Realogy Reports Financial Results For Second Quarter 2015
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Realogy Reports Financial Results For Second Quarter 2015

Residential Real Estate Leader Reports Revenue of $1.7 billion, a 9% Increase Year-over-Year; Q2 Homesale Transaction Volume Increases 10% Year-over-Year

MADISON, N.J., July 31, 2015 // PRNewswire // -- Realogy Holdings Corp. (NYSE: RLGY), a global leader in residential real estate franchising and prominent provider of real estate brokerage, relocation, and title and settlement services, today reported financial results for the second quarter ended June 30, 2015, including the following highlights:

  • Revenue of $1.7 billion, which represents a 9% increase compared to second quarter 2014, was driven by higher homesale transaction volume.
  • Net income for second quarter 2015 was $97 million, and basic earnings per share was $0.66, representing increases of 43% and 40%, respectively, compared to the prior year period.
  • Adjusted EBITDA was $282 million, compared to $269 million in the second quarter of 2014, a year-over-year increase of $13 million.
  • Realogy generated $273 million of free cash flow for the quarter, or $1.86 per share, compared to $198 million, or $1.36 per share, in the prior year period.
  • Realogy's franchise (RFG) and company-owned (NRT) business segments achieved a 10% increase in combined homesale transaction volume (transaction sides multiplied by average sale price) compared to second quarter 2014. RFG reported a homesale transaction increase of 5% and an average homesale price increase of 5%. NRT reported a homesale transaction increase of 13% and an average homesale price decrease of 4%. The increase in NRT's transaction sides was bolstered by the strategic addition of the Coldwell Banker United and ZipRealty brokerage operations, which have a lower average sales price.

"Our second quarter results continued the momentum from the first quarter," said Richard A. Smith, Realogy's chairman, chief executive officer and president. "The fundamentals of the housing market continue to gain strength, and our results reflect these improving conditions along with the impact of our strategic growth initiatives."

Smith continued: "We delivered strong free cash flow of $273 million in the second quarter, which we believe demonstrates the strength of our business model. We expect that we will end the year with a cash balance of approximately $650 million, more than double the balance at December 31, 2014, which positions us to further delever our balance sheet."

"Looking ahead to the third quarter of 2015, we expect to see homesale transaction volume gains in the range of 7% to 10% year-over-year on a company-wide basis," said Anthony E. Hull, executive vice president, chief financial officer and treasurer. "Based on our closed and open sales activity in June and July, we expect third quarter homesale transaction sides to be up 5% to 7% year-over-year and average homesale price to increase 2% to 3% for RFG and NRT combined."

Hull continued: "Since our primary earnings quarters are the second and third quarters of each year, and we now have visibility into the third quarter, we are providing full year Adjusted EBITDA guidance at this time. We expect Realogy's Adjusted EBITDA will be between $810 to $840 million for the full year 2015 and expect that our Adjusted EBITDA margins will be between 14.1% to 14.3%."

The Company ended the quarter with a cash and cash equivalents balance of $359 million and no outstanding borrowings under its revolving credit facility. Total long-term corporate debt, including the short term portion, net of cash and cash equivalents, totaled $3,543 million at June 30, 2015.

A consolidated balance sheet is included as Table 2 of this press release.

Investor Conference Call

Today, July 31, at 8:30 a.m. (EDT), Realogy will hold a conference call via webcast to review its second quarter 2015 results. The call will be hosted by Richard A. Smith, chairman, chief executive officer and president, and Anthony E. Hull, executive vice president, chief financial officer and treasurer, and will conclude with an investor Q&A period with management.

Investors may access the conference call live via webcast at under "Investors" or by dialing (888) 895-3527 (toll free); international participants should dial (706) 679-2250. Please dial in at least 5 to 10 minutes prior to start time. A webcast replay also will be available from July 31 through August 14, 2015.

About Realogy Holdings Corp.

Realogy Holdings Corp. (NYSE: RLGY) is a global leader in residential real estate franchising and brokerage with many of the best-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby's International Realty® and ZipRealty®. Collectively, Realogy's franchise system members operate approximately 13,500 offices with more than 254,800 independent sales associates conducting business in 111 countries and territories around the world. NRT LLC, Realogy's company-owned real estate brokerage, is the largest residential brokerage company in the United States, operates under several of Realogy's brands and also provides related residential real estate services. The Company also owns Cartus, a prominent worldwide provider of relocation services to corporate and affinity clients, and Title Resource Group, a leading provider of title, settlement and underwriting services. Realogy is headquartered in Madison, New Jersey.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Realogy Holdings Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates" and "plans" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: adverse developments or the absence of sustained improvement in general business, economic and political conditions; adverse developments or the absence of improvement in the residential real estate markets including but not limited to the lack of sustained improvement in the number of home sales and/or stagnant or declining home prices, low levels of consumer confidence, the impact of slow economic growth or future recessions and related high levels of unemployment in the U.S. and abroad, continued low inventory levels, renewed high levels of foreclosures, seasonal fluctuations in the residential real estate brokerage business, and increasing mortgage rates and down payment requirements and/or constraints on the availability of mortgage financing; the Company's geographic and high-end market concentration, particularly with respect to its Company-owned brokerage operations; the Company's failure to enter into or renew franchise agreements or maintain its brands; risks relating to our outstanding debt and interest obligations; variable rate indebtedness which subjects the Company to interest rate risk; the Company's inability to access capital or refinance or repay existing indebtedness; the Company's inability to realize the benefits from acquisitions; any outbreak or escalation of hostilities on a national, regional or international basis; government regulation as well as legislative, tax or regulatory changes that would adversely impact the residential real estate market, including but not limited to potential reform of the financing of the U.S. housing and mortgage markets and/or the Internal Revenue Code and changes in state or federal employment laws or regulations that would require reclassification of independent contractor sales associates to employee status, and wage and hour regulations; the Company's inability to sustain improvements in its operating efficiency; and the final resolution or outcomes with respect to Cendant's (our former parent) remaining contingent liabilities.

Consideration should be given to the areas of risk described above, as well as those risks set forth under the headings "Forward-Looking Statements" and "Risk Factors" in our filings with the Securities and Exchange Commission, including our Quarterly Reports filed on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015 and our Annual Report on Form 10-K for the year ended December 31, 2014, and our other filings made from time to time, in connection with considering any forward-looking statements that may be made by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined under SEC rules. See Table 8 for definitions of these non-GAAP financial measures and Tables 5a, 5b, 6 and 7 for reconciliations of the historical non-GAAP financial measures to their most comparable GAAP terms.

Because of the forward-looking nature of the Company's forecasted non-GAAP financial measures, specific quantifications of the amounts that would be required to reconcile forecasted Adjusted EBITDA to forecasted EBITDA and forecasted net income are not readily determinable. The Company believes that there is a degree of volatility with respect to certain of the Company's GAAP measures which preclude the Company from providing accurate forecasted GAAP to non-GAAP reconciliations. Based on the above, the Company believes that providing estimates of the amounts that would be required to reconcile the range of the non-GAAP measures to forecasted GAAP measures would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above.

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SOURCE Realogy Holdings Corp.


Alicia Swift
Investor Relations
(973) 407-4669

Jennifer Pepper
Investor Relations
(973) 407-7487

Mark Panus
Media Relations
(973) 407-7215




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