Company Overview - Sotheby's International Realty announced the addition of Ernie Carswell & Associates, a leading real estate team in Los Angeles, to its Beverly Hills Brokerage [1] - The team has achieved over $300 million in closed sales volume in 2023 and 2024 [1] - Carswell & Associates has a distinguished legacy in the luxury real estate market, consistently ranked among the "Top 1,000 Agent Teams in America" [1] Team Experience and Achievements - Ernie Carswell, with over 25 years of experience, is recognized as a top name in luxury real estate, with accolades from various prestigious publications [2] - The 15-member team has nearly 100 years of combined experience, specializing in high-end neighborhoods such as Beverly Hills and Bel Air [3] - Notable sales include the record-breaking $25 million sale of the USC president's mansion and the iconic "Brady Bunch" house [3] Strategic Benefits of the Affiliation - The partnership with Sotheby's International Realty provides access to sophisticated marketing resources and a global network across 85 countries [5] - Carswell & Associates will benefit from the prestigious Sotheby's brand heritage, enhancing their listings' exposure through exclusive marketing channels [5] - Sotheby's International Realty's Southern California operations reported over $4.2 billion in sales volume in 2024, indicating a strong market presence [4]

Summary of Anywhere Real Estate Conference Call Company Overview - **Company**: Anywhere Real Estate - **Industry**: Residential Real Estate Services - **Market Share**: Supported 950,000 home sale transaction sides last year, representing approximately 12% of the national market share [1] - **Brands**: Includes Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Corcoran, ERA, and Sotheby's International Realty [1] - **Affiliated Agents**: Over 300,000 agents globally [1] Core Industry Insights - **Current Market Conditions**: The residential real estate industry is experiencing a challenging housing cycle, but there are opportunities for financial growth as markets normalize [3][4] - **Luxury Market Performance**: Anywhere Real Estate leads in luxury real estate sales, outperforming competitors in the luxury segment [4][8] - **Market Trends**: The spring season has shown muted performance with flat volumes, but luxury properties continue to outperform the overall market [11][12] Financial Performance and Strategy - **Cost Management**: The company is focused on digitization and automation to achieve a $100 million cost reduction target for the year [7][32] - **Agent Recruitment**: Agent recruitment has increased by 30% year-over-year, indicating strong interest in the company's offerings [8] - **Technological Investment**: Increased technology capital expenditures from $50 million to $80 million, focusing on generative AI to enhance operational efficiency [28][29] Market Dynamics - **Supply and Demand**: The current market is characterized by low supply and high demand, leading to price inflation despite rising interest rates [15][16][20] - **Demographic Trends**: The housing market is expected to normalize, with potential sales returning to levels above 5 million units due to demographic factors [19][21] - **Middle Market Performance**: The middle market is experiencing unit sales declines but still sees price inflation, indicating ongoing challenges [24][25] Ancillary Services and Integration - **Integrated Services**: Anywhere Real Estate is the only player with a national scale in title and mortgage services, enhancing customer experience through integrated offerings [37][38] - **Upward Title Program**: The company is expanding its Upward Title program to provide title services through joint ventures with franchisees, enhancing value propositions [41][42] Regulatory Environment - **Private Listings**: The company advocates for transparency in real estate transactions, supporting a balanced approach to private listings while maintaining a focus on consumer interests [44][46] - **Buyer Agent Agreements**: The transition to mandatory buyer agent agreements has been smooth, with no significant negative impact on commission structures observed [62][64] Future Outlook - **Market Fragmentation Risks**: Potential future fragmentation in the market could arise from changes in MLS rules and private listing practices, but Anywhere is positioned to adapt [58][60] - **Long-term Vision**: The company aims to maintain a consumer-friendly approach while being prepared for shifts in market dynamics, ensuring they remain competitive [61][62] Financial Management - **Debt Management**: Plans to refinance convertible bonds through market deals, with a preference for second lien options [76][78] - **Expense Reductions**: Most expense reductions are expected to be permanent, with significant cost savings achieved over the past several years [79][80]

Company Overview - Anywhere Real Estate Inc. (NYSE: HOUS) is a global leader in residential real estate services, offering integrated services including franchise, brokerage, relocation, title and settlement businesses, as well as mortgage and title insurance underwriter minority-owned joint ventures [3]. Upcoming Event - CEO Ryan Schneider will participate in the KBW Virtual Real Estate Finance & Technology Conference on May 20, 2025, at 12:00 p.m. EST, with the remarks being webcast and archived for 90 days [1][2].

