Finance Of America Companies Inc. (NYSE:FOA) Q1 2023 Earnings Call Transcript

Leon Cooperman: Yeah. Thank you. There have been a number of changes in the company as you transition to a modern retirement structure. What do you think your normalized earnings are as you restructure the company looking at 12 months, 18 months from today, no voice?

Johan Gericke: 12 months, 18 months from today? It’s going to be, obviously, volume dependent. But I think if we look at where we saw Q4, right, and we say, okay, with the AAG acquisition, we can get something better than that, right? And then you say what is a decent bottomline for that business and I still believe that it’s somewhere in the 4% to 5% range of funded volume, right? And then you look at the Portfolio Management segment, which should run relatively stable and once we layer in the AAG acquisition, that number should maybe be twice as high as what it is today. And then we do some further rationalization in Q1, we said we expect our Corporate expenses to come down to what half of it what it was at the peak. So we are about two-thirds of the way there, I’d say. So when you layer all of that in, it should give you a good indication of kind of where the profitability is.

Leon Cooperman: Is that in excess of $0.50 a share?

Graham Fleming: No. I mean…

Johan Gericke: Yeah. At the right volume could be, yeah.

Leon Cooperman: Okay. Thank you.

Operator: Thank you for your question. At this time, there are no further questions waiting. So I will pass the conference back over to Graham for any additional remarks.

Graham Fleming: Yeah. Thank you, Frances. I want to thank everybody for joining the call. I appreciate the questions and we look forward to our next earnings call in August to provide an update on our progress. So thank you everybody for joining.

Operator: That concludes the Finance of America first quarter 2023 earnings call. Thank you for your participation. You may now disconnect your lines.