Guild Holdings Company Reports Fourth Quarter and Full Year 2023 Results
- Total in-house originations of $15.0 billion in 2023, with $3.5 billion in the fourth quarter
- Net revenue of $0.7 billion in 2023, including $57.2 million in the fourth quarter
- Net loss of $39.1 million in 2023, with $93.1 million in the fourth quarter
- Adjusted net income of $48.0 million in 2023, including $12.5 million in the fourth quarter
- Expanded market share with acquisitions and extended share repurchase program
- Acquisition of Academy Mortgage to become the 8th largest non-bank retail mortgage lender
- Decline in net revenue and adjusted net income compared to the prior year
- Servicing segment net loss of $72.1 million in the fourth quarter
- Share repurchase program and extension of the program
- Cash and cash equivalents of $120.3 million as of December 31, 2023
- Net loss of $39.1 million in 2023
- Decrease in adjusted net income and adjusted EBITDA compared to the prior year
- Valuation adjustments with respect to MSRs resulting in a loss of $134.7 million in the fourth quarter
- Decrease in gain on sale margins on originations and pull-through adjusted locked volume
Insights
The reported figures indicate a substantial year-over-year decline in net income and a shift from a net gain in the previous year to a net loss in the current year. The reduction in total in-house originations by 22% and net revenue by 44% reflect a challenging environment for the mortgage industry, likely due to higher interest rates and a cooling housing market. The gain on sale margin contraction signifies tightening profitability, which is concerning for investors. A return on equity of (-3.2%) and an adjusted return on equity of 3.9% suggest capital is not being utilized efficiently, potentially affecting investor confidence and stock valuation. The acquisition of Academy Mortgage, however, could be a strategic move to bolster market share and may provide a pathway for recovery once the market stabilizes.
Despite the overall negative financial performance, Guild Holdings' focus on purchase originations at 93% vs. the industry estimate of 81% indicates a strategic alignment with current market demand, favoring purchase over refinance in a rising rate environment. The acquisition of Academy Mortgage could enhance their competitive positioning, expanding their geographic footprint and product offerings. This strategic move, coupled with the extended share repurchase program, reflects management's confidence in the company's long-term value proposition. However, market stabilization remains uncertain and the company's performance will likely be influenced by broader economic trends and interest rate movements.
The mortgage industry is sensitive to interest rate fluctuations and overall economic conditions. The data suggests that Guild Holdings has experienced a downturn consistent with broader industry trends, as indicated by the decline in origination volumes and profitability. The servicing portfolio's unpaid principal balance (UPB) growth of 8% is a positive note, indicating a growing asset base that could provide stable revenue streams. However, the significant valuation adjustment loss on MSRs (Mortgage Servicing Rights) reflects the impact of higher interest rates on these assets' value. The company's future performance will be contingent on its ability to navigate a potential economic slowdown and capitalize on its recent acquisitions.
-
Originations of
$15.0 Billion $3.5 Billion -
Net Revenue of
$0.7 Billion $57.2 Million -
Net Loss of
$39.1 Million $93.1 Million -
Adjusted Net Income of
$48.0 Million $12.5 Million -
Return on Equity of (
3.2% ) and Adjusted Return on Equity of3.9% in 2023 - Gain on Sale Margin on Originations of 330 bps in the Fourth Quarter
-
93% of Originations were Purchase Originations in the Fourth Quarter - Expanded Market Share Subsequent to Quarter-End with Acquisition
- Extended Share Repurchase Program
“We have continued to leverage the strength of our platform to grow market share as we execute on our strategy that is focused on the purchase market,” stated Terry Schmidt, Guild Holdings Chief Executive Officer. “We are proud to be a lender of choice in the communities across the country that we serve by providing creative solutions for homebuyers seeking to finance their homes in this higher rate environment. As we look forward, we are encouraged by the market stabilization that is emerging, but anticipate a more muted environment in the near term, particularly in the seasonally slower first quarter.”
