Anywhere(US:HOUS)2021-02-23 19:19Financial Data and Key Metrics Changes - In 2020, the company achieved revenue growth of 6% to $6.2 billion and delivered $726 million in operating EBITDA, an increase of 23% from 2019 [34][35] - Free cash flow reached $555 million, up $329 million compared to the previous year [35] - The consolidated net leverage ratio improved to 3.4x, the lowest since the company went public in 2012 [12][42] Business Line Data and Key Metrics Changes - The company closed 1.4 million transactions in 2020, reflecting a 13% year-over-year transaction volume growth [35] - The mortgage and title business delivered $226 million in operating EBITDA, up $158 million from the prior year [37] - Commission splits increased by 265 basis points year-over-year, primarily due to a higher share of transactions closed by higher split agents [39][41] Market Data and Key Metrics Changes - Q4 2020 closed transaction volume increased by 45% year-over-year, with similar growth across brokerage and franchise [25] - The housing market ended 2020 with 5.6 million units sold, indicating a recovery from the previous low levels [29] - January 2021 closed volume was up 32% year-over-year, with open volume also showing strong growth [12][26] Company Strategy and Development Direction - The company is focused on creating a more integrated customer home buying and selling experience, leveraging technology and data to enhance agent support [13][15] - Strategic expansion of the Corcoran franchise and strong performance of the Sotheby's International Realty brand are key growth drivers [18][19] - The company is exploring different real estate models, including the RealSure iBuying joint venture, to compete effectively in the market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic positioning for the residential real estate market, despite ongoing public health and macroeconomic uncertainties [31][32] - The company is monitoring macro inventory constraints and consumer trends that could impact the housing market [31] - Management highlighted the importance of agent expertise and technology in navigating the challenges of 2020 [22][23] Other Important Information - The Cartus Relocation business has been reclassified into continuing operations and is now included within the RFG segment [7][8] - The company has made significant improvements to its capital structure, reducing net debt by approximately $500 million [42][44] Q&A Session Summary Question: Can you discuss the organic share gains and what drove them in the back half of the year? - Management attributed market share gains to improved agent retention, franchise expansion, and strong positioning in the higher-end market [53] Question: What was the impact of the mortgage joint venture in 2020? - The mortgage joint venture contributed positively, benefiting from a strong refinance market and strategic expansion efforts [55][56] Question: What is the outlook for the Cartus Relocation business now that it's part of the franchise? - Management noted that the relocation market is under pressure due to COVID and visa restrictions, but they remain optimistic about its recovery [74] Question: How does the company plan to allocate capital moving forward? - The company will prioritize investing in the business and paying down debt, with no immediate plans to reinstate dividends [75][76] Question: What are the expectations for EBITDA margins in 2021? - Margins will depend on volume and the impact of temporary cost savings from 2020, with potential for leverage if volumes remain strong [82]