Good afternoon, and welcome to the Anywhere Real Estate first quarter 2023 earnings conference call via webcast. Today's call is being recorded, and a written transcript will be made available in the investor information section of the company's website tomorrow. A webcast replay will also be made available on the company's website. At this time, I would like to turn the conference over to Anywhere Senior Vice President, Alicia Swift. Please go ahead, Alicia. Thank you, Brianna. Good afternoon, and welcome to the first quarter 2023 earnings conference call for Anywhere Real Estate. On the call with me today are Anywhere CEO and President, Ryan Schneider, and Chief Financial Officer, Charlotte Simonelli. As shown on slide 3 of the presentation, the company will be making statements about its future results and other forward-looking statements during this call. These statements are based on the current expectation and the current economic environment. Forward-looking statements, estimates, and projections are inherently subject to significant economic, competitive, litigation, regulatory, and other uncertainties and contingencies, many of which are beyond the control of management, including, among others, industry and macroeconomic developments and the incurrence of liabilities that are in excess of amounts accrued or payments made in connection with pending litigation. Actual results may differ materially from those expressed or implied in the forward-looking statements. Important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in our earnings release issued today, as well as our annual and quarterly SEC filings. For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, May 3rd, and have not been updated subsequent to the initial earnings call. I will turn the call over to our CEO and President, Ryan Schneider. Thank you, Alicia. Good afternoon, everyone. Even in the face of a challenging housing market, Anywhere continues to charge ahead and make meaningful progress, setting up our company for even greater success in the future. In the first quarter of 2023, we stayed focused on positioning our existing businesses for future growth, especially Anywhere Brands and luxury, with specific successes in Anywhere Advisors agent recruiting and retention and Anywhere Brands sales across our great brands. We significantly lowered our cost base, including permanently changing how we operate as we work to execute $200 million in cost savings for the year. We continue to invest in reimagining the agent and consumer experience to create a simpler, more integrated real estate transaction that also lets us capture greater economics. I will share more on each of these later in the call. I want to start by thanking our great employees, agents, and franchisees for helping our customers navigate a tough environment as Anywhere stays laser-focused driving our strategic priorities, including an intense innovation agenda. In that spirit, our company got a lot of energy from being named one of Fortune's most innovative companies for the first time ever. Turning to the housing market, there is no hiding from the fact we are in the midst of a very challenging year. Most forecasts predict home sales in the low 4 million range, which would be one of the worst years we have seen in a long time. We still believe the year-over-year volume comparisons will improve throughout the year. I am starting to hear from some agents and franchisees about greater optimism for the market improving going forward. We have a few of those positive indicators in our portfolio. In Q1, our business performed right around expectations. We delivered $50 million of cost savings in a tough quarter when volume was down about 30%, both of which we signaled in advance to you. The volume decline was almost all unit-driven, with a 29% decline in home sale units. While home sales were down substantially across all markets, there was significant geographic variation in price changes. A few markets, in particular, California and New York City, had prices down 5%-10% versus prior year, while about two-thirds of the states, including large ones like Texas and Florida, saw prices hold steady or even increase versus last year. Revenue was over $1 billion, and operating EBITDA was -$52 million. However, our operating EBITDA was meaningfully impacted by new legal accruals in the quarter. As a reminder, in addition to the 2 other class action jury trials later this year, a second large industry antitrust transaction was certified in March. Legal accruals aside, we were pleased that March operating EBITDA was solidly positive. We expect that trend to continue. We are also glad to see open volume metrics continuing to outperform closed volume metrics in Q1, which indicates positive future volume levels. Our numbers for April so far are continuing the trend of open volume metrics running better than closed volume metrics. We are most excited about our strategic progress to set us up for greater success, especially in stronger future housing markets. First, we're working hard to position Anywhere to achieve share growth, especially as the market rebounds, with a particular focus on our franchise business and our luxury leadership. Our Anywhere Advisors agent base again grew year-over-year, we continue to have record agent retention levels. Our Anywhere Brands business is delivering robust franchise sales, both domestically and internationally. We continue to see agents and brokers attracted to our compelling value proposition that includes innovative technology, data and marketing products, and high-quality lead generation programs. Second, we are moving our business to a permanently lower cost base. As you can see from our cost results in 2022 and Q1 of 2023. We are re-architecting and reducing our real estate footprint and automating our operations. This includes our most recent actions as we bring together our title and brokerage physical footprints and operations to better serve agents, lower costs, and improve the transaction experience. Third, we continue