Anywhere(US:HOUS)2025-05-07 20:18Financial Performance - Gross commission income for Q1 2025 was $976 million, up from $907 million in Q1 2024, representing an increase of 7.6%[30] - Net revenues for Q1 2025 totaled $1,204 million, compared to $1,126 million in Q1 2024, reflecting a year-over-year growth of 6.9%[30] - The net loss for Q1 2025 was $78 million, an improvement from a net loss of $101 million in Q1 2024, indicating a reduction of 22.8%[30] - Basic loss per share attributable to Anywhere shareholders decreased to $0.70 in Q1 2025 from $0.91 in Q1 2024, a decline of 23.1%[30] - The company reported total expenses of $1,305 million in Q1 2025, compared to $1,254 million in Q1 2024, marking an increase of 4.1%[30] - The company had a net cash used in operating activities of $105 million for Q1 2025, compared to $122 million in Q1 2024, showing a decrease of 13.9%[35] - Total consolidated net revenues for the three months ended March 31, 2025, were $1.204 billion, with segment net revenues of $1.272 billion before intersegment eliminations[119] - The net loss attributable to Anywhere and Anywhere Group improved by $23 million, decreasing to $78 million in Q1 2025 from $101 million in Q1 2024[161] - Operating EBITDA for the total company was $(1) million in Q1 2025, compared to $(13) million in Q1 2024, reflecting a significant improvement[167] Assets and Liabilities - Total current assets as of March 31, 2025, were $589 million, slightly up from $581 million as of December 31, 2024[34] - Total liabilities increased to $4,092 million as of March 31, 2025, compared to $4,066 million at the end of 2024[34] - Cash and cash equivalents at the end of Q1 2025 were $110 million, down from $118 million at the end of 2024[34] - The company’s total assets decreased to $5,588 million as of March 31, 2025, from $5,636 million as of December 31, 2024[34] - The Company reported total short-term and long-term debt of $2,643 million as of March 31, 2025, an increase from $2,521 million at the end of 2024[71] - Total assets as of March 31, 2025, were $5,588 million, with capital expenditures of $20 million[126] - Total liabilities increased by $26 million to $4,092 million, mainly due to a $122 million net increase in corporate debt from additional borrowings under the Revolving Credit Facility[181] Revenue Streams - Anywhere Real Estate reported net revenues of $1,204 million for the three months ended March 31, 2025, compared to $1,126 million for the same period in 2024, reflecting a year-over-year increase of approximately 6.9%[51] - The gross commission income for the Owned Brokerage Group was $976 million for the three months ended March 31, 2025, compared to $907 million for the same period in 2024, representing an increase of about 7.6%[51] - Anywhere Real Estate's Franchise Group generated service revenue of $125 million for the three months ended March 31, 2025, compared to $119 million for the same period in 2024[51] - The Franchise Group experienced a 4% increase in volume, while the Owned Brokerage Group saw a 10% increase in volume compared to the same period in the prior year[132] - The average homesale price increased by 10% for the Franchise Group and 13% for the Owned Brokerage Group in the first quarter of 2025[134] Cost Management - Total expenses increased by $51 million or 4% in Q1 2025, primarily due to a $59 million rise in commission and other sales agent-related costs[162] - Cost savings realized during the first quarter of 2025 amounted to $14 million, with approximately half related to specific restructuring activities[138] - Restructuring charges amounted to $12 million for the three months ended March 31, 2025, compared to $11 million for the same period in 2024[75] - Restructuring costs for the Owned Brokerage Group amounted to $7 million in Q1 2025, compared to $6 million in Q1 2024[166] Legal and Regulatory Matters - The Company is involved in various legal proceedings, including antitrust litigation, which may have significant implications for its financial condition[86] - The Anywhere Settlement includes monetary relief of $83.5 million, of which $30 million has been paid, with the remaining $53.5 million due within 21 business days after appellate rights are exhausted[93] - The Anywhere Settlement requires practice changes for Company-owned brokerage operations for a period of five years[94] - As of March 31, 2025, the company has an accrual of $41 million related to a legacy tax matter from a 1999 transaction, following a decision in favor of the California Franchise Tax Board[102] Strategic Initiatives - The Reimagine25 initiative, launched in 2025, aims to transform operations, focusing on branch operating model, product and technology infrastructure, and finance processes[80] - Total expected costs related to the Reimagine25 Plan amount to $30 million, with $10 million incurred to date and $20 million remaining[82] - The Company incurred $2 million of facility-related costs for lease asset impairments in connection with the Reimagine25 Plan during the three months ended March 31, 2025[81] Debt and Financing - As of March 31, 2025, the Company had $1,100 million of borrowing capacity under its Revolving Credit Facility, with $610 million drawn down[72] - The average weighted interest rate for securitization obligations was 7.1% for the three months ended March 31, 2025, compared to 8.6% for the same period in 2024[79] - The company expects to meet cash flow needs over the next twelve months through operational cash flows and available credit facilities[185] - The senior secured leverage ratio must not exceed 4.75 to 1.00, as tested quarterly, impacting the company's ability to engage in favorable business activities[199] - The company has significant restrictions on incurring additional debt, paying dividends, or making acquisitions[201] Market Conditions - Existing homesale transactions in the U.S. decreased by 2% in the first quarter of 2025 compared to the same period in 2024[137] - The decline in closed homesale transactions has been offset by a 15% increase in average homesale prices from December 2021 to December 2024[131] - Closed homesale sides for the Franchise Group decreased by 5% to 137,089 in Q1 2025 from 144,775 in Q1 2024, while the average homesale price increased by 10% to $516,999[149] - The Owned Brokerage Group reported a 2% decline in closed homesale sides to 49,461, but the average homesale price rose by 13% to $799,750[149] Shareholder Matters - The company has a share repurchase program authorized for up to $300 million, with $203 million remaining available for repurchase as of March 31, 2025[108] - The company granted 2.2 million restricted stock units with a grant date fair value of $3.47 during the first quarter of 2025[110] - The company’s Board approved an increase of 6 million shares reserved under the 2018 Long-Term Incentive Plan, subject to stockholder approval[109]