We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
loanDepot Inc | NYSE:LDI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.06 | 2.65% | 2.32 | 2.42 | 2.29 | 2.31 | 226,923 | 01:00:00 |
FOOTHILL RANCH, Calif., Feb. 18, 2021 /PRNewswire/ -- loanDepot, Inc. and its subsidiaries (NYSE: LDI) (collectively, "loanDepot" or the "Company"), the innovative consumer lending and real estate services provider that is using its proprietary mello® technology to deliver best-in-class experiences to its customers, today announced results for the fourth quarter and year ended December 31, 2020.
loanDepot's assets are unlike any other lender in the marketplace today:
– Diversified strategy: Integrated at-scale refinance and purchase business ensures that loanDepot thrives in any mortgage market. The Retail strategy has 2,300+ employee loan officers serving customers online and in local markets nationwide. The Partner strategy has significant relationships with some of the largest home builders, financial institutions, real estate and mortgage brokers across the nation.
– Data and Analytics: loanDepot has harnessed the power of its data science and proprietary AI and machine learning models, dramatically widening the Company's top-of-funnel marketing reach, gaining market share, significantly driving down customer acquisition cost and increasing sales productivity.
– Brand: loanDepot has the second-most recognized brand in the industry today and has continued to invest in its brand strength through the "Home Means Everything" national ad campaign and partnership with Major League Baseball as its exclusive mortgage partner.
– Technology: loanDepot's proprietary technology platform, mello®, is core to all operations, which maximizes loan officer closings, reduces cycle times and improves customer satisfaction. mello® also allows the Company to easily add new products and services, whether organic or acquired.
"I'm incredibly proud of and humbled by our record-breaking 2020 performance and thank our team members for their passionate commitment to our customers during an unprecedented year," said Founder and CEO Anthony Hsieh.
"Customers gravitate to the loanDepot brand because we think and do differently. We are able to efficiently and effectively serve homeowners and future homeowners through our Retail and Partner channels, with the best proprietary data science, AI, machine learning and technology available, which ensures we are serving customers the way they wish to be served through the most important financial transaction of their lives. As we continue our growth trajectory and expand our product and service offerings, we will do so in a way that delivers satisfaction and value for our customers, partners, team members and shareholders for decades to come."
Fourth Quarter Earnings Call
Management will host a conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations website, investors.loandepot.com, following the release of its earnings results.
Financial Summary
Three Months Ended | Year Ended | ||||||||||||||||||
($ in thousands) | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
Rate lock volume | $ | 49,711,270 | $ | 49,280,386 | $ | 20,347,563 | $ | 160,984,531 | $ | 75,262,459 | |||||||||
Loan origination volume | 37,395,352 | 27,157,669 | 16,055,972 | 100,760,151 | 45,324,026 | ||||||||||||||
Gain on sale margin | 3.38 | % | 4.98 | % | 2.36 | % | 4.27 | % | 2.81 | % | |||||||||
Financial Results | |||||||||||||||||||
Total revenue | $ | 1,298,394 | $ | 1,368,930 | $ | 415,292 | $ | 4,312,174 | $ | 1,337,131 | |||||||||
Total expense | 750,433 | 640,014 | 401,116 | 2,296,816 | 1,304,460 | ||||||||||||||
Net income | 547,170 | 728,349 | 16,213 | 2,013,110 | 34,420 | ||||||||||||||
Non-GAAP Financial Measures(1) | |||||||||||||||||||
Adjusted total revenue | $ | 1,252,707 | $ | 1,345,550 | $ | 407,197 | $ | 4,252,907 | $ | 1,346,178 | |||||||||
Adjusted net income | 375,711 | 524,819 | 4,675 | 1,461,617 | 31,885 | ||||||||||||||
Adjusted EBITDA | 530,364 | 745,499 | 29,499 | 2,084,536 | 124,005 |
(1) We believe Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income 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 net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, which may vary for different companies for reasons unrelated to operating performance, as well as certain historical cost (benefit) items which may vary for different companies for reasons unrelated to operating performance. See "Non-GAAP Financial Measures" for a discussion of how we define and calculate Adjusted Total Revenue, Adjusted EBITDA and Adjusted Net Income. |
