Realogy Holdings Corp. recently reported financial results for the third quarter ended September 30, 2016, including the following highlights:
- Revenue of $1.64 billion, a 1 percent decrease as compared to the third quarter of 2015, was primarily driven by lower homesale transaction volume at NRT along with lower referral revenue at Cartus, and partially offset by higher purchase and refinance closing unit volume at Title Resource Group (TRG).
- The Company’s combined homesale transaction volume increased 2 percent in the quarter, consisting of a 4 percent volume gain at the Realogy Franchise Group (RFG) and a 3 percent decline in volume at NRT.
- Net income for the period was $106 million, compared to $110 million in the third quarter of 2015. Basic earnings per share (EPS) was $0.74, compared to $0.75 in third quarter of 2015.
- Adjusted net income was $108 million, and adjusted basic EPS was $0.75, decreases of 3 percent and 1 percent, respectively, compared to the third quarter of 2015.
- Operating EBITDA was $279 million, compared to $295 million in the third quarter of 2015, a year-over-year decrease of 5 percent.
- During the third quarter, Realogy repurchased approximately 2.5 million shares of Realogy’s common stock in the open market at a weighted average market price of $27 per share for a total of $67 million. Year-to-date, the Company has repurchased $134 million, or approximately 4.5 million shares, of common stock in the open market.
- As previously announced, the Company declared a quarterly cash dividend of $0.09 per share of the Company’s common stock. The dividend payment was made on Aug. 31, 2016 to shareholders of record as of the close of business on Aug. 17, 2016. The next dividend payment will be made on Dec. 1, 2016 to shareholders of record as of the close of business on Nov. 17, 2016.
- The Company continued to execute on its business optimization program, improving the efficiency and effectiveness of the cost structure of each of the Company’s business units. The Company expects to realize over $30 million in actual savings in 2016 and is on track to reach its annualized run-rate savings target of $60 million in 2017. The total cost to implement the program is $69 million, of which $40 million has been incurred to-date.
“While our third quarter results reflect continued pressure on NRT as expected, we have moved aggressively to improve the business and enhance NRT’s competitiveness with an infusion of talent and new growth initiatives,” says Richard A. Smith, Realogy’s chairman, chief executive officer and president. “We expect these initiatives to put near-term pressure on margins, but anticipate that the resulting increase in revenue will deliver improved financial results over time and position us well to achieve our long-term goals and drive shareholder value.”
For more information, visit www.realogy.com.