- Originations of $6.5 Billion
- Net Revenue of $285.7 Million
- Net Income Attributable to Guild of $37.6 Million
- Adjusted Net Income of $30.7 Million
- Return on Equity of 12.3% and Adjusted Return on Equity of
10.1%
- Gain on Sale Margin on Originations of 326 bps
- 92% of Originations were Purchase Originations
- Paid Special Dividend of $0.50 per share
Guild Holdings Company (NYSE: GHLD) (“Guild” or the “Company”),
a growth-oriented mortgage company that employs a
relationship-based loan sourcing strategy to execute on its mission
of delivering the promise of homeownership, today announced results
for the second quarter ended June 30, 2024.
“Our second quarter results demonstrate Guild's highly
successful strategy to increase market share, by investing in
people and technology, to drive growth in our originations and
servicing portfolio. Our continued ability to execute effectively
in a challenging market environment is illustrated by our
origination volume increasing 69% quarter-over-quarter, compared to
14% for the industry, a strong indicator of our ability to take
market share. We are also pleased to produce strong adjusted net
income of $30.7 million as we continued to ramp up and integrate
the acquisition of Academy Mortgage,” stated Terry Schmidt, Guild
Chief Executive Officer. “Additional highlights of the quarter
include the launch and integration of our internal, proprietary
artificial intelligence model, GuildGPT, with our sales team. Our
ongoing technology investments, deep product offerings, extensive
customer database, and unwavering commitment to local relationships
through origination and servicing, positions the Guild platform to
continue to drive organic growth as market conditions improve. We
will also maintain our pursuit of selective acquisitions that align
with our model and culture, as we seek to deliver meaningful growth
and value for our shareholders over time.”
Second Quarter
2024
Highlights
Total originations of $6.5 billion
compared to $3.9 billion in the prior quarter
Originated 92% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association industry estimate of 78% for the same period
Net revenue of $285.7 million compared to
$231.8 million in the prior quarter
Net income attributable to Guild of $37.6
million compared to net income of $28.5 million in the prior
quarter
Servicing portfolio unpaid principal
balance of $89.1 billion as of June 30, 2024, up 3% compared to
$86.3 billion as of March 31, 2024
Adjusted net income and adjusted EBITDA
totaled $30.7 million and $41.6 million, respectively, compared to
$8.0 million and $16.0 million, respectively, in the prior
quarter
Return on equity of 12.3% and adjusted
return on equity of 10.1%, compared to 9.5% and 2.7%, respectively,
in the prior quarter
Year-To-Date
2024
Highlights
Total originations of $10.4 billion
compared to $7.3 billion in the prior year
Originated 92% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association estimate of 78% for the same period
Net revenue of $517.5 million compared to
$340.7 million in the prior year
Net income attributable to Guild of $66.1
million compared to net loss of $0.3 million in the prior year
Servicing portfolio unpaid principal
balance of $89.1 billion as of June 30, 2024, up 9% compared to
$82.0 billion as of June 30, 2023
Adjusted net income and adjusted EBITDA
totaled $38.8 million and $57.5 million, respectively, compared to
$6.4 million and $17.7 million, respectively, in the prior year
Return on equity of 11.0% and adjusted
return on equity of 6.4%, compared to 0.0% and 1.0%, respectively,
in the prior year
Second Quarter Summary
Please refer to “Key Performance Indicators” and “GAAP to
Non-GAAP Reconciliations” elsewhere in this release for a
description of the key performance indicators and definitions of
the non-GAAP measures and reconciliations to the nearest comparable
financial measures calculated and presented in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”).
($ amounts in millions, except per share
amounts)
2Q'24
1Q'24
%∆
YTD'24
YTD'23
%∆
Total originations
$6,525.9
$3,852.5
69%
$10,378.4
$7,292.5
42%
Gain on sale margin on originations
(bps)
326
364
(10)%
340
323
5%
Gain on sale margin on pull-through
adjusted locked volume (bps)
315
290
9%
305
299
2%
UPB of servicing portfolio (period
end)
$89,092.9
$86,319.1
3%
$89,092.9
$82,030.4
9%
Net revenue
$285.7
$231.8
23%
$517.5
$340.7
52%
Total expenses
$241.2
$193.2
25%
$434.4
$341.1
27%
Net income (loss) attributable to
Guild
$37.6
$28.5
32%
$66.1
($0.3)
NM
Return on equity
12.3%
9.5%
30%
11.0%
—%
NM
Adjusted net income
$30.7
$8.0
282%
$38.8
$6.4
507%
Adjusted EBITDA
$41.6
$16.0
161%
$57.5
$17.7
225%
Adjusted return on equity
10.1%
2.7%
274%
6.4%
1.0%
527%
Earnings (loss) per share
$0.61
$0.47
30%
$1.08
$—
NM
Diluted earnings (loss) per share
$0.60
$0.46
30%
$1.06
$—
NM
Adjusted earnings per share
$0.50
$0.13
285%
$0.63
$0.10
530%
Adjusted diluted earnings per share
$0.49
$0.13
277%
$0.62
$0.10
520%
__________________________
NM—Not meaningful.
