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Lender Processing Services, Inc. Reports Strong First Quarter 2011 Earnings
Apr 28, 2011 (04:04 PM EDT)


Year-over-year adjusted EPS increases 1.3% to 81 cents per diluted share

JACKSONVILLE, Fla., April 28, 2011 /PRNewswire/ -- Lender Processing Services, Inc. (NYSE:LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today reported consolidated revenues of $556.2 million for the first quarter of 2011, a decrease of 6.1% compared to the first quarter of 2010, while net earnings of $55.9 million or 63 cents per diluted share in the first quarter of 2011 compared to $72.5 million or 75 cents per diluted share in the prior year quarter.

Adjusted net earnings for the first quarter of 2011 were $71.1 million, or 81 cents per diluted share, compared to $76.7 million, or 80 cents per diluted share in the first quarter of 2010.  Adjusted net earnings in the current quarter include an adjustment for purchase price amortization of 4 cents per diluted share and exclude a non-recurring charge of 14 cents per diluted share relating to cost reduction initiatives, while the prior year quarter included an adjustment for purchase price amortization of 5 cents per diluted share.

"LPS is off to a strong start in 2011 despite very difficult conditions in the origination and default markets and an ongoing challenging broader business environment.  LPS, with its strong market presence and its unique portfolio of end-to-end solutions, remains well positioned to continue to grow profitably in the years ahead," said Lee A. Kennedy, Executive Chairman of LPS.

"Our Mortgage Processing business had a strong quarter and our Other TD&A segment posted robust growth from continued market share gains.  Our Loan Facilitation business delivered good results in a difficult market while our Default Services business continued to be impacted by broader industry slowdowns.  We remained disciplined and focused in deploying our capital by repurchasing 2.5 million shares during the quarter," added Jeff Carbiener, President and CEO of LPS.

Operating income of $104.0 million in the first quarter of 2011 compared to $135.7 million in the prior year period. Adjusting for the charge noted earlier, operating income was $123.3 million in the first quarter of 2011.

Net cash provided by operating activities for the first quarter of 2011 was $120.4 million compared to $109.0 million in the same period last year.  Adjusted free cash flow (net cash provided by operating activities minus certain non-recurring expenses and additions to property, equipment and computer software) for the first quarter of  2011 was $101.3 million compared to $81.0 million for the first quarter of 2010 and was higher primarily due to contributions from changes in working capital.

Technology, Data and Analytics (TD&A)

Revenues for the segment were $199.2 million compared to $179.5 million in the first quarter of 2010, while operating income of $58.0 million (excluding the charge noted earlier) compared to $53.9 million in the same period last year.  Mortgage Processing revenues of $102.3 million compared to $97.6 million in the prior year period.  Other TD&A revenues of $96.9 million were 18.4% above the first quarter of 2010 primarily due to strong growth in our Other Software and Services offerings, as well as higher Desktop revenues. Overall operating income for TD&A was higher compared to the first quarter of 2010 primarily due to higher contributions from Mortgage Processing and our Desktop businesses.

Loan Transaction Services (LTS)

Revenues for the segment were $358.4 million compared to $415.3 million in the first quarter of 2010, and operating income of $88.5 million (excluding the charge noted earlier) compared to $98.8 million in the same period last year.  Loan Facilitation Services revenues of $137.3 million declined 6.4% compared to the first quarter of 2010.  This result compared very favorably to the Mortgage Bankers Association's (MBA) estimate of overall first quarter 2011 originations being 12% lower than the prior year quarter.  This positive variance was primarily due to continued market share gains in our settlement services offerings. Default Services revenues of $221.1 million declined 17.7% compared to the first quarter of 2010 as a result of continued delays in the initiation of foreclosure proceedings in the industry. Overall operating income for LTS declined mainly due to lower income in Default Services partly offset by higher contributions from Loan Facilitation Services.

Corporate and Other

Net corporate expenses were $37.2 million in the first quarter of 2011. Excluding the charge noted earlier, net corporate expenses of $23.1 million compared to $17.0 million in the prior year quarter and were up primarily due to higher legal and compliance related expenses.

