GlobeNewswire Inc | Jul 29, 2021 07:11AM EDT

July 29, 2021

LUXEMBOURG, July 29, 2021 (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 2021.

While the last year and half presented a challenging operating environment for Altisource, I am very excited about the future for our Origination and Default businesses. We believe we are positioning Altisource as a more diversified company and anticipate a return to growth in 2022. Our Origination business continued its year-over-year growth with second quarter revenue of $14.5 million, representing 16% growth compared to the second quarter of 2020, outpacing the estimated 13% growth in the overall origination market during the same period. The default market and our Default business have been severely impacted by the pandemic. However, we recently gained additional clarity on the timing of the recovery of the default market. The Federal government extended its foreclosure and eviction moratoriums by one month through July 2021 and indicated this will be the last extension. The CFPB also finalized its rules on temporary loss mitigation measures which essentially prohibit foreclosure initiations until January 1, 2022, other than a few exceptions including for those loans that were 120 days or more delinquent prior to the pandemic. Based on this clarity, we believe the Default business will grow in 2022 and stabilize during 2023. We estimate that our Default business revenue could grow on a stabilized basis to between $230 and $352 million, said Chairman and Chief Executive Officer William B. Shepro.

Mr. Shepro further commented, With our Origination businesss unique distribution engine, mission critical solutions and strong growth prospects, we believe this business will be a significant catalyst to create value for shareholders. Notably, there are several companies that we believe have similar business models to Lenders Onewhich recently executed capital market transactions at attractive valuations. Given these attractive market comparables and the progress we are making with the Origination business, we are evaluating ways to enhance shareholder value. These options may include a potential divestiture, joint venture, third party investment in or other strategic transaction, as well as retaining and investing in the business.

There can be no assurance that any exploration of ways to enhance shareholder value relating to the Origination business will result in any transaction or other actions by us. The Company does not intend to provide updates unless and until Altisource determines that further disclosure is appropriate or required.

Second Quarter 2021 Highlights(1)

Corporate and Financial

-- Ended the second quarter 2021 with $35.3 million of cash and cash equivalents -- Ended the second quarter 2021 with $211.9 million of net debt(2) -- Entered into a revolving credit facility that provides Altisource with the ability to borrow a maximum amount of $20 million through June 22, 2022, $15 million through June 22, 2023, and $10 million until theJune 22, 2024 maturity

Business Highlights

-- Service revenue from our Origination business grew by 16% in the second quarter of 2021 to $14.5 million compared to the second quarter of 2020; the Origination business has a diversified customer base with no single customer representing more than 12% of service revenue in the first half of 2021 -- On May 5, 2021 Altisource entered into an agreement with Ocwen which extended the terms of certain services agreements from August 2025 through August 2030 and expanded the scope of solutions to include, among others,the opportunity for the Company to provide first and second chance foreclosure auctions on Federal Housing Administration (FHA) loans, field services on Ocwens FHA, Veterans Affairs and United States Department of Agriculture loans (collectively, Government Loans), and title services on FHA and Veterans Affairs loans, subject to a process to confirm Altisources ability to meet reasonable performance requirements. -- During the second quarter of 2021, Ocwen transitioned over 1,900 of its FHA first chance foreclosure auction inventory to us and increased our percentage of field services referrals on its Government Loans. -- To address lower revenue in the Default business, the Company aggressively reduced cash costs and simplified the organization; second quarter 2021 cash operating costs (excluding outside fees and services) were $6.8 million lower than first quarter 2021 cash operating costs; we expect full year 2021 cash operating costs should be more than $20 million lower than first quarter 2021 cash operating costs

Second Quarter 2021 Financial Results

-- Service revenue of $44.0 million -- Loss before income taxes and non-controlling interests of $(18.1) million -- Adjusted pre-tax loss attributable to Altisource(2) of $(11.3) million -- Adjusted EBITDA(2) of $(6.7) million -- Net loss attributable to Altisource of $(18.5) million, or $(1.17) per diluted share -- Adjusted net loss attributable to Altisource(2) of $(10.9) million, or $(0.69) per diluted share

Second Quarter and Year-to-Date June 30, 2021 Results Compared to the Second Quarter and Year-to-Date June 30, 2020:

