Transaction Volume Growth of 14% Drives Revenue Increase Year Over Year; Strong Housing Demand Supports Average Homesale Price Growth
Realogy Holdings Corp. (NYSE: RLGY), a global leader in residential real estate franchising and provider of real estate brokerage, relocation, and title and settlement services, today reported financial results for the first quarter ended March 31, 2013, including the following:
- Realogy’s net revenue for first quarter 2013 was $957 million, a 9% increase compared to the same period in 2012.
- The Company’s Adjusted EBITDA1 was $71 million in the first quarter, which was an increase of 34% year-over-year. The increase was primarily due to a 14% year-over-year increase in sales volume (homesale transaction sides times average sale price) at the franchised and company-owned real estate services segments combined.
- Net loss attributable to the Company in the first quarter was $75 million, which was after $89 million of interest expense, $42 million of depreciation and amortization and $3 million of debt extinguishment charges.
The Company’s combined transaction volume was up 14% for the first quarter of 2013. RFG, our franchise segment, and NRT, the operator of our company-owned brokerage offices, reported closed homesale side increases of 6% and 5%, respectively. Average homesale price increased 9% at RFG and NRT’s average homesale price, which is generally twice the national average, increased 6% compared with the first quarter of 2012.
“Our transaction volume, which was at the top end of the range of the guidance we provided in February, and our first quarter performance continue to support our firm belief in the strength of the housing recovery,” said Richard A. Smith, Realogy’s chairman, chief executive officer and president. “The first quarter results were particularly encouraging given the seasonally lower transaction volume typically seen in the first quarter of any year.”
In our relocation business, Cartus experienced a 10% increase in broker referrals and a 4% year-over-year decrease in initiations compared with 2012. In our title and settlement services segment, Title Resource Group (TRG) experienced a 5% increase in purchase title and closing units compared to the first quarter of 2012 and an 11% increase in refinance title and closing units.
“We expect continued growth in transaction volume, with 14% to 17% increases in the second quarter,” said Tony Hull, Realogy’s executive vice president, chief financial officer and treasurer. “On a combined basis, RFG and NRT transaction sides are anticipated to increase 7% to 9% and average sale price is expected to increase 7% to 8% year-over-year in the second quarter.”
Realogy is the parent company of Sotheby’s International Realty