Vision 2025 productivity improvements more
than offset market-driven revenue decline, resulting in 61%
reduction in annual net loss. Company exits 2023 with strong
liquidity position.
Full-year 2023 highlights:
- Revenue decreased $282 million or 22% to $974 million from
2022, primarily driven by lower market volume; growth in servicing
income and HELOC revenue as well as higher gain on sale margin
partially offset the impact of volume decrease.
- Total expenses decreased $693 million or 36% to $1.25 billion,
primarily driven by cost productivity improvements and lower
origination volume; 2023 expenses included $27 million of
restructuring charges, lease and other asset impairment charges and
accruals related to the expected settlement of outstanding
litigation.
- Annual net loss narrowed $375 million or 61% to $236
million.
- Adjusted annual net loss declined by $315 million or 69% to
$142 million.
Fourth quarter 2023 highlights:
- Year-over-year revenue increased $59 million or 35% to $229
million primarily driven by higher servicing income, gain on sale
margin and pull through weighted lock volume. Fourth quarter
revenue decreased $37 million or 14% from third quarter 2023,
primarily driven by seasonally lower volume partially offset by
higher gain on sale margin.
- Year-over-year expenses decreased $41 million or 12% to $303
million primarily on lower personnel related expenses. Fourth
quarter expenses decreased $3 million or 1% from third quarter
2023.
- During the quarter the company launched a supplemental cost
reduction program targeting $120 million of annualized productivity
improvements expected to benefit 2024. Through February 29, 2024,
the company has confirmed approximately 86% of the planned
improvements.
- Year-over-year net loss decreased from $158 million to $60
million. Quarterly net loss increased by $26 million from the third
quarter of 2023 primarily due to seasonality.
- Year-over-year adjusted net loss decreased from $107 million to
$27 million. Quarterly adjusted net loss increased by $1 million
from the third quarter of 2023.
- Company reports cash balance of $661 million and continues to
maintain strong liquidity profile.
loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries,
“loanDepot” or the “Company”), a leading provider of lending
solutions that make the American dream of homeownership more
accessible and achievable for all, today announced results for the
fourth quarter and year-ended December 31, 2023.
“loanDepot made substantial progress in 2023, significantly
resetting its cost structure and making critical investments in our
technology platforms and business processes, which we believe
position us to capture the benefits of the eventual rebound in
mortgage volumes,” said President and Chief Executive Officer Frank
Martell.
“We are entering 2024 with a more durable revenue model built
around a strong multi-channel origination business and a low cost,
high-quality servicing platform that underpins our strategy of
becoming a trusted partner for individuals and families on their
homeownership journey. We will continue to aggressively pursue
automation and productivity programs to support expanded operating
leverage and continue to fund reinvestment in solutions that
support the increasingly diverse communities that represent a
growing number of homebuyers,” Martell added.
“During the course of 2023, we reduced our cost structure by
$693 million,” said Chief Financial Officer David Hayes. “We expect
significant additional benefits from our previously announced $120
million annualized cost reduction program during 2024. Our cost
reset has allowed us to maintain a strong liquidity position and at
the same time support reinvestment in critical platforms and
programs. As the housing and mortgage markets begin to recover, we
believe we enter 2024 positioned for success through a relentless
focus on delivering against the pillars of Vision 2025.”
Fourth Quarter Highlights:
Financial Summary
Three Months Ended
Year Ended
($ in thousands except per share data)
(Unaudited)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Rate lock volume
$
6,417,419
$
8,295,935
$
6,933,099
$
32,155,455
$
68,553,340
Pull through weighted lock volume(1)
4,407,386
5,685,209
4,196,894
21,475,262
45,164,915
Loan origination volume
5,370,708
6,083,143
6,382,743
22,671,731
53,778,456
Gain on sale margin(2)
2.43
%
2.74
%
1.45
%
2.60
%
1.63
%
Pull through weighted gain on sale
margin(3)
2.96
%
2.93
%
2.21
%
2.75
%
1.94
%
Financial Results
Total revenue
$
228,626
$
265,661
$
169,655
$
974,022
$
1,255,796
Total expense
302,571
305,128
343,735
1,252,330
1,945,773
Net loss
(59,771
)
(34,262
)
(157,762
)
(235,512
)
(610,385
)
Diluted loss per share
$
(0.16
)
$
(0.09
)
$
(0.46
)
$
(0.63
)
$
(1.75
)
Non-GAAP Financial Measures(4)
Adjusted total revenue
$
251,450
$
266,363
$
188,501
$
1,019,714
$
1,216,041
Adjusted net loss
(26,660
)
(25,405
)
(107,156
)
(142,443
)
(457,601
)
Adjusted EBITDA (LBITDA)
14,957
20,497
(86,836
)
18,907
(446,938
)
(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 increased $4.9 million
since the third quarter of 2023, primarily due to higher
restructuring related charges, lease and other asset impairment
costs, and legal expenses.
