GlobeNewswire Inc | Nov 4, 2021 07:56AM EDT

November 04, 2021

LUXEMBOURG, Nov. 04, 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 third quarter 2021.

We believe Altisource is well positioned for 2022 and beyond. Our Default business should generate significant revenue and earnings growth as we return to a more normal post-pandemic operating environment. We are executing on our strategic plan in our Origination business and believe this will also be a significant driver for growth. As a result, we anticipate that we will generate positive cash flow in the second half of 2022 on a significantly reduced cost structure. Finally, the anticipated sale of our equity interest in Pointillist significantly strengthens our balance sheet by adding an estimated $100 million of cash at closing, said Chairman and Chief Executive Officer William B. Shepro.

Third Quarter 2021 Highlights(1)

Corporate and Financial

-- On October 6, 2021, the shareholders of Pointillist, Inc. (Pointillist), a majority owned subsidiary of Altisource, entered into a definitive Stock Purchase Agreement to sell Pointillist to Genesys Cloud Services, Inc. (Genesys) for $150 million (the Purchase Price) The Purchase Price consists of an up-front payment of $145 million, subject to certain adjustments at closing, including a working capital adjustment, and an additional $5 million to be held in an escrow account to satisfy certain Genesys indemnification claims that may arise on or prior to the first anniversary of the sale closing, with the balance to be paid thereafterOn a fully diluted basis, Altisource owns approximately 69% of the equity at PointillistAltisource estimates that it will receive approximately $100 million in cash at closing, subject to a working capital adjustment, and an additional $3.7 million following the on-year anniversary of closing, assuming no indemnification claimsThe Company estimates the sale will generate a pre-tax and after-tax gain of $107 million before any potential reduction of goodwillThe transaction is anticipated to close before the end of the 2021 calendar year, subject to the satisfaction or waiver of customary closing conditions including regulatory approval -- Ended the third quarter 2021 with $36.5 million of cash and cash equivalents -- Ended the third quarter 2021 with $230.7 million of net debt(2)

Business Highlights

-- Third quarter 2021 Hubzu referrals were 107% higher than the third quarter of 2020 and ending Hubzu inventory of close to 6,200 marks the second consecutive quarter of inventory growth -- Service revenue from our Origination business grew by 23% in the nine months ended September30, 2021 to $45.5 million compared to the nine months ended September30, 2020 -- The Company continued to aggressively reduce cash costs and simplify the organization; third quarter 2021 cash operating costs (excluding outside fees and services) were $2.4 million, or 6%, lower than second quarter 2021 cash operating costs and $12.0 million, or 26%, lower than third quarter 2020 cash operating costs

Third Quarter 2021 Financial Results

-- Service revenue of $41.6 million -- Loss before income taxes and non-controlling interests of $(17.9) million -- Adjusted pre-tax loss attributable to Altisource(2) of $(12.4) million -- Adjusted EBITDA(2) of $(7.5) million -- Net loss attributable to Altisource of $(18.3) million, or $(1.15) per diluted share -- Adjusted net loss attributable to Altisource(2) of $(12.6) million, or $(0.80) per diluted share

Third Quarter and Year-to-Date September 30, 2021 Results Compared to the Third Quarter and Year-to-Date September 30, 2020:



(in thousands, Third Quarter Third Quarter % Year-to-Date Year-to-Date %except per 2021 2020 Change Sept. 30, 2021 Sept. 30, 2020 Changeshare data)Service revenue $ 41,626 $ 85,386 (51 ) $ 133,672 $ 289,570 (54 )Loss from (14,028 ) (6,814 ) (106 ) (47,159 ) (28,725 ) (64 )operationsAdjustedoperating (8,279 ) 3,658 (326 ) (26,122 ) 7,390 N/M (loss) income^(2)Loss beforeincome taxesand (17,898 ) (11,140 ) (61 ) (57,040 ) (54,011 ) (6 )non-controllinginterestsPretax lossattributable to (17,839 ) (11,480 ) (55 ) (56,889 ) (54,653 ) (4 )Altisource^(2)Adjusted pretaxloss (12,350 ) (1,406 ) N/M (36,715 ) (7,004 ) (424 )attributable toAltisource^(2)Adjusted EBITDA (7,545 ) 6,426 (217 ) (22,793 ) 17,521 (230 )^(2)Net lossattributable to (18,269 ) (13,237 ) (38 ) (58,746 ) (59,948 ) 2 AltisourceAdjusted netloss (12,646 ) (3,764 ) (236 ) (37,899 ) (11,833 ) (220 )attributable toAltisource^(2)Diluted loss (1.15 ) (0.85 ) (36 ) (3.71 ) (3.85 ) 3 per shareAdjusteddiluted loss (0.80 ) (0.24 ) (233 ) (2.40 ) (0.76 ) (215 )per share^(2)Cash flows usedin operating (18,358 ) (2,861 ) N/M (41,133 ) (14,077 ) (192 )activitiesAdjusted cashflows used inoperatingactivities less (18,790 ) (3,897 ) (382 ) (42,258 ) (16,579 ) (155 )additions topremises andequipment^(2)