Ms. Schmidt continued, “By being disciplined and focusing on maintaining a robust capital position, we have effectively pursued complementary and compelling acquisitions and team additions to position us for growth when the cycle turns. We are pleased with our most acquisition of Academy Mortgage, which lifts Guild to become the 8th largest non-bank retail mortgage lender and represents a
Fourth Quarter
|
|
Total in-house originations of |
|
Originated |
|
|
Net revenue of |
|
|
Net loss of |
|
|
Servicing portfolio unpaid principal balance of |
|
|
Adjusted net income and adjusted EBITDA totaled |
|
|
Return on equity of ( |
Full Year
|
|
Total in-house originations of |
|
Originated |
|
|
Net revenue of |
|
|
Net loss of |
|
|
Servicing portfolio unpaid principal balance grew |
|
|
Adjusted net income and adjusted EBITDA totaled |
|
|
Return on equity of ( |
Fourth Quarter and Full Year 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) |
4Q’23 |
3Q’23 |
%∆ |
FY23 |
FY22 |
%∆ |
||||||
Total in-house originations |
|
|
(17)% |
|
|
(22)% |
||||||
Gain on sale margin on originations (bps) |
330 |
377 |
(12)% |
340 |
368 |
(8)% |
||||||
Gain on sale margin on pull-through adjusted locked volume (bps) |
347 |
389 |
(11)% |
329 |
347 |
(5)% |
||||||
UPB of servicing portfolio (period end) |
|
|
|
|
|
|
||||||
Net revenue |
|
|
(78)% |
|
|
(44)% |
||||||
Total expenses |
|
|
(4)% |
|
|
(6)% |
||||||
Net (loss) income |
( |
|
(272)% |
( |
|
(112)% |
||||||
Return on equity |
(30.2)% |
|
(276)% |
( |
|
(111)% |
||||||
Adjusted net income |
|
|
(57)% |
|
|
(31)% |
||||||
Adjusted EBITDA |
|
|
(70)% |
|
|
(28)% |
||||||
Adjusted return on equity |
|
|
(56)% |
3.9 % |
|
(39)% |
||||||
(Loss) earnings per share |
( |
|
(271)% |
( |
|
(112)% |
||||||
Diluted (loss) earnings per share |
( |
|
(274)% |
( |
|
(112)% |
||||||
Adjusted earnings per share |
|
|
(57)% |
|
|
(31)% |
||||||
Adjusted diluted earnings per share |
|
|
(57)% |
|
|
(32)% |
Origination Segment Results
Origination segment net loss was
($ amounts in millions) |
4Q’23 |
3Q’23 |
%∆ |
FY23 |
FY22 |
%∆ |
||||||
Total in-house originations |
|
|
(17)% |
|
|
(22)% |
||||||
In-house originations # (000’s) |
11 |
13 |
(15)% |
46 |
59 |
(22)% |
||||||
Net revenue |
|
|
(27)% |
|
|
(28)% |
||||||
Total expenses |
|
|
(6)% |
|
|
(10)% |
||||||
Net (loss) income allocated to origination |
( |
|
(472)% |
( |
|
(215)% |
Servicing Segment Results
Servicing segment net loss was
In the fourth quarter of 2023, valuation adjustments with respect to the Company’s MSRs totaled a loss of
($ amounts in millions) |
4Q’23 |
|
3Q’23 |
|
%∆ |
|
FY23 |
|
FY22 |
|
%∆ |
|
UPB of servicing portfolio (period end) |
|
|
|
|
|
|
||||||
# Loans serviced (000’s) (period end) |
345 |
340 |
|
345 |
324 |
|
||||||
Loan servicing and other fees |
|
|
|
|
|
|
||||||
Valuation adjustment of MSRs |
( |
|
(710)% |
( |
|
(164)% |
||||||
Net revenue |
( |
|
(161)% |
|
|
(67)% |
||||||
Total expenses |
|
|
|
|
|
|
||||||
Net (loss) income allocated to servicing |
( |
|
(186)% |
|
|
(75)% |
Share Repurchase Program
During the three months ended December 31, 2023, the Company repurchased and subsequently retired 97,557 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) |
December 31,
|
December 31,
|
|||
Cash and cash equivalents |
$ |
120.3 |
$ |
137.9 |
|
Mortgage servicing rights, net |
$ |
1,161.4 |
$ |
1,139.5 |
|
Warehouse lines of credit |
$ |
833.8 |
$ |
713.2 |
|
Notes payable |
$ |
148.8 |
$ |
126.3 |
|
Total stockholders’ equity |
$ |
1,183.5 |
$ |
1,249.3 |
|
|
|
|
|||
Tangible net book value per share(1) |
$ |
15.90 |
$ |
17.06 |
|
| _________________ | ||
(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 Tuesday, March 12, 2024 at 5 p.m. Eastern Time to discuss the Company’s results for the fourth quarter and full year ended December 31, 2023.
