HOUS - Earnings call 3 2023 | Anywhere Real Estate Inc.

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Operator

Good morning, and welcome to the Anywhere Real Estate Third Quarter 2023 Earnings Conference Call via webcast. Today's call is being recorded, and a written transcript will be made available in the Investor Information section of the company's website tomorrow. A webcast replay will also be made available on the company's website. At this time, I'd like to turn the conference over to Anywhere Senior Vice President, Alicia Swift. Please go ahead, Alicia.

Alicia Swift

Chris. you, Thank welcome Call and Third XXXX Quarter Good Anywhere to Real Conference for Estate Earnings morning, the Inc.

Financial On the President, Charlotte Chief and Anywhere are Simonelli. Officer, call with Ryan me Schneider; today CEO and

of X about and this the current statements results call. Slide on statements future shown the the based be its statements company forward-looking other environment. expectations are current presentation, and These economic making will during the As on

uncertainties Important in as competitive and in management, or issued in from estimates filings. subject are contingencies, factors litigation, are and well regulatory those other cause which projections other industry including and our of economic, statements, today forward-looking as and differ Forward-looking macroeconomic annual implied results to statements. that are statements beyond and earnings those from developments. inherently materially materially in the expressed the and others, control release of many specified Actual assumptions significant the SEC differ may quarterly actual forward-looking our could results to among

who earnings those been you of are this herein made October the listen the of rebroadcast remind today, remarks the to initial subsequent and as have that updated XX, presentation, not call. we to For

to our I will turn and the call President, Ryan Now Schneider. CEO over

Ryan Schneider

powerful continued and franchise our housing rates. additional us completing removing We Alicia. pushed expanding Anywhere as third our the you, market, reductions mortgage for higher agenda, it to housing strengthening all even strategic high-margin top forward Thank litigation if demonstrated setting balance ability our market cost the with through lead our up the worsened quarter business, in improves. uncertainty, sheet, momentum on

on million. to action revenue of our small realized delivered $XXX our the we generated year, antitrust EBITDA, of legal nearly our We quarter, we third class a reduced million the top-up cost deliver settled and savings quarter seller reserves. which $XXX for million $XXX to million by target and debt nationwide in litigation includes the billion basis. completed We actions operating and $X.X cost of a the our $XX During

that XX% driven be expected looks markets of higher better resilient to Our of market. prices transaction the X%. remain Home by were line primarily we the gains country mortgage in than back with than in rates volume or was issue to supply down quarter, a quarterly half with the year-over-year, bit softer our the approached in overall as performance. seeing than be portfolio continue price even which the XX% biggest Volumes more limits the in

results, leading we've million-dollar-plus with portfolio Sotheby's excited remain segments. best the our many both Now most luxury of had see as at Florida International our The important segment, our and Realty and strategic close about to across year. homes volume we We geographies by variations market our in performance in the flat And outperformed year-over-year it very looking times, Geographies especially talked luxury. last brand versus like market. Colorado being position one vectors. our is

from a the rates. there higher market California there lower from perspective, the and that the And that limited segment of York underperforming like conversely, mortgage New Now has are out market. the challenges geographies combination of end supply and are biggest

housing on have been real about critical and aggressive challenges early are and recognized paydown. Anywhere debt the of remember, quickly reduction current we at cost Here vectors estate, we downturn like clear-eyed the And the very market. moving

what on rebounds. laying for we executing the proactively the success, are We groundwork when especially control, substantial market can

markets. enhance savings and this on are progress our deliver streamlining our those drive our the we business and better we target, $XXX and simplifying, have to efficiencies completed automating are in excited permanent that our by may already we We our can operations, will cost the how actions housing first, So opportunities we that like million over-deliver optimistic opportunities cautiously number. margins further in and

remain work revolver. allocation on repaid proud our to our by bond a past This debt were to debt reduction. we and in builds exchange, nearly open that million. by of remains in on portion reduce over focused the nearly and a done we've completed is as reduction debt able $XXX the market repurchased Second, top am Continuing tremendous laser the bonds our so reduce I the our years quarter debt we we $XXX capital critical priority. million

environment. of advantage taking and ourselves differentiating are competitive the we Third, better

and market versus NAR been Our steady the may see our gainer. profitability excited our to data, have remains to margin over and unchanged. we share We latest the results commitment hold actually focus share quarter were in a

