Realogy Holdings Corp. recently reported financial results for the fourth quarter and full year ended Dec. 31, 2020.
“Realogy had an outstanding 2020, delivering $726 million in Operating EBITDA, $555 million in free cash flow, 13% home sale transaction volume growth, and substantial capital structure improvements,” said Ryan Schneider, Realogy’s chief executive officer and president. “In an extraordinary year, we were able to capitalize on the dynamic housing market, accelerate our strategic progress and capture significant incremental transaction economics. With our strategic success and strong momentum, we believe Realogy is well-positioned to lead into the future. 2021 is off to a very strong start, and we are excited as we look ahead.”
“2020 was a year of tremendous operational and financial execution for Realogy,” said Charlotte Simonelli, Realogy’s executive vice president, chief financial officer and treasurer. “In the year we delivered top-line growth, cost efficiencies, impressive profitability and greater simplification while continuing to invest in the business. We seized market opportunities to improve our capital structure, including significantly reducing net debt and net leverage, which further strengthened Realogy’s financial profile.”
Fourth Quarter 2020 Highlights
– Generated revenue of $1.9 billion, an increase of 36% or $497 million year-over-year.
– Reported net income of $18 million and basic earnings per share of $0.16, an increase of $63 million vs. prior year or $0.55 per share.
– Generated operating EBITDA of $206 million, an increase of $80 million year-over-year, driven by higher transaction volume, strong performance at mortgage JV and ongoing cost management
– Title and mortgage continued to contribute meaningfully to business results, generating approximately $58 million in fourth quarter operating EBIT
– Combined closed transaction volume increased 45% year-over-year in the fourth quarter driving market share gains for the second consecutive quarter.
– Generated free cash flow of $268 million vs. $77 million for the corresponding quarter last year
Full Year 2020 Highlights
– Generated revenue of $6.2 billion, an increase of 6% or $351 million year-over-year.
– Reported net loss of $360 million and net loss per share of $3.13 includes non-cash impairment charges of $682 million largely attributable to the COVID-19 crisis.
– Generated operating EBITDA of $726 million, an increase of $136 million year-over-year, driven by higher transaction volume, strong performance at mortgage JV, and strong cost management both temporary and permanent
– Title and mortgage continued to contribute meaningfully to business results, generating approximately $226 million in operating EBITDA
– Increased combined closed transaction volume 13% year-over-year with improvement across both brokerage and franchise businesses and held market share steady in 2020 vs. 2019.
– Generated free cash flow of $555 million, up $329 million vs. last year
– Strengthened the balance sheet reducing net debt by $493 million from Dec. 31, 2019 with the net debt leverage ratio declining to 3.4x and senior secured leverage ratio of 1.70x
– Grew Brokerage agents 2% year-over-year and had continued improving retention.
For more information, please visit www.realogy.com.
