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Finance of America panies (FOA) - 2024 Q4 - Annual Results
FOAFinance of America panies (FOA)2025-03-11 20:08

Financial Performance - Net income from continuing operations for 2024 was 40million,translatingto40 million, translating to 1.78 basic earnings per share[4]. - Adjusted net income for the year was 14million,or14 million, or 0.60 adjusted earnings per share, reflecting a 97millionimprovementcomparedto2023[4].−AdjustedEBITDAfor2024was97 million improvement compared to 2023[4]. - Adjusted EBITDA for 2024 was 60 million, marking a significant recovery in profitability[4]. - Total revenue for 2024 increased by 44% compared to 2023, driven by higher funded volumes and improved margins[13]. - Total expenses decreased from 209millionin2023to209 million in 2023 to 195 million in 2024, reflecting operational efficiencies[13]. - The Retirement Solutions segment achieved pre-tax income of 11millionandadjustednetincomeof11 million and adjusted net income of 38 million for the year[10]. - The Portfolio Management segment recognized pre-tax income of 84million,benefitingfrompositivefairvalueadjustmentsandincreasedyieldonresidualinterests[12].−FortheyearendedDecember31,2024,thecompanyreportedapre−taxincomeof84 million, benefiting from positive fair value adjustments and increased yield on residual interests[12]. - For the year ended December 31, 2024, the company reported a pre-tax income of 11 million for Retirement Solutions, 84millionforPortfolioManagement,andalossof84 million for Portfolio Management, and a loss of 52 million for Corporate & Other, totaling a pre-tax income of 43million[29].−Theadjustednetincomefortheyear2024was43 million[29]. - The adjusted net income for the year 2024 was 38 million for Retirement Solutions, 42millionforPortfolioManagement,andalossof42 million for Portfolio Management, and a loss of 66 million for Corporate & Other, resulting in a total adjusted net income of 14million[29].QuarterlyPerformance−TotalrevenuesforQ4′24were14 million[29]. Quarterly Performance - Total revenues for Q4'24 were (105.623) million, compared to 290.073millioninQ3′24and290.073 million in Q3'24 and 338.171 million in 2023, indicating a significant decline[18]. - Net income (loss) from continuing operations for Q4'24 was (142.629)million,comparedto(142.629) million, compared to 203.748 million in Q3'24 and 40.418millionin2023[18].−Basicearnings(loss)persharefromcontinuingoperationsforQ4′24was40.418 million in 2023[18]. - Basic earnings (loss) per share from continuing operations for Q4'24 was (5.95), down from 8.48inQ3′24and8.48 in Q3'24 and 1.78 in 2023[20]. - Adjusted EBITDA for Q4'24 was 18million,downfrom18 million, down from 32 million in Q3'24 and (17)millioninQ4′23[21].−Thecompanyreportedanetlossattributabletocontrollinginterestof(17) million in Q4'23[21]. - The company reported a net loss attributable to controlling interest of (59.088) million in Q4'24, compared to a profit of 84.203millioninQ3′24[21].−TotalexpensesforQ4′24were84.203 million in Q3'24[21]. - Total expenses for Q4'24 were 87.056 million, an increase from 80.308millioninQ3′24[18].−ForthethreemonthsendedDecember31,2024,adjustednetincomeforRetirementSolutionswas80.308 million in Q3'24[18]. - For the three months ended December 31, 2024, adjusted net income for Retirement Solutions was 8 million, Portfolio Management was 13 million, and Corporate & Other reported a loss of 15 million, resulting in a total adjusted net income of 5million[26].−Theadjustedearningspershareforthesameperiodwere5 million[26]. - The adjusted earnings per share for the same period were 0.31 for Retirement Solutions, 0.52forPortfolioManagement,and0.52 for Portfolio Management, and (0.61) for Corporate & Other, leading to an overall adjusted earnings per share of 0.21[26].−TheweightedaveragesharecountforthethreemonthsendedDecember31,2024,was24,429,615shares[26].CapitalandEquity−Totalequityrosefrom0.21[26]. - The weighted average share count for the three months ended December 31, 2024, was 24,429,615 shares[26]. Capital and Equity - Total equity rose from 272 million in 2023 to 316millionin2024,anincreaseof16316 million in 2024, an increase of 16%[8]. - Tangible net worth improved by 421%, from 19 million at the end of 2023 to 99millionattheendof2024[8].−TheweightedaveragesharesoutstandingforQ4′24were9,930,520,slightlyupfrom9,924,671inQ3′24[20].OperationalInsights−Reversemortgagefundedvolumeincreasedby1999 million at the end of 2024[8]. - The weighted average shares outstanding for Q4'24 were 9,930,520, slightly up from 9,924,671 in Q3'24[20]. Operational Insights - Reverse mortgage funded volume increased by 19% year-over-year, with 534 million produced in Q4, exceeding guidance[4]. - The company emphasizes its focus on expanding its customer base and enhancing its digital capabilities to improve loan origination quality[36]. - The company is subject to various risks, including changes in interest rates and compliance with extensive regulations, which could impact future performance[36]. Non-GAAP Measures - The company has revised its definitions of adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share to include all non-cash equity-based compensation starting from Q3 2024[43]. - Adjusted net income (loss) is utilized by management to assess the underlying key drivers and operational performance of the continuing operations of the business[46]. - Adjusted EBITDA provides visibility to the underlying operating performance by excluding certain items that management does not believe are representative of core earnings[50]. - Adjusted earnings (loss) per share is calculated as adjusted net income (loss) divided by the weighted average shares outstanding, including various classes of stock[52]. - The company emphasizes that non-GAAP financial measures should not be considered as alternatives to net income (loss) or other performance measures determined in accordance with U.S. GAAP[41]. - Management believes that the presentation of non-GAAP measures enhances investors' understanding of certain aspects of financial performance[40]. - Adjusted EBITDA includes adjustments for income taxes, changes in fair value of loans and securities, and certain non-recurring costs[48]. - The company cautions users of its financial statements not to place undue reliance on non-GAAP financial measures due to their limitations[42]. - Adjusted net income (loss) may include other adjustments based on facts and circumstances to provide a supplemental means of evaluating operating performance[47]. - The company’s management evaluates performance through non-GAAP measures to maintain and grow the business[39]. Future Outlook - The company plans to host a conference call on March 11, 2025, to discuss the results for the fourth quarter and full year ended December 31, 2024[32].