Core Insights - Jacqueline Thompson joins Coldwell Banker Realty's Newport Beach office, recognized for her extensive experience and success in the luxury real estate market in Orange County [1][2] - Thompson has achieved over $1.4 billion in sales in Shady Canyon and over $800 million in other exclusive coastal communities, establishing her as a leader in the luxury sector [1] - Coldwell Banker Realty is a top brokerage in Southern California, operating 61 offices with approximately 4,159 affiliated agents, and is owned by Anywhere Real Estate Inc. [4] Company Overview - Coldwell Banker Realty has a long-standing reputation for excellence in real estate, setting industry standards for service and performance [3] - The company emphasizes a strong support system for its agents, enhancing their ability to serve clients effectively [2][3] - Coldwell Banker Realty is part of Anywhere Real Estate Inc., the largest full-service residential real estate services company in the U.S. [4]

Financial Performance - Gross commission income for Q1 2025 was $976 million, up from $907 million in Q1 2024, representing an increase of 7.6%[30] - Net revenues for Q1 2025 totaled $1,204 million, compared to $1,126 million in Q1 2024, reflecting a year-over-year growth of 6.9%[30] - The net loss for Q1 2025 was $78 million, an improvement from a net loss of $101 million in Q1 2024, indicating a reduction of 22.8%[30] - Basic loss per share attributable to Anywhere shareholders decreased to $0.70 in Q1 2025 from $0.91 in Q1 2024, a decline of 23.1%[30] - The company reported total expenses of $1,305 million in Q1 2025, compared to $1,254 million in Q1 2024, marking an increase of 4.1%[30] - The company had a net cash used in operating activities of $105 million for Q1 2025, compared to $122 million in Q1 2024, showing a decrease of 13.9%[35] - Total consolidated net revenues for the three months ended March 31, 2025, were $1.204 billion, with segment net revenues of $1.272 billion before intersegment eliminations[119] - The net loss attributable to Anywhere and Anywhere Group improved by $23 million, decreasing to $78 million in Q1 2025 from $101 million in Q1 2024[161] - Operating EBITDA for the total company was $(1) million in Q1 2025, compared to $(13) million in Q1 2024, reflecting a significant improvement[167] Assets and Liabilities - Total current assets as of March 31, 2025, were $589 million, slightly up from $581 million as of December 31, 2024[34] - Total liabilities increased to $4,092 million as of March 31, 2025, compared to $4,066 million at the end of 2024[34] - Cash and cash equivalents at the end of Q1 2025 were $110 million, down from $118 million at the end of 2024[34] - The company’s total assets decreased to $5,588 million as of March 31, 2025, from $5,636 million as of December 31, 2024[34] - The Company reported total short-term and long-term debt of $2,643 million as of March 31, 2025, an increase from $2,521 million at the end of 2024[71] - Total assets as of March 31, 2025, were $5,588 million, with capital expenditures of $20 million[126] - Total liabilities increased by $26 million to $4,092 million, mainly due to a $122 million net increase in corporate debt from additional borrowings under the Revolving Credit Facility[181] Revenue Streams - Anywhere Real Estate reported net revenues of $1,204 million for the three months ended March 31, 2025, compared to $1,126 million for the same period in 2024, reflecting a year-over-year increase of approximately 6.9%[51] - The gross commission income for the Owned Brokerage Group was $976 million for the three months ended March 31, 2025, compared to $907 million for the same period in 2024, representing an increase of about 7.6%[51] - Anywhere Real Estate's Franchise Group generated service revenue of $125 million for the three months ended March 31, 2025, compared to $119 million for the same period in 2024[51] - The Franchise Group experienced a 4% increase in volume, while