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UWM Holdings Corporation Announces Second Quarter 2021 Results

August, 16, 2021

$138.7 million in 2Q21 Net Income;
Record Quarterly Total Loan Volume of $59.2 billion and Purchase Volume of $24.1 billion in 2Q21

UWM Holdings Corporation (NYSE: UWMC), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale mortgage lender in America, today announced its results for the second quarter ended June 30, 2021. UWMC reported 2Q21 net income of $138.7 million on $59.2 billion in total originations. The record loan origination volume for the quarter also included a quarterly record of $24.1 billion in purchase volume and net income for the second quarter was inclusive of a $219.1 million decline in fair value of mortgage servicing rights (MSRs).

Mat Ishbia, Chairman and CEO of UWMC, said: "We demonstrated the strength of our business by delivering our best quarter of all-time in terms of overall production and purchase production. As we have said previously, UWM is built to succeed not only when there is a refi boom and margins are at record highs, but also when margins are compressed and purchase business drives the volume. Consumers are increasingly coming to realize that working with a broker is the cheapest, fastest and easiest way to get a mortgage, and as long as the wholesale channel flourishes, so will UWM as the undisputed leader and champion of the channel."

Second Quarter 2021 Financial Highlights

  • Originations of $59.2 billion, a 90% increase from $31.1 billion in 2Q20
  • Purchase originations of $24.1 billion, a 288% increase compared to $6.2 billion in 2Q20
  • Total gain margin of 81 bps in 2Q21 compared to 243 bps in 2Q20
  • Second quarter 2021 net income of $138.7 million inclusive of a $219.1 million decline in fair value of MSRs as compared to $539.5 million for 2Q20 inclusive of $70.0 million of expenses related to amortization, impairment, and pay-offs of MSRs.
  • Total equity of $2.69 billion at June 30, 2021 as compared to $1.47 billion at June 30, 2020
  • Unpaid principal balance of mortgage servicing rights increased to $260.5 billion at June 30, 2021 from $109.4 billion at June 30, 2020
  • Commenced stock buyback and repurchased 790,599 shares of Class A Common Stock for $6.1 million through June 30, 2021

Production and Income Statement Highlights (dollars in thousands)

 

 

 

Q2 2021

 

Q1 2021

 

Q2 2020

Closed loan volume(1)

 

$

59,210,747

 

 

$

49,094,240

 

 

$

31,137,561

 

Total gain margin(1)(2)

 

0.81

%

 

2.19

%

 

2.43

%

Net income

 

$

138,712

 

 

$

860,005

 

 

$

539,487

 

Adjusted net income(3)

 

106,841

 

 

665,318

 

 

411,769

 

Adjusted EBITDA(3)

 

209,651

 

 

711,418

 

 

531,988

 

(1)

Key operational metric - see discussion below.

(2)

Represents total loan production income divided by total production.

(3)

Non-GAAP metric - see discussion below.

Balance Sheet Highlights as of Period-end (dollars in thousands)

 

 

 

Q2 2021

 

Q1 2021

 

Q2 2020

Cash and cash equivalents

 

$

1,048,177

 

 

$

1,592,663

 

 

$

570,439

 

Mortgage loans at fair value

 

12,404,112

 

 

5,503,271

 

 

5,793,106

 

Mortgage servicing rights (fair value at Q2 2021 and Q1 2021; amortized cost in Q2 2020)(1)

 

2,662,556

 

 

2,300,434

 

 

924,260

 

Total assets

 

16,844,098

 

 

10,372,626

 

 

7,773,873

 

Non-funding debt (2)

 

1,548,088

 

 

1,270,167

 

 

362,251

 

Total equity

 

2,686,986

 

 

2,778,036

 

 

1,468,151

 

Non-funding debt to equity (2)

 

0.58

 

 

0.46

 

 

0.25

 

(1)

The Company elected the fair value method of accounting for mortgage servicing rights effective January 1, 2021.

