We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Replay Acquisition Corp | NYSE:RPLA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 9.48 | 0 | 01:00:00 |
– Full Year Pre-Tax Income and Adjusted EBITDA Exceed Previously Increased Guidance –
– Funded Volume Grew 7% From Prior Quarter and 70% in 2020 –
– Investor Call Scheduled For Tuesday, March 2, 2021 At 5:00 pm Eastern Time –
Finance of America Companies, (“Finance of America”) which intends to merge in a business combination with Replay Acquisition Corp. (NYSE: RPLA) (“Replay Acquisition”) that will result in Finance of America becoming a publicly-listed company, reported fourth quarter and full year results for the period ended December 31, 2020. Finance of America is a diversified, vertically integrated consumer lending platform operating in three lending segments: Mortgage Originations, Reverse Originations, Commercial Originations, and two non-lending segments: Lender Services and Portfolio Management.
Fourth Quarter 2020 Highlights
Full Year 2020 Highlights
*See reconciliation of Adjusted EBITDA to Net income before taxes.
“Finance of America delivered on all fronts as strong fourth quarter results drove record full-year performance beating the high-end of our upwardly revised guidance,” stated Patricia Cook, CEO of Finance of America. “Our central tenet is to engage in businesses that complement one another, with a broadly diversified platform to generate sustainable growth across economic cycles and capitalize on tailwinds as they present themselves. Persistent low interest rates facilitated record mortgage originations volumes and margins, while other segments continued to gain traction and perform well. Our Portfolio Management business invested in its first MSRs fund last quarter, and we continue to launch new products and extend Reverse and Commercial Originations footprints. Finally, as we near the milestone of becoming a public company, our team remains energized to continue to deliver market leading results while driving shareholder value.”
Fourth Quarter Financial Summary
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Funded volume
9,769
9,170
7%
6,029
62%
32,626
19,159
70%
Net rate lock volume(1)
7,855
9,286
-15%
3,972
98%
30,157
16,524
83%
Total revenue
539
605
-11%
250
116%
1,797
894
101%
Total expenses
386
362
7%
235
64%
1,297
816
59%
Pre-tax net income
153
242
-37%
15
920%
500
78
541%
Net income
153
242
-37%
15
920%
498
77
547%
Adjusted EBITDA(3)
174
235
-26%
23
657%
597
124
381%
Mortgage originations margin(2)
4.31%
4.39%
-2%
3.08%
40%
3.88%
2.80%
39%
(1)Net rate lock volume relates only to the Mortgage Originations segment
(2)Calculated for each period as Gain on sale of mortgage loans, net and other income related to the origination of mortgage loans held for sale, net divided by Net rate lock volume.
(3)See reconciliation of Adjusted EBITDA to Net income before taxes
Discussion of Fourth Quarter 2020 Results:
Balance Sheet Highlights
($ amounts in millions)
December 31,
2020
December 31,
2019
Variance (%)
2020 vs 2019
Cash and cash equivalents
233
118
97%
Total assets
19,565
16,584
18%
Total liabilities
18,771
15,913
18%
CRNCI
166
188
-12%
Members' equity
628
483
30%
Segment Results
Mortgage Originations
The Mortgage Originations segment generates revenue through fee income from loan originations and gain on sale of mortgage loans into the secondary market.
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Funded volume
8,808
8,454
4%
4,440
98%
29,064
15,437
88%
Net rate lock volume
7,855
9,286
-15%
3,972
98%
30,157
16,524
83%
Total revenue
367
444
-17%
143
157%
1,292
527
145%
Mortgage originations margin
4.31%
4.39%
-2%
3.08%
40%
3.88%
2.80%
39%
Pre-tax net income
129
204
-37%
2
6,350%
460
20
2,200%
Reverse Originations
The Reverse Originations segment generates revenue and earnings in the form of net origination gains and origination fees earned on the origination of reverse mortgage loans.
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Funded volume
655
626
5%
686
-5%
2,707
2,487
9%
Total revenue
55
49
12%
37
49%
194
145
34%
Pre-tax net income
33
24
38%
13
154%
107
65
65%
Commercial Originations
The Commercial Originations segment provides business purpose lending solutions for residential real estate investors. The Commercial Originations segment generates revenue and earnings in the form of net origination gains and origination fees earned on the origination of mortgage loans.
