Continues focused execution of Vision
2025
Narrows net loss for third consecutive
quarter and maintains strong liquidity position
Expands productivity program, expected to
yield additional $120 million in run-rate benefits
- Revenue decreased $6 million or 2% to $266 million from second
quarter 2023, primarily driven by lower pull through weighted lock
volume partially offset by higher pull through weighted gain on
sale margin.
- Total expenses decreased $25 million or 8% to $305 million from
second quarter 2023, driven by cost reductions across almost all
expense categories.
- Expands Vision 2025 productivity program targeting $120 million
of annualized cost reductions, including $100 million of non-volume
related expenses.
- Quarterly net loss narrowed by $15 million or 31% to $34
million from the second quarter of 2023.
- Adjusted net loss declined by $7 million or 22% to $27 million
from the second quarter of 2023.
- Company continues to maintain strong liquidity profile; cash
balance of $717 million compared to $719 million at end of second
quarter 2023.
loanDepot, Inc. (NYSE: LDI) (together with its subsidiaries,
“loanDepot” or the “Company”), a leading provider of home lending
solutions that enable customers to achieve the dream of home
ownership, today announced results for the third quarter ended
September 30, 2023.
“loanDepot continues to make significant progress against the
strategic imperatives laid out in our Vision 2025 plan,” said
President and Chief Executive Officer Frank Martell. “We delivered
our third successive quarter of significantly lower operating
losses driven by margin expansion and the continued benefits of
cost reduction, productivity, and operating leverage. Importantly,
we also benefited from contributions from our servicing platform,
builder partnerships, and home equity lending.
“We continue to aggressively reset our cost structure to address
the impact of generationally low unit volumes as we maintain our
focused execution of Vision 2025, including capturing opportunities
to expand purpose-driven lending in support of the increasingly
diverse communities of first-time homebuyers. We believe our proven
diversified channel strategy, highly talented team, operating
scale, and ongoing cost productivity program will position us well
to capitalize on the eventual recovery of the housing market,”
Martell added.
“Our focus on cost reduction, margin expansion and effective
capital management have been the key drivers underpinning our
ability to maintain a strong liquidity position in the face of the
ongoing market contraction. Importantly, we ended the third quarter
with cash balances essentially unchanged from the prior quarter
end,” said Chief Financial Officer David Hayes. “We remain laser
focused on maintaining significant levels of liquidity as we work
toward run-rate profitability.”
Third Quarter Highlights:
Financial Summary
Three Months Ended
Nine Months Ended
($ in thousands except per share data)
(Unaudited)
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Rate lock volume
$
8,295,935
$
8,973,666
$
12,032,026
$
25,738,036
$
61,620,241
Pull through weighted lock volume(1)
5,685,209
6,057,179
8,755,082
17,067,876
40,968,021
Loan origination volume
6,083,143
6,273,543
9,849,927
17,301,023
47,395,713
Gain on sale margin(2)
2.74
%
2.75
%
1.80
%
2.66
%
1.66
%
Pull through weighted gain on sale
margin(3)
2.93
%
2.85
%
2.03
%
2.69
%
1.92
%
Financial Results
Total revenue
$
265,661
$
271,833
$
274,192
$
745,395
$
1,086,141
Total expense
305,128
330,148
435,125
949,760
1,602,038
Net loss
(34,262
)
(49,759
)
(137,482
)
(175,743
)
(452,623
)
Diluted loss per share
$
(0.09
)
$
(0.13
)
$
(0.37
)
$
(0.48
)
$
(1.29
)
Non-GAAP Financial Measures(4)
Adjusted total revenue
$
266,363
$
275,709
$
249,663
$
768,263
$
1,027,540
Adjusted net loss
(26,859
)
(34,329
)
(116,846
)
(121,457
)
(367,101
)
Adjusted EBITDA (LBITDA)
18,493
6,499
(114,133
)
(4,345
)
(380,049
)
(1)
Pull through weighted rate lock volume is
the principal balance of loans subject to interest rate lock
commitments, net of a pull-through factor for the loan funding
probability.
