Delaware | 001-35674 | 20-8050955 | ||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Delaware | 333-148153 | 20-4381990 | ||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit No. | Description | |
99.1 | Press Release dated February 24, 2015. |
REALOGY HOLDINGS CORP. | ||
By: | /s/ ANTHONY E. HULL | |
Anthony E. Hull, Executive Vice President, Chief Financial Officer and Treasurer |
REALOGY GROUP LLC | ||
By: | /s/ ANTHONY E. HULL | |
Anthony E. Hull, Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit No. | Exhibit | |
99.1 | Press Release dated February 24, 2015. |
• | Fourth quarter 2014 revenue of $1.3 billion increased 3% compared to fourth quarter 2013, driven by higher transaction volume at RFG and NRT. |
• | Fourth quarter 2014 Adjusted EBITDA(1) was $167 million, compared to $151 million a year ago, a year-over-year increase of 11%. Net income was $21 million for the quarter. |
• | Net revenue for full year 2014 was $5.3 billion, up 1% compared to full year 2013. |
• | Adjusted EBITDA for 2014 was $779 million, above the guidance range of $765 million to $775 million that the Company forecasted during its third quarter investor call. |
• | Net income for full year 2014 was $143 million. 2014 adjusted net income(2) excluding the reversal of the income tax valuation allowance and loss on the early extinguishment of debt was $160 million, compared to 2013 adjusted net income of $137 million. |
• | Basic earnings per share was $0.98 for the full year. Adjusted earnings per share(2) was $1.10, compared to 2013 adjusted earnings per share of $0.94. |
• | Realogy generated $367 million of free cash flow(1) for the full year, or $2.51 per share. |
• | For 2014, Realogy's company-owned (NRT) and franchise (RFG) business segments' combined homesale transaction volume (transaction sides multiplied by average sale price) increased by 5% compared to 2013. RFG and NRT reported average homesale price increases of 7% and 6%, year-over-year while homesale transactions declined 2% and 3%, respectively. Realogy's overall 5% increase in homesale transaction volume compared favorably with the National Association of Realtors' national average of 1% volume growth in 2014. |
Investor Contacts: | Media Contact: | |
Alicia Swift | Mark Panus | |
(973) 407-4669 | (973) 407-7215 | |
alicia.swift@realogy.com | mark.panus@realogy.com | |
Jennifer Pepper | ||
(973) 407-7487 | ||
jennifer.pepper@realogy.com |
For the Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues | |||||||||||
Gross commission income | $ | 4,028 | $ | 3,946 | $ | 3,428 | |||||
Service revenue | 802 | 867 | 821 | ||||||||
Franchise fees | 333 | 322 | 271 | ||||||||
Other | 165 | 154 | 152 | ||||||||
Net revenues | 5,328 | 5,289 | 4,672 | ||||||||
Expenses | |||||||||||
Commission and other agent-related costs | 2,755 | 2,691 | 2,319 | ||||||||
Operating | 1,350 | 1,371 | 1,313 | ||||||||
Marketing | 214 | 199 | 190 | ||||||||
General and administrative | 293 | 327 | 327 | ||||||||
Former parent legacy costs (benefit), net | (10 | ) | (4 | ) | (8 | ) | |||||
Restructuring costs, net | (1 | ) | 4 | 12 | |||||||
Depreciation and amortization | 190 | 176 | 173 | ||||||||
Interest expense, net | 267 | 281 | 528 | ||||||||
Loss on the early extinguishment of debt | 47 | 68 | 24 | ||||||||
IPO related costs for Convertible Notes | — | — | 361 | ||||||||
Other (income)/expense, net | (2 | ) | 1 | (4 | ) | ||||||
Total expenses | 5,103 | 5,114 | 5,235 | ||||||||
Income (loss) before income taxes, equity in earnings and noncontrolling interests | 225 | 175 | (563 | ) | |||||||
Income tax expense (benefit) | 87 | (242 | ) | 39 | |||||||
Equity in earnings of unconsolidated entities | (9 | ) | (26 | ) | (62 | ) | |||||
Net income (loss) | 147 | 443 | (540 | ) | |||||||
Less: Net income attributable to noncontrolling interests | (4 | ) | (5 | ) | (3 | ) | |||||
Net income (loss) attributable to Realogy Holdings | $ | 143 | $ | 438 | $ | (543 | ) | ||||
