Guild Holdings Company Reports First Quarter 2024 Results
Guild Holdings Company (NYSE: GHLD) reported strong first quarter 2024 results with originations of $3.9 billion, net revenue of $231.8 million, and net income of $28.5 million. The company acquired Academy Mortgage , declared a special dividend of $0.50 per share, and remains focused on delivering the promise of homeownership through growth, market share gains, and technology innovation.
Originated 91% of closed loan origination volume from purchase business, outperforming industry estimates.
Servicing segment net income increased to $83.9 million in the first quarter.
Company's balanced business model, strong balance sheet position, and capital priorities position it for growth and innovation in the current market landscape.
Adjusted return on equity decreased to 2.7% in the first quarter.
Adjusted net income and adjusted EBITDA decreased to $8.0 million and $16.0 million, respectively.
Insights
Guild Holdings Company's first quarter of 2024 indicates a substantial rebound with a 131% increase in net income compared to the prior quarter. This improvement is reflected by a 6% growth in total originations and an impressive 305% surge in net revenue. The acquisition of Academy Mortgage Corporation could be a strategic move to strengthen their market presence and reinforce the origination business.
While Return on Equity (ROE) improved dramatically to 9.5%, Adjusted ROE decreased to 2.7%, signifying a mixed performance when considering adjusted financial measures. The special dividend of
The significant uptick in purchase originations (91% of the total) compared to the industry average of 77%, as per the Mortgage Bankers Association estimate, showcases Guild's competitive advantage in attracting homeowners despite the challenging conditions of higher interest rates and limited housing inventory. However, the mismatch between the 10% increase in gain on sale margin and a 16% decrease in the same on pull-through adjusted locked volume indicates potential volatility in revenue consistency.
Investors should monitor the integration of Academy Mortgage Corporation's operations within Guild's ecosystem, as it could either lead to synergy savings and growth or present challenges that may impact future earnings.
Despite positive quarterly results, there are underlying risks to consider. The market's interest rate risks are mitigated by Guild’s servicing business, suggesting a balanced approach to earnings stability. The attention given to technology and servicing capabilities investment is a proactive approach to maintaining a competitive edge. Liquidity strength is evident in the company’s cash position and unutilized loan funding capacity, which is important for navigating uncertain economic conditions.
Nonetheless, the leverage ratio of 1.6x should be gauged against industry benchmarks, as a higher ratio may affect financial flexibility. The share repurchase program reflects management's belief in the intrinsic value of the stock, but investors should balance this against the potential need for capital for further business investments or market downturns.
-
Originations of
$3.9 Billion -
Net Revenue of
$231.8 Million -
Net Income Attributable to Guild of
$28.5 Million -
Adjusted Net Income of
$8.0 Million -
Return on Equity of
9.5% and Adjusted Return on Equity of2.7% - Gain on Sale Margin on Originations of 364 bps
-
91% of Originations were Purchase Originations in the First Quarter -
Acquired Academy Mortgage Corporation, a
Utah -based lender with 600+ Originators -
Special Dividend of
$0.50
“I am pleased to report that our first quarter results demonstrate the continued success and disciplined execution of our strategy with growth in originations, market share gains, and the addition of more than 600 licensed loan originators,” stated Terry Schmidt, Guild Chief Executive Officer. “These results come against the backdrop of a persistent period of elevated interest rates and tight housing inventory, and they reflect our consistent ability to outperform the broader market by committing to our core mission to deliver the promise of home to homebuyers through our leading product set, proprietary end-to-end technology stack, and local, relationship-based approach.”
Ms. Schmidt continued, “During the quarter, we completed the acquisition of Academy Mortgage. As is typical with an acquisition, there is an impact as it ramps, but we are pleased to report the acquired Academy branches are now operating on the Guild platform and will begin to deliver origination volume in the coming quarters. Our balanced business model, with both our originations and servicing businesses, positions us for earnings stability in this uncertain rate environment and persistent period of limited home inventories. With our strong balance sheet position, we are executing judiciously across all our capital priorities including investing in our organic growth, selectively pursuing accretive acquisitions, and enhancing technology and servicing capabilities, while also returning capital to stockholders. We firmly believe that Guild is well-positioned to navigate the current landscape and capitalize on opportunities to grow market share and innovate new ways to make the promise of homeownership more attainable for our clients.”