(2)
Gain on sale margin represents the total
of (i) gain on origination and sale of loans, net, and (ii)
origination income, net, divided by loan origination volume during
period.
(3)
Pull through weighted gain on sale margin
represents the total of (i) gain on origination and sale of loans,
net, and (ii) origination income, net, divided by the pull through
weighted rate lock volume.
(4)
See “Non-GAAP Financial Measures” for a
discussion of Non-GAAP Financial Measures and a reconciliation of
these metrics to their closest GAAP measure.
Operational Highlights
- Quarterly non-volume related expenses decreased $18.7 million
since the second quarter of 2023, primarily due to lower salaries
and benefits resulting from lower headcount and lower legal
expenses.
- Incurred expenses related to Vision 2025 plan of $2.5 million
during the quarter, including $1.2 million of Vision 2025-related
professional services fees, $0.8 million of personnel related
expenses and $0.5 million of lease and other asset impairment
charges. Vision 2025-related expenses totaled $6.8 million in the
second quarter of 2023.
- Accrued $2.0 million of legal expenses related to the expected
settlement of outstanding litigation.
- Pull through weighted lock volume of $5.7 billion for the third
quarter 2023, a decrease of $0.4 billion or 6% from the second
quarter of 2023, resulting in quarterly total revenue of $265.7
million, a decrease of $6.2 million, or 2%, over the same
period.
- Loan origination volume for the third quarter of 2023 was $6.1
billion, a decrease of $0.2 billion or 3% from the second quarter
of 2023.
- Purchase volume decreased to 71% of total loans originated
during the third quarter, down from 73% of total loans originated
during the second quarter of 2023 and up from 70% of total loans
originated during the third quarter of 2022.
- For the three months ended September 30, 2023, our preliminary
organic refinance consumer direct recapture rate1 increased to 71%
from the second quarter’s refinance rate of 68%. This highlights
the effectiveness of our marketing efforts, the strength of our
customer relationships, and the value of our servicing portfolio
for adjacent and complementary revenue opportunities.
- Net loss for the third quarter of 2023 of $34.3 million as
compared to net loss of $49.8 million in the second quarter of
2023. Net loss decreased quarter over quarter primarily due to a
decrease in expenses exceeding the decrease in revenue.
- Adjusted EBITDA for the third quarter of 2023 was $18.5 million
as compared to adjusted EBITDA of $6.5 million for the second
quarter of 2023.
_______________
1 We define organic refinance consumer
direct recapture rate as the total unpaid principal balance (“UPB”)
of loans in our servicing portfolio that are paid in full for
purposes of refinancing the loan on the same property, with the
Company acting as lender on both the existing and new loan, divided
by the UPB of all loans in our servicing portfolio that paid in
full for the purpose of refinancing the loan on the same property.
The recapture rate is finalized following the publication date of
this release when external data becomes available.
Outlook for the fourth quarter of 2023
- Origination volume of between $4 billion and $6 billion.
- Pull-through weighted rate lock volume of between $3.8 billion
and $5.8 billion.
- Pull-through weighted gain on sale margin of between 240 basis
points and 280 basis points.
Servicing
Three Months Ended
Nine Months Ended
Servicing Revenue Data:
($ in thousands)
(Unaudited)
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Due to changes in valuation inputs or
assumptions
$
68,651
$
26,138
$
75,366
$
73,422
$
373,158
Due to collection/realization of cash
flows
(38,502
)
(41,619
)
(49,519
)
(114,777
)
(193,022
)
Realized gains (losses) on sales of
servicing rights, net (1)
3,516
7,021
(13,489
)
10,677
(5,949
)
Net loss from derivatives hedging
servicing rights
(69,353
)
(30,014
)
(50,837
)
(96,290
)
(314,557
)
Changes in fair value of servicing rights,
net
$
(35,688
)
$
(38,474
)
$
(38,479
)
$
(126,968
)
$
(140,370
)
Servicing fee income
$
118,783
$
117,737
$
113,544
$
355,482
$
341,929
(1)
Includes the provision for sold MSRs.
