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, 2017. |
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, 2017. |
• | Revenue was $5.81 billion, an increase of 2% compared with the full year 2015, driven by organic and acquisition revenue increases at Title Resource Group (TRG). |
• | The Company's combined homesale transaction volume increased 4% in the year, consisting of a 6% volume gain at the Realogy Franchise Group (RFG) and flat volume at the Company-owned brokerage segment (NRT). |
• | Net income was $213 million, a 16% increase compared with $184 million in 2015. Basic earnings per share (EPS) was $1.47, a 17% increase compared with $1.26 in 2015. |
• | Adjusted net income was $239 million, an 8% increase compared with $222 million in 2015. Adjusted basic EPS was $1.65, a 9% increase compared with $1.52 in 2015. (See Table 1a).1 |
• | Operating EBITDA was $770 million, compared with $769 million in 2015. (See Table 5).2 |
• | The Company returned $225 million of capital to shareholders through repurchases and dividends in 2016. |
• | NRT is executing on an aggressive campaign to increase the Company's recruitment of productive independent sales agents and agent teams, and continues to enhance its existing agent retention and productivity programs. |
• | Realogy formalized plans for an integrated learning institute aimed at enhancing agent and broker productivity by offering customized learning opportunities to serve new and experienced sales agents as well as brokerage managers across both NRT and RFG. |
• | The Realogy Franchise Group continues to deploy its proprietary Zap technology platform. Initial data indicates that sales agents actively using Zap are closing more transactions than those who are not. |
• | On February 15, 2017, Realogy agreed to form a new mortgage origination joint venture (JV) with Guaranteed Rate, one of the largest independent retail mortgage companies in the United States. The new JV, which will operate as Guaranteed Rate Affinity, has agreed to acquire certain assets of the mortgage |
• | 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 realized approximately $33 million in actual savings in 2016 and is well positioned to reach its annualized run-rate savings target of approximately $70 million. The total cost to implement the program is expected to be $65 million, of which $49 million has been incurred through December 31, 2016. |
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, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues | |||||||||||
Gross commission income | $ | 4,277 | $ | 4,288 | $ | 4,028 | |||||
Service revenue | 955 | 882 | 802 | ||||||||
Franchise fees | 372 | 353 | 333 | ||||||||
Other | 206 | 183 | 165 | ||||||||
Net revenues | 5,810 | 5,706 | 5,328 | ||||||||
Expenses | |||||||||||
Commission and other agent-related costs | 2,945 | 2,931 | 2,755 | ||||||||
Operating | 1,542 | 1,458 | 1,350 | ||||||||
Marketing | 241 | 226 | 214 | ||||||||
General and administrative | 321 | 337 | 293 | ||||||||
Former parent legacy benefit, net | (2 | ) | (15 | ) | (10 | ) | |||||
Restructuring costs, net | 39 | 10 | (1 | ) | |||||||
Depreciation and amortization | 202 | 201 | 190 | ||||||||
Interest expense, net | 174 | 231 | 267 | ||||||||
Loss on the early extinguishment of debt | — | 48 | 47 | ||||||||
