(all amounts are expressed in U.S. dollars, excluding per share amounts
and unless otherwise stated)
TORONTO--(BUSINESS WIRE)--
Real Matters Inc. (TSX: REAL) (“Real Matters” or “the Company”), a
leading network management services platform for the mortgage and
insurance industries, today announced its financial results for the
second quarter ended March 31, 2018.
“We delivered solid financial and operational results in the second
quarter, particularly in the appraisal business where we continue to
gain share and outperform the market while driving significant margin
improvement through the network effect on our platform. In the second
quarter, we began deployment with a fifth Tier 1 lender for appraisals,
and last week, we also announced the deployment of our first Tier 1
lender in title and closing. Together with our organic growth, these key
milestones mark the substantial progress that Real Matters is making
towards the achievement of our market share objectives,” said Real
Matters Chief Executive Officer Jason Smith. “The fundamentals of our
business remain strong and we are seeing increased momentum with clients
on the title and closing side of the business. Overall, we expect to
continue to deliver strong organic growth which will allow us to outpace
U.S. mortgage origination market trends going forward.”
Q2 2018 Highlights
-
Continued market share gains in appraisals, driving market adjusted
U.S. appraisal revenue growth of 15%.
-
Consolidated Net Revenue(A) margin expanded to 31.0% from
29.3% in Q2 2017.
-
Succeeded in winning a new Tier 1 lender Request For Proposal for
appraisals in the core mortgage origination channel and moved into
deployment with the client.
-
Expanded into the home equity channel with two Tier 1 lenders.
-
Completed the transition of title and closing to our technology
platform and launched our closing network.
-
Began rationalizing non-core title and closing revenues.
-
Subsequent to quarter end, announced the deployment of a Tier 1 lender
for centralized refinance mortgage origination title and closing
services.
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Three months ended March 31,
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|
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2018
|
|
|
|
2017
|
|
|
$
|
Change
|
|
% Change
|
|
|
Market
adjusted
growth
(decline)
%
|
|
|
|
|
|
|
|
|
|
|
|
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Revenues
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|
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U.S. Appraisal and ancillary
|
|
$
|
45.9
|
|
|
$
|
41.9
|
|
|
$
|
4.0
|
|
|
9.6
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%
|
|
15.4
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%
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|
U.S. Title and closing and other
|
|
|
13.4
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|
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15.7
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|
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(2.3
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)
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-14.4
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%
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|
-12.3
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%
|
|
Canada
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|
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6.8
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|
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6.9
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(0.1
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)
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-1.7
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%
|
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-1.4
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%
|
|
Consolidated revenues
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|
$
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66.1
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|
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$
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64.5
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$
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1.6
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|
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2.4
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%
|
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6.9
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%
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|
Net income (loss)
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|
$
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3.0
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$
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(8.9
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)
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$
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11.9
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Net income (loss) per diluted share
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$
|
0.03
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|
$
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(0.12
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)
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|
$
|
0.15
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Non-GAAP measures
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Net Revenue(A)
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$
|
20.5
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$
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18.9
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$
|
1.6
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|
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8.3
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%
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|
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Net Revenue(A) margin
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31.0
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%
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29.3
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%
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|
1.7
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%
|
|
|
|
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Adjusted EBITDA(A)
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$
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0.3
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$
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(1.8
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)
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$
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2.1
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|
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|
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Adjusted EBITDA(A) margin
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1.5
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%
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-9.6
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%
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11.1
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%
|
|
|
|
|
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Adjusted Net Income (Loss)(A)
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$
|
1.4
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|
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$
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(1.8
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)
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$
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3.2
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|
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Adjusted Net Income (Loss)(A) per diluted share
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$
|
0.02
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$
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(0.02
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)
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$
|
0.04
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|
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Six months ended March 31,
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2018
|
|
|
|
2017
|
|
|
$
|
Change
|
|
% Change
|
|
|
Market
adjusted
growth
(decline)
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Appraisal and ancillary
|
|
$
|
95.8
|
|
|
$
|
91.6
|
|
|
$
|
4.3
|
|
|
4.7
|
%
|
|
20.8
|
%
|
|
U.S. Title and closing and other
|
|
|
29.8
|
|
|
|
37.8
|
|
|
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(8.0
|
)
|
|
-21.2
|
%
|
|
-5.4
|
%
|
|
Canada
|
|
|
14.3
|
|
|
|
14.1
|
|
|
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0.2
|
|
|
1.3
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%
|
|
0.7
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%
|
|
Consolidated revenues
|
|
$
|
139.9
|
|
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$
|
143.4
|
|
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$
|
(3.5
|
)
|
|
-2.4
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%
|
|
11.9
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%
|
|
Net loss
|
|
$
|
(2.4
|
)
|
|
$
|
(11.2
|
)
|
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$
|
8.8
|
|
|
|
|
|
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Net loss per diluted share
|
|
$
|
(0.03
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue(A)
|
|
$
|
43.0
|
|
|
$
|
44.9
|
|
|
$
|
(1.9
|
)
|
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-4.1
|
%
|
|
|
|
Net Revenue(A) margin
|
|
|
30.7
|
%
|
|
|
31.3
|
%
|
|
|
-0.6
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%
|
|
|
|
|
|
Adjusted EBITDA(A)
|
|
$
|
2.7
|
|
|
$
|
3.7
|
|
|
$
|
(1.0
|
)
|
|
|
|
|
|
Adjusted EBITDA(A) margin
|
|
|
6.3
|
%
|
|
|
8.2
|
%
|
|
|
-1.9
|
%
|
|
|
|
|
|
Adjusted Net Income(A)
|
|
$
|
2.7
|
|
|
$
|
0.1
|
|
|
$
|
2.6
|
|
|
|
|
|
|
Adjusted Net Income(A) per diluted share
|
|
$
|
0.03
|
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
|
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Outlook
Please refer to the Strategy and Outlook section of
Management’s Discussion and Analysis (“MD&A”) for the second quarter
ended March 31, 2018.