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Funded volume
307
90
241%
400
-23%
855
1,235
-31%
Total revenue
13
5
160%
21
-38%
37
67
-45%
Pre-tax net income (loss)
1
(2)
100%
5
-80%
(4)
15
-127%
Portfolio Management
The Portfolio Management segment generates revenue and earnings in the form of gain on sale of loans, fair value gains, interest income, servicing income, fees for underwriting, advisory and valuation services and other ancillary fees.
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Assets under management
16,896
16,639
2%
15,056
12%
16,896
15,056
12%
Total revenue
38
42
-10%
25
52%
69
73
-5%
Pre-tax net income (loss)
8
19
-58%
5
60%
(22)
9
-344%
Lender Services
The Lender Services business generates revenue and earnings in the form of fees. Lender Services supports over 1,000 third party clients across the lending industry.
($ amounts in millions)
Q4'20
Q3'20
Variance (%)
Q4'20 vs Q3'20
Q4'19
Variance (%)
Q4'20 vs Q4'19
FY 2020
FY 2019
Variance (%)
2020 vs 2019
Total revenue
66
53
25%
31
113%
205
110
86%
Pre-tax net income
4
8
-50%
1
300%
20
5
300%
Reconciliation to GAAP:
($ amounts in millions)
Q4'20
Q3'20
Q4'19
FY 2020
FY 2019
Net income before taxes
153
242
15
500
78
Adjustments for:
Change in fair value of loans and securities HFI
(4)
(17)
2
50
20
Interest expense on non-funding debt
5
-
1
8
3
Depreciation, amortization, and other impairments
4
2
3
11
9
Other fair value adjustments on earnouts
3
-
(3)
3
(2)
Shared based compensation
-
-
-
-
3
Change in fair value of minority investments
6
-
-
6
(2)
Certain non-recurring costs
7
8
5
19
15
Adjusted EBITDA
174
235
23
597
124
Finance of America Equity Capital LLC and Subsidiaries
Consolidated Statements of Financial Position
(Amounts in $000s)
12/31/2020
12/31/2019
(unaudited)
ASSETS
Cash and cash equivalents
$
233,101
$
118,083
Restricted cash
306,262
264,581
Reverse mortgage loans held for investment, subject to HMBS obligations, at fair value
9,929,163
9,480,504
Mortgage loans held for investment, subject to nonrecourse debt, at fair value
5,396,167
3,511,212
Mortgage loans held for investment, at fair value
730,821
1,414,073
Mortgage loans held for sale, at fair value
2,222,811
1,251,574
Debt securities, at fair value
10,773
114,701
Mortgage servicing rights, at fair value
180,684
2,600
Derivative assets, at fair value
92,065
15,553
Fixed assets and leasehold improvements, net
24,512
26,686
Goodwill
121,233
121,137
Intangible assets, net
16,931
18,743
Due from related parties
2,559
2,814
Other assets, net
298,073
241,840
Total Assets
$
19,565,155
$
16,584,101
LIABILITIES
HMBS related obligations, at fair value
$
9,788,668
9,320,209
Nonrecourse debt, at fair value
5,257,754
3,490,196
Other secured lines of credit
2,973,743
2,749,413
Payables and accrued liabilities
414,146
326,176
Notes payable
336,573
27,313
Total Liabilities
18,770,884
15,913,307
CRNCI
166,231
187,981
Members’ equity
628,040
482,813
Total Liabilities, CRNCI and Members’ Equity
$
19,565,155
$
16,584,101
Finance of America Equity Capital LLC and Subsidiaries
Consolidated Statements of Operations
(Amounts in $000s)
Three Months
Three Months
Twelve Months
Twelve Months
12/31/2020
09/30/2020
12/31/2020
12/31/2019
(unaudited)
(unaudited)
(unaudited)
(unaudited)
REVENUES
Gain on sale of mortgage loans, net and other income related to the origination of mortgage loans held for sale, net
$
342,094
$
407,926
$
1,178,995
$
464,308
Net fair value gains on mortgage loans and related obligations
90,060
95,955
311,698
329,526
Fee income
123,264
116,905
386,752
201,628
Net interest expense:
Interest income
12,969
9,937
42,584
37,323
Interest expense
(29,836
)
(25,935
)
(123,001
)
(138,731
)
Net interest expense
(16,867
)
(15,998
)
(80,417
)
(101,408
)
Total Revenues
538,551
604,788
1,797,028
894,054
EXPENSES
Salaries, benefits and related expenses
253,231
240,381
868,265
529,250
Occupancy, equipment rentals and other office related expenses
6,826
8,184
29,621
32,811
General and administrative expenses
125,301
113,804
398,885
254,414
Total Expenses
385,358
362,369
1,296,771
816,475
Net income before taxes
153,193
242,419
500,257
77,579
Provision for income taxes
770
808
2,344
949
Net income
152,423
241,611
497,913
76,630
CRNCI
1,210
(4,953
)
(21,749
)
21,707
Noncontrolling interest
198
276
1,274
511
Net income attributable to FOA Equity Capital LLC
