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Realogy reduces debt by $200 million, ends Q3 with $173 million cash
By Lisa Kerner
Charlotte, N.C., Nov. 4 - Realogy Holdings Corp. had an "outstanding third quarter" that included a 21% increase in revenue and 27% increase in adjusted EBITDA year-over-year, according to chairman, chief executive officer and president Richard Smith.
The increases were driven by a 29% increase in year-over-year homesale transaction volume, Smith said during the company's third-quarter earnings conference call on Monday.
Third-quarter revenues were $1.55 billion, and adjusted EBITDA was $286 million.
Debt reduction
"We continue to delever at a rapid pace," chief financial officer Tony Hull said on the call.
"Our net corporate debt was down to $3.8 billion at the end of the quarter, compared to $4 billion at year-end 2012, and we expect to end the year with approximately $3.7 billion of net debt."
During the quarter, Realogy repurchased $100 million of 9% notes, for an expected interest savings of $9 million.
Net debt leverage to trailing 12-month adjusted EBITDA at Sept. 30 was 4.7 times, down from 5.9 times at year's end.
Realogy continues to focus on achieving a target leverage ratio of three times.
The Madison, N.J.-based real estate sales and relocation services provider ended the quarter with a cash balance of $173 million and $40 million of outstanding borrowings on its revolving credit facility.
Cash flow for the quarter totaled $200 million, primarily due to the strong gains in operations and lower interest expense, said Hull.
Hull expects full-year 2013 annual adjusted EBITDA to be in the range of $785 million to $800 million, an increase of 16% to 19% year-over-year.
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