Finance of America Companies Inc.

Hello, thank you for standing by. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Finance of America first quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session, and if you would like to ask a question, it is star one. I would now like to turn the conference over to Michael Fant, Senior Vice President, Finance. You may begin.

Thank you, and good afternoon, everyone, and welcome to Finance of America's first quarter 2024 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 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 discussed on today's call to the extent available without unreasonable efforts 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, 2023, filed with the SEC on March 15, 2024. The 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 that today we are discussing interim period financials, which are unaudited. Now, I would like to turn the call over to Finance of America's Chief Executive Officer, Graham Fleming. Graham?

Thank you, Michael. Good afternoon, everyone, and thank you for joining us on our first quarter 2024 earnings call. Finance of America continues to deliver against its strategic plan. We believe the business is well positioned to return to sustained profitability and continues to be the leading provider of home equity-based financing solutions for a modern retirement with the potential to reach tens of millions of customers nationwide. To that end, we announced earlier today our plans to consolidate our existing wholesale and retail branding, Finance of America Reverse and AAG, under the single brand name of Finance of America. We believe that a unified brand will help elevate the company's product offerings, which is crucial to our broader efforts to modernize how customers perceive and engage with the brand. Looking at the numbers, on a continuing operations basis, we recorded gap net loss of $16 million, or $0.06 per basic share, in the first quarter. These results were driven primarily by an improvement in operating performance compared to recent quarters, as margin improved and remained strong through the quarter. On an adjusted basis, in the first quarter, we recognized a net loss of $7 million, or $0.03 per fully diluted share. This is a 65% improvement from the net loss of $20 million, or $0.09 per fully diluted share in the fourth quarter. These numbers point to an overall increase in operating profitability, resulting from both higher revenue and lower costs. In fact, on an adjusted EBITDA basis, The company improved from a loss of $18 million in the fourth quarter to less than $1 million of loss in the first quarter of 2024. During the quarter, reverse volumes were down only 3% to the prior quarter, as previously guided. However, improved margins led to a $5 million increase in revenue in our Originations platform. Our net balance sheet markup due to outside factors was minimal for the quarter, as spread tightening and home price appreciation improvements offset an increase in interest rates. Looking forward, as we come into the spring and summer months and begin to leverage our operational initiatives, we aim to generate an approximate 10% increase in origination volumes for the second quarter to between $465 million and $500 million. Let me now turn things over to Kristen for an update on our operations. Kristen?