We did settlement in agents to the sales our we better achieving better are both than renewals.Fourth, margins results at are with XXXX, out nationwide in we and in door franchise pleased same cash a litigation. recruiting have we class and seller the action are reached antitrust and less the

expense this and uncertainty comes complex us past protracted move approvals, enables While the settlement needs and the to court that litigation. with still distraction,

looking substantially its profit love our unlike enabled resiliency, strategic of flow competitors, margin its and progress. power of Even the benefits we're our the future, in in we see its Now high our many long-term our free we structure. profitability market, and of scale, forward, cash generations, this reliable We tough and franchise generation contract investing our business. by like

direct. our bigger some our already franchisees Anywhere franchisees. to we title of to especially MLS office partners franchisees. over scale states value power. have our example launch XXX of We upward reduces And separate strong listings invest title our with and staff X our We the continue using ventures. deliver more franchisees or multiple franchisees to to use franchise and/or with across and luxury business their back enhance our related follow, direct is economics in existing our in XX states proposition is new new including to demand, joint seeing to for and franchisees, technology, franchise cost-effective work. from access we're We hire to purchase solutions have strengthen national listings solutions One our attract already the Anywhere technology need franchisee new luxury franchise our using portfolio. pipeline through to is helping continue integrates additional with MLSs which

For to example, I'm year in And or Cork today West this its latest the announce excited XX key and expansion markets Houston. internationally. the across launched expanded has Northeast, market into

someone out, per and win on this can a and they managing a saving our results. XXXX. to several XX%. of win Now makes to us either across is experience and our process. as more as as others digitally We're And it's the us a of hassle and themselves like them easier hundreds with and our automate transaction agents to Agent or a brokerage second, by it, so live Net rollout X we're support in and added for focus in else and agents standardize XX%, new for handle integrating to satisfaction this markets in Anywhere We're business. assist this rolling high-value consumers and close. aggressively mortgage beginning and for part from services be seamless is them transaction services our for closing our This win proposition, title coordination to for Score time we contract broader and with it title, economics to simplify, year-end as Promoter provide It's consumers allows value simpler our work paying earning can operations. capture of faster, create of early the dollars we here transaction a a we insurance is stages

industry-leading using with quarter, powerful excited our shared data scale we're about how I'm I concepts. like AI to build of last you and generative Finally, proof

documentation proof language spend of image and both that And improving and operations activities. tremendous their marketing our large marketing requirements. around have have wide a For potential example, our generation. are of agents both spend our we brokerage and nature, by model has concepts title area activities copywriting given This on range significant

to a people generative have potential. assemble for from AI's ecosystem X to test access we not these launched the challenge use building their value. recently just is most And information, Safeway given our use excitement. in And from exciting scaling with see And to innovation tools but everywhere. pleased protecting of early people and the experimenting coming spend of confidential pilots create, cases, about GPT from these them deliver up We here optimistic we're we're importantly, really, number X those real documents. We more while its these in generative ability with our audit areas, significant and cases and AI underway to

let Now later to going me turn closing But a back more results discuss Charlotte now, in for to our over to few I'm detail. thoughts. with come

Charlotte Simonelli

what on in tough am our well and can and improve the to everyone. third I of we equipped operating cash. housing our EBITDA, proud as to environment meaningful differentiated navigate structure Good delivery continue this quarter manage results and control prudently now our results remain drive to execute future. We cost focused savings, generate capital are morning, we

