Anywhere Real Estate reported another quarter of muted growth despite its landmark sale to Compass.
The parent company of Corcoran, Coldwell Banker, Century 21 and Sotheby’s International Realty posted a net loss of $13 million in the third quarter, a drop from its $7 million net gain from the same time last year. Revenue was up 6 percent to $1.6 billion.
Anywhere slightly outpaced the market with transaction volume up 7 percent compared to last year, again driven by its luxury brand segment that grew 12 percent. The brokerage sold 345 homes for $10 million or more, a 30 percent increase from last year.
The company’s bottom-line earnings suffered from its 193 percent stock jump over the course of the quarter, driven by its nearly 50 percent stock jump to over $10 after the announcement of the sale to Compass.
The increase led Anywhere to recognize $24 million in expenses from the surge in the value of employee stock awards, which drove its earnings down to $100 million from $108 million the year prior.
Anywhere continued to focus on reducing its debt, reducing its revolver balance by $195 million in the third quarter. The company has $2.6 billion in total corporate debt and $139 million in cash on its balance sheet.
Given the impending transaction with Compass, Anywhere is no longer reporting revenue guidance, but chief financial officer Charlotte Simonelli confirmed that the company is on pace to cut $100 million in costs this year after another $28 million reduction in the third quarter.
Revenues for the owned brokerage segment were up 7 percent to $1.3 billion, but operating EBITDA (earnings before interest, taxes, depreciation and amortization) was an $11 million loss, the same as last year. The franchise segment’s operating EBITDA was $155 million for the quarter, up 3 percent.
Simonelli said that Anywhere’s title group EBITDA loss of $1 million was reflective of the high fixed-cost nature of the business in a difficult housing market.
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Anywhere Real Estate reported another quarter of muted growth despite its landmark sale to Compass. The parent company of Corcoran, Coldwell Banker, Century 21 and Sotheby’s International Realty posted a net loss of $13 million in the third quarter, a drop from its $7 million net gain from the same time last year. Revenue was up 6 percent to $1.6 billion. Anywhere slightly outpaced the market with transaction volume up 7 percent compared to last year,){kind=link}