(in thousands, Second Second % Year-to-Date Year-to-Date %except per Quarter Quarter Change June 30, June 30, Changeshare data) 2021 2020 2021 2020Service revenue $ 43,966 $ 91,008 (52 ) $ 92,046 $ 204,184 (55 )Loss from (14,552 ) (17,756 ) (18 ) (33,131 ) (21,911 ) 51 operationsAdjustedoperating (7,622 ) (4,769 ) 60 (17,843 ) 3,732 N/M (loss) income^(2)Loss beforeincome taxesand (18,070 ) (33,747 ) (46 ) (39,142 ) (42,871 ) (9 )non-controllinginterestsPretax lossattributable to (17,891 ) (33,944 ) (47 ) (39,050 ) (43,173 ) (10 )Altisource^(2)Adjusted pretaxloss (11,279 ) (10,033 ) 12 (24,365 ) (5,598 ) 335 attributable toAltisource^(2)Adjusted EBITDA (6,731 ) (2,068 ) (225 ) (15,248 ) 11,095 (237 )^(2)Net lossattributable to (18,475 ) (35,061 ) (47 ) (40,477 ) (46,711 ) (13 )AltisourceAdjusted netloss (10,910 ) (11,779 ) (7 ) (25,253 ) (9,127 ) 177 attributable toAltisource^(2)Diluted loss (1.17 ) (2.25 ) (48 ) (2.57 ) (3.00 ) (14 )per shareAdjusteddiluted loss (0.69 ) (0.76 ) (9 ) (1.60 ) (0.59 ) 173 per share^(2)Cash flows usedin operating (5,965 ) (9,568 ) (38 ) (22,775 ) (11,216 ) 103 activitiesAdjusted cashflows used inoperatingactivities less (6,191 ) (10,523 ) (41 ) (23,468 ) (12,682 ) 85 additions topremises andequipment^(2)

N/M - not meaningful.

-- Second quarter 2021 and 2020 loss from operations include losses of $2.6 million and $2.4 million, respectively, ($5.0 million and $5.1 million for year-to-date June30, 2021 and 2020, respectively) from our earlier stage business. Second quarter and year-to-date June30, 2021 loss from operations also includes $0.8 million and $2.7 million, respectively, of cost savings initiatives and other (no comparable amounts in 2020). Second quarter and year-to-date June30, 2020 loss from operations also includes $5.8 million and $8.7 million, respectively, of restructuring charges related to Project Catalyst (no comparable amounts in 2021). -- Second quarter and year-to-date June30, 2020 pretax loss attributable to Altisource(2) include unrealized mark-to-market losses on our equity investment in RESI of $11.2 million and $12.6 million, respectively (no comparable amounts in 2021). -- Second quarter 2021 and 2020 net loss attributable to Altisource includes $1.0 million and $0.5 million, respectively ($1.0 million and $2.4 million for year-to-date June30, 2021 and 2020, respectively) of certain income tax items related to adjustments to foreign income tax reserves, the impact of a decrease in the India and Luxembourg income tax rates on deferred tax assets and an India restructuring from net loss attributable to Altisource.

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(1) Applies to 2021 unless otherwise indicated. (2) This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition. These statements may be identified by words such as anticipate, intend, expect, may, could, should, would, plan, estimate, seek, believe, potential or continue or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I Risk Factors in our Form 10-K filing with the Securities and Exchange Commission, as the same may be updated from time to time in our Form 10-Q filings. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to the COVID-19 pandemic, customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs, the timing of the expiration of such moratoriums and programs, and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our Credit Agreement, including the financial and other covenants contained therein, as well as Altisources ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon.

Webcast

Altisource will host a webcast at 8:30 a.m. EDT today to discuss our second quarter. A link to the live audio webcast will be available on Altisources website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.

About Altisource

Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.