I due quarter line was mortgage Now saw commission enterprise. employee highlight volume cost in worsened $XXX the million, versus timing operating to to billion, versus and QX the financial our costs down will lower rates. our results. rising which EBITDA and by half QX in latter the third higher prior was down savings with incentive decline, slightly part offset on in agent accruals, XX% we year prior $X.X transaction of revenue quarter volume, transaction year due across

free priorities volumes. the to management demonstrates was legal cash pay reserves we million, in slight year quarter. down strong used We significantly debt. was $XX our our and free cash capital in consistent flow top-up invest This also flow which our prudent despite continued free flow with QX discipline, a flow our the line had our market in allocation free business with cash lower to cash last of and in QX cash

by into balance. and second million, entered full in duplication. and did of our transaction $XXX while successful reduced and had market of and drop In This retaining repaying portion about our August, We expense of seller incurring interest and if minimal incremental lien As through Ryan and repeat secured off? X% XXXX a bond third mentioned, million maturities. notes sorry, about exchanges, litigation... by on Where million for I reduced I'll $XXX repurchases exchanged $XXX myself successfully notes. XXXX participation XXXX revolver we settlement long-dated debt $XXX quarter open debt million our we flexibility new there's the our a antitrust our

$XX about us across The about allowing repurchases opportunistic of notes. also discounts. purchase to price million XXXX the we completed open weighted During million capture our unsecured average debt $XX market and in XXXX XX.X%, quarter, was

free our our lower by capital interest the drastically at million. structure XXXX, rates in our end $XXX reduce used have flow improved Since we company we further and addition, and generation the maturities, debt. $XX In more longer-dated I joined million quarter to cash with revolver borrowings unsecured

before to due focused million liquidity, debt We have net improved investing this feel million and future evaluating debt to always debt with by stack reducing only $XXX are about our weather and We ways our conditions our $XXX ability XXXX. while market remain results. drive reduced also good current ample With to the almost about achieve I goal. on

me go more performance. detail into business segment our on Now let

includes Anywhere $XX Brands marketing in million one revenue volume about Our lower in of even offset worst and seen we've which EBITDA, due to declines, related operating EBITDA declined in operating primarily relocation, partially markets decreases XX in transaction costs. by business, generated leads million and year-over-year housing to $XXX the Operating years.

recurring high over our and love its While we of stability franchise royalty prior time. year, relative the margins versus stream and business down

year down million, Our due marketing $X lower commission slightly QX EBITDA costs, part Anywhere operating $X offset prior by to in million lower negative also expenses. volume Advisors and operating agent and versus higher was

year-over-year. were Our QX of QX up this split XX.X%, QX and continue is in basis in to year-over-year points was parts especially luxury, rate with which line where actually of splits lower are year. business, our and there in And splits our where XX in be

in We $X volumes, see split, Integrated is agent million mix, to million by lower by other stable we operating Services have lower proactive continue GRA actions to EBITDA purchase $X refinance $X of which like Operating expenses was due driven year-over-year savings the which due partially improved in declined was QX. performance. moderation economics and initiatives more and cost better recruiting we operating in offset volumes, lower Anywhere to JV taken. million EBITDA and

million margins are for ourselves year-to-date. $XX changing we of relentlessly million to in on returns. $XXX set the cost higher delivered drive market savings focused and north the our quarter and in operate how We up We business when efficiencies of

We have cost will year above that $XXX already of completed optimistic that the deliver are this and realized actions savings we'll cautiously that million deliver number.

from to inflation. $X.XX of focus segment we our decline totaled $XXX presentation, G&A year-to-date clear is on weaker of provided year-over-year. have see Slide indication achieved our the operating, our structure, housing $X.XX market, or the QX. at total with of the marketing last a down Looking as This expenses billion the realized a cost XX on and expenses savings steadfast billion expenses for you'll help marketing And G&A A ago million approximately our litigation through and details operating, makeup earnings of offset we our XX months. and year

are Our offices. and of operating comprised primarily employees expenses

details our of made in how of there I We to efficiency have we still on XXXX. we by in our streamlining all simplifying, release for across we earnings expectations are a operate. driving automating our of year-end as us in our lot but to more be opportunities these savings and reimagine progress ahead areas believe back expenses operations, will continue provide And

our to updated XXXX. estimates for on Now

transaction still market mortgage now the and decline latter of about volumes For towards full QX, XXXX, the XX% up And year weaker rates to end will higher part we the range. XX% think we to this with part that expect worst of in year-over-year.

