Anywhere Real Estate Inc.

The company will be making statements about its future results and other forward-looking statements during this call.

These statements are based on the current expectations, competitive, antitrust, and other litigation, regulatory, and other uncertainties and contingencies, many of which are beyond the control of management, including, among others, industry and macroeconomic developments. Actual results may differ materially for those rest are implied in the forward looking statements. The references made to October in these remarks are preliminary results for the month. October 2024 included one more business day than October 2023. Our discussion on October opened and closed volumes have been adjusted to reflect like for like number of business days. As we have shared multiple times, we have two large expected one time free cash flow headwinds. The first headwind is our approved $83.5 million litigation settlement. We have made $30 million in payments, $10 million was made in 2023, and $20 million was made in Q2 of 2024. The remaining $53.5 million will be due when appeals are resolved. The timing of the appeals is uncertain, depending on the developments in the proceedings, and we currently expect the payment to occur no earlier than mid-2025. Second, the 1999 ascendant legacy tax matter, which is approximately $40 million, is due shortly after notice is received, which has not yet happened but is still anticipated for 2024. Overall, we estimate around $60 million of one-time payments for 2024. For further discussion of these matters, see our SEC periodic reports, including the Form 10-Q we filed this morning. Our free cash flow estimates reference do not include any potential impacts relating to the implementation of industry settlement practice changes, which remain uncertain. The reference to core franchise in these remarks is the franchise segment excluding relocation and leads. Important assumptions and 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. For those who listened to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, November 7th, and have not been updated subsequent to the initial earnings call. Now I will turn the call over to our CEO and President, Ryan Schneider.

Thank you, Alicia. Good morning. I'm proud of Anywhere Real Estate's performance, especially in a third quarter housing market that proved more challenging than anyone had anticipated. We delivered strong EBITDA and free cash flow, invested meaningfully in the business for future growth, strengthened our balance sheet, and made significant strategic progress across our unique assets. Unlike others, we are not sacrificing long-term potential for short-term earnings. We remain committed to profitable growth, our investing for the future, and our position for meaningful financial octane as the housing market strengthens. During the third quarter of 2024, we delivered $1.5 billion of revenue and $94 million of operating EBITDA which includes a couple of one-off headwinds that Charlotte will cover. Our closed transaction volume was flat year over year, with the continuing market trend of units being down and prices rising. Prices continue to be resilient, with most of the country still seeing price gains versus the prior year, as demand continues to outpace supply, even with elevated mortgage rates. We did see some interesting geographic variation in Q3, with a few markets like Florida and New York City, where our advisors business is more heavily concentrated, having a tougher quarter. This led to our brand's business outperforming advisors on volume, explaining the small revenue delta when you look year over year. And we love the nationwide performance of our luxury portfolio, which demonstrated great strength in share gains. We continued our track record of executing on what we can control in the quarter as we realized $30 million of cost savings and remain on track to achieve our previously raised $120 million cost savings target for the year. We generated $99 million of free cash flow. Consistent with our top capital allocation priorities, we used our free cash flow to meaningfully invest in the business for future growth and to repay the term loan A and repurchase debt at a discount. And we led the way, helping our agents and franchisees navigate industry changes that took effect in the third quarter. receiving very positive feedback from our network and highlighting our readiness versus our competitors. While the third quarter housing market was tough, I am incredibly optimistic about the near-term outlook. Our October volume results were much stronger than we saw in Q3. October closed volume was up 9% year-over-year, and October open volume, which represents new contracts and future closings, was up 16% year-over-year, including strong unit growth. And remember, these numbers are adjusted for business days to match October 2023, which had one fewer business day. So the unadjusted October numbers are even stronger. And we hope these strong results are the first step in an improving trend that the U.S. housing market clearly needs. We are in a strong position to capitalize for both near-term and medium-term improvements in the housing market. We've demonstrated our ability to generate meaningful EBITDA and free cash flow in this very difficult market and are excited by our financial octane as the market improves. Now turning to our strategic progress in the quarter. First, we are disproportionately investing in luxury and we love our results. Our Corcoran and Sotheby's international realty brands are consistently outperforming the market with 5% volume growth in the quarter. including growing our luxury unit share year over year in a world where units are down across the broader market. Our cobalt banker global luxury agents continue to do great, including the highest sale ever in Miami at $122 million. And we have over 250 closed transactions above $10 million in the quarter, with multiple record sales in different geographies, and we currently have over 1,100 listings above $10 million. Second, we are strategically growing our high-margin franchise business. In Q3, we added 17 new franchisees, further expanding our network. Each of our six brands welcome new franchisees, and we are excited about our robust pipeline. In this time of substantial industry change, our powerful brands, our strong value proposition, and our unique assets are proving to be a competitive differentiator, reflected in our franchise expansion results and positioning us for continued growth. Third, integrating brokerage and title remains a top strategic priority for Anywhere Real Estate. We are on track to complete the nationwide rollout of our brokerage and title integrated services to our own brokerage Coldwell Banker agents later this month. This milestone provides agents with enhanced support and high-value transaction coordination services, interacting seamlessly with both the agent and their client. This saves agents time and expense, allowing our great agents to focus on generating new business. Consumers benefit from a simpler transaction experience and a faster, more seamless closing process, especially when they choose to use our title mortgage and insurance services. And for anywhere, this strategic progress should deliver higher agent and client satisfaction, lower cost per transaction, and more capture of title, mortgage, and insurance. Finally, we're actively executing our AI agenda to drive better experiences faster and at lower cost. Last quarter, we told you how we introduced new generative AI capabilities to our great marketing product called Listing Concierge. The feedback from our agents using this product has been overwhelmingly positive, and they've deployed this generative AI to help successfully market nearly 12,000 listings in just a few months. And from a brand standpoint, it's earned us recognition as an innovation leader, including anywhere real estate being recognized for the best use of AI by a brokerage from one of our industry's leading publications. We also continue to use generative AI to improve our operational efficiency. Building on the brokerage operations document processing example I gave you last quarter, we believe nearly every area of our operations can benefit from generative AI to deliver these better experiences for our customers, both faster than we can today and at lower costs. And we're excited to see our teams experiment with these opportunities in brokerage and title operations, in our lead generation business, in our relocation business, and in functional areas like HR and finance. It's quite clear that all companies across all industries have a powerful transformation opportunity to leverage these new capabilities, and we remain committed to being at the forefront of that journey in the real estate industry. With that, let me turn over to Charlotte for more details on Q3.