(2)

Non-GAAP metric - please see discussion below.

Mortgage Servicing Rights (dollars in thousands)

 

 

 

Q2 2021

 

Q1 2021

 

Q2 2020

Unpaid principal balance

 

$

260,514,602

 

 

$

220,978,670

 

 

$

109,355,531

 

Weighted average interest rate

 

2.97

%

 

3.00

%

 

3.63

%

Weighted average age (months)

 

7

 

 

7

 

 

5

 

Operational and Community Highlights

  • We maintained an average application to clear to close time (“Days to Close”) of approximately 18 days in 2Q21 while management estimates that the industry average remains at an average of 47 days during second quarter 2021, as released in the June ICE Mortgage Technology Origination Insight Report
  • Our 1.19% 60+ days delinquency and our 1.06% forbearance rates, as of June 30, 2021, are significantly better than the industry averages of 4.37% and 3.76%, respectively, highlighting our strong credit quality
  • We launched FutureU, an internship program for children that are aging out of the foster care system, aimed at providing a career launching pad at UWM

Technology Update

  • In Q2 we launched a proprietary document management software platform that enables end-to-end document management, making our process more efficient. We expect estimated annual costs savings of approximately $8M.

Product and Investor Mix - Unpaid Principal Balance as of Period-end (dollars in thousands)

 

Purchase:

 

Q2 2021

 

Q1 2021

 

Q2 2020

Conventional

 

$

17,439,162

 

 

$

10,310,924

 

 

$

4,628,755

 

Jumbo

 

3,151,864

 

 

13,264

 

 

61,383

 

Government

 

3,471,430

 

 

1,893,354

 

 

1,515,975

 

Total Purchase

 

$

24,062,456

 

 

$

12,217,542

 

 

$

6,206,113

 

 

 

 

 

 

 

 

Refinance:

 

Q2 2021

 

Q1 2021

 

Q2 2020

Conventional

 

$

30,143,310

 

 

$

33,623,348

 

 

$

22,852,618

 

Jumbo

 

2,737,040

 

 

5,446

 

 

127,706

 

Government

 

2,267,940

 

 

3,247,904

 

 

1,951,124

 

Total Refinance

 

$

35,148,290

 

 

$

36,876,698

 

 

$

24,931,448

 

Total Originations

 

$

59,210,746

 

 

$

49,094,240

 

 

$

31,137,561

 

Chairman and CEO of UWMC, Mat Ishbia, added: “In Q2 we began seeing the return from the foundation we built, particularly in the rapid growth of our purchase production, and also evidenced by the renewed focus on Jumbo, Manufactured Homes, and FHA.”

Third Quarter 2021 Outlook

We anticipate third quarter production to be in the $57-$62 billion range, with expected gain margin between 75 and 100 bps.

Dividend

Subsequent to June 30, 2021, the UWMC Board of Directors declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on October 6, 2021 (the “Dividend Payment Date”) to stockholders of record at the close of business on September 10, 2021. On or before the Dividend Payment Date, the Board, in its capacity as the Manager of UWM Holdings LLC ("Holdings LLC") and pursuant to its authority under the Holdings LLC Amended and Restated Operating Agreement, will determine whether to (a) make distributions from Holdings LLC to only UWM Holdings Corporation, as the owner of the Class A Units of Holdings LLC with the proportional amount due to SFS Holding Corp. ("SFS Corp.") as the owner of the Class B Units of Holdings LLC, being distributed upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of UWMC or (b) make proportional and simultaneous distributions from Holdings LLC to both UWM Holdings Corporation, as the owner of the Class A Units of Holdings LLC and to SFS Corp. as the owner of the Class B Units of Holdings LLC.

Recent Developments

Subsequent to June 30, 2021, the Company repurchased an additional 1.5 million shares of Class A common stock for approximately $11.5 million pursuant to the share repurchase plan authorized by the Company's Board of Directors.