the Owned Brokerage Group saw a 10% increase in volume compared to the same period in the prior year[132] - The average homesale price increased by 10% for the Franchise Group and 13% for the Owned Brokerage Group in the first quarter of 2025[134] Cost Management - Total expenses increased by $51 million or 4% in Q1 2025, primarily due to a $59 million rise in commission and other sales agent-related costs[162] - Cost savings realized during the first quarter of 2025 amounted to $14 million, with approximately half related to specific restructuring activities[138] - Restructuring charges amounted to $12 million for the three months ended March 31, 2025, compared to $11 million for the same period in 2024[75] - Restructuring costs for the Owned Brokerage Group amounted to $7 million in Q1 2025, compared to $6 million in Q1 2024[166] Legal and Regulatory Matters - The Company is involved in various legal proceedings, including antitrust litigation, which may have significant implications for its financial condition[86] - The Anywhere Settlement includes monetary relief of $83.5 million, of which $30 million has been paid, with the remaining $53.5 million due within 21 business days after appellate rights are exhausted[93] - The Anywhere Settlement requires practice changes for Company-owned brokerage operations for a period of five years[94] - As of March 31, 2025, the company has an accrual of $41 million related to a legacy tax matter from a 1999 transaction, following a decision in favor of the California Franchise Tax Board[102] Strategic Initiatives - The Reimagine25 initiative, launched in 2025, aims to transform operations, focusing on branch operating model, product and technology infrastructure, and finance processes[80] - Total expected costs related to the Reimagine25 Plan amount to $30 million, with $10 million incurred to date and $20 million remaining[82] - The Company incurred $2 million of facility-related costs for lease asset impairments in connection with the Reimagine25 Plan during the three months ended March 31, 2025[81] Debt and Financing - As of March 31, 2025, the Company had $1,100 million of borrowing capacity under its Revolving Credit Facility, with $610 million drawn down[72] - The average weighted interest rate for securitization obligations was 7.1% for the three months ended March 31, 2025, compared to 8.6% for the same period in 2024[79] - The company expects to meet cash flow needs over the next twelve months through operational cash flows and available credit facilities[185] - The senior secured leverage ratio must not exceed 4.75 to 1.00, as tested quarterly, impacting the company's ability to engage in favorable business activities[199] - The company has significant restrictions on incurring additional debt, paying dividends, or making acquisitions[201] Market Conditions - Existing homesale transactions in the U.S. decreased by 2% in the first quarter of 2025 compared to the same period in 2024[137] - The decline in closed homesale transactions has been offset by a 15% increase in average homesale prices from December 2021 to December 2024[131] - Closed homesale sides for the Franchise Group decreased by 5% to 137,089 in Q1 2025 from 144,775 in Q1 2024, while the average homesale price increased by 10% to $516,999[149] - The Owned Brokerage Group reported a 2% decline in closed homesale sides to 49,461, but the average homesale price rose by 13% to $799,750[149] Shareholder Matters - The company has a share repurchase program authorized for up to $300 million, with $203 million remaining available for repurchase as of March 31, 2025[108] - The company granted 2.2 million restricted stock units with a grant date fair value of $3.47 during the first quarter of 2025[110] - The company’s Board approved an increase of 6 million shares reserved under the 2018 Long-Term Incentive Plan, subject to stockholder approval[109]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1,200,000,000, representing