Anywhere(US:HOUS)2023-11-02 11:00Financial Performance - Gross commission income for Q3 2023 was $1,293 million, a decrease of 12% from $1,469 million in Q3 2022[36] - Net revenues for the nine months ended September 30, 2023, were $4,386 million, down 21% from $5,585 million in the same period of 2022[36] - Total revenues for Q3 2023 were $1.584 billion, a decrease of 12.4% from $1.808 billion in Q3 2022[149] - Net income attributable to Anywhere and Anywhere Group for Q3 2023 was $129 million, compared to $55 million in Q3 2022, representing an increase of 134%[36] - Basic earnings per share for Q3 2023 was $1.17, up from $0.49 in Q3 2022[36] - Net income for the nine months ended September 30, 2023, was $10 million, a decrease of 94% compared to $169 million in the same period of 2022[41] - Operating EBITDA for the total company decreased to $107 million in Q3 2023, down from $166 million in Q3 2022, a decline of 36%[206] - Total expenses for Q3 2023 were $1,414 million, a decrease of 19% compared to $1,742 million in Q3 2022[36] - Total expenses for the nine months ended September 30, 2023 decreased by $972 million or 18% compared to the same period in 2022[221] Assets and Liabilities - Total assets as of September 30, 2023, were $6,059 million, a decrease from $6,383 million as of December 31, 2022[40] - Total liabilities decreased to $4,274 million as of September 30, 2023, from $4,616 million at the end of 2022[40] - Cash and cash equivalents as of September 30, 2023, were $151 million, down from $214 million at the end of 2022[40] - The company’s accumulated deficit as of September 30, 2023, was $(2,984) million, slightly improved from $(2,994) million at the end of 2022[40] - Total short-term and long-term debt as of September 30, 2023, was $2,560 million, a decrease from $2,849 million as of December 31, 2022[74] Cash Flow and Investments - Net cash provided by operating activities was $125 million for the nine months ended September 30, 2023, compared to a cash outflow of $71 million in 2022[41] - The company reported a net cash used in investing activities of $39 million for the nine months ended September 30, 2023, compared to $25 million in 2022[41] - The total cash, cash equivalents, and restricted cash at the end of the period was $158 million, down from $277 million at the end of the same period in 2022[41] - The company raised $640 million from the issuance of Senior Secured Second Lien Notes during the financing activities[41] Restructuring and Cost Management - The company reported a restructuring cost of $9 million in Q3 2023, compared to $16 million in Q3 2022[36] - Restructuring charges amounted to $9 million for the three months and $40 million for the nine months ended September 30, 2023[86] - The company expects total costs related to the Operational Efficiencies Plan to be $59 million, with $56 million incurred to date[90] - The company realized additional cost savings of approximately $60 million in Q3 2023 and over $160 million year-to-date, expecting to deliver approximately $200 million for the full year 2023[168] Legal and Regulatory Matters - The company is involved in ongoing antitrust litigation that could result in significant liabilities, with potential damages being difficult to predict[99] - The proposed nationwide settlement includes monetary relief of $83.5 million and injunctive relief, resolving all claims against the company in the Burnett and Moehrl cases[110] - The company is required to deposit $10 million within 14 business days after preliminary court approval, $20 million after final approval of fees and costs, and the remaining balance within 21 business days after final court approval[112] - The company disputes allegations in the Nosalek litigation, which is expected to be resolved under the Anywhere Settlement[124] Market and Economic Conditions - Average mortgage rates for a 30-year fixed-rate mortgage increased from 6.11% in September 2022 to 7.20% in September 2023, reaching 7.79% by October 26, 2023[170] - Industry forecasts predict existing homesale transactions to decrease by 18% to approximately 4.1 million for the full year 2023, the lowest since the Great Recession[166] - The Consumer Price Index (CPI) rose by 3.7% for the 12 months ended September 30, 2023, indicating ongoing inflationary pressures[173] Segment Performance - The Franchise Group generated $271 million in revenue for Q3 2023, down from $306 million in Q3 2022[149] - Homesale transaction volume decreased by 31% year-over-year in Q1 2023, improved to down 23% in Q2 2023, and down 13% in Q3 2023[165] - Closed homesale sides for the Franchise Group decreased by 18% year-over-year to 200,619, while the Owned Brokerage Group saw a 17% decline to 71,794[200] - Average homesale price increased by 5% for both the Franchise Group and Owned Brokerage Group, reaching $470,818 and $712,232 respectively[200]