N/M - not meaningful.

-- Third quarter 2021 and 2020 loss from operations include losses of $2.2 million and $2.1 million, respectively, ($7.1 million and $7.2 million for year-to-date September30, 2021 and 2020, respectively) from our earlier stage business. Third quarter 2021 and 2020 loss from operations also includes $0.5 million and $0.7 million, respectively, ($3.2 million and $0.7 million for year-to-date September30, 2021 and 2020, respectively), of costs related to savings initiatives and other. Third quarter and year-to-date September30, 2020 loss from operations also include $2.2 million and $10.9 million, respectively, of restructuring charges related to Project Catalyst (no comparable amounts in 2021), and $(0.6) million for both the third quarter and year-to-date September30, 2020 of sales tax net accruals (reimbursements) (no comparable amounts in 2021). -- Third quarter and year-to-date September30, 2020 pretax loss attributable to Altisource(2) include unrealized mark-to-market gains (losses) on our equity investment in RESI of $0.1 million and $(12.4) million, respectively (no comparable amounts in 2021). -- Third quarter 2021 net loss attributable to Altisource includes $0.3 million of expenses (no comparable amount for the third quarter of 2020) ($1.3 million and $2.4 million for year-to-date September30, 2021 and 2020, respectively)for 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 third quarter 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, risks relating to the transaction with Genesys, including in respect of the satisfaction of closing conditions and the timing thereof, delays in obtaining regulatory and other third party consents in connection with the transaction, unanticipated expenditures relating to or liabilities arising from the transaction, litigation or regulatory issues relating to the transaction and 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. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events.

Webcast

Altisource will host a webcast at 11:00 a.m. EDT today to discuss our third 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 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 Nine months ended September 30, September 30, 2021 2020 2021 2020 Service revenue $ 41,626 $ 85,386 $ 133,672 $ 289,570 Reimbursable expenses 1,416 2,810 5,365 14,495 Non-controlling 201 599 712 1,516 interestsTotal revenue 43,243 88,795 139,749 305,581 Cost of revenue 39,251 69,760 129,497 235,284 Reimbursable expenses 1,416 2,810 5,365 14,495 Gross profit 2,576 16,225 4,887 55,802 Operating expenses: Selling, general and 16,604 20,812 52,046 73,606 administrative expensesRestructuring charges ? 2,227 ? 10,921 Loss from operations (14,028 ) (6,814 ) (47,159 ) (28,725 )Other income (expense), netInterest expense (3,755 ) (4,103 ) (10,672 ) (13,265 )Unrealized gain (loss)on investment in equity ? 138 ? (12,433 )securitiesOther (expense) income, (115 ) (361 ) 791 412 netTotal other income (3,870 ) (4,326 ) (9,881 ) (25,286 )(expense), net Loss before incometaxes and (17,898 ) (11,140 ) (57,040 ) (54,011 )non-controllinginterestsIncome tax provision (430 ) (1,757 ) (1,857 ) (5,295 ) Net loss (18,328 ) (12,897 ) (58,897 ) (59,306 )Net loss (income)attributable to 59 (340 ) 151 (642 )non-controllinginterests Net loss attributable $ (18,269 ) $ (13,237 ) $ (58,746 ) $ (59,948 )to Altisource Loss per share: Basic $ (1.15 ) $ (0.85 ) $ (3.71 ) $ (3.85 )Diluted $ (1.15 ) $ (0.85 ) $ (3.71 ) $ (3.85 ) Weighted average shares outstanding:Basic 15,831 15,637 15,816 15,578 Diluted 15,831 15,637 15,816 15,578 Comprehensive loss: Comprehensive loss, net $ (18,328 ) $ (12,897 ) $ (58,897 ) $ (59,306 )of taxComprehensive loss(income) attributable 59 (340 ) 151 (642 )to non-controllinginterests Comprehensive lossattributable to $ (18,269 ) $ (13,237 ) $ (58,746 ) $ (59,948 )Altisource