Second, last like better our throughout the split Estimates pressure improve split year of call. we are remain about in points. the this year. this the still year-to-date will expect really year-over-year our range based expect XX as transaction and We year. the to actions the now basis area full We volumes that trends, same sequentially narrowing XX and recruiting margins on

discipline working will positive our year programs capital, other items. this cash to excludes free the from our counterbalance expenses housing. management in expect transactions as flow exchange This any and tough operating cash be We impact the of savings debt robust cash favorable modestly nonrecurring and

we And XXXX. this P&L Finally, we to are on savings said cost of I in earlier, may million as track $XXX number. realize outperform

We be outlook navigate have remains growth position continue consistent free has to earnings even and uncertain, future. this generate our an challenging to ability and the reducing on market. we will XXXX for debt, which to been While in cash XXXX flow and invest proven tough for us focused stronger

turn call Ryan now for back Let the closing to me remarks. some

Ryan Schneider

Charlotte. we our quarter, has antitrust the higher franchise consumers and we business, profitability and litigation. I'm focusing And use reaching savings headwinds mitigated with I'm team Even meaningful powerful this exciting enhancing and housing Anywhere, brokerage and AI delivered scale made nationwide how our of risk proud competitive reduced our led we flow, rates some the the excited settlement you, Thank title tough free the by and of advantage on financially the with our Anywhere mortgage and environment. incredibly of strategic integrating by in a environment and progress operations cases agenda through on wins quarter, debt, the over cash creating improved cost agents, benefits delivered our them. how taking generative for in

forward, combined your to results market take outlook strengthens. going we questions. as especially results Now real With uncertain, differentiated progress, delivery, for looking proven our housing the that, ahead, while estate will market strategic Anywhere positions housing XXXX drive our with remains the

Operator

[Operator Instructions].

BTIG. question with Soham first from is Our Bansal

Soham Bhonsle

Ryan, maybe one start. big a to just picture

with all the to could investors think really for are I trying today, years. all next headlines understand, industry the few mean headlines digest the over the what

market that's love share yourself business So industry this just whether could I your step like and for the versus structure, for mean agents you maybe or give thoughts others. of for in number would what on the players back to us

want it? to frame However, you sort of

Ryan Schneider

what, quarter lowest and biggest or this Well, metrics. trend or at look, X.X kind number you just stuff departments a That's either either we of count rates hit end some X.X how year, But market the those a -- cases, years in worsening it's million XX in years our to I the out. unit industry we're is transactions biggest that like in going third that's right? depending or mortgage of is XX year. the the And rough thing housing mean, on million saw only little as X%. headline approach the where and the impacting into

like now. to we're pretty actions if thing the debt normal that's so then a period, a the that's we're over today, they're in money most printing we're remodel that or investments And lot able really of printing or pretty of you of I you still a in things, but the XX-year fact X- still those the proactive it a housing And company strong. bringing be we're world We think money challenging should to in U.S. environment, money, about the cost that's still things. the whether lot a -- housing kind do, like live our market where if right

and the years, demand. saying million That out units. demographics our think the one units given has and million competitors about XX X you And which been XX the supply about there just over demographics. wouldn't unreasonable, If of be averages

through going the scale really issue. it's sites. competitive deep I our mean keep and economics I last about we're But this got at being here. I and -- talk different. the and of it's differentiator with profitability our year. than be ability how long those So look, valley power the there our is through is and margins near-term kind about to we've going and we the to and like recruiting did size investing you competitive better think the a outlook mean, And agents market

in over cash the because market less talking was they term, We the free our they're us. lot about thing a that's aren't or industry smaller either have door a to out we different, good think and cash players have medium the the profitability. And because the flow use investing is against Charles step of don't for

And progress always in be our profitability how And is getting little model deliver a and like market. more free just normal company. reduction say, will as of a what of moves we looks cost a debt still you excited you market this in company we're housing bit the quarter what normal little we a do making And that a and or can cash that normal make keep market. in like efficient really then if bit a so model even share market and we're on we gain maybe flow

field, progress markets. it that's more So everybody, level off a normal everybody. But issue, here pay basis making where in is really obviously, we're affects relative macro some to playing it we the on going a think that in affects

