RISMEDIA, August 13, 2009-Realogy Corporation, a global provider of real estate and relocation services, today reported results for the second quarter of 2009. The Company had second quarter 2009 net revenue of $1.0 billion, a net loss of $15 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $185 million. Realogy generated $172 million of cash flow from operations in the first half of 2009 – a year-over-year improvement of $246 million – and, as of June 30, 2009, had $356 million of readily available cash.
Realogy’s EBITDA for the period was positively affected by $36 million of legacy items net of restructuring charges, including $49 million from the prepayment of a receivable from Wright Express.
“While the rate of decline in home sales is slowing and there are emerging positive signals, given the macroeconomic headwinds it is premature to conclude that the housing market has started its rebound,” said Realogy Chief Executive Officer Richard A. Smith. “That said, long term we remain bullish on housing and are very well positioned to capitalize on its eventual recovery.”
In the second quarter, Realogy’s core business drivers continued to reflect a weak overall housing market. On a year-over-year basis, the Realogy Franchise Group (RFG) and NRT, the Company’s owned brokerage unit, saw transaction sides decline by 8 percent and 9 percent, respectively. RFG’s average home sales price decreased 15 percent for the quarter while NRT’s average sales price declined 24 percent. Particularly for NRT, the decrease in average sales price was driven largely by a shift in the mix of business away from higher price-points.
“Our variable and fixed cost savings in the second quarter helped to largely offset
year-over-year revenue declines of approximately $370 million,” said Chief Financial Officer Anthony E. Hull. “We have worked diligently to create efficiencies and act upon cost-saving opportunities within our businesses, and we will continue to do so.”
Covenant Compliance
As of June 30, 2009, the Company’s senior secured leverage ratio was 5.1 to
1. The senior secured leverage ratio is determined by taking Realogy’s senior
secured net debt of $3.4 billion at June 30, 2009 and dividing it by the
Company’s Adjusted EBITDA of $655 million for the 12 months ended June
30, 2009.
Balance Sheet Information as of June 30, 2009:
As of June 30, 2009, Realogy had a net revolver debt balance of $254 million, which consists of the $610 million revolver drawn less $356 million of readily available cash, the latter of which is included in cash and cash equivalents of
$388 million. A complete balance sheet is included as Table 2 of this press
release.
Investor Webcast
A Webcast reviewing its second quarter 2009 is available at www.realogy.com from August 11 through August 25. The call is hosted by Richard A. Smith, president and CEO, and Anthony E. Hull, executive vice president, CFO and treasurer.
For more information, visit www.realogy.com.
