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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Q & A
Operator
Operator

Thank you. [Operator Instructions] We'll take our first question from Bill Warmington with Wells Fargo.

Analyst
Bill Warmington

Good afternoon, everyone.

Executive
Jim Balas

Hey, Bill.

Analyst
Bill Warmington

So the first question I wanted to ask was about the performance of U&WS versus the overall market. And I know it's not -- you have to pick your metric and that you've got part of the business with credit and flood being driven by the applications level. And then you've got the tax business being driven by the closing level. But it seems that at -- on an adjusted basis the 20% that you're showing for U&WS seems like that's quite a bit below the level of the inquiries and the closings. And so, the question that we've been getting from investors has been, what's with the gap, especially in light of mentions of share gains?

Executive
Jim Balas

Yeah. On the U&WS -- Bill, it's Jim. So property tax solutions was up 30% roughly on the quarter year-over-year. Floods were upper 20s and so forth really where we had -- the challenge was on the credit side of the business, which is a continuation of the share shifting that we've seen as we profiled in the past quarter. But all in all, we thought our core mortgage business has performed quite well.

Analyst
Bill Warmington

Okay. And then the...

Executive
Jim Balas

And then the valuation platforms were also strong performers in the similar growth profiles in the tax business.

Analyst
Bill Warmington

And so what -- on that headwind, you mentioned on the credit side for the three in one reports, when do you actually lap that?

Executive
Jim Balas

I think we get close to lapping it within the next quarter or so.

Analyst
Bill Warmington

Okay. And then for my second question, I wanted to ask about -- if we could talk about a bridge for EBITDA from the 2019 level, just under $500 million to the guidance for 2020, the $500 million to $525 million in terms of how you see yourself getting there, given the puts and takes coming from the different pieces of the business?

Executive
Jim Balas

Yeah. I mean, it's actually a fairly clean year because we've assumed a flat market. So we've embedded two to three points of organic growth as I think most of the notes reflected that they picked up as well. On that incremental revenue, it's the same pull-through that you would expect, roughly half of that falling near the bottom line. We also profiled within our bridge the $70 million which really doesn't carry a margin with it. And then there's the FX piece that we profiled roughly $10 million. We continue to see that Aussie dollar weaken. So we embedded that assumption in place.

And then the margin we put out with the guidance at 30%. We've shown good -- shown very well on the margin performance over the last two quarters. So we feel like, we're very well positioned to continue to hit 30 for the full year in 2020. We do have some productivity initiatives and so forth like we always do that is