Guild pany(US:GHLD)2024-11-06 21:08Financial Performance - Total originations for Q3 2024 were $6.9 billion, up 6% sequentially and 59% year-over-year[2]. - Net revenue for Q3 2024 was $159.3 million, a decrease of 44% from the prior quarter[7]. - Net loss attributable to Guild in Q3 2024 was $66.9 million, compared to a net income of $37.6 million in the prior quarter[3]. - Adjusted net income for Q3 2024 was $31.7 million, up 3% from the previous quarter[7]. - The company reported a diluted loss per share of $(1.09) for the current period, compared to a diluted earnings per share of $0.60 in the previous period[34]. - The company’s total expenses for the three months ended September 30, 2024, were $252,090, an increase of 4.0% from $241,158 in the previous quarter[35]. - Adjusted EBITDA for the three months ended September 30, 2024, was $46,400, an increase from $41,600 in the previous quarter[43]. Asset and Equity Changes - Total assets increased to $4,644,441 thousand as of September 30, 2024, compared to $3,676,720 thousand on December 31, 2023, reflecting a growth of approximately 26.4%[31]. - Total stockholders' equity decreased to $1,157,896 thousand from $1,183,493 thousand, a decline of about 2.2%[32]. - Total stockholders' equity attributable to Guild as of September 30, 2024, was $1,157.4 million, down from $1,183.2 million as of December 31, 2023[46]. - The tangible common equity as of September 30, 2024, was $929.1 million, compared to $971.9 million as of December 31, 2023[46]. - The book value per share as of September 30, 2024, was $18.85, down from $19.36 as of December 31, 2023[46]. - The tangible net book value per share as of September 30, 2024, was $15.14, compared to $15.90 as of December 31, 2023[46]. Loan and Servicing Metrics - The servicing portfolio's unpaid principal balance was $91.5 billion as of September 30, 2024, up 3% from the prior quarter[3]. - The company achieved a gain on sale margin on originations of 333 basis points in Q3 2024, an increase of 2 basis points from the prior quarter[7]. - The company retained mortgage servicing rights for 67% of total loans sold in Q3 2024[10]. - Mortgage loans held for sale rose significantly to $1,763,121 thousand, up from $901,227 thousand, indicating an increase of about 95.5%[31]. - The fair value of mortgage servicing rights increased to $1,197,432 thousand from $1,161,357 thousand, reflecting a growth of approximately 3.1%[31]. - The refinance recapture rate increased to 41% for the three months ended September 30, 2024, compared to 22% in the previous quarter[38]. Cash and Stock Activity - The cash and cash equivalents position was $106.2 million as of September 30, 2024[14]. - The company’s cash and cash equivalents decreased to $106,151 thousand from $120,260 thousand, a decline of about 11.7%[31]. - The company repurchased 23,746 shares of Class A common stock at an average price of $14.29 per share during Q3 2024[13]. - The ending shares of Class A and Class B common stock outstanding as of September 30, 2024, were 61.4 million, slightly up from 61.1 million as of December 31, 2023[46]. Strategic Initiatives - The company is actively pursuing M&A opportunities to enhance market share and origination volume, although specific future revenue expectations were not disclosed[22]. - The company highlighted the importance of adapting to technological changes and maintaining referral relationships to mitigate competitive pressures[22].