- Incurred restructuring charges of $3.5 million and lease and
other asset impairment charges of $0.8 million during the quarter
for a total of $4.3 million, an increase of $2.1 million from the
third quarter of 2023.
- Accrued $3.7 million of legal expenses related to the expected
settlement of outstanding litigation compared to $2.0 million
accrued during the third quarter of 2023.
- Pull through weighted lock volume of $4.4 billion for the
fourth quarter of 2023, a decrease of $1.3 billion or 22% from the
third quarter of 2023, resulting in quarterly total revenue of
$228.6 million, a decrease of $37.0 million, or 14%, over the same
period.
- Loan origination volume for the fourth quarter of 2023 was $5.4
billion, a decrease of $0.7 billion or 12% from the third quarter
of 2023.
- Purchase volume increased to 76% of total loans originated
during the fourth quarter, up from 71% of total loans originated
during the third quarter of 2023 and flat to 76% of total loans
originated during the fourth quarter of 2022.
- For the three months ending December 31, 2023, our preliminary
organic refinance consumer direct recapture rate1 decreased to 58%
from the third quarter’s refinance rate of 69%.
- Net loss for the fourth quarter of 2023 of $59.8 million as
compared to net loss of $34.3 million in the third quarter of 2023.
Net loss increased quarter over quarter primarily due to revenues
decreasing more than the decrease in expenses.
- Adjusted net loss for the fourth quarter of 2023 was $26.7
million as compared to adjusted net loss of $25.4 million for the
third quarter of 2023.
Outlook for the first quarter of 2024
- Origination volume of between $3.5 billion and $5.5
billion.
- Pull-through weighted rate lock volume of between $3.5 billion
and $5.5 billion.
- Pull-through weighted gain on sale margin of between 270 basis
points and 300 basis points.
1
We define organic refinance consumer
direct recapture rate as the total unpaid principal balance (“UPB”)
of loans in our servicing portfolio that are paid in full for
purposes of refinancing the loan on the same property, with the
Company acting as lender on both the existing and new loan, divided
by the UPB of all loans in our servicing portfolio that paid in
full for the purpose of refinancing the loan on the same property.
The recapture rate is finalized following the publication date of
this release when external data becomes available.
Servicing
Three Months Ended
Year Ended
Servicing Revenue Data:
($ in thousands)
(Unaudited)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Due to changes in valuation inputs or
assumptions
$
(71,195
)
$
68,651
$
(10,094
)
$
2,227
$
363,064
Due to collection/realization of cash
flows
(34,433
)
(38,502
)
(37,427
)
(149,211
)
(230,449
)
Realized (losses) gains on sales of
servicing rights, net (1)
(192
)
3,516
2,285
10,486
(3,663
)
Net gain (loss) from derivatives hedging
servicing rights
48,371
(69,353
)
(8,752
)
(47,919
)
(323,309
)
Changes in fair value of servicing rights,
net
$
(57,449
)
$
(35,688
)
$
(53,988
)
$
(184,417
)
$
(194,357
)
Servicing fee income
$
132,482
$
120,911
$
107,221
$
492,811
$
449,150
(1)
Includes the provision for sold MSRs.
Three Months Ended
Year Ended
Servicing Rights, at Fair
Value:
($ in thousands)
(Unaudited)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Balance at beginning of period
$
2,038,654
$
1,998,762
$
2,013,269
$
2,025,136
$
1,999,402
Additions
62,158
80,068
73,256
277,387
647,716
Sales proceeds
(9,521
)
(73,972
)
(13,874
)
(180,687
)
(765,151
)
Changes in fair value:
Due to changes in valuation inputs or
assumptions
(71,195
)
68,651
(10,094
)
2,227
363,064
Due to collection/realization of cash
flows
(34,433
)
(38,502
)
(37,427
)
(149,211
)
(230,449
)
Realized gains on sales of servicing
rights
55
3,647
6
10,866
10,554
Balance at end of period (1)
$
1,985,718
$
2,038,654
$
2,025,136
$
1,985,718
$
2,025,136
(1)
Balances are net of $14.0 million, $14.7
million, and $12.3 million of servicing rights liability as of
December 31, 2023, September 30, 2023, and December 31, 2022,
respectively.