Three Months Ended
Nine Months Ended
Servicing Rights, at Fair
Value:
($ in thousands)
(Unaudited)
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Balance at beginning of period
$
1,998,762
$
2,016,568
$
2,204,593
$
2,025,136
$
1,999,402
Additions
80,068
75,866
124,244
215,229
574,459
Sales proceeds
(73,972
)
(85,164
)
(331,922
)
(171,167
)
(751,276
)
Changes in fair value:
Due to changes in valuation inputs or
assumptions
68,651
26,138
75,366
73,422
373,158
Due to collection/realization of cash
flows
(38,502
)
(41,619
)
(49,519
)
(114,777
)
(193,022
)
Realized gains (losses) on sales of
servicing rights
3,647
6,973
(9,493
)
10,811
10,548
Balance at end of period (1)
$
2,038,654
$
1,998,762
$
2,013,269
$
2,038,654
$
2,013,269
(1)
Balances are net of $14.7 million, $13.3
million, and $16.8 million of servicing rights liability as of
September 30, 2023, June 30, 2023, and September 30, 2022,
respectively.
% Change
Servicing Portfolio Data:
($ in thousands)
(Unaudited)
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep-23
vs
Jun-23
Sep-23
vs
Sep-22
Servicing portfolio (unpaid principal
balance)
$
143,959,705
$
142,479,870
$
139,709,633
1.0
%
3.0
%
Total servicing portfolio (units)
490,191
482,266
463,471
1.6
5.8
60+ days delinquent ($)
$
1,235,443
$
1,192,377
$
1,365,774
3.6
(9.5
)
60+ days delinquent (%)
0.9
%
0.8
%
1.0
%
Servicing rights, net to UPB
1.42
%
1.40
%
1.44
%
Balance Sheet Highlights
% Change
($ in thousands)
(Unaudited)
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep-23
vs
Jun-23
Sep-23
vs
Sep-22
Cash and cash equivalents
$
717,196
$
719,073
$
1,143,948
(0.3
)%
(37.3
)%
Loans held for sale, at fair value
2,070,748
2,256,551
2,692,820
(8.2
)
(23.1
)
Servicing rights, at fair value
2,053,359
2,012,049
2,030,026
2.1
1.1
Total assets
6,078,529
6,203,505
7,378,536
(2.0
)
(17.6
)
Warehouse and other lines of credit
1,897,859
2,046,208
2,529,436
(7.2
)
(25.0
)
Total liabilities
5,309,594
5,406,160
6,300,039
(1.8
)
(15.7
)
Total equity
768,935
797,344
1,078,497
(3.6
)
(28.7
)
A decrease in loans held for sale at September 30, 2023,
resulted in a corresponding decrease in the balance on our
warehouse lines of credit. Total funding capacity with our lending
partners was $3.9 billion at September 30, 2023 and $3.9 billion at
June 30, 2023. Available borrowing capacity was $1.8 billion at
September 30, 2023.
Consolidated Statements of Operations
($ in thousands except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
REVENUES:
Interest income
$
37,253
$
33,060
$
51,202
$
98,271
$
166,888
Interest expense
(34,642
)
(30,209
)
(41,408
)
(91,612
)
(121,220
)
Net interest income
2,611
2,851
9,794
6,659
45,668
Gain on origination and sale of loans,
net
148,849
154,335
156,300
411,336
665,993
Origination income, net
17,740
18,332
21,268
48,088
119,449
Servicing fee income
118,783
117,737
113,544
355,482
341,929
Change in fair value of servicing rights,
net
(35,688
)
(38,474
)
(38,479
)
(126,968
)
(140,370
)
Other income
13,366
17,052
11,765
50,798
53,472
Total net revenues
265,661
271,833
274,192
745,395
1,086,141
EXPENSES:
Personnel expense
141,432
157,799
218,819
440,258
861,382
Marketing and advertising expense
33,894
34,712
42,940
104,520
205,289
Direct origination expense
15,749
17,224
19,463
50,352
106,616
General and administrative expense
46,522
54,817
83,412
157,473
197,089
Occupancy expense
5,903
6,099
9,889
18,083
28,673
Depreciation and amortization
10,592
10,721
10,243
31,339
32,110
Servicing expense
8,532
5,750
14,221
19,116
46,472
Other interest expense
42,504
43,026
36,138
128,619
83,671
Goodwill impairment
—
—
—
—
40,736
Total expenses
305,128
330,148
435,125
949,760
1,602,038
Loss before income taxes
(39,467
)
(58,315
)
(160,933
)
(204,365
)
(515,897
)
Income tax benefit
(5,205
)
(8,556
)
(23,451
)
(28,622
)
(63,274
)
Net loss
(34,262
)
(49,759
)
(137,482
)
(175,743
)
(452,623
)
Net loss attributable to noncontrolling
interests
(17,663
)
(26,316
)
(77,401
)
(92,793
)
(256,873
)
Net loss attributable to loanDepot,
Inc.