First Quarter 2024 Highlights |
|
Total originations of |
|
Originated |
|
|
Net revenue of |
|
|
Net income attributable to Guild of |
|
|
Servicing portfolio unpaid principal balance of |
|
|
Adjusted net income and adjusted EBITDA totaled |
|
|
Return on equity of |
Other Highlights Subsequent to Quarter End
On May 8, 2024, the Company's Board of Directors declared a special cash dividend of
First Quarter Summary
Please refer to “Key Performance Indicators” and “GAAP to Non-GAAP Reconciliations” elsewhere in this release for a description of the key performance indicators and definitions of the non-GAAP measures and reconciliations to the nearest comparable financial measures calculated and presented in accordance with accounting principles generally accepted in
($ amounts in millions, except per share amounts) |
1Q'24 |
4Q'23 |
%∆ |
YTD'24 |
YTD'23 |
%∆ |
Total originations |
|
|
6 % |
|
|
40 % |
Gain on sale margin on originations (bps) |
364 |
330 |
10 % |
364 |
343 |
6 % |
Gain on sale margin on pull-through adjusted locked volume (bps) |
290 |
347 |
(16) % |
290 |
284 |
2 % |
UPB of servicing portfolio (period end) |
|
|
2 % |
|
|
8 % |
Net revenue |
|
|
305 % |
|
|
123 % |
Total expenses |
|
|
9 % |
|
|
25 % |
Net income (loss) attributable to Guild |
|
( |
131 % |
|
( |
177 % |
Return on equity |
9.5 % |
( |
131 % |
|
( |
179 % |
Adjusted net income (loss) |
|
|
(36) % |
|
( |
426 % |
Adjusted EBITDA |
|
|
21 % |
|
|
1297 % |
Adjusted return on equity |
2.7 % |
4.1 % |
(34) % |
2.7 % |
(0.8) % |
437 % |
Earnings (loss) per share |
|
( |
131 % |
|
( |
177 % |
Diluted earnings (loss) per share |
|
( |
130 % |
|
( |
175 % |
Adjusted earnings (loss) per share |
|
|
(38) % |
|
( |
425 % |
Adjusted diluted earnings (loss) per share |
|
|
(35) % |
|
( |
425 % |
Origination Segment Results
Origination segment net loss was
($ amounts in millions) |
1Q'24 |
4Q'23 |
%∆ |
YTD'24 |
YTD'23 |
%∆ |
Total originations |
|
|
6 % |
|
|
40 % |
Total origination units (000’s) |
12 |
12 |
— % |
12 |
9 |
33 % |
Net revenue |
|
|
16 % |
|
|
47 % |
Total expenses |
|
|
11 % |
|
|
28 % |
Net loss allocated to origination |
( |
( |
10 % |
( |
( |
26 % |
Servicing Segment Results
Servicing segment net income was
In the first quarter of 2024, valuation adjustments with respect to the Company’s MSRs totaled a gain of
($ amounts in millions) |
1Q'24 |
4Q'23 |
%∆ |
YTD'24 |
YTD'23 |
%∆ |
UPB of servicing portfolio (period end) |
|
|
2 % |
|
|
8 % |
# Loans serviced (000’s) (period end) |
349 |
345 |
1 % |
349 |
328 |
6 % |
Loan servicing and other fees |
|
|
3 % |
|
|
10 % |
Valuation adjustment of MSRs |
|
( |
115 % |
|
( |
138 % |
Net revenue |
|
( |
265 % |
|
|
647 % |
Total expenses |
|
|
5 % |
|
|
1 % |
Net income (loss) allocated to servicing |
|
( |
216 % |
|
( |
NM |
Share Repurchase Program
During the three months ended March 31, 2024, the Company repurchased and subsequently retired 17,747 shares of Guild's Class A common stock at an average purchase price of
Balance Sheet and Liquidity Highlights
The Company’s cash and cash equivalents position was
(in millions, except per share amounts) |
March 31, 2024 |
December 31, 2023 |
||
Cash and cash equivalents |
$ |
95.1 |
$ |
120.3 |
Mortgage servicing rights, at fair value |
$ |
1,216.5 |
$ |
1,161.4 |
Warehouse lines of credit, net |
$ |
1,058.0 |
$ |
833.8 |
Notes payable |
$ |
185.0 |
$ |
148.8 |
Total stockholders’ equity |
$ |
1,214.2 |
$ |
1,183.5 |
|
|
|
||
Tangible net book value per share(1) |
$ |
16.05 |
$ |
15.90 |
(1) |
See “GAAP to Non-GAAP Reconciliation” for a description of this non-GAAP measure and reconciliation to the nearest comparable financial measures calculated and presented in accordance with GAAP. |
|||
Webcast and Conference Call
The Company will host a webcast and conference call on Thursday, May 9, 2024 at 5 p.m. Eastern Time to discuss the Company’s results for the first quarter ended March 31, 2024.
