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Nationstar Mortgage Announces Record Second Quarter 2013 Financial Results

Stocks in this article: NSM

Nationstar Mortgage Holdings Inc. (NYSE: NSM):

  • Record GAAP EPS of $1.37 on net income of $123 million
  • Pro forma EPS of $1.50, excluding BofA ramp and other one-time expenses totaling $19 million
  • Well positioned for an improving economy
  • Affirm EPS guidance for ’13 of $4.05 - $4.75 and ’14 of $6.45 - $7.50
  • Ending servicing portfolio UPB of $318 billion; pro forma UPB of $435 billion
  • Servicing: Profitability targets on track; over $400 billion bulk acquisition pipeline
  • Originations: Record funded volume of $7.1 billion and recapture rate of 48%
  • Completed strategic acquisition of Greenlight Financial Services

Nationstar Mortgage Holdings Inc. (NYSE:NSM) (“Nationstar”), a leading residential mortgage services company, today reported quarterly net income of $123.4 million, or $1.37 per share, for the second quarter 2013 compared to $62.6 million, or $0.70 per share, in the first quarter 2013 and $36.3 million, or $0.41 per share, in the second quarter 2012.

Pro forma Q2’13 EPS was $1.50, after adjusting for $19.4 million in platform ramp and one-time transaction expenses related to the previously announced servicing acquisition from Bank of America (“BofA”), the Greenlight acquisition, and the non-agency advance securitization. Pro forma Q2’13 EPS was up in comparison to both the prior quarter pro forma EPS of $0.85 and Q2’12 pro forma EPS of $0.44.

On a Non-GAAP basis, adjusted EBITDA (“AEBITDA”) for operating segments grew 37% to $243.7 million, or $2.70 per share, for the current quarter versus $178.2 million, or $1.98 per share, in the first quarter 2013. In the current quarter AEBITDA margin was 40%.

Nationstar’s revenue grew 40% to $603.7 million in the second quarter from $431.1 million in the prior quarter and was up 198% from $202.8 million in the second quarter of 2012. Pre-tax income from operating segments for the second quarter was $206.6 million, or $2.29 per share, up 90% from $108.7 million, or $1.21 per share, in the first quarter of 2013 and up 266% from $56.4 million, or $0.63 per share, in the second quarter of 2012. In the current quarter, pre-tax income margin from operating segments was 34%. Pro forma Q2’13 pre-tax income from operating segments was $226.0 million, or $2.50 per share.

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