Earnings Conference Call Details

As previously announced, UWMC will hold a conference call for financial analysts and investors on Monday, August 16 at 4:30 PM ET to review the results and answer questions. Interested parties may register for a toll-free dial-in number by visiting:

Please dial in at least 15 minutes in advance to ensure a timely connection to the call. Audio webcast, taped replay and transcript will be available on the UWMC investor relations website at https://investors.uwm.com/.

Key Operational Metrics

“Closed loan volume” and “Total gain margin” are key operational metrics that UWMC management uses to evaluate the performance of the business. “Closed loan volume” is the aggregate principal of the residential mortgage loans originated by UWMC during a period. “Total gain margin” represents total loan production income divided by total production.

Non-GAAP Metrics

UWMC's net income for periods prior to the first quarter of 2021 does not reflect a significant income tax provision, since UWM (UWMC's accounting predecessor) is a pass-through entity not subject to federal and most state income taxes. For periods commencing with the first quarter of 2021, UWMC's net income does not reflect the income tax provision that would otherwise be reflected if 100% of the economic interest in UWM was owned by UWMC. Therefore, for comparison purposes, UWMC provides “Adjusted net income”, which is our pre-tax income adjusted for a 23.78% estimated effective tax rate. “Adjusted net income” is a Non-GAAP Metric.

We also disclose Adjusted EBITDA, which we define as earnings before interest expense on non-funding debt, provision for income taxes, depreciation and amortization of premises and equipment, stock-based compensation expense, the change in fair value of MSRs due to valuation inputs or assumptions (for periods subsequent to the election of the fair value method accounting for MSRs), and the impairment or recovery of MSRs (for periods prior to the election of the fair value method of accounting for MSRs), the impact of non-cash deferred compensation expense, and the change in fair value of Public and Private Warrants. We exclude the change in fair value of Public and Private Warrants and the change in fair value of MSRs due to valuation inputs or assumptions, or impairment or recovery of MSRs prior to the election of the fair value method of accounting for MSRs, as these represent non-cash, non-realized adjustments to our earnings, which is not indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of interest expense, as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

In addition, we disclose “Non-funding debt” and the “Non-funding debt to equity ratio” as a Non-GAAP metric. We define “Non-funding debt” as the total of UWMC's senior notes, operating lines of credit, equipment note payable, and finance leases as reported on our balance sheet, and the “Non-funding debt to equity ratio” as Non-funding debt divided by UWMC’s total equity.

Management believes that these Non-GAAP metrics provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.

The following table presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP (dollars in thousands):

Adjusted net income

 

Q2 2021

 

Q1 2021

 

Q2 2020

Earnings before income taxes

 

$

140,174

 

 

$

872,891

 

 

$

540,237

 

Impact of estimated effective tax rate of 23.78%

 

(33,333

)

 

(207,573

)

 

(128,468

)

Adjusted net income

 

$

106,841

 

 

$

665,318

 

 

$

411,769

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

Q2 2021

 

Q1 2021

 

Q2 2020

Net income

 

$

138,712

 

 

$

860,005

 

 

$

539,487

 

Interest expense on non-funding debt

 

22,292

 

 

16,343

 

 

5,472

 

Provision for income taxes

 

1,462

 

 

12,886

 

 

750

 

Depreciation and amortization

 

8,353

 

 

7,289

 

 

2,676

 

Stock-based compensation expense

 

2,327

 

 

 

 

 

Change in fair value of MSRs due to valuation inputs or assumptions

 

38,035

 

 

(197,802

)

 

 

(Recovery)/Impairment of MSRs

 

 

 

 

 

(25,697

)

Deferred compensation, net

 

 

 

30,000

 

 

9,300

 

Change in fair value of Public and Private Warrants

 

(1,530

)

 

(17,303

)

 

 

Adjusted EBITDA

 

$

209,651

 

 