Operational Results
Other Highlights
Balance Sheet Highlights
% Change | ||||||||||||||||||
($ in thousands) (Unaudited) | December 31, | September 30, | December 31, | Dec - 20 | Dec - 20 | |||||||||||||
Cash and cash equivalents | $ | 284,224 | $ | 637,511 | $ | 73,301 | (55.4) | % | 287.7 | % | ||||||||
Loans held for sale, at fair value | 6,955,424 | 4,888,364 | 3,681,840 | 42.3 | 88.9 | |||||||||||||
Servicing rights, at fair value | 1,127,866 | 780,451 | 447,478 | 44.5 | 152.0 | |||||||||||||
Warehouse and other lines of credit | 6,577,429 | 4,601,062 | 3,466,567 | 43.0 | 89.7 | |||||||||||||
Total liabilities | 9,236,615 | 7,017,792 | 4,576,626 | 31.6 | 101.8 | |||||||||||||
Total equity | 1,656,613 | 1,633,521 | 375,885 | 1.4 | 340.7 |
Record quarterly originations drove an increase in loans held for sale at December 31, 2020, which increased by 42% from the prior quarter to $7.0 billion. The balance on our warehouse lines of credit increased by 43% during the quarter due to the increased origination activity. Total funding capacity with our lending partners increased to $8.1 billion at December 31, 2020 from $5.5 billion at September 30, 2020. The increase of $2.6 billion was due to the addition of two new facilities with two and three year maturity dates as well as increases to existing facilities. Available borrowing capacity was $1.5 billion at December 31, 2020.
Unrestricted cash and cash equivalents was $284.2 million at December 31, 2020. The decrease in cash from September 30, 2020 was primarily due to earnings offset by tax distributions of $71.1 million as required under the Company's operating agreement and profit distributions of $453.8 million as allowed under the Company's operating agreement.
The fair value of mortgage servicing rights increased by 45%, or $347.4 million during the fourth quarter to a record $1.1 billion. This increase was driven by $411.3 million of new additions, partially offset by runoff of $80.0 million. During the fourth quarter of 2020, servicing retained loan sales increased as a result of the record level of loan originations.
Strategic Channel Overview
Our diverse origination strategy ensures we can serve customers in the way they want to be served, with the right mortgage professional, with the right product, at the right price, at the right time. Complementing our origination strategy is our servicing portfolio, which ensures we can serve the customer through their entire mortgage journey.
Retail Channel
Three Months Ended | Year Ended | |||||||||||||||||||
($ in thousands) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
Volume data: | ||||||||||||||||||||
Rate locks | $ | 40,066,201 | $ | 40,903,946 | $ | 15,854,996 | $ | 132,448,124 | $ | 59,116,290 | ||||||||||
Loan originations | 29,665,251 | 21,714,871 | 11,409,261 | 80,256,667 | 32,700,837 | |||||||||||||||
Gain on sale margin | 3.47 | % | 5.07 | % | 2.87 | % | 4.41 | % | 3.39 | % |
The Company employs more than 2,300 licensed mortgage loan professionals who work in our Retail Channel that reach customers through our organic marketing or their own relationships in either our proprietary call centers or local in-market branches. During the fourth quarter of 2020, our Retail Channel accounted for $29.7 billion, or 79%, of our loan originations. For the year ended December 31, 2020, our Retail Channel contributed $80.3 billion, or 80%, of loan originations.
Partner Channel
Three Months Ended | Year Ended | |||||||||||||||||||
($ in thousands) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
Volume data: | ||||||||||||||||||||
Rate locks | $ | 9,645,069 | $ | 8,376,440 | $ | 4,492,567 | $ | 28,536,407 | $ | 16,146,169 | ||||||||||
Loan originations | 7,730,101 | 5,442,799 | 4,646,711 | 20,503,484 | 12,623,189 | |||||||||||||||
Gain on sale margin | 2.58 | % | 4.06 | % | 1.19 | % | 3.06 | % | 1.16 | % |
Our Partner Channel originates loans through our network of approved mortgage brokers, as well as a series of exclusive joint ventures with some of the nation's largest homebuilders and depositories, who market our broad spectrum of products utilizing our innovate mello® technology platform to efficiently underwrite, process and fund mortgage loans, while delivering an exceptional customer experience. During the fourth quarter of 2020, our Partner Channel accounted for $7.7 billion, or 21%, of our loan originations. For the year ended December 31, 2020, our Partner Channel contributed $20.5 billion, or 20%, of our loan originations.
