LENDER PROCESSING (LPS, Financial) filed Quarterly Report for the period ended 2010-03-31.
Lender Processing has a market cap of $3.42 billion; its shares were traded at around $35.82 with a P/E ratio of 10.9 and P/S ratio of 1.5. The dividend yield of Lender Processing stocks is 1%.LPS is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, Murray Stahl of Horizon Asset Management, Westport Asset Management, Lee Ainslie of Maverick Capital, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
We have approximately $1,288.1 million in long-term debt outstanding as of March 31, 2010, of which approximately $1,027.0 million bears interest at a fixed rate ($660.0 million through interest rate swaps), while the remaining portion bears interest at a floating rate. As a result of our current level of debt, we are highly leveraged and subject to risk from changes in interest rates. Having this amount of debt also makes us more susceptible to
Gross profit was $196.4 million and $175.1 million during the first quarter of 2010 and 2009, respectively. Gross profit as a percentage of processing and services revenues (gross margin) was 33.2% and 33.1% during the first quarter of 2010 and 2009, respectively. The nominal increase in gross margin during the first quarter of 2010 when compared to the first quarter of 2009 was a result of the factors described above.
Selling, general and administrative expenses decreased $10.5 million, or 14.7%, during the first quarter of 2010 when compared to the first quarter of 2009. Selling, general and administrative expenses as a percentage of processing and services revenues were 10.2% and 13.5% during the first quarter of 2010 and 2009, respectively. The decrease in selling, general and administrative expenses was primarily due to a $6.8 million charge recognized during the first quarter of 2009 related to the retirement of three LPS directors, as well as other one-time restructuring costs totaling $2.2 million that were recognized in the first quarter of 2009.
Other income and expense consists of interest income, interest expense and other items. The net expense was $18.2 million and $21.4 million during the first quarter of 2010 and 2009, respectively. The change during the first quarter of 2010 when compared to the first quarter of 2009 was primarily due to a decrease in interest expense resulting from lower interest rates and principal balances. Interest expense was $18.8 million and $21.9 million during the first quarter of 2010 and 2009, respectively.
Net earnings were $72.5 million and $50.0 million during the first quarter of 2010 and 2009, respectively. Net earnings per diluted share totaled $0.75 and $0.53 during the first quarter of 2010 and 2009, respectively. The increase during the first quarter of 2010 when compared to the first quarter of 2009 was a result of the factors described above.
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Lender Processing has a market cap of $3.42 billion; its shares were traded at around $35.82 with a P/E ratio of 10.9 and P/S ratio of 1.5. The dividend yield of Lender Processing stocks is 1%.LPS is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, Murray Stahl of Horizon Asset Management, Westport Asset Management, Lee Ainslie of Maverick Capital, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
According to the Mortgage Bankers Associations (MBA) current Mortgage Finance Forecast, U.S. mortgage originations (including refinancing) were approximately $2.1 trillion and $1.5 trillion in 2009 and 2008, respectively. The MBAs Mortgage Finance Forecast currently estimates an approximately $1.3 trillion mortgage origination market for 2010. The MBA further forecasts that this decrease will result primarily from less refinancing activity. The MBA estimates that loan origination volumes in the first quarter of 2010 were approximately 4% lower than the first quarter of 2009.We have approximately $1,288.1 million in long-term debt outstanding as of March 31, 2010, of which approximately $1,027.0 million bears interest at a fixed rate ($660.0 million through interest rate swaps), while the remaining portion bears interest at a floating rate. As a result of our current level of debt, we are highly leveraged and subject to risk from changes in interest rates. Having this amount of debt also makes us more susceptible to
Gross profit was $196.4 million and $175.1 million during the first quarter of 2010 and 2009, respectively. Gross profit as a percentage of processing and services revenues (gross margin) was 33.2% and 33.1% during the first quarter of 2010 and 2009, respectively. The nominal increase in gross margin during the first quarter of 2010 when compared to the first quarter of 2009 was a result of the factors described above.
Selling, general and administrative expenses decreased $10.5 million, or 14.7%, during the first quarter of 2010 when compared to the first quarter of 2009. Selling, general and administrative expenses as a percentage of processing and services revenues were 10.2% and 13.5% during the first quarter of 2010 and 2009, respectively. The decrease in selling, general and administrative expenses was primarily due to a $6.8 million charge recognized during the first quarter of 2009 related to the retirement of three LPS directors, as well as other one-time restructuring costs totaling $2.2 million that were recognized in the first quarter of 2009.
Other income and expense consists of interest income, interest expense and other items. The net expense was $18.2 million and $21.4 million during the first quarter of 2010 and 2009, respectively. The change during the first quarter of 2010 when compared to the first quarter of 2009 was primarily due to a decrease in interest expense resulting from lower interest rates and principal balances. Interest expense was $18.8 million and $21.9 million during the first quarter of 2010 and 2009, respectively.
Net earnings were $72.5 million and $50.0 million during the first quarter of 2010 and 2009, respectively. Net earnings per diluted share totaled $0.75 and $0.53 during the first quarter of 2010 and 2009, respectively. The increase during the first quarter of 2010 when compared to the first quarter of 2009 was a result of the factors described above.
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