Other income, net | (1 | ) | (3 | ) | (2 | ) | |||||
Total expenses | 5,461 | 5,424 | 5,103 | ||||||||
Income before income taxes, equity in earnings and noncontrolling interests | 349 | 282 | 225 | ||||||||
Income tax expense | 144 | 110 | 87 | ||||||||
Equity in earnings of unconsolidated entities | (12 | ) | (16 | ) | (9 | ) | |||||
Net income | 217 | 188 | 147 | ||||||||
Less: Net income attributable to noncontrolling interests | (4 | ) | (4 | ) | (4 | ) | |||||
Net income attributable to Realogy Holdings | $ | 213 | $ | 184 | $ | 143 | |||||
Earnings per share attributable to Realogy Holdings: | |||||||||||
Basic earnings per share | $ | 1.47 | $ | 1.26 | $ | 0.98 | |||||
Diluted earnings per share | $ | 1.46 | $ | 1.24 | $ | 0.97 | |||||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||||||
Basic | 144.5 | 146.5 | 146.0 | ||||||||
Diluted | 145.8 | 148.1 | 147.2 | ||||||||
Cash dividends declared per share (beginning in August 2016) | $ | 0.18 | $ | — | $ | — |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income attributable to Realogy Holdings | $ | 213 | $ | 184 | $ | 143 | |||||
Addback: | |||||||||||
Mark-to-market interest rate swap adjustments | 6 | 20 | 32 | ||||||||
Former parent legacy benefit, net | (2 | ) | (15 | ) | (10 | ) | |||||
Restructuring costs, net | 39 | 10 | (1 | ) | |||||||
Loss on the early extinguishment of debt | — | 48 | 47 | ||||||||
Reversal of the income tax valuation allowance | — | — | (11 | ) | |||||||
Adjustments for tax effect (a) | (17 | ) | (25 | ) | (28 | ) | |||||
Adjusted net income attributable to Realogy Holdings | $ | 239 | $ | 222 | $ | 172 | |||||
Earnings per share | |||||||||||
Basic earnings per share: | $ | 1.47 | $ | 1.26 | $ | 0.98 | |||||
Diluted earnings per share: | $ | 1.46 | $ | 1.24 | $ | 0.97 | |||||
Adjusted earnings per share | |||||||||||
Adjusted basic earnings per share: | $ | 1.65 | $ | 1.52 | $ | 1.18 | |||||
Adjusted diluted earnings per share: | $ | 1.64 | $ | 1.50 | $ | 1.17 | |||||
Weighted average common and common equivalent shares outstanding: | |||||||||||
Basic: | 144.5 | 146.5 | 146.0 | ||||||||
Diluted: | 145.8 | 148.1 | 147.2 |
(a) | Reflects tax effect of adjustments at an assumed tax rate of 40% for the year ended December 31, 2016 and 2015, and 41% for the year ended December 31, 2014. |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 274 | $ | 415 | |||
Trade receivables (net of allowance for doubtful accounts of $13 and $20) | 152 | 141 | |||||
Relocation receivables | 244 | 279 | |||||
Other current assets | 148 | 126 | |||||
Total current assets | 818 | 961 | |||||
Property and equipment, net | 267 | 254 | |||||
Goodwill | 3,690 | 3,618 | |||||
Trademarks | 748 | 745 | |||||
Franchise agreements, net | 1,361 | 1,428 | |||||
Other intangibles, net | 313 | 316 | |||||
Other non-current assets | 224 | 209 | |||||
Total assets | $ | 7,421 | $ | 7,531 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 140 | $ | 139 | |||
Securitization obligations | 205 | 247 | |||||
Due to former parent | 28 | 31 | |||||
Current portion of long-term debt | 242 | 740 | |||||
Accrued expenses and other current liabilities | 435 | 448 | |||||
Total current liabilities | 1,050 | 1,605 | |||||
Long-term debt | 3,265 | 2,962 | |||||
Deferred income taxes | 389 | 267 | |||||
Other non-current liabilities | 248 | 275 | |||||
