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, 2016. |
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, 2016. |
• | Revenue of $5.7 billion, which represents a 7% increase compared to 2014, was primarily driven by higher homesale transaction volume. |
• | Net income was $184 million, a 29% increase from the prior year, and basic earnings per share was $1.26, up from $0.98 in 2014 (See Table 1). |
• | Adjusted net income for the year was $219 million, and adjusted basic earnings per share was $1.49, increases of 27% and 26%, respectively, on a comparable basis to 2014 (See Table 1a). |
• | Adjusted EBITDA was $845 million, compared to $779 million in 2014, a year-over-year increase of $66 million, or 8% (See Tables 5a and 5b). |
• | The Company generated $437 million of free cash flow in full-year 2015, a 19% increase compared with $367 million during 2014 (See Table 7). |
Investor Contacts: | Media Contact: | |
Alicia Swift | Mark Panus | |
(973) 407-4669 | (973) 407-7215 | |
alicia.swift@realogy.com | mark.panus@realogy.com | |
Jennifer Halchak | ||
(973) 407-7487 | ||
jennifer.halchak@realogy.com |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Revenues | |||||||||||
Gross commission income | $ | 4,288 | $ | 4,028 | $ | 3,946 | |||||
Service revenue | 882 | 802 | 867 | ||||||||
Franchise fees | 353 | 333 | 322 | ||||||||
Other | 183 | 165 | 154 | ||||||||
Net revenues | 5,706 | 5,328 | 5,289 | ||||||||
Expenses | |||||||||||
Commission and other agent-related costs | 2,931 | 2,755 | 2,691 | ||||||||
Operating | 1,458 | 1,350 | 1,371 | ||||||||
Marketing | 226 | 214 | 199 | ||||||||
General and administrative | 337 | 293 | 327 | ||||||||
Former parent legacy benefit, net | (15 | ) | (10 | ) | (4 | ) | |||||
Restructuring costs, net | 10 | (1 | ) | 4 | |||||||
Depreciation and amortization | 201 | 190 | 176 | ||||||||
Interest expense, net | 231 | 267 | 281 | ||||||||
Loss on the early extinguishment of debt | 48 | 47 | 68 | ||||||||
Other (income)/expense, net | (3 | ) | (2 | ) | 1 | ||||||
Total expenses | 5,424 | 5,103 | 5,114 | ||||||||
Income before income taxes, equity in earnings and noncontrolling interests | 282 | 225 | 175 | ||||||||
Income tax expense (benefit) | 110 | 87 | (242 | ) | |||||||
Equity in earnings of unconsolidated entities | (16 | ) | (9 | ) | (26 | ) | |||||
Net income | 188 | 147 | 443 | ||||||||
Less: Net income attributable to noncontrolling interests | (4 | ) | (4 | ) | (5 | ) | |||||
Net income attributable to Realogy Holdings | $ | 184 | $ | 143 | $ | 438 | |||||
Earnings per share attributable to Realogy Holdings: | |||||||||||
Basic earnings per share | $ | 1.26 | $ | 0.98 | $ | 3.01 | |||||
Diluted earnings per share | $ | 1.24 | $ | 0.97 | $ | 2.99 | |||||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||||||
Basic | 146.5 | 146.0 | 145.4 | ||||||||
Diluted | 148.1 | 147.2 | 146.6 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net income attributable to Realogy Holdings | $ | 184 | $ | 143 | $ | 438 | |||||
Addback: | |||||||||||
Loss on the early extinguishment of debt, net of tax | 29 | 28 | 40 | ||||||||
Mark-to-market interest rate swap adjustments, net of tax | 12 | 19 | (2 | ) | |||||||
Former parent legacy benefit, net of tax | (9 | ) | (6 | ) | (2 | ) | |||||
Reversal of the income tax valuation allowance | — | (11 | ) | (341 | ) | ||||||
Bararsani legal settlement, net of tax | 3 | — | — | ||||||||
Adjusted net income attributable to Realogy Holdings | $ | 219 | $ | 173 | $ | 133 | |||||
Adjusted earnings per share | |||||||||||
Basic earnings per share: | $ | 1.49 | $ | 1.18 | $ | 0.91 | |||||
Diluted earnings per share: | $ | 1.48 | $ | 1.18 | $ | 0.91 | |||||
Weighted average common and common equivalent shares outstanding: | |||||||||||
Basic: | 146.5 | 146.0 | 145.4 | ||||||||
Diluted: | 148.1 | 147.2 | 146.6 |
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 415 | $ | 313 | |||
Trade receivables (net of allowance for doubtful accounts of $20 and $27) | 141 | 116 | |||||