The conference call will be available on the Company's website at https://ir.guildmortgage.com/. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. The conference call can also be accessed by the following dial-in information:
- 1-877-407-0789 (Domestic)
- 1-201-689-8562 (International)
A replay of the call will be available on the Company's website at https://ir.guildmortgage.com/ approximately two hours after the live call through May 23, 2024. The replay is also available by dialing 1-844-512-2921 (
About Guild Holdings Company
Founded in 1960 when the modern
Forward-Looking Statements
This press release and a related presentation by management of Guild Holdings Company (the “Company”) contains forward-looking statements, including statements about the Company’s growth strategies, the Company’s future revenue, operating performance or capital position, ongoing pursuit of M&A opportunities, expectations for benefits from recent acquisitions, such as increased market share and origination volume, expectations regarding home sales and mortgage activity, the impact of future interest rate environments and any other statements that are not historical facts. These forward-looking statements reflect our current expectations and judgments about future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature.
Important factors that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements include, but are not limited to, the following: any disruptions in the secondary home loan market and their effects on our ability to sell the loans that we originate; any changes in macroeconomic and
Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we undertake no obligation to update any forward-looking statement made in this press release or any related presentation by Company management.
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we disclose certain financial measures for our consolidated and operating segment results on both a GAAP and a non-GAAP (adjusted) basis. The non-GAAP financial measures disclosed should be viewed in addition to, and not as an alternative to, results prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies.
Adjusted net income. Net income (loss) is the most directly comparable financial measure calculated and presented in accordance with GAAP for adjusted net income, a non-GAAP measure. We define adjusted net income as earnings or loss attributable to Guild excluding (i) the change in the fair value measurements related to our MSRs due to changes in model inputs and assumptions, (ii) change in the fair value of contingent liabilities related to completed acquisitions, net of change in the fair value of notes receivable related to acquisitions, (iii) amortization of acquired intangible assets and (iv) stock-based compensation. We exclude these items because we believe they are non-cash expenses that are not reflective of our core operations or indicative of our ongoing operations. Adjusted net income is also adjusted by applying an estimated effective tax rate to these adjustments. We exclude the change in the fair value of MSRs due to changes in model inputs and assumptions from adjusted net income and adjusted EBITDA below because we believe this non-cash, non-realized adjustment to net revenues is not indicative of our operating performance or results of operations but rather reflects changes in model inputs and assumptions (e.g., prepayment speed, discount rate and cost to service assumptions) that impact the carrying value of our MSRs from period to period.
Adjusted earnings per share—Basic and Diluted. Earnings per share is the most directly comparable financial measure calculated and presented in accordance with GAAP for adjusted earnings per share, a non-GAAP measure. We define adjusted earnings per share as our adjusted net income divided by the basic and diluted weighted average shares outstanding of our Class A and Class B common stock. Diluted weighted average shares outstanding is adjusted include potential shares of Class A common stock related to unvested RSUs that were excluded from the calculation of GAAP diluted loss per share because they were anti-dilutive due to the net loss, when applicable.
Adjusted EBITDA. Net income (loss) is the most directly comparable financial measure calculated and presented in accordance with GAAP for adjusted EBITDA, a non-GAAP measure. We define adjusted EBITDA as earnings before (i) interest expense on non-funding debt (without adjustment for net warehouse interest related to loan fundings and payoff interest related to loan prepayments), (ii) taxes, (iii) depreciation and amortization and (iv) net income attributable to the non-controlling interests and excluding (v) any change in the fair value measurements of our MSRs due to valuation assumptions, (vi) change in the fair value of contingent liabilities related to completed acquisitions, net of change in the fair value of notes receivable related to acquisitions and (vii) stock-based compensation. We exclude these items because we believe they are not reflective of our core operations or indicative of our ongoing operations.