Total liabilities | 4,952 | 5,109 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at December 31, 2016 and December 31, 2015 | — | — | |||||
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized, 140,227,692 shares outstanding at December 31, 2016 and 146,746,537 shares outstanding at December 31, 2015 | 1 | 1 | |||||
Additional paid-in capital | 5,565 | 5,733 | |||||
Accumulated deficit | (3,062 | ) | (3,280 | ) | |||
Accumulated other comprehensive loss | (40 | ) | (36 | ) | |||
Total stockholders' equity | 2,464 | 2,418 | |||||
Noncontrolling interests | 5 | 4 | |||||
Total equity | 2,469 | 2,422 | |||||
Total liabilities and equity | $ | 7,421 | $ | 7,531 |
Quarter Ended | Year Ended | |||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | ||||||||||||||||
RFG (a) | ||||||||||||||||||||
Closed homesale sides | 218,330 | 319,748 | 323,176 | 274,090 | 1,135,344 | |||||||||||||||
Average homesale price | $ | 259,044 | $ | 273,900 | $ | 275,325 | $ | 277,037 | $ | 272,206 | ||||||||||
Average homesale broker commission rate | 2.51 | % | 2.51 | % | 2.50 | % | 2.49 | % | 2.50 | % | ||||||||||
Net effective royalty rate | 4.51 | % | 4.49 | % | 4.50 | % | 4.34 | % | 4.46 | % | ||||||||||
Royalty per side | $ | 309 | $ | 319 | $ | 322 | $ | 313 | $ | 317 | ||||||||||
NRT | ||||||||||||||||||||
Closed homesale sides | 64,244 | 98,314 | 95,605 | 77,536 | 335,699 | |||||||||||||||
Average homesale price | $ | 493,125 | $ | 485,688 | $ | 486,343 | $ | 495,242 | $ | 489,504 | ||||||||||
Average homesale broker commission rate | 2.46 | % | 2.49 | % | 2.46 | % | 2.44 | % | 2.46 | % | ||||||||||
Gross commission income per side | $ | 12,878 | $ | 12,732 | $ | 12,681 | $ | 12,760 | $ | 12,752 | ||||||||||
Cartus | ||||||||||||||||||||
Initiations | 37,174 | 51,560 | 40,556 | 33,773 | 163,063 | |||||||||||||||
Referrals | 16,893 | 26,138 | 25,495 | 18,751 | 87,277 | |||||||||||||||
TRG | ||||||||||||||||||||
Purchase title and closing units (b) | 29,236 | 43,914 | 42,932 | 36,915 | 152,997 | |||||||||||||||
Refinance title and closing units (c) | 9,703 | 11,227 | 15,170 | 14,819 | 50,919 | |||||||||||||||
Average fee per closing unit | $ | 1,848 | $ | 1,919 | $ | 1,824 | $ | 1,907 | $ | 1,875 |
(a) | Includes all franchisees except for NRT. |
(b) | The amounts presented for the year ended December 31, 2016 include 18,930 purchase units as a result of the acquisitions. |
(c) | The amounts presented for the year ended December 31, 2016 include 4,469 refinance units as a result of the acquisitions. |
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 | Year Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
Net revenues (a) | |||||||||||||||||||
Real Estate Franchise Services | $ | 157 | $ | 221 | $ | 215 | $ | 188 | $ | 781 | |||||||||
Company Owned Real Estate Brokerage Services | 841 | 1,268 | 1,231 | 1,004 | 4,344 | ||||||||||||||
Relocation Services | 83 | 109 | 116 | 97 | 405 | ||||||||||||||
Title and Settlement Services | 111 | 149 | 164 | 149 | 573 | ||||||||||||||
Corporate and Other | (58 | ) | (85 | ) | (82 | ) | (68 | ) | (293 | ) | |||||||||
Total Company | $ | 1,134 | $ | 1,662 | $ | 1,644 | $ | 1,370 | $ | 5,810 | |||||||||
EBITDA (b) | |||||||||||||||||||
Real Estate Franchise Services | $ | 92 | $ | 149 | $ | 153 | $ | 122 | $ | 516 | |||||||||
Company Owned Real Estate Brokerage Services | (21 | ) | 78 | 74 | 6 | 137 | |||||||||||||
