MADISON, N.J., April 25, 2024 /PRNewswire/ -- Anywhere Real Estate Inc. (NYSE:HOUS) ("Anywhere" or the "Company"), a global leader in residential real estate services, today reported financial results for the first quarter ended March 31, 2024. "Anywhere continued to demonstrate powerful leadership in the face of a challenging housing market and industry landscape, and our results in the quarter reinforce our ability to execute with discipline and focus while propelling our strategy forward," said Ryan Schneider, Anywhere president and CEO. "I appreciate how our great Anywhere affiliated agents, franchisees, and employees continue to deliver meaningful value to help consumers navigate the market as, together, we empower everyone's next move." "Anywhere delivered solid results in the first quarter despite a tough market environment," said Charlotte Simonelli, Anywhere executive vice president, chief financial officer, and treasurer. "We are excited about our financial octane when the housing market strengthens and continue to stay focused on controlling what we can control, maximizing our cost savings, prudently managing cash, and improving our capital structure to position Anywhere for long-term success." First Quarter 2024 Highlights Generated Revenue of $1.1 billion, flat year-over-year, impacted by combined homesale transaction volume increases versus prior year offset by declines in relocation revenue. This is the first quarter of transaction volume increases in two years. Combined closed transaction volume increased 2% year-over-year in the first quarter with units down about 4% and price up 7%. Our strength in luxury continued to outperform with our Sotheby's International Realty brand seeing closed transaction volume up 7% year-over-year with about half of that from unit growth as it again meaningfully outperformed the market and our portfolio. Reported Net loss of $101 million and Adjusted Net Loss of $88 million. Operating EBITDA loss of $17 million, $35 million improvement year-over-year (See Table 5) with March Operating EBITDA solidly positive. Realized cost savings of approximately $30 million and on track to deliver at least $100 million for the full year. Commission splits in the first quarter were down 3 basis points year-over-year, continuing the six-quarter trend of more stable splits. Free Cash Flow of negative $145 million with the first quarter being a seasonal use quarter for the business (See Table 7). Anywhere was recognized by Fortune's America's Most Innovative Companies list for the second year in a row and was once again named one of the World's Most Ethical Companies for the 13th consecutive year. First Quarter 2024 Financial Highlights The following table sets forth the Company's financial highlights for the periods presented (in millions, except per share data) (unaudited): Three Months Ended March 31, 2024 2023  Change % Change Revenue $         1,126 $         1,131 $               (5) — % Operating EBITDA 1 (17) (52) 35 67 Net loss attributable to Anywhere (101) (138) 37 27 Adjusted net loss 2 (88) (106) 18 17 Loss per share (0.91) (1.26) 0.35 28 Free Cash Flow 3 (145) (120) (25) (21) Net cash used in operating activities $          (122) $          (113) $               (9) (8) % Select Key Drivers Anywhere Brands - Franchise Group 4 5 Closed homesale sides 144,775 150,491 (4) % Average homesale price $     470,119 $     437,964 7 % Anywhere Advisors - Owned Brokerage Group 5 Closed homesale sides 50,513 53,797 (6) % Average homesale price $     709,506 $     663,223 7 % Anywhere Integrated Services - Title Group Purchase title and closing units 21,325 21,749 (2) % Refinance title and closing units 2,025 2,198 (8) % _______________ Footnotes: 1  See Table 5 for a reconciliation of Net loss attributable to Anywhere to Operating EBITDA. Operating EBITDA is defined as net income (loss) adjusted for depreciation and amortization, interest expense, net (excluding relocation services interest for securitization assets and securitization obligations), income taxes, and certain non-core items. Non-core items include restructuring charges, former parent legacy items, gains or losses on the early extinguishment of debt, impairments, and gains or losses on discontinued operations or the sale of businesses, investments or other assets.  2  See Table 1a for a reconciliation of Net loss attributable to Anywhere to Adjusted net loss. Adjusted net income (loss) is defined as net income (loss) before mark-to-market interest rate swap adjustments, former parent legacy items, restructuring charges, (gain) loss on the early extinguishment of debt, impairments, (gain) loss on the sale of businesses, investments or other assets and the tax effect of the foregoing adjustments. 3  See Table 7 for a reconciliation of Net loss attributable to Anywhere to Free Cash Flow. Free Cash Flow is defined as net income (loss) attributable to Anywhere before income tax expense (benefit), income tax payments, net interest expense, cash interest payments, depreciation and amortization, capital expenditures, restructuring costs and former parent legacy costs (benefits), net of payments, impairments, (gain) loss on the sale of businesses, investments or other assets, (gain) loss on the early extinguishment of debt, working capital adjustments and relocation receivables (assets), net of change in securitization obligations. 4  Includes all franchisees except for Owned Brokerage Group. 5  As of March 31, 2024, the Company's combined homesale transaction volume (transaction sides multiplied by average sale price) increased 2% compared with the first quarter of 2023. 