News Review: Black Knight (NYSE: BKI)

On Friday, Shares of Black Knight (NYSE: BKI) rose 0.63% to $46.42. The stock traded total volume of 428,778 shares lower than the average volume of 941.11K shares.

Black Knight, Inc. (BKI), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, recently declared unaudited financial results for the third quarter and nine months ended September 30, 2018.

Revenues for the third quarter of 2018 increased 7% to $281.70M from $263.80Min the prior year quarter. Net earnings attributable to Black Knight for the third quarter of 2018 were $43.00M, or $0.29 per diluted share, contrast to $14.70M, or $0.21 per diluted share, in the prior year quarter.

Adjusted Revenues for the third quarter of 2018 increased 7% to $282.30M from $264.80M in the prior year quarter. Adjusted Net Earnings for the third quarter of 2018 increased 31% to $71.30M contrast to $54.30M in the prior year quarter. Adjusted Net Earnings per Share for the third quarter of 2018 increased 33% to $0.48 per diluted share contrast to $0.36 per diluted share in the prior year quarter.

Adjusted EBITDA for the third quarter of 2018 increased 8% to $138.40M from $128.20M in the prior year quarter. Adjusted EBITDA Margin was 49.0%, a boost of 60 basis points contrast to the prior year quarter.

Revenues for the nine months ended September 30, 2018 increased 6% to $828.60M from $784.10M in the 2017 period. Net earnings attributable to Black Knight for the nine months ended September 30, 2018 were $125.70M, or $0.85 per diluted share, contrast to $35.10M, or $0.51 per diluted share, in the 2017 period.

Adjusted Revenues for the nine months ended September 30, 2018 increased 5% to $830.90M from $787.70M in the 2017 period. Adjusted Net Earnings for the nine months ended September 30, 2018 increased 33% to $203.80M contrast to $153.00M in the 2017 period. Adjusted Net Earnings per Share for the nine months ended September 30, 2018 increased 38% to $1.38 per diluted share contrast to $1.00 per diluted share in the 2017 period.

Adjusted EBITDA for the nine months ended September 30, 2018 increased 8% to $402.50M from $373.90M in the 2017 period. Adjusted EBITDA Margin was 48.4%, a boost of 90 basis points contrast to the 2017 period.

Segment Information

Software Solutions

Adjusted Revenues for the third quarter of 2018 increased 7% to $243.90M from $227.20M in the prior year quarter driven by growth of 7% in our servicing software business and 8% in our origination software business. Adjusted EBITDA increased 12% to $144.60M from $129.50M, with an Adjusted EBITDA Margin of 59.3%, a boost of 230 basis points contrast to the prior year quarter.

Adjusted Revenues for the nine months ended September 30, 2018 increased 6% to $716.20M from $673.30M in the 2017 period. Adjusted EBITDA increased 11% to $423.20M from $382.40M, with an Adjusted EBITDA Margin of 59.1%, a boost of 230 basis points contrast to the 2017 period.

Data and Analytics

Adjusted Revenues for the third quarter of 2018 increased 2% to $38.40M from $37.60M in the prior year quarter driven by growth in our property data and multiple listing service businesses. Adjusted EBITDA increased 2% to $9.80M from $9.60M in the prior year quarter, with an Adjusted EBITDA Margin of 25.5% in both periods.

Adjusted Revenues for the nine months ended September 30, 2018 were $114.70M contrast to $114.40M in the 2017 period. Adjusted EBITDA was $28.20M contrast to $28.40M, with an Adjusted EBITDA Margin of 24.6% contrast to 24.8% in the 2017 period.

Balance Sheet

As of September 30, 2018, we had cash and cash equivalents of $16.90M and debt of $1,398.00M. As of September 30, 2018, we had available capacity of $613.00M on our revolving credit facility.

Business Outlook

Black Knight’s full year 2018 outlook is as follows:

  • Revenues are expected to be in the range of $1,110.0M to $1,115.0M.
  • Adjusted Revenues are expected to be in the range of $1,113.0M to $1,118.0M. Adjusted Net Earnings Per Share is expected to be in the range of $1.82 to $1.85.
  • Adjusted EBITDA is expected to be in the range of $538.0M to $543.0M.

BKI has the market capitalization of $6.87B and its EPS growth ratio for the past five years was 23.60%. The return on assets ratio of the Company was 7.50% while its return on investment ratio stands at 6.80%. Price to sales ratio was 6.27 while 89.50% of the stock was owned by institutional investors.

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