$
151,015
$
246,288
$
518,388
$
54,412
Finance of America Equity Capital LLC and Subsidiaries
Consolidated Statements of Changes in Members’ Equity
(Amounts in $000s)
Members’ Equity
NC Interests
AOCI
Total
Balance at December 31, 2019
$
482,719
$
145
$
(51
)
$
482,813
Net Income
518,388
1,274
-
519,662
Members contributions
7,500
104
-
7,604
Members distributions
(380,431
)
(1,668
)
-
(382,099
)
Foreign currency translation
-
-
60
60
Balance at December 31, 2020
$
628,176
$
(145
)
$
9
$
628,040
Webcast and Conference call
Management will host a webcast and conference call on Tuesday, March 2, 2021 at 5:00 pm ET to discuss the Company’s results for the fourth quarter ended December 31, 2020.
The conference call will be made available in the Investors section of the Company's website at https://www.financeofamerica.com/ and on Replay Acquisition’s website at https://www.replayacquisition.com/. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register.
The conference call can also be accessed by the following dial-in information:
Replay
A replay of the call will also be available on the Company's website approximately two hours after the live call through March 16, 2021. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (international). The replay pin number is 13716713. The replay can also be accessed on the investors section of the Company's website at https://www.financeofamerica.com/investors/ or Replay Acquisition’s website at https://www.replayacquisition.com/.
About Finance of America
Finance of America is a diversified, vertically integrated consumer lending platform. Product offerings include mortgages, reverse mortgages, and loans to residential real estate investors distributed across retail, third party network, and digital channels. In addition, Finance of America offers complementary lending services to enhance the customer experience, as well as capital markets and portfolio management capabilities to optimize distribution to investors. The company is headquartered in Irving, TX, and is supported by leading global asset manager, The Blackstone Group. www.financeofamerica.com
About Replay Acquisition
Founded by Edmond Safra, Gregorio Werthein and Gerardo Werthein, Replay Acquisition is a NYSE-listed blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses in industries that Replay Acquisition believes have favorable prospects and a high likelihood of generating strong risk-adjusted returns for its shareholders. These industries include consumer, telecommunications and technology, energy, infrastructure, financial services and real estate, among others. www.replayacquisition.com
Important Information About the Proposed Business Combination and Where to Find It
In connection with the proposed business combination, a registration statement on Form S-4 (the “Form S-4”) has been filed by Finance of America Companies Inc., a newly-formed holding company (“New Pubco”), with the U.S. Securities and Exchange Commission (“SEC”) that includes a proxy statement of Replay Acquisition that also constitutes a prospectus of New Pubco. Replay Acquisition, Finance of America and New Pubco urge investors, stockholders and other interested persons to read the Form S-4, including the definitive proxy statement/prospectus and documents incorporated by reference therein, as well as other documents filed with the SEC in connection with the proposed business combination, as these materials will contain important information about Finance of America, Replay Acquisition, and the proposed business combination. Such persons can also read Replay Acquisition’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, for a description of the security holdings of Replay Acquisition’s officers and directors and their respective interests as security holders in the consummation of the proposed business combination. Beginning on February 12, 2021, the definitive proxy statement/prospectus is being mailed to Replay Acquisition’s shareholders as of January 28, 2021, seeking any required shareholder approval. Shareholders will also be able to obtain copies of such documents, without charge at the SEC’s website at www.sec.gov, or by directing a request to: Replay Acquisition Corp., 767 Fifth Avenue, 46th Floor, New York, New York 10153, or info@replayacquisition.com.
