Analyst Summary:
Guild Holdings has announced its financial results for Q4 and full year ended December 31st, 2022. Despite a more challenging industry market and interest rate environment, Guild Holdings delivered a year of profitability and invested in their business to add value through accretive acquisitions. This growth-oriented mortgage company's differentiated business model remains scalable and repeatable, and with a well-capitalized balance sheet, they are positioned to continue investing in growth.
Mary Ann McGarry, CEO of Guild Holdings, commented on the financial results, "Our business is scalable and repeatable, and with a well-capitalized balance sheet we are positioned to continue to invest in our growth. While the current rising rate environment is creating a more challenging backdrop in the near term, we remain focused on building long-term shareholder value."
Guild Holdings' Q4 2022 revenue was $189.1 million, down from $196.5 million in the previous quarter due to lower origination volumes as a result of higher interest rates. Adjusted ROE was 6%, and they acquired two high-quality mortgage companies in the fourth quarter and after year-end. Guild Holdings' shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.
Forward-looking statements include potential disruptions in the secondary home loan market and changes in the macroeconomic environment, government-sponsored entities, and interest rates. Distributions from their subsidiary, Guild Mortgage Company LLC, and the dual class common stock structure could also impact the company's financial results.
Guild Holdings' financial measures presented on a GAAP and non-GAAP basis include Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDA, and Adjusted Return on Equity. Guild Holdings utilizes these measures to evaluate their operating performance, establish budgets, and develop operational goals.