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 March 26, 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 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. In addition, 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 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 intangible assets, net and goodwill 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.
Consolidated Balance Sheets |
|||||
(unaudited) |
|||||
(in thousands, except share and per share amounts) |
December 31,
|
|
December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
120,260 |
|
$ |
137,891 |
Restricted cash |
|
7,121 |
|
|
8,863 |
Mortgage loans held for sale |
|
901,227 |
|
|
845,775 |
Reverse mortgage loans held for investment |
|
315,912 |
|
|
— |
Ginnie Mae loans subject to repurchase right |
|
699,622 |
|
|
650,179 |
Accounts and notes receivable, net |
|
85,356 |
|
|
58,304 |
Derivative assets |
|
15,595 |
|
|
3,120 |
Mortgage servicing rights, net |
|
1,161,357 |
|
|
1,139,539 |
Intangible assets, net |
|
25,125 |
|
|
33,075 |
Goodwill |
|
186,181 |
|
|
176,769 |
Other assets |
|
158,964 |
|
|
186,076 |
Total assets |
$ |
3,676,720 |
|
$ |
3,239,591 |
Liabilities and stockholders’ equity |
|
|
|
||
Warehouse lines of credit, net |
$ |
833,781 |
|
$ |
713,151 |
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings |
|
302,183 |
|
|
— |
Notes payable |
|
148,766 |
|
|
126,250 |
Ginnie Mae loans subject to repurchase right |
|
700,120 |
|
|
650,179 |
Accounts payable and accrued expenses |
|
32,638 |
|
|
34,095 |
Accrued compensation and benefits |
|
30,794 |
|
|
29,597 |
Investor reserves |
|
19,973 |
|
|
16,094 |
Contingent liabilities due to acquisitions |
|
8,720 |
|
|
526 |
Derivative liabilities |
|
16,245 |
|
|
5,173 |
Operating lease liabilities |
|
75,832 |
|
|
85,977 |
Note due to related party |
|
— |
|
|
530 |
Deferred compensation plan |
|
99,154 |
|
|
95,769 |
Deferred tax liabilities |
|
225,021 |
|
|
232,963 |
Total liabilities |
|
2,493,227 |
|
|
1,990,304 |
Commitments and contingencies |
|
|
|
||
Stockholders’ equity |
|
|
|
||
Preferred stock, |
|
— |
|
|
— |
Class A common stock, |
|
208 |
|
|
206 |
Class B common stock, |
|
403 |
|
|
403 |
Additional paid-in capital |
|
47,158 |
|
|
42,727 |
Retained earnings |
|
1,135,387 |
|
|
1,205,885 |
Non-controlling interests |
|
337 |
|
|
66 |
Total stockholders' equity |
|
1,183,493 |
|
|
1,249,287 |
Total liabilities and stockholders’ equity |
$ |
3,676,720 |
|
$ |
3,239,591 |
Consolidated Statements of Operations |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended
|
||||||||||||
(in thousands, except per share amounts) |
Dec 31,
|
|
Sep 30,
|
|
2023 |
|
2022 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Loan origination fees and gain on sale of loans, net |
$ |
113,601 |
|
|
$ |
158,126 |
|
|
$ |
501,303 |
|
|
$ |
703,674 |
|
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net |
|
3,172 |
|
|
|
2,755 |
|
|
|
8,233 |
|
|
|
— |
|
Loan servicing and other fees |
|
63,905 |
|
|
|
61,941 |
|
|
|
246,144 |
|
|
|
223,403 |