Conference Call and Webcast
A conference call to review the
results will take place at 10 a.m. (ET) on Tuesday, May 8, 2018, hosted
by Chief Executive Officer Jason Smith and Chief Financial Officer Bill
Herman. An accompanying slide presentation will be posted to the
Investor Relations section of our website shortly before the call.
To access the call:
-
Participant Toll Free Dial-In Number: (866) 393-4306
-
Participant International Dial-In Number: (734) 385-2616
-
Conference ID: 7672967
To listen to the live webcast of the call:
The webcast will be archived and a transcript of the call will be
available in the Investor Relations section of our website following the
call.
(A) Non-GAAP Measures
The non-GAAP measures used in
this Press Release, including Net Revenue, Adjusted EBITDA and Adjusted
Net Income or Loss, do not have a standardized meaning prescribed by
International Financial Reporting Standards and are therefore unlikely
to be comparable to similar measures presented by other issuers. These
non-GAAP measures are more fully defined and discussed in the Company’s
MD&A for the three and six month periods ended March 31, 2018, available
on SEDAR at www.sedar.com.
Full reports of the financial results of Real Matters for the three and
six month periods ended March 31, 2018 are outlined in the unaudited
interim condensed consolidated financial statements and the related MD&A
of the Company, which are available on SEDAR at www.sedar.com.
In addition, supplemental information is available on our website at www.realmatters.com.
Forward-Looking Statements
This new release contains
forward-looking statements that relate to our current expectations and
views of future events including with respect to future market share and
future results. In some cases, these forward-looking statements can be
identified by words or phrases such as ‘‘forecast’’, ‘‘target’’,
‘‘goal’’, ‘‘may’’, ‘‘might’’, ‘‘will’’, ‘‘expect’’, ‘‘anticipate’’,
‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘indicate’’, ‘‘seek’’, ‘‘believe’’,
‘‘predict’’, or ‘‘likely’’, or the negative of these terms, or other
similar expressions intended to identify forward-looking statements.
We have based these forward-looking statements on our current
expectations and projections about future events and financial trends
that we believe might affect our financial condition, results of
operations, business strategy and financial needs. A comprehensive
discussion of the risks that impact Real Matters and these
forward-looking statements can be found in the Annual Information Form
dated December 27, 2017 available on SEDAR at www.sedar.com.
Actual results may differ materially from those indicated or underlying
forward-looking statements as a result of various factors, including
those described under the heading “Important Factors Affecting Results
from Operations” outlined in the Strategy and Outlook section of the
Company’s MD&A for the three and six month periods ended March 31, 2018.
Real Matters cautions that the list of risk factors and uncertainties is
not exhaustive and other factors could also adversely affect its
results. Readers are urged to consider the risks, uncertainties and
assumptions carefully in evaluating the forward-looking information and
are cautioned not to place undue reliance on such information.
Information contained in forward-looking statements in this news release
is provided as of the date of this news release and we disclaim any
obligation to update any forward-looking statements, whether as a result
of new information or future events or results, except to the extent
required by applicable securities laws.
All of the forward-looking statements made in this news release are
qualified by these cautionary statements and other cautionary statements
or factors contained herein and there can be no assurance that the
actual results or developments will be realized or, even if
substantially realized, that they will have the expected consequences
to, or effects on, the Company.
About Real Matters
Real Matters is a leading network management services provider for the
$16 billion mortgage lending and insurance industries. Real Matters’
platform combines its proprietary technology and network management
capabilities with tens of thousands of independent qualified field
agents to create an efficient marketplace for the provision of mortgage
lending and insurance industry services. Our clients include more than
60 of the top 100 mortgage lenders in the U.S. and some of the largest
insurance companies in North America. We are a leading independent
provider of residential real estate appraisals to the mortgage market
and a leading independent provider of title and mortgage closing
services in the U.S. Established in 2004, Real Matters has offices in
Buffalo (NY), Denver (CO), Middletown (RI), and Markham (ON). Real
Matters is listed on the Toronto Stock Exchange under the symbol REAL.
For more information, visit www.realmatters.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508005574/en/
Source: Real Matters Inc.