Front Yard Residential Corporation (NYSE:RESI) Q4 2018 Earnings Conference Call - Final Transcript

Feb 27, 2019 • 08:30 am ET

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Front Yard Residential Corporation (NYSE:RESI) Q4 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Front Yard Residential Corporation Q4 and Full Year 2018 Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, today's conference may be recorded.

I would now like to turn the call over to Alysia Cherry, Head of Investor Relations. Ma'am, you may begin.

Executive
Alysia Cherry

Thank you, Sidney. Good morning, and thank you for joining us for Front Yard's fourth quarter 2018 earnings conference call. Joining me on today's call is George Ellison, Chief Executive Officer; Robin Lowe, Chief Financial Officer; and Miles Adams, Senior Vice President of Property Operations.

I'd like to guide everyone to the fourth quarter earnings slide presentation available through the Investors section of our website at frontyardresidential.com. These slides were created to accompany the Company's remarks and provide additional information investors may find useful.

I'd also like to inform you that our comments today may contain forward-looking statements relating to the future performance of our business, the Company's financial results, capital allocation and other non-historical information. These statements may involve risks and uncertainties that could cause the Company's actual results to differ materially from those discussed in the forward-looking statements. We describe some of these risks and potential differences in our earnings release as well as the Company's filings with the SEC, including the 2018 Form 10-K we filed today.

We may also discuss certain non-GAAP financial measures. You can find additional information on these measures, including a reconciliation to GAAP, within our earnings release and earnings presentation located in the Investors section of our website.

I'll now turn the call over to George Ellison, Chief Executive Officer. George?

Executive
George Ellison

Thanks, Alysia, and good morning, everyone. It's been another very productive quarter and year at Front Yard Residential. The transition of 12,000 homes from two external property managers to our own platform that started in August is almost complete, and the results are starting to show. We targeted the move of some 4,000 homes from ASPS by year-end 2018, but were able to complete this move by mid-November.

Our next goal was to move the 8,000 homes being managed by MSR by year-end 2019. We then were able to move that goal up to midyear and now are predicting the complete transition to be executed by the end of the first quarter. As you can imagine, transferring homes from one platform to another is complex and challenging. The team has done an outstanding job in doing both the hard detailed work in the background of on-boarding 4,155 homes by year-end and just over 10,000 homes as of today, while the whole time not having our families be inconvenienced and continuing to receive first-class service.

When we purchased HavenBrook in August, we predicted two to three quarters of noise in our financial results. However, the results in the third quarter turned out better than expected. Despite being in the middle of such a transformational integration, the fourth quarter results were very solid as well.