Anywhere Real Estate Inc.

06/17/2025 | Press release | Distributed by Public on 06/17/2025 06:01

Regulation FD Disclosure (Form 8-K)

Item 7.01.
Regulation FD Disclosure.
The following information being furnished by Anywhere Real Estate Inc. (the "Company", "we", "us", "our") on this Current Report on Form 8-K (this Form 8-K") pursuant to this Item 7.01 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.
Updated Financial Estimates
On June 17, 2025, the Company updated its financial estimate for the second quarter of 2025 and affirmed its financial guidance for the full year 2025.
Largely due to softer homesale transaction volume than expected in the second quarter of 2025, driven by market and macroeconomic volatility, the Company now estimates Operating EBITDA for the second quarter of 2025 will be between $125 million to $135 million.
The Company continues to expect Operating EBITDA for full year 2025 to be about $350 million based primarily upon our expectations for improving homesale transaction volume in the second half of 2025 (consistent with current industry expectations and supported by year-over-year open transaction volume increases of 3% for May 2025 and 4% for June 2025, based on data through June 15, 2025, each on a combined basis for the Company); our previously disclosed cost savings actions for 2025 (which are more heavily weighted to the second half of the year); and additional cost management actions we intend to take. The largest variable in this estimate is the performance of the housing market. May 2025 has one less business day than May 2024 and June 2025 has one more business day than June 2024. We adjust open transaction volume so that each month has the same number of business days, as we believe a same business day comparison is more representative as a forward-looking indicator.
Our financial estimates for the full year and second quarter of 2025 are subject to, among other things, macroeconomic and housing market uncertainties, including those related to declining affordability, constrained inventory and competitive, litigation and regulatory uncertainties. See "Forward-Looking Statements" below.
Revolving Credit Facility Balance
As of June 16, 2025, the Company had $655 million of outstanding borrowings under its Revolving Credit Facility, a decline from the $680 million outstanding as of May 5, 2025, and inclusive of a $41 million payment in the second quarter of 2025 in connection with a 1999 Cendant legacy tax matter (which the Company intends to appeal).
Securitization Obligations
In May 2025, the Company entered into an amendment of the existing Apple Ridge Funding LLC securitization program utilized by the Company's relocation services subsidiary that reduced the size of the facility to $180 million (from $200 million) and extended the securitization program until January 15, 2026.
Non-GAAP Definition
Operating EBITDA is our primary non-GAAP measure. Operating EBITDA is defined as net income (loss) adjusted for depreciation and amortization, interest expense, net (excluding relocation services interest for securitization assets and securitization obligations), income taxes, and certain non-core items. Non-core items include non-cash stock-based compensation, restructuring charges, impairments, former parent legacy items, legal contingencies unrelated to normal operations which currently includes industry-wide antitrust lawsuits and class action lawsuits, gains or losses on the early extinguishment of debt, and gains or losses on discontinued operations or the sale of businesses, investments or other assets. The adjustment for stock-based compensation reflect non-cash expenses that are based on grant date fair value, which is influenced by the Company's stock price, and recognized over the requisite service period. The adjustment for legal contingencies excludes cases that are part of our normal operating activities and legal expenses incurred in the ordinary course of business.
We present Operating EBITDA because we believe it is useful as a supplemental measure in evaluating the performance of our operating businesses and provides greater transparency into our results of operations. Our management, including our chief operating decision maker, uses Operating EBITDA as a factor in evaluating the performance of our business. Operating EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations data prepared in accordance with GAAP.
We believe Operating EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, as well as other items that are not core to the operating activities of the Company, which may vary for different companies for reasons unrelated to operating
performance. We further believe that Operating EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Operating EBITDA measure when reporting their results.
Operating EBITDA has limitations as an analytical tool, and you should not consider Operating EBITDA either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations are:
this measure does not reflect changes in, or cash required for, our working capital needs;
this measure does not reflect our interest expense (except for interest related to our securitization obligations), or the cash requirements necessary to service interest or principal payments on our debt;
this measure does not reflect our income tax expense or the cash requirements to pay our taxes;
this measure does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and this measure does not reflect any cash requirements for such replacements; and
other companies may calculate this measure differently so they may not be comparable.
Non-GAAP Financial Estimates
Reconciliations of the Company's estimate of Operating EBITDA for the quarter ended June 30, 2025 and for the year ended December 31, 2025 to estimated net income (loss) attributable to Anywhere are not provided because of the difficulty in forecasting and quantifying the items that would be necessary for such reconciliations. The Company also believes that providing estimates of the amounts that would be required to provide such reconciliations would imply a degree of precision that would be confusing or misleading to investors. These items are uncertain, depend on various factors and may have a material impact on GAAP results.
Forward-Looking Statements
Anywhere Real Estate Inc. published this content on June 17, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on June 17, 2025 at 12:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at support@pubt.io