Earnings (loss) per share attributable to Realogy Holdings: | |||||||||||
Basic earnings (loss) per share | $ | 0.98 | $ | 3.01 | $ | (14.41 | ) | ||||
Diluted earnings (loss) per share | $ | 0.97 | $ | 2.99 | $ | (14.41 | ) | ||||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||||||
Basic | 146.0 | 145.4 | 37.7 | ||||||||
Diluted | 147.2 | 146.6 | 37.7 |
For The Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income (loss) attributable to Realogy Holdings | $ | 143 | $ | 438 | $ | (543 | ) | ||||
Addback: | |||||||||||
Loss on the early extinguishment of debt, net of tax | 28 | 40 | 24 | ||||||||
Reversal of the income tax valuation allowance | (11 | ) | (341 | ) | — | ||||||
Adjusted net income (loss) attributable to Realogy Holdings | $ | 160 | $ | 137 | $ | (519 | ) | ||||
Adjusted earnings (loss) per share | |||||||||||
Basic earnings (loss) per share: | $ | 1.10 | $ | 0.94 | $ | (13.77 | ) | ||||
Diluted earnings (loss) per share: | $ | 1.09 | $ | 0.93 | $ | (13.77 | ) | ||||
Weighted average common and common equivalent shares outstanding: | |||||||||||
Basic: | 146.0 | 145.4 | 37.7 | ||||||||
Diluted: | 147.2 | 146.6 | 37.7 |
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 313 | $ | 236 | |||
Trade receivables (net of allowance for doubtful accounts of $27 and $37) | 116 | 121 | |||||
Relocation receivables | 297 | 270 | |||||
Deferred income taxes | 180 | 186 | |||||
Other current assets | 120 | 104 | |||||
Total current assets | 1,026 | 917 | |||||
Property and equipment, net | 233 | 205 | |||||
Goodwill | 3,477 | 3,335 | |||||
Trademarks | 736 | 732 | |||||
Franchise agreements, net | 1,495 | 1,562 | |||||
Other intangibles, net | 341 | 365 | |||||
Other non-current assets | 230 | 210 | |||||
Total assets | $ | 7,538 | $ | 7,326 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 128 | $ | 123 | |||
Securitization obligations | 269 | 252 | |||||
Due to former parent | 51 | 63 | |||||
Current portion of long-term debt | 19 | 19 | |||||
Accrued expenses and other current liabilities | 411 | 454 | |||||
Total current liabilities | 878 | 911 | |||||
Long-term debt | 3,891 | 3,886 | |||||
Deferred income taxes | 350 | 337 | |||||
Other non-current liabilities | 236 | 179 | |||||
Total liabilities | 5,355 | 5,313 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at December 31, 2014 and December 31, 2013. | — | — | |||||
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized, 146,382,923 shares outstanding at December 31, 2014 and 146,125,337 shares outstanding at December 31, 2013. | 1 | 1 | |||||
Additional paid-in capital | 5,677 | 5,635 | |||||
Accumulated deficit | (3,464 | ) | (3,607 | ) | |||
Accumulated other comprehensive loss | (35 | ) | (19 | ) | |||
Total stockholders' equity | 2,179 | 2,010 | |||||
Noncontrolling interests | 4 | 3 | |||||
Total equity | 2,183 | 2,013 | |||||
Total liabilities and equity | $ | 7,538 | $ | 7,326 |
Quarter Ended | Year Ended | |||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | ||||||||||||||||
Real Estate Franchise Services (a) | ||||||||||||||||||||
Closed homesale sides | 203,972 | 293,450 | 306,338 | 261,578 | 1,065,339 | |||||||||||||||
Average homesale price | $ | 236,711 | $ | 252,606 | $ | 255,780 | $ | 251,539 | $ | 250,214 | ||||||||||
Average homesale broker commission rate | 2.53 | % | 2.53 | % | 2.51 | % | 2.52 | % | 2.52 | % | ||||||||||
Net effective royalty rate | 4.49 | % | 4.46 | % | 4.49 | % | 4.52 | % | 4.49 | % | ||||||||||
Royalty per side | $ | 282 | $ | 297 | $ | 301 | $ | 299 | $ | 296 | ||||||||||
Company Owned Real Estate Brokerage Services | ||||||||||||||||||||
Closed homesale sides | 56,685 | 87,803 | 89,472 | 74,372 | 308,332 | |||||||||||||||
Average homesale price | $ | 489,053 | $ | 511,969 | $ | 498,650 | $ | 498,276 | $ | 500,589 | ||||||||||
Average homesale broker commission rate | 2.50 | % | 2.47 | % | 2.46 | % | 2.45 | % | 2.47 | % | ||||||||||