$

711,418

 

 

$

531,988

 

 

 

 

 

 

 

 

Non-funding debt and non-funding debt to equity

 

Q2 2021

 

Q1 2021

 

Q2 2020

Senior notes

 

$

1,483,587

 

 

$

789,870

 

 

$

 

Operating lines of credit

 

 

 

400,000

 

 

335,000

 

Equipment note payable

 

2,583

 

 

25,424

 

 

27,251

 

Finance lease liability

 

61,918

 

 

54,873

 

 

 

Total non-funding debt

 

$

1,548,088

 

 

$

1,270,167

 

 

$

362,251

 

Total equity

 

$

2,686,986

 

 

$

2,778,036

 

 

$

1,468,151

 

Non-funding debt to equity

 

0.58

 

 

0.46

 

 

0.25

 

Forward Looking Statements

This press release and our earnings call include forward-looking statements. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” and similar words indicating that these reflect our views with respect to future events. Forward-looking statements in this press release include statements regarding: (1) our foundation and strategies for growth and the drivers of that growth; (2) our “All-In” initiative and its impact on our business and industry; (3) our performance in shifting market conditions and the comparison of such performance against our competitors; (4) growth of the wholesale channel and the benefits to our business of such growth; (5) our investments in technology and the impact to our operations and financial results; (6) our purchase production and product mix; and (7) our anticipated ranges for production volume and margin in the third quarter of 2021. These statements are based on management’s current expectations, but are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results materially differ from those stated or implied in the forward-looking statements, including (i) UWM’s dependence on macroeconomic and U.S. residential real estate market conditions, including changes in U.S. monetary policies that affect interest rates; (ii) UWM’s reliance on its warehouse facilities and the risk of a decrease in the value of the collateral underlying certain of its facilities causing an unanticipated margin call; (iii) UWM’s ability to sell loans in the secondary market; (iv) UWM’s dependence on the government sponsored entities such as Fannie Mae and Freddie Mac; (v) changes in the GSEs’, FHA, USDA and VA guidelines or GSE and Ginnie Mae guarantees; (vi) UWM’s dependence on Independent Mortgage Advisors to originate mortgage loans; (vii) the risk that an increase in the value of the MBS UWM sells in forward markets to hedge its pipeline may result in an unanticipated margin call; (viii) UWM’s inability to continue to grow, or to effectively manage the growth of, its loan origination volume; (ix) UWM’s ability to continue to attract and retain its Independent Mortgage Advisor relationships; (x) UWM’s ability to implement technological innovation; (xi) UWM’s ability to continue to comply with the complex state and federal laws regulations or practices applicable to mortgage loan origination and servicing in general; and (xii) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission including those under “Risk Factors” therein. With respect to expectations regarding the share repurchase program, the amount and timing of share repurchases will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements. We wish to caution readers that certain important factors may have affected and could in the future affect our results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of us. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

About UWM Holdings Corporation and United Wholesale Mortgage

Headquartered in Pontiac, Michigan, UWM Holdings Corporation is the publicly traded indirect parent of United Wholesale Mortgage (“UWM”). UWM is the #1 wholesale lender in the nation six years in a row, providing state-of-the-art technology and unrivaled client service. UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions. UWM focuses on providing highly efficient, accurate and expeditious lending support. UWM’s exceptional teamwork and focus on technology result in the delivery of innovative mortgage solutions that drive the company’s ongoing growth in market share and its leadership position as the foremost advocate for independent mortgage brokers. For more information, visit www.uwm.com.

