Guild pany(US:GHLD)2024-03-11 16:00Financial Performance - Total in-house originations for 2023 were $15.0 billion, down 22% from $19.1 billion in the prior year, with fourth quarter originations at $3.5 billion, a 17% decrease from the previous quarter[4][6] - Net revenue for 2023 was $655.2 million, a 44% decline from $1.2 billion in the prior year, with fourth quarter net revenue at $57.2 million, down 78% from the previous quarter[4][6] - The company reported a net loss of $39.1 million for 2023, compared to a net income of $328.6 million in the prior year, with a fourth quarter net loss of $93.1 million[4][6] - Adjusted net income for 2023 was $48.0 million, down 31% from $70.0 million in the prior year, with fourth quarter adjusted net income at $12.5 million[4][6] - Adjusted EBITDA for the year ended December 31, 2023 was $74.8 million, down from $103.5 million in 2022, a decrease of 27.8%[44] Asset and Liability Management - Total assets increased to $3,676,720,000 as of December 31, 2023, compared to $3,239,591,000 in 2022, representing a growth of approximately 13.5%[33] - Total liabilities rose to $2,493,227,000 as of December 31, 2023, from $1,990,304,000 in 2022, marking an increase of approximately 25.3%[33] - The company’s total stockholders' equity decreased to $1,183,493,000 as of December 31, 2023, from $1,249,287,000 in 2022, a decline of approximately 5.3%[33] Revenue Sources - Loan origination fees and gain on sale of loans, net, decreased to $501,303,000 for the year ended December 31, 2023, down from $703,674,000 in 2022, a decline of 28.7%[35] - The company achieved a gain on sale margin on originations of 330 basis points in the fourth quarter, down from 377 basis points in the previous quarter[6][7] Operational Metrics - The servicing portfolio's unpaid principal balance increased by 8% to $85.0 billion as of December 31, 2023, compared to $78.9 billion a year earlier[4][11] - The company retained mortgage servicing rights for 77% of total loans sold in the fourth quarter of 2023[9] - The acquisition of Academy Mortgage positioned the company as the 8th largest non-bank retail mortgage lender, increasing origination volume by 25% based on third quarter results[3] Shareholder Actions - The share repurchase program was extended to May 5, 2025, with $11.2 million remaining available for repurchase as of December 31, 2023[12] Cash Management - The company's cash and cash equivalents were $120.3 million as of December 31, 2023, with an unutilized loan funding capacity of $1.0 billion[13] - The company’s cash and cash equivalents decreased to $120,260,000 as of December 31, 2023, down from $137,891,000 in 2022, a decline of about 12.8%[33] Employee Compensation - Salaries, incentive compensation, and benefits for the year totaled $529,861,000, a decrease from $619,185,000 in 2022, reflecting a reduction of approximately 14.4%[35] Market Performance - The company reported a net loss per share of $1.52 for the three months ended December 31, 2023, compared to earnings per share of $0.89 in the previous quarter[35] - Book value per share decreased to $19.36 as of December 31, 2023, compared to $20.51 in 2022[46] - Tangible net book value per share was $15.90 as of December 31, 2023, down from $17.06 in 2022[46] Origination Trends - Total in-house origination decreased to $3,535,301 in Q4 2023 from $4,263,841 in Q3 2023, representing a decline of 17.1%[38] - Retail forward in-house origination also fell to $3,390,870 in Q4 2023 from $4,087,820 in Q3 2023, a decrease of 17.1%[38] - The purchase origination percentage remained stable at 93% for Q4 2023, compared to 94% in Q3 2023[38] - The refinance recapture rate decreased to 19% in Q4 2023 from 22% in Q3 2023[38] Valuation Adjustments - The valuation adjustment of mortgage servicing rights resulted in a loss of $139,560,000 for the year, compared to a gain of $217,551,000 in 2022[35]