to invest and make progress since our goal to simplify and integrate the agent and consumer transaction experience. We believe this will have multiple benefits, including capturing additional economics in the transaction and further reducing the stress and friction for consumers, agents, and franchisees. A few examples include the following from the quarter. Our RealVitalize product provides a turnkey solution to help sellers prepare their home for sale. This adds to our value proposition by simplifying the agent and consumer transaction experience and enables us to capture additional economics. For example, in Q1, we captured title on over 80% of the RealVitalize transactions in seller-controlled markets. We've scaled up our Leads Engine product, which simplifies and speeds up the process of matching consumers with agents. Leads Engine is part of our ongoing successful effort to shorten the time to connect interested consumers with agents and more broadly, meet consumers where they are even earlier in their home buying and selling journey. One-Click title, which, as the name suggests, simplifies and integrates the title ordering process to a single click across our title and brokerage operations, launched last year in Coldwell Banker Realty, and in Q1, nearly 30% of our CBR agents who close transactions use the feature. In addition to better integrating the transaction, One-Click Title is also an example of changing how we work by automating a complex part of the transaction. Finally, Upward Title, our new multi-franchise title joint venture program, went live in its first market, Florida, and is on track to launch in our next planned markets of California and Pennsylvania later this year. This program allows our franchisees to benefit from our scale and title and extends the reach of our integrated title offering to our franchise network. In the midst of a clearly tough housing market, I'm excited by our strategic progress, our team's continued track record of delivery, and how we're seizing this moment to further position Anywhere to capture the opportunities ahead of us, especially in stronger housing markets. I will turn it over to Charlotte to discuss our results in more detail. Good afternoon, everyone. Given the market dynamics, we had solid financial and operational performance in the first quarter and continue to focus on what we can control, our cost savings, and executing against our strategic goals. We believe our execution, strategic focus, and industry leadership will enable us to drive differentiated performance and emerge stronger when the housing market improves. Now I will highlight our first quarter financial results. Q1 revenue was $1.1 billion, down 31% versus prior year and in line with our transaction volume decline. Q1 operating EBITDA was negative $52 million, down versus prior year due to lower transaction volume and higher agent commission costs, offset in part by cost savings across the enterprise. Our results were also impacted by the significant legal accruals Ryan referred to earlier. We are prudently managing our cash. Cash on hand at the end of Q1 was $122 million. Q1 free cash flow was negative $120 million. This result is better than what we normally see in the first quarter, our seasonally slowest. Our revolver borrowing at the end of the quarter was $380 million, only $30 million higher than year-end 2022 and driven by our prudent cash management and better working capital. Almost all of our revolver borrowings relate to the note redemption we did in November last year, which leaves us with limited maturities until 2026. Let me go into more detail on our business segment performance. Our Anywhere Brands business, which includes leads and relocation, generated $97 million in operating EBITDA. Operating EBITDA decreased $41 million year-over-year, primarily due to lower revenue related to transaction volume declines, partially offset by decreases in operating and marketing costs. Our Q1 Anywhere Advisors operating EBITDA was -$75 million, down $35 million versus prior year due to lower volume and higher agent commission costs, offset in part by lower operating and marketing expenses. Commission splits in Q1 were up 84 basis points year-over-year, which was better than we expected in the quarter. Splits were worse than the prior year due to the impact of amortization of prior recruiting and retention payments over a much lower volume and due to the mix of agents we've recruited over the past year. It was also impacted by timing on our Corcoran new development business. Anywhere Integrated Services was -$17 million in operating EBITDA in Q1. Operating EBITDA declined $14 million year-over-year due to lower purchase and refinance volumes and $6 million lower earnings due to the sale of our title underwriter business. This was partially offset by lower operating expenses due to cost savings initiatives and $6 million in improved GRA JV performance. Moving on to costs. We have a relentless focus on changing how we operate our company to drive greater efficiency. We continue to execute on our $200 million cost savings program, realizing $50 million of this in the first quarter, and expect the balance to be recognized fairly evenly across the remainder of the year. The majority of the savings will come from headcount and real estate footprint efficiencies, representing about 70% of our 2023 savings. We have reduced our headcount by 11% since June of 2022. On the real estate footprint, we are focusing our efforts to reimagine and transform our real estate brokerage offices to be more efficient, flexible, and integrated with transaction services like title and mortgage. These efforts are focused on how we deliver services to agents and customers by advancing our technology and product solutions, which drive efficiencies. A couple of examples. In the first quarter, these efforts resulted in a reduction in our Coldwell Banker Realty offices of about 10%. We have historically operated title and brokerage separately, but now are focused on the opportunity to