FOR FURTHER INFORMATION CONTACT:

Michelle D. EstermanChief Financial OfficerT: (770) 612-7007E: Michelle.Esterman@altisource.com

ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(in thousands, except per share data)(unaudited)

Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Service revenue $ 43,966 $ 91,008 $ 92,046 $ 204,184 Reimbursable expenses 1,936 3,840 3,949 11,685 Non-controlling 139 494 511 917 interestsTotal revenue 46,041 95,342 96,506 216,786 Cost of revenue 42,101 78,788 90,246 165,524 Reimbursable expenses 1,936 3,840 3,949 11,685 Gross profit 2,004 12,714 2,311 39,577 Operating expenses: Selling, general and 16,556 24,701 35,442 52,794 administrative expensesRestructuring charges ? 5,769 ? 8,694 Loss from operations (14,552 ) (17,756 ) (33,131 ) (21,911 )Other income (expense), netInterest expense (3,475 ) (4,446 ) (6,917 ) (9,162 )Unrealized loss oninvestment in equity ? (11,224 ) ? (12,571 )securitiesOther income (expense), (43 ) (321 ) 906 773 netTotal other income (3,518 ) (15,991 ) (6,011 ) (20,960 )(expense), net Loss before incometaxes and (18,070 ) (33,747 ) (39,142 ) (42,871 )non-controllinginterestsIncome tax provision (584 ) (1,117 ) (1,427 ) (3,538 ) Net loss (18,654 ) (34,864 ) (40,569 ) (46,409 )Net loss (income)attributable to 179 (197 ) 92 (302 )non-controllinginterests Net loss attributable $ (18,475 ) $ (35,061 ) $ (40,477 ) $ (46,711 )to Altisource Loss per share: Basic $ (1.17 ) $ (2.25 ) $ (2.57 ) $ (3.00 )Diluted $ (1.17 ) $ (2.25 ) $ (2.57 ) $ (3.00 ) Weighted average shares outstanding:Basic 15,830 15,601 15,774 15,549 Diluted 15,830 15,601 15,774 15,549 Comprehensive loss: Comprehensive loss, net $ (18,654 ) $ (34,864 ) $ (40,569 ) $ (46,409 )of taxComprehensive loss(income) attributable 179 (197 ) 92 (302 )to non-controllinginterests Comprehensive lossattributable to $ (18,475 ) $ (35,061 ) $ (40,477 ) $ (46,711 )Altisource

ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED BALANCE SHEETS(in thousands, except for per share data)(unaudited)

June 30, December 2021 31, 2020 ASSETSCurrent assets: Cash and cash equivalents $ 35,329 $ 58,263 Accounts receivable, net 17,756 22,413 Prepaid expenses and other current assets 19,074 19,479 Total current assets 72,159 100,155 Premises and equipment, net 10,196 11,894 Right-of-use assets under operating leases 12,287 18,213 Goodwill 73,849 73,849 Intangible assets, net 40,816 46,326 Deferred tax assets, net 5,284 5,398 Other assets 7,525 9,850 Total assets $ 222,116 $ 265,685 LIABILITIES AND EQUITYCurrent liabilities: Accounts payable and accrued expenses $ 59,693 $ 56,779 Deferred revenue 5,727 5,461 Other current liabilities 6,828 9,305 Total current liabilities 72,248 71,545 Long-term debt 243,386 242,656 Deferred tax liabilities, net 9,290 8,801 Convertible debt payable to related parties 1,200 ? Other non-current liabilities 19,716 25,239 Commitments, contingencies and regulatory matters Equity (deficit): Common stock ($1.00 par value; 100,000 sharesauthorized, 25,413 issued and 15,897 outstanding as 25,413 25,413 of June30, 2021; 15,664 outstanding as ofDecember31, 2020)Additional paid-in capital 143,552 141,473 Retained earnings 135,270 190,383 Treasury stock, at cost (9,516 shares as of June30, (427,325 ) (441,034 )2021 and 9,749 shares as of December31, 2020)Altisource deficit (123,090 ) (83,765 ) Non-controlling interests (634 ) 1,209 Total deficit (123,724 ) (82,556 ) Total liabilities and deficit $ 222,116 $ 265,685

ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)