a 7% increase year-over-year [16] - Operating EBITDA was approximately breakeven, with a negative $1,000,000, an improvement of $12,000,000 or 92% compared to the previous year [16] - Free cash flow was negative $130,000,000, showing a $15,000,000 year-over-year improvement despite challenging market conditions [17] Business Line Data and Key Metrics Changes - Anywhere Brands business generated $97,000,000 in operating EBITDA, an increase of $7,000,000 due to higher transaction volume and lower expenses [18] - Anywhere Advisors had an operating EBITDA of negative $47,000,000, improving by $12,000,000 year-over-year driven by higher revenue and lower operating costs [19] - Integrated Services reported an operating EBITDA of negative $18,000,000, down $3,000,000 from Q1 2024, despite a revenue increase of $7,000,000 [19] Market Data and Key Metrics Changes - The company experienced a 6% volume increase, significantly outperforming the National Association of Realtors' (NAR) 3% volume growth [7] - Luxury segment volume increased by 16% year-over-year, with luxury listings up 12% [9][10] - April volumes were relatively flat compared to Q1, attributed to market and macroeconomic volatility [7] Company Strategy and Development Direction - The company launched "Reimagine 25" to transform operations and enhance customer experiences through technology adoption [8] - Strategic growth in luxury leadership was highlighted, with significant expansion across brands like Sotheby's International Realty and Corcoran [9] - The company is focused on reducing costs, targeting $100,000,000 in savings for 2025, with $14,000,000 already realized in Q1 [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging housing market and emphasized the importance of broad distribution of listings for customer benefit [14][33] - The company anticipates operating EBITDA for the full year to be around $350,000,000, with the housing market being a significant variable [23] - Management noted that luxury continues to outperform, with expectations for ongoing strength in that segment [98] Other Important Information - The company is actively investing in technology and agent recruitment to drive future growth [17][20] - Management highlighted the importance of transparency in listings and the potential impact of recent industry changes on their business model [14][33] Q&A Session Summary Question: Insights on clear cooperation policy and its impact on investors - Management emphasized the importance of broad distribution of listings for achieving the best prices for customers, which aligns with their strategy [30][32] Question: Commission rates and market dynamics - Management noted a slight decline in commission rates, attributed to both buy-side and list-side pressures, with luxury showing a more significant drop [35][36] Question: Trends in luxury market and days on market - Management reported that days on market and cancellation rates remained stable, with luxury listings continuing to see price growth [96][98] Question: Investment in integrated services and expected outcomes - Management discussed ongoing investments in technology and agent recruitment, with expectations for savings to materialize in the latter half of the year [68][70] Question: M&A environment and refinancing plans - Management indicated readiness to refinance convertible notes and expressed openness to M&A opportunities, noting the current market volatility [84][88]

Earnings Call Q1 2025 1 Management Presenters Charlotte Simonelli Executive Vice President and Chief Financial Officer Alicia Swift Senior Vice President, Investor Relations and Treasury 2 Ryan Schneider Chief Executive Officer and President Certain financial measures, as used in this presentation, are supplemental measures of the Company's performance that are not Generally Accepted Accounting Principles ("GAAP") measures. Refer to slides 30-32 of this presentation and Tables 1a, 5, 6a, 6b, 7, 8a, 8b and 9 ...