Relocation Services | 5 | 29 | 40 | 22 | 96 | ||||||||||||||
Title and Settlement Services | — | 26 | 23 | 13 | 62 | ||||||||||||||
Corporate and Other | (21 | ) | (19 | ) | (20 | ) | (18 | ) | (78 | ) | |||||||||
Total Company | $ | 55 | $ | 263 | $ | 270 | $ | 145 | $ | 733 | |||||||||
Less: | |||||||||||||||||||
Depreciation and amortization | 48 | 48 | 53 | 53 | 202 | ||||||||||||||
Interest expense, net | 73 | 59 | 37 | 5 | 174 | ||||||||||||||
Income tax expense (benefit) | (24 | ) | 64 | 74 | 30 | 144 | |||||||||||||
Net income (loss) attributable to Realogy Holdings | $ | (42 | ) | $ | 92 | $ | 106 | $ | 57 | $ | 213 |
(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, $82 million and $68 million for the three months ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | Includes a net cost of $1 million and a net benefit of $3 million of former parent legacy items for the three months ended March 31, 2016 and December 31, 2016, respectively. |
Three Months Ended | |||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | ||||||||||||
Real Estate Franchise Services | $ | — | $ | 3 | $ | 1 | $ | — | |||||||
Company Owned Real Estate Brokerage Services | 2 | 7 | 6 | 7 | |||||||||||
Relocation Services | 2 | 1 | 1 | — | |||||||||||
Title and Settlement Services | — | — | 1 | — | |||||||||||
Corporate and Other | 6 | 1 | — | (1 | ) | ||||||||||
Total Company | $ | 10 | $ | 12 | $ | 9 | $ | 6 |
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, 2016 | December 31, 2015 | ||||||
Net income attributable to Realogy Holdings | $ | 213 | $ | 184 | |||
Income tax expense | 144 | 110 | |||||
Income before income taxes | 357 | 294 | |||||
Interest expense, net | 174 | 231 | |||||
Depreciation and amortization | 202 | 201 | |||||
EBITDA | 733 | 726 | |||||
EBITDA adjustments: | |||||||
Restructuring costs | 39 | 10 | |||||
Former parent legacy costs (benefit), net | (2 | ) | (15 | ) | |||
Loss on the early extinguishment of debt | — | 48 | |||||
Operating EBITDA | $ | 770 | $ | 769 |
Revenues | Operating EBITDA | Operating EBITDA Margin | ||||||||||||||||||||||||||||||||||||
2016 | 2015 | Change | % Change | 2016 | 2015 | Change | % Change | 2016 | 2015 | Change | ||||||||||||||||||||||||||||
RFG | $ | 781 | $ | 755 | $ | 26 | 3 | % | $ | 520 | $ | 495 | $ | 25 | 5 | % | 67 | % | 66 | % | 1 | |||||||||||||||||
NRT | 4,344 | 4,344 | — | — | 159 | 204 | (45 | ) | (22 | ) | 4 | 5 | (1 | ) | ||||||||||||||||||||||||
Cartus | 405 | 415 | (10 | ) | (2 | ) | 100 | 106 | (6 | ) | (6 | ) | 25 | 26 | (1 | ) | ||||||||||||||||||||||
TRG | 573 | 487 | 86 | 18 | 63 | 48 | 15 | 31 | 11 | 10 | 1 | |||||||||||||||||||||||||||
Corporate and Other | (293 | ) | (295 | ) | 2 | * | (72 | ) | (84 | ) | 12 | * | ||||||||||||||||||||||||||
Total Company | $ | 5,810 | $ | 5,706 | $ | 104 | 2 | % | $ | 770 | $ | 769 | $ | 1 | — | % | 13 | % | 13 | % | — | |||||||||||||||||
Less: Restructuring costs | 39 | 10 | ||||||||||||||||||||||||||||||||||||
Former parent legacy benefit, net | (2 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||
Loss on the early extinguishment of debt | — | 48 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 202 | 201 | ||||||||||||||||||||||||||||||||||||
Interest expense, net | 174 | 231 | ||||||||||||||||||||||||||||||||||||
