RISMEDIA, November 12, 2009—Realogy Corporation, a global provider of real estate and relocation services reported results for the third quarter of 2009. The company had third quarter 2009 net revenue of $1.2 billion, a net income attributable to Realogy of $58 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $253 million. As of September 30, 2009,
Realogy had $161 million of readily available cash and no outstanding balance on its $750 million revolving credit facility. Realogy’s EBITDA for the quarter was positively affected by a $75 million gain on debt extinguishment, which was partially offset by $20 million of restructuring and legacy charges. Despite revenue declines of $172 million in the third quarter of 2009 compared to 2008, EBITDA for the period, before restructuring and other items of $198 million, increased by $9 million year over year.
“The momentum that both Realogy and the real estate industry experienced during the third quarter was favorably impacted by the first-time homebuyer tax credit along with the seasonal strength of the third quarter,” said Realogy President & CEO Richard A. Smith. “The tax credit has made a demonstrable impact on the housing market and the overall economy, which is why we commend Congress and the Administration for acting swiftly to extend and expand the tax credit through the first half of 2010. Stimulating the move-up or repeat-buyer market should maintain momentum in the fragile housing market and accelerate a broader economic recovery.”
In the third quarter, Realogy’s core business drivers showed slight year-over-year improvement in home sales transactions but this was more than offset by continuing moderation in average sales price. On a year-over-year basis, the Realogy Franchise Group (RFG) and NRT, the company’s owned brokerage unit, saw transaction sides flat and increase 1%, respectively. RFG’s average home sales price decreased 10% for the quarter while NRT’s average sales price declined 14%. Particularly for NRT, the decrease in average sales price was driven by a continued shift in the mix of business away from higher priced homes.
“We achieved a $9 million year-over-year increase in EBITDA before restructuring and other items as lower commissions and the realization of cost reduction initiatives more than offset quarterly revenue declines,” said Chief Financial Officer Anthony E. Hull. “We expect that the strength of our business model and management’s focus on maintaining the efficiencies executed within our businesses will continue to positively impact results for the foreseeable future.”
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