The returns were complemented by $3.7 million of income recorded from our joint ventures for the fourth quarter of 2020 and $10.4 million for the year ended December 31, 2020, reflecting the wide variety of industry partners we work with in the channel.
We entered into two new joint venture relationships with home builders during the second half of 2020 and added one new joint venture relationship in the first quarter of 2021 with a federally chartered savings bank offering banking and insurance services.
Servicing
% Change | ||||||||||||||||||
Servicing Portfolio Data: ($ in thousands) (Unaudited) | December 31, | September 30, | December 31, | Dec - 20 | Dec - 20 | |||||||||||||
Total servicing portfolio | $ | 102,931,258 | $ | 77,171,998 | $ | 36,336,126 | 33.4 | % | 183.3 | % | ||||||||
Total servicing portfolio (units) | 342,600 | 272,701 | 148,750 | 25.6 | 130.3 | |||||||||||||
60+ days delinquent ($) | $ | 2,162,585 | $ | 2,073,862 | $ | 383,272 | 4.3 | % | 464.2 | % | ||||||||
60+ days delinquent (%) | 2.1 | % | 2.7 | % | 1.1 | % | ||||||||||||
Servicing rights, net | $ | 1,124,302 | $ | 776,993 | $ | 444,443 | 44.7 | 153.0 |
The unpaid principal balance of our servicing portfolio increased $66.6 billion, or 183%, to $102.9 billion compared to $36.3 billion as of December 31, 2019. The fourth quarter of 2020 comprised $25.8 billion, or 39% of the total $66.6 billion increase throughout the year, driven by an increase in servicing-retained loan sales. We continued to invest in growing our high quality servicing portfolio and not only increased total loan originations but also the percentage of our servicing customers who chose to refinance with us. For the fourth quarter of 2020, our organic refinance consumer direct recapture rate was 66%, highlighting the efficacy of our marketing efforts and the strength of our customer relationships.
Servicing income increased $67.5 million, or 57% to $185.9 million for the year compared to $118.4 million for 2019, and increased $16.0 million, or 33% to $64.4 million for the fourth quarter of 2020 compared to $48.4 million for the third quarter of 2020.
As of December 31, 2020, approximately 2.4%, or $2.4 billion, of our servicing portfolio was in active forbearance. This represents a decline from 3.4%, or $2.6 billion, at the end of the third quarter of 2020.
Guidance
We expect analyst research to be published and coverage of loanDepot, Inc. to begin in the near future and anticipate providing updated guidance on first quarter 2021 performance after those publications.