$
(16,599
)
$
(23,443
)
$
(60,081
)
$
(82,950
)
$
(195,750
)
Basic loss per share
$
(0.09
)
$
(0.13
)
$
(0.37
)
$
(0.48
)
$
(1.29
)
Diluted loss per share
$
(0.09
)
$
(0.13
)
$
(0.37
)
$
(0.48
)
$
(1.29
)
Consolidated Balance Sheets
($ in thousands)
Sep 30,
2023
Jun 30,
2023
Dec 31,
2022
(Unaudited)
ASSETS
Cash and cash equivalents
$
717,196
$
719,073
$
863,956
Restricted cash
114,765
61,295
116,545
Accounts receivable, net
53,845
68,581
145,279
Loans held for sale, at fair value
2,070,748
2,256,551
2,373,427
Derivative assets, at fair value
86,622
80,382
39,411
Servicing rights, at fair value
2,053,359
2,012,049
2,037,447
Trading securities, at fair value
89,334
93,442
94,243
Property and equipment, net
76,762
82,677
92,889
Operating lease right-of-use asset
32,558
34,040
35,668
Prepaid expenses and other assets
124,756
129,675
155,982
Loans eligible for repurchase
639,806
647,418
634,677
Investments in joint ventures
18,778
18,322
20,410
Total assets
$
6,078,529
$
6,203,505
$
6,609,934
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of credit
$
1,897,859
$
2,046,208
$
2,146,602
Accounts payable and accrued expenses
462,521
407,356
488,696
Derivative liabilities, at fair value
49,742
8,790
67,492
Liability for loans eligible for
repurchase
639,806
647,418
634,677
Operating lease liability
53,579
56,552
61,675
Debt obligations, net
2,206,087
2,239,836
2,289,319
Total liabilities
5,309,594
5,406,160
5,688,461
EQUITY:
Total equity
768,935
797,344
921,473
Total liabilities and equity
$
6,078,529
$
6,203,504
$
6,609,934
Loan Origination and Sales Data
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Loan origination volume by
type:
Conventional conforming
$
3,158,107
$
3,323,678
$
6,002,765
$
9,375,605
$
32,107,768
FHA/VA/USDA
2,354,630
2,337,946
3,038,467
6,371,168
10,665,287
Jumbo
126,408
148,077
571,509
405,551
3,955,056
Other
443,998
463,842
237,186
1,148,699
667,602
Total
$
6,083,143
$
6,273,543
$
9,849,927
$
17,301,023
$
47,395,713
Loan origination volume by
purpose:
Purchase
$
4,337,476
$
4,552,919
$
6,938,408
$
12,403,166
$
24,469,338
Refinance - cash out
1,660,578
1,614,747
2,682,330
4,599,564
18,181,170
Refinance - rate/term
85,089
105,877
229,189
298,293
4,745,205
Total
$
6,083,143
$
6,273,543
$
9,849,927
$
17,301,023
$
47,395,713
Loans sold:
Servicing retained
$
4,175,126
$
3,943,845
$
6,604,979
$
11,396,678
$
34,296,344
Servicing released
2,092,762
2,134,024
5,132,350
6,345,660
18,220,561
Total
$
6,267,888
$
6,077,869
$
11,737,329
$
17,742,338
$
52,516,905
Third Quarter Earnings Call
Management will host a conference call and live webcast today at
5:00 p.m. ET on loanDepot’s Investor Relations website,
investors.loandepot.com, to discuss its earnings results.