Six months ended June 30, 2021 2020 Cash flows from operating activities: Net loss $ (40,569 ) $ (46,409 )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 2,335 7,701 Amortization of right-of-use assets under operating 4,513 5,474 leasesAmortization of intangible assets 5,510 7,049 Unrealized loss on investment in equity securities ? 12,571 Share-based compensation expense 2,079 4,824 Bad debt expense 615 1,066 Amortization of debt discount 334 333 Amortization of debt issuance costs 396 366 Deferred income taxes 65 261 Loss on disposal of fixed assets 8 99 Changes in operating assets and liabilities: Accounts receivable 4,042 7,212 Prepaid expenses and other current assets 405 1,057 Other assets 851 868 Accounts payable and accrued expenses 2,962 (6,734 )Current and non-current operating lease liabilities (4,855 ) (6,024 )Other current and non-current liabilities (1,466 ) (930 )Net cash used in operating activities (22,775 ) (11,216 ) Cash flows from investing activities: Additions to premises and equipment (693 ) (1,466 )Proceeds from the sale of business 3,000 ? Net cash provided by (used in) investing activities 2,307 (1,466 ) Cash flows from financing activities: Proceeds from convertible debt payable to related 1,200 ? partiesDistributions to non-controlling interests (1,751 ) (491 )Payments of tax withholding on issuance of restricted (927 ) (1,417 )share units and restricted sharesNet cash used in financing activities (1,478 ) (1,908 ) Net decrease in cash, cash equivalents and restricted (21,946 ) (14,590 )cashCash, cash equivalents and restricted cash at the 62,096 86,583 beginning of the period Cash, cash equivalents and restricted cash at the end $ 40,150 $ 71,993 of the period Supplemental cash flow information: Interest paid $ 6,214 $ 8,463 Income taxes paid (received), net 1,515 (944 )Acquisition of right-of-use assets with operating 2,327 958 lease liabilitiesReduction of right-of-use assets from operating lease (3,740 ) (1,715 )modifications or reassessments Non-cash investing and financing activities: Net (decrease) increase in payables for purchases of $ (48 ) $ 469 premises and equipment

ALTISOURCE PORTFOLIO SOLUTIONS S.A.NON-GAAP MEASURES(in thousands, except per share data)(unaudited)

Adjusted operating (loss) income, pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted net loss attributable to Altisource, adjusted diluted loss per share, cash flows used in operating activities less additions to premises and equipment and net debt less investment in equity securities, which are presented elsewhere in this earnings release, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisources performance and do not purport to be alternatives to loss from operations, loss before income taxes and non-controlling interests, net loss attributable to Altisource, diluted loss per share, cash flows used in operating activities and long-term debt, including current portion, as measures of Altisources performance. We believe these measures are useful to management, existing shareholders, potential shareholders and other users of our financial information in evaluating operating profitability and cash flow generation more on the basis of continuing cost and cash flows as they exclude amortization expense related to acquisitions that occurred in prior periods and non-cash share-based compensation, as well as the effect of more significant non-operational items from earnings, cash flows from operating activities and long-term debt net of cash on-hand and investment in equity securities. We believe these measures are also useful in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with managements evaluation of business performance. Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis.

It is managements intent to provide non-GAAP financial information to enhance the understanding of Altisources GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. The non-GAAP financial information should not be unduly relied upon.

Adjusted operating (loss) income is calculated by removing intangible asset amortization expense, share-based compensation expense, Pointillist losses, cost of cost savings initiatives and other and restructuring charges from loss from operations. Pretax loss attributable to Altisource is calculated by removing non-controlling interests from loss before income taxes and non-controlling interests. Adjusted pretax loss attributable to Altisource is calculated by removing non-controlling interests, intangible asset amortization expense, share-based compensation expense, Pointillist losses, cost of cost savings initiatives and other, restructuring charges and unrealized loss on investment in equity securities from loss before income taxes and non-controlling interests. Adjusted EBITDA is calculated by removing the income tax provision, interest expense (net of interest income), depreciation and amortization, share-based compensation expense, Pointillist losses, cost of cost savings initiatives and other, restructuring charges and unrealized loss on investment in equity securities from net loss attributable to Altisource. Adjusted net loss attributable to Altisource is calculated by removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), Pointillist losses (net of tax), cost of cost savings initiatives and other (net of tax), restructuring charges (net of tax), unrealized loss on investment in equity securities (net of tax), and certain income tax items related to the decrease in the India income tax rate from adjustments to deferred tax assets and adjustments to foreign income tax reserves from net loss attributable to Altisource. Adjusted diluted loss per share is calculated by dividing net loss attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), Pointillist losses (net of tax), cost of cost savings initiatives and other (net of tax), restructuring charges (net of tax), unrealized loss on investment in equity securities (net of tax), and certain income tax related items by the weighted average number of diluted shares. Cash flows used in operating activities less additions to premises and equipment is calculated by removing additions to premises and equipment from cash flows used in operating activities. Net debt less investment in equity securities is calculated as long-term debt, including current portion, minus cash and cash equivalents and investment in equity securities.

Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows:

Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Loss from operations $ (14,552 ) $ (17,756 ) $ (33,131 ) $ (21,911 ) Intangible asset 2,911 2,840 5,510 7,049 amortization expenseShare-based compensation 641 1,930 2,079 4,824 expensePointillist losses 2,608 2,448 4,961 5,076 Cost of cost savings 770 ? 2,738 ? initiatives and otherRestructuring charges ? 5,769 ? 8,694 Adjusted operating (loss) $ (7,622 ) $ (4,769 ) $ (17,843 ) $ 3,732 income Loss before income taxesand non-controlling $ (18,070 ) $ (33,747 ) $ (39,142 ) $ (42,871 )interests Non-controlling interests 179 (197 ) 92 (302 )Pretax loss attributable (17,891 ) (33,944 ) (39,050 ) (43,173 )to AltisourceIntangible asset 2,911 2,840 5,510 7,049 amortization expenseShare-based compensation 641 1,930 2,079 4,824 expensePointillist losses 2,290 2,148 4,358 4,437 Cost of cost savings 770 ? 2,738 ? initiatives and otherRestructuring charges ? 5,769 ? 8,694 Unrealized loss oninvestment in equity ? 11,224 ? 12,571 securities Adjusted pretax lossattributable to $ (11,279 ) $ (10,033 ) $ (24,365 ) $ (5,598 )Altisource Net loss attributable to $ (18,475 ) $ (35,061 ) $ (40,477 ) $ (46,711 )Altisource Income tax provision 584 1,117 1,427 3,538 Interest expense (net of 3,482 4,440 6,945 9,082 interest income)Depreciation and 4,062 6,424 7,845 14,750 amortizationShare-based compensation 641 1,930 2,079 4,824 expensePointillist losses 2,205 2,089 4,195 4,347 Cost of cost savings 770 ? 2,738 ? initiatives and otherRestructuring charges ? 5,769 ? 8,694 Unrealized loss oninvestment in equity ? 11,224 ? 12,571 securities Adjusted EBITDA $ (6,731 ) $ (2,068 ) $ (15,248 ) $ 11,095 Net loss attributable to $ (18,475 ) $ (35,061 ) $ (40,477 ) $ (46,711 )Altisource Intangible assetamortization expense, net 2,907 2,814 5,502 6,997 of taxShare-based compensation 677 1,727 1,959 4,370 expense, net of taxPointillist losses, net 2,290 1,648 4,358 3,405 of taxCost of cost savingsinitiatives and other, 665 ? 2,368 ? net of taxRestructuring charges, ? 5,352 ? 7,849 net of taxUnrealized loss oninvestment in equity ? 11,224 ? 12,571 securities, net of taxCertain income tax 1,026 517 1,037 2,392 related items Adjusted net lossattributable to $ (10,910 ) $ (11,779 ) $ (25,253 ) $ (9,127 )Altisource Diluted loss per share $ (1.17 ) $ (2.25 ) $ (2.57 ) $ (3.00 ) Intangible assetamortization expense, net 0.18 0.18 0.35 0.45 of tax, per diluted shareShare-based compensationexpense, net of tax, per 0.04 0.11 0.12 0.28 diluted sharePointillist losses, net 0.14 0.11 0.28 0.22 of tax, per diluted shareCost of cost savingsinitiatives and other, 0.04 ? 0.15 ? net of tax, per dilutedshareRestructuring charges,net of tax, per diluted ? 0.34 ? 0.50 shareUnrealized loss oninvestment in equity ? 0.72 ? 