As part of its previously announced strategic business plan, CoreLogic says it is looking to sell its Asset Management and Processing Solutions (AMPS) segment.
For the fourth quarter of 2013, the AMPS segment earned $55.9 million in revenue but suffered an operating loss of $42.2 million. The fourth quarter operating loss includes a non-cash goodwill impairment charge of $51.8 million, the company reports.
In addition, the real estate data and analytics company announced that it plans to divide its operations into two separate segments – data and analytics (D&A) and technology and processing solutions (TPS).
‘CoreLogic is continuing to execute against the strategic business plan we outlined just over two years ago," says Anand Nallathambi, president and CEO of CoreLogic, in a release. ‘We are taking aggressive actions to further sharpen our focus on CoreLogic's core businesses, which are uniquely positioned to capitalize on our competitive strengths in data and analytics, payment processing, and data-enabled services. These businesses benefit from their leading market presence, unique data assets, intellectual property and world-class domain expertise."
"The actions announced today position CoreLogic to continue to drive scale and operating leverage in our core operations," adds Frank Martell, chief financial officer of CoreLogic. "Despite lower mortgage origination volumes in 2014, we expect to continue to make progress toward our imperative of growing our D&A segment to over 50 percent of our total revenues, and our TPS operations are well-positioned to outperform their respective markets."
As per the release, CoreLogic's D&A division will include its property information and analytics, insurance and spatial solutions, and specialty services departments. In addition, the D&A segment has been expanded through the company's recent acquisition of EQECAT Inc., a firm that provides analytics that helps lenders and investors measure the risk of natural and man-made disasters on properties in portfolio. More specifically, EQECAT will be integrated into the insurance and spatial solutions department.
CoreLogic's TPS division will include its residential and commercial property tax processing, originations, and underwriting services (credit and verification services and flood zone determination) and technology and outsourcing solutions (previously reported in the former mortgage origination services) departments.
In addition, the company's document processing, retrieval and loan file review operations will be transferred from D&A to TPS.
CoreLogic management will discuss fourth quarter and full year 2013 financial results during a live webcast and conference call scheduled for 8 a.m. Pacific Time (11 a.m. Eastern Time), Wednesday, Feb. 26.