Adjusted return on equity. Return on equity is the most directly comparable financial measure calculated and presented in accordance with GAAP for adjusted return on equity, a non-GAAP measure. We define adjusted return on equity as annualized adjusted net income as a percentage of average beginning and ending stockholders’ equity during the period.
Tangible net book value per share. Book value per share is the most directly comparable financial measure calculated and presented in accordance with GAAP for tangible net book value per share. We define tangible net book value per share as total stockholders’ equity attributable to Guild, less goodwill and intangible assets, net divided by the total shares of our Class A and Class B common stock outstanding. The most directly comparable GAAP financial measure for tangible net book value per share is book value per share.
We use these non-GAAP financial measures (other than tangible net book value per share) to evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. These non-GAAP financial measures are designed to evaluate operating results exclusive of fair value and other adjustments that are not indicative of our business’s operating performance. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. In addition, management uses the non-GAAP financial measure of tangible net book value per share to evaluate the adequacy of our stockholders’ equity and assess our capital position and believes tangible net book value provides useful information to investors in assessing the strength of our financial position.
For more information on these non-GAAP financial measures, please see the “GAAP to Non-GAAP Reconciliations” included at the end of this release.
Condensed Consolidated Balance Sheets (unaudited) |
||||||
(in thousands, except share and per share amounts) |
|
Mar 31,
|
|
Dec 31,
|
||
Assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
95,148 |
|
$ |
120,260 |
Restricted cash |
|
|
6,654 |
|
|
7,121 |
Mortgage loans held for sale, at fair value |
|
|
1,126,159 |
|
|
901,227 |
Reverse mortgage loans held for investment, at fair value |
|
|
348,076 |
|
|
315,912 |
Ginnie Mae loans subject to repurchase right |
|
|
653,978 |
|
|
699,622 |
Mortgage servicing rights, at fair value |
|
|
1,216,483 |
|
|
1,161,357 |
Advances, net |
|
|
56,226 |
|
|
64,748 |
Property and equipment, net |
|
|
14,495 |
|
|
13,913 |
Right-of-use assets |
|
|
75,979 |
|
|
65,273 |
Goodwill and intangible assets, net |
|
|
232,881 |
|
|
211,306 |
Other assets |
|
|
129,973 |
|
|
115,981 |
Total assets |
|
$ |
3,956,052 |
|
$ |
3,676,720 |
Liabilities and stockholders’ equity |
|
|
|
|
||
Warehouse lines of credit, net |
|
$ |
1,057,957 |
|
$ |
833,781 |
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings |
|
|
326,804 |
|
|
302,183 |
Ginnie Mae loans subject to repurchase right |
|
|
658,018 |
|
|
700,120 |
Notes payable |
|
|
185,000 |
|
|
148,766 |
Accounts payable and accrued expenses |
|
|
74,817 |
|
|
63,432 |
Operating lease liabilities |
|
|
86,311 |
|
|
75,832 |
Deferred tax liabilities |
|
|
234,146 |
|
|
225,021 |
Other liabilities |
|
|
118,849 |
|
|
144,092 |
Total liabilities |
|
|
2,741,902 |
|
|
2,493,227 |
Commitments and contingencies |
