Realogy Holdings (RLGY) reported second-quarter net income of $68 million and basic earnings per share for the quarter of $0.47, beating estimates by $0.03.
This includes $73 million of interest expense, $46 million of depreciation and amortization expense and $17 million in pre-tax charges related to the company's repurchase of $354 million of its 7.875% first and a half lien notes during the quarter.
Net revenue for the quarter was down 1% compared to second quarter 2013, coming in at $1.5 billion, beating estimates by $20 million.
"With our recently announced agreement to acquire ZipRealty, we seized upon an exceptional opportunity to further drive growth in our brokerage operations and undertake a significant technology upgrade across our franchise systems," said Richard Smith, Realogy's chairman, CEO and president.
"For the second quarter, we are pleased to report that we outperformed the high end of our previously announced guidance range by achieving homesale transaction volume gains of 3% for the quarter on a combined basis between our company-owned brokerages and franchise business segments. While price was the principal reason for the overall volume increase, better-than-expected sides comparisons also drove the better-than-expected performance," Smith added.
In July, Realogy Holdings entered into a definitive agreement to acquire ZipRealty (ZIPR) for $6.75 per share in an all-cash transaction valued at approximately $166 million.
With this transaction, Realogy is acquiring ZipRealty's residential brokerage operations with 23 offices across the United States and its integrated real estate technology platform, including its recently released private-label solution for brokers.
