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 November 4, 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 November 4, 2016. |
• | Revenue of $1.64 billion, a 1% decrease as compared to the third quarter of 2015, was primarily driven by lower homesale transaction volume at NRT along with lower referral revenue at Cartus, and partially offset by higher purchase and refinance closing unit volume at Title Resource Group (TRG). |
• | The Company's combined homesale transaction volume increased 2% in the quarter, consisting of a 4% volume gain at the Realogy Franchise Group (RFG) and a 3% decline in volume at NRT. |
• | Net income for the period was $106 million, compared to $110 million in the third quarter of 2015. Basic earnings per share (EPS) was $0.74, compared to $0.75 in third quarter of 2015 (See Table 1). |
• | Adjusted net income was $108 million and adjusted basic EPS was $0.75, decreases of 3% and 1%, respectively, compared to the third quarter of 2015 (See Table 1a).1 |
• | Operating EBITDA was $279 million, compared to $295 million in the third quarter of 2015, a year-over-year decrease of 5% (See Table 6).2 |
• | During the third quarter, Realogy repurchased approximately 2.5 million shares of Realogy’s common stock in the open market at a weighted average market price of $27 per share for a total of $67 million. Year-to-date, the Company has repurchased $134 million, or approximately 4.5 million shares, of common stock in the open market. |
• | As previously announced, the Company declared a quarterly cash dividend of $0.09 per share of the Company's common stock. The dividend payment was made on Aug. 31, 2016 to shareholders of record as of the close of business on Aug. 17, 2016. The next dividend payment will be made on Dec. 1, 2016 to shareholders of record as of the close of business on Nov. 17, 2016. |
• | The Company continued to execute on its business optimization program, improving the efficiency and effectiveness of the cost structure of each of the Company's business units. The Company expects to realize over $30 million in actual savings in 2016 and is on track to reach its annualized run-rate savings target of $60 million in 2017. The total cost to implement the program is $69 million, of which $40 million has been incurred to date. |
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 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | |||||||||||||||
Gross commission income | $ | 1,211 | $ | 1,251 | $ | 3,288 | $ | 3,310 | |||||||
Service revenue | 273 | 265 | 715 | 664 | |||||||||||
Franchise fees | 107 | 103 | 280 | 269 | |||||||||||
Other | 53 | 49 | 157 | 138 | |||||||||||
Net revenues | 1,644 | 1,668 | 4,440 | 4,381 | |||||||||||
Expenses | |||||||||||||||
Commission and other agent-related costs | 834 | 855 | 2,256 | 2,262 | |||||||||||
Operating | 400 | 381 | 1,158 | 1,089 | |||||||||||
Marketing | 58 | 56 | 181 | 171 | |||||||||||
General and administrative | 78 | 85 | 234 | 255 | |||||||||||
Former parent legacy costs (benefit), net | — | (14 | ) | 1 | (15 | ) | |||||||||
Restructuring costs | 9 | — | 30 | — | |||||||||||
Depreciation and amortization | 53 | 55 | 149 | 153 | |||||||||||
Interest expense, net | 37 | 70 | 169 | 188 | |||||||||||
Other income, net | (1 | ) | (2 | ) | (1 | ) | (3 | ) | |||||||
Total expenses | 1,468 | 1,486 | 4,177 | 4,100 | |||||||||||
Income before income taxes, equity in earnings and noncontrolling interests | 176 | 182 | 263 | 281 | |||||||||||
Income tax expense | 74 | 74 | 114 | 116 | |||||||||||
Equity in earnings of unconsolidated entities | (5 | ) | (4 | ) | (10 | ) | (13 | ) | |||||||
Net income | 107 | 112 | 159 | 178 | |||||||||||
Less: Net income attributable to noncontrolling interests | (1 | ) | (2 | ) | (3 | ) | (3 | ) | |||||||
Net income attributable to Realogy Holdings | $ | 106 | $ | 110 | $ | 156 | $ | 175 | |||||||
Earnings per share attributable to Realogy Holdings: | |||||||||||||||