Origination Segment Results
Origination segment net loss was $3.1 million in the second
quarter compared to net loss of $24.2 million in the prior quarter
primarily driven by higher origination volumes. Gain on sale
margins on originations decreased 38 bps quarter-over-quarter to
326 bps. Gain on sale margins on pull-through adjusted locked
volume increased 25 bps quarter-over-quarter to 315 bps and total
pull-through adjusted locked volume was $6.5 billion compared to
$4.6 billion in the prior quarter.
($ amounts in millions)
2Q'24
1Q'24
%∆
YTD'24
YTD'23
%∆
Total originations
$6,525.9
$3,852.5
69%
$10,378.4
$7,292.5
42%
Total origination units (000’s)
19.2
11.9
61%
31.1
22.4
39%
Net revenue
$208.8
$137.9
51%
$346.7
$233.9
48%
Total expenses
$211.9
$162.1
31%
$374.0
$288.0
30%
Net loss allocated to origination
($3.1)
($24.2)
87%
($27.3)
($54.1)
50%
Servicing Segment Results
Servicing segment net income was $69.5 million in the second
quarter compared to net income of $83.9 million in the prior
quarter. The Company retained mortgage servicing rights (“MSRs”)
for 68% of total loans sold in the second quarter of 2024.
In the second quarter of 2024, valuation adjustments with
respect to the Company’s MSRs totaled a gain of $2.1 million,
compared to a gain of $20.8 million in the prior quarter. Guild’s
purchase recapture rate was 27% in the second quarter of 2024,
which aligns with the Company’s focus on customer service and its
customer for life strategy.
($ amounts in millions)
2Q'24
1Q'24
%∆
YTD'24
YTD'23
%∆
UPB of servicing portfolio (period
end)
$89,092.9
$86,319.1
3%
$89,092.9
$82,030.4
9%
# Loans serviced (000’s) (period end)
358
349
3%
358
335
7%
Loan servicing and other fees
$67.7
$65.8
3%
$133.5
$120.3
11%
Valuation adjustment of MSRs
$2.1
$20.8
(90)%
$22.9
($27.0)
185%
Net revenue
$81.4
$97.4
(16)%
$178.9
$111.9
60%
Total expenses
$11.9
$13.5
(12)%
$25.4
$23.5
8%
Net income allocated to servicing
$69.5
$83.9
(17)%
$153.5
$88.4
74%
Share Repurchase Program and Dividends
During the three months ended June 30, 2024, the Company
repurchased and subsequently retired 14,221 shares of Guild's Class
A common stock at an average purchase price of $14.09 per share. As
of June 30, 2024, $10.7 million remains available for repurchase
under the Company’s share repurchase program.
On May 8, 2024, the Company's Board of Directors declared a
special cash dividend of $0.50 per share on the Company’s Class A
common stock and Class B common stock, payable on June 6, 2024, to
stockholders of record at the close of business on May 20,
2024.
Balance Sheet and Liquidity Highlights
The Company’s cash and cash equivalents position was $102.2
million as of June 30, 2024. The Company’s unutilized loan funding
capacity was $375.9 million based on total facility size and
borrowing limitations, while the unutilized MSR lines of credit was
$214.0 million, based on total committed amounts and borrowing base
limitations. The Company’s leverage ratio was 1.9x, defined as
recourse debt divided by tangible stockholders’ equity.
(in millions, except per share
amounts)
June 30, 2024
December 31,
2023
Cash and cash equivalents
$
102.2
$
120.3
Mortgage servicing rights, at fair
value
$
1,292.7
$
1,161.4
Warehouse lines of credit, net
$
1,616.6
$
833.8
Notes payable
$
271.0
$
148.8
Total stockholders’ equity
$
1,222.4
$
1,183.5
Tangible net book value per share(1)
$
16.15
$
15.90
_________________ (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 Thursday,
August 8, 2024 at 5 p.m. Eastern Time to discuss the Company’s
results for the second quarter ended June 30, 2024.