Relocation receivables | 279 | 297 | |||||
Other current assets | 126 | 120 | |||||
Total current assets | 961 | 846 | |||||
Property and equipment, net | 254 | 233 | |||||
Goodwill | 3,618 | 3,477 | |||||
Trademarks | 745 | 736 | |||||
Franchise agreements, net | 1,428 | 1,495 | |||||
Other intangibles, net | 316 | 341 | |||||
Other non-current assets | 209 | 176 | |||||
Total assets | $ | 7,531 | $ | 7,304 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 139 | $ | 128 | |||
Securitization obligations | 247 | 269 | |||||
Due to former parent | 31 | 51 | |||||
Current portion of long-term debt | 740 | 19 | |||||
Accrued expenses and other current liabilities | 448 | 411 | |||||
Total current liabilities | 1,605 | 878 | |||||
Long-term debt | 2,962 | 3,836 | |||||
Deferred income taxes | 267 | 171 | |||||
Other non-current liabilities | 275 | 236 | |||||
Total liabilities | 5,109 | 5,121 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at December 31, 2015 and December 31, 2014 | — | — | |||||
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized 146,746,537 shares outstanding at December 31, 2015 and 146,382,923 shares outstanding at December 31, 2014 | 1 | 1 | |||||
Additional paid-in capital | 5,733 | 5,677 | |||||
Accumulated deficit | (3,280 | ) | (3,464 | ) | |||
Accumulated other comprehensive loss | (36 | ) | (35 | ) | |||
Total stockholders' equity | 2,418 | 2,179 | |||||
Noncontrolling interests | 4 | 4 | |||||
Total equity | 2,422 | 2,183 | |||||
Total liabilities and equity | $ | 7,531 | $ | 7,304 |
Quarter Ended | Year Ended | |||||||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2015 | ||||||||||||||||
RFG (a) (b) | ||||||||||||||||||||
Closed homesale sides | 212,139 | 307,293 | 318,873 | 263,028 | 1,101,333 | |||||||||||||||
Average homesale price | $ | 251,373 | $ | 266,456 | $ | 267,296 | $ | 266,874 | $ | 263,894 | ||||||||||
Average homesale broker commission rate | 2.52 | % | 2.52 | % | 2.52 | % | 2.49 | % | 2.51 | % | ||||||||||
Net effective royalty rate | 4.52 | % | 4.48 | % | 4.47 | % | 4.46 | % | 4.48 | % | ||||||||||
Royalty per side | $ | 302 | $ | 312 | $ | 312 | $ | 309 | $ | 309 | ||||||||||
NRT | ||||||||||||||||||||
Closed homesale sides (c) | 60,187 | 99,435 | 99,789 | 77,333 | 336,744 | |||||||||||||||
Average homesale price (d) | $ | 502,597 | $ | 493,746 | $ | 479,874 | $ | 487,024 | $ | 489,673 | ||||||||||
Average homesale broker commission rate | 2.43 | % | 2.46 | % | 2.48 | % | 2.47 | % | 2.46 | % | ||||||||||
Gross commission income per side | $ | 13,019 | $ | 12,830 | $ | 12,524 | $ | 12,645 | $ | 12,730 | ||||||||||
Cartus | ||||||||||||||||||||
Initiations | 38,168 | 51,528 | 42,303 | 35,750 | 167,749 | |||||||||||||||
Referrals | 18,022 | 29,033 | 30,010 | 22,466 | 99,531 | |||||||||||||||
TRG | ||||||||||||||||||||
Purchase title and closing units (e) | 21,643 | 35,596 | 41,245 | 32,057 | 130,541 | |||||||||||||||
Refinance title and closing units (f) | 9,496 | 9,815 | 9,989 | 9,244 | 38,544 | |||||||||||||||
Average fee per closing unit | $ | 1,751 | $ | 1,795 | $ | 1,932 | $ | 1,928 | $ | 1,861 |
(a) | Includes all franchisees except for NRT. |
(b) | In April 2015, NRT acquired a large franchisee of RFG. As a result of the acquisition, the drivers of the acquired entity shifted from RFG to NRT. Closed homesale sides for RFG, excluding the impact of the acquisition, would have increased 5% for the year ended December 31, 2015 compared to 2014. The acquisition did not have a significant impact on the change in average homesale price for RFG. |
(c) | Closed homesale sides for NRT, excluding the impact of larger acquisitions with an individual purchase price greater than $20 million, would have increased 2% for the year ended December 31, 2015 compared to 2014. |
(d) | Average homesale price for NRT, excluding the impact of larger acquisitions with an individual purchase price greater than $20 million, would have increased 1% for the year ended December 31, 2015 compared to 2014. |