% Change
Servicing Portfolio Data:
($ in thousands)
(Unaudited)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec-23
vs
Sep-23
Dec-23 vs
Dec-22
Servicing portfolio (unpaid principal
balance)
$
145,090,199
$
143,959,705
$
141,170,931
0.8
%
2.8
%
Total servicing portfolio (units)
496,894
490,191
471,022
1.4
5.5
60+ days delinquent ($)
$
1,392,606
$
1,235,443
$
1,421,722
12.7
(2.0
)
60+ days delinquent (%)
1.0
%
0.9
%
1.0
%
Servicing rights, net to UPB
1.37
%
1.42
%
1.43
%
Balance Sheet Highlights
% Change
($ in thousands)
(Unaudited)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec-23 vs
Sep-23
Dec-23 vs
Dec-22
Cash and cash equivalents
$
660,707
$
717,196
$
863,956
(7.9
) %
(23.5
) %
Loans held for sale, at fair value
2,132,880
2,070,748
2,373,427
3.0
(10.1
)
Servicing rights, at fair value
1,999,763
2,053,359
2,037,447
(2.6
)
(1.8
)
Total assets
6,151,048
6,078,529
6,609,934
1.2
(6.9
)
Warehouse and other lines of credit
1,947,057
1,897,859
2,146,602
2.6
(9.3
)
Total liabilities
5,446,564
5,309,594
5,688,461
2.6
(4.3
)
Total equity
704,484
768,935
921,473
(8.4
)
(23.5
)
An increase in loans held for sale at December 31, 2023,
resulted in a corresponding increase in the balance on our
warehouse lines of credit. Total funding capacity with our lending
partners was $3.1 billion at December 31, 2023, and $3.9 billion at
September 30, 2023. Available borrowing capacity was $1.2 billion
at December 31, 2023.
Consolidated Statements of Operations
($ in thousands except per share data)
Three Months Ended
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
(Unaudited)
(Unaudited)
REVENUES:
Interest income
$
34,992
$
37,253
$
33,316
$
133,263
$
200,204
Interest expense
(33,686
)
(36,770
)
(29,676
)
(130,145
)
(150,897
)
Net interest income
1,306
483
3,640
3,118
49,307
Gain on origination and sale of loans,
net
113,185
148,849
82,547
524,521
748,540
Origination income, net
17,120
17,740
10,287
65,209
129,736
Servicing fee income
132,482
120,911
107,221
492,811
449,150
Change in fair value of servicing rights,
net
(57,449
)
(35,688
)
(53,988
)
(184,417
)
(194,357
)
Other income
21,982
13,366
19,948
72,780
73,420
Total net revenues
228,626
265,661
169,655
974,022
1,255,796
EXPENSES:
Personnel expense
132,752
141,432
165,626
573,010
1,027,008
Marketing and advertising expense
28,360
33,894
31,539
132,880
236,828
Direct origination expense
16,790
15,749
14,239
67,141
120,854
General and administrative expense
55,258
46,522
68,590
212,732
265,680
Occupancy expense
5,433
5,903
6,633
23,516
35,306
Depreciation and amortization
9,922
10,592
10,085
41,261
42,195
Servicing expense
8,572
8,532
6,633
27,687
53,106
Other interest expense
45,484
42,504
40,390
174,103
124,060
Goodwill impairment
—
—
—
—
40,736
Total expenses
302,571
305,128
343,735
1,252,330
1,945,773
Loss before income taxes
(73,945
)
(39,467
)
(174,080
)
(278,308
)
(689,977
)
Income tax benefit
(14,174
)
(5,205
)
(16,318
)
(42,796
)
(79,592
)
Net loss
(59,771
)
(34,262
)
(157,762
)
(235,512
)
(610,385
)
Net loss attributable to noncontrolling
interests
(32,578
)
(17,663
)
(80,492
)
(125,370
)
(337,365
)
Net loss attributable to loanDepot,
Inc.
