(referred to as net debt leverage ratio) is set forth in the following
table:
As of September 30, 2024
------------------------------------
Revolving Credit Facility $ 500
7.00% Senior Secured Second Lien Notes 640
5.75% Senior Notes 558
5.25% Senior Notes 449
0.25% Exchangeable Senior Notes 403
Finance lease obligations 17
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Corporate Debt (excluding
securitizations) 2,567
Less: Cash and cash equivalents 102
------------------------------------
Net Corporate Debt (excluding
securitizations) $ 2,465
EBITDA as defined by the Senior
Secured Credit Agreement (a) $ 331
------------------------------------
Net Debt Leverage Ratio 7.4 x
(a) See Table 8a for a reconciliation of Net loss attributable to Anywhere
Group to EBITDA as defined by the Senior Secured Credit Agreement.
Table 9
Non-GAAP Definitions
Adjusted net income (loss) is defined by us as net income (loss) before: (a) mark-to-market interest rate swap adjustments; (b) former parent legacy items, which pertain to liabilities of the former parent for matters prior to mid-2006 and are non-operational in nature; (c) restructuring charges as a result of initiatives currently in progress; (d) impairments; (e) the (gain) loss on the early extinguishment of debt that results from refinancing and deleveraging debt initiatives; (f) the (gain) loss on the sale of businesses, investments or other assets and (g) the tax effect of the foregoing adjustments. We present Adjusted net income (loss) because we believe this measure is useful as a supplemental measure in evaluating the performance of our operating businesses and provides greater transparency into our operating results.
Operating EBITDA is defined as net income (loss) adjusted for depreciation and amortization, interest expense, net (excluding relocation services interest for securitization assets and securitization obligations), income taxes, and certain non-core items. Non-core items include restructuring charges, former parent legacy items, gains or losses on the early extinguishment of debt, impairments, and gains or losses on discontinued operations or the sale of businesses, investments or other assets. Operating EBITDA is our primary non-GAAP measure. Operating EBITDA Margin is defined as Operating EBITDA as a percentage of revenues.
We present Operating EBITDA because we believe it is useful as a supplemental measure in evaluating the performance of our operating businesses and provides greater transparency into our results of operations. Our management, including our chief operating decision maker, uses Operating EBITDA as a factor in evaluating the performance of our business. Operating EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations data prepared in accordance with GAAP.
We believe Operating EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, as well as other items that are not core to the operating activities of the Company such as restructuring charges, gains or losses on the early extinguishment of debt, former parent legacy items, impairments, gains or losses on discontinued operations and gains or losses on the sale of businesses, investments or other assets, which may vary for different companies for reasons unrelated to operating performance. We further believe that Operating EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Operating EBITDA measure when reporting their results.
Operating EBITDA has limitations as an analytical tool, and you should not consider Operating EBITDA either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations are:
-- this measure does not reflect changes in, or cash required for, our
working capital needs;
-- this measure does not reflect our interest expense (except for interest
related to our securitization obligations), or the cash requirements
necessary to service interest or principal payments on our debt;
-- this measure does not reflect our income tax expense or the cash
requirements to pay our taxes;
-- this measure does not reflect historical cash expenditures or future
requirements for capital expenditures or contractual commitments;
-- although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often require replacement in the
future, and this measure does not reflect any cash requirements for such
replacements; and
-- other companies may calculate this measure differently so they may not be
comparable.
Free Cash Flow is defined as net income (loss) attributable to Anywhere before income tax expense (benefit), income tax payments, interest expense, net, cash interest payments, depreciation and amortization, capital expenditures, restructuring costs and former parent legacy costs (benefits), net of payments, impairments, (gain) loss on the sale of businesses, investments or other assets, (gain) loss on the early extinguishment of debt, working capital adjustments and relocation receivables (assets), net of change in securitization obligations. We use Free Cash Flow in our internal evaluation of operating effectiveness and decisions regarding the allocation of resources, as well as measuring the Company's ability to generate cash. Since Free Cash Flow can be viewed as both a performance measure and a cash flow measure, the Company has provided a reconciliation to both net income attributable to Anywhere and net cash provided by operating activities. Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance or liquidity. Free Cash Flow may differ from similarly titled measures presented by other companies.
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SOURCE Anywhere Real Estate Inc.
(END) Dow Jones Newswires
November 07, 2024 07:30 ET (12:30 GMT)
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