Basic earnings per share | $ | 0.74 | $ | 0.75 | $ | 1.07 | $ | 1.19 | |||||||
Diluted earnings per share | $ | 0.73 | $ | 0.74 | $ | 1.06 | $ | 1.18 | |||||||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||||||||||
Basic | 144.0 | 146.6 | 145.4 | 146.5 | |||||||||||
Diluted | 145.1 | 148.1 | 146.6 | 148.0 | |||||||||||
Cash dividends declared per share (beginning in August 2016) | $ | 0.09 | $ | — | $ | 0.09 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Realogy Holdings | $ | 106 | $ | 110 | $ | 156 | $ | 175 | |||||||
Addback: | |||||||||||||||
Mark-to-market interest rate swap adjustments | (5 | ) | 16 | 40 | 27 | ||||||||||
Former parent legacy cost / (benefit) | — | (14 | ) | 1 | (15 | ) | |||||||||
Restructuring charges | 9 | — | 30 | — | |||||||||||
Adjustments for tax effect (a) | (2 | ) | (1 | ) | (28 | ) | (5 | ) | |||||||
Adjusted net income attributable to Realogy Holdings | $ | 108 | $ | 111 | $ | 199 | $ | 182 | |||||||
Earnings per share | |||||||||||||||
Basic earnings per share: | $ | 0.74 | $ | 0.75 | $ | 1.07 | $ | 1.19 | |||||||
Diluted earnings per share: | $ | 0.73 | $ | 0.74 | $ | 1.06 | $ | 1.18 | |||||||
Adjusted earnings per share | |||||||||||||||
Adjusted basic earnings per share: | $ | 0.75 | $ | 0.76 | $ | 1.37 | $ | 1.24 | |||||||
Adjusted diluted earnings per share: | $ | 0.74 | $ | 0.75 | $ | 1.36 | $ | 1.23 | |||||||
Weighted average common and common equivalent shares outstanding: | |||||||||||||||
Basic: | 144.0 | 146.6 | 145.4 | 146.5 | |||||||||||
Diluted: | 145.1 | 148.1 | 146.6 | 148.0 |
(a) | Reflects tax effect of adjustments at an assumed tax rate of 40%. |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 224 | $ | 415 | |||
Trade receivables (net of allowance for doubtful accounts of $14 and $20) | 172 | 141 | |||||
Relocation receivables | 290 | 279 | |||||
Other current assets | 140 | 126 | |||||
Total current assets | 826 | 961 | |||||
Property and equipment, net | 254 | 254 | |||||
Goodwill | 3,690 | 3,618 | |||||
Trademarks | 748 | 745 | |||||
Franchise agreements, net | 1,378 | 1,428 | |||||
Other intangibles, net | 326 | 316 | |||||
Other non-current assets | 233 | 209 | |||||
Total assets | $ | 7,455 | $ | 7,531 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 142 | $ | 139 | |||
Securitization obligations | 255 | 247 | |||||
Due to former parent | 31 | 31 | |||||
Current portion of long-term debt | 197 | 740 | |||||
Accrued expenses and other current liabilities | 431 | 448 | |||||
Total current liabilities | 1,056 | 1,605 | |||||
Long-term debt | 3,273 | 2,962 | |||||
Deferred income taxes | 365 | 267 | |||||
Other non-current liabilities | 293 | 275 | |||||
Total liabilities | 4,987 | 5,109 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at September 30, 2016 and December 31, 2015 | — | — | |||||
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized, 142,623,095 shares outstanding at September 30, 2016 and 146,746,537 shares outstanding at December 31, 2015 | 1 | 1 | |||||
Additional paid-in capital | 5,621 | 5,733 | |||||
Accumulated deficit | (3,119 | ) | (3,280 | ) | |||
Accumulated other comprehensive loss | (39 | ) | (36 | ) | |||
Total stockholders' equity | 2,464 | 2,418 | |||||
Noncontrolling interests | 4 | 4 | |||||
Total equity | 2,468 | 2,422 | |||||
Total liabilities and equity | $ | 7,455 | $ | 7,531 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||
RFG (a) | ||||||||||||||||||||||
Closed homesale sides | 323,176 | 318,873 | 1 | % | 861,254 | 838,305 | 3 | % | ||||||||||||||
Average homesale price | $ | 275,325 | $ | 267,296 | 3 | % | $ | 270,669 | $ | 262,959 | 3 | % | ||||||||||
Average homesale broker commission rate | 2.50 | % | 2.52 | % | (2) bps | 2.51 | % | 2.52 | % | (1 | ) bps | |||||||||||
Net effective royalty rate | 4.50 | % | 4.47 | % | 3 bps | 4.50 | % | 4.49 | % | 1 bps | ||||||||||||
Royalty per side | $ | 322 | $ | 312 | 3 | % | $ | 318 | $ | 309 | 3 | % | ||||||||||