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

September December 30, 31, 2021 2020 ASSETSCurrent assets: Cash and cash equivalents $ 36,492 $ 58,263 Accounts receivable, net 19,299 22,413 Prepaid expenses and other current assets 18,881 19,479 Total current assets 74,672 100,155 Premises and equipment, net 9,376 11,894 Right-of-use assets under operating leases 13,184 18,213 Goodwill 73,849 73,849 Intangible assets, net 38,143 46,326 Deferred tax assets, net 5,279 5,398 Other assets 6,427 9,850 Total assets $ 220,930 $ 265,685 LIABILITIES AND EQUITYCurrent liabilities: Accounts payable and accrued expenses $ 53,994 $ 56,779 Current portion of long-term debt 5,000 ? Deferred revenue 7,124 5,461 Other current liabilities 6,462 9,305 Total current liabilities 72,580 71,545 Long-term debt, less current portion 258,247 242,656 Deferred tax liabilities, net 9,264 8,801 Convertible debt payable to related parties 1,337 ? Other non-current liabilities 21,185 25,239 Commitments, contingencies and regulatory matters Equity (deficit): Common stock ($1.00 par value; 100,000 sharesauthorized, 25,413 issued and 15,899 outstanding as 25,413 25,413 of September30, 2021; 15,664 outstanding as ofDecember31, 2020)Additional paid-in capital 143,983 141,473 Retained earnings 116,881 190,383 Treasury stock, at cost (9,514 shares as ofSeptember30, 2021 and 9,749 shares as of (427,214 ) (441,034 )December31, 2020)Altisource deficit (140,937 ) (83,765 ) Non-controlling interests (746 ) 1,209 Total deficit (141,683 ) (82,556 ) Total liabilities and deficit $ 220,930 $ 265,685