The conference call can also be accessed by dialing (888)
440-6385. Please call five minutes in advance to ensure that you
are connected prior to the call. A webcast can also be accessed at
https://events.q4inc.com/attendee/845777270.
A replay of the webcast and transcript will also be made
available on the Investor Relations website following the
conclusion of the event, or can be accessed by dialing (800)
770-2030, conference ID: 2021948, following the conclusion of the
event through December 7, 2023.
For more information about loanDepot, please visit the company’s
Investor Relations website: investors.loandepot.com.
Non-GAAP Financial Measures
To provide investors with information in addition to our results
as determined by GAAP, we disclose certain non-GAAP measures to
assist investors in evaluating our financial results. We believe
these non-GAAP measures provide useful information to investors
regarding our results of operations because each measure assists
both investors and management in analyzing and benchmarking the
performance and value of our business. They facilitate
company-to-company operating performance comparisons by backing out
potential differences caused by variations in hedging strategies,
changes in valuations, capital structures (affecting interest
expense on non-funding debt), taxation, the age and book
depreciation of facilities (affecting relative depreciation
expense), and other cost or benefit items which may vary for
different companies for reasons unrelated to operating performance.
These non-GAAP measures include our Adjusted Total Revenue,
Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per
Share (if dilutive), and Adjusted EBITDA (LBITDA). We exclude from
these non-GAAP financial measures the change in fair value of MSRs
and related hedging gains and losses as they add volatility and are
not indicative of the Company’s operating performance or results of
operation. We also exclude stock-based compensation expense, which
is a non-cash expense, gains or losses on extinguishment of debt
and disposal of fixed assets, non-cash goodwill impairment, and
other impairment charges to intangible assets and operating lease
right-of-use assets as management does not consider these costs to
be indicative of our performance or results of operations. Adjusted
EBITDA (LBITDA) includes interest expense on funding facilities,
which are recorded as a component of “net interest income
(expense),” as these expenses are a direct operating expense driven
by loan origination volume. By contrast, interest expense on our
non-funding debt is a function of our capital structure and is
therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for
income taxes are made to reflect historical results of operations
on the basis that it was taxed as a corporation under the Internal
Revenue Code, and therefore subject to U.S. federal, state and
local income taxes. Adjustments to Diluted Weighted Average Shares
Outstanding assumes the pro forma conversion of weighted average
Class C shares to Class A common stock. These non-GAAP measures
have limitations as analytical tools, and should not be considered
in isolation or as a substitute for revenue, net income, or any
other operating performance measure calculated in accordance with
GAAP, and may not be comparable to a similarly titled measure
reported by other companies. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements
for capital expenditures or contractual commitments;
- Adjusted EBITDA (LBITDA) does not reflect the significant
interest expense or the cash requirements necessary to service
interest or principal payment on our debt;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced or require improvements in the future, and Adjusted Total
Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA)
do not reflect any cash requirement for such replacements or
improvements; and
- they are not adjusted for all non-cash income or expense items
that are reflected in our statements of cash flows.
Because of these limitations, Adjusted Total Revenue, Adjusted
Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and
Adjusted EBITDA (LBITDA) are not intended as alternatives to total
revenue, net income (loss), net income (loss) attributable to the
Company, or Diluted Earnings (Loss) Per Share or as an indicator of
our operating performance and should not be considered as measures
of discretionary cash available to us to invest in the growth of
our business or as measures of cash that will be available to us to
meet our obligations. We compensate for these limitations by using
Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted
Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA)
along with other comparative tools, together with U.S. GAAP
measurements, to assist in the evaluation of operating performance.
See below for a reconciliation of these non-GAAP measures to their
most comparable U.S. GAAP measures.