Consolidated Statements of Operations
($ in thousands) | Three Months Ended | Year Ended | |||||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | |||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||
REVENUES: | |||||||||||||||||||
Interest income | $ | 44,730 | $ | 31,453 | $ | 41,076 | $ | 142,879 | $ | 127,569 | |||||||||
Interest expense | (42,562) | (29,553) | (40,794) | (131,443) | (130,344) | ||||||||||||||
Net interest income | 2,168 | 1,900 | 282 | 11,436 | (2,775) | ||||||||||||||
Gain on origination and sale of loans, net | 1,172,704 | 1,279,431 | 337,798 | 4,046,159 | 1,125,853 | ||||||||||||||
Origination income, net | 91,253 | 71,740 | 41,651 | 258,807 | 149,500 | ||||||||||||||
Servicing fee income | 64,375 | 48,406 | 33,396 | 185,895 | 118,418 | ||||||||||||||
Change in fair value of servicing rights, net | (68,389) | (57,603) | (19,495) | (284,521) | (119,546) | ||||||||||||||
Other income | 36,283 | 25,056 | 21,660 | 94,398 | 65,681 | ||||||||||||||
Total net revenues | 1,298,394 | 1,368,930 | 415,292 | 4,312,174 | 1,337,131 | ||||||||||||||
EXPENSES: | |||||||||||||||||||
Personnel expense | 508,638 | 441,818 | 239,308 | 1,531,371 | 765,256 | ||||||||||||||
Marketing and advertising expense | 90,709 | 60,435 | 54,081 | 264,337 | 187,880 | ||||||||||||||
Direct origination expense | 36,127 | 33,465 | 31,743 | 124,754 | 93,531 | ||||||||||||||
General and administrative expense | 51,146 | 52,372 | 32,786 | 171,712 | 100,493 | ||||||||||||||
Occupancy expense | 9,826 | 9,997 | 9,520 | 39,262 | 37,209 | ||||||||||||||
Depreciation and amortization | 8,547 | 8,585 | 10,116 | 35,669 | 37,400 | ||||||||||||||
Subservicing expense | 29,556 | 22,820 | 12,660 | 81,710 | 41,397 | ||||||||||||||
Other interest expense | 15,884 | 10,522 | 10,902 | 48,001 | 41,294 | ||||||||||||||
Total expenses | 750,433 | 640,014 | 401,116 | 2,296,816 | 1,304,460 | ||||||||||||||
Income before income taxes | 547,961 | 728,916 | 14,176 | 2,015,358 | 32,671 | ||||||||||||||
Income tax expense (benefit) | 791 | 567 | (2,037) | 2,248 | (1,749) | ||||||||||||||
Net income | 547,170 | 728,349 | 16,213 | 2,013,110 | 34,420 | ||||||||||||||
Net income attributable to noncontrolling interests | 547,170 | 728,349 | 16,213 | 2,013,110 | 34,420 | ||||||||||||||
Net income attributable to loanDepot, Inc. | $ | — | $ | — | $ | — | $ | — | $ | — |
Consolidated Balance Sheets
($ in thousands) | December 31, | September 30, | December 31, | ||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 284,224 | $ | 637,511 | $ | 73,301 | |||||
Restricted cash | 204,465 | 70,387 | 44,195 | ||||||||
Accounts receivable, net | 138,122 | 118,400 | 121,046 | ||||||||
Loans held for sale, at fair value | 6,955,424 | 4,888,364 | 3,681,840 | ||||||||
Derivative assets, at fair value | 647,939 | 722,149 | 131,228 | ||||||||
Servicing rights, at fair value | 1,127,866 | 780,451 | 447,478 | ||||||||
Property and equipment, net | 85,002 | 76,250 | 80,897 | ||||||||
Operating lease right-of-use asset | 66,433 | 56,449 | 61,693 | ||||||||
Prepaid expenses and other assets | 77,241 | 57,610 | 52,653 | ||||||||
Loans eligible for repurchase | 1,246,158 | 1,184,015 | 197,812 | ||||||||
Investments in joint ventures | 17,528 | 16,773 | 17,030 | ||||||||
Goodwill and other intangible assets, net | 42,826 | 42,954 | 43,338 | ||||||||
Total assets | $ | 10,893,228 | $ | 8,651,313 | $ | 4,952,511 | |||||
LIABILITIES AND EQUITY | |||||||||||
LIABILITIES | |||||||||||
Warehouse and other lines of credit | $ | 6,577,429 | $ | 4,601,062 | $ | 3,466,567 | |||||
Accounts payable and accrued expenses | 442,928 | 375,957 | 196,102 | ||||||||
Derivative liabilities, at fair value | 168,169 | 59,432 | 9,977 | ||||||||
Liability for loans eligible for repurchase | 1,246,158 | 1,184,015 | 197,812 | ||||||||
Operating lease liability | 86,023 | 72,590 | 80,257 | ||||||||
Financing lease obligations | 3,442 | 18,258 | 33,816 | ||||||||
Debt obligations, net | 712,466 | 706,478 | 592,095 | ||||||||
Total liabilities | 9,236,615 | 7,017,792 | 4,576,626 | ||||||||
EQUITY | |||||||||||
Noncontrolling interest | 1,656,613 | 1,633,521 | 375,885 | ||||||||
Total liabilities and equity | $ | 10,893,228 | $ | 8,651,313 | $ | 4,952,511 |
Loan Origination and Sales Data
| Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
