Finance Of America Companies Inc. · NYSE:FOA
Finance Of America Companies — Q3 2021 Earnings Presentation
18 slides from Finance Of America Companies's earnings presentation, Nov 9, 2021
Slide 1: Earnings Presentation | Q3 2021
Earnings Presentation | Q3 2021 November 2021 ©2021 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 an unmatched consumer lending platform that is primed for growth
FOA is an unmatched 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 non-Mortgage businesses are increasingly driving its financial performance ⎯ 49% of Revenue and 80%
Slide 4: Q3 2021 Highlights
Q3 2021 Highlights Continued growth across • Year to date revenue of $1.4 billion, up 7% compared to 2020 all segments • Record quarterly revenue in Reverse, Commercial and Lender Services segments Sustained high levels • Adjusted Net Income1 of $75 million, up 32% from Q2 of profitability • Expandi
Slide 5: Finance of America is a profitable, growing company
Finance of America is a profitable, growing company Total Revenue ($M) Adjusted Net Income2 ($M) 2,000 500 1,797 1,778 1,800 450 430 1,600 400 2-Year CAGR 1,400 41% 350 308 1,200 300 1,000 250 894 2-Year CAGR 800 200 90% 600 150 400 100 85 200 50 - - 1 1 2019 2020 2021E 2019 2020 2021E 1 2021 equals
Slide 6: FOA's growth is best understood by viewing the business through two lenses
FOA’s growth is best understood by viewing the business through two lenses Mortgage Specialty Finance and Services1 Total Revenue ($M) Total Revenue ($M) 2,000 1,000 825 1,500 750 1,292 953 506 1,000 500 354 540 500 250 - - 2 2 2019 2020 2021E 2019 2020 2021E Adjusted Net Income3 ($M) Adjusted Net I
Slide 7: Our Mortgage platform consists of substantial infrastructure to drive growth
Our Mortgage platform consists of substantial infrastructure to drive growth in the purchase and non-agency markets MORTGAGE • Purchase-focused Retail channel; consistent earnings contributor • Capital markets expertise to fuel high margin, non-agency growth1 • Significant operating leverage during
Slide 8: Specialty Finance & Services is poised for continued profitable growth
Specialty Finance & Services is poised for continued profitable growth MORTGAGE SPECIALTY FINANCE & SERVICES • Macro tailwinds growing TAM • Purchase-focused Retail channel; across lending businesses2 consistent earnings contributor • Large market share with • Capital markets expertise to fuel growi
Slide 9: The path to unlocking greater value from our Mortgage platform
The path to unlocking greater value from our Mortgage platform MORTGAGE SPECIALTY FINANCE & SERVICES • Macro tailwinds growing TAM • Purchase-focused Retail channel; Lever the Mortgage across lending businesses2 consistent earnings contributor platform to fuel further SF&S growth3 • Large market sha
Slide 10: The Mortgage platform increasingly contributes to Specialty Finance & Services revenue
The Mortgage platform increasingly contributes to Specialty Finance & Services revenue SF&S Revenue attributable to Mortgage ($M): SF&S Revenue attributable to Mortgage ($M): Q3 2020 v Q3 2021 Two Year Trend Through the integration of data and software, drive deeper customer 30 120 engagement across
Slide 11: Specialty Finance & Services has generated strong revenue growth and operating leverage
Specialty Finance & Services has generated strong revenue growth and operating leverage Total Revenue ($M) Adjusted Net Income ($M)2 250 70 221 60 60 200 37% 50 Q3 150 161 40 191% Year over 30 100 Year 20 50 21 10 - - Q3 2020 Q3 2021 Q3 2020 Q3 2021 1,000 250 900 825 214 CAGR CAGR 800 700 53% 200 87
Slide 12: Q4 Guidance
Q4 Guidance Q3 Actual Revenue & Margin Q4 Projected Revenue & Margin Specialty Specialty Mortgage Finance & Mortgage Finance & Services Services Revenue ($ million) $235 $221 Revenue ($ million) $170-190 $230-250 Adjusted Net Adjusted Net Income Margin1 6% 27% Income Margin1 2-4% 26-28% 1 Please ref
Slide 13: Supporting Materials
SUPPORTING MATERIALS FINANCE OF AMERICA COMPANIES | Slide 13
Slide 14: Our Capital Markets capabilities rival the best-in-class
Our Capital Markets capabilities rival the best-in-class Reflects Cumulative Securitizations Deals from January 2017 – September 2021 % by Investor Type Real-time window into investor Money REIT & # Deals UPB ($MM) Investors Insurance Depository Manager Pension Other demand identifies new product op
Slide 15: Secular tailwinds in Specialty Finance and Services will fuel long term growth
Secular tailwinds in Specialty Finance and Services will fuel long term growth Reverse Originations: Commercial Originations: Seniors have substantial untapped home equity1 The housing stock in the US is getting older4 Built 2010 or later 4% <2% Market Senior home value1 Built 1969 or earlier Penetr
Slide 16: The opportunity to leverage our Mortgage platform is extraordinary
The opportunity to leverage our Mortgage platform is extraordinary # of offices ME # of brokers 61 VT WA NH MA MT ND 39 MN NY OR RI ID WI SD MI 39 CT 6 WY PA NJ 29 242 DE 4 IA OH MD NE NV 3 IL 60 WV VA Washington D.C. IN 110 UT MO CO 8 KS 16 KY NC 36 12 26 12 645 CA TN SC 104 OK AR 9 49 AZ GA AL NM
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation All values in $ Millions 2019A 2020A YTD 2021 Q3 2021 Q2 2021 Q3 2020 Net income (loss) $78 $500 $160 $50 ($15) $242 Adjustments for: Changes in fair value(1) 17 58 55 20 24 (17) Amortization and impairment of intangibles(2) 3 3 28 13 13 - Equity-based compensation(3) 3 - 21
Slide 18: Non-GAAP Reconciliation (Continued)
Non-GAAP Reconciliation (Continued) Mortgage All values in $ Millions 2019A 2020A YTD 2021 Q3 2021 Q3 2020 Pre-tax income (loss) $20 $460 $104 $15 $204 Adjustments for: Changes in fair value(1) - 6 - - - Amortization and impairment of intangibles(2) - - 3 1 - Equity-based compensation(3) - - 4 3 - C
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