Released on October 24, 2023, Anywhere Real Estate Inc (HOUS, Financial)'s Q3 2023 financial results reflect the company's resilience amidst a challenging housing market. Despite a 12% year-over-year decrease in revenue, largely impacted by a 13% decline in homesale transaction volume, the company managed to achieve significant debt reduction and considerable profitability.
Financial Performance and Strategic Progress
According to Ryan Schneider, Anywhere's president and CEO, the company has made strategic progress, including expanding its high-margin franchise business, integrating the consumer transaction experience, and taking advantage of the better competitive environment. This has set Anywhere up for powerful momentum as the housing market improves.
Charlotte Simonelli, Anywhere's executive vice president, chief financial officer, and treasurer, highlighted the company's ability to generate meaningful Operating EBITDA, overdeliver on cost savings, achieve sizable debt reduction, and prudently manage cash.
Key Financial Highlights
Anywhere Real Estate Inc (HOUS, Financial) reported a net income of $129 million for Q3 2023. The company's Operating EBITDA stood at $107 million, marking a decrease of $59 million year-over-year. The company also realized third-quarter cost savings of approximately $60 million and over $160 million year-to-date. The company's free cash flow was reported at $95 million.
2023 Financial Estimates
Anywhere Real Estate Inc (HOUS, Financial) expects full-year 2023 transaction volumes to decline about 15-20% year-over-year due to projected volume declines and higher mortgage rates in the latter part of Q3. However, the company still expects Free Cash Flow from operations to be modestly positive.
Balance Sheet Overview
As of September 30, 2023, the company's total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $2.5 billion. The company ended the quarter with cash and cash equivalents of $151 million. The company's Senior Secured Leverage Ratio was 1.30x at September 30, 2023.
