Realogy Holdings Corp. recently reported financial results for the quarter ended Sept. 30, 2021.
“Realogy delivered powerful third quarter results with terrific top- and bottom-line performance, market share gains for the fifth consecutive quarter, impressive free cash flow, and an even stronger capital structure,” said Ryan Schneider, Realogy’s chief executive officer and president, in a statement. “We are excited by our strategic progress throughout 2021, especially across Realogy’s market-leading luxury positions, differentiated RealSure venture, and continued technology innovation as we proactively transform the future of real estate.”
“In the third quarter, Realogy drove excellent financial performance, delivering $273 million in Operating EBITDA and generating $282 million of free cash flow, as we significantly strengthened our capital structure,” said Charlotte Simonelli, Realogy’s executive vice president, chief financial officer and treasurer, in a statement. “Realogy is making incredible progress, proactively repaying $435 million of debt in September, consistently delivering quality financial results, and strategically investing to unlock additional value for shareholders.”
Third Quarter 2021 Highlights
– Generated revenue of $2.2 billion, an increase of 15% or $277 million year-over-year
– Reported net income of $114 million and basic earnings per share of $0.98, an increase of $16 million or $0.13 per share vs. prior year
– Generated operating EBITDA of $273 million, a decrease of $40 million year-over-year—the third quarter of 2020 included approximately $40 million in temporary cost savings
– Net debt leverage ratio of 2.3x and senior secured leverage ratio of negative 0.27x at Sept. 30, 2021
– Repaid $435 million of debt, including all outstanding Term Loan B and the non-extended portion of the Term Loan A
– Reported free cash flow of $282 million in the third quarter of 2021 and $458 million year to date Sept. 30, 2021
– Combined closed transaction volume increased 12% year-over-year in the third quarter of 2021 driving market share gains for the fifth consecutive quarter
– Transaction volume growth was above the 9% year-over-year market volume growth reported by the National Association of REALTORS®
– Owned brokerage agent count grew 5% year-over-year, with growth for the fifth consecutive quarter
– Strong cost management with $80 million in permanent cost savings expected in 2021 with actions taken for approximately 90% of the target savings and $70 million realized in the income statement through Sept. 30, 2021
The company ended the third quarter of 2021 with cash and cash equivalents of $701 million. Total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $2.4 billion on Sept. 30, 2021. The company’s net debt leverage ratio was 2.3x on Sept. 30, 2021.
On Sept. 16, 2021, the company used cash on hand to repay an aggregate of $435 million of secured debt which included approximately $197 million in principal amount of outstanding borrowings under the Term Loan A Facility (representing all of the remaining Non-Extended Term Loan A) and approximately $238 million in principal amount of outstanding borrowings under the Term Loan B Facility (representing all of the remaining Term Loan B).
For more information, please visit www.realogy.com.