The company noted that it had repurchased 2.5 million shares for $83.9 million in the first quarter.  Following these purchases, $87.6 million remains available under the current authorization.

Outlook

"We are off to a solid start in 2011, and while market conditions in some of our businesses and the broader economy remain challenging, LPS with its strong market presence remains in a good position to grow earnings in 2011," said Jeff Carbiener. "Building on the first quarter results, we expect second quarter 2011 adjusted earnings to be in the range of 79-82 cents per diluted share.  For full year 2011, given current market conditions, we now expect revenues to decline in the mid-single digit range compared to 2010, however, we expect adjusted earnings to increase 2-4% to $3.57 - $3.64 per diluted share."

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting.  GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.  In addition to reporting financial results in accordance with GAAP, LPS reports several non-GAAP measures, including "EBIT, as adjusted" (GAAP operating income adjusted for the impact of certain non-recurring adjustments, if applicable), "adjusted net earnings" (GAAP net earnings adjusted for the impact of certain non-recurring adjustments, if applicable, plus the after-tax purchase price amortization of intangible assets added through acquisitions), "adjusted net earnings per diluted share" (adjusted net earnings divided by diluted weighted average shares), and "adjusted free cash flow" (net cash provided by operating activities less additions to property, equipment and computer software, as well as non-recurring adjustments, if applicable). LPS provides these measures because it believes that they are helpful to investors in comparing year-over-year performance in light of certain non-recurring charges, and to better understand our financial performance, competitive position and future prospects.  Non-GAAP measures should be considered in conjunction with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings.  A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.

Conference Call and Webcast

LPS will host a conference call to discuss these results on Friday, April 29, 2011, at 8:00 a.m. ET. Interested parties are invited to listen to the live webcast by logging on to the Investor Relations section at www.lpsvcs.com.  Supplemental materials will be available on the website.  Those wishing to participate via the conference call may do so by calling  866-823-5035.  A replay of the webcast will be available on the website shortly after the call where it will be archived for one month.  A replay of the conference call will be available through May 6, 2011 by dialing 888-203-1112 (access code: 2599577).

To access a printer friendly version of this release and accompanying exhibits, go to http://www.lpsvcs.com/investor.

About Lender Processing Services

Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology, services and loan performance data and analytics to the mortgage, consumer lending, capital markets and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation, portfolio retention and default, augmented by the company's award-winning customer support and professional services. Almost half of all U.S. mortgages are serviced using LPS' Mortgage Servicing Package (MSP). For more information about LPS, visit www.lpsvcs.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.  The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: our ability to adapt our services to changes in technology or the marketplace; the impact of adverse changes in the level of real estate activity (including among others, loan originations and foreclosures) on demand for certain of our services; our ability to maintain and grow our relationships with our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state inquiries and examinations currently underway or that may be commenced in the future with respect to our default management operations, and with civil litigation related to these matters; changes to the laws, rules and regulations that regulate our businesses as a result of the current economic and financial environment; changes in general economic, business and political conditions, including changes in the financial markets; the impact of any potential defects, development delays, installation difficulties or system failures on our business and reputation; risks associated with protecting information security and privacy; and other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K, the Company's subsequent reports on Form 10-Q and other filings with the Securities and Exchange Commission.







Exhibit A















LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(Unaudited)


























Three months ended March 31,





2011


2010





(In thousands, except per share data)








Processing and services revenues


$               556,198


$             592,394








Cost of revenues


370,610


396,022









Gross profit


185,588


196,372








Selling, general and administrative expenses


81,627


60,720









Operating income


103,961


135,652








Other income (expense):






Interest income


330


623


Interest expense


(14,096)


(18,845)


Other expense, net


14


4



Total other income (expense)


(13,752)


(18,218)









Earnings before income taxes


90,209


117,434








Provision for income taxes


34,280


44,918










Net earnings


$                 55,929


$               72,516















Net earnings per share - diluted


$                     0.63


$                   0.75








Weighted average shares outstanding - diluted


88,134


96,416













Exhibit B























LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)




















