Realogy Holdings Corp., a global leader in residential real estate franchising and provider of real estate brokerage, relocation, and title and settlement services, this week provided preliminary estimates of certain of its financial and operational results for the second quarter ended June 30, 2013:
• Net revenue is expected to be in the range of $1.529 billion to $1.539 billion, representing an increase of 17 percent to 18 percent compared to second quarter 2012.
• Adjusted EBITDA is expected to be in the range of $276 million to $280 million, representing a 26 percent to 28 percent increase from prior year results.
• Net income attributable to the Company for the quarter is expected to be in the range of $80 million to $90 million, an improvement of approximately $110 million compared to the second quarter of 2012. The 2013 second quarter net income is after taking into account approximately $67 million of interest expense, $44 million of depreciation and amortization, $43 million of loss on the early extinguishment of debt and $26 million of expense relating to the April 2013 issuance of common stock under the phantom value plan, which was primarily non-cash.
• Basic earnings per share for the second quarter of 2013 is expected to be in the range of $0.55 to $0.62, or, excluding the loss on early extinguishment of debt and phantom value plan expense, $1.03 to $1.09.
“The significant improvement in our expected second quarter Adjusted EBITDA is a result of our increased homesale transaction volume, the strength of our business model and the strength of the housing market recovery,” says Richard A. Smith, Realogy’s chairman, chief executive officer and president. “Our homesale transaction volume increased 21% year-over-year during the quarter, which is four percentage points higher than the top end of our prior guidance issued on May 1, 2013. The increased volume is attributed to demand outstripping supply, moderately improved inventory levels and continued historically high affordability levels despite a rising mortgage rate environment.”