Madison-based Realogy Holdings Corp., a global residential real estate franchising and provider of real estate brokerage, relocation and title and settlement services, announced Monday its financial results for the quarter that ended on March 31, 2014.
According to the announcement, the company’s net revenue for the first quarter was $1 billion, a 5 percent increase compared to the first quarter of 2013.
Net loss for the first quarter was $46 million, which includes $70 million of interest expense, $46 million of depreciation and amortization expense and $10 million in pretax charges related to repricing its term loan and repurchases of $44 million of senior secured notes in the first quarter, the company said.
Adjusted EBITDA was $53 million for the first quarter, down from $71 million during the same period last year. The company said this is primarily due to an approximately $20 million reduction in earnings related to the decrease in refinancing activity at its mortgage origination joint venture and the title and settlement services segment.
“Realogy achieved homesale transaction volume growth of 10 percent year-over-year in the first quarter, which is at the midpoint of our prior guidance range," Richard A. Smith, Realogy's chairman, chief executive officer and president, said in a prepared statement. "Our volume growth was driven by a 13 percent increase in average sales price that was partially offset by a 3 percent decline in transaction sides. We saw two opposing trends in the first quarter that caused an overall shift in Realogy's mix of business resulting in a higher average sale price and reduced transaction sides.
“Demand at the higher price points in markets served by our franchisees and company-owned brokerages was strong, while difficult credit standards and rapid home price appreciation, primarily caused by low inventory levels, constrained activity at the entry level of the housing market."
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