March 31,


December 31,



2011


2010



(In thousands)

Assets





Current assets:



















Cash and cash equivalents


$                  4,844


$              52,287


Trade receivables, net of allowance for doubtful accounts


386,190


419,647


Other receivables



3,823


4,910


Prepaid expenses and other current assets


39,006


38,328


Deferred income taxes


44,516


44,102














Total current assets


478,379


559,274












Property and equipment, net of accumulated depreciation


122,759


123,897

Computer software, net of accumulated amortization


226,584


217,573

Other intangible assets, net of accumulated amortization


55,561


58,269

Goodwill






1,168,361


1,159,539

Other non-current assets


138,670


133,291














Total assets



$           2,190,314


$         2,251,843























Liabilities and Stockholders' Equity





Current liabilities:



















Current portion of long-term debt


$              145,155


$            145,154


Trade accounts payable


37,069


51,610


Accrued salaries and benefits


37,275


55,230


Recording and transfer tax liabilities


13,645


10,879


Other accrued liabilities


166,176


145,203


Deferred revenues


58,063


57,651



Total current liabilities


457,383


465,727












Deferred revenues



35,654


36,893

Deferred income taxes, net


107,442


96,732

Long-term debt, net of current portion


1,067,958


1,104,247

Other non-current liabilities


21,439


22,030














Total liabilities



1,689,876


1,725,629












Stockholders' equity:







Preferred stock $0.0001 par value; 50 million shares authorized, none issued at March 31, 2011 or December 31, 2010, respectively


-


-


Common stock $0.0001 par value; 500 million shares authorized, 97.4 million shares issued at March 31, 2011 and December 31, 2010, respectively


10


10


Additional paid-in capital


227,400


216,896


Retained earnings



643,313


596,168


Accumulated other comprehensive loss


(301)


(283)


Treasury stock $0.0001 par value; 11.1 million and 8.6 million shares at March 31, 2011 and December 31, 2010, respectively


(369,984)


(286,577)



Total stockholders' equity


500,438


526,214














Total liabilities and stockholders' equity


$           2,190,314


$         2,251,843




Exhibit C



LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)








Three Months ended March 31,



2011


2010



(In thousands)

Cash flows from operating activities:





  Net earnings


$                 55,929


$                72,516






  Adjustments to reconcile net earnings to net





     cash provided by operating activities:





        Depreciation and amortization


24,868


23,654

        Amortization of debt issuance costs


1,167


1,148

        Deferred income taxes, net


8,428


5,917

        Stock-based compensation cost


10,628


6,557

        Income tax benefit from exercise of stock options


(112)


766






        Changes in assets and liabilities, net of effects of acquisitions:





           Trade receivables


33,734


5,752

           Other receivables


1,087


403

           Prepaid expenses and other assets


(3,031)


(4,109)

           Deferred revenues


(1,900)


(4,941)

           Accounts payable, accrued liabilities and other liabilities


(10,358)


1,377






              Net cash provided by operating activities


120,440


109,040






Cash flows from investing activities:





  Additions to property and equipment


(7,060)


(12,265)

  Additions to capitalized software


(16,261)


(15,779)

  Purchases of investments, net of proceeds from sales


(3,732)


-

  Acquisition of title plants and property records data


(2,425)


-

  Acquisitions, net of cash acquired


(9,802)


-






              Net cash used in investing activities


(39,280)


(28,044)

Cash flows from financing activities:





  Debt service payments


(36,288)


(1,275)

  Exercise of stock options and restricted stock vesting


239


12,448

  Tax benefit associated with equity compensation


112


(766)

  Dividends paid


(8,784)


(9,566)

  Treasury stock repurchases


(83,882)


(26,427)

  Payment of contingent consideration related to acquisitions


-


(2,978)






              Net cash used in financing activities


(128,603)


(28,564)






              Net (decrease) increase in cash and cash equivalents


(47,443)


52,432






Cash and cash equivalents, beginning of period


52,287


70,528






Cash and cash equivalents, end of period


$                   4,844


$              122,960











Supplemental disclosures of cash flow information:





  Cash paid for interest


$                 20,897


$                25,839






  Cash paid for taxes


$                   4,713


$                  7,641




Exhibit D



LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES


SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED


(In thousands)





























Three months ended March 31,


Quarter ended


Year ended






2011


2010


3/31/2011


12/31/2010


9/30/2010


6/30/2010


3/31/2010


12/31/2010





















1.


