TORONTO – Davis + Henderson Corp. reported a 30% increase in third quarter earnings to $19.1 million based on last year’s acquisition of Mortgagebot and this year’s deal for Avista Solutions.
The two acquisitions helped fuel a 3% rise in third quarter revenue to $191.8 million.
For the first three quarters of the year D+H reported a 6% increase in revenue to $570.5 million, but a 26% decline in net income to $55.4 million.
Net income for the nine-month period in 2011 benefited from the inclusion of non-cash tax recoveries of $22.8 million attributable to D+H’s conversion to a corporation in the first quarter of 2011 and a non-cash tax recovery relating to losses within certain U.S. subsidiaries that were not previously recognized in connection with the acquisition of Mortgagebot in the second quarter of 2011. Net income for the first nine months of 2012 was impacted by $8.4 million of acquisition-related expenses. On May 3, D+H acquired Avista, a provider of Software as a Service mortgage loan origination software, for $40 million.
Last week D+H announced that Scott Happ, the founder and head of Mortgagebot, had been succeeded by William Neville, former head of Citi’s North American Hedge Fund Servicing business and former head of BISYS Banking Solutions, as president of D+H USA, of which Mortgagebot is the major component.