$
(27,193
)
$
(16,599
)
$
(77,270
)
$
(110,142
)
$
(273,020
)
Basic loss per share
$
(0.15
)
$
(0.09
)
$
(0.46
)
$
(0.63
)
$
(1.75
)
Diluted loss per share
$
(0.16
)
$
(0.09
)
$
(0.46
)
$
(0.63
)
$
(1.75
)
Weighted average shares outstanding
Basic
178,888,225
175,962,804
168,617,732
174,906,063
156,030,350
Diluted
326,288,272
175,962,804
168,617,732
174,906,063
156,030,350
Consolidated Balance Sheets
($ in thousands)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
(Unaudited)
ASSETS
Cash and cash equivalents
$
660,707
$
717,196
$
863,956
Restricted cash
85,149
114,765
116,545
Loans held for sale, at fair value
2,132,880
2,070,748
2,373,427
Derivative assets, at fair value
93,574
86,622
39,411
Servicing rights, at fair value
1,999,763
2,053,359
2,037,447
Trading securities, at fair value
92,901
89,334
94,243
Property and equipment, net
70,809
76,762
92,889
Operating lease right-of-use asset
29,433
32,558
35,668
Loans eligible for repurchase
711,371
639,806
634,677
Investments in joint ventures
20,363
18,778
20,410
Other assets
254,098
178,601
301,261
Total assets
$
6,151,048
$
6,078,529
$
6,609,934
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of credit
$
1,947,057
$
1,897,859
$
2,146,602
Accounts payable and accrued expenses
379,971
462,521
488,696
Derivative liabilities, at fair value
84,962
49,742
67,492
Liability for loans eligible for
repurchase
711,371
639,806
634,677
Operating lease liability
49,192
53,579
61,675
Debt obligations, net
2,274,011
2,206,087
2,289,319
Total liabilities
5,446,564
5,309,594
5,688,461
EQUITY:
Total equity
704,484
768,935
921,473
Total liabilities and equity
$
6,151,048
$
6,078,529
$
6,609,934
Loan Origination and Sales Data
($ in thousands)
(Unaudited)
Three Months Ended
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Loan origination volume by
type:
Conventional conforming
$
2,830,776
$
3,158,107
$
3,823,857
$
12,206,382
$
35,931,625
FHA/VA/USDA
2,062,928
2,354,630
2,104,409
8,434,095
12,769,696
Jumbo
81,591
126,408
242,785
487,142
4,197,841
Other
395,413
443,998
211,692
1,544,112
879,294
Total
$
5,370,708
$
6,083,143
$
6,382,743
$
22,671,731
$
53,778,456
Loan origination volume by
purpose:
Purchase
$
4,071,761
$
4,337,476
$
4,864,187
$
16,474,927
$
29,333,525
Refinance - cash out
1,221,538
1,660,578
1,432,195
5,821,102
19,613,365
Refinance - rate/term
77,409
85,089
86,361
375,702
4,831,566
Total
$
5,370,708
$
6,083,143
$
6,382,743
$
22,671,731
$
53,778,456
Loans sold:
Servicing retained
$
3,825,478
$
4,175,126
$
4,165,552
$
15,222,156
$
38,461,896
Servicing released
1,572,369
2,092,762
2,634,855
7,918,029
20,855,416
Total
$
5,397,847
$
6,267,888
$
6,800,407
$
23,140,185
$
59,317,312
Fourth 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 (800)
715-9871, Conference ID: 9881136. 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/248239049
A replay of the webcast will be made available on the Investor
Relations website following the conclusion of the event.
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 represent non-cash,
unrealized adjustments resulting from changes in valuation
assumptions, mostly due to changes in market interest rates, 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 well as certain
costs associated with our restructuring efforts, 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
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Total net revenue
$
228,626
$
265,661
$
169,655
$
974,022
$
1,255,796
Change in fair value of servicing rights,
net of hedging gains and losses(1)
22,824
702
18,846
45,692
(39,755
)
Adjusted total revenue
$
251,450
$
266,363
$
188,501
$
1,019,714
$
1,216,041
(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
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Net loss attributable to loanDepot,
Inc.