Gross commission income per side | $ | 13,041 | $ | 13,335 | $ | 12,985 | $ | 12,888 | $ | 13,072 | ||||||||||
Relocation Services | ||||||||||||||||||||
Initiations | 37,898 | 51,306 | 44,019 | 37,987 | 171,210 | |||||||||||||||
Referrals | 16,496 | 27,346 | 29,259 | 23,654 | 96,755 | |||||||||||||||
Title and Settlement Services | ||||||||||||||||||||
Purchase title and closing units | 20,775 | 33,104 | 32,355 | 26,840 | 113,074 | |||||||||||||||
Refinance title and closing units | 7,199 | 6,410 | 6,520 | 7,400 | 27,529 | |||||||||||||||
Average fee per closing unit | $ | 1,715 | $ | 2,013 | $ | 1,956 | $ | 1,770 | $ | 1,780 |
(a) | Includes all franchisees except for our Company Owned Real Estate Brokerage Services segment. |
Quarter Ended | Year Ended | |||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | December 31, 2013 | ||||||||||||||||
Real Estate Franchise Services (a) | ||||||||||||||||||||
Closed homesale sides | 209,779 | 302,420 | 315,432 | 255,793 | 1,083,424 | |||||||||||||||
Average homesale price | $ | 210,919 | $ | 236,590 | $ | 240,408 | $ | 237,776 | $ | 233,011 | ||||||||||
Average homesale broker commission rate | 2.56 | % | 2.55 | % | 2.53 | % | 2.53 | % | 2.54 | % | ||||||||||
Net effective royalty rate | 4.57 | % | 4.51 | % | 4.46 | % | 4.44 | % | 4.49 | % | ||||||||||
Royalty per side | $ | 258 | $ | 281 | $ | 281 | $ | 278 | $ | 276 | ||||||||||
Company Owned Real Estate Brokerage Services | ||||||||||||||||||||
Closed homesale sides | 58,060 | 92,878 | 93,083 | 72,619 | 316,640 | |||||||||||||||
Average homesale price | $ | 427,812 | $ | 478,280 | $ | 475,823 | $ | 490,666 | $ | 471,144 | ||||||||||
Average homesale broker commission rate | 2.52 | % | 2.49 | % | 2.49 | % | 2.49 | % | 2.50 | % | ||||||||||
Gross commission income per side | $ | 11,630 | $ | 12,598 | $ | 12,527 | $ | 12,856 | $ | 12,459 | ||||||||||
Relocation Services | ||||||||||||||||||||
Initiations | 35,951 | 51,311 | 42,788 | 35,655 | 165,705 | |||||||||||||||
Referrals | 15,677 | 26,258 | 28,406 | 21,032 | 91,373 | |||||||||||||||
Title and Settlement Services | ||||||||||||||||||||
Purchase title and closing units | 21,506 | 34,157 | 33,540 | 26,369 | 115,572 | |||||||||||||||
Refinance title and closing units | 24,500 | 23,123 | 17,625 | 10,948 | 76,196 | |||||||||||||||
Average price per closing unit | $ | 1,322 | $ | 1,490 | $ | 1,579 | $ | 1,649 | $ | 1,504 |
(a) | Includes all franchisees except for our Company Owned Real Estate Brokerage Services segment. |
For the Three Months Ended | For the Year Ended | ||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | |||||||||||||||
Net revenues (a) | |||||||||||||||||||
Real Estate Franchise Services | $ | 144 | $ | 196 | $ | 199 | $ | 177 | $ | 716 | |||||||||
Company Owned Real Estate Brokerage Services | 750 | 1,182 | 1,175 | 971 | 4,078 | ||||||||||||||
Relocation Services | 86 | 107 | 125 | 101 | 419 | ||||||||||||||
Title and Settlement Services | 81 | 108 | 111 | 98 | 398 | ||||||||||||||
Corporate and Other | (54 | ) | (81 | ) | (79 | ) | (69 | ) | (283 | ) | |||||||||
Total Company | $ | 1,007 | $ | 1,512 | $ | 1,531 | $ | 1,278 | $ | 5,328 | |||||||||
EBITDA (b) | |||||||||||||||||||
Real Estate Franchise Services | $ | 79 | $ | 137 | $ | 136 | $ | 111 | $ | 463 | |||||||||
Company Owned Real Estate Brokerage Services | (20 | ) | 91 | 93 | 29 | 193 | |||||||||||||
Relocation Services | 7 | 26 | 47 | 22 | 102 | ||||||||||||||
Title and Settlement Services | (5 | ) | 17 | 15 | 9 | 36 | |||||||||||||
Corporate and Other | (25 | ) | (33 | ) | (18 | ) | (31 | ) | (107 | ) | |||||||||
Total Company | $ | 36 | $ | 238 | $ | 273 | $ | 140 | $ | 687 | |||||||||
Less: | |||||||||||||||||||
Depreciation and amortization | 46 | 46 | 48 | 50 | 190 | ||||||||||||||
Interest expense, net | 70 | 73 | 54 | 70 | 267 | ||||||||||||||
Income tax expense (benefit) | (34 | ) | 51 | 71 | (1 | ) | 87 | ||||||||||||
Net income (loss) attributable to Realogy Holdings | $ | (46 | ) | $ | 68 | $ | 100 | $ | 21 | $ | 143 |
