Black Knight’s Second Quarter Revenue Increases 10%

Black Knight Financial Services, Inc. announced financial results for the second quarter and six months ended June 30, 2016. Revenues for the second quarter of 2016 increased 10% to $255.5 million from $232.1 million in the prior year quarter. Net earnings attributable to Black Knight Financial Services, Inc. for the second quarter of 2016 were $11.4 million, or $0.17 per diluted share, compared to $0.3 million in the prior year period. Net earnings per share attributable to Black Knight Financial Services, Inc. were $0.00 per diluted share for the period from May 26, 2015 through June 30, 2015.

Adjusted Revenues for the second quarter of 2016 increased 10% to $257.5 million from $234.7 million in the prior year quarter. Adjusted Net Earnings from Continuing Operations for the second quarter of 2016 increased 21% to $44.7 million, or $0.29 per diluted share, compared to Pro Forma Adjusted Net Earnings from Continuing Operations of $36.8 million, or $0.24 per diluted share, in the prior year period.

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Adjusted EBITDA for the second quarter of 2016 increased 14% to $116.5 million from $102.1 million in the prior year quarter. Adjusted EBITDA Margin was 45.2% compared to 43.5% in the prior year quarter.

Commenting on the results, Black Knight Executive Chairman Bill Foley said, “This is an exciting time for Black Knight, as we continue to execute on our strategic growth initiatives. During the second quarter, we signed the third largest mortgage servicer in the United States onto our market-leading LoanSphere MSP platform. In addition, with our acquisitions of eLynx and Motivity Solutions, we demonstrated the execution of one of our growth strategies to selectively pursue strategic acquisitions, allowing us to expand our footprint, broaden our client base and deepen our product and service offerings.”

Black Knight President and Chief Executive Officer Tom Sanzone added, “We are pleased with our results in the second quarter. We delivered Adjusted Revenue growth of 10% and Adjusted EBITDA growth of 14%, which drove Adjusted EBITDA Margin expansion of 170 basis points to 45.2%. Our second quarter results reflect our continued focus on driving revenue growth through cross-selling, winning new clients in existing markets and the introduction of new products and solutions to support continuing regulatory changes in the mortgage industry.”

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Revenues for the six months ended June 30, 2016 increased 8% to $497.4 million from $459.3 million. Net earnings attributable to Black Knight Financial Services, Inc. for the six months ended June 30, 2016 were $22.8 million, or $0.34 per diluted share, compared to $0.3 million in the prior year period.

Adjusted Revenues for the six months ended June 30, 2016 increased 8% to $501.7 million from $464.3 million in the prior year period. Adjusted Net Earnings from Continuing Operations for the six months ended June 30, 2016 increased 19% to $85.6 million, or $0.56 per diluted share, compared to Pro Forma Adjusted Net Earnings from Continuing Operations of $72.1 million in the prior year period.

Adjusted EBITDA for the six months ended June 30, 2016 increased 13% to $226.6 million from $200.3 million in the prior year period. Adjusted EBITDA Margin was 45.2% compared to 43.1% in the prior year period.

Definitions of non-GAAP financial measures and the reconciliations to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules. Black Knight has not provided a reconciliation of forward-looking Adjusted Net Earnings Per Share from Continuing Operations and Adjusted EBITDA to the most directly comparable GAAP financial measures, due primarily to variability and difficulty in making accurate forecasts and projections of non-operating matters that may arise, as not all of the information necessary for a quantitative reconciliation is available to Black Knight without unreasonable effort.

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