Reconciliation of Total Revenue to
Adjusted Total Revenue
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Total net revenue
$
265,661
$
271,833
$
274,192
$
745,395
$
1,086,141
Change in fair value of servicing rights,
net of hedging gains and losses(1)
702
3,876
(24,529
)
22,868
(58,601
)
Adjusted total revenue
$
266,363
$
275,709
$
249,663
$
768,263
$
1,027,540
(1)
Represents the change in the fair value of
servicing rights due to changes in valuation inputs or assumptions,
net of gains or losses from derivatives hedging servicing
rights.
Reconciliation of Net Income (Loss) to
Adjusted Net Income (Loss)
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Net loss attributable to loanDepot,
Inc.
$
(16,599
)
$
(23,443
)
$
(60,081
)
$
(82,950
)
$
(195,750
)
Net loss from the pro forma conversion of
Class C common shares to Class A common shares (1)
(17,663
)
(26,316
)
(77,401
)
(92,793
)
(256,873
)
Net loss
(34,262
)
(49,759
)
(137,482
)
(175,743
)
(452,623
)
Adjustments to the benefit for income
taxes(2)
4,845
6,916
20,124
25,054
66,787
Tax-effected net loss
(29,417
)
(42,843
)
(117,358
)
(150,689
)
(385,836
)
Change in fair value of servicing rights,
net of hedging gains and losses(3)
702
3,876
(24,529
)
22,868
(58,601
)
Stock-based compensation expense
3,940
5,754
4,773
15,619
11,794
Gain on extinguishment of debt
(1,651
)
(39
)
—
(1,690
)
(10,528
)
Loss on disposal of fixed assets
93
751
11,026
1,105
11,026
Goodwill impairment
—
—
—
—
40,736
Other impairment
129
686
9,149
470
15,112
Tax effect of adjustments(4)
(655
)
(2,514
)
93
(9,140
)
9,196
Adjusted net loss
$
(26,859
)
$
(34,329
)
$
(116,846
)
$
(121,457
)
$
(367,101
)
(1)
Reflects net loss to Class A common stock
and Class D common stock from the pro forma exchange of Class C
common stock.
(2)
loanDepot, Inc. is subject to federal,
state and local income taxes. Adjustments to income tax benefit
reflect the effective income tax rates below, and the pro forma
assumption that loanDepot, Inc. owns 100% of LD Holdings.
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Statutory U.S. federal income tax rate
21.00
%
21.00
%
21.00
%
21.00
%
21.00
%
State and local income taxes (net of
federal benefit)
6.43
%
5.28
%
5.00
%
6.00
%
5.00
%
Effective income tax rate
27.43
%
26.28
%
26.00
%
27.00
%
26.00
%
(3)
Represents the change in the fair value of
servicing rights due to changes in valuation inputs or assumptions,
net of gains or losses from derivatives hedging servicing
rights.
(4)
Amounts represent the income tax effect
using the aforementioned effective income tax rates, excluding
certain discrete tax items.
Reconciliation of Adjusted Diluted
Weighted Average Shares Outstanding to Diluted Weighted Average
Shares Outstanding
($ in thousands except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Net loss attributable to loanDepot,
Inc.
$
(16,599
)
$
(23,443
)
$
(60,081
)
$
(82,950
)
$
(195,750
)
Adjusted net loss
(26,859
)
(34,329
)
(116,846
)
(121,457
)
(367,101
)
Share Data:
Diluted weighted average shares of Class A
and Class D common stock outstanding
175,962,804
173,908,030
162,464,369
173,568,986
151,803,928
Assumed pro forma conversion of weighted
average Class C shares to Class A common stock
147,171,089
148,597,745
156,677,534
148,741,661
167,796,888
Adjusted diluted weighted average shares
outstanding
323,133,893
322,505,775
319,141,903
322,310,647
319,600,816
Reconciliation of Net Income (Loss) to
Adjusted EBITDA (LBITDA)
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
Sep 30,
2023
Jun 30,
2023
Sep 30,
2022
Sep 30,
2023
Sep 30,
2022
Net loss
$
(34,262
)
$
(49,759
)
$
(137,482
)
$
(175,743
)
$
(452,623
)
Interest expense - non-funding debt
(1)
42,504
43,026
36,138
128,619
83,671
Income tax benefit
(5,205
)
(8,556
)
(23,451
)
(28,622
)
(63,274
)
Depreciation and amortization
10,592
10,721
10,243
31,339
32,110
Change in fair value of servicing rights,
net of hedging gains and losses(2)
702
3,876
(24,529
)
22,868
(58,601
)
Stock-based compensation expense
3,940
5,754
4,773
15,619
11,794
Loss on disposal of fixed assets
93
751
11,026
1,105
11,026
Goodwill impairment
—
—
—
—
40,736
Other impairment (recovery)
129
686
9,149
470
15,112
Adjusted EBITDA (LBITDA)
$
18,493
$
6,499
$
(114,133
)
$
(4,345
)
$
(380,049
)
(1)
Represents other interest expense, which
includes gain on extinguishment of debt and amortization of debt
issuance costs, in the Company’s consolidated statements of
operations.