(a) | Transactions between segments are eliminated in consolidation. Revenues for the Real Estate Franchise Services segment include intercompany royalties and marketing fees paid by the Company Owned Real Estate Brokerage Services segment of $54 million, $81 million, $79 million and $69 million for the three months ended March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | The three months ended March 31, 2014 includes $10 million related to the loss on early extinguishment of debt, $1 million related to the Phantom Value Plan and $1 million of former parent legacy costs. |
For the Three Months Ended | For the Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
2013 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Net revenues (a) | |||||||||||||||||||
Real Estate Franchise Services | $ | 135 | $ | 193 | $ | 193 | $ | 169 | $ | 690 | |||||||||
Company Owned Real Estate Brokerage Services | 686 | 1,182 | 1,178 | 944 | 3,990 | ||||||||||||||
Relocation Services | 87 | 108 | 127 | 97 | 419 | ||||||||||||||
Title and Settlement Services | 100 | 130 | 134 | 103 | 467 | ||||||||||||||
Corporate and Other | (51 | ) | (80 | ) | (79 | ) | (67 | ) | (277 | ) | |||||||||
Total Company | $ | 957 | $ | 1,533 | $ | 1,553 | $ | 1,246 | $ | 5,289 | |||||||||
EBITDA (b) | |||||||||||||||||||
Real Estate Franchise Services | $ | 72 | $ | 133 | $ | 133 | $ | 110 | $ | 448 | |||||||||
Company Owned Real Estate Brokerage Services | (8 | ) | 102 | 91 | 21 | 206 | |||||||||||||
Relocation Services | 10 | 27 | 45 | 22 | 104 | ||||||||||||||
Title and Settlement Services | 4 | 20 | 17 | 9 | 50 | ||||||||||||||
Corporate and Other | (15 | ) | (78 | ) | (50 | ) | (12 | ) | (155 | ) | |||||||||
Total Company | $ | 63 | $ | 204 | $ | 236 | $ | 150 | $ | 653 | |||||||||
Less: | |||||||||||||||||||
Depreciation and amortization | 42 | 44 | 44 | 46 | 176 | ||||||||||||||
Interest expense, net | 89 | 67 | 74 | 51 | 281 | ||||||||||||||
Income tax expense (benefit) | 7 | 9 | 9 | (267 | ) | (242 | ) | ||||||||||||
Net income (loss) attributable to Realogy Holdings | $ | (75 | ) | $ | 84 | $ | 109 | $ | 320 | $ | 438 |
(a) | Transactions between segments are eliminated in consolidation. Revenues for the Real Estate Franchise Services segment include intercompany royalties and marketing fees paid by the Company Owned Real Estate Brokerage Services segment of $51 million, $80 million, $79 million and $67 million for the three months ended March 31, 2013, June 30, 2013, September 30, 2013 and December 31, 2013, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | The three months ended March 31, 2013 includes $3 million related to the loss on early extinguishment of debt and $1 million of former parent legacy costs. |
For the Year Ended December 31, 2014 | |||
Net income attributable to Realogy Group | $ | 143 | |
Income tax expense | 87 | ||
Income before income taxes | 230 | ||
Interest expense, net | 267 | ||
Depreciation and amortization | 190 | ||
EBITDA | 687 | ||
Covenant calculation adjustments: | |||
Restructuring costs (reversals) and former parent legacy costs (benefit), net (a) | (11 | ) | |
Loss on the early extinguishment of debt | 47 | ||
Pro forma effect of business optimization initiatives (b) | 14 | ||
Non-cash charges (c) | 30 | ||
Pro forma effect of acquisitions and new franchisees (d) | 8 | ||
Incremental securitization interest costs (e) | 4 | ||
Adjusted EBITDA | $ | 779 | |
Total senior secured net debt (f) | $ | 2,242 | |
Senior secured leverage ratio (g) | 2.88 | x |
(a) | Consists of a net benefit of $1 million for the reversal of a restructuring reserve and a net benefit of $10 million for former parent legacy items. |
(b) | Represents the twelve-month pro forma effect of business optimization initiatives including $9 million of transaction and integration costs incurred for the ZipRealty acquisition, $3 million related to business cost cutting initiatives and $2 million related to vendor renegotiations. |