(e) | The amounts presented for the year ended December 31, 2015 include 13,304 purchase units as a result of the acquisition of Independence Title on July 1, 2015. |
(f) | The amounts presented for the year ended December 31, 2015 include 3,403 refinance units as a result of the acquisition of Independence Title on July 1, 2015. |
Quarter Ended | Year Ended | |||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | ||||||||||||||||
RFG (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 | ||||||||||
NRT | ||||||||||||||||||||
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 | ||||||||||
Cartus | ||||||||||||||||||||
Initiations | 37,898 | 51,306 | 44,019 | 37,987 | 171,210 | |||||||||||||||
Referrals | 16,496 | 27,346 | 29,259 | 23,654 | 96,755 | |||||||||||||||
TRG | ||||||||||||||||||||
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 price per closing unit | $ | 1,715 | $ | 1,812 | $ | 1,803 | $ | 1,770 | $ | 1,780 |
(a) | Includes all franchisees except for NRT. |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||
Net revenues (a) | |||||||||||||||||||
Real Estate Franchise Services | $ | 151 | $ | 213 | $ | 214 | $ | 177 | $ | 755 | |||||||||
Company Owned Real Estate Brokerage Services | 796 | 1,289 | 1,267 | 992 | 4,344 | ||||||||||||||
Relocation Services | 85 | 108 | 124 | 98 | 415 | ||||||||||||||
Title and Settlement Services | 87 | 128 | 147 | 125 | 487 | ||||||||||||||
Corporate and Other | (57 | ) | (87 | ) | (84 | ) | (67 | ) | (295 | ) | |||||||||
Total Company | $ | 1,062 | $ | 1,651 | $ | 1,668 | $ | 1,325 | $ | 5,706 | |||||||||
EBITDA (b) | |||||||||||||||||||
Real Estate Franchise Services | $ | 86 | $ | 146 | $ | 152 | $ | 111 | $ | 495 | |||||||||
Company Owned Real Estate Brokerage Services | (16 | ) | 97 | 96 | 22 | 199 | |||||||||||||
Relocation Services | 7 | 29 | 47 | 22 | 105 | ||||||||||||||
Title and Settlement Services | (3 | ) | 20 | 20 | 11 | 48 | |||||||||||||
Corporate and Other (c) | (16 | ) | (27 | ) | (6 | ) | (72 | ) | (121 | ) | |||||||||
Total Company | $ | 58 | $ | 265 | $ | 309 | $ | 94 | $ | 726 | |||||||||
Less: | |||||||||||||||||||
Depreciation and amortization | 46 | 52 | 55 | 48 | 201 | ||||||||||||||
Interest expense, net | 68 | 50 | 70 | 43 | 231 | ||||||||||||||
Income tax expense (benefit) | (24 | ) | 66 | 74 | (6 | ) | 110 | ||||||||||||
Net Income (loss) attributable to Realogy Holdings | $ | (32 | ) | $ | 97 | $ | 110 | $ | 9 | $ | 184 |
(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 $57 million, $87 million, $84 million and $67 million for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | The three months ended June 30, 2015 includes a net benefit of $1 million from former parent legacy items at the Corporate and Other segment. |
(c) | The three months ended June 30, 2015 includes $6 million of costs related to the settlement of a legal matter, subject to court approval, and certain transaction costs related to acquisitions in April 2015. |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
2014 | 2014 | 2014 | 2014 | 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 and $1 million of former parent legacy costs. |
Year Ended December 31, 2015 | |||
Net income attributable to Realogy Group | $ | 184 | |
Income tax expense | 110 | ||
Income before income taxes | 294 | ||
Interest expense, net | 231 | ||
Depreciation and amortization | 201 | ||
EBITDA | 726 | ||
Covenant calculation adjustments: | |||
Restructuring costs and former parent legacy benefit, net (a) | (5 | ) | |
Loss on the early extinguishment of debt | 48 | ||
Pro forma effect of business optimization initiatives (b) | 14 | ||
Non-cash charges (c) | 46 | ||
Pro forma effect of acquisitions and new franchisees (d) | 12 | ||
Incremental securitization interest costs (e) | 4 | ||
Adjusted EBITDA | $ | 845 | |
Total senior secured net debt (f) | $ | 2,180 | |
Senior secured leverage ratio | 2.58 | x |
