates was $3.8 million for the year ended December 31, 2017, a decrease of $19.6 million, or 83.7%.
  • clgx_10k_2018-02-27_112_171
    Financial - Debt
    Based on current market conditions and our financial condition including our ability to satisfy the conditions contained in our debt instruments that are required to be satisfied to permit us to incur additional indebtedness, we believe that we have the ability to effectively access these liquidity sources for new borrowings.
  • clgx_10k_2018-02-27_80_109
    Financial - Shares / Equity
    Our consolidated equity in earnings of affiliates, net of tax was $0.5 million for the year ended December 31, 2016, a decrease of $13.2 million, or 96.4%, when compared to 2015.
  • clgx_10k_2018-02-27_36_46
    MA - Other
    Excluding acquisition activity, the decrease of $87.7 million was primarily due to lower revenues and our on-going operational efficiency programs.
  • clgx_10k_2018-02-27_44_61
    Financial - Expense
    Our consolidated total interest expense, net was $61.8 million for the year ended December 31, 2017, an increase of $1.5 million, or 2.5%, when compared to 2016.
  • clgx_10k_2018-02-27_119_180
    Revenue - Product
    We derive our revenues principally from U.S. mortgage originators and servicers with good creditworthiness.
  • clgx_10k_2018-02-27_15_257
    Other - Other
    impairments in our goodwill or other intangible assets
  • clgx_10k_2018-02-27_124_204
    Other - Other
    Goodwill and other intangible assets.
  • clgx_10k_2018-02-27_124_205
    Other - Other
    We perform an annual impairment test for goodwill and other indefinite-lived intangible assets for each reporting unit every fourth quarter, or on an interim basis if an indicator of impairment is present.
  • clgx_10k_2018-02-27_126_214
    Other - Other
    For other indefinite-lived intangible assets, if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then quantitative impairment testing is performed.
  • clgx_10k_2018-02-27_73_98
    Financial - Income
    Our federal FAFC indemnification receivable of $23.4 million was recognized as tax indemnification release in our income from continuing operations for the year ended December 31, 2016.
  • clgx_10k_2018-02-27_76_287
    Other - Other
    Gain on Investments and Other, Net
  • clgx_10k_2018-02-27_62_80
    Financial - Expense
    Our consolidated cost of services was $1.0 billion for the year ended December 31, 2016, an increase of $267.4 million, or 34.4%, when compared to 2015.
  • clgx_10k_2018-02-27_66_282
    Financial - Income
    Our consolidated operating income was $277.9 million for the year ended December 31, 2016, an increase of $74.5 million, or 36.6%, when compared to 2015, and consisted of the following:
  • clgx_10k_2018-02-27_77_105
    MA - Other
    The decrease is primarily due to the prior year acquisition of the remaining 49.9% interest in RELS LLC RELS which resulted in a $34.3 million gain due to the step-up in fair value on the previously held interest in 2015, losses in the current year compared to the prior year on employee benefits of $1.5 million, partially offset by a current year gain of $8.0 million on the fair value adjustment of the contingent consideration related to the FNC acquisition, $11.4 million gain from the sale of investments, gains in the current year compared to prior year losses on the investments related to supplemental benefit plans of $2.0 million and other of $0.3 million.
  • clgx_10k_2018-02-27_44_62
    Other - Other
    The increase was primarily due to a higher average outstanding principal balance in 2017 and higher interest rates.

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  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0000036047-18-000015
  • Submitted to the SEC: Tuesday, February 27, 2018 3:55:05 PM EST
  • Accepted by the SEC: Tuesday, February 27, 2018
  • Fiscal Year ending: December 2017
  • Industry: Computer Processing And Data Preparation