Realogy Reports Third Quarter 2021 Financial Results

MADISON, N.J., Oct. 28, 2021

"Realogy delivered powerful third quarter results with terrific top- and bottom-line performance, market share gains for the fifth consecutive quarter, impressive free cash flow, and an even stronger capital structure," said Ryan Schneider, Realogy's chief executive officer and president. "We are excited by our strategic progress throughout 2021, especially across Realogy's market-leading luxury positions, differentiated RealSure venture, and continued technology innovation as we proactively transform the future of real estate."

"In the third quarter, Realogy drove excellent financial performance, delivering $273 million in Operating EBITDA and generating $282 million of free cash flow, as we significantly strengthened our capital structure," said Charlotte Simonelli, Realogy's executive vice president, chief financial officer, and treasurer. "Realogy is making incredible progress, proactively repaying $435 million of debt in September, consistently delivering quality financial results, and strategically investing to unlock additional value for shareholders."

Third Quarter 2021 Highlights

• Generated Revenue of $2.2 billion, an increase of 15% or $277 million year-over-year.
• Reported Net income of $114 million and basic earnings per share of $0.98, an increase of $16 million or $0.13 per share vs. prior year.
• Generated Operating EBITDA of $273 million, a decrease of $40 million year-over-year. The third quarter of 2020 included approximately $40 million in temporary cost savings (See Table 5a).
• Net Debt Leverage Ratio of 2.3x and Senior Secured Leverage Ratio of negative 0.27x at September 30, 2021 (See Tables 8a and 8b).
• Repaid $435 million of debt, including all outstanding Term Loan B and the non-extended portion of the Term Loan A.
• Reported Free Cash Flow of $282 million in the third quarter of 2021 and $458 million year to date September 30, 2021 (See Table 7).
• Combined closed transaction volume increased 12% year-over-year in the third quarter of 2021 driving market share gains for the fifth consecutive quarter. Our transaction volume growth was above the 9% year-over-year market volume growth reported by the National Association of Realtors (NAR).
• Owned Brokerage agent count grew 5% year-over-year, with growth for the 5th consecutive quarter, and continued to maintain strong retention levels.
• Strong cost management with $80 million in permanent cost savings expected in 2021 with actions taken for approximately 90% of the target savings and $70 million realized in the income statement through September 30, 2021.

Third Quarter 2021 Financial Highlights
The following table sets forth Realogy's financial highlights for the periods presented (in millions, except per share data) (unaudited):