Revenues






































Technology, Data and Analytics (TD&A):



















Mortgage Processing

$              102,334


$              97,634


$       102,334


$        100,341


$       102,362


$       102,356


$        97,634


$         402,693




Other TD&A

96,910


81,828


96,910


100,713


94,555


82,852


81,828


359,948





Total

199,244


179,462


199,244


201,054


196,917


185,208


179,462


762,641























Loan Transaction Services:



















Loan Facilitation Services

137,303


146,614


137,303


188,332


165,490


140,471


146,614


640,907




Default Services

221,121


268,671


221,121


251,327


265,572


275,046


268,671


1,060,616





Total

358,424


415,285


358,424


439,659


431,062


415,517


415,285


1,701,523























Corporate and Other

(1,470)


(2,353)


(1,470)


(1,893)


(1,939)


(1,644)


(2,353)


(7,829)
























Total Revenue

$              556,198


$            592,394


$       556,198


$        638,820


$       626,040


$       599,081


$      592,394


$      2,456,335























Revenue Growth from Prior Year Period






































Technology, Data and Analytics:



















Mortgage Processing

4.8%


7.1%


4.8%


-3.7%


-0.6%


14.3%


7.1%


3.8%




Other TD&A

18.4%


19.1%


18.4%


18.1%


13.5%


0.6%


19.1%


12.6%





Total

11.0%


12.2%


11.0%


6.1%


5.7%


7.7%


12.2%


7.8%























Loan Transaction Services:



















Loan Facilitation Services

-6.4%


23.0%


-6.4%


31.8%


21.1%


-5.4%


23.0%


17.1%




Default Services

-17.7%


5.2%


-17.7%


-9.8%


-12.6%


-8.2%


5.2%


-6.7%





Total

-13.7%


10.9%


-13.7%


4.3%


-2.1%


-7.3%


10.9%


1.0%























Corporate and Other

n/m


n/m


n/m


n/m


n/m


n/m


n/m


n/m
























Total Revenue

-6.1%


11.8%


-6.1%


5.0%


1.1%


-2.3%


11.8%


3.6%









































2.


Depreciation and Amortization






































Depreciation and Amortization

$                18,135


$              14,993


$         18,135


$          18,788


$         17,142


$         15,780


$        14,993


$           66,703



Purchase Price Amortization

5,045


6,718


5,045


6,469


5,710


5,884


6,718


24,781



Other Amortization

1,688


1,943


1,688


1,690


1,668


1,976


1,943


7,277




Total Depreciation and Amortization

$                24,868


$              23,654


$         24,868


$          26,947


$         24,520


$         23,640


$        23,654


$           98,761









































3.


Stock Compensation Expense






































Stock Compensation Expense, Excluding Acceleration Charges

$                  6,759


$                6,557


$           6,759


$            8,228


$           8,215


$           7,280


$          6,557


$           30,280



Stock Acceleration Expense

3,869


-


3,869


1,797


-


-


-


1,797




Total Stock Compensation Expense

$                10,628


$                6,557


$         10,628


$          10,025


$           8,215


$           7,280


$          6,557


$           32,077




Exhibit E


LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION - UNAUDITED

(In thousands, except per share data)


Three months ended March 31,


Quarter ended


Year ended


2011


2010


3/31/2011


12/31/2010


9/30/2010


6/30/2010


3/31/2010


12/31/2010

1.