(a) | Consists of $10 million of restructuring costs offset by a net benefit of $15 million of former parent legacy items. |
(b) | Represents the twelve-month pro forma effect of business optimization initiatives. |
(c) | Represents the elimination of non-cash expenses, including $57 million of stock-based compensation expense less $11 million for the change in the allowance for doubtful accounts and notes reserves. |
(d) | Represents the estimated impact of acquisitions and franchise sales activity, net of brokerages that exited our franchise system as if these changes had occurred on January 1, 2015. Franchisee sales activity is comprised of new franchise agreements as well as growth through acquisitions and sales agent recruitment 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, 2015. |
(e) | Incremental borrowing costs incurred as a result of the securitization facilities refinancing for the twelve months ended December 31, 2015. |
(f) | Represents total borrowings under the Senior Secured Credit Facility and borrowings secured by a first priority lien on our assets of $2,502 million plus $26 million of capital lease obligations less $348 million of readily available cash as of December 31, 2015. Pursuant to the terms of our Senior Secured Credit Facility and Term Loan A Facility, total senior secured net debt does not include our securitization obligations or unsecured indebtedness, including the Unsecured Notes. |
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 | 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 franchise sales activity, net of brokerages that exited our franchise system as if these changes had occurred on January 1, 2014. Franchisee sales activity is comprised of new franchise agreements as well as growth through acquisitions and sales agent recruitment 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 our securitization obligations or unsecured indebtedness, including the Unsecured Notes. |
Three Months Ended | |||||||
December 31, 2015 | December 31, 2014 | ||||||
Net income attributable to Realogy | $ | 9 | $ | 21 | |||
Income tax expense | (6 | ) | (1 | ) | |||
Income before income taxes | 3 | 20 | |||||
Interest expense, net | 43 | 70 | |||||
Depreciation and amortization | 48 | 50 | |||||
EBITDA | 94 | 140 | |||||
Restructuring costs (reversals) and former parent legacy benefit, net | 10 | (9 | ) | ||||
Loss on the early extinguishment of debt | 48 | 20 | |||||
Pro forma effect of business optimization initiatives | 2 | 5 | |||||
Non-cash charges | 17 | 8 | |||||
Pro forma effect of acquisitions and new franchisees | 2 | 2 | |||||
Incremental securitization interest costs | 1 | 1 | |||||
Adjusted EBITDA | $ | 174 | $ | 167 |
Year Ended | |||||||||||||||
December 31, 2015 | December 31, 2014 | ||||||||||||||
($ in millions) | ($ per share) | ($ in millions) | ($ per share) | ||||||||||||
Net income attributable to Realogy Holdings / Basic earnings per share | $ | 184 | $ | 1.26 | $ | 143 | $ | 0.98 | |||||||
Income tax expense, net of payments | 93 | 0.63 | 77 | 0.53 | |||||||||||
Interest expense, net | 231 | 1.58 | 267 | 1.83 | |||||||||||
Cash interest payments | (244 | ) | (1.67 | ) | (249 | ) | (1.71 | ) | |||||||
Depreciation and amortization | 201 | 1.37 | 190 | 1.30 | |||||||||||
Capital expenditures | (84 | ) | (0.57 | ) | (71 | ) | (0.49 | ) | |||||||
Restructuring costs (reversals) and former parent legacy benefit, net of payments | (14 | ) | (0.10 | ) | (15 | ) | (0.10 | ) | |||||||
Loss on the early extinguishment of debt | 48 | 0.33 | 47 | 0.32 | |||||||||||
Working capital adjustments | 26 | 0.18 | (10 | ) | (0.07 | ) | |||||||||
Relocation receivables, net of securitization obligations | (4 | ) | (0.03 | ) | (12 | ) | (0.08 | ) | |||||||
Free Cash Flow / Cash Earnings Per Share | $ | 437 | $ | 2.98 | $ | 367 | $ | 2.51 | |||||||
Basic weighted average number of common shares outstanding (in millions) | 146.5 | 146.0 |
• | 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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