Company Overview - Title Resources Group (TRG) is one of the nation's leading title insurance underwriters, recognized for its significant market share in the real estate industry [5] - The company has operated profitably since its inception in 1984, without a net operating loss in any fiscal year [5] - TRG is partnered with notable firms such as Centerbridge Partners, L.P., Anywhere Real Estate Inc., HomeServices of America, Lennar, and Opendoor Technologies Inc. [5] Leadership Announcement - Juliann Hickey has been appointed as Senior Vice President, Regional Manager, responsible for business development in Alabama, Georgia, and Mississippi, while also overseeing growth initiatives in Florida [1] - The CEO of TRG, Scott McCall, expressed enthusiasm about Juliann's addition to the leadership team, highlighting her experience and capability in driving strategic growth [1][3] Professional Background of Juliann Hickey - Juliann Hickey brings 25 years of experience in the real estate and financial services industry, including roles in private practice and as underwriting counsel at national title insurance companies [1][2] - She previously held the position of Senior Vice President, Eastern Regional Manager for TRG, overseeing legal, business, and financial strategy across 14 states [2] Educational Qualifications - Juliann is a Florida licensed attorney with a Juris Doctor degree from the University of Florida Levin College of Law and a Bachelor of Arts degree from the University of Central Florida [4] - She received the University of Central Florida Professional Achievement Award in 2015 and is recognized as an experienced speaker on legal, real estate, and financial services topics [4]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1,200,000,000, representing a 7% increase year-over-year [15] - Operating EBITDA was approximately breakeven, with a negative $1,000,000, an improvement of $12,000,000 or 92% compared to the previous year [15] - Free cash flow for Q1 was negative $130,000,000, showing a $15,000,000 year-over-year improvement [16] Business Line Data and Key Metrics Changes - The Anywhere Brands business generated $97,000,000 in operating EBITDA, an increase of $7,000,000 due to higher transaction volume and lower expenses [17] - The Anywhere Advisors segment had an operating EBITDA of negative $47,000,000, improving by $12,000,000 year-over-year driven by higher revenue and lower operating costs [17] - The Integrated Services segment reported an operating EBITDA of negative $18,000,000, down $3,000,000 from Q1 2024, despite a revenue increase of $7,000,000 [18] Market Data and Key Metrics Changes - The company experienced a 6% volume increase, significantly outperforming the National Association of Realtors' (NAR) 3% volume growth [8] - Luxury segment volume was up 16% year-over-year, with luxury listings increasing by 12% [9][10] - April volumes were relatively flat compared to Q1, attributed to market and macroeconomic volatility [8] Company Strategy and Development Direction - The company launched "Reimagine 25" to transform operations and enhance customer experiences through technology [9] - The focus remains on expanding luxury leadership and enhancing the integrated business model covering all aspects of real estate transactions [5][6] - The company aims to achieve $100,000,000 in cost savings for 2025, with $14,000,000 already realized in Q1 [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging housing market and emphasized the importance of broad distribution of listings for customer benefit [14][34] - The company anticipates operating EBITDA for the full year to be around $350,000,000, with the housing market being a significant variable [23] - Management noted that luxury continues to outperform, with positive trends in volume and pricing despite broader market volatility [100] Other Important Information - The company is actively pursuing AI initiatives to enhance productivity and operational efficiency [12] - There is a commitment to transparency and consumer choice in listing distribution, which management believes will benefit long-term business sustainability [14][34] Q&A Session Summary Question: Insights on clear cooperation policy and its impact on investors - Management emphasized the importance of broad listing distribution for achieving the best prices for sellers and maintaining customer trust [29][34] Question: Commentary on commission rates and market dynamics - Management noted a slight decline in commission rates, attributed to both buy-side and list-side pressures, with luxury segments experiencing more significant changes [36][39] Question: Performance of integrated services segment and investment impacts - Management acknowledged investments in technology and agent recruitment as factors affecting the integrated services segment, with expectations for improved performance in the latter half of the year [69][70] Question: Trends in luxury market and seller behavior - Management reported that luxury listings continue to perform well, with no significant changes in days on market or cancellation rates observed in April [98][100]

