Realogy Holdings Corp. recently reported financial results for the third quarter ended Sept. 30, 2020.
“I am incredibly proud of Realogy’s third quarter. We generated $309 million of Operating EBITDA, grew closed transaction volume 28 percent, gained market share and materially reduced our debt,” said Ryan Schneider, Realogy’s chief executive officer and president. “Our strategic progress, agent and brand power, and technology initiatives, amplified by the very strong housing market, drove Realogy’s results. And with very strong preliminary October volumes, we are excited as we look ahead.”
“In the third quarter, Realogy continued to execute from a position of strength, delivering exceptional top-line and bottom-line growth,” said Charlotte Simonelli, Realogy’s executive vice president, chief financial officer and treasurer. “We improved operating margins, captured greater share of transaction economics with our mortgage joint venture and title operations, stayed laser focused on cost management and simplification, and strengthened our balance sheet. Overall, Realogy’s financial profile is much stronger today, and I am optimistic for our future.”
Third Quarter 2020 Highlights
– Generated revenue of $1.9 billion, an increase of 20 percent or $307 million year-over-year.
– Reported net income of $145 million from continuing operations and net income of $98 million including discontinued operations.
– Generated operating EBITDA from continuing operations of $309 million, an increase of $103 million year-over-year, driven by higher transaction volume and strong performance at the GRA mortgage JV.
– Title and mortgage continued to contribute meaningfully to our business results, generating approximately $95 million in third quarter operating EBITDA.
– Combined closed transaction volume increased 28 percent year-over-year in the third quarter with improving transaction volume through the quarter. Unit growth contributed 12 percent to this volume improvement across both brokerage and franchise businesses.
– Generated free cash flow from continuing operations of $344 million vs. $116 million for the corresponding quarter last year and $395 million including discontinued operations vs. $174 million for the corresponding quarter last year
– Strengthened the balance sheet, reducing net debt by $276 million vs. third quarter 2019 with the net debt leverage ratio declining to 4.2x
– Grew brokerage agents 2 percent year-over-year with continued improving retention.
Balance Sheet and Capital Allocation
Realogy ended the third quarter 2020 with cash and cash equivalents of $379 million. Total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $3.0 billion at Sept. 30, 2020. Realogy’s net debt leverage ratio was 4.2x at Sept. 30, 2020. On Oct. 27, 2020, Realogy repaid the remaining $140 million balance on its revolving credit facility. Realogy expects to continue to prioritize investing in its business and reducing leverage over other potential uses of cash.
For more information, please visit www.realogy.com.