$
(27,193
)
$
(16,599
)
$
(77,270
)
$
(110,142
)
$
(273,020
)
Net loss from the pro forma conversion of
Class C common shares to Class A common stock (1)
(32,578
)
(17,663
)
(80,492
)
(125,370
)
(337,365
)
Net loss
(59,771
)
(34,262
)
(157,762
)
(235,512
)
(610,385
)
Adjustments to the benefit for income
taxes(2)
7,776
4,845
25,339
32,872
92,337
Tax-effected net loss from the pro forma
conversion of Class C common shares to Class A common stock
(51,995
)
(29,417
)
(132,423
)
(202,640
)
(518,048
)
Change in fair value of servicing rights,
net of hedging gains and losses(3)
22,824
702
18,846
45,692
(39,755
)
Stock-based compensation expense
6,375
3,940
8,789
21,993
20,583
Restructuring charges(4)
3,517
2,004
5,178
11,811
25,126
Gain on extinguishment of debt
—
(1,651
)
—
(1,690
)
(10,528
)
Loss on disposal of fixed assets
325
93
1,568
1,430
12,594
Goodwill impairment
—
—
—
—
40,736
Other impairment
455
129
2,388
925
17,500
Tax effect of adjustments(5)
(8,161
)
(1,205
)
(11,502
)
(19,964
)
(5,809
)
Adjusted net loss
$
(26,660
)
$
(25,405
)
$
(107,156
)
$
(142,443
)
$
(457,601
)
(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
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 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)
2.87
%
6.43
%
10.48
%
5.22
%
6.37
%
Effective income tax rate
23.87
%
27.43
%
31.48
%
26.22
%
27.37
%
(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)
Reflects employee severance expense and
professional services associated with restructuring efforts
subsequent to the announcement of Vision 2025 in July 2022.
(5)
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
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Net loss attributable to loanDepot,
Inc.
$
(27,193
)
$
(16,599
)
$
(77,270
)
$
(110,142
)
$
(273,020
)
Adjusted net loss
(26,660
)
(25,405
)
(107,156
)
(142,443
)
(457,601
)
Share Data:
Diluted weighted average shares of Class A
and Class D common stock outstanding
326,288,272
175,962,804
168,617,732
174,906,063
156,030,350
Assumed pro forma conversion of weighted
average Class C shares to Class A common stock (1)
—
147,171,089
150,278,656
147,789,060
163,541,101
Adjusted diluted weighted average shares
outstanding
326,288,272
323,133,893
318,896,388
322,695,123
319,571,451
(1)
Reflects the assumed pro forma exchange
and conversion of anti-dilutive Class C common shares. For the
three months ended December 31, 2023, Class C common shares were
dilutive and included in diluted weighted average shares of Class A
common stock outstanding in the table above.
Reconciliation of Net Income (Loss) to
Adjusted EBITDA (LBITDA)
($ in thousands)
(Unaudited)
Three Months Ended
Year Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Net loss
$
(59,771
)
$
(34,262
)
$
(157,762
)
$
(235,512
)
$
(610,385
)
Interest expense - non-funding debt
(1)
45,484
42,504
40,390
174,103
124,060
Income tax benefit
(14,174
)
(5,205
)
(16,318
)
(42,796
)
(79,592
)
Depreciation and amortization
9,922
10,592
10,085
41,261
42,195
Change in fair value of servicing rights,
net of
hedging gains and losses(2)
22,824
702
18,846
45,692
(39,755
)
Stock-based compensation expense
6,375
3,940
8,789
21,993
20,583
Restructuring charges
3,517
2,004
5,178
11,811
25,126
Loss on disposal of fixed assets
325
93
1,568
1,430
12,594
Goodwill impairment
—
—
—
—
40,736
Other impairment (recovery)
455
129
2,388
925
17,500
Adjusted EBITDA (LBITDA)
$
14,957
$
20,497
$
(86,836
)
$
18,907
$
(446,938
)
(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; impacts of
cybersecurity incident, 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 leading provider of lending solutions
that make the American dream of homeownership more accessible and
achievable for all, especially the increasingly diverse communities
of first-time homebuyers, through a broad suite of lending and real
estate services that simplify one of life's most complex
transactions. Since its launch in 2010, the company has been
recognized as an innovator, using its industry-leading technology
to deliver a superior customer experience. Our digital-first
approach makes it easier, faster and less stressful to purchase or
refinance a home. Today, as one of the largest non-bank lenders in
the country, loanDepot and its mellohome operating unit offer an
integrated platform of lending, loan servicing, real estate and
home services that support customers along their entire
homeownership journey. Headquartered in Southern California and
with hundreds of local market offices nationwide, loanDepot’s
passionate team is dedicated to making a positive difference in the
lives of their customers every day.
LDI-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240312180152/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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