Guild Holdings Company Reports Second Quarter 2022 Results
Guild Holdings Company (GHLD) reported its second-quarter results for 2022, showing total in-house originations of $5.7 billion, down 6% from the prior quarter. Net revenue decreased to $287.5 million, a 40% drop, while net income fell 72% to $58.3 million. Year-to-date, originations reached $11.8 billion, down 34% from 2021. Despite low refinancing volumes, the company retains a strong servicing portfolio with an unpaid principal balance of $75.9 billion, up 16% year-over-year. The company’s CEO emphasized plans to adapt to shifting market conditions and maintain liquidity for future opportunities.
- Servicing portfolio unpaid principal balance increased to $75.9 billion, up 16% year-over-year.
- Maintained a strong liquidity position with $249 million in cash and $1.6 billion in unutilized loan funding capacity.
- Purchase loans comprised 84% of total origination volumes, exceeding the Mortgage Bankers Association estimate of 70%.
- Net revenue dropped to $287.5 million, a 40% decrease from the previous quarter.
- Net income fell to $58.3 million, down 72% quarter-over-quarter.
- Total in-house originations decreased to $5.7 billion, a 6% decline from the prior quarter.
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Second Quarter
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Total in-house originations of |
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Net revenue of |
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Net income of |
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Servicing portfolio unpaid principal balance of |
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Adjusted net income and Adjusted EBITDA totaled |
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Return on equity of |
Year-To-Date
|
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Total in-house originations of |
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Net revenue of |
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Net income of |
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Servicing portfolio unpaid principal balance of |
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Adjusted net income and Adjusted EBITDA totaled |
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Return on equity of |
CEO Commentary
“We delivered solid financial results for the second quarter of 2022 despite higher interest rates, excess capacity and limited inventories,” said
“Every market creates opportunities. We are well-capitalized, and our leverage ratios and liquidity levels position us well to capitalize on M&A opportunities as we continue to build our business. Broader market disruptions are driving a flight to quality, with sales people, teams, and companies considering Guild because of our long and successful history through market cycles, and our ability to take advantage of dislocations in the market.”
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Second Quarter
|
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Originated |
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Gain on sale margins on originations of 363 bps |
|
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Gain on sale margins on pull-through adjusted locked volume of 357 bps |
|
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UPB of servicing portfolio grew |
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Purchase recapture rate of |
Second Quarter Summary
($ amounts in millions, except per share amounts) |
2Q’22 |
1Q’22 |
%∆ |
YTD’22 |
YTD’21 |
%∆ |
||||||||||
Total in-house originations |
$ |
5,721.9 |
|
$ |
6,061.6 |
|
(6 |
) % |
$ |
11,783.5 |
|
$ |
17,941.2 |
|
(34 |
) % |
Gain on sale margin on originations (bps) |
|
363 |
|
|
400 |
|
(9 |
) % |
|
382 |
|
|
433 |
|
(12 |
) % |
Gain on sale margin on pull-through adjusted locked volume (bps) |
|
357 |
|
|
334 |
|
7 |
% |
|
347 |
|
|
454 |
|
(24 |
) % |
UPB of servicing portfolio (period end) |
$ |
75,856.6 |
|
$ |
73,250.6 |
|
4 |
% |
$ |
75,856.6 |
|
$ |
65,670.3 |
|
16 |
% |
Net revenue |
$ |
287.5 |
|
$ |
481.8 |
|
(40 |
) % |
$ |
769.3 |
|
$ |
820.3 |
|
(6 |
) % |
Total expenses |
$ |
209.1 |
|
$ |
203.6 |
|
3 |
% |
$ |
412.7 |
|
$ |
592.8 |
|
(30 |
) % |
Net income |
$ |
58.3 |
|
$ |
208.0 |
|
(72 |
) % |
$ |
266.3 |
