Anywhere(US:HOUS)2023-05-03 20:23Financial Performance - Gross commission income for Q1 2023 was $903 million, down 27.6% from $1,247 million in Q1 2022[34] - Net revenues decreased to $1,131 million in Q1 2023, a decline of 30.8% compared to $1,635 million in Q1 2022[34] - The net loss attributable to Anywhere and Anywhere Group for Q1 2023 was $138 million, compared to a net income of $23 million in Q1 2022[34] - Basic and diluted loss per share for Q1 2023 was $(1.26), compared to earnings per share of $0.20 and $0.19 in Q1 2022, respectively[34] - Operating EBITDA for the total company was $(52) million in Q1 2023, compared to $69 million in Q1 2022, indicating a significant decrease in operational profitability[145] - Total revenues for the company decreased to $1.131 billion in Q1 2023 from $1.635 billion in Q1 2022, representing a decline of approximately 30.8%[143] - The Franchise Group generated revenues of $207 million in Q1 2023, down from $267 million in Q1 2022, a decrease of 22.5%[143] - The Owned Brokerage Group's revenues fell to $915 million in Q1 2023 from $1.264 billion in Q1 2022, a decline of 27.6%[143] - Total expenses for Q1 2023 were $1,313 million, down 17.4% from $1,590 million in Q1 2022[34] - Total expenses decreased by $277 million or 17% for Q1 2023 compared to Q1 2022, mainly due to a $265 million decrease in commission and other sales agent-related costs[191] Assets and Liabilities - Total assets as of March 31, 2023, were $6,195 million, a decrease from $6,383 million as of December 31, 2022[38] - Current liabilities increased to $1,328 million as of March 31, 2023, compared to $1,305 million as of December 31, 2022[38] - The accumulated deficit increased to $(3,132) million as of March 31, 2023, from $(2,994) million as of December 31, 2022[38] - Cash and cash equivalents decreased to $122 million as of March 31, 2023, down from $214 million as of December 31, 2022[38] - Total liabilities decreased by $51 million to $4.565 billion as of March 31, 2023[209] - Total short-term and long-term debt reached $2,878 million as of March 31, 2023, up from $2,849 million as of December 31, 2022, reflecting a 1.02% increase[75] Cash Flow and Expenses - Net cash used in operating activities was $113 million for Q1 2023, a decrease from $233 million in Q1 2022[39] - The company reported a net cash decrease of $92 million in cash, cash equivalents, and restricted cash, ending the period with $126 million[39] - The company’s cash paid for interest in Q1 2023 was $39 million, down from $58 million in Q1 2022[39] - The company realized approximately $50 million in cost savings in Q1 2023, with an expectation of an additional $150 million in savings for the remainder of the year[156] - The company expects to realize approximately $150 million in additional cost savings during the remainder of 2023, following $50 million in cost savings realized in Q1 2023[194] Restructuring and Operational Efficiencies - The company reported restructuring costs of $25 million in Q1 2023, compared to $4 million in Q1 2022[34] - The Company expects total costs related to the Operational Efficiencies Plan to be $47 million, with $43 million incurred to date[85] - The Company incurred restructuring charges totaling $25 million across its segments in Q1 2023, compared to $4 million in Q1 2022[145] Legal Matters and Litigation - The company is involved in multiple ongoing antitrust litigations, including the Burnett litigation, which is scheduled for jury trial in October 2023[92] - The company believes it has substantial defenses against the claims in these litigations and is vigorously defending its position[93] - The company may incur liabilities that could materially affect its financial condition due to ongoing legal matters[91] - The company disputes the allegations in the antitrust cases, asserting that the claims are based on complex and evolving legal issues[94] - The company is currently involved in litigation regarding the Telephone Consumer Protection Act, with plaintiffs initially claiming approximately 1.2 million Do Not Call calls, later narrowing it to approximately 321,000[119] - The company is vigorously defending against allegations in the worker classification litigation, which claims misclassification of independent contractors and seeks penalties under California law[121] Market Conditions and Trends - The Consumer Price Index (CPI) rose by 5% for the 12 months ended March 31, 2023, indicating ongoing inflationary pressures[162] - The Home Ownership Affordability Monitor (HOAM) Index value dropped to 74.2 in February 2023 from 90.8 in February 2022, reflecting a significant decline in housing affordability[163] - Mortgage rates increased from an average of 4.17% in March 2022 to 6.54% in March 2023, contributing to decreased housing affordability[158] - The company expects significant declines in homesale transaction volume to continue in Q2 2023, driven by fewer homesale transactions[155] Transaction Volume and Pricing - Homesale transaction volume for the combined Franchise Group and Owned Brokerage Group decreased by 31% in Q1 2023 compared to Q1 2022[153] - Closed homesale sides dropped by 29% in Q1 2023 year-over-year, with the Franchise Group experiencing a 31% decline[153] - Average homesale price decreased by 3% across the combined groups in Q1 2023 compared to the same period in 2022[153] - Closed homesale sides for the Anywhere Brands - Franchise Group were 150,491 in Q1 2023, down 31% from 217,764 in Q1 2022[190] - Average homesale price decreased by 3% to $437,964 in Q1 2023 from $449,250 in Q1 2022[190] Shareholder Actions - The company has a remaining share repurchase authorization of $203 million as of March 31, 2023, with no shares repurchased since February 2022[133] - The company granted restricted stock units related to 1.5 million shares with a weighted average grant date fair value of $5.80 during Q1 2023[134] - The company approved an increase of 5 million shares reserved under the Second Amended and Restated 2018 Long-Term Incentive Plan, which was approved by stockholders on May 3, 2023[136]