CoreLogic, Inc. (NYSE:CLGX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 06:00 pm ET

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CoreLogic, Inc. (NYSE:CLGX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jim Balas

and cost productivity actions offset investments in new products, platforms and technology, currency translation and reduced housing market activity in Australia.

Finally, we continue to gain momentum and generate significant levels of free cash flow as we exited the year. For the 12 months ending December 31, 2019 free cash flow totaled $257 million, a 52% conversion rate of last 12 months adjusted EBITDA and an increase of approximately 400 basis points versus the third quarter.

Our relentless focus on operational productivity in building scaled and unique solutions has resulted in a durable and cash-generative business model. Over the past 10 years we have repurchased approximately 49 million or 42% of our common shares for approximately $1.5 billion. In 2019, we repurchased more than 2 million or 3% of our outstanding shares for $87 million. Additionally, we reduced our debt outstanding by approximately $110 million.

As we announced on December 11 of last year, we initiated our first ever quarterly common stock dividend of $0.22 per share. We would anticipate increasing the dividend over time as our financial results grow. While our current dividend represents approximately $70 million of the annual capital return, we continue to maintain flexibility to opportunistically repurchase shares.

I will close my prepared remarks today with a recap of our financial guidance. Our full year 2020 guidance issued on February 19, 2020 remains unchanged. With regard to the first quarter based on seasonality patterns, internal business activity and our current view of market unit volumes, we expect revenue to be in the range of $420 million to $440 million. In terms of adjusted EBITDA for the first quarter, we expect to be in the range of $117 million to $127 million, which represents a 20% to 30% increase from prior year.

Commencing with the reporting of our first quarter 2020 actual results, the company intends to provide an adjusted 2019 revenue measure that will incorporate the impact of the AMC transformation and the wind down of our non-core mortgage and default technology operations. The 2019 revenue impacts of our AMC transformation and the wind down of non-core technology units can be found in our revenue supplement posted on corelogic.com under Investor Relations.

To summarize, the CoreLogic team delivered strong financial results in 2019. We are well positioned to drive revenue growth and expand profitability in 2020 and beyond.

Thanks for your time today. I will now turn the call back over to the operator for Q&A.