 

UWM HOLDINGS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share amounts)

 

 

June 30,
2021

 

December 31,
2020

Assets

(Unaudited)

 

 

Cash and cash equivalents

$

1,048,177

 

 

$

1,223,837

 

Mortgage loans at fair value

12,404,112

 

 

7,916,515

 

Derivative assets

75,438

 

 

61,072

 

Accounts receivable, net

317,458

 

 

253,600

 

Mortgage servicing rights

2,662,556

 

 

1,756,864

 

Premises and equipment, net

130,864

 

 

107,572

 

Operating lease right-of-use asset, net (includes $86,748 and $92,571 with related parties)

87,130

 

 

93,098

 

Finance lease right-of-use asset (includes $29,385 and $0 with related parties)

61,356

 

 

22,929

 

Other assets

57,007

 

 

57,989

 

Total assets

$

16,844,098

 

 

$

11,493,476

 

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

11,249,213

 

 

$

6,941,397

 

Accounts payable and accrued expenses

1,018,536

 

 

847,745

 

Accrued distributions and dividends payable

160,444

 

 

 

Derivative liabilities

82,551

 

 

66,237

 

Equipment note payable

2,583

 

 

26,528

 

Operating lines of credit

 

 

320,300

 

Senior notes

1,483,587

 

 

789,323

 

Operating lease liability (includes $97,898 and $104,006 with related parties)

98,280

 

 

104,534

 

Finance lease liability (includes $29,576 and $0 with related parties)

61,918

 

 

23,132

 

Total liabilities

14,157,112

 

 

9,119,196

 

Equity:

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 102,318,776 shares issued and outstanding as of June 30, 2021

10

 

 

 

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of June 30, 2021

150

 

 

 

Additional paid-in capital

187

 

 

24,839

 

Retained earnings

109,397

 

 

2,349,441

 

Non-controlling interest

2,577,242

 

 

 

Total equity

2,686,986

 

 

2,374,280

 

Total liabilities and equity

$

16,844,098

 

 

$

11,493,476

 

 
 

UWM HOLDINGS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

For the six months ended

 

June 30,
2021

 

March 31,
2021

 

June 30,
2020

 

June 30,
2021

 

June 30,
2020

Revenue

 

 

 

 

 

 

 

 

 

Loan production income

$

479,274

 

 

$

1,074,665

 

 

$

755,967

 

 

$

1,553,939

 

 

$

1,160,181

 

Loan servicing income

145,278

 

 

123,789

 

 

62,056

 

 

269,067

 

 

112,153

 

Change in fair value of mortgage servicing rights

(219,104

)

 

(59,259

)

 

 

 

(278,363

)

 

 

Gain (loss) on sale of mortgage servicing rights

10

 

 

4,763

 

 

(15,275

)

 

4,773

 

 

(65,497

)

Interest income

79,194

 

 

45,912

 

 

27,900

 

 

125,106

 

 

79,267

 

Total revenue, net

484,652

 

 

1,189,870

 

 

830,648

 

 

1,674,522

 

 

1,286,104

 

Expenses

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

172,951

 

 

213,061

 

 

134,749

 

 

386,012

 

 

256,533

 

Direct loan production costs

15,518

 

 

13,162

 

 

10,625

 

 

28,680

 

 

23,179

 

Marketing, travel, and entertainment

11,330

 

 

10,495

 

 

2,820

 

 

21,825

 

 

10,254

 

Depreciation and amortization

8,353

 

 

7,289

 

 

2,676

 

 

15,642

 

 

5,321

 

Servicing costs

23,067

 

 

20,508

 

 

12,644

 

 

43,575

 

 

25,966

 

Amortization, impairment and pay-offs of mortgage servicing rights

 

 

 

 

70,046

 

 

 

 

288,800

 

General and administrative

42,116

 

 

16,778

 

 

26,826

 

 

58,894

 

 

42,402

 

Interest expense

72,673

 

 

52,990

 

 

30,025

 

 

125,663

 

 

73,063

 

Other (income)/expense

(1,530

)

 

(17,304

)

 

 

 

(18,834

)

 

 

Total expenses

344,478

 

 

316,979

 

 

290,411

 

 

661,457

 

 

725,518

 

Earnings before income taxes

140,174

 

 

872,891

 

