Realogy Holdings Corp. recently reported financial results for the first quarter ended March 31, 2021.
“Realogy delivered a very powerful first quarter. We generated a record $162 million in Operating EBITDA, grew closed transaction volume by 44% year-over-year, continued to expand market share, and improved our balance sheet to its best position ever,” said Ryan Schneider, Realogy’s chief executive officer and president. “Our strategic actions are enabling Realogy-affiliated agents and franchise owners to better capitalize on the dynamic housing market as we continue to move fast, innovate, and invest for future growth.”
“We are off to a phenomenal start to 2021, delivering the strongest first quarter top and bottom line results in Realogy’s history,” said Charlotte Simonelli, Realogy’s executive vice president, chief financial officer and treasurer. “We delivered strong operational and financial execution, and we continued to drive cost efficiencies and reduced net leverage as we demonstrate continued success.”
First Quarter 2021 Highlights
– Generated revenue of $1.5 billion, an increase of 32% or $379 million year-over-year.
– Reported net income of $33 million and basic earnings per share of $0.28, an increase of $495 million vs. prior year or $4.31 per share.
– Generated operating EBITDA of $162 million, an increase of $130 million year-over-year.
– Title and mortgage generated approximately $61 million in first quarter operating EBITDA.
– Combined closed transaction volume increased 44% year-over-year in the first quarter driving market share gains for the third consecutive quarter. Transaction volume growth was significantly above the National Association of REALTORS® reported 28% year-over-year market volume growth.
– Reported the lowest ever net debt leverage ratio of 3.1x and senior secured leverage ratio of 0.64x.
– Strong cost management with $80 million in permanent cost savings expected in 2021.
– Reported free cash flow of negative $67 million, an improvement of $88 million from the corresponding quarter last year, with the first quarter being a seasonal use quarter for the business.
– Grew Brokerage agents 3% year-over-year and continued to maintain strong retention levels.
Balance Sheet and Capital Allocation
The company ended the quarter with cash and cash equivalents of $404 million. Total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $2.9 billion on March 31, 2021. The company’s net debt leverage ratio was 3.1x on March 31, 2021. On April 28, 2021, the company used cash on hand to pay down $150 million of the Term Loan B Facility.
For more information, please visit www.realogy.com.