integrate administrative operations. This will change how we deliver services to brokerage, expanding our value proposition. This simplifies the transaction for agents and consumers, shortening timelines and improving the end user experience. This will also drive efficiencies and streamline operations by leveraging work that had previously been done in both title and brokerage, and now eliminating those redundancies. We are also targeting higher ROI spending. For example, we are moving away from advertising in March Madness to Amazon Prime Video for Thursday Night Football. The same dollar investment doubles our reach and offers retargeting opportunities and branded in-show integrations. We consider approximately two-thirds of our full year savings to be permanent and are not expected to return when volumes increase. These savings will be offset in part by inflation and by intensifying litigation costs driven by the cases Ryan mentioned previously. On to our new estimates for 2023. First, we expect our Q2 close volumes to be down about 25% versus prior year. Based on the Q1 split trends, we now expect full year 2023 split pressure of about 100 basis points, which is better than our previous estimates. Estimates that remain the same as our last call. For full year 2023, we continue to expect transaction volume declines to about 15%-20% year-over-year, which is consistent with our past estimate and in line with industry forecasts. We also still expect transaction volumes will improve sequentially throughout the year. We expect our operating free cash flow to be modestly positive as favorable working capital, robust savings programs, and our cash management discipline will help counterbalance this tough year in housing. We are on track to realize $200 million of P&L cost savings in 2023. Let me now turn the call back to Ryan for some closing remarks. Thank you, Charlotte. As I reflect on the first quarter, I'm proud of how our team navigated the tough housing environment and delivered. I'm also excited about the strategic progress we made in the quarter to set our business up for greater growth when the market rebounds, to permanently streamline our cost base as we operate differently, and to reimagine the agent and customer transaction experience. You know, looking ahead, you know, we continue to believe the housing market will improve through the course of the year, and I remain quite optimistic about the housing market over the medium term and our ability to lead in it. To achieve even greater success in the future, we continue to seize this moment to position Anywhere to capture the benefits of that better housing environment as together with our agents and franchisees, we move real estate to what's next. Now I'll turn the call back over to the operator for any questions. At this time, I would like to remind everyone in order to ask a question, press star followed by the number one on your telephone keypad. Your first question comes from Tommy McJoynt with KBW. Your line is now open. Hey, good evening, guys. Thanks for taking the questions. I want to start off asking about the commission split numbers. Assuming that the full year transaction volumes are down 15%-20%, I think you guided to for the full year, and understanding that the productivity mix among agents can vary, what's a reasonable range for where that commission split could end up this year, relative to what it was last year? Yeah. I think the guidance that I just indicated in the prepared remarks was to be around 100 basis points worse than prior year, the first quarter being down 84. Again, the drivers of what's causing the split pressure is the amortization of prior recruiting and retention payments, as well as, you know, the mix of some of the agents that we've recruited over the past year. Those are the big drivers, down 84 basis points in Q1. Our call for the full year at this point is to be down about 100. No, up 84 and up 100. Sorry. Worse $100. Yeah. Worse $100. Right. Got it. Okay. My second question, have you seen any early indications of a slowdown in available jumbo mortgage credit that's impacting the luxury housing market following the pullback by some of the banks that historically were pretty prominent in that market? No, we have not. You know, you know, our mortgage business is, you know, meaningfully sized, and you know, you know, kind of has a pretty broad distribution out there. Obviously, we're not a bank, so you know, we do operate differently than some of the banks, in our joint venture. You know, we haven't seen any pressure on housing results because of mortgage pullbacks. We've seen a massive amount of pressure on housing results because of mortgage rates, you know, with frankly the supply issue and the fact that so many people have a low rate and are kind of locked into their homes, and we're getting so little inventory on the market is even bigger than the affordability that comes with, you know, 6% to 7% mortgage rates. On the list of things that are kind of affecting housing transactions, both the number, the pricing, et cetera, like the pullback in mortgage credit and in the jumbo market in particular is not, you know, anywhere near the top of the list. It's not something that comes up. You know, look, the luxury segment has a disproportionate majority of cash transactions relative to the rest of the market. You know, good question, given everything that's going on, but it is not a driver we believe of either our results or of the results, you know, out there in the industry. Again, you know, it's a tough year for housing right now because of the rate environment. We, you know, we think the, you know, longer term outlook for housing with demographics and, you know, the fact that it's not a loose credit environment and we don't have the balance sheet issues of 15 years ago does have us more optimistic over the medium term. Pretty strong no on your question in terms of what we're seeing and what's affecting our results. Understood. Thanks, Ryan. Your next question comes from Matthew Bouley with