Black Knight, Inc. (NYSE:BKI) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 08:30 am ET


Black Knight, Inc. (NYSE:BKI) Q4 2018 Earnings Conference Call Transcript


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Greetings and welcome to the Black Knight Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ed Ewing, Investor Relations for Black Knight. Thank you. You may begin.

Ed Ewing

Thank you. Good morning, everyone and thank you for joining us for the Black Knight fourth Quarter 2018 earnings conference call. Joining me today are Chief Executive Officer, Anthony Jabbour; and Chief Financial Officer, Kirk Larsen. Our results were released this morning and the press release and supplemental slide presentation have been posted to our website. This conference call will include statements related to the expected future results for our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to the number of risks and uncertainties. The risks and uncertainties and forward-looking statements are subject to -- are described in our earnings release, Form 10-K and other SEC filings.

Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliations between non-GAAP financial information to the GAAP financial information as provided in the press release and supplemental slide presentation. This conference call will be available for replay via webcast through Black Knight's Investor Relations website at

I'll now turn the call over to Anthony.

Anthony M. Jabbour

Thank you, Ed, and good morning. Thank you for joining us for our fourth quarter earnings call. I'd like to take some time today to discuss highlights from 2018 and our plans for 2019. When I joined the company almost a year ago, I was excited about our opportunities to leverage our many industry touch points and drive innovation for our clients and the industry. A year later, I'm proud of the progress we made in 2018 and equally excited about our plans for the future.

Let me take the next few minutes to discuss what we're focused on in 2018 and how we delivered on our commitments. In 2018, we are committed to achieving our financial targets, working closely with our clients on implementations, adding top tier originators to our Empower platform, further penetrating the home equity loan market, and launching innovative solutions to help our clients.

From a financial performance perspective, 2018 was another solid year where we delivered on our targets. Adjusted revenue was $1.116 billion just above the midpoint of our original guidance range and up 6% from last year. Adjusted EBITDA was $542 million towards the high end of our original guidance range. And adjusted earnings per share was $1.87, which was above the high end of our range due to efficient capital allocation and the lower tax rate.

From an implementation perspective, we successfully converted a long list of top lenders onto our Empower loan origination system, including PNC, Fifth Third, Navy Federal Credit Union and Santander Bank. On the servicing side, we added more than