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 August 22, 2024. The replay is also available by
dialing 1-844-512-2921 (United States) or 1-412-317-6671
(international). The replay pin number is 13746929.
About Guild Holdings Company
Guild Mortgage Company, a wholly owned subsidiary of Guild
Holdings Company (NYSE: GHLD), was founded in 1960 and is a
nationally recognized independent mortgage lender providing
residential mortgage products and local in-house origination and
servicing. Guild employs a relationship-based loan sourcing
strategy to execute on its mission of delivering the promise of
home ownership in neighborhoods and communities across 49 states
and the District of Columbia. Guild’s highly trained loan
professionals are experienced in government-sponsored programs such
as FHA, VA, USDA, down payment assistance programs and other
specialized loan programs. For more information visit
https://www.guildmortgage.com/.
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 U.S. residential real estate market conditions;
any changes in certain U.S. government-sponsored entities and
government agencies, and any organizational or pricing changes in
these entities, their guidelines or their current roles; any
changes in prevailing interest rates or U.S. monetary policies; the
effects of any termination of our servicing rights; we depend on
our loan funding facilities to fund mortgage loans and otherwise
operate our business; the effects of our existing and future
indebtedness on our liquidity and our ability to operate our
business; any disruption in the technology that supports our
origination and servicing platform; our failure to identify,
develop and integrate acquisitions of other companies or
technologies; pressure from existing and new competitors; any
failure to maintain or grow our historical referral relationships
with our referral partners; any delays in recovering service
advances; any failure to adapt to and implement technological
changes; any cybersecurity breaches or other vulnerability
involving our computer systems or those of certain of our
third-party service providers; our inability to secure additional
capital, if needed, to operate and grow our business; the impact of
operational risks, including employee or consumer fraud, the
obligation to repurchase sold loans in the event of a documentation
error, and data processing system failures and errors; any
repurchase or indemnification obligations caused by the failure of
the loans that we originate to meet certain criteria or
characteristics; the seasonality of the mortgage origination
industry; any non-compliance with the complex laws and regulations
governing our mortgage loan origination and servicing activities;
material changes to the laws, regulations or practices applicable
to reverse mortgage programs; our control by, and any conflicts of
interest with, McCarthy Capital Mortgage Investors, LLC; our
dependence, as a holding company, upon distributions from Guild
Mortgage Company LLC to meet our obligations; and the other risks,
uncertainties and factors set forth under Item IA. – Risk Factors
and all other disclosures appearing in Guild’s Annual Report on
Form 10-K for the year ended December 31, 2023 as well as other
documents Guild files from time to time with the Securities and
Exchange Commission. 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 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 the 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. 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 to 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 the 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, a non-GAAP measure. We define tangible net book value per
share as total stockholders’ equity attributable to Guild, less
goodwill and intangible assets, net divided by the total shares of
our Class A and Class B common stock outstanding.
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.
Condensed Consolidated Balance
Sheets
(unaudited)
(in thousands, except share and per
share amounts)
Jun 30, 2024
Dec 31, 2023
Assets
Cash and cash equivalents
$
102,185
$
120,260
Restricted cash
5,620
7,121
Mortgage loans held for sale, at fair
value
1,729,007
901,227
Reverse mortgage loans held for
investment, at fair value
376,182
315,912
Ginnie Mae loans subject to repurchase
right
568,176
699,622
Mortgage servicing rights, at fair
value
1,292,662
1,161,357
Advances, net
53,640
64,748
Property and equipment, net
16,262
13,913
Right-of-use assets
72,562
65,273
Goodwill and intangible assets, net
230,452
211,306
Other assets
133,096
115,981
Total assets
$
4,579,844
$
3,676,720
Liabilities and stockholders’
equity
Warehouse lines of credit, net
$