Financial Performance - Generated Revenue of $1.2 billion, an increase of $78 million (7%) year-over-year[5] - Reported Net Loss of $78 million, an improvement of $23 million year-over-year; Adjusted Net Loss of $64 million improved $21 million versus Q1 2024[5] - Total revenues for Q1 2025 were $1,204 million, up from $1,126 million in Q1 2024, representing a 6.9% increase[27] - Gross commission income increased to $976 million in Q1 2025 from $907 million in Q1 2024, a rise of 7.6%[27] - Net loss attributable to Anywhere was $78 million in Q1 2025, an improvement from a net loss of $101 million in Q1 2024[27] - Adjusted net loss attributable to Anywhere for Q1 2025 was $64 million, compared to $85 million in Q1 2024, reflecting a 24.7% reduction[29] - Total Company net revenues for the three months ended March 31, 2025, were $1,204 million, a 7% increase from $1,126 million in the same period of 2024[49] - Operating EBITDA for the Total Company was $(1) million for the three months ended March 31, 2025, compared to $(13) million in the same period of 2024[49] Transaction Volume and Market Performance - Combined closed transaction volume increased 6% year-over-year, with units down about 4% and price up 11%[5] - Closed transaction volume for luxury brands increased approximately 16% year-over-year, significantly outperforming the market[5] - Closed homesale sides decreased by 5% to 137,089 in Q1 2025 from 144,775 in Q1 2024[37] - Closed homesale sides for Anywhere Brands - Franchise Group totaled 700,589 in 2024, with an average homesale price of $497,494[40] - The Owned Brokerage Group reported closed homesale sides of 249,421, with an average homesale price of $748,596 in 2024[40] - Average homesale price increased by 10% to $516,999 in Q1 2025 from $470,119 in Q1 2024[37] Cash Flow and Debt - Free Cash Flow of negative $130 million, improved from negative $145 million in 2024[5] - Cash and cash equivalents at the end of Q1 2025 were $110 million, down from $118 million at the end of 2024[33] - Total corporate debt was $2.6 billion at March 31, 2025, with a Senior Secured Leverage Ratio of 1.51x[13] - Current portion of long-term debt increased to $610 million in Q1 2025 from $490 million at the end of 2024[33] - The company reported a net cash used in operating activities of $105 million for Q1 2025, compared to $122 million in Q1 2024[35] - Free cash flow for Q1 2025 was $(130) million, compared to $(145) million in Q1 2024, indicating a slight improvement year-over-year[61] Revenue by Segment - The Franchise Group's revenue increased to $204 million in Q1 2025, up from $200 million in Q1 2024, reflecting a 2% growth[46] - The Owned Brokerage Group's revenue rose to $990 million in Q1 2025, an increase of $71 million or 8% from Q1 2024[46] - The Title Group's revenue for Q1 2025 was $78 million, a 10% increase from $71 million in Q1 2024[46] Cost Management and Restructuring - Realized cost savings of $14 million in Q1 2025, on track to deliver $100 million for the full year[5] - Restructuring costs for the Total Company amounted to $12 million in Q1 2025, compared to $11 million in Q1 2024[44] - Restructuring costs for the year totaled $32 million, with Q1 2024 accounting for $11 million of this total[59] Corporate Developments - The Company welcomed 11 new US franchisees and added two new international expansions in Q1 2025[5] Financial Metrics and Definitions - Operating EBITDA is presented as a supplemental measure to evaluate the performance of the company's operating businesses, providing greater transparency into results[71] - Adjusted net income (loss) is defined as net income (loss) before specific adjustments, including non-cash stock-based compensation and restructuring charges, to enhance transparency in operating results[73] - Free Cash Flow is defined as net income (loss) attributable to Anywhere before various expenses, and is used to evaluate operating effectiveness and resource allocation[74] - Free Cash Flow does not reflect changes in working capital needs or cash requirements for servicing debt, taxes, or future capital expenditures[75] - The company believes Operating EBITDA facilitates comparisons of operating performance across different companies by excluding non-core items[72] - Limitations of Operating EBITDA include its inability to reflect interest expense, income tax expense, and historical cash expenditures[75] - The company emphasizes that Free Cash Flow should not be considered in isolation or as an alternative to net income or other financial data prepared in accordance with GAAP[74] - Adjusted net income (loss) includes adjustments for legal contingencies and gains or losses on the sale of businesses, which are not related to normal operations[73] - The company uses Free Cash Flow as a measure of its ability to generate cash, which is critical for operational decisions[74] - Operating EBITDA should not be viewed as a substitute for net income or other GAAP measures, highlighting its limitations as an analytical tool[73]