Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Q4 2021 Earnings Presentation
16 slides from Walker & Dunlop's earnings presentation, Feb 3, 2022
Slide 1: Fourth Quarter and Full-Year 2021 Earnings
Q4 FOURTH QUARTER AND FULL-YEAR 2021 EARNINGS February 3, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar
Slide 3: Q4'21 Key Performance Metrics
E X C E P T I O N A L F I N A N C I A L R E S U LT S R E F L E C T C O N T I N U E D D I V E R S I F I C AT I O N O F B U S I N E S S Q4’21 Key Performance Metrics Total Transaction Volume Total Revenues Adjusted EBITDA1 (in thousands) (in thousands) (in millions) $109,667 $27,102 $407,189 $349,709
Slide 4: People, Technology, Brand: Q4 2021
PEOPLE Q4 2021 BRAND 75% of refinancing volume1 was new loans 37% of total transaction volume was with new clients 4 1) Represents refinancings that were added to Walker & Dunlop TECHNOLOGY 4 servicing portfolio in Q4’21
Slide 5: People, Technology, Brand: FY 2021
PEOPLE FY 2021 BRAND 71% of refinancing volume1 was new loans 30% of total transaction volume was with new clients 5 1) Represents refinancings that were added to Walker & Dunlop TECHNOLOGY 5 servicing portfolio throughout 2021
Slide 6: Dramatic Financial Growth Over Past Decade
D R A M AT I C F I N A N C I A L G R O W T H O V E R PA S T D E C A D E Total Revenue Diluted EPS Adjusted EBITDA1 (in thousands) (in thousands) $1,259,178 $8.15 $309,278 $1.60 $152,350 $32,163 2011 2021 2011 2021 2011 2021 1) This is a non-GAAP financial measure. For a reconciliation of the metric
Slide 7: Significant Progress Made on Drive to '25 Goals in 2021
SIGNIFICANT PROGRESS MADE ON DRIVE TO ’25 GOALS IN 2021 Total Revenues Debt Financing Volume Property Sales Volume (in millions) (in millions) (in millions) $2,000 $65,000 $25,000 $48,911 $19,255 $1,259 $1,084 $34,954, $6,129 2020 Volume 2021 Progress 2025 Goal 2020 Volume 2021 Progress 2025 Goal 20
Slide 8: Significant Progress Made on Drive to '25 Goals in 2021
SIGNIFICANT PROGRESS MADE ON DRIVE TO ’25 GOALS IN 2021 Servicing Portfolio (in millions) Assets Under Management1 (in millions) $160,000 $16,438 $115,701 $107,212 $10,000 $1,816 2020 Volume 2021 Progress 2025 Goal 2020 Volume 2021 Progress 2025 Goal 1) Assets under management comprises assets manag
Slide 9: Q4 and Full-Year 2021 Key Performance Metrics
E X C E P T I O N A L F I N A N C I A L R E S U LT S R E F L E C T C O N T I N U E D D I V E R S I F I C AT I O N O F B U S I N E S S Q4 and Full-Year 2021 Key Performance Metrics Q4 Total Transaction Volume Q4 Total Revenue FY Total Transaction Volume FY Total Revenue (in millions) (in thousands) (
Slide 10: Strong Cash Revenues Drive Record Adjusted EBITDA
STRONG CASH REVENUES DRIVE RECORD ADJUSTED EBITDA Adjusted EBITDA1 (in thousands) $109,667 $309,278 $215,849 $58,161 +89% +43% Q4'20 Q4'21 2020 2021 10 1) This is a non-GAAP financial measure. For a reconciliation of the metric to GAAP net income, refer to the appendix of this presentation
Slide 11: Adjusted Earnings Per Share Reflects Strong Cash Generation Capabilities
ADJUSTED EARNINGS PER SHARE1 REFLECTS S T R O N G C A S H G E N E R AT I O N C A PA B I L I T I E S $350,000 $7.00 $6.51 $6.00 $5.55 $309,278 $5.19 Adjusted Diluted Earnings per Share $300,000 Adjusted EBITDA2 (in thousands) $4.79 $5.00 $3.84 $4.00 $247,907 $250,000 $3.00 $220,081 $215,849 $200,950
Slide 12: 2022 Financial Outlook
2022 FINANCIAL OUTLOOK 2022 TARGETS Total Revenues DOUBLE DIGIT GROWTH Diluted Earnings Per Share DOUBLE DIGIT GROWTH Adjusted EBITDA DOUBLE DIGIT GROWTH Operating Margin 26% to 29% Return on Equity 19% to 22% 12
Slide 13: World's Best: 5-Year TSR Outperforms
13 0.00 200.00 300.00 500.00 600.00 (100.00) 100.00 400.00 12/30/2016 1/31/2017 Source: S&P Capital IQ 3/1/2017 3/29/2017 4/27/2017 5/25/2017 6/23/2017 7/24/2017 Total Shareholder Return 8/21/2017 9/19/2017 10/17/2017 11/14/2017 12/13/2017 1/12/2018 2/12/2018 3/13/2018 WORLD’S BEST 4/11/2018 5/9/201
Slide 14: Appendix
APPENDIX
Slide 15: Adjusted EBITDA Reconciliation to Net Income
A D J U S T E D E B I T D A R E C O N C I L I AT I O N TO NET INCOME For the Three months Three months Full year ended Full year ended Full year ended ended December ended December December 31, December 31, December 31, (in thousands) 31, 2020 31, 2021 2011 2020 2021 Walker & Dunlop Net Income $83,0
Slide 16: Adjusted Net Income and Diluted EPS Reconciliation to Net Income
ADJUSTED NET INCOME AND DILUTED EPS R E C O N C I L I AT I O N T O N E T I N C O M E For the Three months Three months Full year ended Full year ended Full year ended Full year ended Full year ended ended December ended December December 31, December 31, December 31, December 31, December 31, (in th