|
$ |
169.5 |
|
57 |
% |
Return on equity |
|
20.1 |
% |
|
81.2 |
% |
(75 |
) % |
|
50.5 |
% |
|
42.8 |
% |
18 |
% |
Adjusted net income |
$ |
13.9 |
|
$ |
32.1 |
|
(57 |
) % |
$ |
46.0 |
|
$ |
158.7 |
|
(71 |
) % |
Adjusted EBITDA |
$ |
22.0 |
|
$ |
46.7 |
|
(53 |
) % |
$ |
68.6 |
|
$ |
219.2 |
|
(69 |
) % |
Adjusted return on equity |
|
4.8 |
% |
|
12.5 |
% |
(62 |
) % |
|
8.7 |
% |
|
40.1 |
% |
(78 |
) % |
Earnings per share |
$ |
0.95 |
|
$ |
3.41 |
|
(72 |
) % |
$ |
4.36 |
|
$ |
2.83 |
|
54 |
% |
Diluted earnings per share |
$ |
0.95 |
|
$ |
3.38 |
|
(72 |
) % |
$ |
4.31 |
|
$ |
2.81 |
|
53 |
% |
Adjusted earnings per share |
$ |
0.23 |
|
$ |
0.53 |
|
(57 |
) % |
$ |
0.75 |
|
$ |
2.64 |
|
(72 |
) % |
Second Quarter Origination Segment Results
Origination segment net income decreased
($ amounts in millions) |
2Q’22 |
1Q’22 |
%∆ |
YTD’22 |
YTD’21 |
%∆ |
||||||
Total in-house originations |
$ |
5,721.9 |
$ |
6,061.6 |
(6 |
) % |
$ |
11,783.5 |
$ |
17,941.2 |
(34 |
) % |
In-house originations # (000’s) |
|
18 |
|
19 |
(5 |
) % |
|
37 |
|
62 |
(40 |
) % |
Net revenue |
$ |
212.1 |
$ |
245.6 |
(14 |
) % |
$ |
457.7 |
$ |
780.5 |
(41 |
) % |
Total expenses |
$ |
186.5 |
$ |
182.2 |
2 |
% |
$ |
368.7 |
$ |
541.6 |
(32 |
) % |
Net income allocated to origination |
$ |
25.6 |
$ |
63.4 |
(60 |
) % |
$ |
89.1 |
$ |
238.9 |
(63 |
) % |
Second Quarter Servicing Segment Results
Net income attributed to the servicing segment was
Net revenue totaled
($ amounts in millions) |
2Q’22 |
1Q’22 |
%∆ |
YTD’22 |
YTD’21 |
%∆ |
|||||||
UPB of servicing portfolio (period end) |
$ |
75,856.6 |
$ |
73,250.6 |
4 |
% |
$ |
75,856.6 |
$ |
65,670.3 |
|
16 |
% |
# Loans serviced (000’s) (period end) |
|
314 |
|
307 |
2 |
% |
|
314 |
|
287 |
|
9 |
% |
Loan servicing and other fees |
$ |
54.6 |
$ |
53.2 |
3 |
% |
$ |
107.8 |
$ |
92.9 |
|
16 |
% |
Valuation adjustment of MSRs |
$ |
21.1 |
$ |
184.6 |
(89 |
%) |
$ |
205.7 |
$ |
(49.0 |
) |
519 |
% |
Net revenue |
$ |
76.9 |
$ |
237.6 |
(68 |
) % |
$ |
314.5 |
$ |
42.7 |
|
636 |
% |
Total expenses |
$ |
13.0 |
$ |
10.9 |
20 |
% |
$ |
23.9 |
$ |
24.5 |
|
(3 |
) % |
Net income allocated to servicing |
$ |
63.9 |
$ |
226.8 |
(72 |
) % |
$ |
290.7 |
$ |
18.2 |
|
NM |
|
Share Repurchase Program
On
Balance Sheet and Liquidity Highlights
The Company’s operating cash position was
(in millions) |
|
|
||
Cash and cash equivalents |
$ |
249.0 |
$ |
243.1 |
Mortgage servicing rights, net |
$ |
1,030.3 |
$ |
675.3 |
Warehouse lines of credit |
$ |
1,148.6 |
$ |
1,927.5 |
Notes payable |
$ |
118.8 |
$ |
250.2 |
Total stockholders’ equity |
$ |
1,187.8 |
$ |
920.0 |
Webcast and Conference Call
The Company will host a webcast and conference call on
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
About
Founded in 1960 when the modern
Forward-Looking Statements
This press release contains forward-looking statements, including statements about future profitability and positioning to capitalize on M&A opportunities and statements regarding our intention to continue to repurchase shares of the Company’s Class A common stock pursuant to the share repurchase program. These forward-looking statements reflect our current views with respect to, among other things, 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. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
Important factors that could cause our actual results to differ materially from those indicated in these 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
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements.
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 to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
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. We define Adjusted Net Income as earnings attributable to Guild before the change in the fair value measurements related to our MSRs, contingent liabilities related to completed acquisitions due to changes in valuation assumptions, amortization of acquired intangible assets and 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 implied tax effect 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 the Company’s MSRs from period to period.
Adjusted Earnings Per Share. We define Adjusted Earnings Per Share as our adjusted net income divided by the basic weighted average shares outstanding of our Class A and Class B common stock.
