RISMEDIA, February 17, 2010—Realogy Corporation, a global leader in real estate and relocation services, reported results for the year ending December 31, 2009. Realogy had 2009 net revenue of $3.9 billion, a net loss attributable to the Company of $262 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $465 million. As of December 31, 2009, Realogy had $219 million of readily available cash and no outstanding balance on its revolving credit facility.
Realogy’s revenue for the fourth quarter of 2009 increased 11% compared to 2008. EBITDA for the period was $89 million, or $104 million before restructuring and other items. This was an increase of $70 million year over year, and primarily a result of executed cost efficiencies. On a full-year basis, Realogy’s revenue decreased by $793 million in 2009 compared to 2008, principally due to lower average sale prices of homes brokered by our franchisees and our company-owned operations. Despite the 17% revenue decline, 2009 EBITDA of $427 million before restructuring and other items increased $16 million compared to 2008. Realogy’s reported EBITDA of $465 million for the full year was positively affected by a $75 million gain on debt extinguishment and $49 million from the prepayment of a receivable from Wright Express, partially offset by $86 million of restructuring and other legacy charges.
“The macroeconomic challenges of the past two years have been unprecedented, and our business model has proven its resiliency throughout,” said Realogy President and CEO Richard A. Smith. “EBITDA before restructuring and other items has remained essentially flat during 2008 and 2009 despite substantial revenue declines we have experienced since 2007. The resulting increased efficiency of our operations has positioned us to outperform when the recovery occurs. While we continue to monitor costs, Realogy is sharply focused on growth in each of our businesses, both organically and via strategic acquisitions. This growth strategy is evidenced by our recent announcement regarding Cartus’ acquisition of Primacy, a prominent provider of relocation services.”
In the fourth quarter, Realogy’s core business drivers showed significant improvement, particularly home sale unit transactions, which increased 18% year-over-year at the Realogy Franchise Group (RFG) and 20% at NRT, the Company’s owned brokerage unit. These improvements were due to a combination of relatively weak fourth quarter 2008 activity and an influx of transaction volume in 2009, spurred by the original November 30 expiration of government tax credits for first-time buyers. The average home sale price declined in the fourth quarter by 5% at RFG and 3% at NRT. The fourth quarter 2009 average home sale price stabilized compared to more significant declines reported in the first three quarters due to fewer REO sales and increased home sales in the high end markets we serve.
On a full year basis, RFG and NRT transaction sides decreased 1% and remained flat, respectively. RFG’s average home sale price decreased 11% during the full year 2009 while NRT’s average home sale price declined 18%. Average home sale price declines in 2009, particularly at NRT, were driven early in the year by a shift in mix of transactions away from higher priced homes and a greater level of distressed home sales.
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