EBIT











































Consolidated




















Revenue


$               556,198


$            592,394


$           556,198


$         638,820


$           626,040


$           599,081


$           592,394


$        2,456,335


























Cost of Sales 

370,610


396,022


370,610


437,963


417,243


390,847


396,022


1,642,075


























Selling, General and Administrative Expenses

81,627


60,720


81,627


72,299


64,516


59,815


60,720


257,350



























Operating Income 

103,961


135,652


103,961


128,558


144,281


148,419


135,652


556,910


























Less Non-recurring Charges: 




















Cash Related Restructuring Costs

15,503


-


15,503


2,472


-


-


-


2,472





Stock Related Restructuring Costs

3,869


-


3,869


1,797


-


-


-


1,797





Out of period adjustment 

-


-


-


9,800


-


-


-


9,800


























EBIT, as adjusted 

$               123,333


$            135,652


$           123,333


$         142,627


$           144,281


$           148,419


$           135,652


$           570,979


























EBIT Margin, as adjusted 

22.2%


22.9%


22.2%


22.3%


23.0%


24.8%


22.9%


23.2%


























Depreciation and Amortization 

$                 24,868


$              23,654


$             24,868


$           26,947


$             24,520


$             23,640


$             23,654


$             98,761

























Technology, Data and Analytics 



















Revenue


$               199,244


$            179,462


$           199,244


$         201,054


$           196,917


$           185,208


$           179,462


$           762,641


























Cost of Sales 

121,660


105,795


121,660


120,605


108,421


100,317


105,795


435,138


























Selling, General and Administrative Expenses

21,899


19,811


21,899


20,050


21,108


20,066


19,811


81,035



























Operating Income 

55,685


53,856


55,685


60,399


67,388


64,825


53,856


246,468


























Less Non-recurring Charges: 




















Cash Related Restructuring Costs (2)

2,284


-


2,284


-


-


-


-


-





Stock Related Restructuring Costs

-


-


-


-


-


-


-


-





Out of period adjustment, net of tax

-


-


-


-


-


-


-


-


























EBIT, as adjusted 

$                 57,969


$              53,856


$             57,969


$           60,399


$             67,388


$             64,825


$             53,856


$           246,468


























EBIT Margin, as adjusted 

29.1%


30.0%


29.1%


30.0%


34.2%


35.0%


30.0%


32.3%


























Depreciation and Amortization 

$                 18,350


$              16,538


$             18,350


$           18,905


$             16,532


$             16,047


$             16,538


$             68,022

























Loan Transaction Services 



















Revenue


$               358,424


$            415,285


$           358,424


$         439,659


$           431,062


$           415,517


$           415,285


$        1,701,523


























Cost of Sales 

250,365


292,609


250,365


317,285


310,780


292,107


292,609


1,212,781


























Selling, General and Administrative Expenses

22,541


23,857


22,541


26,440


23,561


21,798


23,857


95,656



























Operating Income 

85,518


98,819


85,518


95,934


96,721


101,612


98,819


393,086


























Less Non-recurring Charges: 




















Cash Related Restructuring Costs (2)

2,953


-


2,953


-


-


-


-


-





Stock Related Restructuring Costs

-


-


-


-


-


-


-


-





Out of period adjustment (3)

-


-


-


9,800


-


-


-


9,800


























EBIT, as adjusted 

$                 88,471


$              98,819


$             88,471


$         105,734


$             96,721


$           101,612


$             98,819


$           402,886


























EBIT Margin, as adjusted 

24.7%


23.8%


24.7%


24.0%


22.4%


24.5%


23.8%


23.7%


























Depreciation and Amortization 

$                   4,703


$                5,186


$               4,703


$             6,226


$               6,152


$               5,749


$               5,186


$             23,313

























Corporate and Other 



















Revenue


$                 (1,470)


$               (2,353)


$              (1,470)


$           (1,893)


$              (1,939)


$              (1,644)


$              (2,353)


$              (7,829)


























Cost of Sales 

(1,415)


(2,382)


(1,415)


73


(1,958)


(1,577)


(2,382)


(5,844)


























Selling, General and Administrative Expenses

37,187


17,052


37,187


25,809


19,847


17,951


17,052


80,659



























Operating Income 

(37,242)


(17,023)


(37,242)


(27,775)


(19,828)


(18,018)


