Finance Of America Companies Inc. · NYSE:FOA
Finance Of America Companies — Q3 2022 Earnings Presentation
8 slides from Finance Of America Companies's earnings presentation, Nov 9, 2022
Slide 1: Earnings Presentation | Q3 2022
Earnings Presentation | Q3 2022 November 2022 ©2022 Finance of America Companies
Slide 2: Disclaimer
Disclaimer Forwa rd-Looking Statements Th i s presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current con di tions,
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights Focus on SF&S • In October 2022, FOA announced that it will exit the Mortgage Originations segment (other than Home Improvement) to optimize resources and prioritize investment in SF&S Sustained levels of • Reverse Originations generated Pre-tax Income of $34 million profitability
Slide 4: Our SF&S businesses are consistently profitable
Our SF&S businesses are consistently profitable SF&S: Adjusted Revenue ($M)(1) SF&S: Adjusted Net Income ($M)(2) $1,000 $250 $8 8 8 $2 20 $900 $800 $200 $700 $600 $150 $5 5 8 $5 36 $500 $3 87 $400 $100 $8 0 $300 $6 1 $5 3 $200 $50 $100 $- $- 2019 2020 2021 YTD 2022 2019 2020 2021 YTD 2022 (1) Cal c
Slide 5: Our Reverse Originations business is the backbone of our SF&S platform
Our Reverse Originations business is the backbone of our SF&S platform Reverse Originations: Total Revenue ($M) Reverse Originations: Pre-tax Income ex Goodwill Impairment ($M)(1) $400 $3 89 $400 $300 $300 $2 60 $2 43 $1 94 $200 $200 $1 45 $1 38 $1 07 $100 $100 $6 5 $- $- 2019 2020 2021 YTD 2022 201
Slide 6: Cash usage in the quarter is primarily attributable to deleveraging
Cash usage in the quarter is primarily attributable to deleveraging Change in Cash (1) from Q2 2022 to Q3 2022 ($M) $300 • In the quarter, FOA paid down $56 Mor t gage Operations million in secured lines of credit $5 5 $250 excluding Forward MSR leverage $(1 9) $(9 ) • Loans Held for Investment grew
Slide 7: Supporting Materials
SUPPORTING MATERIALS FINANCE OF AMERICA COMPANIES | Slide 7
Slide 8: Non-GAAP Reconciliation for Specialty Finance & Services
Non-GAAP Reconciliation for Specialty Finance & Services All v alues in $ Millions 2019 2020 2021 Y TD 2022 Pre-tax income (loss) $58 $40 $(517) $(324) Adjustments for: Changes in fair value (1) 17 52 108 323 Amortization and impairment of goodwill and intangible assets(2) 3 3 642 45 Share-based com
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