Soham Bhonsle

you plans be year. Okay. Great. if sort there framework next share approaching given to could how probably well, for set just us your you are for Is any today insight to currently, as an important the costs, of next you're make volumes wondering into going where are challenged lever Charlotte, on given some year? give that next can cost you which rates will

Charlotte Simonelli

Yes.

market on the be specificity targeting. with out the us said on more housing I today. the we on locked we're But where like So basically, it's quarter is call, next not -- numbers I'll

that of And this. in I'm next so able it important very on a market us for we'll meaningful type some year. optimistic to focus makes a It's of to number have even row this be for years more X

expect we next share And are something can focused so have that quarter. laser you and you definitely with right to on we'll meaningful it now,

Ryan Schneider

things the of about, a the them Economic doing on the cost side. I cost scale side. on couple we're generative mentioned in talked can continued I up, benefits lot the is AI my we script mean potential a even If a that AI. I of

I done journey. don't on And think so we're that

ship steering captain you great of think has next more there, been and still Charlie have I we'll our a work. for

Operator

Matthew question is Bouley from Barclays with next Capital. The

Anika Dholakia

practice could settlement. this elaborate wondering for you This agents? commission how Dholakia outlined the that think for on overall, Matt. rates the affect from is can I'm And changes Anika on you if you

Ryan Schneider

Yes.

agreed about in these are look, to all out changes. there We of X the practice public. So

implemented the DOJ and thought things Some there of NAR change others, been agreed that to supported on record, good some went was already on the ago we them for and we them. the we industry. had years are X X we already to are actually, that cases, places and In in a we and -- where wanted that them, ahead

transparency to that into a have well. away add our that lot move that I'm too lean those transparency what's of think places to. some a in the agents so And industry, agreed power toward us, they And all not for lot closure rules on of but going our both we mandatory the with agents future buyer supporting our U.S. there operate the of through of seller to of belief markets be the are going kind we from and and speculate of the the moved kind here more happen value. of here. we're to this And and going seller buyer much and

Anika Dholakia

macro more overall Great. second think And my industry And you for attrition to backdrop? I this you starting guess agents? environment given see them real what agents? estate leave the amongst means Are competitive the are the for any for question, top-producing seeing do the you difficult

Ryan Schneider

Yes.

of So look, your great couple question, things. a

definitely agents in our absolutely. those you or leaving you'll low industry. And bit, a of seeing when see there leave because typically agents. So it productivity even the We're the actually people some down no go agent are see part the industry. It's count,

things sometimes, not if we're it's for going helping for of probably look, out they're free a because to that. because is the And they're little of producers, or of a also left people agents really good them new show like then them a time a this be XXXX And state bit not pay When a real not not estate to us. phenomenon. door lot is support. lot fees kind in hit, And when to and had COVID of their QX QX

the of XX% XX% is but XX% trend not doing continuing. of one, is or business the so of the it And a new agents top

we that industry, who's producers really I those on are talking producing talked producing talk good. of not of when no not there's is producing definitely out we're agents about not more concentrated lot business. The that's up our count some do a think to about low agent But people those of I we bad But able right phenomenally movement We're or And we really of them, industry but hot, in right that the doing we as you so an kind in people and with for of of about agents better the are market a it's in that and now. But make our take And successful it's that numbers. are the as time new on enter And back go and at gets aptly lot and always look cyclical, things them a partner we right? kind agents industry. thing. that. retention will recruiting shrinkage

Operator

The next question is from Anthony Paolone with JPMorgan.

Anthony Paolone

one, of I to understand How of the on just like. activity splits moderating I back to growth country, like the from, guess what I'm first look mix? splits. is rebounds around you much splits that just California more in a just normalized like the distribution the guess, and trying get if

Charlotte Simonelli

Yes.

big play It of little quarter. bit It play a geography was doesn't the normally in did role. points. role a than actually the XX So a less basis

didn't on call wouldn't timing development new impact I the another There as some material it's well. from I out impact. So was our most business say

the back sort reported of of kind movements, increase. it than half or of half I noncore what you of split if an So about been out less have would

was, geography It I I normally normally call say relatively it So out impact was minor. quarter. but an it isn't -- doesn't was still because don't would it this it

Anthony Paolone

pickup of these basis, your or.... like, expect, know, if Okay. a regions like go-forward a of sense shouldn't normalized, basis XXX, on But we lot point bigger I XXX kind is that don't

Charlotte Simonelli

No.