 

540,237

 

 

1,013,065

 

 

560,586

 

Provision for income taxes

1,462

 

 

12,886

 

 

750

 

 

14,348

 

 

750

 

Net income

138,712

 

 

860,005

 

 

539,487

 

 

998,717

 

 

559,836

 

Net income attributable to non-controlling interest

130,448

 

 

812,020

 

 

N/A

 

 

$

942,468

 

 

N/A

 

Net income attributable to UWMC

$

8,264

 

 

$

47,985

 

 

N/A

 

 

$

56,249

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

Earnings per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

$

0.08

 

 

$

0.47

 

 

N/A

 

 

$

0.55

 

 

N/A

 

Diluted

$

0.07

 

 

$

0.33

 

 

N/A

 

 

$

0.39

 

 

N/A

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

102,760,823

 

 

103,104,205

 

 

N/A

 

 

102,908,906

 

 

N/A

 

Diluted

1,605,067,478

 

 

1,605,173,992

 

 

N/A

 

 

1,605,215,562

 

 

N/A

 

 

Addendum to Exhibit 99.1

This addendum includes the Company's Condensed Consolidated Balance Sheets as of June 30, 2021 and the preceding four quarters and Statements of Operations for the quarter ended June 30, 2021 and the preceding four quarters, for purposes of providing historical quarterly trending information to investors.

         

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share amounts)

         

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

 

June 30,
2020

Assets

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

(Unaudited)

Cash and cash equivalents

$

1,048,177

 

 

$

1,592,663

 

 

$

1,223,837

 

 

$

755,795

 

 

$

570,439

 

Mortgage loans at fair value

12,404,112

 

 

5,503,271

 

 

7,916,515

 

 

5,215,196

 

 

5,793,106

 

Derivative assets

75,438

 

 

113,168

 

 

61,072

 

 

51,053

 

 

56,938

 

Accounts receivable, net

317,458

 

 

549,381

 

 

253,600

 

 

246,862

 

 

217,325

 

Mortgage servicing rights

2,662,556

 

 

2,300,434

 

 

1,756,864

 

 

1,411,272

 

 

924,260

 

Premises and equipment, net

130,864

 

 

111,964

 

 

107,572

 

 

51,548

 

 

81,522

 

Operating lease right-of-use asset, net

87,130

 

 

87,896

 

 

93,098

 

 

109,680

 

 

111,753

 

Finance lease right-of-use asset

61,356

 

 

54,456

 

 

22,929

 

 

 

 

 

Other assets

57,007

 

 

59,393

 

 

57,989

 

 

66,397

 

 

18,530

 

Total assets

$

16,844,098

 

 

$

10,372,626

 

 

$

11,493,476

 

 

$

7,907,803

 

 

$

7,773,873

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

Warehouse lines of credit

$

11,249,213

 

 

$

4,823,740

 

 

$

6,941,397

 

 

$

4,913,206

 

 

$

5,408,390

 

Accrued distributions and dividends payable

1,018,536

 

 

1,185,499

 

 

847,745

 

 

462,074

 

 

360,972

 

Accrued dividends payable

160,444

 

 

160,517

 

 

 

 

 

 

 

Derivative liabilities

82,551

 

 

55,479

 

 

66,237

 

 

41,498

 

 

50,654

 

Equipment note payable

2,583

 

 

25,424

 

 

26,528

 

 

25,925

 

 

27,251

 

Operating lines of credit

 

 

400,000

 

 

320,300

 

 

320,300

 

 

335,000

 

Senior notes

1,483,587

 

 

789,870

 

 

789,323

 

 

 

 

 

Operating lease liability

98,280

 

 

99,188

 

104,534

 

122,439

 

123,455

Finance lease liability

61,918

 

 

54,873

 

 

23,132

 

 

 

 

 

Total liabilities

14,157,112

 

 

7,594,590

 

 

9,119,196

 

 

