Anywhere Real Estate Inc. (NYSE: HOUS), a global leader in residential real estate services, has released its financial results for the third quarter ended September 30, 2024. The company reported a decrease of 3% in revenue, amounting to $1.5 billion. Despite this, Anywhere delivered strong operating EBITDA and free cash flow, invested in future growth, gained luxury market share, and strengthened its balance sheet.
Ryan Schneider, President and CEO of Anywhere, expressed pride in the company’s third-quarter performance, highlighting its strategic strengths, profitability, and the value delivered by its affiliated agents, franchisees, and employees. Charlotte Simonelli, Executive Vice President, CFO, and Treasurer, emphasized the company’s differentiated profitability, optimized balance sheet, and increased financial flexibility.
In terms of transaction volume, Anywhere’s luxury brands, Corcoran and Sotheby’s International Realty, outperformed the market with a 5% growth in the third quarter. However, overall closed transaction volume remained flat year-over-year, with a 5% decrease in units and a 6% increase in prices.
Net income for the quarter was $7 million, a decrease of $122 million compared to the same period last year. This decline was primarily attributed to the absence of gains from early debt extinguishment, which amounted to $7 million in the third quarter of 2024, compared to $169 million in the previous year. Adjusted net income was $6 million, down $11 million from 2023.
Operating EBITDA for the quarter was $94 million, a $13 million decrease year-over-year. Anywhere realized cost savings of approximately $30 million during the quarter and is on track to achieve $120 million in cost savings for the full year.
Agent commission splits in the third quarter increased by 15 basis points year-over-year to 80.4%, marking the 10th consecutive quarter of stable commission splits at around 80%.
Free cash flow for the quarter was $99 million, compared to $95 million for the corresponding quarter last year. Anywhere utilized its cash flow to repay its $196 million Term Loan A and repurchased $26 million of unsecured notes for $19 million.
Preliminary results for October 2024 indicate a positive trend, with closed transaction volume up approximately 9% year-over-year and open transaction volume, representing new contracts and future closings, up approximately 16% year-over-year.
Anywhere’s AI-enhanced marketing platform, Listing Concierge, received the Inman AI Award for Best Use of AI by a Brokerage in October 2024. The company was also recognized by Forbes as a World’s Best Employer for the fourth consecutive year.
Looking ahead, Anywhere expects to realize $120 million in cost savings in 2024. The company estimates its free cash flow, excluding one-time items, to be approximately $100 million. These estimates are subject to various macroeconomic and housing market uncertainties, as well as competitive, litigation, and regulatory factors.
With a total corporate debt of $2.5 billion at September 30, 2024, Anywhere aims to maintain a strong balance sheet. The company’s Senior Secured Leverage Ratio was 1.32x, and the Net Debt Leverage Ratio was 7.4x at the end of the quarter.