Frontdoor, Inc. Releases First Quarter 2020 Results
Parent of home warranty provider American Home Shield announces 8% increase in revenue
Frontdoor, Inc. (NASDAQ: FTDR), parent company of home warranty provider American Home Shield, announced first-quarter 2020 results.
At Frontdoor, we took early and decisive action to protect the health and wellbeing of our associates, customers and contractors while continuing to provide essential home services in the communities where we operate. We continue to find new ways to support our contractors and real estate brokers during this time, many of whom are small business owners. —Chief Executive Officer Rex Tibbens
First-quarter 2020 revenue increased eight percent over the prior year period. Renewal revenue increased 10 percent, due to improved price realization and growth in the number of renewed home service plans, driven in part by customer retention improvement initiatives. First-year real estate revenue increased two percent, reflecting improved price realization, offset, in part, by a decline in the number of first-year real estate home service plans. First-year direct-to-consumer revenue increased seven percent, reflecting growth in the number of first-year direct-to-consumer home service plans, mostly driven by increased investments in marketing, and improved price realization.
First-quarter 2020 net income was $13 million, or diluted earnings per share of $0.15, relatively unchanged from prior year. First-quarter 2020 net income included an $18 million favorable impact from higher revenue conversion(3) that was mostly offset by a $16 million increase in selling and administrative expenses.
For the three months ended March 31, 2020, net cash provided from operating activities was $60 million, an increase of $8 million from the prior year period. Working capital was a $35 million source of cash for the three months ended March 31, 2020, compared to a $29 million source of cash for the prior year period.
Second-Quarter 2020 Outlook
• Revenue is anticipated to range from $410 million to $420 million, compared to $388 million in the prior year period.
• Adjusted EBITDA(2) is anticipated to range from $95 million to $105 million, compared to $105 million in the prior year period.
Full-Year 2020 Outlook
• The Company has withdrawn its full-year outlook at this time due to the uncertainty around the COVID-19 impact on the business. The Company plans to re-evaluate providing its full-year outlook after the second quarter.
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