5,885,442

 

 

6,305,722

 

Equity:

 

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

 

 

 

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 102,318,776 shares issued and outstanding as of June 30, 2021

10

 

 

10

 

 

 

 

 

 

 

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

 

 

 

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2021

 

 

 

 

 

 

 

 

 

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of June 30, 2021

150

 

 

150

 

 

 

 

 

 

 

Additional paid-in capital

187

 

 

 

 

24,839

 

 

24,839

 

 

 

Retained earnings

109,397

 

 

113,078

 

 

2,349,441

 

 

1,997,522

 

 

1,468,151

 

Non-controlling interest

2,577,242

 

 

2,664,798

 

 

 

 

 

 

 

Total equity

2,686,986

 

 

2,778,036

 

 

2,374,280

 

 

2,022,361

 

 

1,468,151

 

Total liabilities and equity

$

16,844,098

 

 

$

10,372,626

 

 

$

11,493,476

 

 

$

7,907,803

 

 

$

7,773,873

 

 
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

Revenue

 

 

 

 

 

Loan production income

$

479,274

 

$

1,074,665

 

$

1,667,252

 

$

1,723,981

 

$

755,967

 

Loan servicing income

145,278

 

123,789

 

105,648

 

70,503

 

62,056

 

Change in fair value of mortgage servicing rights

(219,104

)

(59,259

)

 

 

 

Gain (loss) on sale of mortgage servicing rights

10

 

4,763

 

3,538

 

(324

)

(15,275

)

Interest income

79,194

 

45,912

 

41,852

 

40,041

 

27,900

 

Total revenue, net

484,652

 

1,189,870

 

1,818,290

 

1,834,201

 

830,648

 

Expenses

 

 

 

 

 

Salaries, commissions and benefits

172,951

 

213,061

 

89,437

 

206,174

 

134,749

 

Direct loan production costs

15,518

 

13,162

 

14,595

 

16,685

 

10,625

 

Marketing, travel, and entertainment

11,330

 

10,495

 

6,452

 

3,572

 

2,820

 

Depreciation and amortization

8,353

 

7,289

 

8,749

 

2,749

 

2,676

 

Servicing costs

23,067

 

20,508

 

29,549

 

15,320

 

12,644

 

Amortization, impairment and pay-offs of mortgage servicing rights

 

 

215,390

 

68,928

 

70,046

 

General and administrative

42,260

 

16,778

 

28,024

 

28,520

 

26,826

 

Interest expense

72,673

 

52,990

 

53,353

 

40,620

 

30,025

 

Other (income) expense

(1,530

)

(17,304

)

 

 

 

Total expenses

344,478

 

316,979

 

445,549

 

382,568

 

290,411

 

Earnings before income taxes

140,174

 

872,891

 

1,372,741

 

1,451,633

 

540,237

 

Provision for income taxes

1,462

 

12,886

 

950

 

750

 

750

 

Net income

138,712

 

860,005

 

1,371,791

 

1,450,883

 

539,487

 

Net income attributable to non-controlling interest

130,448

 

812,020

 

N/A

 

N/A

 

N/A

 

Net income attributable to UWMC

$

8,264

 

47,985

 

N/A

 

N/A

 

N/A

 

 

 

 

 

 

 

Earning per share of Class A common stock:

 

 

 

 

 

Basic

$

0.08

 

$

0.47

 

N/A

 

N/A

 

N/A

 

Diluted

$

0.07

 

$

0.33

 

N/A

 

N/A

 

N/A

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

102,760,823

 

103,104,205

 

N/A

 

N/A

 

N/A

 

Diluted

1,605,067,478

 

1,605,173,992

 

N/A

 

N/A

 

N/A

 

 

INVESTOR CONTACT
MATT ROSLIN
InvestorRelations@uwm.com

MEDIA CONTACT
NICOLE YELLAND
Media@uwm.com

Source: UWM Holdings Corporation

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