Income tax expense | 144 | 110 | ||||||||||||||||||||||||||||||||||||
Net income attributable to Realogy Holdings | $ | 213 | $ | 184 |
Three Months Ended | |||||||
December 31, 2016 | December 31, 2015 | ||||||
Net income attributable to Realogy Holdings | $ | 57 | $ | 9 | |||
Income tax expense | 30 | (6 | ) | ||||
Income before income taxes | 87 | 3 | |||||
Interest expense, net | 5 | 43 | |||||
Depreciation and amortization | 53 | 48 | |||||
EBITDA | 145 | 94 | |||||
EBITDA adjustments: | |||||||
Restructuring costs | 9 | 10 | |||||
Former parent legacy benefit, net | (3 | ) | — | ||||
Loss on the early extinguishment of debt | — | 48 | |||||
Operating EBITDA | $ | 151 | $ | 152 |
Revenues | Operating EBITDA | Operating EBITDA Margin | ||||||||||||||||||||||||||||||||||||
2016 | 2015 | Change | % Change | 2016 | 2015 | Change | % Change | 2016 | 2015 | Change | ||||||||||||||||||||||||||||
RFG | $ | 188 | $ | 177 | $ | 11 | 6 | % | $ | 122 | $ | 111 | $ | 11 | 10 | % | 65 | % | 63 | % | 2 | |||||||||||||||||
NRT | 1,004 | 992 | 12 | 1 | 13 | 27 | (14 | ) | (52 | ) | 1 | 3 | (2 | ) | ||||||||||||||||||||||||
Cartus | 97 | 98 | (1 | ) | (1 | ) | 22 | 23 | (1 | ) | (4 | ) | 23 | 23 | — | |||||||||||||||||||||||
TRG | 149 | 125 | 24 | 19 | 13 | 11 | 2 | 18 | 9 | 9 | — | |||||||||||||||||||||||||||
Corporate and Other | (68 | ) | (67 | ) | (1 | ) | * | (19 | ) | (20 | ) | 1 | * | |||||||||||||||||||||||||
Total Company | $ | 1,370 | $ | 1,325 | $ | 45 | 3 | % | $ | 151 | $ | 152 | $ | (1 | ) | (1 | )% | 11 | % | 11 | % | — | ||||||||||||||||
Less: Restructuring costs | 9 | 10 | ||||||||||||||||||||||||||||||||||||
Former parent legacy benefit, net | (3 | ) | — | |||||||||||||||||||||||||||||||||||
Loss on the early extinguishment of debt | — | 48 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 53 | 48 | ||||||||||||||||||||||||||||||||||||
Interest expense, net | 5 | 43 | ||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 30 | (6 | ) | |||||||||||||||||||||||||||||||||||
Net income attributable to Realogy Holdings | $ | 57 | $ | 9 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Net income attributable to Realogy Holdings | $ | 213 | $ | 184 | |||
Income tax expense, net of payments | 120 | 93 | |||||
Interest expense, net | 174 | 231 | |||||
Cash interest payments | (181 | ) | (244 | ) | |||
Depreciation and amortization | 202 | 201 | |||||
Capital expenditures | (87 | ) | (84 | ) | |||
Restructuring costs and former parent legacy items, net of payments | 5 | (14 | ) | ||||
Loss on the early extinguishment of debt | — | 48 | |||||
Working capital adjustments | 20 | 32 | |||||
Relocation receivables (assets), net of securitization obligations | (9 | ) | (4 | ) | |||
Free Cash Flow | $ | 457 | $ | 443 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Net cash provided by operating activities | $ | 587 | $ | 550 | |||
Property and equipment additions | (87 | ) | (84 | ) | |||
Net change in securitization | (40 | ) | (21 | ) | |||
Effect of exchange rates on cash and cash equivalents | (3 | ) | (2 | ) | |||
Free Cash Flow | $ | 457 | $ | 443 | |||
Net cash used in investing activities | $ | (190 | ) | $ | (209 | ) | |
Net cash used in financing activities | $ | (535 | ) | $ | (237 | ) |
• | 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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