1,616,569
$
833,781
Home Equity Conversion Mortgage-Backed
Securities (“HMBS”) related borrowings
358,101
302,183
Ginnie Mae loans subject to repurchase
right
574,707
700,120
Notes payable
271,000
148,766
Accounts payable and accrued expenses
80,253
63,432
Operating lease liabilities
82,780
75,832
Deferred tax liabilities
244,722
225,021
Other liabilities
129,276
144,092
Total liabilities
3,357,408
2,493,227
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued and outstanding
—
—
Class A common stock, $0.01 par value;
250,000,000 shares authorized; 21,061,207 and 20,786,814 shares
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively
211
208
Class B common stock, $0.01 par value;
100,000,000 shares authorized; 40,333,019 shares issued and
outstanding at June 30, 2024 and December 31, 2023
403
403
Additional paid-in capital
51,352
47,158
Retained earnings
1,169,852
1,135,387
Non-controlling interests
618
337
Total stockholders' equity
1,222,436
1,183,493
Total liabilities and stockholders’
equity
$
4,579,844
$
3,676,720
Condensed Consolidated
Statements of Operations
(unaudited)
Three Months Ended
Six Months Ended
(in thousands, except per share
amounts)
Jun 30, 2024
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Revenue
Loan origination fees and gain on sale of
loans, net
$
205,848
$
134,060
$
339,908
$
229,576
Gain on reverse mortgage loans held for
investment and HMBS-related borrowings, net
2,134
3,230
5,364
2,306
Loan servicing and other fees
67,709
65,788
133,497
120,298
Valuation adjustment of mortgage servicing
rights
2,134
20,778
22,912
(26,981
)
Interest income
36,219
24,728
60,947
44,829
Interest expense
(28,647
)
(16,541
)
(45,188
)
(29,591
)
Other income (expense), net
288
(261
)
27
259
Net revenue
285,685
231,782
517,467
340,696
Expenses
Salaries, incentive compensation and
benefits
188,938
140,067
329,005
256,023
General and administrative
28,398
29,211
57,609
41,331
Occupancy, equipment and communication
20,348
19,815
40,163
35,832
Depreciation and amortization
3,970
3,754
7,724
7,399
(Reversal of) provision for foreclosure
losses
(496
)
392
(104
)
470
Total expenses
241,158
193,239
434,397
341,055
Income (loss) before income taxes
44,527
38,543
83,070
(359
)
Income tax expense (benefit)
6,936
10,143
17,079
(100
)
Net income (loss)
37,591
28,400
65,991
(259
)
Net income (loss) attributable to
non-controlling interests
8
(98
)
(90
)
(5
)
Net income (loss) attributable to
Guild
$
37,583
$
28,498
$
66,081
$
(254
)
Earnings (loss) per share attributable to
Class A and Class B Common Stock:
Basic
$
0.61
$
0.47
$
1.08
$
—
Diluted
$
0.60
$
0.46
$
1.06
$
—
Weighted average shares outstanding of
Class A and Class B Common Stock:
Basic
61,337
61,109
61,223
60,931
Diluted
62,393
62,157
62,275
60,931
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)
Jun 30, 2024
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Origination Data
Total originations(1)
$
6,525,898
$
3,852,539
$
10,378,437
$
7,292,475
Total originations (units)(2)
19.2
11.9
31.1
22.4
Gain on sale margin (bps)(3)
326
364
340
323
Pull-through adjusted locked volume(4)
$
6,528,825
$
4,618,203
$
11,147,028
$
7,675,669
Gain on sale margin on pull-through
adjusted locked volume (bps)(5)
315
290
305
299
Purchase recapture rate(6)
27
%
25
%
27
%
28
%
Refinance recapture rate(7)
22
%
26
%
25
%
26
%
Purchase origination %
92
%
91
%
92
%
93
%
Servicing Data
UPB (period end)(8)
$
89,092,933
$
86,319,074
$
89,092,933
$
82,030,408
Loans serviced (period end)(9)
358
349
358
335
_________________ (1)
Total originations includes retail forward
and reverse, brokered, wholesale and correspondent loans.
(2)
Total origination units excludes second
lien mortgages originated at the same time as the first mortgage or
shortly thereafter.
(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 and wholesale 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 88.0%, 88.0% and 85.4% as of
June 30, 2024, March 31, 2024 and June 30, 2023, respectively. We
estimate the pull-through rate based on changes in pricing and
actual borrower behavior using a historical analysis of loan
closing data and “fallout” data with respect to the number of
commitments that have historically remained unexercised.
(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 subserviced forward and reverse
mortgage loans, which had UPB of $2.0 billion, $320.7 million and
$34.5 million as of June 30, 2024, March 31, 2024 and June 30,
2023, respectively, and includes loans held for sale of $1.6
billion, $1.0 billion, and $1.0 billion, respectively.
(9)
Includes loans held for sale, which had
period end number of loans serviced of 6,000, 3,000 and 4,000 as of
June 30, 2024, March 31, 2024, and June 30, 2023 respectively.
