Finance Of America Companies Inc. · NYSE:FOA
Finance Of America Companies — Q4 2021 Earnings Presentation
17 slides from Finance Of America Companies's earnings presentation, Mar 3, 2022
Slide 1: Earnings Presentation | Q4 2021
Earnings Presentation | Q4 2021 March 2022 ©2022 Finance of America Companies
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of Finance of America Companies Inc., together with its subsidiar
Slide 3: FOA is a consumer lending platform that is primed for growth
FOA is a consumer lending platform that is primed for growth Distinct product portfolio, distribution and capital markets capabilities drive growth regardless of the mortgage cycle • FOA’s Specialty Finance & Services (“SF&S”) segments are increasingly driving its financial performance ⎯ 51% of Reve
Slide 4: Fourth quarter and full year net loss solely attributable to the impairment of goodwill and intangible assets
Fourth quarter and full year net loss solely attributable to the impairment of goodwill and intangible assets All values in $ Millions Q4 2021 FY 2021 • The Company performed its annual goodwill impairment analysis as part of the year end 2021 financial statement Mortgage pre-tax income (loss) exclu
Slide 5: Q4 2021 Highlights
Q4 2021 Highlights Continued growth across • Record quarterly revenue and funded volume in Reverse and segments Commercial segments • Non-agency Mortgage volume grew 25% quarter over quarter; now accounting for 18% of overall Mortgage volume Sustained high levels • Net loss of $(1,336) million due t
Slide 6: 2021 full year Highlights
2021 full year Highlights Continued growth across • Record annual revenue in Reverse, Commercial and Lender segments Services segments • Record annual origination volume in Mortgage, Reverse and Commercial segments Sustained high levels • Net loss of $(1,177) million due to impairment of goodwill an
Slide 7: Our SF&S businesses continued their tremendous growth
Our SF&S businesses continued their tremendous growth Total Revenue ($M) Adjusted Net Income ($M)(1) $2,000 $500 ‘19-’21 SF&S CAGR ‘19-’21 SF&S CAGR 45% $1,800 $1,736 90% $430 $400 $1,500 $308 $959 $300 $1,292 $88 $1,000 $350 $894 $200 $527 $500 $220 $777 $100 $85 $24 $508 $367 $80 $61 $0 $0 2019 20
Slide 8: Management is laser focused on three key strategic priorities
Management is laser focused on three key strategic priorities 3 ▪ Meet our customers where they are and interact on their terms Transform to a customer-centric organization ▪ Delight our customers in every interaction with meaningful experiences 2 ▪ Marketing and product innovation to capitalize on
Slide 9: We are taking several steps to optimize the mortgage business
1 We are taking several steps to optimize the mortgage business Origination volume ($M)(1) Leverage our retail distribution 35,000 platform to capitalize on the shift to a purchase market 30,000 29,064 29,434 1,914 4,068 25,000 Grow our non-qualified mortgage franchise 20,000 17,982 13,919 15,437 15
Slide 10: There is substantial opportunity to sell more SF&S products through our Mortgage channels
1 There is substantial opportunity to sell more SF&S products through our Mortgage channels SF&S Revenue attributable to Mortgage ($M): Two Year Trend Average number of products sold by Mortgage LOs and Brokers in 2021 $125 40.0 34.0 $100 $96 2-Year CAGR 30.0 45% Refinance $75 18.8 20.0 $54 $50 $46
Slide 11: We have made substantial investments in our high growth businesses
2 We have made substantial investments in our high growth businesses Reverse Originations | Average Quarterly Headcount Commercial Originations | Average Quarterly Headcount 500 447 500 400 400 297 291 300 260 300 200 200 154 154 100 100 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 12: FOA embarked on an effort to transform to a customer-centric business
3 FOA embarked on an effort to transform to a customer-centric business Data, targeted campaigns, and a focus on end-to-end experiences will drive immediate impact while creating differentiation Advanced Data Build an enterprise data platform with advanced data management capabilities, machine learn
Slide 13: We have a strong foundation to ensure success
We have a strong foundation to ensure success Our vast infrastructure across growing, highly profitable businesses coupled with our proven ability to innovate are true differentiators that will ensure long term profitable growth Our broad distribution network and We are market leaders in high Best-i
Slide 14: Q1 Guidance
Q1 Guidance Q1 2021 Actual Revenue & Margin Q1 2022 Projected Revenue & Margin Specialty Specialty Mortgage Finance & Mortgage Finance & Services Services Revenue ($ million) $320 $188 Revenue ($ million) $150-170 $230-250 Adjusted Net 23% 19% Adjusted Net Income Margin1 Income Margin1 0-2% 19-21% $
Slide 15: Supporting Materials
SUPPORTING MATERIALS FINANCE OF AMERICA COMPANIES | Slide 15
Slide 16: Non-GAAP Reconciliation for FOA
Non-GAAP Reconciliation for FOA All values in $ Millions 2019 2020 2021 Q4 2021 Q1 2021 Net income (loss) $78 $498 $(1,177) $(1,336) $124 Adjustments for: Impairment of goodwill and intangible assets - - 1,381 1,381 - Changes in fair value(1) 17 58 108 52 12 Amortization of intangibles ex impairment
Slide 17: Non-GAAP Reconciliation for Mortgage and SF&S
Non-GAAP Reconciliation for Mortgage and SF&S Mortgage All values in $ Millions 2019 2020 2021 Q4 2021 Q1 2021 Pre-tax income (loss) $20 $460 $(679) $(783) $96 Adjustments for: Impairment of goodwill and intangible assets - - 775 775 - Changes in fair value(1) - 6 - - - Amortization of intangibles e
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