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

Nine months ended September 30, 2021 2020 Cash flows from operating activities: Net loss $ (58,897 ) $ (59,306 )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 3,479 11,521 Amortization of right-of-use assets under operating 6,340 8,107 leasesAmortization of intangible assets 8,183 11,344 Unrealized loss on investment in equity securities ? 12,433 Share-based compensation expense 2,510 6,556 Bad debt expense 1,268 1,423 Amortization of debt discount 499 500 Amortization of debt issuance costs 623 548 Deferred income taxes 8 274 Loss on disposal of fixed assets 117 459 Other non-cash items 137 ? Changes in operating assets and liabilities: Accounts receivable 1,846 10,136 Prepaid expenses and other current assets 598 621 Other assets 1,439 853 Accounts payable and accrued expenses (2,738 ) (10,676 )Current and non-current operating lease liabilities (6,958 ) (8,518 )Other current and non-current liabilities 413 (352 )Net cash used in operating activities (41,133 ) (14,077 ) Cash flows from investing activities: Additions to premises and equipment (1,125 ) (2,502 )Proceeds from the sale of business 3,000 3,307 Net cash provided by investing activities 1,875 805 Cash flows from financing activities: Proceeds from revolving credit facility 20,000 ? Debt issuance costs (531 ) ? Proceeds from convertible debt payable to related 1,200 ? partiesDistributions to non-controlling interests (1,804 ) (976 )Payments of tax withholding on issuance of restricted (936 ) (1,495 )share units and restricted sharesNet cash provided by (used in) financing activities 17,929 (2,471 ) Net decrease in cash, cash equivalents and restricted (21,329 ) (15,743 )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 $ 40,767 $ 70,840 of the period Supplemental cash flow information: Interest paid $ 9,373 $ 12,218 Income taxes paid, net 2,736 742 Acquisition of right-of-use assets with operating 6,976 1,051 lease liabilitiesReduction of right-of-use assets from operating lease (5,665 ) (1,715 )modifications or reassessments Non-cash investing and financing activities: Net (decrease) increase in payables for purchases of $ (47 ) $ 60 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, restructuring charges and sales tax net accrual (reimbursement) 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, unrealized (gain) loss on investment in equity securities and sales tax net accrual (reimbursement) 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, unrealized (gain) loss on investment in equity securities and sales tax net accrual (reimbursement) 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 (gain) loss on investment in equity securities (net of tax), sales tax net accrual (reimbursement) (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 (gain) loss on investment in equity securities (net of tax), sales tax net accrual (reimbursement) (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 Nine months ended September 30, September 30, 2021 2020 2021 2020 Loss from operations $ (14,028 ) $ (6,814 ) $ (47,159 ) $ (28,725 ) Intangible asset 2,673 4,295 8,183 11,344 amortization expenseShare-based compensation 431 1,732 2,510 6,556 expensePointillist losses 2,155 2,139 7,116 7,215 Cost of cost savings 490 697 3,228 697 initiatives and otherRestructuring charges ? 2,227 ? 10,921 Sales tax net accrual ? (618 ) ? (618 )(reimbursement) Adjusted operating (loss) $ (8,279 ) $ 3,658 $ (26,122 ) $ 7,390 income Loss before income taxesand non-controlling $ (17,898 ) $ (11,140 ) $ (57,040 ) $ (54,011 )interests Non-controlling interests 59 (340 ) 151 (642 )Pretax loss attributable (17,839 ) (11,480 ) (56,889 ) (54,653 )to AltisourceIntangible asset 2,673 4,295 8,183 11,344 amortization expenseShare-based compensation 431 1,732 2,510 6,556 expensePointillist losses 1,895 1,879 6,253 6,316 Cost of cost savings 490 697 3,228 697 initiatives and otherRestructuring charges ? 2,227 ? 10,921 Unrealized (gain) loss oninvestment in equity ? (138 ) ? 12,433 securitiesSales tax net accrual ? (618 ) ? (618 )(reimbursement) Adjusted pretax lossattributable to $ (12,350 ) $ (1,406 ) $ (36,715 ) $ (7,004 )Altisource Net loss attributable to $ (18,269 ) $ (13,237 ) $ (58,746 ) $ (59,948 )Altisource Income tax provision 430 1,757 1,857 5,295 Interest expense (net of 3,755 4,078 10,700 13,160 interest income)Depreciation and 3,817 8,115 11,662 22,865 amortizationShare-based compensation 431 1,732 2,510 6,556 expensePointillist losses 1,801 1,813 5,996 6,160 Cost of cost savings 490 697 3,228 697 initiatives and otherRestructuring charges ? 2,227 ? 10,921 Unrealized (gain) loss oninvestment in equity ? (138 ) ? 12,433 securitiesSales tax net accrual ? (618 ) ? (618 )(reimbursement) Adjusted EBITDA $ (7,545 ) $ 6,426 $ (22,793 ) $ 17,521 Net loss attributable to $ (18,269 ) $ (13,237 ) $ (58,746 ) $ (59,948 )Altisource Intangible assetamortization expense, net 2,670 4,284 8,172 11,283 of taxShare-based compensation 325 1,558 2,284 5,943 expense, net of taxPointillist losses, net 1,895 1,879 6,253 6,316 of taxCost of cost savingsinitiatives and other, 464 565 2,832 565 net of taxRestructuring charges, ? 