Anthony Paolone

that? it's not like like something

Charlotte Simonelli

California one of markets, now, too. Florida stronger also Keep right and like remains in markets, split York. the of counterbalancing New we things have one and Florida higher between the mind, is

to it's So how interesting part. the the and most York New other each long counterbalance tend California haul for in

Anthony Paolone

balance what's Ryan, things And about it. term, the a for Got socialized you better mean like mind and Or prompt lack would at some a forward. number think interest rates rates? for what higher see there a be you level activity? sense just that positive for your I a -- in these to is just looking mean, might act? or demographics are point then start people enough what rate that in talked of Okay. you your interest clearing I

Ryan Schneider

may it I X.X% talked but I I'll is it you I past of by months. And it's bit for homes days X.X% buying all to and the a X% down of buy stuff. homebuilders -- we're because you to rates. X.X% they there think me Look, evidence give truth. is, the in there it, mean lot to Yes, in the like in tell the not other buy product, then just to you first homebuilder I a CEO to who And as for down moved but just for to the a delivered for to home rates a did be XX basically. they and couple down XX.X% they'll mortgage

up them, is that's then I from just the and because bit the I X%, does to or really mortgage new the homebuilders for of now they've got pretty Now survey hit consumer have that's outside. as It think mortgage think of that the be so, X% move in some I for data last who but changed ability people of data, rate I have relief with I been can't time, But what recently, seen a house. right? world look look willing better/different that from John I've of at XX% are X%. Americans there'll below you a over kind doing, In slow far be and homes. that's they've where between roll off speak product mortgage Burns you some But to give good at what see but at are little consulting going our a on crimped. month rates, people think their to down if X.X% a buy

that I even it's ZIP issues that the are we in had demand I more sell problem. supply. are so to inventory think rates, code the up prices think mean that's than could banker still the If high take XX Because mean, unlock we greater to more than so a mortgage the XX% our all them Global with things. level I within portfolio. selling I of of in mortgage going again, our of And like days. kind -- unlocks homes, rate XX% of homes is affordability in

Anthony Paolone

Okay. and in industry, tell lot articles Just for anything risk a Like And can that where to us works? or how then DOJ the just would there me. maybe last what be risk maybe about of level one that great. just nonlawyers There's might you or about be? chatter that set nonexperts on for

Ryan Schneider

I Look, thing for have and to got mean, haven't the they've but you're with that's watch ask don't about. risks, NAR, to DOJ, but going their that. about those to going DOJ we I I all go -- to the guys talk spoken the

Operator

The with Campbell from is question Stephens. next John

John Campbell

in With Ryan, to the suits for works, or kind year-to-date? or trying the maybe maybe now spent profit kind legal the maybe lift all-in hoping a hoping these spend the what that what guys might just tied Charlotte, of like of from you look could lower since I'm inception you provide to legal I'm sense Just settlement get spend?

Charlotte Simonelli

I going QX Yes, of there a little was tell last year. be these year. started tailwind obviously not we're -- expenses a we of there can next taking But to wouldn't will disclose you, that. bit -- in I

X over So phased kind like out it's years. of

having litigation just part a you're huge We're experience will of going with see that done and tailwind hit onetime because it, from it hits year can this So not pleased lower the expenses. and year. part to benefit next we of like it really we're

So...

Ryan Schneider

settlement factors one expense prolonged that and decision just was kind this is went of the complex the John, And of litigation. into of ongoing this the

to transparent will matter row, ever we're that a Charlotte these have about quarter. at the all it on reserves, quarters depend. litigation a going we've But talked this we're approved. too then you And is like getting will terms But taking bridge our what lower like and X reporting spending in of tailwind to much that tried far. into so we're that things And that's see. top in about. big did have to roll up we'll going But to of basis the we a think XX I when being And expenses off months last on be we're specific which a how nitty-gritty things that subject

John Campbell

clarify, to not were just then back EBITDA? to that guys And helpful. your you adjusted adding That's Okay.

