Realogy Holdings Corp. (NYSE:RLGY) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:30 am ET


Realogy Holdings Corp. (NYSE:RLGY) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Realogy Holdings Corp. Third Quarter 2019 Earnings Conference Call Via webcast. Today's call is being recorded and a written transcript will be made available in the Investor information section of the company's website later today. A webcast replay will also be made available on the company's website.

At this time I'd like to turn the conference over to Realogy's Senior Vice President Alicia Swift. Please go ahead Alicia.

Alicia Swift

Thank you, Shelby. Good morning and welcome to Realogy's Third Quarter 2019 Earnings Conference Call. On the call with me today are Realogy's CEO and President Ryan Schneider; and Chief Financial Officer Charlotte Simonelli. As shown on slide three of the presentation the company will be making statements about its future results and other forward-looking statements during the call. These statements are based on current expectations and the current economic environment. Forward-looking statements and projections are inherently subject to significant economic competitive and other uncertainties and contingencies many of which are beyond the control of management. Actual results may differ materially from those expressed or implied in the forward-looking statements.

For those who listen to the rebroadcast of this presentation we remind you that the remarks made herein are as of today November 7 and have not been updated subsequent to the initial earnings call. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in our earnings release issued today as well as in our annual and quarterly SEC filings. Also certain non-GAAP financial measures will be discussed on this call. And per SEC rules important information regarding these non-GAAP financial measures is included in our earnings press release. Now I will turn the call over to our CEO and President Ryan Schneider.

Ryan M. Schneider

Good morning and thank you Alicia. I am really looking forward to this call and the Q&A given everything that has happened since we last talked to you three months ago especially the very recent changes in the competitive environment that looked positive for us. We have new product and partnership launches continued agent growth some new efficiency results in the backdrop of an improving housing market. We also have a couple of exciting strategic changes to discuss. Let me start with our Q3 financial results. We generated $223 million in operating EBITDA in the quarter. Our revenue was a little lower than what we expected but expense savings were better than we expected. So we ended the quarter about right where we thought we would. We generated $174 million in free cash flow and reduced debt by $163 million including retiring $93 million of bonds at a $10 million discount.

Given our confidence and commitment in our ability to de-lever Charlotte and her the team sees the latter opportunity to pay down debt while generating better economics for Realogy. We delivered our second consecutive quarter of agent growth in our own brokerage business with the overall agent count up an