1,943 ? 9,801 net of taxUnrealized (gain) loss oninvestment in equity ? (138 ) ? 12,433 securities, net of taxSales tax net accrual(reimbursement), net of ? (618 ) ? (618 )taxCertain income tax 269 ? 1,306 2,392 related items Adjusted net lossattributable to $ (12,646 ) $ (3,764 ) $ (37,899 ) $ (11,833 )Altisource Diluted loss per share $ (1.15 ) $ (0.85 ) $ (3.71 ) $ (3.85 ) Intangible assetamortization expense, net 0.17 0.27 0.52 0.72 of tax, per diluted shareShare-based compensationexpense, net of tax, per 0.02 0.10 0.14 0.38 diluted sharePointillist losses, net 0.12 0.12 0.40 0.41 of tax, per diluted shareCost of cost savingsinitiatives and other, 0.03 0.04 0.18 0.04 net of tax, per dilutedshareRestructuring charges,net of tax, per diluted ? 0.12 ? 0.63 shareUnrealized (gain) loss oninvestment in equity ? (0.01 ) ? 0.80 securities, net of tax,per diluted shareSales tax net accrual(reimbursement), net of ? (0.04 ) ? (0.04 )tax, per diluted shareCertain income taxrelated items per diluted 0.02 ? 0.08 0.15 share Adjusted diluted loss per $ (0.80 ) $ (0.24 ) $ (2.40 ) $ (0.76 )share Calculation of the impactof intangible asset amortization expense, netof taxIntangible asset $ 2,673 $ 4,295 $ 8,183 $ 11,344 amortization expenseTax benefit fromintangible asset (3 ) (11 ) (11 ) (61 )amortizationIntangible assetamortization expense, net 2,670 4,284 8,172 11,283 of taxDiluted share count 15,831 15,637 15,816 15,578 Intangible assetamortization expense, net $ 0.17 $ 0.27 $ 0.52 $ 0.72 of tax, per diluted share Calculation of the impactof share-based compensation expense, netof taxShare-based compensation $ 431 $ 1,732 $ 2,510 $ 6,556 expenseTax benefit fromshare-based compensation (106 ) (174 ) (226 ) (613 )expenseShare-based compensation 325 1,558 2,284 5,943 expense, net of taxDiluted share count 15,831 15,637 15,816 15,578 Share-based compensationexpense, net of tax, per $ 0.02 $ 0.10 $ 0.14 $ 0.38 diluted share Calculation of the impactof Pointillist losses, net of taxPointillist losses $ 1,895 $ 1,879 $ 6,253 $ 6,316 Tax benefit from ? ? ? ? Pointillist lossesPointillist losses, net 1,895 1,879 6,253 6,316 of taxDiluted share count 15,831 15,637 15,816 15,578 Pointillist losses, net $ 0.12 $ 0.12 $ 0.40 $ 0.41 of tax, per diluted share Calculation of the impactof cost of cost savings initiatives and other,net of taxCost of cost savings $ 490 $ 697 $ 3,228 $ 697 initiatives and otherTax benefit from cost ofcost savings initiatives (26 ) (132 ) (396 ) (132 )and otherCost of cost savingsinitiatives and other, 464 565 2,832 565 net of taxDiluted share count 15,831 15,637 15,816 15,578 Cost of cost savingsinitiatives and other, $ 0.03 $ 0.04 $ 0.18 $ 0.04 net of tax, per dilutedshare Calculation of the impactof restructuring charges, net of taxRestructuring charges $ ? $ 2,227 $ ? $ 10,921 Tax benefit from ? (284 ) ? (1,120 )restructuring chargesRestructuring charges, ? 1,943 ? 9,801 net of taxDiluted share count 15,831 15,637 15,816 15,578 Restructuring charges,net of tax, per diluted $ ? $ 0.12 $ ? $ 0.63 share Calculation of the impactof the unrealized (gain)loss on investment in equity securities, net oftaxUnrealized (gain) loss oninvestment in equity $ ? $ (138 ) $ ? $ 12,433 securitiesTax provision from theunrealized (gain) loss on ? ? ? ? investment in equitysecuritiesUnrealized (gain) loss oninvestment in equity ? (138 ) ? 12,433 securities, net of taxDiluted share count 15,831 15,637 15,816 15,578 Unrealized (gain) loss oninvestment in equity $ ? $ (0.01 ) $ ? $ 0.80 securities, net of tax,per diluted share Calculation of the impactof sales tax net accrual (reimbursement), net oftaxSales tax net accrual $ ? $ (618 ) $ ? $ (618 )(reimbursement)Tax provision from salestax net accrual ? ? ? ? (reimbursement)Sales tax net accrual(reimbursement), net of ? (618 ) ? (618 )taxDiluted share count 15,831 15,637 15,816 15,578 Sales tax net accrual(reimbursement), net of $ ? $ (0.04 ) $ ? $ (0.04 )tax, per diluted share Certain income taxrelated items resulting from:India income tax rate $ ? $ ? $ ? $ 1,384 changesForeign income tax 269 ? 1,306 1,008 reserves/otherCertain income tax 269 ? 1,306 2,392 related itemsDiluted share count 15,831 15,637 15,816 15,578 Certain income taxrelated items per diluted $ 0.02 $ ? $ 0.08 $ 0.15 share Cash flows used in $ (18,358 ) $ (2,861 ) $ (41,133 ) $ (14,077 )operating activitiesLess: additions to (432 ) (1,036 ) (1,125 ) (2,502 )premises and equipment Cash flows used inoperating activities less $ (18,790 ) $ (3,897 ) $ (42,258 ) $ (16,579 )additions to premises andequipment

September September 30, 30, 2021 2020 Senior secured term loan $ 247,204 $ 293,826 Credit Facility 20,000 ? Less: Cash and cash equivalents (36,492 ) (67,023 )Less: Investment in equity securities ? (30,185 ) Net debt less investment in equity securities^(1) $ 230,712 $ 196,618

___________________Note: Amounts may not add to the total due to rounding.(1) Excludes $1.3 million of Pointillist debt that is convertible into Pointillist equity