(c) | Represents the elimination of non-cash expenses, including $43 million of stock-based compensation expense less $12 million for the change in the allowance for doubtful accounts and notes reserves and $1 million of other items from January 1, 2014 through December 31, 2014. |
(d) | Represents the estimated impact of acquisitions and new franchisees as if they had been acquired or signed on January 1, 2014. Franchisee sales activity is comprised of new franchise agreements as well as growth acquired by existing franchisees with our assistance. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities or entered into the franchise contracts as of January 1, 2014. |
(e) | Incremental borrowing costs incurred as a result of the securitization facilities refinancing for the twelve months ended December 31, 2014. |
(f) | Represents total borrowings under the senior secured credit facility and borrowings secured by a first priority lien on our assets of $2,480 million plus $20 million of capital lease obligations less $258 million of readily available cash as of December 31, 2014. Pursuant to the terms of our senior secured credit facility, total senior secured net debt does not include the 9.00% First and a Half Lien Notes, other indebtedness secured by a lien on our assets that is pari passu or junior in priority to the 9.00% First and a Half Lien Notes, our securitization obligations or unsecured indebtedness, including the Unsecured Notes. |
(g) | Realogy Group’s borrowings and outstanding letters of credit issued under the revolving credit facility did not exceed 25% of the revolving credit facility's borrowing capacity at December 31, 2014, and accordingly the covenant was not applicable. |
For the Year Ended December 31, 2013 | |||
Net income attributable to Realogy Group | $ | 438 | |
Income tax benefit | (242 | ) | |
Income before income taxes | 196 | ||
Interest expense, net | 281 | ||
Depreciation and amortization | 176 | ||
EBITDA | 653 | ||
Covenant calculation adjustments: | |||
Restructuring costs and former parent legacy costs (benefit), net (a) | — | ||
Loss on the early extinguishment of debt | 68 | ||
Pro forma cost savings for 2013 restructuring initiatives (b) | 1 | ||
Pro forma effect of business optimization initiatives (c) | 16 | ||
Non-cash charges (d) | 39 | ||
Non-recurring fair value adjustments for purchase accounting (e) | 1 | ||
Pro forma effect of acquisitions and new franchisees (f) | 11 | ||
Fees for secondary equity offerings | 2 | ||
Incremental securitization interest costs (g) | 5 | ||
Adjusted EBITDA | $ | 796 | |
Total senior secured net debt (h) | $ | 2,346 | |
Senior secured leverage ratio (i) | 2.95x |
(a) | Consists of $4 million of restructuring costs offset by a benefit of $4 million of former parent legacy items. |
(b) | Represents incremental costs incurred for the corporate headquarters that are not expected to recur in subsequent periods. |
(c) | Represents the twelve-month pro forma effect of business optimization initiatives including $9 million related to business cost cutting initiatives, $2 million related to our Relocation Services integration costs, $3 million related to vendor renegotiations, and $2 million of other items. |
(d) | Represents the elimination of non-cash expenses, including $61 million of stock-based compensation expense and $1 million of other items less $23 million for the change in the allowance for doubtful accounts and notes reserves from January 1, 2013 through December 31, 2013. |
(e) | Reflects the adjustment for the negative impact of fair value adjustments for purchase accounting at the operating business segments primarily related to deferred rent. |
(f) | Represents the estimated impact of acquisitions and new franchisees as if they had been acquired or signed on January 1, 2013. Franchisee sales activity is comprised of new franchise agreements as well as growth acquired by existing franchisees with our assistance. We have made a number of assumptions in calculating such estimate and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities or entered into the franchise contracts as of January 1, 2013. |