(17,023)


(82,644)


























Less Non-recurring Charges: 




















Cash Related Restructuring Costs (2)(3)

10,266


-


10,266


2,472


-


-


-


2,472





Stock Related Restructuring Costs (2)(3)

3,869


-


3,869


1,797


-


-


-


1,797





Out of period adjustment, net of tax

-


-


-


-


-


-


-


-


























EBIT, as adjusted 

$               (23,107)


$             (17,023)


$            (23,107)


$         (23,506)


$            (19,828)


$            (18,018)


$            (17,023)


$            (78,375)


























Depreciation and Amortization 

$                   1,815


$                1,930


$               1,815


$             1,816


$               1,836


$               1,844


$               1,930


$               7,426























2.


Net Earnings - Reconciliation 



















Net Earnings  

$                 55,929


$              72,516


$             55,929


$           70,724


$             78,691


$             80,413


$             72,516


$           302,344


























Less Non-recurring Charges: 




















Cash Related Restructuring Costs, net of tax

9,612


-


9,612


1,533


-


-


-


1,533





Stock Related Restructuring Costs, net of tax

2,399


-


2,399


1,114


-


-


-


1,114





Out of period adjustment, net of tax

-


-


-


6,076


-


-


-


6,076






Net Earnings, as adjusted

67,940


72,516


67,940


79,447


78,691


80,413


72,516


311,067


























Purchase Price Amortization, net of tax (1)

3,128


4,148


3,128


4,059


3,526


3,633


4,148


15,366


























Adjusted Net Earnings 

$                 71,068


$              76,664


$             71,068


$           83,506


$             82,217


$             84,046


$             76,664


$           326,433


























Adjusted Net Earnings Per Diluted Share (2)

$                     0.81


$                  0.80


$                 0.81


$               0.92


$                 0.89


$                 0.89


$                 0.80


$                 3.50


























Diluted Weighted Average Shares

88,134


96,416


88,134


90,296


92,682


94,910


96,416


93,559























3.


Cashflow - Reconciliation 



















Cash Flows from Operating Activities:










































Net Earnings 

$                 55,929


$              72,516


$             55,929


$           70,724


$             78,691


$             80,413


$             72,516


$           302,344



























Less Non-recurring Charges:





















Cash Related Restructuring Costs, net of tax

4,152


-


4,152


1,533


-


-


-


1,533







Net Earnings, as adjusted

60,081


72,516


60,081


72,257


78,691


80,413


72,516


303,877



























Adjustments to reconcile net earnings to net cash provided by operating activities:






















Non-cash adjustments

44,979


38,042


44,979


51,625


41,548


34,591


38,042


165,806







Working capital adjustments

19,532


(1,518)


19,532


34,628


(35,191)


(17,375)


(1,518)


(19,456)





























      Net cash provided by operating activities

124,592


109,040


124,592


158,510


85,048


97,629


109,040


450,227



























Capital expenditures included in investing activities 

(23,321)


(28,044)


(23,321)


(24,150)


(26,940)


(29,122)


(28,044)


(108,256)



























Adjusted Net Free Cash Flow

$               101,271


$              80,996


$           101,271


$         134,360


$             58,108


$             68,507


$             80,996


$           341,971




Notes:













































(1)

Purchase price amortization, net of tax represents the periodic amortization of intangible assets acquired through business acquisitions primarily relating to customer lists, trademarks and non-compete agreements.





























(2)

During the three months ended March 31, 2011, we recorded a non-recurring charge totaling $19.4 million ($2.3 million in Technology, Data & Analytics, $3.0 million in Loan Transaction Services and $14.1 million in Corporate and Other) primarily related to personnel reductions made in connection with the Company's cost reduction program.





























(3)

During the three months ended December 31, 2010, we recorded an immaterial error correction within cost of revenues totaling $9.8 million related to fiscal years 2007 and 2008. Additionally, we recorded a $4.3 million charge ($2.5 million of compensation and $1.8 million of stock acceleration) related to the departure of our former chief financial officer.





SOURCE Lender Processing Services, Inc.