NRT | ||||||||||||||||||||||
Closed homesale sides | 95,605 | 99,789 | (4 | %) | 258,163 | 259,411 | — | % | ||||||||||||||
Average homesale price | $ | 486,343 | $ | 479,874 | 1 | % | $ | 487,781 | $ | 490,463 | (1 | )% | ||||||||||
Average homesale broker commission rate | 2.46 | % | 2.48 | % | (2) bps | 2.47 | % | 2.46 | % | 1 | bps | |||||||||||
Gross commission income per side | $ | 12,681 | $ | 12,524 | 1 | % | $ | 12,750 | $ | 12,756 | — | % | ||||||||||
Cartus | ||||||||||||||||||||||
Initiations | 40,556 | 42,303 | (4 | %) | 129,290 | 131,999 | (2 | %) | ||||||||||||||
Referrals | 25,495 | 30,010 | (15 | %) | 68,526 | 77,065 | (11 | %) | ||||||||||||||
TRG | ||||||||||||||||||||||
Purchase title and closing units (b) | 42,932 | 41,245 | 4 | % | 116,082 | 98,484 | 18 | % | ||||||||||||||
Refinance title and closing units (c) | 15,170 | 9,989 | 52 | % | 36,100 | 29,300 | 23 | % | ||||||||||||||
Average fee per closing unit | $ | 1,824 | $ | 1,932 | (6 | %) | $ | 1,865 | $ | 1,839 | 1 | % |
(a) | Includes all franchisees except for NRT. |
(b) | The amounts presented for the nine months ended September 30, 2016 include 16,445 purchase units as a result of the acquisitions completed prior to and during the third quarter of 2016. The impact on the three months ended September 30, 2016 is immaterial. |
(c) | The amounts presented for the nine months ended September 30, 2016 include 3,372 refinance units as a result of the acquisitions completed prior to and during the third quarter of 2016. The impact on the three months ended September 30, 2016 is immaterial. |
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. |
Three Months Ended | |||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | |||||||||
Net revenues (a) | |||||||||||
Real Estate Franchise Services | $ | 157 | $ | 221 | $ | 215 | |||||
Company Owned Real Estate Brokerage Services | 841 | 1,268 | 1,231 | ||||||||
Relocation Services | 83 | 109 | 116 | ||||||||
Title and Settlement Services | 111 | 149 | 164 | ||||||||
Corporate and Other | (58 | ) | (85 | ) | (82 | ) | |||||
Total Company | $ | 1,134 | $ | 1,662 | $ | 1,644 | |||||
EBITDA (b) | |||||||||||
Real Estate Franchise Services | $ | 92 | $ | 149 | $ | 153 | |||||
Company Owned Real Estate Brokerage Services | (21 | ) | 78 | 74 | |||||||
Relocation Services | 5 | 29 | 40 | ||||||||
Title and Settlement Services | — | 26 | 23 | ||||||||
Corporate and Other | (21 | ) | (19 | ) | (20 | ) | |||||
Total Company | $ | 55 | $ | 263 | $ | 270 | |||||
Less: | |||||||||||
Depreciation and amortization | 48 | 48 | 53 | ||||||||
Interest expense, net | 73 | 59 | 37 | ||||||||
Income tax expense (benefit) | (24 | ) | 64 | 74 | |||||||
Net income (loss) attributable to Realogy Holdings | $ | (42 | ) | $ | 92 | $ | 106 |
(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 $58 million, $85 million and $82 million for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | Includes a net cost of $1 million of former parent legacy items for the three months ended March 31, 2016. Includes $9 million, $12 million and $9 million of restructuring charges for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively. |
Three Months Ended | |||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | |||||||||
Real Estate Franchise Services | $ | — | $ | 3 | $ | 1 | |||||
Company Owned Real Estate Brokerage Services | 2 | 7 | 6 | ||||||||
Relocation Services | 2 | 1 | 1 | ||||||||
Title and Settlement Services | — | — | 1 | ||||||||
Corporate and Other | 6 | 1 | — | ||||||||
Total Company | $ | 10 | $ | 12 | $ | 9 |
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 for former parent legacy items. |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||
Real Estate Franchise Services | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Company Owned Real Estate Brokerage Services | — | — | — | 5 | 5 | ||||||||||||||