Loan origination volume by type: | ||||||||||||||||||||
Conventional conforming | $ | 31,389,431 | $ | 22,034,957 | $ | 11,005,102 | $ | 79,960,680 | $ | 29,535,192 | ||||||||||
FHA/VA/USDA | 5,013,338 | 4,532,290 | 3,934,082 | 17,584,601 | 11,599,805 | |||||||||||||||
Jumbo | 591,739 | 209,167 | 784,008 | 1,821,700 | 3,154,982 | |||||||||||||||
Other | 400,844 | 381,255 | 332,780 | 1,393,170 | 1,034,047 | |||||||||||||||
Total | $ | 37,395,352 | $ | 27,157,669 | $ | 16,055,972 | $ | 100,760,151 | $ | 45,324,026 | ||||||||||
Loan origination volume by channel: | ||||||||||||||||||||
Retail | $ | 29,665,251 | $ | 21,714,870 | $ | 11,409,261 | $ | 80,256,666 | $ | 32,700,837 | ||||||||||
Partnership | 7,730,101 | 5,442,799 | 4,646,711 | 20,503,485 | 12,623,189 | |||||||||||||||
Total | $ | 37,395,352 | $ | 27,157,669 | $ | 16,055,972 | $ | 100,760,151 | $ | 45,324,026 | ||||||||||
Loan origination volume by purpose: | ||||||||||||||||||||
Purchase | $ | 9,813,921 | $ | 8,546,295 | $ | 5,298,068 | $ | 28,301,076 | $ | 18,513,555 | ||||||||||
Refinance | 27,581,431 | 18,611,374 | 10,757,904 | 72,459,075 | 26,810,471 | |||||||||||||||
Total | $ | 37,395,352 | $ | 27,157,669 | $ | 16,055,972 | $ | 100,760,151 | $ | 45,324,026 | ||||||||||
Loans sold: | ||||||||||||||||||||
Servicing retained | $ | 33,989,511 | $ | 24,402,497 | $ | 7,967,753 | $ | 87,186,118 | $ | 20,360,739 | ||||||||||
Servicing released | 1,394,979 | 1,195,252 | 7,382,863 | 10,353,541 | 23,134,883 | |||||||||||||||
Total | $ | 35,384,490 | $ | 25,597,749 | $ | 15,350,616 | $ | 97,539,659 | $ | 43,495,622 | ||||||||||
Loan origination margins: | ||||||||||||||||||||
Gain on sale margin | 3.38 | % | 4.98 | % | 2.36 | % | 4.27 | % | 2.81 | % |
Fourth Quarter Earnings Call
Management will host a conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations website, investors.loandepot.com, following the release of its earnings results.
The conference call can also be accessed by dialing 833-312-1365 (domestic) or 236-712-2485 (international) using pin number 3784967. Please call five minutes in advance to ensure that you are connected prior to the call. A replay of the webcast and transcript will also 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 Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income as non-GAAP measures. We believe Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income 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 net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, which may vary for different companies for reasons unrelated to operating performance, as well as certain historical cost (benefit) items which may vary for different companies for reasons unrelated to operating performance. These measures are not financial measures calculated in accordance with GAAP and should not be considered 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.
We define "Adjusted Total Revenue" as total revenues, net of the change in fair value of mortgage servicing rights ("MSRs") and the related hedging gains and losses. We define "Adjusted EBITDA" as earnings before interest expense and amortization of debt issuance costs on non-funding debt, income taxes, depreciation and amortization, change in fair value of MSRs, net of the related hedging gains and losses, change in fair value of contingent consideration, stock compensation expense and management fees, and IPO related expense. We define "Adjusted Net Income" as tax-effected earnings before stock compensation expense and management fees, IPO expense, and the change in fair value of MSRs, net of the related hedging gains and losses, and the tax effects of those adjustments. Adjustments for income taxes are made to reflect LD Holdings 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. We exclude from each of these non-GAAP measures the change in fair value of MSRs and related hedging gains and losses as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, which is not indicative of our performance or results of operations. We also exclude stock compensation expense, which is a non-cash expense, management fees and IPO expenses as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA 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 and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.
Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:
Because of these limitations, Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income are not intended as alternatives to total revenue, net income (loss), or net income attributable to the Company 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 Revenue, Adjusted Net Income, and Adjusted EBITDA 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 | ||||||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | ||||||||||||||||
Total net revenue | $ | 1,298,394 | $ | 1,368,930 | $ | 415,292 | $ | 4,312,174 | $ | 1,337,131 | ||||||||||
Change in fair value of servicing rights(1) | (16,355) | 2,930 | (13,678) | 95,395 | 51,639 | |||||||||||||||
Net losses (gains) from derivatives hedging servicing rights | 4,525 | 1,981 | 2,383 | (14,490) | (20,974) | |||||||||||||||
Realized and unrealized (gains) losses from derivative assets and liabilities(2) | (33,857) | (28,291) | 3,200 | (140,172) | (21,618) | |||||||||||||||
Change in fair value of servicing rights net of hedging gains and losses(3) | (45,687) | (23,380) | (8,095) | (59,267) | 9,047 | |||||||||||||||
Adjusted total revenue | $ | 1,252,707 | $ | 1,345,550 | $ | 407,197 | $ | 4,252,907 | $ | 1,346,178 |
(1) Included in change in fair value of servicing rights, net in the Company's consolidated statements of operations. |
(2) Included in gain on origination and sale of loans, net in the Company's consolidated statements of operations, as shown below: |
($ in thousands) (Unaudited) | Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | ||||||||||||||||
Unrealized (losses) gains from derivative assets and liabilities | $ | (198,710) | $ | 201,003 | $ | (37,622) | $ | 320,756 | $ | 85,679 | ||||||||||
Less: Unrealized (losses) gains from derivative assets and liabilities—IRLC and LHFS | (209,767) | 195,383 | (28,830) | 288,325 | 95,578 | |||||||||||||||
Unrealized gains (losses) from derivative assets and liabilities—servicing rights | 11,057 | 5,620 | (8,792) | 32,431 | (9,899) | |||||||||||||||
Realized (losses) gains from derivative assets and liabilities | (78,226) | (162,191) | 20,720 | (450,254) | (128,634) | |||||||||||||||
Less: Realized (losses) gains from derivative assets and liabilities—IRLC and LHFS | (101,027) | (184,862) | 15,128 | (557,995) | (160,151) | |||||||||||||||
Realized gains (losses) from derivative assets and | 22,801 | 22,671 | 5,592 | 107,741 | 31,517 | |||||||||||||||
Realized and unrealized gains (losses) from derivative assets and liabilities - servicing rights | $ | 33,857 | $ | 28,291 | $ | (3,200) | $ | 140,172 | $ | 21,618 |
(3) Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses. |
Reconciliation of Net Income to Adjusted Net Income ($ in thousands) (Unaudited) | Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | ||||||||||||||||||
Net income | $ | 547,170 | $ | 728,349 | $ | 16,213 | $ | 2,013,110 | $ | 34,420 | ||||||||||||
Income tax expense (benefit) | 791 | 567 | (2,037) | 2,248 | (1,749) | |||||||||||||||||
Income before taxes | 547,961 | 728,916 | 14,176 | 2,015,358 | 32,671 | |||||||||||||||||
Adjustments to income taxes(1) | 141,040 | 187,616 | 3,649 | 518,733 | 8,410 | |||||||||||||||||
Tax-effected net income | 406,921 | 541,300 | 10,527 | 1,496,625 | 24,261 | |||||||||||||||||
Change in fair value of servicing rights, net of hedging gains and losses(2) | (45,687) | (23,380) | (8,095) | (59,267) | 9,047 | |||||||||||||||||
Stock compensation expense and management fees | 1,099 | 1,186 | 215 | 9,565 | 1,219 | |||||||||||||||||
IPO expenses | 2,560 | — | — | 2,560 | — | |||||||||||||||||
Tax effect of adjustments(3) | 10,818 | 5,713 | 2,028 | 12,134 | (2,642) | |||||||||||||||||
Adjusted net income | $ | 375,711 | $ | 524,819 | $ | 4,675 | $ | 1,461,617 | $ | 31,885 |
(1) loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to income tax (benefit) reflect the effective income tax rates below: |
