 Second Quarter 2020 Service revenue of 91.0 million Loss before income taxes and non-controlling interests of 33.7 million Adjusted pretax loss attributable to Altisource1 of 10.0 million Adjusted earnings before interest, taxes, depreciation and amortization EBITDA1 of 2.1 millionLUXEMBOURG, Aug. 06, 2020 GLOBE NEWSWIRE -- Altisource Portfolio Solutions S.A. Altisource or the Company NASDAQ: ASPS, a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the second quarter 2020.In the second quarter, Altisource faced an unprecedented and challenging business environment as a result of the COVID-19 pandemic. As anticipated, Altisources second quarter financial results reflect this impact with industrywide foreclosure initiations down by approximately 85 and lender completed foreclosures down by 75 compared to the second quarter of 2019. Despite this difficult environment, we acted quickly to reduce costs, work to mitigate the impact to our customers and support the safety of our employees. As result, the vast majority of our staff are working from home and we were able to preserve cash, ending the quarter with 68 million in cash and cash equivalents.We anticipate this short to medium term pressure on our default related businesses to continue with governmental forbearance programs and moratoriums temporarily preventing servicers from pursuing foreclosure of delinquent loans and with the news from Ocwen that an MSR investor instructed it to move certain referrals for field services to another service provider beginning in July. To address these challenges and protect our business, we are developing a plan to further reduce our costs. Based upon our current planning, we are forecasting Altisource to generate 2021 service revenue of 250 million to 270 million, adjusted EBITDA of 35 million to 43 million and adjusted EBITDA margins of 14 to 16, said Chairman and Chief Executive Officer William B. Shepro. Mr. Shepro further commented, Longer term, we believe that the overall market for our default related services will stabilize at a much higher rate than it was before the pandemic began, positioning Altisource to become a stronger, more diversified and fast growing company.Second Quarter 2020 Highlights2Financial and Corporate: Ended the second quarter 2020 with 68.2 million of cash and cash equivalents and 30.0 million of investment in equity securities Ended the second quarter 2020 with 195.6 million of net debt less investment in equity securities1, 4 lower than June 30, 2019 The Companys second quarter 2020 financial performance in its default related services businesses, including revenue from customers other than Ocwen Financial Corporation Ocwen, New Residential Investment Corp. NRZ and Front Yard Residential Corporation RESI, was negatively impacted by COVID-19 related governmental restrictions, government measures to provide financial support to borrowers i.e., foreclosure and eviction moratoriums, forbearance plans and higher unemployment benefits and changing vendor and consumer behavior To address lower anticipated revenue as a result of the pandemic, Altisource took several measures in the second quarter 2020 to reduce its 2020 cash expenses including employee furloughs and terminations, the elimination of certain discretionary spending and temporary employee and Board compensation reductions To address lower than previously anticipated revenue from Ocwen and the extension of foreclosure and eviction moratoriums, the Company is developing a plan to further reduce its costs with an objective to achieve 2021 Adjusted EBITDA margins of 14 to 16Business Highlights:Field Services Grew Field Services revenue from customers other than Ocwen, NRZ and RESI by 9 in the second quarter of 2020 compared to the second quarter of 2019Marketplace Grew Hubzu inventory from customers other than Ocwen, NRZ and RESI by 1 since June 30, 2019, with such inventory representing 43 of total Hubzu inventory as of June 30, 2020 Hubzu revenue from customers other than Ocwen, NRZ and RESI was 2 lower in the second quarter of 2020 compared to the second quarter of 2019Mortgage and Real Estate Solutions Grew Mortgage and Real Estate Solutions revenue from customers other than Ocwen, NRZ and RESI by 18 in the second quarter of 2020 compared to the second quarter of 2019Second Quarter 2020 Financial ResultsSecond quarter 2020 service revenue of 91.0 million was 52 lower than the second quarter 2019 primarily from the 2019 sale, discontinuation and exit from certain businesses resulting in a 33 decline in service revenue, including the July 1, 2019 sale of the Financial Services Business, lower REALServicing revenue from Ocwens migration to another servicing system, the discontinuation of the Buy-Renovate-Lease-Sell BRS business and the wind down of Owners.com. In addition, Service revenue was lower from COVID-19 pandemic related governmental restrictions and changing vendor and consumer behavior on demand for Field Services, Marketplace and default related services in Mortgage and Real Estate Solutions, the reduction in the size of Ocwens portfolio and NRZs more aggressive sale of homes at the foreclosure auction which reduces our real estate owned auction, brokerage, field services and title service revenue. These decreases were partially offset by a 5 increase in revenue from customers other than Ocwen, NRZ and RESI in our Field Services, Marketplace and Mortgage and Real Estate Solutions businesses from new customer on-boardings, market share expansion with existing customers, and higher origination related volumes driven by lower interest rates and business development efforts.Second quarter 2020 loss from operations of 17.8 million was lower than second quarter 2019 income from operations of 5.4 million primarily as a result of lower revenue as discussed above, changes in service mix with lower revenue from higher margin Marketplace businesses, the impact of the July 1, 2019 sale of the Financial Services business and higher restructuring costs. These decreases were partially offset by lower selling, general and administrative expenses and the benefits of our COVID-19 cash cost savings measures and higher revenue in the second quarter of 2019 from the sale of the majority of our BRS portfolio that resulted in a 1.8 million loss.Second quarter 2020 adjusted operating loss1 of 4.8 million compared to adjusted operating income1 of 15.5 million in the second quarter 2019, primarily from the impact of revenue declines discussed above, partially offset by the benefits of our COVID-19 cash cost savings measures.Second quarter 2020 loss before income taxes and non-controlling interests of 33.7 million compared to income before income taxes and non-controlling interests of 11.9 million in the second quarter 2019, primarily from an unrealized loss on our investment in RESI of 11.2 million in the second quarter 2020 compared to an unrealized gain on our investment in RESI of 11.8 million in the second quarter 2019 and lower operating income discussed above, partially offset by lower interest expense.Second quarter 2020 adjusted pretax loss attributable to Altisource1 of 10.0 million compared to adjusted pretax income attributable to Altisource1 of 8.9 million in the second quarter 2019, primarily from lower adjusted operating income1 discussed above, partially offset by lower interest expense.Second quarter 2020 adjusted EBITDA1 of 2.1 million compared to adjusted EBITDA1 of 19.5 million in the second quarter 2019, primarily from lower adjusted operating income1 discussed above, excluding the decrease in depreciation and amortization of premises and equipment.Second quarter 2020 net loss attributable to Altisource of 35.1 million compared to 5.8 million for the second quarter 2019, primarily due to lower income before income taxes and non-controlling interests discussed above, partially offset by a lower tax provision driven by a deferred tax adjustment of 12.3 million from an income tax rate change in Luxembourg in the second quarter 2019.Second quarter 2020 adjusted net loss attributable to Altisource1 of 11.8 million compared to adjusted net income attributable to Altisource1 of 5.9 million for the second quarter 2019, primarily from lower adjusted pretax income attributable to Altisource1 discussed above, partially offset by a lower tax provision excluding the Luxembourg deferred tax adjustment discussed above.Second quarter 2020 loss per diluted share of 2.25 compared to 0.36 for the second quarter 2019, primarily due to higher net loss attributable to Altisource discussed above, partially offset by fewer diluted shares outstanding from share repurchases during 2019.Second quarter 2020 adjusted loss per share1 of 0.76 compared to 0.36 earnings per share for the second quarter 2019, primarily due to lower adjusted net income attributable to Altisource1 discussed above, partially offset by fewer diluted shares outstanding from share repurchases during 2019. 