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Altisource Portfolio Solutions, which runs Hubzu, announced late Thursday that it plans to raise its second round of funding this year by issuing more common stock. announcement As a result, the company’s stock hit a record low in after-hours trading.
The Luxembourg-based real estate and mortgage service provider also manages, but does not own, Lenders One Cooperative. It previously raised $20.5 million in a February sale of 4.55 million shares, which it used to pay down debt.
Altisource did not provide information on the purchase price or terms, but said it intends to use the proceeds for “general corporate purposes, including repayment of certain debts.”
Investors react to news after hours
More than 130,000 shares of Altisource Portfolio Solutions (ASPS) traded in after-hours trading on Thursday. sauce: Nasdaq.com.
Altisource stockhas traded as high as $17.67 and as low as $3.52 last year before falling to $3.02 in 2018. after hours tradingbefore rebounding to $3.50.
separately Regulatory applicationAltisource said it plans to cut nearly 400 positions this year and cut $13.5 million from annual expenses after posting a net loss of $4.1 million in July.
Bill Shepro
“Altisource continues to execute on its strategy to recover from the impact of the pandemic,” Chairman and CEO Bill Shepro said in a statement. statement.
According to Altisource, the number of full-time employees as of August 31 was 1,100, down from 1,496 at the end of last year. including people) recent annual report).
“Based on our progress in the third quarter, we expect to save $1 million per month by September 2023,” Shepro said.
He expects the company to achieve breakeven in at least one metric, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), during the third quarter, with positive Adjusted EBITDA for the fourth quarter and full year. said it does.
Altisource previously reported $18.9 million Q2 net loss, sales declined 12% year over year to $33.2 million. That brings the company’s net loss for the first half of the year to $31.7 million and its 2022 net loss to $53.4 million.
As of June 30, Altisource reported long-term debt of $217.9 million, down 11% from $245.2 million at the end of last year. The company also reported $59.8 million in liquid assets, including $35 million in cash.
“Since last quarter, we have acquired a business estimated to generate $18.6 million in annual revenue on a steady basis,” Shepro said in a July 27 article. Financial results announcement. “This includes July acquisitions of $12.8 million from new wealth management clients, generating $3 million to $5 million in adjusted EBITDA annually across Hubzu and most other default solutions. During the quarter, we continued to onboard and grew sales starting in 2022 and 2023, and now have combined annual revenue of $13 million.”
Altisource provides mortgage servicers and real estate investors with solutions that include property preservation and inspection services, title and settlement services, property valuation services, foreclosure receiver services, residential and commercial construction inspection and risk mitigation services. Masu.
Its marketplace business includes: hubs Provides online real estate auction platform and real estate auction, real estate brokerage and asset management services.
Technology provided by the company debt collector and real estate investor include:
- equatorreal estate owned (REO) properties, a platform for managing short sales, foreclosures, bankruptcies and eviction processes
- REALHome Services and Solutionsa nationwide real estate brokerage company specializing in institutional buyers and sellers
- Rent rangesingle-family rental data, analytics and rent-based valuation solutions
- REAL Synergycommercial loan repayment platform
- nest rangeautomated valuation models and analytics solutions
On the mortgage origination side, Altisource manages Lenders One Cooperative and provides title and settlement services, property valuation services, loan fulfillment, certification and certification insurance services.
Technologies Altisource offers to mortgage originators include:
- benderleyvendor management platform
- Lenders One Loan Automation (LOLA), a marketplace for ordering services and a tool to automate loan origination
- Trelix AIloan fulfillment, pre- and post-closing quality control, and workflow automation for service transfer processes.
August 30th, Artisource announces The company had signed six new Equator clients: Dawson’s Realty & Mortgages Inc., FlippingUSA, Scottsdale REI LLC (which does business as Scottsdale Mortgage Investments) and three other unknown companies.
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