Market Overview

PHH Corporation Announces Second Quarter 2018 Results

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Provides Update on Proposed Merger with Ocwen Financial Corporation

Highlights:

  • Net loss attributable to PHH Corporation of $35 million, or $1.07
    per basic share. Net loss from continuing operations was $37
    million or $1.11 per basic share, which includes $4 million of
    unfavorable pre-tax notable items.
  • Ended the second quarter of 2018 with cash and cash equivalents of
    $453 million and total PHH Corporation stockholders' equity of $489
    million.
  • Our stockholders approved the proposed merger with Ocwen on June
    11, 2018.
  • Continued to make progress in obtaining the requisite approvals for
    the proposed merger with Ocwen from governmental agencies and state
    regulatory and licensing entities, and we are currently targeting
    closing the transaction in the third quarter of 2018.
  • Our Total Servicing Portfolio was comprised of 586,609 loans
    serviced representing $129.0 billion of unpaid principal balance,
    including 550,942 loans in our subservicing portfolio.

PHH Corporation (NYSE:PHH) ("PHH" or the "Company") today announced
financial results for the quarter ended June 30, 2018 and provided an
update on the proposed merger with Ocwen Financial Corporation. For the
quarter ended June 30, 2018, the Company reported Net loss attributable
to PHH Corporation of $35 million or $1.07 per basic share. Net loss
from continuing operations was $37 million or $1.11 per basic share.

   
Summary Consolidated Results        
(In millions, except share and per share data)    
Three Months Ended
June 30,
Six Months Ended
June 30,
2018 2017 2018 2017
Total net revenues $ 35 $ 31 $ 85 $ 71
Loss from continuing operations before income taxes (36 ) (75 ) (62 ) (152 )
Loss from continuing operations, net of tax (37 ) (42 ) (63 ) (95 )
Net loss attributable to PHH Corporation (35 ) (46 ) (65 ) (113 )
 
Basic and Diluted earnings (loss) per share:
From continuing operations $ (1.11 ) $ (0.78 ) $ (1.92 ) $ (1.77 )
From discontinued operations 0.04   (0.08 ) (0.08 ) (0.34 )
Total attributable to PHH Corporation $ (1.07 ) $ (0.86 ) $ (2.00 ) $ (2.11 )
 
Weighted-average common shares outstanding — basic & diluted 32.669 53.342 32.657 53.511
 

Notable items and Exit and disposal costs attributable to the continuing
operations of PHH included the following:

 
Three Months Ended June 30,
2018   2017
Pre-Tax   Post-Tax Pre-Tax   Post-Tax
$ Per Share $ Per Share
Notable items:
Legal and regulatory reserves $ (2 ) $ (0.08 ) $ (13 ) $ (0.14 )
Severance (1 ) (0.03 )
Merger and strategic review expenses (1 ) (0.02 )
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