Adjusted EBITDA. We define Adjusted EBITDA as earnings before interest (without adjustment for net warehouse interest related to loan fundings and payoff interest related to loan prepayments), taxes, depreciation and amortization and net income attributable to the non-controlling interest exclusive of any change in the fair value measurements of the MSRs due to valuation assumptions, contingent liabilities from business acquisitions and 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 Return on Equity. We define Adjusted Return on Equity as annualized Adjusted Net Income as a percentage of average beginning and ending stockholders’ equity during the period.
We use these non-GAAP financial measures 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 adjustments that are not indicative of management’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.
Our non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income (loss) or net income (loss) attributable to Guild, which are the most directly comparable financial measures calculated and presented in accordance with GAAP for Adjusted Net Income and Adjusted EBITDA, and Return on Equity, which is the most directly comparable financial measure calculated and presented in accordance with GAAP for Adjusted Return on Equity. These limitations include that these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
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) |
|
|
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
248,987 |
|
$ |
243,108 |
Restricted cash |
|
5,592 |
|
|
5,012 |
Mortgage loans held for sale |
|
1,249,809 |
|
|
2,204,216 |
|
|
616,335 |
|
|
728,978 |
Accounts and interest receivable |
|
23,517 |
|
|
68,359 |
Derivative assets |
|
23,080 |
|
|
27,961 |
Mortgage servicing rights, net |
|
1,030,310 |
|
|
675,340 |
Intangible assets, net |
|
37,050 |
|
|
41,025 |
|
|
173,434 |
|
|
175,144 |
Other assets |
|
192,845 |
|
|
214,061 |
Total assets |
$ |
3,600,959 |
|
$ |
4,383,204 |
Liabilities and stockholders’ equity |
|
|
|
||
Warehouse lines of credit |
$ |
1,148,551 |
|
$ |
1,927,478 |
Notes payable |
|
118,750 |
|
|
250,227 |
|
|
616,638 |
|
|
729,260 |
Accounts payable and accrued expenses |
|
44,488 |
|
|
56,836 |
Accrued compensation and benefits |
|
46,711 |
|
|
75,079 |
Investor reserves |
|
16,919 |
|
|
18,437 |
Contingent liabilities due to acquisitions |
|
1,557 |
|
|
59,500 |
Derivative liabilities |
|
4,121 |
|
|
2,079 |
Operating lease liabilities |
|
91,272 |
|
|
97,836 |
Note due to related party |
|
1,580 |
|
|
2,614 |
Deferred compensation plan |
|
95,040 |
|
|
101,600 |
Deferred tax liabilities |
|
227,502 |
|
|
142,245 |
Total liabilities |
|
2,413,129 |
|
|
3,463,191 |
Commitments and contingencies |
|
|
|
||
Stockholders’ equity |
|
|
|
||
Preferred stock, |
|
— |
|
|
— |
Class A common stock, |
|
206 |
|
|
207 |
Class B common stock, |
|
403 |
|
|
403 |
Additional paid-in capital |
|
43,666 |
|
|
42,175 |
Retained earnings |
|
1,143,489 |
|
|
877,194 |
Non-controlling interest |
|
66 |
|
|
34 |
Total stockholders' equity |
|
1,187,830 |
|
|
920,013 |
Total liabilities and stockholders’ equity |
$ |
3,600,959 |
|
$ |
4,383,204 |
Condensed Consolidated Statements of Income (unaudited) |
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|
Three Months Ended |
|
Six Months Ended
|
||||||||||||
(in thousands, except per share amounts) |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
||||
Revenue |
|
|
|
|
|
|
|
||||||||
Loan origination fees and gain on sale of loans, net |
$ |
207,972 |
|
|
$ |
242,639 |
|
|
$ |
450,611 |
|
|
$ |
777,347 |
|
Loan servicing and other fees |
|
54,595 |
|
|
|
53,177 |
|
|
|
107,772 |
|
|
|
92,851 |
|
Valuation adjustment of mortgage servicing rights |
|