2024 Financial Estimates The Company expects to realize cost savings of at least $100 million in 2024. The Company expects our operating Free Cash Flow excluding one-time items to be modestly positive in 2024 as favorable working capital, robust savings programs, and our cash management discipline will help counterbalance another tough year in housing. And as a reminder, we have over $100 million of one-time payments anticipated this year between the $73.5 million class action litigation payment and the $39 million legacy California tax matter. These estimates are subject to, among other things, macroeconomic and housing market uncertainties, including those related to rising inflation, declining affordability and constrained inventory as well as competitive, litigation and regulatory uncertainties. Balance Sheet Total corporate debt, including the short-term portion, net of cash and cash equivalents (net corporate debt), totaled $2.6 billion at March 31, 2024. The Company ended the quarter with cash and cash equivalents of $111 million. The Company's Senior Secured Leverage Ratio was 1.77x at March 31, 2024 (see Table 8a). The Company's Net Debt Leverage Ratio was 8.1x at March 31, 2024 (see Table 8b). As of April 24, 2024 the Company had $525 million of outstanding borrowings under its Revolving Credit Facility. A consolidated balance sheet is included as Table 2 of this press release. Investor Conference Call Today, April 25, at 8:30 a.m. (ET), Anywhere will hold a conference call via webcast to review its Q1 2024 results and provide a business update. The webcast will be hosted by Ryan Schneider, chief executive officer and president, and Charlotte Simonelli, chief financial officer, and will conclude with an investor Q&A period with management. Investors may access the conference call live via webcast at ir.anywhere.re or by dialing (800) 715-9871 (toll free); international participants should dial (646) 307-1963. Please dial in at least 5 to 10 minutes prior to start time. A webcast replay also will be available on the website. About Anywhere Real Estate Inc. Anywhere Real Estate Inc. (NYSE: HOUS) is moving the real estate industry to what's next. A leader of integrated residential real estate services, Anywhere includes franchise, brokerage, relocation, and title and settlement businesses, as well as mortgage and title insurance underwriter minority owned joint ventures. The diverse Anywhere brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, and Sotheby's International Realty®. Using innovative technology, data and marketing products, high-quality lead generation programs, and best-in-class learning and support services, Anywhere fuels the productivity of its approximately 184,800 independent sales agents in the U.S. and approximately 132,100 independent sales agents in 117 other countries and territories, helping them build stronger businesses and best serve today's consumers. Recognized for 13 consecutive years as one of the World's Most Ethical Companies, Anywhere has also been designated a Great Place to Work six years in a row, honored on the Forbes list of World's Best Employers for three years, named one of America's Most Innovative Companies by Fortune for two years, and featured on the inaugural TIME World's Best Companies list. Forward-Looking Statements This press release contains "forward-looking statements," within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "believes", "expects", "anticipates", "intends", "projects", "estimates", "potential" and "plans" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could", and include statements that refer to expectations or other characterizations of future events, circumstances or results. Examples of forward-looking statements include the information appearing under 2024 Financial Estimates. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anywhere Real Estate Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following include some, but not all, of the factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements: adverse developments or the absence of sustained improvement in the U.S. residential real estate markets, either regionally or nationally, which could include, but are not limited to, factors that impact homesale transaction volume, such as: prolonged periods of a high mortgage rate environment, high rates of inflation, reduced housing affordability and increasing costs of home ownership, a lack of housing inventory and a continued low number of home sales; adverse developments or the absence of sustained improvement in macroeconomic conditions (such as business, economic or political conditions) on a global, domestic or local basis, which could include, but are not limited to, contraction or stagnation in the U.S. economy, geopolitical and economic instability, including as related to foreign conflicts and supply chain disruptions, continued or accelerated increases in inflation and fiscal and monetary policies of the federal government; failure to obtain final court approval of the settlement related to our seller antitrust class action litigation and other adverse developments or outcomes in current or future litigation, in particular pending antitrust litigation and litigation related to the Telephone Consumer Protection Act (TCPA); industry structure changes that disrupt the functioning of the residential real estate market, including the manner in which any broker commissions are communicated, negotiated or paid; the impact of evolving competitive and consumer dynamics, including meaningful decreases in the average broker commission rate, continued erosion of the Company's share of the commission income generated by homesale transactions, our ability to compete against traditional and non-traditional competitors and our ability to adapt our business to changing consumer preferences; our ability to execute our business strategy and achieve growth, including with respect to the recruitment and retention of productive independent sales agents, attraction and retention of franchisees, development or procurement of products, services and technology, including the integration of Artificial Intelligence (AI) and other machine learning, achievement or maintenance of a beneficial cost structure and our ability to realize the expected benefits from our existing or future joint ventures or strategic partnerships; risks related to our substantial indebtedness, particularly heightened during industry downturns or broader recessions, which could adversely limit our operations, including our ability to grow our business, adversely impact our liquidity and/or and our ability, and any actions we may take, to refinance, restructure