0.81 securities, net of tax,per diluted shareCertain income taxrelated items per diluted 0.06 0.03 0.07 0.15 share Adjusted diluted loss per $ (0.69 ) $ (0.76 ) $ (1.60 ) $ (0.59 )share Calculation of the impactof intangible asset amortization expense, netof taxIntangible asset $ 2,911 $ 2,840 $ 5,510 $ 7,049 amortization expenseTax benefit fromintangible asset (4 ) (26 ) (8 ) (52 )amortizationIntangible assetamortization expense, net 2,907 2,814 5,502 6,997 of taxDiluted share count 15,830 15,601 15,774 15,549 Intangible assetamortization expense, net $ 0.18 $ 0.18 $ 0.35 $ 0.45 of tax, per diluted share Calculation of the impactof share-based compensation expense, netof taxShare-based compensation $ 641 $ 1,930 $ 2,079 $ 4,824 expenseTax provision (benefit)from share-based 36 (203 ) (120 ) (454 )compensation expenseShare-based compensation 677 1,727 1,959 4,370 expense, net of taxDiluted share count 15,830 15,601 15,774 15,549 Share-based compensationexpense, net of tax, per $ 0.04 $ 0.11 $ 0.12 $ 0.28 diluted share Calculation of the impactof Pointillist losses, net of taxPointillist losses $ 2,290 $ 2,148 $ 4,358 $ 4,437 Tax benefit from ? (500 ) ? (1,032 )Pointillist lossesPointillist losses, net 2,290 1,648 4,358 3,405 of taxDiluted share count 15,830 15,601 15,774 15,549 Pointillist losses, net $ 0.14 $ 0.11 $ 0.28 $ 0.22 of tax, per diluted share Calculation of the impactof cost of cost savings initiatives and other,net of taxCost of cost savings $ 770 $ ? $ 2,738 $ ? initiatives and otherTax benefit from cost ofcost savings initiatives (105 ) ? (370 ) ? and otherCost of cost savingsinitiatives and other, 665 ? 2,368 ? net of taxDiluted share count 15,830 15,601 15,774 15,549 Cost of cost savingsinitiatives and other, $ 0.04 $ ? $ 0.15 $ ? net of tax, per dilutedshare Calculation of the impactof restructuring charges, net of taxRestructuring charges $ ? $ 5,769 $ ? $ 8,694 Tax benefit from ? (417 ) ? (845 )restructuring chargesRestructuring charges, ? 5,352 ? 7,849 net of taxDiluted share count 15,830 15,601 15,774 15,549 Restructuring charges,net of tax, per diluted $ ? $ 0.34 $ ? $ 0.50 share Calculation of the impactof the unrealized loss on investment in equitysecurities, net of taxUnrealized loss oninvestment in equity $ ? $ 11,224 $ ? $ 12,571 securitiesTax provision from theunrealized loss on ? ? ? ? investment in equitysecuritiesUnrealized loss oninvestment in equity ? 11,224 ? 12,571 securities, net of taxDiluted share count 15,830 15,601 15,774 15,549 Unrealized loss oninvestment in equity $ ? $ 0.72 $ ? $ 0.81 securities, net of tax,per diluted share Certain income taxrelated items resulting from:India income tax rate $ ? $ ? $ ? $ 1,384 changesForeign income tax 1,026 517 1,037 1,008 reserves/otherCertain income tax 1,026 517 1,037 2,392 related itemsDiluted share count 15,830 15,601 15,774 15,549 Certain income taxrelated items per diluted $ 0.06 $ 0.03 $ 0.07 $ 0.15 share Cash flows used in $ (5,965 ) $ (9,568 ) $ (22,775 ) $ (11,216 )operating activitiesLess: additions to (226 ) (955 ) (693 ) (1,466 )premises and equipment Cash flows used inoperating activities less $ (6,191 ) $ (10,523 ) $ (23,468 ) $ (12,682 )additions to premises andequipment

June 30, June 30, 2021 2020 Senior secured term loan $ 247,204 $ 293,826 Less: Cash and cash equivalents (35,329 ) (68,177 )Less: Investment in equity securities ? (30,047 ) Net debt less investment in equity securities^(1) $ 211,875 $ 195,602

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Note: Amounts may not add to the total due to rounding.(1) Excludes $1.2 million of Pointillist debt that is convertible into Pointillist Equity