Relocation Services | — | — | — | 1 | 1 | ||||||||||||||
Title and Settlement Services | — | — | — | — | — | ||||||||||||||
Corporate and Other | — | (1 | ) | (14 | ) | 52 | 37 | ||||||||||||
Total Company | $ | — | $ | (1 | ) | $ | (14 | ) | $ | 58 | $ | 43 |
(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. |
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 | ||
EBITDA adjustments: | |||
Restructuring costs | 10 | ||
Former parent legacy costs (benefit), net | (15 | ) | |
Loss on the early extinguishment of debt | 48 | ||
Operating EBITDA | 769 |
Three Months Ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
Net income attributable to Realogy Holdings | $ | 106 | $ | 110 | |||
Income tax expense | 74 | 74 | |||||
Income before income taxes | 180 | 184 | |||||
Interest expense, net | 37 | 70 | |||||
Depreciation and amortization | 53 | 55 | |||||
EBITDA | 270 | 309 | |||||
EBITDA adjustments: | |||||||
Restructuring costs | 9 | — | |||||
Former parent legacy benefit, net | — | (14 | ) | ||||
Operating EBITDA | $ | 279 | $ | 295 |
Revenues | Operating EBITDA | Operating EBITDA Margin | ||||||||||||||||||||||||||||||||||||
2016 | 2015 | Change | % Change | 2016 | 2015 | Change | % Change | 2016 | 2015 | Change | ||||||||||||||||||||||||||||
RFG | $ | 215 | $ | 214 | $ | 1 | — | % | $ | 154 | $ | 152 | $ | 2 | 1 | % | 72 | % | 71 | % | 1 | % | ||||||||||||||||
NRT | 1,231 | 1,267 | (36 | ) | (3 | ) | 80 | 96 | (16 | ) | (17 | ) | 6 | 8 | (2 | ) | ||||||||||||||||||||||
Cartus | 116 | 124 | (8 | ) | (6 | ) | 41 | 47 | (6 | ) | (13 | ) | 35 | 38 | (3 | ) | ||||||||||||||||||||||
TRG | 164 | 147 | 17 | 12 | 24 | 20 | 4 | 20 | 15 | 14 | 1 | |||||||||||||||||||||||||||
Corporate and Other | (82 | ) | (84 | ) | 2 | * | (20 | ) | (20 | ) | — | * | ||||||||||||||||||||||||||
Total Company | $ | 1,644 | $ | 1,668 | $ | (24 | ) | (1 | )% | $ | 279 | $ | 295 | $ | (16 | ) | (5 | )% | 17 | % | 18 | % | (1 | )% | ||||||||||||||
Less: Restructuring costs | 9 | — | ||||||||||||||||||||||||||||||||||||
Former parent legacy benefit, net | — | (14 | ) | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 53 | 55 | ||||||||||||||||||||||||||||||||||||
Interest expense, net | 37 | 70 | ||||||||||||||||||||||||||||||||||||
Income tax expense | 74 | 74 | ||||||||||||||||||||||||||||||||||||
Net income attributable to Realogy Holdings | $ | 106 | $ | 110 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Realogy Holdings | $ | 106 | $ | 110 | $ | 156 | $ | 175 | |||||||
Income tax expense, net of payments | 68 | 69 | 101 | 106 | |||||||||||
Interest expense, net | 37 | 70 | 169 | 188 | |||||||||||
Cash interest payments | (31 | ) | (57 | ) | (117 | ) | (165 | ) | |||||||
Depreciation and amortization | 53 | 55 | 149 | 153 | |||||||||||
Capital expenditures | (21 | ) | (19 | ) | (61 | ) | (60 | ) | |||||||
Restructuring costs and former parent legacy items, net of payments | (1 | ) | (15 | ) | 4 | (21 | ) | ||||||||
Working capital adjustments | 11 | 8 | (38 | ) | 16 | ||||||||||
Relocation receivables (assets), net of securitization obligations | 40 | 30 | (5 | ) | 13 | ||||||||||
Free Cash Flow | $ | 262 | $ | 251 | $ | 358 | $ | 405 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net cash provided by operating activities | $ | 308 | $ | 324 | $ | 411 | $ | 400 | |||||||
Property and equipment additions | (21 | ) | (19 | ) | (61 | ) | (60 | ) | |||||||
Net change in securitization | (25 | ) | (53 | ) | 9 | 67 | |||||||||
Effect of exchange rates on cash and cash equivalents | — | (1 | ) | (1 | ) | (2 | ) | ||||||||
Free Cash Flow | $ | 262 | $ | 251 | $ | 358 | $ | 405 | |||||||
Net cash used in investing activities | $ | (105 | ) | $ | (50 | ) | $ | (163 | ) | $ | (171 | ) | |||
Net cash (used in) provided by financing activities | $ | (402 | ) | $ | (65 | ) | $ | (438 | ) | $ | 27 |
• | 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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