or repay our indebtedness; risks related to our business structure, including our geographic and high-end market concentration, the operating results of our affiliated franchisees, their ability to pay franchise and related fees and potential claims we could face due to their actions, the continued consolidation among our top 250 franchisees, and risks related to our reliance on information technology to operate our business and maintain our competitiveness; disruption in the residential real estate brokerage industry related to listing aggregator market power and concentration; our failure or alleged failure to comply with laws, regulations and regulatory interpretations and any changes or stricter interpretations of any of the foregoing, including but not limited to (1) antitrust laws and regulations, (2) the Real Estate Settlement Procedures Act or other federal or state consumer protection or similar laws, (3) state or federal employment laws or regulations that would require reclassification of independent contractor sales agents to employee status, (4) the TCPA, and (5) privacy or data security laws and regulations; cybersecurity incidents; impairment of our goodwill and other long-lived assets; the accuracy of market forecasts and estimates; and significant fluctuation in the price of our common stock. Consideration should be given to the areas of risk described above, as well as those risks set forth under the headings "Forward-Looking Statements," "Summary of Risk Factors," "Risk Factors" and "Legal Proceedings" in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our other filings made from time to time, in connection with considering any forward-looking statements that may be made by us and our businesses generally. We undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events except as required by law. Non-GAAP Financial Measures This release includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, important information regarding such measures is contained in the Tables attached to this release. See Tables 8a, 8b and 9 for definitions of these non-GAAP financial measures and Tables 1a, 5, 6a, 6b, 7, 8a and 8b for reconciliations of the historical non-GAAP financial measures to their most comparable GAAP terms. Investor Contacts: Media Contacts: Alicia Swift Trey Sarten (973) 407-4669 (973) 407-2162 Tim Swanson Gabriella Chiera (973) 407-2612 (973) 407-5236   Table 1 ANYWHERE REAL ESTATE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended March 31, 2024 2023 Revenues Gross commission income $            907 $            903 Service revenue 119 127 Franchise fees 70 69 Other 30 32 Net revenues 1,126 1,131 Expenses Commission and other agent-related costs 726 723 Operating 273 286 Marketing 45 49 General and administrative 99 123 Former parent legacy cost, net 1 16 Restructuring costs, net 11 25 Impairments 6 4 Depreciation and amortization 55 50 Interest expense, net 39 38 Other income, net (1) (1) Total expenses 1,254 1,313 Loss before income taxes, equity in losses and noncontrolling interests (128) (182) Income tax benefit (28) (46) Equity in losses of unconsolidated entities 1 2 Net loss (101) (138) Less: Net income attributable to noncontrolling interests — — Net loss attributable to Anywhere $          (101) $          (138) Loss per share attributable to Anywhere shareholders: Basic loss per share $         (0.91) $         (1.26) Diluted loss per share $         (0.91) $         (1.26) Weighted average common and common equivalent shares of Anywhere outstanding: Basic 110.7 109.8 Diluted 110.7 109.8   Table 1a ANYWHERE REAL ESTATE INC. NON-GAAP RECONCILIATION ADJUSTED NET INCOME (LOSS) (In millions, except per share data) Set forth in the table below is a reconciliation of Net loss attributable to Anywhere to Adjusted net loss as defined in Table 9 for the three-month periods ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Net loss attributable to Anywhere $             (101) $             (138) Addback: Former parent legacy cost, net (a) 1 16 Restructuring costs, net 11 25 Impairments 6 4 Gain on the sale of businesses, investments or other assets, net — (1) Adjustments for tax effect (b) (5) (12) Adjusted net loss attributable to Anywhere $               (88) $             (106) _______________ (a) Former parent legacy cost relates to a legacy tax matter. (b) Reflects tax effect of adjustments at the Company's blended state and federal statutory rate.   Table 2 ANYWHERE REAL ESTATE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $            111 $            106 Restricted cash 4 13 Trade receivables (net of allowance for doubtful accounts of $18 for both periods presented) 109 105 Relocation receivables 147 138 Other current assets 226 218 Total current assets 597 580 Property and equipment, net 261 280 Operating lease assets, net 369 380 Goodwill 2,499 2,499 Trademarks 586 586 Franchise agreements, net 871 887 Other intangibles, net 122 127 Other non-current assets 494 500 Total assets $         5,799 $        5,839 LIABILITIES AND EQUITY Current liabilities: Accounts payable $               88 $              99 Securitization obligations 110 115 Current portion of long-term debt 639 307 Current portion of operating lease liabilities 112 113 Accrued expenses and other current liabilities 526 573 Total current liabilities 1,475 1,207 Long-term debt 2,053 2,235 Long-term operating lease liabilities 325 333 Deferred income taxes 179 207 Other non-current liabilities 187 176 Total liabilities 4,219 4,158 Commitments and contingencies Equity: Anywhere preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued and  outstanding at March 31, 2024 and December 31, 2023 — — Anywhere common stock: $0.01 par value; 400,000,000 shares authorized, 111,099,426 shares  issued and outstanding at March 31, 2024 and 110,488,093 shares issued and outstanding at  December 31, 2023 1 1 Additional paid-in capital 4,814 4,813 Accumulated deficit (3,192) (3,091) Accumulated other comprehensive loss (45) (44) Total stockholders' equity 1,578 1,679 Noncontrolling interests 2 2 Total equity 1,580 1,681 Total liabilities and equity $         5,799 $        5,839