Barclays. Your line is now open. Hey, good evening, everyone. Thank you for taking the questions. I guess on the G&A spend, you know, I guess presumably that includes some of these meaningful legal accruals that you're speaking to. I know you didn't add those back to Adjusted EBITDA. I don't know if you want to quantify those or, you know, or if you're kind of holding that back. Maybe said another way, is there a way to kind of think about sort of normalized level of G&A spend ongoing? Maybe it'd be a way to put it. Thank you. Well, look, this is three quarters in a row that we've had bluntly meaningful legal accruals that affect our EBITDA. To your point, you know, we just put it in the operating EBITDA, and we don't try to adjust that out. You know, we talk about them, and we make it clear that it's meaningful. You should obviously be assuming on a run rate basis that our, you know, absent those things, our G&A would have been lower and our EBITDA would have been higher. You know, we're not going to get in the business of giving the numbers out, partly 'cause you wouldn't, you know, want us to be sharing them with the plaintiffs. You know, we're pretty transparent about what's going on there and that it's a meaningful impact. You're right, that is where the lion's share of that stuff shows up. Yeah. I think, Matt, I mean, you've probably looked at our corporate G&A over a longer period of time, and you know kind of where our cost savings come from, the majority of which are coming out of brokerage, and title. you know, I think you can probably estimate for yourself what you think the run rate of corporate G&A would be. Yeah. I mean, the other thing probably to keep in mind when you look at the, how the legal accruals kind of hit the results, you know, Matt, obviously they go straight into the operating EBITDA number that we quoted. You know, legal accruals aside, you know, March was a, was a positive EBITDA month for us. It was solidly positive. You know, we like that. We like the trend there. Underlying that is the fact that, you know, every month so far this year, we've seen the open transactions volume metrics outperform the closed ones, which, you know, kind of shows future months better than previous. You know, that's partly why March was a better month than January, February. You know, those accruals have, you know, really been a headwind to some of these numbers, you know, that we've been sharing with you on an overall basis. We have tried to be clear that there's, you know, stronger underlying business performance there. You know, with the March EBITDA, you know, solidly positive is just one example of that. Yep. Got it. Before I get to my second question, is any color on maybe how many more quarters of legal accrual we could look for? Obviously, these cases continue to evolve. I mean, what we're accrued for at this point is our best guess as of today. We do have to reevaluate, you know, sort of month by month. The class was certified, and so we took a position that we thought was prudent. We're gonna have to keep watching it month by month. Okay. Got it. So thank you for all that helpful detail. Secondly, just kind of question on how this overall housing market is evolving. I think, you know, 1 thing you see as you look in the data is that you're seeing this sort of larger share shift towards new build. And I'm thinking more of the single-family side, so not really asking about the new development business that you guys do in, you know, in Corcoran, for example. As you think about how that maybe plays out from Anywhere's perspective, you know, to what extent do your agents participate in new construction, new single-family construction, you know, and how would that play into, you know, either commission splits or even commission rate? Thank you. Yeah. You know, our agents play in new, you know, single-family home construction, I would say episodically. You know, when the markets are hot, builders don't need to use agents to, you know, sell their homes. When markets are tougher, like we're getting right now a bit bluntly, we have more agents who are helping people, I would say, sell homes. That said, it's never gonna be that big, you know, in our mix because, you know, if the normal world is, you know, whatever, 5-plus million resale and, you know, in a good year, I guess, what? 1 million or so new construction maybe. I don't know. It's plus or minus that. You know, the... Even a big move in the new construction number doesn't kinda move the overall that much kind of thing. You know, our world is pretty, you know, much gonna be swamped by what happens either up or down with the resale market. You know, we'll take any of the business we can get there, but it's neither gonna, you know, make up for the resale market, nor is it gonna be a problem, you know, if the new sales stuff kinda goes away, you know, in terms of our agents' involvement. The bigger thing is just, you know, it is a challenging market right now, and I think part of the reason the new sale market's doing well is they are bringing new supply onto the market. As I said in the earlier comment, you know, the lack of supply, you know, is by far the biggest issue out there in the world. It's true at across price points and geographies. Obviously, you know, what's happening on the rate environment has really hurt that ability. And, you know, you can look at all the forecasts, but whether it's, you know, 4.2, 4.3, 4.5, 4.0, whatever those forecasts, you know, those are, those are like some of the lowest numbers we'll have seen in, you know, 15 to 30 or 40 years in terms of number of units sold. You know, so we've, you know, really gotta stay focused on the cost side like we're doing. You know, we absolutely are excited that we can invest in a time when a lot of people are having to pull back even more. You know, the fact that we could still drive meaningful EBITDA this year and even have some modestly positive free cash flow, you know, is feeling pretty good given the market that we're in. You know, you've obviously seen how we can perform in, you know, stronger markets. You know, anything we can do to create some space with the competition. 