Finance of America Companies Inc.

Good morning, ladies and gentlemen, and welcome to the Finance of America's Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to turn the conference over to Michael Font, Senior Vice President of Finance at Finance of America. Please go ahead, Michael.

Thank you, and good morning, everyone. and welcome to Finance of America's third quarter earnings call. With me today are Patty Cook, Chief Executive Officer, and Johan Gehrig, Chief Financial Officer. As a reminder, this call is being recorded, and you can find the earnings release and presentation on our investor relations website at www.financeofamerica.com. In addition, we will refer to certain non-GAAP financial measures on this call. You can find reconciliations of non-GAAP to GAAP financial measures to the extent available without unreasonable effort, discussed on today's call in our earnings press release and on the investor relations page of our website. Also, I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the safe harbor statement for forward-looking statements that you will find in yesterday's earnings release. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's Form S-1 originally filed with the SEC on May 25, 2021, as well as our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Please note, these are interim period financials and are unaudited. On today's call, Patty will begin with a discussion of our strategic priority, Johan will cover the financial results, and Patty will close by providing insight into how we view our growth opportunities. Now, I would like to turn the call over to Finance of America's Chief Executive Officer, Patty Koch.

Patty? Thanks, Michael, and good morning, everyone. Thank you for joining us for our third quarter call. We're going to spend a little more time than usual as we want to discuss our strategic priorities and opportunities for growth. First off, let me start by saying that I could not be prouder of our performance this quarter, as well as the hard work of the entire Finance of America team. Every segment of our business grew revenue and increased profitability compared to last quarter. In fact, our year-to-day revenue of $1.4 billion is up 7% compared to the same period last year. This is a remarkable achievement if you consider the huge bar that mortgage set in 2020. And it's a testament to not only the strong growth we have seen in our non-mortgage businesses, but also our unique operating model. As a result, we generated basic earnings per share of 36 cents, and adjusted fully diluted earnings per share of 39, which is up 30% compared to last quarter. Our growth can be attributed to two fundamental pillars that our businesses stand upon, product innovation and capital markets expertise. No other non-bank consumer lending company can match the breadth of our products and distribution, and underpinning our broad product range are very sophisticated capital markets capabilities. These not only maximize the value we get for our production, but also rapidly take advantage of opportunities the market presents. This combination is unmatched in the consumer lending arena and has allowed us to continue growing profitably despite an anticipated slowdown in the mortgage market. Our business model is purposefully different from mortgage companies that are generally designed around a single lending platform that offers one-size-fits-all mortgages with an eye toward maximizing transaction value. We are a specially financed company built to capture lifetime household value. Yet, unlike many fintechs that carry massive valuations but lose hundreds of millions of dollars, we are profitable today and will remain focused on profitable growth going forward. As you will see when Johan covers the segment results, our non-mortgage businesses now account for 49% of our revenue and 80% of our adjusted net income. More importantly, I expect those ratios to increase in the future. I will talk more about our growth expectations towards the end of this call. We are cognizant of the economic outlook and as a result, are focused on three immediate strategic priorities. First, we will continue to optimize the mortgage business in a way that allows us to disproportionately benefit from the expected growth of the purchase and non-agency market, yet remain able to take advantage of the episodic refinance opportunities as we did in 2020. We are laser-focused on capitalizing on the strength of our large and successful purchase-centric distribution network and introducing new products like Flex, our non-agency mortgage. Secondly, we will continue making significant investments in our specially financed businesses, such as reverse, commercial, and home improvement to further accelerate growth. I will cover this in depth at the end of the call when I talk about our growth prospects. Lastly, and this is something I am really excited about, we are investing heavily in our technology data and operating models to capture the substantial lifetime household value inherent in our franchise. We talk about lifetime household value rather than lifetime consumer value, since our products not only allow us to deliver an enduring, personalized experience that meets customers' specific financing needs at various stages of life, but also capture multi-generational relationships. We believe that customers and their families benefit when lending is treated holistically in the context of their ongoing financial journey, not as random one-off transactions. No other consumer lending platform can offer a student loan all the way to a reverse mortgage at the scale that Finance of America can. With that, I'll hand it over to Johan to walk through the financials before I close out with some important remarks on growth and our expectations for the fourth quarter.