Participants in the Solicitation
Replay Acquisition, Finance of America, New Pubco and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Replay Acquisition’s shareholders in connection with the proposed business combination. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Replay Acquisition’s directors and executive officers in Replay Acquisition’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 25,2020. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies of Replay Acquisition’s shareholders in connection with the proposed business combination is set forth in the proxy statement/prospectus for the proposed business combination. Information concerning the interests of Replay Acquisition’s and Finance of America’s participants in the solicitation, which may, in some cases, be different than those of Replay Acquisition’s and Finance of America’s equity holders generally, is set forth in the proxy statement/prospectus relating to the proposed business combination.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Replay Acquisition’s and Finance of America’s actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Replay Acquisition’s and Finance of America’s expectations with respect to future performance and anticipated financial impacts of the proposed business combination, the satisfaction or waiver of the closing conditions to the proposed business combination, and the timing of the completion of the proposed business combination.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. Most of these factors are outside Replay Acquisition’s and Finance of America’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive transaction agreement (the “Agreement”); (2) the outcome of any legal proceedings that may be instituted against Replay Acquisition, New Pubco and/or Finance of America following the announcement of the Agreement and the transactions contemplated therein; (3) the inability to complete the proposed business combination, including due to failure to obtain approval of the shareholders of Replay Acquisition and Finance of America, certain regulatory approvals, or satisfy other conditions to closing in the Agreement; (4) the occurrence of any event, change, or other circumstance that could give rise to the termination of the Agreement or could otherwise cause the transaction to fail to close; (5) the impact of COVID-19 on Finance of America’s business and/or the ability of the parties to complete the proposed business combination; (6) the inability to obtain or maintain the listing of New Pubco’s shares of common stock on the NYSE following the proposed business combination; (7) the risk that the proposed business combination disrupts current plans and operations as a result of the announcement and consummation of the proposed business combination; (8) the ability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, competition, the ability of Finance of America to grow and manage growth profitably, and retain its key employees; (9) costs related to the proposed business combination; (10) changes in applicable laws or regulations; (11) the possibility that Finance of America or New Pubco or Replay Acquisition may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties indicated from time to time in the final prospectus of Replay Acquisition for its initial public offering and the proxy statement/prospectus relating to the proposed business combination, including those under “Risk Factors” therein, and in Replay Acquisition’s other filings with the SEC. Each of Replay Acquisition, Finance of America and New Pubco cautions that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning Replay Acquisition, Finance of America or New Pubco, the transactions described herein or other matters and attributable to Replay Acquisition, Finance of America, New Pubco or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Each of Replay Acquisition, Finance of America and New Pubco cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Each of Replay Acquisition, Finance of America and New Pubco does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
Non-GAAP Financial Measures
We define Adjusted EBITDA as earnings before change in fair value of loans and securities held for investment due to market or model assumption changes, interest on non-funding debt, depreciation, amortization and other impairments, other fair value adjustments on earnouts, share-based compensation, change in fair value of minority investments and certain non-recurring costs. We manage our Company by each of our operating and non-operating segments: Loan Originations (made up of Forward, Reverse, and Commercial Originations segments), Portfolio Management, Lender Services and Corporate and Other. We evaluate the performance of our segments through the use of Adjusted EBITDA as a non-GAAP measure. Management considers Adjusted EBITDA important in evaluating our business segments and the Company as a whole. Adjusted EBITDA is a supplemental metric utilized by our management team to assess the underlying key drivers and operational performance of the continuing operations of the business and our operating segments. In addition, analysts, investors, and creditors may use these measures when analyzing our operating performance. Adjusted EBITDA is not a presentation made in accordance with GAAP and our use of this measure and term may vary from other companies in our industry.
Adjusted EBITDA provides visibility to the underlying operating performance by excluding the impact of certain items, including income taxes, interest expense on non-funding debt, depreciation of fixed assets, amortization of intangible assets and other impairments, share-based compensation, changes in fair value of loans and securities held for investment due to market or model assumption changes, change in fair value of minority investments, and other non-recurring costs that management does not believe are representative of our core earnings. Adjusted EBITDA may also include other adjustments, as applicable based upon facts and circumstances, consistent with our intent of providing a supplemental means of evaluating our operating performance.
Adjusted EBITDA should not be considered as an alternate to (i) net income (loss) or any other performance measures determined in accordance with GAAP or (ii) operating cash flows determine in accordance with GAAP. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The Company’s definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210302006107/en/
For Finance of America Media: pr@financeofamerica.com For Finance of America Investor Relations: ir@financeofamerica.com For Replay Acquisition Corp.: info@replayacquisition.com
1 Year Replay Acquisition Chart |
1 Month Replay Acquisition 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