'Cause I think the competitive environment's gotten better, and, you know, I have a personal belief there may be some flight to quality still going on here. You know, that's what we're seeing out in the market and how we're trying to, you know, navigate our way through it. Yeah. The only thing I'd add to that is, as Ryan brought up, our modestly positive free cash flow in the year. I just wanna be explicit that, you know, we have no further information about any possibility or timing of any of the outcomes in our litigation, so that's not factored into the estimates that we've shared with you. All right. Well, thank you, Charlotte. Thanks, Ryan. Good luck, guys. Great. Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad. Your next question comes from John Campbell with Stephens Inc. Your line is now open. Hey, this is AJ Hayes stepping in for John Campbell. Thanks for taking our questions, and congrats on the quarter. We saw in the 10-K that a third of title transactions last year stemmed from your company's own brokerages, and you also called out that about 30% of title attach rates for those brokerage transactions. Can you provide some insight on how that has looked in prior years and how you've seen an improvement in attach rate over the years? In longer term, where do you think you can take those attach rates? Well, you know, I think we've had that stuff out there. I don't think our attach rates have frankly really improved over the years. I mean, you know, and they've kinda stayed in kind of that range there. To your other point, we do a meaningful amount of third-party business, and we love that, right? You know, we love doing title business for, you know, any transactions that we can, not just our own agents. That's why, AJ, and I appreciate you stepping in, I do spend as much time as I do talking about reimagining the agent and the consumer transaction experience. I have a very strong fundamental belief, AJ, if you'll let me just share it with you here, which is, you know, everybody just trying to change the way we've done things to get a different title attachment the way it's been done forever in our industry is unlikely to work. The fact that our results, you know, on that core metric haven't changed that much is an evidence of it. The way to actually get different results is to actually change how the transaction happens and make it easier for people or create products that make it easier to let you capture. The RealVitalize one I use as an example of that. You know, we give a product. I've actually used this product as a home seller, where it makes it, you know, it takes all the work of prepping your home for sale and hands it to professionals, where both the agent and the homeowner doesn't have to do any of the coordination, 'cause a professional does that, right? Then, you know, and then we, you know, we recoup the cost of that stuff at the closing. Built into that product is using our title in any market where the home seller controls the title. We get 80%+ capture rates there. You know, I don't talk about simplifying the transaction just for the fun of it or because of the obvious thing that we all want simpler things in life. Making having products and experiences that are better for the agent and the consumer in this very complex big dollar thing, you know, is not only good on its own right and can help with our value proposition, but my view, AJ, is that's the only way to really get your title and mortgage capture rates to a different zip code, which is wherever possible to actually embed it in the product that people want because it makes the service better or easier. RealVitalize is an example of that. You know, so we actually that's partly why we wanna give those kind of data points, that we are finding ways to do that in pilot programs at smaller scale that we wanna roll more broadly. That's the kinda way we can get to different capture rates. Just doing what we do or what our industry does, you know, is not likely to move the needle. Innovation and changing the experience, that could do it. We've got a, you know, that Real example we gave you this quarter, and that's the kind of innovation agenda we need to be driving. Yeah, really appreciate the color there, Ryan, and definitely impressive attach rates with RealVitalize. One follow-up if I may. With Cartus, it's obviously buried in the brand segment, but it seems like you've rebuilt to a great spot after the pandemic-driven fallout. It'd be very helpful if you could provide either the exact contributions or maybe just talk broadly to where it is today versus pre-pandemic, for both revenue and margin as well. What I would say is we had a really good quarter and in relocation it was, you know, it drove a decent year-over-year improvement. You know, it was definitely noticeable. From a revenue perspective, over the past year, the volume was kind of driven by a couple different things. It was driven by a little bit of a rebound of pent-up demand, but it was also driven by, you know, new business with existing clients and then share gains that we had with new clients. I think the business, to your point, is very healthy. We have really focused on it. When the real estate business was booming, we, you know, we continued to invest and ensure that we were driving, you know, the right technology agenda. I'm really happy with the way that performance is playing out. I will say, you know, for what's to come balance of the year, there are challenges that are driven by, you know, if you think about the sectors that use relocation, some of those sectors are suffering, and so they may, you know, they may have different plans for relocation in the near term as they have their own agendas to worry about. Over the long haul, the market share gains that we've built, both with existing and new customers, I think are gonna benefit us for sure, and we're very happy with the year-over-year contribution from that business.