(2)
Represents the change in the fair value of
servicing rights due to changes in valuation inputs or assumptions,
net of gains or losses from derivatives hedging servicing
rights.
Forward-Looking Statements
This press release may contain "forward-looking statements,"
which reflect loanDepot's current views with respect to, among
other things, our business strategies, including the Vision 2025
plan, including our expanded productivity program, our progress
toward run-rate profitability, our HELOC product, financial
condition and liquidity, competitive position, industry and
regulatory environment, potential growth opportunities, the effects
of competition, operations and financial performance. You can
identify these statements by the use of words such as "outlook,"
"potential," "continue," "may," "seek," "approximately," "predict,"
"believe," "expect," "plan," "intend," "estimate," “project,” or
"anticipate" and similar expressions or the negative versions of
these words or comparable words, as well as future or conditional
verbs such as "will," "should," "would" and "could." These
forward-looking statements are based on current available
operating, financial, economic and other information, and are not
guarantees of future performance and are subject to risks,
uncertainties and assumptions, including but not limited to, the
following: our ability to achieve the expected benefits of our
Vision 2025 plan and the success of our cost-reduction initiatives,
such as the expanded productivity program; our ability to achieve
run-rate profitability; our loan production volume; our ability to
maintain an operating platform and management system sufficient to
conduct our business; our ability to maintain warehouse lines of
credit and other sources of capital and liquidity; cyberattacks,
information or security breaches and technology disruptions or
failures, of ours or of our third party vendors; the outcome of
legal proceedings to which we are a party; adverse changes in
macroeconomic and U.S. residential real estate and mortgage market
conditions, including increases in interest rate levels; changing
federal, state and local laws, as well as changing regulatory
enforcement policies and priorities; and other risks detailed in
the "Risk Factors" section of loanDepot, Inc.'s Annual Report on
Form 10-K for the year ended December 31, 2022 and Quarterly
Reports on Form 10-Q as well as any subsequent filings with the
Securities and Exchange Commission, which are difficult to predict.
Therefore, current plans, anticipated actions, financial results,
as well as the anticipated development of the industry, may differ
materially from what is expressed or forecasted in any
forward-looking statement. loanDepot does not undertake any
obligation to publicly update or revise any forward-looking
statement to reflect future events or circumstances, except as
required by applicable law.
About loanDepot
loanDepot (NYSE: LDI) is a digital commerce company committed to
serving its customers throughout the home ownership journey. Since
its launch in 2010, loanDepot the pioneering leader of the mortgage
industry with a digital-first approach that makes it easier, faster
and less stressful to purchase or refinance a home. Today, as one
of the nation's largest non-bank mortgage lenders, loanDepot
enables customers to achieve the American dream of homeownership
through a broad suite of lending and real estate services that
simplify one of life's most complex transactions. With headquarters
in Southern California and offices nationwide, loanDepot is
committed to serving the communities in which its team lives and
works through a variety of local, regional and national
philanthropic efforts.
LDI-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107281166/en/
Investor Relations Contact: Gerhard Erdelji Senior Vice
President, Investor Relations (949) 822-4074
gerdelji@loandepot.com
Media Contact: Rebecca Anderson Senior Vice President,
Communications & Public Relations (949) 822-4024
rebeccaanderson@loandepot.com
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