Anywhere Real Estate Inc., in its third quarter earnings call Oct. 24, managed a profitability increase in a generally turbulent real estate market, while reporting that revenues decreased by double digits compared with last year. Additionally, the company entered into a nationwide settlement agreement in the Burnett and Moehrl antitrust class action litigation.
“Anywhere led through a difficult housing market to deliver considerable profitability and achieve substantial debt reduction,” said Ryan Schneider, Anywhere president and CEO. “We accelerated our strategic progress, including expanding our high-margin franchise business, integrating the consumer transaction experience, taking advantage of the better competitive environment and putting significant litigation behind us, to set Anywhere up for powerful momentum as the housing market improves.”
“Anywhere stayed focused on what we can control and drove differentiated results in the third quarter,” said Charlotte Simonelli, Anywhere executive vice president, chief financial officer and treasurer. “We generated meaningful Operating EBITDA, over delivered on our cost savings agenda, achieved sizable debt reduction and prudently managed our cash, enabling Anywhere to navigate current market conditions and invest to drive future success.”Â
Total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $2.5 billion at September 30, 2023. The Company ended the quarter with cash and cash equivalents of $151 million.
The Q3 numbers compare favorably with Anywhere’s second quarter report, which showed a $1.7 billion revenue drop even as for the first time since Q3 2022 there was a profit of $19 million. And compared with Q1 2023 highlights, which included a $138 million loss, the third quarter news was much brighter.
Third quarter 2023 highlights:
- Generated revenue of $1.6 billion, a decrease of 12% year-over-year, largely impacted by homesale transaction volume declines versus prior year of 13%.
- Reported a net income of $129 million.
- Operating EBITDA of $107 million, a decrease of $59 million year-over-year.Â
- Reduced debt by $281 million through successful debt exchanges, open market bond repurchases and repayment of a portion of revolver balance.
- Realized third quarter cost savings of approximately $60 million and over $160 million year-to-date and completed actions to deliver $200 million for the full year.
- Free cash flow of $95 million.Â
- Commission splits in the third quarter increased 55 basis points year-over-year.
- Entered into a nationwide settlement agreement in the Burnett and Moehrl antitrust class action litigation.