|
Valuation adjustment of mortgage servicing rights |
|
(134,656 |
) |
|
|
22,077 |
|
|
|
(139,560 |
) |
|
|
217,551 |
|
Interest income |
|
28,227 |
|
|
|
31,348 |
|
|
|
104,404 |
|
|
|
68,144 |
|
Interest expense |
|
(17,379 |
) |
|
|
(19,394 |
) |
|
|
(66,364 |
) |
|
|
(49,240 |
) |
Other income, net |
|
364 |
|
|
|
404 |
|
|
|
1,027 |
|
|
|
1,289 |
|
Net revenue |
|
57,234 |
|
|
|
257,257 |
|
|
|
655,187 |
|
|
|
1,164,821 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Salaries, incentive compensation and benefits |
|
131,201 |
|
|
|
142,637 |
|
|
|
529,861 |
|
|
|
619,185 |
|
General and administrative |
|
23,073 |
|
|
|
18,809 |
|
|
|
83,213 |
|
|
|
38,085 |
|
Occupancy, equipment and communication |
|
18,108 |
|
|
|
18,536 |
|
|
|
72,476 |
|
|
|
71,707 |
|
Depreciation and amortization |
|
3,517 |
|
|
|
3,664 |
|
|
|
14,580 |
|
|
|
15,525 |
|
Provision for foreclosure losses |
|
634 |
|
|
|
84 |
|
|
|
1,188 |
|
|
|
300 |
|
Total expenses |
|
176,533 |
|
|
|
183,730 |
|
|
|
701,318 |
|
|
|
744,802 |
|
(Loss) income before income tax (benefit) expense |
|
(119,299 |
) |
|
|
73,527 |
|
|
|
(46,131 |
) |
|
|
420,019 |
|
Income tax (benefit) expense |
|
(26,178 |
) |
|
|
19,284 |
|
|
|
(6,994 |
) |
|
|
91,389 |
|
Net (loss) income |
|
(93,121 |
) |
|
|
54,243 |
|
|
|
(39,137 |
) |
|
|
328,630 |
|
Net (loss) income attributable to non-controlling interests |
|
(117 |
) |
|
|
(6 |
) |
|
|
(128 |
) |
|
|
32 |
|
Net (loss) income attributable to Guild |
$ |
(93,004 |
) |
|
$ |
54,249 |
|
|
$ |
(39,009 |
) |
|
$ |
328,598 |
|
|
|
|
|
|
|
|
|
||||||||
(Loss) earnings per share attributable to Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(1.52 |
) |
|
$ |
0.89 |
|
|
$ |
(0.64 |
) |
|
$ |
5.39 |
|
Diluted |
$ |
(1.52 |
) |
|
$ |
0.88 |
|
|
$ |
(0.64 |
) |
|
$ |
5.35 |
|
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
|
61,049 |
|
|
$ |
60,956 |
|
|
|
60,967 |
|
|
$ |
60,981 |
|
Diluted |
|
61,049 |
|
|
$ |
61,913 |
|
|
|
60,967 |
|
|
$ |
61,379 |
|
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 |
|
Year Ended
|
||||||||
($ and units in thousands) |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
2023 |
|
2022 |
||||
Origination Data |
|
|
|
|
|
|
|
||||
$ Total in-house origination(1) |
$ |
3,535,301 |
|
$ |
4,263,841 |
|
$ |
14,959,070 |
|
$ |
19,123,199 |
# Total in-house origination |
|
11 |
|
|
13 |
|
|
46 |
|
|
59 |
$ Retail forward in-house origination |
$ |
3,390,870 |
|
$ |
4,087,820 |
|
$ |
14,162,819 |
|
$ |
18,314,160 |
# Retail forward in-house origination |
|
10 |
|
|
13 |
|
|
43 |
|
|
56 |
$ Retail reverse in-house origination |
$ |
21,949 |
|
$ |
19,984 |
|
$ |
49,791 |
|
$ |
— |
# Retail reverse in-house origination |
|
— |
|
|
— |
|
|
— |
|
|
— |
$ Retail brokered origination(2) |
$ |
87,456 |
|
$ |
74,517 |
|
$ |
267,917 |
|
$ |
196,714 |
$ Wholesale reverse origination |
$ |
1,290 |
|
$ |
8,948 |
|
$ |
36,841 |
|
$ |
— |
Total originations |
$ |
3,624,047 |
|
$ |
4,347,306 |
|
$ |
15,263,828 |
|
$ |
19,319,913 |
Gain on sale margin (bps)(3) |
|
330 |
|
|
377 |
|