Charlotte Simonelli

exclude No, not we did it.

Ryan Schneider

look, "Hey, back this there mean stuff not have to who EBITDA. you added always approach. that's your But that I historically because legal it's are been people funny should our say, you No. say all

tried numbers we have and been has of be of everything got report we've a the the if bigger, we some we had reserving numbers us printed think obviously, not clear we And than change our that we the have it, else. But the it more good served is... fact didn't So -- would but that octane business to we done some legal well.

Charlotte Simonelli

quarter... the Including

Ryan Schneider

Including this a thing. is quarter good

John Campbell

was question Last higher side I a this Absolutely. the expected of things. that lot price we on mean than quarter.

mentioned think XX% of as probably you the of lot gain. markets a investors well. Ryan, I that were experiencing expecting also are price

like feels home where curious It year. broad-based. like your we you like of in does moving there, inventory, seem feel about maybe just can the approach And fairly that's there's new it momentum if price I'm or the off. take a So the parts the as cools next we if enough on get there's price gains continue lot if year. that

a but know of parts, your best there's moving just guess. I So lot

Ryan Schneider

gains Yes. Look, to not I a right? model the rather side. unit the we have gains, we'd mean tend Like because price of on lot

there. world just whatever more side. the transactions actually happy rooting said, of for we're what get is, happens with we're then let's let's on And So price kind which you have unlock, the some unit

they few it, the that out you I But or where then in then we're demand there that So thought the would markets. a bigger higher not put but supply-demand little other not really, mortgage and that there's I fact supply probably bit the be. But in -- a this when rate drop it's some of But by surprised up markets we're rates see numbers, is factor X% XX%, did side X% the right? X%, the or still price even thing. you price does X%, there, the think, were we when what on higher think, and markets quarter than the I

talk you'll no -- possible the And we us bet we're next market want like happens on many matter on we'll talked -- right? cost also price, to we to I side, this -- on not to to so the don't and you when about see the units with think And we're next as like we think going probably year, call, about as healthier is model Charlotte not what price.

what but use be to eyed be data clear how a it. to about going little we're that's So trend we'll about think just of kind rooting for, this all But that's it. color more we on

Operator

question next from with is The KBW. McJoynt Tommy

Thomas Mcjoynt-Griffith

maybe, help want Just versus is. agents on top that? say, thinking XX%? to bottom than big kind maybe Or you what just frame how difference it is commission the small split gap top of the could if -- is, where that XX% the of lot really the me XX% the a is average bottom of agencies? difference and one average of first I get a the lighter Basically, know get The XX%

Ryan Schneider

at it's right? your obviously. that be -- good would assuming And be most to it's assuming similar kind ones I agents competitors kind own that average think a XX,XXX third real and And above the have all assumption. quite have things. we our I other have something depending first years probably have second ecosystem But the mean low, of quartile many how points, can it's everybody mean kind I for contract more price of range And our of and and it's in pretty honest. split bucket of agents the with brokerage, wide the works. different we all these the I on our top and being -- mean in how it's probably

Thomas Mcjoynt-Griffith

action you even perhaps presumably getting like franchisees mainstream my agents with class more a perhaps question, negotiate second agents from more more news the and rebates, sense. more That the and seek out your attention. Have on commissions, buyers anecdotally maybe given anything communication that ask are makes or constant bit those heard to you're starting that? sellers about ongoing more with pretty seemingly given more bit litigation, a Okay. in then ground, boots And

Ryan Schneider

of a things. Well, couple

approach at down of Cold and these commission the agents was And would are agent was right? the agents One all talking at the with I franchisees guess versus I kind -- things and And were those meeting thing. about So Jen a we thing. an I got She Blue tactics things. is I of banker in there there was I down of just of in competitors with were say lead like I of from time, all so week time a for I Florida. value agents in that's Atlanta. brand new not a thousands franchisees. really -- just how negotiations and had you these were some of good kind awesome and the the We middle that face using tons negotiating price their of time. her about of some with think sellers And couple and and discussions

negotiating like sellers new on not thing, there's and out there. so And with going is lot of a that a

of not -- one or lot that. a from they're that question that. about No So telling something buyers different something of that is kind hearing me like

agents the covers litigation. buyer we in to stuff franchisees again, settled both I agents. we're it think class the mainstream remember, and press the we our But the action provide, real think, like value covers And the and and general is think settled it more that have seller estate the lucky our the And I than so and we press. litigation

the should the Realty today. conference think a kind And out in I they you don't the kind because than of uncovered people already of went International thing. as kind Sotheby's was remind and of So of so much as different not that's to and the world. I And a discussion conversation, of negotiation right? lot which the April in that is that any big was about some actually part But customers' of ecosystem the thank me why , how starting realize point there