21,074 |
|
|
|
184,601 |
|
|
|
205,675 |
|
|
|
(49,046 |
) |
Interest income |
|
14,823 |
|
|
|
15,263 |
|
|
|
30,086 |
|
|
|
29,734 |
|
Interest expense |
|
(10,949 |
) |
|
|
(14,138 |
) |
|
|
(25,087 |
) |
|
|
(30,720 |
) |
Other income, net |
|
22 |
|
|
|
220 |
|
|
|
242 |
|
|
|
130 |
|
Net revenue |
|
287,537 |
|
|
|
481,762 |
|
|
|
769,299 |
|
|
|
820,296 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Salaries, incentive compensation and benefits |
|
178,192 |
|
|
|
187,329 |
|
|
|
365,521 |
|
|
|
499,287 |
|
General and administrative |
|
6,371 |
|
|
|
(5,630 |
) |
|
|
741 |
|
|
|
58,701 |
|
Occupancy, equipment and communication |
|
18,973 |
|
|
|
18,312 |
|
|
|
37,285 |
|
|
|
29,494 |
|
Depreciation and amortization |
|
3,808 |
|
|
|
3,913 |
|
|
|
7,721 |
|
|
|
3,262 |
|
Provision (relief) for foreclosure losses |
|
1,796 |
|
|
|
(321 |
) |
|
|
1,475 |
|
|
|
2,019 |
|
Total expenses |
|
209,140 |
|
|
|
203,603 |
|
|
|
412,743 |
|
|
|
592,763 |
|
Income before income tax expense |
|
78,397 |
|
|
|
278,159 |
|
|
|
356,556 |
|
|
|
227,533 |
|
Income tax expense |
|
20,108 |
|
|
|
70,186 |
|
|
|
90,294 |
|
|
|
57,991 |
|
Net income |
|
58,289 |
|
|
|
207,973 |
|
|
|
266,262 |
|
|
|
169,542 |
|
Net income attributable to non-controlling interest |
|
17 |
|
|
|
15 |
|
|
|
32 |
|
|
|
— |
|
Net income attributable to Guild |
$ |
58,272 |
|
|
$ |
207,958 |
|
|
$ |
266,230 |
|
|
$ |
169,542 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.95 |
|
|
$ |
3.41 |
|
|
$ |
4.36 |
|
|
$ |
2.83 |
|
Diluted |
$ |
0.95 |
|
|
$ |
3.38 |
|
|
$ |
4.31 |
|
|
$ |
2.81 |
|
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
|
61,064 |
|
|
|
61,057 |
|
|
|
61,060 |
|
|
|
60,000 |
|
Diluted |
|
61,650 |
|
|
|
61,494 |
|
|
|
61,779 |
|
|
|
60,234 |
|
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 |
|
Six Months Ended |
||||||||||||
($ and units in thousands) |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
||||
Origination Data |
|
|
|
|
|
|
|
||||||||
$ Total in-house origination(1) |
$ |
5,721,931 |
|
|
$ |
6,061,553 |
|
|
$ |
11,783,484 |
|
|
$ |
17,941,190 |
|
# Total in-house origination |
|
18 |
|
|
|
19 |
|
|
|
37 |
|
|
|
62 |
|
$ Retail in-house origination |
|
5,538,743 |
|
|
|
5,779,346 |
|
|
|
11,318,089 |
|
|
|
17,424,164 |
|
# Retail in-house origination |
|
17 |
|
|
|
18 |
|
|
|
35 |
|
|
|
60 |
|
$ Retail brokered origination(2) |
|
65,275 |
|
|
|
53,095 |
|
|
|
118,370 |
|
|
|
32,671 |
|
Total originations |
$ |
5,787,206 |
|
|
$ |
6,114,648 |
|
|
$ |
11,901,854 |
|
|
$ |
17,973,861 |
|
Gain on sale margin (bps)(3) |
|
363 |
|
|
|
400 |
|
|
|
382 |
|
|
|
433 |
|
Pull-through adjusted locked volume(4) |
|
5,824,911 |
|
|
|
7,257,489 |
|
|
|
12,997,291 |
|
|
|
17,120,941 |
|
Gain on sale margin on pull-through adjusted locked volume (bps)(5) |
|
357 |
|
|
|
334 |
|
|
|
347 |
|
|
|
454 |
|
Refinance recapture rate(6) |
|
39 |
% |
|
|
55 |
% |
|
|
50 |
% |
|
|
64 |
% |
Purchase origination % |
|
84 |
% |
|
|
66 |
% |
|
|
75 |
% |
|
|
47 |
% |
Servicing Data |
|
|
|
|
|
|
|
||||||||
UPB (period end)(7) |
$ |
75,856,564 |
|
|
$ |
73,250,575 |
|
|
$ |
75,856,564 |
|
|
$ |
65,670,291 |
|
_________________
(1) Includes retail and correspondent loans and excludes 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 divided by total in-house origination to derive basis points.
(4) Pull-through adjusted locked volume is equal to total locked volume 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) Refinance recapture rate is calculated as the total UPB of our clients that originated a new mortgage with us to refinance an existing mortgage in a given period, divided by the total UPB of our clients that paid off their existing mortgage and originated a new mortgage in the same period.
(7) Excludes subserviced portfolios of
GAAP to Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to Guild to Adjusted Net Income (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(in millions, except per share amounts) |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
||||
Net income |
$ |
58.3 |
|
|
$ |
208.0 |
|
|
$ |
266.3 |
|
|
$ |
169.5 |
|
Net income attributable to non-controlling interest(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income attributable to Guild |
$ |
58.3 |
|
|
$ |
208.0 |
|
|
$ |
266.2 |
|
|
$ |
169.5 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Change in fair value of MSRs due to model inputs and assumption |
|
(46.9 |
) |
|
|
(209.5 |
) |
|
|
(256.4 |
) |
|
|
(30.8 |
) |
Change in fair value of contingent liabilities due to acquisitions |
|
(16.5 |
) |
|
|
(28.9 |
) |
|
|
(45.4 |
) |
|
|
13.1 |
|
Amortization of acquired intangible assets |
|
2.0 |
|
|
|
2.0 |
|
|
|
4.0 |
|
|
|
— |
|
Stock-based compensation |
|
1.7 |
|
|
|
1.3 |
|
|
|
3.0 |
|
|
|
3.1 |
|
Tax impact of adjustments(2) |
|
15.3 |
|
|
|
59.3 |
|
|
|
74.6 |
|
|
|
3.7 |
|
Adjusted Net Income |
$ |
13.9 |
|
|
$ |
32.1 |
|
|
$ |
46.0 |
|
|
$ |
158.7 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding of Class A and Class B Common Stock |
|
61 |
|
|
|
61 |
|
|
|
61 |
|
|
|
60 |
|
Earnings per share |
$ |
0.95 |
|
|
$ |
3.41 |
|
|
$ |
4.36 |
|
|
$ |
2.83 |
|
Adjusted earnings per share |
$ |
0.23 |
|
|
$ |
0.53 |
|
|
$ |
0.75 |
|
|
$ |
2.64 |
|
_________________
Amounts may not foot due to rounding
(1) Net income attributable to non-controlling interest was
(2) Implied tax rate used was
Reconciliation of Net Income to Adjusted EBITDA (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(in millions) |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
||||
Net income |
$ |
58.3 |
|
|
$ |
208.0 |
|
|
$ |
266.3 |
|
|
$ |
169.5 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense on non-funding debt |
|
1.4 |
|
|
|
1.7 |
|
|
|
3.2 |
|
|
|
3.0 |
|
Income tax expense |
|
20.1 |
|
|
|
70.2 |
|
|
|
90.3 |
|
|
|
58.0 |
|
Depreciation and amortization |
|
3.8 |
|
|
|
3.9 |
|
|
|
7.7 |
|
|
|
3.3 |
|
Change in fair value of MSRs due to model inputs and assumptions |
|
(46.9 |
) |
|
|
(209.5 |
) |
|
|
(256.4 |
) |
|
|
(30.8 |
) |
Change in fair value of contingent liabilities due to acquisitions |
|
(16.5 |
) |
|
|
(28.9 |
) |
|
|
(45.4 |
) |
|
|
13.1 |
|
Stock-based compensation |
|
1.7 |
|
|
|
1.3 |
|
|
|
3.0 |
|
|
|
3.1 |
|
Adjusted EBITDA |
$ |
22.0 |
|
|
$ |
46.7 |
|
|
$ |
68.6 |
|
|
$ |
219.2 |
|
_________________
Amounts may not foot due to rounding
Reconciliation of Return on Equity to Adjusted Return on Equity (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
($ in millions) |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
||||
Numerator: Adjusted Net Income |
$ |
13.9 |
|
|
$ |
32.1 |
|
|
$ |
46.0 |
|
|
$ |
158.7 |
|
Denominator: Average stockholders’ equity |
|
1,158.5 |
|
|
|
1,024.6 |
|
|
|
1,053.9 |
|
|
|
792.3 |
|
Adjusted Return on Equity |
|
4.8 |
% |
|
|
12.5 |
% |
|
|
8.7 |
% |
|
|
40.1 |
% |
Return on Equity |
|
20.1 |
% |
|
|
81.2 |
% |
|
|
50.5 |
% |
|
|
42.8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005892/en/
Investors:
investors@guildmortgage.net
858-956-5130
Media:
Nuffer, Smith, Tucker
mkr@nstpr.com
619-296-0605 Ext. 247
Source:
FAQ
What were Guild Holdings Company's Q2 2022 financial results?
How did Guild's net income change in Q2 2022?
What percentage of Guild's loans were purchase loans in Q2 2022?
What is Guild Holdings Company's servicing portfolio size as of Q2 2022?
What challenges did Guild Holdings Company face in Q2 2022?
