Finance of America Companies Inc.

If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to turn the conference over to Michael Fant, Senior Vice President of Finance. Please go ahead.

Thank you, and good afternoon, everyone, and welcome to Finance of America's fourth quarter and full year 2023 earnings call. With me today are Graham Fleming, Chief Executive Officer, Kristen Siefert, President, and Matt Engel, 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. To the extent available without unreasonable efforts, you can find reconciliations of non-GAAP to GAAP financial measures discussed on today's call in our earnings press release 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 today'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 Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023. As such, risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Please note, today we will be discussing interim period financials that are unaudited. Now, I would like to turn the call over to Finance of America's Chief Executive Officer, Graham Fleming.

Graham? Yeah, thank you, Michael. Good afternoon, everyone, and thank you for joining us. To begin, I would like to review our results as well as the broader macro trends we are seeing in the industry. I will then turn things over to Kristen to share our strategic plan. followed by a review of our financials from our Chief Financial Officer, Matt Engel. Overall, 2023 was a transformational period for Finance America. Throughout the year, we completed a series of strategic transactions that helped establish the company as the preeminent platform for homeowners 55 and older seeking to benefit from their home equity. With most of these efforts now behind us, we are excited to move forward. As a business, we are firmly positioned as the leading provider of modern retirement solutions with the potential to reach tens of millions of customers nationwide. For additional information, we have included a presentation on our investor relations website that addresses the potential total addressable market and our view of the investment opportunity. Finance of America is making home equity part of a mainstream modern retirement plan so that more Americans can benefit from the wealth in their home and have better outcomes later in life. With respect to our continuing operations, we recorded gap net income of $171 million or $0.72 per basic share in the fourth quarter. These results were driven primarily by fair value gains recognized in our portfolio of assets given decreases in market rates in the quarter and improved results from operations, which we will discuss shortly. On an adjusted basis, in the fourth quarter, we recognized a net loss of $20 million or $0.09 per fully diluted share. an improvement over the third quarter of 20%. Beginning in retirement solutions, as expected, volumes decreased in the quarter due to seasonality, but improved margins and reduced expenses led to a 67% improvement in adjusted net loss for the quarter. In portfolio management, market volatility had a significant impact on quarterly results. In the fourth quarter, decreases across the yield curve brought about significant increases in fair value of our portfolio of assets. Over the course of the year, the net balance increased by $24 million. Having established a solid foundation from which to grow, we are excited for what lies ahead. We continue to look at avenues to expand our product suite, enhance the customer experience, and drive conversion. These include identifying ways to utilize AI. We have selected key AI partners and are excited to leverage these tools across sales, operations, marketing, and data analytics. Additionally, we remain focused on managing expenses and strengthening our balance sheet for the long term. Let me now turn things over to Kristen for an update on our operations, the integration of the AEG retail platform, and the work we've been doing to enhance our products and sales channels.