Thomas Mcjoynt-Griffith

to it. Got next we're facing available needed. of first about quarters, kind home seasonal talk low the is you and over my the a revolver guys sale extent typically of your balance, and kind tap of of the need existing you of looking that's credit balance quarter market then cash and into facility given to And quarters, cash slower how the Can the question might trajectory the already. your couple last just at quarter obviously fourth are kind

Charlotte Simonelli

Yes.

seasonality generate first hits So doesn't to timing really the of the really when amount low positive as free to cash and hold tend our need the possible. In the quarter-over-quarter. borrowing, flow. cash revolver fourth quarter, It's still as the managed hold we're keep we especially cash We where the to the we and us. that we of change balance quarter manage, expenses dramatically

a borrow quarter in market. normally in So we housing first the good

anticipate probably housing but very market that's quarter as can we'll well, So in borrowing you this first be in the common.

top cash excited we some out that doing in repurchases the proud open expenses revolver exchanges. year. of to market delivery and down for were very the $XX I'm pay I'm flow of quarter our So the this able the of million and door on despite of having debt

and we -- We choices have making and our are it we deploy being focused very ruthlessly how cash, have we tons on with specific of liquidity.

the years, our So for me sure. the took at is night over X of keeps past that and on not thing debt proud steps the this we up

Operator

be Our & final Zelman Ryan question will Associates. from today with McKeveny

Ryan McKeveny

litigation. started audio the the had out when you Charlotte, just mentioning cut earlier,

to remarks, the the Sure. know, was So start maybe reading the don't that talking there. expected said the I comment worth you the might of you've Q&A, maybe it be it was be prepared kind about on but back of around touched already any came those cost from but audio what cut in litigation right that comments out cost, at

Charlotte Simonelli

we the to The million antitrust That's into the settlement seller Yes. on a we for pay our nationwide XXXX. of $XX on comment. basis this litigation entered remainder which year, in a exact I expect was comment million, $XX.X made

Ryan McKeveny

Okay. Ryan. Perfect. And second, then

hear comments. you on I the just pricing square So a couple guess, of I trends. maybe

makes the slowing have rates with in the incremental quarter, So sense which mentioned you half of what back done. the

dynamics curious transaction Assumingly higher, is and move seeing sides. in I'm all? any side seemingly guess just comment in continuing of the ASP kind Or is that a of it's with issue? place more mainly I kind just are the of growth remaining to at But about change you pricing rates transaction

Ryan Schneider

demand transaction issues affordability sizes. is I think that gets supply even out reality. the than strange, a It's rates, -- issue. units the higher And back which a rates, is still houses it's book, just there are the it X% given of mortgage to there, it at the our for the In obviously, more but Yes. is

we thought worst and a we pressure on quarter year. of of guidance when worse results the little September the What side, the in the end a in they didn't the prices, in even and look the more think I volume-wise back little we so the And was drove see that different quarterly than year, we're unit September that the volume why prices. for didn't at bit of differently was than half like at behave bit

for a price really dynamics But full unit certain on environment, that the and what there, see a and what's can front future was do quarter. what can our in of to we it lower unit price focused the go in cetera. And do really we So et unit to same that we story, that cost not end story. sit the a on didn't not are franchisees prices a for direction. bet changes our quarter we're here unit on happening the we again, our We're going base on going anything saw the

Operator

you, We have at this everyone, no questions And conference Thank call. further will participating. this time. today's for conclude

You disconnect. may now

Anywhere Real Estate (HOUS) 24 Oct 232023 Q3 Earnings call transcript