|
340 |
|
|
368 |
Pull-through adjusted locked volume(4) |
$ |
3,275,367 |
|
$ |
4,067,137 |
|
$ |
15,223,182 |
|
$ |
20,272,208 |
Gain on sale margin on pull-through adjusted locked volume (bps)(5) |
|
347 |
|
|
389 |
|
|
329 |
|
|
347 |
Purchase recapture rate(6) |
|
|
|
|
|
|
|
|
|
|
|
Refinance recapture rate(7) |
|
|
|
|
|
|
|
|
|
|
|
Purchase origination % |
|
|
|
|
|
|
|
|
|
|
|
Servicing Data |
|
|
|
|
|
|
|
||||
UPB (period end)(8) |
$ |
85,033,899 |
|
$ |
83,705,731 |
|
$ |
85,033,899 |
|
$ |
78,892,987 |
| _________________ | ||
(1) |
Includes retail forward, correspondent and retail reverse and excludes wholesale reverse and brokered loans. |
|
(2) |
Brokered loans are defined as loans we originate in the retail channel that are processed by us but underwritten and closed by another lender. These loans are typically for products we choose not to offer in-house. |
|
(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 (Loss) Income to Adjusted Net Income |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended
|
||||||||||||
(in millions, except per share amounts) |
Dec 31,
|
|
Sep 30,
|
|
2023 |
|
2022 |
||||||||
Net (loss) income attributable to Guild |
$ |
(93.0 |
) |
|
$ |
54.2 |
|
|
$ |
(39.0 |
) |
|
$ |
328.6 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Change in fair value of MSRs due to model inputs and assumption |
|
122.3 |
|
|
|
(38.2 |
) |
|
|
84.0 |
|
|
|
(300.9 |
) |
Change in fair value of contingent liabilities and notes receivable due to acquisitions, net |
|
1.2 |
|
|
|
(0.4 |
) |
|
|
2.1 |
|
|
|
(45.1 |
) |
Amortization of acquired intangible assets |
|
2.0 |
|
|
|
2.0 |
|
|
|
8.0 |
|
|
|
8.0 |
|
Stock-based compensation |
|
2.2 |
|
|
|
2.3 |
|
|
|
8.7 |
|
|
|
7.3 |
|
Tax impact of adjustments(1) |
|
(22.1 |
) |
|
|
9.0 |
|
|
|
(15.6 |
) |
|
|
72.1 |
|
Adjusted Net Income |
$ |
12.5 |
|
|
$ |
29.0 |
|
|
$ |
48.0 |
|
|
$ |
70.0 |
|
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
|
61.0 |
|
|
|
61.0 |
|
|
|
61.0 |
|
|
|
61.0 |
|
Diluted |
|
61.0 |
|
|
|
61.9 |
|
|
|
61.0 |
|
|
|
61.4 |
|
Adjusted Diluted(2) |
|
61.8 |
|
|
|
61.9 |
|
|
|
61.7 |
|
|
|
61.4 |
|
|
|
|
|
|
|
|
|
||||||||
(Loss) earnings per share—Basic |
$ |
(1.52 |
) |
|
$ |
0.89 |
|
|
$ |
(0.64 |
) |
|
$ |
5.39 |
|
(Loss) earnings per share—Diluted |
$ |
(1.52 |
) |
|
$ |
0.88 |
|
|
$ |
(0.64 |
) |
|
$ |
5.35 |
|
Adjusted Earnings Per Share—Basic |
$ |
0.21 |
|
|
$ |
0.48 |
|
|
$ |
0.79 |
|
|
$ |
1.15 |
|
Adjusted Earnings Per Share—Diluted |
$ |
0.20 |
|
|
$ |
0.47 |
|
|
$ |
0.78 |
|
|
$ |
1.14 |
|
| _________________ | ||
| Amounts may not foot due to rounding | ||
(1) |
Estimated effective tax rate used was |
|
(2) |
Adjusted diluted weighted average shares outstanding of Class A and Class B Common Stock for the three months and year ended December 31, 2023 includes 0.7 million 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. There were no adjustments for the three months ended September 30, 2023 and for the year ended December 31, 2022. |
|
| Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended
|
||||||||||||
(in millions) |
Dec 31,
|
|
Sep 30,
|
|
2023 |
|
2022 |
||||||||
Net (loss) income |
$ |
(93.1 |
) |
|
$ |
54.2 |
|
|
$ |
(39.1 |
) |
|
$ |
328.6 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense on non-funding debt |
|
3.2 |
|
|
|
3.0 |
|
|
|
11.6 |
|
|
|
6.7 |
|
Income tax (benefit) expense |
|
(26.2 |
) |
|
|
19.3 |
|
|
|
(7.0 |
) |
|
|
91.4 |
|
Depreciation and amortization |
|
3.5 |
|
|
|
3.7 |
|
|
|
14.6 |
|
|
|
15.5 |
|
Change in fair value of MSRs due to model inputs and assumptions |
|
122.3 |
|
|
|
(38.2 |
) |
|
|
84.0 |
|
|
|
(300.9 |
) |
Change in fair value of contingent liabilities and notes receivable due to acquisitions, net |
|
1.2 |
|
|
|
(0.4 |
) |
|
|
2.1 |
|
|
|
(45.1 |
) |
Stock-based compensation |
|
2.2 |
|
|
|
2.3 |
|
|
|
8.7 |
|
|
|
7.3 |
|
Adjusted EBITDA |
$ |
13.2 |
|
|
$ |
43.9 |
|
|
$ |
74.8 |
|
|
$ |
103.5 |
|
Reconciliation of Return on Equity to Adjusted Return on Equity |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended
|
||||||||||||
($ in millions) |
Dec 31,
|
|
Sep 30,
|
|
2023 |
|
2022 |
||||||||
Income Statement Data: |
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to Guild |
$ |
(93.0 |
) |
|
$ |
54.2 |
|
|
$ |
(39.0 |
) |
|
$ |
328.6 |
|
Adjusted Net Income |
$ |
12.5 |
|
|
$ |
29.0 |
|
|
$ |
48.0 |
|
|
$ |
70.0 |
|
|
|
|
|
|
|
|
|
||||||||
Average stockholders’ equity |
$ |
1,230.2 |
|
|
$ |
1,264.2 |
|
|
$ |
1,216.4 |
|
|
$ |
1,084.7 |
|
Return on equity |
|
(30.2 |
%) |
|
|
17.2 |
% |
|
|
(3.2 |
%) |
|
|
30.3 |
% |
Adjusted Return on Equity |
|
4.1 |
% |
|
|
9.2 |
% |
|
|
3.9 |
% |
|
|
6.4 |
% |
Reconciliation of Book Value Per Share to Tangible Net Book Value Per Share |
|||||||
(unaudited) |
|||||||
(in millions, except per share amounts) |
December 31, 2023 |
|
December 31, 2022 |
||||
Total stockholders' equity |
$ |
1,183.5 |
|
|
$ |
1,249.3 |
|
Less: non-controlling interests |
|
0.3 |
|
|
|
0.1 |
|
Total stockholders' equity attributable to Guild |
$ |
1,183.2 |
|
|
$ |
1,249.2 |
|
Adjustments: |
|
|
|
||||
Intangible assets, net |
|
(25.1 |
) |
|
|
(33.1 |
) |
Goodwill |
|
(186.2 |
) |
|
|
(176.8 |
) |
Tangible common equity |
$ |
971.9 |
|
|
$ |
1,039.4 |
|
|
|
|
|
||||
Ending shares of Class A and Class B common stock outstanding |
|
61.1 |
|
|
|
60.9 |
|
|
|
|
|
||||
Book value per share |
$ |
19.36 |
|
|
$ |
20.51 |
|
Tangible Net Book Value Per Share(1) |
$ |
15.90 |
|
|
$ |
17.06 |
|
| ___________ | ||
| (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/20240312055102/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
What was Guild Holdings Company's total in-house originations in 2023?
What was the net revenue for Guild Holdings Company in the fourth quarter of 2023?
What was the net loss for Guild Holdings Company in 2023?
What was the adjusted net income for Guild Holdings Company in 2023?
What acquisition did Guild Holdings Company make to become the 8th largest non-bank retail mortgage lender?
What was Guild Holdings Company's cash and cash equivalents position as of December 31, 2023?