(g) | Incremental borrowing costs incurred as a result of the securitization facilities refinancing for the twelve months ended December 31, 2013. |
(h) | Represents total borrowings under the senior secured credit facility and borrowings secured by a first priority lien on our assets of $2,498 million plus $19 million of capital lease obligations less $171 million of readily available cash as of December 31, 2013. Pursuant to the terms of our senior secured credit facility, total senior secured net debt does not include the First and a Half Lien Notes, other indebtedness secured by a lien on our assets that is pari passu or junior in priority to the First and a Half Lien Notes, our securitization obligations or unsecured indebtedness, including the Unsecured Notes. |
(i) | Realogy Group’s borrowings and outstanding letters of credit issued under the revolving credit facility did not exceed 25% of the revolving credit facility's borrowing capacity at December 31, 2013, and accordingly the covenant was not applicable. |
Three Months Ended | |||||||
December 31, 2014 | December 31, 2013 | ||||||
Net income attributable to Realogy | $ | 21 | $ | 320 | |||
Income tax expense | (1 | ) | (267 | ) | |||
Income before income taxes | 20 | 53 | |||||
Interest expense, net | 70 | 51 | |||||
Depreciation and amortization | 50 | 46 | |||||
EBITDA | 140 | 150 | |||||
Restructuring costs (reversals) and former parent legacy costs (benefit), net | (9 | ) | (4 | ) | |||
Loss on the early extinguishment of debt | 20 | — | |||||
Pro forma effect of business optimization initiatives | 5 | 1 | |||||
Non-cash charges | 8 | 2 | |||||
Pro forma effect of acquisitions and new franchisees | 2 | 1 | |||||
Incremental securitization interest costs | 1 | 1 | |||||
Adjusted EBITDA | $ | 167 | $ | 151 |
For the Year Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||
($ in millions) | ($ per share) | ($ in millions) | ($ per share) | ||||||||||||
Net income attributable to Realogy Holdings / Basic earnings per share | $ | 143 | $ | 0.98 | $ | 438 | $ | 3.01 | |||||||
Income tax expense (benefit), net of payments | 77 | 0.53 | (258 | ) | (1.77 | ) | |||||||||
Interest expense, net | 267 | 1.83 | 281 | 1.93 | |||||||||||
Cash interest payments | (249 | ) | (1.71 | ) | (312 | ) | (2.15 | ) | |||||||
Depreciation and amortization | 190 | 1.30 | 176 | 1.21 | |||||||||||
Capital expenditures | (71 | ) | (0.49 | ) | (62 | ) | (0.43 | ) | |||||||
Restructuring costs and reversals and legacy payments | (15 | ) | (0.10 | ) | (11 | ) | (0.08 | ) | |||||||
Cash payment related to Apollo management fee termination | — | — | (15 | ) | (0.10 | ) | |||||||||
Loss on the early extinguishment of debt | 47 | 0.32 | 68 | 0.47 | |||||||||||
Working capital adjustments | (10 | ) | (0.07 | ) | 70 | 0.48 | |||||||||
Relocation assets, net of securitization | (12 | ) | (0.08 | ) | 46 | 0.32 | |||||||||
Free Cash Flow / Cash Earnings Per Share | $ | 367 | $ | 2.51 | $ | 421 | $ | 2.89 | |||||||
Basic weighted average number of common shares outstanding (in millions) | 146.0 | 145.4 |
• | these measures do not reflect changes in, or cash required for, our working capital needs; |
• | these measures do not reflect our interest expense (except for interest related to our securitization obligations), or the cash requirements necessary to service interest or principal payments on our debt; |
• | these measures do not reflect our income tax expense or the cash requirements to pay our taxes; |
• | these measures do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures do not reflect any cash requirements for such replacements; and |
• | other companies may calculate these measures differently so they may not be comparable. |
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