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Class A common stock, |
|
|
208 |
|
|
208 |
Class B common stock, |
|
|
403 |
|
|
403 |
Additional paid-in capital |
|
|
49,024 |
|
|
47,158 |
Retained earnings |
|
|
1,163,905 |
|
|
1,135,387 |
Non-controlling interests |
|
|
610 |
|
|
337 |
Total stockholders' equity |
|
|
1,214,150 |
|
|
1,183,493 |
Total liabilities and stockholders’ equity |
|
$ |
3,956,052 |
|
$ |
3,676,720 |
Condensed Consolidated Statements of Operations (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
(in thousands, except per share amounts) |
Mar 31,
|
|
Dec 31,
|
|
Mar 31,
|
|
Mar 31,
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Loan origination fees and gain on sale of loans, net |
$ |
134,060 |
|
|
$ |
113,601 |
|
|
$ |
134,060 |
|
|
$ |
92,651 |
|
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net |
|
3,230 |
|
|
|
3,172 |
|
|
|
3,230 |
|
|
|
— |
|
Loan servicing and other fees |
|
65,788 |
|
|
|
63,905 |
|
|
|
65,788 |
|
|
|
60,087 |
|
Valuation adjustment of mortgage servicing rights |
|
20,778 |
|
|
|
(134,656 |
) |
|
|
20,778 |
|
|
|
(54,871 |
) |
Interest income |
|
24,728 |
|
|
|
28,227 |
|
|
|
24,728 |
|
|
|
18,245 |
|
Interest expense |
|
(16,541 |
) |
|
|
(17,379 |
) |
|
|
(16,541 |
) |
|
|
(12,262 |
) |
Other (expense) income, net |
|
(261 |
) |
|
|
364 |
|
|
|
(261 |
) |
|
|
35 |
|
Net revenue |
|
231,782 |
|
|
|
57,234 |
|
|
|
231,782 |
|
|
|
103,885 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Salaries, incentive compensation and benefits |
|
140,067 |
|
|
|
131,201 |
|
|
|
140,067 |
|
|
|
111,120 |
|
General and administrative |
|
29,211 |
|
|
|
23,073 |
|
|
|
29,211 |
|
|
|
20,883 |
|
Occupancy, equipment and communication |
|
19,815 |
|
|
|
18,108 |
|
|
|
19,815 |
|
|
|
17,430 |
|
Depreciation and amortization |
|
3,754 |
|
|
|
3,517 |
|
|
|
3,754 |
|
|
|
3,738 |
|
Provision for foreclosure losses |
|
392 |
|
|
|
634 |
|
|
|
392 |
|
|
|
1,514 |
|
Total expenses |
|
193,239 |
|
|
|
176,533 |
|
|
|
193,239 |
|
|
|
154,685 |
|
Income (loss) before income tax expense (benefit) |
|
38,543 |
|
|
|
(119,299 |
) |
|
|
38,543 |
|
|
|
(50,800 |
) |
Income tax expense (benefit) |
|
10,143 |
|
|
|
(26,178 |
) |
|
|
10,143 |
|
|
|
(13,605 |
) |
Net income (loss) |
|
28,400 |
|
|
|
(93,121 |
) |
|
|
28,400 |
|
|
|
(37,195 |
) |
Net loss attributable to non-controlling interests |
|
(98 |
) |
|
|
(117 |
) |
|
|
(98 |
) |
|
|
(5 |
) |
Net income (loss) attributable to Guild |
$ |
28,498 |
|
|
$ |
(93,004 |
) |
|
$ |
28,498 |
|
|
$ |
(37,190 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to Class A and Class B Common Stock: |
|
|
|
|
|||||||||||
Basic |
$ |
0.47 |
|
|
$ |
(1.52 |
) |
|
$ |
0.47 |
|
|
$ |
(0.61 |
) |
Diluted |
$ |
0.46 |
|
|
$ |
(1.52 |
) |
|
$ |
0.46 |
|
|
$ |
(0.61 |
) |
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|||||||||||
Basic |
|
61,109 |
|
|
|
61,049 |
|
|
|
61,109 |
|
|
|
60,900 |
|
Diluted |
|
62,157 |
|
|
|
61,049 |
|
|
|
62,157 |
|
|
|
60,900 |
|
Key Performance Indicators
Management reviews several key performance indicators to evaluate our business results, measure our performance and identify trends to inform our business decisions. Summary data for these key performance indicators is listed below.
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
($ and units in thousands) |
Mar 31,
|
|
Dec 31,
|
|
Mar 31,
|
|
Mar 31,
|
||||||||
Origination Data |
|
|
|
|
|
|
|
||||||||
Total originations(1) |
$ |
3,852,539 |
|
|
$ |
3,624,269 |
|
|
$ |
3,852,539 |
|
|
$ |
2,743,130 |
|
Total originations (units)(2) |
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
9 |
|
Gain on sale margin (bps)(3) |
|
364 |
|
|
|
330 |
|
|
|
364 |
|
|
|
343 |
|
Pull-through adjusted locked volume(4) |
$ |
4,618,203 |
|
|
$ |
3,275,367 |
|
|
$ |
4,618,203 |
|
|
$ |
3,258,998 |
|
Gain on sale margin on pull-through adjusted locked volume (bps)(5) |
|
290 |
|
|
|
347 |
|
|
|
290 |
|
|
|
284 |
|
Purchase recapture rate(6) |
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
24 |
% |
Refinance recapture rate(7) |
|
26 |
% |
|
|
19 |
% |
|
|
26 |
% |
|
|
30 |
% |
Purchase origination % |
|
91 |
% |
|
|
93 |
% |
|
|
91 |
% |
|
|
92 |
% |
Servicing Data |
|
|
|
|
|
|
|
||||||||
UPB (period end)(8) |
$ |
86,319,074 |
|
|
$ |
85,033,899 |
|
|
$ |
86,319,074 |
|
|
$ |
79,916,577 |
|
(1) |
Total originations includes retail forward and reverse, brokered, wholesale and correspondent loans. |
(2) |
Total origination units excludes second lien mortgages originated at the same time as the first mortgage or shortly thereafter. |
(3) |
Represents loan origination fees and gain on sale of loans, net plus gain on reverse mortgage loans held for investment and HMBS-related borrowings, net divided by total originations, excluding brokered loans, to derive basis points. |
(4) |
Pull-through adjusted locked volume is equal to total locked volume, which excludes reverse loans, multiplied by pull-through rates of |
(5) |
Represents loan origination fees and gain on sale of loans, net divided by pull-through adjusted locked volume. |
(6) |
Purchase recapture rate is calculated as the ratio of (i) UPB of our clients that originated a new mortgage with us for the purchase of a home in a given period, to (ii) total UPB of our clients that paid off their existing mortgage as a result of selling their home in a given period. |
(7) |
Refinance recapture rate is calculated as the ratio of (i) UPB of our clients that originated a new mortgage loan for the purpose of refinancing an existing mortgage with us in a given period, to (ii) total UPB of our clients that paid off their existing mortgage as a result of refinancing their home in the same period. |
(8) |
Excludes reverse mortgage loans of |
GAAP to Non-GAAP Reconciliations Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Earnings (Loss) Per Share to Adjusted Earnings (Loss) Per Share (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
(in millions, except per share amounts) |
Mar 31,
|
|
Dec 31,
|
|
Mar 31,
|
|
Mar 31,
|
||||||||
Net income (loss) attributable to Guild |
$ |
28.5 |
|
|
$ |
(93.0 |
) |
|
$ |
28.5 |
|
|
$ |
(37.2 |
) |
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Change in fair value of MSRs due to model inputs and assumption |
|
(32.9 |
) |
|
|
122.3 |
|
|
|
(32.9 |
) |
|
|
43.7 |
|
Change in fair value of contingent liabilities and notes receivable due to acquisitions, net |
|
1.1 |
|
|
|
1.2 |
|
|
|
1.1 |
|
|
|
— |
|
Amortization of acquired intangible assets |
|
2.2 |
|
|
|
2.0 |
|
|
|
2.2 |
|
|
|
2.0 |
|
Stock-based compensation |
|
2.1 |
|
|
|
2.2 |
|
|
|
2.1 |
|
|
|
1.8 |
|
Tax impact of adjustments(1) |
|
7.0 |
|
|
|
(22.1 |
) |
|
|
7.0 |
|
|
|
(12.7 |
) |
Adjusted net income (loss) |
$ |
8.0 |
|
|
$ |
12.5 |
|
|
$ |
8.0 |
|
|
$ |
(2.5 |
) |
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
|
61.1 |
|
|
|
61.0 |
|
|
|
61.1 |
|
|
|
60.9 |
|
Diluted |
|
62.2 |
|
|
|
61.0 |
|
|
|
62.2 |
|
|
|
60.9 |
|
Adjusted diluted(2) |
|
62.2 |
|
|
|
61.8 |
|
|
|
62.2 |
|
|
|
60.9 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share—Basic |
$ |
0.47 |
|
|
$ |
(1.52 |
) |
|
$ |
0.47 |
|
|
$ |
(0.61 |
) |
Earnings (loss) per share—Diluted |
$ |
0.46 |
|
|
$ |
(1.52 |
) |
|
$ |
0.46 |
|
|
$ |
(0.61 |
) |
Adjusted earnings (loss) per share—Basic |
$ |
0.13 |
|
|
$ |
0.21 |
|
|
$ |
0.13 |
|
|
$ |
(0.04 |
) |
Adjusted earnings (loss) per share—Diluted |
$ |
0.13 |
|
|
$ |
0.20 |
|
|
$ |
0.13 |
|
|
$ |
(0.04 |
) |
Amounts may not foot due to rounding
(1) |
Calculated using the estimated effective tax rate of |
(2) |
Adjusted diluted weighted average shares outstanding of Class A and Class B Common Stock for the three months ended December 31, 2023 includes |
Reconciliation of Net Income (Loss) to Adjusted EBITDA (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
(in millions) |
Mar 31,
|
|
Dec 31,
|
|
Mar 31,
|
|
Mar 31,
|
||||||||
Net income (loss) |
$ |
28.4 |
|
|
$ |
(93.1 |
) |
|
$ |
28.4 |
|
|
$ |
(37.2 |
) |
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense on non-funding debt |
|
3.3 |
|
|
|
3.2 |
|
|
|
3.3 |
|
|
|
2.8 |
|
Income tax expense (benefit) |
|
10.1 |
|
|
|
(26.2 |
) |
|
|
10.1 |
|
|
|
(13.6 |
) |
Depreciation and amortization |
|
3.8 |
|
|
|
3.5 |
|
|
|
3.8 |
|
|
|
3.7 |
|
Change in fair value of MSRs due to model inputs and assumptions |
|
(32.9 |
) |
|
|
122.3 |
|
|
|
(32.9 |
) |
|
|
43.7 |
|
Change in fair value of contingent liabilities and notes receivable due to acquisitions, net |
|
1.1 |
|
|
|
1.2 |
|
|
|
1.1 |
|
|
|
— |
|
Stock-based compensation |
|
2.1 |
|
|
|
2.2 |
|
|
|
2.1 |
|
|
|
1.8 |
|
Adjusted EBITDA |
$ |
16.0 |
|
|
$ |
13.2 |
|
|
$ |
16.0 |
|
|
$ |
1.1 |
|
Amounts may not foot due to rounding
Reconciliation of Return on Equity to Adjusted Return on Equity (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
($ in millions) |
Mar 31,
|
|
Dec 31,
|
|
Mar 31,
|
|
Mar 31,
|
||||||||
Income Statement Data: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Guild |
$ |
28.5 |
|
|
$ |
(93.0 |
) |
|
$ |
28.5 |
|
|
$ |
(37.2 |
) |
Adjusted net income (loss) |
$ |
8.0 |
|
|
$ |
12.5 |
|
|
$ |
8.0 |
|
|
$ |
(2.5 |
) |
|
|
|
|
|
|
|
|
||||||||
Average stockholders’ equity |
$ |
1,198.8 |
|
|
$ |
1,230.2 |
|
|
$ |
1,198.8 |
|
|
$ |
1,231.3 |
|
Return on equity |
|
9.5 |
% |
|
|
(30.2 |
%) |
|
|
9.5 |
% |
|
|
(12.1 |
%) |
Adjusted return on equity |
|
2.7 |
% |
|
|
4.1 |
% |
|
|
2.7 |
% |
|
|
(0.8 |
%) |
Reconciliation of Book Value Per Share to Tangible Net Book Value Per Share (unaudited) |
||||||||
(in millions, except per share amounts) |
|
Mar 31,
|
|
Dec 31,
|
||||
Total stockholders' equity |
|
$ |
1,214.2 |
|
|
$ |
1,183.5 |
|
Less: non-controlling interests |
|
|
0.6 |
|
|
|
0.3 |
|
Total stockholders' equity attributable to Guild |
|
$ |
1,213.5 |
|
|
$ |
1,183.2 |
|
Adjustments: |
|
|
|
|
||||
Goodwill |
|
|
(198.7 |
) |
|
|
(186.2 |
) |
Intangible assets, net |
|
|
(34.2 |
) |
|
|
(25.1 |
) |
Tangible common equity |
|
$ |
980.7 |
|
|
$ |
971.9 |
|
|
|
|
|
|
||||
Ending shares of Class A and Class B common stock outstanding |
|
|
61.1 |
|
|
|
61.1 |
|
|
|
|
|
|
||||
Book value per share |
|
$ |
19.86 |
|
|
$ |
19.36 |
|
Tangible net book value per share(1) |
|
$ |
16.05 |
|
|
$ |
15.90 |
|
Amounts may not foot due to rounding
(1) |
Tangible net book value per share uses the same denominator as book value per share. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509658416/en/
Investors:
investors@guildmortgage.net
858-956-5130
Media:
Melissa Rue
Nuffer, Smith, Tucker
mkr@nstpr.com
619-296-0605 Ext. 247
Source: Guild Holdings Company
FAQ
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