Three Months Ended | Year Ended | |||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | ||||||||||||
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) | 4.74 | % | 4.74 | % | 4.74 | % | 4.74 | % | 4.74 | % | ||||||
Effective income tax rate | 25.74 | % | 25.74 | % | 25.74 | % | 25.74 | % | 25.74 | % |
(2) Amounts represent the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses. |
(3) Amounts represent the income tax effect of (a) change in fair value of servicing rights, net of hedging gains and losses, (b) stock compensation expense and management fees, and (c) IPO expense at the aforementioned effective income tax rates. |
Reconciliation of Net Income to Adjusted EBITDA ($ in thousands) (Unaudited) | Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | 2020 | 2019 | ||||||||||||||||
Net income | $ | 547,170 | $ | 728,349 | $ | 16,213 | $ | 2,013,110 | $ | 34,420 | ||||||||||
Interest expense - non-funding debt (1) | 15,884 | 10,522 | 10,902 | 48,001 | 41,294 | |||||||||||||||
Income tax expense (benefit) | 791 | 567 | (2,037) | 2,248 | (1,749) | |||||||||||||||
Depreciation and amortization | 8,547 | 8,585 | 10,116 | 35,669 | 37,400 | |||||||||||||||
Change in fair value of servicing rights, net of hedging gains and losses(2) | (45,687) | (23,380) | (8,095) | (59,267) | 9,047 | |||||||||||||||
Change in fair value - contingent consideration | — | 19,670 | 2,185 | 32,650 | 2,374 | |||||||||||||||
Stock compensation expense and management fees | 1,099 | 1,186 | 215 | 9,565 | 1,219 | |||||||||||||||
IPO expense | 2,560 | — | — | 2,560 | — | |||||||||||||||
Adjusted EBITDA | $ | 530,364 | $ | 745,499 | $ | 29,499 | $ | 2,084,536 | $ | 124,005 |
(1) Represents other interest expense, which includes amortization of debt issuance costs, in the Company's consolidated statement of operations. |
(2) Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses. |
Forward-Looking Statements
This press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its 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" 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 the risks in the "Risk Factors" section of loanDepot, Inc.'s Registration Statement on Form S-1, dated February 9, 2021, 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 is a contemporary financial services company dedicated to delivering a best-in-class experience to its mortgage purchase and refinance customers. Founded in 2010, loanDepot offers a diversified network of direct-to-consumer, in-market, and partner business channels, uniquely positioning it to serve a wide range of customers. Headquartered in Southern California, the Company has funded more than $300 billion since its founding and currently ranks as the second largest retail nonbank lender and one of the leading retail mortgage lenders in the United States. Committed to serving the communities in which its team members live and work, loanDepot has donated millions of dollars to support a variety of local, regional and national philanthropic efforts, most recently giving more than $2.5 million to help with COVID-related efforts for first responders, healthcare workers, individuals and families nationwide. The Company also is a founding sponsor of War Heroes on Water, which supports ongoing therapeutic healing services for combat-wounded veterans nationwide.
Investor Relations Contact:
Abe Gutierrez
Vice President, Investor Relations
(949) 860-8215
ir@loandepot.com
or
Nicole Carrillo
Executive Vice President, Chief Accounting Officer
(949) 575-5187
ir@loandepot.com
Media Contact:
Lori Wildrick
Vice President, Communications
(949) 330-8791
lwildrick@loandepot.com
LDI-IR
View original content to download multimedia:http://www.prnewswire.com/news-releases/loandepot-announces-fourth-quarter-and-full-year-2020-financial-results-301230892.html
SOURCE loanDepot, Inc.
Copyright 2021 PR Newswire
1 Year loanDepot Chart |
1 Month loanDepot Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions