Walker & Dunlop, Inc. (NYSE:WD) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET


Walker & Dunlop, Inc. (NYSE:WD) Q3 2019 Earnings Conference Call - Final Transcript


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Welcome to Walker & Dunlop's Third Quarter 2019 Earnings Conference Call and Webcast. Hosting the call today from Walker & Dunlop is Willy Walker, Chairman and CEO. He is joined by Steve Theobald, Chief Financial Officer; and Kelsey Duffey, Vice President of Investor Relations.

Today's call is being recorded and will be available via webcast on the Company's website. [Operator Instructions]

It is now my pleasure to turn the floor over to Kelsey Duffey. Please go ahead.

Kelsey Duffey

Thank you, Bray [Phonetic]. Good morning, everyone. Thank you for joining the Walker & Dunlop third quarter 2019 earnings call. I have with me this morning our Chairman and CEO, Willy Walker; and our CFO, Steve Theobald. This call is being webcast live on our website and a recording will be available later this morning. Both our earnings press release and website provide details on accessing the archived webcast.

This morning, we posted our earnings release and presentation to the Investor Relations section of our website, www.walkerdunlop.com. These slides serve as a reference point for some of what Willy and Steve will touch on during the call.

Please also note that we will reference the non-GAAP financial metric adjusted EBITDA during the course of this call. Please refer to the earnings release posted on our website for a reconciliation of this non-GAAP financial metric.

Investors are urged to carefully read the forward-looking statements language in our earnings release. Statements made on this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe our current expectations and actual results may differ materially. Walker & Dunlop is under no obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise. And we expressly disclaim any obligation to do so. More detailed information about risk factors can be found in our annual and quarterly reports filed with the SEC.

I'll now turn the call over to Willy.

Willy Walker

Thank you, Kelsey. Good morning, everyone, and thank you for joining us. The third quarter was one of the most successful quarters in Walker & Dunlop's history due to strong financial results, record numbers of bankers and brokers hired, positive regulatory decisions, the implementation of technology in new and innovative ways, and the continued progress towards our 2020 goal of generating $1 billion in annual revenues. As shown on Slide 3, we generated $212 million of total revenues in Q3, a 15% increase from a year ago, which drove diluted earnings per share of $1.39, a 21% increase over last year's Q3.

As Steve will discuss later, during a quarter when we added a significant number of bankers and brokers to the platform, still generated outstanding financial returns, due to the strength of our underlying business model. With over $1 million of revenue per employee, a $92 billion servicing portfolio generating huge amounts of cash, and a debt-to-equity ratio of 0.3 times, we feel exceedingly well