(1) 45,129 53,000 42,504 144,676 128,619
Income tax expense
(benefit) 923 (11,304) (5,205) (24,040) (28,622)
Depreciation and
amortization 8,931 8,955 10,592 27,329 31,339
Valuation changes
in servicing
rights, net of
hedging gains and
losses(2) 14,901 12,617 (4,545) 35,546 10,457
Stock-based
compensation
expense 8,200 5,898 3,940 18,952 15,619
Restructuring
charges(3) 1,853 3,127 2,007 7,105 8,357
Cybersecurity
incident(4) (18,880) 26,942 -- 22,760 --
Loss (gain) on
disposal of fixed
assets 3 -- 93 (25) 1,105
Other impairment(5) 10 1,193 129 1,202 470
------- ------- ------- -------- --------
Adjusted EBITDA
(LBITDA) $ 63,742 $ 34,575 $ 15,253 $ 98,820 $ (8,399)
======= ======= ======= ======== ========
(1) Represents other interest expense, which includes gain or loss on
extinguishment of debt and amortization of debt issuance costs and debt
discount, 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, and gains (losses) from the sale
of MSRs. Beginning in the second quarter of 2024, we began to include
the gains (losses) from the sale of MSRs in valuation changes in
servicing rights, net of hedging gains and losses to appropriately
capture all valuation changes in MSRs up to and including the sales
date. Prior periods have been revised to conform with this new
presentation.
(3) Reflects employee severance expense and professional services
associated with restructuring efforts subsequent to the announcement of
Vision 2025 in July 2022.
(4) Represents expenses, directly related to the Cybersecurity Incident,
net of expected insurance recoveries, that occurred in the first
quarter of 2024, including costs to investigate and remediate the
Cybersecurity Incident, the costs of customer notifications and
identity protection, professional fees including legal expenses,
litigation settlement costs, and commission guarantees. During the
three months ended September 30, 2024, the Company recorded a $20.0
million receivable for reimbursement from its insurers. During the nine
months ended September 30, 2024, the Company recorded $35.0 million for
an insurance reimbursement and receivable, and an accrual of $25.0
million in connection with class action litigation related to the
Cybersecurity Incident.
(5) Represents lease impairment on corporate and retail locations.
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 Project North Star, our progress toward run-rate profitability, ongoing cost management and productivity programs, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, the impact of the Cybersecurity Incident, operations and financial performance. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words "outlook," "potential," "believe," "anticipate," "expect," "intend, " "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases or future or conditional verbs such as "will," "may," "might," "should," "would," or "could" and the negatives of those terms. 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 that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of Project North Star and the success of other business initiatives; 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 incidents, 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; our ability to reach a definitive settlement agreement related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates; 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, 2023, and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and 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/20241105434727/en/
CONTACT: 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
(END) Dow Jones Newswires
November 05, 2024 16:06 ET (21:06 GMT)
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