GAAP to Non-GAAP
Reconciliations
Reconciliation of Net Income
(Loss) to Adjusted Net Income and Earnings (Loss) Per Share to
Adjusted Earnings Per Share
(unaudited)
Three Months Ended
Six Months Ended
(in millions, except per share
amounts)
Jun 30, 2024
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Net income (loss) attributable to
Guild
$
37.6
$
28.5
$
66.1
$
(0.3
)
Add adjustments:
Change in fair value of MSRs due to model
inputs and assumption
(20.6
)
(32.9
)
(53.5
)
(0.1
)
Change in fair value of contingent
liabilities and notes receivable due to acquisitions, net
6.3
1.1
7.4
1.2
Amortization of acquired intangible
assets
2.4
2.2
4.6
4.0
Stock-based compensation
2.7
2.1
4.8
4.1
Tax impact of adjustments(1)
2.4
7.0
9.4
(2.6
)
Adjusted net income
$
30.7
$
8.0
$
38.8
$
6.4
Weighted average shares outstanding of
Class A and Class B Common Stock:
Basic
61.3
61.1
61.2
60.9
Diluted
62.4
62.2
62.3
60.9
Adjusted diluted(2)
62.4
62.2
62.3
61.7
Earnings (loss) per share—Basic
$
0.61
$
0.47
$
1.08
$
—
Earnings (loss) per share—Diluted
$
0.60
$
0.46
$
1.06
$
—
Adjusted earnings per share—Basic
$
0.50
$
0.13
$
0.63
$
0.10
Adjusted earnings per share—Diluted
$
0.49
$
0.13
$
0.62
$
0.10
_________________ Amounts may not foot due to rounding (1)
Calculated using the estimated effective
tax rate of 25.9%, 25.5%, 25.6% and 28.0% for the three months
ended June 30, 2024 and March 31, 2024 and the six months ended
June 30, 2024 and June 30, 2023, respectively.
(2)
Adjusted diluted weighted average shares
outstanding of Class A and Class B Common Stock for the six months
ended June 30, 2023 includes $0.8 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
June 30, 2024 and March 31, 2024 or for the six months ended June
30, 2024.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
(unaudited)
Three Months Ended
Six Months Ended
(in millions)
Jun 30, 2024
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Net income (loss)
$
37.6
$
28.4
$
66.0
$
(0.3
)
Add adjustments:
Interest expense on non-funding debt
4.7
3.3
8.0
5.4
Income tax expense (benefit)
6.9
10.1
17.1
(0.1
)
Depreciation and amortization
4.0
3.8
7.7
7.4
Change in fair value of MSRs due to model
inputs and assumptions
(20.6
)
(32.9
)
(53.5
)
(0.1
)
Change in fair value of contingent
liabilities and notes receivable due to acquisitions, net
6.3
1.1
7.4
1.2
Stock-based compensation
2.7
2.1
4.8
4.1
Adjusted EBITDA
$
41.6
$
16.0
$
57.5
$
17.7
_________________
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)
Jun 30, 2024
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Income Statement Data:
Net income (loss) attributable to
Guild
$
37.6
$
28.5
$
66.1
$
(0.3
)
Adjusted net income
$
30.7
$
8.0
$
38.8
$
6.4
Average stockholders’ equity
$
1,218.3
$
1,198.8
$
1,203.0
$
1,250.4
Return on equity
12.3
%
9.5
%
11.0
%
—
%
Adjusted return on equity
10.1
%
2.7
%
6.4
%
1.0
%
Reconciliation of Book Value
Per Share to Tangible Net Book Value Per Share
(unaudited)
(in millions, except per share
amounts)
Jun 30, 2024
Dec 31, 2023
Total stockholders' equity
$
1,222.4
$
1,183.5
Less: non-controlling interests
0.6
0.3
Total stockholders' equity attributable to
Guild
$
1,221.8
$
1,183.2
Adjustments:
Goodwill
(198.7
)
(186.2
)
Intangible assets, net
(31.7
)
(25.1
)
Tangible common equity
$
991.4
$
971.9
Ending shares of Class A and Class B
common stock outstanding
61.4
61.1
Book value per share
$
19.90
$
19.36
Tangible net book value per share(1)
$
16.15
$
15.90
_________________ Amounts may not foot due to rounding (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/20240808346174/en/
Investors:
investors@guildmortgage.net 858-956-5130
Media: Melissa Rue Nuffer,
Smith, Tucker mkr@nstpr.com 619-296-0605 Ext. 247
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